Business Leader Magazine: August/September 2021

ISSN 2632-7155

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SUPPLEMENT SUPREMO Business Leader talks to Dragons’ Den star Tej Lalvani about his business empire

ceo in focus

Natasha Guerra from Runway East

EDUCATION & SKILLS Gillian Keegan MP talks about the impact of apprenticeships

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CONTENTS

IN THIS EDITION 10 COVER STORY: TEJ LALVANI

Vitabiotics CEO and Dragons' Den star discusses his entrepreneurial journey

16 DEBATE: SCALING YOUR BUSINESS

Leaders and policy makers debate the challenges facing scale-up companies

22 FEATURE: ELECTRIC VEHICLE

30 FEATURE: REMOTE WORKING

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Business Leader runs the rule over the EV sector

A report from the Tony Blair Institute recently said that over 6 million jobs could be lost in the UK to remote working - Business Leader Investigates

36 CEO IN FOCUS: NATASHA GUERRA

54 FEATURE: 2021 UK UNICORNS

Runway East CEO talks to Business Leader about her business journey and plans for the future

We feature the UK’s three latest $1bn ‘unicorn’ businesses

39 TOP 32 COMMERCIAL 58 DEBATE: T-LEVELS & APPRENTICESHIPS PROPERTY LEADERS

Profiling 32 of the UK's leading commercial property personalities

In this debate, Gillian Keegan MP and industry leaders talk about apprenticeships and T-Levels

50 FAST TRACK: BLUEFIN

64 OPINION: SAM SIMPSON

39 Business Leader - Inspire • Inform • Connect

Business Leader profiles sports and wellness e-commerce brand Bluefin Trading

Sam Simpson talks to Business Leader about private equity

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NEWS

EDITORIAL Oli Ballard - Director E: oli.ballard@businessleader.co.uk Barney Cotton - Digital Editor E: barney.cotton@businessleader.co.uk James Cook - Content Manager E: james.cook@businessleader.co.uk DESIGN/PRODUCTION Adam Whittaker - Senior Designer E: adam.whittaker@businessleader.co.uk SALES Sam Clark - Head of Awards Sponsorship E: sam.clark@businessleader.co.uk Emma Filby - Head of Advertising E: emma.filby@businessleader.co.uk DIGITAL & WEB Josh Dornbrack - Head of Multimedia E: josh.dornbrack@businessleader.co.uk Gem Crew - Social Media & Community Manager E: gemma.crew@businessleader.co.uk Melissa Shephard - Website Development E: melissa.shephard@businessleader.co.uk CIRCULATION Adrian Warburton - Circulation Manager E: adrian.warburton@businessleader.co.uk

ENTER THE GO:TECH AWARDS .22 TODAY The Go:Tech Awards .22 is officially open for entry. Businesses and entrepreneurs from across the tech space have already been sending in their applications – with the deadline of October 1 2021 fast approaching.

• • • • • •

Business Leader’s close collaboration with the UK’s leading innovators, universities and incubators has made the Go:Tech Awards, the sector’s top business event.

Following the end of the entry process, the judging panel will narrow down a shortlist of finalists that will be announced in January – with the winners announced at a live awards ceremony in April.

With new categories and a new independent judging panel introduced for this year’s edition – it is set to be the biggest event to date.

The Awards are free to enter, and the categories are; • • • • • •

Best Mobile Technology Award Best Use of Big Data Sustainable Tech Business Award AI/Machine Learning Award Best Use of VR/AR Award Most Innovative Use of Software or Cloud Technology • 5G Innovator of the Year • IT/Telecoms Support Award

Tech Dealmaker of the Year Tech Entrepreneur of the Year Fintech Business of the Year Tech Entrepreneur of the Year Healthtech Business of the Year Incubator of the Year

Do not hesitate! ENTER NOW! www.gotechawards.co.uk/categories Founder of the Go:Tech Awards, Andrew Scott, comments: “Following a hugely successful year for the UK technology sector, I am delighted to announce that entries are open for our 2022 event.

“Thank you to all our judges who will have the job of selecting the best tech firms and innovators the country has to offer – and I look forward to seeing you at our event next year.

“Good luck to all entrants!”

MEET THE GO:TECH AWARDS .22 PARTERS ACCOUNTS Jo Meredith - Finance Manager E: joanne.meredith@businessleader.co.uk MANAGING DIRECTOR Andrew Scott - Managing Director E: andrew@businessleader.co.uk

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NEWS

Disruptive femtech firm Elvie announces £58m Series C funding round Elvie, a global health and lifestyle brand developing products for women, has announced the closure of a £58m Series C funding round.

WISE acheives LSE’s biggest ever tech flotation WISE, formally known as Transferwise, has seen its valuation hit more £8bn following its listing on the London Stock Exchange (LSE).

It was LSE’s biggest float of the year and London’s largest ever tech listing.

WISE saw its profits hit £421m over the past financial year, and in 2021, the app-based firm moved £54.4bn across borders for more than six million customers.

Goldman Sachs, Morgan Stanley and Barclays all advised WISE on its listing.

The funding round was led by BGF, with further investment from funds and accounts managed by BlackRock Private Equity Partners and a consortium including Hiro Capital and Westerly Winds, plus existing investors Octopus Ventures and IPGL. Founded in 2013 by CEO Tania Boler, the Series C funds will be used to invest in three key areas: innovation and the development of new best-inclass products and services for women, continued expansion into new and existing markets, and strengthening Elvie’s operations and infrastructure ready for the next phase of growth.

Boler said: “Elvie has already revolutionised every category it has entered – but we know that we have

Tania Boler CEO

barely scratched the surface of what is possible for women’s tech. This further investment, alongside the wealth of expertise our new Board members bring, place Elvie in pole position to capitalise on the $50bn femtech opportunity – and that’s only the beginning. We won’t stop until we have fulfilled our ambition to create the go-to destination for women’s health at all life stages; providing sophisticated, accurate and personalised solutions.”

Asian and Middle Eastern investors double down on UK tech Asian and Middle Eastern capital invested in UK tech start-ups during the first half of 2021 has almost surpassed the total amount raised during the whole of 2020.

By the end of June, Asian and Middle Eastern investors had poured more than £1.7bn into UK tech companies, equating to 13.2% of total investments made in the country.

Last year, Asian investors took part in a record number of deals in the UK, totalling 106, according to figures from Dealroom.co. The running total for 2021 has already reached 95 and is expected to comfortably surpass last year’s total by the end of the year, as institutional and angel investors are attracted by the UK’s increasing expertise in tech.

Gerard Grech, CEO of Tech Nation said: “With the release of this data, it’s clear that the UK has well-and-truly established itself as the jewel in Europe’s crown for Asian investors. UK entrepreneurs are creating startups and scale-ups that are consistently, yearon-year, attracting investment from the likes of Softbank, GIC and DST Global. With such heavyweight investors, UK tech companies really can have global reach.”

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August/September 2021

NEWS

Learning Business The Rock ‘n’ Roll Way, with Kate Hardcastle MBE International TV business and consumer Expert Kate Hardcastle MBE has launched a new platform uncovering the business secrets and insights behind the music industry.

Rock ‘n’ Roll Business sees Kate delve into her past career as a singer and music manager, when she toured the world and sang with stars like Martha Reeves and Candi Staton. She’s hit the road again (Covid-safely), to go behind the scenes at iconic musical landmarks like Abbey Road Studios, Wembley and over to Nashville, LA and New York, where she’s spent time with some of the industry’s most influential movers and shakers.

Learning the secrets of success from those both on and off stage, Kate hosts a series of fascinating interviews with insiders including Shep Gordon, on whom the Mike Myers movie Supermensch is based, to hear how he helped Alice Cooper break the UK by making ‘parents hate him’. Dolly

actions, whatever industry and organisation they operate in.

Kate says, “Not many people know about my first career as a singer and band manager and I’ve had some proper ‘pinch yourself’ moments with huge stars, playing in front of audiences of thousands. For many years, I never truly realised just how much this shaped me as an entrepreneur and helped me achieve success in business.

Parton’s team shared with her the genius story behind her infamous 00’s career turnaround and she meets Nic Collins and his band Better Strangers to see how you go about launching a band when your father is already huge in the industry (Nic’s father is Phil Collins…).

The exclusive interviews are supported by Kate’s unique insights and analysis to help anyone in business take learnings and

There’s no rulebook in the music industry - you either make it or you don’t – but in this current time of change (and often uncertainty) affecting businesses of all shapes and sizes, there are so many helpful and exciting lessons to learn from this fascinating industry, which is full of constant change and evolution.”

Kate will feature on the judging panel of the Go:Tech Awards .22, celebrating the innovators, entrepreneurs and pioneers that are shaping tomorrow’s world today.

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NEWS

Record six months for VC investment into London Key Solutions named UK's top broker for Outstanding Customer Outcomes North Somerset-based mortgage broker Key Solutions has won Outstanding Customer Outcomes at the Legal and General Business Quality Awards for the second year running – beating 75 firms of all sizes from across the UK to the prize.

It has been a record first half of the year for Venture Capital (VC) investment into London’s fintech sector, with new research from Dealroom.co and London & Partners revealing London-based fintech firms have already raised more VC investment than any other year, in only six months.

London’s strong performance has also helped to drive record levels of investment into Europe’s fintech sector, with European fintech firms raising $13.9bn, up 51% on full year 2020 investment levels. London was at the heart of this growth, with its fintech firms accounting for over a third of all European fintech funding.

The bumper start to the year for VC funding sees the UK capital further cement its position as a global fintech hub, with investors pumping $5.3bn into London-based companies – an increase on all previous full year investment figures for London’s fintech sector and over 2.5 times more VC investment than any other European city.

Investment into London’s fintechs in the first half of 2021 is 2.4 times greater than during the same time period in 2020, showing investor confidence returning as the UK economy starts to recover from the global pandemic. London ($5.7bn) ranks second on the worldwide list for fintech VC investment so far this year, slightly ahead of New York ($5.2bn) and behind San Francisco in first place ($7.2bn).

Allen Simpson, Acting Chief Executive at London & Partners said: “It has been a brilliant start to the year for investment into London’s fintech sector, demonstrating the resilience of the sector and the importance of fintech to the city’s economic recovery.

Investors are showing real confidence in London’s fintech offering as well as in an ecosystem with a vibrant funding ladder, reinforcing the city’s position as a leading global fintech hub and a fantastic place to set up and scale a fintech company.”

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Anna Pepler, the company’s Partnerships Director said: “We have been helping homeowners get the outcomes they want for over 25 years thanks to the knowledge and skills of our hugely experienced team. To be recognised again at the Legal and General Business Quality Awards is a fantastic achievement.”

Key Solutions will look to make it three years in a row next year after launching its new Unconditional Service Guarantee on July 1. If a client is not happy with the service Key Solutions delivers, then provided they tell them why, the company will immediately refund any fees in full.

History made as first black Senior Partner appointed at UK Top 100 law firm Moore Barlow has announced the election of Trevor Sterling as the firm’s new Senior Partner, which sees him become the first black Senior Partner at a top 100 law firm.

Trevor joins an executive leadership team already comprising a female Chair, Helen Goatley, and the youngest Managing Partner at appointment, of a UK top 100 law firm, Ed Whittington.

In addition, the firm has also promoted family and clinical negligence lawyers Mandy Spring and Victoria Jones to Partner.

He said: “Moore Barlow is an incredible firm with incredible people, and it’s an honour to have been elected as the

firm’s first Senior Partner since merger. In my new role, I will work closely with the partnership as we build a resilient, sustainable and diverse business, and will act as the voice of our people to ensure we continue to build a great place to work and inspire our teams to deliver excellence and passionate support for clients.”

August/September 2021

NEWS

UK retail sales rose in May and June due to impact of Euro 2020 According to the Office for National Statistics (ONS), retail sales in the UK soared between May and June, as millions embraced the Euro 2020 football tournament.

The event boosted demand for retail, food and drink – and sales rose 0.5% month-on-month following a fall in May. June saw retail sales 9.5% higher than what they were before the pandemic in February 2020.

ONS stated: “Feedback from some retailers suggested that sales were positively boosted in June by the start of the Euro 2020 football championship.”

Online sales remained substantially higher than before the pandemic, however, the total proportion of sales online decreased to 26.7% in June 2021, down from 28.4% in May 2021.

Food store volumes rose 4.2% compared to May, as spending around the Euros boosted trade, but sales of clothing fell by 4.8% and sales in household goods stores was down 10.9%.

High street footfall in the week ending July 17th saw a weekly increase of 3%, its first rise since the start of June.

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NEWS

Iceland successfully introduces four-day week According to a recent study, trials of a four-day week in Iceland have been declared an ‘overwhelming success’ and has led to a wider debate on whether it should become more common in other European countries.

The move led to many workers moving to shorter hours, but were paid the same amount. The study took place between 2015 and 2019.

The trials were run by Reykjavík City Council, and they revealed that productivity remained the same or improved in the majority of workplaces.

The study included more than 2,500 workers – around 1% of the population – and took place in a variety of workplaces. Many of those surveyed moved from a 40-hour week to a 35-hour week.

Researchers from UK think tank Autonomy and the Association for Sustainable Democracy (Alda) in Iceland announced that the trials led unions to renegotiate working arrangements. week in the public sector was by all measures an overwhelming success. It shows that the public sector is ripe for being a pioneer of shorter working weeks – and lessons can be learned for other governments.”

As a result, more than 86% of Iceland’s workforce have either moved to shorter hours for the same pay, or will be offered the opportunity to change their working hours.

Workers gained a better work/life balance and employers experienced higher levels of productivity.

Will Stronge, Director of Research at Autonomy, said: “This study shows that the world’s largest ever trial of a shorter working

Gudmundur Haraldsson, a researcher at Alda, continued: “The Icelandic shorter working week journey tells us that not only is it possible to work less in modern times, but that progressive change is possible too.”

Google for Startups UK decides to close London campus Google for Startups UK (GFS) has announced that it has decided close its London Campus – and will move its services online.

The decision could have been primarily driven by the COVID-19 pandemic and the resulting working from home trend.

Google will now close the seven-storey East London campus, which has been open for almost a decade.

In a statement, the company said: “Since the beginning of the pandemic, we have supported more than 50 start-ups from across the UK in our high-touch programs and delivered training to more than 1,300 entrepreneurs. Despite the crisis, start-ups in our European community continued growing, created almost 16,000 jobs, and raised 10% more than they did in the year before — over $2.5bn.

“This shift demonstrated that, similar to the support we provide in other advanced startup ecosystems like the US and Germany, we can provide support for startups right across the country without a physical space. We are therefore opening a new chapter for our work in the UK, and we will not be reopening our Campus in London. The GFS UK team will continue delivering programming, remotely and in-person, bringing the best of Google’s people, products and best practices to start-ups across the UK and beyond.”

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August/September 2021

NEWS

£62bn borrowed from business support loans during the pandemic

Nissan unveils £1bn EV Hub ‘EV36Zero’ to accelerate the journey to carbon neutrality Nissan has unveiled EV36Zero, a £1bn flagship Electric Vehicle (EV) Hub creating a world-first EV manufacturing ecosystem.

New data shows that a total of £62bn has been borrowed from business support loans during the pandemic.

The City of London and Westminster constituency includes some of the most prominent and pricy real estate in the world including Pimlico, Hyde Park and most of Covent Garden. Businesses here dominate both the number of Bounce Back Loans taken out (16,122) and Coronavirus Business Interruption Loans (2,247), the highest aggregate amount borrowed under both schemes at well over a billion pounds (£1,582,348,914).

Manchester Central is the only authority outside of London in the top five highest borrowing areas of the UK. The authority took out 420 Covid Business Interruption loans and 5,608 Bounce Back Loans, totalling £330m.

Chris Horner, Insolvency Director with Business Rescue Expert, who carried out the research, said: “The data gives a fascinating insight into the distribution of bounce back loan borrowing across the whole of the country. It’s especially interesting when you look at which areas have seen the most businesses borrowing and the amounts they have loaned.

“Based on the insolvency cases of the small businesses we’ve worked with this year, over 41% of them entered liquidation with an outstanding bounce back loan balance of £37,350 – higher than the individual borrowing averages of any location.”

Business Leader - Inspire • Inform • Connect

Centred around its plant in Sunderland, EV36Zero will supercharge the company's drive to carbon neutrality and establish a new 360-degree solution for zero-emission motoring.

