Business 27 November 2013 by Creative Services Studio

SEEING THE FUTURE

THE MASTER PLAN

BUILDING REPUTATION

How forecasting can help your firm move forward

How the LEP plans to create jobs and where it will invest

Meet the construction firm boss who says ethics pay

Business bristolpost.co.uk

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NOV 2013

COMMERCIAL PROPERTY SPECIAL

THE SHAPE OF THINGS TO COME The past year has seen the return of speculative office building in Bristol, but 2014 will be a big test. Plus how firms can get their first foot on the property ladder

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Wednesday, November 27, 2013

Supplier deals

Pharmacies

Small firms take ‘a major step forward’

Just what the doctor ordered

● SMALL businesses had the chance to pitch their wares to a host of the region’s biggest companies at a meet-the-buyer event. Bristol City Council teamed up with the Bristol branch of the Federation of Small Businesses to stage the event at the Regus, Temple Quay. Dozens of small firms grasped the opportunity and were given up to five one-to-one appointments to try to persuade big companies to enlist them as suppliers. Key public- and private-sector procurers, such as the University of the West of England, Avon and Somerset Constabulary, the Royal Bank of Scotland, Mitie and the Bristol and Weston NHS Purchasing Consortium, took part. Bristol’s FSB chairman Ken Simpson said: “It can be very difficult for small-and medium-sized enterprises to know how to win public-and-private-sector procurement contracts. So to get owners of small businesses in front of the people who can give them business and start to develop key relationships was a major step forward.” Council officials staged two presentations about the procurement process. Jason Thorne, the council’s economy, enterprise and inclusion coordinator, said: “This event helped break down some of the barriers which small businesses face and I am very pleased with how it went.” One of the small-business owners who attended – Abdul Malik, above, of Bristol-based Pak Butchers UK – said: “It was a huge opportunity, which we may not otherwise have had, for us to talk to some of the firms represented. “It really opened up some doors for us and I am very pleased with how it went.”

BRISTOL-based property advisers GVA assisted with the opening of four pharmacies within health centres and GP practices this year, marking a growing trend. Most recently, the firm helped Dr Kemple & Partners buy a redundant office at auction, next door to the Horfield Health Centre. In the past 12 months it has worked on similar projects in Bradgate Surgery Pharmacy Development in Brentry and Montpelier Health Centre. GVA director Tim Scruton said: “The success of these projects has enabled the local community pharmacist to become more integrated into the primary healthcare team, improving service and patient accessibility, but structured on strong commercial property principles. “It has also allowed the local GP practices to expand at a time when securing additional NHS rent is proving very difficult.”

● Tim Scruton and Melvyn Thomas of GVA, outside the new Co-operative Pharmacy at Horfield Health Centre

Business rates

Bristol firms facing £506m tax bill Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk

USINESSES across the Greater Bristol area face a combined £506 million tax bill unless the Government changes course on business-rate increases. Last year, companies in Bristol, South Gloucestershire, North Somerset and Bath and North East Somerset paid combined business rates of £490.3 million, in figures supplied by CVS Commercial Valuers. That will rise tied to the recent inflation figure of 3.2 per cent RPI, adding £15.6 million to the bill. RPI is generally the higher of the two com-

mon inflation measures. A growing number of business organisations are calling on Chancellor of the Exchequer George Osborne to change the system in his Autumn Statement to be delivered on December 5. Business West and the British Chambers of Commerce are calling for a two-year freeze in rates, costing the Treasury £1.7 billion, and wholesale reform thereafter. Managing director Phil Smith said: “There is no question that the business-rates system is broken. This is a tax that hits companies of all sizes long before they a make profit, and acts as a drag on business growth and investment. “The cost of spiralling business-rate bills is without a doubt the main issue facing firms’ ability to

grow.” Rating expert Ben Batchelor-Wylam, from Colliers International’s Bristol office, said: “Business rates are a make-or-break issue. They are the main reason why potential occupiers do not take new space. “Worse still, the incremental creeping cost of rates is pushing many businesses over the edge. Enough is enough. The retail sector is certainly not out of the woods, and recovery remains very patchy across the region, let alone the UK. “Freezing rates will give many shops the breathing space they need to see out the recession. “Realistically, fundamental changes will not happen overnight – but change is needed.” He said that in the longer term, changes to the system could include

dropping the link to RPI, addressing issues around online retailers and bringing forward the next revaluation. The Confederation of British Industry has called for the Government to commit to full reform, and in the short term to cap the annual business-rates increase at 2 per cent and introduce an incentive for companies to move into vacant property to boost local high streets. In the meantime, CVS Commercial Valuers and Surveyors is urging firms to appeal their bill. Rates are based partly on the rateable value of business premises, something that has not been reviewed since 2008 and is not due to be looked at again until 2017. But three quarters of businesses do not appeal their rateable value.

Forecasts tell you where you are and where you are going Know how Andrew Fisher

Business analyst Alan Brookes Ltd AndrewFisher@alanbrookes.co.uk www.alanbrookes.co.uk 01934 863386

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HE economist J K Galbraith once said that “the only function of forecasting is to make astrology look respectable”. It is certainly an inexact science, but I prefer Leon Tec’s view that “a sailor without a destination cannot hope for a favourable wind”. Forecasting can be defined as the use of historic data to determine future trends. The data could comprise previous years’ results in your own company or, in the case of a start-up business, data based on recent market research. Many businesses only produce forecasts when they have to, a typical example being to secure financial support from a bank or investor. However, forecasting is an absolutely essen-

tial business tool which will help you take the right decisions with regard to issues such as the development of new products and services, new premises, borrowing facilities, investment in plant, investing in a new IT system, or when to take on new employees. The first step is to find out where you are now. This is so much more than using the rear view mirror of the last statutory or management accounts. I would suggest that you ask your accountant to analyse the last three to five years’ trading results, and comment on areas such as liquidity, margin, return on assets and so forth. This should not be expensive if your accountant has access to commercial analytical software, and may save you days of effort. A few accountants provide this analysis with the annual accounts in any case, maybe even free of charge. The best reports are those which benchmark your company against the industry standard. This is a valuable service as it enables you to see the company as the outside world sees it. Don’t forget that bankers, investors, customers, suppliers and prospective senior employees will use credit reference agencies to predict your future behaviour – and these agencies will be

“ Forecasting is an absolutely

essential business tool which will help you take the right decisions with regard to issues such as the development of new products and services, new premises, or when to take on new employees. using similar software. Predicting the future is hard, but a starting point is to use the above data to come up with what the next five years would look like if you made no changes to the business. Again, rather than spend days poring over the data to extract something meaningful, some accountants have access to software which uses techniques such as regression analysis to come up with predictions. It is far better to show a banker or an investor that your forecasts have a scientific basis, and some banks will use similar predictive models to determine whether to lend you money.

