Ulster Business - May 2014 by Ulster Business

MAY 2014 Price ÂŁ2.30 (â&#x201A;Ź3.75)

The evolution continues Diamond Recruitment Group marks its 25th Birthday

Business Finance: Where is the money coming from?

Commercial Property: A revival of sorts?

ISSN 1363-2507

9 771363 250005

My business is Agri. My bank is Bank of Ireland.

We approved over £500m in lending to Northern Ireland businesses in 2013. This year we want to lend more. Wherever you’re going, we’re here to help you get there. Get involved this Enterprise Week, May 16th to 23rd. Geoffrey Stewart, Farmer, Magherafelt

bankofireland.co.uk call into your local branch

Northern Ireland’s Enterprise Bank

£500m based on the approved credit applications for Business, Commercial and Corporate between January 2013 and December 2013. This approval is based on formal credit applications across all Business sectors and includes renewals, applications for new money, increase of existing facilities and restructuring of facilities. Bank of Ireland UK is a trading name of Bank of Ireland (UK) plc which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales (No. 7022885), Bow Bells House, 1 Bread Street, London EC4M 9BE. 8334140501a

Contents 8 News

35 Export

76 Motoring

The future of the tourism industry looks bright for the next three years

Why selling outside Northern Ireland will drive the economy forward

Test drive by Pat Burns and a look at booming new car sales

14 Cover Story

36 Analysis

82 Appointments

Diamond Recruitment turns 25-years-old in style

John Simpson: the sage of business talks export markets

Who’s who and who’s moved from which company to where?

18 Viscount Awards

47 Commercial Property

84 Photocall

We reveal the winners at this year’s Aer Lingus awards

Reflections on one of the most important parts of the business jigsaw

Who’s been out and about over the last month?

23 Business Finance

65 Corporate Restructuring

94 Travel

Has the credit tap been turned on again for cash-starved companies?

The mergers and acquisitions market comes under the spotlight

We hit the road with Graeme Roberts from GoReport to talk travel essentials

58 8

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1 Boucher Way Belfast BT12 6RE Tel: 02890 389 999 info@porschebelfast.co.uk

Fuel consumption in l/100 km (mpg): urban 13.9-11.8 (20.3-23.9), extra urban 7.7-6.9 (36.7-40.9), combined 10.0-8.9 (28.2-32.5), CO2 emissions: 237-204 g/km. The mpg and CO2 figures quoted are sourced from official EU-regulated test results, are provided for comparability purposes and may not reflect your actual driving experience.

EDITOR’S COMMENT

A turning tide?

omething is definitely stirring. At the time of writing I’ve been at the Ulster Business desk for just under one week and in that time we’ve covered jobs announcements for Northern Ireland totalling nearly 900.

posts are ‘low value’ and may have done little to drive productivity in the Northern Ireland economy, that argument was soon swept aside by the 486 posts at EY and 341 at Schrader Electronics, both paying handsome salaries.

In the couple of weeks prior to that – when I was sunning myself on a Peruvian beach – 1,300 jobs were announced between just two companies (maybe I should go away more often?).

And besides, the other jobs are just as important, given all levels of the employment pyramid need to be filled for the economy to succeed.

That adds up to nearly 2,200 new posts in under a month, a total which would be the envy of many other nations. Now, the cynics amongst us will raise our eyebrows at the timing of these announcements, pointing to the fact there is a bit of a rush on by Stormont to sound the trumpets of economic revival prior to the election in May. Indeed, electoral matters may have had some bearing on the timing but companies don’t pledge to create jobs just to flatter politicians, rather to meet the demands of an increasingly thirsty customer.

So, arriving back at Ulster Business after a four-year “sabbatical”, it seems the economy is on the up, lavishing in job pledges and showing every sign of leaving the last vestiges of recession behind. In this magazine we cover some of the aspects of the Northern Ireland economy which were hard hit by downturn but are poised for revival – from finance to export, commercial property to corporate restructuring – all with fascinating tales to tell. It’s great to be back and I can’t wait to find out more about the business world which we are lucky enough to be a part of. In the meantime, enjoy the magazine.

While suggestions had been made that some of the

Publisher Greer Publications 5b Edgewater Business Park Belfast Harbour Estate, Belfast BT3 9JQ Website: www.ulsterbusiness.com Tel: 028 9078 3200

Editor David Elliott

Art Editor Stuart Gray

Manager Sonia Armstrong

Production Manager Stuart Gray

Printer W&G Baird Greystone Press, Caulside Drive, Antrim BT41 2RS Website: www.wgbaird.com

Deputy Manager Sylvie Brando

Cover Photo Richard Trainor

Greer Publications © 2014. 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.

MAY 2014

For your nearest stockist or subscription queries, telephone Reception on 028 9078 3200

Sales Executive Chris Black

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.

NEWS

In Brief The Institute of Directors Northern Ireland (IoD NI) division has announced that its Chairman is to embark on a number of fear defying challenges to raise money for the membership network’s charity of the year, Stepping Stones NI. Taking inspiration from the hit TV show ‘I’m a celebrity.... get me out of here!’, IoD NI Chairman Paul Terrington, Stepping Stones NI Chairman Richard Knox, and a number of volunteering members will battle it out to raise more money than their ‘camp mates’ and be granted immunity from a series of hair-raising, nausea-inducing challenges.

C&C investment an endorsement for Belfast

Law firm Pinsent Masons has announced the promotion of three new partners to its Northern Ireland operation, amongst 15 new partnerships globally. The new Belfast partners are Paul Gillen, Employment, Laura Gillespie, Litigation & Regulatory and Richard Murphy, Energy and Natural Resources. The promotions will take effect from 1 May 2014. Advertising agency AV Browne has been awarded the contract for Brand Strategy and Creative Development for the University of Ulster. It will be working closely with the Brand and Communications team at the University.

Pictured during a visit to the company’s office is Tom McCusker, MD of C &C Group Ireland and Tennent’s Northern Ireland and Enterprise Minister Arlene Foster. Picture by Brian Morrison.

elfast has beaten off stiff competition from other UK and Ireland locations as the site of a major expansion by drinks company C&C.

Ogilvie Fleet has signed a contract valued at over £350k. Ballymoney based Northern Materials Handling Ltd, a supplier and service agent for materials handling equipment to blue chip companies throughout Ireland and Scotland, has signed up for an initial delivery of nine Ford Transit vans in this its first venture into contract hire.

It will be creating 25 jobs at its Boucher Road site over the next two years as part of a £1.2m investment, one which will see it establish a Commercial Business Support Centre.

Lurgan company Avondale Foods has won its first supply deal to Europe. The food firm has a signed a contract to supply supermarkets in the Netherlands with its garlic butter dough balls after launching a marketing initiative in the region with the help of Invest NI. The family firm employs around 340 people in Lurgan and already suppliers retailers throughout the UK and Ireland.

“Belfast emerged as the most suitable and best cost location because of the availability of skilled people here, a record of low staff turnover rates, a robust infrastructure particularly in terms of telecommunications, and the support package from Invest NI especially for employee training, the latter being an important focus for the group,” he said.

Tom McCusker, Managing Director of C&C Group Ireland and Tennent’s NI said the city offered a number of advantages.

Enterprise minister Arlene Foster said the

move is an endorsement for Belfast and for Northern Ireland. Announcing the investment during a visit to the group’s offices, Arlene Foster said: “The C&C Group must be applauded for creating much needed jobs and for expanding their Belfast operation. It is testament to the company, which has been present in Belfast for over 100 years that it continues to develop and grow. The new jobs will generate around £1.3m in salaries over the next two years, a total which works out at an average salary of £26,000 a year. Mrs Foster also said the new centre will provide employment opportunities in an economically disadvantaged area and across a broad range of professional support services. Invest NI has offered the company almost £250,000 towards its investment including training support, part funded by the European Regional Development Fund.

NEWS

Rain to help Apple’s Cork HQ grow “This is an immensely significant and encouraging contract for us because it represents a terrific endorsement by one of the world’s biggest technology corporations.” “I believe we secured the business because of our passion for delivering bespoke systems to clients based on our experience and expertise in developing cost effective and cutting edge solutions. Invest NI offered assistance of over £18,000. Des Gartland, Invest NI North West Regional Office Manager, said: “We have worked closely with this progressive and ambitious company in the development of its impressive technology particularly in the conservation and recycling of rain water, a rapidly developing market opportunity.

oleraine company RHI Harvesting Ireland (RHI) has won business with one of the world’s biggest computer companies.

It will provide its rainwater harvesting system to Apple as part of the IT giant’s expansion of its Cork office. RHI Managing Director Jonathan Coyle said the deal is a boon for the company.

MAY 2014

“The company is now marketing its know-how and technology very professionally in export markets and is beginning to see success from its commitment to sales outside Northern Ireland.” The company currently supplies its systems, which help to conserve rainwater and deal with storm water and so-called greywater, to private and public sector clients in Northern Ireland, the Republic and Great Britain.

NEWS

A Month in Numbers 700 The number of new jobs announced within the space of just two days on the 28th and 29th of April. Accountancy firm EY said it was taking on nearly 500 new staff at its Belfast office while tyre pressure monitor manufacturer Schrader said it plans to take on around 200 people at its Antrim plant.

Willow diversification helps energy company create new posts Pictured (L-R) are: Danny Hughes, Danske Bank Business Acquisition Manager and Connaire McGreevy, Founder and MD, CTS Projects.

£10.7bn The UK’s debt mountain which has continued to grow over the last month despite a slow down in the amount of borrowings made by the government. The steady increase in national debt is said to be the result of a decrease in the amount of money Westminster is taking in.

3,710 The number of companies in Northern Ireland said to be facing “significant problems” in their finances in the first quarter of the year, according to business rescue company Begbies Traynor. That’s up 2% on the last quarter of 2013 but comes amid a 32% fall in the number of companies reporting critical problems.

1,300 The number of new jobs announced for the support services industry last month. US firm Concentrix is investing £36m and taking on 1,000 new staff at the company’s Lanyon Place offices in Belfast where it already employs around 800 staff. Meanwhile, Convergys is planning to set up an office in Londonderry and employ 333 people to provide support services.

£2.5bn The amount of losses made by the Cooperative Group in its latest financial year. Interim CEO Richard Pennycook said the there had been serious mismanagement at the troubled group with the board unaware of a £1bn debt mountain.

ine new jobs have been created by Warrenpoint company CTS Projects as part of a diversification into new products. It has purchased a 70-acre site in Rostrevor where it plans to plant, harvest and grow willow as a renewable energy source to compliment its existing business which focuses on energy efficient solutions for the construction industry. CTS currently employs over 50 people and exports its products to the private and public sector, particularly to social housing schemes across the UK and Ireland, including Clanmil Housing in Northern Ireland. Founder and MD Connaire McGreevy said growing demand for its products had prompted the expansion. “As well as recruiting more people in order to meet a growing demand for our service, we knew we would have to invest in expanding our premises.” And he said the need for companies to meet European Union regulations has proved a bonus for CTS.

“In recent years we saw an increase in the number of contracts won from ROI on the back of a new EU Directive for energy efficiency, which places more of an onus on energy services companies to provide more efficient services in households,” he said. “As a result, gas and electricity providers are inviting tenders from companies like CTS which can offer innovative and costeffective solutions to ensure that they are complying with these EU regulations.” Funding was supplied by Danske Bank to help the firm buy its existing premises at Milltown East Industrial Estate in Warrenpoint, enhance the facility to include a new services unit and purchase the site for the new willow farm. Danny Hughes, Danske Bank Business Acquisition Manager, said: “CTS Projects is an excellent example of an indigenous company which has continued to report steady growth throughout the recession as a result of its focus on R&D and innovation and its willingness to take risks in diversifying into new areas in the business. The firm has reacted quickly to changing market conditions and this has paid dividends in supporting the firm’s growth.

NEWS

Calls for focus on skills in construction

he construction sector is in better health but the speed of recovery could be hindered by a lack of skilled workers. That’s the view of industry body The Royal Institute of Chartered Surveyors (RICS) which reported the third consecutive quarter of growth for the industry in the first three months of 2014.

Skilled workers are becoming scarce in the construction industry.

It’s this growth in activity which is becoming a drain on skills, with demand for education in the building trade sharply down, according to RICS spokeman Jim Sammon. “We are... getting indications from local third-level education establishments that enrolment levels for construction-related courses are at low levels,” he said. With skills shortages emerging and the pipeline of professionals potentially hampered by fewer students enrolling on construction-related courses, this gives us real cause for concern,” Mr Sammon said. With Northern Ireland likely to see an upsurge in the construction of infrastructure projects, the need for skills in the sector is only expected to increase. “Our message is that students shouldn’t be put off studying chartered surveying and other construction disciplines because

MAY 2014

of challenges the sector has had in the past number of years.” The second quarter of 2007 was the last time the RICS survey’s workload balance (the percentage of respondents reporting rising workloads minus the percentage reporting falling workloads) was above the +20 recorded in the most recent quarter (Q1 2014). This compared to a workload balance in GB of +43.

NEWS

In Brief Employment and Learning Minister Dr Stephen Farry has announced that Northern Ireland will play host for the first time to the WorldSkills 2015 UK Squad Selection. Between 24-26 June 2014, over 160 of the UK’s most talented apprentices and learners will battle it out over three days of intense competition in Northern Ireland with the hope of securing a place in Squad UK for WorldSkills Sao Paulo 2015. The Squad UK selections will take place at Belfast Metropolitan College’s Titanic campus, CAFRE’s Greenmount campus and Northern Regional College’s Ballymena and Newtownabbey campuses. Paul Henry has been elected Chairman of Chartered Accountants Ulster Society at its 107th Annual General Meeting in Belfast. The Ulster Society represents over 3,700 Chartered Accountants and is a district society of Chartered Accountants Ireland, the largest and oldest professional accountancy body in Ireland. Mr Henry, who takes over as Chairman from Darren McDowell, is a Director with Belfast based property consultancy Osborne King. The island of Ireland scores highly for beautiful landscape and scenery among Chinese travellers – according to new research unveiled by Tourism Ireland. Millward Brown was commissioned by Tourism Ireland to carry out an online survey of 1,000 Chinese adults living in the cities of Shanghai, Beijing, Guangzhou and Chengdu, during March and April. The people surveyed had all visited Europe at least once before, and/or intend to travel on a holiday to Europe in the next ten years. Businesses in South Belfast are coming together this month to help put their local area on the tourism map. Companies from the hospitality and services sector have applied to take part in the World Host Customer Service training initiative. It will see organisations from the area trained to the highest quality in customer service.

Destination NI: Barclays predict tourism boom Adrian Doran from Barclays

he tourism sector is set to become even more important to the Northern Ireland economy over the next three years as spending by foreign tourists jumps by nearly £80m. Those are the finding of a new report commissioned by for Barclays which pegged spend here at £314m here in 2017, a jump of one third on 2013. Of that total, £148m will be spent on hospitality and leisure while £126m will be spent on retail. Adrian Doran, Head of Corporate Banking for Barclays in Northern Ireland, said the sporting diary is keeping the spotlight on the region. “Major sporting events in the next few years

will undoubtedly attract additional overseas visitors to Northern Ireland, with Belfast hosting the opening stages of the Giro D’Italia this month, and the Irish Open coming to Royal County Down in 2015 and Lough Erne in 2017,” he said. “In addition, Northern Ireland’s growing reputation within the film and TV industry, and the incredible popularity of the Titanic Visitor Centre will further help to bolster tourism and contribute to predictions for an increase in spending by overseas tourists.” When it comes to the origin of visitors, the Republic accounts for the biggest percentage of visitors at 48% of the total, followed by the US and the Netherlands at 14% and 4% respectively. By 2017 spend is expected to increase across the board with a greater spread of visitors from other global regions. Such a buoyant outlook is already offering a boost to confidence in the tourism industry, Mr Doran said. “We are already seeing new planning applications being submitted and approved which reflects increasing confidence in this high growth sector.”

TOP TEN FOREIGN NATIONALITIES’ SPEND 2013

2017

1. Ireland – £113m (47.9%) 2. USA – £32m (13.7%) 3. Netherlands – £8m (3.5%) 4. Australia – £7m (3.2%) 5. Spain – £5m (2.2%) 6. Canada – £5m (1.9%) 7. Italy – £3m (1.3%) 8. France – £3m (1.2%) 9. Germany – £2m (1.0%) 10. India – £2m (0.9%)

1. Ireland – £122m (38.8%) 2. USA – £41m (13.0%) 3. Australia – £9m (3.0%) 4. Netherlands – £9m (2.8%) 5. Canada – £8m (2.5%) 6. Germany – £4m (1.4%) 7. Italy – £4m (1.2%) 8. Spain – £4m (1.2%) 9. France – £3m (1.1%) 10. India – £2m (0.8%)

NEWS

Food for thought as Balmoral approaches

Ulster Bank Head of Northern Ireland, Ellvena Graham; Richard Ramsey, Chief Economist Northern Ireland; Cormac McKervey, Senior Agriculture Manager and Ian Jordan, Director, Corporate Banking Division at an agrifood breakfast at the bank’s headquarters.

he Northern Ireland agri-food sector has huge potential in the coming years as demand from the rest of the UK and the world booms, Ulster Bank’s economist has said. Richard Ramsey was speaking at the bank’s Belfast headquarters at an agri-food breakfast where he said the industry is one of the most important to the economy here with one in every five employees in the private sector involved in the industry. “The agri-food sector is already a major employer, with about 20 per cent of private sector employment according to one estimate, and our largest exporter,” he said. “The Agriculture, Forestry & Fishing sector for instance accounts for 25 per cent (16,820) of Northern Ireland businesses, compared with a figure of 6.6 per cent for the UK. And there is, no doubt, significant potential for agri-food sector growth, based on the anticipated growth in British and global demand for food.” Ulster Bank is the main sponsor of this month’s Balmoral Show and Head of Northern Ireland and Managing Director of SME Banking, Ellvena Graham, was keen to show the bank’s backing for all things agri-food. “Ulster Bank has £1bn available to lend to businesses this year, and agri-food is a really high priority for us. Ulster Bank is already a major lender across the agri-food sector. “We have a wide variety of support available through our dedicated schemes such as Funding for Lending, through which we’ve made over £150m available to almost 1,300 businesses, many of which operate in the agri-sector.”

MAY 2014

Going for growth By Katherine James, Head of Small Business, Danske Bank

t Danske Bank we have the privilege of working with some of Northern Ireland’s most innovative and exciting exporting businesses.

However, only 2 per cent of companies here are actually selling into markets outside of Northern Ireland. In order to transform our economy Northern Ireland needs many more businesses to start exporting or to extend their reach beyond near markets such as the Republic of Ireland and Great Britain. That’s why programmes such Danske Bank Export First, in partnership with the NI Chamber, are so important. Now in its third year, the programme aims to equip local businesses with the knowledge and confidence to break into new markets for the first time or take their export activity to the next level. The first event of the year took place at Ulster Carpets, currently UK Exporter of the Year and a world leader in the manufacture and export of high-quality carpets for sales to the world’s best known hotels, casinos and cruise liners. Ulster Carpets is an excellent example of a company which has focused on winning export business, with 70% of its products now sold abroad. There was a very tangible sense of optimism in the room at this event. It was clear that the business confidence that has returned to the market in recent months is encouraging local firms to make decisions around their business growth and take steps to export for the first time, which can only be good news for the local economy. I firmly believe that with the right guidance and support, many more Northern Ireland businesses can follow the example of Ulster Carpets in striving to achieve their full growth potential through export.

Katherine James can be contacted by emailing katherine.james@danskebank.co.uk or calling 028 9004 9303

NEWS

Pay by mobile comes to Danske Bank

anske Bank has become one of the first banks in Northern Ireland to launch a pay by mobile service, Paym.

It will allows customers to transfer money using their mobile phone without the need for the receipient’s sort code of account number. Danske is one of nine UK banks offering the service including: Barclays, Halifax, HSBC, Lloyds Bank, Santander, TSB, Bank of Scotland and Cumberland Building Society. “Customers simply register their mobile phone number alongside a nominated bank account through their online banking facility,” Tony Wilcox, Managing Director of Personal Banking at Danske Bank, said. “Once registered the service is safe, secure and easy to use, with customers selecting the person they wish to send money to from their own mobile phone address book. Once selected, customers can then send up to £250 per day through the Paym facility to customers of any bank registered for the service. “The launch of the Paym service will revolutionise the way we as a society pay for things and will be seen as a key milestone in terms of changing consumer behaviour when it comes to day to day finances”.

Celebrating the launch of the new Paym mobile-to-mobile banking service are NI Finance Minister Simon Hamilton MLA and Tony Wilcox of Danske Bank.

Finance Minister Simon Hamilton MLA also welcomed the introduction of Paym into the local market. He said: “From today around 40% of current account holders in Northern Ireland can sign up for Paym and it is welcome to hear from the Payments Council that other remaining banks are also currently finalising their plans to offer the service.” The Payments Council has said that the new service will simplify age-old problems such as settling up informal loans and IOUs with friends and family. To find out more about registering for Paym by visit paym.co.uk.

EY employ 500 new staff at Belfast hub it won’t be cannibalising work from other financial services firms operating here. It brings EY, which was formerly known as Ernst & Young, into a similar league in Northern Ireland as rivals Deloitte and PwC, although the latter still retains the largest presence. Management said the new EY jobs will be a mixture of advisory and assurance posts and will cover both “static and mobile” roles, meaning some of the roles will be based here but will involve a significant amount of travel. Pictured are Enterprise Minister Arlene Foster; EY Managing Partner, Mike McKerr; First Minister Peter Robinson; Employment Minister Stephen Farry and Invest NI CEO Alastair Hamilton.

he high level of skills available amid Northern Ireland’s workforce was said to have persuaded business advisory EY to expand its workforce here by 486.

The new jobs will be added to the current headcount of 145 over the next four years and will command average salaries of just under £40,000-a-year each, a figure which is well above the current average salary of around £24,000. Crucially, the division will be working on contracts based outside Northern Ireland, a fact which First Minister Peter Robinson said means

The company will also be looking for workers with varying levels of expertise, from graduate level up to more experienced hires with a number of years of experience. Mike McKerr, Managing Partner, EY Ireland said the next few years would be an exciting time for EY in Northern Ireland. “As a global company with a presence in more than 150 countries, we continually evaluate the best locations for expansion to ensure maximum productivity and growth,” he said. “We have been working closely with Invest Northern Ireland for some time on this project and their support and advice has been instrumental in EY’s decision to locate this project in Belfast.”

