Business Leader Magazine: April/May 2021

ISSN 2632-7155

9 772632 715003 9.75 APRIL/MAY 2021 • £9.75

www.businessleader.co.uk

CUT FROM THE RIGHT CLOTH Business Leader talks to Touker Suleyman about his fashion and business empire

scaling your business Female founders tell their stories

uk tech sector review

Record levels of investment described as 'Force for Good'

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CONTENTS

IN THIS EDITION

8

8 FEATURE INTERVIEW: TOUKER SULEYMAN

Dragons' Den star discusses starting off in business and lessons he learnt early on in life

12 OPINION: ECONOMY & POLITICS

Should the UK become more like Singapore in its role as a low tax business-friendly country?

16 SUSTAINABILITY IN BUSINESS

With the ‘green agenda’ set to be a top priority for businesses and governments across the world – are we making any progress?

20 REVIEW: MERGERS & ACQUISITIONS

32 FEATURE: SCALE-UP

54 PEOPLE & APPOINTMENTS

With changes to taxes and a year like no other as a backdrop, Business Leader reviews the M&A sector

Female scale-up leaders talk about the challenges they faced in their business journey to success

40 TOP 32 HEALTHTECH INNOVATORS

Round-up of recent appointments and promotions from across various sectors

56 REVIEW: UK TECH SECTOR

Profiling 32 of the UK's leading healthtech firms that will drive the agenda for wellbeing and health

How is the UK technology sector holding up after the last 12 month and what verticals will grow in the future?

50 DEBATE: FUTURE OF WORK

62 INTERVIEW: BRAD SUGARS

40 Business Leader - Inspire • Inform • Connect

Has productivity been boosted or harmed by the great working from home ‘experiment’? Business Leader investigates

A self-confessed 'Ozmerican', ActionCoach founder, Brad Sugars talks candidly about why more people don't think like billionaires

1

NEWS

EDITORIAL Oli Ballard - Editor E: oli.ballard@businessleader.co.uk Barney Cotton - Digital Editor E: barney.cotton@businessleader.co.uk DESIGN/PRODUCTION Adam Whittaker - Senior Designer E: adam.whittaker@businessleader.co.uk

Business Leader team up with comedian Tom Allen for live events

SALES Sam Clark - Business Development Manager E: sam.clark@businessleader.co.uk Emma Filby - Business Development Manager E: emma.filby@businessleader.co.uk DIGITAL & WEB Josh Dornbrack - Head of Multimedia E: josh.dornbrack@businessleader.co.uk Melissa Shephard - Website Development E: melissa.shephard@businessleader.co.uk CIRCULATION Adrian Warburton - Circulation Manager E: adrian.warburton@businessleader.co.uk ACCOUNTS Jo Meredith - Finance Manager E: joanne.meredith@businessleader.co.uk MANAGING DIRECTOR Andrew Scott - Managing Director E: andrew@businessleader.co.uk

Business Leader has recently announced a partnership with comedian Tom Allen for some upcoming live events.

With the government’s vaccine rollout successfully inoculating more than 50% of the adult population in the UK, Business Leader will be releasing details of its world class live events in due course.

Tom Allen’s style of sharp, acerbic wit and camp, riotous storytelling has seen him become a household name in the UK in recent years.

He is known for being the host of The Apprentice: You’re Fired, co-host of Bake Off The Professionals, regular on Bake Off: An Extra Slice and Alan Carr’s There’s Something About Movies as well as numerous appearances on Mock The Week, Live At The Apollo, Hypothetical, The Royal Variety Performance, 8 Out Of 10 Cats, Cats Does Countdown, Would I Lie to You and Roast Battle.

During the pandemic, he kept entertaining the nation on TV shows such as Richard Osman's House of Games, QI, Hypothetical, the Great Christmas Bake Off and Celebrity Catchphrase.

Andrew Scott, Founder of Business Leader comments: “I am excited to get back to live events in the very near future and all attendees to our awards and shows will be delighted to hear from one of the country’s leading comedians.

“Tom will be the host for our Business Leader Awards in September – which is sure to be a highlight of the year!”

For more information, please visit www.businessleader.co.uk

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April/May 2021

NEWS

Deliveroo aiming for £8.8bn valuation through floatation on LSE

▴ William Shu Founder, Deliverooo

Food delivery giant Deliveroo has announced that it is seeking a valuation of up to £8.8bn when it starts selling its shares on the London Stock Exchange (LSE). The minimum expected valuation would be £7.6bn.

Unicorn businesses globally now worth $1.7tn A unicorn business is a start-up that has reached a valuation of more than $1bn - and recent data has shown their enormous value across the world.

The London-based digital delivery service revealed it plans to sell its shares at a price of between 390p and 460p - which would make it the biggest UK share listing since 2013.

Data researched by Trading Platforms UK, indicates that the global unicorns are now cumulatively valued at $1.7tn as of January 2021. The valuation is for the 528 total global businesses.

Demand during the pandemic for its service has increased 121% when compared to the previous year.

With a cumulative value of $410bn, the top ten unicorns take up a share of 24.09% of the total global unicorn valuation.

“We are proud to be listing in London, the city where Deliveroo started,” Founder William Shu said in a statement.

“Becoming a public company will enable us to continue to invest in innovation, developing new tech tools to support restaurants and grocers, providing riders with more work, and extending choice for consumers, bringing them the food they love from more restaurants than ever before.”

China’s AI company Bytedance is the most valued unicorn at $140bn. Vehicle hire company Didi Chuxing, also from China, ranks second with a valuation of $62bn. Elon Musk's United States-based SpaceX is third with a value of $46bn. Fintech firm Stripe is fourth with a $36bn valuation, followed by Roblox at $29.5bn. Rivian, also from the US, ranks sixth at $27.6bn, followed by China’s video-sharing app Kuaishou with $18bn in value. US grocery delivery firm Instacart is eighth with a valuation of $17.7bn, while Epic Games is ninth with $417bn in value.

Elsewhere, One97 Communications from India ranks tenth with a value of $16bn.

Customers who have placed at least one order with Deliveroo will have a chance to buy shares in the business - with 'loyal' customers able to buy more.

UK GDP falls 2.9% in January due to new lockdown Chancellor of the Exchequer, Rishi Sunak, has announced data showing a 2.9% drop in Gross Domestic Product (GDP) during January - as the country went into its third national lockdown.

Current Office for Budget Responsibility (OBR) forecasts have GDP dropping 3.8% in Q1 2021 before growing 3.9% in Q2, should the vaccine rollout continue to be a success.

Alongside this announcement, it was revealed that exports of goods fell by £5.3bn in January 2021, and imports fell by £8.9bn.

In total, the UK economy is 9% smaller than it was before the start of the coronavirus pandemic.

In a statement, Sunak said: “Today’s figures highlight the impact the pandemic continued to have on our economy at the start of the year as we tackled the new variant of the virus - and I know this is a cause of concern for many.”

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April/May 2021

NEWS

'Made in Britain’ tag worth additional £3.5bn a year to UK exporters As the UK government negotiates new trade deals in markets across the globe, research from Barclays Corporate Banking reveals how British exporters can benefit from price premiums of up to £3.5bn per year in ten key countries.

In an international study of over 10,000 people across ten markets (United States of America, Republic of Ireland, France, Netherlands, Germany, South Africa, UAE, India, China, South Korea), Barclays asked respondents how much extra they’d be willing to pay if products such as food and drink, clothing and cars bore a Union Jack kite mark. The results show that products made in the UK are still held in high regard around the world and that consumers are willing to pay a premium for them.

Consumers in populous, far-flung markets, are prepared to pay most for British-made goods. Those in India lead the way, being prepared to pay an 11.8% gross premium for products made here, followed by the UAE (10.9%), the USA (10.4%), South Africa (9.6%) and China (8.8%).

LISTEN

James Binns, Global Head of Trade and Working Capital at Barclays Corporate Banking, comments: “As the UK enters a new era on the international stage, our research highlights that there is strong appetite for British-made products all over the world. Most notably, it shows there is significant opportunity for growth in markets such as China, India, and the UAE, which is timely when new trade routes are being opened up to markets further afield. While the EU and the US remain the biggest trading partners for the UK, there are considerable opportunities for British businesses to grow exports to less traditional markets.”

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B R A N D

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D I G I TA L

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D E S I G N

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NEWS

End of furlough could trigger up to 275,000 job losses across the UK

EA completes $1.2bn takeover of Codemasters Electronic Arts Inc (EA), a global video games giant, has announced the completion of its acquisition of British rival Codemasters $1.2bn.

EA stated that bringing together two of the largest game developers in the industry will enable further growth for the firm.

Codemasters is behind some of the most popular racing brands in the world, including Formula 1, Need for Speed, DIRT, DiRT Rally / WRC, GRID, Project CARS, Real Racing, and more.

Andrew Wilson, CEO of Electronic Arts

comments: “This is the beginning of an exciting new era for racing games and content as we bring together the talented teams at Electronic Arts and Codemasters. Racing fandom continues to grow worldwide, and the franchises in our combined portfolio will enable us to create innovative new experiences and bring more players into the excitement of cars and motorsport.

"Our teams will be a global powerhouse in racing entertainment, with amazing games for players on every platform, and we can’t wait to get started.”

Unicorn business Gymshark opens North American HQ Unicorn business and fashion e-commerce giant Gymshark has announced its expansion into the Uunited States.

A significant percentage of its turnover comes from the American market.

Gymshark’s Denver office, or GSDNV, will localise the company’s offering, enabling it to grow its business over the next five years.

Oktra, the design and build company behind each of Gymshark’s locations in the UK and Hong Kong, has designed GSDNV and led the project from its office in the UK. “The opening of GSDNV is the latest milestone on this incredible Gymshark journey,” says Paul Richardson, Executive Chairman of Gymshark. “Culture and community flows through everything we do and stand for. That’s why, alongside the guys at Oktra, we’re delighted to have built a US headquarters that echoes what we stand for but has its own identity.”

6

274,720 jobs are at risk of being lost following the end of the furlough scheme, according to new analysis by insolvency score Red Flag Alert.

The firm’s most recent data shows that 26% of the 741,285 companies making claims under the Coronavirus Job Retention Scheme (CJRS) are showing signs of extremely poor financial performance. This means 193,721 companies are vulnerable to the risk of going out of business, with 12,600 of these failing within six months of furlough ending and leaving almost 275,000 people unemployed.

Dr Nicola Headlam, Head of Public Sector at Red Flag Alert, explains: “A smaller number of businesses, around 5,000, which are registered under the Coronavirus Job Retention scheme are already insolvent or very close to insolvency. Realistically, come the end of September, these companies will be in a position where tens of thousands of jobs have already been lost or will disappear very quickly. Sadly, this is the very thin end of the wedge. There’s a much larger proportion of companies claiming furlough, which won’t be able to pay 100% of wages after 30 September. This will see a wave of cost cutting measures as many try to repair balance sheets and fight for survival and will inevitably lead to company failures and job losses in the six months after the scheme has finished.”

April/May 2021

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COVER STORY

8

April/May 2021

TOUKER SULEYMAN

'This was all part of my demise

– I had some very hard lessons early on in life’ Business Leader talks to business tycoon and Dragons’ Den star Touker Suleyman.

IS IT CORRECT THAT WHEN YOU CAME TO THE UK YOU COULD NOT SPEAK ENGLISH? My parents came to the UK in 1958 to escape the troubles in Cyprus and when we arrived, I was ten years old, and my English was limited but I soon picked up the language.

My first job outside of school was with an accountancy firm called Ridley and Co in Southampton Row and I was earning £5 a week, plus expenses.

HOW DID YOUR CAREER AS AN ENTREPRENEUR START? At that time there were three industries that stuck out; and these were property, fashion and being a celebrity.

Before I took my finals, I became restless and branched out into the fashion world working for a business in Dalston Lane, London. Within 18 months I had bought the owner out.

I was 21 years of age and we were supplying C&A (a major retailer at the time) and I made my first fortune very quickly and became active in this world. Then, I bought a stake in a public company called Mellins. The shares were 3p but soon they climbed to 360p.

I also bought a big stake in a business called Bamber Stores, which was a fatal mistake.

WHY WAS THIS SUCH A BIG MISTAKE? I bought into the business without conducting proper due diligence, and this was a big business lesson for me. In my mid-twenties I was the Chairman of two public companies, and I believe the youngest ever to hold this role.

PwC carried out a review of the business though, very quickly after I had bought it, which detailed that Bamber was insolvent and £26m in arrears. I was advised to resign, and like a pack of cards, the whole business and my personal wealth collapsed.

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I was young and naive, and I had been manipulated by stockbrokers at the time.

HOW DID YOU TRY AND SAVE THE SITUATION? Prior to the business collapsing, I was given the opportunity to raise money in Mellins and a broker said he would approach some people he knew, one of which was Robert Maxwell. I was then approached by Asil Nadir (a British Turkish-Cypriot business tycoon that later become famous for being found guilty of false accounting and sent to prison for ten years) who said he could help to fund my business.

He told me he would provide the funding and that I should not go and see anybody else. I thought great – he is a fellow Cypriot, but four weeks went by and I heard nothing. I tried to call him because it was a race against insolvency. I finally received a call from his secretary who told me that he did not want to proceed anymore. It was planned and I believe he did this because he felt that, as a Turkish Cypriot, I was a thorn in his side, and he had his own plans.

THIS MUST HAVE BEEN A HUGE LESSON FOR YOU? This was all part of my demise at the time, and I received some hard lessons very early on. I was at the top of some public companies, but I did not have the knowledge needed at the time.

It was the best lesson of my life though and it toughened me up. I learnt not to take people at face value and to question why people want to help you.

I said to myself though that this is not the end of the journey, it was just the beginning.

Cont. 

9

COVER STORY WHAT DID YOU DO NEXT? I then went into business with my brother, and we had a business called Low Profile and I took my knowledge of manufacturing into the business and we very quickly were supplying the biggest names on the high street with products.

I was fortunate in those days that manufacturing was profitable. We moved into Turkey at a very early stage and met with influential businessman there who helped me grow the business.

It was a cash generating business and we invested in commercial property in Fitzrovia too. This all created the backbone to my comeback.

HOW DID YOU END UP ON DRAGONS' DEN AND DID TAKING PART IN THE SHOW CHANGE YOU? I was approached – around eight years ago – to have a screen test for Dragons' Den which was successful.

I see myself as an entrepreneur and not a TV personality though – I was once told about fame that it is great on the way up, but they will bring you down eventually – and it is best to be on the level.

Fame or money does not go to my head and I am not different now to when I was in my twenties. I have always hated holidays and I am a legacy builder – even when

I went on vacation, I was on the phone working. What makes me tick is that I like to win. It is not always about the money but being able to win within oneself. It is about waking up in the morning and having a purpose.

WHAT PUTS YOU OFF FROM MAKING AN INVESTMENT IN A BUSINESS OR A PERSON? When somebody does not know their numbers and thinks they can pull the wool over your eyes. You will start to ask questions and it will all unravel quickly, so there is no value in trying to do this. Silly valuations are frustrating too and some of them are crazy. Some of them are picked out from the sky!

"LET US NOT FORGET THAT 70% OF RETAIL IS BRICKS AND MORTAR AND I BELIEVE THAT WE ALL MISS THE HIGH STREET NOW AND YOU MISS WALKING TO THE SHOPS. MY PARTNER SAYS TO ME THAT SHE CANNOT WAIT TO GO OUT TO THE SHOPS AGAIN."

YOU OFTEN ADVOCATE FOR MANUFACTURING OVERSEAS IN CHINA AND TURKEY FOR EXAMPLE. THERE HAS BEEN A RISE OF ‘MADE IN BRITAIN’ AND USING NATIONAL SUPPLY CHAINS. WILL YOU CONTINUE WITH THE APPROACH OF USING MANUFACTURING OVERSEAS? There are certain industries where the Made in Britain tag makes sense, such as food, cosmetics, and engineering, however, China remains great value for the quality of product you get with certain types of manufacturing.

We have one of the leading baby teething products and all of this is in made in China because it makes commercial sense; and we’ll continue to operate this way.

I WANT TO TALK ABOUT THE FASHION SECTOR NOW, AS IT IS ONE YOU’RE HEAVILY INVOLVED IN? WHAT DO YOU NEED TO HAVE TO STAND OUT IN THIS SECTOR? To be successful in this sector you need a USP in the product, or you need to disrupt on style and price – or you need to have a brand that elevates everything to a higher price.

This is what we are doing now with one of our brands – Finery. It is being repositioned as a style and price disruptor.

