Ulster Business Top 100 August 2020 by Ulster Business

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Contents 10 News

44 Interview

138 Analysis

The latest news and exclusives from across the world of Northern Ireland business

Ellvena Graham speaks to John Mulgrew about heading up a new Economic Advisory Group

Dr Esmond Birnie forecasts what impact the coronavirus crisis could have on our future

30 In Focus

67 Top 50 Employers

159 Motoring

John Mulgrew sits down with Finance Minister Conor Murphy to talk crisis management

We showcase the companies with the largest workforces in Northern Ireland

Pat Burns goes off-road and also tackles the latest hybrid from Audi

32 Top 100 analysis

124 Podcast

166 Photocall

Jonathan Cushley breaks down all the numbers from this year’s leading companies list

A look at some of the recent Ulster Business Podcast episodes, with Bank of Ireland UK

We take a look at what’s been happening across the world of NI business

37 Top 100

128 Interview

174 Technology

The definitive list of Northern Ireland’s leading companies for more than 30 years

Randox’s Dr Peter FitzGerald speaks to John Mulgrew about the frontline Covid-19 battle

Are electric scooters the future of city travel? Adrian Weckler takes one for a spin

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EDITOR’S COMMENTS

Showcasing Slowly returning the to a our society talent we have here

hen I took over as editor of this magazine, the effects of the 2008 recession had somewhat diminished, settled, and companies here were trying to deal with a reasonably normalised trading environment. Of course, Brexit then started playing havoc with the medium to long-term planning for many firms here, and now, we’re dealing with a time like no other. This special annual Top 100 Companies edition, with A&L Goodbody, remains an important snapshot of the general business performances of many of our largest firms here. For us, it’s not a chance to boast about the big numbers for some, but a measurement of the overall economic

performance of Northern Ireland’s leading firms.

covers filings in the last year or so, when we didn’t know what was around the corner.

Looking back at some of the Top 100 editions of the past, you can chart and see some of the once giants of industry which we lost amid the economic collapse more than a decade ago.

But, and I’ve said it before, Ulster Business will be here each step of the way for the Northern Ireland business community – through both the challenging times ahead, and the many positive stories which will emerge, and have already emerged, throughout this pandemic.

Those difficult times are likely to be repeated in the coming months and years, and it’s quite possible some of the firms we’ve been talking about for years as bastions of the NI economy, will suffer amid the fallout of coronavirus, jobs will be lost and some sectors significantly contracted. Like years gone by, we’re likely to see significant shifts and changes on future Top 100 lists – this 2020 edition predominately

Publisher Ulster Business c/o Independent News & Media Ltd Belfast Telegraph House 33 Clarendon Road, Clarendon Dock, Belfast BT1 3BG

It’s another packed double edition of the magazine, featuring a raft of profiles, photography, analysis, news and features, and a chance, once again, to showcase the breadth and quality of the companies which still proudly call Northern Ireland their home. ■ John Mulgrew

Editor John Mulgrew Magazine sales manager Mark Glover Sales executive Sarah-Ann Gamble Sales executive Judith Martin Production manager Irene Fitzsimmons

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

www.ulsterbusiness.com

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Ulster Business Magazine

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AUGUST 2020

TOP 100

The constant amid the chaos By Michael Neill, head of Belfast office, A&L Goodbody

his marks the fifth year of A&L Goodbody’s sponsorship of the Ulster Business Top 100 – a partnership of which we are immensely proud and continue to value greatly. Reflecting back over the past five years of our association with this particular edition, it struck me that this foreword has always been drafted in the context of some sort of political or economic adversity. In 2016, we found ourselves in the immediate wake of the EU Referendum, followed by three years of crippling uncertainty about the future for the UK post-Brexit. This challenge was only further compounded in 2018 and 2019 by the lack of a functioning Northern Ireland Assembly. And now, here we find ourselves in 2020 – slowly beginning to emerge out of what has been described as the worst crisis

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since the Second World War and anticipating what this means next for our businesses and our economy. Yet despite what might be deemed as ‘chaos’– the major challenges, the crises, the political stalemates – there has been one undisputed constant: our Top 100 Companies. While each year has seen some movement up or down within the rankings, together with new additions or companies slipping off the list, this strong and steadfast cohort of firms have continued to play a key role in driving the Northern Ireland economy. Despite such chaos, they have continued to create hundreds of new jobs and underpin many thousands more. They have remained at the forefront of innovation and the latest cutting-edge developments in technology,

engineering and manufacturing. They have continued to dominate their markets both at home and, driven by a strong focus on exporting, abroad. As an international law firm with offices in Belfast, Dublin, London and the US, we have been working closely with many of these Top 100 Companies in recent months, advising on both domestic and international matters impacted by Covid-19. We have been inspired not only by their drive and agility but, most of all, their resilience and determination to overcome adversity yet again. On behalf of all at A&L Goodbody, congratulations to each of this year’s Ulster Business Top 100 Companies. We wish you every success in the coming year as you embark upon your respective journeys to recovery post Covid-19. ■

NEWS

month IN Top 100 profits and numbers sales rise by 10% A

10%

Michael Neill, A&L Goodbody, Chris Kirke, Moy Park and John Mulgrew, Ulster Business

The percentage rise in both sales and pre-tax profits for our biggest firms, according to the Ulster Business Top 100 Companies 2020 with A&L Goodbody.

11%

The percentage Northern Ireland’s economy could shrink by this year, according to the latest forecast from Danske Bank.

100

The number of businesses making up this year’s Ulster Business Top 100 Companies list with A&L Goodbody.

£27.5bn

The combined turnover of the Top 100 Companies in Northern Ireland. The latest list shows sales among the largest companies here has risen from £24.9bn.

orthern Ireland’s biggest businesses have seen sales rising by more than 10% over the last year, Ulster Business can reveal. The Ulster Business Top 100 Companies 2020 list with A&L Goodbody shows sales have grown to £27.5bn from £24.9bn, across our largest businesses – up 10.4%. Meanwhile, pre-tax profits have also risen in line with sales – up around 10% across the companies on the list, when compared with year-on-year figures. Around a dozen firms are new to this year’s list, compared with the Top 100 in 2019. The majority of the company accounts cover 2019 and the end of 2018, thus any impact of the ongoing coronavirus situation would not be reflected in the overall performances. And poultry processing giant Moy Park has topped the list for the ninth year in a row, with turnover of £1.58bn, while pre-tax profits now sit at £70m. Michael Neill, head of Belfast office, A&L Goodbody, sponsor of the Top 100, said: “On behalf of all at A&L Goodbody, congratulations to each of this year’s Ulster Business Top 100 Companies. We wish you every success in

the coming year as you embark upon your respective journeys to recovery post Covid-19. “As an international law firm with offices in Belfast, Dublin, London and the US, we have been working closely with many of these Top 100 Companies in recent months, advising on both domestic and international matters impacted by Covid-19. “We have been inspired not only by their drive and agility but, most of all, their resilience and determination to overcome adversity yet again.” Ulster Business editor, John Mulgrew, said: “The performance of some of Northern Ireland’s leading firms continues to cement our position on the business map – especially given the wide breadth of companies which call here home. “And while over the course of more than 30 years this list has been through the boom times, as well as tough periods following the 2008 recession, the next couple of years are likely to be the most difficult many of them have ever faced. But many of those companies on the list, and across Northern Ireland as a whole, have the resilience and the ability to weather such challenging times, and Ulster Business will be there as a guide along the way.” ■

NEWS

Furlough system ‘tapering off too soon’ says Minister

he Government’s furlough system is coming to an end too soon for firms here and despite assistance some companies here may still not weather the coronavirus storm, according to the Finance Minister Conor Murphy.

My Murphy also said that the Government’s Job Retention Scheme is “tapering too soon”. “We anticipate when employers are asking to contribute more is likely to be the time when some of them are going to say ‘I cant afford to do this’. How quickly that happens, the taper happens… all of those are unknowns.

Speaking to Ulster Business, Mr Murphy said the next step was identifying firms and traders “falling between the cracks”, with around £40m set aside. And he said while an additional £162m set aside from the Treasury for assistance is welcome, it “isn’t anywhere near what we would be hoping for”. “We would like to see a much more substantial intervention in terms of cash support,” he said.

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“… it probably is not going to be possible to keep everybody open, so how do you direct resources, which are limited, to try and help those which can function, function as well as they can to generate economic activity, or just pay people to sit dormant.” Read the full interview on page 30-31 Conor Murphy

NEWS

Quotes OF THE month “It was about making sure people are safe. It wasn’t easy for us but we responded quickly. It’s about people and protecting futures. We pride ourselves in making sure they are safe.” Chris Kirke, chief executive of Moy Park, speaking about how the company has dealt with the Covid-19 crisis.

“I have made no secret of the fact that I wish to see a very significant increase in the level of investment in skills. Developing a highly effective skills pipeline is key to our economic future as we lay a strong foundation for our economy post Covid-19.” Economy Minister Diane Dodds speaking about the importance of skills and training to help the economy recover.

Major licensing law changes to include 2am serving

ubs in Northern Ireland will be able to serve as late as 2am and restrictions around Easter opening will end amid new government licensing changes here. The new Bill being brought forward by Communities Minister, Carál Ní Chuilín will include changes in relation to late opening hours for pubs, Easter trading arrangements, advertising in supermarkets, and special events. And part of the changes will include bars and nightclubs being able to serve as late as 2am – an extra hour on the current legislation. They will also bring Easter trading hours in line with normal opening. But the amendments will also include new restrictions on advertising of alcoholic drinks and introduce a statutory code of practice on responsible retailing. “I believe these proposals represent a balanced

Communities Minister, Carál Ní Chuilín MLA and Colin Neill of Hospitality Ulster

package of measures aimed at tackling alcohol misuse and promoting responsible consumption, whilst providing vital support for the hospitality industry,” Ms Ní Chuilín said. Colin Neill, chief executive of Hospitality Ulster, said: “This Bill can be a defining moment for the hospitality industry, bringing much of it into line with our neighbours in the Republic of Ireland and in Great Britain and making it more attractive to customers and visitors.”

The Rabbit hotel unveiled in Templepatrick It’s also launched the Rabbit Bar & Restaurant, which seats up to 180 and boasts a large outdoor terrace, and focuses on food from the American Deep South.

“Make no mistake – the UK Government’s support of business during the crisis has saved countless firms and potentially millions of jobs. But the rising number of benefit claimants, alongside redundancy fears, shows just how hugely damaging this pandemic has been for our economy” CBI NI director, Angela McGowan, writing in this Top 100 edition of Ulster Business.

“With more people holidaying at home, the Rabbit Bar & Restaurant provides a new and exciting hospitality experience – and it’s just in time for summer,” Galgorm Collection managing director, Colin Johnston, said. The Rabbit restaurant manager, Arlene Curran with managing director, Colin Johnston

Co Antrim hotel has been rebranded and is launching a new restaurant and bar as part of an overall £7m investment. Galgorm Collection, which owns the Galgorm Resort & Spa outside Ballymena, has renamed the former 24-bedroom Templeton Hotel in Templepatrick as The Rabbit.

“The multi-million pound project to transform and redevelop the former Templeton Hotel commenced in October last year and it represents a significant investment in the local economy, cementing our longstanding commitment to support and grow our tourism industry. “We’re excited to reveal The Rabbit’s new name and announce plans for its full opening later this year.”

NEWS

‘Further pandemics likely in future’ By John Mulgrew

t will be well in to next year before a vaccine can be found to tackle Covid-19 and there is a strong chance of facing similar pandemics in future, one of Northern Ireland’s top experts has said. Dr Peter FitzGerald’s medical testing firm Randox – based in Antrim – has been on the front line of testing for Covid-19 right across the UK and beyond. “I think there is a reasonable chance there will be more pandemics, with globalisation and increased population,” he told Ulster Business. “I have no idea how much it will come back again in second wave.”

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The virus has led to a new complete lab being built to deal with the additional testing. “We decided to accelerate the manufacturing in our Randox Science Park in Antrim.” As a result, it has hired around 200 staff in the space of six to eight weeks to deal with the surge. Randox had a workforce of around 1,450 worldwide before the coronavirus crisis began, but has since taken on around 280 additional staff for a range of roles, partly in ramping up demand for the additional testing. And asked when the world could see the formulation of a proven vaccine, he says: “I would say it would be well into next year.”

Dr Peter FitzGerald

You can read more on page 88-89 and page 128-129

NEWS

£600m plans to develop Kilroot New plans could see one of NI’s largest power stations developed and transformed into a huge £600m energy park, writes John Mulgrew

massive £600m energy park could be built around the site of one of Northern Ireland’s main power stations, it has been revealed. The owners of Kilroot power station, based near Carrickfergus in Co Antrim, have outlined early plans for a new ‘energy park’ which it says would have the potential to power 500,000 homes across Northern Ireland. The plans, which developers say are “at early concept stage” include a new pipeline supplying natural gas, a transition from coal power to gas, a solar farm, battery storage, a hydrogen facility and a visitor centre. A detailed application planning application has already been submitted which will begin Kilroot’s transition from coal to gas-powered. “If taken forward in its entirety, the Kilroot Energy Park vision, would have the potential to generate up to 440MW of lower carbon and renewable energy, which is enough to power

500,000 homes,” developers say. “The investment in the site would also safeguard hundreds of jobs and mark a historic milestone in the decarbonisation of electricity generation in Northern Ireland.” Ian Luney, commercial director of EPUKI, which owns Kilroot, said: “For decades now, the coal fired generating units at Kilroot have provided a hugely strategic and important source of electricity for homes and businesses across Northern Ireland. “With the UK Government committed to phasing out coal powered electricity generation by 2025 and with Northern Ireland determined to lead the way in lower carbon and renewable energy generation, we have a fantastic opportunity to transform the Kilroot site allowing it to continue to remain one of the prime and core indigenous electricity generation sites in Northern Ireland. “Kilroot Energy Park will aim to deliver new highly flexible gas generation to complement the widespread use of renewable energy on the electricity system in Northern Ireland. This aligns with the strategic needs of the Northern Ireland system, which can utilise on any given day up to almost 70% of its electricity from renewable sources. ‘’In addition to this, we are looking at a range of other forms of renewable energy on the

Kilroot power station

230-acre site, including solar, battery storage, hydrogen and a multi-fuel combined heat and power (CHP) facility as well as a data centre.’’ Mayor of Mid and East Antrim, councillor Peter Johnston, said: “The scale of this potential investment and the vision outlined is incredible and I commend EPUKI for this outstanding work. “This is brilliant news for Mid and East Antrim, and Northern Ireland, in terms of leading the way in the transformation of our energy services. “Coming from a power generation background, it makes me extremely proud to see my hometown of Carrickfergus at the leading edge of innovation and investment for energy production. “The masterplan unveiled today positions our area as the powerhouse for Northern Ireland and would result in the generation of ever-cleaner energy, substantial investment and employment – supporting our council’s number one strategic priority, the economic growth of our borough.” And East Antrim MP Sammy Wilson said: “I’m hugely impressed by the plans outlined which would secure Northern Ireland’s energy supply for many years to come. A secure energy supply is vital for sustainability and to attract inward investment.” ■

NEWS

Bloc Blinds builds new manufacturing facility for crucial PPE By John Mulgrew

Northern Ireland manufacturer at the forefront of the fightback in tackling coronavirus is building a new hub to expand its production of crucial protective gear, it can be revealed. Bloc Blinds is now planning to create a new manufacturing, production and distribution hub close to its headquarters in Magherafelt, Co Londonderry. The firm was one of the key businesses to retool and begin producing PPE (personal protective equipment) to help frontline health workers in tackling the Covid-19 crisis head on. Bloc Blinds has grown from its humble

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beginnings in Draperstown to become one of the UKâ&#x20AC;&#x2122;s leading designers and manufacturers of innovative blinds and skylight systems.

Cormac Diamond of Bloc Blinds

The company has seen a 40% rise in turnover in recent years, and announced a significant manufacturing milestone in 2018, with the business producing its one millionth blind. Following the creation of a prototype, the company has now repurposed its production line and will be able to produce 22,000 face shields each day. Just a few days after the crisis began, more than 40 companies volunteered to assist in providing support to produce various PPE requirements.

ECONOMY

Major Government scheme planned to help those losing jobs due to coronavirus By John Mulgrew

major new Government-led scheme could be set up in Northern Ireland to help those who have lost jobs amid the Covid-19 crisis retrain and find new employment, Ulster Business can reveal. A new Stormont-led ‘Work Ready’ employment service would work in addition to the existing Jobs and Benefits, but focus on expertise to supplement that with specialist areas or the ability to “ramp up and down” when needed. It’s also warning that unemployment levels, while already at record highs, are “likely to increase when government support tapers off” The scheme is being proposed by the Department for Communities. It’s being designed to help those who have lost their jobs, but are ready to start work in a similar or entirely different area of employment. As part of an early market consultation, pre-tender, it says a “large number of work ready people on the lower end of the skills spectrum may become unemployed”. It also says it’s aimed at helping vulnerable people such as those with health conditions, ex-offenders, former carers, for example, to find new roles. And it’s looking at those recently unemployed people who “will become economically inactive with new or exacerbated health conditions especially mental health conditions”. The early proposal also says that “existing long term unemployed, economically inactive and disabled people will face greater labour market competition from recently unemployed people” and adds that “young

people exiting education or training run the risk of longer term scarring”.

help people who may have lost their job,” the document says.

It’s carrying out a market consultation with those who could potentially be involved in scheme, and says procurement options include a “multi-supplier” framework agreement, a ‘onestop-shop’ single contract for specific regions, or a contract for services right across all of the Northern Ireland’s council areas.

It describes those ‘Work Ready’ people as those who “have been affected by job losses unexpectedly, are experienced in their field, eager to find new employment and therefore are deemed to be ‘work ready’, albeit they may require support to re-enter the labour market”

“As part of a move across government in Northern Ireland to respond to the impacts of Covid-19 outbreak and the potential significant rise in unemployment, the Department for Communities (DfC) has initiated a project to assess the feasibility and benefits of establishing a ‘Work Ready’ Employment Services contract to

The Department says the purpose of the market consultation exercise is “to gain an understanding of the current capability and capacity to deliver Work Ready Employment Services throughout NI as well as understand the latest developments and innovations in the delivery of these services utilising a range of channels”. ■

ANALYSIS

Thoughts on a post-Covid recovery As many businesses tentatively begin to return to more normal trading in the wake of lockdown, thoughts turn towards the economic recovery. It’s clear the next 12 months will not be plain sailing, writes Adrian Doran, head of corporate banking, Barclays Northern Ireland

or some businesses this is likely to be a time of continued fire-fighting, as they grapple with subdued customer demand and financial pressures, whilst for others it will be hopefully a return to something close to ‘business as usual’. Here, we look at some of the top considerations for directors, accountants and company decision-makers, as we prepare for the road ahead.

funds into their accounts within just 48 hours of completing their online application. This level of demand was unprecedented and showed the advantages of being a digitally enabled bank. The question for all businesses now is, can this new-found agility and these more flexible working practices can be carried forward to drive productivity improvements, or do we allow ourselves to slip back into old habits?

‘Cash is king’ First and foremost, chief financial officers (CFOs) will want to ensure their businesses have enough cash to see them through to an eventual recovery. Many companies have availed of government support such as the Job Retention Scheme or access to one of the various government loan schemes, all of which have helped bolster liquidity at this critical time. It is important that businesses have robust management information and the ability to forecast their cashflow over the next few uncertain quarters.

Sustainability Corporate responsibility, sustainability and the environmental agenda were huge before Covid, and with economic challenges on the near horizon, it could be easy to see them pushed them back down the list of priorities. But from the conversations we’re having with clients and business leaders, it is likely these will be even more important going forward. For instance, we have recently seen a significant rise in firms placing ‘Green Deposits’ – funds which are only used by the bank to support projects that enhance the transition to a low carbon economy.

Building back better On a more optimistic front, the old adage ‘never waste a crisis’ has never been more apt. The past few months have seen many businesses adapt extremely quickly to facilitate working from home. The speed of digital transformation has also been astonishing in many cases, with companies achieving in weeks what would normally have taken years. In our own business, Barclays completed over 200,000 Bounce Back Loans across the UK, with many customers getting

Those companies that are seen to have built strong social, environmental and ethical reputations, particularly during the crisis, will be rewarded. Many businesses flexed production to respond quickly to the government’s urgent request for PPE for health workers. The absence of commuting has made people think about our future office and transport needs, and the positive impact we can all make on climate control. So in spite of, or perhaps because of, the crisis, I’m confident some long-lasting positive social change will result.

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Adrian Doran

Skills Over the last four or five months, many people (this one included) have taken the opportunity for some additional training and development. There is a multitude of online learning available and the crisis has shown that we don’t need to be in a classroom to study, and we don’t need to hop on a plane to network with international peers and industry thinkers. The concept of lifelong learning is something that all of us need to consider going forward. While the past few months have presented many challenges, it has also opened our minds to many new ways of working. The smart businesses will be those that don’t just hope for a return back to their old ‘normal’, they are the firms that have learned from the crisis and adapt quickest to our new reality. ■

CHARITY

British Heart Foundation Northern Ireland re-opens after months of lockdown Leading charity says crisis could cut its income in half this year and urges public and UK Government to support charities in months ahead

he British Heart Foundation Northern Ireland (BHF NI) has reopened its eight shops as it seeks to recover from the devastating impact of the Covid-19 crisis on its income. Michael Stewart, president of Belfast Chamber, showed his support for the retail operation of the BHF NI by visiting the leading charity’s Belfast shop. The Belfast president was one of the first people through the doors of the Fountain Street shop after all eight of the charity’s shops reopened at the end of July after months of lockdown.

BHF NI Belfast shop manager Jasmine Lawther, BHF NI head Fearghal McKinney and Belfast Chamber president Michael Stewart

“It is great to see the BHF NI reopening its Belfast shop,” Michael Stewart said. “It is yet another small step in the right direction as our city begins to reopen after being virtually shut down for more than three months as a result of the restrictions imposed to stop the spread of Covid-19.

in demand for the charity’s services, with calls to its Heart Helpline increasing by 400% at the peak of the pandemic as it became clear that people with heart and circulatory diseases were at increased risk from Covid-19.

“The BHF NI does a tremendous job in supporting research and their shops are a hugely important element of the organisation’s fundraising, so as well as breathing life back into Belfast city centre, by opening, BHF NI will be able to continue to do great work in tackling all heart and circulatory diseases.”

The BHF now anticipates it may have to cut research spending by half this year from £100m to £50m. Alongside other leading medical research charities, it’s calling on the UK Government to match charity-funded research for the next three to five years to ensure the pace of progress can be maintained.

The BHF is the UK’s biggest independent funder of cardiovascular research and the crisis has cost it around £10m a month. This drastic drop in income has coincided with a significant increase

“Our shops fund a huge proportion of cardiovascular research, so the reopening of doors is welcomed news for thousands of scientists and the 225,000 local people living

with heart and circulatory diseases in Northern Ireland, as well as our shoppers,” BHF NI head, Fearghal McKinney, said. “But the coronavirus crisis will unfortunately have a long-lasting and devastating impact on charities like ours, with the BHF’s funding for new research falling by a shocking £50m this year alone. That’s why, not only do we need urgent help from our loyal supporters, we’re also urging the UK Government to ensure funding for vital research charities. “For us, it will mean we can protect the progress we have made so far and continue to transform the lives of those with heart and circulatory diseases. It’s ultimately patients who will suffer if this doesn’t happen.” ■

Belfast Harbour

Belfast Harbour in strong position to help NI’s economy to bounce back As every business starts to implement plans to recover from the impact of Covid-19 on the global and local economy, Belfast Harbour is in a good position to play a key role in driving the economy forward, writes Joe O’Neill, chief executive of Belfast Harbour

year ago we launched the latest stage of Belfast Harbour’s strategy ‘A Port for Everyone’ which details our vision for the next 15 years and our plans to become both the best regional port in the world and to develop our position as a key economic hub for the region.

Joe O’Neill

We could not have known when the document was produced that less than a year later the economy would be experiencing its toughest time since the 2008 financial crisis, as a result of a global pandemic the likes of which the world had not experienced for a hundred years.

As Belfast Harbour reported its 2019 annual results in July, we noted that we as an organisation haven’t been immune to the shock of a four-month lockdown which has seen many businesses closed and travel all but halted to slow the spread of the virus. We are acutely aware of the impact that the Covid-19 crisis is having on our Port customers and on all aspects of life and the economy. However, I am also incredibly proud of how the Belfast Harbour community has responded to the crisis. For over 400 years, Belfast Harbour has been the engine room of the local economy, keeping daily life in Northern Ireland moving and our critical role in keeping essential goods and supply chains flowing smoothly during the coronavirus crisis provides clear evidence that is absolutely still the case. The Port has continued to operate safely and effectively throughout the crisis and remained open for business every day. That’s important

ANALYSIS

Belfast Harbour’s new ship to shore crane

During 2019, £44m was invested in a range of port and estate projects including investments to automate container handling and upgrade the Belfast-Liverpool ferry terminal, the latter in readiness for the introduction of larger new Stena Line vessels. Construction also started on City Quays 3, which will be Northern Ireland’s largest ever grade A office building and the last remaining office space in City Quays 2 building was occupied. In the past 10 years Belfast Harbour has invested over £290m in port infrastructure and estate regeneration and we have committed to £115.7m in further investment in strategically significant projects to help deliver the vision of becoming the best regional port and creating an iconic waterfront for Belfast which is an attractive and safe place to live, work, visit and invest. It is clear that in this time of uncertainty, that our investment will be a critical enabler of NI’s Covid-19 recovery.

because more than two thirds of what comes in and out of Northern Ireland by sea comes through Belfast Harbour – from the food in your weekly shop, to the tourists visiting our shores, to the wide variety of products sold by our businesses and shipped around the world. Belfast Harbour Estate is also an incredibly diverse hub of activity, with 1,500 people living here and 27,000 people working in more than 760 businesses – from shipping companies to further education colleges, tourist attractions and hotels to film production companies, technology firms, heavy manufacturers and engineering contractors, to name a few. The plans in our 2035 vision were developed in anticipation that the rate of societal and economic change will continue apace – driven by the decarbonisation agenda, the changing shape of the economy, the rapid evolution of technology and continued growth in tourism and leisure activities. We have added the impact of Covid-19 pandemic as a further driver of change, but while the pandemic may influence some of our investment phasing we believe that the long term goals of our strategy largely remain valid. From a financial perspective, Belfast Harbour had a sound performance in 2019 and finished the year

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with a strong balance sheet, providing a strong platform from which to move forward. Profit, turnover and cash flow were in line with expectations, with turnover at £65.9m and operating profit at £30.6m. Trade through the Port remained strong, with more than 24 million tonnes of cargo handled for only the second time in our history. Ferry passenger numbers exceeded 1.5 million for the third year in a row, there were a record number of freight vehicles – 542,000 – and cruise ship activity continued to grow with 280,000 visitors during the year. Our Trust Port model means that Belfast Harbour is entirely self-funded, with all profits reinvested into developing the Port for the benefit of customers, the community and the wider economy. Such a port model, with its associated investment capacity and capability, has never been more critical, as we play our part in helping to drive the region’s economic recovery post pandemic. Our existing investment pipeline will generate and support more than 5,000 jobs and create the infrastructure for new industries to thrive in the city.