The transformational project has been launched with an initial £1bn investment by Nissan and its partners Envision AESC, a global player in battery technology, and Sunderland City Council. Comprised of three interconnected initiatives, Nissan EV36Zero brings together electric vehicles, renewable energy, and battery production, setting a blueprint for the future of the automotive industry.

Nissan President and Chief Executive Officer, Makoto Uchida said: "This project comes as part of Nissan's pioneering efforts to achieve carbon neutrality throughout the entire lifecycle of our products. Our comprehensive approach includes not only the development and production of EVs, but also the use of on-board batteries as energy storage and their reuse for secondary purposes.

"Our announcement today comes out of lengthy discussions held within our teams, and will greatly accelerate our efforts in Europe to achieve carbon neutrality. The experience and know-how gained through the project announced today will be shared globally, enhancing Nissan's global competitiveness. Nissan will continue to leverage its strengths in electrification to become a company that continues to provide value to its customers and society."

Prime Minister Boris Johnson said: "Nissan's announcement to build its new-generation all-electric vehicle in Sunderland, alongside a new Gigafactory from Envision-AESC, is a major vote of confidence in the UK and our highly-skilled workers in the North East. Building on over 30 years of history in the area, this is a pivotal moment in our electric vehicle revolution and securing its future for decades to come.

"Commitments like these exemplify our ability to create hundreds of green jobs and boost British industry, whilst also allowing people to travel in an affordable and sustainable way so we can eliminate our contributions to climate change."

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COVER STORY

The resourceful entrepreneur Tej Lalvani is the CEO of Vitabiotics – the UK’s largest vitamin company – and an experienced investor and businessman. BL met with the star of Dragons’ Den to talk to him about his entrepreneurial journey, benefits of growing rather than selling a business, and what he looks for when investing.

CAN YOU TELL US ABOUT YOUR BACKGROUND? I was born in India, but I spent my early years in the UK, went back to India from the age of eight to sixteen and then came back to the UK and completed my A Levels here. I eventually joined the family business that my father had created, which is a nutraceutical firm called Vitabiotics, after my graduation from university.

WHERE DOES YOUR INTEREST IN BUSINESS COME FROM? When I was young, I created a small business buying and selling computer games, and I have always had an interest in business, which came from my family and background. I was also always interested in medicine at a young age, and I wanted to be a scientist or a doctor.

I would create different sets of formulations and mix medicines together to try and create a cure for mosquito bites.

My fascination was always there for science, as well as business. Many people in my family and extended family were all entrepreneurs too, so I was fortunate enough to be exposed to that environment from a young age.

The mission about helping people improve their lives resonated with me.

WHEN YOU JOINED VITABIOTICS, WAS IT AS PART OF A SUCCESSION PLAN? In Indian families there is sometimes the expectation that children will come into the family business, so there was not a plan laid out and it was more of something that

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I fell into, but it is also something that I wanted to do.

DID YOU START AT THE BOTTOM OF THE BUSINESS? When I joined Vitabiotics, it was a small business and yes, I started right at the bottom. I helped in nearly every area of the business, including working in the warehouse; and because I was helping the business wherever I could, it meant I could see what needed improving across the different departments.

Following this, I then moved into focusing on international markets and travelling to grow and build the business. I also became very interested in marketing and branding.

"WHEN I WAS YOUNG, I CREATED A SMALL BUSINESS BUYING AND SELLING COMPUTER GAMES, AND I HAVE ALWAYS HAD AN INTEREST IN BUSINESS, WHICH CAME FROM MY FAMILY AND BACKGROUND. I WAS ALSO ALWAYS INTERESTED IN MEDICINE AT A YOUNG AGE, AND I WANTED TO BE A SCIENTIST OR A DOCTOR. " MARKETING MUST HAVE BEEN CRUCIAL FOR THIS TYPE OF BUSINESS? Yes, it was, and you are working with different types of consumers and different

target markets, from pregnant women to men and to children. And it was a great challenge to be able to figure out how do you tap into different audiences and markets, especially with limited resources.

We always ask ourselves - ‘how do you stand out amongst the competition?’

You need to remember though, that the concept of vitamins was very new during this period in the 1970s. It really was a whole new ballgame convincing people what it was for, and how it worked versus the traditional methods.

THE BUSINESS HAS CLEARLY GROWN TO BE VERY LARGE, AND I WANT TO TALK ABOUT WHAT GIVES YOU THE MINDSET TO WANT TO CONTINUE TO CREATE AN EMPIRE AND NOT TO EXIT? It was my father's passion, and I do not think it is something that he ever thought he would want to exit from or sell. It was really about the mission of helping people and trying to find inventions and new products that made a positive difference.

The focus has always been about thinking how you grow as a business too; and not only that but how can you do this organically.

HAS THIS MINDSET IMPACTED HOW YOU HAVE FUNDED THE BUSINESS? Yes, it has always been about not taking too much debt and trying to utilise what you have and get the maximum exposure for every pound you spend. The big question has always been - 'how do you be resourceful and not always really on other people’s money'?

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TEJ LALVANI

WHY DO YOU FEEL THAT MANY UK COMPANIES EXIT QUICKLY COMPARED TO US AND ASIAN BUSINESSES? If you are running a family business and you would like it to be a legacy business and have your children involved, you will maintain that legacy and not sell the business, if you think the next generation would be capable of taking it forward.

When you exit the business though, you do get the advantage of having a capital

pay out for the time that you have worked.

When you are building a business, you are putting money in and not taking it out, especially in the initial stages.

Following this hard work, if your business is very profitable and cashflow positive, you can arrange dividends or salary increases to be able to get some money, but an exit allows people a significant capital pay out and you can see the appeal.

Business Leader - Inspire • Inform • Connect

I am not sure why in the UK, there is more a focus on exit and not legacy. Perhaps people want to move on to the next idea because they feel it has become stale.

Or maybe they do not have confidence in scaling the business and it requires a different skillset. American culture is very different – this is something that is ingrained in people there.

Cont. 

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COVER STORY I WOULD LIKE TO TALK ABOUT YOUR ROLE AS AN INVESTOR NOW – WHAT DO YOU LOOK FOR WHEN INVESTING? I believe that transparency and integrity are very important. I need to understand that what they are telling me is the truth. And if there is a problem, they will let me know about it. I also believe that I need to get a sense of how resourceful are they going to be. Sometimes getting an investment may not be a good thing because then you can get complacent.

I really want to understand how resourceful has that entrepreneur been on the journey so far. Have they wasted money? And, how much of the business that they really understand themselves?

Furthermore, it is a simple thing, but what are they going to be like to work with? Are they going to take advice?

Of course, the other important factors are is it a viable business proposition? Is the product nice? Does it have a potential competitor? All those are separate things.

But in terms of entrepreneurs, the ones I mentioned are the key ones.

"I FEEL THAT E-COMMERCE ACTIVITY IS UNLIKELY TO REDUCE FROM WHERE IT IS NOW AND IT IS MORE LIKELY TO GO FROM STRENGTH TO STRENGTH, AS MORE PEOPLE ARE CONNECTED AND MORE PEOPLE ARE ONLINE NOW." YOU JUST MENTIONED AGAIN ABOUT BEING RESOURCEFUL – WITH SO MUCH CAPITAL AVAILABLE IS IT TOO EASY TO RAISE MONEY AND DO ENTREPRENEURS NEED TO FOCUS MORE ON REALISING PRODUCT MARKET FIT? I think there is advantages of doing it that way and being resourceful. Many businesses have become successful through raising significant amounts of money. And that seems to be the common route today. But sometimes what happens is you have a business, you set it up, you get an investment, and then you keep raising and raising money. And on paper, the valuation increases on paper with each raise, but ultimately, a lot of the time it ends up just folding, and then you have £50m that has been wasted.

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Some businesses will need to raise money though, and there is no problem with that.

I am always a believer in raising enough capital to figure out whether your business model works and whether it is generating money.

I WOULD LIKE TO MOVE ONTO A NEW TOPIC AREA - DO YOU THINK THAT THE E-COMMERCE BOOM WE HAVE SEEN WILL BE MAINTAINED? The digital age has been fast forwarded by ten years and it is taking away friction for many people in terms of going online, whether it is zoom, buying groceries, or buying clothes. The business world has changed and retail especially. Businesses have realised that they have had to adapt to having a different route to market.

So, I feel that e-commerce activity is unlikely to reduce from where it is now and it is more likely to go from strength-to-

strength, as more people are connected and more people are online now. This also means that there are more opportunities for businesses to come up with ideas and to target new customers.

IN YOUR BUSINESS YOU MUST BE SEEING THE COST OF ONLINE MARKETING GOING UP? Yes, the cost of marketing and advertising online is going to go up because a lot more people are going to be using it to target customers, and also getting the right talent and team on board is going to be more difficult and challenging because everyone wants digital marketing professionals and programmers.

MOVING ON TO ANOTHER POINT – DO YOU THINK WE SHOULD BE RETURNING TO OUR OFFICES? Every business is different but for me, I like having people in the office and

August/September 2021

TEJ LALVANI

communicating with them and having people around. I think we will also see people coming back to the office more and more. Video meetings will still take place, and this can be convenient sometimes and cut travelling time, but it is still important to have face-to-face meetings, especially with buyers and customers.

ON THE ECONOMY GENERALLY, WE HAVE HAD A TOUGH PERIOD AND MANY BUSINESSES HAVE DEFERRED VAT, PAYROLL AND ACQUIRED LOANS. DO YOU ENVISAGE TOUGH TIMES AHEAD WHEN ALL THIS NEEDS TO BE PAID BACK? A huge amount of loan debt has been acquired by business and I guess it depends if people can afford it because if inflation and interest rates stay low then of course, businesses can manage to grow.

I do feel that some of the businesses that took on loans did not need to, and this will put pressure on them. It is very hard to predict and it's of course, crystal ball gazing, but I feel that generally, despite the debt and difficulties, that the economy will be OK in the immediate future.

DO YOU EXPECT TO SEE A BOOM IN PEOPLE STARTING THEIR OWN BUSINESSES? I think there is no better time in history to set up a business than there is today because there's so much less friction in how you run a business. From registering your company online, to setting up your store online, accepting payments and shipping – it’s easier to get started than in years previous.

You do not have to spend thousands of pounds on marketing either because you can spend low amounts on online marketing, and you can test it to see if there is initial demand for your product or service and then scale accordingly. So, I think that gives the confidence and the ability for people to test an idea, if it works or not, and thereby allowing them to work with themselves and be entrepreneurs more than ever before.

FINALLY, TEJ, WHERE DO YOU SEE THE WORLD OF VITAMINS GOING? WILL WE SEE MORE PERSONALISATION? Yes, I think the market will go more towards personalisation, where you send in a DNA or blood sample, and you have vitamins that are tailored to you in the form of 3D printed gummies or a custom tablet.

This is still in the early stages, and it is still very expensive, so it is a smaller percentage of the market that are willing to pay for this now. I think bespoke tailored nutrition is going to happen.

We are also becoming more conscious as consumers and knowing about what health products are available and how they can help us. 

Business Leader - Inspire • Inform • Connect

COMMENT

LESS HEAT, MORE FIXES As businesses reopen their physical doors, any notion of this being a ‘return to how things were’ is a misguided one. Things will not be the same again, but this is a good thing. If we have learned anything from the last 18 months, it is that business leaders have an opportunity to both influence and affect change on a scale like never before.

Paul MacKenzie-Cummins Managing Director, Clearly

Earlier this year, the annual Edelman Trust Barometer found that public trust in businesses outweighs that for governments and the media. In fact, business is not just the most trusted institution, it is also considered the most ethical - 86% of people want CEOs and Managing Directors to speak out on societal issues.

During the height of the pandemic, savvy business leaders recognised that their organisations will be defined by the crisis. They could see how customer purchasing decisions were increasingly being influenced by what the business says and does. The question now is how can leaders make this work for them in a way that prominently positions them as a product or service provider of choice, giving them that all-important competitive edge?

There are two elements at play here: financial imperative and social currency.

Investing in your brand through advertising, marketing, or public relations is essential to economic recovery and growth. However, this needs to be balanced with sustainability and social impact considerations. Indeed, Environmental, Social, and Governance (ESG) reporting will dominate the corporate agenda for years to come. Businesses will no longer be measured solely on financial performance; their impact on local communities and the environment will be key considerations.

This will also influence the messaging emanating from organisations.

There needs to be a move beyond the hyperbole and self-aggrandising communications that dominated pre-pandemic promotions. Rather, the focus will be on building brand reputation through greater engagement in a way that educates and informs stakeholders of the organisation’s ‘purpose’ - it’s raison d’etre. In other words, generate less heat, achieve more fixes and in doing so organisations will greatly benefit from a sustained reputational dividend.  If you need guidance on developing your postpandemic communications strategy, get in touch.

T: 0333 207 9477

clearlypr.co.uk 13

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

PROFESSIONAL SERVICES EY has announced the acquisition of Lane4 Management Group Holdings Limited, a UK consultancy that specialises in team development, organisational performance and culture change. The acquisition will support the EY People Advisory Services’ growth ambition. 130 people, serving 100 clients of Lane4, will join the EY People Advisory Services teams, operating as EY Lane4.

ENGINEERING

TRANSPORT

British engineering giant Renishaw plc has announced that it has rejected all takeover offers. The Board of Renishaw revealed that it has unanimously decided to conclude the formal sales process after carefully reviewing a number of proposals with its advisers. They decided that none of the takeover offers would meet the Board’s objectives of delivering an outcome that satisfactorily met the interests of all stakeholders.

DPD UK, part of DPDgroup, Europe’s largest parcel delivery network and CitySprint, the UK’s premier same-day delivery company, have announced that CitySprint will become part of DPDgroup, subject to regulatory clearance. Once completed, DPD UK’s customers will be able to access CitySprint’s same day and specialist delivery services in the UK.

RETAIL

British boat hire and yacht charter marketplace, Borrow A Boat, has acquired high-end charter brokerage, Helm. The acquisition is a key milestone in Borrow A Boat’s growth trajectory, cementing its position as the largest boat charter marketplace in the UK. It also strengthens its portfolio of luxury vessels and catamarans, offering customers even more choice of boats within the high-end boating sector.

Etsy, Inc., which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, have announced the completion of its previously-announced acquisition of Depop for approximately $1.625bn consisting of primarily cash and subject to certain adjustments.

ENERGY bp has acquired UK-based digital energy business Open Energi. The company’s digital platform uses real-time data to optimise the performance of energy assets. Open Energi will join the bp Launchpad portfolio, seeking opportunities to further scale the business globally, and building on its strong commercial growth over recent years.

14

LUXURY

LEGAL Ellis Whittam – the employment law, HR, and health & safety specialist – has announced the growth of its business through the latest acquisition by parent company Marlowe plc.

Employment law compliance specialist Cater Leydon Millard will join the Group for £2.25m. This comprises an upfront consideration of £1.75m and a deferred consideration of £500,000.

August/September 2021

CORPORATE FINANCE EXPERTS

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MAKE IT HAPPEN

DEBATE

You can’t speed up reputation

What are the pain points scale-up leaders are facing?

For this special feature, Business Leader spoke to leaders and policy makers about what it really means to be a scale-up business and how can you best navigate the common challenges you will face at this stage of the growth cycle.

The word scale-up or scaling up has become common parlance in business circles, but like the word entrepreneur, a strong case can be argued that it may have become overstretched and overused with many businesses classed as a scale-up, when they are not.

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This feature examines the challenges facing our scale-up leaders, but to begin with, we felt it prudent to start at the start – and understand how you define what a scale-up company is.

and Development (OECD) definition is the best one to use, and this says that a business must have ten or more employees and be growing at 20% more in turnover every year, for three years.

To do this we spoke to Josh Robson, who is Head of External Affair at The ScaleUp Institute.

“This is important because it is creating a situation where a company is facing a very particular set of challenges, and in facing those challenges, those companies have much more in common with each other.

He says: “I think it’s worth giving some background as the ScaleUp Institute was founded back in 2015, following a report into the subject by Sherry Coutu CBE in 2014. At the time, it was considered a fringe idea to be looking at creating a category for the stage beyond being a start-up business.

"To define whether your company is a scale-up or not, I would say the Organisation for Economic Co-operation

“The reason why we use the OECD definition is for international comparability.

There are a few other situational definitions that some people look at, usually to do with application or delivery of programmes.