WIDENING THIS OUT TO RETAIL AND THE HIGH STREET – WHAT DO YOU SEE AT ITS FUTURE? Let us not forget that 70% of retail is bricks and mortar and I believe that we all miss the high street now and you miss walking to the shops. My partner says to me that she cannot wait to go out to the shops again. I believe it will survive and brands like Next and Marks & Spencer will do very well.

Online will not go away though and there are not many big retail brands left on the high street if you take away Zara and H&M; but I do not see it falling away like some have said.

I believe that, overall, the economy will bounce back quickly too. People want to get back out; they want to go to restaurants; they want to go on holiday.

The government is also doing a great job on vaccinating and a good job helping businesses, but you cannot help everybody.

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April/May 2021

TOUKER SULEYMAN DO YOU WORRY THOUGH THAT BUSINESSES MAY NOT BE ABLE TO PAY BACK THE LOANS THEY HAVE TAKEN ON? Yes I do, and it is the case that some businesses have kicked the can down the road by taking on government loans in the hope that they will trade their way out of these difficult times eventually. I maintain that the economy will recover quickly but we will see more casualties because of bad debt from government loans. Many

of the larger businesses were well funded anyway and still took on the loans, so it is the smaller firms that will be hurt the most.

YOU ALSO EXPECT TAXES TO RISE, I AM GUESSING? Yes, taxes will rise, and the Chancellor will need to be creative.

I think an online sales tax is a good idea, but it would need to be for business that generate more than £8m turnover online;

"IN THE LAST RECESSION, IT WAS SMALL BUSINESSES THAT TOOK US OUT OF RECESSION. I HOPE THAT GOVERNMENT REALISES THAT WE NEED SMALLER BUSINESSES TO SURVIVE AS THEY BECOME THE LARGE BUSINESSES OF THE FUTURE AND CREATE EMPLOYMENT."

and if they turnover below this amount they are not required to pay the tax.

In the last recession, it was small businesses that took us out of recession.

I hope that government realises that we need smaller businesses to survive, as they become the large businesses of the future and create employment.

And why aren’t we taxing vaping? This could raise some cash.

OVERALL, YOU SEEM OPTIMISTIC ABOUT THE FUTURE? I am and I honestly believe optimism comes from within. In every bad situation you can make it good. I am not a doom and gloom person. The world will go on and survive and we all need to do our little bit to stay safe and work a bit harder.

There is lots of money available for businesses looking to grow too and it has never been easier to raise money and there is so much cash out there. I believe it is the start-ups of today that will be the big firms of tomorrow. 

GET A COPY OF BUSINESS LEADER MAGAZINE SENT TO YOUR HOME With many people now working from home, our circulation team is working hard to make sure that our readers don’t miss out on receiving their copies of Business Leader Magazine.

To have your copy sent to a new address, please email editor@businessleader.co.uk or call 020 3096 0020

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11

OPINION

NO LOCKDOWN,

NO VIRUS WHAT CAN THE UK LEARN FROM SINGAPORE AND TAIWAN? Following the vote to leave the European Union, some called for the UK to become Singapore without the sun – referencing its role as a low tax business-friendly country.

Since then, the pandemic has overtaken Brexit as the core business talking point and impacted nearly every economy in the world. But once again Singapore – along with other Asian economies like Taiwan and South Korea – have emerged as examples of best practice for dealing with this crisis.

Interestingly these countries have had fewer lockdowns, fewer COVID-19 cases, fewer deaths, and their economies haven’t been plunged into the red.

So, is it time Britain started learning more from these economies and accepting that losing some liberty would be a price worth paying to benefit from some of the spoils that countries like Singapore get through their heavily government-influenced approach that is also pro-business?

Or are we doing fine in the UK and would such government interference in our lives not be a price worth paying and does the size of these countries and their cultural history make a comparison unfair?

Business Leader investigates this question by talking to two academics who have been following the region and their

12

response to the pandemic, compared to the UK. Opinion – Dr Ben Williams – Salford University: "Compared to other island nations which likewise lack directly adjoining land borders, the UK’s response to the COVID-19 pandemic has been found significantly wanting in some areas.

"Particularly in relation to Asian island countries located much closer to the epicentre of the pandemic’s outbreak, the contrast could not be greater. To illustrate this, while as of late February 2021 the UK had registered over four million cases and over 100,00 deaths from the virus (and rising), by contrast, the island state of Taiwan recorded than 1,000 cases and only nine official deaths, while Singapore has experienced 60,000 cases and fewer than 30 deaths.

"THIS STEEP DIVERGENCE IN SUCH HEALTH STATISTICS IS MAYBE EVEN MORE SURPRISING GIVEN THE MUCH DIFFERENT PROXIMITIES OF THESE THREE COUNTRIES IN REGARDS TO THE CHINESE ORIGINS OF THE OUTBREAK." Dr Ben Williams

"This steep divergence in such health statistics is maybe even more surprising given the much different proximities of these three countries in regard to the Chinese origins of the outbreak, but there are various explanations for what seems to be a stark and damning comparison."

Serious threat An initial consideration is that such Asian island nations seemingly took the threat more seriously from the outset in early 2020.

Consequently, countries such as Taiwan, Singapore and others within the broader Chinese sphere of influence reacted more quickly to what was initially a more localised threat, swiftly tightening up their borders and instilling harsh quarantine regulation for those entering the country.

Face-masks were also encouraged to be worn from an earlier stage than much of Europe, acting as an obvious physical obstacle to halting the virus’s spread. The nature of this swift reaction could be linked to direct experiences of the SARS virus in 2003 which primarily impacted this part of the world, while the western world was largely untouched by it.

April/May 2021

ECONOMY & POLITICS

Taiwan Cases: 1,000 Deaths: 9 GDP: 2020 3.11% 2021 4.64% est

Singapore Cases: 60,000 Deaths: 30

UK

GDP: 2020 2021

Cases: 4,000,000 Deaths: 100,000

-3.5% est 5.5% est

GDP: 2020 -9.9% 2021 4.5% est

Use of technology key These Asian island states also appeared to have made much better and more effective use of technology as part of a sophisticated testing and tracking system, suggesting better and more generous investment on their part in such technical infrastructure.

Boris Johnson has repeatedly claimed that the British system of track and trace was ‘world beating’, but it has suffered a series of well-publicised problems and failures, and pales into comparison with these global alternatives.

Indeed, Harvard epidemiologists have described the Singapore tracking system as the ‘gold standard’ in the field of virus detection and control, which notably focused on those without symptoms also, consequently further limiting the spread of what was often a symptom-free illness in many cases.

Yet, from an angle of cultural difference, some commentators have noted that the extent of such tracking in these countries and its use of personal data involves a degree of surveillance that would possibly infringe human rights and privacy laws

in the west, which reflects a contrasting political culture whereby government control and repression is more pronounced and even accepted, while individual rights are less protected.

More authoritarian, better results?

While this would usually be a source of criticism by normative global political standards, in this instance it is arguably the case that more authoritarian-inclined states have dealt with the outbreak better for this very reason, and there have been fewer prolonged lockdowns in such countries as a result.

China is also another obvious regional example as to how to ruthlessly suppress the spread of the virus, while often bypassing civil liberties. Yet as such personal liberties across these Asian nations were already weakened compared to western standards, they have been easier to over-ride and further erode amidst such circumstances.

In fairness to the British government, this could indicate that specific historical, geographical, and cultural factors have made the Asian region much better prepared and ultimately more aware of the

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emerging threats from such a global health crisis, and this was a specific variable that the Johnson administration cannot be directly blamed for.

Prime Minister Johnson also appears to be an instinctive libertarian, being the product of a political environment where personal freedoms are highly valued and protected by long-standing laws. This is a very different culture from much of the Far East, and it has created a dilemma for him in both personal and political terms in how he has dealt with the pandemic over the past year, arguably hindering his reactions in the process.

In the short-term amidst the ongoing duration of this prolonged crisis, Johnson and his ministers have struggled to balance the demands of medical experts with those of backbench MPs and the wider business community who have been obviously concerned about the economic implications.

Cont. 

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OPINION Balancing such health and economic pressures has been a difficult square to circle, and this represents a specific problem for a country like Britain, which unlike the Asian comparative examples has a more deep-rooted history of both economic (free-market) and political (liberal-democratic) freedoms.

Anti-lockdown sentiment There have been significant anti-lockdown protests, a considerable degree of regular dissent and breaches of lockdown rules, and some government MPs have formed the ‘Covid Recovery Group’, which is demanding an end to current lockdown restrictions sooner rather than later.

Although he can point to success regarding the vaccine roll-out, Johnson appears reluctant to depart the current (third) sustained lockdown too soon (as some accused him of doing in late summer 2020), and his government continues to face further difficulties as it seeks to salvage its battered reputation arising from its troubled response to the pandemic, in comparison to the more effective approaches of other island states across the other side of the world.

ECONOMY & POLITICS "The contraction of the global economy in 2020 is mainly due to the lockdown restrictions that have been widely adopted around the world to contain the transmission of COVID-19 and to prevent overwhelming of health systems. The government’s responses to the pandemic, however, have been significantly different between countries, without a clear and consistent approach. This has resulted in some countries being able to control the pandemic better than others, with important implications for their economies."

Efficient test and trace Several Asian countries, including Taiwan and Singapore, supported by innovative technology, have immediately implemented efficient test and trace systems, imposed face masks, social distancing, and border closures, and had robust public health infrastructure.

This is because they already, and relatively recently, experienced severe respiratory diseases such as SARS-CoV-1 in 2003.

On the other side, a country like the UK had to face the pandemic after a decade of austerity that has severely affected the NHS. Additionally, the test and trace system has not been particularly efficient, face masks have initially not been imposed, and the borders have been kept open.

As a consequence, while Taiwan never had to go into lockdown and Singapore stopped the lockdown restrictions in June, the UK, having one of the highest death tolls in the world, is still under a national lockdown that will be gradually eased over the coming months but only if it will be safe to do so according to the data.

▴ Opinion – Dr Maria Rana – Salford Business School: "According to the latest World Economic Outlook published by the International Monetary Fund (IMF), the estimated contraction of the world economy in 2020 is -3.5%, with advanced economies declining by -4.9% and emerging markets by -2.4%.

"The recent roll-out of vaccines gives us hope and reasons to be optimistic about the economic outlook in the near future, with the world economy projected to grow by 5.5% in 2021 and 4.2% in 2022, even if ‘exceptional’ uncertainty remains.

14

Due to the mix of national and local prolonged lockdowns since the start of the pandemic, the UK’s national income decreased by 9.9% last year, the highest contraction since record began and one of the worst among G7 economies. The UK’s economy strongly relies on service

industries (retail, finance, entertainment, hospitality, and tourism, etc.), which in 2019 accounted for 80% of total economic output.

With the UK’s relations with its major neighbour trade partners in Europe negatively affected by Brexit, with high uncertainty on the future of the financial sector also impacted by Brexit, with the high-street already weakened by online competition since before the pandemic, and with hospitality, tourism and leisure industries practically on their knees since they have not been able to open during lockdowns, the extent of the contraction of the UK’s national income does not come as a surprise.

Taiwan experiences strong growth Taiwan, on the contrary, whose response to the pandemic has been commended, is among the very few that have grown last year. With a GDP growth of 3.11%, Taiwan is in fact the top performing economy in Asia, surpassing China for the first time in 30 years. Thanks to the successful containment of the pandemic, ie. nine deaths and less than 1,000 cases, Taiwan has been able to partially satisfy the thriving global demand for microchips while its major competitors (South Korea, Japan, China, US, and India) where still dealing with outbreaks and tough restrictions, proving to be a reliable supplier when the global supply chains have been disrupted.

The export led economy of the island benefitted from the substantial rise in the demand for semiconductors, used in the production of cars but also computers, laptops, tablets and smartphones, whose demand has surged due to an increasing number of people relying on technology to work from home. Additionally, given the China-US trade war, the mainland has been relying on Taiwan for the provision of semiconductors. Taiwan’s exports increased by 4.9% in 2020, with exports to China accounting for more than 40% of total exports. 

world economy projected to grow

5.5% in 2021

4.2% in 2022 April/May 2021

FEATURE

16

April/May 2021

SUSTAINABILITY IN BUSINESS

Are UK business owners guilty of ‘greenwashing’?

Over the last few years, there has been a relentless push for eco-friendly and sustainable alternatives for various products and services for companies in all sectors. However, with the ‘green agenda’ set to be a top priority for businesses and governments across the world – are we making any progress? Or is it just a PR exercise? Business Leader investigates.

In recent years, it has become increasingly common for businesses and governments to show they are engaging with the green agenda, and to rightly make steps towards a more sustainable future.

amongst millennial consumers, we are starting to see that the environmental impact of a product is becoming a decisive factor when a purchasing decision is being made. Buyers are open to switching brands in support of products they perceive as more sustainable. This is starting to impact businesses financially, and with that, I do believe the attitudes will have to change dramatically. Businesses need to take it seriously rather than seeing it as a PR and marketing objective.”

Craig Campion, Head of IT Asset Disposal at Stone Group, agrees that businesses are taking the issues seriously: “Sustainability is genuinely moving up the agenda for many organisations, identified in our recent survey of over 250 UK public and private sector organisations as a top priority for over a third (37%).

But In reality, what Impact are businesses having and what measures are they taking?

Whilst many clearly are making a positive difference, is it still the case that some are using ‘greenwashing’ techniques - and saying they're 'green when they're not - to boost their credibility?

Senior Director of Global Sustainability, Therese Gjerde, comments: “Historically it has probably has been more about ‘pretending’ to do the right thing to ensure positive PR, than actually taking real action. However, a lot of companies have been called out for 'greenwashing' over the last couple of years. The reputational risk related to such media scrutiny is significant, and this has ensured that businesses make sure that they can stand behind what they are saying to a much larger degree.

"If they take it seriously enough it can always be debated. As consumer awareness is increasing, especially

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"However, many organisations are just guilty of paying lip service to sustainability, and in reality, don’t back up their promises with real action. They’re talking the talk through their marketing and PR, but not walking the walk.

"While there is a job to be done to raise awareness of the importance around sustainability, organisations should not be allowed to make empty promises.”

PR and marketing are key tools to any business, but with consumers becoming more aware of the wider world and sustainability, greenwashing could eventually lead to a company’s demise.

Simon Hombersely of Xampla comments: “Greenwashing is still a very prevalent issue, and there are numerous household names point scoring by bringing in surfacelevel initiatives and commitments that lack teeth. There are whole industries and sectors lagging behind. We live in a globalised world and each and every company has a part to play in driving the sustainability agenda forward. Businesses will be held accountable to unsustainable habits and failure to reinforce sound, sustainable, and ethical practices into business strategy will be a serious disadvantage further down the line.

"Businesses must respond and adapt if they are to operate within evolving regulations and conscious markets.”

40%

OF SME DECISION MAKERS DON'T HAVE A PLAN IN PLACE TO BECOME MORE SUSTAINABLE*

However, with a focus on the triple bottom line and the emergence of sustainability groups, such as the B Corporation – real change is starting to happen – and if companies don’t get onboard now, they will suffer the consequences.

Cont. 

17

REVIEW Martin Thatcher, Managing Director of Thatchers Cider says: “From our point of view it’s about doing what we believe to be the right thing. And if all companies take steps to do that – in whatever industry they work in and on whatever scale – then we will see more change. We believe it’s important for brands to tell people – their customers – what they’re doing.

of biodiversity to be given more serious attention.

"The risk for those businesses who don’t take it seriously is they may find their customers, supply chain or wider society will force them to or risk being put out of business in the future.”

"If customers trust in your brand, they want to know. Your customers can be your strongest ambassadors, but they can also be your harshest critics. If they think what your company is doing is greenwashing, they’ll soon call you out!”

Aside from the financial challenges switching to become more sustainable creates – the obvious issue that has hampered the UK’s shift to becoming ‘green’ is the pandemic itself.

Professor Peter Hopkinson, University of Exeter Business School, comments: “The challenge for many is working out what to do, how to do and how to prioritise it. Given the pandemic, eyes may have been taken off the sustainability ball, as business survival and coping with the consequences of lockdown have understandably been top of the agenda.

"There is always potential for issues such as zero carbon, plastic waste and loss

▴ Professor Peter Hopkinson University of Exeter Business School

2050 TARGETS In 2019, the UK government became the first nation to declare that it would bring all greenhouse gas emissions to net zero by 2050 – meaning that all businesses would need to play their part. But are they ready?

Gjerde comments: “Despite some sectors leading the way to reduce their carbon footprint, we are still coming across so many businesses that simply aren’t ready for net-zero.

