20 FINANCE-UK
AsianVoiceNews
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1 - 7 December 2018
Entrepreneur Awards win for Pharma Businessman The Great British Entrepreneur Awards 2018 have named a pharma-sector businessman as Innovation Entrepreneur of the Year. Dr Nik Kotecha OBE, who is Chief Executive of Loughborough-based Morningside Pharmaceuticals, won his category at the regional ceremony for the Midlands, held at the Edgbaston Stadium, Birmingham. The annual awards acknowledge the hard work and inspiring stories of British entrepreneurs and businesses in Great Britain. The award was presented by Wynne Evans, famous for his performances as a tenor, in well-known insurance adverts, and entrepreneur Oli Barrett MBE. Dr Kotecha said: “I was truly humbled to be nominated for this award alongside so many amazing entrepreneurs, who are using innovation and a pioneering approach to do
great things. “To win this award is a great honour and is very special for me, as Morningside has been built on using innovation to embrace challenges with heavy investment, including research and development and launching new niche molecules. “The end result has led to greater choice for both pharmacists and patients, as we have developed new ways to take the medicines we manufacture. These include slow and prolonged release tablets and capsules, as well as under the tongue dissolvable tablets. “We were
also immensely proud to be the first company to launch the generic version of the contraceptive pill in the UK. “I would like to thank my team, who are all dedicated individuals and the driving force behind Morningside’s significant growth.” Morningside Pharmaceuticals specialises in manufacturing and supplying generic and branded pharmaceuticals to UK hospitals and pharmacies, as well as essential medicines to global aid agencies. Speaking about what impressed the judges, Elliott Denham, from Growth Enabler, said: “Dr Kotecha's commercial acumen, combined with his in-depth research background, has enabled both Morningside and himself to become even more charitable when experiencing growth." The awards are held in five regions across the UK with the winners from each region winning through to the national final.
Dr Nik Kotecha OBE
UK court asks Mallya to pay £88,000 to Swiss bank The high court in London has directed Vijay Mallya to pay £88,000 to Swiss bank UBS as part of interim legal costs in a case filed by the bank seeking possession of his Baker Street house. The bank alleges that Mallya was given £20.4 million mortgage on which he has defaulted. Mallya had bought the property in a Grade 1 listed building overlooking the landmark Regent’s Park in 2005. In March 2012, he borrowed £20.4 million from UBS for a period of five years. Mallya, however, claims that UBS called the loan early and that he, his mother and son were entitled to “occupation rights” in the property. The main trial is scheduled in May 2019 at the end of which the court will decide whether Mallya can hold on to his luxury pad in London. Chief Master Mathew Marsh in the Business and Property Court passed the order during a one-hour hearing. The order came after the lawyer representing UBS made submissions for order relating to legal costs. The issue of cost arose after the court set aside several objections raised by
Mallya as they were “bound to fail.” There were some indications of Mallya’s precarious financial condition after his lawyer suggested that the court should look in the range of 30,000-40,000 pounds as legal costs with the time limit of up to eight weeks for the payment. The judge, however, stated that “this was a complex application” and that the figure of 88,000 pounds was a “proper amount”. UBS’s lawyer also brought to the notice of the court that the slow response from Mallya on the payment of previous legal costs “makes us nervous”. The court then instructed Mallya’s defence that the deadline of January 4, 2019 was not an “aspirational date” and that payment must be made in full. Chief Master Marsh termed the deadline as “an extended period which erred on the side of generosity”. Mallya has been fighting the extradition battle with the Indian government on allegations that he defaulted on loans
Vijay Mallya
worth £900 million given to now defunct Kingfisher Airlines by Indian banks. The verdict is expected on December 10 at the Westminster Magistrate Court where Mallya has voiced vehement protests against the prison conditions at Arthur Road jail. Mallya's plea dismissed Meanwhile, the Bombay High Court has dismissed appeal filed by Mallya seeking stay on ED's request before trial
court to initiate proceedings against him under the Fugitive Economic Act. The Enforcement Directorate wants Mallya to be declared as a fugitive economic offender and his properties to be confiscated under the act. Mallya, his now defunct venture Kingfisher Airlines Ltd, and others availed loans from various banks and the outstanding amount, including interest, against him was around £999 million, the officials had said while filing the plea under the new law. Mallya is currently contesting his extradition case in London filed by the Indian government on behalf of the CBI and ED. Mallya, in the past, had said that he had become the “poster boy” of bank default and a lightning rod for public anger. “I have been accused by politicians and the media alike of having stolen and run away with £900 millionthat was loaned to Kingfisher Airlines (KFA). Some of the lending banks have also labelled me a wilful defaulter.”