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COVER STORY

The evolution continues... As Diamond Recruitment Group marks its 25th birthday this year, Ulster Business talks to the senior management team about the latest developments in the firm and its plans for the future in Northern Ireland… Rick Butterworth, managing director

“T

he last time we featured on the front cover of Ulster Business, in February 2011, we introduced the concept the ‘evolution of recruitment’ and, three years on, this evolution is still very much ongoing at Diamond,” says Rick Butterworth, managing director of Diamond Recruitment Group [Diamond]. Founded by Gary Irvine in 1989, Diamond is now Northern Ireland s largest homegrown recruitment organisation. Employing over 2,000 temporary workers across the

province every day and placing hundreds of full-time workers each year, the firm features in the Top 20 employers in Northern Ireland and reports an annual turnover of £32m. Irvine says: “Despite the challenges of the recession in recent years, Diamond has continued to trade very well and has ‘come out the other end’ in a strong position – largely as a result of the strategic leadership of managing director Rick Butterworth and excellent service delivery of our regional teams, managed in Belfast and South-East by Donna Parker and in Ballymena and North-

West by Eunice Campbell, both of whom have been with Diamond for over 16 years.” He explains how he has assumed more of a ‘backseat’ role in the firm in recent years following the appointment of Rick Butterworth as managing director in 2010, enabling him to launch 4c Executive Search in 2013. “Rick’s appointment allowed me to step back, review the business and look at new opportunities. Almost all of my time is now devoted to 4c Executive, leaving Rick to run Diamond and do what he does best – utilising his intelligence, logistical

COVER STORY

prowess and strategic thinking to steer the firm to continued growth. These skills combined make Rick an exceptional leader.” Now at Diamond for over three years, Butterworth claims that the combination of his 25 years’ experience in logistics, business support services and recruitment have brought a fresh approach to running the business. “Logistics is the art of getting the right product to the right consumer, on time and every time. Recruitment isn’t too dissimilar in that it is the art of matching the right candidate with the right client at the right time. “Since many of our large contracts in Diamond involve us offering far more than the traditional recruitment model, my background in developing solutions and managing large logistics contracts for the likes of Tesco, Kellogg’s and Halfords has stood me in good stead in helping to deliver value to our key clients. “My own experience in the recruitment industry is complemented strongly by the skills and experience of Donna and Eunice, whom I would consider very much to be experts in their field. The breadth and depth of their knowledge of Diamond, our team, our clients and the wider recruitment industry in Northern Ireland not only brings a huge strength to the senior management team of the firm, but, importantly, ensures that our offering exceeds our clients’ expectations at all times.” Employing 44 direct staff, Diamond operates from four locations province wide – Belfast,

Donna Parker, regional manager Belfast and South-East

Ballymena, Portadown and Dungannon – and offers recruitment, HR services and staffing solutions to both the private and public sector in Northern Ireland.

“Despite the challenges of the recession in recent years, Diamond has continued to trade very well and has ‘come out the other end’ in a strong position.”

Client Testimonial “We appointed Diamond in 2010 to undertake the recruitment, selection and management of our Production Temporary Workforce, which we believe to be a business critical resource to us. They provided us with a dedicated resource based on site to work closely with our own HR Team and manage the activities of the contract. In addition to this they devised a bespoke recruitment and selection process to ensure we get the best people suited to our particular business needs, and work hard to ensure we have the right people available at the right time. This has resulted in increased efficiencies internally and significant cost savings for the organisation without compromising on quality. As a reflection of this we have recently appointed them as sole provider of all temporary and permanent non-scientific recruitment services in Northern Ireland.” Stuart Watt, Human Resources Manager, Almac Group

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“Our recruitment offer is segmented broadly into ‘Diamond Industrial & Commercial’ and Diamond Professional Service’, which includes IT, banking & finance, accountancy, legal, sales & marketing, technical and contingent executive recruitment,” explains Butterworth. “We are a generalist recruitment business focused geographically on Northern Ireland and our reach is across all recruitment disciplines, with a considerable footprint also in managed staffing solutions and in the provision to our clients of complementary HR services.” According to Donna Parker, regional manager for the Belfast and South-East area, Diamond’s success in the past 25 years has been built on a strong focus on excellent relationship management. “We meet with every single candidate before we represent them and use this time to get an understanding of their motivation and exactly what they are looking for. This enables us to match our clients’ requirements quickly and accurately, ensuring that they get the best candidate to fill their role in every case. “But in order to do this we need to know our clients inside out as well, and this level of understanding comes from strong relationships which have been cultured ›

COVER STORY

Eunice Campbell, regional manager, Ballymena and North-West

services in both temporary and permanent recruitment. “The firm is going through a real growth phase at the minute and we are going from strength to strength on both the temporary and permanent sides of the business,” says Eunice Campbell, regional manager for Ballymena and North-West. “While permanent recruitment may take a few weeks for a role to be filled, temporary recruitment is a much quicker process – with roles having to be filled within 24 hours at times. It is very reactive and can be very last minute, so you need to have a very strong candidate base and a good knowledge of the roles the client needs filling.”

across the past 25 years. Our marketing statistics show clearly that 80% of our candidates are referred to us via word of mouth and this is a testament to these relationships and the service we have provided to jobseekers in Northern Ireland.” With Diamond’s client list including the likes of Moy Park, Almac, Gallahers/JTI, KPMG, Fujitsu, Andor and NIE – as well as public sector clients such as Ballymena and Coleraine Borough Councils and the Northern Health & Social Care Trust – Butterworth says that this focus on strong customer service is continuing to pay off.

vision, understanding of the latest game changing legislation and the capability to deliver operational excellence and you will reap the rewards in terms of new business development and client retention. “We are attracting some of the biggest names in Northern Ireland and have been successful in renewing contracts with a number of them again and again, which puts us in a very strong position going forward.” With such a broad spectrum of clients across a wide variety of sectors, Diamond delivers

So what’s in store for Diamond going forward? “Our strategy for the coming years is centred on delivering existing and new innovative value-added services to clients based principally in Northern Ireland,” says Butterworth. “Over the past 25 years we have worked hard at creating brand awareness to attract the best talent available and that is something we want to continue developing in the coming years. “As the Northern Ireland economy and the recruitment industry continues to evolve, so too will Diamond Recruitment Group. Exciting times lie ahead.”

Client Testimonial

“The firm is going through a real growth phase at the minute and we are going from strength to strength on both the temporary and permanent sides of the business.” “In today’s competitive and challenging environment, it is paramount that market– leading businesses like Diamond provide a quality service and at a price that truly reflects value to the buyer,” he says. “Add to this mix a strong, hardworking team that are at the forefront of their industry, with strategic

“We at JTI/Gallaher ltd have been working with Diamond for over ten years and have always found them to be reliable and very customer-focused. We have continued to renew contracts with them following extensive tendering processes as they consistently out-perform the competition both in terms of costs and customer service. Being a 24-hour manufacturing company, we need a provider who is flexible, responsive, and able to react to changes or requests efficiently and effectively. Diamond has always been able to deliver on this.” Catriona McBride, HR Director, JTI/Gallaher Candidate Testimonial “I was living overseas and registered with Diamond Recruitment when I came home to visit family. Thirty minutes after my interview with the branch manager, I received a call from Diamond regarding a position that had just opened. The staff at Diamond accompanied me at every stage of the process, from application through to the assessment centre. Their help and guidance was key to a successful interview and finally being offered the position. I have now been working for four months in a job with a global firm who strongly believes in people development, where I have long term prospects and am challenged on a daily basis.” Sarah McAnally

in association with

Ulster companies celebrated at prestigious business awards ceremony

Oliver Petersen, sCMOS Solutions Manager at Andor Technology with Paul Clark.

Ulster Business editor David Elliott.

ive of Northern Ireland’s most successful companies as well as two individuals have been recognised for their achievements at the sixth annual Aer Lingus Viscount Awards, in association with Ulster Business.

Most Innovative Company – Andor Technology, whose notable innovations over the last year were two highly anticipated cameras which made way for new ultra-sensitive technology to hit already developed platforms.

The ceremony, which took place at the Royal Automobile Club on Pall Mall, London, celebrated firms which have achieved business success in the last 12 months and have contributed to economic links between Northern Ireland and Great Britain.

Exporter of the Year – Elmgrove Foods Ltd, whose core business is exporting beef, lamb and pork offal to the Far East, Africa and the Caribbean, and who celebrated shipping its 1000th container to the Far East in 2013.

Pharmaceutical giant Almac Group scooped the top award on the day – the Aer Lingus Viscount Award for Overall Excellence – while Colin Williams of Sixteen South claimed the coveted ‘Entrepreneur of the Year’ accolade. 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:

Best Small Business – Export Technologies, an e-commerce software provider to the retail sector that has achieved a 35% year on year growth for the past three years. Best Medium Business – Devenish Nutrition. Specialising in the manufacture of premixes, speciality feeds and feed ingredients for livestock of all species. Devenish Nutrition achieved a turnover of £95m in 2013. Best Large Business – Almac Group Ltd, who have increased employment figures by 9% in the last year, and have reported an

increase in turnover from £276m to £300m. Doug Cookson, VP Corporate Marketing at Almac Group said: “We are delighted to have won two prestigious Aer Lingus Viscount Awards. It’s great to be acknowledged for the pioneering work our teams across the globe undertake and we’re proud to be recognised among the best of Northern Irish businesses.” Entrepreneur of the Year – Colin Williams, Sixteen South Ltd, whose clear vision for the company has allowed it to secure long-term partnerships with leading lights in the animation industry, including the Jim Henson Company, Sesame Street and Nickelodeon. Mr Williams, Director at Sixteen South said: “I am absolutely thrilled to be commended as the Entrepreneur of the Year. I’m first and foremost a creative, and Sixteen South is a creative business. To get such recognition in the business world is really special indeed. “I am honoured to lead a brilliant team of creative and business people who all love what they do.”

The team at Elmgrove Foods Ltd. was awarded ‘Exporter of the Year’ at the 2014 Aer Lingus Viscount Awards.

Andrea Hunter from Aer Lingus, Doug Cookson and Laura Hill from Almac, with Declan Kearney and Julie Davidson from Aer Lingus.

Andrea Hunter, Business Development Manager at Aer Lingus, Colin Williams, Director, Sixteen South and Julie Davidson, Aer Lingus Cabin Crew.

Andrea Hunter, Business Development Manager at Aer Lingus, Patrick McLaughlin, CEO of Devenish Nutrition and Julie Davidson, Aer Lingus Cabin Crew.

Andrea Hunter, Business Development Manager at Aer Lingus, Les Curran, Export Technologies and Julie Davidson, Aer Lingus Cabin Crew.

The team at Capita – runners-up ‘Best Large Business’ category – at the 2014 Aer Lingus Viscount Awards.

Outstanding Contribution – Anna Moss MBE, Managing Director and General Counsel, Citigroup in Belfast, who has very successfully championed the benefits of doing business in Northern Ireland, and who has thereby contributed significantly to economic development in the region. On receipt of the award she said: “I am absolutely delighted to receive this award for outstanding contribution which is not only a career achievement for me

MAY 2014

personally but also a recognition of the achievements of my team in Belfast.” The Aer Lingus Viscount Award for Overall Excellence was awarded to Almac Group Ltd. Declan Kearney, Director of Communications for Aer Lingus said: “We were hugely impressed not only by the volume but calibre of the year’s entrants. Although Northern Ireland has faced harsh economic times recently we were encouraged by the strong foundations and entrepreneurial

leadership, businesses here have at their helm. What is clear is that NI business owners certainly have the ambition and drive to expand and explore new territories for growth. “The companies we’re rewarding have demonstrated a true commitment to innovation and have achieved spectacular growth and success both here in Northern Ireland and crucially further afield. Their success is indicative of the huge potential local firms have to compete on a global scale,” he said.

OPINION

EU says working conditions a priority

he economic and financial crisis of recent years has adversely affected labour markets and working conditions in Europe. Not only has unemployment been unacceptably high, but the quality of employment has also suffered.

Framework for Traineeships to ensure that these young workers are able to acquire a valuable work experience in safe conditions. Workers are also more vulnerable when companies restructure. However, current best practices in the EU show it is possible to anticipate change, to manage it by minimising its social and human cost, to prepare employees for technological innovations, and to help redundant workers to find new employment.

Work in the 21st century should be synonymous with creativity, participation, safety and respect for workers. Instead, for many today, and including those who manage to return to the labour market in this period, work means insecurity, a downward pressure on wages and a race to the bottom. Now that a recovery has begun and unemployment has started to fall in Europe, we have to pay more attention to working conditions and to how to improve them. Growth will only be more robust and sustainable if we manage to boost investment not only in physical infrastructure and skills, but also in working conditions. While distress and discontent have grown in Europe’s labour markets and workplaces, it should also be clear that EU Member States also provide some of the best models in the world in terms of strong social partnerships, corporate social responsibility and reconciling work and private life. The EU’s most productive and competitive economies are those that successfully combine high levels of social investment and employment protection with flexibility, productivity and dynamic social dialogue. Their examples show that investing in schoolto work transitions, and occupational health and safety, pay off in terms of higher levels of employment, more active ageing, and more sustainable social security systems.

By European Commissioner for Employment, Social Affairs and Inclusion, László Andor

Some still underestimate the importance of EU labour legislation in this area, or question its relevance for the future. However, the EU has a key role to play in protecting fair working conditions, for both economic and social reasons. It is EU law which guarantees workers’ right to minimum paid holidays, weekly limits on working time and the right to be consulted and informed about employers’ decisions that affect them. EU law also protects workers in case of insolvency of the employer, against abusive successions of fixed-term employment and against discrimination. Several recent EU initiatives have focussed on improving working conditions through protecting more vulnerable workers. The youngest vulnerable workers are trainees, who have often been victims of unacceptable exploitation. To better protect them, the Commission has introduced a new Quality

Undeclared work represents another challenge to fair working conditions, since it deprives workers of protection. To better combat this problem, and to replace undeclared work with legal and decent employment, the Commission has just proposed the creation of a new EU Platform that will help Member States’ various enforcement bodies to work more effectively together. The Commission is also preparing a new Strategic Framework on safety and health at work for 2014-2020. EU rules and European Strategies have already helped to prevent accidents and work-related diseases, leading to healthier, safer, more productive and more motivated workers and to less absenteeism. Companies benefit from this not only through higher productivity but also from being able to compete on a level playing field throughout the EU’s Single Market, without facing 28 totally different sets of rules or unfair competition from companies that expose their workers to unsafe working conditions. The new strategy will seek to make it easier for companies to implement existing rules and to face new challenges (like work related stress).

Letâ&#x20AC;&#x2122;s bring the World to Belfast & Northern Ireland Events do not only boost our tourism economy; theyâ&#x20AC;&#x2122;re an opportunity to invite customers, investors, partners and suppliers to you. There is no better way to showcase what we have to offer as a place to do business than hosting a meeting or conference in Northern Ireland. Become a Business Ambassador and we can help you to make it happen.

To find out more about the Business Ambassador Programme and the support available, please contact Sarah Gribben at Visit Belfast Tel: 028 9023 9026 Email: sarahgribben@visit-belfast.com www.visit-belfast.com/conference

Research collaborations that deliver impact

By Scott Rutherford

n emerging strategic theme for all UK universities is that of collaboration and partnership. Current approaches to research funding are increasingly focused upon collaborative programmes of research and development which involve a range of academic partners, disciplines, external businesses and, of course, different geographies. Such approaches recognise that the ‘grand challenges’ facing our society, and the problems that our businesses face, will not be solved in isolation. These are global issues that require multi-faceted approaches, skill-sets and research perspectives. It is not only in research programmes, such as those funded through the Technology Strategy Board, Horizon 2020, Invest NI or the UK Research Councils, that are increasingly collaborative in nature. Largescale government-led ventures, such as capital infrastructure investment, are being utilised to leverage greater private sector funding. The recent series of UK Research Partnership Infrastructure Fund (UKRPIF) calls for proposals, whereby government research funding was levered at a minimum of two to one from other sources, is perhaps a model for such future initiatives. Indeed, Northern Ireland will benefit from a new £32m Centre for Experimental Medicine at Queen’s University, through the UKRPIF scheme, which secured almost £10.5m of treasury funding matched by co-investment of £21.7m. This investment will support two new programmes of research into Diabetes and Genomics and is very much aligned with the areas of economic priority set out by MATRIX within the area of Health and Life Sciences. Within the European context, cooperation has been the essence of funding for research and innovation for many years. The launch of Horizon 2020 – which will see nearly €80

Ireland and across the island of Ireland. A new research funding agreement between the DEL and Science Foundation Ireland (SFI) was recently announced by the DEL Minister and the Irish Minister for Jobs, Enterprise and Innovation. The agreement allows both Queen’s and UU to access the SFI Investigator Awards Programme and to develop collaborative research programmes with partners across the island.

million in funding allocated to research and innovation initiatives over the coming seven years – will reinforce the importance of connectedness and collaboration, particularly between academia and business. Horizon 2020 presents an important opportunity for Northern Irish businesses and universities. It is critical that we understand, and influence, these funding priorities and put effort into developing partnerships with European and international collaborators. Progress has been made in relation to Horizon 2020 with Queen’s University, in partnership with others in the region, including the University of Ulster (UU), Invest NI and the Department of Agriculture and Rural Development having formed a network of EU Northern Ireland Contact Points (NICPs). This initiative between the Department for Employment and Learning (DEL) and the Department for Enterprise Trade and Investment, has established dedicated EU Thematic leads embedded within host organisations that will support researchers and businesses in finding funding opportunities, developing proposals and ultimately securing Horizon 2020 grant funding for research and innovation. Of course there are also partnership opportunities close by, both across Northern

As the importance of connectedness and partnership become ever clearer we are taking an increasingly strategic approach to our collaborative work. For a university there are unique opportunities to leverage in-market links across students, researchers, alumni and strategic business partners: attracting international students and research collaborators to Queen’s delivers significant benefit in raising international profile and delivering local economic impact. However, building links with partners is not confined to far flung parts of the globe. We focus on building rounded relationships with our local partners - through our support for Invest NI’s Design Delivery Programme we help connect businesses to design services, or through our leading Knowledge Transfer Partnership portfolio, we help partner graduates with innovative companies to address a specific business need. Building effective partnerships takes considerable time, effort and energy to nurture and develop. However, the nature of the current and future research funding landscape is such that overcoming such challenges is critical to those organisations that wish to pursue genuine global ambitions.

Scott Rutherford, Director, Research and Enterprise at Queen’s University Belfast and member of MATRIX, the Northern Ireland Science Industry Panel.

Flags, firebombs & flashbacks

Business Finance

Sponsored by

BUSINESS FINANCE

Despite the recovery, it is still about costs The positive economic outlook is supported by Intertrade Ireland’s most recent Quarterly Business Monitor report. More companies have seen their sales increase in the last quarter and sentiment about future sales prospects and employment intentions is also positive across all sectors.

rising costs still AN issue Despite this positive news, more business cite rising costs and in particular rising energy costs as their number one issue. The popular narrative would have suggested that ‘access to finance’ and ‘lack of skills’ were the key issues to be resolved, but it seems not. Furthermore this should not be a surprise, businesses have been reporting rising costs as their principal issue for a number of years now. Therefore, perhaps it is time that policy makers started to listen (see table 1).

Positivity abounds Everyone is talking about economic recovery, and with good reason. The last year has seen accelerating jobs growth, business and consumer confidence are at their highest levels since 2007 and the housing market has finally returned to growth after five years of falling prices. According to the Office of National Statistics (ONS), Northern Ireland house price growth last year was 4.8%, this was second only to London across all UK regions. Furthermore this growth has been very much private sector focused, a trend we are almost certain to see continue with further austerity planned beyond the 2015 Westminster General Election. By default, Northern Ireland is taking the first steps to reduce its dependence on the public sector.

It is also revealing that businesses in the Republic of Ireland report the same issues despite operating in different regulatory and tax regimes. This may suggest two

By Gareth Hetherington

factors, firstly that we may be at the mercy of external market forces and secondly, being located on the periphery of Europe increases the costs we incur for many goods and commodities including energy. Sentiment is generally similar north and south on the key issues, but concerns over business and consumer confidence are much lower in Northern Ireland. This is most likely due to improved economic conditions across the rest of the UK, but it is important to note that the Republic of Ireland is a critical trading partner and our economic success is also heavily dependent on their economic performance.

Costs rising faster in N.I. Official statistics point to an increasing cost base here in Northern Ireland as well as across the rest of the UK. This is in stark contrast to the Republic of Ireland where inflation has been significantly lower. Indeed deflation (falling prices) is acknowledged as one of the main economic risks currently facing the Eurozone. Between 2007 and

Table 1: Major Factors Impacting Business (Source: IntertradeIreland, Perspective Insight)

BUSINESS FINANCE

Table 2: Cost increases in UK and RoI between 2007 and 2013 (Source: ONS, CSO)

sectors is also informative. The findings from the Intertrade Ireland Quarterly Business Monitor survey show that on average 18% of the total costs incurred by firms in the hotels and leisure sector is on energy. This is significantly more than any other sector in the economy, including construction (8.5%) and manufacturing (7%). Clearly there will be significant variability across different companies within each sector but the gap between these sectors is surprising. This finding also has implications for the Northern Ireland Executiveâ&#x20AC;&#x2122;s ambitions for the tourism industry. The rising cost of energy impacts the local hospitality industry to a much greater extent and therefore puts Northern Ireland tourism at a competitive disadvantage (see table 3).

2013 the total increase in the Consumer Price Index (CPI) in the UK was 20% (Northern Ireland doesnâ&#x20AC;&#x2122;t have its own CPI measure, but this is a reasonable reflection of local conditions), compared to just 3% in the Republic of Ireland (see table 2). The broad CPI measure can mask significant variances within individual cost categories, with some costs increasing by a significantly greater amount. The cost of food is one example which has risen by 34% in Northern Ireland compared to just 1% in the Republic of Ireland, which has significant implications for the competitiveness of our catering and hospitality industry. Property and utility costs (including energy) have risen by over 30% here compared to a small reduction in the South. The cost of transport has risen everywhere but much faster here (29% compared to just 10%) which obviously passes through to all businesses either directly or indirectly.

indigenous or foreign, is also being impacted. A further factor to consider is the impact on consumers who have seen their income levels squeezed as wages have not kept pace with inflation. This in turn reduces the level of consumer spending in the economy, particularly impacting the retail and hospitality sectors. If there is a silver lining to that particular grey cloud, then at least wage pressures have not been a cost issue for businesses in recent years.