"The 2050 deadline is a lot closer than people think and it can take time to develop a realistic, achievable, strategy and even longer to implement it. Organisations must act now and start their sustainability journey. Net-zero targets could be brought forward, so ignoring the deadline may lead to penalties or larger pay-outs further down the line.

"GREENWASHING IS STILL A VERY PREVALENT ISSUE, AND THERE ARE NUMEROUS HOUSEHOLD NAMES POINT SCORING BY BRINGING IN SURFACE-LEVEL INITIATIVES AND COMMITMENTS THAT LACK TEETH. THERE ARE WHOLE INDUSTRIES AND SECTORS LAGGING BEHIND." Simon Hombersely

18

“Also, the risk of business disruption, penalties, and liabilities on historical carbon emissions are scenarios that are starting to become more and more realistic. And, ultimately, businesses that are not acting will be punished by investors, customers, and other stakeholders, and are facing the risk of bankruptcy.

“Businesses should start to see climate change as a business opportunity. Not only by reducing costs by improving their resource productivity, but also considering climate change as a core in innovation, by developing new products and solutions to meet our challenges and changes in consumer behaviour.”

CHALLENGES TO ACHIEVE CHANGE A recent YouGov study sought to identify the barriers that could be preventing businesses from making further progress towards hitting sustainability targets.

Budget is the biggest hurdle, with many businesses seemingly not being able to afford to put the required measures in place. 29% admit COVID-19 has delayed their business' sustainability goals, as they are more focused on financially getting through the pandemic, while 22% say COVID-19 has had an impact on the business, but their sustainability strategy and goals have continued as normal.

“There are also many direct impacts of climate change on businesses such as operational impacts of extreme weather, or even supply shortages that businesses should start to prepare for.

WHAT CAN THE UK REALLY DO TO HELP? It is clear that the tide is shifting towards businesses being more open and helping the country become more environmentally friendly, but one of the debates has been that if the USA, India, and China do not actively make a difference, then how can a small nation such as the UK really make a difference?

However, as one of the world’s leading economies and sustainability innovators, UK businesses will play a pivotal role in the future of the environment.

Andrew Griffiths, Director of Digital and Community at Planet Mark, comments: “The short answer is if the UK wants to be a true global leader then we're not going to achieve that by sitting back and waiting to see what the USA, China, and India do before taking meaningful action. In a similar vein, the fact that SMEs represent such a huge proportion of the UK economy as a collective, the same is true of nations in the global economy.

"Imagine the reverse of this question – what if China, USA, and India DO act and the UK and other nations with smaller footprints don't?

“The only way that we can meaningfully tackle the challenges presented by climate change is to pull together across all nations and segments of society to take action in coordinated and complementary ways without spending all of our time just trying to keep up with what we perceive to be the level of action that others are taking.”

April/May 2021

SUSTAINABILITY IN BUSINESS

benefits and advantages for those who lead the way.

And despite being dwarfed by China and the US economies, Britain has always taken a lead in the green revolution, a business will need to continue to do so to be a success on the international stage.

Ricky Knox, Co-founder and CEO of Tandem Bank, states: “The UK is the fifth-largest national economy in the world.

It is also a major force in international diplomacy, one of the world's leading military powers, the second highest international development donor, and it has a huge global cultural influence. The UK can, therefore, still play a big role in the global fight against climate change.

“Think, for instance, of Britain's 2008 Climate Change Act, the world's very first legally binding national commitment to cut greenhouse gas emissions. Or the fact that, in June 2019, the UK became the first major economy in the world to pass laws to end its contribution to global warming by 2050. It is paramount that UK businesses of all sizes unite in this fight – in true patriotic, Churchillian spirit – and evolve to respond to the challenges of our times and help the UK keep its primacy on the global stage.”

ARE BUSINESSES THE KEY TO A SUSTAINABLE FUTURE? With the UK needing to continue to strive towards its Net Zero 2050 goals, and other sustainability targets, businesses will need to be beacons for others around the world to follow.

Hopkinson comments further: “We are in an era of incredible scientific and technological innovation and business has a crucial role to play in the commercialisation, marketing and delivery of game changing product, service, infrastructure and system level re-design.

Legislation and regulation help to set the right framework conditions for change but

"THE SHORT ANSWER IS IF THE UK WANTS TO BE A TRUE GLOBAL LEADER THEN WE'RE NOT GOING TO ACHIEVE THAT BY SITTING BACK AND WAITING TO SEE WHAT THE USA, CHINA, AND INDIA DO BEFORE TAKING MEANINGFUL ACTION. IN A SIMILAR VEIN, THE FACT THAT SMES REPRESENT SUCH A HUGE PROPORTION OF THE UK ECONOMY AS A COLLECTIVE." Andrew Griffiths

it takes innovators and entrepreneurs to show the way.”

And it is these business leaders that are the key to a greener future. Griffiths said: “The United Nations Race to Zero campaign is the perfect metaphor for what will happen to businesses that don't act.

It is a race and there will be winners and losers. Uniquely, however, this is a race that if we don't collectively run fast enough together, we all lose. This means we can't act in competitive isolation but let's not forget that there will be substantial

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“Those who do not take meaningful action will face increasingly rapid changes in public opinion, legislative requirements, environmental shifts, technological innovation and other pressures that will pull the rug out from under their 'business as usual' approach faster than they can adapt to it. We know what happens to businesses that fail to adapt. They go the way of Blockbuster, an example of a business that failed to innovate and adapt in the face of the inevitable.”

Capitalism and commercial success have never alwayss married up to eco-friendly business decisions – but that will need to change and the businesses who adapt to this the fastest look set to thrive long into a post-Covid future.

Hombersely comments: “Businesses are guided by consumers who are becoming increasingly conscious of sustainable business practices. There is a rapid generational shift in attitudes to business.

Customers want to buy from companies who practice and promote positive values; and will boycott those that don’t. And the consumers of the future are those that have grown up surrounded by the environmental crisis, so we know it’s going to be a priority long into the future.

“If companies do not shift to a sustainable model, they will lose their ability to operate. And this will not only be driven by consumer behaviour, but increasingly businesses will be regulated, taxed, and threatened by voters who no longer find unsustainable business acceptable. The world operates in a capitalist system, but if capitalism is to survive the coming decades, it needs to evolve to fit the values of the societies in which it operates. Those values are changing, fast.” 

19

REVIEW

THE SPECIALISTS IN GLOBAL STRATEGIC WEALTH PLANNING AND INVESTMENT MANAGEMENT +44 (0) 20 7396 3388 | londonandcapital.com

Tax changes set to spark flurry of M&A activity With changes to taxes and a year like no other as a backdrop, Business Leader felt it prudent to review the M&A sector.

to the pandemic and changes around capital gains tax and corporation tax forced the hand of many too.

Business Leader has covered a multitude of deals in its nine-year history and the appetite from entrepreneurs to exit or acquire a competitor never seems to wane.

But if there was ever a time you could excuse caution, it was 2020.

He says: “It is not a surprise that UK transaction volumes and deal appetite have been much stronger in Q1 2021 than 2020. The obvious contributor to this is enhanced confidence and stability as the pandemic is receding, and that likely winners and losers in the post-pandemic world are emerging. Less obvious is that

However, the market held up well as many business owners advanced exit plans due

20

2021 has started brightly too, explains John Farrugia, who is Managing Partner and Head of Technology M&A at finncap Group’s Cavendish.

many entrepreneurs have had their exit plans accelerated by fears of forthcoming tax changes, which made for an exciting run-in to the recent budget.”

Busy, busy It’s also interesting to get the perspective of Dan Franklin, who is Head of M&A at the Handl Group. The business is a collection of companies covering legal, insurance and more, that is always on the lookout for a deal.

His assessment of the market is as follows: “The start of Q1 saw a lot of M&A activity across multiple sectors, as vendors, investors and advisors

April/May 2021

MERGERS & ACQUISITIONS

THE SPECIALISTS IN GLOBAL STRATEGIC WEALTH PLANNING AND INVESTMENT MANAGEMENT +44 (0) 20 7396 3388 | londonandcapital.com

looked to get deals completed ahead of potential capital gains tax changes in the Chancellor's budget; and this followed the trend from Q4 of 2020.

“From my perspective, looking at the sectors in which Handl invests; insurance, legal and healthcare with a focus for people and technology, there has been a good, healthy level of activity with new M&A opportunities which should enable us to bring new brands into the portfolio later in the year, building on the three acquisitions we made in the latter part of 2020.”

Dan continues to say that he is also seeing some clear trends in the sector.

He continues: “What I’m seeing is that good, strong assets are taking advantage of investment market conditions insofar as private equity and institutional investors have considerable funds that they haven’t necessarily been able to deploy as they would have in a pre-COVID era, meaning shareholders are able to achieve higher valuation aspirations as investors need to still make investments.

“Furthermore, under-performing, distressed and companies still temporarily impacted by the pandemic do not really feature in the M&A landscape at present.

It’s unlikely we will see a surge in this area of M&A whilst the government support packages remain in force.”

The future Daniel also does not think that the recent budget will impact the M&A sector as much as some are saying; but that tax changes likely will.

He says: “The competitive market conditions to acquire and invest in good, strong assets is likely to continue for some time to come, until investors get visibility of unlocked potential and value in underperforming or distressed opportunities.

Once this happens, I expect the market to react and that will create a more balanced pipeline of opportunities.

“I don’t think the Chancellors budget will materially impact M&A activity for the foreseeable future, with the only area

▲ John Farrugia Managing Partner and Head of Technology M&A finnCap

▲ Dan Franklin Head of M&A Handl Group

▲ Matt Stafford Assistant Director Momentum Corporate Finance

that potentially creates an impact is the restrictions around R&D tax credits.

For early-stage businesses that are undertaking R&D activities, who often rely on the tax credit to fund either future R&D or working capital, there will be a need to source funding which could create an opening for early-stage, high-growth investors to increase M&A activity?

“There is still an element of pent-up demand with processes that were delayed by the initial uncertainty caused by COVID-19 being launched towards the end of 2020 and completed in 2021. In addition, in Q1, we have seen several deals driven by anticipated changes to capital gains tax, even though these did not materialise in the most recent budget.

“I do believe that whilst capital gains tax and entrepreneurs relief remains stable there will be a whole heap of business owners who perhaps were thinking of exit strategies say five years from now will be seriously thinking about earlier exits and this, I believe, will be a key driver to increased M&A activity surrounding owner managed businesses.”

“The extensive uncertainty which has impacted investment and M&A in recent years will hopefully reduce throughout 2021, due to the success of the UK vaccine rollout to date and more clarity around Brexit. As such, we expect the recent strong demand to continue as businesses recover from the pandemic, with large corporate acquirers looking for strategic diversification through acquisitions.

Matt Stafford, who is Assistant Director at Momentum Corporate Finance, agrees that changes to tax will inspire deal activity going forward.

He says: “The recovery in M&A activity that was evident in the second half of 2020 has continued in the first quarter of 2021.

We have seen significant demand for high quality assets in a range of sectors from both trade and financial buyers, supported by access to plentiful capital from banks and private equity.

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"This will be matched by a supply of opportunities, with processes launched as business owners reassess their risk appetites after the events of the past year, and we expect that anticipated changes to capital gains tax may also once again drive entrepreneurs to consider realising value. In addition, we expect to see further corporate divestments as more assets are deemed non-core as strategies are realigned.” 

21

ADVERTORIAL

THREE KEY THINGS TO CONSIDER WHEN SELLING YOUR BUSINESS 02 EXITING A BUSINESS DOESN’T MEAN GOING IT ALONE

For some entrepreneurs, selling a business can bring on mixed emotions. Once the deal is complete, a new chapter begins, and this can be unfamiliar territory compared to what you have been used to.

It does not mean you have to navigate this new period of life on your own. This is where professional advisers – wealth, tax and legal – can help you navigate what can at first seem like a complex and daunting process.

▴ Daniel Sawyerr Director, London & Capital

The right cultural fit is essential. If you enjoy the feeling of working in a small or medium-sized business that is nimble on its feet and adopts the latest technology, you may be seeking the same qualities in your wealth manager.

03 WHO SAID ANYTHING ABOUT RETIREMENT? Whilst an exit marks a significant milestone of success for an entrepreneur, the reality can often represent a loss of identity and community. Rather than financial rewards, most entrepreneurs measure their success by the degree of freedom and potential legacy that their success allows them.

Developing a vision for your personal journey and legacy which your wealth can support is key, and the right combination of professional advisers (wealth, legal and tax) can help greatly with this complex and, at times, daunting process.

The stereotype of a business owner in the past was someone who ran the company until it was time to retire, at which point they handed the reins to the next generation or perhaps they sold parts of the business.

However, having sold your business, suddenly you have the ultimate luxury: time. Time to step back and think about what really matters to you – whether it is retirement, starting a new business, or becoming an angel investor. The key is to make sure you’re working with an organisation which helps you structure your wealth in way which gives you the ability to move in the direction you want to.

With that in mind, here are three things to consider:

01 EXPERTISE MATTERS

What many people don’t realise is the complexities of managing wealth increase significantly after selling a business: issues such as tax planning and wealth structuring become paramount.

Facing these areas can seem a daunting process, which is what makes the choice of adviser crucial.

Having someone beside you who has a strong understanding of the process of selling a business, can help you structure your wealth in a way that protects your assets and enhances your lifestyle.

If you’re thinking about selling your business or looking at organising your finances for the future, get in contact with Daniel Sawyerr at Daniel.Sawyerr@londonandcapital.com. www.londonandcapital.com

Disclaimer: The value of investments and any income from them can fall as well as rise and neither is guaranteed. Investors may not get back the capital they invested. Past performance is not indicative of future performance. The material is provided for informational purposes only. No news or research item is a personal recommendation to trade. Nothing contained herein constitutes investment, legal, tax or other advice. Copyright © London and Capital Asset Management Limited. London and Capital Asset Management Limited is authorised and regulated by the Financial Conduct Authority of 12 Endeavour Square, London E20 1JN, with firm reference number 143286. Registered in England and Wales, Company Number 02112588.

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April/May 2021

IF YOU’VE BUILT YOUR BUSINESS, TALK TO THE PEOPLE WHO BUILT OURS. Unlike huge financial institutions, we’re an independent wealth management business.

The people who built it are the same people who manage your portfolio.

We specialise in tailored, tax-efficient investment advice and wealth management for individuals and families in the UK. No jargon, no hidden fees, just exceptional wealth management advice and management, entrepreneur to entrepreneur.

To arrange an introduction, please call: +44 (0) 20 7396 3388 www.londonandcapital.com

ROUND-UP DEALS

The Business Leader Deal Room

Business Leader highlights a selection of significant deals that have taken place in the last six months

Credit: Twitter @ VancityReynolds

LEISURE AllBright has announced the acquisition of Australian lifestyle platform ‘The Grace Tales’, founded by ex-Vogue Deputy Editor, Georgie Abay.

The move follows three successful investment rounds led by Cain International, the privately held investment firm operating in the United States and Europe, raising a total of $42m in funds for the business.

MANUFACTURING Mid-market private equity firm LDC has exited its investment in ADEY, a solutions provider to protect water-based heating systems, to Polypipe Group plc (Polypipe), a sustainable water and climate management solutions firm for the built environment. The transaction values the business at £210m.

SPORT Hollywood actors Ryan Reynolds and Rob McElhenney have completed their takeover of Wrexham AFC - the Welsh National League football club. The duo have already announced that they will be investing £2m into the club, with a focus on growing women's football.

24

LEISURE UK gift experience provider Virgin Experience Days will acquire the whole of Cloud 9 Living’s US operations. Virgin Experience Days will use the acquisition as a springboard for further growth into a US gift experience market estimated at $1bn, with substantial scope for future development.

SOFTWARE/TECHNOLOGY

SOFTWARE/TECHNOLOGY

Xero Limited has announced the €156m acquisition of Planday, a workforce management platform with more than 350,000 employee users across Europe and the UK that simplifies employee scheduling, allowing businesses to forecast and manage their labour costs.

Bentley Systems, the infrastructure engineering software company, has announced that it has entered into an agreement with investors led

by Accel-KKR to acquire Seequent — a software firm for geological and geophysical modelling, for $1.05bn.

SOFTWARE/TECHNOLOGY

FINANCIAL SERVICES

Dropbox has announced it has entered into a definitive agreement to acquire DocSend, a secure document sharing and analytics company with more than 17,000 customers for $165m.

The combination of Dropbox and DocSend will help customers across industries manage end-toend document workflows.