But when you stray too far outside of that 20% definition, you find companies with different challenges, which is not to say they're not important, of course.”

August/September 2021

SCALING YOUR BUSINESS WHAT ARE THE CHALLENGES FACING SCALE-UP BUSINESSES? Josh also talked about some of the challenges that scale-up companies are facing now, based on research carried out by the Institute.

He says: “We’re seeing five core challenges and, of course, each business will be facing ones unique to them, depending on the growth phase they are in, but they are access to talent, access to markets, access to finance, leadership and development, and infrastructure. Our research shows that these challenges have shifted over the years, and we can say with confidence that access to markets, both domestic and international, has become the number one challenge.

“You might immediately think of international markets, but it’s also about understanding how your business can access government procurement, for example, and other more complicated markets. Over the last 18 months, we have also seen access to finance increasing, and one of the things that is interesting about financing scale-ups is that the money will be doing something, rather than just keeping the fires burning. This is about building a new product line or about understanding how to get into a new market, for example.”

Josh Robson Head of External Affairs ScaleUp Institute

and that often aligns with the CTO or the product position; and number three is 'Mr or Mrs Money', the person that aligns with a CFO role that will help fund the business.

“Our data at SeedLegals shows that startups with two founders rise faster and are more successful than companies or one with three; and tend to grow to become scale-ups at a faster rate too.”

Anthony Rose, who is the Founder and CEO of SeedLegals, agrees with Josh on the core challenges. But he also says that the way you need to change your thinking as a leader is one too.

He says: “I think one of the most fascinating problems is the change in thinking that is needed as you switch from first to second gear, as how you run the business is completely different when it is scale-up, compared to a startup. As the founder, you must reinvent yourself, because the person that is right to head up the business when it is five people is not necessarily the same at 50, or 100 employees. For me, that is a larger challenge, and it asks some tough questions of a leader.”

Anthony also says that having a Co-Founder can help, as you lose that span of control as the company scales.

He explains: “I think there are three roles that a company needs; number one is the domain expert; number two is the person that is going to help deliver the vision,

Anthony Rose Founder & CEO SeedLegals

"YOU NEED TO KEEP AN EYE ON YOUR CULTURE TOO, AS IT CAN SLIP WHEN YOU HAVE EXPLOSIVE GROWTH AND BRING IN LOTS OF NEW PEOPLE. " Firdaus Nagee

DEVELOPING A SCALE-UP Every business owner probably wishes they sometimes had a time machine, as growing a successful company often means mistakes; and sometimes lots of them.

Firdaus Nagee is the Founder and CEO of bona-fide scale-up business FCI London, and he says that getting the right people on board is critical.

He says: “One of the things I would wish I had known 20 years ago was how people are super important. It sounds easy and

Business Leader - Inspire • Inform • Connect

Firdaus Nagee Founder & CEO FCI London

obvious but getting the right people in the right places is pivotal to success. Linked to this is the culture of the business.

“When you are five people or 10 you are the culture, but as you grow beyond those numbers and layers of management come in – and you are not talking to every single person, every single day – then building a new culture is important to how you're going to scale. You need to keep an eye on your culture too, as it can slip when you have explosive growth and bring in lots of new people. You will be presented with the questions of whether or not you bring people in just to carry out a role, or you bring people in that fit your culture.”

On how you develop a strong culture as a scale-up business, Firdaus says: “You can run strategy days and define your vision and mission, and make a nice infographic and that’s great, but I think actually nailing your culture is about having core values. This can be four or five points that underpin your culture that everybody in the company agrees with, and you can use these for decision making.

“Whenever there is a problem, you can go back to the core values. Whenever you are hiring, you can go back to the core values.

It is also important to adopt a policy of hire slow and fire fast too. It’s tough to do it, but if you have people in the business that aren’t aligned with your core values, you can’t be scared to do it.”

Cont. 

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DEBATE IT IS ALL ABOUT CREDIBILITY Listening to leaders about the ingredients that separate a start-up from a scale-up, you cannot help feeling that many are at the surface common sense issues, but ones that require deep-thought, lots of investment in time and often substantial resources.

Merilee Karr, who is the CEO and Founder at Under the Doormat – another scaleup business – says that credibility and becoming a trusted brand can help scale your business. But it takes time.

Merilee elaborates: “We work in the short terms and holiday rentals market,

which sometimes can have a challenging reputation. So, for me it was all about building credibility and trust from the word go. To do this I became involved in setting up the industry association and working with government to set the standards for our industry.

“I did this because it was the right thing to do for the industry but also because it built huge credibility for the business. This approach also landed us some very good clients, and we became the first to be accredited in the UK and have an insurance policy backed by Lloyds of London.

“This approach meant that we saw competitors growing quicker than us, but then we also saw some of them collapsing. We had a clear strategy, and we knew

Merilee Karr CEO and Founder Under the Doormat

Karen O'Grady Director Memery Crystal

who we were and what we are about, and we have stuck to this. You are not always the quickest to grow this way, but you are building a reputation and a brand. You cannot speed up reputation.”

ACCESS TO NETWORKS Running a business is a lonely place and it only becomes lonelier, the faster the company scales. Karen O’Grady, who is a Director at Memery Crystal, said that taking the time to access networks can be important when helping with the pains of scaling your company.

She says: “From my experience of working with many scale-up businesses, the ones that sometimes have an advantage are those that can tap into networks and peer groups. For example, when raising funding, it is very rare you will send out a pitch document cold and have a positive response from that. You must build relationships with funders and those that can support your business.

“In addition to this, founders must deal with a lot beyond their core idea, and you won’t have expertise in every area, so being able to tap into networking and peer groups is an important part of scaling your business successfully.”

NAVIGATING THE FUNDING MAZE On the list of challenges leaders face was funding, and with so many options available, it can be difficult to know which avenue to pursue.

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August/September 2021

SCALING YOUR BUSINESS Josh says that knowing exactly what you are trying to do with the money is the first thing.

COMMENT Simon Tombs Managing Partner, Monahans

He says: “I think the important thing for a business is to really think carefully about what it is you’re trying to do with the money and what do you need it for. It is said a lot, but it is important to also go out and talk to the funders and the people who can lend you money.

“There are also some great tools that are emerging, like the finance hub by the British Business Bank, which are demystifying the maze and can give you a good understanding of what is available and how it can help your business.”

Anthony adds: “An irony is that the time when it’s easiest to raise money is when you don’t need to raise money. If your business is tripling year on year and you are in the news everywhere, investors will be calling you. Your first round of investment is all about having investors perceive that you’re bigger than you really are, so it’s important to engage in marketing and get your brand and name recognised.”

"FROM MY EXPERIENCE OF WORKING WITH MANY SCALE-UP BUSINESSES, THE ONES THAT SOMETIMES HAVE AN ADVANTAGE ARE THOSE THAT CAN TAP INTO NETWORKS AND PEER GROUPS. FOR EXAMPLE, WHEN RAISING FUNDING, IT IS VERY RARE YOU WILL SEND OUT A PITCH DOCUMENT COLD AND HAVE A POSITIVE RESPONSE FROM THAT." Karen O'Grady

For Firdaus – the actual presentation matters too.

He says: “The actual numbers and projections are key. Often entrepreneurs can spend too much time on snazzy looking decks, but when you get to the nuts and bolts, such as what is your cost per acquisition, your runway to profit, CTR and digital marketing plan, for example, then they do not have the answers.

"Rather than just saying it is a £1.5bn market and we are going to do this and then that – I think it pays to be clear and humble about what you are going to do with the funding. You need to be very specific about where every single penny is going to be spent.

For a final point, you also need to try and work with funders that love what you do and who you are, and investors that will cheerlead for you.” 

Business Leader - Inspire • Inform • Connect

With change comes opportunity:

TAKE NOW AS THE MOMENT TO RETHINK AND REGROW YOUR BUSINESS Simon Tombs, Managing Partner at MHA Monahans spoke to Business Leader about the importance of capitalising on the opportunities that come with the changing times in order to scale your company.

Never before have we experienced a business environment such as this. The trends we have deliberated over for years – remote working, increasing reliance on e-commerce, digital transformation – all suddenly became the ‘new normal’. Now as we emerge from the pandemic, we are blessed with the freedom to choose our own paths once more.

But with great choice comes great responsibility, and there are difficult decisions ahead for our businesses. Though there is still a great deal of uncertainty, certain factors can and should influence your decision making, enabling all of us to move forwards, onwards and upwards.

Whether faced with financial, people or property choices, business leaders must determine what the future of work looks like for their businesses. Don’t be afraid to take risks – leaders who stand still for too long will remain left behind in the dust. If information changes in the future, it may mean ‘final decisions’ are changed or reversed, and this is ok. The good news is that if you’re still in business after the year we’ve all faced, you’ve already proven you can successfully make tough decisions.

Change is something humans are rarely comfortable with, but with change comes opportunity. Over the next few months our team at MHA Monahans will be offering their best advice for business owners right here at Business Leader and over on our website. Together we can power future business growth.

To find out how you can capitalise on opportunities to scale your business, call us today

T: 01225 472800

www.monahans.co.uk 19

OPINION

PHILIP J.A. CLARKE

‘Where’s the restless ambition we so often see with American founders?’

Do UK start-ups sell too soon?

In his new book ‘Pioneers Wanted’, Innovation Consultant Philip J.A Clarke has laid out his blueprint for how leaders in the business world can think like pioneers.

any unhappy investors… nobody’s lost money on the deal’. Echo isn’t alone.

sell out, big game leaders keep building until they make a dent in the world."

“Amsterdam-based Booking.com now generates over €7bn in annual revenue, but for over a decade its profits have ultimately gone to Priceline.com in Connecticut, United States, to whom they sold in 2005.

As part of this, he has questioned the quick exit culture that many say exists in the UK and Europe, compared to the USA.

"Finish gaming company Supercell now makes its €5m daily profits for its owners Tencent in Shenzen, China after a sell-on by a Japanese conglomerate.

Clarke continues: “Pioneers measure success by the size of the change they effect, not by either/or criteria. They focus on achievement for the sake of the vision they have, not their own ego. They’re not necessarily interested in how many units they sell or how many people agree with them. They might even endure significant financial, reputational, or political costs in pursuing the level of systemic change their vision demands.

He says: “Analysts and commentators have suspected that European start-ups often sell too soon. Where’s the restless ambition we so often see with American founders?

“When McKesson bought the British pharmaceuticals start-up Echo in 2019, it was only four years old. CEO Roger Hassan defended the seemingly early sale with the lukewarm platitude that ‘We don’t have

20

“Frankly, after Nokia and Spotify, European entrepreneurs haven’t produced anything else with truly global name recognition.

When the offer of a sale comes along, all too often they run into the loving arms of a global giant to seek respite from the fast-paced, high-risk world of startups. The motivations – huge riches, less responsibility, access to more and larger markets – are easy to understand.

"The consequences, however, are the perpetuation of this small-game mentality, a desire to shy away from the fight and seek comfort. While small-game leaders

“To the pioneer, success lies in one thing only: making an impact on the world. If you’re thinking in terms of annual turnover, number of consumers, recognition, or awards, you’re thinking too small.

“If the world is not going to be qualitatively different to what it was before you started, your idea isn’t big enough.

And if we’re satisfied with selling out before we breakthrough, we’re not true pioneers. Success to a pioneer is radical, recognisable, universal change.” 

August/September 2021

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FEATURE

How are UK businesses reacting to the shift to electric vehicles?

The electric vehicle (EV) revolution has accelerated in recent years, and after the announcement that the government will ban the production and sale of new petrol and diesel vehicles after 2030, Business Leader spoke to some industry experts to see how UK businesses are reacting to this ever-evolving industry.

Across almost every sector, there is a relentless drive to create a ‘greener’ and more sustainable future for businesses and wider society.

The Prime Minister Boris Johnson’s announcement regarding the shift to EVs was a part of the government’s ‘Green Industrial Revolution’.

To support the announcement, the PM introduced a £1.3bn funding scheme to accelerate the rollout of chargepoints for electric vehicles in homes, businesses, streets and on motorways across England, so people can more easily and conveniently charge their cars. A further £582m in grants, along with several tax benefits, will be given for those buying zero or ultra-low emission vehicles to make them cheaper to buy and incentivise more people to make the transition.

But what does this mean for companies across the country?

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IS 2030 A REALISTIC DATE? Before looking into the direct impact of what the PM’s announcement means for businesses, it is important to understand whether the UK is ready for the momentous shift away from fossil fuels and into an electric future.

Adam Hall, Director of Energy Services, Drax, comments: “Considering the appetite among businesses and consumers for EVs, it’s entirely realistic for the government to push ahead with its plan to end the sale of internal combustion engine cars by 2030.

“Truthfully, there’s never been a better time to go electric. With so many government-led incentives available, we’re starting to see business leaders bring forward investments with the aim of futureproofing their business.

“Vehicle manufacturers are also stepping up to the plate and addressing concerns

August/September 2021

Jaguar i-Pace

EV

around vehicle availability. There are now more models than ever to choose from, and all the major brands have announced at least one fully electric model variant, which will support the government in hitting its 2030 target.”

Alfonzo Marinez Managing Director LeasePlan UK

Alfonso Martinez, Managing Director at vehicle leasing firm LeasePlan UK agrees, and insists both government and the business community can do more to lead the world into an EV-focused future.

world. By pursuing ambitious policies domestically, the UK can set the tone and pace for other governments and prove itself as an international leader in the fight against climate change.”

He said: “The industry has made terrific progress over the past five years, not just in the range of models but in the improvement of technology and decrease in price. A 2030 deadline should be an entirely achievable target if we continue to progress with urgency and an emboldened attitude.

Despite the optimism among businesses and government – the biggest barrier to the 2030 date may be from the manufacturers themselves.

“What we need to see now is action. This means the Government needs to back the 2030 ban with world-leading policies and support measures to ensure its success.

Leaders need to step up and respond to public demand by investing in a universal, affordable, and sustainable charging infrastructure, with clear and attainable support for manufacturers in a post-Brexit

Business Leader - Inspire • Inform • Connect

Freddy Page-Roberts, CEO and Founder, Page-Roberts Automotive, comments: “Britain’s biggest car manufacturers have already tried lobbying the Government to push back the 2030 deadline for EVs, suggesting they don’t think we’ll be ready for that moment when it comes.

Cont. 

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FEATURE EV “Of course, the government is making steps - the building of the Nissan Gigafactory in Sunderland acting as an example - but their foray into supporting the EV revolution is not only late but fails to fundamentally support innovation and long-term sustainability within our own sector and industry.”

THE SHIFT TO ELECTRIC So, with the business community fully behind the drive for a greener future, now is the time for many industries to be looking at switching or upgrading their fleets to EV. However, it can be argued that UK businesses have been at the forefront of the electric revolution.

Martinez explains: “Fleets have led the charge around EV adoption, as incentives like low tax rates for low-emission vehicles have been introduced to benefit businesses. The pandemic has also impacted attitudes towards global pollution and, therefore, emissions awareness. The lifestyle changes associated with lockdown have caused many people to pay more attention to the environmental impact of their habits, including driving and its link to carbon emissions. Not only that, but the rollout of Clean Air Zones across the country and the government’s 2030 ban on the sale of new traditionally-fuelled vehicles have propelled manufacturers forward in developing accessible EVs for all. Then there’s the government incentives such as the Plug-in Car Grant and Homecharge scheme, which have also had a positive impact on EV uptake.

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“Businesses are not only making the shift – they’re the driving force behind new EV registrations in the UK. EVs now make up a significant portion of our corporate vehicle orderbooks, and this will only increase as we get closer to 2030.”

BUT DO THE STATISTICS BACK THIS UP? Jordan Brompton, Co-Founder and CMO of myenergi comments: “Over the past few years, the adoption of EVs has increased exponentially. Indeed, in May 2021, there were 260,000 pure-electric cars registered for use on UK roads. This number increases to more than 535,000 if we include plug-in hybrids. According to data released by SMMT, UK EV registrations increased by 185% in 2020, despite the impact of COVID-19 on new car sales.

“With less than ten years to go until the government’s enforced ban on the sale of all new petrol and diesel cars, the EV marketplace is developing at a rapid speed. While previously, only a handful of manufacturers offered an alternatively fuelled option, there are now more than 130 fully or part electric vehicles available to buy or lease in the UK. Thanks to continued investment in new technology and new capability, owning an EV has never been easier.”