Hotels & Leisure impacted Analysis of the costs incurred by different

The other clear finding from this research is that firms across most sectors in the local economy are spending a much greater proportion of their total costs on energy than the Republic of Ireland. Whilst further work is required to understand the rationale for cost differences across this island and in Britain, this initial research at least starts the debate on the potential measures both industry and Government could undertake. These measures could possibly include improving efficiency, increasing our sources of supply and greater integration of energy markets (north-south and east-west). â&#x20AC;ş

Table 3: Proportion of total costs spent on Energy (Source: IntertradeIreland, Perspective Insight)

The faster pace of cost increases in Northern Ireland raises a number of challenges to local businesses. In the first instance, it impacts our competitiveness. This can have wide reaching implications, including the volume and direction of cross border trade and the appeal of Northern Ireland as a tourist destination, a sector where we are already well behind the Republic of Ireland. In addition, our attractiveness for business investment, either

MAY 2014

BUSINESS FINANCE

Lower energy costs would keep more money in the local economy.

Working to reduce the high cost of energy ticks a lot of boxes for the local economy. Firstly as we import almost all the fuel needed to meet our energy requirements, lower energy costs would keep more money in the local economy. Business costs would be reduced thereby improving profitability which in turn leads to increased investment (both domestic and foreign). Improved business competitiveness would facilitate increased sales and exports and this in turn should improve employment levels. Finally, it would also give some relief to the hard pressed consumer and that would typically benefit the high street.

manufacturing and a growing trend of â&#x20AC;&#x2DC;re-shoringâ&#x20AC;&#x2122; where domestic companies are now closing foreign production facilities and focusing their investment activity in locations within the US. Lessons can be learned from the US experience, in terms

of the steps they have taken to reduce their energy costs and simultaneously reduced their reliance on foreign sources of fossil fuels. One thing is for sure however, this is a complex issue that can only be solved over the long term. Introducing the right measures and policies to reduce business costs will take years to bear fruit but our long term economic prosperity depends on it and having this debate is the first step in that journey. Gareth Hetherington is an Associate Director with the Northern Ireland Centre for Economic Policy (NICEP), an independent economic policy unit based in the Ulster Business School and

This should not be dismissed as economic theory. A glance across the Atlantic shows that the United States has been one of the strongest growing developed economies in recent years. There are a number of reasons for this return to growth but an important part of that story is lower energy costs. This has led to a renaissance in US

sponsored by DETI, First Trust Bank, Belfast Harbours Commission and the University of Ulster. NICEP is currently working with DETI to identify potential policy measures to reduce business costs in Northern Ireland. The views expressed in this article are those of the author alone and do not necessarily reflect the views of the sponsor organisations.

BUSINESS FINANCE

Changes in the NI Banking Sector

By Adrian Doran, Barclays Head of Corporate Banking in Northern Ireland

going forward. It’s worth pointing out that the four largest banks in Northern Ireland have collectively closed over 25% of their branch network over the course of the last five years. Unlike the rest of the UK, there is no publicly available bank lending data published in Northern Ireland, so it’s impossible to know the extent to which banks’ lending volumes have been impacted over the past few years. However, what’s clear is that banks such as Barclays are gearing up to play a much bigger role in the market in the future.

ith the Northern Ireland economy finally showing signs of growth again, it is worth considering whether the banking sector as a whole is in a position to support the recovery? If so, how might the sector look going forward? It will be some time before anyone is in a position to answer the first question – suffice to say given the huge amount of legacy property problems still to be worked through in many banks, many commentators (and businesses) remain sceptical about whether the sector is in a position to fund the likely increased demand for lending over the next few years. The answer to the second question is perhaps more obvious. It’s clear that Northern Ireland’s four largest clearing banks are mid-way through a significant down-sizing of their operations, with redundancies and branch closures becoming common characteristics of how banks are re-shaping their businesses

MAY 2014

One of the repercussions of the banking crisis is that many businesses are increasingly reviewing their choice of banking partner – large companies in particular have recognised the risks of being overly reliant on one bank. We have seen a definite shift in companies wishing to have a strong relationship with a second bank, and typically this new bank has to offer something different from the incumbent. As evidence of this trend, Barclays can now count on over 40% of Northern Ireland’s largest companies as customers. Finance Directors increasingly want to ensure they have another source of debt to fund their expansion plans. In particular, we have seen many local exporters look to us for assistance, whether trading in GB or trading internationally – with 140,000 people employed in over 50 countries around the world we are well placed to assist. In many instances we have something different to offer, whether help in opening bank accounts in foreign countries, or help in seamlessly moving funds internationally using our online banking platform.

of main bank, and again we have seen a noticeable increase in enquiries from companies wishing to re-bank entirely. To this end, we widened our product range to ensure we have the full range of services that any company requires, whether operational banking, invoice discounting, foreign exchange or trade finance. In particular, our electronic banking platform “Barclays. net” is now recognised as one of the market leaders in the UK and Irish market and in 2013, Barclays won the Euromoney Award for best UK domestic cash management bank. The final step for Barclays has been to widen our target market in Northern Ireland. A few years ago we would have perhaps been seen as a niche player – for the first time we can now say Barclays is open for business right across the market – from start-ups to SMEs, to the very largest companies. The banking sector in Northern Ireland has seen many changes over the last five years – the next five promise to be just as interesting with Barclays playing an even more visible role across all business types and sizes than ever before. Barclays is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register No. 122702). Registered in England. Registered number is 1026167 with registered office at 1 Churchill Place, London E14 5HP.

Of course, many businesses are going one step further and are reviewing their choice

BUSINESS FINANCE

Helping NI businesses achieve their full growth potential

By Shaun McAnee, Head of Specialist Business, Danske Bank

lending drawn down by existing and new to bank business customers over the past year.

but also by businesses that have their primary bank account with another financial institution, who have turned to Danske

But there are other areas in which we are also making a real difference and playing our part in helping indigenous companies achieve their full growth potential.

to support the purchase of assets such as manufacturing equipment, and vehicles.

Every business needs working capital to exist and the better this working capital is managed, the more successful that business will ultimately be in the long run. Our team of dedicated cash management specialists are working closely with local firms every day, showing them how they can manage their cashflow better and maximise efficiency in their business using our award-winning technology platforms.

ow that we are in a modest economic recovery in Northern Ireland, there is a noticeable sense of cautious optimism in the local market place and business confidence is at its highest level for years. Confidence alone is not enough to propel a business forward, however. The need for sound and effective financial management and bank support is more important than ever before. At Danske Bank business lending remains a core part of our business and we have both the appetite and the capacity to lend to good trading businesses in Northern Ireland – with over £450m in new business

Invoice Finance is a very flexible, straightforward financial tool which can be used to improve cashflow and release the working capital necessary to fund growth. At Danske Bank we have invested in building a team of experts specialising specifically in Invoice Finance, all of whom are out on the road, working closely with indigenous firms across the province. This has proved to be very effective for both the customer and the bank, and in the last year alone we have seen a 65 per cent increase in our lending through Invoice Finance. The popularity of our Asset Finance offering meanwhile has also increased rapidly in recent years, with lending growth of 50 per cent in the past two years alone. While we offer this to all sectors in the local market place it has been most effective for businesses that ‘make things and move things’, such as companies in the manufacturing, agri-food and haulage and distribution sectors. It is being widely used not only by our own business customers,

Through Asset Finance we are not just providing our customers with the ability to purchase assets, we are essentially investing in their businesses and the local economy too – since those assets are being put to use to grow their business and therefore grow the local economy. Our role in supporting local economic growth also comes to the fore through the work of our Trade and Export Finance team, which continues to play a crucial role in helping Northern Irish firms break into new foreign markets through export – identified as being one of the key drivers for sustainable economic growth. Led by Ruth Graham, this locally-based team of experts is unique in the market place and is making great strides in equipping local firms with the knowledge, skills and financial support to trade outside of these shores. Important decisions about future growth are starting to be made with increasing confidence by local businesses in Northern Ireland. This confidence must be underpinned and supported by putting the right resources at the disposal of local companies – including financial resources and expertise, technology and banking relationships. At Danske Bank we are committed to doing just that – helping our business customers derive maximum value from their business and ultimately achieve their full potential. For us, it is about making local businesses ‘good to grow’.

Nicola Wolsey Deputy Managing Director Smiley Monroe

Weâ&#x20AC;&#x2122;ll help your business get

BACK TO GROWTH

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The beginning of the end By Conor Devine, MRICS

won’t say I told you so. Well maybe I will. When it comes to NAMA – the writing has very much been on the wall and recent events only strengthens that school of thought that the NAMA train is coming to a premature end. NAMA the largest property company in the world had a business plan of selling assets and getting a return for the Irish taxpayer, who ponied up with over €30bn to buy the loans to bail out bust Irish banks. In 2009 they projected they would make a profit of just over €6bn for the Irish people. This was to be over a ten year period coming to a close in 2020. At the stroke of a pen in the last few weeks, they’ve sold the entire Northern Ireland loan portfolio worth £4bn for just over £1bn to New York investment firm, Cerberus Capital Management.

within these loans back to who? Well yes – the Irish investment and property companies, however at substantial profit. So what happens next for the Northern Irish borrowers who now owe Cerberus Capital Management the money? Over the next number of weeks, a relationship manager will contact the borrower and arrange a meeting. They will then be asked to discuss their business plan and put their proposals in writing, in terms of paying the loans back (in full), in an attempt to cut a deal with Cerberus. I feel, given the fact that the Northern Ireland First Minister is being kept up to date with developments, Cerberus will try their best to work with as many of the co-operative borrowers as possible. How long this slow dance will go on is anyone’s guess, but I suspect they will be very keen to get the ball rolling in terms of their own business plan and hitting their own targets.

On 15th April 2014 Minister Noonan confirmed that he has asked NAMA to look at the possibility of selling all the loans by the close of 2015, so the writing really is on the wall for the organisation as a whole.

What will definitely happen however is that we will now see more activity in the Northern Ireland property market.

This loan note sales process is not restricted to NAMA. Ulster Bank, Danske, Bank of Ireland, IBRC, KBC, PTSB – the majority of the banks are now engaged in this process, trying to get their toxic property assets off their books.

It’s important for all of us to understand that the property market is in the midst of a huge price correction across the country. My view is that it’s only when these loans are washed through along with the legacy debt in the next few years, that anyone can say that prices have stabilised and we see any form of normality return to the property market in the country.

So who is buying all of these loans – the answer in the majority of cases are the USA property investment funds namely; Kennedy Wilson, Loanstar, Cerberus, Blackstone, Oaktree and Apollo to name but a few.

I urge caution and I for one will be watching this space with interest. Conor Devine is a Principal at GDP Partnership, heading up the

These companies are snapping up the loans at significant discount and the ironic thing is they are gearing up to sell the assets

property team he is a key player in mediation and growth within the organisation. For more information visit www.gdpni.com

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Quilter Cheviot Limited is registered in England with number 01923571. Quilter Cheviot Limited is a member of the London Stock Exchange and authorised and regulated by the UK Financial Conduct Authority.

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What to do if your customer goes bust Advice from the Department for Business Innovation & Skills

nevitably, businesses fail and – when one of your customers goes bust – it hurts. There is little you can do except wait to hear the outcome. The general outcome is that the debtor’s assets are divided amongst its creditors and the insolvent debtor is released from the burden of its debts. Once most formal insolvency processes are underway, you cannot start or continue any action to recover your debt. It helps to understand the main types of insolvency:

Bankruptcy Bankruptcy can only apply to individuals (including sole traders and individual members of a partnership). Bankruptcy petitions may be presented to the court by the individual, by creditors who are owed £750 or more, or by the supervisor of an individual voluntary arrangement. A bankruptcy order is made by the court. Individual Voluntary Arrangement (IVA) An individual comes to an arrangement with creditors to pay his/her debts in full or in part over time as an alternative to bankruptcy. The arrangement is set up by a licensed Insolvency Practitioner who will put it to a meeting of creditors. If the proposal is accepted at the meeting, the agreement reached with the creditors will be legally binding. An Interim Order is sometimes issued by a court and will immediately protect the debtor from any legal action by creditors.

Company Voluntary Arrangement A company comes to an arrangement with its creditors to pay the debts in full or in part over time. A CVA begins with the company (or its adviser) drafting a formal proposal at a Creditors’ Meeting to pay part or all of the debts. If the proposal is

accepted by the creditors, the arrangement will become legally binding and the directors will retain control of the company.

Compulsory Liquidation Compulsory liquidation is the winding up of a company or a partnership by a court order (a winding up order). A petition is normally presented to the court by a creditor stating that he or she is owed a sum of money by the company and that the company cannot pay. The Ofﬁcial Receiver becomes liquidator when the order is made but an Insolvency Practitioner will be appointed to take over if the company has signiﬁcant assets. The liquidator’s role is to realise the company’s assets, pay all the fees and charges arising from the liquidation, and pay the creditors as far as funds allow in a strict order of priority.

Creditors’ Voluntary Liquidation In a creditors’ voluntary liquidation the shareholders pass a resolution to wind the company up without the need for a court order. A Creditors’ Meeting is held to nominate the appointment of a liquidator and consider a statement of affairs. Creditors can appoint a committee to work with the liquidator, whose role is to realise the company’s assets, pay all the fees and charges arising from the liquidation, and pay the creditors as far as funds allow in a strict order of priority.

Administration Administration applies to limited companies and partnerships and is intended to get the company out of trouble and trading again if possible. Administrators can be appointed to a company that is unable, or is likely to become unable, to pay its debts. They can be appointed by the courts (on

application from a creditor, directors or partners), the holder of a qualifying ﬂoating charge over the assets of the business, or the company or its directors. An administrator’s primary goal is to rescue the company as a going concern. If this isn’t possible, the administrator will try to get a better result for the creditors than would be possible if the company was wound up. If neither of these is possible, the administrator will sell the company’s property.

Five top tips if your customer goes bust 1. You should be contacted automatically by the Ofﬁcial Receiver or Insolvency Practitioner if they know that you are a creditor. 2. If you believe an individual may be subject to insolvency proceedings and you have not heard, search the Individual Insolvency Register. 3. If you believe a company may be subject to insolvency proceedings and you have not heard, use the Companies House WebCHeck service. 4. If you think your customer is bankrupt or the subject of a compulsory liquidation, contact the Insolvency Enquiry Line – 0845 602 9848. 5. If in doubt, contact the Ofﬁcial Receiver or Insolvency Practitioner to make sure they have details of your debt. Also, contact them if you have any information about the assets or the conduct of an individual or company.

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TECHNOLOGY

The way AHEAD for SME’s

ith the impending end-of-life for Windows Server 2003 in May 2015, Leaf customers are planning their next generation IT now.

Cyber security breaches fall but cost almost doubles

usinesses in the UK have seen the number of information security breaches fall in the last 12 months, according to new data from the Department for Business, Innovation and Skills (BIS) and carried out by PwC.

Although a great solution in it’s day, Windows Server 2003 as the hub of an office network, coupled with Exchange Server 2003 for email, is an architecture that can now be improved on. With the evolution of cloud computing, virtualisation, VOIP and unified communication, small businesses can now take advantage of world class IT technologies that previously would have been out of their price range. A hybrid cloud solution is the way ahead! Leaf are discussing the following solutions as a base template architecture: • An in-house server running Windows 2012 Essentials R2. • Desktop PC’s running Windows 8.1. • Office 365. • Mobile devices running the Office 365 app. • Leaf Backup-as-a-Service. Windows Server Essentials R2 has very powerful and flexible backup routines that can output to local storage devices and also to the cloud. This service is low cost, the first 5Gb is free, then each extra GB is charged at a maximum of £0.32 per month ranging down to £0.18 per month depending on the volume required. Backups are encrypted before transmission and stored encrypted in the Cloud. These backups are off-site, safely away from your datacenter, protected by reliable and scalable storage, reducing the need to secure and protect on-site backup media. With incremental backups, only changes to files are transferred to the cloud. This helps ensure efficient use of storage and reduced bandwidth consumption, while enabling point-intime recovery of multiple versions of the data. Configurable data retention policies, data compression, and data transfer throttling offer added flexibility and help boost efficiency.

However, the cost of each breach has nearly doubled, climbing to between £65,000 and £115,000 for small companies and to £600,000 and £1.15m for large organisations. Universities and Science Minister David Willetts said the UK economy’s IT security remains at risk.

Universities and Science Minister David Willetts said the UK economy’s IT security remains at risk. “These results show that British companies are still under cyber attack. Increasingly those that can manage cyber security risks have a clear competitive advantage,” he said. Andrew Miller, cyber security director at PwC, said more needs to be done to drive true management of security risks. “Breaches are becoming more sophisticated and their impact more damaging. Given the dynamic nature of the risk, boards need to be reviewing threats and vulnerabilities on a regular basis. “As the average cost of an organisation’s worst breach has increased this year, businesses must make sure that the way they are spending their money in the control of cyber threats is effective. Organisations also need to develop the skills and capability to understand how the risk could impact their organisation and what strategic response is required.” Meanwhile, the Information Security Breaches Survey 2014 found that eighty-one per cent of large organisations suffered a security breach, down from eighty-six per cent a year ago. Sixty per cent of small businesses reported a breach, down from sixty-four per cent in 2013.

To arrange a consultation, contact Kyle Johnston on 028 9089 7650 or email: sales@leafconsultancy.com.

The survey also found 70% of companies which have a poor understanding of security policy experienced staff related breaches, compared to only forty-one per cent in companies where security is well understood. BIS said that suggests that communicating the security risks to staff and investing in ongoing awareness training results in fewer breaches.

Export Focus

EXPORT ANALYSIS

Exporting more to generate economic recovery By John Simpson

xporting more from Northern Irelandâ&#x20AC;&#x2122;s industries and modern services is the critical yardstick for the performance of the local economy. This objective underpins the current economic strategy outlined late in 2011 when the Northern Ireland Executive published the strategy designed to generate sustainable growth and prosperity. It was a carefully considered assessment of policies that would help to rebuild and rebalance the local economy.

Even as the strategy was being published there was an inadequate appreciation of the impact of the recession that had been growing, following the banking crises and the impact of the official measures to correct the imbalance in the public sector budget, as well as the tensions of the crisis management of the euro as some EU member states, including Ireland, sought financial support from the international institutions. Central to the Northern Ireland economic strategy was an expectation that the European economies would stabilise and that economic expansion might resume. The policy framework for the years after 2011 was that steps should be taken, or re-enforced, that would grow the Northern Ireland

economy. Central to that strategy was an emphasis on encouraging the local recovery by measures to help local export businesses capture larger amounts of business from outside Northern Ireland. Now, in the first half of 2014, there is clear evidence that the earlier hopes were too optimistic. The recession was at its worst in 2011-12. However, some optimism has now returned and the efforts to incentivise business expansion through increasing exports are back on the agenda. The Executive strategy, published in 2011, relied heavily on aspirations for the development of exports. In a discussion

EXPORT ANALYSIS

on competing in the global economy and increasing private sector productivity, the framework placed growing and diversifying exports alongside efforts to attract more FDI (foreign direct investment). Then in seeking measures to rebuild the economy in the shorter term, the emphasis was on increasing employment in export focused sectors.

The thesis of the 2011 strategy was easily understood. The private sector in Northern Ireland was expected to grow faster than the private sector in the UK and the expansion in Northern Ireland was, in turn, linked to an even better record in seeing an increasing level of exports of goods and services by the private sector.

The central thrust of the Executive strategy was plainly stated. ‘...the emphasis of this strategy is on developing a stronger and more export based private sector.’ [page 40]

Events conspired to challenge that ambitious scenario. In the serious recession, each of the critical performance yardsticks has been faulted. The logic of the chain of causation was commendable. However, the overall market conditions made it unrealistic.

There followed a number of action points. • To assess the competitiveness of the NI economy we will implement a comprehensive and widely recognised assessment methodology. The process of measuring Northern Ireland’s competitive position will be taken forward annually and reported on by the Executive. • The rate of growth of exports, compared to the overall growth in the economy will be a key indicator for this strategy. • Achieving the target of greater private sector output growth, relative to the UK average, will also be an important indicator on rebalancing the Northern Ireland economy.’ [extracts from page 84].

MAY 2014

Early in 2014, the NI Executive must now reappraise its policy stance. Has the competitiveness of the private sector improved and improved sufficiently to give enough private sector businesses sufficient leverage in international markets to gain more export contracts? Alternatively and as a refinement of the assessment of competitiveness, have local businesses improved their competitive ability to gain more market share in the GB market which, from a local standpoint, is the equivalent of an external market place.

different reasons, Northern Ireland may have seen the relative competitiveness of some private sector businesses slip slightly when compared to the overall UK changes. Unlike Scotland, Wales and the North East of England, which have seen a relative improvement in the measured value of GVA per hour worked, Northern Ireland has seen a small relative movement the wrong way. The relative loss of competitive ability in Northern Ireland, even if only a marginal loss, is a far from reassuring outcome of the recent recession. Since 2008 when turnover in the private sector in Northern Ireland peaked at just over £17bn (in 2012-13 prices) turnover has fallen so that in 2012-13 it was still 2% below the levels in 2008. In three of the last five years, business turnover has decreased. Given the emphasis on encouraging external sales (exports plus sales to GB), after a nearly steady but slow improvement in the period from 2002 to 2007, since 2007 external sales have tended to level-off. The significant impact from the recession is that sales in GB have edged upwards slowly but sales in the wider export markets have been falling. ›

One of the worrying features of the last five recession years is that, for

EXPORT ANALYSIS

The critical test in 2014 is whether export sales will begin to recover as some of the larger world countries try to expand their economies. One of the key features of 2014 will also be the degree of growth in the Northern Ireland economy. The Centre for Economic Policy has already estimated that Northern Ireland will lag behind the GB experience. The logic of the forecast is acceptable although the consequences do point to a local economy lacking the dynamic that would answer the challenges of the official strategy. The Northern Ireland economy is growing again but not as fast as the overall UK figures. Partly this difference may be an adverse impact from the level of political instability (as flags, parades and ‘the past’ are unchanging negative influences). Partly the difference can be attributed to the modest efforts to build the management and leadership necessary to improve competitiveness.

However, if Northern Ireland is to make real progress, political and economic influences need to be enhanced in a positive direction. The business organisations are encouraging their members to make bigger efforts. Networking events, mentoring arrangements and trade missions are all needed and need to work effectively.

“The challenge to grow the Northern Ireland economy is as stark as ever. Competitiveness, productivity, and keeping down costs are all on the agenda.” The banks have been playing a bigger part but they can act to facilitate business ambitions rather than become trading principals. The Chancellor of the Exchequer has injected extra funds to help finance higher levels of exports. These are useful supplementary forms of incentive.

Unfortunately, probably because of concern about a challenge on European competition policy, special or cheaper funding to accelerate export expansion is not available. Nevertheless, the commercial banks are taking an active role in considering extended credit for exporters who may need finance to further grow their businesses. The recession is an all too recent memory which will fade into the background. The challenge to grow the Northern Ireland economy is as stark as ever. Competitiveness, productivity, and keeping down costs are all on the agenda for business entrepreneurs. Invest NI can be more forceful. Potential exporters can be encouraged and supported in seeking new external markets. Existing exporters can be ready to act ‘piggyback’ for other businesses dealing in complementary products. The challenge is that any business principal who takes a passive uninvolved stance is actually not doing that business any good and incidentally may be eroding the collective business dynamic that is now so badly needed.