The diversity of Belfast Harbour’s portfolio is one of our core strengths, especially in times of crisis. Although we anticipate that it could take some time for some sectors like cruise and tourism to return to pre-pandemic levels, we have been encouraged in recent months that Port trading levels are showing signs of recovery. Our major construction contract at City Quays 3 is continuing and construction is underway at Olympic House, our codevelopment project with Titanic Quarter Limited. Filming at Belfast Harbour Studios is set to recommence during the summer, and we will continue to invest in opportunities to improve our infrastructure and operations. All of this enables us to play a key role, alongside our customers and key partners, in getting the economy back on track. We continue to collaborate closely with our customers, such as Stena Line, and make the most of our valuable partnerships, including those with Belfast City Council, Titanic Quarter Limited, our two Universities, Catalyst, Northern Ireland Screen, Odyssey Trust, Tourism NI, Visit Belfast and the Department for Infrastructure. As society and the economy recover from the disruption and uncertainty caused by the Covid-19 pandemic, this partnership approach will be more important than ever to creating a vibrant economy and thriving communities. ■

ELECTRIC VEHICLES

Electric vehicles explained with Fleet Financial Emotive Electric and hybrid vehicles are rapidly changing the face of company vehicles, as more and more companies recognise the cost savings and environmental benefits of making the switch

elfast based Fleet Financial has seen a huge shift in sales and has responded to demand with its new Emotive offering. Damian Campbell, head of corporate sales at Fleet Financial, said: “Since the Government announced its intention to overhaul the benefit-in-kind system from April 2020, our shift in sales has been quite dramatic; towards the end of 2019, our order book was 25-30% electric or hybrid and now it’s almost half. “Emotive helps companies to navigate towards the adoption of electric vehicles and hybrids. As with anything new, customers have lots of questions before making the commitment. Drivers need to explore the practicalities of owning and running an electric or hybrid vehicle, as well as understanding the financial and environmental benefits.”

maintenance savings, and a further incentive on the cost of installing a charging point, the benefits multiplied across an entire company fleet make the whole picture very attractive.

SUVs, executive models, and medium-sized vans.

“For many, the decision to switch to electric and hybrid vehicles is driven by both the economic and environmental considerations. Their dramatically lower, and in some cases, zero greenhouse gas emissions contribute to a massive improvement in air quality in towns and cities.

“This is not a flash-in-the-pan trend. Governments have hefty targets to meet on green energy and they have put some mighty economic incentives in place to ensure they are met.

Financial and environmental incentives Increasing choice “Since April 2020, employees switching to electric or hybrid company cars are substantially better off with benefit-in-kind’ now starting at 0% rate for battery electric vehicles. “By considering a vehicle that is appropriate for their needs, companies and employees can make considerable savings on benefits in kind and National Insurance contributions. Combined with lower road tax, potential

“Of course, when choosing your next company car, badge and performance are still key considerations. The number of electric and hybrid vehicles is increasing every year, with most of the major motor manufacturers investing heavily in developing technology. “The range is growing rapidly, from just nine core vehicles in 2011, to more than 130 plugin cars and vans, including superminis, estates,

Launching Emotive

“As well as explaining these financial incentives, Emotive helps drivers to navigate some of the key considerations of making the switch to electric or hybrid: mileage, charging, vehicle choice and costs. “This is the biggest innovation in the motor industry in our lifetime and we’re delighted to be a part of driving this exciting change.” ■

For more information on Fleet Financial Emotive, visit www.fleetfinancial.co.uk/emotive

ECONOMY

Pace of decline slows for NI economy By John Mulgrew

he pace of Northern Ireland’s contraction has eased back while the economy here still faces a long road to recovery. The loosening of lockdown in June saw an overall huge fall in economic output slow down, according to the latest Ulster Bank purchasing managers’ index (PMI). Manufacturing was the best performer in June, seeing an expansion in output and orders for the first time in several months. Overall, the business activity index sat at 42.6 – where 50 means no change. While that’s still in contraction, the figure is significantly higher than in the previous months during the start of the Covid-19 crisis, and lockdown. But retail and hospitality “have been the most adversely affected” by social distancing and lockdown, and therefore have seen a sharp downturn, along with companies cutting staff at a “rapid rate”. Northern Ireland suffered the second highest level of contraction across the regions, with Scotland only facing a stronger retraction. But the business index rate here rose sharply from the reading of 18.9 in May and “thereby signalling a much softer reduction in output”.

quarterly data is bleak, this conceals tentative signs of a recovery on a month-to-month basis.

report rates of contraction in output and orders not seen before Covid-19.”

“April, the first full month of lockdown, marked the all-time-low with rates of decline in output easing in May. A loosening in the lockdown restrictions in June has seen this trend continue. Indeed, last month was the first time in eight months that any sector returned to growth.

Around one in four services sector firms saw a pick-up in business activity in June. “This should improve significantly in July with the reopening of bars and restaurants,” Mr Ramsey said.

42.6

The PMI for June in NI

“Manufacturing was the best performer in June, reporting expansion in output and orders for the first time in eight and fifteen months respectively. 46% of local manufacturers reported an uptick in output in June. “While manufacturing remains a bright spot for output and orders growth, it remains a black spot for employment though. Staffing levels continued to fall at a rapid pace in June with firms cutting staff outnumbering those increasing their headcount by four to one. “It is a similar picture within retail, with sales activity stabilising but firms still cutting staff at a rapid rate. Retail and the hospitality sector (part of services) have been the most adversely affected by the social distancing/lockdown restrictions. Reopening of businesses has been accompanied by a surge in costs linked to personal protective equipment (PPE). Retailers saw their input costs rise at the fastest rate in 33 months.

46%

Manufacturers which saw rise in output

“June marked the end of a quarter Northern Ireland’s private sector has never seen the like of before,” Ulster Bank chief economist in Northern Ireland, Richard Ramsey, said.

“Unsurprisingly the latest Ulster Bank Northern Ireland PMI therefore confirms record rates of decline in output, orders, exports and employment during this period. But while the

“The continued lockdown of the hospitality industry in June weighed on the wider services sector. In June, services firms continued to

Richard Ramsey

ANALYSIS

Non-executive directors: high performance and courageous leadership post-pandemic? By Laura Jackson, BDO partner

ndoubtedly, the long-established skills and attributes of the nonexecutive director (NED) role are more critical than ever as boards discharge their responsibilities to examine the impacts of Covid-19 on their organisations. The sound bites within virtual board rooms are descriptors such as unprecedented, uncommon, unknown and abnormal. Each organisation will have existing risk management processes. However, due to Covid-19, it’s anticipated that controls in some areas will have weakened and the likelihood of new risks emerging will have increased. As organisations rebuild and recover, the time has come for boards to augment their NED strategy in respect of good governance, corporate reputation and digital innovation. Evolving governance The traditional core responsibility of NEDs to guide the board in relation to its corporate governance responsibilities becomes more demanding as the governance regime evolves. Good governance has a wider remit than ever before to include navigation through unknown business critical issues such as Covid-19, to social and environmental impact, to long-term strategy. The National Audit Office recently published a ‘Guide for Audit and Risk Committees on Financial Reporting and Management during Covid-19’ which corroborates the view that the controls may have been modified or overridden to deal with remote working, reduction of senior management oversight and the new stresses placed on IT systems. NEDs will need to apply fresh risk assessments when evaluating these changes in terms of whether those changes are sustainable and whether, most critically, they reduce the risk of fraud and error.

AUGUST 2020

Corporate reputation Corporate reputation can be overlooked and sometimes only addressed by a reactive strategy when things don’t go as planned. Those organisations that made corporate reputation a distinct priority, building and protecting corporate reputation before the impacts of the pandemic, were arguably the organisations that had the agility to respond first. As boards are required to consider the effects of its decisions on all relevant stakeholders as well as brand strength, organisations may seek to inculcate every NED position with awareness and responsibility for corporate reputation management. Digital Innovation The juxtaposition of remote working, changing consumer online preferences, cyber security and new digital innovations are resultant in new opportunities and new risks that are being felt in every sector. As boards grapple with the growing technology agenda such as artificial intelligence, augmented reality and the innovation disruption, there will be the reliance on a more diverse skillset and perspective from NEDs. The pandemic has meant, that for the first time, the influence of emergent technologies can be evaluated. Previously, the potential was problematic to quantify as the new technologies worked alongside the old. The opportunity to run with new technologies and explore its potential at this time will mean there will be new information available to NEDs to evaluate the impact of this digital disruption and any material impact this may have had on employees. For the times that we are in, there has never been a greater need for NEDs to perform effectively and add new value when it is needed most. The long-term economic consequence of the recent pandemic provides an opportunity for NEDs to play their part in the recovery.

Laura Jackson

This will be achieved by consolidating their input in the areas of governance, putting corporate reputation management at the heart of their thinking and engaging with digital innovation. At BDO NI, we invest in people and systems to ensure that quality and public trust is an integral part of everything we do. If you are an organisation thinking about appointing and training NEDs, we would love to engage with you. ■

Contact Laura Jackson at Laura.Jackson@bdoni.com

TOURISM

‘Giant’ steps towards recovery for tourism in Mid and East Antrim The Gobbins

iewers of the latest series of ITV’s popular ‘Ulster Giants’ programme in July and August will have witnessed the breathtaking scenery of a range of tourism destinations across Mid and East Antrim – all showcased in a portfolio of television ads specially commissioned by Mid and East Antrim Borough Council. Airing throughout each episode, the ads formed part of the council’s headline sponsorship of the series – just one of many new council-led initiatives aimed at driving the recovery of the tourism sector across Mid and East Antrim. “The local tourism industry is absolutely vital to the borough’s economic, social and cultural health – creating employment and wealth, boosting exchequer returns and enriching local communities across,” Councillor Peter Johnston, Mayor of Mid and East Antrim, said. “As a council, we want to proudly showcase our compelling tourism offering of destinations, attractions and activities along the Causeway Coastal Route and across the borough. “Our decision to sponsor this hugely popular series does exactly this and forms part of our wider tourism strategy and post-Covid recovery plan, led by our Hospitality and Tourism Recovery Task Group.”

Driven by the council and headed up by its chief executive Anne Donaghy, the Mid and East Antrim Hospitality and Tourism Recovery Task Group – which includes Tourism Northern Ireland, Tourism Ireland, Hospitality Ulster, the Northern Ireland Hotels Federation and a number of local businesses – is working collaboratively to deliver a recovery plan to restore and sustain growth in the industry locally. The Task Group has established a range of practical support interventions focussed on delivering solutions to the immediate needs of local businesses across the Borough. This work has been underpinned by a bespoke, phased marketing and communications plan under the tag #RediscoverMEA, targeting specific segments such as ‘staycations’, day-trippers and visitors from GB and the Republic of Ireland. The initiative quickly attracted praise from political and business leaders far and wide, with East Antrim MP Sammy Wilson commending council and its partners in the Task Group “for their initiative and proactivity in taking steps to develop a clear strategy with very realistic, tangible and measurable outcomes”. Speaking about the council’s proven track record for delivering economic recovery, meanwhile, North Antrim DUP MP Ian Paisley said: “I am confident that the efforts of Mid

and East Antrim Borough Council and its Task Group partners will bring about a much-needed boost for hospitality and tourism businesses in Mid and East Antrim.” Alongside the re-opening of hotels, restaurants, cafés and bars across the borough, this boost has come in the way of several ‘good news’ announcements by the council this summer. In June, formal approval was granted for the sale of three council-owned plots of land in Glenarm as part of wider plans to regenerate and revitalise the village. “The village of Glenarm has always been a celebrated jewel in the crown of Mid and East Antrim’s outstanding tourism offering but, like any tourist destination, it requires ongoing investment and regeneration,” Mayor Peter Johnston, said. In a second boost for the Causeway Coastal Route, the Homefest ‘Camp Dalfest at Home’ in July saw stars such as Alexandra Burke, Nadine Coyle, Nathan Carter and Pat Sharp all take to the stage to broadcast live from Glenarm Castle. Delivered in partnership with council as part of its #RediscoverMEA campaign, the virtual festival presented a digital response to ensure the spirit of the internationally-renowned Dalriada Festival was kept alive until it returns in 2021.

TOURISM Virtual festival-goers were invited to add to the ‘festival at home’ experience by ordering a Homefest festival pack which include food, drink and merchandise, delivered to their homes in advance.

and handrails, and extensive scaling, fixing and netting of rocks.

“Dalfest is rightly renowned as Northern Ireland’s top festival, drawing in tens of thousands of fans and really placing Mid and East Antrim on the map as the ideal place to visit and stay,” Councillor Johnston says.

The Mayor said: “Whitehead is a beautiful village, with lots of eateries, shops, art events and stunning scenery to explore – all of which will only be enriched further by the much-anticipated completion of these works. Blackhead Path is not only a treasured part of life for locals in the village, but one of the area’s greatest tourism assets.

“It was important, therefore, that we found a way of ensuring that it happened in some guise this year, despite restrictions brought about by Covid-19. Homefest ‘Camp Dalfest at home’ is a fun example of how we as a council have had to be prepared to be agile and innovative in supporting the delivery of creative alternatives.”

“The re-opening of the path in July was a timely boost for the local community and businesses as we emerged from lockdown, meaning that they can once again benefit from the many thousands of visitors who flock to what is one of Northern Ireland’s most popular walking destinations every year.”

Further south in the borough, meanwhile, council re-opened its much-loved Blackhead Path in Whitehead to the public, following a multi-million-pound restoration project carried out over the past year. Repair works covered four main areas along the coastal path and included rock armour protection, new steps

But all of this is only just the start for Mid and East Antrim according to the Mayor, who gave his commitment that the council will do all in its power to drive the recovery of tourism in the area. “The Covid-19 lockdown period served to remind us just how greatly our local tourism and hospitality industry is valued and how much every attraction, eating and drinking establishment and accommodation provider in Mid and East Antrim – no matter how large or small – contributes to the wider local economy, lifestyle and culture in Northern Ireland. “As such, Mid and East Antrim Borough Council remains committed to doing everything we possibly can to support their journey to recovery in the months and years to come,” he said. ■

Rediscover more at: shapedbyseaandstone.com

Carrickfergus Castle

AUGUST 2020

FINTECH

Fintech can fuel our economic recovery By Andrew Jenkins, Fintech Envoy for Northern Ireland

lot has changed in the last few months. Some have even said that ‘everything’ has changed as a result of the Coronavirus pandemic. Yet, the fintech sector in Northern Ireland remains dynamic, resilient, adaptable, and innovative. Despite the difficulties faced, these traits have insulated many in the sector from the worst of the economic challenges. Confirmation by fDi Intelligence, the specialist division of the Financial Times of Belfast’s place in the Top 10 ‘Tech Cities of the Future’ ahead of financial hubs including Zurich and Frankfurt is an encouraging development. Of course, this is not the first time our sector has been recognised for its global potential. Belfast has previously been credited as the world’s number one destination for fintech development investment projects and the top city in Europe for new FDI software development projects. Despite being a relatively small place, in terms of fintech we punch well above our weight. We have a rich start up and scale up community across Northern Ireland and the combination of factors including talent availability, infrastructure, cost-effectiveness, and a supportive business environment have contributed to our attractiveness to foreign investors. On top of this, the appointment of Jayne Brady as Belfast’s digital innovation commissioner who will work alongside the excellent leadership team at Belfast City Council who are consistently advancing the sector, is crucial and makes for an exciting outlook. In recent months, the fintech sector has

continued to benefit from job creation with significant global investment, assisted by Invest NI, among others. Attracting foreign direct investment at this time speaks volumes and global players such as, Cygilant, Riskonnect and Vox Financial Partners who have joined the likes of Allstate, Citi and Liberty IT in placing their confidence in Northern Ireland is invigorating. These are some of the building blocks to establishing a world-leading fintech cluster, acting as a magnet in attracting fresh companies. With upwards of 40,000 people already employed in the financial and professional services sector in Northern Ireland, there is an opportunity to not only sustain this number but also increase it with more highly paid jobs. This would give a much-needed boost to the economy. It is also important to mention our world class universities and further education colleges which are essential to our continued success and ambition. Indeed, the launch of Ulster University’s BSc Hons financial technology degree program, developed in collaboration with NI fintech companies, highlights the value of building strong relationships across

the sector. There is no doubt we have something special in our grasp. The fact that the sector is thriving in the North West region too gives good reason to be optimistic about economic development right across the country. With Brexit looming large again and despite the challenges which this presents, there is reason to be confident. Our peers in Dublin have also made the Top 10 ‘Tech Cities of the Future’ which is remarkable considering the proximity of the two cities. By building on the already solid relationships and co-operating on a cross-border basis there is significant scope to build on this success. The potential certainly exists, and it is encouraging to hear our elected representatives, including the Economy Minister Diane Dodds speak confidently about the sector and its future growth potential. With coherent and collaborative working between government, industry and academia, Belfast and Northern Ireland’s place as a prominent fintech location of ‘today’ will become the norm. ■

IN FOCUS

‘It’s not going to be possible to keep everybody open’ While boasting a long background in ministerial posts, Conor Murphy and his Executive colleagues were faced with a challenge like no other in March. He speaks to John Mulgrew about extending a new furlough system to protect jobs, the firms which won’t make it through, re-examining the civil service’s own huge estate postCovid and continuing to work together amid the latest political furore

IN FOCUS

alking up the central staircase of Clare House – avoiding the lift due to restrictions on numbers and any welcome chance to burn off lockdown heft – the few dozen staff scattered around this huge public sector building is a clear sign of at least part of the re-examining needed post-crisis. “The more you have in the pot then the more interventions you can make,” Finance Minister Conor Murphy tells me as we sit, socially distanced, in the expansive board room at the Department of Finance headquarters in Belfast. He’s been responsible for a £1.5bn budget to tackle Covid-19, with around £700m of that directed towards the economic impact and keeping both firms afloat, and their staff employed. “(The support) has been a bit hit and miss. So some people have gotten support and some haven’t. It’s virtually impossible to cover everyone and every circumstances, but as many people as possible.” The Executive initially used the Land and Property Services database as a means of identifying the level of support for businesses here. Around £270m was allocated to a £10,000 grant for firms, and a further £65m for £25,000 support. Conor says the next step was then identifying firms not picked up using the LPS or business rates basis, including people operating from their own homes and those “falling between the cracks”, with around £40m set aside. But while the Executive has now received a further £162m from the Treasury, Conor’s keen to see additional support along with an extension of the Government’s Job Retention Scheme. “We have had a conversation the Executive and are working with the Department for the Economy to see can we target those businesses and sectors that missed out,” he said. “By their very nature they are more difficult to define and quantify. “With that money we want to quickly see what sectors we have missed and see if we can

AUGUST 2020

get some support to them. Some of the bigger leisure providers, private coach operators, taxi drivers, driving instructors.” And he says the attention is now being focused on recovery in order to re-establish Northern Ireland’s economy. “From our perspective, the money (from the Treasury) while welcomed… the package isn’t anywhere near what we would be hoping for. “We would like to see a much more substantial intervention in terms of cash support. The Executive has to sit down and agree where we see economic recovery… we haven’t had the conversation to say ‘we have limited resources, the economy is going in to very deep trouble, latest statistics show the downturn is starting to ease, but we aren’t in a good picture – so where are we going to target the limited resources and in what areas and what output are we looking for?’. The more you have in the pot then the more interventions you can make.” He says with around 100,000 people here forecast to avail of some form of benefits later this year – back to levels in the 1980s – challenges now exist to deal with the huge surges in job losses and those now finding themselves out of work. That next surge is likely to happen when the Government’s furlough system – covering 80% of wages – begins to taper off and come to a close. “We are arguing that the furlough system is tapering too soon and we aren’t very clear about how it will taper down in terms of the employer contribution,” he says. “We anticipate when employers are asking to contribute more is likely to be the time when some of them are going to say ‘I cant afford to do this’. How quickly that happens, the taper happens… all of those are unknowns. “Unless you are in retail and think you are coming in to a better season, coming towards Christmas, but in hospitality, you are coming in to a quieter time of the year, with the exception of December. “… there are already some businesses in certain sectors which have gone out of business.

“It probably is not going to be possible to keep everybody open, so how do you direct resources, which are limited, to try and help those which can function, function as well as they can to generate economic activity, or just pay people to sit dormant. “That is going to be a big call. That would be a big challenge. If we had a much more substantial package, that would be possible, but obviously we don’t. We haven’t gotten down to discussing this but my sense is that the Executive would want to try and keep as much economic activity going as possible to generate. “That’s not to say ‘tough, you can’t reopen, goodbye’. The regulations are there and they have reduced them down to one metre… I know there are businesses in those set of circumstances that are going to struggle.” He also says at home, there has to be a “rethink” of how the civil service operates – from its huge estate to procurement. “There has to be a rethink of all of that,” he says. “We are into the new world in one sense and the Executive needs that discussion about what is needed going forward. “In terms of how we work. We have been looking at idea of agile working. Looking at idea of hubs scattered around the rest of the north, so people don’t have to travel in and out. “That will be accelerated. Things will have changed and those things can save money – money which may have been spent on buildings.” And despite an ongoing political furore at the time of print – centred around his and Deputy First Minister Michelle O’Neill’s attending of the funeral of Sinn Fein’s Bobby Storey and being accused of breaching coronavirus restrictions – Conor says he’s still confident the Executive can continue to work in the joined-up way it has been throughout this crisis. “Of course, tensions arise at various times,” he says. “The last Executive meeting which we held was business as usual. It was down to getting business done.” ■

TOP 100

Sales and profits rise for Top 100 in last year The Ulster Business Top 100 Companies 2020 showcases the performance of Northern Ireland’s largest firms, in conjunction with data from Dun & Bradstreet. Jonathan Cushley breaks down all the numbers in perhaps the last ‘normal’ year for many firms post-coronavirus

he latest edition of the Ulster Business Top 100 Northern Ireland Companies comes at a time of unprecedented challenges and hardship for the provinces businesses in general. According to the Northern Ireland report published by Danske Bank the local economy is set to shrink by a staggering 11% with unemployment doubling. The province according to the report may not return to its pre-coronavirus level until late 2022 or into 2023. The 2020 edition of the Top 100 listing incorporates analysis of the financial performance of companies with fiscal year ending in 2018/2019 and 2020, so while this provides a sound basis in understanding the strength of the provinces top businesses we will potentially start to see a decline in performance over the coming years and especially in the 2022 and 2023 compilations. SUMMARY The Top 100 companies continue to perform well across each measure. Sales have grown to £27.5bn from £24.9bn (year-on-year comparison) a growth of 10.4%.

Jonathan Cushley

The strong turnover growth mirrors the 2019 performance when sales increased by 9.4%, however, success isn’t solely indicated by a strong sales performance. By looking at the top line (sales/turnover/revenue), the bottom line (the generation of pre-tax profits) and by looking at the return shareholders make on their investments, a stronger picture emerges and this will help understand the current effect of the current pandemic on our top businesses over the coming years.

Profitability of the top companies also increased from £935.6m to £1,029.1m an increase of 10%. Profit margin for the companies is 3.7%. Tangible net worth of the Top 100 now sits at £7.2bn. SALES/REVENUE Since its inception the Ulster Business Top 100 has used sales/revenue/turnover as its primary driver for inclusion. Sales within the Top 100 have reached their highest recorded levels of

Top 100 sales (£bn) 30 25 20 15 10 5 0

2014

2015

2016

2017

2018

2019

TOP 100 TOP 10 MOST PROFITABLE COMPANIES Rank

Company

Profits (£m)

Profit margin (%)

Top 100 Rank

EP Kilroot Ltd

96.9

Northern Ireland Water Ltd

80.7

19.4

Schrader Electronics Ltd

74.9

22.8

Moy Park Ltd

4.4

NI Electricity Networks Ltd

24.7

MRP Land Ltd

59.1

47.9

Terex GB Ltd

49.8

13.5

Almac Group Ltd

47.6

7.5

W&R Barnett Ltd

46.3

3.4

Encirc Ltd

40.6

12.8

£27.5bn up from a prior year like for like figure of £24.9bn. For the first time four of the businesses posted sales in excess of £1bn, Moy Park Ltd retained its long standing top spot, followed by W&R Barnett Ltd, Glen Electric Ltd and Dunbia Ltd. It should be noted that Glen Electric Ltd, the Newry-based subsidiary of heating, renewable energy and domestic appliance manufacturer Glen Dimplex which has re-entered the Top 100, has filed accounts for an 18 month period. Another indicator of the strong sales performance across the listing is that only 19 of the companies have posted reduced sales year on year, with some exceptional growth performances namely MRP Land Ltd (63) – 435%.

David Henry

companies return to a position of increasing profitability, while still not reaching the heights seen in 2018 when profits peaked at £1.05bn.

PROFITABILITY This year’s listing has seen the Top 100

With a turnover of £27.5bn producing profits of £1,029m the companies produced a pre tax margin of 3.7%

Top 100 profit (£m) 1400

Fourteen of the Top 100 companies posted losses during their last financial year, with Short Brothers after currency adjustment posting losses of £32.5m, Queen’s University losses of £29m and Thompson Aero Seating Ltd losses of £27.7m.

1200 1000 800 600 400 200 0

Pre-tax profits now sit at £1.02bn, up from a year-on-year comparison of £935.5m – an increase of 10%.

2014

AUGUST 2020

2015

2016

2017

2018

2019

NET WORTH (SHAREHOLDER VALUE) In conjunction with sales and profitability overall success of a business may be gauged from the value of the company to its shareholders. In its simplest form the tangible net worth of a business is the shareholders

TOP 100

Brian Murphy, Balcas

Top 100 shareholder value (£m)

funds (issued capital) plus retained profits (losses) minus intangibles assets. An intangible asset is a non-physical asset that has a multi period useful life – commonly patents, goodwill etc.

8000 7000 6000

The value of the Ulster Business Top 100 to its shareholders using the 2018/19 financial yearend figures is sitting at £7.18bn. As the Top 100 is relatively fluid with companies entering and leaving the list net worth comparison can be distorted.

5000 4000 3000 2000

Seven of the Top 100 companies have posted a negative tangible net worth, with an aggregate figure of £242m.

1000 0

2014

2015

2016

2017

2018

2019 Tangible net worth of £7.18bn represents a return against sales of 26.1% and a shareholders return (profitability/worth) of 14.3%.

Top 100 employees (000s) 120

Northern Ireland Water Ltd continues to be the most valuable business with tangible net worth of £1,049m, followed by Queen’s University, NI Electricity Networks Ltd, Glen Electric and Almac Group Ltd.

100 80 60 40 20 0 34

2017

2018

2019

EMPLOYEES A total of 104,210 people are employed by Northern Ireland’s Top 100 Companies, an increase on the 85,744 employed by the companies in the 2019 listing.

TOP 100 TOP 100 LOCATION COMPARISON: 2004 V 2019

100 90 80

Percentage %

60 50 40 30 20

7 5

10 0

BELFAST

CO. ANTRIM

CO. ARMAGH

CO. DOWN

CO. FERMANAGH

CO. L’DERRY

CO. TYRONE

■ 2004 ■ 2019

Moy Park Ltd (10,126), Almac Group (5,150), Glen Electric (4,780) Dunbia (4,433) and Northern Ireland Transport Holding Company (4,202) make up the top five employers within the listing.

year-by-year. The number of businesses headquartered in Belfast has dropped by 10, in Co Antrim by seven while those based in Co Down have increased by five and those in Co Tyrone up 10.

4. Kainos Group plc – results relating to turnover and profit has been provided from preliminary results provided 26/05/20; tangible net worth figures quoted continue to relate to 31/03/19.

Each employee within the Top 100 accounted for £264,197 of turnover – sales/employee and accounted for £9,874 profit – profit/employee.

NOTES A date of June 26, 2020 has been used as the cut off for the filing of accounts enabling inclusion in this year’s Ulster Business Top 100.

5. Herbert Corporate Holdings Ltd is a new company registered 25/07/18 and as such was not eligible for inclusion in previous Top 100 listings.

The listing has been compiled using a combination of data sourced from Dun & Bradstreet’s information database and company filings retained by the UK Companies House.

6. Isaac Agnew Ltd & Agnew Commercials Ltd are both subsidiaries of Isaac Agnew (Holdings) Ltd. Consolidated accounts for Isaac Agnew (Holdings) Ltd are not filed at Companies House.

