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South East Edition

Issue 10: Sept - Oct 2019

What is next for the rebel entrepreneur?

BLM talks to Duncan Bannatyne about his entrepreneurial journey

Political turmoil: Is Boris Johnson going to do the business?

Page 18

On the front line: Billy Billingham MBE gives his views on leadership Page 26

Flexible working: Business leaders discuss the future of work Page 50

www.businessleader.co.uk

FROM THE EDITOR

7 22 36 BUSINESS LEADER COLUMNISTS: DEVELOPING CUSTOMER TRUST AND LOYALTY; THE LYNCHPIN FOR LONG-TERM SUCCESS

Greg Le Tocq Founder, Cloud savings company, which owns Vouchercloud IS YOUR BUSINESS INVESTMENT READY? MARK PEARSON SHARES HIS KNOWLEDGE

Mark Pearson founder, Fuel Ventures

BUSINESS LEADER VISION:

INSPIRE

INFORM

LATEST NEWS

Breaking business news from around the region and UK. Featuring news on heycar, Ted Baker and Rolls Royce.

POLITICS:

REPORT

BLM FAST TRACK

LEADERSHIP:

TRUST

COVER STORY

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44

How to launch your business in The Netherlands.

HR DEBATE:

THE FUTURE OF WORK

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Duncan Bannatyne talks to BLM about his entrepreneurial journey and the risks he had to take.

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Boris Johnson and Jeremy Hunt tell us what trust means to them.

Business Leader profiles the fastest growing companies in the UK. In this edition we talk to Five Guys.

INTERNATIONAL TRADE

Business Leader - Inspire • Inform • Connect

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What the man who said ‘f**k business’ will mean for the UK.

GROWTH:

CONNECT

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46

LEADERSHIP:

INTERVIEW

26

From partrooper to private security for the stars, meet Mark ‘Billy’ Billingham.

TOP30 ENTREPRENEURS

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As part of our growth series, we profile 30 of the UK’s most inspirational entrepreneurs.

50

What motivates employees in the UK workplace?

REGIONAL: LEVEL39

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How is it revolutionising the London tech scene?

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LATEST NEWS

Tech icon announced as host for 2019 Go:Tech Awards Inspire • Inform • Connect EDITORIAL Oli Ballard - Editor E: editor@businessleader.co.uk Barney Cotton - Assistant Editor E: barney.cotton@businessleader.co.uk DESIGN/PRODUCTION Adam Whittaker - Senior Designer E: adam.whittaker@businessleader.co.uk Melissa Larkin - Website Development E: melissa.larkin@businessleader.co.uk Kirstie Wood - Digital Communications E: kirstie.wood@businessleader.co.uk SALES Sam Clark - Business Development Manager E: sam.clark@businessleader.co.uk Emma Filby - Business Development Manager E: emma.filby@businessleader.co.uk CIRCULATION Adrian Warburton - Circulation Manager E: adrian.warburton@businessleader.co.uk ACCOUNTS Jo Meredith - Finance Manager E: joanne.meredith@businessleader.co.uk Ashley Cartman - Finance Director E: ashley.cartman@businessleader.co.uk MANAGING DIRECTOR Andrew Scott - Managing Director E: andrew@businessleader.co.uk

The host for the 2019 Go:Tech Awards will be the former host of The Gadget Show UK, Jason Bradbury.

the UK’s leading tech and innovation showcase, and are attended by leaders in the field, investors and entrepreneurs.

He has worked as a TV presenter and producer on hundreds of shows, in a career spanning almost twenty years.

The awards will take place on November 21 2019, and currently, the independent panel of judges are looking over the record number of entries from across the UK.

His own inventions, which include the world’s first working jet-powered hoverboard, have become legendary. He is also a private pilot and is licensed to build transmitters by the Home Office.

No part of Business Leader Magazine may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior written consent of the editor.

Business Leader magazine will make every effort to return picture material, but this is at the owner’s risk. Due to the nature of the print process, images can be subject to colour variation of up to 15%, therefore Business Leader Magazine cannot be held responsible for such variations.

With an infectious passion for technology and science, Jason is an ideal host for this year’s awards. He also boasts excellent comic abilities, developed during his years performing in a double act with Little Britain star David Walliams.

If you would like to get involved or have any news you would like to share, please contact us on 020 3096 0020 or email: editor@businessleader.co.uk.

The Go:Tech Awards have become

“Entries are coming in thick and fast and November 21 will be a night to remember in the business calendar.”

BOOK TICKETS AT: GOTECHAWARDS.CO.UK #GOTECH19

Follow us on social media

Award-Winning Legal Advisers to Regional Businesses 2

Founder of the Go:Tech Awards, Andrew Scott, comments: “Jason is the perfect fit for the Go:Tech Awards – funny, industrious and tech savvy. He’s going to be a great host. We launched the awards to celebrate businesses of all sizes that are at the cutting edge of tech and innovation.

0117 925 2020 vwv.co.uk Issue 10: September - October 2019

Winner of

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LATEST NEWS

Depop raises £51m Series C to meet rising demand from US Gen Z

ADVERTORIAL:

WHILST OTHERS WAIT, NOW IS THE TIME TO GROW

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t times of economic change and uncertainty, it’s understandable that many businesses choose to hold fire on making changes or investments until the future becomes clearer. However, it is exactly at those times, when others are holding back, that nimble businesses can seize the initiative and choose to build the future that they want!

Castle Business Finance has seen strong growth over a number of years which has provided a great opportunity to expand. This has allowed them to provide even greater benefits and service to their existing clients whilst creating the capacity needed to help more businesses to build their own futures.

So, this year, Castle Business Finance has been expanding. Firstly, that has meant an investment in staff at every level, increasing headcount by 30%.

More staff means more time and personal service to clients when they need it most. They have also secured larger premises, on the same site, to allow the company to grow.

Sourcing the cash needed to make that next step is critical, particularly if you don’t have large reserves to draw from. One of the most established ways of funding is Invoice Finance.

This releases the cash tied up in your invoices without waiting to get paid.

Businesses can draw funds against the amounts due from customers

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to immediately improve cash flow, which can help to pay bills, wages or suppliers. They can also invest in new projects and growth earlier than anticipated, instead of having to wait until their customers pay.

At Castle Business Finance - their Invoice Finance packages can be put in place swiftly and once invoices have been billed to a customer, an agreed percentage of the invoice value will be released straight to the business.

“Taking advantage of our continued growth means that we are able to keep down the costs of borrowing for our clients and make more funds available,” explains Jeremy Coombes, CEO of Castle Business Finance.

“Whilst your competitors wait, now could be exactly the right time to make the changes you need to stand out from the crowd.”

To find out more about invoice and trade finance, visit Castle’s new website at www.castlebusinessfinance.com or call 01275 390 665.

Depop, the fashion marketplace for the next generation, has secured a £51m Series C round led by General Atlantic.

Depop intends to use the funds to accelerate its expansion in the US and internationally, grow its London-based engineering and data science teams and invest in new tools and functionality for the platform’s 13 million users globally.

Existing investors HV Holtzbrinck Ventures, Balderton Capital, Creandum, Octopus Ventures, and TempoCap also participated in the round, alongside angel investor Sebastian Siemiatkowski, Founder and CEO of Swedish fintech company Klarna.

Depop CEO Maria Raga said: “The next generation of young people want an experience the fashion industry is struggling to provide.

They want authenticity and to set their own trends. They’re influenced by real people. They want choice and individuality, the ability to buy on demand and sell on with ease. At the same time, they want to reduce waste. Depop is set up to meet these changing demands. We exist to empower the next generation to transform fashion.”

There are currently 16 million items for sale on Depop, with 110,000 new items listed every day.

Issue 10: September - October 2019

SALFORD BUSINESS SCHOOL In partnership with industry

WORRIED ABOUT THE SKILLS GAP? / Take a student on work placement (3, 6 or 12 months) / Be a named industry partner to ensure we are teaching the skills you need / Become a guest speaker / Give our students live briefs and projects to look at your business problems / Host an industry visit / Commission academic research into your business challenges

OUR STUDENTS GAIN REAL-WORLD EXPERIENCE; YOU ACCESS HIGH-QUALITY, BRIGHT AND ENTHUSIASTIC STUDENTS Find out more about your opportunities to work with us www.salford.ac.uk/business-school +44 (0)161 295 2222 sbs-admin@salford.ac.uk

Business Leader - Inspire • Inform • Connect

BECOME UNSTOPPABLE 5

LATEST NEWS

CMA pharma probe secures £8m package for the NHS

Cloud-based software company Systum raises £8.8m funding

Drug firm Aspen has offered to pay the NHS £8m, as part of a wider package, to resolve competition concerns over the supply of a vital medicine.

This follows an investigation by the Competition and Markets Authority (CMA) into suspected anti-competitive arrangements regarding the supply of fludrocortisone acetate 0.1 mg tablets.

It is the first time the CMA will secure such a payment to the NHS in one of its pharmaceutical investigations.

Fludrocortisone is a life-saving medicine, on which thousands of patients depend.

It is supplied only on prescription, mainly to treat primary or secondary adrenal insufficiency, commonly known as Addison’s Disease. It is paid for by the

NHS and so ultimately by UK taxpayers.

The CMA has been investigating arrangements that Aspen entered into with two rival pharmaceutical companies in 2016, as the CMA suspected competition law had been broken by Aspen paying competitors to stay out of the market. These arrangements left Aspen as the sole supplier of fludrocortisone, with the ability to set prices without facing any competition.

Andrea Coscelli, the CMA’s Chief Executive, said: “The CMA launched this investigation because we consider it unacceptable for the NHS – and the taxpayers who fund it – to have to pay millions of pounds more than they should for this life-saving drug.”

Systum, a provider of digital operating platforms for small to medium-sized businesses (SMBs), announced it has raised £8.8m in its latest round of funding led by London-based venture capital firm Octopus Ventures.

The company will use the funding to add new functionality to its cloud-based software, and to expand its sales and marketing efforts.

Systum combines major business operations like inventory and order management, marketing, CRM and digital commerce into a single platform that delivers ‘Enterprise Class’ operational capability.

Systum CEO Dean Mansfield said: “This breaks down silos within a business and provides them with real time data and business intelligence. It allows SMBs to offer seamless, customer-centric digital experiences that rival Amazon and eBay.”

heycar announces expansion into the UK The online used car platform heycar is expanding into the United Kingdom.

GmbH are Volkswagen Financial Services AG and Daimler Mobility AG.

Used car buyers now find high quality used vehicles with a warranty at heycar.co.uk.

In the United Kingdom, the heycar brand operates under Mobility Trader UK Ltd, a wholly-owned subsidiary of Mobility Trader Holding GmbH and is a sister company of the German Mobility Trader GmbH.

Frank Fiedler, CFO of Volkswagen Financial Services AG said: "We are pleased that heycar has now taken the first step towards an international expansion. Following the positive reception of heycar in Germany, we now want to serve dealers and customers in the United Kingdom just as successfully and thus further expand our used car business."

The shareholders of Mobility Trader Holding

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Issue 10: September - October 2019

LATEST NEWS

Next please: Ted Baker ends partnership with Debenhams Ted Baker, the global lifestyle brand, have announced that they have entered into a new product licence agreement with Next, following the decision to end their partnership with Debenhams.

Under the agreement, which will run for an initial five-year period, Next will create and sell Ted Baker childrenswear products, spanning baby, boys’ and girls’ clothing, shoes and accessories in collaboration with the creative team at Ted Baker. The new collections will launch in Spring 2020 and will be sold through Next’s retail channels and wholesale relationships as well as through Ted Baker’s websites.

The company’s current childrenswear product relationship with Debenhams will end on 29 February 2020. The company

RBS names Alison Rose as first female Chief Executive of a major British bank Alison Rose has been named as the new chief executive of RBS, making her the first female to hold this position at a major British bank.

retains an established and mutually profitable relationship with Debenhams, which remains a licence partner for lingerie and nightwear.

Lindsay Page, Chief Executive Officer of Ted Baker, said: “We are delighted to announce this exciting product licence with Next to support the continued expansion of Ted Baker’s growing childrenswear collections.”