EXPORT FOCUS

So you want to export to... the US? UK Trade and Investment gives us a rundown of the information aspiring exporters to the US need to know.

Insurance

he US is the largest, most competitive and technologically advanced economy in the world.

You will need several types of insurance for your US operation. Some examples are: • general and product liability. • business property. • directors and officers liability. • employer’s practices liability. • intellectual property infringement. • professional liability. • workers compensation. • personal insurance (e.g. medical, disability and life insurance).

The US Gross Domestic Product (GDP) has consistently seen growth of 1.8% or more since 2011. It is the UK’s top export destination and is ranked the fourth easiest country to do business with.

Challenges The US is a large market to do business in. This can lead to some unique challenges:

Intellectual property • vast regional differences between the 50 markets/states. • strong competition, causing saturation of products or services. • high customer service expectations. • high cost of living in major cities. • significant time difference (between five and eight hours behind). • high cost for business insurance. • litigation is common. • expensive and time consuming process for work visas.

Trade between the UK and US In 2012, UK trade in goods and services to the US was £135bn, up 3.6% from the year before. Around 17% of all British exports went to the US in 2012. The US and the UK are each other’s largest foreign investors. This investment supports approximately one million jobs in each country. Top 10 UK exports to the US in 2012: • machinery and transport equipment • chemicals and related products

MAY 2014

If you intend to sell goods or services to the US, you should consider applying for US trademark protection. You also need to check that your trademark doesn’t infringe any existing trademark. In the US, a company name is not the same as a trademark and will only give limited protection.

Banking • mineral fuels, lubricants and related materials. • miscellaneous manufactured goods. • commodities. • manufactured goods. • beverages and tobacco. • food and live animals. • crude materials. • animal and vegetable oils, fats and waxes.

Legal considerations The US market can be quick to engage in legal proceedings. You should always get qualified legal guidance before entering into any agreement. Ideally, your contracts should be reviewed by lawyers who understand both US and UK law.

Opening a bank account in the US can be challenging. Some US banks will offer accounts to UK companies who have accounts with a UK affiliate. Contact your local branch and ask about your options for opening a US account.

Tax The US tax system is complex and confusing. You’ll need tailored advice about your tax rates from a certified accountant or tax lawyer There is no Value Added Tax (VAT) in the US. Each state determines and collects sales tax on an individual basis. View the list of http://www.taxadmin.org/ fta/linkdefault.phpstate sales tax offices

EXPORT FOCUS

Overcoming barriers to boundless export opportunities By Alyson Magee

From left, Tony O’Neill, chair of the Northern Ireland Food and Drink Association (NIFDA) and Agri-Food Strategy Board and Michael Bell, executive director of NIFDA with NIFDA’s newest member and Access 6 participant Helen Troughton, Armagh Cider Company.

ichael Bell, executive director of the Northern Ireland Food & Drink Association (NIFDA), believes opportunities for Northern Irish exports are boundless, but are currently being held back by issues such as limited air and sea links, energy provision and a gap in skills development. “With four-fifths of Northern Ireland’s agri-food output exported, greater cooperation and ‘co-opetition’ is required to elevate our food and drink to the world class reputation it deserves,” he says. Greater co-operation and financial support is vital if the local agri-food sector is to make any progress towards the ambitious targets laid out in the AgriFood Strategy Board’s (AFSB) Going for Growth strategy – namely growing exports by 75% to £4.5bn by 2020. In addition, greater ‘co-opetition’ with food and drink manufacturers in neighbouring markets will help Northern Ireland make its voice heard in the crowded global marketplace.

With Northern Ireland only achieving an export equivalent value of 291m against an annual 22,210m in agri-food exports by its neighbour the Republic of Ireland, “the potential for growth is huge and we need to really ramp up our export efforts to achieve that potential,” says Michael. NIFDA has close ties to the AFSB, with which it shares a chairman and three directors, and is keen for the Executive to move forward with adopting and supporting the AFSB’s strategies, including the Agri-Food Loan Scheme. “The AFSB was created when the Executive

EXPORT FOCUS

realised it had significantly undervalued food and drink in Northern Ireland, and failed to look at the whole supply chain, from animal feed to hygiene and technology – finishing with products for export,” says Michael. “A sixth of private sector employment in Northern Ireland depends on the agri-food supply chain,” he says, pointing out that Bombardier is typically named as the biggest local business when it is actually Moy Park.

LOCAL ASSETS “One of the areas NIFDA is very active in is trying to change the perception of Northern Ireland food and drink,” says Michael. “We are world class.” As evidence, he cites such examples as Moy Park winning Processing Business of the Year 2012 and Mash Direct, winning Chilled Foods Manufacturing Company of the Year 2011 – while local manufacturers continue to sweep the board at the Great Taste Awards with Punjana, for example, achieving nine gold stars in one year. Developments such as the new Institute for Global Food Security at Queen’s University Belfast “further enhances the industry’s overall reputation by reflection,” says Michael. “It further outlines our ongoing investment in being outstanding in our field. I said to a group of students recently, in my lifetime there has never been a more exciting opportunity for food and drink. It’s a huge challenge but also a huge opportunity.” And: “We forget one of our great strengths,” says Michael. “From an export point of view, we live in an area with an abundance of agricultural land with high rainfall and a temperate climate.”

ACCESS 6 NIFDA is one of the partners, alongside the Irish Exporters Association and Scotland Food & Drink, which is delivering the Access 6 export development project funded by the EU’s INTERREG IVA programme. The initiative aims to provide 90 SMEs across the border regions with the marketing skillsets, and logistical support to successfully supply and trade in a number of foreign markets including the UK, France, Germany, Scandinavia, North America and Benelux. It also aims to create an additional 90 new

MAY 2014

Pictured at the Arc de Triomphe are, from left, Access 6 Director Michael Bell and Access 6 Project Manager Harry Hamilton.

jobs within the participating businesses, and up-skill a further 400 SMEs across the three border regions. “The scheme is defined politically,” says Michael. “The EU wants growth to be more evenly spread.” As well as training and mentorship in marketing and logistics, including a comprehensive E-learning site and support from Access 6 Project Manager Harry Hamilton, many participating businesses have the opportunity to go on trade missions to the markets. “Access 6 is an example of a project which works with a small group of companies,” says Michael. “Going for Growth is similar and more ambitious – for companies across all parts of Northern Ireland. “Invest NI has a new Director of Food

and Tourism, John Hood, and we are working closely with John and his team to support the work they are doing to help industry export more. The message for our Executive is we need to invest more and co-ordinate our efforts. “We only have to look at the Republic of Ireland and Scotland to see what our nearest neighbours are doing. We use the word ‘co-opetition’ – if we can work together, we can all win by selling a lot more to the rest of the world. It’s about getting that message through to the community at large.”

SKILLS DEVELOPMENT In addition to Access 6, NIFDA is involved in a variety of initiatives aimed at boosting the opportunities that are available to local food and drink – spanning government and academia. ›

EXPORT FOCUS

This includes the ‘Future Skills Action Plan for Food and Drink Manufacturing and Processing’, a joint initiative by the Department for Employment and Learning, Department of Agriculture and Rural Development and Invest NI. Its latest output is a management programme jointly developed by Queen’s University Belfast and Cranfield University, the ‘Leaders in Industry Programme for the Food and Drink Manufacturing Sector’, which is ‘aimed at talented individuals who are preparing for wider, more strategic positions within the food and drink manufacturing sector’. “We are also involved in sector attractiveness, working with careers teachers and supporting educators,” says Michael. “People don’t understand that agri-food is number one in Northern Ireland and since the start of the recession it has grown by a third. “It’s not just people in white hats and coats; there is a panorama of jobs. I’ll not pretend that a job in the food and drink sector is not a challenging career but it’s a very rewarding one. An enormous amount of people stay for 10 years-plus – and 25, 35 years-plus is still not uncommon in food and drink.”

BARRIERS TO GROWTH Among factors hampering export growth is the current trend for local sourcing, which Michael says is great for getting companies off the ground, and established, but prohibitive once a business reaches a certain size. The Balmoral Show should widen its scope to reflect the importance of exports in the agri-food business mix, he says, and could become a showcase to international visitors as well as local people. Government needs to simplify its planning regulations for the manufacturing sector. “One of the problems is speed of response,” says Michael, with the local planning process so lengthy, a number of companies have had to go ahead and proceed with construction in the hope approval will be granted or risk losing new business.

regulatory requirements and contracts are accurately understood. “At the minute, this area is very limited and we would like to see export readiness improved,” says Michael. Another issue for manufacturing is the energy question with the west of the province, where many food and drinks companies are based, suffering from limited electricity supply. Logistics, particularly access by air and sea, are further concerns. “If we’re going to grow our export base, it’s very important to have air transport availability and vital that Belfast International Airport is developed as our principal airport,” says Michael. “To allow it to decline would be a grave mistake.”

“You need to rapidly expand facilities to expand export markets,” he says. “It’s absolutely vital that our regulatory authorities can respond in a sensible timeframe.”

Dublin is handling an annual 20 million passengers against four million through Belfast International. “We’ve been talking to the business community and, more and more, they travel through Dublin,” he says, with a similar migration occurring in sea routes due to the high cost of ferries out of Belfast and Larne.

Meanwhile, both Government and the food and drink sector need to brush up on their multi-lingual skills – French, German, Spanish and Chinese in particular – to ensure

Currency fluctuations can also have a negative impact on export prospects. “The more stable the environment, the easier it is to build exports,” says Michael.

Is exporting for you?

IFDA uses a matrix, plotting value per metre cubed against shelf life, to help food and drink manufacturers establish if exports are viable for their business. Bearing in mind, it will typically take two days for products to be transported across continental Europe, “you have to give consumers enough shelf life when they buy the product,” says Michael. Drinks and any ambient lines with a long shelf life are ideal, while meat, cheese and fish products are also generally adaptable to exports. In terms of success to date, “the common

denominator is adding value,” says Michael, citing companies such as Kestrel Foods which is exporting its Forest Feast snacks worldwide and Mash Direct which is now sending its value-added mashed potato and vegetable lines to Dubai. Fane Valley is another export success story, with the milk processor recently announcing it has secured new business worth over £40m in China, Indonesia, Algeria, Venezuela, Cuba and Europe. While GB is the key export market for Northern Ireland food and drink, importing half of everything that is produced, manufacturers are increasingly tapping into other

European and international markets. “I would encourage every company to be thinking about exporting,” he says, recommending interested businesses review the Access 6 E-learning tool to determine their readiness before going to Invest NI “who should be able to support you in terms of beginning to research the market and drawing up a plan,” says Michael. “It is truly a very exciting time for Northern Ireland food and drink. We need to grab the opportunity and shout about how good our produce is and I have no doubt we will reach our export potential.”

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Northern Ireland diaspora could be a powerful force In the latest of our diaspora profiles in conjunction with NI Connections, Ulster Business talks to entrepreneur Tom O’Brien about Northern Ireland’s credentials and the great story to be told.

Where is home for you? I split my time between Northern Ireland, which I think of as home, Cheshire and London, which is where much of my work is focused. Where in the world have you worked or are you currently working? There are not many continents that I haven’t worked in. I spent alot of time in the Middle East in the early 80s, Far East and North America in the 90s. I was lucky enough to have worked in the Middle East during the time when Arab economies were just beginning to diversify away from oil and develop their own national infrastructure and economies and to see the change over the last two decades. More recently I have focused on developing business in the Far East, where there are plenty of opportunities, not just in the traditional markets of China and Japan, but also in Singapore, Vietnam, South Korea, Malaysia

and the Phillipines. I have also become involved in developing business in the Ukraine, Georgia and Azerbaijan which is a much more interesting market right now than Russia; there are some intriguing prospects there as businesses are beginning to ‘wake up’ to the potential of the EU market. The Russian influence in some of these markets has diminished but the after shock of the recent actions in Crimea will be difficult to determine and could have dramatic repercussions. Indeed, my partner was caught up in Crimea and had a 550 mile trip, at night in a clapped out Volga and fog, from Yalta to Kiev. But that is another story! It just re-enforces the point that the Northern Irish get every where. What would a typical day or week entail for you? There is no typical day, that’s the appeal for me, especially in building business in developing markets and emerging

economies. I spend a great deal of time looking at market trends and economic data, in essence gathering intelligence, in order to get a clear idea of what opportunities to target and develop. Maintaining situational awareness is key when advising companies who are keen to expand their business into new markets; it is equally important for those who are consolidating their business model or restructuring to fit with the needs of the global market. I will be on the road (or on rails or in the air) two or three days a week either spending time with existing clients, advising and mentoring boards or senior executives. I have a pretty extensive international business network and I try to make as much time as possible to nurture and keep up to date with the key players in that group. The city of London, Wall Street and Palo Alto are fascinating places to work and great environments to understand and see how opportunities can attract the essential business funding. What do you think the perception of Northern Ireland is around the world, if it is even on the radar? In terms of business, I don’t think Northern Ireland is on many people’s radars; and where it is, I think this is too often for the wrong reasons. That said, those international businesses that I work with that have invested in Northern Ireland always have an extremely positive tale to tell. Without fail they will say that people are our number one asset and one which we need to nurture and develop. I have become concerned at recent changes to our educational system as I judge that we tamper with our educational system at our peril as it may well undermine our knowledge, skill and human capital.

EXPORT FOCUS

is huge and something which people tend to underestimate. I am a great believer in ‘people, buying from people. The secret is enabling people to tell the story and having a story to tell – which Northern Ireland has.

Which sectors do you think offer Northern Ireland companies the most global potential at present? The obvious areas are technology and financial services and of course the Agrosector. Less obvious perhaps is the Defence and Security sector. Northern Ireland has real potential here. We have a group of some of the most talented and experienced security professionals on the globe who can offer advice to governments and businesses who are facing real security challenges in an increasingly uncertain world. Our defence companies also have much to contribute, not just to the aerospace industry but to defence itself. Two that are worthy of note are Thales Air Defence in Belfast who are developing their sales pipelines in the Middle and Far East, Henry Brothers of Magherafelt who are now regarded as one of the leading defence infrastructure providers in the UK. Not to forget Wrights of Ballymena who are at the forefront of Eco-Transport. I see their success on the streets of London everyday. What a story they have to tell.

of my clients are very wealthy Russian emigres and very shrewd investors. They had not appreciated the opportunities in Northern Ireland – until we told them. How do you hope to help NI Connections in the work it is doing? I want to use my business network to help promote the NI Connections initiatives. I feel that we need to attract partners who are interested in long term direct investment whilst at the same time promoting Northern Ireland companies overseas. In an increasingly connected world, the power of intelligent networking and data

Are you optimistic about the economy and/or business life in 2014? I believe the economy has turned, it is still fragile and we must be prepared to take risk and to expand. There are a myriad of opportunities for Northern Ireland companies to do business around the globe and no shortage of investors whom we should be looking to attract. Importantly Northern Ireland is investing in some exciting research and development, which will need to be developed and exploited, to give us real competitive advantage. I judge that we have the ‘human edge’ and infrastructure to have a very vibrant domestic and export economy – which can only be good for everyone. My sense that two areas worth watching are the on-shoring of manufacturing and services which had migrated off-shore over the past decade. Big Data and its exploitation linked to cyber-security are areas in which we will need to develop deep capability if we are to maximise these opportunities and to be real players in the Global Digitlal Economies. Information and data exploitation are the elements which will give business the agility to adjust to global uncertainty and gain competitive advantage.

Do you think the Northern Irish diaspora could be a powerful force in the development of the economy here? Absolutely. People from home, living and working abroad are undoubtedly Northern Ireland’s best ambassadors and most enthusiastic advocates – they just need to be enabled. Northern Ireland has an impressive set of credentials and a great story to tell – we just need to tell it. Two

MAY 2014

PROFILE

Hardwired for Success Ben McLaughlin, Senior Director of Worldwide Wafer IT at Seagate Technology, is the third student to be profiled in our “Studying Success” series. He is currently studying a Masters in Business Administration (MBA) at the Ulster Business School’s Magee campus.

en has international responsibility for three high-tech nanotechnology facilities, one here in Ireland and two in Minneapolis in the US. These facilities are chartered with volume manufacturing and research and development of recording heads for the hard disc drive industry. Ben says: “My main concern is to deliver 24/7 high-availability IT services into complex manufacturing and research environments, where facility operations are 100% dependent on the IT systems. I am also chartered to deploy bespoke software solutions to enable product builds that are controlled to design tolerances of angstroms, which is at the sub-atomic level.” What did you study at the Ulster Business School? I am currently studying an MBA at the Ulster Business School at Magee.

Why did you choose this course? One of the key competencies of senior leaders is a strong desire to continue learning. Although Seagate makes significant and consistent investment in leadership development, I felt that the time had come for me to undertake a more intensive period of learning. I believed that the MBA could give me that experience. What attracted you to the Ulster Business School? Firstly, after researching industry for the most beneficial leadership qualification, it’s clear that an MBA is recognised and valued internationally. Following very productive discussions with the course director at the Ulster Business School, I was convinced that was where I wanted to study. What part of the course do you enjoy most? I really enjoy the access I have to the experienced academic staff at the Ulster Business School and the huge body of global research material. Both have challenged me to think differently and to adjust and adapt my approach and leadership style. These elements have also had a gelling effect on my understanding of leadership concepts and theory. I am currently studying Innovation & Entrepreneurship and through this module have analysed and gained a thorough understanding of the innovation systems in Northern

Ben McLaughlin, Senior Director, Worldwide Wafer IT, Seagate Technology, Masters in Business Administration (MBA), Ulster Business School.

Ireland, the UK and the EU. There are huge opportunities for NI business to become part of the global Knowledge Economy through implementation of the Innovation Strategy, and by leveraging the significant resources offered by the Horizon2020 EU funding mechanism. As the world begins to edge out of recession and with the next ‘IT gold rush’ upon us, ‘Big Data’, this is an exciting time to be in business. How will this qualification help in your future career? I have a strong belief that as you progress up through more senior levels of management, it is important to match that progression with appropriate formal qualifications. The MBA more than meets that requirement. Who do you admire most in the business world and why? I admire people like Richard Branson who have achieved so much but still manage to maintain positive relationships with their customers. It may sound partisan, but I really admire Steve Luczo, Chairman and CEO of Seagate. Twice during my 18 years at Seagate, Steve has reinvented the company under very challenging circumstances – once against the backdrop of a notoriously competitive and fragmented market and then again during the global recession in 2008. Steve is a charismatic leader who inspires trust and most of all, makes the right decisions at the right time.

Flags, firebombs & flashbacks

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Is the glass only half full for local publicans? Northern Ireland’s licensed trade has been undergoing a transformation over the last few years and, while the future looks brighter, there are still strong headwinds for the region’s publicans, says Helen Carson.

t’s been a turbulent few years for the Northern Ireland pub trade. Dwindling consumer spending has meant the sector has suffered in line with the downturn in the economy since 2007, a state of affairs which as meant some of the region’s most famous watering holes have either been sold, are for sale or are in the hands of administrators. All of Northern Ireland’s licensed trade has suffered but for some, the more buoyant economy is boosting custom and helping lift profits. Brian Nixon, Director of the Whelan Partnership which handles many of Northern Ireland’s best-known bars and hotels, said this sector is ‘quite healthy’, but points out the picture for publicans across Northern Ireland varies between the city and the country. “The main focus of interest for the pubs sector is in Belfast City Centre with general trading in recent years boosted by an increasing number of tourists coming to Northern Ireland to enjoy attractions such as the Titanic Signature Project, and more set to follow with forthcoming events such as the Giro d’Italia,” he said. “Outside the city, however, it is different and we are still seeing country pubs closing and their

licenses being sold. Every week we are disposing of a licence from a rural or village pub. The country publicans have said some days there is no point opening their doors.” The latest figures from Pubs of Ulster reveals there are 1,300 licences in Northern Ireland – the total figure is capped to 1,500, so there is still capacity in the market. Mark Carron from Osborne King agrees the pub trade in provincial towns has suffered but said Belfast City Centre is ‘doing well’.

“The growth of supermarkets with off licences in the last ten years means you don’t have to go out if you want to have a drink. Ninety-five per cent of liquor licences were sold to chains.” “New pubs such as The National and The Dirty Onion in the Cathedral Quarter seem to be doing a good trade, likewise the Dublin Road. Belfast generally is doing very well

with greater numbers of people heading in there at the weekend. The current economic conditions are favourable and there seems to be a loosening of the purse strings among consumers,” he added. The licensed trade made the headlines last year when Northern Ireland‘s biggest pub chain Botanic Inns went into administration with seven of the city’s best known bars subsequently sold, including The Apartment, The Kitchen Bar, Ryan’s Bar, The Parador, McHughes, all in Belfast, Denvirs in Downpatrick and Molly Browns in Newtownards. Osborne King was involved in the sale of seven of the pubs on behalf of the administrators KPMG. Mark says: “We have sold 30 pubs and hotels in 2013 and I think most of the ‘stress’ sales – such as those pubs which have ended up in administration – have happened and anyone who has bought is refurbishing and re-energising, ready to trade again.” One of Botanic Inns former pubs, The Fly is currently for sale with an asking price of £800,000 with the Whelan Partnership. Brian says: “There is healthy interest in the trade for The Fly. The asking price is good for the current market,

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probably not five to six years ago, but existing operators are interested.” Brian has claimed national pub chains have expressed interest in Belfast City Centre bars currently on the market, however, he is aware such potential demand is not expected to bring prosperity to rural publicans. “The number of licences in Northern Ireland has fallen, and this will probably continue to fall because rural bars are no longer economically feasible,” says Brian. “The growth of supermarkets with off licences in the last ten years means you don’t have to go out if you want to have a drink. Ninety-five per cent of liquor licences were sold to chains.” “It has always been difficult to get a license in Belfast City Centre as you have to prove need, but it can be done.”

The Apartment Bar is one of Belfast’s hottest pubs.

beer has a lower alcohol content and the pub provides a regulated environment in which it can be consumed safely.”

He adds the weekend bar trade in Belfast City Centre is brisk: “Publicans in Belfast City Centre say while it is quiet during the week, they get the crowds at the weekend. There is a good buzz in the city and you can see this in the Cathedral Quarter and in places like Brunswick Street.”

The Chancellor’s decision to cut beer duty by taking a penny off the pint earlier this year was praised by the organisation: “We also welcome the freeze on the duty on Scotch whisky, spirits and ordinary cider. The government has demonstrated a willingness to support business and help pubs remain afloat by keeping their duty down.”