The next step is to factor in all the changes you are planning, such as purchasing a new asset, developing a new product, putting in new systems, outsourcing or insourcing certain activities, improving credit control and so forth. This will not only help you with a straight “yes” or “no” decision but also a “when”. Finally, stress test your model, by factoring in increased interest rates, below target sales, spikes in raw material prices, labour shortages, increased tax rates and anything else which could impact your business. This is almost certainly what your bankers will be doing if they are considering lending you money. You now have the comfort of knowing where you are and where you are going. In addition, your accountant can use the forecast to predict the value of your business in five year’s time, and show you the effect that changes you make will have on that value. So what’s not to like about the whole forecasting process?

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Wednesday, November 27, 2013

Job creation

Fast growth

Firms given chance to make big pitch FOUR Bristol companies have been picked to showcase their businesses at an investment event in London today. One of them, XCD HR, will present its pitch on stage and have to battle for funding from investment giants. Accelerating Growth, held in Westminster, marks the tenth anniversary of the SETsquared Partnership, the enterprise collaboration between five of the leading UK research universities – Bath, Bristol, Exeter, Southampton and Surrey – to develop new businesses from university research. Over this time, the partnership has incubated more than 1,000 technology companies, which have attracted around £1 billion of investment. XCD HR is a HR and payroll business which was an early adopter of cloud technology and

aims to be the number one cloud HR solution for mid-enterprise firms. The other Bristol firms seeking investment are: Fusion Processing, which developed CycleEye, a cyclist detection system for drivers of buses and HGVs. Nu desine, creators of the AlphaSphere, an electronic musical instrument. WriteLaTeX, which makes science and R&D faster, more open and more transparent by bringing the whole scientific process into the cloud, from idea to writing to review to publication. SETsquared partnership director Graham Harrison said: “While some of these are small businesses today, they hold huge promise, which is why we have always had such strong interest from global investors.”

● Paul Wilson speaking at the West of England Local Enterprise Partnership conference

Vision of 95,000 new jobs for city by 2030 Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk

HE organisation tasked with creating economic growth in Bristol and the West of England has sketched out its plans to create thousands of jobs by investing in five key industries. The Local Enterprise Partnership plans to ask for £75 million to £90 million of Government funding each year to spend on targeted projects to boost the economy. Chief executive Paul Wilson explained his vision at the LEP’s annual conference, at the At-Bristol science centre. While details of which projects the LEP will support, or even how much money it will get, are not yet known, Mr Wilson said there are five sectors where the organisation feels it could get the best value for its money – areas where Bristol is already punching above its weight. The sectors are low carbon, high tech, advanced engineering and aerospace, creative and digital media, and finance and professional services. In those industries, the organisation says there are four areas in which it may be able to help – skills and people, place and infrastructure, investment and promotion, and sup-

port for small- and medium-sized businesses. The vision comes from the LEP’s strategic economic plan, which it will submit to the Government in the spring after putting it out to public consultation from mid-December. The plan will be used to bid for a slice of £2 billion from Government, money carved out to be devolved into local hands by Lord Heseltine’s drive to give more power to the regions. The majority of that money is already tied to specific projects, including the MetroBus in Bristol. LEPs from around the country are bidding for the rest. By population, Bristol would get a share of around £40 million. Mr Wilson said: “Our plan is ambitious. We are confident in our ability and we are going for £75 million to £90 million a year because we believe we have a lot we can offer the whole country and it is good to back a winner.” In addition to the Government money, the LEP will be handing out European money too, around 12 million euros a year. It intends to roll the money together to use it to best effect, and have “one front door” for businesses looking for support. On jobs, Mr Wilson said if the economy is left to its own devices, the Bristol area could see 65,000 new jobs created by 2030. But with enough investment through the LEP, that growth could be as many as 95,000.

Best deals - How the numbers stack up Inflation Corporation tax Petrol prices % .56p % Weekly earnings

23 20 13 10

Main rate

Small profits rate – below £300,000

Base interest rate Employer NI rates % .8% Ave mortgage rate % Source: Moneyfacts.co.uk

Standard rate on earnings above £148 per week

.4%

Employees in salary-related pension scheme earning up £770 p/w

130 137 139 72

Unleaded

.87p Diesel

.46p Super unleaded

.34p LPG

Source: PetrolPrices.com

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2.2 0.8 0.5 3.99

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Wednesday, November 27, 2013

Technology

3D printers set for big future in our living rooms Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk

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PORTISHEAD company is launching what it believes is the first 3D printer targeted at the home-use market. 3D printers – which make a three-dimensional model of designs by using thin layers of material – have become common in many design or manufacturing businesses. They are said to have revolutionised industry and cut the time it takes to get from concept to reality. But the professional tool comes with professional price tags that have been a barrier to the home-use market. CEL, based in Harbour Road, Portishead, is launching Robox to allow people to bring their designs and ideas to life in their living room. At £849, it is certainly pricier than a

regular printer but not beyond the reach of a tech-loving family. It is less than an iMac but more than a lower 3D television, for example. Chief executive Chris Elsworthy, pictured, 37, said: “3D printing has become increasingly popular in recent years, but we want to bring technology out of the industry and enthusiast community and into the mainstream. “We set out to create the very best 3D printer that is both reliable and accessible to everyone. “Within five years 3D printing could be as widespread as 2D printing is now. “We are passionate about people making things and want to get the technology out there.” The printer creates thin layers of plastic on top of one another into the required shape. Chris said: “People see it and love the magic but then ask how it will be useful to them. It takes time for people find out how they will use new technology.”