She was previously chief executive of commercial and private banking at RBS and deputy chief executive at NatWest Holdings.

RBS, which is 62% owned by the taxpayer following its £45.5bn bailout during the 2008 financial crisis, also has a female finance chief, Katie Murray, who was appointed late last year.

Alison has worked at the bank for 25 years and has risen to become one of the most respected industry figures.

Homes England and Barclays strike £150m loan deal Kit Malthouse MP has announced that the government’s housing accelerator, Homes England, and Barclays have agreed £155.3m of loan funding to accelerate the construction of hundreds of new homes in Wimbledon and Southampton.

In Wimbledon, a total of £150m will be loaned to Merton Catalyst LLP, a joint venture between housing association Catalyst and developer Galliard. The funding will be used to help bring forward 604 apartments on the hybrid residential-led scheme at the former Wimbledon Greyhound Stadium site in Plough Lane. This sophisticated, mixed-use development will also include commercial space, improved public realm and a new sports stadium delivered by AFC Wimbledon.

In Southampton, Cannon Capital Developments will receive a £5.3m loan to convert a former commercial building into 56 apartments for private sale in the city’s Ogle Road.

Malthouse says: “Upping our game to build Business Leader - Inspire • Inform • Connect

more, better and faster is how we are going to meet our ambition of delivering 300,000 homes a year by the middle of the next decade.

“Innovations are key to unlocking the next generation of homes and our Housing Delivery Fund – a £1bn partnership between

Government and Barclays – is a great example of the new approaches we’re taking to get more homes out the starting blocks.

“Today I am announcing the first two deals from this partnership, worth £155m, that will see sites developed into communities that people will be proud to call home.”

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DEALS

REGIONAL DEALS

Just Eat to merge with Takeaway.com to create £8.2bn food delivery giant

MEDIA

Just Eat and Holland-based Takeaway.com have announced a deal which would see the two rivals combine to create one of the world’s largest food delivery businesses.

Dennis, the international media group, has acquired social media brand Car Throttle. This marks the latest significant investment in the automotive space.

LEISURE

YFM Equity Partners, the specialist private equity fund manager, has backed the MBO of The Protein Works from B&B Investment Partners.

The combination of the two would see the creation of a new company, Just Eat Takeaway.com N.V., with a value of around £8.2bn - rivalling that of its competitors Deliveroo and Uber Eats.

As one of the leading delivery businesses across the world, they would process around 360 million orders a year, at a value in excess of £6.6bn.

Immediately following completion of the possible combination, Just Eat shareholders would own approximately 52.2% and Takeaway.com shareholders would own approximately 47.8% of the share capital of the group.

Upon completion, Takeaway.com intends that the combined group will be incorporated and headquartered in Amsterdam, The Netherlands, with a premium listing on the London Stock Exchange (LSE) and will maintain a significant part of its operations in the United Kingdom.

HEALTHCARE

Grant Thornton and Vespa Capital have advised on the £17m MBO of Worthing-based Bluecrest Health Screening.

FINANCIAL SERVICES

GoCo Group plc have acquired This Is The Big Deal Limited in a deal worth up to £12.5m. The company has developed into one of the fastestgrowing energy savings services.

LEGAL

Workshare, a document comparison and transaction management specialist for the legal sector, has been acquired by US firm Litera Microsystems.

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Media giants CBS and Viacom set to merge Global entertainment powerhouses CBS and Viacom are set to merge, creating a £23bn revenue company, with household brands such as Comedy Central and Paramount Pictures.

The two brands were once under the same umbrella, however, in 2006 they split into two separate corporate entities.

The announcement is seen as a way to tackle an ever-increasingly competitive market. This follows the deal between Disney and Fox, as well as current entertainment rivals Netflix and Amazon.

The merged firm, to be called ViacomCBS, would be controlled by National Amusements, the holding company owned by billionaire Sumner Redstone.

Bob Bakish, President and Chief Executive Officer, Viacom, will become President and Chief Executive Officer of the combined company. Bakish said: “Today marks an important day for CBS and Viacom, as we unite our complementary assets and capabilities and become one of only a few companies with the breadth and depth of content and reach to shape the future of our industry.”

Issue 10: September - October 2019

Business Leader - Inspire • Inform • Connect

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LATEST NEWS

Rolls-Royce announce record number of new apprentices Rolls-Royce Motor Cars has welcomed the largest-ever cohort onto its apprenticeship programme for 2019 in a special ceremony at the Home of Rolls-Royce at Goodwood.

A record 26 new apprentices and their families took part in the event, which was hosted by Johann Wolf, Director of Manufacturing, Rolls-Royce Motor Cars, together with senior managers and employees from the departments in which the apprentices will be based during their time at Goodwood.

The new recruits will train with the company for between two and four years, working alongside experienced craftspeople in assembly, woodshop, surface finish, leathershop, parts quality and total vehicle quality management to learn the unique skills and techniques employed by the luxury car manufacturer.

They will also study for nationally-recognised

vocational qualifications at Chichester College and other local further education establishments.

For the first time since its launch in 2006, the programme now includes Sir Ralph Robins Degree Apprenticeships, in which candidates will study for a BEng in Mechanical Engineering at the University of

Chichester to complement their on-the-job practical training.

Director of Manufacturing Johann Wolf said: “We believe this combination of hands-on training, practical experience and vocational education is vitally important, not only to our own future, but to that of UK manufacturing as a whole.”

LGIM sells Bonhill Street property to Mayfair Capital Partners for £112.5m schemes, hotels, healthcare, student accommodation and self-storage.

Following the UK Property Fund’s launch in 2006, the Fund has grown from £100m to over £3bn as it continues to see steady capital investment from retail investors.

LGIM Real Assets has announced on behalf of its UK Property Fund that is has completed the sale of 15 Bonhill Street, London, to Mayfair Capital Partners for £112.5m.

Maximising its performance, the disposal allows the fund to continue to diversify its holdings and recycle its capital into more operational and alternative assets, such as its investments into build-to-rent 10

Matt Jarvis, Senior Fund Manager of the UK Property Fund at Legal & General, said: “Having acquired the asset in 2014 for £62.6m, this sale marks the conclusion of a highly successful asset management programme and supports our Fund strategy to seek undervalued sectors. The Fund has had a strong focus on investing in operational real estate such as hotels, BTR and self-storage, where we can benefit from income linked to the underlying operational performance of the property for our occupiers.”

Thomas Cook to sell majority stake to Fosun Tourism Thomas Cook has agreed a rescue deal with Chinese investor, Fosun Tourism, its banks and a majority of its bondholders.

The UK tour operator said in July it was working to secure new investment from Fosun, a major shareholder. The new deal would see the group take control of the business at the expense of other shareholders.

Fosun will put in £450m in return for at least 75% of the tour business and 25% of the group’s airline.

Issue 10: September - October 2019

LATEST NEWS

Ascot Group CEO headlines business conference

HS2 to be delayed by up to five years The HS2 high-speed railway between London, the Midlands and the North will now be delayed by up to five years, despite billions of pounds already been spent on the project.

Transport Minister Grant Shapps made the announcement that the planned completion date of 2026 for Phase One, would now be extended to 2028 or even 2031.

Phase Two will also be extended by a few more years, possibly until 2034.

It was also revealed that the total cost of the project has risen from £66bn to more than £88bn.

Shapps commented: “HS2 is the single largest project of this Government. One important aspect of the panel’s work is to consider whether both the costs, and the benefits, of the scheme have been correctly identified.

“HS2’s business case has been founded on increasing capacity on our constrained rail network, improving connectivity, and stimulating economic growth and regeneration. The current budget was established in 2013 and later adjusted to 2015 prices. Since that time, significant concerns have been raised.”

Greene King bought by CKA British pub giant and brewer Greene King have agreed to be bought by a subsidiary of CK Asset Holdings, the flagship of the CK Hutchison Group.

Greene King owns over 2700 pubs and restaurants across the UK, and the deal values the company at £2.7bn.

also ensuring the future success of Greene King for employees, partners, customers and suppliers. We are therefore unanimously recommending it to our shareholders.”

Chairman Philip Yea commented: “The Greene King board is confident in the long term prospects of the business but believes this offer represents a good opportunity for shareholders to realise value for their investment at an attractive premium, while Business Leader - Inspire • Inform • Connect

Leading business growth expert advises British manufacturers on scaling their business and avoiding ‘The Marketing Wave’.

Andrew Scott, CEO of the Ascot Group, took to the stage this month at a conference for UK manufacturers.

The conference was staged at Edgbaston Conference Centre in Birmingham, with 320 industry leaders with a combined turnover in excess of £1bn. The event aimed to tackle challenges faced by manufacturers and discussed how they could evolve to meet new opportunities.

Andrew Scott gave his keynote on business growth and marketing strategy, and highlighted his ‘Business Growth Blueprint’ that he has used with hundreds of companies across a diverse range of sectors.

He commented: “If companies aren’t achieving their growth numbers there will be three primary reasons but sometimes organisations and leadership teams miss the obvious and forget to focus on the basics.”

Andrew has acquired, built and sold several companies spanning manufacturing, retail and tech. He launched the Ascot Group, one of the UK’s fastest growing marketing and media groups, in 2004 and the business has grown on average 34% a year over the last ten years.

He continued: “One mistake companies often make is called 'The Marketing Wave'. They invest in marketing when business slows, then take their foot of the gas when it gets busy. When it slows down again, back comes a frenzied marketing campaign – and the cycle continues. A much better strategy is simply to be consistent.

“For any companies fortunate enough to have too much business, it isn’t a case of throttling back on marketing activity, it is a case of reviewing your customers, pricing and margins.”

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LATEST NEWS

Fairline announces £15m investment to accelerate product development Luxury British motor yacht manufacturer, Fairline Yachts, has announced a partnership with RiverRock European Opportunities Fund, to secure a £15m cash facility.

In conjunction with the current owners, the capital investment will be used to accelerate Fairline’s exciting product development agenda.

The partnership with RiverRock will help Fairline build on the successful expansion of the business during 2019, which is forecast to deliver more than 80 yachts and a turnover of £50m.

CEO of Fairline Yachts, David Tydeman, said: “Demonstrating its support and confidence in Fairline, we very much welcome the investment from RiverRock, which is in-line with our long-term plan for the brand.

“The funds will help add pace to our innovative product development programme, which is critical for the sustained growth of the business and to meet our discerning buyers’ requirements. Customer belief in our brand is strong and with this additional investment, we are in a robust position to continue delivering on our ambitious growth plans.”

Google-backed AI firm raises £1.5m in seed funding askporter, an AI-focused property management software start-up has launched a digital assistant to solve many monotonous tasks that are required in all property management.

Following on from Google’s investment, a further £1.5m seed round has been raised from strategic investors and Silicon Valley VCs including Plug and Play, Venture University, Pi Labs, WISAG FM and Henley Investments. askporter is a digital platform that utlises AI to simplify the process of property management.

CEO Tom Shrive said: “Looking to the future, well-run properties will largely be managed by an AI assistant that has all the context of an actual manager and complete data transparency, freeing them up to focus on delivering value-added, human-touch experience to occupants.”

Persimmon announce fall in profits to £509.3m British housebuilding company, Persimmon, have announced that its first-half profit before tax fell 1.4% to £509.3m, as the previously announced decline in completions hit revenues.

That reflects Persimmon’s efforts to address customer satisfaction concerns. The group’s new quality initiatives are expected to increase customer care costs by around £15m a year.

Dave Jenkinson, Group Chief Executive commented: “Improving the quality and service delivered to our customers remains our top priority and I am encouraged with the progress made in the first half, which clearly shows that Persimmon is changing.

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“Our decision to invest an additional £140m in work in progress as we held back some sites for later sales release to give customers more accurate moving-in dates reduced the Group’s overall sales volumes. Allowing for these impacts, Persimmon’s trading in the first half of 2019 was strong.

“I am proud of the commitment and dedication our teams have shown in supporting the many initiatives we have introduced to deliver a step-change in our customers’ experience. I am confident that the progress we are making with our initiatives, our strong forward build, healthy forward sales and robust balance sheet place Persimmon in a strong position for the second half.”