Despite the competition from supermarket chains for the tipplers’ business, Colin Neill, Pubs of Ulster chief executive, is backing the traditional pub, adding: “Draft

Belfast nightlife is set to pick up with recent announcements of a new steak and seafood restaurant, Stix and Stones, which is due to open in Upper Queen Street in

May by chef brothers Daniel and Martin Courtney – their £250,000 investment will create up to 20 jobs. Meanwhile, £750,000 nightclub Villa at Dunbar Street in the Cathedral Quarter opened in March creating 90 full and part-time jobs. Mark believes there is growth in the pub trade: “Northern Ireland is winning events such as Giro d’Italia and the Irish Open and we have the Circuit of Ireland, all of which are predicted to bring ever greater visitor numbers to the province up until 2017. There are a lot of good things happening in the city and events just past such as City of Culture status for Derry have helped shape visitors’ views that Northern Ireland is a good destination.” He points out, however, that ongoing issues such as commercial and VAT rates are still proving big challenges to publicans: “The VAT in Northern Ireland is 20% compared to our nearest neighbours in the Republic of Ireland who pay nine per cent and that is unlikely to change. Likewise, pending the rate revaluation in 2015, I imagine the Land and Property Service will continue to need the revenue from commercial rates.”

Say cheers!: India Stock, Villa’s VIP & Bookings Manager, is joined by Paulo Reyes, the club’s PR and Marketing Manager at the high end nightspot in Belfast.

MAY 2014

Mark adds the picture for pubs is more positive now compared to five years ago and pub transactions are up: “We have lost a lot of pubs, but those which have survived the previous five years are very good quality bars where you would be happy to spend any night of week at.”

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Loan Sales - a positive step forward By Robert Ditty, Investment Director, Osborne King Commercial Property Consultants

ne of the big business stories last month was Cerberus Capital Management’s acquisition of NAMA’s Project Eagle loan portfolio comprising 850 properties mainly located in Northern Ireland for a reported £1.3bn making it the Agency’s largest single loan book deal to date. The deal marks another stage in the process of de-leveraging property loans and assets in stark contrast to the almost frenetic leveraging of assets and loans that was commonplace during the boom years. In order to divest themselves of nonperforming loans/assets, lenders are typically faced with three options: consensual asset sales, enforcement over assets or debt sales. The banks’ significant exposure to property and their strategy to reduce

property lending on their balance sheets has focused minds on debt sales. This allows for larger tranches to be sold quickly to one buyer rather than multiple individual asset sales, which would not only take longer but also potentially flood the market.

highest-quality commercial property loans. So we know what is being bought, but who are the buyers? To date, they are all private investment or capital management companies headquartered in the United States and operating globally.

Project Eagle is the latest in a number of debt sales affecting the Northern Irish property market. The start was Lloyds’ announcement to sell a substantive part of its Irish property loan book, Project Harrogate, which was acquired in 2012 by Oaktree for £260 million. More recently, Lone Star purchased commercial property loans originating through the IBRC, formerly Anglo Irish Bank’s UK businesses, Project Rock and Salt, for €7.3 billion while Ulster Bank is overseeing Project Button, a €850 million property portfolio sale containing some of the Bank’s

Cerberus, one of the world’s leading private investment companies, was established in 1992 and describes itself as “a pioneer in the acquisition and management of non-performing loans” while Lone Star was founded in 1995 and invests in real estate, equity, credit and other financial assets across the world. So far, so good, but what are the implications of these sales and how are these new owners likely to handle the loans that they have acquired? In the short to medium term, it is unlikely that we will see any dramatic changes and certainly not a flood of sales. Although the loans have been sold at a substantial discount, from £4.5bn to £1.3bn in the case of Project Eagle, the debt remains with the borrower i.e. the original property owner. If the borrower is compliant with all loan conditions, it should be a case of business as usual. New loan owners will seek typically to work with borrowers, understand their portfolios and take a strategic view that could include developing new business plans and agreeing new asset strategies. On the other hand, non-compliant borrowers perhaps face a period of uncertainty and we do not envisage any of these new loan owners adopting a different approach to the original banks, which could mean that enforcements will ensue. Since the loans have been bought at a discount, this may well offer borrowers an

opportunity to re-finance. Indeed, we are starting to see new bank lending albeit on a selective basis into property deals which will reinvigorate the market. In general, the market sentiment is one of increased optimism inspired by positive economic indicators pointing to genuine recovery. Interestingly, this renewed confidence has not yet translated into significant transactional activity. One theory is that until the ongoing debt sale process is concluded, banks and property owners

have stalled any sales and are waiting for the new loan owners to understand individual assets and borrowers’ business strategies. On the plus side, Northern Ireland still offers investors enhanced returns compared with other regions. There is demand for good quality assets which is leading to rising prices in some cases, for example, Westfield’s proposed sale of Sprucefield Retail Park to Intu (a new investor to Northern Ireland for a reported £68.4m.

“Northern Ireland still offers investors enhanced returns compared with other regions.” MAY 2014

And while it is early days yet, there is reason to believe that loan sales will be a positive step forward especially going by the words of Cerberus Capital Management’s Chairman, John W. Snow, who has stated publicly “Cerberus is a patient, long-term investor” going on to say that the company’s track record is one of “making significant improvements to the assets that it manages”. It is likely that other buyers will adopt a similar approach and take a long-term view regarding the assets and/or loans that they have acquired. Such an attitude coupled with a return to longer-term, normalised lending should result in a more favourable and sustainable property landscape.

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Bumpy road to construction recovery

s the local construction sector looks to get back on its feet after six years of woe, the representative body for the industry has elected a new leader. Mrs Rhona Quinn (QMAC Construction), took over from Derek Martin (H&J Martin) as President of the Construction Employers Federation (CEF) at the start of April and gave her first address at the CEF Annual Dinner recently. Acknowledging the great leaders of industry that have held the post of CEF president over the years and her own unique status amongst them, Rhona noted that she had some big shoes to fill – albeit never before had those shoes been high heels. There is palpable hope in the industry that Rhona’s two-year presidency will herald a resurgence in the sector. However, evidence of a recovery to date has been mixed. The Q4 2013 Northern Ireland Construction Bulletin, published in April 2014, showed that construction output in Northern Ireland in the final quarter of 2013 decreased by 3.7% compared to Q3 2013 and was 7.6% lower compared to the same quarter in 2012. John Armstrong, Managing Director of the Construction Employers Federation (CEF) said: “The figures for the fourth quarter are disappointing news for the industry and run contrary to more positive signals we have seen in recent months. For example in the second half of 2013 employee jobs in the industry increased for two consecutive quarters for the first time since 2007 and the CEF State of Trade Survey for Q4 indicated that 42% of companies were operating at full or almost full capacity.”

The newly elected President of the Construction Employers Federation (CEF), Rhona Quinn, Managing Director of QMAC Construction with Danny Kennedy MLA, Minister for Regional Development and John Armstrong, CEF Managing Director at the CEF Annual Dinner in the Dunadry Hotel.

“It is clear that the larger local companies are still heavily reliant on work outside Northern Ireland to maintain and grow their businesses. Approximately 60% of the turnover of the top 20 locally based contractors was generated in Great Britain in Q4 2013. For the top five contractors this figure was closer to 90%.” “Locally, many contractors are still waiting to see the recovery materialise. The industry wants to see an increase in activity on the ground in Northern Ireland but is concerned that the Government and the banks are not facilitating this.” “We call on the Northern Ireland Executive to set out clearly how it will spend the £1.6bn of capital funding this year and to adopt the Belfast Metropolitan Area Plan (BMAP) without any further delay. We also appeal to the relevant Ministers to unlock outdated

planning agreements that are preventing private house building and to allow Housing Associations to deliver more social homes through negotiation with developers.” “Regarding the banks, we continue to hear that construction companies are having great difficulty in obtaining loans and there are also concerns about how the banks will react as the value of construction businesses begins to rise.” “Whilst we do expect the road to recovery to be bumpy we remain positive about the industry’s performance in 2014. Almost half of respondents to our State of Trade Survey expect their workload to be higher in 2014 compared to 2013, with only 20% expecting it to be lower. This is the most positive outlook reported by the industry since 2006.”

LET’S GET STRAIGHT TO THE POINT... It’s property advice, but it’s just a wee bit sharper.

Instinctive Excellence in Property

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Do not abandon all hope! By Graham Pierce, Worthingtons Solicitors

oth laymen and lawyers can be too quick to assume that a right of way which has not been used for many years has somehow been lost (or “abandoned” to use the legal terminology). However, a recent Court of Appeal case in England has underlined how difficult it can be for a right of way to be lost in the eyes of the law. In Dwyer –v– Lord Mayor and Citizens of the City of Westminster the right of way in question was created in 1922 and had not been used for more than 40 years. Yet the Court of Appeal still ruled that the right was subsisting and had not been abandoned. In this case the passageway in question had been completely blocked at both ends and the beneficiary of the right – the City council – had no access to it at all. The council’s case was that it did not need to use the right of way at the time in question as it had alternative access arrangements, but that it may need to do so in the future. The court held that the council’s actions were not consistent with those of a landowner who firmly intends never to use the right of way again and the council had not acquiesced in the closing up of the passageway. Accordingly, Mr Dwyer was ordered to reopen the passageway.

Airspace CAN BE AS valuable as land An interesting question which often arises in high density, high-land value areas such as London, where pressure on land is intense, and less so in the comparatively lower-density/value area of Northern Ireland, is the ownership and control of airspace above buildings. The classic starting point in any legal analysis is that in the absence of an express provision

to the contrary in the title deeds or lease then the owner or tenant of the land on which the building sits owns or leases everything “up to the sky and down to the centre of the earth.”

“In the absence of an express provision to the contrary in the title deeds or lease then the owner or tenant of the land on which the building sits owns or leases everything “up to the sky and down to the centre of the earth.” Accordingly if the issue is overlooked or ignored when buying, selling or leasing land and buildings the consequences can be costly and opportunities can be lost. This was amply demonstrated in a recent English High Court

decision (H Waites –vs– Hambledon Court and Others) where the freeholder of land on which twelve garages had been built wished to construct flats above the garages and obviously needed to show ownership of the roof and airspace above the garages in order to do so. Each garage was held under a separate 999 year lease and although the garage block had a common roof comprising of continuous asbestos corrugated sheeting, the court held the tenant of each garage was entitled to the possession of the section of roof over his garage and the entirety of the airspace above it. Crucial in the court’s reasoning was the absence of any horizontal division in the lease documents and the fact that each 999 year lease was tantamount to a freehold. So no development could be undertaken without each tenant’s consent. Graham Pierce is a partner at Worthingtons Solicitors. Tel: 028 9043 4015; email: Graham@worthingtonslaw.co.uk or visit www.worthingtonslaw.co.uk

CITB – Helping to improve skills and training in the local construction sector T

here is no doubt that the recession has hit construction extremely hard and the industry has gone through five years of steep decline, however the industry is changing at a pace and modest levels of growth are expected between now and 2017. Skills and training are the central core of our business, we at CITB-ConstructionSkills NI understand the importance of training and the positive effects it can have both internally and externally. We also are aware of the current economic climate and understand that in the downturn training is not always top of the business agenda. Our aim is to help invest in industry skills and training to make businesses competitive, now and in the future. For the best part of 50 years, CITBConstructionSkills NI has been working with the construction industry to meet its skills and training needs. Now, as we begin to recover from a deep recession, it is essential that we continue to support the industry in developing the highly skilled workers it needs to meet the immediate challenges and prepare for the future. Why should I train? Training is an investment to the business, with so many benefits, some immediate and some longer term, like safer on-site practices, quicker delivery and a healthier bottom line. Investing in training now and building up the skills and strength of your team can save you money in the future. Training leads to qualifications like NVQ and CSR and affiliated cards. Not only do they prove to you and your clients that your workers are competent professionals, but with more and more clients and contractors insisting on a qualified workforce they’re becoming essential to get you on site at all. Claim whilst you train Our £1.1m Training Grant Scheme offers

to build safely. Free to all registered in-scope employers the MTU can be booked in advance. Employer Events We run a series of employer events across key towns and cities in Northern Ireland. These events are designed to help local construction employers openly discuss issues, network with other employers and find out what support is available for training. Up-to-date and relevant Health and Safety information is also provided by Health and Safety Works NI to help support the construction employer in this area. The next available dates are 20 May, Carrickfergus; 10 June, Coleraine and 17 June, Belfast. For venue details log on to www.citbcsni.org.uk. We will also be hosting a ‘Drop In’ Event on 14 May in Silverbirch Hotel, Omagh 10.00am – 12.30pm, no booking necessary, just drop in.

support to a wide range of training and qualifications from apprentices through to the existing workforce including management and administration and we can help employers decide what training is right for your business and which grants can help pay for it. Claiming as you train for Tier 1 grants makes the process easier for the employer and through our website www.citbcsni.org.uk you have the facility to claim grants online. Employers can earn an additional 2.5% grant by claiming online and a further 2.5% by paying levy by direct debit, BACs or standing order. Mobile Training Unit Our Mobile Training Unit (MTU) provides a convenient way of meeting training requirements with minimum disruption to site work. The unit travels across Northern Ireland delivering short duration health and safety courses such as confined spaces, excavations, manual handling and working at heights encouraging the industry

New Shared Apprenticeship Scheme CITB-ConstructionSkills NI and Fusion 21 are working together to pilot a novel way to employ apprenticeships for the construction industry. The Shared Apprenticeship NI Programme allows apprentices to complete a full apprenticeship by working with a number of different employers, to gain the skill sets they require to become qualified. During their training they will also obtain their NVQ Level 3. We are looking for employers to get involved and become a placement provider for this programme. For more information on shared apprenticeships contact Simon Eakin, Fusion21,Tel: 028 7134 7631.

17 Dundrod Road, Crumlin BT29 4SR Tel: 028 9082 5466

Interested parties can keep up to date with the progress and development of these skills and training projects at www.citbcsni.org.uk or by ‘liking’ CITB-ConstructionSkills NI on Facebook http://www.facebook.com/CITBConstructionSkillsNI

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It’s all just a game

dministrations have filled the columns over the last many years. With this has come the pinch of creditors, many of whom are the property owners who leased the premises from which the insolvent company traded. Landlords, for many years, have had to stand by as the insolvent company has traded away without having to pay rent. This, with large scale trading administrations, can mount to a huge loss into the six figures. Traditionally, rent was only payable in an administration if the rent date had fallen on or after the date of the administrator’s appointment – ie if the company entered administration a day after the rent fell due then the administrator would not have to pay rent until the next rental payment date.

The recent English Court of Appeal Case Jervis and others v Pillar Denton Ltd (Game Station) and others. [2014] EWCA Civ 180 the Judges pulled apart this exact issue with the outcome heralded as a significant victory for landlords. Companies in the Game Group plc (the High Street computer game retailer) entered administration in March 2012 and, at that time, they traded from numerous outlets. The administrators were appointed on 26 March 2012 which was a day after the rental date under the leases – this was no coincidence. Relying on well established principles, the administrators refused to pay rent on the basis that it had fallen due before their appointment and was therefore an unsecured debt; the administrators continued trading from the properties free of charge until the next rental payment date (three months). In July 2013 the High Court approved the administrators’ actions and confirmed that the arrears of rent were not payable by the

administrator. A group of landlords clubbed together and took the case to the Court of Appeal – there, the Judges were definitive. They overturned the prior decision and provided that an administrator must now make payments, on a pro rata basis, for the duration of any period the premises was used by the administrator. As a result, landlords can now expect to receive rent from the first day the administrator occupies any premises, even if the rental day has just passed.

sense ‘pay as you go’ approach endorsed by the Appeal Court. This is, of course, unsurprising given that the judgment will see the end of the controversial practice of administration appointments being artificially timed to commence just after a rent payment date, thus enabling administrators to benefit from a rent-free quarter.

The decision has provided great clarity on what was a hotly contested point and has been met by much praise and relief from landlords, who obviously favour the common

Toby McMurray is a partner in Tughans. He is

A happy (or at least relieving) day for landlords!

advising on the some of the largest insolvencies in NI including the Obel Tower, Lough Erne Resort, Presbyterian Mutual and Mivan.

Innovative IT ‘Builds’ On Solid Growth Platform for Murdock Builder’s Merchants Capita Managed IT Solutions helps Newry based company ‘build’ a robust IT infrastructure solution to support business growth Murdock Builder’s Merchants is an independent family owned Builders Merchant Group. With 10 branches across Ireland including a new outlet recently opened in East Belfast, there has been a steady increase in demand from both trade customers and the general public over recent years. Capita Managed IT Solutions has delivered IT services and support to Murdock’s since 2007 and was appointed to manage the recent infrastructure upgrade as a result of a competitive bid and a strong customer-focused ethos.

Michael Rooney, Group IT Manager for Murdock Builder’s Merchants, gives an insight into the successful partnership: Q: How would you describe your business? A: After 30 years I think it’s safe to say Murdock’s is established as a robust, customer-focused business which provides a much valued service to both the building/ construction sector and to the general public. We’ve grown significantly over this period – we now operate 10 branches and a roof truss/space joist manufacturing division. It’s our local expertise, and skilled workforce, that is the backbone of our operation and this is what really sets us apart from the national DIY chains. Q: Why is technology so important to Murdocks? A: It enables us to concentrate on our

core business, it has helped us deliver our expansion plans and it ensures our branch network is totally connected and working at an optimum level. Basically, our IT infrastructure lets our team get on with their day job! Q: Why did you decide to partner with Capita Managed IT Solutions? A: We have a shared business ethos – which is centred on expertise and high levels of customer service. When we identified that our IT infrastructure required investment, we asked a number of companies to tender for the contract, and Capita stood out in terms of their proposed solution, team knowledge and fit for our organisation. Often procurement decisions can be made purely on a ‘cost’ basis, and, while this is important, it should not be the deciding factor. Capita offered us an experienced team who understood our business and the complexities we faced. Q: What was the biggest challenge you faced as part of the IT upgrade? A: Our existing ICT infrastructure required a full upgrade, together with the relocation of our Disaster Recovery solution from Newry to Belfast. Delivering this, with minimum impact on the day-to-day running of the business, was our biggest challenge – any system downtime, or lapse in coverage, could have damaged how our customers view our business. However, the transition was incredibly smooth and seamless – we knew we were in safe hands. Q: What is the main business benefits resulting from your investment? A: The impact on our staff and internal processes has been the biggest benefit – things just work more smoothly and this makes hundreds of tiny positive changes every day. Our admin processes have improved dramatically and already we

are starting to see cost savings in terms of the wider business efficiencies. Our customers still receive the same great quality customer service but I believe the streamlining of our technology will have a knock on effect and result in them receiving a better, overall customer experience. Our investment also incorporated supporting the requirements of our newest branch in Castlereagh which only opened in March. The solution was easily up-scaled to meet this expansion. Q: How would you describe your experience of working with Capita Managed IT Solutions? A: I’d have to describe it as a partnership. This was never simply about getting the job done; the process is always evolving, and Capita built in a level of ongoing support which is invaluable to us as we continue to grow and develop our business. The Capita team is on-hand to offer advice, solve any problems or issues, and make recommendations as to how we can use the technology to our best advantage. As a customer-service centred organisation, good support and service simply can’t be underestimated! I’m very confident that the latest investment will help Murdock’s deliver further business efficiencies and support its future development plans. To find out how Capita Managed IT Solutions can help make a difference to your business: Tel: 0844 346 0025 Email: mits@capita.co.uk Web: capita-mits.co.uk

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Obel sale highlights growing investor interest “Investment property transactions in Northern Ireland reached £175m last year – more than the combined total of transactions since the start of the downturn. However, with economic conditions improving, and investor confidence in Northern Ireland rising, we expect the figure to be much higher this year.” He said the building, when fully let, will produce a gross income for the buyer, thought to be a US investment firm, of £2.2m a year. The sale of Obel marks an end to a tumultuous period for the property which effectively entered administration in 2012 after its original owners defaulted on a loan to Bank of Scotland. David Jones, part of the team from law firm Tughans which handled the legal side of the deal, said the sale was a boost for the local economy. “Tughans has worked on behalf of funders Bank of Scotland from the development stage of the Obel building in 2008, through administration with KPMG in 2012, and more recently in the competitive tender process to identify potential buyers,” he said.

he sale of one of Belfast’s most iconic developments and Ireland’s tallest building highlights the growing popularity of Northern Ireland with overseas investors.

That’s the view of commercial real estate firm Savills which handled the sale of the Obel building on Donegal Quay on the banks of the Lagan River in the city, a deal which is thought to be worth in excess of £20m. Ben Turtle, Director of Investments at Savills Northern Ireland, said the building, which was completed in 2011, had generated a considerable amount of interest from potential buyers. “It has taken just over a month for the sale to complete, which highlights the growing popularity of Belfast and Northern Ireland as a location for property investment,” he said. And he said the deal was reflective of an uplift in activity in the commercial property sector.

“Our team of specialist lawyers working across the banking, property and insolvency departments within Tughans brought the deal to completion in a month from launch with interest generated by 25 different parties as a result of a targeted marketing campaign.” Occupancy of Obel includes both commercial and residential units with London law firm Allen and Overy, the main tenant in its Grade A office accommodation. The 85 metre tower and surrounding buildings comprises nearly 55,000 square feet which also includes 282 luxury apartments. Leases have recently been agreed on 35 of the apartments for the crew and cast of HBO series Game of Thrones, much of which is filmed in nearby Titanic Quarter. A one-bedroom apartment on the ninth floor in the development is currently on sale at just under £100,000 and described as offering “unparalled access to all areas of the City and is a short stroll from the newly regenerated Cathedral Quarter.”

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New look McCue ready to make waves

trategic expansion and a string of deals with retail and hospitality heavyweights in Great Britain and Ireland have helped McCue Crafted Fit claim a position among Northern Ireland’s best performing companies.