● The Robox 3D printer and an example of some of the 3D models it can create But he has plenty of ideas already. He said: “If your fridge door handle breaks it might be hard to replace it, but you can make one. “If you are having a dinner party on a theme you could make a set of cutlery to fit in, or toys for every child coming to a birthday party.” The business previously focused on designing power tools and was build-

ing a 3D printer for its own use. Chris said: “We realised that what we could do was better than what was already out there. We feel this is a really exciting market to go into.” The firm will have a test version ready within weeks to put in the hands of a small group of people who will try it out and give feedback on how it works.

Then the company will iron out any problems before selling the printer to the public, perhaps in early spring. The firm, which employs seven people and was founded in 2006, has launched a £100,000 appeal on Kickstarter to raise money to get the product over the last hurdle and into people’s homes.

www.bristolpost.co.uk/business

Wednesday, November 27, 2013

Construction

Work under way on £3.1m surgery Rupert Janisch Business@b-nm.co.uk

RISTOL-based firm Kitto Construction has started groundworks on a new £3.1 million doctors’ surgery in South Gloucestershire. The current cramped surgery, comprising two 1950s semis in Four Acre Road, Downend, will transfer to Leap Valley Medical Centre, in Beaufort Road, in November 2014. Catering for 10,500 patients and offering seven GPs and 24 staff, this is the fifth doctors’ primary-healthcare facility for Kitto Construction. Kitto Group’s managing director Graham Rowe said: “The existing doctors’ practice operates in a residential area with very limited facilities and no parking. “Our task was to locate an affordable local site which has enough space for a primary-care medical

“ Our task was to locate a suitable affordable local site which has enough space for a primary care medical centre and following many years of searching the Beaufort Road site was acquired by Kitto Developments. Graham Rowe centre. And following many years of searching, the Beaufort Road site was acquired by Kitto Developments. “The site is larger than required for the medical centre, so surplus land will be used to construct nine two-bedroom flats. “Kitto Developments project-managed the design stage, including the planning process and consultations, to ensure quality from start to finish. “Our team offers exceptional value and achieves high standards of com-

● Kitto Group managing director Graham Rowe with doctors Caroline Jones, Maria Norman and Jonathan Evans and practice manager Helen Holbrook at the site of the new surgery in South Gloucestershire. The facility is due to open in November 2014 pletion on time, and on budget, every time.” The GP partners will lease the new property over 21 years. Funding was agreed with a specialist primary-healthcare investment company to own the building. The two-storey building has an L-shaped wing with pharmacy on the ground floor, entrance lobby with patient check-in, information points, adults’ and children’s waiting areas, reception and toilets. The ground-floor medical suite comprises 10 doctor consulting rooms, two treatment rooms and a surgery for minor operations, together with associated utility and storage rooms. Staircases and a lift provide access

to an upper consulting suite along with a meeting and training room, staff rest room and kitchen, offices, community-nursing and health-visitor team rooms, an IT room, stores, toilets and a shower room. There will be on-site parking for 40 cars, new pedestrian-friendly access and landscaped grounds. Kitto Joinery Ltd is manufacturing bespoke joinery. And Kitto Developments Ltd will be developing the on-site flats. Dr Caroline Jones was a patient at the present surgery when she was a baby, and returned 18 years ago to look after the community. She said: “The new surgery is going to be so much better for patients. “We met local residents and we

have been involved with the plans all the way. “It has been a 12-year process to get to this stage and we are delighted to see building begin.” Practice manager Helen Holbrook said: “It is a real morale-booster for the community. “We are looking forward to opening the doors on this exciting building.”

National eco award

Hotel doing its bit for the planet this prestigious award for our commitment to environmental issues. “We are all encouraged to do our bit for the planet and whether on a business or a leisure trip it makes perfect sense to stay at a green hotel. “We are an eco friendly hotel but without the preaching or guilt trips or compromise. We just do it. “More recently, sustainability is of high importance to both corporate and leisure clients looking to book a conference, holiday or a wedding. It seems that the green leaf logo is of great importance.” James Fahey, company director, said: “Key to Winford Manor Hotel’s sustainability is our fabulous enthusiastic staff. “We are fortunate that they understand and are committed to the environment, locally here in the Chew Valley and internationally.”

BUSINESS NEWS ON THE MOVE Our reporters file on the move, and you can keep up to date out and about via the mobile versions of our website bristolpost.co.uk/business

Hi-tech

Start-up firm in line for top national prize ● A COMPANY which specialises in making interactive brochures for tablets is in line to scoop a prize for enterprise and innovation. City centre-based Tablet Brochure is nominated in the national category of the first Ready For Business Awards 2013, when some of the UK’s best start-up businesses gather at a ceremony in London. Tablet Brochure, which was established in March by Paul Tudor, creates interactive brochures that take advantage of touchscreen and mobile technology, enabling retailers to have a tablet presence without the normally high associated costs. It has already claimed the Best B2B Start-Up award in the category for the South West and will now compete against six other enterprising businesses at the national finals which are being held at the House of Commons in London on Monday, December 1. Ready for Business, the investment readiness start-up programme that supports new enterprises across England, has delivered more than 2,500 new jobs nationwide since its launch last summer, with more than 200 jobs created in the South West alone. The programme aims to create 6,000 businesses with 10,000 new jobs, is supported by the Government’s Regional Growth Fund and Barclays and is delivered by the Cavendish Consortium, a partnership between some of England’s leading enterprise agencies together with the National Enterprise Network; in the South West region, Ready for Business is provided by Business West through a network of local agencies.

Technology

SEA lands £5m deal to work on buoy ● A TECHNOLOGY company has won a £5 million deal to develop a communications buoy. SEA, which employs 230 people at sites in Coldharbour Lane, Bristol, Keynsham, and Beckington in Somerset, is a specialist in electronics, engineering and software for the aerospace, defence, space and transport markets. The deal will see the firm work on the second phase of the submarine communications buoy technology demonstrator over the next two years. Andrew Thomis, chief executive of SEA parent company Cohort, said: “This is a really pleasing win for SEA and another endorsement of our world-class expertise in both submarine communications and computer simulation in the marine environment.”