Jordan Brompton Co-Founder & CMO Myenergi

The primary advantage for businesses making the switch is Benefit-in-Kind (BIK) rates. A company vehicle is a taxable perk, and as a result, there are pay brackets associated, in part, with the level of C02 emissions emitted by the vehicle.

Therefore, some petrol and diesel cars have a BIK tax rate of more than 40%.

For EVs, the BIK rate is 1% during the 2021/22 financial year – rising to 2% in 2022-25. This has been a primary accelerator in businesses switching to EV. Cont. 

BIK AND BENEFITS FOR BUSINESSES With an increasing amount of EV drivers and business fleets, as well as strong government backing, there are clearly many positives associated with the switch to electric.

August/September 2021

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With the zero-emissions deadline on the horizon, you need to know that you’re making the right choices when it comes to efficiency, costs, and customer satisfaction. MBRG are here to help advise and guide your business to meet its goals.

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Exemptions Mercedes-EQ vehicles are also exempt from low emission zone charges, such as the ULEZ zone in Central London.

Cost Savings As a business or company car driver, you can benefit from lower BiK tax rates. For example, the EQA with a P11d of £44,440 would result in a BiK of £444, equating to a payment at the 40% tax rate of £178 per year. Business Drivers can also enjoy a National Insurance saving of £61.27 (Annual Class 1A NIC). Mercedes-EQ owners can even enjoy the added benefit of capital allowances on their vehicles and lease rental restriction.

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Ease and Convenience In addition to regulatory cost savings, there is also convenience when charging a Mercedes-EQ vehicle.

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*Calculation made by multiplying usable size (80 kwh) by the cost of energy updated annually by VCA (12.5p/kwh at April 2020). Figure correct at time of publication.25 Business Leader - Inspirethe•EQC’s Inform • battery Connect

FEATURE EV

Louis Rix, Co-CEO of CarFinance 247 explains: “The government’s Workplace Charging Scheme grant also allows businesses to reduce the cost of vehicle charging points by up to £14,000 (if installing the maximum 40 charging stations), creating extra incentive for businesses to convert to EVs, rather than continuing to use petrol or diesel vehicles.

“The further introduction of EV charging stations in public spaces and at workplaces is likely to increase consumer investment in electric vehicles, with over 42,000 charging points in the UK already.

“The government has offered its own benefits for purchasing an EV, so workplaces must now support and make use of the incentives already on offer, as well as providing their own schemes to employees that reward purchase and use of an EV.” CURRENT CHALLENGES As it is with many developments within the Industrial Revolution 4.0, the rate of change is accelerating at incredible speed.

As a result, there are several issues to overcome.

Ken McMeikan, Chief Executive of Moto Hospitality, comments: “The UK government has supported the transition by reducing company car tax for EV vehicles to 1% this year and to 2% in 2022 through to 2025. As company cars equate to over 50% of all new cars being purchased, we expect EV car growth to continue at pace. You can make considerable savings by choosing a low or zero emissions plug-in vehicle over an equivalent petrol or diesel vehicle.

"Government incentives around BIK tax are also driving a huge uptick in demand across company car and salary sacrifice drivers too. This is all great news for mass adoption, as it will result in a large volume of well maintained, used vehicles hitting the market in the next few years.”

However, it isn’t just BIK that offers an incentive to switch to EV.

“Preferential BIK rates make pure battery and efficient plug-in hybrid electric vehicles more compelling than ever.”

Incentivising EV uptake in this way will directly affect businesses’ financial relationship with switching to electric driving, as well as assisting businesses in reaching their sustainability/ESG goals, by reducing their carbon footprints.

Jon Horsfield, Founder and CEO of Diode added: “The attractive savings is a key decision-making factor in the boardroom, with an electric vehicle costing significantly less to run than its fossil fuel counterpart.

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A common trend associated with the introduction of new technology is the lack of education around its application and costs. The same issues have plagued EV for the last few years, showing the need for greater education to new customers and businesses looking at making the switch.

Brompton comments: “Incredible progress, investment and R&D has seen seismic changes in the EV marketplace. I think it’s now a question of awareness and education. For example, many people still believe dated viewpoints, such as the range of an EV isn’t enough to cover their journey into the office, or that finding a public charge point is almost an impossible task. If we can help to overcome these misconceptions with fact, accuracy and honesty, the perceived barriers to EV adoption will soon come crashing down.”

This lack of education around the benefits and debunking the myths around EVs could lead to further issues and take attention away from where the real challenges are.

Louis Rix Co-CEO CarFinance 247

Cont. 

August/September 2021

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FEATURE EV Horsfield comments: “There are huge challenges for the current market, such as the myths around the cost of an electric vehicle, educating and changing drivers’ mindsets, and of course, the fragmented public charging network, with inconsistent user experiences and ropey reliability.

“But the greatest challenge of all? We estimate that the UK needs to install a staggering 4,300 charge points per day until 2030 to meet the upcoming infrastructure demand.

“Assessing EV suitability is hard and implementing the right charging infrastructure is even harder.”

As a result, this is where the long-term struggle for the industry comes from.

However, with the introduction of new smart tech devices, this can be remedied.

Martinez explains: “The UK grid is on a trajectory for success when it comes to the mass adoption of EVs. While a common concern is the effect of drivers charging their EVs after work in the early evening – when demand is already at its highest – peak demand has actually been on a steady decline in the past 20 years. Plus, implementing smart technology will play a huge part in keeping the pressure off the grid.

“Smart charging will guide drivers to charge their EVs at non-peak times, as well as automatically pausing the charge to stabilise demand. Installing this technology – which is available to all households in England, Scotland and Wales through government incentives until 2025 – will ensure that the existing infrastructure can sustainably provide power to the UK as EV uptake increases.”

"PLUG-IN VEHICLES MAY NOT BE THE ANSWER FOR ALL SITUATIONS AND HYDROGEN CELL POWERED VEHICLES MAY COMPLEMENT THE ROLL OUT OF PLUG-IN EV." Andrew Aldridge

However, one challenge that is yet to see a potential resolution, is the shortage of semiconductor chips that has impacted manufacturers across the world. However, again, innovation could be the answer.

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Andrew Aldridge Partner Deepbridge Capital

Brompton said: “Currently, the global EV market is facing a global shortage of semiconductor microchips. Tesla CEO Elon Musk described Q1 2021 as having ‘some of the most difficult supply challenges we’ve ever experienced’.

Andrew Aldridge, Partner at Deepbridge Capital explains: “Plug-in vehicles may not be the answer for all situations and hydrogen cell powered vehicles may complement the roll out of plug-in EV. It may well be that hydrogen is the fuel source of choice for long distance vehicles and the trucking industry, whereas plug-in EV may be the solution of choice in urban areas where range and accessibility to infrastructure are less of an issue. The next few years will see how this plays out but there is already investment in the hydrogen sector, with plans for the UK's first low carbon hydrogen hub in Cheshire announced earlier this year.”

Oliver Shaw CEO Kalibrate

“However, shortages are temporary, and innovation is rife. Most companies are finding ways around this issue. At myenergi, we recently redesigned our entire product range to align our systems with a different, less in-demand chip solution. As such, I can’t see this setback proving a long-term interruption.”

WHAT DOES THE FUTURE HOLD? Following government support, businesses making the switch, and technology across the industry improving all the time, the future of the EV sector looks bright. But what can we expect to see ahead of the 2030 deadline?

Hall said: “The next step is to ensure that the electricity drivers use to charge their EVs is 100% renewable and that businesses are optimising their energy usage. Switching to EVs is the first step, but if businesses are powering their fleet with fossil fuels or wasting any energy through inefficient operations, they’re undoing most of the good work.”

Also, new technology will play a key role in the evolving world of EV. He continues: “Vehicle-to-Grid technology will also play an important role in balancing the grid. EVs are effectively mobile batteries that can be charged and discharged. So, by enabling bidirectional charging, businesses could use their EV fleets to send electricity back to the grid at times of peak demand.”

While the focus from the industry is to ‘go electric’ – could there be a better alternative?

With less than nine years to go, there are many developments yet to come to fruition, and with technology improving all the time, it is hard to predict where the next big innovation within EV will come from.

However, adoption of EV will only increase.

Oliver Shaw, CEO at Kalibrate concludes: “The shift towards EVs is unsurprising given the growing need for car manufacturers to be environmentally conscious and contribute to lower emissions.

“From a legislative perspective, the government pledging to make the UK a netzero carbon country and ending the sale of petrol and diesel cars by 2030 is a positive step. This change is also being mirrored by businesses, with Tesla leading the EV charge through the announcement of its new sub-£18,000 product, Audi launching its cheapest EV yet, and Ford planning for all cars across Europe to be electric by 2030.

“What’s more, the consumer appetite for EVs is growing, with widespread adoption becoming a genuine reality in the decade to come.” 

August/September 2021

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FEATURE

Is the UK really about to lose six million jobs?

According to a recent report by the Tony Blair Institute more than 5.9 million jobs – equivalent to 18% of the UK's workforce – could be lost offshore after the pandemic if remote working continues. Business Leader investigates whether this could be a possibility and get the views of leaders on changing working patterns. ones, are likely to persist with it even after the pandemic to reduce overheads, boost productivity and recruit talent from a wider geography. As a result, they may opt to employ only the core staff required for in-person collaboration and decisionmaking while outsourcing and offshoring those who are not."

together the data from various sources and finds that roughly one in five jobs in the UK, or six million jobs, can now be classified as ‘Anywhere Jobs’, with characteristics that mean they can be done remotely or principally remotely as efficiently or more efficiently than in normal office working.

The former Prime Minister Tony Blair recently produced a report around the subject via his Institute. It made for sobering reading.

Almost six million 'white-collar' jobs will now supposedly be at risk of being lost to companies abroad if the work from home (WFH) trend continues, according to the research. The report also says that the 'mass experiment' of remote working is now also threatening some of the most highly skilled workers in the UK.

A statement within the report said: "Having put in place the digital infrastructure to make remote working possible, businesses, especially larger

BUT WILL THIS ACTUALLY HAPPEN IF WE CONTINUE TO WORK FROM HOME? According to Tony Blair this is very much a reality. He says: "This report pieces

"It is also clear that for many employees, the experience of working from home has been beneficial and is likely to remain their preference, at least for certain days of the week. This is a vast and profound change in the world of work, with many implications for the jobs themselves and secondary effects on businesses that serve the conventional office.

You could easily argue that there hasn’t been a debate as polarising as the one about where we should work. Should it be in the office? Should we work from home?

Or should it be a hybrid model? And what about those who can’t work from home?

Proponents of office working have said that one of the downsides to remote working, is that if employees are not in the office, then why shouldn’t leaders consider recruiting outside of the UK for some roles, where labour is often cheaper too.

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"On the one hand, there is a risk that employers decide that ‘Anywhere Jobs’ can be done as easily by those working

August/September 2021

REMOTE WORKING

abroad; on the other hand, if Britain takes the necessary measures of preparation to facilitate such working here, we could attract jobs from abroad.

"The point is: this is a change that requires government to develop a strategy. It is part of the way working lives are going to change through new technology."

Chris Atkinson Strategic Leadership UK Dr Kathy Hartley Salford Business School

WHAT DOES THE FUTURE HOLD? To find out what those running businesses think about these claims and whether remote working could see jobs under threat, Business Leader spoke to Chris Atkinson, who is Managing Director of Strategic Leadership UK. He said: "There is clearly a huge change in both the job market and the way companies recruit. However, I don’t believe we need to be threatened by this change.

One thing that I’ve seen for sure is people relocating without concern for their job security and companies recruiting without concerns for geography.

Mike Beesley The HR World

"I don’t believe this is the same as outsourcing, if anything I would say the opportunities in the job market have widened considerably. Recently, I’ve worked with an HR Director who relocated to the South of France and a Learning & Development Manager moved from the Midlands to the North of England – neither person felt the need for a daily commute to the office.

"UK workers need to realise they are now able to access a global marketplace without relocating. This change should be seen as a massive opportunity.”

Dr Kathy Hartley, Lecturer in People Management, Salford Business School, believes that the pandemic has just accelerated change that is already happening.

Olly Richards Iwillteachyoulanguage.com

She says: "In recent years we've witnessed a variety of predictions about the potential for automation and outsourcing to result in job losses, some apocalyptic, some more measured, at both a national and international level. For sure, the nature of work, in terms of what it consists of, where it is done, is changing, and the pandemic appears to have focused both organisations and employees' mindsets on this more quickly than might otherwise have been the case. Right now, a lot of organisations are in discussion with

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their workforce about what can be done remotely, and where at least some face-toface time for collaboration is needed. Over the next 18 months I think we will start to see any new patterns of work emerging, and I think there will be a real mix."

Kathy continues: "More routine tasks and jobs, for instance in manufacturing and production, have been lost to outsourcing and automation for some time. Digitisation and AI is, and will, impact how work is done in a range of roles - drivers, waitressing staff, accountancy, medicine, HR, and so on. Certain aspects of many roles will be feasible remotely, and this will provide opportunities for some workers.

New roles, associated with the shift to and implementation of AI and digitisation, are also emerging.

"However, just because work can be automated or done remotely doesn't mean it will be. Organisations at the forefront of technological advancements are the ones we also now see looking at how they can successfully integrate people and technology, due to the distinct skills and contribution each can make."

"UK WORKERS NEED TO REALISE THEY ARE NOW ABLE TO ACCESS A GLOBAL MARKETPLACE WITHOUT RELOCATING. THIS CHANGE SHOULD BE SEEN AS A MASSIVE OPPORTUNITY.” Chris Atkinson

REMOTE WORKING Outside of the concern about remote working leading to job losses, some leaders are also worried about the impact it can have on employees and their development.

He was much derided for saying so, but Chancellor Rishi Sunak recently claimed he didn’t feel his career would have progressed as it had, had he not been working in an office.

Cont. 

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FEATURE

"REMOTE WORKING CAN SHATTER THE PEACE AND RESPITE FROM THE STRESSES OF WORK AND THROW YOUR LIFE OFF-BALANCE, UNLESS YOU CAN RAPIDLY DEVELOP THE SKILLS TO MANAGE IT." Olly Richards Abi Liddle Modo25

Mike Beesley, who is Managing Director of The HR World, has concerns too: "There’s no question that flexible working models are here to stay and there are huge benefits to having this built in ongoing. However, to my mind there are potential risks, and these are most significant at the more junior and senior levels.

"If you’re a less experienced member of the team you are missing out on all the added benefits of being around people who really know their stuff and learning by osmosis.

"While at the more senior end there is a lack of connection with the business. In fast-growth businesses, having a ‘realworld’ view of your workforce is incredibly important.

"For these and a host of other reasons, my prediction is that by the end of next year the hybrid model will be balanced toward people being back in the room more often than not."

Olly Richards, Founder and CEO, of Iwillteachyoualanguage.com, goes even harder on remote working – saying it could even damage your self-respect.

He said: “Remote working can shatter the peace and respite from the stresses of work and throw your life off-balance, unless you can rapidly develop the skills to manage it. The lack of physical boundary at the office can lead you to work all hours.

Constant connectivity can make stress twice as hard to manage, as you can reply to emails at all hours. Everything you do to make your home a sanctuary – be it your favourite snacks or a fancy TV – can become an unbearable temptation all day long, stretching your discipline to the limits. Your social life can disappear as you no longer find yourself naturally out of the house.

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Rob Vivian Pure Comms

"Even your self-respect can diminish as you no longer need to get properly dressed in the morning. All this can be managed, and turned into a positive, but it’s not until you find yourself in that situation that you learn whether or not you have the skills to make 'Work From Home' a lifestyle you can learn to live with.”

DON'T FORGET ABOUT YOUR WORKFORCE Tony Blair’s research is important, and many argue that what he is reporting is more nuanced than simply saying if you have remote work, we’ll lose millions of jobs. Many businesses and employees have benefitted from remote working, with productivity and wellbeing often boosted.

Certainly, the goldilocks approach of hybrid working seems to be the most likely solution.

"THERE’S NO QUESTION THAT FLEXIBLE WORKING MODELS ARE HERE TO STAY AND THERE ARE HUGE BENEFITS TO HAVING THIS BUILT IN ONGOING. HOWEVER, TO MY MIND THERE ARE POTENTIAL RISKS, AND THESE ARE MOST SIGNIFICANT AT THE MORE JUNIOR AND SENIOR LEVELS." Miker Beesley

Abi Liddle, Chief Operations Officer of Modo25, believes that having a flexible approach should lead to better results.