The impact of the coronavirus has already been alluded to. Northern Ireland employment will become the first underlying indicator within the compilation of the Top 100 listing which will be impacted. Already a number of top companies have announced pandemic-related redundancies and with the Northern Ireland employment rate at a record high of 72.3% in November 2019, the labour market is likely to be tumultuous for a number of years. GEOGRAPHY The number of businesses within the listing remain fairly static from a headquarter location – historically there was always a propensity of businesses within the east of the province – looking at the geography of the 2019 listing – 66 businesses are located in Belfast, Co Antrim and Co Down – 34 businesses in Counties Armagh, Fermanagh, Londonderry and Tyrone. Interestingly, if we look at 15 years ago we see a decided shift not necessarily noticeable

AUGUST 2020

1. Glen Electric Ltd has filed accounts for an 18-month period. 2. Both Short Brothers plc and Schrader Electronics Ltd file financial figures in US dollars, Lakeland Dairies Ltd file financial figures in euros – to allow for comparison their financial results have been converted to their currency value (£) at their financial year end. 3. Linden Foods Ltd is no longer a subsidiary of Fane Valley Co-operative Society Ltd. It is now 50% owned by Forestview Trading and 50% owned by New Meat Division Holdings Unlimited – this reflects in both Linden Foods & Fane Valley results.

7. James E McCabe Ltd & Philip Russell Ltd are both subsidiaries of Golf Holdings Ltd. Consolidated accounts for Golf Holdings Ltd are not filed at Companies House. 8. EP Kilroot Ltd & EP Ballylumford Ltd are both subsidiaries of EP UK Investments Ltd. The latest filed accounts for EP UK Investments Ltd do not reflect their acquisition of Ballylumford & Kilroot power stations that took place on 12/06/19. 9. Lynn’s Country Foods Ltd has extended its current accounting period to 28/02/20 from 01/09/19. 10. Power NI Energy Ltd has restated revenue figures for its prior year. ■

Profiles by John Mulgrew Photography by Elaine Hill

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TOP 100

LARGEST EMPLOYERS Position

Company

Sector

Tesco

Retailing

9,871

Moy Park

Poultry processor

4,918

Asda

Retailing

4,111

Bombardier

Aerospace

4,069

Four Seasons

Nursing homes

3,440

John Henderson

Retailing

3,035

Teleperformance

Call centres

2,873

Noonan

Support services

2,839

BT (NI)

Telecoms

2,701

Marks and Spencer

Retailing

2,667

Sainsburyâ&#x20AC;&#x2122;s

Retailing

2,468

Almac

Pharmaceuticals

2,411

Boots

Retailing

2,207

Convergys

Call centres

2,184

Allstate NI

2,157

Citi

Financial services

2,146

Ulster Bank

Bank

2,036

Lloyds Banking Group

Financial services

1,937

Firstsource

Call centres

1,804

Norbrook

Pharmaceuticals

1,662

Wrights Group

Bus assembly

1,560

Golf Holdings

Drinks distributor

1,518

Danske Bank

Bank

1,515

G4S

Support services

1,450

Schrader

Engineering

1,431

Information from the latest Equality Commission Monitoring report for 2018

1-25 Number of employees

TOP 100

26-50 Position

Company

Sector

Caterpillar (NI)

Engineering

1,366

PwC

Financial services

1,364

Seagate Technology

IT equipment

1,336

NIE Networks

Electricity supply

1,288

Terex

Engineering

1,264

Santander

Financial services

1,245

Musgrave

Retailing

1,182

Robinson Services

Support services

1,160

Concentrix

Call centres

1,151

Graham Holdings

Construction

1,112

Primark

Retailing

1,094

Dunnes Stores

Retailing

1.057

Retailing

1,005

Charles Hurst

Vehicle sales

976

B&M

Retailing

975

TJ Morris

Distribution

969

Iceland Foods

Retailing

950

McDonaldâ&#x20AC;&#x2122;s

Fast food

938

Bank of Ireland UK

Bank

937

Randox

Pharmaceuticals

934

Dunbia

Meat processor

931

Karro Food

Meat processor

926

Mount Charles

Services

892

Northstone

Construction

874

Linden Foods

Food processor

811

AUGUST 2020

Number of employees

TOP 50 EMPLOYERS

Management skills will be in demand in new hybrid world of work By John Moore, managing director, Hays NI

e are all aware that the Covid-19 pandemic has changed the way many of us work and employers across all sectors of the economy have already adjusted or are busy preparing for the new normal. As part of these preparations I think it is useful for employers and employees to take stock of the skills that are most in demand in their organisation and in the market, in order to equip their teams for future stability and growth. Alongside the specialist and technical skills needed to undertake a lot of roles, it has perhaps become clearer than ever that professionals have to be able to demonstrate a strong set of soft skills to thrive in the current environment. Research carried out by Hays during the last few months over around 16,000 employers and professionals found that almost half said they only have some of the skills needed to meet their objectives and 15% said they were already experiencing skills shortages. Interestingly we found shortages are more prevalent in the public sector than private sector and when it comes to specialist areas, less than a third of those in marketing, engineering/manufacturing and technology said they have all the skills they require. When asked what they were most in need of employers primarily said they were lacking in managerial and leadership skills, operations skills and project or change management skills. It seems clear that many organisations have recognised their weakness in these areas because of the radical change in working practices and environments. In the next six months, it is likely that many organisations will be operating some sort of hybrid working system, with some employees still working at home, some in the office and others doing a mix of both. Organisations need to find new ways to support their employees in this hybrid model and as it will be new to many organisations, the role of manager will become very important. Lots of companies have proven they can survive a crisis. At a time when others have not made it, that is a great achievement. But in future the question will turn to how organisations can prosper in an improving yet still uncertain environment? If you’re hiring new people how do you onboard them properly and then provide coaching and learning and development? And, in a market where there will be a lot of active candidates, how do you make sure they aren’t just relieved to have a job and engage them properly? How can you make new people part of the fabric of the business? Employers should start by assessing the skills in their team and

identifying the gaps. If hybrid teams are going to be commonplace, communication and people management skills will need to be adaptable to this new way of working. Next, assess and develop the soft skills in your team. You will no doubt find you have team members who’ve stepped up during Covid-19 and shown leadership capabilities you didn’t know they had or demonstrated a real ability to adapt to change. Look for ways to develop the skills they need through training. Finally, ensure your hiring process identifies the right skills. People management, problem-solving and the ability to learn will all be essential. So, evaluate your hiring process to ensure they assess candidates for these skills. For professionals, the uncertain environment makes it important to be on the front foot as we move into a new world of work. You need to understand any gaps in your current skillset before considering training or development. Ask your manager for feedback on areas you should focus on, especially in light of the Covid-19 crisis, which might have changed the focus of your organisation. The Covid-19 pandemic has shown us just how important it is to be adaptable to change and open to learning new skills. Flexibility and adaptability will always be important skills so make a habit of proactively assessing your skillset on a regular basis. Whether you are an employer or employee, if 2020 has taught us anything it is that you need to be ready to take on new and unexpected challenges as they arise. ■

TITLE

TOP 100

A ‘challenging environment’ is now a gross understatement While the Ulster Business Top 100 Companies 2020 shows rises in turnover and profit for our biggest businesses, many firms are going to see the true impact of lockdown and the coronavirus crisis in the next few years to come. Angela McGowan, CBI NI director, looks at the impact and what’s yet to come for our business landscape

hen providing commentary on the Top 100 companies over the past few years, I have often referred to the challenging business environment in which Northern Ireland’s firms operate. That feels like a gross understatement this year, as halfway through 2020 companies are facing an unparalleled health and economic crisis, alongside efforts to deliver a workable Brexit trade agreement. So how has this affected the economy? News of a 2.2% drop in GDP in quarter one might have been in-line with expectations, but it was still the biggest quarterly contraction since 1979. Importantly however, the data only covers January to March, including just one week of lockdown. There’s clear indication the slowdown was already in progress, with consumers already avoiding public places and spending less. While we all hope for a surge in economic activity as lockdown lifts slowly and carefully, our optimism may have to be slightly tempered. Looking ahead, we know Covid-19 will also have a huge impact on quarter two economic data published in August, with the Bank of England estimating a 20% drop in GDP. As ever the impact will be mixed, with different sectors having very different experiences during the crisis. Food production and health sectors saw an initial surge in demand as households stockpiled necessities, while household spending on hospitality, leisure and other non-essentials plummeted. There was

TOP 100

also a noticeable shift from physical purchases to online transactions. Alongside changes in consumer habits, a general pick-up in consumer spending for May and June hasn’t changed the fact that overall spending is down. Research from the Bank of England showing increased deposits in banks and building societies in May, with efforts to repay consumer credit and loans also up. Businesses and consumers’ cautious approach is perhaps unexpected. Until the number of new active cases is well under control, people feel safe in public spaces and we increase capacity in public places like schools and hospitals, spending habits are unlikely to return to normal.

doors, only time will tell how deep the economic impact will be. The longer the crisis persists however, the more likely jobs and insolvencies are to rise across the country. Against this background, the survival of many firms, particularly those in hardest-hit sectors like hospitality, leisure and tourism, continues to hang in the balance.

Looking ahead, we know Covid-19 will also have a huge impact on quarter two economic data published in August, with the Bank of England estimating a 20% drop in GDP

With the IMF predicting that global growth will contract by 4.9% in 2020, and the UK economy alone expected to shrink by 10.2%, the scale of the challenge ahead is significant. That’s why the CBI has laid out an ambitious health-first recovery plan for the UK that would help secure a jobs-first, fair and sustainable economic future for all. The time for ‘build-back-better’ in all regions of the UK has arrived – with levelling-up growth, increasing connectivity and delivering sustainable infrastructure high on the agenda. This would help to unlock countless jobs and opportunities in the medium-to-long term, but the focus right now must be on actions to protect people’s livelihoods, such as extending the CBILS and kick-starting demand through targeted VAT reductions, temporarily reducing stamp duty at the lower end of the market and increasing the tax-free allowance for six months.

Given the unprecedented challenges that businesses across the globe are facing; governments in advanced economies have offered huge support to businesses. The UK Government’s support throughout lockdown has been nothing short of a lifeline for businesses and employees, and something the CBI engaged directly with government to shape. But as high streets slowly reawaken, and more and more businesses open their

For Northern Ireland recovery means investing in infrastructure and people. The muchneeded, and long-overdue, Investment Strategy from the Executive would give clear direction to private sector firms looking to deliver infrastructure development. We also need to accelerate our pipeline of shovel-ready projects, while keeping an eye on sustainability goals. Focusing on renewable energy, decarbonising transport and manufacturing,

AUGUST 2020

The time for ‘buildback-better’ in all regions of the UK has arrived – with levelling-up growth, increasing connectivity and delivering sustainable infrastructure high on the agenda together with implementing an energy efficiency drive, would not only help deliver on net-zero targets but create sustainable jobs. Investing in people is not only critical for post-pandemic recovery, also but for Northern Ireland’s long-term economic success. The onus on government and business is to help retrain and reskill people whose jobs no longer exist, taking regional needs into account. But it’s also time to address underachievement in our schools, lack of agility in our education system and reduce huge disparities in educational attainment. Make no mistake – the UK Government’s support of business during the crisis has saved countless firms and potentially millions of jobs. But the rising number of benefit claimants, alongside redundancy fears, shows just how hugely damaging this pandemic has been for our economy. Employers and employees across the country have demonstrated amazing agility and resilience to cope with such a challenging cocktail of pressures and uncertainty. That tenacity and resilience may therefore be needed more than ever as we move into the latter half of the year. ■

CORPORATE LAW

Mills Selig: adapting to the changing environment Mills Selig has managed to pick up where it left off before the beginning of the coronavirus crisis, and despite challenging times for everyone, is continuing to work alongside clients each day across a wide swathe of needs

hris Guy, head of corporate for the Belfast law firm, says the team has adapted to the circumstances. And while the economic future remains uncertain, there are “green shoots” emerging. “We were able to move quite quickly to working from home and were able to get on with what we needed to do,” he said. “And while it’s a big change, in many ways, it has become business as usual. We are here to support our clients and to get them through this. “The values and culture that we have in the firm are really clear and everyone has pulled together as a team. There’s been a real ‘can do’ attitude which has been great to see.”

lawyers who are there for their clients – they are personable and proactive, and that is going to continue. “Certain areas have been very busy over the last few months, such as our employment team as there has been so much happening around the Government’s Job Retention Scheme.. “There has also been a lot of advisory work for our clients. By way of example, we have a significant construction practice – and that sector basically shut down work on all sites. So we were working out, contractually, where our clients sat..” And on the M&A side, while things may have paused at the start of lockdown, the last number of weeks has seen activity pick up, with deals being completed, especially within industries which have been relatively unaffected. “There are sectors where things haven’t been that impacted by the crisis, and are continuing on regardless,” Chris says. “Even more recently, certain transactions in which private equity buyers were involved, have now been unpaused. There are green shoots and we can definitely see more activity in the market.”

Chris says the firm has come through its first quarter in this financial year robustly and, while the next quarter will continue to be tough amid the ongoing Covid-19 crisis, the firm is thinking long-term.

Looking at the economy generally, while Chris says there remains uncertainty for what lies around the corner for many businesses across Northern Ireland and beyond, there’s also been a great deal of resilience and adaptability among them.

“The reality is there are a lot of things we still don’t know. For example, how long measures will be in place, the economic disruption, the downturn and how people are going to react, generally.

One thing the crisis has shown us is the ability of a host of firms here to develop and reposition themselves – in many cases, producing much-needed items for the front line, from PPE to hand sanitiser.

“But the team at Mills Selig has exceptional

Chris says the Mills Selig team has continued

Chris Guy

to work from home, utilising technology such as video conferencing – something we now take for granted. “In some ways I think communication has improved,” he says. “We have a corporate team meeting each morning, focusing on our priorities and that is happening across the firm. At this point we are happy about how we are able to do things using the technology available to use but we are always seeking to improve how we do things.” Mills Selig has also been running regular, weekly webinars to help discuss a range of emerging areas and to keep clients updated – from companies furloughing staff to reviewing insolvency issues to looking at the construction sector. As for the road ahead, Mills Selig continues to expand its own business – appointing three new directors to the firm: Richard Craig, Fiona McFall and Glenn Watterson. “Lockdown has been busy with us supporting our clients. Now, we are looking to the next stage. We have also boosted our marketing team – it’s about being positive and being proactive, putting ourselves in the best possible place to assist our clients,” Chris says. ■

BANKING

Bank of Ireland UK supporting thousands through crisis

ank of Ireland UK has supported more than 6,700 Northern Ireland businesses amid the coronavirus crisis – including some of those assisting those on the front line with crucial protective gear. The bank is continuing to provide financial support to businesses of all sizes and across all sectors throughout Northern Ireland that have challenged revenue streams and are seeing their cashflow disrupted as a result of the Covid-19 outbreak. Bank of Ireland UK’s own support includes providing emergency working capital, foreign currency and treasury products to support sourcing products from new suppliers internationally and payment flexibility on loan facilities. As an accredited lender for the UK Government Bounce Back Loan Scheme (BBLS) for small business loans up to £50,000 and the Coronavirus Business Interruption Loan Scheme Schemes (CBILS), the bank has prioritised these funding requests. The bank has also assisted firms such as Hospital Services Limited (HSL) to expand to help source and bring around 13 million pieces of personal protective equipment (PPE) to aid the fight against the coronavirus pandemic. “With an established global network of suppliers, HSL was well-equipped to answer the call for additional PPE which has come from the health services across the UK and Ireland,” Dominic Walsh, chief executive of, Hospital Services Limited, says. “We are proud to have the unique skillset to help answer the call for PPE and are thankful to Foresight and Bank of Ireland UK for enabling us to quickly increase our buying power in order to get these shipments of PPE here as quickly as possible.” Gavin Kennedy, head of business banking (NI), Bank of Ireland UK, said: “As businesses face

Pictured at Toytown in Newtownards is owner Alan Simpson, Gavin Kennedy, head of business banking (NI), Bank of Ireland UK and Paul McClurg, head of Belfast business banking, Bank of Ireland UK

the unprecedented impact of the Covid-19 pandemic, Bank of Ireland UK is playing a critical role in supporting our local business customers and more broadly, the local economy through this crisis.

The business secured a £1.5m loan to support cashflow while its stores were closed so that suppliers could be paid promptly and to ensure the business was ready for future trading once lockdown is eased and the shops can re-open.

“We have been ensuring our business teams, including those closest to customers, our relationship managers and business advisers, have been able to provide essential support with the appropriate range of facilities and UK Government backed schemes to assist and guide businesses through this period of uncertainty.”

Its owner and managing director of Toytown, Alan Simpson says: “Toytown is a very successful and well run business and Bank of Ireland UK has been with us from the very start and has seen us grow from strength to strength.

Another business which has successfully secured a loan from Bank of Ireland UK through the CBILS is Newtownards-based independent Toy retailer SMF Ltd, which trades as Toytown.

“When our stores were closed overnight due to coronavirus, its impact on cashflow was immediate. We made a request to the bank for support and they were very quick to respond and ensure we had all we needed to help us navigate the challenges of Covid-19 so we can come out as a strong business the other side and we will.” ■

37 Devenish D

evenish is one of Northern Ireland’s biggest businesses, and it’s undergone significant growth, development and expansion here over the last few years.

Yorkshire, with a base in Denmark, Hi Peak Organic Feeds, the UK largest organic feed compounder based in Killamarsh, Sheffield and Yem-Vit, a premix manufacturer based in Izmir, Turkey.

It’s a leading animal feed and agri-technology firm – based at Belfast Harbour – which designs and manufactures high quality nutritional products that ensure the most effective and efficient use of nutrients in food production.

Devenish has sites in the US in Fairmont, Minnesota, Maquoketa, Iowa and Thompson, Georgia. Devenish also has operations in Mexico, Uganda and Kenya.

It deals in animal feed supplements – specialised high-value nutrients in a small pack. It also makes diets for small animals at the early stage of their lives, along with specialised nutritional products. In 1997, Devenish Nutrition was an agri-feed business, established in Fermanagh, with around two dozen staff. But in the two decades since its takeover, it’s grown from a firm with annual revenues of £5m to an international business now doing that in a week. It’s now headed by Richard Kennedy, who was named EY Entrepreneur of the Year Ireland earlier this year, and thus, shortlisted to be named the overall EY World Entrepreneur of the Year. It has now gone from £5m in turnover and 23 employees in 1997, to over £228m turnover in 2018 and over 750 employees. Devenish has round 500 staff – across 24 nationalities, which is roughly the size of the entire workforce 20 years ago. But it counts Northern Ireland as its main base, and remain a key element of the business. The company sells into more than 35 countries. Brands within the Devenish Group of companies include: A-One, a pig supplements feed business based in Thirsk, North

While turnover increased to £228m in the last year, pre-tax profits fell to around £760,000 after a year which brought some challenges, the company said. Richard Kennedy said the financial results were “solid”. He said the company had made significant reinvestment during the year. The group’s research farm at Dowth, Co Meath, carries out research into sustainable agriculture and food production. Devenish said its work there is aimed at helping food producers cope with the challenges of climate change. It added that it had been investing heavily in new and emerging markets during the year, with a particular focus on establishing and growing a presence in Latin America and Africa. The company was dealt a blow in November last year, after a fire took hold at the firm’s distribution centre the M2 Business Park in Belfast.

Speaking on the Ulster Business Podcast this summer, Richard also spoke about about life as an essential business amid Covid-19, the time it will take society to deal with the changes ahead, the impact a huge fire had as its main Belfast site, the impact of the crisis on the economy and finding a way through Brexit. And speaking about being shortlisted for the EY World Entrepreneur of the Year, Mr Kennedy said: “I was exceptionally proud to join the 46 other global entrepreneurs for this special event, which recognised exceptional talent from across the world. “Being part of this process and representing Ireland this past year has been an achievement of which I am extremely proud. I am inspired by the people of Devenish every day, who continue to demonstrate true entrepreneurial spirit.” ■

Richard Kennedy

AUGUST 2020

TOP 100

Just when performance was strong, along came Covid-19 Economist John Simpson examines at the success stories making up the Top 100 but looks ahead to a couple of years in which companies of all shapes and sizes will feel a serious hit to their bottom lines 80

TOP 100

he health and prosperity of the private sector in Northern Ireland was improving. In a relatively small but diverse regional economy, there are few readily available comprehensive key performance indicators (KPIs) but in the last five years, the informal evidence was of greater strength and better outcomes. Ulster Business has helped to enhance the appreciation of local developments by running the annual review of the performance of the 100 largest businesses here, for more than 30 years. Private sector businesses in 2019 enjoyed one of their more successful trading outcomes. Even a cursory examination of the trading results points to what was an improving performance. Sadly, now in the second half of 2020, following the Covid-19 crisis, the forecast for outcomes in 2020 is much less encouraging. Business challenges are now to find ways to minimise the damage to bottom line performance of the disruption to production, throughput, employment and profitability. The list of the Top 100 businesses, now published in mid-2020, is remarkable for several reasons. First, none of the main businesses identified a year ago has closed. Redundancies and closures have been a minor feature. Second, there have been a few changes of ownership. This review of the 100 largest businesses is essentially a look-back on a remarkably strong performance in 2018-19. It is important to people who either have a personal interest in performances, because they need a yardstick for their own performance, or have responsibilities or a managerial role in deciding how Government policy should develop. For either of these reasons, or a mixture of both, any objective assessment of the overall state of the private sector offers a compelling source of intelligence. Bringing together data on the 100 largest businesses, compiled independently, is useful and, when available over different years, offers a rich source of evidence. At first sight,

AUGUST 2020

deciding to document the recent performance of the 100 largest businesses appears an unambiguous process. After a brief pause for thought, it is not so unambiguous. There are subsequent decisions which define the task in more detail. First, the Top 100 uses information about businesses registered in (and from) Northern Ireland. If a business operates as a company, registered under devolved company legislation and submitting statutory trading returns to Companies House in Northern Ireland, then it falls within the remit. Obviously that normally excludes businesses registered with control in Great Britain. The Top 100 excludes high street businesses which are part of a GB registered organisation. Second, the Top 100 aims to avoid possible double counting of information where a Northern Ireland registered business also operates through one or more subsidiary companies. Where parent and subsidiary companies operate ‘side-by-side’ usually only the parent, or holding, company is identified using consolidated results for the group.

This review of the 100 largest businesses is essentially a look-back on a remarkably strong performance in 2018-19 Third, in a composite KPI listing, the presentation relies on only a small number of performance variables. For the Top 100, data is presented on annual turnover, pre-tax profits, value of net assets and the average number of people employed. Information on these variables is taken from the most recently filed annual accounts which in June 2020 usually mean a trading year ending in late 2018 or in 2019. The Top 100 list does not include businesses for which the measurement of turnover is not a sensible comparator. For example, no banks or financial institutions are included. A consequence of that exclusion is that a small number of the more profitable local

organisations are not identified. The list has been prepared ranking the businesses in descending order of annual turnover starting with Moy Park where turnover reached a record £1.58bn, according to its latest accounts. Largest annual turnover has come from companies with major business markets across the world. Moy Park, W&R Barnett and Glen Electric, the top three for turnover, all have well established subsidiaries and market outlets in many countries. If the Top 100 had been ranked by the level of pre-tax profits, the list would have been surprisingly strong but not always correlated to turnover. Top profit earners include EP Kilroot, NI Water and NIE. Each of this group can be described as being critical parts of the utility infrastructure of Northern Ireland. The largest profit earners among the private sector trading companies is made up of seven successful businesses, reflecting the diversity of the Northern Ireland commercial structure. They reflect advanced technology, at Schrader, competitive engineering, at Terex GB, aspects of food processing and distribution, at John Henderson, Moy Park and W&R Barnett and advanced glass products, at Encirc. Missing from higher profit makers in the Top 100 are Short Brothers (Bombardier) where turnover remains large but, for the present, trading losses of over £32m were registered. Other important firms which, this year, have registered significant trading losses include Caterpillar (NI), Wiggle (formerly Chain Reaction Cycles), Lacpatrick Dairies, Translink (NI Transport Holding Co), Thompson Aero Seating, Coolkeeragh ESB and Ryobi. The Top 100 compiled in 2020 is a complex presentation of a generally successful private sector based in Northern Ireland which is showing some businesses trading through difficult times but, in general, showed a strong commercial base for the majority of local firms. Sadly, the prospects for 2021 are more worrying. ■

RECRUITMENT

We are discovering a new way of working By Tina McKenzie, managing director of Staffline Recruitment Ireland

t has become somewhat cliche, but 2020 really has been unprecedented. Business leaders plan for the future – it’s our job, our raison d’etre.

continue to be at the forefront of employer’s minds, as well as being central to policy development across Stormont, Dáil Éireann, Westminster and Brussels.

However, I doubt many of us had a worldwide pandemic on our minds as we put budgets, plans and people in place to tackle the year ahead. Nevertheless, Covid-19 has brought some of the most significant challenges to business that the world has ever known.

We have also endeavoured to give every support possible to a large number of diverse employers across Ireland, advising on a number of issues including good health and safety practices in the workplace, utilising digital technology to the best advantage and encouraging those with increased output to react quickly and effectively to a surge in labour demands. Now more than ever, flexible working arrangements will be essential as businesses rebuild.

The business community in Northern Ireland also faces the continued uncertainty of the impact of ongoing Brexit negotiations, which despite being overshadowed by Covid-19, remain a significant challenge to our local economy. However, with challenge comes opportunity; and it is important that we look to the positives as businesses seek to forge a way forward in a new world of work. The unprecedented global health crisis has demonstrated just how important it is for workplaces to be agile, adaptable and flexible. Within Staffline across the UK and Ireland, we like many others, were compelled to find ways to reassure staff during the global pandemic and provide unprecedented levels of flexibility which took into consideration childcare needs, caring responsibilities and mental health pressures. Moving forward, these issues must

In the recruitment sector it may well mean pivoting towards new and emerging industries that harness an entirely new skillset from employees. Some sectors have been worse affected than others by the disruption, and those who have lost jobs may be more likely to diversify than they would have been before. People will need training and support as they enter new industries in response to the reshaped economy. The ongoing impact of Covid-19 has meant that the workplace will be crucial to shaping

good practice, facilitating flexibility for as long as any disruption lasts and engendering a fast and decisive approach to decision making which takes full advantage of business possibilities. I believe both people and organisations have discovered the benefits of a new way of working, which have challenged traditional business norms, but ultimately will improve the way we work and live. NI businesses in particular, will be much better positioned to respond to any practical challenges which may arise because of Brexit. The past few months have underlined the adage that change is the only constant in business. Covid-19 has changed our working practices and attitudes immeasurably. As a result; despite the squeeze on the local and global economy, we are now better prepared to weather any storms ahead. ■

Tina McKenzie is the managing director of Staffline Recruitment Ireland. Staffline Ireland has 10 offices including Belfast, Dublin and Cork, with plans for further offices in Galway, Dundalk. Ms McKenzie is also policy chair of the Federation of Small Businesses NI and now sits on the Northern Ireland Executive’s Economic Advisory Group.

Brian Donaldson

45 Maxol A

name synonymous will fuel and forecourts across Northern Ireland and beyond, Maxol has continued to increase its sales in the last few years, with turnover up and healthy profits.

The Co Down man has been with the company for more than 30 years and now oversees a business with a network of 237 company-owned and dealer sites, 93 of which are in Northern Ireland.

Turnover for Maxol Oil Ltd grew from £186m to £207m for the year ending December 2018. and the blue and yellow livery adorns forecourts across the island of Ireland where it holds the title of Ireland’s largest family-owned forecourt retailer.