Specialist business advisory firm FRP has announced the acquisition of Spectrum Corporate Finance in a £9.4m deal. Founded in 2010 by Simon Davies, Clive Hatchard and Ian Milne, Spectrum is one of the largest independent corporate finance and debt advisory firms in the South of England.

April/May 2021

ADVERTORIAL

OPTIMISM FOR DEAL-MAKERS IN 2021 BIG PICTURE •

Stronger than anticipated rebound in mid-market M&A activity in Q4 2020, looks set to continue into 2021

•

Deal activity dominated by resilient sectors such as technology, life sciences, healthcare and ecommerce

•

The budget delivered a stable capital tax environment allowing business owners to make strategic decisions with greater certainty

MARKET OVERVIEW It is remarkable how despite all the turmoil and uncertainty, businesses have been able to rethink their way of working, be it manufacturing products in a safe environment or delivering services in a safe and more technology enabled way.

M&A activity has followed a similar pattern, with a fall in deal volumes in Q2 last year as many deals went on hold followed by a swift recovery in Q3. By Q4 deal activity picked up significantly, with resilient sectors such as technology, life sciences, healthcare, ecommerce, logistics and supply chain dominating the deal market.

Ross Bradley, M&A Director at BDO commented: “Q4 of 2020 saw a strong rebound in deal activity and this has carried through to Q1 of 2021. While some of this was a backlog from deals previously put on

▴ Ross Bradley Director – Corporate Finance

▴ Daniel Bond Director – Corporate Finance

E: ross.bradley@bdo.co.uk T: 07971 761 589

E: daniel.bond@bdo.co.uk T: 07800 682 797

hold, there was a real sense of businesses moving forward with their strategy with more certainty. Looking ahead, we expect the deal market to remain active with plenty of appetite from investors and large corporates to invest across resilient sectors.”

The adaptation to the new norm for businesses has been assisted by financial support from the government, which helped stabilise the economy and secure jobs. With the furlough scheme ending in September, businesses will need to focus on recovery, rebuilding both profitability and their weakened balance sheets. Chris Marsden, Business Restructuring Partner at BDO commented: “For many businesses, the next 6 months will be critical. Businesses should be using the breathing space afforded by the extension of government measures to assess, plan and implement turnaround strategies, especially where difficult decisions may be required.”

Paul Falvey, Tax Partner at BDO added: “These decisions can be made against a backdrop of a stable capital tax environment at least for the immediate future.”

with businesses across all sectors continuing to invest in digital transformation.

Daniel Bond, Transaction Services Director at BDO commented: “The pandemic has driven change in the use of technology to facilitate, inter alia, remote working and increased online consumer activity. Businesses in several sectors have needed to adapt and optimise their use of technology in order to operate efficiently and remain competitive. We have seen significant deal activity involving businesses that provide enabling technologies as a result.”

The last 12 months has continued to deliver deals in the South West market as local, entrepreneurial businesses continue to thrive. The recent sale of T Shirt & Sons, based in Westbury and one of the largest direct-to-garment printing and fulfilment companies in Europe, to Polyconcept North Amercia Inc shows the appeal of quality owner managed businesses to foreign investors. BDO worked closely with founders Jon and Andrew Lunt to find a partner for the business who had the financial power to super-charge growth in Europe and the US.

SECTOR ACTIVITY & KEY DEALS Understandably, sectors most exposed to COVID-19 such as hospitality & leisure are yet to bounce back in any significant way given the ongoing restrictions. Technology has been the most resilient sector in terms of transaction volumes in the last 12 months,

Business Leader - Inspire • Inform • Connect

BDO.CO.UK 25

Introducing Shoosmiths Readiness Preparation is key...

Shoosmiths Readiness is a simple online tool, designed specifically to protect the value of a business whilst helping it prepare for an invasive legal due diligence process in connection with a potential sale, investment or re-financing.

Developed to proactively identify and resolve potential issues before they impact on a deal, engaging with Shoosmiths Readiness will help a business create a good impression for any prospective buyer or investor, minimising the risk of value erosion, price chips or at worst, a deal falling over.

Shoosmiths Readiness saves time, money and reduces the associated stress on management, and best of all, the initial questionnaire and report is completely free of charge.

The COVID-19 crisis should not mean that businesses delay their preparation and the questionnaire has been designed in such a way that we can remotely and efficiently engage with our clients.

To find out more visit https://www. shoosmiths.co.uk/expertise/connectedservices/readiness or get in touch directly with Corporate Partner Nina Smith at email readiness@shoosmiths.co.uk

How it works Client completes online questionnaire which should take between 30-45 minutes.

Shoosmiths Readiness scores will be calculated and a bespoke report prepared.

Meeting with the client to discuss the Shoosmiths Readiness report and formulate 100 day action plan.

Regular re-assessments can be undertaken to monitor improvement in Shoosmiths Readiness scores.

*Shoosmiths Readiness is most relevant for typical mid-market businesses worth between £5m and £35m.

Nina Smith, Partner Nina is a Corporate Partner at Shoosmiths and specialises in advising mid-market businesses across the spectrum of corporate transactions, particularly sales, private equity investments and acquisitions.

Her open and approachable style, engendering strong relationships with clients and fellow professionals alike, ensure she is able to guide you through a transaction efficiently and with minimal stress.

+44 (0) 3700 863 000 | www.shoosmiths.co.uk

Dealmakers

Shoosmiths national corporate team of over 160 lawyers is one of the most active* operating across the UK advising on transactions with a typical value between £20m and £200m. *Experian Market IQ Report Jan 2021

A selection of deals Shoosmiths M&A team advised on in 2020:

Advising both the founders of Solid Solutions and British Growth Fund on their exit and the roll into Newco backed by LDC

Advising the shareholders of Learning Curve Group (including MML Capital Partners) on the sale to Agilitas Private Equity.

Advising Lingit A.S. on its acquisition of LexAble

Advising the shareholders of Symity Ltd on the sale to Charterhouse Voice and Data Limited

Advising the shareholders of EasyBuild Ltd on its sale to The Access Group

Advising on the sale of iSAMS’ entire issued share capital to IRIS Software Group

Advising the wildlife park on debt and equity raise from BGF and a major high street bank

GEMS Global Schools Limited and GEMS Education (East Asia) Ltd on the sale of GEMS World Academy (Singapore) Pte. Ltd

Advising Blaze Signs Holdings Ltd on their sale to Elaghmore and acting for management on equity rollover

Advising Hexagon Metrology on the acquisition of Romax Technology Ltd

Advising Moorfield Group on its partnership with Allegra

Advising Burnley FC on the sale of a significant shareholding to US PE fund ALK Capital LLC

Advising Extreme E (off-road electric motorsports) on their investment from Formula E Holdings Ltd

Advising Octopus Energy on the acquisition of Upside Energy Limited

Advising the sellers of The UP Group on its sale to Alexander Mann Solutions

Advising Map Group on its acquisition of USL Group

+44 (0) 3700 863 000 | www.shoosmiths.co.uk

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MERGERS & ACQUISITIONS

HELPING YOU

MAXIMISE YOUR RETURN ON EXIT FROM DEVELOPING A SUCCESSION STRATEGY TO VALUING YOUR BUSINESS, WE ARE HERE

TO HELP YOU PLAN FOR THE FUTURE SO YOUR BUSINESS CONTINUES TO THRIVE.

T: 01454 619900 E: ADVICE@DUNKLEYS.ACCOUNTANTS WOODLANDS GRANGE, WOODLANDS LANE, BRADLEY STOKE, BS32 4JY

Marketing agency invests £1m to help clients grow A leading PR, creative and digital marketing agency has invested over £1m in new facilities, aimed at helping their clients accelerate growth.

Purplex Marketing, with offices in London and Bristol, has just purchased it’s third office block and is busy converting it into a new state-of-the-art facility that will create 100 new jobs in web design, e-commerce, online marketing, PR and social media.

BOOK YOUR FREE 1HR CONSULTATION TODAY T: 01454 619900

E: ADVICE@DUNKLEYS.ACCOUNTANTS

WOODLANDS GRANGE, WOODLANDS LANE, BRADLEY STOKE, BS32 4JY

The facility will also include a TV recording studio and acoustic podcast room to allow customers to create quality video and podcast content.

Purplex director Sam Cross commented: “We believe the economy will bounce back strongly and the companies who are most visible, engaged and connected with customers have a golden opportunity to scale much faster than ever before. Our latest investment is a commitment to support those ambitious companies that want to grow post-pandemic.”

action. It’s Time to Build is all about building your brand, your business and your future.”

Purplex has recently launched a new ad campaign ‘It’s time to build’ which aims to remind business leaders to focus on the future and the opportunities ahead.

Purplex partners with ambitious firms across B2B and B2C markets. The agency was founded in 2004 and has clients across the UK, Europe, United States and Asia.

Cross added: “Our new campaign is a line in the sand, a call to

www.purplexmarketing.com

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April/May 2021

ADVERTORIAL

IS YOUR BUSINESS READY FOR EQUITY INVESTMENT? Paul Putnam, Audit Partner, and Sam Phillips, Transaction Services Director, at PKF Francis Clark offer some tips on preparing your business to attract equity investors Significant levels of debt funding have been made available in the last 12 months, but with the vaccine rollout boosting prospects of economic recovery this debt will need to be repaid. We expect this to lead to restructuring, which is likely to involve equity investment since private equity have funds ready to deploy.

Preparing to receive equity investment is typically a more intense process than management teams expect. Addressing the following issues early on will help you to become equity investor ready: 1. Prepare yourself mentally to give up shares in the company – As one of our clients said recently, without private equity investment he would still own ‘100% of nothing’. He recognised that the cash (and expertise) that the investor brought had made the difference and now he has a share in a company valued in excess of £10m 2. Understand the market – Understand what different investors bring to the market you are operating in. You are looking for a match between your wants and theirs.

Sam Phillips Transaction Services Director

A good quality equity investor who understands your market will be able to support management and increase value. But be warned, they will require good governance and you will need to give up an element of control 3. Understand the maths – If we stereotype equity investors as wanting a return of three to five times their money within three to five years, you need to work out whether your company has that growth trajectory – and, if so, what your exit plan is to crystallise that value, whether that’s an IPO, trade sale or an alternative equity investor. A good equity investor will support you through this process 4. High quality data – If you don’t have up-to-date, granular insights into how your business is performing – and how you expect it to perform in future – you are limiting your ability to secure investment. You may also be limiting your opportunities for growth, and therefore value from equity investment.

This is even more important in a remote working environment where the usual physical, more operational, KPIs are not as accessible

Paul Putnam Audit Partner

5. Strength of management team – We have seen a change in the standard investment model, accelerated by Covid-19, with recent IPOs being

Business Leader - Inspire • Inform • Connect

founded on the strength of the management team and future opportunities they might bring.

Therefore, ensure you have a wellrounded team to support you 6. Understand what can go wrong – Put yourself in the potential investor’s shoes, consider the risk areas in your business model and what mitigating actions you can take. Document these risks and have sensitised data to show how they might impact on the performance of your business 7. Prepare your pitch and be prepared for questions – Make sure you have pre-empted questions such as those outlined above, but do not expect potential investors to instantly get your proposition. And make sure your projections are robust and defendable.

Potential investors will ask questions and look to verify information.

For more information, please visit pkf-francisclark.co.uk or email paul.putnam@pkf-francisclark.co.uk, sam.phillips@pkf-francisclark.co.uk 29

ADVERTORIAL

MENTAL HEALTH: TIME FOR ACTION According to Mind, 56% of employers would like to do more to improve staff wellbeing, but don't feel they have the right training or guidance.

This alongside some stark statistics from Mind's 'Mental Health Emergency' report, which revealed that three in five people across the UK have reported a deterioration of their mental health during the pandemic, represents a very sad picture for the nation – as experts claim that we are in the middle of an ‘unprecedented mental health crisis’, as self-isolation takes its toll.

Since the first lockdown last year, I am sure that you have been invited to many mental health webinars, and whilst it is good for us to attend the occasional session to enhance our knowledge, now is the time for action.

At Weston College we are actively looking to support you, to not only to help your staff gain a greater understanding of mental health and wellbeing, but also to put actions in place which will support your teams.

We run a Mental Health First Aid course, which will enable you to spot the signs and symptoms of mental ill-health and provide first-aid help and solutions.

our hobbies, or head to the gym to exercise; so we have launched Lockdown Learning an exciting new suite of courses which will you give you the opportunity to keep your mind active and develop your knowledge in key areas such as leadership and learn new skills.

North Somerset Enterprise Agency’s CEO Angela Hicks completed this course: “I felt it was important to develop my own understanding of mental health and so completed the Mental Health First Aid course at Weston College.

You can also book a one-to-one chat with our team, via our new Skills Surgeries initiative. Skills Surgeries are 40-minute online appointments, for any employer to have a conversation with a member of my team. They have a simple objective: providing advice on how to access funding for skills training. You describe your workforce development challenge and we’ll help you find a solution.

“This was invaluable in being able to understand that mental health issues are likely to be noticed by a colleague, friend or family member well before a professional becomes involved and how best to provide that initial support.

“Early intervention is key in supporting staff, reducing anxiety and helping to support good mental health.”

Self-isolation is having a major effect on us all, as we try to adapt to not being able to meet up with friends and family, complete

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their wellbeing: “A course can help to keep your employees minds busy and active, it allows them to filter out some sources of information and keeps them in a positive mindset as they are working towards something. A course allows us to connect with others, even when virtually - connection is one of the five ways to support well-being.”

▴ Georgie Ford, Advanced Practitioner in Mental Health and Wellbeing at Weston College, explains why encouraging staff to complete training during a lockdown/ being furloughed can assist in maintaining

Dave Crew - Head of Business Growth & Employer Partnerships at Weston College Get in touch with our team, and we will support you: employers@weston.ac.uk

April/May 2021

ADVERTORIAL

DETTOL JOINS FORCES WITH CLEANEDUP TO HELP SMALL BUSINESSES KEEP HYGIENICALLY CLEAN As the Coronavirus (SARS-CoV-2 virus) pandemic continues to affect UK businesses, leading disinfectant brand Dettol teams up with CleanedUp (a brand of theUp.co) who supply simple and easy to install sanitising solutions, to offer cleaning and hygiene solutions to small businesses across the UK. The new partnership will offer businesses access to hygiene products, free hand sanitiser or wipe dispensers and enhanced cleaning training materials.

Dettol and CleanedUp's ambition to help UK businesses implement relevant hygiene solutions when they reopen is being realised by providing access to free Dettol signage that will help reassure consumers that hygiene precautions are being taken by businesses to help stay hygienically clean.

When businesses sign up to one of the hygiene plans in the program, they will have access to free Dettol hand sanitiser or wipe dispensers and be able to buy Dettol hygiene kits containing a wide range of disinfection product solutions. With Dettol's science-based research and over 80 years of expertise, the products available in the CleanedUp online store are proven to kill 99.9% of bacteria and Coronavirus (SARSCoV-2 virus)1.

Jonathan Weiss, Commercial Director at Reckitt Benckiser Business Solutions Europe & ANZ says: "Businesses around the country will be planning on the best way to reopen with a focus on ensuring a hygienically clean environment and encouraging good hand hygiene in the facilities. As a brand whose mission is to help break the chain of infection, Dettol wants to offer £1 million investment from Dettol over the next two years providing small and medium sized

businesses access to free hand sanitiser and wipe dispensers and disinfectant products."

As part of the program, businesses across the UK will also receive enhanced cleaning guidelines and Dettol branded signage such as floor and door stickers to help give their customers confidence on the measures they are taking to stay hygienically clean, while helping reduce the spread of bacteria and Coronavirus (SARS-CoV-2 virus)1.

Hugo Tilmouth, CEO at CleanedUp (theUp. co), says: "We are delighted to join forces with Dettol, such a well known household name in the UK to create simple and easy to use sanitisation solutions - just what businesses need to help respond to consumer expectations. We have worked closely with Dettol to understand UK business needs and offer businesses Dettol product packs and dispensers for both hand and antibacterial wipes. Our knowledge of hygiene solutions together with the chosen Dettol's products that have been tested and proven effective to kill 99.9% of bacteria and Coronavirus (SARS CoV-2 virus)1 are the perfect partnership wit help with hygiene measures as business look forward to get back up and running in 2021."

The partnership with CleanedUp follows several initiatives announced by Dettol in the last 12 months, from the 161,000 care packages Dettol donated to NHS frontline workers in 2020 to partnerships with Asda to provide sanitisation stations to shoppers in 694 stores, and with TfL to provide hand sanitation units across the tube and rail network.