Kaspar’s Seafood Bar & Grill at The Savoy Hotel, London

In 2008, the Carrickfergus-based fit-out company was one of the first to feel the chill of the downturn, but it proved to be the catalyst for a dramatic change and resurgence. It refocused on a number of niché growth markets in Great Britain and Europe and carefully rebuilt the core business around innovative solutions and a unique customer service. The methodical approach has enabled McCue to open its London office, secure key projects in the luxury hospitality sector and claim the fit-out industry’s highest awards and honours. It is a transformation process that continues apace and in recent months, the company refreshed its own brand to further stand out against tough competition. Managing Director, Les McCracken, says the new look is pitched towards the benefits customers want from a modern fit-out partner. “We work in a very competitive market and it is essential that customers can quickly get a sense of our values and what we’re all about. We know our customers – architects, interior designers and developers/owners – don’t want a series of piecemeal supplier relationships; they want a capable creative partner who shares their ambition and is confident enough to challenge and spur them on. “The functional aspects of our business have always been consistent and reliable,

but our creativity and way of working with customers gives us an edge over others. The new ‘Transforming Space into Place’ concept puts the client and the aspects of a job that they value at the core of our work. And that’s the way it should be.” The brand re-fresh comes on the back of an exciting and productive 2013 for McCue, during which it retained it’s place on the Deloitte Best Managed list and secured orders worth more than £20m. This included adding London hotels Claridges and The Savoy to a long list of customers that already boasts the city’s most famous luxury department store and well-known brands like Urban Outfitters, Hamleys Toy Store, KFC and Starbucks. While some of the firm’s relationships in the retail sector span more than 35 years,

the company is also making ambitious moves into new areas. In December, it took the first steps into the lucrative marine fit-out sector, appointing industry stalwart Stephen Mills as head of its new division. Les says: “It is an area which has been on our radar for a number of years now and it was a matter of waiting for the right time. The addition of Stephen has been a big part of the decision to move now. His recruitment gives us added confidence to bid for turnkey fit out projects with cruise lines, ferry operators and shipyards on a global basis.” After six decades in business, Les insists McCue’s brightest years remain ahead of it. “We’ve big plans and big ambitions for this year and hopefully the next 60 years. It’s an exciting time for McCue and the best is definitely yet to come!”

COMMERCIAL PROPERTY

Premier performance leads to expansion

mid-Ulster based electrical installation company which works throughout the UK, Ireland and Europe for some of UK’s top retailers has announced a major investment in technology and a number of new jobs which it believes will drive further growth for the business. Premier Electrics is introducing a raft of new cloud-based services aimed at enabling it to compete with the best in Europe. As well as its own dedicated 100MB superfast fibreoptic broadband connection the Bellaghy firm is installing a range of cloud-based Microsoft applications which will improve information flow between its team and its clients as well improving its project management capability and delivering a robust business continuity system. With teams literally operating on a 24/7 basis the length and breadth of the UK and now increasingly in European countries including Germany, Holland, Austria, Belgium, Spain and Portugal remote access

to information as part of a state-of-the-art communications infrastructure is vital. Company founder and Managing Director, Mark Scullion said: “This investment will facilitate the sharing of crucial projectrelated information with our customers and professional partners and provide secure on-line storage for bulky documentation including complex drawings. Additionally the new system seamlessly connects all of our CRM, Project Management and Financial Administration information which will bring about significant improvements to the business overall.” Premier’s team delivered a strong performance in 2013 and – thanks to its ongoing sales and marketing drive in the UK and Europe – expects turnover to grow by around 30% this year. “Since the demise of one of our major contracting partners at the end of 2012 we have worked hard to successfully strike up new relationships which have generated

some major contracts in Britain. We were also delighted to deliver our first jobs in Holland last year for Primark in Eindhoven and Zoetermeer.” Premier’s team is currently engaged in delivering the electrical fitouts of a number of high profile projects including Primark stores in Germany and Holland and a number of major new retail developments in England.”

Order book improves for construction Workloads are increasing for small construction companies.

Louise Ward, Services and Public Affairs Executive of FMB Northern Ireland, said the pressure on the industry is easing but hasn’t disappeared with difficulties finding trained staff an increasingly serious issue. “With the construction sector now employing 20,000 fewer people than it did pre-recession, it’s not surprising to hear reports of difficulties recruiting site managers, plumbers and bricklayers. “In Northern Ireland the Industry is taking proactive steps to avoid a situation where there is a shortage in the supply of skills and labour – CITB is hoping to pilot a new and novel way of employing apprentices whereby they will complete a full programme with a number of different employers to gain more skills and allow them to be ‘work ready’ for the industry.”

mall construction companies in Northern Ireland saw their workloads grow once again in the first three months of the year, according to new data from the Federation of Master Builders (FMB).

Ms Ward called on government to help the industry by alleviating the tax burden on builders. “We must not be complacent as consumer confidence is fragile and policy makers must do all they can to help stimulate growth in Northern Ireland. It is more important now than ever for the UK government to reduce VAT on housing renovation and repair to 5 percent.

The increase represents the fourth consecutive quarter of growth in the sector, although the pace of growth has eased slightly, the industry body said.

Independent research from Experian shows that this cut could result in 558 extra jobs in the Northern Irish economy and a stimulus effect of £13m in 2015 alone.”

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TOURISM

Let’s bring the world to Belfast and Northern Ireland Visit Belfast, Invest Northern Ireland and Northern Ireland Tourist Board have joined forces to encourage local business leaders to attract major national and international meetings and conferences to Northern Ireland.

he Business Ambassador Programme is a new initiative, led by Visit Belfast, which aims to expand the region’s tourism economy by attracting international conferences, meetings and events to Northern Ireland. As part of this new, concerted effort, Enterprise, Trade and Investment Minister, Arlene Foster, recently unveiled details of the Programme which she is confident will cement Northern Ireland’s success and power a new era of business and tourism growth. Minister Foster is calling on Northern Ireland’s business leaders to get directly involved: “Encouraging more companies to visit Belfast and Northern Ireland is an important step in increasing business and investment opportunities for the region and I’m confident that through the support of our local, successful and forward-thinking business community and the personal commitment of their owners, managers and staff, we can attract even more global business organisations to Northern Ireland for their next conference, meeting or event.” “The new Business Ambassador Programme aims to harness the support of the local business community and diaspora network to attract even more national and international business events to the region, boosting visitor numbers and spend in the local economy,” Minister Foster said. Competition in the global conferencing and events sector is extremely intense. However, Belfast and Northern Ireland

Launching the new Business Ambassador Programme are (l-r): Alastair Hamilton, CEO Invest Northern Ireland; Minister Arlene Foster; Gerry Lennon, Chief Executive, Visit Belfast and Alan Clarke, Chief Executive, NITB.

has been performing exceptionally well. Visit Belfast has just announced that £80m of conference business has been secured for the local economy by the organisation in the last three years. Visit Belfast Chief Executive Gerry Lennon said: “The economic benefits of hosting conferences and business events in the city extend right across the hospitality, retail and tourism sectors. They deliver a welcome boost to the weekday economy here and are an integral part of our growing tourism industry in Belfast – the gateway to the whole of Northern Ireland.”

destination in Europe and across the globe.” Business conferences and events provide an opportunity to invite customers, investors, partners and suppliers to Northern Ireland, giving us a fantastic opportunity to showcase first-hand what we have to offer as a place to do business,” Invest Northern Ireland Chief Executive Alastair Hamilton said. Minister Foster said the infrastructure investment and marketing which have already helped to position Northern Ireland as a world class destination for conferences, meetings and business events. If you are interested in joining the Business

“Belfast is now officially the number one conference and incentive city destination in the UK according to the industry-led C&IT magazine. With this new initiative, we want Belfast to be the leading conference

Ambassador Programme, and how you and your company can get involved with the support available, please contact Sarah Gribben at Visit Belfast on 028 9023 9026, email: sarahgribben@visitbelfast.com

Corporate Restructuring

CORPORATE RESTRUCTURING

M&A sector shrugs off downturn with star performance

he Northern Ireland mergers and acquisition (M&A) market has experienced a volatile few years.

Belfast International Airport was sold to a US firm last year.

Having been a bustling sector of the economy for financiers, lawyers and consultants during the boom times following 2001, it slowed to a near halt as the downturn which started in 2007 took hold and the credit crunch swallowed up available finance overnight. The preceding years saw a slight uptick in activity as a result of distressed and forced sales but run-of-the-mill takeovers proved rare, at least, that is, until recently. Latest data from credit analysts Experian showed the number of transactions in the Northern Ireland M&A market during 2013 reached its highest level in ten years. Much of the business was carried out in the last quarter of the year when 30 deals were recorded, a large chunk of the 78 transactions carried out for the year as a whole.

That brought the total deal value for the year to £1.6bn here, a 30% hike on 2012 and a boon for the businesses which rely on transaction turnover. From a legal perspective, A&L Goodbody was at the top of the leaderboard in terms

of the number of deals carried out with a total of 28 for the year and the highest aggregate value of deals with a £1.1bn. The next most active legal firm was Mills Selig with five deals followed by Addleshaw Goddard with four.

Table 1

Table 2

Most active M&A lawyers by value

Most active financial advisers by value

1 A&L Goodbody

£1,099m

Cairn Financial Advisers

£329m

Pinsent Masons

£700m

KPMG

£91m

Slaughter and May

£700m

RSM Tenon

£65m

Eversheds

£81m

BDO

£41m

Carson McDowell

£81m

Horwood and Holmes

£11m

Morrison & Foerster

£77m

Investec

£10m

Addleshaw Goddard

£65m

Grant Thornton

£8m

Walker Morris

£65m

Canacorrd Genuity

£7m

Arthur Cox

£42m

Cavendish

£7m

King & Wood Mallesons SJ Berwin

£29m

Mazars

£6m

CORPORATE RESTRUCTURING

When it comes to financial advisors, BDO topped the activity table with 11 deals, just ahead of both KPMG and Horwood and Holmes which each recorded five. In value terms Cairn Financial Advisors recorded the highest value of deals at £329m.

A&L Goodbody carried out the biggest value of M&A deals of last year. We put a few questions to corporate partner Alastair Keith.

When it comes to deal size, three were worth more than £100m in 2013, unchanged from 2012, and totalling £1.2bn. There were also 17 small £500,000-£10m) transactions totalling £72.1m, the highest total witnessed in Northern Ireland since 2004. So-called midmarket deals, between £10m and £100m, totalled nine with a value of £379m, a 50% increase on 2012.

“Putting the data into perspective it’s clear there’s still some way to go. While the total deal value of £1.6bn is an improvement, it’s still some way off the £4.1bn recorded in 2004.” Sector-wise, manufacturing companies were the most active in the M&A market and accounted for 35 deals, followed by wholesale companies and retail and repair which each made up 20 deals and computer activities which accounted for 16. There’s little doubt the M&A sector has shown encouraging signs of revival so is the industry back to full health? Putting the data into perspective it’s clear there’s still some way to go. While the total deal value of £1.6bn is an improvement, it’s still some way off the £4.1bn recorded in 2004. And although Northern Ireland’s share of the total UK M&A market has improved to 1.6% from 1.1% in 2012, there’s still some way to go to claim a larger slice of the UK pie.

MAY 2014

Has the M&A market in Northern Ireland picked up since the start of 2014 and if so, why? Yes we have seen an increase in the level of M&A activity in Northern Ireland since the start of 2014, largely due to the return of business confidence to the market. With all the economic indicators suggesting that we are now in a modest recovery, local businesses now have the confidence to make important decisions about investment and growth that were put on hold in recent years. In addition, banks seem more open to funding acquisition opportunities although equity to debt ratios are still not reflecting pre-recession levels. What are some of the biggest deals of the last 12 months? We have seen a number of notable deals in the last 12 months around some of Northern Ireland’s key assets – such as Phoenix Natural Gas and Belfast International Airport. Other important deals have included the investment in Relay Software and the Acquisition of Datong PLC by Seven Technologies. The investment in the Evermore Renewable Energy project in Derry-Londonderry and

the acquisition of Slieve Rushden windfarm by Platina Partners is a sign of transactional activity picking up on the energy side. Which sectors are likely to show an increase in M&A activity in the coming months? We would expect to see M&A activity in the energy, technology and agri-food sectors to continue in the coming months. Should the push for a lower corporation tax be successful we would expect M&A activity to pick up across all sectors. Has finance for M&A deals become easier to secure and, if so, from what sources? Yes I think it is fair to say that finance has become easier to secure. While traditional debt-based lending from the banks is starting to free up, we have also seen new funds in the market – such as the Growth Loan Fund and Kernel Capital – whose role is essentially to finance growth opportunities. However some activity is also being self-funded by cashrich companies which have continued to trade well throughout the recession and are starting to invest this cash now that market conditions have improved.

Just what exactly is corporate restructuring? By Wilkins Kennedy

hat is corporate restructuring? Corporate restructuring can cover a whole range of activities, from cost-cutting and streamlining, re-branding, financial restructuring to the worst case scenario of winding down a business. Businesses can go through many forms of corporate restructuring to remain competitive and stay in business. Restructuring does not have to be something drastic, but can be a series of measures undertaken on a regular basis by the companyâ&#x20AC;&#x2122;s management. Â

it is important to act earlier than later. Banks can help with consolidating your debt, if you have several loans, to help reduce interest payments or obtain a temporary freeze on interest payments, to help you cope until business rebounds. If you are unable to re-pay suppliers, speak directly to the suppliers and see if they can arrange a rolling credit or reduce prices. Sometimes suppliers will agree to some kind of re-payment arrangement, if, for example, you agree to exclusively use them.

Debt restructuring

Another form of corporate restructuring is cost-cutting or streamlining a business. As businesses grow, it is easy for overheads to increase, employee numbers to swell or businesses to lose focus. It makes sense on an annual basis to review operations and figure out where the most costs are stemming from and try to streamline these areas of the business. Many businesses, as they grow, end up adding more and more functions and in some cases, may end up moving away from their core business. Â

In the current economic climate, many businesses are having to go through corporate debt restructuring. Most businesses carry some form of debt, whether it is a simple business loan or corporate bonds. In certain situations, it makes sense for businesses to restructure their debt. For example, when interest rates are high, swapping high interest rate bank loans for other forms of debt can save money. In another scenario, if a business has made a big profit or has increased cash flow, it might make sense to pay down some of the debt, perhaps earlier than planned. In any scenario, debt restructuring, if done properly, can save businesses a lot of money in interest payments and fees. The most extreme case of debt restructuring comes into play, when businesses cannot pay back creditors. In such cases,

Streamlining your business

Getting professional help Depending on the size of the business, it may make commercial sense to hire professional accountants or consultants to analyse your business and suggest corporate restructuring steps to be undertaken. The UK government offers free advice to business owners via www.businesslink.gov.uk.

CORPORATE RESTRUCTURING

Capita buys AMT in deal worth £105m “Powerful” synergies prompt IT sector deal

T giant Capita has bought software firm AMT-SYBEX in a deal valued at up to £105m.

It said the takeover offers “powerful” synergies between the two companies in the utilities market, a sector where AMT specialises, and also in health, defence, oil, gas, finance and insurance markets. AMT has an office in Belfast as well as Dublin, Glasgow and Letchworth just outside London and employs a total of 250 people across all sites. London-based Capita has a significant presence in Northern Ireland, formed when it took over Northgate Managed Services last year for £65m. The business still operates from its Newtownabbey site.

It will pay £82m for AMT initially plus another £23m based on the company reaching profit targets over the next 12 months. Currently, AMT expects to make operating profits of £13m in the year to January 2015 on turnover of £45m. Chief Executive of AMT Andy Parker welcomed the deal. “There are therefore powerful synergies with Capita’s existing footprint as it works within the utilities markets to drive transformational change, improve efficiency, use data analytics to improve customer attraction and retention and get businesses and customers better connected through using digital and other channels more effectively,” he said.

“In addition, AMT’s products and services, particularly as part of a wider Capita offering, have valuable applications in a range of other sectors, including health, defence, oil and gas and the finance and insurance markets. We look forward to welcoming the business into Capita and working with it to realise its full potential.”

What does AMT do? AMT is a proprietary software business providing software and related services in mobile technology and smart data management to the utilities and transport sectors, which are key markets for Capita. Its clients include four of the `big six’ energy companies, National Grid, Network Rail and Transport for London. Founded in 1990, AMT has developed applications for its long term clients that support efficiencies and service delivery in energy and water suppliers, managing the data of 35 million consumers and enabling mobile working for over 35,000 employees. In addition, the company’s software products help clients to manage company assets, carry out mobile inspections, and perform maintenance work on infrastructure. AMT’s latest developed applications will enable data capture from smart meters as they are rolled out in the UK and throughout Europe.

MAY 2014

CORPORATE RESTRUCTURING

Change brings business success

usinesses, like every living organism, have a life cycle which will come to an end unless rejuvenated. Like the amoeba, businesses must continually change to survive. At the start of the businessâ&#x20AC;&#x2122; life there will be a clear vision and an innate energy and motivation in pursuit of the vision. Over time, energy levels may drop and complacency may take hold. The business is probably now at the top of its success curve and is likely to move into decline and approach the end of its life cycle. This decline may be prompted by wider economic forces, market changes, new technologies or customers simply wanting to try someone different. Management will be focused on managing the symptoms of the illness and the possibility of change becomes more difficult and potentially unachievable. The secret of rejuvenation and continued

By Brendan Mullan, Managing Director, Interim Management Assignments (NI) Ltd

By the time it filed for Chapter 11 bankruptcy two years ago, it had spent billions on failed attempts to turn the company around, shedding 47,000 employees in less than a decade and closing more than a dozen factories. It had been almost fatally wounded by the digital revolution.

success is to jump on the B curve and then the C curve (see diagram below). One of the best examples of what happens when a business fails to jump on the B curve is Kodak. From the launch of the first Brownie camera in 1900 Kodak was at the forefront of film and cameras. In the mid1970s it still had a 90pc share of the US market and an 85pc share of camera sales.

Chapter 11 bankruptcy gave it space to halt its slide down the other side of the A curve. Kodak has now transformed into a mid-sized tech company specialising in digital flexi-graphic printing on packaging, from crisp packets and perfume bottles to newspapers. It also manufactures pre-press printing plates and designs the technology behind touch-screen sensors. It is now at last on a new B curve. Perhaps the greatest barrier to moving onto a new success curve is a lack of in house human resource to deal with anything other than the day to day. Interim Managers are a low risk way to jump on the B curve, allowing businesses to embrace change and start a new life cycle. Typically aged 40-55, after several yearsâ&#x20AC;&#x2122; experience at senior management / director level and seeking more variety, challenge, flexibility or control in their lives they have taken a career decision to work as interim managers. Whatever the brief, the Interim Manager will recover, accelerate or maintain momentum, and for the exact period required; supporting the transition to a new success curve. Is your business moving up the A curve or is it time to jump onto the B curve? For more information contact www.interimmanagementassignments.com

CORPORATE RESTRUCTURING

Opportunities grow in the legal sector By John Moore, Regional Director Hays in Northern Ireland

ptimism in the legal sector is increasing following a string of recent positive jobs announcements. Hiring levels by the prestigious legal shared service centres has come as a massive boost for the sector â&#x20AC;&#x201C; activity at Herbert Smith Freehill, Allen & Overy, Axiom and SmithDehn all point to a strong demand for talent in the region. The economic downturn has significantly increased the demand for lawyers in certain specialist areas. In Northern Ireland we have seen continued demand for regulatory expertise in financial services, IT, telecoms and insurance, which have all demonstrated themselves to be relatively recession-proof sectors. However, this sector faces uncertain times ahead with proposed reductions in legal aid set to present significant challenges across

MAY 2014

the board. As yet it is unclear on how these reductions will be implemented and the sector must wait to find out exactly what effect they will have. In anticipation, many employers are operating within a carefully managed cost base, opting to bring in intermediate level staff to protect themselves against the weightier salaries of senior professionals. One key trend we are now seeing is people relocating from the Republic of Ireland, providing top tier legal firms with a valuable mix of UK and Irish legal knowledge. Successful candidates are those demonstrating good academics, strong technical and leadership experience and language skills. Hays provides a far-reaching attraction strategy for legal firms that are seeking to draw in the right candidates from across the UK and Ireland. Our national presence, track record and proprietary database put us in the

best position to reach out to top talent and meet the needs of these firms. For further information and access to the latest job opportunities visit Document2www.hays.co.uk/northernireland

NORTH WEST

Borat’s lawyer comes to Derry

erry might not seem like the obvious choice of location for a Hollywood law firm to set up its new office, but it makes perfect sense to Russell Smith, managing partner of SmithDehn. The US-based media and entertainment law firm – once dubbed “legal heavies” by no less than The Wall Street Journal – has established an office on Artillery Street in the city which will initially have five to ten staff, and has ambitions to ultimately recruit 75. Smith Dehn is a boutique firm, with 16 lawyers worldwide, but its client list is very much A-list, including broadcasters such as HBO, BBC America, Channel 4, and ITV and Hollywood studios such as Sony Pictures, Twentieth Century Fox and Paramount Pictures. “We are one of the go to law firms for especially legally difficult films, such as Borat, The Yes Men and The Imposter. We work on some of the top reality television shows in the US, such as Gold Rush, which is the most popular show in the US on Friday nights.

“Derry is unique, it’s off the beaten track, it’s westward facing looking towards the US.”

The public doesn’t always know there are legal problems with these shows. Then there are documentary films such as Searching for Sugarman which won an Oscar. That film almost didn’t get released because of legal problems. We were called in to solve those problems. That’s what we do, all kinds of legal work behind the scenes. And also when our clients are sued we defend them. And we win,” Smith told Ulster Business. He added: “I’ve been Sacha Baron Cohen’s lawyer for about nine years. Every film he does, if it is reality based, has endless legal questions. They are among the most legally difficult films ever made. The police were called 52 times during the making of Borat and every time the police are called lawyers need to be mobilised. They are called because somebody says he is breaking the law, but we already know in advance that he’s not because we’ve done the research and planned everything out. That’s the kind of thing that people will be doing in Derry.” Smith first became aware of Derry while on sabbatical in Mallon Head 19 years ago. He admits he fell in love with the city and has

been looking for a reason to spend more time here. SmithDehn this year partnered with the University of Ulster to launch a specialist media law course designed give 25 legal students the skills needed to work in its industry – bringing in executives from HBO and Channel 4 to lecture on the business of film and television.

“I’ve been Sacha Baron Cohen’s lawyer for about nine years. Every film he does, if it is reality based, has endless legal questions. They are among the most legally difficult films ever made.” “We have been doing reconnaissance for over a year now and we’ve seen the talent that’s available in Derry and Northern Ireland in general. The thing that has given us extra confidence to set up shop is a course we’ve been teaching in University of Ulster in Magee, that’s been going on all semester. We had our pick of 125 students who applied for the course and it had only 25 seats, so we were able to pick the 25 students. The agonising thing for us will be how can we hire all of them, because we’d like to and eventually we hope to. In other words we know the talent not just conceptually or from statements from the Northern Irish government. We know it from being on the ground, interacting with the students, seeing

NORTH WEST

Russell states the Borat film was one of the most legally difficult ever made with police officers called out 52 times during filming.

their work as part of the class,” says Smith. “Derry is unique, it’s off the beaten track, it’s westward facing looking towards the US. Most of the people on our module have been to the US, some have been admitted to the Bar in the US, so it seems a natural fit,” he adds. He stresses that SmithDehn is not competing with Northern Ireland solicitors for business, only talent. It will instead be servicing the US market, working for film and television companies who have content to distribute that needs to be analysed to ensure it complies with US law. “It’s going to be a front office, not a back office. It’s not going to be a call centre or a document factory. It’s going to be people doing analysis but also getting on planes to go to film festivals like Cannes, to MIP which is a TV trade conference, and even to the US, to events such as South by Southwest and the Sundance Film Festival. They’ll be meeting with our clients and finding new clients. We want to be very forward about showcasing our people in Derry,” says Smith.