That represents steady growth over the last few years as the latest accounts show, with turnover for the Northern Ireland part of the business climbing nearly 11% and pre-tax profit climbing nearly 19%, with similar uplifts reported across the division in the Republic.

That is a position built up through the work of the McMullan family in the 100 years since William McMullan founded the business in Belfast back in 1920.

Continual investment in its sites has helped underpin that growth, as has a focus on the non-fuel offering in each of the forecourts.

The McMullans are still very much involved through third and fourth generation directors Max, Noel, Malcolm, Thomas and Barry while Brian Donaldson has been group chief executive since 2016.

The group has developed an own-brand label for a number of products such as coffee, milk and pre-packed sandwiches and salads, incorporated a deli section and focused strongly on expanding its convenience food offering to tap into a growing demand for quality, locally-sourced and prepared food. As a result, the proportion of turnover accounted for by non-fuel items at Maxol has grown to some 45% while fuel makes up 55% of revenue, a statistic which shows how the business is becoming more well known for the former. Both remain a key focus for the business which has been looking closely at how it can

play its part in a greener, more sustainable future. It has been trialling electric vehicle charging points in a number of forecourts as the move towards electrification of transport begins to gather pace. Significantly, in partnership with Ciaran and Stephen Devine – the brothers behind Evermore Energy, Maxol has also founded and invested in Bright, a new electricity supplier which offers affordable green energy on just one simple tariff across the island of Ireland. Bright is aiming to disrupt the market by changing how people manage and pay for their energy by avoiding complex tariffs and offering a user-friendly app. Brian Donaldson said such a move is an intrinsic part of Maxol’s growth and diversification strategy by making a move into the renewable energy sector. “We are constantly assessing the business to make sure we are prepared for the future and the renewables sector is one which with fits with our long-term ambition to focus on sustainability. Maxol is a dynamic business and we are well used to adapting our business model to meet the market’s needs.” ■

We are constantly assessing the business to make sure we are prepared for the future and the renewables sector is one which with fits with our long-term ambition to focus on sustainability. Maxol is a dynamic business and we are well used to adapting our business model to meet the market’s needs AUGUST 2020

COMMERCIAL PROPERTY

NI property market emerging from lockdown, but what’s next? By David McClure, managing director, Osborne King

David McClure

here is no doubt that the past four months have been among the most traumatic the UK property market has ever experienced. Never before have we witnessed this sort of Government intervention, particularly of the scale and nature required but it is already abundantly clear that every scheme and initiative has been necessary within this period to support the wider economy. Arguably, however in this context we are about to discover the true character of our property market as our businesses emerge from lockdown and the implications of the easing of the current Government support mechanisms not least furlough become apparent. Early indications at a micro level at least suggest that people have been using lockdown wisely, taking stock of their current circumstances and assessing where they go next from a business perspective. We have been genuinely amazed at the number of general agency enquiries that we have received in recent weeks particularly at the entry level to the retail and industrial sectors. As a result of this activity we have agreed a number of deals in recent weeks so the initial signs are certainly encouraging. The residential market also appears to be relatively buoyant for the moment at least with pent up demand in the new homes market. There is also little doubt that the Chancellor’s recent announcement on the temporary suspension of stamp duty will also assist in bolstering new homes demand and the savings generated may go some way to balancing out purchasers loan to value (LTV) difficulties in a more restricted post Covid-19 mortgage market. While the local investment market has been understandably subdued with very few

opportunities openly marketed, there is still latent local investor demand. The conundrum, as is often the case in such times of uncertainty is marrying vendor expectations with a purchaser’s revised view on price. We expect to see a clearer picture of price adjustment over the coming months but for now at least the best quality product let on long leases to strong covenants remains as sought after as ever. Finally, spare a thought for the ‘forgotten men’ in all of this: the landlords. Almost all of the Government’s coronavirus support schemes are predominantly aimed at employment protection and are therefore by nature tenant focused from a property perspective. The perception, quite wrongly in many cases is that the landlord has the means to carry a sustained void rental period. While the Government’s recently published code of practice urges the principles of ‘transparency and collaboration’ it is clear that many unscrupulous tenants are continuing to exploit the situation and the protection against forfeiture afforded under the Corporate Governance and Insolvency Act. Many landlords feel understandably let down

by Government and in most cases are left to rely on the sympathy of their lenders to obtain their own concessionary terms around capital and interest repayments. However, as with so much in life, timing is everything and unlike England, ‘D-Day’ from a Northern Irish perspective is almost upon us being August 1. So local landlords and their agents will be most anxious to see what their rental collections look like when the quarter day falls. They will be praying for a marked improvement from the situation in May which in the retail sector typically saw only a third of tenants paying in full. Whatever the future holds, it would be an understatement to describe the local property outlook as unpredictable but it is certainly not all doom and gloom. Once more our local entrepreneurs have shown how adaptable and imaginative they can be when necessity requires it and this has led to new business ideas, a different approach and importantly for the property market some genuine activity in recent weeks. The key of course to any recovery is sustainability and the continued support of both Whitehall and Stormont will be critical to the local market in the weeks and months that lie ahead. ■

65 Randox W

hile Randox is a firm which is already known by many here, the last few months has increased its position as a household name as it’s ramped up to undertake millions of tests for Covid-19 across the UK, Ireland and beyond.

Peter and his company eventually expanded to larger premises. That was in an apple store, which would later be converted to house the international headquarters of Randox Laboratories in Crumlin. Since then, the company has developed its new headquarters, just outside Antrim.

As a business, Randox has continued to expand. Randox now has a turnover of around £118m, putting it in the number 65 spot in this year’s Top 100.

“We have customers worldwide and other products kept going. We moved around 100 scientists into Covid-related things and then they have gone back to normal jobs as we bring in new people.

There’s a more detailed conversation with Peter around what Covid-19 will means for all of us in society, later on in the magazine, but looking at the business’s performance over the last year, expansion, include additional hiring this year, will increase its workforce to around 1,650 staff.

“Some of our R&D projects have changed, new systems and new analysers allow for efficient and accurate testing.”

Randox had a workforce of around 1,450 worldwide before the coronavirus crisis began, but has since taken on around 280 additional staff for a range of roles, partly in ramping up demand for the additional testing.

And he says just a small element of the business has seen a decrease amid the crisis, while other areas around Covid-19 have grown. “Only a small element of core business decreased. But our Covid and other genetic products have increased… overall sales will be up and by end of year normal business up as well.”

It’s a local success story which began life more than 30 years ago in a chicken shed in the backyard of Dr FitzGerald’s Co Antrim home. Starting off with a team of two back in 1982,

And as a result of the latest expansion and growth across the business, generally speaking, Peter says the workforce looks set to climb to 1,650, with around 500-600 based at its main

Randox Science Park in Antrim. In its annual accounts for 2018, Randox Holdings’ profits rose to £167,000, after a loss in 2017. On the back of its huge contract testing work for the UK Government, Randox invested £30m in a new testing facility. “We then decided to be 33,000 sq ft of new lab space, and it was needed in three weeks. We got that done – work was 24 hours a day, and seven days a week. It’s now operating well. That has been very important in the process. “An incredible amount of work has gone into making this testing facility a reality in a relatively short space of time, as we know that effective testing is the most effective way to both save lives and promote a timely return to a more normal society.” The company is recruiting staff in science, engineering and manufacturing to help in its role in the national testing programme. ■

Read the full interview with Dr Peter FitzGerald on page 128-129

Dr Peter FitzGerald

AUGUST 2020

PACKAGING AND MACHINERY

JMC Packaging: a family firm with experience and expansion on the horizon Over the last three decades, Jim Cullen and brother Mark have grown their machinery and packaging business, JMC Packaging Ltd, reaching out across sectors in the UK and Ireland. Jim Cullen explains what sets the firm apart from the others and whatâ&#x20AC;&#x2122;s next for the Craigavon-based business

Jim Cullen

PACKAGING AND MACHINERY

Jason Govender with the firm’s new slitting machine

ince Jim and Mark set up shop 26 years ago, JMC Packaging has grown into a business that works with some of Northern Ireland’s largest food firms and boasts a turnover in excess of £20m. The business, which has its main base in Craigavon, is now one of Northern Ireland’s leading distributors of both machinery and packaging materials and is investing in both its operations and people, as it expands its reach into new markets. Since its early days of fruit and vegetable distribution, the company has since developed and expanded considerably, working across a range of diverse and burgeoning sectors – from meat and fish to pharma and many other industries. In 2008, the firm took on a majority shareholding in GSH Holdings Ltd in England – the move allowing the company to offer services across a much wider swathe of business, throughout the UK and Ireland. JMC Packaging provides its customers with a wide range of machinery needs along with the

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packaging material suited to its requirements. That includes a range of tray-sealing equipment, trays and lidding films, shrink-wrap machines and shrink film, Flow Wrap machinery, films, label printing application as well as weighing and filling solutions.

also service the machinery, post installation.”

In the last few years JMC has strengthened its relationship with long-standing customers and industry giants. That includes firms such as Moy Park, Simply Fruit and convenience food brand, Mash Direct.

The company also says that 75% of its business comes from return customers – another sign of JMC’s outstanding service, attention to detail and ability to sustain long-term relationships with companies from across the UK and Ireland.

One of the firm’s strengths is its ability to not only find the right packaging solution for customers, but having a hands-on approach, as well as boasting local servicing, right on the doorstep of many of its customers.

JMC is agent for tray-sealing and skinpackaging machines from PROSEAL, right across the 32 counties of Ireland along with Ilapak Flow wrapping equipment, as well as numerous other machinery and material suppliers.

“We are responsible for all the machinery we sell to our customers across all sectors, including meat, dairy, bakery, pharma, pet food, confectionery, and fresh produce, to name a few,” Jim says. “We have machinery in firms such as Mackle Pet Foods, Kestrel, Dunbia and others. But we don’t stop there, with our dedicated service team, we

The company’s spare parts and servicing department deals with everything from maintaining the machinery, ensuring it performs at its highest capability.

JMC has grown to a team of around 30 staff at its main Craigavon site, with similar numbers at its operation in England. The business has been at its current site at Seagoe Industrial Estate for the last six years, but Jim says the company has also taken on another site in the area to expand further still. >

PACKAGING AND MACHINERY

We have machinery in firms such as Mackle Pet Foods, Kestrel, Dunbia and others. But we don’t stop there, with our dedicated service team, we also service the machinery, post installation

Jim Cullen

JMC has continued to grow organically every year by working closely with both strategic supply partners and customers, helping to forge long term relationships with both. As markets and demands change, JMC is making a bigger move towards recyclable & compostable packaging, as firms – from SMEs to multi-nationals increasingly see the importance of ‘greener’ packaging and their contribution in combating climate change. This market is growing year on year we are putting a strong focus on listening to what our customer needs are and being able to supply products that are kinder to the environment. For Jim and the rest of his team, it’s about a customer being able to pick up the phone and receiving expert advice and immediate service. “It has been a very good year for all of us here,

and business is continuing to increase,” Jim says. And part of that is looking at new suppliers from across Europe and Asia, helping to bring more new products at competitive prices to its customers.

us to be more responsive to our customers needs with our slitting machine, if they require something specific in a short time frame. We are able to respond immediately whilst remaining competitive.

The company has recently invested £250,000 in a new flexible film slitting line that allows JMC to convert various films from master reel format with the facility to macro punch if required. These films include Polypropylene and various lidding films, printed and plain as well as other flexible films.

“This gives us a better edge. We are a growing business and employing more and more people. Even with the virus, we are performing well as a business, especially in certain sectors such as food.”

It’s something which is seeing a spike in demand as businesses, especially those selling fresh food, such as bakeries, begin to use more packaging by ensuring food products are hygienically packed and remain contamination free amid the Covid-19 pandemic. “We purchase materials in bulk, which allows

And for Jim, the ongoing success of the firm has been down to a strong team effort, with some employees working for the company for close to 23 years. As for looking ahead, JMC have a positive outlook towards further expansion and opportunities alongside our own natural organic growth across the UK and Ireland. ■

ENERGY

Growing a gas business and heading towards net zero

or Michael Scott, the safety and the company values of his workforce remain the top priority for firmus energy, especially amid the particularly challenging times that we’ve all faced over the last few months. Firmus energy has grown its natural gas business into a company approaching £100m in turnover, with over 100,000 customers, 50,000 in greater Belfast and a further 50,000 across the remainder of Northern Ireland. In the last year the company, which is responsible for installing and maintaining a polyethylene plastic natural gas network, as well as purchasing and selling natural gas, has continued to expand both its business and domestic offering, and has extended its reach – laying around 150km of gas mains over the last 12 months. “The company continues to perform very well. Safety is our number one priority,” Michael says. “That’s something which is ingrained in everything we do.” firmus energy’s team has grown to around 100 staff with two offices in Antrim, and a further 120 contracting staff also working on the ground. “The last year has continued to be busy for us and we have a range of customers signing up, such as commercial SME and domestic customers. We’ve also had one of our busiest periods working with new-build developers and the Northern Ireland Housing Executive.” “The owner occupier market continues to grow from strength-to-strength. The green credentials of natural gas have continued to be fully recognised in the net zero future for Northern Ireland and we continue to work collaboratively as an industry alongside the other distribution and transmission gas operators. In fact, in the last year, natural gas has positively displaced 1.1 million tonnes of CO2.”

Michael says one of the company’s main strengths, and what helps it stand out from the crowd, is that all staff are trained to City & Guilds standards in energy efficiency. “That means we are knowledgeable and can fully explain the importance of adopting energy efficiency measures by installing natural gas,” he says.

Michael Scott

“And it’s also about the values of the company and the people working in it,” Michael says. “It’s about how we conduct ourselves. These are not just words on a wall – our values are something which we live by.” “firmus energy is also a long-term investor in the Northern Ireland economy and that is something fully supported by our owners Equitix, who is an experienced longterm investors in UK and European core infrastructure. Equitix has over £6bn in assets under management and is committed to the growth and development of the network alongside continued investment in Northern Ireland. This is what helps to set us apart.” And while the crisis around coronavirus has meant challenging times for businesses here, Michael and his team have moved forward and adapted, holding regular Covid-19 meetings each week as well as offering company wide Zoom briefings to ensure the safety of staff undertaking critical works continues. Looking ahead, Michael says firmus energy, along with the other natural gas operators here, is continuing to work closely with the Department for the Economy on the future of natural gas, and the integral part it will play in decarbonising heat and transport between now and 2050. “Our future is bright and our ambition is clear,” Michael says. “As an industry we have £1bn of uniquely positioned network assets in Northern Ireland, which we plan to optimise to play a significant part in helping the government achieve net zero carbon goals.

“The first step will be to maximise the number of households converting from oil to natural gas to allow important CO2 savings to be made immediately. Natural gas emits 50% less CO2 into the atmosphere so there are real environmental wins that we can generate here. Next we will be making compressed natural gas available for HGVs and buses which will effectively decarbonise our HGV transport system.” What about the longer term forecast? Michael says. “Longer term technological advances will allow the injection of biogas and the blending of hydrogen into our natural gas network. This can be done without major changes to household appliances and by businesses in the same way that they use natural gas today. We, as an industry, are both excited by and indeed are looking forward to the opportunities net zero will present to Northern Ireland’s energy landscape.” ■

TRANSPORT

A green recovery

Things look a bit different on and offboard Translink services these days, with social distancing and other protective measures now rolled out across the network. The impact of Covid-19 on public transport services in Northern Ireland, as in every other facet of life, has been immense, according to group chief executive, Chris Conway 98

TRANSPORT What the new Belfast Transport Hub could look like

ranslink has been at the frontline throughout this crisis helping key workers complete their essential journeys. As lockdown eases, Translink continues to help Northern Ireland recover safely and sustainably, making public transport safe for everyone and progressing a ‘green recovery’ under the theme of ‘Let’s Go Safely Together.’ “We have a chance to advance a ‘green recovery’, with sustainable travel options like walking, cycling and public transport having a massive role to play in the ‘new normal’. “Lockdown has emphasised the impact that we all have on the environment and the ongoing global climate crisis, with significant improvements in air quality being recorded during the period. “A reduction in air pollution is something that we’ve all benefitted from, and it occurred while public transport continued to operate, reinforcing the need to reduce reliance on the car and increase our focus on sustainable transport. “However, significant investment needs to be made in sustainable transport to make it an attractive option for more people, ensuring we have the right services and infrastructure in place for a low carbon future – Translink is prioritising development of low or zero emission vehicles, such as hydrogen and electric buses and trains, and we’re working to facilitate

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improved pedestrian and cycle access to our services. “Our new infrastructural investments, such as the Belfast Transport Hub, will also help make sustainable transport even more attractive. “The crisis has demonstrated the importance of Translink as an essential service, ensuring key workers can get to and from where they need to be. “As we return to something approaching normality, passenger behaviours are likely to change, with more people working from home and travelling off-peak. There’s also been a surge in demand for cash-free ticket options like mLink or contactless payment giving the travelling public more flexibility and reassurance – we’ll continue to invest in this technology. “The future looks positive – I think more people are aware of the importance of embracing integrated transport and tackling climate change. “Before the pandemic we had ambitious plans for the future of public transport in Northern Ireland, and these are only enhanced as we enter a unique opportunity to move to a healthier, more sustainable and prosperous society, with public transport and other sustainable modes helping to power a change in habits.

everyone’s normal way of life – both for work and leisure – and to ensure that Translink can continue to enhance and develop sustainable transport options. “We’re making important strides with key projects like our hydrogen bus pilot, future ticketing system and Belfast Transport Hub and it’s vital that projects like these continue to drive forward if we’re to effectively tackle the climate emergency alongside corporate colleagues and make public transport in Northern Ireland all that it can be. “However, safety will remain our top priority, and Translink will continue to work with stakeholders to help Northern Ireland emerge on the other side of this ongoing situation and promote safe and sustainable transport opportunities across the board. “Translink is ready to play our full part in the economic recovery, and we’ll be there to link communities together and connect people with employment, education, leisure, retail and healthcare opportunities, as well as restoring vibrancy to our town and city centres.” ■

Keep informed of what Translink is doing to advance sustainable transport and build a ‘green recovery’ at www.translink.co.uk

“We’ve welcomed government support to get us through this challenging period, but also need a sustained level of investment to ensure public transport, walking and cycling become part of

76 Balcas C

o Fermanagh’s Balcas is a company which goes about its business with a strong focus on doing things with a green touch and a direct contact to nature, on a daily basis. The business is dedicated to the sustainable use of timber in a range of products, including in renewable heat generation. The company comes in number 76 on this year’s Top 100 list with a turnover of around £97m. And the firm looks set to crack £108m in turnover for the next year of accounts. Balcas has a direct workforce of around 380, and a further 300 or so indirectly. Brian Murphy is at the helm of the firm – pictured in a forest not far from the company’s Enniskillen base. “Balcas is committed to the long term future of our community and our employees as well as our shareholders,” Brian says. “Raw materials are the commercial and sustainable forest crop of Ireland and Britain. Everything we use is being replaced and the annual forest crop from the island of Ireland is expected to double over the coming 15 years. “Modern forestry industry supports climate change objectives; nature conservancy and bio

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diversity; and society through leisure resource and jobs. Many lessons have been learned over the past 60 years that permit all of these objectives to be balanced.

“Balcas wood pellets provide carbon neutral heat to hospitals, care homes, government institutions, major supermarket chains, farms, schools, colleges and domestic homes.

“Timber as a construction material has a carbon footprint that is a fraction of more traditional methods used in these islands.” Balcas has also invested around £100m in its factories in the British Isles since turn of century.

“Since we began making wood pellets we have displaced the oil equivalent of three very large crude carriers from the UK – more than six million barrels.”

“The manufacturing facilities are world class. Optical scanning, computers, and robotics are providing continuous opportunity for improvement,” Brian says. The firm also emphasises its commitment to tackling climate change, in how it operates and does business. “A very small recent change has seen our forklift fleet of 14 formerly diesel trucks (each runs two shifts a day) changed over to being fuelled by BioLPG. The trucks were manufactured by Hyster Yale in Portadown,” Brian says. “They are serviced by Briggs of Lisburn. The biofuel is provided by Calor NI. It’s a modest saving of 120,000 litres annually of diesel – it’s a nice local industrial story.”

The firm’s sawmills in Enniskillen and combined plants in Enniskillen and Invergordon in Scotland are energy efficient and self sufficient. It has a 72 acre site in Enniskillen, with an annual capacity of 268,000 cubic metres of sawn timber, while its Invergordon base includes a 34MW boiler alongside a pellet plant producing 100,000 tonnes of pellets each year and 8.6MW of electricity. Balcas Timber makes a wide range of durable and environmentally responsible timber products for the domestic and agricultural markets Its product range includes kiln-dried graded structural timber, unseasoned and preservative pre-treated fencing timbers, pallet wood components, and sleepers – increasingly being used for landscaping projects. ■

Brian Murphy

AUGUST 2020

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ANALYSIS

Is it time to rethink the ‘S’ in ESG? Jonathan Neilan takes a look at the changing global landscape with an increasing focus on environmental, social and governance (ESG), particularly after the prominence of climate change activist Greta Thunberg

lmost two years ago a teenage girl, Greta Thunberg, started her climate protest outside the Swedish parliament, spawning a movement that captured the world’s attention. Over the same period, what was less apparent was the shift in capital markets to place greater emphasis on environmental, social and governance or ‘ESG’ issues at companies worldwide. In 2019, an incremental $70bn is estimated to have been invested in ESG funds while traditional equity funds suffered almost $200bn of outflows. What was once a marginal consideration for investors is now front and centre. Since Enron’s collapse in 2001, and subsequent failings that led to the financial crisis in 2008, governance has been high on the corporate agenda. Recently as investors, regulators and activists have pressurised companies, environmental issues also have come to the fore. ESG factors are increasingly relevant in the cost of debt. S&P Global and Moody’s acquired ESG ratings agencies in the past year and now include those ratings within their overall credit criteria. Despite all this, as a measure, the ‘S’ in ESG – the ‘social’ – has been somewhat left behind and remains the hardest to define. ‘S’ factors affect businesses every day – customer or product quality issues, data security, industrial relations or supply-chain difficulties – and often cause significant reputational damage. Think of the perceptions of how

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some retailers have treated workers; the damage to consumer brands linked with child labour; and the loss of confidence in banks when IT systems fail and customer transactions can’t be honoured. We now see companies withdrawing their advertising from social media platforms in a response to a lack of oversight and ‘policing’ of hate speech. These are all factors which fall within the ‘S’. A 2017 study by the NYU Stern Centre for Business & Human Rights looked at more than 1,750 ‘S’ measures from different ESG rating frameworks – and found those measures were often “vague”.

Covid-19 has demonstrated that factors relating to ‘S’ are among the most pressing issues for companies globally. Many employees transitioned almost overnight out of strong businesses to effective unemployment. Entire sectors of the economy, and not just the weakest players, are facing a stark and uncertain future. Now, more than ever, a company’s reputation – its ‘licence to operate’ – will be a function of how it engages and manages its stakeholders through this crisis. Where there was a lack of focus and reporting on ‘S’ in the past, it now will clearly be an element of the corporate story and a prominent pillar of a company’s ESG credentials. It is incumbent on companies to grasp the

ANALYSIS

meaning and implications of a strong ‘S’ and to communicate activity and progress to all stakeholders. The environment we now find ourselves in has also affirmed that we would be better served dropping the ‘social’ from ESG and replacing it with a more appropriate ‘S’: stakeholder. In the early part of the Covid-19 crisis, many companies were immediately in the spotlight for what were perceived to be poor ‘S’ practices. In the UK, Frasers Group sought to keep its SportsDirect retail outlets open in the face of a government lockdown of all but essential services. Pub group JD Wetherspoon was criticised for claiming that staff should not be paid after its pubs closed and that they should seek alternative work at supermarkets. Scrutiny of companies will rise when they are in receipt of government support. As EU Competition Commissioner Margrethe Vestager said: “Support comes with strings attached, including a ban on dividends, bonus payments as well as further measures to limit distortions of competition.” New York Governor Andrew Cuomo went a

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step farther, demanding that any corporate bailouts are repaid in full in the event that employees are not rehired after the crisis. A new form of social contract is being moulded between industry, employees, government and society. Investors also have clearly articulated the importance of ‘S’ in this new world. Legal & General encourages companies “not to focus solely on their shareholders but to focus on stakeholder primacy”. Schroders has echoed this, stating that “in the short term companies need to prioritise their key stakeholders, in particular employees but also customers and suppliers”. Investment in those stakeholders may be a short-term cost, but it will benefit companies in the long term. In seeking to protect and enhance corporate reputation – through good and bad times – a powerful guiding principle is to ‘do the right thing’. Simple as it sounds, this reflects the adage that ‘good PR starts with good behaviour’. This guiding principle also translates to building strong ‘S’ credentials. A company’s

objective should be to take the steps it genuinely believes are in the best interest of the company and its wider stakeholders. Not every decision will meet the expectations of every stakeholder. But it’s a good place to start. ESG will never replace financial performance as the primary driver of company valuations. Increasingly, however, it will influence the cost of capital, play an important role in risk management and, critically, protect and enhance corporate reputation. Companies need to get a firm handle on how comprehensive their policies, procedures and data are in key areas through a candid ESG audit. Companies then should build a disclosure strategy for communicating with stakeholders. What has become clear over the past three months is that a host of stakeholders, including many investors, will expect a seachange in their access to information. While there is no requirement to be the first mover, those that are laggards will face avoidable challenges and a rising threat to their ‘licence to operate’. ■

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Adam Couch

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84 Cranswick P

erhaps less of a household name that some of our other better known homegrown meat processors, Cranswick has seen growth in its business in Co Antrim. The listed firm saw turnover rising for its pork processing operations, based in Cullybackey close to Ballymena, rise to £93.5m for the latest accounts filed to Companies House, ending March 2019, while pre-tax profits now sit close to £3m. It’s the Northern Ireland arm of a company which has seen its latest figures for 2020 rising to turnover of £1.7bn, with pre-tax profits cracking the £100m mark. Cranswick bought the processing operation from Dungannon-based meat giant Dunbia for £18m, back in 2016. Dunbia itself has now seen its own turnover rising above the £1bn mark. Cranswick’s Cullybackey business employs around 360 people and processes around 7,800 UK farm assured pigs each week. “We continue to experience and operate in the most challenging of periods. Our business is founded on our people and I would like to thank all our colleagues for their professionalism, commitment, dedication and passion,” Adam Couch, Cranswick’s chief executive said in the companywide preliminary results at the end of June.

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“We will continue to support all Cranswick colleagues and their families who have been affected by Covid-19. To recognise the outstanding contribution of our people we announced in April that we will pay a £500 bonus to each of our site-based colleagues at the end of June. “We have also supported local communities through a number of initiatives including making and delivering sandwiches and sausage rolls to front line NHS staff, giving food hampers to the elderly and the vulnerable in our communities and care homes, as well as supporting local charities.” He says the company has expanded an invested significantly in its operations across the UK over the last year. “The last 12 months has seen us deliver key steps in our diversification strategy with the successful commissioning of our Eye poultry facility (in Suffolk) and the acquisition of Katsouris Brothers which expands our non-meat activities. We also completed two further acquisitions to increase our vertical integration in pork.

“The strong growth and strategic progress we have made over the last 12 months has been made possible by the platform we have built and the pipeline we have laid down in recent years. Our positive momentum is a reflection of the continued investment we make in our infrastructure and the quality and capability of all our colleagues. “There has been a positive start to trading in the new financial year, though we remain mindful of the uncertainty around the longerterm effects of the Covid-19 crisis and Brexit negotiations. “Nonetheless, our outlook for the current year is unchanged and we have a solid platform from which to continue Cranswick’s successful long-term development.” Total revenue for the year of £1.7bn represented an increase of 16% on the previous year. The firm says excluding turnover from Katsouris Brothers, acquired during the first half of the year, and that from the more recent livestock acquisitions, Packington Pork and White Rose Farms, revenue on a like-for-like basis was 13% higher. ■

“We spent a record £101m across our asset base and this brings the total investment in our infrastructure over the last eight years to more than £400m.