Relocation

Award-winning moves

● Winford Manor Hotel receives the award

● AB Relocate, a Bristol-based home search and relocation company has won an award. The Sneyd Park firm received the Destination Service Provider of the Year title from the Association of Relocation Professionals (ARP). The ARP awards recognise excellence and quality in service in the relocation industry. Director Amanda Bartlett said: “We have worked very hard to grow a caring, friendly and yet successful relocation service for those moving to the Bristol area.”

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A HOTEL in North Somerset has won a prize for sustainability in awards to mark Green Tourism Week. Winford Manor Hotel took the award for the top sustainable hotel in the UK at the Green Oscars, which were held at a conference at @Bristol earlier this month. More than 2,400 initial contenders were whittled down to a shortlist of 61 businesses nominated for the 15 awards. Now in its third year, the annual event honours those businesses and organisations that have done the most to promote sustainability within the industry by implementing cost-saving practices that help the environment, improve customer services and benefit the bottom line. Tracey Beck, general manager at Winford Manor Hotel, said: “Everyone here is delighted to have achieved

WORK UNDER WAY ON £3.1M SURGERY

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Wednesday, November 27, 2013

In pictures: Business people out and about CBI South West annual dinner ● THE South West’s business leaders were told to lift their heads and show renewed self belief and optimism as they rebuild the economy. CBI deputy director general Neil Bentley, speaking at the organisation’s South West annual dinner at the Passenger Shed, Temple Meads, Bristol, said people in other parts of the world believed in Britain’s abilities and so should we. He called on the Government to deliver on infrastructure, saying the M4/M5 improvements would help but movement was also needed on dualling the A303 and other schemes. “We need projects agreed and shovels in the ground,” he said. “The sort of activity will drive growth, create jobs and build confidence.” He said businesses in the region were bucking the trend by growing exports, but needed to do more. He said his key message was: “Invest in the UK and sell to the rest of the world.” The 500 business leaders in attendance were treated to a talk from Tony Blair’s former spin doctor, Alastair Campbell, who delivered an unrehearsed speech based entirely on questions from the audience. He talked across subjects from the Lions rugby tour, the day deputy prime minister John Prescott

punched a voter and revealed he had only been egged once - at Bristol University. And he finished the evening with an accomplished performance on the bagpipes, above. Martin French, Barclays head of Bristol and South West corporate banking, said the banking industry had changed and now wanted to be “efficient enablers” for business. Earlier in the evening children from Year 4 and 5 at Horfield CEVA Primary School performed three songs, including Flash Bang Wallop. Money was raised for mental health charity Mind and the Yeovil Opportunity Group, which helps children with learning difficulties.

● Children from Horfield Primary School perform songs for the guests

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Bristol Business Leaders’ Dinner

● Speaker Simon Moores, programme director and chair of the International eCrime Congress

● LEADERS from across the public and private sectors met in Bristol to discuss how technology is shaping the future of their organisations. More than 100 people attended the annual Bristol Business Leaders’ Dinner, held by KPMG at M shed. Guests were addressed by Phil Cotton, senior partner at KPMG Bristol, and Simon Moores, programme director and chairman of the International eCrime Congress and leading technology futurist. They discussed how GALLERIES changes in technology GALORE are impacting organisations and FOR MORE PICTURES how leaders should Check out our respond to the website at opportunities and ● Emma Woollett, University Hospitals Bristol NHS Foundation risks that the digital Trust, and Ben Kent of Simplyhealth Group Limited bristolpost.co.uk/business world presents. Mr Cotton said: customers, but there are risks too. and cloud computing and “Technology is “Businesses must be careful to put in place robust business revolutionising the way we protect themselves from the strategies to deal with them. do business. Leaders must sophisticated techniques online “The latest technology brings with keep ahead of the rapidly fraudsters are deploying, and keep it a raft of new opportunities to developing areas of online, social their data secure.” interact and build relationships with

● Phil Cotton of KPMG

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Wednesday, November 27, 2013

Bristol Distinguished Executive Address Series

Business diary

● GROUP chief executive officer of FTSE 100 firm Aggreko Rupert Soames was the latest guest to take the floor as part of the successful Bristol Distinguished Executive Address Series (Bristol DEAs). The series is described as providing a unique opportunity to hear about the challenges, issues and decisions being made at the highest level of strategic leadership and is delivered by the Bristol Business School in partnership with ● David Potter, CMI, Steve West, UWE, Peter Ayliffe, Bristol City Council, Business West, chairman Monitise plc, and Nicholas O’Regan, UWE CBI,CMI, IoD and The Bristol Post. Pics: Michael Lloyd Mr Soames addressed the audience at VIDEO ONLINE City Hall, Bristol, and RUPERT SOAMES was See Aggreko chief executive’s interviewed speech on our website, at: on camera by Ian SouthWestBusiness.co.uk Mean, the content director for Local World, the media group which owns the city’s daily newspaper, the Bristol Post. The premise of Mr Soames’ talk was in the context of the global and UK position on energy – not least the question of the cost and ● Above and below, guests at the event availability of electricity which is becoming increasingly important worldwide – and how to reconcile the competing requirements of those who want cheap electricity and those who are concerned about CO2 emissions will become increasingly difficult. Mr Soames joined the board of Aggreko as group chief executive in July 2003. Since then the company has surged from a market capitalisation of £450 million to over £6 billion, and is now in the FTSE-100 and the world leader in temporary power and temperature control solutions, operating in 100 countries.

Get in the picture

Send us photos from your event, with names please, to gavin.thompson@b-nm.co.uk

Networking event at the Novotel

● Roger Opie, of Ablaze, with Cara MacMahon, of Knightstone Housing

● Spike Design Open Day: Free advice with expert business adviser John Hector and Carole Sartain, of Creative Skillset, with lunchtime talk from Rights TV’s Jane Hyndman on issues facing start-up freelancers at Spike Island, 10am-4pm, today, November 27. ● Performance in Troubled Times: The Turnaround Management Association (UK) is teaming up with the Institute of Directors to deliver an evening of training

and networking. Clarke Willmott, Bristol, 6-8pm, Monday, December 2. £25 or free to IoD members.

opportunities with an expert from Business West. Rivergate Centre, Temple Quay, December 5.