She comments: “The biggest challenges of remote working include being hard to replicate face-to-face interactions because you can’t properly read reactions; training can be harder if people aren’t confident to ask questions in front of a gallery of faces; we miss the less confident, more inexperienced team members quietly throwing their ideas into the conversation; and it’s tough on your confidence to present when everyone else has either turned their cameras off or they look like they’re more interested in something else.

"Plus, not everyone has the luxury of a spare room – so they may be living and working in the same space and that lack of work/life separation isn’t conducive to producing the best work and, at worse, is bad for both mental/physical wellbeing.

“These challenges are surmountable, but many of our team will want to come into the office at least once a week because of the interaction with other people being much easier – and therefore more productive and more enjoyable.”

To conclude, there is a wide range of views from both the worker and business owner on the best way to proceed, as we move out of the COVID-19 pandemic. And this is the point that Rob Vivian, Managing Director of Pure Comms, stresses: “You can only view what is going on inside your own business – but for me people are not as productive.

"We had several members of staff who felt disconnected and not engaged with the team. People being disenfranchised from the business during this time were just not able to interact in the normal way and other team members had to take up the slack.” 

August/September 2021

REMOTE WORKING

WHERE IN THE UK WILL BE WORST AFFECTED BY REMOTE WORKING TREND? Two out of five people living and working in Inner London could do their jobs elsewhere, as workers adapt to new ways of working prompted by the Covid-19 pandemic.

Analysis of official Government data by Advanced Workplace Associates (AWA), the global management consultancy, indicates that as many as 835,000 roles could be relocated away from the 14 boroughs that make up Inner London.

AWA has worked with numerous organisations – from charities to global tech giants – to help them adapt to the changes in the approach to the workplace for both employees and employers, prompted by the adaption to COVID-19 restrictions.

Based on this work, AWA has analysed which jobs need to be based in Inner London – with the work associated with roles in healthcare, education, and skilled trades unlikely to be relocated, while customer service, administration, managerial and a significant amount of civil service work could be moved outside Inner London.

AWA has assigned a likelihood that work can be relocated to data from the Office of National Statistics NOMIS dataset of all jobs in each location in the UK. On this basis it is estimated that 835,000 roles could move out of Inner London, some 41% of the current workforce.

“The COVID-19 pandemic has shown organisations and their employees what can be done in different ways and places than they’ve traditionally been configured, and raises all sorts of questions about how we organise work in the future,” said Andrew Mawson, Founder of AWA.

“Employers will wonder whether they need as much expensive Inner London office space, and workers will question whether they need to spend time and money commuting if they don’t need to.

“This raises important questions for business and policymakers about their location strategies, property needs, and transport planning. It may prompt a rethink of the role of central London in the longer term.”

Global remote working could hit the UK tax take hard The Government’s tax could be seriously diminished as workers fail to return to the UK after the pandemic, say tax and advisory firm Blick Rothenberg.

The pandemic have seen thousands of UK-based workers leave the UK for periods during the various lockdowns. They continue to work overseas which means that many of these UK workers will now become liable to tax and social security payments in the overseas countries where they live.

It means that HMRC will have to refund the UK taxes and potentially National Insurance charges which have been paid because the individuals involved are, becoming non-resident in the UK and their core tax and social security rights are held to be in the other location.

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Alternatively, HMRC may need to provide tax credit relief in the UK for the taxes which have been legitimately paid in the overseas jurisdiction, where UK-based employees are now living.

The issue will produce a significant fall in personal tax and NIC receipts for the 2021/22 and 2022/23 UK tax years for the Government.

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APPOINTMENTS

People & Appointments Business Leader gives a rundown of recent appointments and promotions across various sectors

DURHAMLANE APPOINTS NEW FEMALE CEO durhamlane has announced Katy Sayburn as its new CEO, as the revenue acceleration specialists, based in Wallsend, prepare for a period of growth. The North East firm has built a highprofile portfolio of clients over the past 10 years, including Sage, Deloitte, PwC, Sodexo and Konica Minolta.

DEVERE E-MONEY APPOINTS NEW CEO deVere Group, one of the world’s largest independent financial advisory and fintech organisations, has appointed a new CEO to lead its growing electronic money brand. Dimitris Litsikakis will take over with immediate effect as Chief Executive Officer of deVere E-Money from Nigel Green, the founder and CEO of the deVere Group of companies.

AMAZON FOUNDER JEFF BEZOS STEP DOWN AS CEO Amazon’s Founder and CEO has transitioned to the role of Executive Chair with Andy Jassy taking over the role of Chief Executive Officer.

Bezos originally founded the firm in his garage nearly 30 years ago, originally as an online bookstore, and has been the driving force behind the company’s incredible growth – which saw him become the world’s richest man. He is replaced

by Jassy, the current Chief Executive of Amazon’s hugely profitable cloud computing division.

NEW MANAGING DIRECTOR FOR FORRESTBROWN ForrestBrown, an R&D tax relief consultancy, has announced a trio of changes to its senior management team. Sara Brigden becomes ForrestBrown’s new Managing Director. Sara takes over the role from the company’s Founder Simon Brown, who is now Chairman of the business. Simon will be joined by Lisa-Marie Smith as ForrestBrown’s new Vice-Chairman.

JOHN CLARKE APPOINTED AS UK SHARED BUSINESS SERVICES BOARD CHAIR Business Secretary Kwasi Kwarteng has appointed John Clarke as UK Shared Business Services Ltd (UK SBS) Board Chair, following an open competition conducted in line with the Governance Framework on Public Appointments.

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SOHAIB ABBASI JOINS FORECAST AS CHAIRMAN Forecast, the AI-native platform for project and resource management, have announced the appointment of Sohaib Abbasi as Chairman. This appointment follows the recent Series A funding round, capping a year of unprecedented revenue growth exceeding 300%. Abbasi has an illustrious career in the software industry, helping iconic businesses grow from disruptors to industry leaders.

GEORGE MEDICINES APPOINTS DR CHARMAINE GITTLESON AS NON-EXECUTIVE DIRECTOR George Medicines, a late-stage drug development company focused on providing innovative and accessible medicines for the world’s leading causes of death, has announced the appointment of Dr Charmaine Gittleson to the Board as Independent Non-Executive Director.

PAY.UK ANNOUNCES DAVID PITT AS NEW CHIEF EXECUTIVE OFFICER Pay.UK, the operator and standards body for the UK’s retail interbank payment systems, has named David Pitt as its new Chief Executive Officer. Pitt takes over from interim CEO Matthew Hunt, who has been appointed to the newly created role of Chief Strategy Officer, Deputy CEO.

August/September 2021

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35

CEO IN FOCUS

CEO IN FOCUS:

NATASHA GUERRA

Natasha Guerra is the CEO of Runway East, a Bristol and London-based collection of collaborative workspaces for companies within the SME market who are looking to scale. She spoke to Business Leader about the growth of the company, the impact of the pandemic, and its UK expansion plans.

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CAN YOU GIVE US AN OVERVIEW TO YOUR BACKGROUND AND YOUR CAREER? I have been running Runway East for the past seven years – since 2014. However, I briefly started an admin services business following my gradutation from Bristol University with a physics degree.

Following university, I went to business school, and it was here that they encouraged me to become an events manager and set up my own business. I thought it was going to be really easy to run a business – and then actually, as it

turns out, it's really hard. I wasn't charging enough money for the products, which I think is a mistake lots of people make early on in their journey.

After that, I ran a London-based network for entrepreneurs for ten years called ICE. It's a not-for-profit network of about 350 tech entrepreneurs and founders. We used to organise trips and events to build relationships and introduce investors.

And then with Runway East, it is a similar idea but with some office space – it was about bringing entrepreneurs together.

August/September 2021

NATASHA GUERRA

CAN YOU TALK ABOUT RUNWAY EAST AND ITS GROWTH? There are five current Runways – two in Bristol and three in London. We have another two opening in the next six months in London. We are also looking to expand within our current spaces. We've got about 120,000 sq ft now, but we're going to be opening another 50-70,000 sq ft this year.

"A NEW TREND I AM SEEING IS THAT THESE NEW BUSINESSES ARE SLIGHTLY MORE ESTABLISHED THAN BEFORE THE PANDEMIC AND THEY MIGHT NOT HAVE LOOKED AT SERVICED OFFICE SPACE BEFORE, BUT HAVE NOW SUDDENLY FOUND THEMSELVES TIED INTO FIVE-YEAR LEASES WHERE THEY NO LONGER WANT ALL THAT SPACE." HOW MUCH OF A CHALLENGE HAS THE PANDEMIC PRESENTED RUNWAY EAST? Being shut for a year was not ideal. The big challenge was never knowing when it would end and not being able to make any forecasts, and all our businesses involved in Runway East were obviously in the same position as us.

WHERE DID YOUR ENTREPRENEURIAL SPIRIT CAME FROM? When I was growing up, my dream job varied from radio DJ to travelling and living in Africa. Every week it was something different. However, both my parents work for themselves in the property sector.

Prior to that, my dad was a mechanic, and he ran his own garage.

Both of my parents have always been selfemployed – so I think it was a combination of seeing that growing up and my own drive and determination.

When the pandemic first started, people were hailing the death of the office – and that was a massive worry. We worked hard to think about what new types of products people would be looking at after the pandemic, and how people will be evolving their offices to be part-time or hybrid.

As a result, we have launched a variety of new products to make sure that we are adjusting to people's new normal.

HOW HAS UPTAKE BEEN IMPACTED?

We have seen primary office uptake increase. We have sold a lot of timeshares in London when people take offices two or three days of the week – that has been very popular. I do not know if that is here to stay and I do not think that there will be as big a shift going on as we necessarily expected, at the start of the pandemic, in terms of what people want from their office.

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I think lots of things are becoming much more important, like wellbeing and sustainability and how working life is not just the office and a desk, but a shared space.

We saw a huge rebound in demand last quarter (Q2 2021) and was one of our most successful periods for sales in our history.

Clearly there is demand for flexible products like ours, but only time will tell how that will play out.

DO YOU BELIEVE THERE WILL BE NO ‘DEATH OF THE OFFICE’ THEN AND WORKING LIFE WILL RETURN TO WHAT IT WAS PRE-PANDEMIC? We are not far off a full return to what it was pre-pandemic. When the pandemic first happened, we had a lot of people say they are not going to use our office for the next three months, so there's not much point keeping it. By and large, a lot of them have now returned and most of our offices are now back to being pretty full. For us, we're seeing more demand than ever, and our pool of potential customers has massively increased.

A new trend I am seeing is that these new businesses are slightly more established than before the pandemic and they might not have looked at serviced office space before, but have now suddenly found themselves tied into five-year leases where they no longer want all that space. They are waking up to the benefits of not having to sort out their own internet or deal with other issues of owning your own space.

HAVE YOU GOT THE PLANS FOR THE NEW LOCATIONS OUTSIDE OF BRISTOL OR LONDON? Ideally, we'd love to be in the ‘big six’ cities eventually – and we are actively looking.

We work slightly differently to others in our industry as we don't lease space, we partner with landlords directly. We look to make landlords a premium return compared to what would be the traditional rental yield.

They are looking to make a 30% premium on their rent. We achieve this by cutting up the space and then rent them out to multiple companies on a smaller basis.

Cont. 

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CEO IN FOCUS Our model involves us partnering directly with the landlords, so it's harder for us to find space. What we do involves building relationships with landlords and finding the right partners.

WHAT DOES YOUR DAY-TO-DAY ROLE LOOK LIKE? At the moment, my main concentration is on expansion; looking for great sites, design, and of course the logistics of launching a new building, as well as how to grow awareness our business. I'm also focussed on baking in sustainability to our work as we know it's increasingly important to our members.

And obviously, now that we're coming out of COVID, the issues that we're primarily

NATASHA GUERRA thinking about are how sustainable a building is, for example. I think the whole property industry is focusing on recycling, green energy, and sustainability. As we move forward, that's a big focus for us and how we evolve.

WHAT WOULD YOU SAY ARE YOUR TYPICAL COMPANIES THAT USE YOUR SPACE? We primarily focus on businesses that are classed as SMEs. Our average customer has about 16 employees and they've typically raised around £1m in venture funding. We consider ourselves more of a growing space. A lot of our companies have been to an accelerator or incubator, and they are now looking for their first full time

office space – and that is where we come in. We are also seeing an increased amount of larger companies utilising our facilities for dedicated desks or smaller offices.

HAS THE GROWTH OF RUNWAY EAST BEEN ORGANIC, OR HAVE YOU HAD TO RAISE FUNDS? We are an employee-owned business, and we didn't have any external fund raises.

So, the opposite of WeWork and we are not backed by billionaires. We are here to build a sustainable business for the long-term that we can be proud of. I want to help all these businesses on their growth journey.

HOW WOULD YOU DESCRIBE YOURSELF AS A LEADER? It is a collaborative environment. I think both David Foreman, our COO and myself are open to receiving criticism, both positive or negative, about the way we run the space and about what our members think about our spaces. We are always looking for continual improvement. I am disciplined about improving our business environment for the people around us, but I think we have a fun place to work. Runway is a social, collaborative, enjoyable environment.

However, I have some negative qualities too.

I am not very detail-oriented, and I often try to rush through things, which can be annoying for everyone involved. And I can be a bit like a magpie – I love shiny new things and must be brought back down to remember the task at hand.

AS A FEMALE CEO – ARE YOU ENCOURAGED TO SEE MORE FEMALES IN HIGH-RANKING ROLES, OR DOES MORE NEED TO BE DONE? You know, for most of my time, as CEO, I haven't really noticed – I'm just doing the job. Sometimes it's great because you get invited to events because you're a female.

Often, I get invited to dinners where the other CEOs are much more senior, but they needed to get a few women in the room.

But there are also situations where it is not a positive experience.

I remember when we first went on a tour of a space to meet a landlord, and they thought I was the receptionist. So, there is definitely unconscious bias in certain scenarios. I think the world is making so much positive progress, and there are so many different opportunities available now that were not there before. 

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August/September 2021

Top 32 commercial property leaders

SPONSORED BY:

For our latest Top 32 list, Business Leader has profiled the UK’s leading commercial property firms and their leaders.

HOW HAVE THE TOP 32 BEEN CHOSEN? These individuals and their companies have been selected for this list by our readers and subscribers. However, if you feel there is anyone else that deserves to be included, they can be added to the digital list which will be published on www.businessleader.co.uk.

To submit an entry, please email editor@businessleader.co.uk with the subject line of ‘Top 32 Commercial Property Leaders submission’.

This list is in no particular order.

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TOP 32

Sponsoring the Top 32 Commercial Property Leaders

www. interaction. uk.com

Rachel Bell National Chair Women in Property (WIP)

RACHEL BELL WOMEN IN PROPERTY (WIP) Spread across 13 different regions in the UK, WIP creates opportunities, expands knowledge, and inspires change for women working in the property and construction industry. They actively seek an industry that is balanced, diverse and inclusive, so they nurture girls aspiring to a career in the built environment sector, as well as supporting those in ‘mid-career’ and at board level. They are a multi-disciplinary organisation, encouraging an exchange of ideas and sharing of expertise, often through its extensive schedule of best practice workshops, site visits, keynote talks and social events.

MARK RIDLEY SAVILLS With more than 25 years of experience at Savills, Ridley has risen through the ranks to become the firm’s Group CEO in January 2019. Savills is one of the world's leading property agents across commercial, residential, and rural real estate.

With 600 offices across the Americas, Europe, Asia Pacific, Africa and the Middle East, Ridley leads one of the company’s most important regions.

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Mark Ridley Savills

August/September 2021

COMMERCIAL PROPERTY LEADERS

Sponsoring the Top 32 Commercial Property Leaders

www. interaction. uk.com

ALISTAIR ELLIOTT KNIGHT FRANK As Chair of the Knight Frank Group Executive Board, Elliott drives and implements the group’s global strategy across a network of over 20,000 people in 488 offices across 57 territories. He splits his time across four key areas: meeting clients around the world; engaging with Knight Frank teams in all regions; recruiting and retaining the best people through providing the right training, development, and motivation; engaging with media platforms around the world to develop Knight Frank’s brand profile.

STEPHANIE HYDE JLL JLL appointed Senior Client Partner Hyde as new CEO of its UK and Ireland business, with effect from April. Hyde’s appointment signals a new transformational chapter at JLL in the UK, the company’s second largest market, at a time when real estate is growing in prominence. She will lead the UK business and continue to strengthen JLL’s position as the technology-focused and market-leading real estate advisor.