MAY 2014

“The media sector is huge worldwide. Good media law firms tend to be in the hundreds, sometimes over a thousand, and there’s no reasons we couldn’t top that size because we’re going to be very competitive. But we have set a target of 75 jobs over five years and we’re going to try to make that target,” he adds. Not content with introducing a new legal sector into Northern Ireland, SmithDehn is also using its arrival in Derry as a springboard to move into film production. It has partnered with Los Angeles film producers Social Construct Films to create Social Construct Media, a company that will develop, finance, sell and produce film and television project. The joint venture already has a slate of three films and three TV series planned for shooting and post-production in Northern Ireland. “Social Construct Films already have two films under their belt, one of which is currently on HBO in heavy rotation. They proposed we do a joint venture and set up a new company called Social Construct Media, which we are setting up in Derry first. That company will do production, development of story ideas,

financing, which we’re actively involved in now, and arranging distribution. So it will be a fully fledged media company in the film and television space,” explains Smith. “We have three TV series and three films planned that we have put together for NI filming, which would work well here. For example one that we’d like to see done is a musical based on the Kinks and Ray Davies from the Kinks is going to be executive producing that. We’re actively talking to television networks to commission this,” he adds. “We’d like to do it all here. There are some things, for example the Kinks movie, which would be set in London so some of the scenes would obviously have to be shot in London. But just like Game of Thrones is done in Northern Ireland even though it’s not set here we feel most of the filming can be done here.” Whether it reaches its goal or not, SmithDehn certainly brings an interesting new presence to Northern Ireland’s legal and creative sectors.

NEWS

Antrim firm pledges to create 241 new jobs

Pictured at Schrader Electronics Ltd’s Antrim facility are, l-r: Stephen McClelland, Schrader Electronics Managing Director, Alastair Hamilton, Chief Executive, Invest NI, Enterprise Minister Arlene Foster and Graeme Thompson, Schrader.

n Antrim manufacturing company is to create 241 new posts as part of an expansion of its production facilities and a ramp up in its research and development (R&D).

Schrader Electronics – which makes tyre pressure monitoring systems – is investing £56m in both its Antrim and Carrickfergus sites and will be filling both engineering and manufacturing posts. The total salary bill for the jobs will reach £7m a year, a figure which means the average salary stands around £29,000. Stephen McClelland, the company’s managing director, said the expansion comes ahead of an expected doubling in turnover in the next three years as a result of the development of a number of new products and new legislation. European Law stipulates tyre pressure monitoring systems are mandatory on all new cars in Europe from November but Mr McClelland said a focus on R&D has helped the firm grow. “Our success stems from our strong R&D base, developing and commercialising new products to world class manufacturing standards,” he said. “Our Northern Ireland operations are central to R&D, process and systems development and this investment will further enhance their role with the company.” Invest NI offered nearly £9.7m of support to Schrader and Enterprise Minister Arlene Foster said the focus on R&D is to be commended. “Schrader’s decision to also invest in five separate R&D projects reflects the company’s ethos of continuous improvement and determination to carve a niche in the market.”

The Meat Cleaver slices through the competition in Craigavon

Dwaine Smyth, founder of The Meat Cleaver in Portadown is pictured following his success at the Craigavon Business Awards with Lady Heather McClay of ALMAC Group and the awards host, Jim Fitzpatrick.

ne of the highlights of this year’s Craigavon Business Awards saw an innovative and unique butcher in the heart of Portadown scoop a hat trick of awards including the Sir Allen McClay Young Business Person of the Year Award, Best Urban Business and Best Independent Retailer. These successes for The Meat Cleaver remains in-sync with the fantastic work being done in Craigavon’s food sector; something being profiled through an exciting new initiative, delivered by Craigavon Borough Council, known as ‘Craigavon Means Business.’ The initiative aims to stimulate growth and competiveness in the agri-food, creative and life and health sciences industries in the local area. The Meat Cleaver specialise in locally produced beef, pork, lamb and poultry and is very effectively putting Craigavon Borough on the map in an already flourishing food market in Northern Ireland. Founder, Dwaine Smyth was a former broker in Dubai and decided along with his brother Garry to revive the ‘neighbourhood butcher,’ but with a modern twist. From integrated public relations and social media campaigns to free local delivery in order to compete with supermarket chains, not to mention being in the final stages of creating an iPhone app to make ordering your meat easier, these butchers are a cut above the rest. Dwaine Smyth, founder of the Meat Cleaver said: “What we came up with was the idea that a butcher shop could sell local, properly raised, meat and making it accessible to everyone, not just the culinary elite. Good meat, we decided, could be fun. Everyone deserves to experience good meat just like your Grandpa used to get. We in The Meat Cleaver are also keen ambassadors of sustainable agriculture and we’re passionate about supporting local farmers and vegetable growers in Craigavon.”

The Meat Cleaver is located at 111 Armagh Road, Portadown, Craigavon BT62 3DN. For more information contact 028 3839 1262 or visit their twitter page https://twitter.com/MooMeat

Flags, firebombs & flashbacks

Executive Motoring

By Pat Burns

Sponsored by

EXECUTIVE MOTORING

Downsizing your company vehicle – reality or just perception?

New 308 marks a turning point for Peugeot

A lot of employees are continually looking for ways to increase their monthly pay packet; as a consequence sales in larger family size D segment car market have declined with the growth being in the C Segment but are people really downsizing in size? Nearly every new car that comes onto the market has the inevitable marketing strap line ‘longer, wider, more boot capacity, lower CO2 and better MPG’. I have been really impressed with some of the recent CO2’s, the new Volvo V40 1.6D now has 88g/km, the new Honda Civic 1.6 i-DTEC is 94g/km and the recently launched Nissan Qashqai has a CO2 from 99g/km which for a SUV type vehicle is superb (the previous model was 130g/km). All these cars can carry five people in comfort, have great MPG and build quality. Most company car drivers are the sole occupant of their vehicle from Monday to Friday, it is only at the weekend when they tend to carry passengers. So the question is, do they really need the bigger D Segment car? A good example is the recently launched A3 Saloon, yes a Saloon version of the Audi’s main seller. When you compare the size of the A3 Saloon against the original A4 Saloon from 1998 the boot is only 2.2cm shorter but the A3 Saloon is over 11cm wider and has a CO2 of 107g/km. So do you really need to drive an A4 Saloon now when an A3 Saloon could fulfil all your requirements on space, economy, company car tax with it’s lower BIK and of course MPG. Downsizing in motoring terms no longer equates to an inferior car, the manufacturers are continually launching new C Segment cars containing technology from their flagship models. Don’t ignore the option of downsizing as the reality is you could be getting all your needs and saving money in your monthly salary.

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eugeot’s new 308 – the 2014 European Car of the Year – marks a turning point for the French manufacturer. From now on, Peugeot will place even greater focus on design-led desirable cars, outstanding environmental performance and best-in-class driving dynamics. The result in the new 308 is a car with a more Germanic feel, quite similar to the latest mark seven Golf. Underlying everything is a determination to bring a new level of quality to the Peugeot ownership experience, including exceptional customer service from dealers. At its heart is the innovative Efficient Modular Platform 2 (EMP2). The car is the first new Peugeot to benefit from this advanced architecture, which has incorporated 116 patented technologies. It has allowed the new 308 to be lighter than ever. Coupled with eight advanced engines, the result is segment-leading environmental performance. Depending on the model selected, fuel economy can be as high as 91.1mpg with CO2 emissions as low as 82g/km. One of the special features is its premium ‘i-Cockpit’ interior. Driver-focused and with a notably uncluttered dashboard, it offers one of the most technically advanced touch-screen infotainment systems on any new car. With a large 9.7-inch screen size, this intuitive interface allows the user to control virtually everything. The new 308s boot is also the largest in the segment at 420 litres. The New 308 is available in four trim levels, Access (from £14,495), Active (from £17,195), Allure (from £18,645) and Feline (from £20,995).

EXECUTIVE MOTORING

X5 loses weight and gains performance

MW is taking the Sports Activity Vehicle (SAV) even further into the realms of luxury cars with the introduction of the new, third-generation X5. BMW invented the concept of the SAV with the original X5 and is the global market leader in the segment, with more than 1.3 million sales of the previous two models. The new X5 delivers major advances in design, luxury, comfort, versatility, efficiency, driving pleasure, safety and connectivity. It is available with five TwinPower Turbo engines – four diesel and one petrol – a standard eight-speed automatic transmission and the option of two or four-wheel drive (sDrive and xDrive) and is offered in SE or M Sport specifications. All engines already meet the EU6 emissions standard not due to be introduced until September 2014. The new X5 offers an even more exhilarating drive thanks to a combination of weight saving and technologically advanced engines, covering distances at speed with ease and comfort. The 3.0-litre six-cylinder xDrive30d is 19 per cent more fuel efficient, with economy improved by 7.4mpg and CO2 reduced by 33g/km – despite power and torque increases of 13hp and 20Nm. The M50d, powered by a three-stage single turbo version of the 3.0-litre six-cylinder engine, is 12 per cent more efficient. Consumption is reduced by 4.5mpg and CO2 emissions down by 22g/km, while maintaining its high power and torque outputs. The xDrive50i has a new-generation 4.4-litre

V8 engine now incorporating variable valve timing as well as twin turbochargers.

power steering and low rolling resistance tyres.

Power is improved by 10 per cent (41hp) and there has been a 50Nm increase in torque, but consumption falls by 20 per cent (4.6mpg) and CO2 emissions have been cut by 50g/km compared with the previous engine. These three engines will be joined at the end of the year by a four-cylinder diesel – taking advantage of the new X5’s considerably reduced weight and another six-cylinder diesel. The 2.0-litre four-cylinder turbodiesel engine is new to the X5 and appears in the sole two-wheel drive model, the sDrive25d, and the xDrive25d, which provisionally achieve fuel economy of 50.4mpg and 47.9mpg respectively. The respective provisional CO2 figures are 149g/km and 155g/km.

Extensive use of ultra-high-tensile steels in the body structure, an aluminium bonnet and magnesium instrument panel support and thermoplastic side panels have reduced the weight of the X5 compared with the previous model, with the xDrive30d weighing just 2,145kg. The car’s drag co-efficient (Cd) has meanwhile been reduced to as low as 0.31 (xDrive30d) thanks to active upper and lower air flaps in the front air intakes, air deflectors on the front wheel arches and a range of detailed improvements. The new X5 becomes the first BMW X model to feature vertical Aero Curtains and Air Breathers, which ensure that air passes over the wheels with the minimum of disturbance, and Air Blades, which work with the rear spoiler to smooth airflow around the car.

The X5 is fitted as standard with ECO PRO, Auto Start-Stop, Brake Energy Regeneration, on-demand use of auxiliary units, electric

Prices for the new X5 start at £42,590 for the two wheel drive 2.5dSE and £44,895 for the four wheel drive version.

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Fuel consumption figures for the Fiat Professional range in mpg (l/100km): Urban from 25.9 (10.9) – 64.2 (4.4); Extra Urban from 40.3 (7.0) – 97.4 (2.9); Combined from 33.6 (8.4) – 80.7 (3.5) CO2 emissions 90 - 222 g/km. Fuel consumption and CO2 figures based on standard EU tests for comparative purposes and may not reflect real driving results. FOR BUSINESS USERS ONLY. All Contract Hire rentals are based on a standard vehicle without extra cost options on a payment profile of 6 rentals in advance (Deposit), followed by 35 monthly rentals. Offer subject to status. Guarantees or indemnities may be required. Offer based on 10,000 miles per annum. All rentals exclude VAT and maintenance. Excess mileage charges apply. FGA Contracts, 240 Bath Road, Slough SL1 4DX. Offers cannot be used in conjunction with any other offer. Subject to availability. Figures and prices are correct at time of print.

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Business users only. Volkswagen Commercial Vehicles Deposit Contribution subject to acceptance from VWFS. Available on contract hire or finance lease terms. †6p per mile (plus VAT) charged for mileage travelled in excess of the contracted mileage. Further charges may be payable when the vehicle is returned. Indemnities may be required. Subject to status. Available to over 18s in the UK only. Available when ordered by June 30th, 2014, subject to availability. This offer may be varied or withdrawn at any time. Volkswagen Commercial Vehicle Finance, Freepost VWFS.

L-R: Paul McConaghy, Aftersales Manager; Conor King, Sales Manager; Richard Graham, Sales Executive and Carl Russell, Centre Principal.

40 years in the driving seat In the same year Porsche celebrates the 40th Anniversary of the 911 Turbo, Carl Russell, Centre Principal for Porsche Belfast, marks 40 years of service to the Isaac Agnew Group.

saac Agnew Group represents a portfolio of the most prestigious manufacturers in the motor industry. Ulster Business caught up with Carl to find out how the industry has changed over the years and what it’s been like working for the luxury car brand. “I began my career in 1974 as a Porsche Salesman with Isaac Agnew, so have worked for both the company and brand all my working life. When I started in the seventies I can genuinely say that I wasn’t a ‘petrol head’. Porsche hadn’t been established in Ireland very long and the market here was really in its infancy with half a dozen cars being sold in the first year. The brand has certainly come a long way since then, now we are exceeding sales of 200 cars per year and the latest model of the Macan sports car SUV has even been forward sold into 2015! “People have said that 40 years is a long time to be working for one company, but the combination of enthusiastic colleagues and our loyal customers has created a real family-

like atmosphere at Porsche Belfast which I’m lucky to be a part of it. As our customers grow, we grow with them offering models fit for every lifestyle. I have seen lots of people who got the chance to buy their first 944 in their twenties and when the family comes along they move on to the 4-door Cayenne or the new Macan. Those same people can’t wait to get a Boxster or 911 when the kids are shipped off to University! “I am asked regularly about anecdotes of special memories during my time with Porsche so far. It is true that I have far too

many to mention and some will never be brought to the public forum again! I must say that somewhere close to the very top is a recent day we held at Nutts Corner Race Track when we hosted a group of children with learning difficulties at one of our track events. We added an extra day to our annual two day customer event and invited 80 children with a wide range of disabilities from four local schools. Porsche Experience Centre Silverstone supplied eight cars and drivers who then gave the young people the experience of a lifetime. It truly was an enjoyable and rewarding day for everyone involved!”

EXECUTIVE MOTORING

Car sales still in the fast lane

ne of the most accurate measures of consumer confidence has shown another sharp jump and helped confirm the Northern Ireland economy is on the road to recovery. According to the Society of Motor Manufacturers and Traders, the number of new cars registered here in March climbed by 18% compared to the same time last year, with 7,574 new car keys handed over to owners during the month. The figures chime with a strong performance throughout the rest of the UK with all regions reporting an uptick in registrations, led by

England where an 18% hike was witnessed. In Northern Ireland the most popular new car was once again the Ford Fiesta, along with the Ford Focus and Volkswagen Golf but there were a couple of surprise new entrants in the Top 10 league table for the month.

But it’s the overall boost to the number of new cars registered that is thought to show one of the surest signs yet that the economy here in on the up. So-called “big ticket” expensive items such as cars tend to be reflective of the mood of consumers and will only be bought if they’re feeling confident about their future finances. During the depths of recession following 2007, new car sales in Northern Ireland fell by 20,000 a year but this latest uptick will provide a fillip for distributors.

The Renault Clio took the second spot with 236 cars sold during the month, while the French manufacturer also took a commanding position at fifth place for its Captur. Meanwhile, the consumer’s keen eye for a bargain also helped Romanian manufacturer Dacia, a subsidiary of Renault, to take the tenth position with its Sandero.

New car sales by the most popular make for the month are:

Ford Fiesta

Vauxhall Corsa Dacia Sandero

Rank

Marque

Range

FORD

FIESTA

312

RENAULT

CLIO

236

FORD

FOCUS

230

VOLKSWAGEN

GOLF

224

RENAULT

CAPTUR

215

VAUXHALL

ASTRA

195

VAUXHALL

CORSA

194

NISSAN

JUKE

176

HYUNDAI

I10

158

DACIA

SANDERO

154

MAY 2014

March

TOTAL TOP TEN

2,094

NORTHERN IRELAND GRAND TOTAL

7,574

APPOINTMENTS

Barry McGrane has been appointed to the Moy Park Executive Board as Chief Financial Officer. He has over 20 years’ experience having worked with United Drug plc. Suzanne Wylie, previously Belfast City Council’s Director of Health and Environmental Services, has been appointed as the Chief Executive of the new Belfast council that will come into operation on 1 April 2015. Gavin Elliot of CBRE has been appointed Director of Capital Markets responsible for the disposal and acquisition of commercial property as well as asset management and development.

Julie Cathcart has been appointed senior surveyor within the professional services department at CBRE. She will be involved in all aspects of landlord and tenant work. Sean Doherty is a newly appointed senior building surveyor within the CBRE building consultancy department. Sean carries out a full range of professional services. James McGinley has been appointed Projects Assistant at the National Children’s Bureau NI, a charity working to enhance the outcomes of children. He will support the implementation of evidence-based programmes.

Graeme McClusky has been appointed Business Development Manager at Eircom. He joins the company with over twenty years direct sales and management experience in the telecoms and telematics industries. Victoria Poole has been appointed Account Executive at Weber Shandwick. She worked in the press office for a local council previously and will provide public relations and public affairs support for a diverse client portfolio. Darren Marley has been appointed as an Associate Solicitor in the Corporate Department of Tughans. He will assist on M&A transactions and company funding.

APPOINTMENTS

Justin Coleman has joined Moy Park as Agriculture Development Manager in Dungannon. He has over 15 years of retail supply chain experience working for Finlay’s Horticulture Kenya Ltd. Jim Sands has been appointed as Site Manager at Moy Park’s convenience food operation at Grantham in England. He worked for Kerry Foods for 15 years, most recently as Operations Director. Vicki Caddy has been appointed Head of PR at ASG, where she began her PR career. Her experience spans public and private sectors, with stakeholder engagement and business development expertise.

Sarah Monahan has been appointed Client Manager at ASG. Sarah has over seven years’ experience in communications as a broadcast journalist and a Public Relations Executive. Rory Jeffers has been appointed Deputy Creative Director at ASG. Rory has been involved in the advertising and design industry since 1998 and will drive brand and design within ASG’s creative portfolio. Alana Taylor has joined MCE Public Relations as a Senior Client Executive. She will be working with a range of consumer clients and has over six years’ experience in the PR industry.

Andrew Kelly has joined MCE PR as a Client Executive specialising in corporate PR and event management. Andrew has previously worked in press office and events roles. Sarah Fox has joined MCE Public Relations as a Client Executive, specialising in lifestyle and consumer PR. She previously wrote on a freelance basis for local consumer and business publications and websites. Mary-Clare Deane has been Chief Executive of the Grand Opera House. Prior to this, she was a Partnership Director with Capita PLC and has worked in local government in England and NI.

MAY 2014

PHOTOCALL 1. Thirteen voluntary and committee organizations across Northern Ireland were awarded certificates at Tyrone GAA Centre of Excellence to mark their contribution to improving road safety in local communities with grants from the Road Safety Grant Programme. Department of the Environment Minister Mark H Durkan (centre) is pictured with thirteen grant award winners.

2. Danske Bank and NI Chamber brought over sixty companies together during the third phase of business support programme Danske Bank Export First. Pictured are Ann McGregor, Chief Executive of NI Chamber; Katherine James, Head of Small Business at Danske Bank; Nick Coburn, Managing Director of Ulster Carpets and Enterprise Minister Arlene Foster.

3. Belfast brothers Daniel and Martin Courtney celebrate the launch of their restaurant Stix and Stones in Belfast. The restaurant will create up to twenty new jobs, full and part time, and is an investment of £250,000. 4. Dr Stephen Farry, Minister for Employment and Learning, is pictured with South Eastern Regional College’s Director of Economic and Corporate Development Thompson Keating and Joinery apprentice Callum McCaffrey. They visited two apprentices, on SERC’s scheme, who are studying Carpentry and Joinery whilst learning conservation joinery skills at Mount Stewart House. 5. Brian Ambrose, George Best Belfast City Airport; Lisa McBriar, Prince’s Trust; Employment Minister, Dr Stephen Farry; young person, Emma Allison; Roy Adair, Belfast Harbour and Kieran Harding, Business in the Community lead the call for businesses to to help 3,000 young people into employment in the next three years at employ³ event.

4 5

PHOTOCALL 6. The three day Belfast Technology Conference (BelTech 2014) brought international speakers and master classes educating attendees in strategic technology areas and opportunities to grow the local start up economy. Pictured are Tom Gray, CTO, Kainos, Patrycja Padas, Employment and Learning Minister Dr Stephen Farry and Ryan Kavanagh.

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10 MAY 2014

7. Brendan Sheehan, Treasurer and David Taylor, Chair of Energy Institute Ireland are pictured at the Energy Institute Northern Irelandâ&#x20AC;&#x2122;s annual black tie dinner. The EI is celebrating its centenary and the event was attended by over 160 professionals working within and on the periphery of the local energy industry. 8. Mash Direct celebrate their tenth anniversary. Through a diversification project the company employs 120 people and has 37 different dishes in its portfolio. Celebrating its achievements are Enterprise Minister Arlene Foster, Ulster and Ireland player Rory Best (with RBS 6 Nations trophy) with Managing Director Martin Hamilton and Director Tracy Hamilton. 9. Denroy Plastics hosted a full meeting of the Northern Ireland Assembly Committee for Enterprise, Trade and Investment at its Balloo site as part of an ongoing initiative by the Committee to host its meetings in a range of businesses across Northern Ireland. DETI members are pictured with Mike McGrath from Denroy Plastics. 10. At the All Party Group meeting on SMEs, Employment and Learning Minister Stephen Farry MLA spoke about developing a better Employment Law system. Pictured is Secretariat to the APG and Chief Executive of Enterprise Northern Ireland Gordon Gough, Minister Stephen Farry MLA, Chair of the APG Judith Cochrane MLA and Assembly Private Secretary to the Enterprise Minister Alastair Ross MLA.

PHOTOCALL 11. The CBI Northern Ireland 2014 Annual Dinner took place at The Ramada Plaza, Belfast and CBI Northern Ireland Chair spoke at the event. Pictured are Darren Lemon, General Manager of Eircom UK; Sir Mike Rake ,CBI President; Colin Walsh, CBI Northern Ireland Chairman and Adrian Doran, Barclays Head of Corporate Banking in Northern Ireland.