We spent a record £101m across our asset base and this brings the total investment in our infrastructure over the last eight years to more than £400m

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TOP 100

Importance of food and drink sector never more apparent

Michael Bell

Michael Bell, executive director, Northern Ireland Food and Drink Association (NIFDA), assesses how our burgeoning food and drink sector has adapted amid challenging times and how itâ&#x20AC;&#x2122;s working to adapt and evolve to tackle the further barriers ahead 108

TOP 100

sector workforce. With these jobs largely being spread fairly uniformly across the geographical spread of Northern Ireland, food and drink is embedded within our rural communities like no other industry. Time and time again, Northern Ireland food and drink has shown its resilience – achieving successful growth in the face of multiple obstacles. Companies of all sizes have continued to thrive in the face of a myriad of challenges in recent times. But no challenge has been greater than the Covid-19 pandemic. Indeed, it has been a once in a generation challenge for the entire eating ecosystem. As the world went into lockdown earlier this year, food and drink manufacturers had to keep going in order to ensure quality food can continue to make its way to supermarket shelves and into people’s homes – the most difficult period for the food supply chain in the United Kingdom since the Second World War. Our key workers right across the food supply chain – from the farmer to food factory worker to delivery driver to retail assistants – have been working harder than ever to feed the nation.

t is impossible to overstate the importance of Northern Ireland food and drink. It is the largest manufacturing industry here, feeding some 10 million people annually across these islands and beyond. When it comes to innovation, quality and commercial success, our food and drink companies are world leading. We punch well above our weight and we have the awards to prove it. Together with the other sectors that make up the ‘eating ecosystem’ - farming, food manufacturing, transport and logistics, cold stores, packaging, catering, food service and retail – food and drink is a key driver of economic growth in Northern Ireland. This is clearly reflected in the strong presence of firms from the industry in this year’s Top 100. Food and drink is growing at a time when many other industries are contracting. The eating ecosystem as a whole supports some 100,000 jobs here – around a fifth of the total private

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The situation was and is unprecedented, and food and drink companies have had to adapt to it at a rapid pace, responding the changes in demand and implementing social distancing and other safety measures. Within a very short period of time, processes were re-engineered and reimagined, and food factories were transformed – requiring a significant level of investment. NIFDA has been supporting firms throughout and was instrumental in developing food manufacturing guidance for the industry – building on Government advice and identifying practical ways to implement it. Both government and industry have taken bold decisions to address the challenge of Covid-19 but, while we all need to remain vigilant, we need to now look towards a pathway to recovery for food and drink. In the short term, that means protecting our capacity in food production. Put simply, Northern Ireland’s economy will struggle to recover from this crisis without a strong food and drink industry, and we need to ensure domestic food production emerges from it intact. We need a capital expenditure support scheme to support firms in investing further in automation, innovation

and skills to future proof the industry. The establishment of an adding-value food and drink body for Northern Ireland is long overdue and we need action now. In the longer term, the UK Government has the opportunity to rethink its approach to food and drink, with a path to recovery built on addressing the UK’s balance of trade in food which has been steadily declining for decades, moving the public towards healthier diets, minimising environmental impact and maximising animal welfare. Achieving these shared goals will require new collaborative approach as well as serious investment, but the economic and societal gains would be immense. Doing nothing will only invite success for our competitors.

Our key workers right across the food supply chain – from the farmer to food factory worker to delivery driver to retail assistants – have been working harder than ever to feed the nation Beyond Covid-19, another pressing issue for the eating ecosystem is of course Brexit. While the Withdrawal Agreement was preferable to a no deal Brexit, firms still have concerns around bureaucracy, labour and tariff and nontariff barriers to trade. With the Government choosing not to extend the transition period, we have less than six months of status quo arrangements, with little to no clarity on what comes next. At NIFDA, we continue to engage with all levels of government to ensure that the industry’s voice is both heard and listened to as businesses navigate their way through these unprecedented times we live in. I continue to be inspired by the passion, the integrity and the innovative spirit displayed by our food and drink companies throughout both the good times and the difficult times. This year, more so than ever, the industry has really stepped up to the plate, demonstrating both its ingenuity and its necessity. It is an industry that deserves to be championed, and all of us in Northern Ireland should be proud of it. ■

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NEWS

Belfast tech firm AquaQ Analytics doubles workforce with 123 new jobs

Belfast ‘big data’ tech company is doubling its workforce as it creates over 120 new jobs in a £8.3m investment.

Brian Dolaghan, Diane Dodds, Ivy McFarlane and Jonny Press

AquaQ Analytics specialises in analysing data, and has major clients in industries such as data mining and data analytics. Once filled, the 123 jobs will contribute total salaries of £3.2m, equating to an average salary of £26,000 a role. The investment in the new jobs – 35 of which have already been filled – has been backed by economic development agency Invest NI. Jonny Press, chief technology officer at AquaQ Analytics, said: “We are delighted to be expanding our Belfast team and have invested in new premises to support this growth, which we hope to move into when the time is right. “These jobs will enable us to broaden the skill set across our team, increase the global reach of our business and meet the needs of our growing client base. The area of Big Data technology is something that we recognise will be of great importance to the wider tech sector, particularly as companies look at new ways to innovate due to Covid-19. As part of this, we are excited to be involved in the Girona collaborative growth programme supported by Invest NI, and bring our Big Data expertise to NI’s first smart micro-grid energy project.” Economy Minister Diane Dodds said the reinvestment by the company was welcome news and reflected the importance of the digital sector in the drive to deliver higher-paid jobs. “Big Data is a rapidly growing area of Northern Ireland’s tech sector. It is important to utilise and optimise data to obtain valuable

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business information that will help to revive industry sectors like hospitality and tourism following Covid-19. “The company’s expansion with 123 new jobs will double its workforce, and help it to strengthen its position in export markets and diversify into new sectors. Once all are in place, the jobs will contribute over £3.2m of annual salaries to the NI economy.” Roles still to be filled include software engineers and data and business analysts. The company said it’s looking for both graduates and experienced people. All staff are working from home. The company has received support of £861,000 from Invest NI. Brian Dolaghan, executive director of business and sector development at Invest NI, said: “We have a long standing relationship with AquaQ Analytics and are pleased to continue

supporting the company as it strengthens its presence in Northern Ireland. “Since establishing in Northern Ireland back in 2011, we worked with the company to support its growth. Our support has helped them create new jobs, invest in skills development and export markets which has resulted in AquaQ Analytics winning numerous contracts in global markets. It is this exact partnership approach which is catapulting the company forward and I look forward to seeing where this expansion takes it in the future.” Company clients include investment banks and hedge funds. Staff largely work from Belfast, which the company describes as a “near shore operating model”. However, staff have also been based overseas on client sites, in locations including Hong Kong. ■

RETAIL

Henderson Group continues to grow retail network through global crisis

The newly finished SPAR Carnmoney Hill

n 2019, management at Henderson Group could never have imagined the pivotal role its staff and store teams would play locally during the biggest global health crisis in decades. The group welcomed 2020 with plans to open at least three new stores in the year, to launch new sustainability and community initiatives and to continue to invest in store development and retail price improvement. During the first quarter, a dramatic shift in how the very foundation of the business ran would occur to give Henderson Group and its independent retailers their biggest challenge yet. Overnight, the company had to implement a new strategy to serve their retailers and keep shoppers and staff safe. “In the past few months we have invested £1m into health and safety measures to keep our stores operational and safe places to shop,” Paddy Doody, sales and marketing director at Henderson Group, says. “At a time when the supermarkets were feeling the strain and sometimes unable to provide an immediate service for the vulnerable, we were able to implement additional services overnight, and that’s where our local credentials have served us best.” Paddy says the combination of its Henderson Retail expertise alongside local knowledge made all the difference. “Our retailers know their local shoppers, so they knew exactly what services they needed to deliver to ensure they were still there for them. We were experiencing a rise in sales alongside a sharp decline in footfall, fewer people were coming into the store, but they were buying more. It’s a testament to our retailers and our own teams, particularly in logistics, that we were able to adapt so quickly.”

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Covid-19 impacted the group’s new store development plan, as all construction throughout Northern Ireland ceased. As restrictions were lifted, the company opened a new store in Newtownabbey, bringing 21 new jobs to the local community. “SPAR Carnmoney Hill sets the new standards of shopping for Northern Ireland,” Paddy says. “The project at SPAR Carnmoney Hill, which represents an investment of over £500,000 has provided the opportunity to incorporate all of our new safety measures as part of the store design.” Two more community supermarkets are planned to open this year; EUROSPAR Millisle in Co Down and VIVOXTRA Newry Road, Banbridge, both of which are currently at advanced stages of construction. Henderson Group posted sales of over £918m for 2019 and increased its workforce by 7%. And while the retailer will have to wait and see if pandemic sales will continue on the same trajectory, Paddy says recent research by the

Our retailers know their local shoppers, so they knew exactly what services they needed to deliver to ensure they were still there for them group indicates the priority for shoppers right now is to be kept safe, followed by value in store. “Our sales performance continues to be strong, indicative of the trust and appreciation our shoppers have for their local stores,” Paddy said. “We launched a £20,000 Community Cashback Grant during lockdown which saw 16 local community groups and charities gain vital funds for the projects which saw a drastic halt in fundraising, and we continue to invest in local products to bring top quality choice and value items to our shelves, while being there for our local communities.” ■

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88 Henry Group H

enry Group remains a familyrun giant which continues as another example of the strength of the construction sector here, and its resilience. The business is now a major player with around 200 staff and interests from manufacturing to construction and fit out, and has seen its turnover rising to £88.5m, for the year ending March 2019, and pre-tax profits of £2.5m. The company first began in 1976 when Jim Henry set up a small construction business called H&K construction, focusing on smallscale construction projects within the local area. Trading under this name for 10 years, in 1986 the business became known as Henry Brothers. “We are proud to be listed in this year’s Top 100 companies in Northern Ireland,” David Henry, managing director, told Ulster Business. “Our continued successes have been founded on high quality construction, innovation, integrity, and dependability. These values have been the bedrock of our relationships with our long-standing construction partners and are largely responsible for providing repeat business.” The Henry Group is made up of a number of construction and manufacturing sector companies, comprising of general construction and fit out. “While we deliver projects throughout the UK, we are pleased to have completed many prestigious projects here in Northern Ireland including the NI Fire & Rescue Facility, and the Davis House project at Maghaberry Prison for the Department of Justice, as well as Translink’s Milewater Service Centre, a purpose-built facility to service, maintain and repair the fleet of Glider vehicles,” David says.

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“We have regional offices in Scotland and in England where the construction market is more buoyant. We have just completed four projects at Loughborough University and three projects at Nottingham Trent University, illustrating the continuation of the successful strategy by our directors to build repeat business and partnering opportunities with key clients. “Our board recognises that a skilled, professional and experienced workforce is an integral part of the group’s continued success and seek to continue to focus on recruitment, training and retention. “There are challenges ahead and the industry will rely heavily on the Government ensuring that there is an adequate pipeline of work for the construction sector.” And the business has both won, and completed, a number of major projects here over the last few months. Henry Brothers Midlands won a new contract to build a new £18.5m joint headquarters for Nottinghamshire Police and Nottinghamshire Fire & Rescue Service. The three-storey facility will be constructed on land behind the existing Nottinghamshire Police headquarters at Sherwood Lodge and is scheduled to open by the end of 2021. Work on the new building, which will include a control room, training centre, changing rooms, gym, canteen and shared offices. Once complete it will form part of a wider joint campus that will also include all of the existing police headquarters. Meanwhile, it’s also recently completed a £30m scheme to refurbish and upgrade two key buildings at Loughborough University. The development was undertaken in 19 different phases over more than two years

Our board recognises that a skilled, professional and experienced workforce is an integral part of the group’s continued success and seek to continue to focus on recruitment, training and retention

to enable university staff and students to carry on with their work and to minimise disruption. The scheme involved upgrading labs, offices, study areas, lecture theatres, kitchens, toilets and refreshment venues to create light, airy and modern amenities, with top equipment, first-class teaching and learning facilities, and attractive break out spaces. More than 17,000 sq m of space over three floors has been refurbished and modernised in the two 1960s buildings, which are linked. Officially known as the Sir David Davies building, the W building houses Chemistry and Physics within the School of Science, and the Wolfson School of Mechanical, Electrical and Manufacturing Engineering – one of the biggest engineering schools of its kind in the UK. ■

David Henry

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PROFILE

Amet: three years and going for further growth I Amet Insurance Solutions is now well-established and one of Northern Irelandâ&#x20AC;&#x2122;s leading local managing general agents. With continued growth, a new look and continuing strong business through tough times, managing director Vincent McIvor looks at performance, expansion and the next chapter 116

n the space of just three years Amet Insurance Solutions has cemented its place as one of the leading local experts in the sector here. And according to boss Vincent McIvor, its healthy growth, expanding workforce, product lines and client base, continued to be bolstered by its local expertise and direct contact to its top brokers.

PROFILE

Amet Insurance Solutions is an MGA (Managing General Agent) and working as a leading local expert, operating between brokers and insurers, handling the claims and underwriting for policy holders across a range of sectors.

continued to work as normal.”

The company has now been fully trading for three years, and in that time it’s enjoyed steady organic growth throughout.

“Those that have children are working the hours that suit them – taking a couple of hours off and then coming on to work later. It’s something which we see going forward. If we do get back we’ll likely have no more than half of our workers in the office at the same time.

“Things have progressed quite well for us, and faster than we originally planned – we will continue to keep doing that. The growth may slow down but we are still planning to expanding in the next year or two.” While still focusing on its initial offering, Amet is also branching out further into contract works insurance – a combined policy with liability that focusses on the construction sector. “This combined policy gives additional capacity to the construction sector and has helped us grow our non-motor book over the past seven or eight months,” he said. “Our plans are still to look at other covers so we can offer a full range and we will build that up gradually. We have taken on a couple of new brokers which has meant growing our workforce to 15.” Vincent says the business has plans for another couple of staff this year to meet growing demand. One of the advantages Amet offers is having direct access to an insurance giant such as Liberty, he says. And while he says the company, like thousands of others out there, has taken a fresh look at its operation amid the Covid-19 crisis – such as office requirements and home working – Vincent says the company has been consistently busy through lockdown and beyond. “We haven’t stopped. From mid-March we were already set up to start home working. Some of our staff would have already been working from home a couple of days a week. We work through the cloud so it’s been very easy to get our workforce set up – we have

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The level of flexibility has meant the Amet team can work as hard, if not harder, while not based in the office, through the use of flexible working.

“Service wise we have continued to be very busy. Claims continue to come in and we continue to deal with them as we always have. The only thing that we’ve seen is a bit of a drop off in some sectors, such as passenger transport. “Within transport and logistics, haulage firms still need to be out on the road and we are helping those firms to make sure they can stay on the road. “We have also started writing some council business and additional public sector work. We have now expanded into the liability and motoring side of that – it’s something we had wanted to get into for a while.” Vincent reiterates what helps set Amet Insurance Solutions apart, and also, retain long-term clients while continuing to expand and work with new ones, is its in-depth knowledge and direct face-to-face contact. “It’s about our local knowledge and expertise,” he says. “We do everything under one roof – that includes claims, underwriting and accounts. You don’t have to go anywhere else and you will always speak to the people making the decisions.” Vincent is also now president of The Insurance Institute of Northern Ireland. He says one of the battles the industry is facing is retaining top talent here. But it’s something he prides himself and his company on.

here, keep employing people and keep the insurance industry going forward. “In many cases, there is a dearth of people coming into the industry. But from Amet’s point of view, sevice levels are key. It’s about dealing with a claim or an issue right here and having a tight unit of brokers.” The company has also undergone a rebrand – providing an updated fresh and professional look to an already professional and well-established outfit. “We thought it was time to freshen things up,” Vincent says. “We want to show we are a professional outfit. We want to make sure it looks modern and fresh. “We want to make sure that people know who they are talking to, how professional we are, but also, how approachable we are. It’s also about keeping our traditional values – broking face-to-face.” As for the year ahead, while Vincent appreciates the wider challenging economic and societal landscape that faces us all, Amet will continue to grow and cater for the ever-changing needs of a wide variety of sectors and needs. “We still see growth and have targets to push forward, but they may just be reduced down a bit. Looking at retention, it’s very strong, but we also expect growth in the market – it may just mean a different way of working. “I can’t see the insurance sector changing too much. People still need to be out on the road – moving, manufacturing and building. There are certain products in the market which will continue to develop such as cyber, however our focus is on our product offerings and service.” “We want to try and support the sectors here as much as possible. It’s about keeping people and companies on the road and having the ability to do business.” ■

“The insurance industry is trying to keep local talent – other composite insurers are moving things away and drifting out of Northern Ireland. But we keep it here, keep the talent

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PLANNING

NI planning schemes waiting for decision 15 years on Infrastructure Minister Nichola Mallon

“Shaking up our planning system and transferring powers to determine regionally significant and called-in planning applications from the department to an independent body is something that we must be prepared to consider. (This should) form part of the imminent planning review.” Mr Muir, an MLA for North Down, said: “Northern Ireland should be leading the way (in planning), not dragging our heels with delays and overspends. “The recent Northern Ireland Audit Office report on major capital projects points to the need to change how public sector infrastructure projects are delivered on the ground. “(This) merits swift and proper consideration of establishing an infrastructure commission like other parts of the UK already have.”

lanning applications lodged as far back as 15 years ago are still to be decided by Stormont, it can be revealed. Around 40 schemes are sitting on the desk of Infrastructure Minister Nichola Mallon for a decision, including two dating back to 2005. Three other applications date back more than a decade to 2009, while around 20 others range from two to five years. The delays point to a “planning system in need of reform,” according to Alliance MLA Andrew Muir. He wants to see a new body set up to deal with major applications, currently handled by the Department for Infrastructure. The oldest application still awaiting a decision is one submitted for a landfill facility in Co Antrim, dating back to 2005. The application includes the construction of a waste transfer and recycling facility for construction and

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demolition, located in Parkgate Quarry. It has received a lengthy list of objections over the years, including representations as recently as 2019 following the addition of fresh environmental information from the applicant. The latest figures were revealed in an Assembly question by Mr Muir. Planning powers were devolved to Northern Ireland’s councils in April 2015. Significant functions were, however, retained by the Department of the Environment, now the Department for Infrastructure. “The list of planning applications awaiting a decision points to litany of delays and a planning system in need of reform,” Mr Muir said. “We can’t continue with delays like this. Investment in infrastructure is being held back by government just when we need these projects to progress and stimulate our economy to safeguard jobs and livelihoods.

Some of the other outstanding decisions, a number of which have also been dealt with by the Planning Appeals Commission, include a wind farm outside Newry and a solar farm close to Ballymena. A spokesman for the Department for Infrastructure said: “There are applications that have been with the department for a considerable time. “This is indicative of the inherent complexity and often controversial nature of some of these applications. “The department cannot give a precise timescale for the processing of some of the longer delayed applications, particularly where they are at the hearing or public inquiry phase, as is the case with the 2009 applications. “However, the minister has been clear that applications need to be moved to a conclusion as quickly as is reasonably possible, particularly given the role of planning in aiding our economic recovery from the current pandemic.” ■

PLANNING

£400m Waterside given outline green light It’s claimed the development could create over 8,000 jobs and provide homes for more than 1,500 people.

£400m development of the former Sirocco site in Belfast has been given outline planning permission. The Belfast Waterside plans would see the huge former Sirocco site turned into a mixed-use development, including apartments, office space, hotels, retail and hospitality.

Developer Osborne+Co (Swinford Sirocco Ltd) has estimated it could create 875 full-time jobs during construction. The full framework for the 2.6 hectare site explains how it will be opened up through extensive public realm works, including a new street network and linear park, the removal of existing boundary walls, landscaping, a replacement pedestrian bridge over the River Lagan and improved access to both Short Strand and Bridge End.

forward in Belfast’s regeneration; bringing a total £400m of investment and potentially creating over 8,000 jobs – that’s 20% of the jobs pledged in our community plan, the Belfast Agenda,” John Hussey, chairman of Belfast City Council’s planning committee, said. “The Belfast Waterside development will transform a key site which has been out of use since 1999 – providing new space for city centre living and high quality office space, as well as much needed affordable housing units, ensuring it becomes a place for everyone.” ■

“As the city starts to reopen and begin its journey to recovery, the development of Belfast’s Waterside will mark a significant step

Public inquiry over planned Co Tyrone gold mine

gold mine proposed for Co Tyrone will be the subject of a public inquiry.

Infrastructure Minister Nichola Mallon said the planning application for the Dalradian mine project should have “robust scrutiny”. The Canadian company wants to open the mine in the Sperrins and claims there is up to £3bn worth of gold deposits in the area near Greencastle. It said that the 25-year mine operation will ultimately support 1,000 jobs and provide a £750m boost to the economy. However, the project has been opposed by environmentalists and residents of the area, who fear it will spoil the scenic beauty of the Sperrins and damage the countryside.

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Announcing the public inquiry, Ms Mallon acknowledged it was a “complex” project. She said: “The planning application for the Dalradian gold mine project at Greencastle, Co Tyrone, was submitted to the department in November 2017. “Revised proposals including the complete removal of cyanide from any part of the application process were received in September 2019. The application has proved to be complex and in excess of 40,000 representations have now been submitted to

my department about the mine proposal. “The planning application includes an assessment of the potential socioeconomic and environmental impacts by a wide range of expert consultees. Before any decision is taken I consider it important to have a public inquiry and report which has independently considered the views of stakeholders, including the local community and other government departments, and which will robustly scrutinise the information provided by all interested parties.” ■

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BANKING

Banking through coronavirus: digital with a human touch How we bank has changed rapidly in recent years and the challenge posed by Covid-19 has accelerated that change. Aisling Press, Danske Bank’s managing director of Personal Banking, looks at what the future of personal banking holds

he coronavirus pandemic has caused many aspects of life to change and banking has been no exception, with lockdown measures forcing many people to embrace digital banking more fully or for the first time. Having already invested heavily in its digital capabilities in recent years Danske Bank has been well placed to remotely meet the needs of customers, but it too has accelerated the use of technologies such as video meetings and web based solutions. Aisling Press, the bank’s managing director of Personal Banking, describes the bank’s response to Covid-19 as a human response with digital enablement. “All of our focus has been on people during this crisis. Our priorities have been providing a >

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BANKING

safe working environment for colleagues and a safe banking environment for customers. We’ve undertaken a significant amount of training, digitally, to enable colleagues to do meaningful work in the current situation, and to be accessible to customers and engage with them safely,” she says.

households and individuals, we knew we had to make it easy for our customers to bank with us, whether that was through online banking or our contact centre. We had to make sure we had appropriate solutions and that no matter what customers were worried about, we were available for them.”

“The vast majority of our people are working from home, including a lot of our front facing teams as well as head office functions. To ensure we were there for our customers who needed us, others were asked to come out to the frontline during what was a very worrying time and I am very proud that we’ve kept all 40 of our branches open throughout.”

Danske took a number of steps to help customers in the early days of lockdown, arranging mortgage payment holidays for over 5,000 customers online and by phone and personal and credit card repayment holidays for over 600 customers. The bank provided further support by waiving interest on overdrafts for personal customers in March, April and May, and as a measure of continued support waived interest on the first £500 of overdraft balances during June and July.

ROLE IN SOCIETY Previously head of branch banking at Danske, Aisling assumed responsibility for all aspects of personal banking in the midst of the lockdown, including the bank’s awardwinning contact centre, Private Banking service and mortgages. She sees it as a fundamental part of Danske Bank’s role in society to make everyday banking accessible to everyone and believes the bank has proven in recent months that it is there to give both financial and non-financial support to customers. While footfall in branches was down 50%, more than 1,000 staff across the business were cross trained to help meet increased and new customer needs and demands. Calls and secure mails to its contact centre increased by 30% at its peak... but training and committing additional resource kept the abandonment rate for calls to the service very low. “We introduced additional measures to help customers in difficult circumstances including dedicated phone lines for older customers and NHS workers; dedicated lines for businesses wanting bounce back loans; and launching the ‘Check In and Chat’ team, who proactively reach out to check older customers or those in vulnerable circumstances are OK,” she says. “With clear guidance that going out in public should be considered only for essential services, and even then, restricted for many

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“We understand this is a really uncertain time. Financially people were worried, so we knew we had to put measures in place to give them time and space to work out what the crisis meant for them,” Aisling says. The bank also continued to draw down all mortgage completions committed to before the crisis and intends to respond to ongoing market demand by offering competitive mortgage products in the months ahead. Danske created a new carer’s account and a trusted friend cash solution, which enables another person to access essential banking services on a customer’s behalf in a secure way. It has also created a Step by Step guide specifically for older customers to help them do their banking safely from home. The bank’s own teams have stepped up to help those in need by volunteering with local food banks, fundraising and preparing care packages for their charity partner, Extern, and even doing a food shop for an elderly customer who they discovered was being defrauded by a family member. ADOPTION OF DIGITAL It’s clear that the coronavirus lockdown has accelerated the adoption of technology – the number of parents and grandparents now using Zoom, Skype and FaceTime every week is testament to that.