COLIN WILSON CUSHMAN & WAKEFIELD As Cushman & Wakefield’s Chief Executive Officer, EMEA, Wilson is responsible for strategic growth in the EMEA region. Prior to this role, Wilson was Head of UK & Ireland, and has served on the European Executive Committee since 2015. Across the region, Wilson leads more than 5,000 employees across 51 countries, who are based in over 140 offices.

KATE LAWLOR BRUNTWOOD SCITECH Lawlor is CEO of Bruntwood SciTech, a property company dedicated to the growth of the science and technology sector. A 50:50 joint venture between Bruntwood and Legal & General, Bruntwood SciTech has over 2.4m sq ft of assets under management and a development pipeline of over 1m sq ft. She joined Bruntwood in 2012 as Head of Tax & Treasury, and was focused on the refinance of the group's £600m debt portfolio. Lawlor was appointed as CEO in January 2021, and oversees all aspects of the strategy and growth of Bruntwood’s network of innovation districts.

JO DAVIS AVISON YOUNG As the Managing Director of the company, Young is responsible for leading the development of the national planning development and regeneration team within Avison Young UK. She has over 25 years’ experience managing multi-disciplinary projects and client instructions associated with negotiating complex major planning permissions and mixed-use regeneration schemes. Specialist sectors include residential, employment, mixed-use, conservation and listed buildings, education, regeneration, public sector bodies and energy.

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TOP 32

www. interaction. uk.com

Sponsoring the Top 32 Commercial Property Leaders

DAVID RUGG

MARK SHEEHAN

CHRISTIE & CO

DAVIS COFFER LYONS

Rugg was Managing Director of Christie & Co prior to the formation of Christie Group in 1985, when he was appointed Group Managing Director and later Chief Executive. He has chaired Christie & Co for over 30 years and is responsible for the day-to-day operation and development of the Group. He has been instrumental in identifying and integrating the Group's principal subsidiary business acquisitions, as well as initiating new sectors and services.

With extensive experience with both property investment and M&A transactions, Lyons has advised on deals worth excess of £3bn throughout his career. His experience spans across the alternative sectors, including pubs, restaurants, bars, health clubs, retail, hotels, and care homes. His experience in the property investment market has been largely focused on sale, leaseback, and leisure investment transactions. He has also advised on numerous portfolio transactions involving clients such as TDR Capital, David Lloyd Leisure and Caprice Group.

DR MARK ROBERTSON RYDEN Dr Robertson is Scotland’s leading authority of property markets and has completed well over 300 property consultancy deals within the public and private sector over his 25+ year career.

As the Managing Partner of Ryden, he leads the firm in delivery of its business plan, and has extensive experience within the industry. He is also the Editor of the Scottish Property Review.

MATTHEW HANNAH INNES ENGLAND With more than 27 years of experience at the company, in May 2019, Hannah became the MD of the Nottingham-based commercial property experts. As the largest firm of its kind in the East Midlands, Innes offers services in acquisitions, disposals, and lettings, land sales and commercial development, property asset management, investment services, business rates, lease consultancy and valuation, building consultancy, energy consultancy and Energy Performance Certificates (EPCs).

STEPHEN SALLOWAY SALLOWAY

CHRIS MCLERNON COLLIERS As CEO for EMEA, McLernon is responsible for the growth and strategic direction of the business in the region. Bringing a depth of experience in building and growing businesses in mature and emerging markets, he has played an integral role in growing Colliers International into its current position as a top three global commercial real-estate services provider.

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Salloway established the firm in his hometown of Derby in 1993, after 18 years in the East Midland's property sector. The business has since grown to three offices, following the opening of branches in Burton-on-Trent and Nottingham, and plays a significant role in the property industry across Derbyshire, Nottinghamshire, and Staffordshire. He has represented a number of public sector, corporate and private clients in a variety disciplines, including valuation, disposal and acquisition, investment, development and planning, expert witness, landlord and tenant, and strategic consultancy.

August/September 2021

COMMERCIAL PROPERTY LEADERS

Sponsoring the Top 32 Commercial Property Leaders

www. interaction. uk.com

CATHERINE SPITZER BIDWELLS The property consultancy firm is at the forefront of two of the most dynamic real estate markets in the UK – the OxfordCambridge ‘Arc’ and the emerging field of Natural Capital. Today, the 500-strong team manages £5.2bn in property assets for national and global investors. An inspiring leader and Arctic explorer, Spitzer has transformed Bidwells’ commercial focus and fostered a culture where people thrive.

Catherine Spitzer Bidwells Matthew Hannah Innes England

EZRA NAHOME LAMBERT SMITH HAMPTON LSH is one of the UK’s largest national commercial property businesses and Nahome has led the firm since 2000. With 28 offices in the UK and Ireland, and more than 1,200 staff, LSH help owners, investors and occupiers achieve their business goals with a suite of integrated services including sourcing, planning, funding, advising, managing, valuing, and selling properties, across both the public and private sectors.

BILL KING CHEFFINS Cheffins is a firm of surveyors, property advisers and auctioneers. Established in 1825, Cheffins operates from six offices across the Mid-Anglia region, including Cambridge, Saffron Walden, Newmarket, Ely, Haverhill, and Sutton – as well as also having an office in London. The firm has grown organically over the years to become a modern and dynamic multi-disciplinary practice, operating with expertise in estate agency and lettings, commercial property services, planning, farm management consultancy, and providing professional advice on rural business matters.

JOHN ARNOLD CIRCLE PROPERTY PLC Circle Property Plc is a specialist property investment company, registered in Jersey with its shares being quoted on AIM/London Stock Exchange. The company acquires regional office properties where it can add value by undertaking lease renewals, rent reviews, lettings, and refurbishments. They are now a prominent player within the market across the UK. John Arnold Circle Property PLC

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Cont. 

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TOP 32

Sponsoring the Top 32 Commercial Property Leaders

www. interaction. uk.com

NEIL HART BRADLEY HALL Group Managing Director Hart leads the Newcastle-based firm, who offer a wide range of services within the commercial property industry across the region. Bradley Hall provides property valuations and appraisals for secured lending, taxation, receivership, and litigation purposes. They also advise national and international banks on valuations for properties across the North East. With over 30 years’ experience, the company has created a strong reputation and has become a trusted partner for some of the UK’s largest businesses.

ANGUS WHITE NAYLORS GAVIN BLACK LLP White is the Managing Partner of the practice and also Head of the Property and Asset Management Team, which he has built from a standing start to over 80 buildings, in a portfolio that extends from Aberdeen in the North to Bognor Regis in the South. He also has extensive experience in providing a range of consultancy advice, from developers on PFI schemes to leading the professional team. The company’s clients include Aberdeen Standard Investments, Vertu Motors and Liebherr.

Neil Hart Bradley Hall

MARK SHIPMAN & DOMINIC ROWE MICHAEL ELLIOTT Since 1985, the firm has advised on over £60bn worth of property transactions in London and the UK. Their clients include high networth individuals, pension funds, and major international investors like Schroders, Columbia Threadneedle, Nuveen and Hermes. Many of them have been with the firm for decades. Shipman and Rowe are the firm’s two Founding Partners.

Shipman is also Senior Partner at sister company Metrus where he manager over £5bn worth of property across the world.

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August/September 2021

COMMERCIAL PROPERTY LEADERS

Sponsoring the Top 32 Commercial Property Leaders

www. interaction. uk.com

Hayley Blacker Interaction

JULIE WALLIN

HAYLEY BLACKER

CARVER COMMERCIAL

INTERACTION

With over 18 years of experience as Director of the company, Wallin helps lead the independent firm of chartered surveyors and commercial property consultants providing reputable, professional, and personal services to clients throughout the North East of England. Wallin specialises in giving advice on a broad range of commercial property matters, including agency sales and lettings, acquisitions, landlord and tenant, development sites for both residential and commercial, professional valuations undertaken for various purposes, including for secured lending, pension funds, inheritance tax and asset purposes.

Founded in 1992, Bath-based Interaction is one of the UK’s leading commercial research, design and build specialists.

Blacker has 25 years of experience at the firm and is the Director of the firm whose creative crew work on a range of commercial design and build projects, from bespoke office fitouts to multimillion-pound building refurbishments. Not only has Interaction become a top company within the industry in the South West, but across the whole of the UK.

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Cont. 

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TOP 32

Sponsoring the Top 32 Commercial Property Leaders

Tom Bromwich & Richard Hardy Bromwich Hardy

www. interaction. uk.com

Melanie Leech British Property Federation

BARRY OWEN

ROBERT BEALE

MASON OWEN

VICKERY HOLMAN

Mason Owen advises its clients to acquire and dispose of retail properties, whether leasehold or freehold, existing assets or new developments. They are active across the UK in all sectors, from the high street to shopping centres and retail parks. Owen is the Chairman of the North West-headquartered company, having founded the company back in 1967. The company has over £500m in capital value of managed property and more than 250 rent reviews settled in the last year.

As Director and Head of Office at the Bristol-based, company he provides expert leadership within the commercial property space in the region. Through various mergers and acquisitions, the roots of Vickery Holman can be traced back as far as 1848.

Today, the consultancy has more than 60 people working in four offices across the South West. Vickery Holman is a limited company, owned by its employees, and is a member of the RICS.

MELANIE LEECH BRITISH PROPERTY FEDERATION As Chief Executive, Leech leads the organisation that represents businesses owning, managing, and investing in UK real estate – an industry with a market value of £1,662bn. The British Property Federation is one of the country’s most influential and high-profile lobby groups. Representing the property industry – including commercial and residential property owners, investors, developers, and their advisers – the BPF works to influence legislation and raise the industry’s profile across all areas of business, politics, and the media.

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RICHARD HARDY & TOM BROMWICH BROMWICH HARDY Bromwich Hardy comprises of a dynamic and professional team of property consultants based in the West Midlands. The multi-disciplinary firm has more than 200 years’ experience in commercial property, and its extensive portfolio of skills and experience has helped build a successful company. Led by Founding Partners Hardy and Bromwich, they offer a full, bespoke service to developers, landlords and tenants looking to buy, sell or rent commercial property in the Midlands and beyond.

August/September 2021

COMMERCIAL PROPERTY LEADERS

Sponsoring the Top 32 Commercial Property Leaders

www. interaction. uk.com

BARONESS RUBY MCGREGOR-SMITH CBE Indian-born McGregor-Smith is a British business executive and politician, who is the former CEO of Mitie Group plc – a UK facilities management business. She left the firm after she was offered to become a Conservative life peer in 2015. She is still considered a highlyinfluential part of the commercial property industry and has received a plethora of awards for her work within the industry.

RICHARD BARKER BARKER PROUDLOVE Barker is the owner of the Leeds and Manchester-based firm, which is an award-winning specialist retail agency providing innovative advice on retail property to various clients. Barker Proudlove advises owners, occupiers, investors, and developers of high street in-town retail property. Other skills the firm provides includes specialists in leasing, acquisition, disposal, and strategic asset management advice to clients on their shopping centre and high street property holdings across the UK.

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TOP 32

COMMERCIAL PROPERTY LEADERS

www. interaction. uk.com

Sponsoring the Top 32 Commercial Property Leaders

SARAH TRAHAIR-WILLIAMS & PETER WALFORD CUBEX Cubex is a Bristol-based estate developer with a successful track record of developing and investing in property across the South West and South Wales since 2004. It develops and advises on schemes across the mixed-use, residential (build-to-rent, affordable housing and open market), commercial and industrial sectors, including its Finzels Reach scheme. Cubex’s philosophy is to deliver high-quality schemes with sustainability and placemaking at the heart of its decisions, to create desirable schemes which meet local demand, are sympathetic to their surroundings and provide balanced communities.

PETER JOHNSTON LEGAT OWEN

Sarah Trahair-Williams Cubex

Founded in 1986 with the aim of providing expert, professional and personal advice on commercial property, the company now has 35 staff based in Chester and Nantwich. Legat Owen advises corporate and private clients on all aspects of agency, investment, development, management, building surveys, rent reviews and lease renewals, rating and valuation. Johnston is the Managing Director of the firm and specialises in development and agency matters.

PATRICIA MOORE

Peter Walford Cubex

TURNER & TOWNSEND Moore joined Turner & Townsend in 1999 and was appointed to the Executive Board in 2018. As Managing Director in the UK, she leads a team of more than 2,000 experts – servicing clients across the real estate, infrastructure, and the natural resources markets. The firm itself has grown from a single quantity surveying partnership founded in the UK in 1946 to now becoming a world-leading professional services company, with 111 offices around the world.

RITA-ROSE GAGNé HAMMERSON Hammerson is an owner, manager, and developer of retail properties in Europe with a portfolio of high-quality flagship destinations and premium outlets, providing approximately 1.8 million square metres of space for brands across seven countries. The group’s property portfolio comprises 20 flagship destinations in the UK, France and Ireland and investments in nine premium outlets across Europe. Gagné took over as CEO in late 2020 to lead the company into the future.

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August/September 2021

OPINION

PHILIP J.A. CLARKE

‘This fake innovation makes everyone feel warm and fuzzy’ why the big business and start-up relationship is broken In his new book ‘Pioneers Wanted’, Innovation Consultant Philip J.A Clarke has laid out his blueprint for how leaders in the business world can think like pioneers.

In doing so, Clarke is challenging on how he currently sees the leadership and the corporate space.

He says that pandering to shareholders is stifling innovation.

Clarke says: “I attribute these evolutions to the unchallenged preference for comfort that has taken hold in our business culture. Leaders stuck in incremental innovation soothe themselves with the idea that the future is unpredictable and unknowable.

“Their internal culture emphasises stability over disruption, catering to the external pressures of shareholders or investors; meanwhile, the company internally promotes those individuals up the corporate ladder who are a ‘safe pair of hands’, thus reinforcing the riskaverse atmosphere. The resulting mindset ensures that these organisations receive change as disruption.

“The rush to create corporate innovation functions over the last decade has been remarkable. In an environment of low returns and high disruption, large institutions knew they must do something.

Corporate innovation functions are the natural entry point for the start-up community and give the incumbent visibility of emerging threats or partners.

“They are safe sandpits to develop flashy and futuristic fakeware. They showcase what the legacy organisation and a cool start-up could do together in a superficial digital experience, without ever plugging into the commercial reality of the legacy business."

Clarke continues: “This fake innovation makes everyone feel warm and fuzzy. The start-up feels like it has access to decisionmakers and a far larger customer base.

The incumbent feels young and dynamic – playful even. In fact, play is perhaps the best way to describe this generation of innovation that rarely matures to become relevant to anyone, especially the legacy business. It’s simply theatre.

“The illusion of safety in size and the mistaken belief that ‘strategy is dead’ encourages big businesses to leave proper innovation to the start-ups. The great irony, of course, is that the course of action that feels most comfortable to these businesses – staying within the herd and accessorising with fake innovation – is actually the most dangerous. By receiving change rather than leading it, they leave themselves entirely exposed.” 

Business Leader - Inspire • Inform • Connect

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ESS LEA IN

R DE

BU S

FAST-TRACK

FAST TRACK

In each edition of Business Leader Magazine, we profile a UK business experiencing exponential growth in a feature called Fast Track.

This time, we spoke to sport and wellness e-commerce brand, Bluefin Trading Ltd.

‘WE WERE THE FASTEST GROWING E-COMMERCE BUSINESS IN THE UK LAST YEAR’ his ‘chicken empire’, selling eggs from his father’s workplace. Then, from the age of 16 and through his time at university, he made his first steps into the world of e-commerce.

He comments: “I like to go to the gym and I used to play rugby; so I have always been around that type of environment. However, the real reason I got into this industry was to pay my way through university, through my interest in e-commerce. I was selling a wide range of items on online marketplaces – primarily on eBay. “Whilst my mates were working bar jobs on the side, I was buying catalogue returns on online auctions. I acquired some Argos returns fitness equipment. Following this, I hired a van, brought them back, set them up in my garage, and then sifted through to see what worked.

“One of the products that did really well was a vibration plate – a weight loss and toning piece of equipment. I bought 30 units and sold them all in a day.”

Founded in 2013 by Will Vaughan, Bluefin has been in the top 15 fastest growing firms in the UK for the past two years. Over its eight-year existence, the company has experienced double revenue growth yearon-year and has grown to have over 45 staff based across the world.