12. Director of Bryson Energy and Drumlin Wind Energy Co-op Voluntary Chairman Nigel Brady has received a runner-up award for his work at the Action Renewables Energy Awards. He is pictured receiving his award from Minister David Ford MLA with Drumlin Board members Andrew McMurray and Paul Phare (RH and LH). 13. Willowbrook Farm celebrated its debut ‘Leafy Salad Innovation Day’ to incorporate all businesses involved from the breeder to the consumer along with communicating information about salads soon to appear or new on the market. Pictured are Willowbrook Foods Staff Peter Summerton, Jean Hart, Jonatahn Magowan, Leanne Rice and Tanya Neilson.

14. Titanic Belfast Chief Executive Tim Husbands was awarded an MBE by Her Majesty The Queen. Previously Managing Director of Belfast’s Waterfront Hall and the Ulster Hall, he secured the 2009 Tall Ships Festival and the 2011 MTV Music Awards and has played a significant role in making Belfast a vibrant destination choice. 15. A £3 million extension has been carried out at Ballygally Castle by Hastings Hotels. It will bring an additional eighteen coastal and garden view rooms, along with improvements to conference/ banqueting facilities. Pictured are Sir William Hastings, Group Chairman, Hastings Hotels; Enterprise Minister, Arlene Foster; Howard Hastings, Managing Director, Hastings Hotels and concierge, Jackie Galbraith.

PHOTOCALL 16. Kingsmill donated loaves to Simon Community NI which will be distributed across the charity’s network of projects over the coming year. Their donation will help some of the most vulnerable people in society with nutritional issues they face daily. Kingsmill representatives are pictured with Joanne English, Marketing Manager at Simon Community NI. 17. Creightons of Finaghy are pleased to announce their continued sponsorship of the Balmoral Show Hunter classes for another two years, bringing their sponsorship involvement into its eighth year. Rider Morgan Hirst (granddaughter of Pearl Creighton) on Gordon is pictured with Niall Creighton and Colin McDonald, RUAS.

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18. A bespoke Golf exhibition – The Irish Golf Expo – has been announced for September. The exhibition is designed to increase participation of golf in Ireland and give enthusiasts a wealth of golfing products, knowledge and workshops. European Tour Player, Gareth Maybin is pictured hitting a drive down the Titanic Slipway. 19. Thirty-four businesses celebrated their partnerships with local art organizations at the Arts & Business NI Investing in the Arts reception. In attendance were Stephen Cruise, Private & Specialist Financial Advice NI, Ulster Bank; Coral Ni Chuilin, Culture Minister; Dr Joanne Stuart OBE, Chair, Arts & Business NI; Dan Grodon, Arts & Bsuiness NI Board Member with Grant Goldie, Premiere Circus, Festival of Fools.

MAY 2014

20. Employment and Learning Minister Stephen Farry launched an innovative Action Plan to tackle the skills needs of the local Advanced Manufacturing and Engineering Services sector with Leslie Orr, Chief Executive, ADS Northern Ireland; Kirsty McManus, Confederation of British Industry; David Beatty, Thales UK Chairman and Mark Huddleston, General Manager, European Space Propulsion.

PHOTOCALL 21. Tourism Ireland in conjunction with the Northern Ireland Tourist Board organised a trip of top tour operators from France, Germany, Canada, Belgium and Sweden to visit Titanic Belfast before heading on the annual Meet the Buyer workshop at the Lough Erne Resort. 22. The Food NI Pavilion at the Balmoral Show looks set to be bigger than ever, having been increased by a third in size due to popular demand. Lindsay Curran, Food NI and Dr. Ernest Logan, RUAS President are pictured with exhibitors Sandy Cole, Broughgammon Farm, Ballycastle and Hannah Robinson, Irwins Bakery.

23. Golden Cow is providing 23 new jobs in Portadown with assistance from Invest NI’s Jobs Funds as part of a £2.5 million expansion. In pictures is, left, Brian Dolaghan, Invest NI’s Director of Business and Sector Development, and Camillus Fitzpatrick, Golden Cow’s Finance Manager. 24. First Minister and Deputy First Minister Peter Robinson and Martin McGuinness have confirmed the production of Game ot Thrones series 5 in Belfast with filming in other locations. They met Jay Roewe, Senior VP Production, HBO Films & Mini Series in Los Angeles.

25. Employment and Learning Minister Dr Stephen Farry congratulates the 2,000th person to be awarded a 100% funded place on his Department’s management and leadership training programme, Stephanie Gordon from Cherry and Lime, an Animation and Video Production House. Pictured with Farry are Jayne Campbell, Managing Director of Cherry and Lime and Stephanie Gordon.

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SPORT & HEALTH

Absentees won’t dent Giro enthusiasm

he absence of Team Sky’s Sir Bradley Wiggins and Chris Froome from the Giro D’Italia won’t dent the enthusiastic welcome for the event when it starts in Belfast this month, according to organisers. Last year’s Tour de France winner Froome is instead preparing himself for this year’s French race while Wiggins is said to be competing in May’s Tour of California. That adds to the loss of sprinter Mark Cavendish from the Giro who is also preparing for the Tour de France with a number of other warm up races. Meanwhile, Northern Ireland is gearing up for the arrival of the Giro which begins on May 9 in Belfast before heading up the Causeway Coast and on to Armagh. Thousands of spectators are expected at the event and Transport Minister Danny Kennedy is hoping most will use their own bikes or come by public transport in an effort

to avoid clogging up busy roads, some of which will be closed for the race itself. “A significant amount of planning has gone into organising this major event which will require a number of road closures throughout the three days of the race,” Danny Kennedy said. “I want everyone to come along and watch the race along the route so it is important that they plan their travel arrangements accordingly. The public should avoid using their cars and instead use public transport or cycle or walk to the race or to work or school.” Police Service of Northern Ireland, Assistant Chief Constable Alan Todd said: “A considerable amount of work has gone into the planning process for this event, involving a significant number of police officers and over 1,200 volunteers. While it is clear that the road closures will have an impact on the public and local businesses, it is our aim to minimise, as much as possible, disruption to residents, workers and public services. I know that many people are looking

forward to the event and we are keeping our fingers crossed that the weather is kind to the competitors, the spectators, and the officers on duty along the route.”

Is bypassing H&S rules ever justifiable? By Judith Hackitt, HSE

’ve recently visited a number of different companies in the UK and the Middle East and seen extraordinary levels of commitment and dedication in getting health and safety right. These businesses strive to create the right culture – leading from the top with all workers understanding the role they play.

Always seek authorisation before bypassing safety systems’.

I was recently asked how I knew when a proper safety culture is embedded in an organisation. There is no simple answer but one way of testing is to ask the workforce.

I didn’t know how many times such bypassing of systems had taken place but I did ask them to take a long hard look at this so called golden rule and think about whether the message they actually intended is being conveyed to workers. In truly exceptional circumstances it may be necessary to bypass a system but only after careful thought, proper risk assessment, good communication to everyone who is likely to be affected, and the full details of the exception process can be authorised by competent people. Bypassing the system must be a ‘big deal’ not something that’s “OK as long as you get permission”.

All too often senior managers are convinced they have first class systems in place and rules are well understood and complied with by all staff. However, talk to those same staff and you may hear a different story, a story of managers prepared to turn a blind eye to safety short cuts when there is pressure on production. I recently saw an admirable attempt to communicate the key safety messages by the use of a “10 Simple Golden Rules for Safety” poster. Or at least, I thought it was until I got about halfway down the list of rules and came across this:

Of course no-one should ever bypass safety systems on their own initiative, but to me this ‘rule’ implies it’s okay to bypass safety systems as long as you have permission, which is of course creating completely the wrong culture within the organisation.

How confident are you that all of your “rules” mean the same to your audience as you intended?

That’s about the only answer you won’t get from Agnew Fleet Manager. From mileage management to service reminders – we have the solution.

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TECHNOLOGY

The Gadget Guide Technology journalist Adam Maguire reviews some of the most recently released and soon to be available gadgets.

Reviews HTC One (M8) Having made a promising start in the world of smartphones, HTC is now struggling to stay in the race – but its updated One device should give it a fighting change. In an effort to regain some of its early smartphone glory, HTC last year revamped its product line up – putting the premium One device at its heart. The phone got plenty of praise – though sales were not particularly impressive – and HTC hopes its updated version will be equally well-received. And there’s no reason why it would not be. Inside the slick metallic body of the new HTC

One is a quad-core, 2.3 Ghz processor, 2GB of RAM and at least 16GB of storage space. It has a full HD screen, and even two cameras on the back to give users post-capture options over their picture’s exposure and focus. The HTC Sense 6 skin is nicely refined to get the most out of Android, and overall the device feels like a serious piece of kit. The one thing holding the HTC One back – if anything – is probably its company’s legacy, with many sure to be put off purely on the basis of past experience rather than future promise. The HTC One (M8) is available on contract with a number of networks.

Plantronics Backbeat Go 2 Putting great quality audio into a practical package, Plantronics Backbeat Go 2 will certainly appeal to those in the middle of the technophileaudiophile-fitness nut Venn Diagram. High quality headphones are easy to find – although you may need to part with a decent amount of cash in order to acquire them. Equally, Bluetooth-ready audio devices have become incredibly popular, as users increasingly use their phones and tablets to access music.

space at all but boast a decent level of audio output – as good as you could expect for something streaming an Mp3 wirelessly. They are easy to use – syncing takes a few seconds and the in-line remote makes it easy to play, pause or skip tracks as well as adjust the volume. But best of all, they are sweat resistant, meaning they will not be damaged when used during exercise. Battery life is good – it boasts up to four-and-a-half hours of listening – while a few pound extra will get you a neat carry case that doubles as a battery pack.

Finding a pair of high quality, Bluetooth headphones that don’t get in the way when exercising is surprisingly difficult, however.

Overall, it makes a great balance between usability and performance.

Enter the Plantronics Backbeat Go 2. These neat, in-ear headphones take up next to no

The Plantronics Backbeat Go 2 is available on Amazon for around £60.

TECHNOLOGY

Previews Samsung Gear Fit Smartwatches are said to be the next big thing and Samsung seems to be taking that prediction seriously, releasing its second generation of devices before Apple has even come to market with its own. The Samsung Gear Fit is part of a two-pronged approach by Samsung in the smartwatch space. On one side is the Gear 2, which is designed as a general-use device that helps people keep track of things as they go about their day. On the other side is the Gear Fit which, as the name suggests, has more of a fitness focus. It has a slick, curved display, weighs next to nothing (though it is a little bulky looking) and can track the user’s heart rate and steps amongst other things. It also boasts a three day battery, so users shouldn’t need to charge it up every few hours just to find out how well their exercise regime is going. The Samsung Gear Fit is set for a release in the UK in the coming weeks.

Amazon Fire TV Best known as an online bookseller, Amazon has made increasing inroads in the hardware space with its ebook and tablet range. Now it wants to dominate your television. The Amazon Fire TV is a similar concept to what Apple has done with its Apple TV device. It connects directly to a television and lets users access their own content – or buy some directly from Amazon itself – which they can then consume on the big screen. The Fire TV also doubles to some extent as a gaming device, and even has the option of a custom controller for those who want to go the whole hog. The Amazon Fire TV has been released in the US with a UK date yet to be announced.

MAY 2014

BUSINESS TRAVELLER

Graeme Roberts, Chief Marketing Officer, GoReport What’s your favourite App for passing the time? There’s a great rugby App by pik pok that I occasionally fail badly at… Have you ever unexpectedly run into someone you know from home in a far flung destination? Yes, I met an old university colleague walking down 3rd Street promenade in Santa Monica. We both kind of recognised each other at the same time and exclaimed each other’s names. Unfortunately, I got his name wrong so was left with that uncomfortable “uh oh, I’ve offended him“ feeling. Conversation and reminiscences were probably shorter than they would had I remembered his name, but it was 20 years since we’d last taken detention together. What do you enjoy most about working internationally? I like the change of gears from the home routine and the unexpected things you find in new places. I also enjoy explaining the difference between British, Irish, English and Northern Irish using bad accents to illustrate, and winding up my American friends when they ask if I personally know their ancestral family descendants back home in the old country! How often do you travel and why? I travel almost every week, mainly to London, working with customers in the building surveying and property markets, as well as several times a year to the USA . Other than your phone, what are the three things you couldn’t do without when travelling for work? My trusty MacBook Pro, my iPad and library of audio books, as well as a range of portable gadget chargers and screen adaptors. Have you found a good way to work while you are on the move? There are so many great cloud-based Apps now that working on the move is a breeze. My iPhone, iPad and MacBook Pro all sync wirelessly and automatically. I use dropbox and google drive for documents, Trello, and, more recently, Asana for projects, meetings and managing staff and ‘to do’ lists. I use Skype, Whatsapp and Google for communication too. All I need is an internet connection and it’s as if I’m at my desk! (minus the coffee, mess and scattered business cards…) What would be your top tips for anyone embarking on a job that involves a lot of travel? To make sure that you can keep your business and family life in balance, invest in high-quality, long-lasting luggage and book your own travel and accommodation. Also, try and make sure that the airport you’re travelling to isn’t 100 kilometres south of another handier airport.

What’s your favourite city/country in the world and where has disappointed you? San Francisco! Best sushi, climate, entertainment, and buzz in the world. I hated Bangkok for its smog, feeling of danger, confusion and sweat. What do you look for in a good hotel? Unclaimed tips on the bar tables and of course staggering distance to my first early morning appointment. A great comfortable bed is a must as is some degree of soundproofing. What’s the best airline you’ve flown with and the best hotel you’ve stayed in? The best airline for me is Aer Lingus – very comfortable with great staff and they now fly to San Francisco direct again from Dublin. Immigration procedures. in Dublin are very handy too. The best hotel was probably the Westin on Figueroa in Los Angeles – I loved the rooftop pool in the middle of downtown. Have you worked out a way to avoid jet lag? If you travel enough your body loses its clock and you feel jet-lagged all the time no matter where you are. I know that’s not really avoiding it though. There is apparently some UV light that you can buy and shine it at the back of your knees that’s supposed to help but I’ve not tried that yet – nor will I!

TRAVEL

London City service marks Flybe rebirth

lybe’s boss has said the launch of a new route between Belfast and London City Airport marks the “rebirth” of the airline. Chief executive Saad Hammad said the launch of such a competitive route is the result of a complete reassessment of the airline’s routes, one which saw it withdraw its Belfast City Airport-to-Gatwick service last month. “The decision to re-enter the London market at its most convenient airport follows a rigorous profitability analysis utilising our strict ‘Route Assessment Model,” he said. “With this new major London connection from Belfast City, we are not only cementing our position as Europe’s largest regional airline but also upholding our customer promise to be ‘The Fastest Way from A to Flybe.” Belfast is just one of five new routes which the airline is launching from London City Airport, one it claims can see passengers travel to Canary Wharf in 12 minutes and to Westminster in 24 minutes. It will also begin flying routes from Dublin, Edinburgh, Exeter and Inverness from October.

The changes are part of a wholesale restructuring of the company initiated by Mr Hammad who was brought in last year to help turn the business around. Part of that process saw Flybe raise £150bn to help fund the rebirth while at the same time launch a cost-cutting process which involved the loss of around 450 jobs across the UK. The new London route has been welcomed by Minister for Enterprise, Trade and Investment Arlene Foster. “This is excellent news for the Northern Ireland business community who have been seeking this service to London City for some

time. It will provide access to the heart of London as well as offering passengers a greater choice in terms of price and flight times.” Brian Ambrose, Chief Executive of George Best Belfast City Airport said he expected the service to be a success. “I have no doubt that London City will prove a popular service especially with business passengers. Flybe’s distinctive brand refresh and new service to London City signals a new era for our business partner and we wish the airline every success.” One way fares will start at £39.99 including taxes for the service.

New route to Doncaster-Sheffield

new service to Doncaster-Sheffield Airport has been launched from Belfast City Airport by regional airline LinksAir.

It’s only the second commercial route flown by the airline, the other being to the Isle of Man from Doncaster- Sheffield. LinksAir is a privately-owned airline which has been operating since 2007, mainly involved in corporate flights. “Belfast is an exciting, vibrant city to visit and connectivity to Northern Ireland is increasingly important for Sheffield, which is the UK’s fifth biggest city, and the surrounding South Yorkshire, North Nottinghamshire, Lincolnshire and Humber regions,” LinksAir Commercial Manager, Roger Hage. “The schedule offers passengers a choice of convenient flight times to travel between

MAY 2014

the two destinations, whether it be for business or leisure.” The new airline was welcomed to Northern Ireland by Enterprise, Trade and Investment Minister, Arlene Foster, who said: “The re-establishment of the air link between Belfast and Sheffield is great news for Northern Ireland. “It not only strengthens our own access to the north of England and the greater east midlands, but also makes it easier for people to get to Northern Ireland for business or a holiday. “Belfast City Airport transported over 2.5 million passengers in 2013, making it one of the busiest years in their history, and I look forward to working with the airport and its airline partners as we welcome more visitors to the region throughout 2014.”

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TECHNOLOGY

TOTAL FLEET MANAGEMENT ANY VEHICLE, ANY MANUFACTURER

Business Diary

June 2014

date

event

venue

CONTACT

4 June 09.00 - 16.00

Family Business Workshop Organiser: Invest NI

Ramada Hotel, Shaws Bridge, Belfast Cost: FREE

For further information T: 028 9069 8560; Email: michelle.newell@investni.com or visit www.investni.com/events

4 June 09.30 - 13.00

Recruitment & Selection Workshop Organiser: Invest NI

Lagan Valley Island Civic Centre, Lisburn Cost: FREE

For further information T: 028 9069 8560; Email: michelle.newell@investni.com or visit www.investni.com/events

5 June 18.30 onwards

BITC 2014 NI Impact Awards (Black Tie)

Waterfront Hall Cost: See website for details

For more information T: 028 9046 0606; Email: marie.atcheson@bitcni.org.uk or visit www.bitcni.org.uk

9 June 12.30

New Member Lunch Organiser: Institute of Directors (IoD NI)

Riddel Hall, Stranmillis Belfast BT9 5EE

Too book contact Lorraine Corry on Tel: 028 9068 3224 or visit www.iodni.com

10 June 10.00 - 11.30

CITB-ConstructionSkills NI Information Event Organiser: CITB-ConstructionSkills NI

Causeway Enterprise Agency, Coleraine Cost: FREE

For further information T: 028 9082 5466; Email: events@citbcsni.org.uk or visit www.citbcsni.org.uk

10 June 09.30 -12.30

Leading on Performance Management Masterclass Organiser: Women in Business NI

Newry, exact venue TBC Cost: FREE for members £10 +VAT for Non-Members

Email: laura@womeninbusinessni.com or visit www.womeninbusinessni.com/events

11 June 08.30 - 12.30

Evaluating your Board – The Effectiveness of the Board workshop Organiser: (IoD NI)

Riddel Hall, Stranmillis Belfast BT9 5EE

Too book contact Lorraine Corry on Tel: 028 9068 3224 or visit www.iodni.com

12 June 18.30 -20.30

BBQ Quiz Night Organiser: Women in Business NI

Hillmount Nursery, Gilnahirk, Belfast Cost: £10 +VAT for Members £25 +VAT for Non-Members

Email: laura@womeninbusinessni.com or visit www.womeninbusinessni.com/events

17 June 10.00 - 11.30

CITB-ConstructionSkills NI Information Event Organiser: CITB-Construction Skills NI

Castlereagh Enterprise Ltd, Belfast Cost: FREE

For further information T: 028 9082 5466; Email: events@citbcsni.org.uk or visit www.citbcsni.org.uk

18 June 09.30 - 16.00

Performance Management Workshop Organiser: Invest NI

Lagan Valley Island Civic Centre, Lisburn Cost: FREE

For further information T: 028 9069 8560; Email: michelle.newell@investni.com or visit www.investni.com/events

If you would like to promote an event or conference please contact Sonia FEBRUARY 2014 Armstrong (soniaarmstrong@greerpublications.com) 105

PEOPLE IN

BUSINESS

OUTLOOK FOR 2014 OUTLOOK FOR 2014

OUTLOOK FOR 2014

What do you consider your best business decision or idea? It is difficult to say as I have had to make lots of innovative business decisions in my career. However I believe people are the best investment in any business: spending good quality time developing my team and ensuring they are equipped to provide planned and reactive response to the distribution site has paid off. Who or what has been your biggest influence or inspiration? Several people have inspired me in the past. However in recent times I have been influenced by my brother James who sadly passed away recently, and my niece Elizabeth who has been very ill. Throughout their illnesses they demonstrated the value of life and even though they suffered so much they did so with dignity. Without being aware of it, they became true heroes.

Fact File Name & Job Title: Raymond Coulter, Facilities Manager, Henderson Wholesale Ltd.

What was your first paying job? At 13 years old my first job was delivering papers. Within a short period I had two paper rounds. What do you like most about your current role? I work for Henderson Wholesale Ltd and I am employed as a Facilities Manager. The site has 20 acres and four buildings. As 300 members of staff are based here, training is provided on site for staff and retailers; this can push the numbers up to 400 on some days. We have 300 commercial vehicles accessing the site each day. My key role is to ensure the site is secure and runs without disruption. I also look after the mechanical handling equipment, company cars, energy and waste. I am responsible for the refrigeration plant and services on site and ensure they are managed as efficiently as possible. I have a good team in my department that keeps on top of the day to day work, which allows me to get on with other business

projects. Every day is different; there is a wide variety of work that keeps me active. What’s the worst job you’ve ever done? It was probably when I worked for 12 months as a marine electrician. I soon found out that it was cold and wet! Also there was not enough work to challenge me. But I enjoyed the opportunity to fit out five car ferry boats that were issued to Stena line. Are you switched on 24 hours, or is there a time when you turn your phone off? I never switch off my mobile phone. In this job you need to be available at all times to ensure the site runs without disruption. Has your personal life suffered because of your career? To be honest it did in the past as I tended to put my job first and before my family. Over the years I have managed to achieve the correct balance.

Do you have any “golden rules” in life or in work? Be honest and truthful to yourself and others. Don’t expect anyone to do anything you wouldn’t do yourself. What is your most hated business expression or cliché? How’s it going? If you hadn’t been in business, what would you have liked to have done? I would have liked to be a fighter pilot. Unfortunately I didn’t pass the eyesight test as I wear glasses. What’s the most treasured possession in your office? It may not be much but I have a limited edition picture of George Best. Apart from that, my telephone. What are you currently reading? Apart from business magazines and papers – I don’t read a lot. I prefer to watch history programmes or a good movie. What do you think you’ll be doing in ten years’ time? Hopefully enjoying my company pension.

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