Business Leader - Inspire • Inform • Connect

Dettol & CleanedUp have joint commitment to equip businesses with the solutions needed to help reassure staff and consumers as we continue to navigate a world with COVID-19. To help protect your business with Dettol & CleanedUp, please visit cleanedup.theup.co/pages/dettol

1 Use disinfectant safely. Always read the label and product information before use. Based on RB's knowledge and published scientific evidence, RB is highly confident that its actives/ formulated products will continue to be effective against mutated strains of the SARS-CoV-2 virus. www.rb.com/media/ news/2020/may/first-published-scientific-data-confirms-thatleading-hygiene-products-are-99-9-effective-against-sars-cov-2virus-covid-19/.

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FEATURE

Corporate and commercial law firm, supporting all sizes of ambitious businesses Tel: +44 (0) 117 928 1910 | Email: info@roxburghmilkins.com | www.roxburghmilkins.com @roxburghmilkins

@roxburgh-milkins

This is My Story – Business Leader talks to female scale-up entrepreneurs In each edition of the magazine, we run a feature around the scale-up sector.

For this edition we spoke to female scale-up leaders, to talk about the challenges they are facing in their businesses and to hear more about their journeys to success.

WHAT WOULD YOU SAY HAVE BEEN THE BIGGEST CHALLENGES YOU HAVE FACED IN SCALING YOUR BUSINESS? Julia Kessler: "Scaling a business comes with various challenges. You need the right operational structure, partners who you can trust and most importantly, working capital. That has been one of the toughest aspects of the business. We have a fantastic brand ready to scale and tons of opportunities to materialise and that is why we are currently running our first crowdfund on Seedrs."

Anna Cusden: "Marketing and knowing what channel work best for us has been a big challenge. We had very fast early growth which happened without much marketing spend and, although we used digital channels like YouTube and Facebook, most our customer acquisition was relatively cheap because it came through PR and organic search.

"When we started to spend money on acquisition, mainly on Facebook, we found it a real challenge – it did not seem to matter how much or how little we spent, we could not shift the needle. We began to feel that it was going to be hard to reach

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an audience who were not digitally native, so we started to spend money offline – magazine inserts, direct mail and even TV adverts, and while some of this was effective, it was also expensive."

Hannah Mann: "For a small business like ours working with pharmaceutical giants, one of the biggest challenges we have faced is trying to convince them that bigger does not necessarily mean better, or safer.

Our clients constantly ask for innovation yet often do not want to move away from the well-known, large suppliers to get it.

As a small agency Day One can innovate and implement new ideas and technology in weeks – as opposed to months or even years – so this can be frustrating.

"The pharma industry is also very conservative in nature so being too much of an innovator can sometimes work against you and getting the balance right is difficult."

"SCALING A BUSINESS COMES WITH VARIOUS CHALLENGES. YOU NEED THE RIGHT OPERATIONAL STRUCTURE, PARTNERS WHO YOU CAN TRUST AND MOST IMPORTANTLY, WORKING CAPITAL." Julia Kessler

Merilee Karr: "COVID-19 was the biggest challenge for our industry in a century as overnight borders were closed; the country went into lockdown and our industry had massive falls in revenue. For my business this was the biggest test we have faced

since we started. While we had set up to have a variable cost structure to help with seasonality, I never expected it to be tested so quickly and so radically.

"Thankfully, the structure we put in place helped us as a business to weather the storm, but we still needed to find a positive way to grow in a pandemic world."

Lara Morgan: "Some of the biggest challenges I have faced are things that have been totally out of my control and everyone has been in the same boat. It really is a matter of survival of the fittest, and you cut your cloth accordingly. If you show agility and an ability to adapt, you will thrive.

"In business when you start to think ‘you have got this’, something comes along to knock you off your feet. In a previous life, my company survived SARS, Foot and Mouth and 9/11. This took some serious re-scaling, I had to make people redundant and come up with new strategies and plans.

"When I have come across barriers, things that I can control, I have always done my best to get around them. There is always another bank to listen, an expert to employ for the things you cannot master, a different path to take if something is not working, and tech systems to help you be more efficient and effective."

WHAT HAS YOUR EXPERIENCE BEEN AS A FEMALE LEADER? HAVE YOU FOUND BARRIERS, OR DO YOU NOT FEEL THERE WERE ANY AND THE EXPERIENCE HAS BEEN POSITIVE? Dyann Heward Mills: "I have sadly encountered occasions of 'misogynoir' where both race and gender play a part in the biases directed at me. It saddens

April/May 2021

SCALE-UP

Corporate and commercial law firm, supporting all sizes of ambitious businesses Tel: +44 (0) 117 928 1910 | Email: info@roxburghmilkins.com | www.roxburghmilkins.com @roxburghmilkins

Julia Kessler Co-Founder, Nix and Kix

Anna Cusden MD, Look Fabulous Forever

me that this is still the case in 2021.

More needs to be done to tackle systemic racism. I remember times where men have assumed that I was of lower rank in a meeting due to my race and gender.

These experiences work to discourage the next generation of black female leaders by eroding confidence.

"In terms of barriers, women are underrepresented in the tech sector. Research from Cybersecurity Ventures showed that in 2019 only 20% of cybersecurity positions were held by women. All CEOs are responsible for the next generation of women coming up in tech. We must make sure the opportunities are there and our work cultures reflect the needs of all workers."

"ALL CEOS ARE RESPONSIBLE FOR THE NEXT GENERATION OF WOMEN COMING UP IN TECH. WE MUST MAKE SURE THE OPPORTUNITIES ARE THERE AND OUR WORK CULTURES REFLECT THE NEEDS OF ALL WORKERS." Dyann Heward Mills

Julia Kessler: "The most difficult aspect of being a female leader is receiving funding.

According to a report by the Harvard Business Review in 2021, In 2019, 2.8% of funding went to women-led startups; in 2020, that fell to 2.3%. Investing is still to be seen as a 'boys’ club'. However, it is great to see that there are more and more funds coming up like the Angel Academy who are supporting female founded businesses. We hope we will be seeing more of them in future.

"There are still quite a few barriers we experience too. Some relationships are still formed either on the golf course or at the cigar club."

Anna Cusden: "I cannot say I have experienced any negatives as a female leader. When we went through our two rounds of fundraising, we found it relatively easy to attract investors (who are in the majority male) and we are an all-female business. The beauty business is filled with women at all levels so perhaps it is more accepted in our sector that women will be running businesses."

Merilee Karr: "Like any ambitious entrepreneur, I set up the company with a big vision. Having left a successful global corporate career, I wanted to build a global business in a newly emerging

Business Leader - Inspire • Inform • Connect

Hannah Mann Day One Strategy

@roxburgh-milkins

Merilee Karr Founder, Under the Doormat

sector (professional short-term rentals).

In the early days I found a lot of people commenting that it must be nice to be a 'lady of leisure'. That could not be further from the truth as I had customers, investors, and my own goals to deliver so I was working harder than ever.

"Most female entrepreneurs just want to succeed by building great companies, and I certainly do not want to have a 'victim' attitude by saying it is harder as a woman.

I think the numbers speak for themselvesless than 3% of serious investment goes to fully female founded companies. I am fortunate to be one of them and I have amazing investors who believe in me, the business, and the team, both men and women."

Lara Morgan: "When I started out, and still in some spheres now, it was mainly men in my business world. I like to think I can compete on my own terms. I love to encourage women (especially our younger generation of female entrepreneurs) to take the lead. Be bold, brave, where possible get the big girl knickers on and just be prepared to take on the world.

Cont. 

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FEATURE SCALE-UP

COMMENT

SCALE UP BUSINESS OPPORTUNITIES IN 2021

Dyann Heward Mills CEO, HewardMills

Lara Morgan Investor & Author

"All in all, I think I have had a positive experience. I have been lucky to be surrounded my many people who share my visions and passions, who have been on my mad lorry and taken the rough roads with the smooth."

"SOME OF THE BIGGEST CHALLENGES I HAVE FACED ARE THINGS THAT HAVE BEEN TOTALLY OUT OF MY CONTROL AND EVERYONE HAS BEEN IN THE SAME BOAT. IT REALLY IS A MATTER OF SURVIVAL OF THE FITTEST, AND YOU CUT YOUR CLOTH ACCORDINGLY. IF YOU SHOW AGILITY AND AN ABILITY TO ADAPT, YOU WILL THRIVE." Lara Morgan

Hannah Mann: "My experience within market research has been very positive for the large part. I have been surrounded by very senior and inspiring women for most of my career, so I feel very lucky to have had that experience. Having said that, when you look at the very top levels within our industry there is still a disproportionate number of senior men to women and especially when compared to how many women sit at all the other levels, so there is clearly still work to be done.

"All of that aside, when I think about women and what holds them back in their careers, I think it starts at home and the rest is just a domino effect from there on in. I am lucky in that my partner has always supported me in my career. Societal norms make women feel it is them that should step back rather than men and we need men and women to challenge that thinking. Luckily, my partner sees it as much his responsibility to help manage the household and raise the kids as it is mine and as a result, the whole family has prospered." 

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2020 may not have been the year we all imagined, but scale up businesses seem to have been more resilient than most. In fact, one of our key sectors – technology – has seen the number of scale ups almost double, according to a Beauhurst & Scale Up Institute report. The benefits of that growth include creating more jobs and shows signs of increased diversity too.

Charles van der Lande Partner, Roxburgh Milkins

However, there have been challenges for all scale ups, particularly when it comes to funding. Opportunities for access to capital changed, with the Future Fund offering matched funding and Innovate UK grants also becoming more popular. Whilst Future Fund applications have now closed, the scheme will remain under review and we will continue to help clients keep up to date on the options available.

So what other considerations are there when you are looking for funding in these circumstances? A number of our clients have completed funding rounds or exits successfully this year, and the common factor has been that of managing expectations. Whilst we would all like to be back to business as normal, the ongoing situation means that you should expect changing timescales, valuations and risks – along with adapted processes. Technology itself can come to the fore here of course, with remote discussions and documentation all having become the norm.

Scale up businesses are often fast moving and may want to accelerate their growth as the pandemic impact continues. The key is to ensure your relationships with investors and advisors are nurtured as much as you would do in person, and then the opportunities can still be maximized. Trusted advisors will be able to help you navigate that balance of risk and opportunity, so look for specialists in your sector or that you know will understand your particular needs.

As a niche law firm ourselves, we work with a range of other specialists who all function as one team for each project to deliver exactly what’s needed. We believe that this flexibility will help guarantee success for our clients in these continually changing times.

For more information on funding options, please give us a call.

T: 0117 928 1913 www.roxburghmilkins.com April/May 2021

Investing in

client relationships

for the long term

We’re a corporate and commercial law firm based in Bristol. Our goal is to support ambitious businesses over the long term – investing our time in them to ensure we build strong and enduring relationships. As business owners ourselves, we understand the challenges faced on a daily basis and can reflect that in the advice we provide: pragmatic, commercial and adaptable.

We enjoy working with interesting businesses, from ambitious start-ups and scale ups through to well established private companies and PLCs. Over the last 17 years we’ve been privileged to have helped hundreds of owner-managers to start, grow and sell their businesses.

We believe we can support you in taking your company to the next level, because we take a focused, long term approach. These are just a few of the businesses we’ve supported in the last year, but to find out more, just give us a call.

Duel, the UK’s leading brand advocacy platform, secured a £1.8 million funding round led by Downing Ventures, Publicis Groupe, London Co-Investment Fund and University of Bristol Enterprise Fund.

The investment will be used to develop Duel’s suite of brand advocacy tools, advance its patented curation AI and rapidly hire more community and brand experts.

Bristol based Premier Veterinary Group plc acquired the preventative animal healthcare business of the Simplyhealth Group. This not only provided increased revenue and an opportunity for cost synergies, but also allows the new customers to benefit from their advanced IT platforms to establish, manage and administer all aspects of the plans on behalf of the veterinary clinics.

Gloucester based Recipero, which provides a range of solutions for fraud prevention and crime investigation, moved back in the private hands of its former owners following a management buyout from U.S. based TransUnion. We worked with a consortium of local firms to advise the management team.

Senta, the Bristol-based practice management software business, was acquired by IRIS Software Group.

Founded in 2014, Senta’s software provides cloud-based CRM, marketing, workflow, email automation, secure documents and insights for accountancy firms and allows customers to move to the cloud at their own pace.

“The firm is set apart due to its practical approach to advising clients and ensuring the clients’ best interests are always at heart.”

Client quote from Legal 500 rankings

Will you be our next success story?

Call +44 (0)117 928 1910 or visit www.roxburghmilkins.com

FEATURE SCALE-UP

What value are female founders adding?

This represents a 93% increase over the 2020 Index, which is terrific to see.

The average turnover of these companies is £56m and their combined turnover amounts to £20.8bn. Collectively they employ 140,000 people and have raised a total of £1.67bn in investment. They are phenomenally productive; each scale-up generates an average of £148,739 of turnover per employee.

The list is extremely diverse spanning geographies, generations, and sectors.

They are on the frontline of the COVID-19 pandemic – from developing therapies to running care homes - and are at the front of the digital revolution – from cybersecurity to challenger banks. They are in scrap metal and smoked foods, wine and wildlife parks, cancer treatments and car sales. ▴ Irene Graham CEO, Scale-Up Institute

Our fourth annual ScaleUp Female Founder Index shows that there are 371 ‘visible’ scale-ups with at least one female founder.

Female-founded scale-ups are present across all parts of the UK: 63% are outside of London. The Leeds City region has the highest number of female founded visible scale-ups in England outside of the capital. More than one in seven are based

in Scotland, Northern Ireland and Wales.

Some featured in our first Index in 2018, such as Aberdeen-based antimicrobial pioneer NovaBiotics, and Lancastrian accountancy services business Danbro.

Companies making their first appearance include street food chain Mowgli and waste recycling company Re-Gen Waste.

This year, we also looked at the pipeline of future female-founded scale-ups. We analysed companies whose turnover and/ or employee growth rates were between 10-19.99% over the past three years.

There are 102 of these female-founded scaling companies generating a combined turnover of £1.7bn.

We started the publication of the Female Founders Index in 2018 to spread awareness of successes and identify role models. These companies are demonstrating resilience, ambition and innovation at a growing scale. We must celebrate them, buy from them, work with them, know them - and support them across the country as they continue their scaling journeys.

85% OF INVESTORS VIEW GLOBAL WARMING AND CLIMATE CHANGE AS THE GREATEST THREAT TO OUR PLANET Almost nine in 10 (85%) investors view global warming and the effects of climate change as the greatest long-term threat to our planet and are moving investments as a result.

The research of over 2,000 UK investors by OnePlanetCapital found the overwhelming majority are concerned about the effects of climate change, including environmental threats such as rising temperatures, more frequent and severe flooding and increased deforestation.

Consequently, and to improve the flow of finance into businesses helping to tackle climate change, over one in 10 (12%) investors are planning to move investments to societal, corporate governance or environmental (ESG) related funds this year. A further 17% plan to move investments in 2022 or later.

Three in 10 (28%) investors are considering higher risk/higher return investments that tackle climate change, and 70% of investors would even avoid investing in a business with a negative environmental impact.

With a tenth of (9%) investors overall currently holding ESG investments, this surge of non-sustainability driven investors moving funds to investments tackling issues such as climate change, will see the ESG market alone double in size in 2021.

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LONG-TERM THREATS TO OUR PLANET FELT AMONG INVESTORS Global warming Overpopulation Future pandemics Failure to act on these risks Decline of natural resources

85% 34% 30% 29% 29%

April/May 2021

When you’re here, there and everywhere for your business.

We’ll be here for you.

0330 333 5039 www.albertgoodman.co.uk

ADVICE FUNDING

Funding the future of your business from bank loans to angel investment In this article, Sam Simpson – Founder of Founder Catalyst – gives his views on how you can best fund the future of your company.

Whether your business reaches its goals in two years or 10 years will probably come down to the availability of cash. At one end of the scale you can bootstrap, sweat the business for all it’s worth and insist everyone brings their own teabags to work.

At some point you’ll score those big clients over your competitors and then you’ll kickstart your growth plan, right? At the other end you take on a bank loan, sizeable investment or give away more than you want to in equity. Sure, your team has cappuccinos on tap, but at what price? Of course, the ideal funding solution lies between these two.

In reality, businesses take on funding for one of three reasons: 1. To develop an idea into a product in the market.

2. To fund an expansion.

Sam Simpson Founder, Founder Catalyst

3. To provide working capital.

The two main funding solutions are via debt (for example bank loans) and taking on investment for equity in your business. But how do you choose which one is right for your business?