The same has happened in banking and while Aisling says Danske’s customers have chosen to do more digitally, through its website and secure mail and chat, it has also realised the need to continuously develop solutions. Many of us have been opening accounts, checking balances and making payments online for years. But coronavirus has seen the bank introduce new services on digital channels and identify others that they have an accelerated ambition to deliver digitally. Acknowledging that conducting face to face meetings, safely, with customers and colleagues may be a challenge for some time to come, it is also developing solutions for things like mortgages, private banking and personal loan meetings in the virtual world. If customers ask for appointments, they will be offered video calls and where customers arrive in branch they too may be offered a video meeting. “We have a principle of dealing with all customer needs at first point of contact and we want to continue to do that but do it safely. We have installed video calling equipment in some of our branches and want to install it in all of our branches, so that customers can still have a face-to-face, in-branch interview experience without being at risk.” While branches have screens, social distancing signs and sanitiser in place, Aisling says Danske Bank is looking at how it can best provide services in the future. “With social distancing likely to be with us for the foreseeable future, we are looking at digitalising more customer journeys and creating more online products and services. That might mean what we do in branches changes over time, with digital the solution, and our expert advisers showing customers how to use tech and supporting them in using it. “We tend to shape our business around how customer behaviour changes. We haven’t forced customers down a digital route but will keep reviewing our services based on what customers are doing.” ■

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INTERVIEW

â&#x20AC;&#x2DC;There will be carnage out of thisâ&#x20AC;&#x2122; Pat McCann says hotel group Dalata, which owns a number of hotels in Northern Ireland, will adapt so that it can take advantage of the inevitable opportunities in the months ahead, writes Sean Pollock 122

INTERVIEW

at McCann is a man on the move. The chief executive of Dalata, the Dublin and London-listed owner of the Maldron and Clayton hotel brands, has a busy schedule traveling across the country ensuring his business keeps up with the demands of Covid-19. “We are alive and well,” Pat says of his experience through Covid-19. “Everything else is a bonus. It’s been OK, obviously a million miles away from what we are used to, but it is what it is.” The pandemic was a bolt from the blue for 68-year-old Pat, who founded Dalata in 2007. The hotel group owns 44 Maldron and Clayton hotels across Ireland and the UK, with a further 11 at various stages of development. Despite Covid-19, Pat says the company is still in good health. With a healthy balance sheet, he believes Dalata is well positioned to thrive. Even with a dose of optimism, Covid-19 has had a significant impact on Dalata. For the first quarter of 2020, revenue per available room on a ‘like-for-like’ basis decreased by 24.3% at its Dublin hotels, 14% at its regional Ireland hotels and 18.6% at its UK hotels. Pat said occupancy levels are sitting at between 35% and 40% across the group, with his rural hotels performing better than those in Dublin and London. “Certainly, we are pleasantly surprised with how we are trading,” he says. “We are actually somewhat ahead of our numbers in terms of where we expected to be at this point in time. “I don’t want to over-promise and say ‘everything is wonderful’,” he adds. “It is far from wonderful.” Having experienced challenges such as the oil crisis in the seventies, the Gulf War and two recessions, Pat knows a problem when he sees one. In 2011, the then 51-year business veteran said in an interview that the prior three years of the global financial crisis had been his toughest in business. Today, he admits the past three months have been worse. In 2007, he set up Dalata, and he hasn’t looked back since. “To find something that you love has been fantastic,” Pat says. “I talk

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to a lot of people who can’t wait to retire; it’s the furthest thing from my mind. It has kept me young.” Despite recognising this trading period as being his most challenging, Pat has high hopes for Dalata compared with others in the tourism and hospitality space. It hasn’t been plain sailing. Pat recognises the work and sacrifice which has gone into keeping Dalata on an even keel through the Covid-19 storm. During the lockdown, Dalata kept some of its hotels’ doors open for frontline workers, with the company running around 1,000 rooms a night. It was also forced to lay off around 3,500 people. Despite being “pleasantly surprised” with how customers have returned, Pat holds concerns over the impact of Covid-19 on Ireland’s tourism product, particularly for coach tourism. “It has been pretty desperate for them,” he says. “I think what people don’t realise is how important the coach tourism is to the entire Irish tourism product and how we all benefit from it. “When I look at Dalata, we have a huge dependency on the tour operators. They form a critical part of our business, right across the spectrum, whether it’s our city or regional hotels in both Ireland and the UK.” Pat says coach tourism would account for around 15% worth of business at one of his typical Dublin hotels, with further activity, such as events, some of which also relies on coaches. “What we need to make sure is that all these guys are around when the market starts to open back up,” he says. “We need them there, and we need them supported to be there. They give big employment, and the knock-on effect is substantial.” Key to the issues faced by the coach operators is the lack of international tourism. This has also hit Dalata, with the hotel group and the industry typically taking 70% of its visitors from overseas. He recognises the international part of his business is gone this year, and he doesn’t expect it to recover again until 2022 fully. He thinks the company can sustain itself at the current levels with the domestic trade – “but it won’t grow”

without international, he says. Further issues are ahead for Dublin hotels, Pat says. Before Covid-19, it was generally accepted that there were not enough hotel rooms in Dublin to match the demand. Pat believes this has now turned on its head, with some projects – though not his own – set to pause or stop. As Pat looks ahead with hope, he says lessons of the last global recession will stand Dalata well. “The last one was about debt and over leverage,” he says. “Thankfully, we have learned some lessons around that.” He recalls a conversation with a big corporate bank last year in London during which it called Dalata’s balance sheet “lazy”, adding it had too many assets and too much cash. In April, Pat gleefully decided to remind the executive about the comment. “I said to them, ‘who’s the happy fella that he had a lazy balance sheet last year’ because boy did this stand to it. That was deliberate on our part. We are always conservative with how we manage our balance sheet because we have learned the lessons”. Pat said his team is working as hard as ever. Dalata could also swoop on some of the opportunities from the crisis. “Our plan is to be strong and in a position to take advantage of some of those casualties,” he says. “Now, what they will be or where they are at this point in time, I have no idea. But mark my words; there will be carnage out of this.” With Pat staring the inevitable recession down, he is still focussed on pushing forward. Calling himself a “relentless optimist”, he feels his team is ready to push Dalata over the line. “There are going to be challenges ahead and some dark days,” he says. “That doesn’t mean to say that fundamentally everything is broken, because it’s not. It’s about then how we can adapt as a team of people to make this work for us. I have come through so many crises in my career,” he adds, “but they always come to an end.” ■

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PODCAST

The Ulster Business

Podcast with

The Ulster Business Podcast with Bank of Ireland UK has now landed more than 4,000 listens and is almost 20 episodes in after launching earlier this year. We take a look back at some of the recent highlights EPISODE 14 – RAJESH RANA, COLIN NEILL AND JANICE GAULT

elfast and beyond was bracing itself for busy bars and restaurants boasting big queues ahead of reopening in July. But some say there must also be long-term government support for those that are too small to cope with distancing. Rajesh Rana, director of Andras Hotels, told the podcast in June, optimistically, that “there will be queues outside every pub in Belfast” at 11am on July 3, when bars which serve food or have an outside area are allowed to reopen. But there remain fears that small bars which cannot operate with social distancing may never reopen. Colin Neill, chief executive of Hospitality Ulster, said: “What we have been asking the Executive for is to give us a date for ‘wet pubs’ reopening. “They see it more high risk than food only. If they are all table service, that should alleviate any problems. “It’s really important that government gives us a date. Regrettably, I do think this virus, and therefore social distancing, will be here for a very long time. We need government to help those businesses which just physically cannot reopen.” Janice Gault, chief executive of the Northern Ireland Hotels Federation, said while “everyone is looking forward to coming back”, there is a “little bit of nervousness around it”. “We have discovered that people miss the type of product we provide,” she said. But many spots, even those which are technically able to open their doors to serve food, will not open this weekend. “The days of the shoulder-to-shoulder pub and back-to-back restaurant will not be with us for a while,” Mr Neill says. Mr Rana, whose company owns hotels such as The Crowne Plaza and Ibis in Belfast, said while the “core of hotels won’t have changed”, customers will start noticing differences. ■

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TITLE PODCAST

orthern Ireland’s airports and demand for flights may not return to some form of normality until spring next year, it has been claimed.

EPISODE 12 – JENNIFER MCKEEVER AND PAUL CLANCY

Jennifer McKeever, who owns the Airporter bus business, said she’s hopeful her business will restart this summer but that the appetite for wider flying, whether domestic or international, is not likely to return until April 2021. “Truthfully, it would be next spring,” she said. “There will be a return to travel and we are anticipating being operational again this summer. “I think there will be pent-up demand and lots of families haven’t seen each other - there have been birthdays missed, grandchildren arriving, and celebrations.” Ms McKeever was speaking on the Ulster Business podcast, along with Londonderry Chamber of Commerce boss Paul Clancy, about what impact the Covid-19 crisis has had on the north west. “We are one of those businesses which did close,” she said. “That week between March 16 and 20 was just a colossal shock to all sorts of businesses. “We were a bit of a canary in the mine because we could see we were going to cease business in a matter of days, so we are, and have been,

one of those businesses which have been completely closed and staff on furlough.” Mr Clancy said while many businesses in Derry were ahead of the curve and prepared for lockdown, it was a “huge shock”. He said reopening will be focused around “getting as much money spent in the local economy as possible”, and while some firms may not survive there are opportunities, including creating employment following the announcement of the new proposed medical school, and increased demand for PPE. ■

stage because it was a major area of growth for Northern Ireland. “We need to invest to make sure we have the right attractions as well, but it (the city) will be different. Ms Wylie, who is one of just a handful of core staff working at City Hall, said that while there would be job losses, a focus on reskilling would help people who found themselves out of work. She is also keen to see a greater number of people living in the city centre – a goal that has not changed despite the coronavirus pandemic.

EPISODE 9 – SUZANNE WYLIE

elfast will emerge from lockdown as a “different but bustling city” with an emphasis on sustainability and investment in opening up public spaces, the chief executive of the city council has claimed. Suzanne Wylie told the podcast in May that the council wanted to transform the city to help both the public and businesses. “We want to redesign our city centre with lots of independent businesses – that’s what attracts people in,” she said. “We want it to make better use of public space, places where families will want to spend more time. We need to get tourism back at some

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While accepting that job losses were a major concern, Ms Wylie said the council and other bodies should be using this time to examine “jobs of the future”. “There are some people who have been in work in the city. The next step is for those who can’t work from home to come in to work,” the chief executive explained. Ms Wylie said it was also “time to stand back and look at where we are making investments and what our economic strategy is”.can work, here is how a pub can work’.” ■

Listen to the podcast at www.ulsterbusiness.com/interview, on Spotify, SoundCloud and iTunes

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FLEXIBLE OFFICE

onna Linehan has worked in the Scottish Provident Building for nearly 10 years. Having come from the hospitality sector and front of house at the Europa Hotel, she knows a thing or two about how to look after people and that is borne out in the reception and service clients receive through VenYou. We all know it’s been strange times of late, and when the building closed its front doors as lockdown ensued in mid-March, no one really knew what came next. Thankfully the Scottish Provident Building is once again open with additional measures and protocols in place. For many, it is now more important than ever to ensure that people can work in a safe and secure environment as companies and people wrestle with what the workplace looks like. “Life has changed, and no one really knows what the new normal is,” Donna Linehan, client services director at VenYou, says. “We still have some of our tenants working from home, but I’m delighted that many have returned to the office, with some even utilising a combination of both working from home and the office. “I’m one of those people who needs structure and social interaction and I really like what I

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Scottish Provident Building is the right VenYou

do. So, since we reopened our front doors at the beginning of June, it was full steam ahead and we have seen companies and people return to work steadily and the occupancy of the building grow. I’ve even had a company move in, numerous new people call or come for a viewing, as life for them during lockdown has presented either a challenge or an opportunity for them.

open plan building. It was built by architectural firm, Young and Mackenzie in the early 20th century. As a result, it is a very beautiful building that will charm just about anyone with lots of individual rooms, which take two to eight desks. We do, of course, have a few larger spaces and I love our outside terrace as well. The building really lends itself to social distancing and ensuring a client has their own space.”

“We’ve had new clients who want to move from leasing a building to something more flexible, we’ve had companies move just because they fell in love with the building, we’ve had companies looking for extra space to help with social distancing and we’ve had those who sadly want a smaller space because of the impact on their business. I’ve really seen all aspects and I’ve loved the fact that I’ve been able to help the majority of them.

Last year saw reports that indicated an eightfold increase on the use of serviced offices going forward. It is clear that the pandemic will have an effect on this projection.

“It was also really important to me to ensure that our tenants and clients felt this was a safe place to work. So we’ve invested and installed many new features including a one-way system, a foot pump sanitiser in reception, as well as sanitisers on all of our floors at all of the lifts. Key touch points are cleaned regularly. We’ve new protocols for our housekeeping staff and the delivery of post. “We are also very fortunate in that this isn’t an

“Belfast has been a growing and thriving city for many years, but we are a resilient bunch, and we will bounce forward from this pandemic,” Donna says. “At the Scottish Provident we have a lot going for us, including our VenYou service, which ensures that any client has a bespoke business solution. We will continue to do our very best to service the needs of our wonderful clients, so that they can grow their business, pandemic or not.” ■

For more information, contact Donna Linehan, client services director on 028 9091 8500 or visit www.venyou.co.uk.

INTERVIEW

â&#x20AC;&#x2DC;Nothing will ever be the same againâ&#x20AC;&#x2122; Dr Peter FitzGerald speaks to John Mulgrew about developing and helping roll out millions of tests for Covid-19, a forever changed society, the high likelihood of a similar pandemic returning and when a vaccine for the virus could be found Dr Peter FitzGerald

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INTERVIEW

r Peter FitzGerald’s expertise and opinion has probably never been taken as seriously as it has in the last few months. “Nothing will be the same again,” he tells Ulster Business. And, of course, he’s right. His firm Randox – based in Antrim – has been on the front line of testing for Covid-19 right across the UK and beyond. And as a result, he’s hired hundreds of new staff and built a £30m testing lab to deal with additional deluge of work resulting from a global pandemic unlike anyone here has ever seen. “I think there is a reasonable chance there will be more pandemics, with globalisation and increased population,” he told Ulster Business. “I have no idea how much it will come back again in second wave. “We know we have the capacity as a company to respond, and respond well. I suspect the country is going to be better prepared… it’s hard to predict.” The medical testing giant’s first involvement with the current coronavirus strain began back in January, before it became an increasingly concerning dinner conversation in homes across Northern Ireland. “In late January, research called and were looking at doing a test,” Peter said. “We downloaded the genetic sequence of the virus and spent the next two weeks developing a test. We can do it very quickly, as we already had coronaviruses on chip. “It was sent to Public Health England, which took a while to prove it. We then got a contract to test for the NHS… we were doing what we thought was for the national good.” The initial deal didn’t include all of the UK, but Randox is now also testing Northern Ireland. “We do the testing and we have different analysers that do the testing as well, which we sell to labs across the world.” The virus has led to a new complete lab being built (in which Peter is pictured in) to deal with the additional testing. “We decided to accelerate the manufacturing in our Randox

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Science Park in Antrim,” he says. As a result, it has hired around 200 staff in the space of six to eight weeks to deal with the surge.

while other areas around Covid-19 have grown. “Only a small element of core business decreased. But our Covid and other genetic products have increased… overall sales will be up and by end of year normal business up as well.”

“Because we had closely related strains of the virus, it was wasn’t so difficult to modify our tests to allow for slightly different variations… once we got the contract we soon realised that we didn’t have enough lab space to deal with the ramp up.

As a result of the latest expansion and growth across the business, generally speaking, Peter says the workforce looks set to climb to 1,650, with around 500-600 based at its main headquarters, just outside Antrim.

“We then decided to be 33,000 sq ft of new lab space, and it was needed in three weeks. We got that done – work was 24 hours a day, and seven days a week. It’s now operating well. That has been very important in the process.”

Peter’s also keen to reiterate the importance of Northern Ireland and its people to Randox. “This is our home base. It’s where we do our primary R&D and manufacturing. We also have a facility in Donegal.”

And, could all of this happen again soon, with a further outbreak or a similarly devastating strain or pandemic?

“A lot were being taken on a temporary basis but many will be permanent. We are not sure of the final numbers, but well over 100.” Those roles include scientists, manufacturers, and engineers. “Nothing will be the same again,” Peter says. “What it has done is heightened the importance of testing. People sometimes don’t know what we do here at Randox… but people now realise. “In the end, it’s a good thing. We are advocates of testing. It identities disease before symptoms occur and can save lives in many occasions. It saves lives and saves costs. It fits in with what we have been trying to do for years… as far as we are concerned, it’s the silver lining. “We have customers worldwide and other products kept going. We moved around 100 scientists into Covid-related things and then they have gone back to normal jobs as we bring in new people. “Some of our R&D projects have changed, new systems and new analysers allow for efficient and accurate testing.” Peter says that just a small element of the business has seen a decrease amid the crisis,

“(We are) more prepared and our technology is getting more accepted through bio chips. Early detection is a very important next stage. You don’t want people who have a cough or fever to think they have Covid all the time. That is where testing comes in and that differentiates.” Peter says the next stop forward in a bid to address similar future incidents it also understanding how our immune systems work – better. “The other major step forward in many ways is understanding the immune system better. How to better respond to infection. This will be very important. “Some people are susceptible, and this could be genetic. (It’s about) working on certain genes in those who may have a bad attack. It will prepare humans better, the body’s defence, dealing with it as well. “I have a deficiency in a particular gene which means I’m more susceptible to respiratory (conditions) but the spin-off of the gene means I’m less susceptible to certain cancers. This is the issue – it is so complex. One could be a strength and one moment, a weakness.” And as for the formulation of a proven vaccine, Peter says: “I would say it would be well into next year.” ■

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TOURISM

‘£200m NI tourism hit’ from coronavirus so far N

orthern Ireland’s tourism sector has lost around £200m so far due to the Covid-19 crisis and won’t return to pre-virus levels for several years, a tourism chief has warned.

And John says an ambitious target to double tourism spending to £2bn a year by 2030 is now out the window and that regaining our pre-virus spending is now the realistic target in place over the next three to four years.

John McGrillen, chief executive of Tourism NI, says he doesn’t believe international tourism will truly return to these shores until spring 2021. He says the effective four month shutdown of tourism here has left a £200m dent in the economy.

But speaking on the Ulster Business Podcast he says because around 75% of our sector here relies on the rest of the UK and Ireland, that we may not feel the long-term hit as strongly as other areas, such as the Republic, which relies heavily on tourism from other areas such

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as the US and Europe. And he says as Northern Ireland still offers a good tourism “product” it will encourage people from here to holiday at home – injecting some much-needed spending into the tourism and wider hospitality sector. “We have seen a freezing of the world’s tourism industry and not just Northern Ireland,” he said. “All global connectivity has more or less just stopped. There is no likelihood

TOURISM

reopening of much of Northern Ireland’s hospitality sector is a positive step, that it may still take some for people to begin returning to businesses here. “It’s difficult to predict. People have been told to stay at home for four months. I think people are still reticent (about) going out. It’s a bit difficult to get a sense of how long it will take to recover. “What we do know is about 57% of people on the island intend to take a break on the island of Ireland. With a little bit of luck, when we see some of the connectivity return to the UK, we may be able to drive some business out of the UK in August and September.” John also says that around 40% of visits from GB happen outside the busier peak season. “We will see virtually no European business and no American business this side of Easter next year, I’d imagine.” He says there “appears to be demand” for international travel, looking ahead to 2021 and 2022. “But will the connectivity be there to allow people to come?” he says. “It all depends on when air routes get reintroduced. “We have seen a substantial contraction of virtually every airline in the world. They won’t have the same number of flights.” John McGrillen, with Jonathan Topping and Des McCann of Clayton Hotels helping launch the new safety mark

Looking ahead to Tourism NI’s ambitious target of doubling annual tourism spending to £2bn by 2030, that’s now no longer realistic. Northern Ireland welcomed around three million tourists during 2019.

about people coming in from overseas. “In effect, the tourism industry in Northern Ireland has been closed since March. The only revenue flowing through nay doors up until now being the looking after of essential workers. (Some) hotels had stayed open to allow that to happen. “I would imagine, we are looking at a loss in the region of £200m to the NI economy over that period of time.” He says while the

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“I think that’s really hard to tell, but we would have been doing fantastically well if we would hit those targets by 2030 as previously predicted,” he said. “We are back to a resetting. Virtually every tourism industry is starting from zero. “I think a more realistic target will be how do we get our industry to recover to the point it was at in 2019.

“I think realistically 2023/24 being the timescale that we might get to that point.” But he says to some extent, Northern Ireland is somewhat cushioned over other regions as it doesn’t rely as heavily on visitors from Europe, the US or further afield to prop up its tourism offering. “(The reliance) is not as great as it is in the Republic,” John says. “That’s partly due to a lot of the connectivity from Europe and beyond has been in to Dublin, and Dublin captures a large chunk of that market,” he says. “That accounts for about 25-26% of all tourist spent in 2018/19. So around 75% came from within the British Isles where we are hoping to see connectivity come back more quickly.” Meanwhile, Tourism NI recently partnered with the national tourism bodies of England, Scotland and Wales to roll out a new UK-wide industry standard and consumer mark to provide reassurance to businesses, customers and communities that safe working guidelines in relation to Covid-19 have been adopted. More than 400 business have signed up to date and, with the tourism and hospitality sector re-opening over the weekend, John McGrillen has paid a visit to the Clayton Hotel in Belfast, The Culloden Hotel in Cultra and Brunel’s restaurant in Newcastle who were among some of the first businesses to register.‘ The ‘We’re Good To Go’ scheme allows businesses to sign-up and commit to implementing the relevant Government and public health guidance, including undertaking a Covid-19 risk assessment for their business. Businesses can in turn use the licensed mark as part of their communications. To obtain the mark businesses must complete the registration process through the ‘We’re Good to Go’ online platform and will go through a number of steps to verify they have put the necessary processes in place to re-open safely. ■

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TOP 100

The twists and turns ahead for hospitality With the publication of the Ulster Business Top 100 Companies 2020 list, Janice Gault, chief executive of the Northern Ireland Hotels Federation (NIHF) looks at the hotel and hospitality sector as it begins to reopen and what’s in store for a sector undergoing an evolution

ver the last decade tourism has grown considerably with the sector tipping the one-billion-pound mark in 2019. Indeed, a number of firms relating to the hospitality sector feature in the Ulster Business Top 100. In normal circumstances, commentary would have been about the significant £600m investment the hotel sector had made, new projects for 2020 and the next phase for the industry. The sector had begun to feature heavily in economic outlooks and was gaining recognition as a job rich sector, driving the local economy forward. The forecast for 2020 was that it would be a year of uncertainty with considerable challenges. The general consensus was that growth would be minimal given the constraints that were emerging, and it would be a year of consolidation, rather than one of expansion.

into Europe and on to America leaving a trail of destruction. Tourism and hospitality were left reeling in its wake with the industry going into lockdown. Hotel businesses in Northern Ireland were ordered to close on March 25 having staggered through a very difficult couple of weeks. After fourteen weeks in hibernation the hotel sector in Northern Ireland returned to trading on the July 3, 2020. About 50% of Northern Ireland’s hotels opened their doors on the first weekend and current reports suggest that the majority of hotels will re-open by autumn. These are tentative steps and there are strict conditions in place which in the short term will make trading difficult. Hopefully, as the threat of Covid-19 subsides, these will be relaxed, and we can return to a more normal situation.

In January, after a bruising election, the issue of Brexit was taking centre stage. As we move through 2020, it’s a very different tale to tell. Brexit, while still on the horizon, has faded into the background though its impact on the local economy is unlikely to be positive.

Closure for the hospitality sector was swift. Support over the course of lockdown in the form of the Coronavirus Job Retention Scheme and a rates holiday was widely welcomed. It’s been an emotional journey, from dread to despair, and a well-documented fight to reopen.

Coronavirus, the lockdown and the closure of tourism is the sad story being repeated around the world. The pandemic swept through Asia

There have been many challenges to get to this point and there will be issues ahead. The industry has shown ingenuity and tenacity

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since March, approaching the reopening phase in a responsible and determined manner. As unlocking continues, the need for additional support is becoming apparent. Hotels will be trading for the foreseeable further with limited income streams, additional costs, and a reduced customer base. Business viability is of concern and is likely to a major agenda item for the sector in the coming year. Many questions surround the ‘new normal’ for the hotel industry and while I’m not sure that there is a collective noun for an ever-ending series of questions, perhaps an inquisition or even an interrogation, questions certainly abound. The sector is emerging slowly from an unprecedented situation. As an industry we see the hotel occupying a unique role in society, offering respite and relaxation, as well as helping to restore the local economy. Hotels have been working hard to ensure that their proposition is a hospitality experience and not reminiscent of a “hospital’ environment. This a balancing act, trying to strike a happy medium, between creating and showing that a hotel property is a safe and sanitised environment. Delivering a relaxing stay is quite the feat. To date, the ‘new’ hotel experience looks very like what it was before, albeit with some face

TOP 100

masks apparent, increased evidence of cleaning and some changes to the flow of guests through the building. The hope is that the ‘après’ lockdown night away will prove popular and customers will appreciate being able to enjoy dinner out or an evening away. From personal experience, I found it a little emotional, somewhere between seeing an old friend after a very long time and heading out on a first date. Given the constraints on travel and possible quarantine control, so-called ‘staycations’ appear to be the name of the game for 2020. The success of the ‘staycation’ will be to make sure the guest feels that going local is a choice and not an option that has been foisted upon them. It needs to be a great experience and one which hopefully affords us the opportunity to build trade in the coming year. In 2019, the domestic spend in Northern Ireland from inhabitants of the region was in or around £300m with locals spending £888m on trips abroad. In the short term, if we can convert even a small portion of this international spend to local breaks, it would be a great result. However, it is important to note that we have a considerable piece of work to do in converting the local guest’s psyche. A sustainable outcome would be that a ‘staycation’ becomes part of the domestic holiday pattern which builds in coming years. The hope would be that we can encourage the domestic tourist to embark on a long-term relationship with the local hotel sector and not see it as a one-year wonder. In the medium to long term, as the risk of Covid-19 subsides, the aim would be to attract international business once again. This will improve business viability and restore trading to growth mode. Forecasting or creating detailed plans is not a worthwhile exercise at present as there are simply too many variables. Hotels represent a considerable capital investment and are committed to the local community, both financially and on a socioeconomic basis. The sector has shown a resilience in the past which will hopefully stand it in good stead. No doubt there will be twists and turns on the road to recovery but hoteliers are at the start of a new era and will continue to make the best of the situation. ■

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NEWS IN BRIEF

Belfast group to produce zero emissions ferries

NI firm Cirdan acquires Belfast arm of Philips

A consortium is developing new zero emissions ferries in Belfast after securing £60m of funding.

Northern Ireland medical imaging firm Cirdan has bought over a Belfast-based business owned by global giant Philips.

The group, led by Artemis Technologies, has won a £33m UK Government innovation grant to develop zero emissions ferries in the city, that it says will “revolutionise the future of maritime transport”.

The company has taken on the Dutch firm’s medical tech business, formerly PathXL. The firm started out a spin-out from Queen’s University in 2004. Cirdan was set up by Dr Hugh Cormican and now has offices in Canada and Australia, specialising in developing technology that supports and speeds up diagnosis, primarily used by those working in pathology. Dr Cormican also founder specialist camera-maker Andor. Philips PathXL’s digital pathology, image analysis, deep learning and educational tools will “complement Cirdan’s existing offering, and the synergies of both products and staff will significantly enhance opportunities to serve their customers across the world”.

Queen’s launches free course for those losing jobs Queen’s University in Belfast has launched a free online part-time course to help upskill and retrain people who have lost their jobs due to the coronavirus pandemic. The Department for the Economy will fund 100 places on the postgraduate certificate in operations and supply chain management, offering training for those who have either been “furloughed or lost their job due to the pandemic” “Queen’s has an important leadership role to play in supporting those sectors of our

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Dr Hugh Cormican of Cirdan

“We are excited by the prospect of being able to further invest in our laboratory informatics business with this acquisition,” Dr Cormican said. “We have shared a close relationship with key members of the PathXL team over many years and are looking forward to combining our products and resources to bring the best of each to the industry.”

economy most impacted by the Covid-19 pandemic and in reskilling our community,” Professor Ian Greer, vice-chancellor of Queen’s University, said. “This new course will ensure that those sections of Northern Ireland’s workforce, most impacted by this crisis, can access skills training in areas that will develop their employment opportunities within a matter of months, and support the regrowth of our economy as we emerge from this global crisis.” And Professor Nola Hewitt-Dundas, head of Queen’s Management School, said: “Working closely with our stakeholders we have responded to their request for a postgraduate course to provide much needed skills to businesses and the wider Northern Ireland economy.”

A spin-off from the America’s Cup sailing team, Artemis Racing, Artemis Technologies is led by double Olympic gold medallist Iain Percy OBE. “When we launched Artemis Technologies, we decided to base ourselves in Belfast because of the incredible aerospace and composite engineering talent available,” he said. “For years, we’ve been designing low energy, high performance solutions for some of the fastest yachts on the planet, and we will now utilise that knowledge, and along with our partners, apply it to build the world’s most environmentally friendly high-speed ferries, capable of carrying up to 350 passengers. “Our concept for an electric hydrofoil propulsion system is totally unique and will enable vessels of the future to operate with up to 90% less energy, and produce zero emissions during operation.” Iain Percy

NEWS IN BRIEF

Translink redeveloping Belfast train station Translink is carrying out a major redevelopment of one of its Belfast train stations, it has emerged.

Translink’s new plans for Yorkgate

It’s carrying out a remote and digital public consultation for Yorkgate station in north Belfast.

The new hub will see a new station building, public facilities, retail and cycling infrastructure. Translink group chief executive, Chris Conway, said: “We are pleased to be taking these important redevelopment plans forward. Passengers will enjoy an enhanced travel experience with modern new facilities and improvements to accessibility with better links to walking and cycling. “These will be key to creating a sustainable transport network as part of a ‘green’ economic recovery as we emerge from this crisis. It will also help revitalise the local economy by supporting both the manufacturing and construction industry as we rebuild and recover. “As a regeneration project, we look forward to helping transform this part of the city by contributing to other ongoing regeneration initiatives including the good work underway in Sailortown and the emerging City Quays and Ulster University developments.”