● The Engine Shed launch: At the Engine Shed, Temple Meads. Opening of Brunel’s original station as an enterprise hub. From 5pm, Monday, December 2. Followed by after party.

● Portishead Chamber of Trade and Commerce’s business breakfast: Brewer’s Fayre, Gordano Gate, 7.30am to 9.15am on December 6. Tickets are £12 for members and £15 for non members from www. portisheadchamber.co.uk.

● One to one clinics: MDs are being encouraged to step away from their day to day work and take an hour to consider growth

Tell us about your business events by emailing gavin. thompson@b-nm.co.uk

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● New networking event bringing together charities and businesses; right, Paul Williams, Pics: Michael Lloyd Bruton Knowles, and Jonathan Swithinbank, Changing Tunes was brilliant. We’ve had feedback from charities and the companies and there were some real successes with charities making good contacts and getting pledges of support.” About 10 charities and a similar number of businesses attended and Tim says they hope to repeat the event again next year.

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● A NEW business and charity matching event was a great success with several new partnerships formed, according to the organisers. The networking event was held at the Novotel in Victoria Street, Bristol, in partnership with health insurance firm Simplyhealth. Hotel general manager Tim Hawes said: “It

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Wednesday, November 27, 2013

Focus on start-ups | Sponsored by THEME SPONSOR’S NAME HERE.

Commercial property special

DEVELOPERS FACED WITH STRIKING The return of speculative development has brought cheer to the commercial property market. As firms who have been hanging on to their cash start to consider office moves and expansion, Gavin Thompson looks at whether 2014 can live up to the promise

FTER a very tough five years, 2013 has seen the green shoots begin to poke through in building sites in Bristol. And it is not just the residential but also the commercial property market that has seen an uptur n. The headline-grabbers have undoubtedly been the first speculative developments in the city for several years – as work started first on 2 Glass Wharf, a development by Salmon Harvester and NFU Mutual next to the Burgess Salmon offices in Temple Quay, and 66 Queen Square, by Skanska. It has been cause for cheer in the sector. Jeremy Richards, head of the Bristol office at Jones Lang LaSalle,

“ Family businesses are the backbone of the nation’s economy – they are our unsung heroes – and they make a massive contribution to our GDP.

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Tracey Bentham, family summed it up: “It has been particularly encouraging to see the return of speculative development in Bristol over the past 12 months, not just in the commercial property market but in the residential market also, indicating a general rise in confidence levels across all sectors. “With cranes on site at developments such as 66 Queen Square and 2 Glass Wharf, and more commercial office space being converted into residential properties, 2013 will be seen as a turning point in Bristol and a major step in the right direction for occupier levels and inward investment in 2014.” The decision by developers to start building big offices without already having someone lined up to move in shows faith in the market. It also represents something of a gamble, if a calculated one. If it pays off it could mean Bristol hits the jackpot. Simon Price – head of agency at Alder King, one of the agents on both developments – said: “In a national context the size of these developments is large. “This is a real vote of confidence for Bristol. Both developers undertaking these schemes looked at various locations outside London and they selected Bristol because they have seen an upturn in the market and the prospect for growth. It is a big test for the market.” If these two developments are suc-

● Mark Rolt has moved into new premises – near the ss Great Britain – from which he operates Rolt’s Boatyard

Pic: Michael Lloyd BRML20131122B-003

Harbourside base is shipshape for pleasure-boat refurbishment firm ● A HARBOURSIDE shipwright has a new base after moving to a location near the ss Great Britain. Rolt’s Boatyard, previously based by Redcliffe Bridge, has moved to a workshop and yard at the end of Hanover Place near Brunel’s famous landmark. The business is run by Rolt brothers Mark, 54, from Bishopston, and Peter, 56, from Cotham, assisted by Harbourside

Case study resident Gary Grizzel. Working on refurbishment and maintenance of pleasure boats, Rolt’s Boatyard has already received its first large boat for service. Mark, who brings more than 30 years’ experience working with wooden boats, started as a shipwright in 1981.

● 66 Queen Square is one of the first recent speculative developments cessful – if they fill with tenants quickly and at the right prices – then

more are likely to follow and Bristol’s reputation as a driver of growth will

He said: “There was no work at the time but I persuaded someone who worked at a boatyard to take me on. “I loved doing work with my hands, and I have been doing it ever since. “I came down for a weekend in 1986, fell in love with Bristol and the Harbourside and decided to stay.” And he said that the move to

be enhanced. If, on the other hand, no one moves in, do not expect to see too many more diggers around office sites in the city for several years. But most insiders expect the projects, due to be finished in May 2014 and May 2015 respectively, to succeed. Certainly the signs point to a market merry-go-round that is beginning to move. The latest report by CBRE showed take-up of office space in the city centre at 138,187 sq ft for the third quarter. Deals included Barclays taking 18,759 sq ft at Bridgewater House in Finzels Reach, Semperian taking 10,084 sq ft in Broad Quay House after moving from London, and Bristol City Council snapping up 100 Temple Street, a 123,000 sq ft site where it intends to house its

Hanover Place reflected an upsurge in fortunes for his company. He said: “We are definitely through the worst of the recession. We had a very quiet year two years ago but this year has been quite busy. “We have been making a lot of masts and spars for big ships, and potentially it looks like it is all beginning to pick up.”