New ombudsman to tackle complaints Banks extend UK plc's of dissatisfied rail commuters overdraft ahead of Brexit Passengers dissatisfied with how train companies handle complaints can now appeal to an independent arbiter, as a new rail ombudsman service comes into force. The ombudsman will have binding powers over train firms should it uphold a customer complaint. But the service has been criticised by Labour as toothless and unable to tackle important issues facing passengers such as rocketing fares and complicated pricing tariffs that vary from one operator to another. The ombudsman will focus on providing a free service to passengers objecting to an operator’s response, or if a complaint has not been resolved within 40 days. Train companies will fund the ombudsman and have agreed to abide by its rulings. The Rail Delivery Group, which represents train operators, said it showed the industry was trying to “uphold the highest standards” in its complaints processes which have come under criticism from consumer groups. According to data from the Office of Rail and Road, fewer than half of rail passengers who complained last year felt their issues received an adequate response, although only 1.1% of complaints ended up in an appeal process. The ombudsman will deal primarily with disputes about delayed trains and passenger compensation. More than £80m was paid out in 2017-18 to passengers
for delays – a figure that is likely to have escalated significantly following the timetable chaos in May this year, which saw thousands of services cancelled and severely delayed. But a Department for Transport study published last month found that only 39% of eligible passengers claimed compensation for delays, with most of the rest saying it was not worth the time and effort. Andrew Jones, the new rail minister, said: “This is a significant step forward for passengers’ rights. This independent ombudsman will make sure passengers are heard and that they get a fair deal when train companies fall short. “Rail firms must take this opportunity to improve their complaints process and to increase customer satisfaction.” Labour, however, gave a muted welcome. Andy McDonald, the shadow transport secretary, said: “With over 50m products, the UK rail fare system is probably one of the most complex in the world. Passengers urgently need simpler and more affordable fares. The rail ombudsman’s voluntary code and limited powers will do little to address these problems.” The service will be provided by a private company, the Dispute Resolution Ombudsman, which has so far concentrated on consumer disputes in the furniture and removals sector.
Banks in Britain are trying to prepare businesses for a potential cash crunch after Brexit, whether or not a deal agreed by the UK and Brussels this weekend is approved by parliament next month. Banks fear Britain’s departure from the European Union could cause a spike in bad loans with corporate clients, if it leads to delays in cross-border shipments and payments or big swings in sterling. To protect against these risks some banks are extending credit to companies and selling insurance against volatility in sterling. State-controlled Royal Bank of Scotland (RBS.L) trebled its “growth fund” for small businesses last month from 1 billion to 3 billion pounds, saying it had set aside extra cash to help customers to get through Brexit. It said it may need to top up the pot again. “To a large extent it depends on the type of Brexit we get,” Mike Slevin, head of capital management at the bank, said. It has identified nearly 2,000 at-risk companies across several sectors it believes are exposed to a Brexit fallout. These include those reliant on complex overseas supply chains – such as car part manufacturers and medicine makers – and those susceptible to an economic downturn - such as leisure and construction. Credit being offered by RBS includes increased import and export funding, supply
chain finance and bigger working capital lines for everyday operations, Slevin said. It is logging where credit is taken up due to Brexit to track the impact. But take-up has been slow so far and small firms are not as prepared as they ought to be, Slevin said. “Many want to hold back from increasing lines until a little closer to the time because of the cost. So it’s a slow burn.” CYBG (CYBGC.L) - which owns the Clydesdale, Yorkshire and Virgin Money brands – has also been contacting businesses to offer credit, including farmers across Yorkshire and Scotland that account for a significant chunk of its business loan book. British farmers are reliant on support payments from the EU, and while these are guaranteed by the British government for up to three years after it leaves the EU in March next year, the FTSE 250 lender wants to smooth any bumps in the road. “We have worked with a good number of our customers in agriculture. We are making sure they are financially ready,” CYBG chief financial officer Ian Smith said. Silicon Valley Bank, a US-based lender focused on the technology sector, has in recent months sold a large number of currency hedges to startup companies in Britain exposed to fluctuations in the sterling/dollar exchange rate.