Firstly, make sure you’re not missing a trick by pursuing one or more of the following options: •

Grants from the likes of Innovate UK - whilst these grants promise ‘free money’ beware time-intensive applications and reporting. You may also need to ‘match fund’ – where you need to find equity investment at the same level as the grant itself.

•

Family and friends - gifts or interest free loans, though mixing business and your personal life can be tricky!

•

Cashflow review - Could invoice factoring or invoice discounting help to address cash flow ‘pinch points’?

So, let’s look in more detail at the two main funding options.

DEBT SOLUTIONS These include loans from banks and other lenders and you may find that a simple overdraft facility is sufficient for your needs.

The main benefit to taking on debt is that you don’t give away equity and there is usually control and transparency about how and when it is paid back. On the other side of the coin, most bank instruments require personal guarantees from all directors – genuinely putting their homes at risk if the company defaults on the loan.

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In clear contrast to taking on investment, you do need to repay the loaned money!

Sometimes interest is repaid through the life of the loan, sometimes it is ‘rolled up’ to the end of the term. You will pay an interest rate commensurate with the bank’s estimation of the risk of your business failing.

EQUITY SOLUTIONS These generally involve selling new shares in your company.

You don’t need to repay the money invested, instead investors will most likely be looking to ‘make a profit’ when you sell the business.

Recent research shows that one third of startups actively looking for funding didn’t achieve it. Similarly, Beauhurst reports that only 25% of investments made in 2020 were first round (down from a whopping 92% in 2011).

The key questions when looking at an equity solution are: 1. What is your company’s valuation (‘Pre-Money Valuation’, or PMV) at the point of taking on funding? Setting the valuation too high and you are unlikely to attract investors.

Too low, you’ll be giving away more of the company than you need to.

2. How much are you raising? Generally you’ll want to raise 1520% of the PMV - any more and investors will be wary that you are giving away too much equity. 

April/May 2021

HEALTH TECH INNOVATORS

Top 32 HealthTech innovators in the UK With a roadmap now in place to lead the UK out of the coronavirus pandemic, Business Leader has profiled 32 of the UK’s leading HealthTech firms that will be driving the agenda for the future of business, wellbeing, and health.

According to The Association of British HealthTech Industries (ABHI) there are currently 4,060 companies that work in the sector, employing over 130,000 people and have a combined turnover of more than £25bn.

HOW HAVE THE TOP 32 BEEN CHOSEN?

Whether they are already established or a disruptive entity, these are the companies that are leading the sector into the future.

The men, women and companies on this list have been suggested by our readers, however, if you feel there are other individuals that are deserving, please email editor@businessleader.co.uk, and they will be included in the digital version of the list on www.businessleader.co.uk.

This list is in no particular order.

TOP 32

DOCTORLINK RUPERT SPIEGELBERG Now entering its fifth year, Doctorlink’s algorithms are medico-legal compliant and indemnified with rigorous clinical governance and licensed independent peer review. Built by a team of healthcare and tech experts, its algorithms utilise AI and machine learning to gain a user access to the correct medical advice. Much like other innovators within the industry, its app allows video consultations and its platform has over 1300 practices across the UK – and has provided 62 million health assessments. It has so far raised almost £40m in funding.

CERA DR BEN MARUTHAPPU The London-based firm is revolutionising homecare and has raised more than £70m in funding in the six years it has existed, in order to provide pensioners with various care services. Cera’s app allows the right carers to be matched with the right patients – whether it is for offering medical support, or personal services such as shopping. The app tracks and monitors visits for loved ones and helps create personal care plans for patients.

VIVOSIGHT

PUSH DOCTOR

JON HOLMES

▴ WAIS SHAIFTA

Maidstone-based Vivosight's flagship product, VivoSight Dx, is a state-of-the art Optical Coherence Tomography (OCT) system. OCT images and measurements give scientists and clinicians access to valuable information about the skin not readily available by other means, meaning it can provide highly cost-effective, unique OCT applications for everyday use in skin research facilities and dermatology practices. The non-invasive medical scanner is used by dermatologists to diagnose nonmelanoma skin cancer.

Manchester-based Push Doctor has raised more than £44m in funding since it was founded in July 2013, to expand its digital on-demand GP consultation. After creating an account, a user can book an appointment at their convenience. A GMCregistered doctor can then diagnose entirely through video, live call, or text chat. Private prescriptions, sick notes and referrals can all be given through the platform.

HUMA DAN VAHDAT Since its creation a decade ago, Huma has established itself as a leading healthtech provider. Huma uses remote patient monitoring to provide continuous, real-world data for research and healthcare organisations. Clinicians and researchers can care for patients at home and run clinical trials by tracking symptoms and vital signs.

The platform can integrate with medical devices, offers telemedicine and uses digital biomarkers to give insight into people's health.

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April/May 2021

HEALTHTECH INNOVATORS

LUMEON

THEOLYTICS

ROBBIE HUGHES

CHARLOTTE CASEBOURNE & MARGARET DUFFY

Lumeon is a digital healthtech firm leveraging Care Journey Orchestration (CJO) to take a fresh approach to healthcare delivery. Over the past fifteen years, the company has helped some of the leading healthcare providers in the US and Europe to create better coordinated patient care journeys. Its platform enables providers to create and automate programmable care journeys. It has more than 11 million patients and last year was valued at £28.7m.

Theolytics is a biotechnology company harnessing viruses to combat cancer. A step-change in the oncolytic viral therapy field, the company's phenotypic screening platform enables the discovery and development of effective, targeted candidates suitable for intravenous delivery and optimised for a chosen patient population. Oncolytic viruses have the capability to selectively infect, replicate in, and kill cancer cells.

LANTUM

OXEHEALTH

MELISSA MORRIS

HUGH LLOYD-JUKES

Lantum is a workforce management platform that makes it easier for healthcare providers to mobilise their workforce, and for clinicians to work more flexibly. The scheduling platform allows users to cut admin time and reduce costs. Founded by Morris in 2012 after working as part of the NHS, she saw firsthand how inefficiencies in staffing were drastically affecting the quality of care available to patients. She knew that by using technology to break down the barriers between practice managers, who need to fill vacant sessions, and GPs, looking for a more flexible way of working, patients would see an increase in the quality of care they were receiving.

Born out of the Oxford University Institute of Biomedical Engineering, Oxevision platform enables staff to both plan patient care better and to intervene proactively to help patients. Unlike conventional remote patient monitoring companies, Oxevision includes a contact-free optical sensor which detects patient vital signs and behaviour and delivers a secure on demand video feed.

Oxevision provides staff with a wider range of clinically validated early warning signs and risk factors than any other technology, plus the ability to check the patient visually before choosing their intervention.

▸ Dr Maria Karvela DNANudge

DNANUDGE ◂ DR MARIA KARVELA & PROFESSOR CHRIS TOUMAZOU This Imperial College spin-out is a digital genetic testing service that provides users with tailored food and health recommendations based on their DNA. Users must first provide a sample of their DNA, which is collected through a cheek swab - and is then digitised through the firm's 'DNACatridge'. A user's 'digital DNA' is available through their app. Users are then given a wearable ‘DNABand’, which enables them to scan thousands of products to assess whether they are an appropriate match for their biology.

The wearable tech is also used to monitor physical inactivity - encouraging its users to be more physically active.

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TOP 32

▾ David Meinertz Zava

▾ Dr Bayju Thakar Doctor Care Anywhere

▴ Dr Faz Chowdhury Nemaura Medical

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April/May 2021

HEALTHTECH INNOVATORS

DOCTOR CARE ANYWHERE DR BAYJU THAKAR This digital healthcare firm brings together primary care, diagnostics and secondary care services allowing clinicians to deliver end-to-end patient care across a range of non-emergency health issues. After booking an appointment through its digital platform, patients can schedule phone call or video consultations with highly trained GPs, and if appropriate, be issued with prescriptions, doctor notes and specialist referrals all recorded under a single, patient accessible, Electronic Health Record.

UNMIND ▾ DR NICK TAYLOR

BABYLON HEALTH ▴ DR ALI PARSA Founded in 2014, start-up unicorn Babylon Health utilises artificial intelligence diagnostic software to provide a range of healthcare services through its ‘Ask Babylon’ tool. The firm’s innovative tech allows users to enter their symptoms and analyse millions of data samples from doctors and scientists to replicate a diagnosis. The tech also offers live video/audio chats – meaning that prescriptions can be issued electronically. Babylon Health has raised more than £500m in funding.

Unmind is a workplace mental health platform, that empowers employees to live more fulfilling and balanced lives by changing the way organisations think about health and wellbeing through clinically-backed digital tools. From helping to reduce stress to aiding people’s sleep, the company has become a trusted partner to some of the UK's largest employers, such as British Airways and Just Eat.

ZAVA DAVID MEINERTZ Zava online doctor is a discreet and convenient way to get medical treatment, wherever and whenever needed. Simply complete a digital medical questionnaire, place an order and their doctors will check a suitable treatment for a user, which will then be sent out safely and securely to your chosen address. The online doctor service continues through the treatment and an individual can contact one of Zava's doctors free of charge. Zava has carried out over four million consultations to patients in the UK, Ireland, France and Germany.

NEMAURA MEDICAL DR FAZ CHOWDHURY Founded in 2011, Nemaura Medical set out to develop a single platform technology using non-invasive microsystems to measure blood markers at the surface of the skin. Since then, the company has evolved with the creation of wearable technologies and digital healthcare solutions that encourage and empower people to take charge of their own health and wellbeing.

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TOP 32 REPORT

▾ Dr Tim Guillams (Top Center) with the Healx team

HEALX ▴ DR TIM GUILLAMS Healx is an AI-powered and patient-inspired technology company, accelerating the discovery and development of rare disease treatments. The company's AI drug discovery platform leverages public and proprietary biomedical data and features the world’s leading knowledge graph for rare diseases. Combining this technology with patient insights and drug discovery expertise, its mission is to advance 100 rare disease treatments towards the clinic by 2025.

LABGENIUS ◂ DR JAMES FIELD LabGenius develops next-generation protein therapeutics using a machine learning-driven evolution engine (EVA). The company uses robotic automation, synthetic biology and advanced machine learning to explore protein fitness landscapes and improve multiple drug properties simultaneously. LabGenius is a privately-owned company, backed by top-tier venture capital funds, currently based in London. So far, the company has raised more than £12m to develop its technology.

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April/May 2021

HEALTHTECH INNOVATORS RETAIL

OVIVA ◂ KAI EBERHARDT Founded six years ago, Oviva makes accessing expert nutrition and lifestyle advice easily accessible through its innovative smartphone app. From diabetes, to undernutrition, to milk protein allergies, Oviva helps users to improve health choices. Their healthcare professionals offer a range of approaches, including phone calls and advice through the app – meaning individuals can receive care at home at a time that suits them. Oviva is a trusted NHS partner and has raised more than £25m in funding to develop its tech.

LIGHTPOINT MEDICAL DR DAVID TOUCH Buckinghamshire-based Lightpoint Medical is a technology leader in precision-guided robotic cancer surgery. The company is developing miniaturised imaging and sensing tools for advanced intra-operative cancer detection. Their mission is to improve the lives of people with cancer by transforming the efficacy of robotic surgery. Lightpoint has two miniaturised robotic probes in development. The probes aim to accurately identify cancer, enabling the full removal of diseased tissue, or confirm its absence, helping to preserve healthy, functional tissue.

ECHO BENOIT MACHEFER

▴ Dr David Touch Lightpoint Medical

Free prescription management app Echo allows patients to easily manage repeat medical courses, including home deliveries. The app lets you know when to renew a prescription, where a local GP/ pharmacy is and details you’d normally get visiting your local doctor.

Described as the ‘Deliveroo for prescriptions’ this innovative firm is now a part of the Lloyds Pharmacy Group and the NHS Innovation Accelerator. More than 425,000 people currently use the service.

HINGE HEALTH GABRIEL MECKLENBURG & DANIEL PEREZ Hinge Health is pioneering the world’s most patient-centred 'Digital Clinic' for back & joint pain. The company's clinic is the top musculoskeletal (MSK) solution for employers and health plans. MSK conditions are one of the top medical spends for employers and Hinge Health is making it easier to bring expertrecommended care to millions of patients,by being the first company to combine wearablesensor guided exercise therapy with one-on-one PTs, health coaching, and patient education.

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TOP 32

MEDICALCHAIN DR ABDULLAH ALBEYATTI Medicalchain uses blockchain technology to create a userfocused electronic health record whilst maintaining a single true version of the user’s data. Medicalchain enables the user to give healthcare professional access to their personal health data and then records interactions with this data in an auditable, transparent and secure way on Medicalchain’s distributed ledger.

The platform can be used to build applications that complement and improve the user experience, meaning that they will be able to leverage their medical data to power a plethora of applications and services.

PANDO PHILIP MUNDY, DR LYDIA YARLOTT, DR BARNEY GILBERT Pando is a clinical communications platform that offers a variety of features built for health and social care workers.

Secure messaging, image sharing, patient lists, open forums, active directory and file sharing enable clinical professionals to deliver the best possible care. With over 65,000 users, Pando is one of the UK’s leading clinical messaging systems. The app is available on iOS and Android.

CURRENT HEALTH CHRISTOPHER MCCANN & STEWART WHITING The Edinburgh-based tech innovator has raised more than £20m in funding since its creation in 2014 and is a remote patient monitoring platform. Through this platform, Current Health is able to achieve its mission of ensuring every human has the ability to lead a healthier and longer life by predicting disease onset and delivering treatment earlier through its digital solutions.

OWLSTONE MEDICAL BILLY BOYLE Another industry-leading innovator from the Oxford-Cambridge region, Owlstone Medical has developed a breathalyser for disease. With a focus on non-invasive diagnostics for cancer, inflammatory diseases and other conditions, the company's mission is to save 100,000 lives and $1.5bn in healthcare costs by advancing early detection and precision medicine.

The Breath Biopsy platform can be used in clinical diagnostics and precision medicine with applications in cancer and a wide range of other medical conditions.

LUMIRADX

KHEIRON MEDICAL TECHNOLOGIES

RON ZWANZIGER

DR PETER KECSKEMETHY & TOBIAS RIJKEN

London-headquartered LumiraDx’s platform is a diagnostic system which combines a small, portable instrument, test strip and allows for remote management and data sharing through digital connectivity. Since it was founded in 2014, it has raised more than £30m funding to expand its smart diagnostic platform to allow individuals to self-care under the guidance of care teams. The company has now expanded to the USA, and has offices in Massachusetts.

KHM's mission is to help breast cancer patients live longer, better lives through earlier detection. The company's industry leading technology combines new deep learning methods, data science and radiology insights to help doctors find malignancies in mammograms. According to external clinical trial results, Kheiron’s deep learning technology achieves state-of-the-art malignancy detection support in breast cancer screening.

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April/May 2021

HEALTHTECH INNOVATORS

OXFORD NANOPORE TECHNOLOGIES DR GORDON SANGHERA The Oxford-headquartered tech innovator has developed the world’s first and only nanopore DNA and RNA sequencing platform. Founded in 2005 as a spin-out from the University of Oxford, the company now employs more than 600 people from multiple disciplines including nanopore science, molecular biology and applications, informatics, engineering, electronics, manufacturing and commercialisation. The company has a track record of delivering disruptive technologies to the market.

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ELVIE ▴ TANIA BOLER The femtech innovator is a health and lifestyle brand developing smarter technology for women. Its first product, Elvie Trainer, is an award-winning app-connected Kegel trainer that helps women strengthen the pelvic floor via fun, five-minute workouts.

They recently launched their second innovation: Elvie Pump, the world’s first silent wearable breast pump, which is making it possible for new mothers to pump anytime, anywhere. They recently received $42m Series B funding and opened an office in New York.

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TOP 32

HEALTHTECH INNOVATORS

THRIVA HEALTH

OPEN BIONICS

▴ ELIOT BROOKS, HAMISH GRIERSON & TOM LIVESEY

▴ JOEL GIBBARD & SAMANTHA PAYNE

Thriva is the UK's most convenient, at-home finger-prick blood test. All tests are analysed by Thriva's partner laboratories, and results are reviewed by a GP. Patients then receive their results through the Thriva dashboard, with commentary on the results, along with any areas that might require some improvement. The process is simple; order a test through Thriva; do the test and send it back; and then receive the results within 48 hours. The company also donates all of its profits to charity.

Open Bionics is ‘turning disabilities into superpowers’ by building and developing the next generation of bionic limbs. The Hero Arm is the world's first clinically approved 3D-printed bionic arm, with multi-grip functionality and empowering aesthetics.