Issue 10: September - October 2019

LATEST NEWS

British built rover begins journey to Mars

Achilles Therapeutics raises £100m in Series B financing

UK engineers have completed the assembly of the European Space Agency’s (ESA) Rosalind Franklin rover, which will seek out signs of life on Mars.

Rosalind Franklin, which is the result of cutting edge work from UK, European and Canadian scientists and engineers, have now shipped from the Airbus factory in Stevenage, Hertfordshire to Toulouse in France for testing to ensure it survives its launch from Earth next summer and the freezing conditions of Mars when it lands on the planet in March 2021.

The rover is part of ESA’s ExoMars mission to examine the geological environment on Mars and search for signs of life, past or present.

Dr Graham Turnock, CEO of the UK Space Agency, said: “This is a major milestone for this exciting project which demonstrates the UK’s leading capabilities in robotics, space engineering and exploration, as well as our ongoing commitment to the European Space Agency.

“As we hand the rover over to France for final testing, we should celebrate the huge efforts of the hundreds of people across the UK who have been involved in the design and build of the rover and its instruments, which will look for life on Mars.”

Achilles Therapeutics, a biopharmaceutical company developing personalised cancer immunotherapies, has announced it has closed a £100m Series B financing led by incoming U.S. investor RA Capital Management, corner-stoned by founding investor Syncona and joined by new investors including Forbion, Invus, Perceptive Advisors and Redmile Group.

Proceeds from this financing will deliver two human proof-of-concept studies, using a unique personalised T cell therapy approach targeting clonal neoantigens in non-small cell lung cancer and melanoma.

These programmes are expected to enter the clinic this year. In addition, the financing will enable the company to continue building out its manufacturing capabilities as well as broadening its growing solid tumour pre-clinical product pipeline.

Dr Iraj Ali, CEO of Achilles Therapeutics said: “We are extremely pleased to welcome this excellent group of new investors to Achilles and I would like to personally thank our existing founding investors for their continued support. With this fundraising we have made a clear statement about the scale and nature of our ambitions to bring novel cancer therapies rapidly to patients with a high unmet medical need.”

£7m funding to protect UK marine life Millions of square kilometres of ocean around the world will be cleaner and more sustainable thanks to the UK’s commitment to extend its Blue Belt scheme.

The additional £7m will mean the protection of Marine Protected Areas can continue and expand, supporting the protection of key species such as turtles, whales, fish, seabirds and wider marine life. Addressing world leaders at the G7, the Prime Minister Business Leader - Inspire • Inform • Connect

said the next year would be vital for the future of our planet, and called for the Aichi targets to be replaced with new, more ambitious ones at the Biodiversity COP in China next year.

Foreign Secretary, Dominic Raab, says: “The UK is the first major economy to legislate for net zero CO2 emissions and we are leading the way on protecting the world’s ocean for future generations.”

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COVER STORY

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Issue 10: September - October 2019

DUNCAN BANNATYNE

Taking calculated risks was definitely a key to my success I cannot tell any other way of being successful: Duncan Bannatyne talks to BLM about his entrepreneurial journey

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usiness Leader recently sat down with entrepreneur and Dragons’ Den star Duncan Bannatyne to talk about the growth of his leisure brand, his eclectic five decade long career, and the secrets to success.

YOU RECENTLY ANNOUNCED RECORD TURNOVER OF £127.5M FOR THE BANNATYNE GROUP – WHAT DO YOU PUT THE SUCCESS DOWN TO? Hard work and dedication from great staff – you cannot achieve success in your business without this element. I also

have a great board of directors, that have all worked well together to achieve this success.

We now expect this long period of investment to result in a business that will maintain further growth and profits, as we continue to provide the sectorleading facilities and high-quality services our members and customers expect and deserve.

CAN YOU TELL ME ABOUT THE START OF THE COMPANY? AND HOW YOU MANAGED TO GROW IT TO ACHIEVE THIS SUCCESS? It was about 21 years ago that I broke my leg skiing, and I was looking for a

machine to work out the muscles in my leg.

I joined a gym that was 25 minutes from my house and I thought to myself, “I can build ones of these; I can build it cheaper and also make a profit,” so I started looking into it as a business opportunity. I then built my first one in 1997, and we have continued to grow from there.

22 years later and we are here now and have achieved record profits and a huge business empire of health clubs, hotels, and spas. I love this business and I love this industry, and we work hard to make sure we are the best.

We have 72 health clubs and four hotels, and within those, we operate 46 spas, which we run independently from the clubs and hotels, but within the same group of 3,500 staff.

BEFORE THE BANANTYNE GROUP – WHAT WAS YOUR HISTORY IN BUSINESS? For the ten years before I started The Bannatyne Group, I founded a company called Quality Care Homes, where we built accommodation for the elderly. Five years after we started the business, and we had achieved success within the sector, I decided to float the business on the London Stock Exchange. Then a further five years down the line, I was unhappy within the business, and so I sold it. It was a public company and I owned 50% of it.

I took £26m and I used £16m of that to start and grow The Bannatyne Group. At the time, the care homes were a great business, and had a great need, however, for me, over the years it became very depressing working within that environment.

Cont.  Business Leader - Inspire • Inform • Connect

15

COVER STORY

So, when I sold it I wanted to move into something more exciting, more joyous, so I started the health club business.

WHAT ARE THE BIGGEST DIFFERENCES BETWEEN THE SECTORS? I love working within the leisure sector – it is amazing! When you are looking after the elderly, the reality of the situation is that your customer is going to die. With The Bannatyne Group, the customer is going to get fitter, healthier and happier, so it is completely different.

The leisure industry is exciting and diverse – our youngest customer is 16, and our eldest is 94 – still working out, and still coming to the gym.

HOW IS YOUR LIFE STRUCTURED NOW? DO YOU STILL INVEST IN BUSINESSES? I am not really looking at investing in any new businesses at the moment. I love this business, and it takes up a lot of my time and I enjoy the work/life balance that it provides me. I have a very busy life!

I have got a beautiful house in Portugal and another one in Monaco – I have a great life! My daughter has also just gone to school in Miami, so I am flying back and forth over there at the moment. There is a lot of living to do at the moment, as well as running the business.

I want to stay here and see the business grow. There is no point in looking at investing in smaller businesses as a long term project as I do not know how much longer I am going to be on this earth. And I have got enough money – I don’t need anymore money.

WAS IT ALWAYS THE PLAN TO BE AN ENTREPRENEUR? I always wanted to be an entrepreneur and involved in business. I wasn’t very good at school – and I didn’t realise at the time that I have dyslexia. It was only a year after I had finished school that I was diagnosed with it. However, I always knew I was better than what other people thought and I knew I could achieve success.

Following this, I joined the Royal Navy and after a few years there I left. At the age of 30, I started selling ice cream out of my own ice cream van. That was my first business that I started over 40 years ago!

I was penniless at 29, and a ‘beach bum’ who was hiring out deck chairs. I didn’t even open my first bank account until I was 30 years old.

WHAT LESSONS DID YOU LEARN IN THE NAVY AND HOW DID THEY HELP YOU LATER ON IN YOUR CAREER? What I did learn was the discipline of a day-to-day role and living. To be a

successful entrepreneur, you need to be very disciplined. You keep notes of what your priorities are, and then you complete everything you need to.

Taking charge of your own role and achieving what you set out to do. Discipline and focus were the main lessons I learnt in the Royal Navy that I carried into my business career.

"TAKING CALCULATED RISKS WAS DEFINITELY A KEY TO MY SUCCESS! I CANNOT TELL ANY OTHER WAY OF BEING SUCCESSFUL. THE WAY TO NOT BE SUCCESSFUL IS TO BE NEGATIVE ABOUT WHAT YOU ARE DOING – IF YOU ARE, YOU WONT SUCCEED" 16

Issue 10: September - October 2019

DUNCAN BANNATYNE

CAN YOU ELABORATE MORE ON YOUR TIME IN THE ICE CREAM BUSINESS? At the age of 30, I moved to the north of England and got a job working in a bakery, where I was working 12-hour night shifts.

I worked extra hours whenever I could to make extra money to get a bigger pay packet, so I could then afford a mortgage. I then bought my first property – a £12,000 house with a £10,000 mortgage. To subsidise this, in my spare time, I bought and sold cars by doing them up and selling them for a profit.

Just after I bought my first house, I was at a car auction and saw an ice cream van – so I bought it and started selling ice cream! Over the next five years, I built up a fleet of ice cream vans, which made a decent profit.

I then realised that I wanted to build Business Leader - Inspire • Inform • Connect

homes for the elderly. I bought some terraced houses and applied for planning permission and it was approved. During the process of building that, I sold the ice cream business, borrowed money on credit cards to get it completed and remortgaged. From then I went on to borrow and build more.

ARE TAKING RISKS KEY TO THE SUCCESS OF AN ENTREPRENEUR? "Taking calculated risks was definitely a key to my success! I cannot tell any other way of being successful. The way to not be successful is to be negative about what you are doing – if you are, you wont succeed. If you tell your friends and family that it isn’t possible to do it, then you will never be able to achieve anything. Believe in what you are doing and go out and achieve it. I did it – and I believe that anyone with the right mindset can achieve it.

WHAT WOULD YOU SAY HAVE BEEN YOUR BIGGEST CHALLENGES IN BUSINESS AND HOW DID YOU OVERCOME THEM? There have been too many challenges to mention! Having two wives and six kids and running a business is challenging enough. There are times in business that constantly throw up challenges, which you need to tackle.

In 2006, we bought 25 health clubs from Hilton Hotels for £92m, and it was incredibly challenging going through that process. A few years later, the bank that we were working with went bust and we had no way of paying the money back.

The way we achieved this was selling the land from underneath the health clubs, and then having them rented back to us.

That was one of my most challenging times in business.  17

ECONOMY, POLITICS & MARKETS

Boris Unravalled BLM looks at what the man who said ‘f**k business’ will mean for business.

By Patricia Cullen

W

hether you found the whole thing thoughtprovoking or tedious, the outcome of the Conservative leadership election between Boris Johnson and Jeremy Hunt will have long-term consequences for UK enterprise.

Though the UK remains a thriving place to do business, ongoing Brexit uncertainty, renationalisation threats and possible unilateral action on taxation are making business leaders think twice. In 2014, the UK Finance Chief George Osborne affirmed that the Conservative Party was “proud to be the party of firms and of businesses”.

Since then, the Brexit debacle has prompted a serious identity crisis within the Party, and the new PM must facilitate the UK’s reorganisation into the international economy, bringing a divided country back together.

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It’s finally Boris’ time Step forward Boris Johnson, who has inherited a country in crisis and a governing party so estranged that some members fear it could break apart. Boris, a divisive character himself, must begin preparations for a ‘no-deal’ Brexit, which would severely disrupt the economy, causing anxious ripples to permeate through UK industry.

The costs of a no-deal – a self-inflicted burden on the economy – will be felt for years to come.

Mike Danby, MBE, CEO, Advanced Supply Chain, says: “If Boris manages to negotiate a decent Brexit deal (or preferably no Brexit), businesses will feel minimal impact. If (as promised) he leaves without a deal and the economy tanks, then we will suffer consequences that I can’t predict – although for sure they will be negative.”

Boris backs the idea of the UK leaving the EU with or without a deal, and fears continue to grow of a catastrophic no-deal divorce, especially since his Brexit strategy consists largely of bluster and bluff.

The new PM may soften his stance when faced with the reality, but what effect will the new Tory leader have on business? What policies has he pledged?

And what will a man whose career has been dogged by blunders, controversy, affairs and scandal, bring to business? Business

Issue 10: September - October 2019

REPORT

leaders yearn for transparency, but a pre-Brexit Britain is a place more akin to confusion than clarity.

No-deal Brexit What is clear is that a no-deal Brexit could be catastrophic for supply chains, jobs and consumer prices, but Boris has pledged that the UK will leave by the 31st October, deal or no deal; and he has even now said he will suspend parliament to make certain he reaches a resolution.