Around 360,000 NI homes have access to ‘full fibre’ broadband Around 360,000 homes across Northern Ireland can now access fibre broadband, it has emerged. Openreach, which is the Mairead Meyer infrastructure arm of BT, says more than 40% of properties can now access ‘full fibre’ broadband with speeds of up to 1Gbps. It aims to reach 525,000 premises, which is 60%, by the end of March 2021. That would put Northern Ireland ahead of the rest of the UK. It comes as a new paper by Ulster University and Openreach says full deployment of broadband by 2025 could boost the Northern Ireland economy by £1.3bn and employment by 1.6%. Mairead Meyer, director of Openreach Northern Ireland, said: “The full fibre build programme is central to NI’s digital future and economic growth and will provide the region with more reliable, faster and future-proof broadband. “We’re delighted to have reached a milestone of 360,000 premises today and are on track with our plans to achieve 525,000 by the end of March 2021, covering 60% of homes and businesses.”

Armagh firm helps customers order at table An Armagh tech firm is turning its attention to helping customers order from the comfort of their tables. The DrinkApp, developed by Ryan and Mark Fegan from Keady, allows publicans, restaurant owners and other leisure providers to accept drink orders from patrons without ever having to go near their table or serve them across a crowded bar. James Freeman and Ryan Fegan of DrinkApp

It was originally developed as a solution to queue management in busy bars and clubs, but has now been adapted to deal with the challenges facing the hospitality sector amid Covid-19. Ryan Fegan, founder, said: “The idea for DrinkApp came to me about two years ago on a busy night in the bar Mark owns in Armagh. This small space was rammed, like most bars around Northern Ireland on any given weekend and I began to wonder if there wasn’t an

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alternative solution to crowded pubs, than to simply reduce numbers which would impact sales or expand, which would be a significant investment and not always possible. “The idea that a universal app could eliminate the need to queue by allowing orders to be placed without having to leave the table came to me, and DrinkApp was born.”

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ANALYSIS

UK ‘streets ahead’ of Republic in economic recovery amid Covid-19 David Chance examines how the Republic of Ireland is tackling economic reform and contrasts the response with how the wider UK recovery is getting underway

he has a terrible pandemic in terms of health outcomes with 290,000 confirmed cases and more 44,000 deaths. By contrast, The Republic of Ireland has performed relatively well.

The funds disbursed in company schemes have so far fallen well short of the €2.4bn-€5.7bn the Central Bank of Ireland estimated would be needed in liquidity by consumer-facing small and medium-sized companies.

However, when it comes to the economic response, the UK is streets ahead, and for Ireland the risks from the pandemic are far greater than in the financial crisis when the State’s economic model of openness to globalisation reaped huge dividends in terms of growth and job creation.

The next phase is going to be even trickier and traditional economic indicators are going to be of little use in charting the progress of the economy as it moves into a recovery phase.

Despite a post-crisis recovery that has seen economic growth here beat levels seen in the rest of the European Union, the labour market here had some major weaknesses even before the pandemic hit, and they could make a recovery to full employment very hard. Tánaiste Leo Varadkar has promised a “radical and far-reaching stimulus”, but the record so far is mixed, and the range of policies unveiled by Chancellor of the Exchequer Rishi Sunak in a £20bn package showed the path Ireland now needs to follow. While the initial response here, with the rapid deployment of €6.8bn in extra funding for health and wage schemes that supported more than a million, received widespread praise, a second package of €6.5bn in grants and loan schemes has been less well received. Total aid measures worth €15.5bn have been announced.

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The latest data shows business confidence has come off its lockdown era lows, but the readings still show that there is a contraction in activity going on. Credit card spending data appears to show a return to pre-crisis levels, but that is largely a function of the new-found freedom to shop and the build-up of savings by those who kept their jobs. Even the latest figures that showed the number of people claiming the Pandemic Unemployment Payment had fallen 42% from the May, while welcome, could also indicate trouble ahead. The Republic of Ireland risks seeing one of the largest falls in employment among the 37 members of the Organisation for Economic Co-operation and Development (OECD) after Colombia and the United States, the group warned in its most recent employment report. The OECD calculates that employment here will fall by 6.7% if there is just a single hit to jobs from the pandemic. If there is a double hit, in which we get another round of

restrictions, that figure would see a drop of 8.2%. The comparative OECD average figures are 4%and almost 5% respectively. The extent to which “normal” economic rules no longer apply was shown even as lockdowns spread throughout the eurozone in the spring and most economists had expected that the unprecedented collapse in output would lead to a rapid spike in unemployment. That has not happened. In Italy, one of the worst affected countries,

ANALYSIS urgent and decisive action. One crucial issue is how much financial distress firms are in – hence the need for loans and grants from the Government, or to look at issues such as a VAT holiday, as Mr Sunak did last week, so companies can return to normal trading conditions. Ciarán Nugent, an economist at the trade union affiliated Nevin Economic Research Institute, notes that even at a time when the economy here was at “full employment” in the last quarter of 2019, the share of people in employment and looking for jobs as a percentage of the working age population was still well below pre-crash levels at 62.7% versus 66.2% in 2007. Mr Nugent also notes that temporary contracts were four times higher at the end of last year at 24.2% of the under-30s than at the pre-crash low. As well as more money, the Tánaiste is going to have to come up with some creative labour solutions of the kind Mr Sunak unveiled. Mr Sunak set out a £1,000 payment for each furloughed employee who remains employed to January next year as well as kick-start scheme for apprenticeships and retraining which will fund six-month work placements as well as hiring more front-line staff to help job seekers in an expansion of the state payroll. Sickness payments that were expanded during the crisis will also need to be kept in place to prevent workers who are ill from being forced to leave their homes and risk infecting others.

Tanaiste Leo Varadkar and Taoiseach Micheal Martin

the official unemployment toll fell because people exited the workforce.

tourism sectors, the unemployment rolls will start to grow once more.

In other countries, Ireland included, short-time working and job subsidy schemes did what they were supposed to do and “flattened” the unemployment curve in the same way that the lockdowns flattened the spread of the pandemic.

Those on short or temporary contracts now risk losing their jobs when those expire, notes Jessica Hinds, an economist at Capital Economics, who says that firms employing low-skilled workers will have less incentive to hold on to them if they are required to shoulder a greater burden of their wage costs.

Paradoxically, as the economy starts to grow again and people start looking for work, especially those in the hard-hit hospitality and

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That may expose the weak underbelly of the Irish economy and underlines the need for

And we are also likely to see continued state intervention in areas that it has traditionally stayed well away from. The OECD notes that in the event of a second infection wave, particularly in winter, bans on evictions and foreclosures and targeted financial support to cover utilities could help workers remain in their homes. “Even without a second infection wave, many workers likely face an extended period of economic fragility, making it hard to cover mortgage and rent payments in the months to come,” it said in its recent employment report. With Brexit looming as well, there is a need for radical action now, so over to you. ■

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ANALYSIS

After severe turbulence, whatâ&#x20AC;&#x2122;s next for the Northern Ireland economy The business community and society as a whole is picking up the pieces of a crisis unlike any of us have seen in our lifetimes. Dr Esmond Birnie, senior economist, Ulster University Business School, forecasts and examines the impact coronavirus will have on all of us and what are the next steps for government and the private sector 138

ANALYSIS A VERY LARGE RECESSION The start of 2020 seems long ago now. At that time we could argue about whether we had full employment. Northern Ireland’s GDP could decline by 8-10% this year. That’s based on the three months of lockdown (MarchJune). Much will depend on maintaining the planned speed of relaxation during the next three months. There is the possibility of a second wave of the virus. There are tentative signs that we have already hit the bottom and so the recession may not be quite as deep as initially feared. Nevertheless, this could still be the most severe recession in a century. WILL THE RECOVERY BE AS SHARP AS THE CONTRACTION? Optimists claim the bounce back could be as rapid as the recession. In April the Bank of England argued that a decline in UK GDP of 14% in 2020 would be followed by 15% growth in 2021. In less than two years we would be back to where we had started. Consideration of earlier pandemics such as SARS in 2003 suggests a brief recession but there was no global lockdown 17 years ago. The available statistics suggest that China has bounced back quite quickly as it lifted its lockdown in March but this may not be all that relevant to the West. GROUNDS FOR PESSIMISM VIEW: SLOW RECOVERY In June the EY Item Club argued that the consensus of the various forecasts for the UK economy was that it would take three years to get back to pre-Covid levels of output. Various long lasting effects will tend to slow down growth. Physical and human capital will have been lost during the crisis, and supply chains have been badly disrupted. Barriers to travel will reduce movement of people and ideas leading to slower productivity growth. Decreased lending to businesses reduces investment. The crisis may bring some positives: drug design, new ways of organising or delivering public or private services, increased IT-related innovation. The balance, however, looks negative. REASONS WHY THE NI RECOVERY MAY BE PARTICULARLY SLOW A McKinsey Digital survey (May 2020) noted how most German small businesses (79%) were optimistic about post-Covid prospects. Many were making strong efforts to engage

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with customers, partly through e-commerce. It is unclear how far this is happening in NI although InterTradeIreland’s E-Merge programme has helped. Covid-19 recovery requires competitiveness, high productivity and agility but NI businesses have, on average, lagged counterparts in GB or internationally. Some sectors are likely to experience a particularly slow recovery post-Covid. These include aerospace manufacturing and nonfood retail. Those vulnerable sectors represent a larger share of the regional economy as compared to the UK average. About one-third of the labour force have been laid off or made unemployed. Research by the Ulster University Economic Policy Centre has noted some of the characteristics of those workers make it less likely they will be brought back into employment post-lockdown. Many are lower skilled and temporary workers. After the banking crisis Office for National Statistics data suggests we took between seven and eight years to regain the pre-crisis peak. For comparison, UK GDP took five years to regain its pre-crisis or 2007 level. History rarely repeats itself exactly but there is the threat that we will spend some time bumping along the bottom. It is plausible that NI will take at least three or even four years to claw our way back to where we were in 2019. CAN POLICY MAKE A MORE RAPID ECONOMIC RECOVERY MORE LIKELY? The pace of lockdown release has been faster than that in Scotland and Wales. Public health considerations notwithstanding, the Executive seem to have decided that fundamentally health needs wealth. The past three months have seen a massive increase in government intervention which brings its own risks. Higher public spending has maintained incomes and demand but past experience suggests incentives to improve competitiveness may be blunted. Here are some policy suggestions: GOVERNMENT INVESTMENT The Prime Minister talks about a UK equivalent to America’s 1930s New Deal. NI does have many infrastructure weaknesses. There is a lack of digital connectivity in rural

areas. This could be prioritised. The world has changed from era of Roosevelt’s public works. Even if we spend hundreds of millions to laying the cables and pipes which we need much of that will involve buying foreign capital and imports rather than directly creating jobs in NI. FOREIGN DIRECT INVESTMENT OPPORTUNITIES FROM NEAR-SHORING The virus has big implications for global supply as businesses choose to source closer to home. There may be an opportunity for Invest NI to position NI as a safer location for GB/foreign investment. SECTORAL CHANGE Manufacturing could gain as we source from home rather than overseas. Policymakers should look for the opportunities provided by the crisis to re-set the economy without being utopian. Improve the amenity of our town centres. Use the planning and Rating system to promote change of use to city centre living but don’t expect the traditional high street to come back. ADAPTING TO CHANGING TOURISM PATTERNS Much reduced international travel created significant challenges for local tourism. Significant promotional effort will be needed to maintain the momentum achieved prior to the crisis. But other opportunities could also emerge such as more ‘staycations’: in 2018 about threequarters of external visitors to NI came from GB and the Republic of Ireland. RE-SKILLING DURING FURLOUGH Billions are being committed to protect earnings during the lockdown. Rather than have people inactive for an extended period of time, let’s encourage more e-learning. This would be a good time to reform/scrap the often ineffective Apprenticeship Levy. The normal business of government must continue – urgent easily crowds out the important. Perhaps the next Programme for Government for NI should be simplified to forefront productivity and competitiveness. Whatever happens in terms of the virus or the Brexit trading relationship these remain key priorities. ■

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ANALYSIS

Impact yet to be felt across UK and EU Markus Kuger, chief economist at business decisioning data and analytics firm, Dun & Bradstreet, examines what impact the last few months and beyond could have on the UK and the wider EU economy

he true economic impact of the coronavirus crisis is yet to be fully realised and the UK faces a deep recession in 2020, according to one expert.

Markus Kuger

Markus Kuger of Dun & Bradstreet also says that any move towards a potential ‘no deal’ Brexit, amid the ongoing crisis, would be especially damaging for the econoym here. “The first half of 2020 saw more uncertainty and upheaval in the UK than anyone could have imagined. The economic impact of Covid-19 is still yet to be fully realised, however we do anticipate the UK to enter a recession,” he says. “With the focus on Covid-19, it is important to remember that UK’s exit from the European Union remains a key priority for the recovery of the British economy and the future of many businesses operating in or with the UK, in both the long and medium-term. “With just six months until the end of the Brexit transition period, as the UK begins moving down the road to recovery from the coronavirus pandemic, negotiations have now resumed and there is optimism that a deal will be reached. “The UK’s exit from the EU is likely to have a lasting impact on the economy as trading with and within the UK will become much more complex for companies.

“Even in the event that a deal is secured, companies with cross-border supply chains can expect costs to go up, with significant changes to what and how they can trade across Europe.

“Our analysis shows that a ‘no deal’ Brexit, where trading reverts to World Trade Organization rules and the pound weakens, would be especially damaging at a time when Covid-19 recovery is a priority.

“Until businesses gain more clarity on the changes to their supply chains, it will be incredibly difficult for companies to assess and manage risk. Consequently, Dun & Bradstreet’s country risk rating for the UK remains at an

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all-time low and although our forecasts have improved slightly with the lifting of lockdown restrictions, we are maintaining a ‘deteriorating’ outlook throughout the period. “We have also adjusted several of our macroeconomic projections including our forecast for GDP – which we now predict will contract by 8.5% in 2020.” ■

ANALYSIS

Recovery will be tough test for Invest NI Kevin Holland, recently appointed chief executive at Invest NI, is working on a package of recovery measures for local businesses. He is having a tough test of his ability to deal with unexpected economic developments, writes John Simpson

s businesses developed last year there was evidence of growing success across many sectors in Northern Ireland. Less than six months later, Covid-19 has brought a major lockdown to parts of the economy, many jobs are furloughed, and international trade and travel reduced to uneconomic levels. At Invest NI there is both an acknowledgement of the seriousness of the recession which has been caused and, in a constructive response, of the need to respond with appropriate advice and assistance to act in support of businesses as they tackle the changed market conditions. Help for firms to recover is being refined and improved even though, as the chief executive has acknowledged, not every business will recover. The present state of business for Invest NI client companies shows serious concerns but it would be wrong to present them as a gloom and doom story. Mr Holland conveys an ambitious optimism because he sees evidence of resilience and adaptability that are strengths that can be used to advantage. Over the next 18 months Invest NI will be delivering the different parts of a recovery package for local firms. An allocation of

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Kevin Holland

£30m has been earmarked for the Department for the Economy to help viable firms with particular hardship difficulties. Invest NI has not sought additional funds for its own budgetary discretion. Rather, it is relying on tailored support from NI budgetary allocations or from the extensive funds which have been released by the UK Treasury. The theme of the recovery plan is a combination of measures to encourage improved productivity, stronger levels of innovation, bigger commitments to schemes for research and development proposals, and the delivery of a workforce with enhanced levels of skills. The published results, achieved by Invest NI in 2019, confirm that on three of the main performance yardsticks, performance was ahead of targets. Over 29,000 new jobs were created in the last three years. The value of sales increased by £4.5bn and external sales grew by £3.5bn. The major shortfall was a significant gap in research and development spending between a target of £160m in four

years and an outcome of only £25m in the first two of the four years. In a contrasting outcome, Invest NI offered a highly successful Innovation voucher scheme with grants of up to £5,000. An extra £4.5m has been allocated to this scheme over the next five years. There are some pieces of unfinished policy on the agenda for Invest NI. The Brexit operational details of the Ireland-NI Protocol are still under discussion between the UK Government and the EU. Invest NI is keenly interested in gaining clarity of the final details. There is continuing interest in an unfinished debate on the way in which the new emigration policies will be applied to NI. There is still some uncertainty about whether NI will be asked to continue to observe the EU rules on State aid. Mr Holland, has an impressive grasp of serious questions in managing the awaited economic recovery. The months ahead will be challenging for Invest NI and its chief executive. ■

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REOPENING

Opening the doors once again Donna Deeney pays a visit to the hairdressers and Ralph Hewitt takes in Belfast’s hospitality sector in the first hours after businesses right across Northern Ireland opened their doors for the first time in months, following the Government lockdown HAIRDRESSING A hairdresser with 46 years experience says the pandemic has transformed the industry. Monica Fee, who has welcomed customers to Monica’s Hairstylists in Derry for four decades, said turning the keys in the salon after 14 weeks filled her with many emotions. The usual selection of glossy magazines and offers of tea and coffee have been replaced with face-shields and a level of sanitisation that would be the envy of any hospital ward. Ms Fee takes the safety of her staff and clients seriously, but even with all these extra measures she said to make this new way of hairdressing work it was crucial clients kept to their appointed time. She said: “Opening the door after 14 weeks of lockdown, I think I felt every emotion it was possible to feel. “I am anxious, nervous, there’s a tiny bit of fear and worrying about getting clients to stick to their appointments, worrying about protecting staff and clients. “Customers adhering to appointments is critical to the smooth running of the salon and making sure there are not more people here than is safe. “It was emotional seeing people arrive back, especially customers that I haven’t seen since 14 weeks ago. “In order to comply with the regulations I totally gutted the salon, installed new floors, new sinks which are two metres apart, and fitted one long mirror instead of individual ones so we can move chairs so customers feel comfortable being here.

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Hairdresser Monica Fee

REOPENING

Reporter Ralph Hewitt has his pint at the Dirty Onion bar in Belfast

“Sanitation is part and parcel of hairdressing anyway, but from now on that will be extended and extensive, and will be carried out throughout the day. Staff are wearing face-shields and gloves and clients are also wearing masks.

At the Dirty Onion, another queue had formed as Damien McArdle was waiting patiently to enjoy an afternoon with his friends. “It’ll be interesting to see how they manage it inside because I have no idea what way the rules are or what the craic is,” Damien said.

“This is hairdressing like I have never seen it in all my years in the industry. It will take quite a bit of getting used to, but we will have to because I think it will be like this for the foreseeable future.”

“I walked around Belfast there and the streets are already getting busier. I saw a big queue at The National as well which is good to see.” Inside the venue, Antonio Getty, Josh Macrory, and Gary and William Blackadder travelled to Belfast from Ballymena for the reopening.

HOSPITALITY Pints and cocktails were finally back last month as a large swathe of Northern Ireland’s hospitality sector reopened. Beer taps were flowing, food was back on the menu and cash registers were ringing as customers returned to pubs, restaurants, hotels and cafes. Now the sector is hoping to get back to a sense of normality after the crisis, which has cost millions of pounds in lost trade. However, patrons will have to adjust to a very different experience for the foreseeable future, with social distancing markers in place, contactless payment and table service all in place. Yet people were happy to be able to spend some quality time with friends and family yesterday. Some said they had been up since early morning in anticipation.

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“We got straight on to the pints of Guinness and the Magners,” Antonio said. “I was up at the crack of dawn because I was so excited. “We’re not sure if we can get in anywhere else because this is the new normal. We just don’t know if there’ll be queues so we might just sit here and keep our seat.” Josh said it had been a long three months, and was delighted the wait was finally at an end. “Nobody really knows what’s happening and the bars are working through it themselves so everyone just needs to have a bit of patience, which they’re all doing from what we can see,” he said. Michael and Karen Scott from Tandragee had spent the morning shopping and stopped into The Thirsty Goat for a quick drink. The couple, along with their son Ethan, were delighted with how the service was operating. ■

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INTERVIEW

Interview: Google’s Dave Burke D

ave Burke’s natural state is to try and fix things. He used to make robots as a child in Dublin. He once created an entire app on a 12-hour flight. As Google’s VP for engineering on Android, managing a team of 2,700, his fingerprints are all over three billion phones that are used every day. So it may not be a surprise that he recently turned his attention to an urgent problem: Covid-19. He thought he might help stop its spread. The trigger for this, though, was a family medical situation. “At the beginning of last year, my son was diagnosed with a form of leukaemia,” he says. Dave’s response was to bury himself in research about it to try and help maximise treatment options. “I basically disappeared for months in the basement, reading over 300 medical papers and books on genomics and genetics,” he says. “I looked across the whole of the US to find the best doctors. I found them in Seattle. And that’s where my son got treated.” His son, he says, is now doing well. But Dave, now Ireland’s top engineer in Silicon Valley, says that the experience helped to spark him into action on doing something around Covid-19. “When you’re thrust into this world of paediatric oncology, you see a lot of kids and parents struggling,” he says. “You build a lot of empathy. My response to that was that when my son started doing a lot better, I wanted to help more. I’d seen all that suffering. That’s really how I got so interested in this in the first place.” Fast forward a year and Dave is talking to me on the launch day of Ireland’s new Covid Tracker app, which is built partly due to the efforts of his team’s collaborative design efforts with Apple.

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As we talk, the app is soaring in Ireland, exceeding 750,000 installations on local phones within its first 24 hours. It’s the fastestdownloaded app in Irish history. By lunchtime the next day, it will have reached one million downloads. It was also an unprecedented collaboration between conventional rivals Google and Apple on a technical application. Was that collaboration hard? “I’d say it was more intense than hard,” Dave says. “It’s pretty unusual for us to work with Apple as, obviously, it’s not our natural state. We’re very competitive and I think that’s a good thing for consumers. But I think on this narrow project we’re good partners.” The API provided by Google and Apple, together with the engineering muscle that both giants have injected, has come to the rescue for many countries who couldn’t get locked iPhones to reliably work or save batteries from being zapped. On top of that, the strict privacy protocols baked into the Google-Apple tech solution mean that the app passed data privacy tests far quicker than most governments’ own initial app designs. But those same governments have noticed just how quick and efficient the Google-Apple intervention has been. Both Health Minister Stephen Donnelly and HSE boss Paul Reid spoke of future potential for the GoogleApple technology, with Mr Donnelly even going so far as to compare the two tech companies to the ESB, utilities that can’t be avoided. This has already led to some counterarguments about accountability and control over vital future health projects. Is this something that Dave thinks is a fair concern? “If you look at what’s being built, the majority of experience and the interaction and

the risk model is not up to Google and Apple,” he says. “I mean we were literally just providing the capability at a low level in the APIs. It’s actually quite a small part of the overall solution. Deciding when and who you notify, what happens when they’re notified and all of those flows are not Google and Apple’s decision. And it shouldn’t be either. That’s not our expertise. “It was because of the urgency of the situation here that we got very involved, working closely with all of the public health agencies and governments around the world, as well as with universities. We just wanted to turbocharge the effort and to get it moving. But really, the majority of this (decision making) is as as it should be – in the application itself. I would say we’re really a small piece of it.” This means, Dave says, that there’s no grand plan within these companies for some type of larger, long-term engagement with national health authorities as critical platform providers that can’t be left out for new services to work. “When you start thinking more generally about the [health authority] things that people might be interested in doing, they are not really going to be within our wheelhouse,” he says. “At the end of the day, we’re operating as platform providers and operating system providers. It’s already pretty targeted.” Dave says that one “confusing” user issue around the app – the requirement to have the location setting switched on for Bluetooth to work, even though the app itself can’t track you – may be remedied in the medium term. “I understand that this is confusing from a user perspective,” he says. “But it’s a legacy thing that was built in five or six years ago so that Bluetooth scanning would work. The irony is that, at the time, this was put in to preserve

INTERVIEW

Dave Burke

or even to increase privacy. But the actual exposure notification system does not use device location at all. It just uses Bluetooth scanning. There’s no way to track another person or a location.” Despite his interest in the app and its broad topicality right now, the Covid Tracker API is a very small part of Dave’s work remit. Android 11 is one of the year’s big events for him and his huge engineering team. It’s currently in ‘beta’ with a new iteration released this week. It’s an unimaginable potential impact. The changes made here will affect the daily

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behaviour, literally, of billions. Dave can’t go into too much detail about what’s coming in future, but he says he’s pretty excited about folding phones. “I’ve seen a lot of the upcoming hardware and it’s among the most exciting stuff coming out right now, yes,” he says. “There’s a pretty interesting opportunity here if you can get the form factor right. The first generation of the devices were quite big. But if you can hit the sweet point, if you have a six inch device that, when folded out is a tablet, suddenly you know that you have a pretty interesting proposition.”

Dave has been in the US for around 13 years, having joined Google in 2007 after a spell as chief technical officer in Voxpilot. While the Irish accent is now falling below the 50% threshold, he wouldn’t be an Irish-made Googler if he didn’t pay homage to the company’s lynchpin Dublin office. “It’s a pretty major part of the business,” he says. “It’s been there for nearly 17 years and we have 8,000 employees. That was a reason why we made sure to help the government on their contact tracing effort. It was a high priority for us.” ■

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The column with an ear for experience... How did you start out in your business? I started my career at the age of 17 in Bank of Ireland commercial finance in Belfast. We were a small team which consisted of a manager, a clerk and myself, the clerical assistant. It was a busy office which required great teamwork to succeed. I learned a lot during this period of my career and developed many important attributes such as having a strong work ethic. This was one attribute which served me well during my initial time at Convertibill. What have you found the most challenging during your years of business, so far? I left the National Australia Bank after 20 years’ service when I held the position of head of operations with the responsibility for over 120 staff. This role gave my life consistency and security however, my life almost went full circle when I successfully produced a business case to attract Close Brothers to Ireland. With just three staff members, no real job security or indeed market awareness, it was a tough three years. I basically worked 24/7 with no holidays but I was determined to succeed. I wanted to employ key members of staff but it was difficult to convince people to leave their existing roles due to the huge uncertainty with job security. How would you describe your management style? I’m a hands on, role up your sleeves type of guy. I don’t ask anyone to do something that I wouldn’t do myself. For example, I’ve been known to arrange meetings in Cork at 9am which means leaving the house at 4.30am. I don’t suffer fools lightly and patience is not one of my virtues, but it was this work ethic and determination to succeed which gave me the confidence to take up the role of managing director of Convertibill.

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Name: Harry Parkinson Position: Managing director, Convertibill What would you change if you could go back and do it all again? I would enlist more support from trusted friends and colleagues before taking on such a massive change in responsibility. Having that support network around you is vitally important, even if it is just to bounce ideas off people you know and respect. Have you done it all on your own? In the initial stages of setting up any business unless you have talented like-minded individuals with you, all the responsibility will rest with you, so the answer is yes. I don’t necessarily think this is a bad thing because when you are passionate about something you will do whatever it takes to make it successful. I am now lucky enough to work with a great team at Convertibill.