Following this initial step into the world of retail and global business, Vaughan was hooked: “I then found a manufacturer in China, for this specific product, and spent all my savings on them – about £40,000. I bought 600 units and sold them all in a couple of weeks. Everything just snowballed from there.

This year, total income is set to exceed £40m for the firm based in Hebden Bridge in West Yorkshire. Business Leader spoke to the Founder to explore Bluefin’s journey so far.

“After I graduated from university at 21, I set up Bluefin Trading. I carried out a lot of product research myself and reached out to a lot of manufacturers in China and started selling fitness equipment.”

ENTREPRENEURIAL SPIRIT Growing up in rural surroundings, Vaughan’s business journey began in school where, at the age of 10, he set up

RELENTLESS GROWTH In less than a decade, Bluefin has become an industry leader and one of the UK’s fastest growing firms.

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“Over the past eight years, we have grown to become a global e-commerce brand.

Our main marketplaces are within the EU, Australia, US – and here in the UK. We predominately sell through Amazon, which is around 50% of our business and the other 50% is through our website and other smaller channels. In that time, we have gone from zero to 45 staff, and from no turnover to this year, where we're on track to hit over £40m in revenue.

“We are fully self-backed, received no outside investment and have grown organically. Under the Bluefin Trading group, we have three main brands that drive our growth. Our success has partly been down to spreading risk across multiple brands.

“The one that drives the most revenue is Bluefin Fitness. That's a direct-to-consumer home gym fitness equipment brand selling rowing machines, treadmills, bikes, and a wide range of similar products. The other brand that's incredibly fast growing, which we set up about three years ago, is Bluefin Paddleboards – an inflatable paddle board brand. That brand has gone from nothing to the market leader in the EU within three years. The third brand is our latest venture, Bluefin Hoverboards”

August/September 2021

BLUEFIN

Vaughan set up the company HQ on the picturesque hills of West Yorkshire, on his own farmland, where half his staff are based. However, due to Bluefin’s international presence, there are also staff members based in China, Spain, across the North West and other freelancers around the world.

However, having such relentless growth creates challenges for companies in this scale-up space.

Will comments: “We grew very quickly and we reached a point where we had a very stretched team. To overcome this, I realised that we needed to optimise what we had already achieved and build the team internally. Rather than just driving forward, we built an incredibly strong foundation for future success. We did this to avoid crumbling from the inside, like some companies do when in the growth phase. I built a senior management team that could take some of the weight off my shoulders.

“What we've got now is a senior management team of six that deploy the Bluefin vision. They implement the strategy that I've created, which has allowed us to continue growing. I'm hoping

over the next four years we can create a £150m-revenue, global company.”

BUILDING INTERNATIONAL RELATIONSHIPS Due to the international nature of the business, Vaughan and his senior management team have had to develop relationships with manufacturers, suppliers, distributors, and customers across the world. Much like how the company overcame the troubles of fast growth, Bluefin adapted their supply chain and how they operate.

“At the very start, we utilised sourcing agents to build a relationship with the company. They go and negotiate with the supply chain for you. We did that for about three years and then realised we can cut out the middleman and build a team that will go directly to the suppliers.

“Fast forward three years, we've got three guys on the ground out there that have helped us grow. I’d advise anyone to find a good sourcing

Business Leader - Inspire • Inform • Connect

agent and then meet suppliers at trade shows and build relationships with them.

You can then utilise that relationship to benefit your own business. You can create good payment terms, and with us, that has allowed us to sell a stock before we have to pay the supplier. That's one of the reasons why we managed to grow so well – building those strong commercial relationships is vital.”

With the majority of the company’s revenue coming from overseas, Bluefin has had to build, expand and adapt to different international markets to maintain its consistent levels of growth.

Cont. 

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FAST-TRACK BLUEFIN

Vaughan explains how the company has repeated its process for growth in each country: “We didn't start selling internationally until about three or four years ago. The first launch we did in Germany and it was really simple. We used the same recipe that we did in the UK. We hired copywriters to translate our entire website listings to German.

We then did the same in France, Spain, the Netherlands and beyond. And then, you realise the US is the biggest market globally for e-commerce. So, we then got started over there.

"What we do is really simple. Our team are sat in the office, selling our product range online, and we let a third party manage the operations side – it's not rocket science. We just opened up for the US as a market and the biggest hurdle is supply chain operations. After the US, we are looking at Canada and Japan.”

Vaughan comments: “The price of everything went up for people in all industries – and then it became difficult to get stock of crucial items. As most of our EU business is in Germany and France, we have had to employ a new supply chain specialist, because now you cannot cost effectively send a product from UK to Germany or France. Prior to Brexit, we could.

order but pay quite a bit more in duty and shipping rates. However, we did that, but all the couriers were not geared up for the paperwork for the cross-border requirements.

“We're now in a place where we we've got the right amount of stocks in the correct locales, and we're ready to scale again.” 

“So, we've had to set up a new warehouse, a new partner in the Netherlands, and retain our current warehouse in the UK. It has been insanely difficult. We thought we had something implemented in place which meant we could fulfil cross border

BREXIT BLUES With the business trading internationally, Will says that Brexit has negatively affected many businesses at the same time within his sector.

FTSE 100 listed JD Sports Fashion PLC invest in Gym King Gym King, a fast-growing lifestyle performance brand, has secured a multimillion-pound investment from FTSE 100 listed JD Sports.

The investment will see JD take a minority stake in the business. This strategic partnership is designed to fast track growth and international expansion, specifically into the USA, Europe and Asia where JD already has a large footprint with over 2,500 stores, complemented by localised trading websites.

“This strategic partnership will help Gym King capitalise on the huge opportunity

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ahead of us, becoming a world renowned ‘Lifestyle Performance’ brand,” said Gym King Founder and CEO Jay Parker. “We have continued to see impressive growth over the last 12 months with a focus on our own online, direct to consumer offering alongside our premium wholesale distribution to selected retail partners. The clear synergies with JD Sports will create a strong platform for accelerated growth” Gym King was advised by PwC Corporate Finance and Freeths LLP. JD Group Plc was advised by Addleshaw Goddard LLP.

Jay Parker CEO & Founder Gym King

August/September 2021

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FEATURE

UK producing more unicorns than ever; but what does It all mean?

The pinnacle of achievement for many scale-up businesses is to reach ‘unicorn’ status. Business Leader have profiled the three UK companies that have hit the fabled $1bn (c.£760m) valuation this year, and then delved into the statistics surrounding what it really means to reach this level of exponential growth.

In total, there are currently 24 businesses that have reached unicorn status in the UK according to Beauhurst, with dozens more that have gone on to become household names.

But who are the three businesses that have joined the esteemed list this year and what are they planning next?

for growth at any cost. To build a profitable digital bank from scratch, you must first lay firm foundations, with a proper regulatory framework, a strong technology architecture and a clear product roadmap. And you must learn to control costs.

Anne Boden MBE, Founder and CEO of the digital bank spoke to Business Leader about becoming a unicorn company.

This takes time, effort, and resources. It may seem to slow down growth, but it puts you on a clear path to profitability and are better placed to adapt to changing market conditions.

WHAT DOES IT MEAN TO STARLING TO REACH UNICORN STATUS?

WHAT DOES IT TAKE TO EXPONENTIALLY GROW A BUSINESS IN YOUR SECTOR?

We achieved unicorn status with our latest, Series D, funding round. What was important about this round is that it diversified Starling’s investor base to bring in some of the world’s biggest financial heavyweights and institutional investors.

The speed in which you grow is not important. What is important is being relevant and exceeding customer expectations. At Starling we haven’t rushed anything, and we constantly check what we are doing to ensure it is the best it can possibly be.

Once this is all in place you can focus on brand awareness.

These new investors will bring a wealth of experience as we enter the next stage of growth, while the continued support of our existing backers represents a huge vote of confidence.

WHAT HAVE BEEN THE MAIN CHALLENGES YOU'VE FACED? We've aimed to achieve sustainable growth, rather than go

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WHAT ARE THE COMPANY’S FUTURE PLANS? We continue to have a strategic goal of taking the Starling brand into Europe; we're building out our lending and are already on record as saying that we are looking for acquisition targets in this space.

August/September 2021

2021 UK UNICORNS

Ray Chohan, Founder, West & VP New Ventures at PatSnap spoke to Business Leader about the achievement.

WHAT DOES IT MEAN TO REACH UNICORN STATUS? Becoming a unicorn is a special milestone for any company. Indeed, there are only 728 private companies worldwide that can boast unicorn status – being one of them is truly humbling.

Back in 2013, I remember going for dinner with the other PatSnap founders. We spoke about the dream of reaching a valuation of $1bn-plus, but it seemed completely out of reach.

However, thanks to a highly dedicated team, collaborative culture, impressive product, and huge market scope, just eight years later we’re proud to call ourselves a genuine information services unicorn, pioneering the future of connected innovation intelligence.

WHAT HAVE BEEN THE MAIN CHALLENGES TO ACHIEVING THIS GROWTH? While the total addressable market was bigger than we ever imagined, having the right product, and experiencing huge global demand wasn’t enough to achieve consistent growth. In any business, your people are your biggest asset – they’re the key to realising your goals.

Anne Boden MBE CEO Starling Bank

It’s all about people and cultivating an awesome culture – attracting, recruiting, and retaining top talent. Crucially, this talent base must have the right values to shape a strong culture and inspire the team to execute against corporate objectives. These elements have been the most difficult elements to get right.

Culture eats strategy every day of the week. Our culture is based around inclusion, integrity, innovation and providing the environment to take risks and express yourself. Our team really buys into this mentality, and this has been a significant factor in our continued growth.

WHAT DOES IT TAKE TO EXPONENTIALLY GROW A BUSINESS IN YOUR SECTOR? Our strategy is simple – build the best possible product, create an inspiring

class technology with sophisticated data sources to offer insurance products that save businesses time and money.

Founded in 2016, London-based Zego is a commercial motor insurance provider that powers opportunities for businesses, from entire fleets of vehicles to self-employed drivers and riders. It combines best-in-

Since its inception, Zego has believed that the problem with traditional insurance is that it holds businesses back. It’s too expensive and time consuming, and it no longer suits businesses who use vehicles to earn money. Zego’s products represent

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Ray Chohan Founder PatSnap

Sten Saar Co-Founder & CEO Zego

vision and foster a company-wide culture of ambition to expand into previously untapped blue ocean markets.

We were careful to hire the best people from the outset and give them the freedom to be entrepreneurial. This has seen us grow exponentially – expanding rapidly into sectors including life sciences and chemicals, as well as further developing the IP space.

WHAT ARE THE COMPANY’S FUTURE PLANS? We are hugely ambitious and have a clear focus on innovation. We want to continue developing new solutions, continue delighting our customers and continue building the best possible platform for our staff to thrive.

a solution to this problem for businesses based across the UK, Europe and beyond.

So far, Zego has raised over $200m in funding and was the first UK insurtech to be valued at over $1bn. This happened in March this year.

Cont. 

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FEATURE

The Tech Sector Perspective As part of Business Leader's analysis of the UK's latest unicorns, we have broken down what these fastgrowing companies mean for the tech sector, both in the UK and around the world. To do this, Business Leader received some expert analysis from Dealroom.co and the Digital Economy Council about the impact on the UK tech scene.

The UK tech industry has expanded 10fold in the last 10 years, enabling the creation of hundreds of fast-growing tech companies that are set to challenge Silicon Valley in the coming decade.

Since 2010, the UK has experienced a sustained increase in the venture capital flowing into the tech sector, which has resulted in a huge expansion in the number of start-ups that are scaling rapidly in sectors as diverse as fintech, food delivery, e-commerce and healthtech.

10 YEARS OF UNICORNS AND FUTURECORNS Over the course of 10 years, the total number of unicorns the UK has had has increased from eight in 2010 to 81 in 2020. Unicorns from 2010 including Betfair, Admiral Group and Ocado are now household names. Meanwhile the number of futurecorns – companies capable of growing into a unicorn – has accelerated from 10 to 126 in 2020. Over the same period, venture capital investment into the UK has increased from £1.2bn in 2010 to £11.3bn 10 years later.

These numbers demonstrate the extent to which the UK is catching up with the US and China in tech, with London now fourth behind the Bay Area, Beijing and New York, when it comes to the number of start-ups

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and unicorns created. No other European country has been able to grow at such a speed.

While France has invested millions of euros in its start-up ecosystem, in 2020 it had only 17 unicorns, up from zero in 2010. Germany had one unicorn 10 years ago and 31 in 2020 – including companies such as insurtech platform Wefox, neobank N26 and travel e-commerce platform Omio.

Digital secretary Oliver Dowden said: “UK tech has seen record levels of growth over the last decade, turning a nation of startups into one of scale-ups. Investors are interested in backing UK start-ups because of a combination of cutting edge research, skilled engineering and tech talent and operators who understand how to build a strong, sustainable business.”

GROWTH CONTINUES IN 2021 During 2021, the total number of unicorns and futurecorns has continued to grow.

The UK has now created 91. A further

132 companies are now regarded as ‘futurecorns’ – companies with a value of between $250m (c.£179m) and $1bn (c.£718m) – which are on a path to unicorn status.

Though the majority of the futurecorns are based in London (83), the remaining firms can be found all across the UK. Cambridgeshire and Oxfordshire have 10 and 11 respectively. The North West has five futurecorns and in Scotland there are currently four fast-growing futurecorns.

Wales has one futurecorn.

THE GLOBAL PERSPECTIVE Recent years have also witnessed an impressive increase in the number of unicorn companies across the world, with these financial giants emerging across different industries and countries.

However, 2021 might set a new record, as the number of these billion-dollar start-ups surged since the beginning of the year.

According to data presented by Trading Platforms, 168 companies joined the

August/September 2021

2021 UK UNICORNS unicorn club in the first five months of 2021 – 40% more than in the entire 2020.

TOTAL NUMBER OF UNICORNS CLOSE TO 700 When the term unicorn emerged back in 2013, there were no more than forty private companies with a market valuation of $1bn in the world. By the end of 2018, this figure surged to 279. The CBInsights data showed another 125 companies joined the unicorn club in 2019, with a total number rising to 404 that year.

This figure continued growing in 2020, despite the effects of the COVID-19 crisis.

In 2020, the number of unicorns worldwide rose to 524, a 120 increase in a year.

However, 2021 has witnessed the biggest increase of these financial giants, with another 168 companies joining the unicorn club between January and May. Statistics show the total number of unicorns hit close to 700 in May, while their cumulative valuation amounts to over $2.2tn.

Ant Financial, the Chinese fintech company, spun off from mobile and online payment platform Alipay, still grips the top of the highest-valued unicorn companies globally, with a valuation of $200bn. Another Chinese financial giant, ByteDance, follows with a $140bn value.

However, there have been some significant changes in the third place of the list. After raising $600m in funding in March, Stripe increased its valuation to $95bn, nearly triple its last reported valuation of $36bn from April 2020.

That way, the online payments technology provider pushed the highest-valued US unicorn, Elon Musk’s SpaceX, to fourth place.

US VS EUROPE VS CHINA The United States represents the leading unicorn market with around 300 companies valued at $1bn or more. That is more than China and Europe combined.

Almost 25% of them work in the technology and communications industry.

Finance and insurance and health and pharma markets ranked as the second and third most popular sectors for the US unicorns, with a 14% and 10% share, respectively.

China follows the United States with 133 billion-dollar start-ups as of May. Still, the country is home to some of the mostvalued unicorns globally. Statistics show the combined valuation of Ant Financial and ByteDance, as the two largest unicorns in China and globally, hit $345bn in May, almost 20% more than five largest unicorns in the United States.

With a total of 70 unicorns, Europe ranked as the third largest region for these financial giants. Most of them, or 25%, are active in the finance and insurance market. Transportation and logistics and technology and communications sectors follow, with a 13% share each. Also, the CBInsights data revealed that Klarna is the highest-valued unicorn in Europe.

The valuation of the Swedish financial technology company hit $31bn this year.

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Who will be the UK’s next unicorns?

As part of the data acquired by Dealroom.co and the Digital Economy Council, they have listed the top 15 most valuable futurecorns in the UK today. These are start-ups that are currently valued between $250m-$1bn.