Engineered in Bristol, it is a lightweight and affordable prosthetic, available now in the UK, USA, Europe, Australia and New Zealand, for below elbow amputee adults and children aged eight and above.

VINEHEALTH ◂ GEORGINA KIRBY & RAYNA PATEL The Vinehealth app allows people living with cancer to track their symptoms, manage their medications and understand their care - putting cancer patients back in control of their treatment. Vinehealth is free to download from the Apple App store and Google Play store. The company has worked with oncologists, specialist cancer nurses and patients to build an app allowing patients to easily report and monitor their symptoms.

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April/May 2021

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DEBATE

Sponsors of the Future Workspace panel discussion Talk to us about the future of your office T: 07807 747 455 I E: mstokes@hcrlaw.com

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THE WORKING FROM HOME MASK COULD BE SLIPPING BL assess the great work from home experiment As the vaccination programme continues to move at breakneck speed, Business Leader looks at the future of work, returning to the office and whether productivity was boosted or harmed by the great working from home ‘experiment’. To do this, we spoke to a panel of business leaders that include: THE PANEL THAT TOOK PART IN THIS DEBATE WERE: Harriet Murray-Jones Harrison Clark Rickerbys Rob Vivian PureComms George Dexter Armour Home Mike Beesley TimesTwo Investments Yetunde Hofmann Non-Executive Director Steve Preston Heat Recruitment Brendan Street Nuffield Health Daryl Brunt Fellowes Jonathan Richards Breathe HR Vicky Sylvester Acacia Training Michael Stokes Harrison Clark Rickerbys

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What has been interesting about the shift in working patterns over the last year is that it is hard to describe it as truly remote working – it’s more like pandemic working, where many people have actually been forced to work from home, rather than a well thought out flexible working process.

This makes it difficult to assess its impact, but one thing is for sure – much has been learnt from this ‘experiment’ in how we work and many who previously advocated for just office working have also seen the benefits of homeworking.

Harriet Murray Jones is a lawyer at Harrison Clark Rickerbys and, interestingly, her firm started conducting a huge piece of research into the future of work pre-pandemic in 2019 and re-ran the research at the end of 2020.

Harriet comments on what they found: “When we ran the survey in 2019, only three per cent said they felt homeworking had a negative impact on their wellbeing but when we held it again in 2020, one in five people said they felt it was having a negative impact on their mental health.”

▲ Harriet Murray-Jones Harrison Clark Rickerbys

April/May 2021

FUTURE OF WORK

Sponsors of the Future Workspace panel discussion Talk to us about the future of your office T: 07807 747 455 I E: mstokes@hcrlaw.com

This snapshot of the findings does potentially show that whether people have enjoyed working from home has been skewered by the pandemic.

To delve deeper into the research, Business Leader spoke to Rob Vivian – who is CEO at Pure Comms, to see how his business has found this change to working patterns.

He said: "We’re a tech business, so allowing people to work from home and giving people the tools to do this is easy for us. But culturally, and in terms of how we deliver service to our clients, it has had an impact that has not always been positive. We found that email – the tool of delegation – was being used more,

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when before we would have gone over to somebody’s desk and got things moving quicker.

hours on the train, it’s been shown that they could be more productive working from home."

"For our business, I have seen people’s effectiveness start to wane too and I have seen an impact on our staff’s mental wellbeing, and they haven’t broadly enjoyed working from home.

George Dexter, who is CEO at Armour Home, also feels the novelty of working from home is starting to wear off.

"But I also must understand that being in the office five days a week will not work for everybody, so I feel a hybrid approach is likely in the future and I am seeing lots of firms working towards that model.

"There is also a point to be made about where you work because for those that commute to work and have to endure long

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He explains: "In March it seemed like a dream come true for many, but I feel that after the second lockdown, the novelty started to wear off. I feel there are issues with working from home around loneliness and social interaction.

Cont. 

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DEBATE

Sponsors of the Future Workspace panel discussion Talk to us about the future of your office T: 07807 747 455 I E: mstokes@hcrlaw.com "I do also feel that training a new employee remotely is an issue – how can they learn as there is only so much Zoom you can do. I would also like to say that as an international business it is important that I am meeting our partners in Asia and shaking their hands. Zoom just does not cut it for this.

INCLUSIVITY IN DECISION MAKING What will be an important conversation for businesses now – is what happens next, should the government roadmap be executed successfully, and restrictions lifted.

"My final point is that I do not feel the office is dead at all and if I were a pension fund with money in real estate, I wouldn’t push the panic button yet. I’m optimistic that people will go back to offices but also understanding that there has been a change and there will be more flexibility."

"We need to free up people to be truly flexible, with some in and some out of the office. I believe that people will go to offices for the messy, fun and creative stuff that builds culture and home could be the space for getting your head down and getting work completed."

"I FEEL THAT GETTING PEOPLE BACK INTO MINDSET OF WORKING OUTSIDE OF A PANDEMIC IS IMPORTANT, OTHERWISE WE’RE GOING TO SEE WORK CULTURES EBB AWAY. I WOULD SAY WE ARE DOING LESS FLEXIBLE WORKING NOW THAN WE PREVIOUSLY WERE TOO – AS THIS IS PANDEMIC WORKING. " Jonathan Richards

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the situation we have now is unusual and it is difficult to use as a benchmark when it comes to measuring productivity. I feel we need to get people settled back into the office, but leaders will know what is best for their team and whether that’s office working, hybrid or homeworking."

"MAJOR DECISIONS ON THE FUTURE OF WORK TEND TO BE MADE BY PEOPLE WHO LIVE IN HOUSES WITH THREE BEDROOMS OR MORE, AND THOSE THAT ARE IMPACTED BY THOSE DECISIONS ARE OFTEN IN THE LOWER SOCIAL ECONOMIC CLASSES."

Jonathan Richards, who is the CEO of Breathe HR, also believes that the pandemic is eating away at the culture of many businesses.

"I feel that getting people back into mindset of working outside of a pandemic is important, otherwise we’re going to see work cultures ebb away. I would say we are doing less flexible working now than we previously were too – as this is pandemic working.

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Yetunde Hofmann ▲ Yetunde Hofmann Non-Executive Director

Yetunde Hofmann believes that whatever decisions are made, they must include everybody.

She says: "Major decisions on the future of work tend to be made by people who live in houses with three bedrooms or more, and those that are impacted by those decisions are often in the lower social economic classes and going to work gives them a break. You need to include everybody in the decisions and think carefully about the impact on everybody in your business."

HAS HOMEWORKING SOLVED THE PRODUCTIVITY PUZZLE? The UK has also historically had an issue with productivity, compared to other developed economies and some pundits have argued that adopting a Swedish model, that allows for more flexibility and less hours in the office, could be the answer.

So, what impact has the shift away from being based at the office had on productivity?

Richards comments: "The UK has a productivity gap and it’s no big surprise that the pandemic hasn’t helped that. But

Brendan Street, who is Professional Head of Emotional Wellbeing at Nuffield Health, agrees that measuring productivity during the pandemic has been difficult.

He says: "We’re trying to work from home during a pandemic and I think the results around productivity could be skewed from that. Remote working can increase job satisfaction and work life balance according to a recent report we carried out and office has been called an interruption factory. But the risks are isolation and burnout, and the research shows that there is a Goldilocks zone of around two and half days in the office and the rest at home and this may point to the optimum productivity."

WHAT ABOUT THE FUTURE FOR TRAINING? Key to boosting productivity is training and equipping teams with the skills and knowledge they need to achieve growth and scale.

But what is the best approach, is it in person or does remote training work just fine? Vicky Sylvester is the CEO of Acacia Training and she says: "You can talk about

April/May 2021

FUTURE OF WORK

Sponsors of the Future Workspace panel discussion Talk to us about the future of your office T: 07807 747 455 I E: mstokes@hcrlaw.com

www.hcrlaw.com

whether online or face to face is better but what businesses need to focus on is impact and the needs of the learner. We all have different learning styles, so it is about delivering what is best of the end user.

"On the proliferation of remote training due to the pandemic, one issue it has raised is digital poverty and everybody being able to access the internet and the technology they need. But on the flipside, it has also increased accessibility for those that are more comfortable at home or have a disability; or need to train at home due to other commitments.

"Finally, whether it is remote or in person, the worse type of training is mandatory training that you do every year and it never changes and it just ticks a box."

HAVE WE OPENED THE TALENT POOL? To conclude the debate around productivity and where people work, we looked at recruitment and whether the move to homeworking had made it more difficult to recruit the skills businesses need or whether it had opened new possibilities?

solicitor in your bedroom or study is now possible but there is a downside in that you may not meet your team face to face as quickly.

"The pandemic has made us really look at how we recruit and who is in our talent pool, but I do have a concern that some employers may still be in an emergency mindset and not looking at the wider pool of talent and recruiting more local because they feel they need somebody they can trust and know if they will be working from home, but this can restrict outlook and mean they miss out on talent."

Steve Preston, who is the founder and Managing Director of Heat Recruitment, also feels there have been some benefits found from this new approach to working.

▲ Michael Stokes Harrison Clark Rickerbys

Michael Stoke is Head of Employment at Harrison Clark Rickerbys and says that he has found some positives.

He explains: "When recruiting, one aspect that is much easier is that you can recruit from a much wider talent pool and you don’t have to be tied to one particular office or geographic location. Being a

He says: "This has been one of the biggest shifts we’ve ever seen in the recruitment sector. Video calls have been around for a while, but it is now mainstream and what this means for recruitment is that, ideally, you would want to look somebody in the eye but talking to them via Zoom isn’t much different – as you can still have a conversation and get to know them.

"It’s the probationary period and the early days they spend in your business that will

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determine whether they’re the right person or not – and that’s not a new challenge in recruitment. You can also see more candidates now in a day and we are seeing that the 50/50 candidates are getting more of a chance because it is easier to book in a second or third interview. The talent pool has definitely widened too, and the network is now global, and this can only be a good thing."

Mike Beesley is a veteran of the recruitment world and an entrepreneur that has started several businesses in the space. His take is more pragmatic about the benefit that virtual can bring.

He says: "People are now hiring but the problem you have is that it is all done remotely, and recruitment processes are being extended because of this. I feel you are missing that physical human interaction and chemistry which is something you get by being in a room with somebody.

"I also feel it is an issue that people are starting work having never physically met their team members. You also have to note that not everybody has the privilege of having a garden and a nice house and the office can play an important role for them." 

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APPOINTMENTS

People & Appointments Business Leader gives a rundown of recent appointments and promotions across various sectors over 20 years working in a variety of roles within the sector, including General and Regional Manager positions with an array of industry giants, including DPD, Hermes and City Link, he has the industry knowledge and experience to drive the company forward in 2021.

CARBASE EXPANDS WITH NEW CEO AND DIRECTOR APPOINTMENTS Bristol family-run dealership Carbase has announce the appointment of a new CEO and Director. The used car supermarket, has announced the appointment of Rich Green as Chief Executive Officer and Director, along with Chris Caygill as Strategy & Innovation Director, who will help advance the strategic agenda for the business.

BRITISH BUSINESS BANK APPOINTS ELIZABETH O’NEILL AS GENERAL COUNSEL The British Business Bank have announced the appointment Elizabeth O’Neill as its new General Counsel.

O’Neill is a highly experienced General Counsel with more than 20 years’ experience in the public and private sectors advising on EU competition law, international law and corporate governance. She has undertaken a variety of legal leadership roles for the Government throughout her career.

STELLANTIS ANNOUNCES A NEW MANAGEMENT STRUCTURE Alison Jones has been appointed as Stellantis Country Manager UK and Senior Vice President for Peugeot, Citroën, DS Automobiles, Fiat, Fiat Professional, Abarth, Jeep and Alfa Romeo.

Paul Willcox is now Group Managing Director and Senior Vice President for Vauxhall Motors.

PALL-EX LONDON APPOINTS NEW GENERAL MANAGER Basildon-based logistics firm, Pall-Ed London, has announced that it will now be headed up by Brian Devine. Having spent

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MONZO CO-FOUNDER APPOINTED CHAIRMAN OF TICKR tickr, an app that empowers people to invest in companies making a positive impact on the planet has appointed Monzo cofounder, Gary Dolman, as Chairman. This follows the company closing a £2.5m funding round with Ada Ventures in February, whilst growing more than 500% since lockdown began.

FORMER ADIDAS MANAGING DIRECTOR JOINS TEAM VITALITY AS CO-CEO Global esports organisation Team Vitality have announced the appointment of Guillaume de Monplanet as its Managing Director and Co-CEO who joins with over 20 years of experience in the sports and lifestyle industries, including at iconic sportswear brands Adidas and Reebok.

BARCLAYS APPOINT MARK STUCKEY TO LEAD THE MIDCORPORATE MARKET FOR THE SOUTH Barclays has appointed Mark Stuckey to lead the mid-corporate market for the South of the UK. Mark will be responsible for the continued growth for Barclays mid-corporate, managing and driving forward the mid-corporate business proposition across the Thames Valley, Oxfordshire, South West, South Wales, South Coast, Surrey and Sussex area.

April/May 2021

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REVIEW

Record levels of investment into UK Tech sector described as ‘force for good’ For this feature, Business Leader wanted to assess how the UK tech sector is holding up after the last 12 months, compare its standing globally, and look at what verticals will grow in the future. To do this we spoke to: THE PANEL: Nathan Guest Head of Technology – VWV Roland Emmans Head of Technology – HSBC Russ Shaw CEO – London Tech Advocates Debbie Forster MBE CEO – Tech Talent Charter Felicity Burch Head of Innovation – CBI Harry Destercroix Founder – Science Creates Ventures

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A great yardstick for measuring the success of any sector is how much investment it soaks up, and the money that went into the UK tech sector in the last year, was a whopping £11.2bn, which is up on the previous year by just over £1bn.

Part of the reason for this increase in investment has been the sector’s emergence as a force for good during the pandemic and it has provided many of the solutions to the problems we have faced.

Technology has, in short, allowed many businesses to not just survive but thrive.

Nathan Guest, who is Head of Technology at UK law firm VWW, delves a little deeper into what is driving growth in the sector.

He says: "The current levels of investment going into the UK tech sector should provide us with confidence as we’re seeing it all stages in the business journey and valuations have held up pretty well too.

"In terms of what is driving growth, it’s not rocket science. We act for many emerging life science businesses that have been doing very well; and any business that is

involved in technology that creates less human interaction is the place to be too.

We are also seeing more investment in AI/Robotics and machine learning. The digitisation of healthcare is also a vertical that is growing rapidly, and it is also no surprise to know that technology around virtual appointments is also growing fast.”

Roland Emmans, who is Head of Technology at HSBC, also agrees that tech has been the answer to many of the questions we have faced recently.

He comments: "We have seen change bottled into three months that would usually take businesses three years and much of that has been around digital transformation, which is about going from rigid legacy systems to something that is cloud native and often mobile first and agile. This transformation is not just happening at the top of the public of private sector either, it is coming all the way down to smaller businesses too.

Businesses are realising that what has got you

April/May 2021

UK TECH SECTOR

here now, will not make you successful in the future as there has been a shift in how the economy functions and people are unlikely to go to back to how they worked and consumed, prior to the pandemic.

"We’re also moving to a non-contact society as it is illogical to think that you will walk into a building a press buttons now as COVID-19 is 80 times more likely to spread by people touching surfaces. We’re looking at facial recognition now, which links back to smart buildings and the Internet of Things (IoT)."

BREXIT – DO ISSUES STILL LINGER? It seems that the future looks positive for the UK tech sector and we will be counting on the innovation of our tech leaders to help us continue to navigate these challenging times.

But Russ Shaw – who is the CEO of Tech London Advocates – does see unfinished business with the EU as one of the challenges we need to be aware of.

He explains: "Brexit has been completed yes, but it has been done so with a very thin trade agreement and one of the parts that was punted down the line was data.

After the US and China, the UK has the highest amount of cross border data flows, 75% of which comes from the EU. Post the deal being done, personal data from the UK can go to the EU but we have been told that we have six months to create a data adequacy agreement that will see us through in the future. Both sides want to make this happen but there are a few potential landmines from the EU that could get in the way. This is an issue because if we don’t

get this in place, businesses will struggle to get investment."

In regard to the challenges facing the sector, Felicity Burch – Head of Innovation at the CBI – agrees that data transfer is one that stands out, but she also says that growth capital remains a challenge despite the record levels of investment.