This is hardly surprising from a man who once said “F**k business” to a Belgian ambassador, revealing his supposedly cavalier contempt for the business community and the millions of people it employs. Those on one side of the argument will feel that Brexit Boris is a dangerous character, and could do huge damage to the UK economy but those sympathetic to him will see a man – who like Churchill – is unorthodox but always ready to make the big decisions and ultimately capable of navigating Britain back to her feet.

In an attempt to reconcile himself, Boris promised to be “the most pro-business Prime Minister” in history at a recent gathering of 30 FTSE100 bosses including Lloyds, Marks & Spencer and BT. However, there is no sugar coating that a no-deal could be difficult for many industries in Business Leader - Inspire • Inform • Connect

the UK and the tariffs on trade to Europe will be so punitive until a new trade deal is renegotiated that a huge number of businesses will suffer irreversibly.

Professor Andrew Kakabadse, Programme Director of the Board Directors' Programme at Henley Business School is already apprehensive about the new cabinet, acknowledging the damage that Brexit could cause: “UK business leaders have every right to be concerned with the prospect of Boris Johnson becoming Prime Minister.

Boris is heavily supported and championed by a two decades plus well-endowed campaign to have the UK leave the EU and form much closer economic and political ties with the USA. “He totally underplays the damage that will be done economically and socially to the UK and has not even mentioned the short to medium term impact of the oncoming information revolution, namely Industry 4.0.

Europe is estimated to lose over 55 million jobs with Industry 4.0 and the recovery will take a decade as new information technology progressively becomes the corner stone of the economy. It seems that

very few are considering the impact of both Brexit and facing up to Industry 4.0.”

Business leaders are currently in no man’s land as it is impossible to plan without any idea what will happen on October 31st. If the UK leaves the EU without a deal it would lose trade deals immediately - worth about 11% of total UK trade. The US already trades extensively with the UK, but is much less important to the British economy than the EU, and Kakabadse already foresees holes in prospective Free Trade Agreements (FTA) with the US. He says: “Concerning a potential free trade agreement with the US, the Americans have already made their intentions clear, the privatisation of the NHS and a focus on free trade over agricultural products and services. The American agenda is to prop up the Midwest, a deeply sensitive political issue for the US. “Other countries that have signed free trade agreements with the US have sacrificed their farming industry. Australia is a case in point. Try purchasing Australian products in their supermarkets. Its impossible.

American products have swamped the Australian market. Should a British Prime Minister sign such a deal, the same will happen to the UK.” Cont.  19

POLITICS

REPORT

Growing scrutiny The new PM’s policies are also coming under growing scrutiny as he consolidates his position. His main policy - cutting taxes for approximately three million higher earners by raising the 40% threshold from £50,000 to £80,000 – has raised eyebrows.

Boris Johnson has also proposed changes to National Insurance Contributions (NICs), which the IFS said was “probably the best thing one can do through the tax system to help low earners.” However, most of the benefit would be felt by high earners and Resolution Foundation estimates that 83% of the gains from Johnson's proposed tax cuts and NIC reductions would benefit the top 10% of households.

His core economic policy is to ditch austerity measures and he has made numerous spending promises, including rolling-out broadband in rural areas and greenlighting Northern Powerhouse Rail. As part of his manifesto, Boris Johnson has also promised better transport and communications infrastructure.

He has pledged to provide more funding for schools - £4.6bn per annum by 2022/23, reversing cuts imposed since 2015 and has vowed to back business. As London Mayor, Boris demonstrated that he can work with big businesses, helping to secure the capitals place at the top of the global charts and launching the International Business Programme in 2016. Led by London & Partners, this initiative aimed to help SMEs maximise their global business potential, playing a key role in doubling London exports by 2020.

EU leadership EU leaders have made it clear that there will be no further negotiations, and with the PM seemingly willing to proceed on regardless, one must question if he really grasps the negative impact of a no-deal on the economy? Classing the UK as a “world soft power superpower” with a focus on “free trade, freedom from oppression and freedom of thought” is all well and good, but with companies that are essential to the economy either relocating overseas or cutting back on their operations in the UK, things don’t look good.

Kakabadse believes that business has very good reason to fear Boris’s plans.

‘British business leaders’ suspicions of Boris Johnson are well founded. The man 20

is doggedly pursuing a political agenda that suits a small and wealthy minority in Britain.

The economic and social welfare of our citizens is the least of his concerns. With Johnson at the helm we are likely to become an even more unequal, disadvantaged and fragmented society.’

Brexit is predominantly seen as a risky event, yet there will be new opportunities for those that wish to capitalise on them.

The volatility of currency will favour some businesses and new trading relationships can be explored.

However, Boris needs to act fast, outlining a clear, practical direction for the UK. He needs to build a long-term vision, which drives in investment and backs business, as a foundation for a healthy, inclusive economy. Boris suggests that he can shake up a failed system, but only time will tell if he can transform into a credible international player.

Danby offers his advice to businesses whatever the next few months may bring.

"Run a tight and well-managed business, be agile if things go awry and be prepared to make tough decisions early rather than waiting too long. As always, ‘cash is king’ when there are headwinds."

President Trump likes Britain, Brexit and Boris, and by implementing tax cuts that benefit the wealthy alongside

a communication strategy that courts controversy, comparisons between the two leaders become all too easy.

No-deal considerations: • Supply chain: Determining who bears the expected additional costs and how delivery lead times will need to be adjusted will be essential considerations • Regulations: UK based businesses principally work to European-wide standards, so Brexit will have a major impact. Expect adjustment problems and increased delays to market.

• Movement of Goods: HMRC has issued instructions to businesses that trade between the UK and the EU-27, or with the rest of the world, to prepare for a nodeal Brexit • Border tariffs: At the very least there will be costs where tariffs apply There is only so long the economy can continue with the uncertainty that has become synonymous with Brexit and the CBI has warned that “no one is ready for no-deal”. How can businesses authorise new projects when they have little idea what the policy and regulatory landscape will look like from next year? To survive, businesses that buy and sell from the EU must have contingency plans in place by October. 

Issue 10: September - October 2019

Business Leader - Inspire • Inform • Connect

21

LEADERSHIP

Boris Johnson and Jeremy Hunt tell us what trust means to them Do you believe them?

T

rust. It’s a short word but a highly valuable one in the world of leadership and business.

It’s become all too common lately to hear how our trust in politicians and some of the UK’s most important institutions has become eroded.

From the banks (the UK banking crisis) to the church (Wonga anyone?), nobody has been spared.

Maybe it’s the hyper social media frenzied world we live in that has proliferated the feeling that we don’t trust those in power as much as we used to, or maybe this new world of media has just shone a brighter light to expose the failings.

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In this article BLM will look at the concept of trust in our leaders and what it has come to mean in the business and political world; and why it remains arguably the most important leadership trait.

Doing it the hard way Mark ‘Billy’ Billingham MBE is a former SAS operative and paratrooper. He’s also a successful businessman (multi-million-pound security company); former head of security to some of the world’s leading stars (Brad Pitt and Angelina Jolie) and most recently one of the stars of Channel Four’s SAS: Who Dares Wins.

Whatever he’s done, he’s done it the hard way and so knows a bit about leadership.

For Mark, trust in our political leaders have never been at a lower ebb. But they only have themselves to blame.

"THE PROBLEM I HAVE NOW WITH OUR LEADERS IS THAT IT ALL SEEMS TO BE ABOUT SELFGAIN AND NOT FOR THE GOOD OF THE COUNTRY. THIS IS HAVING A MAJOR IMPACT ON TRUST." Mark 'Billy' Billingham

Issue 10: September - October 2019

TRUST

He says: “The problem I have now with our leaders is that it all seems to be about selfgain and not for the good of the country.

“They’re looking for pats on the shoulder or to trade insults, rather than thinking about what is best for the environment, what is best for the elderly – how do we take care of our kids. This is having a major impact on trust.

“The handling of Brexit has eroded trust too. Whether you’re for it or not, the people voted, and you need to deliver it. You can’t go back on that – it’s a huge dereliction of duty. “Honesty, integrity and experience are the most common leadership traits you find in successful people and trust hangs above them all. You need it. You can’t be a leader without it.”

James BoydWallis, director at Fourteen Forty, says that he can’t remember a time when our trust has been lower in our political leaders.

He says: “It’s difficult to remember a time when political leaders have been less trusted by business and the public. From the expenses scandal and the allegations of bullying and sexual harassment to the failure to deliver Brexit, our faith in politics has been severely undermined in recent years.

“To rebuild trust, politicians must be more authentic in their communications – demonstrating both clarity and honesty.

In political discourse it is common for politicians to use ‘weasel words’ – a word or phrase that enables them not to answer the question or deny an answer later. While this is accepted among politicians, real people view it as dishonest.”

"FROM THE EXPENSES SCANDAL AND THE ALLEGATIONS OF BULLYING AND SEXUAL HARASSMENT TO THE FAILURE TO DELIVER BREXIT, OUR FAITH IN POLITICS HAS BEEN SEVERELY UNDERMINED IN RECENT YEARS." James Boyd-Wallis

Business Leader - Inspire • Inform • Connect

Uniquely British system Simon Milton, CEO of Pulse Brands, doesn’t necessarily agree though that our trust in political leadership is at an all-time low and says you need to look at how we compare with the rest of the world.

He explains: “I don’t buy the idea that Parliament is at its lowest point in terms of trust. We have a political democratic system that started in the 1200s. It is uniquely British. Yes, it is not perfect but show me a better democratic system. The issue is that we have hit an existential crisis around Brexit. Half the country believes we will be better served being part of Europe while the other half feels we will be better on our own.

It is a philosophical outlook. Neither one being right nor wrong.

“If anything, we are paying much more attention to the core principles of what builds trust and how all our great institutions should behave. We are now so much more aware of some of the shocking behaviours we have seen in some of the great institutions we were brought up to trust. So a lack of trust is now just part of the world we all operate in. The flip side of that is a massive increase in understanding and awareness. Although ignorance of what is really happening behind the scenes might be a far more peaceful place to be!”

So, why is trust such an important leadership trait?

On why trust is such an important ingredient for any successful leader, Simon says: “Trust is the foundation for any business or organisation. It is only by having trust that somebody will buy from you, talk about you and remain loyal to you. But more important for me is the question around what builds trust? And this fundamentally comes down to behaviour. Being totally transparent.

Delivering on your promises – importantly not over-promising. Being fair.

“You gain trust for standing for something and staying true to that. You need courage to ensure you don’t waver and humility to both take people with you and be clear about the challenging path being taken. It means taking care of the small things like

how you treat those who might not support you. Ultimately you get judged and earn trust through how you behave, not what you communicate.”

On the importance of trust in leadership, Sylvia Sage, Programme Director, Corporate Learning Solutions says that keeping your team safe is a key element: “In Leaders Eat Last: Why Some Teams Pull Together and Others Don’t, Simon Sinek talks about real leaders creating a circle of safety for their teams and their organisations. This is important so they can feel safe, trust each other and collaborate to manage the challenges of the external world, instead of spending all their energy fighting threats from within.

“If people trust their leaders, they can get on with their real work. Without trust and safety, people will spend all their time jockeying for position, worrying about being in favour. Performance, innovation, and wellbeing suffer – and staff turnover is high.

If you want to keep good people, look after them – keep them safe.”

James Boyd-Wallis says that without trust you can’t communicate anything to your staff or customers: He says: “Trust is important because it is the first building block in any relationship.

If trust is missing, everything else falls apart. Clear and honest communication is essential to building trust. Trusted leaders will better connect and engage with their employees or constituents. Business leaders will see a benefit on the bottom line, politicians will be more popular.”

So, with trust clearly a major building block to success, what do the men in the top jobs says it means to them?

Cont. 

23

LEADERSHIP

In their own words – what do Boris & Jeremy think trust means?

Neil Sean is a political interviewer and media training expert. From CEOs to MPs, he recently sat down with the new British Prime Minister Boris Johnson and fellow conservative runner up Jeremy Hunt and asked them 'what is trust?'