Could one of these firms become the next unicorn in the UK? • Zopa – digital bank (London) • Moonbug – global kids entertainment company (London) • Atom Bank – neobank (Durham) • Wejo – global leader in connected car data (Manchester) • Vashi – ethically-sourced fine jewellery (London) • Gigaclear – rural broadband provider (Abingdon) • Bloom & Wild – direct to consumer letterbox flowers (London) • Truphone – global leader in digital connectivity software (London) • Zilch – buy now pay later fintech provider (London) • Tripledot Studios – mobile gaming company (London) • Gryphon Group Holdings – family insurtech firm (London) • Pollinate – fintech toolkit provider for small businesses (London) • Agriprotein – creates insect-based protein (Guildford) • Bulb – renewable energy provider (London) • Thought Machine – next-generation core banking platforms (London)

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DEBATE

Strode College sponsors of the live panel debate ‘Plugging the Skills Gap - Apprentices & Traineeships’ www.strode-college.ac.uk

Call: 01458 844508 Email: jobshop@strode-college.ac.uk

Apprenticeships and the skills crisis With an acute skills shortage in sectors such as logistics and hospitality, Business Leader wanted to find out more about how apprenticeships and T Level placements will help to alleviate this. The debate also looks at how businesses are utilising apprentices and the different they can make to a business.

To do this, Business Leader brought together a panel that included: David Byford Director of Employer Engagement Strode College

ARE WE SEEING MORE BUSINESSES INVESTING IN APPRENTICESHIPS AND T LEVEL PLACEMENTS?

Shaun Grist Group IT Manager Wellington Motor Group

Gillian Keegan MP: "One thing we know is we have big skills shortages in the country, and apprenticeships and traineeships are a way of solving those skill shortages.

Because of this, we are seeing them grow again, and we are seeing more and more companies are utilising the incentives that are available. But clearly until we fully unlock aspects of our economy – for example we’ve only just got hospitality fully open again – we’re not going to be able to reach our full potential.

Emma Cox Head of Field Sales Thatchers Cider Gillian Keegan MP Minister for Apprenticeships and Skills Ingrid Parker Operations Manager Harris & Harris Mell Turford Director and Chair GFM

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""The trajectory looks good though and we’re seeing interest from more businesses, when it comes to investing in apprentices."

HOW DO THESE INITIATIVES HELP BUSINESSES RECRUIT LOCALLY? Gillian Keegan MP: "It’s important that every business in the UK is building a talent pipeline because we’re seeing less talent coming from Europe and this may continue and be further impacted due to the pandemic.

"How can businesses build a talent pipeline? The first thing to do is talk to your local school and college and get involved with the careers hubs, so that the students are aware of your business and your industry.

"You can also invest in T Level Placements because these are about spotting talent at the very beginning and giving young people work experience opportunities.

Then there are apprenticeships of course."

August/September 2021

APPRENTICESHIPS & T LEVELS

Strode College sponsors of the live panel debate ‘Plugging the Skills Gap - Apprentices & Traineeships’ www.strode-college.ac.uk

Call: 01458 844508 Email: jobshop@strode-college.ac.uk

Gillian Keegan MP Minister for Apprenticeships and Skills

David Byford Director of Employer Engagement Strode College

engineering and businesses within this sector are looking for new skills too. To conclude, we are seeing more businesses and sectors engaging with us and what we can offer."

FOR BUSINESSES THAT MAY NOT KNOW, WHAT IS A T LEVEL PLACEMENT? Gillian Keegan MP: "They are the equivalent to A Levels, and it is something that was introduced last year. They are aimed at young people who want to take on a more technical route as opposed to an academic one at the age of 16."

ARE YOU SEEING MORE BUSINESSES COMING TO YOU AND WANTING TO TAKE APPRENTICES INVEST IN TRAINEESHIPS? David Byford: "There is a positive outlook towards apprenticeships and T Level Placements amongst our employers, despite the challenges they have been facing. Of course, certain sectors like hospitality are still recovering, but these initiatives can help to fill a skills gap. Brexit is having an impact too on sectors like

IF YOU’RE A BUSINESS THAT HAS NEVER TAKEN ON AN APPRENTICE OR INVESTED IN A TRAINEESHIP AND THEY HAVE A PERCEPTION IT’S A LOT OF WORK, WHAT IS YOUR MESSAGE TO THEM? David Byford: "Taking on an apprentice is like a breath of fresh air for a new employer because you bring in new skills, a new attitude, and a fresh approach to your business. It’s different to bringing in an employee because you also have the support of a quality training provider.

"It’s also about building a long-term and sustainable talent pipeline and if you can build an infrastructure, you can bring in lots of new talent.

"Often, there are no added costs too because of the apprenticeship levy and if it is a student aged between 16 and 18, it is fully funded and 95% of this is through government. But your apprenticeship provider can help with securing the correct funding and with the paperwork.

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Emma Cox Head of Field Sales Thatchers Cider

Mell Turford Director and Chair GFM

"Certainly, for us, we ensure it is employerled throughout the whole procedure and the initiative is built around the business."

FROM A BUSINESS PERSPECTIVE, HOW HAS IT BEEN INVESTING IN THESE INITIATIVES? Emma Cox: "Thatchers Cider is in its fourth year of recruiting apprentices and for us, it’s been a fantastic source of attracting talent. Prior to this we really struggled to attract young people into the company and as a fifth generation cidermaker, it really made sense for us to provide careers for young people in the local area.

"Our first challenge was that many young people didn't know what we did here; so offering an apprenticeship programme has allowed us to attract new talent we otherwise may have missed.

"It’s a big thing for us and we make a huge effort to provide our apprentices with a very structured programme because we’re mindful that they are choosing to come to us, rather than going to university, college or sixth form.

Cont. 

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DEBATE

APPRENTICESHIPS & T LEVELS

Strode College sponsors of the live panel debate ‘Plugging the Skills Gap - Apprentices & Traineeships’ www.strode-college.ac.uk

Call: 01458 844508 Email: jobshop@strode-college.ac.uk

"They are trusting us with their career, so it’s vital as an employer we are doing everything right and part of this is to build a strong relationship with your education provider.

"To conclude, I have also found that when you go into schools, as an employer, you really realise how narrow-minded students are on careers, they have no idea of the scope of careers that are available to them and employers offering apprenticeships and engaging with education, can tackle this."

ARE YOU RETAINING MOST OF THE APPRENTICES THAT JOIN? Emma Cox: "We have a very high retention rate and that is because we really focus on the young people, and we have built a strong system that they understand and gives them an insight into every part of the business and shows a clear career path."

CAN YOU TELL US ABOUT YOUR EXPERIENCE OF INVESTING IN A T LEVEL PLACEMENT? Mell Turford: "We invested in a T Level Placement, and it is real life not an assignment. The employee gains an understanding of your whole business and sector, getting training in house. You give them a chance to build something that is theirs too and they are gaining confidence and great experience they can take forward.

"You are also benefitting from a different perspective and sometimes they’ll point something out to you and say, ‘why don’t you do it this way?’. They are learning from you but you’re learning from them too. If you look at digital skills too – young people are far ahead of the game."

Shaun Grist: "We are new to this and we’ve only had our T Level placement individual for about seven months. Already

he has become an invaluable member of our team. I’m an engineer and computer consultant and I’ve been passing all my knowledge on to him, which has been a very rewarding process.

Through this placement, he is gaining experience of the real world early and that can only be a good thing."

YOU MENTIONED THIS IS A NEW SCHEME FOR YOU – WHY DID YOU INVEST IN IT? Shaun Grist: "It's a nice way to expand the team, without having to put in a vast amount of money. If you want to employ somebody from the general market, they'll have their own thoughts and ideas but with our young student, we can teach him what we need him to do for our business.

But we can also develop him as he needs to be developed. It’s also a positive thing to do – it feels like the right thing to do."

HOW CAN APPRENTICESHIPS SUPPORT OLDER PEOPLE?

WHAT HAS YOUR EXPERIENCE BEEN OF INVESTING IN AN APPRENTICE?

"In the next ten years, we’ll hit lots of challenges in our economy around reskilling and creating the talent needed for the jobs of the future. Many of these jobs will focus on the environment and climate change and many will also obviously be focused around the tech sector. It’s critical for old and young people, that they are getting the right advice, so they don’t end up in apprenticeship when they should have gone to university and vice versa.

Ingrid Parker: "Our apprentice is in late twenties and the apprentice programme has allowed him to enter an industry he was struggling to get into because he didn’t have the necessary qualifications.

"It’s also helped to provide support to our IT team who have had had to work remotely during the pandemic and deal with the challenges this has brought.

"ABOUT TWO AND A HALF MILLION ADULTS ARE UNDERTAKING AN APPRENTICESHIP, EITHER TO GAIN ADDITIONAL SKILLS OR TO GO INTO A SECOND CAREER." Gillian Keegan MP

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"Bringing in an apprentice has been a great route for us, and we’re already discussing our next one."

Gillian Keegan MP: "Half of our apprentices in the UK are older. Often, they are people who just didn't get that first shot at school, and are desperate to get on, which leads us on to where we are now with adults and how adults get a chance to reskill if they have been affected by the pandemic.

"Specifically for adults, this year we have also launched the Lifetime Skills Guarantee which allows adult to access the apprenticeship scheme. About two and a half million adults are undertaking an apprenticeship, either to gain additional skills or to go into a second career." 

August/September 2021

NEWS

More young people turning to university due to fractured job market post-pandemic New research from skills organisation City & Guilds Group uncovers the serious impact of the pandemic on young people’s decisions about their futures – with more school leavers turning towards university as a default choice as uncertainty in the jobs market bites.

However, with data suggesting that university may not live up to career and salary expectations, and with many of today’s university graduates set to leave with tens of thousands of pounds worth of debt – City & Guilds Group is urging school leavers to consider all the options available when considering their next steps this August.

The new research reveals that nearly three fifths (57%) of UK 17-19 year olds in their final two years of schools say their decisions about post-education work/training have changed as a result of the pandemic, with a fifth (20%) saying that they now want to stay in full-time education for longer than they originally intended. This is supported by reports from UCAS that university applications this year are at the highest ever level, up by a 10% year-on-year amongst 18 year olds.

More specifically, four in ten (40%) 17-19 year olds in their final two years of school report that they have planned or plan to go to university. This compares to 13% who say the same for apprenticeships, and 22% who plan to go straight into employment. Among those opting for university, it’s clear that many are influenced by the current economic downturn with 14% saying that they’re worried that it’ll be difficult to get a job or apprenticeships, and 14% saying it’s the ‘easiest thing to do’.

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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FEATURE

How can Apple Specialist’s Sync help lead your digital transformation?

Tom Crump from Sync recently spoke to Business Leader about how they can help your business grow by providing best-in-class tech solutions.

Can you give an overview of the company?

Sync works with organisations across the UK to create great solutions and services, utilising technology to enhance workflows, and support businesses.

Formerly GBM Digital Technologies Ltd, we have a proud heritage, supporting Manchester’s thriving creative industry since 1992.

The mass adoption of the internet has revolutionised modern life, and completely transformed the technology space, and businesses sometimes need a helping hand in acclimatising to the new tech. That’s where Sync steps in.

We strive to provide the very best for our clients. Whether they’re a business, school, or consumer, we supply them with the right devices and tools to help them excel and grow with our continued support. As an Apple Authorised Reseller, Jamf Gold Partner, Sync are perfectly placed to support your business.

What separates you from others within the industry?

We focus on delivering customercentric solutions via a consultancy-lead approach, helping our clients get the most out of their tech and ensuring that they keep moving forward with us.

We’re also incredibly proud to be authorised by some of the world’s leading manufacturers and software developers, and hold strong product, sector-specific, and organisational knowledge which we use to provide the very best solutions to our clients.

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Our teams are experts at what they do, and this is reflected in the work they put in, and the results that they deliver. In 2020 we surveyed small and medium businesses in the UK to help assess the impact of Mac in business and we found that 87% of organisations reported an increase in productivity since deploying Mac.

Tom Crump Head of Sales, Sync

How can you help businesses grow?

We introduce businesses to the Digital Transformation process where a business enhances the way it interacts with customers through the implementation of new technologies. A successful transformation can act as a catalyst for creativity and innovation within an organisation.

To ensure that the transformation goes as smoothly as possible, working with an IT consultant or solutions provider can help to keep things on course. The initial excitement and enthusiasm can prompt leaders to want to rip up the rule book, implement completely new ways of working, and replace legacy systems that have been embedded in the company for years. This expensive initial investment is too much of a sudden change and fails to consider the long-term nature of transformations.

Further, this radical change is going to confuse and demotivate staff who were happy with the way things were. To avoid this, companies must start small, involve staff, and provide a detailed, long-term roadmap that implements fundamental

change gradually – this ensures everyone is on board and the ROI on new tech systems will be a positive one.

From a financial perspective, some businesses might not be able to afford to buy the tech they need outright. We help them to scale their operations for less, saving them money and also providing the training to use their new technology, so they don’t have to pay to bring any additional trainers in. We teach them new skills which may even go on to become a saleable option for them in the future.

Our team of business specialists will meet you at your business, and talk through what is possible, and what you want to achieve. We will then create the ideal solution to help you reach your objectives, and modernise your businesses. Whereas many companies would charge for this, we do not as we see it as a vital part of the process required to build a solution. 

August/September 2021

MacBook Pro Productivity just got more Pro.

Bring the power of MacBook Pro to your business from just £19 per Month*

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* Minimum term applies. Excludes VAT at 20%.

OPINION

SAM SIMPSON

How to take on equity funding without losing control of your business In this article, Sam Simpson – Founder of Founder Catalyst – gives his views on the best practice for utilitising equity funding Founders who are considering external funding sources will often be concerned about the impact of taking on investment, particularly about losing some control of their business.

On the flip side, an investor may be concerned about writing a big cheque and not having any control or involvement in your business. In this article, I thought it would be useful to explore the various mechanisms that investors may wish to negotiate into an investment agreement: Undertakings An undertaking is a promise to do or not do something. An investor may, for example, insist that you include an undertaking to preserve SEIS tax relief - i.e. you won’t do (or will not do) anything that would put this relief at risk. Breaching an undertaking could give rise to a breach of contract claim, so any undertakings that you or the company gives should be taken seriously.

Shareholding percentages A founder should be aware of certain rights that are afforded to shareholders that control certain levels of shareholding in a business. For example: • Owners of >75% of the company’s voting share capital can, according to the Companies Act 2006, pass a special resolution which allows shareholders to adopt new articles of association or to disapply pre-emption rights.

• Owners of >50% of the company’s voting share capital can pass an ordinary resolution allowing shareholders to remove a director of the company.

It follows that, if owners with more than 75% of the company can pass a particular motion, then shareholders with greater than 25% of the voting rights can block a motion.

Board appointment rights Some institutional investors may insist on board appointment rights – the options are typically: • Board observer - this gives an investor the right to appoint an individual to participate in board meetings and to receive all information provided to the board. The board observer will not be a statutory director and will not formally vote in this capacity.

• Investor director - this gives an investor the right to appoint an individual to take a formal seat on the board. The investor director will be a statutory director and will have the right to vote.

Step in/swamping rights Sometimes in private equity investments, the parties agree to stepin rights or swamping rights. This right allows an investor to 'step in' and take voting control of the company's board of directors and/or general meetings of shareholders.

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Sam Simpson Founder of legal platform FounderCatalyst

An investors right to ‘step-in’ would generally be limited to scenarios such as when the company is (or is likely) to breach banking covenants related to a loan, or when the company is in breach of the shareholders agreement.

The step-in event is typically temporary, allowing the investor utilising step-in the opportunity to address the issue and to implement measures to prevent the same thing happening again.

Founder equity vesting By default, founder(s) will expect to own 100% of their shares from day one in the business. In many cases, investors will expect to see shares vesting over time - so the shares are incrementally allocated to founders the longer they are with the business.

The investors will also expect different levels of equity to be retained by founder(s) depending upon the circumstances under which the founder is leaving a company.

Pre-emption rights Pre-emption gives an existing shareholder the right, but not obligation, to maintain their percentage shareholding in a company when the company is issuing new shares. This is an entirely market standard term in any stage investment but it does have implications for founders wishing to raise capital.

Investor consents Also known as veto rights, ensure that the company seeks consent from specific investors, or a certain percentage of investors, before they can undertake certain actions.

These actions may depends upon the circumstances, but typically include items such as; altering the article of association; paying a dividend; placing the company into administration; or incurring any capital spend above a certain threshold.

August/September 2021

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