backroom staff, consolidating its many other smaller sites. CBRE’s report showed total take-up of office space in Bristol city centre this year to be 427,673 sq ft, compared to 409,225 sq ft during the same period last year. The upbeat mood was echoed at Colliers International’s Bristol office, where the firm reported take-up rising 42 per cent on last year. Head of office Tim Davies, left, says there are a number of factors in the city’s favour. He said: “London is getting so expensive that many institutions are looking a lot more at regional opportunities.” He also believes the ripple effect from the decision to build the Hinkley Point C nuclear reactor will reach Bristol, with demand for tem-

www.bristolpost.co.uk/business

Wednesday, November 27, 2013

A TRICKY BALANCE DURING 2014 Networking events are a big bonus for tenant Case study ● ENVIRONMENTAL consulting business Circular Ecology did not want a big office to rattle around in, or a long-term financial tie. Like many people starting new companies, founder Dr Craig Jones wanted flexible workspace in a central location. His company offers carbon footprinting, embodied carbon, water footprinting, resource efficiency and lifecycle assessment services. Dr Jones has taken desk space at Launch Point – Rivergate, located in the Temple Quarter enterprise zone. That is close to the railway station, making it ideal for a firm conscious of its own carbon footprint. He said: “The location is great. It is right near Temple Meads railway station so I found that the price was very good for the area.” The facility offers a dedicated desk, wi-fi broadband, access to meeting rooms and, as an added incentive, access to Business West’s support services and advice with a year’s membership of the Chamber of Commerce. Deskspace is £150 per month – but tenants are not tied to long contracts so do not have to worry about that commitment.

● Dr Craig Jones, inset, has taken his first office space in Launch Point for his business Circular Ecology Dr Jones said: “I have only been based in the Launch Point for a few weeks but I plan on making use of the networking events and training courses.” Dr Jones created the Inventory of

Carbon and Energy, a leading database for materials. He said: “I have discovered that my neighbouring tenants have used the database. My neighbours include some Business West staff,

and it has been useful to learn about their work on environmental projects as I am in the same sector. “This has fostered a new working partnership and will help my business to grow.”

Transport giant takes new base

● Gregory Distribution is leasing the One Highwood Road industrial unit

enue becoming student flats. Mr Richards believes we will see more of that trend in 2014. He said: “We foresee that with a rise in the number of offices becoming outdated and at risk of falling into disuse, coupled with changes to traditional retail, there will be more opportunities for space to be converted into residential developments in 2014, accelerated by the Government’s introduction of permitted-development rights. Sites such as Wapping Wharf and the redevelopment of Bristol

Case study a well-known name in the South West distribution sector. La Salle Investment Management’s confidence in the market has been repaid after spending £300,000 in refurbishing the building. “It demonstrates how the trading estate continues to be an important location for high-street distribution in the region, and its location close to junction 17 of the M5 is one of the best in the area.” Founded in 1919, Gregory Distribution is a privately-owned distribution business. It lists many national brand names among its customers. The company operates from 17 sites from Scotland to West Cornwall, and has 450 trucks, 1,450 employees and an annual group turnover of more than £130 million.

● The vision for the 2 Glass Wharf scheme on Temple Quay

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porary and permanent accommodation along the motorway routes. The crossover between commercial and residential property markets could hold the key to unlocking the potential of the market for the next few years. The Government recently introduced permitted-development rights, which allow old offices to be turned into flats. There are already examples coming through, such as Crest Nicholson’s plans to convert the art deco Electricity House into posh apartments, and 33 Colston Av-

● TRANSPORT company Gregory Distribution has moved its Bristol warehouse space to the Patchway Trading Estate, in north Bristol. Andy Walker, managing director at Gregory Distribution, said: “We are delighted to have secured this facility for our Bristol-based operations, which will allow us to provide additional services to our customers.” The firm has leased the recently-refurbished 41,470 sq ft One Highwood Road industrial unit from landlord La Salle Investment Management. Gregory has taken a 10-year lease on the prominent, detached warehouse which has a large, secure yard. Russell Crofts, industrial partner at Knight Frank, joint agents with Hartnell Taylor Cook, said: “It is great to welcome to Patchway such

General Hospital will also help kick-start wider regeneration in Bristol. “News of the improving market will come at a very good time for speculative developers, giving them many reasons for optimism going into 2014.” Mr Price says that this wave of conversions to residential will clear out the older, more outdated office stock that we all see around the city centre, making way for more new offices built. He says the market is split between those looking at cost and those wanting quality. In recent years firms have been very focused on cost, so moves have been to smaller or cheaper sites. But that is changing. Mr Price said: “We are now seeing more of a focus on better-quality space as companies look to make a statement with their staff and clients.” And at the other end of the spectrum, there are new businesses looking to take that first step on the office ladder. “What they want is great flexibility. They do not know whether they will need to contract or expand in three months. So the managed office business is thriving,” he says. But not wanting to get too carried away, he describes the overall market as “not rosy yet but improving”. Indeed it would easy to get overexcited at these positive signs after such a hard few years since the credit crunch when all building stopped. But there are challenges. The out-of-town market is difficult, with take-up reaching 178,695 sq ft in the first three quarters – down 10 per cent on the same time the previous year. The problem could be supply more than demand. As more businesses look for new, quality office supply, if there is too big a lag in meeting that, businesses could move elsewhere which would harm the city’s growth. Jo Warren, of BNP Paribas Real Estate’s research department, says: “The supply level continues to fall in both the city centre and out-of-town markets.” In the third quarter of 2013, city-centre availability was 2 million sq ft, down 9 per cent on the same period in 2012. Out-of-town availability at the end of the third quarter was 1.26 million sq ft, down 5 per cent on 2012. Ms Warren adds: “While the city-centre market retains a good supply of grade A space, the out-of-town market is now severely lacking, with no readily-available accommodation to service larger occupier requirements.” Patrick Pryce, BNP Paribas Real Estate’s head of Bristol office, says: “Looking ahead, sentiment will continue to improve as economic conditions strengthen. However, it is too early to predict a sustained recovery, as market conditions remain challenging. For a sustainable recovery, more churn from existing tenants is needed.” That leaves developers to strike a tricky balance between building now and gambling on continued confidence, or holding back and risking missing out on – and even stifling – those green shoots.

www.bristolpost.co.uk/business

Wednesday, November 27, 2013

The Big Interview

‘BUSINESS IS RIGHT AT THE HEART Gavin Thompson talks to Steve Hindley, the chairman of construction firm Midas, who says building the company’s reputation is as important as anything it does with bricks and mortar

VER more than 20 years in boardrooms, Steve Hindley has transformed from an engineer into a businessman. He has led Midas as chief executive and more recently chairman since leading a management buy-in in 1998, but suspects his path to management may not have been entirely about his leadership potential. “I remember constructing a support column out of a canal in central Birmingham on a project that became known as Spaghetti Junction,” he says. “Some time later in the build it was discovered that this column was two feet too high. I believe it was this and other technical mistakes that gave rise to my being promoted into management – where I would do less damage!” Joking aside, he admits the transition was a steep learning curve.