Boris Johnson “Trust is all about leadership. People have to put their faith and trust in you, to make sure that you can complete the job in hand. It’s not a difficult dynamic, but there’s many complexities. And as we’ve seen recently, trust has been broken on many levels.

“I don’t believe trust in public/business is at a low point, I think it’s all the age that we live in, and the information that’s so instantly available. When you look back at previous political giants, they didn’t have the barrage of news, social media, and public comment to deal with. I don’t believe that we’re in a low point at all.

“In order to recover trust, you have to do what I just previously said. Deliver, empower, and more importantly stick to what the electorate has asked you to do. It’s quite a simple equation, and that is my plan.”

Jeremy Hunt “As a former entrepreneur, I think you naturally have, or develop, leadership skills. Trust normally comes with success and the ability to deliver what you said you were going to do.

“Trust always hits a low point when things go wrong, but the bigger problem is how you deal with these issues. I’ve always believed in working hard, being transparent, and above all else, making sure you eventually give the result that the people requested.

“Trust, as it’s famously been quoted, needs to be earned.

And I think that we’re seeing a new era of trust being developed, and I would like to think that this question won’t need to be asked to future generations.”  24

TRUST BUSINESS LEADER COLUMNIST

Developing customer trust and loyalty; the lynchpin for long-term success

By Greg Le Tocq, the co-founder of Cloud Savings Company – which owns Vouchercloud. Groupon recently bought the business for £49m.

Trust, as the old quote says, makes the world go ‘round. Once that customer trust is gone, there are ten competitors waiting to pick up after you.

Trust, in my opinion, boils down to three things.

Provide what the customer is expecting, deliver on promises made, and act in a consistent manner. Take one of those aspects away, the whole infrastructure behind that hard-earned trust is eroded – making your business offering that much weaker.

Take McDonald’s as an example. While their products aren’t graced with a Michelin star, their food is exactly what the customer expected when they ordered (expectation). It stops them being hungry (delivering on promises), and things happen exactly the same regardless of which branch you visit – or even in which country you are visiting that branch in (consistency).

The core business focus must, at every moment, combine revenue considerations with long-term thinking.

Many businesses do not have as much of a customer focus as they think they do. Whether the focus of that business is B2B or B2C, there’s always a customer at the end of the pipeline. A common pitfall is putting revenue growth before the customer’s needs, which in turn can lead to negative interactions, bad experiences and impact overall reputation.

Developing visible, verifiable trust A key part of building and maintaining trust is to minimise the number of potentially negative touchpoints throughout the customer journey.

Another is having the ability to capture customer feedback and act quickly and effectively to resolve issues.

Reviews – both internal and external – are vital for the latter point. Sites like Trustpilot and Reviews.co.uk mean that customers can lean on social proof – word of mouth in the social media age – when making purchasing decisions. Good reviews, naturally, mean a good end-product and a good experience with the company.

However, it’s important to note that bad reviews, contrary to popular opinion, can also be a good thing. They allow the opportunity for you, as a business, to showcase how well you deal with things when they’ve not gone perfectly.

In short, competition is not limited by geographical proximity; instead by the reputation of a company, the quality of the product it offers, and their reliability in delivering on that promise time and time again.

Trust is the differentiating factor between similar businesses today, and it’s vital that brands integrate these strategies into their offerings if they are to stay ahead of the competition.

Issue 10: September - October 2019

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Business Leader is national in its coverage, with print magazines covering the South East, South West, Midlands and the North.

You can advertise in all editions to gain full national coverage or focus your content regionally.

WHAT IS THE READERSHIP OF BUSINESS LEADER MAGAZINE? The readership of the magazine is made up of Directors, CEOs and professionals in businesses that turnover between £1m and £500m.

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25

LEADERSHIP

DOING IT THE HARD WAY BLM talks to Billy Billingham

CAN YOU TELL READERS ABOUT YOUR LIFE IN THE MILITARY? I left school at 13 with no education and began working illegally in a factory on 12hour shifts at the age of 15. I then joined the army – parachute regiment in 1983 – and I believe that joining the army put me on the right path in life.

Billy Billingham spent over 20 years as a paratrooper and in the SAS. When he left, he worked in security for some of the world’s most famous people including Brad Pitt, Angelina Jolie, Sir Michael Caine, Sean Penn and many more.

He’s also a philanthropist and has run his own multi-millionpound business.

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During my nine years in the parachute regiment I was involved in several operational tours in places like Belize, Cyrpus and Northern Ireland; and in 1992 I joined the SAS and I was constantly involved in operations with them too, before I left officially in 2015.

WHAT DID YOU DO WHEN YOU LEFT THE MILITARY? When I left the military, I became head of security for Brad Pitt and Angelina Jolie. I was also a bodyguard for Russell Crowe, Kate Moss, Sir Michael Caine, Tom Cruise and others.

After the military, I was also involved in a business in Iraq that became very

successful, so I understand the corporate world and how to scale a company and the challenges this brings.

I’m also heavily involved in philanthropy around conservation and disaster relief; and I’m an ambassador to a charity called Rebuild Globally, which is run by my wife.

Most recently I have appeared on the Channel 4 tv show SAS: Who Dares Wins.

WHAT LIFE LESSONS DID YOU LEARN IN THE MILITARY? When you work for the special forces you are operating at a more strategic level and you’re privy to more sensitive information.

You realise straight away that what you do and say makes a difference. You’re telling the United Kingdom to turn left or right.

I learnt that I am here to do a job, and to do that well, you need to tell the truth and do the best you can.

I also learnt about all the work the military carry out in disaster zones and this doesn’t get talked about. People think that soldiers Issue 10: September - October 2019

INTERVIEW

are just there to kill people and involved in warfare but it’s the opposite.

Nobody asks you how many lives you have saved but everybody wants to how many lives you’ve taken. It’s a horrible, stupid question.

HOW WOULD YOU DESCRIBE THE MINDSET OF THE BRITISH MILITARY? I love the way the British military thinks because it’s all about hearts and minds. We always look at an alternative way to solve a problem, whereas many other countries don’t and take the view ‘he’s got a gun, let’s get a bigger gun’.

99% of people caught up in conflict don’t want to be there. To solve these complex issues, you need to understand humanity.

It’s about finding a solution that causes the least collateral damage.

Sometimes you need to meet fire with fire, and we’re very good at that, but it’s always the last resort.

WHAT LEADERSHIP TRAITS DO YOU ADMIRE IN PEOPLE? Honesty, integrity and experience come out at the top.

Nobody has all the answers and anybody that tells you they do is a liar. And they’re dangerous because they will take you down the wrong path.

You get lots of people in the corporate world

who talk a lot but often they don’t have the answer. Often in leadership the guy who stands up and talks a lot hasn’t really got anything to say and they get found out.

I admire people who tell it as it is and aren’t afraid to take advice from people around them and ‘below’ them. I admire the quieter leaders, who listen and give the correct advice when needed.

HOW IS THE BEST WAY TO DEAL WITH NEGATIVE PEOPLE IN A TEAM? You need to let them know they’re standing out for the wrong reason. A good way of dealing with the loudmouth who’s seen and done it all, is to punish the team around him for his behaviour and usually they sort it out amongst themselves.

But if this still doesn’t work, you just need to get rid of them.

"WHEN YOU WORK FOR THE SPECIAL FORCES YOU ARE OPERATING AT A MORE STRATEGIC LEVEL AND YOU’RE PRIVY TO MORE SENSITIVE INFORMATION. YOU REALISE STRAIGHT AWAY THAT WHAT YOU DO AND SAY MAKES A DIFFERENCE."

DO YOU THINK WE’RE BECOMING TOO SOFT IN THE CORPORATE WORLD? AND IN LEADERSHIP? Definitely. I’m very old fashioned and I’m not saying you need to shout at people for the sake of it – that’s bullying. But we’ve lost something in the UK – and that is the idea of the male role model and the impact that can have on leadership.

I’m a feminist too because I believe in equal rights and don’t understand pay discrepancies in the corporate world, but we must not erode the positive impact of male role models.

DO YOU BELIEVE THERE IS A CRISIS IN LEADERSHIP AND TRUST WITH WORLD LEADERS? Yes there is. The problem I have now with our leaders is that it all seems to be about self-gain and not for the good of the country.

They’re looking for pats on the shoulder or to trade insults, rather than thinking about what is best for the environment, what is best for the elderly – how do we take care of our kids.

The handling of Brexit has eroded trust too. Whether you’re for it or not, the people voted, and you need to deliver it. You can’t go back on that – it’s a huge dereliction of duty.

WHAT ADVICE DO YOU HAVE FOR ANY BUSINESS LEADERS GOING THROUGH A TIME OF CRISIS? As soon as the hairs start to stand up on the back of your neck for whatever reason – you’re losing finance or your reputation is damaged, just stop. Stop and re-calibrate.

Don’t let the train roll forward because you’re too embarrassed to say that things aren’t going well.

As part of this process you need to analyse every department, find out what is going wrong and be brutal – change it. You need to stand up and be counted. Often it becomes a blame game too and people don’t take responsibility.

Just be honest – get around the table, stop blaming people and get the problem fixed.

It’s important to look at why things haven’t worked and analyse this. It’s the simplest thing but companies just don’t do it. I’ve had leaders in the corporate world tell me they don’t have time to do this. Make time. 

Business Leader - Inspire • Inform • Connect

27

GROWTH

BLM FAST-TRACK

THE UK IS AT THE CUTTING EDGE OF FOOD INNOVATION – AND WE ARE A PART OF THAT Meet the American-inspired burger restaurant chain changing the industry

I

n each edition of Business Leader Magazine, we profile a UK business experiencing exponential growth in a feature called, BLM Fast-Track. This time, we profile Five Guys UK.

The food industry is in the midst of a burger revolution, with different brands and restaurants changing the image of the sector. And one of the companies that is part of this is Five Guys UK. Founded in 2013, Five Guys UK has evolved from its original American company (of the same name) to become its own business – and one of the fastest growing in the country.

The CEO John Eckbert and Sir Charles Dunstone (founder of Carphone Warehouse) helped transition the joint venture between the original American company, founded in 1986, to a new UK company.

Over the last six years, Five Guys UK has seen its revenue increase from £3.6m a year in 2013, to £23.8m in 2014, £63.3m in 2015, £86.2m in 2016, £122m in 2017, and last year they reported figures of £149.5m.

Over the same period they have grown from three restaurants to over 90 – with more on the way. The company also recently expanded into mainland Europe, with their French, German and Spanish businesses reporting combined revenues of £57.7m in 2018.

An American revolution When you think of an American food staple, burger and fries are right at the top of the list of the national cuisine.

So, how does a company in this industry leap ahead of the competition? Family values, it seems, are part of the answer.

The original 1980s Five Guys was started out in Virginia, USA, by the Murrell family, and the name originated from the five boys, or ‘Five Guys’, of Jerry and Janie Murrell.

They were built on the principle that they would use a simple menu of fresh produce cooked in plain sight of the customer.

John Eckbert

28

CEO John Eckbert explains: “If you were going to cook a burger for your mum for a Sunday barbeque, what would you do? How would you prepare and cook it? So, the first thing is to have the absolute highest quality of ingredients that you can find, and the company has never deviated from that. And to this day the family meets every Tuesday in Virginia to talk about the business. No matter where Five Guys restaurants are in the world, the Murrell’s passion for burgers and fries stays true to everything that goes on.”

Through these values, the company has grown to over 1600 restaurants in over 20 countries around the world.

British burger boom In 2011, the Murrell family thought about moving out of America, and at that time, Eckbert and Dunstone were looking at bringing a food and drink brand to the UK. Five Guys UK was the perfect blend of the Murrell’s standing within the burger community and the local knowledge to bring the business into the UK.

"THE BURGER IS NOT AT RISK OF GOING AWAY. IT IS A GREAT PRODUCT THAT IS POPULAR THE WORLD OVER. THERE WILL BE A SUSTAINED INTEREST IN VEGAN AND VEGETARIAN OPTIONS AND THERE WILL BE A GROWTH IN THE PLANT-BASED MEAT OPTIONS. " John Eckbert Following the joint venture between the Murrells, Dunstone and Eckbert, Five Guys UK made its first appearance at a restaurant in Covent Garden on the 4th July 2013.