She says: "Cash and capacity are two major challenges we see tech businesses facing and lots of companies in the sector are hitting barriers that are stopping them from investing and keeping going. Turning data into decisions is also a big challenge for businesses and understanding how they can get real value out of software and technology platforms they are investing in.

It’s one thing investing in shiny new kit and having lots of data – but many businesses don’t know what to do with it."

Nathan Guest Head of Technology, VWV

HAS COVID PUSHED THE DIVERSITY AGENDA BACKWARDS? Russ also says that skills is a burning issue as there has been a 36% increase in vacancies in the tech sector since the first Lockdown back in March 2020. Access to talent is a challenge for many tech businesses; coupled with ensuring they are encouraging diversity when making appointments.

Looking deeper into skills and increasing diversity in the tech sector, Business Leader also spoke to Debbie Forster, who is CEO of the Tech Talent Charter.

Roland Emmans Head of Technology, HSBC

Cont. 

Russ Shaw CEO, Tech London Advocates

Business Leader - Inspire • Inform • Connect

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REVIEW

She said she had fears that diversity would be pushed to the back of the queue because of COVID-19.

Felicity Burch Head of Innovation, CBI

Debbie says: "I had a fear going into this pandemic that the debate would be driven backwards but we’ve seen the opposite.

The sector seems to have woken up and realised that expanding your talent pool and encouraging a more diverse team is a way of navigating your business out of this difficult situation. I believe that transformation is not just about the kit, but it is about the people too. And ensuring we have more females and ethnic minorities at the top of technology firms isn’t about social justice and being a nice thing to do but ensuring we remain competitive as a nation."

IT IS ALL ABOUT THE ECOSYSTEM STUPID! Investment, data, and skills are big ticket issues no doubt but can any of them be properly solved without looking at the tech infrastructure and ecosystem that each of our UK cities has.

It is a tech ecosystem which Harry says, ‘stands up for the scientist’.

He explains in more detail why a strong tech ecosystem is so important: "Where a tech discovery is founded has a huge bearing on whether it is commercialised or not and this can mean we miss out on fundamental breakthroughs in technology and science. The external ecosystem a business is part of plays a major role and place is very important in determining whether a start-up becomes a success or not. Currently, a small number of cities produce most of the world’s technology which means we must be missing out innovation?"

Harry continues: "Relationships with universities, corporates and a network of investors who are smart and know the space; as well as physical buildings and lab space where companies can carry out R&D – that is flexible, are key.

"We can turn failure rates on their head by creating strong ecosystems and there is

Harry Destercroix is a serial investor, tech entrepreneur and academic who has recently opened Sciences Creates Ventures.

Debbie Forster MBE CEO, Tech Talent Charter

"WHERE A TECH DISCOVERY IS FOUNDED HAS A HUGE BEARING ON WHETHER IT IS COMMERCIALISED OR NOT AND THIS CAN MEAN WE MISS OUT ON FUNDAMENTAL BREAKTHROUGHS IN TECHNOLOGY AND SCIENCE." Harry Destercroix

Harry Destercroix Investor & Entrepreneur

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research which shows that a successful ecosystem will decrease failure rates by 88%."

WILL THE MOOD MUSIC CHANGE WITH BIDEN? To conclude the look into the UK tech sector, Business Leader wanted to see how it compares globally. Japan, USA, China, and South Korea remain leaders along with the UK and once again investment provides a yardstick which shows that the UK is a major tech player.

Nathan says: "Investment is a yardstick for confidence and investors are generally smart. On the global stage we have seen

a significant number of eye watering investments into UK tech firms from money outside of the UK. Just look at Graphcore – the business is four years old, and it’s already raised $700m for its game changing technology.

"The UK tech sector is firmly on the global stage and cities like Bristol, Cambridge and Manchester are now pulling their weight alongside London.

"One note of caution though; 80% of investment is going into scale-ups rather than at seed level and I’d like to see more investment at this stage to ensure we don’t run out of supply of scale-ups."

"THE SECTOR SEEMS TO HAVE WOKEN UP AND REALISED THAT EXPANDING YOUR TALENT POOL AND ENCOURAGING A MORE DIVERSE TEAM, IS A WAY OF NAVIGATING YOUR BUSINESS OUT OF THIS DIFFICULT SITUATION." Debbie Forster MBE

Business Leader - Inspire • Inform • Connect

Russ Shaw is also confident about the UK’s role globally.

He explains why: "The US and China are driving global tech ecosystems and the UK I would say comes after these two.

We need to think about how we help UK businesses expand globally and how we also encourage businesses to come to the UK. "You may not be ready for the US and China, but you can come here first and then expand into those two markets in time. The British rule of law and our regulatory system and universities give us a huge advantage.

"I also believe that we need to be looking at Biden because he will take a tougher role of big tech and social media and he is looking at how they can be managed differently as publishing businesses.Tax systems will also be important, and Biden will be looking at how these big-tech firms pay tax, and the UK has been trying to go down a digital tax route for some time." 

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INTERVIEW

POL SWEENEY

OUR GOAL IS TO REMOVE THE BURDEN OF BREXIT – and we have successfully achieved this for our clients CAN YOU TALK ABOUT YOUR EXPANSION INTO THE UK? Descartes has been in the UK for more than a decade – where we have become a leader in route optimisation, transport management and mobile applications. We work with customers, such as John Lewis and many others, who use us for last mile delivery and proof of delivery applications – and we have seen a lot of growth in this area in the UK. ▴ Pol Sweeney VP Sales & Country Manager, UK

Business Leader recently spoke to Pol Sweeney – VP Sales & Country Manager UK at Descartes Systems Group, to discuss how the company has been leading the way in assisting businesses through the Brexit transition.

CAN YOU TELL ME ABOUT DESCARTES AND THE HISTORY OF THE BUSINESS? We are a Canadian-based business, with a strong tech focus, which was founded in the 1980s – that targeted improving supply chains across the world. This has then developed into the business we have today, a global firm who creates products which address supply chains, logistics and transportation – these deliver optimisation and efficiencies, and the removing of issues within those areas. Descartes has one of the largest communications networks globally – over 200,000 connected partners, who pass messages, orders, invoices, updates, tracking, security information, and so much more..

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However, in the last year or so, we have been focusing on helping our customers through the Brexit transition – specifically anything to do with customs declarations between the UK, Northern Ireland and the EU. Our goal is to remove the burden of Brexit – and we have successfully achieved this for our clients.

HOW ELSE HAVE YOU HELPED CUSTOMERS THROUGH THE BREXIT TRANSITION? In terms of customs declarations, anyone exporting out of the UK into the EU or Northern Ireland needs export declarations, safety and security filing and other documentation needed after the Brexit transition period. In the lead up to Brexit, we helped our clients prepare, so they knew what was needed to continue trading throughout this period and to have the right training ahead of the deadline. Our clients cover a wide range of sectors and industries, so there are many areas of a business that needed our guidance during Brexit.

WERE BUSINESSES PREPARED FOR BREXIT? Many were prepared – but a lot were not.

And it doesn’t take many to be unprepared to create the problems we have seen since the New Year, with companies trading between Britain, NI and the EU. However,

if one organisation can do it – and many have – then other organisations should be able to. This is where Descartes can help – we can show you what needs to be done. Companies can help themselves by being prepared through training staff and giving them all the information they need, to understand how Brexit will affect their business.

WHAT HAVE BEEN THE OTHER CHALLENGES YOU HAVE SEEN IN YOUR INDUSTRY? The other main challenge has been COVID-19 and the impact on supply chains – as well as the wider economy.

The immediate impact of lockdowns due to COVID-19 was striking – the volumes of business dipped significantly almost immediately. However, after a few weeks, we could see the significant growth in online retail – and by Easter many retailers were seeing double the number of orders they would get at their busy periods in Christmas – and that has continued throughout the pandemic. That created challenges for many firms with regards to last mile delivery, as well as their processes surrounding that.

Now we are seeing firms putting plans in place for when we are out of lockdown – and supply chain will be the key area for many.

There is a focus around paperless and less-manual interference within the supply chain – and along with COVID testing and continued furlough workers across Europe – there are many new challenges for supply chains. Most of our software is SAAS, which has meant that many of our clients have been able to continue while working from home – and, for example, for our proof of delivery service, we have changed the way we operate to be more COVID-secure – so Descartes has continued to help clients through all of these challenges. 

April/May 2021

BREXIT. IT’S HERE, IT’S NOW. KEEP YOUR BUSINESS MOVING. E-CUSTOMS SOLUTIONS Experiencing disruption in your logistics operations and supply chain? Concerned about the impact this is having on customer service, reputation and bottom line?

Thousands of businesses like yours, including small traders, global retail brands, manufacturers and freight forwarders, trust Descartes e-Customs to keep them importing and exporting around the world. We can help you too.

Our tried and tested e-Customs software will ensure you stay compliant with your import and export declarations, VAT and tariff payments as well as safety and security filings. If you want to safeguard your future, let Descartes assist with your compliance obligations so you can focus on the bigger picture.

Brexit’s here, so let’s get back on track. Turn to the smart solution.

DESCARTES.COM/BREXIT

INTERVIEW

How many ways does Disney sell the mouse?

In this interview Business Leader talks to ActionCoach founder, speaker, investor and business builder Brad Sugars.

A self-confessed ‘Ozmerican’, Brad talks candidly about why more people don’t think like billionaires.

When you were 16 years old you saved all your money to attend a business seminar

by Jim Rohn. It is not something many people that age do. Why did you do this?

I won the Rotary Youth Leadership Award, and this meant I could go away for a week’s long training on how to be successful. So, I saved up all my money for this trip and it is where I caught the bug to keep learning and growing.

Jim taught me that if you want to be successful you need to read a book a week for the rest of your life. Because of this when I was young, I would spend every bit of money I had at the bookshop and this

was before podcasts and the internet.

I liked the simplicity of the message – ‘if you want to earn more you have to learn more’ and this allowed me to get ahead of where most of my friends were at the time.

It seems like this helped to inspire your business career which really took off in the 1990s. How do you look back on this period?

In those days, I took part in many events and this meant that I travelled a great deal.

For two years in a row, I spent two hundred nights in hotels and took more than 200 flights.

Looking back this was a burnout methodology, and business owners can easily fall into the trap of the hustle and grind mentality, but that’s not smart thinking.

How did you go about changing your approach then?

In 2008, when the recession hit, I had reached around two thousand people with my talks, but now I have reached

more than half a million people in the first couple of months, and this is by embracing online and technology.

Looking back though, I would say the fundamentals were not different in the 1990's to what they are now, but the techniques and how you deliver your message have changed.

I would also like to get your thoughts on the difference in thinking you need to grow a business that turnover £1m to a business that turnover £1bn and why do more people not think in these terms?

Most people build a business that meets their own personal needs and wants and one that will make their life easier. They look at what they want to get out of it, rather than the size of the market.

I would say the difference between creating a business that achieves £1m and £1bn, rests around three points: Firstly, it is vision. If I hired somebody and said 'your job is to write a business plan for a million-pound business', they would do that but if I said can you please write a plan for a billion-pound business, they would need to think differently.

The second point is geography. A onemillion-pound business will likely be regional or national, but a billion-pound business will need to go global, as it is rare you have a business of this size that is not.

When I ask people, 'what is your strategy to open in India', they look at me funny, but it’s such a fast-growing market and there are more millionaires created each month than most countries have millionaires’ full stop.

The third point to consider is that you will need to create a business model that you can replicate in lots of different environments across the world.

Are you talking about the Disney model there, as an example?

To a certain extent yes, because Disney is the best example of leverage whereby

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April/May 2021

BRAD SUGARS you do the work once and sell it forever.

The mouse is a great example of this – how many ways does Disney sell the mouse? They do so via real estate, hotels, vacations, books, and toys.

Disney are geniuses when it comes to this and building in scale.

Disney is an example of an empire. Why do you feel that in the UK many business owners want to exit quickly compared to the USA, Japan, and Germany where they seem to build more empires?

Well, you have Sir Richard Branson and Sir Alan Sugar in the UK and they are empire builders. But I do take your point and I would say that there are more empire builders in UK, than we see but they do not want to have the fame.

Their business may not depend on their fame like Tesla, Twitter, or Facebook for example, and I would say that is one of the main differences between the UK and USA. I would also say that the UK produces some of the best entrepreneurs in the world, but they stay in the UK and don’t always take their businesses globally.

How much influence do you feel funding approaches have in the UK too?

It has become very sexy to exit, and when banks are not willing to fund growth, many leaders to go to venture capitalists and this creates a culture of being expected to exit in three to five years. You need to also consider millennials too, who have been raised with this culture of instant thinking and, together with the VC funding model, this will only continue.

I do not admire everything he did at all, but a good example of an empire builder is Rupert Murdoch. He does not think about what his latest share value is, but he thinks about what he is creating for twenty years down the road.

"DISNEY IS AN EXAMPLE OF AN EMPIRE. WHY DO YOU FEEL THAT IN THE UK MANY BUSINESS OWNERS WANT TO EXIT QUICKLY COMPARED TO THE USA, JAPAN, AND GERMANY WHERE THEY SEEM TO BUILD MORE EMPIRES?"

Business Leader - Inspire • Inform • Connect

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Obviously not everything can be an empire and, on this point, when you’re in a business and it may not be working, how do you know when to fold?

For me, it comes down to time and value. I run eleven companies. I’m always thinking how much time I am having to put in versus the value it’s creating. I work on a 12-month turnaround and if I have not made my money back, I exit. I might even be making money but if I feel it is not worth my time, I will also exit.

I find that as an investor unless you have rules you have created in logic mode you can easily get lost. It is like real estate – there are lots of homes I want to buy but I need a set of logical rules otherwise I would be buying everything, rather than what will create value.

What do you say to people when they ask you what to invest in?

Invest in some books so you do not need to ask me that question! No, I always tell people to invest in property as it is still the safest return, but it amazes me how many people ask for this information and then do not use it or act on it.

Moving on to another question – how important do you feel it has been for you to invest in your personal brand?

If you chose to not control your brand, you are letting other people control it.

There was a period when I stepped back from investing in my personal brand, but I realised I was not teaching and sharing information and that was a mistake.

If you do not ask your best customer to give you testimonials, then your worst ones will. Rankings, rating, and testimonials are probably one of the most important parts of marketing.

When it comes to your personal brand – you cannot do this half-heartedly and you need to invest time and money each week to get this right.

My job as the CEO is setting us up for ten years down the road and with 80 offices around the world you cannot move the ship in the day, so it takes time to shift a culture and having a strong personal brand is important to this and so is learning all the time.

I am always thinking what the next thing I need to teach my clients because what I teach, people implement.

You’re active on Clubhouse – what have you made of it?

It can be a time vacuum but people who have allowed it to take their time would have let anything take their time. It has also taken social media to an immediate media. Facebook and Instagram have been trying to get live video to be its central thing but have not worked out how to make it interactive.

Clubhouse has worked out how to do this and you’re seeing people sitting for three

"MY JOB AS THE CEO IS SETTING US UP FOR TEN YEARS DOWN THE ROAD AND WITH 80 OFFICES AROUND THE WORLD YOU CANNOT MOVE THE SHIP IN THE DAY, SO IT TAKES TIME TO SHIFT A CULTURE AND HAVING A STRONG PERSONAL BRAND IS IMPORTANT TO THIS AND SO IS LEARNING ALL THE TIME."

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hours in rooms learning and chatting.

The launch of Clubhouse has been ideal too because there could not have been a better time to launch it.

WhatsApp, Uber, and many more brands came out of the 2008 crash and I feel that we are going to see some amazing innovation coming our way from some of the people that have lost their jobs to the pandemic. Clubhouse looks like it could set that trend.

So, what would you say is your number one marketing channel?

Very few businesses understand that if you can leverage relationships with your customer base you can explode quickly.

I did it back in the early days and partnered with magazines and radio stations, where I would help their customers grow. I call these strategic partnerships.

I would also say that many business owners are too fast to go to social media instead of investing in SEO. SEO is about people looking to buy your products now, whereas social media is about convincing people to buy your products.

If your SEO and website is bad, I do not care about your social media. If you are not running paid for adverts on the interview and investing in your website and SEO, you are crazy. Stop trying to only convince them on social media because they are already looking for you. 

April/May 2021

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You need to be a licensed sponsor to hire eligible employees from outside the UK. Becoming a sponsor normally takes 8 weeks and fees apply.

The new points-based immigration system has also introduced new job, salary and language requirements that apply when hiring from the EU.

This does not apply when hiring Irish citizens or those eligible for status under the EU settlement scheme.

Find out more at GOV.UK/HiringFromTheEU