Vital statistics Name: Steve Hindley Family: Married with two daughters Other: Chairman of CBI construction panel, member of Vince Cable’s Construction Leadership Council, appointed CBE in 2005

● Romola Garai in Glorious 39

My working day Wake up: 6:30am – days are very varied, so it depends where I am going – sometimes a very early start to catch a flight or train. Other days have a more leisurely start. Breakfast: Bran Flakes and a cup of tea Start work: Whenever I get to the next meeting!! End of day: I probably attend business dinners two or three times a week – quite often in London.

● Exeter Chiefs Pic: Phil Mingo/Pinnacle

My downtime Perfect Weekend: Time at home, walking and of course, watching Exeter Chiefs climb the Aviva Premiership. Favourite Film: Glorious 39 – Stephen Poliakoff TV: Question Time (how sad?!!) Book: Birdsong – Sebastian Faulks

“I had to learn new skills such as marketing, management, human resources, leadership. I learned the best people won’t follow a leader who doesn’t have a clear vision and strategy and a moral and fair approach to how things are done.” The 64-year-old graduated as a civil engineer in 1970. He says you could spot the civil engineers because they were the ones at the bar not having the same kind of illicit fun that everyone else was in the early 1970s. But now he is “unashamedly” a businessman. “I am often amazed by how few people understand that business and only business creates the country’s wealth,” he says. “People say the Government should spend more money on this and that but where does Government get its money from? “Left to politicians and the media, business success is seen as a negative. Profit is a dirty word.” Were profit such a bad thing, then Midas, based in Winterstoke Road, would be in a spot of bother. In the year to April the firm made pre-tax profits of £1.2 million (up from £709,000) and £909,000 after tax (up from £430,000). “Without funds going to the treasury in the form of employment tax, corporation tax and so on there would be no money for schools and

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Please telephone Julian Cook FRICS, Jayne Rixon MRICS, Andrew Oliver MRICS or Finola Ingham MRICS Keep up to date with our latest news, deals and market comments at our web site www.burstoncook.co.uk.

www.bristolpost.co.uk/business

Wednesday, November 27, 2013

OF HOW SOCIETY WORKS’

Social networking What the business world is posting online #BristolBusiness About the LEP conference... ● @OggaDoo (Caroline Macdonald) Low Carbon sector group got ‘bigged up’ by @itspaulwilson in his @WofEnglandLEP introductory presentation #WEconf2013 – hell, yeah :-)

“ I am often amazed by how few people understand that business and only business creates the Steve Hindley country’s wealth

● @WofEnglandLEP Prof Joe McGeehan says the West of England will have broadband that is second to none #WEconf2013 ● @IanBarrettSW C4’s Feisal Islam says the international community is probably incapable of tackling climate change #WEconf2013 ● @Science_Bristol Good day at #Weconf2013. A key point made by @WofEnglandLEP was that our universities will play a key role in generating growth #ivouchers ...About theCBI South West annual dinner... ● @FinnKatharine Surprising end to @CBI South West dinner last night.. @campbellclaret playing the bagpipes (and generally being a great speaker!)” ● @nigeldkey Great evening at CBI dinner thanks Baker Tilly. Alastair Campbell excellent speaker.

● Steve wins this year’s South West Property Personality of the Year award ness with a fine reputation with customers and employees that was based upon a clear understanding of values of the business by all the people involved. “Since then we have grown 10-fold, we employ 450 people now. But the same values are still embedded in the business. People must buy into those values. Fairness, integrity, honesty.” How those values filter down through a company is key.

“Private Smith never dies for King and country but he dies for Corporal Jones and five other guys that stuck with him,” says Steve. “We expect people to go by the values of a massive organisation and it doesn’t work like that. People are influenced by their immediate co-workers and team leader. Organisations must work very, very hard to make sure values go through the organisation.” In the construction business that’s

even more important. Steve recalls a story of builders making inappropriate remarks to a woman walking past a site in London, who turns out to be an investment banker reviewing a decision on whether to back that same firm. Truth or folklore, the point is valid. “The construction business is played out in public,” he says. “We do our work in local communities, schools, hospitals and universities, so how our people live the values of the company is open to public scrutiny. Maintaining high standards throughout is imperative to us.” Midas has policies covering all the things you’d expect from a responsible modern business, such as waste management, carbon reduction, training and development, community involvement and environmental protection. But for Steve, ethics and good business practice comes down to whether you want short or long term gain. And that’s a matter he has a very personal stake in . “As a major shareholder director, I want Midas to be successful in the long term not just the short term,” he says. “No business remains successful in the long term without a strong ethical foundation. “Short term gain might be good for my house extension but I want to make sure it is successful in future years.”