Eckbert comments: “There was a great sense that Five Guys had a brand that could work well outside of America. If there is something that America is known for globally, burgers are one of their spears of excellence.

There has also been a long and successful commercial relationship between brands expanding from America into the UK. “The very first site in the UK, as is tradition, had no advertising about the opening. All the Issue 10: September - October 2019

FIVE GUYS

Murrells were here to witness the first order in the UK, and we were worried no one was going to come!

“Jerry Murrell was completely calm and unconcerned. He loved the location, was impressed with the crew and knew we had done the work with the supply chain.

“As it turns out, the first customer turned up at 4am, and we had a queue around the block before we had even opened. The Five Guys reputation had already spread across the world as a burger phenomenon. The UK is at the cutting edge of food innovation – and we are a part of that.”

What sets Five Guys apart in a crowded market?

Whereas many chain restaurants rely on marketing campaigns with huge budgets to get their products in the public’s eye, Five Guys do not do advertising and rely on word of mouth. This puts huge pressure on them to constantly deliver the best meal possible.

Eckbert explains: “Our entire business strategy is dependent upon the customer having a bite of our burger and fries and saying – that’s amazing! This word of mouth Business Leader - Inspire • Inform • Connect

is the key to who we are and to our growth as a business. We are entirely dependent on our customers being blown away by the quality and bringing their friends back with them.

"Burgers have often been labelled as the fast-food, mass produced, low quality food substitute, rather than a quality meal. But Five Guys burgers are different.

“The beef is grain fed and is left to mature for 120 days – this creates a critical difference in the quality of the meat. For example, less than 1% of UK meat would qualify for Five Guys meat.”

Property problems Despite rave reviews and exponential growth, the company has had to overcome some serious challenges.

America is known for its sprawling cities, with plenty of space to expand into – something the UK is not blessed with.

Eckbert comments: “Finding prime real estate is a huge problem across the UK, especially in London. This was tough for us, as we were a start-up company with no financial history. We picked some real prime

real estate sites to land the brand, both in the UK and in Europe. The issue was that these locations obviously came at a premium price, which is also tough when you are just starting out.”

Is veganism a threat?

One of the biggest trends within the food industry in recent years has been the rise of veganism and a move away from meat-based products. But, is it going to impact on their impressive growth?

Eckbert comments: “The burger is not at risk of going away. It is a great product that is popular the world over. There will be a sustained interest in vegan and vegetarian options and there will be a growth in the plant-based meat options.

“However, the Murrell family is currently looking into vegan options, and will decide whether Five Guys gets involved in it in the future.

"We will always be a beef burger concept, but if we can find the right concept to introduce a plant-based product, then we would love to give our customers that option.” 

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GROWTH

Meet 30 of the UK’s most inspiring entrepreneurs

A

s part of our growth series, over the next three print magazines we will be profiling some of the UK’s most Inspirational entrepreneurs.

In alphabetical order, here is the next instalment of our top 30 inspiring UK entrepreneurs series.

DAVID ALPERT IIAA

David Alpert is the CEO of iiaa (International Institute for Anti-Ageing). He is also an intrepid marine photographer and a fierce advocate for sustainable business practices.

He has travelled the world to photograph marine creatures – and on his travels, David has had a front-row view of the impacts of pollution and climate change.

David has taken those insights to fuel his own business transformation, setting best practice for biodegradable packaging, for example, and highlighting the dangers of greenwashing.

BEX BAND

LOVE HER WILD Bex Band is an adventurer, conservationist and entrepreneur. Bex blogs about her own adventures – which have included hiking the length of Israel and kick-scooting the length of the USA – on her blog, The Ordinary Adventurer.

She also founded and runs Love Her Wild – an online community and tour operator which empowers women to pursue adventure.

30

LORENZO BREWER NKODA

Lorenzo Brewer opted out of university to co-found a business at the age of 20. nkoda, a sheet music streaming service, works with over 90 publishers and has more than 110,000 titles available.

It has been featured by Apple in over 100 countries, garnered £6.5m in funding, and counts a former Dragon and famous drummer amongst its shareholders.

Music legends like Ludovico Einaudi have partnered with the platform. Lorenzo is at the fore of the latest music industry revolution.

SYLVIA CARRASCO GOLDEX

Sylvia first came to the UK when she was considering joining the Spanish Diplomatic Service. Instead, Sylvia entered the finance sector, where she established a strong reputation in electronic trading.

Ten years ago, Sylvia followed her entrepreneurial bug to set up Alion Partners.

Then last year, Sylvia Carrasco founded Goldex – the world’s first ethical gold trading platform. As one of the UK’s pioneering women in fintech, Sylvia is on a mission to make trading gold simple, accessible and transparent.

TOM CARRELL CYDAR

Tom Carrell became a vascular surgeon in the ‘90s – just before keyhole surgery took off. However, keyhole surgery relies on surgeons using low-quality video X-ray guidance to navigate the surgery.

Tom Carrell teamed up with Graeme Penney, an imaging scientist at King’s College London, to form Cydar in 2012. Cydar uses AI software to offer real-time, automated, 3D overlays of the patient’s anatomy to the

surgeon – reducing risk and radiation and saving time.

NEIL DALY

SKIN ANALYTICS Neil started Skin Analytics in 2012, with the goal of helping more people to survive skin cancer.

Skin Analytics uses AI algorithms which can take a dermascopic image of a skin lesion and help identify skin cancer. The company is developing advanced image processing techniques to map, analyse and manage skin lesions and provide an early warning for skin cancer.

HARRY DENNIS WATERHAUL

Harry Dennis is a marine scientist from Cornwall who founded a social enterprise to reuse ocean waste. His company, Waterhaul, uses waste plastic dragged from the ocean to create high-quality adventure products.

Waterhaul also collaborates with community groups and Non Government Organisation (NGO) removing nets from Cornish beaches and seas to produce a sunglasses range.

ELENA DIECKMANN & RYAN ROBINSON AEROPOWDER

Elena started AEROPOWDER as part of a student project and is now working on a PhD on its focus: the materials potential of waste chicken feathers.

Feathers are made of keratin, a strong and chemically resistant protein. They are also one of the lightest natural fibres and highly efficient thermal insulators.

Cont. 

Issue 10: September - October 2019

TOP 30 ENTREPRENEURS David Alpert

Lorenzo Brewer

Bex Band Harry Dennis

Neil Daly

Matt Hammond & Richard Hughes

Business Leader - Inspire • Inform • Connect

Sylvia Carrasco

Elena Dieckmann & Ryan Robinson

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GROWTH DR MARY GILLIE ENERGY LOCAL

Dr Mary Gillie is an applied physicist by training, an engineer, and Director of Energy Local. Energy Local is a social enterprise which aims to develop a new communitybased market model for local energy.

Most renewable energy is sold at a low price away from its home area, then bought back by local consumers at a steep mark up.

Energy Local aims to use smart meters and Local Energy Clubs to make the local energy market more efficient, sustainable, and affordable.

RODRIGO GARCIA GONZALEZ & PIERRE-YVES PASLIER SKIPPING ROCKS LAB

Previously, Rodrigo Garcia Gonzalez studied Innovation Design Engineering at Imperial College London and Pierre-Yves Paslier worked for three years as an engineer in packaging design at L’Oréal.

More recently, the two founded Skipping Rocks Lab in 2013. The company designs

and manufactures products made from ‘Notpla’ – the founders’ biodegradable plastic alternative made from seaweed and plants.

JOEL GIBBARD & SAMANTHA PAYNE OPEN BIONICS

Bristol-based Joel and Samantha co-founded Open Bionics in 2014 with the goal of making advanced prosthetics affordable and accessible.

Having won a slew of awards, Open Bionics creates lightweight and affordable bionic limbs for adults and children. Their 3D printed Hero Arm project has also partnered with Disney to create prosthetic covers for children inspired by favourite characters such as Iron Man.

MATT HAMMOND & RICHARD HUGHES HANDY HEROES

Matt Hammond and Richard Hughes worked as Royal Marines for seven years before leaving the armed forces. They each bought

and renovated their own houses before teaming up in 2013 to found Handy Heroes Construction.

Handy Heroes is based in London and primarily employs ex-military tradesmen.

Londoners in need of construction work can tap into a talented, highly-disciplined pool of workers, and tradesmen leaving the military can transition smoothly into employment and keep a sense of community.

JAMAL HASSIM BOLT

Global tech entrepreneur Jamal Hassim co-founded BOLT with Twitter’s former Head of Content, Christel Quek. The UK-Singapore company rivals Netflix and Amazon Prime in emerging markets.

BOLT targets first-time internet users who mainly access the internet via their mobile phones. The platform is tailored to provide a good streaming experience for mobile devices, and facilitates original content, empowering underprivileged creators.

DR STEPHEN HICKS

OXSIGHT/SMART GLASSES Dr Stephen Hicks started OXSIGHT from his lab at the University of Oxford.

OXSIGHT designs and creates smart glasses to improve the vision of people with peripheral vision loss.

Joel Gibbard & Samantha Payne

OXSIGHT’s smart glasses can help people with a range of conditions, including glaucoma, degenerative eye diseases, and visual impairment caused by a stroke. OXSIGHT glasses are fitted with cameras which stream a live feed into HD video displays.

ANNA HILL

RIVER CYCLEWAY CONSORTIUM LTD Anna Hill is the Co-Founder and CEO of River Cycleway Consortium Ltd. (RCCL), a design innovation company that comes up with solutions to environmental and social challenges of urban areas.

Rodrigo Garcia Gonzalez & Pierre-Yves Paslier

Jamal Hassim

Most famously, the RCCL has envisioned water-based floating access ways – such as the hypothetical Thames Deckway project.

DR SHAKARDOKHT JAFARI TRUEINVIVO LTD

After growing up in Afghanistan, Shakardokht worked as assistant lecturer Dr Stephen Hicks

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Issue 10: September - October 2019

TOP 30 ENTREPRENEURS James Longcroft

Cecily Mills

Gynelle Leon

in the Kabul Medical University and as a Radiology Department Supervisor in the French Medical Institute for Children (FMIC) in Kabul. Shakardokht came to the UK in 2010 on an International Atomic Energy Agency scholarship to be trained as a clinical scientist (Medical Physicist).

Shakardokht is now the Founder and CTO of Trueinvivo Limited – a company which uses strings of simple glass beads to save the lives of cancer patients.

GYNELLE LEON PRICK

Gynelle Leon founded London’s first-ever shop dedicated to cacti and succulents.

Easily confused with an art installation due to its minimalist design and individually displayed plants, the shop has become a cult hit with visitors travelling from miles around.

Gynelle is not just jumping on a trend, however. Having first had the idea for PRICK whilst working in a florists, she sold her flat, gave up her job and conducted a year of research before opening the shop in July 2016.

JAMES LONGCROFT CHOOSE WATER

A standard plastic water bottle will take an estimated 450 years to degrade. That essentially means that all the plastic that has ever been produced – whether recycled or not – is still in existence on the planet.

Scottish inventor James Longcroft has Business Leader - Inspire • Inform • Connect

invented a disposable water bottle that biodegrades in saltwater within three weeks.

STEVE MCCULLEY LIOS BIKES

Steve McCulley served as a Major in the Royal Marines for 17 years before an IED in Afghanistan left him in a coma in 2011.

During the three-year recovery and rehab process, Steve came up with the idea for LIOS Bikes.

With LIOS Bikes, Steve uses a 3D motioncapture fitting system to measure each client while they cycle on a static machine in front of him. This results in tailor-made bikes specific to each individual.

CECILY MILLS

COCONUTS ORGANICS Cecily Mills left a high-powered City job to found a vegan ice cream brand in Cornwall.

After cracking Dragons’ Den, Cecily walked away from the investment to crowdfund a far larger sum – and to supply over 600 Tesco stores across the UK. Cecily aims to make Coconuts Organics a household name – and her ice creams have already won several foodie awards. She has also commissioned a university study into options for sustainable ice cream packaging.