How would you like your business to be remembered? I would like it to be remembered as dynamic, fast growing and flexible. Throughout my career I have always endeavoured to put the customer first. As a result of this customers are loyal in return and appreciate how you have supported and treated them particularly when times are tough. What piece of advice would you give to a 20-year-old you? It’s important to find the right balance in life therefore I would encourage my 20-year-old self to live life to the full but when it comes to work to ensure I put the time and effort into both my education and working life. This approach will pay dividends as you progress in life. ■

NEWS

A quarter of firms ‘struggling to operate with distancing’

round a quarter of businesses say social distancing rules have made it difficult for them to open, trade and operate, according to a survey. According to the latest SME Recovery Tracker from the Association of Chartered Certified Accountants (ACCA), some 83% of accountants report that their SME clients are feeling more stressed and anxious than usual, while a fifth are saying they are not coping amid the corornavirus crisis. The survey, which includes businesses from Northern Ireland and across the UK, features insights from accountants representing more than 15,530 SME clients. Some of its results show that 5.4% of SMEs have decided to liquidate compared to 2.9%, two weeks previous, 23% say current social distancing rules make it difficult for them to open and trade,

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29% of SMEs have made their credit terms more favourable to get cash moving and two thirds gave deferred tax payments. A just 34% of those say they will be able to meet their tax liabilities in the next six months.

83%

Number of accountants which say SME clients are more stressed

Kirsty McGregor, founder of The Corporate Finance Network, said: “Financial forecasts are an essential part of this survival – they’re a dynamic and necessary forward-looking roadmap.

“But we know this planning and forecasting will involve tough discussions between the SME owner, their accountant, lenders and families and there is an understandable reluctance to focus on the glaring reality of the situation.

5.4%

Proportion of SMEs which have decided to liquidate

welcomed, but there is more to be done. That’s why this campaign is now calling on the accountancy profession to step up with their expertise and ability to motivate.”

“The Government has introduced a raft of measures which we have

Claire Bennison, head of ACCA UK, said: “The lockdown may have been lifted, but this tracker’s results show SME clients are more stressed than before.

“In the recent discussions we’ve had with ACCA members working with SMEs, we hear loud and clear the pressure their clients are under, clients who are hungry to find solutions to survive. “Addressing these welfare concerns needs to be part of the policy mix in finding these solutions, and that’s why we’re proud to be supporting #LeaveNoBusinessBehind, an inclusive campaign that aims to redress the balance and where the skills of accountants will be paramount.” ■

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INTERVIEW

From farm to the global convenience foods marketplace Ellie Donnelly speaks to Tracy Hamilton about the journey from growing vegetables at home to expanding its exports reach across the globe

tretching back six generations, the Hamilton family farm, located near the picturesque shores of Strangford Lough in Co Down, today has produce on supermarket shelves across Ireland and the UK. For husband and wife team Martin and Tracy Hamilton founding Mash Direct, which makes more than 40 different vegetable products, was done out of necessity. In 2004, on the back of a declining vegetable market, mixed with the poor prices for their crops, the company was born over “a couple of glasses of whiskey”. “Martin and I had been growing vegetables for the wholesale market and the return on what we were producing was getting less and less and we thought, ‘what are we going to do to survive this?’,” Tracy Hamilton, co-founder of Mash Direct, says. The company looked at a number of alternatives, including turning the farm into a golf course, however that didn’t work out. It then looked at developing a rural village. “At the end of the day we thought, you need to do what you enjoy and do what you’re good at, and we are good at growing vegetables,” she says. Products made by the business include mashed potato, carrots and parsnips, and more recently beer-battered chips, made using gluten free

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beer. As well as the food being gluten free, the company does not add any artificial colours, flavours or preservatives. While Mash Direct has a number of independent directors on the board, it remains very much a family affair with their two sons – Lance and Jack – both working for the business. “It works well. Obviously you’ve got the family dynamic and we’ve all got our different goals and skill sets. We also have a board that meets every month,” Tracy says. “We set up a board within the first year of business, and I think that’s really important for any family business because the board can ask us questions we wouldn’t have to ask ourselves.” Having an idea to set up a food business can be relatively easy. The more difficult part comes in executing it. With Mash Direct produce today sold in retail, food service and food manufacturing channels, the Hamiltons have proved very successful at bringing their idea to reality. However, starting out, it was literally a case of a man and woman with a van and some vegetables. The family business made sure it was “very careful” with its steps as it started out. “We went slowly, we reinvested everything straight back into our systems and our

processes, just to make sure we had the efficiencies,” Tracy says. In addition, “making sure the quality of the food was (and remains) paramount”. “It was a massive learning curve, we did a lot of tasting shows, that was really important that we got direct feedback from our consumer,” she says. Along the way Tracy herself enrolled in night classes, all to help the business. “I had read business studies at university. But again, you know, there had been a big gap between university days and now. I did the courses to upskill because there’s an awful lot to take on.” Where the family lacked skills, they invested in

INTERVIEW

Lance, Martin, Tracy and Jack Hamilton

People are now recognising the enormous amount of produce that is actually local the business – also developed its online sales offering. While the demand in supermarkets shot up, at the other end of the scale, Mash Direct’s business of supplying to restaurants, pubs, and hotels suffered a dramatic slow down. If there are to be positives from the global pandemic, Tracy thinks more people will be encouraged to shop locally. “People are now recognising the enormous amount of produce that is actually local, which they might not have seen before because their shopping habits have changed. The local store business is really holding up and I think that will be the new norm.” Away from Covid-19, another challenge faces the company in the form of Brexit. However, planning for whatever the UK’s exit from the European Union will look like is difficult, as Tracy says, “things keep changing every day, we’re obviously monitoring it all very carefully, but it’s very hard to anticipate or to predict anything until we know what we’re actually facing”.

the team around them. “We had to recognise that we couldn’t do absolutely everything, and anything we felt we needed for extra support we invested in the right people at the time,” she says.

to help make sure that no matter what, food got onto the shelves,” she says. Given the nature of the business, much of the work is very hands on. Those that could work from home were told to do so.

Now a firm staple on supermarket shelves here, the on-set of the coronavirus pandemic has brought with it mixed fortunes for the company.

In order to ensure the safely to those that had to work on-site, Mash Direct took a number of measures including putting sanitisers everywhere, compartmentalising certain zones to prevent employees mixing, and even setting up a number of new canteens.

As sales of Mash Direct produce “absolutely went crazy”, the business put out a call for extra employees in order to meet customer demand. “I think we had 2,000 applicants for (30) jobs

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As well as selling through supermarkets, the company – which prides itself on innovation, Martin Hamilton along with an engineer friend designing some of the equipment used by

Having achieved so much already with Mash Direct, Tracy – who in January was awarded an MBE in the New Year’s Honours list for her services to the Northern Ireland agri-food sector – is keen to offer advice to people who might be thinking of setting up a food business themselves. The key to being successful is doing research. “Be aware of what’s in the supermarkets, (ask yourself) why should you be on the shelves, what will your competition be, where would you sit in the supermarket?” she says. Between living on a part of the farm and all the family involved in the business, switching off can be hard. “In theory, people say you should never discuss business at home,” she says. “It doesn’t work, it never works like that, but I think this is our DNA and we love it.” ■

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BUDGET

The ‘mini’ Budget: what does it mean for NI? Chancellor of the Exchequer Rishi Sunak unveiled a ‘mini’ Budget, following his first full Budget at the beginning of the coronavirus crisis which saw unprecedented spending to help save the economy. Margaret Canning looks at what the latest announcement means for Northern Ireland

dditional funding of £162m towards Northern Ireland’s Covid-19 response in the Chancellor’s summer economic update does not go far enough, Stormont’s Finance Minister has said.

But Conor Murphy said the additional funding of £162m, including £39m for economic recovery, was inadequate. “The measures are not ambitious enough to spur economic recovery,” he said.

The mini-budget from Rishi Sunak includes a temporary VAT cut for tourism and hospitality from 20% to 5%, and a £1,000 bonus for companies for each employee they bring back off furlough.

“Covid-19 will continue to have a dramatic impact on our economy for some time to come. What is needed is a comprehensive stimulus package. This, unfortunately, does not go far enough.”

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BUDGET Mr Sunak’s mini-budget also announced ‘Eat Out to Help Out’, a UK-wide voucher scheme offering 50% off meals including non-alcoholic drinks up to a maximum of £10 a head on Mondays to Wednesdays during August.

20% was inequitable compared to the south,” he said

“Furlough will wind down flexibly and gradually,” he said.

This and the cut in VAT gives the local tourism sector an edge as it competes with the Republic for visitors. The Republic’s rate of VAT for the sector is 13.5%.

“The decision to reduce it to 5% until January means that we can now offer even more incentives to people to travel to the north for their holidays. We will have new lower accommodation rates on our website and all our food menus will be repriced to reflect the VAT changes.

But he announced that employers will be given a bonus of £1,000 for every employee that they bring back from furlough if they are employed every month from November to January and paid at least £520 every month until January. That policy would cost the Government up to £9bn.

Howard Hastings, head of Hastings Hotels, which has seven venues here, said the changes could not have come at a better time. “We have long complained that our VAT rate at

“The combination of both of these moves will be welcome news to people looking to book ‘staycations’ who may not have considered the north previously.”

He also announced a ‘kick-start’ scheme that will reward companies with a £5,000 bonus where they give new jobs to young people, with the Government covering the new start’s salary at minimum-wage level for six months.

ANALYSIS

or a politician who’s risen to prominence in a time of tribulation, Chancellor of the Exchequer Rishi Sunak has still managed to be something of a ray of light. He managed to soothe the fears of millions of workers and employers with the Coronavirus Job Retention Scheme and later – thought not quite to the same extent – assuaged the fears of the selfemployed with the self-employed income support scheme (SEISS). That ability to shine continued in the Summer Statement and its crowd-pleasing initiatives – though there was a dollop of medicine between the spoonfuls of sugar as he ruled out any extension of the Job Retention Scheme. There is a temporary cut in VAT on food,

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Mr Sunak also confirmed a much-signposted stamp duty holiday, lifting the threshold on house purchases from £125,000 to £500,000. But he reiterated that the Coronavirus Job Retention Scheme – introduced when the pandemic struck in March – would have to be tapered off between now and October as previously announced. Around 212,000 employees here were on the scheme.

Roger Pollen, head of external affairs at the Federation of Small Businesses in NI, welcomed the measures but cautioned that not all of them apply to here. “It is up to the NI Executive to decide how best to utilise the funding which emanates from Barnett consequentials to achieve the same sort of economic benefits,” he said.

Mr Sunak said maintaining the scheme for longer would prolong “false hope” that people’s jobs will still be intact afterwards.

Retail NI chief executive Glyn Roberts said the statement “lacked ambition” and contained little to encourage retail spending. ■

accommodation and visitor attractions from 20% to 5% – a much bigger reduction than anticipated though alcohol isn’t included in the concession. Many had called for a VAT cut as a temporary measure to help the economy – former Chancellor Alistair Darling cut the rate from 17.5% to 15% in all sectors during the last recession. Going as low as 5% for this recession is a bold approach but the fact that it’s not been imposed across the board and is limited to hospitality has already been lamented. The Eat Out to Help Out voucher scheme will give £10 off a head if you eat out between Monday and Wednesdays during August and is another headline grabber. The ‘Kick-Start’ Scheme which will reward employers for taking on young people is another crowd-pleaser and gift to

headline-writers but doesn’t automatically apply here in Northern Ireland. There is plenty to celebrate in the statement but there was a harsh reality check as well. Justifying why he wasn’t extending the Coronavirus Job Retention Scheme, Mr Sunak said to do so was giving people on the scheme “false hope” that they would still have a job to go back to at the end of the scheme. Better to have your hope dashed sooner than later, eh. But even that medicine was sweetened by the announcement of the Coronavirus Job Bonus Scheme, with employers getting a £1,000 bonus for bringing workers back off furlough provided they remain in employment for three months at least, and are paid at least £520 a month. The Government’s carefully-calibrated life support machine is still going, but for furloughed workers, it may be an uneasy summer ahead. ■

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INTERVIEW

‘I always wanted to follow my dad into the retail trade’ Margaret Canning speaks to a long-running independent retailer Paul Cuddy about pushing through tough times for the high street and receiving much-needed support

major independent retailer in mid-Ulster has said a bank loan taken out under the Government’s Coronavirus Business Interruption Loan Scheme has been crucial to securing its future. Paul Cuddy runs three Cuddys stores in Ballymena, Carrickfergus and Magherafelt with his brother Steven. Their father Robert started the business 62 years ago in Magherafelt when he bought a traditional drapers store, then known as Hughes’ shop. The branch in Ballymena followed around 28 years ago, then the Carrickfergus store was opened around 1998. Now the three stores cover fashion, toys – with the Magherafelt store part of the Toymaster group – as well as cookwear and accessories. School uniforms are also a major part of the business. Retail is in his blood. “I always wanted to go into retail. It was talked around kitchen table at dinner non-stop and that’s all I ever wanted to do. Dad didn’t force any of us into business and it was very clear if you wanted to go down another route it’s fine but I always wanted to follow dad. “It’s a fantastic career, even though it has become a lot harder. I enjoy the buying process, seeing new and different stuff and travelling to different countries. Dad worked six days a week, including a late night on a Saturday which was when the farmers’ wives came into shop. “For dad, business was his life and that just permeated down the family.” He remembers how energised his dad was by a good day’s work. “I saw from him that what you put in, you get out – so if you put in a hard day’s

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work, you reap the reward yourself if you have your own business.” Paul’s mother Margaret eventually gave up her job as a teacher to join the business. Many of the company’s 40 staff have been there a long time. It had enjoyed a normal start to the year in the run-up to the Covid-19 pandemic, with the company undergoing the usual buying process in February. “Then March hit, and coming towards the middle of March, sales started to slow down quite dramatically. We had to reduce staffing costs but by the time all of that was to be implemented, things had come to a head. The Government hadn’t announced lockdown at that stage but I sat down with my brother Steven on the Friday and we made a decision that Monday would be our last day. “But we didn’t have time to feel heavy of heart about having to close as we had so much to do. We knew we’d have to provide a lot of information to the banks because cashflow would be very quickly impacted so we did a stock-take to see what we had – by that stage about 60 to 70% of our summer stock had been delivered.” To shift stock, the company had been running a 50% off summer sale – deeper than its usual discount of 30% off. Happily, he says he feels the business has the support of people in the town. “People are really glad you’re open again, and there’s a real mentality around the need to support local traders. There are stacks of brilliant shops around our towns. And we have traded reasonably well since we reopened though we’ll probably have to do a big discount sale in September.” Lockdown came at deep cost to the business

but he feels there has been good help from government. “The government furlough scheme has been invaluable, and now we have a rates rebate for the rest of the year, which really helps.” He thinks the majority of suppliers will have enough stock to meet demand later in the year. “Some suppliers are saying they’ll be back to normal by the winter, other suppliers are cutting back on ranges because they don’t think the winter season will be as good, others have been having problems with factories in China. “We’ve been told by one supplier that a range of mugs, trays and plates that we usually have over Christmas won’t be coming this year.” The company has taken out a £250,000 loan with Ulster Bank through the Government’s Coronavirus Business Interruption Loan Scheme. “We needed help because our cashflow dried up very quickly. A loan was vital to keep us trading. Our business was healthy and we were quickly able to prove that we would be able to repay the loan. “Ulster Bank was very helpful. We were in a very lucky position because I know my own bank manager. She has been to the store and I know her by name, I have her number in my phone. She knows me and she knows the store layout so she really knew the problems the business would be having before we contacted her. “The money was in our bank account within 30 days of lockdown and the decision was made by the bank very quickly.” He’s now feeling reasonably optimistic, and says the business will continue to take advantage of the government’s flexible furlough scheme until trade builds up. “We now need to get back to the level of trade where we were pre-lockdown, and we

INTERVIEW

foresee that we’ll be back there by the end of October.”

Paul Cuddy

And he feels that he’s been well-looked after by the Government here and in the UK. “We have got a fair amount of support. But without the support there would have been a question mark over the future of the business. Initially we only got three months rates relief, compared to a year in England. But we lobbied our local politicians and they sorted it out and were in constant contact and very helpful. “Our rates are probably about £8,000 a month so it’s very helpful that we don’t have that for the rest of the year.” ■

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INTERVIEW

We ran towards the crisis, not away from it Shane Logan of Bryson Group talks to Emma Deighan about being at the helm of Northern Ireland’s biggest social enterprise at a time of unprecedented crisis and providing assistance to those who need it most

hane Logan has gone from managing the business of a high-profile sporting club to leading Northern Ireland’s biggest social enterprise. It’s a transition that has come easy, he says. But today he is on the frontline of Bryson Charitable Group’s biggest mission yet, an emergency support package aimed at helping the most vulnerable individuals here. The campaign has reached out further than was first anticipated and the drive has meant all hands on deck, with even Shane rolling up his sleeves and taking to the streets to deliver >

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INTERVIEW support. Bryson is Northern Ireland’s biggest charity with around 1,000 staff who help over 30,000 people in need each year. It helps by offering services from domiciliary care to financial support. Its Covid-19 scheme, the Bryson Fund, initially helped 3,000 people by providing emotional support, food and finance. But as the crisis sparked by the pandemic deepened, the group’s services expanded to things like helping people meet electricity and oil costs. Shane, who left Ulster Rugby in late 2018 to lead Bryson, says: “Coronavirus has impacted those in need in a greater way and to support those people we have used £250,000 of our own reserves. Initially we set out to work with 3,000 people but that has grown to 4,500 in terms of food, financial and emotional support.” He says that Bryson “kind of ran towards the pandemic rather than run away from it”. “During this crisis there is a big part of the community outside of the state too, those who wouldn’t ordinarily be reached,” he says. “So if you operate in the black economy or have a fear of authority or the state or, if you’re not computer literate or struggle with reading and writing, you would fall into that group and outside of the system. These people are not known, they’re maybe not registered, earnings are not declared and there are many thousands of those people around.” He adds that a majority of workers who faced a drop in demand for their services as a result of Covid-19 are also struggling and have come to the attention of Bryson – that’s people which include the likes of taxi drivers and other selfemployed workers. “Suddenly these people have a big shock to their income levels, everyone is at home, living in a confined space and it’s difficult to cope and this has collectively seen our levels of need quadruple,” he says. Dipping into reserves he says was a no brainer for the group. “We had to be bold. Any surplus we make we reinvest and we took a view that we’re here to serve people in their greatest hour of need and now is not the time to protect ourselves,” he says. As well as offering financial and emotional

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support, Bryson also plays a huge role in supporting the economically inactive through a range of courses. It’s an element of its offering that has surprisingly intensified throughout lockdown. “Our OCN courses provide qualifications that are equivalent to GCSEs. Some are vocational courses and young people respond fantastically to these so at a time when they have additional challenges because of Covid-19 to walk away would be the wrong thing to do, so rather than shutting up shop we have tried to up our game because these young people and families need it,” Shane says. “We have given hundreds of learners access to IT – whether that’s buying tablets or dongles to make sure they’re connected at home. We’ve ensured that on a daily basis they are contacted and in some cases we’ve had to work with people we’ve helped, or work with their families to help them with food and utility bills or emotional support.”

Suddenly these people have a big shock to their income levels, everyone is at home, living in a confined space and it’s difficult to cope and this has collectively seen our levels of need quadruple It’s true to say it has faced its most challenging tests during lockdown. Shane himself, as chief, was helping on the frontline. “We operate from 28 different sites including Donegal and Wales. I find it important to be out on the frontline. I can’t expect my staff to go into houses and take risks without doing it myself. “I also get to see what is being done, how we’re helping but also understand how we can help more and I’ve found it exhilarating, challenging and tiring, but equally I’m really impressed with what we are doing.” Just 5% of Bryson staff were furloughed, as the remainder are deemed key workers during the

crisis. “The majority of that 5% were shielding,” says Shane. “Our young people who we work with are also volunteering, helping us to help others and that’s very admirable.” On June 19, the Bryson Fund has supported 4,292 people across Northern Ireland – 988 existing service users and a further 3,304 people in communities. Of the £165,675 allocated to community level funding, Bryson has so far invested £126,662 in delivering electric, gas, oil, white goods, food and other essential items and a further £14,293 has been invested in supporting existing service users across its Family Support, Sure Start and FutureSkills services. Established in 1906, Bryson Charitable Group is one of Ireland’s largest charities. In recent years it has been the leading agency for Syrian refugees and helping 30,000 people access better futures. Its work is a stark contrast to what Shane was accustomed to on the rugby pitch, but he draws parallels. Shane played a role in establishing Ulster Rugby club’s financial stability and has been recognised for making it a more inclusive organisation. “There are always comparisons to make,” he says. “If you want to be successful you need four key ingredients. They are a good strategy, meet the need better than anyone else, good quality people and make sure you have a good performing management system in place. “You need to make sure they’re done ethically and if you get those done right then it works. “I like the difference being here, but I understood from the beginning that you can’t have all newcomers without any DNA or corporate memory. “Right now we are out to win the war and the next challenge is to win the peace. Once we are no longer needed to support the new emergency we will then focus on the challenge of helping our core end users to establish independence.” ■

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EUNAN McKILLOP B EXPRESS

How is business? As everyone is aware, the hospitality sector has had a really challenging time recently, so like so many others my core clients disappeared literally overnight. This however has presented an opportunity to plan and take notice of the future direction of B Express. There has been a lot of trialling, testing and research put into the B Express app over the past two years. The key to the app is the simplicity for both the customer and staff members. The functionality has been tested in various different environments like a student nightclub, an outdoor concert, a local golf club, a football stadium and a bar with staff already manually providing table service. Another aspect of the app which had been previously unexplored was the ability to do deliveries from a local restaurant business and multiple local off-licences. This re-purposing was only a temporary measure to enable local vulnerable people to self-isolate, but it proved very popular with staff at the restaurant commenting that it was much, much simpler than the alternative of answering all the calls and taking payment over the phone. How did you get started in the industry? The idea first originated at a Bruce Springsteen concert where there was a long queue at the bar. I thought there has to be a more streamline way of doing this. B Express began life by simplifying the product to allow for it to be pre-assembled in advance of the customer arriving at a separate collection area. It was easy to adapt the same principle to a bar or hotel. Based on the feedback over the past two years it was decided to increase the offering to provide table service. The development work for that update had even began prior to the coronavirus outbreak. Typically, who are your clients or customers? It’s a two-sided market whereby we provide a streamline service for the venue, making life as easy as possible, but also providing something the customer wants by either avoiding a queue, or getting table service.

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Entrepreneur of the Month Do you enjoy what you do, and what in particular? I love the excitement of trying to build a successful business that came from a very simple idea in my head. A logical thought that has evolved into something different and greater, all while providing a solution to the age old problem of queuing at a busy bar. I have also really enjoyed meeting new people and the help and advice that has been given has been greatly appreciated on the journey. What is the most difficult part of your job? The most difficult thing is definitely the amount of time required to build the business, which could have been spent with

my young family. It really does make you more appreciative of the time you do actually spend with them and how special it is. That’s what it’s all about, and who it’s all for. What are the challenges facing your sector, and the economy in general? The past few months must be the hardest few months the hospitality sector has ever faced, and I’m sure the situation will continue to be closely monitored. The social distancing restrictions of two metres, now one metre, could still render a lot of businesses unviable. It certainly isn’t over, but hopefully we can all work together, shop local and support local, and as many struggling businesses can get through the other side. ■

INVESTMENT

Foreign investment in Northern Ireland ‘could shrink by 50% in 2020’

oreign direct investment in Northern Ireland could drop 50% this year, according to one expert.

Mark O’Connell

Mark O’Connell, chief executive of OCO Global, said the drop is a “short term” impact of Covid-19 and is hopeful that 2021 will bring a slow recovery. Speaking on the Ulster Business Podcast, he said: “We won’t be back to usual until 18 months. But if you look at the success of NI in attracting investment it has shown resilience in fintech, cyber and activity around the banking and trading platforms.” Mr O’Connell who works alongside Invest NI and other organisations involved in FDI, said the pause button has been hit globalisation everywhere but in the past two weeks some companies have “started to wake up again, especially around the US market with some interest in China, which is in recovery fastest” “There is still plenty of capital out there but obviously investors like certainty and we’re in short supply of that. The FDI fortunes in NI are and will remain resilient. We do punch above our weight, per capita, and outside of London we are the best performing in terms of attracting jobs and investment. “We have, through previous crises, shown bounceback and I would hope this wouldn’t be so different. In the short term there is going to be some pain.” In a recent interview, Kevin Holland, chief executive of Invest NI, said NI’s ability, particularly in the digital terrain, to swiftly adapt to a new working world during Covid-19 will appeal to foreign investors and that a pipeline of activity is still looking very healthy. While Mr O’Connell believes globalisation won’t end as a result of Covid-19, he says “selective globalisation” will emerge in industries where policy dictates we need to become more sufficient.

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Looking at the impact the pandemic has had on the local economy, Mr O’Connell expects the world of travel to change. “Engineering in aerospace and transportation equipment have taken a massive hit and might never recover.

saving £60,000 a month on not travelling.

“What the pandemic has taught is that there is productivity from homeworking, using platforms and virtual conferences and I think people will think twice about jumping onto a plane. Longer term behaviours are going to change. We as a company are

Among his other predictions in a post Covid landscape, Mr O’Connell expects a correction in wages as well as a focus on the environment. “If it hadn’t have been for the crisis, the next focus would have been the environment,” he said. ■

“You can achieve quite a lot remotely. I’m not saying its the end of the end of business deals (in person) but I think it’s tempered how people might do business.”

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PLATFORM

Digital sector will play key role in our recovery Digitalisation and access to data are key strategic issues being considered as part of the development of Northern Ireland’s new energy strategy, which is developing the pathway to decarbonise our energy mix. The energy system of the future will be increasingly ‘smart’, with data being gathered and used to better inform consumers, run the networks more efficiently and in turn, costeffectively lower our carbon footprint. This can provide opportunities not just in data analytics and software development, but also for cyber security. Developing the skills base of our young people is also central to our economic success.

Economy Minister Diane Dodds examines the importance of Northern Ireland’s digital sector in a post-lockdown and Covid-19 environment

ovid-19 has sent an unprecedented shock to the global economy. Those countries who adapt best will have an advantage in grasping the opportunities that emerge as a result of such massive disruption. I recently published my economic recovery plan and identified the key areas where I think we can be global leaders. As one of the key areas, the digital sector currently underpins virtually every other sector and has the potential to grow rapidly in coming years, providing more and better paid jobs. Here we already have a growing digital sector of around 1,700 companies and 20,000 workers. It is a highly skilled sector, with around two-thirds of new workers expected to need at least degree-level qualifications over the next decade. In 2018 GVA for the digital sector in Northern Ireland was £1.2bn – representing 3% of all economic output. NI has a strong record in financial technologies, legal tech, cyber-security,

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artificial intelligence and the provision of digital services. We need to build on this success. The recent FDI intelligence report on European Tech Cities of the Future ranked Belfast in the top 10. Our digital strengths are visible across the region. From First Derivatives in Newry to Learning Pool in Londonderry, there are excellent examples of highly competitive digital companies winning business internationally. NI has attracted foreign direct investment on the basis of the excellence of our skills and infrastructure, with companies such as Allstate and Citi. There are also large indigenous companies such as Kainos and it is exciting to see so many new tech companies growing as a vibrant start-up scene develops. I want to see companies seize opportunities in these areas – and others like 3D printing and automation – as we all adjust to new and more innovative work practices.

IT and digital apprenticeships are available at our universities, further education colleges and private training providers through the ApprenticeshipsNI and higher level apprenticeship programmes. They offer the opportunity to gain quality training and a recognised qualification, ranging from level two to level seven, while in paid employment. Queen’s University’s Centre for Secure Information Technologies is the national Innovation and Knowledge Centre for Cyber Security Research. It has become the centrepiece of a burgeoning cyber cluster, with a range of international companies investing there attracted by the strong pool of talent. My department has also partnered with the Open University to offer free training courses for furloughed workers and others who lost their job as a result of Covid-19. The course options include digital literacy and cyber-security. Improving the digital skills of our workforce will enhance our competitiveness and increase productivity. I am confident if we build on these excellent foundations NI’s digital cluster can be a cornerstone of growth and prosperity which can transform our wealth and wellbeing as we rebuild our economy. ■

Motoring By Pat Burns