...About hotels... ● @BTQEZ BristolTempleQuarter Bristol hotels are enjoying strong recovery according to new survey. Arena plan is expected to give a further boost ...and about China ● @GeorgeFergusonx Great to cement relationship with #Bristol sister city #Guangzhou Mayor Chen at the #GreatHallofthePeople in #Beijing... Follow us on social media

@gavin_thompson1 uk.linkedin.com/pub/gavinthompson /67/624/281/Edit

@BristolPost @swbusinessnews

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hospitals, nurses and teachers. £164 billion in direct taxes is paid by business to the Treasury each year,” Steve explains. “When a company makes a profit, a third of that goes straight to the Treasury in corporation tax, a third is reinvested for future growth and the remainder goes to shareholders who will invariably be the pension funds who we will all rely upon in our old age. “Business is fundamental to the core of how society works. My position is ‘why is that not recognised?’ Of course that doesn’t mean business has a right to run roughshod over others in society.” Steve recently gave the keynote speech about ethics at the Board2020 event held at the UWE Exhibition and Conference Centre for business leaders in Bristol. So what does ethics in business mean to him? “I prefer to keep it simple because I am an engineer,” he says. “Ethics is about right and wrong. What are the principles that should guide behaviour and what are the values we should live by?” Midas has a clear mission statement. It aims to “be widely acclaimed for industry leading performance and customer service”. Steve says: “Midas came into existence in 1976 in a dining room, founded by Len Lewis, a civil engineer. When I took up the reins in 1998 it was already a successful busi-

● @PeachesTweet (Peaches Golding OBE, below) Thanks, @campbellclaret, for highlighting mental health in workplace at CBI SW Dinner in Bristol. Better services & employer understanding.

www.bristolpost.co.uk/business

Up and coming

Wednesday, November 27, 2013

Movers & shake-ups The future of business

The latest appointments news. Send your news to business@b-nm.co.uk

Entrepreneurship

● COMMERCIAL property consultancy Lambert Smith Hampton (LSH) has appointed Liz Findlay as regional facilities manager in its Bristol office. Liz, pictured, has joined the property management team from Jones Lang LaSalle and will be working with key clients across the South West region. She said: “I am excited at the challenges and opportunities that lie ahead.” Darren Clarke, head of property management in Bristol, said: “Liz will play a key role in continuing to support the current growth of our varied portfolio across the region.”

● From left, Verity Perry, Beth, Williams, Anthony North-Row, Robert Wilson, course leader Carol Jarvis, Stephen Curtis, Raeanne Manning, Ivan Bahri and Photographer: Barbara Evripidou BRBE20131121E-001 Thomas Firth

Revolution in learning key skills Rupert Janisch Business@b-nm.co.uk

GROUND breaking course at UWE aimed at producing graduates with experience of running their own businesses has just welcomed its first 37 students. Called Team Entrepreneurship, the course structure involves no classrooms, compulsory lectures or exams and has been introduced to the UK for the first time this year. The degree course is based on methods pioneered in Finland and also run successfully in Spain and Hungary, and has been described as a

revolution in management education. Course leader Carol Jarvis, from UWE’s Bristol Business School, said: “Running a real business – devising a product or service and selling it to customers – is what drives the students’ lear ning. “All students have an equal financial stake in the companies they create and will learn to manage the risks and rewards this entails. “We believe they learn better, and the information is retained, as they acquire knowledge when they need it. They learn by applying theory to practice and by reading material as it becomes relevant to them. “The first group of students are already showing themselves to be confident, resilient, highly motivated team members.”

Part-way through the first term of the course the two teams, called Think Limitless and LTRL, are already coming up with their first business ideas and developing a friendly sense of competitiveness. The teams are currently being registered as companies, to form an umbrella under which they will set up and run a wide array of business projects. This year, students have got the challenge of raising an average of £2,500 per person from their enterprises. Ideas for businesses under way so far include a top quality clothing company, a classic car parts company, and creating a business model for selling customised headphones into the student market in other universities. All the students are enthusiastic about the new structure and oppor-

tunities of the course. Jamie Rawsthorne of LTRL said: “We were left to own devices from day one, and have to find out what to do to run a company. “We are at uni full time for a combination of training sessions and workshops run by coaches who are really professional and mean we are having some really creative conversations with real business experts.” Tom Bromley, of Think Limitless, said: “I chose the course because I knew it would provide me with invaluable experience in the business world, as opposed to learning theories and not having the opportunity to implement them. “The course has really boosted my confidence and already only two months in, the diversity of tasks completed has been great.”

Youth volunteering

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Bid to double number of young helping out in their community STUDENTS at the University of Bristol are among those to pledge volunteering time in the launch of a collaboration across British society to recognise and support young people. The Step Up To Serve campaign was launched at Buckingham Palace last week in conjunction with a national pledge initiative supported by leading politicians, royalty and social and voluntary youth groups. And the story of University of Bristol students Paulina Platek and Alice Holden are being shared by the campaign to showcase youth volunteering activity. Current estimates suggest that just 29 per cent of young people are already active in their communities and the aim of the campaign is to double that. The work will be done by increas-

ing existing opportunities and opening up new and better ones. The campaign is focused on young people from the ages of 10 to 20, with a specific focus on building a habit for life. Pauline and Alice are Lloyds Scholars at the University, and the Lloyds Banking Group is a pioneer partner of the Step Up To Serve campaign. As part of the programme, Pauline and Alice will contribute to the 40,000 volunteering hours committed to the campaign nationwide by Lloyds Scholars. The Lloyds Scholars programme opens doors to students who otherwise might not have had the financial backing to attend leading universities. The programme offers students from lower income households a complete package of financial support,

● Paulina Platek, who set up The Clothes Line paid internships, a business mentor and the opportunity to develop their employability skills. In return, students must volunteer for at least 100 hours per year whilst

participating on the programme. For 2013/14 this means Lloyds Scholars will be contributing at least 3,700 hours of volunteering to the Bristol community.

● INDEPENDENT law firm Wards Solicitors has made two appointments and moves in its Bristol city centre and Weston-super-Mare offices. Rebecca Purchase, above left, joins as a solicitor in the Bristol wills, wealth and mental capacity team, having recently qualified. Emma Wildblood, above right, a specialist family lawyer, has joined the Westonsuper-Mare office. Emma specialises in situations when the local authority has applied to the courts to have a child taken into care. She said:“I am looking forward to working as a part of one of the leading, specialist family teams in the region.” ● COMMUNICATIONS agency, Grayling, has strengthened its team with the appointment of Nasima Hussain. Nasima, pictured, joins as director to lead the Bristol based team and drive future business development and growth. She will also assume lead role on some of Grayling’s largest consumer clients including Marks and Spencer and Land Securities, which owns Cabot Circus shopping centre. Grayling managing director Sally Rhodes said: “We are delighted to welcome Nasima to the team. She brings a wealth of experience which will enable us to provide clients with the very best strategic counsel on consumer engagement.”