DANNY MILLS Footballer Danny Mills played for Leeds and England, racking up 19 senior international caps including the 2002 World Cup.

Since leaving football, Danny Mills has worked with Endless LLP & Enact Private Equity as a Board Advisory Member. He was key in saving the West Cornwall Pasty Company from administration, in a deal which provided more than five times the return to investors.

ELLA MILLS

DELICIOUSLY ELLA Ella Mills started her food blog, Deliciously Ella, when she was still in university. It was 2012, and a year earlier Ella had been diagnosed with Postural Tachycardia Syndrome.

Ella turned to a plant-based diet to get her life back on track. By overhauling her diet and lifestyle – as documented in the recipes on her blog – Ella was able to manage her illness and lead a normal life.

PAE NATWILAI UTOOMPRURKPORN GETTRIK LTD

Pae is an innovator, technologist, designer, engineer, and CEO and founder of Gettrik.

With Gettrik, Pae has created an enterprise software solution, TRIK, that allows efficient use of drone photography for structural inspection. TRIK can be used to survey some of the hardest to reach structures, including bridges, pylons, wind turbines, roofing, rail, and construction sites.

Cont.  33

GROWTH HELEN NEWCOMBE DAVY J

Another circular economist and marine entrepreneur, Helen Newcombe is founder and director of Davy J. The company manufactures and sells high-performance swimwear crafted from repurposed marine waste.

Davy J estimates that an average of 640,000 tonnes of fishing nets are left in the oceans every year (c.10% of all marine litter) – and every tonne of waste nets can create more than 10,000 swimsuits.

AYESHA OFORI Ayesha Ofori had a successful career in banking before she set up her own property business, Axion Property Partners. Whilst juggling a new business and a two-yearold, Ayesha also founded two community networks – Black Property Network and PropElle.

Ayesha’s networks aim to empower women and the black community to build wealth and financial independence through property investment.

TOP 30 ENTREPRENEURS Alex and Charlie founded Soldier in Blue to supply the film and television industries with extras who'd previously served in the military. The ex-servicemen and women are given a route into a creative career, and production companies get authentic military experience and advice.

GABI SANTOSA & HENRIK HAGEMANN CUSTOMEM

Gabi and Henrik studied together at Imperial College London before co-founding CustoMem. CustoMem uses a unique biochemical engineering process to create biomaterials optimised to capture pollutants from water.

Global freshwater reserves are increasingly polluted due to persistent hazardous chemicals that remain in wastewater after treatment methods. This leads to increasing water stress, predicted to affect 47% of the world’s population by 2030.

HIROKI TAKEUCHI GOCARDLESS

Over time, the founders parted ways and Hiroki became CEO in 2015.

Hiroki had only been married for three weeks when he suffered a cycling accident in September 2016. He collided with a car, crushing his spinal cord and leaving him paralysed from the waist down.

Hiroki did not let his accident set him back.

He was back at work within three months – and has been growing the company ever since.

STEVE WHITE-COOPER ADD-VICTOR

Steve White-Cooper played professional rugby for five years, both for the Harlequins and for the England national squad. Steve left sport and entered the corporate world before founding a recruitment agency in 2012. add-victor specialises in connecting employers with sports people looking to re-enter the workforce, helping employers to find top talent and sports retirees to find good jobs despite their unusual resumes. 

Hiroki Takeuchi co-founded GoCardless with Tom Blomfield and Matt Robinson in 2011.

TOM PELL & JEANETTE WONG THE CLEAN KILO

Tom Pell and Jeanette Wong did not come from business backgrounds but were driven by passion for environmental conservation to open Birmingham’s first plastic-free, zero waste supermarket.

Their crowdfunding campaign launched just after Blue Planet II aired, and increased public awareness of plastic pollution meant they smashed their £14,607 target to raise £20,459.

Ayesha Ofari

Helen Newcombe

Since opening in 2018, The Clean Kilo has gone from strength to strength, and recently won a FedEx Small Business £20,000 grant.

CHARLIE ROTHERAM & ALEX RAWLINS

Hiroki Takeuchi

SOLDIER IN BLUE

After leaving the Armed Forces, Charlie Rotheram and Alex Rawlins appeared in Les Misérables as soldiers. The pair quickly realised that the other extras on set had no idea about military life and practice – and they saw an opportunity.

34

Steve White-Cooper

Issue 10: September - October 2019

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35

FEATURE

HOW DO YOU SCALE-UP THE SCALE-UPS?

T

raditionally forgotten, companies that are defined as ‘scaleup’ are now at the heart of the conversation in the UK – with government and industry trying to create an infrastructure that supports their growth.

As part of Business Leader’s scale-up series, this feature will look at how we can continue to support these businesses in the UK to help them grow even faster.

Marion Bernard, who is a board member at Funding London, says that the challenges scale-up businesses face are unique: “Scale-ups are usually looking to plan their expansion over the medium to longer term, and the single most important aspect of this is access to finance, and specifically finance 36

that can be both patient and able to adapt to the inevitable changes to the plan that will occur over time.

“Fortunately, there are wide-ranging sources of capital available, and scale-ups should be able to identify a funding provider that matches their specific needs. The other main challenge is recruiting the right people to drive the growth of the business. It can be very useful for scale-ups to have access to the networks and expertise that some finance providers can unlock.”

Henry Whorwood, who is an analyst at Beauhurst agrees that accessing finance is a key barrier that scale-up companies come up against.

He says: “The SME Finance Monitor has found that nearly half of all SMEs and scaleups are "permanent non-borrowers". That is, they aren't and don't plan to use finance to

fuel their growth. This aversion to funding is reflected in the data on funding levels.

"But initiatives such as the British Business Bank's Finance Hub are starting to make an impact – it will be vital to continue these campaigns. Educational initiatives like these take a long time to move the needle.”

Equity investment into scale-ups Regarding levels of equity investment into scale-up businesses, Henry also says that the picture isn’t as rosy as it could be.

He says: “Put bluntly, equity investment into the UK's visible scaleups is not increasing. £3.6bn was invested into visible scaleups in 2017, which fell to £1.7bn in 2018. This is partly due to quite a few megadeals (or even gigadeals, if you like) in 2017.

"But it also reflects a decline seen at investment across all stages. The good news Issue 10: September - October 2019

SCALE-UP

Marion Bernard Funding London

is that there's been a bit of a bounce-back in 2019, which could end up being a record year.

“The top investor (since 2011) into visible scale-ups is BGF. Followed by Draper Esprit, Index Ventures, Accel and (perhaps inauspiciously at the moment) Woodford.”

So, with access to finance being a top barrier to growth for scale-ups and funding levels not increasing – this could represent the emergence of a challenging chasm for UK businesses.

On the wider issue of what else can be done to support scale-up companies, Marion says: “Scale-ups are already well-established businesses who continue to need support from leaders, the business community and government. A typical scale-up is looking to grow rapidly and there is an element of risk when this happens, so all leaders can play their part in reducing that risk by providing an environment that allows scale-ups to plan with confidence.

"SCALE-UPS ARE USUALLY LOOKING TO PLAN THEIR EXPANSION OVER THE MEDIUM TO LONGER TERM, AND THE SINGLE MOST IMPORTANT ASPECT OF THIS IS ACCESS TO FINANCE." Marion Bernard

“The greater the certainty, the more likely it is that the scale-up will be able to complete its growth plan successfully. From a commercial perspective this means agreeing long-term Business Leader - Inspire • Inform • Connect

Henry Whorwood Beauhurst

Rob Perks Inspire

Gordan Fletcher Salford Business School

relationships and avoiding unnecessary short-term shocks. Government can help by adopting policies that allow scale-ups to plan with confidence and by resisting the temptation for sudden legislative or fiscal change."

“Access to relevant skills is also still very difficult and the more that could be put into understanding the needs of scale-ups and joining that up with Universities or HE Colleges, so that courses are promoted and designed with these needs in mind.”

Marion continues: “Scale-ups are also usually looking to plan their expansion over the medium to longer term, and the single most important aspect of this is access to finance, and specifically finance that can be both patient and able to adapt to the inevitable changes to the plan that will occur over time.

DR Gordon Fletcher, who works at Salford Business School, agrees with Rob that ‘people’ are one of the main challenges scale-ups face.

“Fortunately, there are wide-ranging sources of capital available, and scale-ups should be able to identify a funding provider that matches their specific needs. The other main challenge is recruiting the right people to drive the growth of the business. It can be very useful for scale-ups to have access to the networks and expertise that some finance providers can unlock.”

People problems Rob Perks, who is CEO at business support organisations Inspire, echoes Marion and Henry in respect to the challenges that scaleup firms face, but also believes that people are at the forefront.

He comments: “Is it property, raising finance, skills? Finance and skills remain the top two barriers we encounter. Banks are still reluctant to lend to these high growth businesses unless they have an established track record in the market. By their nature these are often innovative businesses coming up with new products or services and so do not have three year track records of success to point to.

He says: “Our research constantly points to the challenge of finding and retaining the "right" people within scale-ups. It is not just the right set of skills but having an affinity and compatibility with the organisation itself.

"Scale-ups have already set out on a strategic direction of travel and this journey to resonate with those already in the business as well as those essential new appointments that support continued growth. Alongside the culture issues, the challenge of getting the right fit in terms of skills also presents some challenges for recruitment.

“The challenge of bringing onboard the right talent is also felt at the leadership level. Rapid growth generally requires new management appointments including Non Executive Directors (NEDS) and finding people who can bring the right mix of knowledge and cautious innovation that aligns with a scale-up's own pace is another prized skill-set.”

Can government do more?

With the challenges clear, what more can government and other agencies do to provide an environment where scale-ups can flourish?

Cont.  37

FREATURE SCALE-UP

Rob says that connectivity is key. He says: “Central marketing of all the endorsed scale-up programmes relevant to the area in which the business is based. Currently, each programme has to try to locate and engage with the business which means many are not identified or found. This could be done through the LEP or Growth Hub networks.

“More needs to be done to identify and refer on to scale up programmes. Programmes are not sufficiently joined up and the growth hubs are the obvious mechanism for this. Central marketing through the national helpline at the Business Energy and Industrial Strategy Dept could also refer to local programmes of support.”

NEWS

Number of scale-ups in UK rises but action is still needed to address regional disparities, says Irene Graham

Dr Fletcher says that formal recognition from government could make a positive difference. He comments: “As with many business classifications there is a need for a formal recognition of scale-up status. This would support the businesses on this trajectory in a number of ways.

“A formal classification enables government policy (including policy making at the levels of devolved and combined authorities) to be made that supports this category favourable and for formal reporting of the impact made by scale-ups in the overall economy. Formal recognition would also better support raising finances for scale-ups from traditional banks and venture capital as well as other sources of funding.”

Comparison with overseas With a movement and eco-system clearly developing around scale-ups in the UK, it’s interesting to consider how the scale-up economy here compares with the rest of the world.

Gordon says: “It does depend on how you measure success but the majority of measures the UK is the best in Europe for scaleups. Along with France, Germany and Sweden there is evidence for real capability in achieving high year-on-year growth.

Perhaps not surprisingly London, Paris, Berlin and Stockholm are the key scale-up hubs in Europe.

“The UK compares favourably on the world stage too with only the USA, China and India having greater scale-up investment.

Given the differences in the size of the economies between these four countries, the UK is really a global hub for scale-up (and an even stronger argument for supporting their formal recognition). Technology and scale-up go hand in hand in the UK. A third of Europe's technology unicorn companies were created in the UK and 80% of the UK's £6bn technology investment was acquired through scale-ups.”

Irene Graham, ScaleUp Institute

The number of high-growth, scaling businesses in the UK increased to a record 36,510 – a 3.7% increase over the previous year – according to the ScaleUp Institute.

The figures are drawn from the most recent ONS data, covering 2017.

This means that the economy added 1,300 companies going through a

period of rapid growth.

The national number of scale-up companies, who are defined as those which have grown their turnover or employment by more than 20% annually over a three-year period, has increased by more than one third over the past five years.

There are 35% more scale-ups than in 2013, compared to GDP growth over the same period of just 9%.

Scale-ups generate more than £1.3trn in combined turnover.

This is up 34% on 2016, and compares to a turnover of £1.9trn by all SMEs combined. They employ approximately 3.4 million people across all sectors and areas of the UK economy.

“Scale-ups are the engine drivers of local economies,” said Irene Graham, CEO of the ScaleUp Institute. “They are twice as innovative as large firms, employ twice as many apprentices, are twice as likely to be operating in international markets, and, significantly, they create high quality jobs. On average, scaleups are 42% more productive than their peers.

“Their aspirations remain high. According to our recent Scaleup Survey, eight out of ten expect to scale again in 2019, generating £1.5bn more in turnover and creating an extra 7,000 jobs.”

She concluded: “Scale-ups continue to face major challenges on five fronts: gaps in talent and skills, access to markets at home and overseas, opportunities to develop leadership, a need for more funding and a lack of flexible infrastructure.

“This latest data reinforces the need for continued concerted efforts at a local, regional and national level to address scaling challenges, so we are able to meet the Brexit headwinds ahead and achieve sustainable scale-up growth."

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Issue 10: September - October 2019

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39

INTERVIEW

CEO IN FOCUS:

HEATHER FRANKHAM WHAT IS ORIGIN WORKSPACE? Based in the heart of Bristol, Origin Workspace is a flexible co-working space that has created a collaborative environment for start-up and scale-up businesses in the region. The office is designed to inspire entrepreneurs, business professionals and companies to create a community of growth and success.

Built on the belief that everyone can thrive if given the positive benefits of the right environment, Origin promotes flexibility and wellness – including its own on-site gym and rooftop terrace overlooking the city. Also, within the office are meeting rooms for up to 20 people, a members’ lounge and a large events space.

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B

usiness Leader recently interviewed Heather Frankham, founder of Origin Workspace and Bud Systems, chair of Paragon Skills, advisory board member of Coach Call, committee member of Prince’s Trust and director of BPEC, to talk about her business journey.

CAN YOU GIVE OUR READERS AN OVERVIEW OF YOUR CAREER SO FAR? I started life as a sports and maths teacher, spending three years teaching in a primary school, and then a year in a secondary teaching sport, whilst completing a masters in exercise and health science.

From there I had various jobs in order to pay the mortgage. For example, I started teaching aerobics in the evening. I then became more involved in the fitness side and was asked to coach aerobics courses.

I was then approached to look into the Redwood Lodge Fitness Club facilities in Bristol. They were refurbishing their gym, as David Lloyd was opening down the road and they were worried about losing members.

As part of this process I advised them on upgrading their facilities.

While I was teaching aerobics at the venue, the Director of Leisure questioned me about what was needed. He then asked me to oversee the whole regeneration project.

This was an amazing opportunity for an exteacher.

Issue 10: September - October 2019

CEO IN FOCUS WHAT WAS THE CAREER PLAN WHEN YOU STARTED? My parents wanted me to be a doctor or a lawyer – so when I was a PE teacher, I think they were disappointed. I ended up wanting to go into the leisure industry because it was an exciting time with a lot of growth and innovation within it. I fell into the training side of it due to my history, and it then evolved into a lifestyle business. Lifetime grew slowly – it took about ten years to reach 20 staff, but then five years later, we were around 400. It was a phase of rapid growth.

Your business journey has seen you work as a sole trader, right through to leading a scale-up into an established company employing over 1000 staff. What have been the main highlights and challenges?

The most difficult part was the growth from one to thirty staff at Lifetime, as you do not have the professional infrastructure in place. I had never run a business, my family had never run a business, and we were not well-networked in Bristol. I had to learn as I went along.

Managing finance and cashflow was also a huge challenge, as at the end of every month, we had the same worry of not knowing if we had enough cash to pay salaries and bills. During that time, I remortgaged my house three times – and luckily the house prices were going up. If they didn’t, the business would not have survived.

It was an exciting early career in business.

Following this, I then set-up Lifetime in the mid-1990s, which was an apprenticeship and skills training business that helped over 1,000 people deliver training to the fitness and hospitality sector. I then sold the business in 2016.

During that time my mum also died, so it was a difficult time for me. I didn’t know if the business would continue, and we nearly

closed. She left me £10k and I spent £1k of it on a holiday – something I would never normally do. I went away to St Lucia on my own, with six books – though I only ended up reading about six pages. I met some amazing people, and on the way back I realised that I needed to do my best – if it goes wrong, then it goes wrong.

Luckily things started to change, and although we had the same challenges, I put the rest of the money into the business to keep it ticking over. We had a lucky break when the funding changed. We used to get paid a month and a half after the end of the month – this was then changed to half a month after delivery. It created that window of opportunity for the business to grow. It helped our cashflow issues. I also took an MBA through the Open University to help with creating a strategic plan. The combination of these two elements helped to make the business a success.

HAVE THE DIFFERENT ROLES AND CHALLENGES MADE YOU A BETTER BUSINESSPERSON? Absolutely. There were different phases of the business. We went from trial and error, to trying to stay a step ahead, to creating a future-proof strategy. We had four different board of directors, as the business kept outgrowing the capability of the people in there. That made me question – when do I run out of capability? What you then realise is that you need to bring good people in.

I learnt to never be frightened to employ people who are more capable than you in certain areas of the business.

Cont. 

"YOU MUST BE RESILIENT AND LEARN TO TAKE THE KNOCKS WHEN THINGS DO NOT GO WELL. TAKE A LITTLE BIT OF TIME TO REFLECT. THAT IS THE BEST TIME TO PULL YOUR TEAM TOGETHER, AND TO PROJECT POSITIVITY TO THE TEAM ON THE DIRECTION OF THE BUSINESS." Business Leader - Inspire • Inform • Connect

41

INTERVIEW

CEO IN FOCUS

CONSIDERING WHAT YOU KNOW NOW, WHAT ADVICE WOULD YOU GIVE TO YOURSELF STARTING OUT? You must be resilient and learn to take the knocks when things do not go to plan. It is important to take a little bit of time to reflect.

That is the best time to pull your team together, and to project positivity to the team on the direction of the business. Reflection means that you can direct your energy into the right areas of the business. This means that planning and talking to your team can mean that they buy in to the future. To successfully scale-up, you need to take them on the journey with you.

WHAT IS THE FUTURE VISION FOR ORIGIN WORKSPACE? It is all about creating a community. When I was at Lifetime, there were two things that made it successful – tech and culture.

Having that energy in people and support structure is increasingly important if you are looking to scale. That is what I want Origin to be – to create this incredible community atmosphere in the building. By having this, it encourages these businesses to take the right risks, while having that support there for them. The community then create an eco-system of support for these businesses, and then we facilitate that.

YOU’RE ALSO AN INVESTOR – CAN YOU TELL READERS WHAT YOU LOOK FOR WHEN INVESTING? There are two main points to consider.

Have they got the right product market fit?

And, is the market big enough? There are some fantastic ideas that often come up, but the size and access to the market has

often not been thought through. But for the right investment, you need to have the right people. You need to get on with them, especially in the early stages. They have got to want more than a cheque at the start of the business.

As an investor, you do not want to be held at an arm’s length, especially if they are to need follow-on investment and guidance.

The success of the business is built up over a length of time, and it is more about establishing a relationship together. Success is built on that association, not just the funding. The more open you are, the more likely you are to be able to solve any issues that a business can face. Solving problems together will lead to success as a team and often it is achieved a lot quicker as well.

Entrepreneurs who are open to support and advice, as well as funding, are the ones I want to invest in. 

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WHAT IS LIFETIME? Established in 1995, Lifetime is an apprenticeship and skills training company, which delivers training to the fitness and hospitality sector. Its founding principles were to support individuals and businesses to perform better through specialist training. Lifetime offers apprenticeship programmes, recruitment services and training programmes, which have helped thousands of individuals improve themselves and the sector as a whole.

The company has now expanded its offering into retail, business management, childcare and teaching. Heather left the business in 2011, having led the company through incredible growth to become the leading apprenticeship provider within the industry.

Issue 10: September - October 2019

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GROWTH

HOW TO LAUNCH YOUR BUSINESS IN THE

NETHERLANDS F

or our latest business trip feature where we look at the UK’s most interesting export markets, Business Leader gives you an in-depth look into everything you need to know about doing business in The Netherlands.

As the sixth largest economy within the European Union and the continent’s leading transportation hub, The Netherlands has built a strong reputation for international business.

The country is the world’s eighth largest export/import nation, with international trade last year totalling £780bn (£380bn export; £400bn import); and with over 90% of Dutch nationals able to speak English, the country is considered a key player in international trade.

Britain is The Netherland’s third biggest import market, after Germany (£74.1bn) and Belgium-Luxembourg (£53.2bn), with a total of £38.7bn worth of business.

Anglo-Dutch relations With over 17 million inhabitants, The Netherlands is smaller than a lot of the UK’s major European trading partners.

However, due to the two respective nation’s extensive global reach over the last few centuries, they have naturally been both economic and political rivals and partners at different points throughout history.

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Phil Smith, Managing Director of Business West comments: “Historically, the business relationship between the UK and Holland has been strong. The Dutch view the UK as one of its closest trading partners. Apart from its neighbours Belgium and Luxembourg, the UK and Holland are remarkably similar in terms of business culture and geography.

“Historically, the Dutch and the Brits have been economic rivals, although the formation of Royal Dutch Shell was something of a watershed moment in that regard. In more recent times, Holland has been a key ally of Britain in Europe, particularly on economic issues.

“Like the UK, Holland is economically liberal, meaning that it favours low taxation and seeks to minimise red tape.

The fact that London Heathrow and Amsterdam Schipol are the two busiest airports in Europe demonstrates their kindred ‘open for business’ world view.”

This outlook is in contrast to the more protectionist policies of the French and Southern European nations.

As a result, the UK and Holland are part of a more liberal economic pact, which has sought to gain influence over the remaining EU member states.

It is the liberal likeness that has led to many UK companies making the move onto the continent through The Netherlands – many of whom are making their first foray into international trading.

Michael Nord, Client Relations Director at change management and communications firm, Fifth Business, believes that their business has benefitted greatly from the relationship between the two countries.

He said: “With the majority of Dutch business people having a good working knowledge of the English language and of British culture, doing business in Holland is relatively easy. The two countries have a similar mentality and the many daily Issue 10: September - October 2019

INTERNATIONAL TRADE

flights, trains and ferries make it easy for Dutch business people to connect with colleagues and partners in the UK.” Another company that benefits from the close business bond between the countries is finance broker, Funding Options. CEO Conrad Ford comments: “One of the reasons we chose the Netherlands as our first international market is the strong similarities with the UK. "The culture and economy have proved remarkably similar in practice, and of course the Netherlands is easy to get to. Where else in Europe could you present in English at a local conference, and know that everyone will understand you? Not even Scandinavia!”

Business Leader - Inspire • Inform • Connect

Key sectors and opportunities The Dutch government has identified nine ‘top sectors’ which show strong performance with regards to export and R&D investments.

These are agriculture & food, energy, life sciences & health, chemicals, tech & manufacturing, horticulture, creative industry, logistics and water & maritime.

However, many other sectors have become increasingly prevalent in recent years, especially in financial services, oil & gas, energy and transport.

Juliette Kuiken, Senior Trade Advisor for The Netherlands at the Department of International Trade (DIT) commented: “With low employment, a stable housing market and an affluent

population of 17 million people, the country is an attractive place for UK products and services. In the last financial year, UK exports to The Netherlands totalled £44.2bn while UK imports from TheNetherlands were £51.4bn.”

In recent years, one of the emerging partnerships between the nations has been in the tech sector, and more specifically around the growing issue of global cybersecurity.

One of the UK’s leading companies in this field is Hexegic, who have a strong working relationship with The Netherlands.

Cont.  45

GROWTH

INTERNATIONAL TRADE

Director George Patterson comments: “There is a huge level of support in The Netherlands for UK companies looking to expand into the country. Our experience in The Hague has been an overwhelmingly positive experience. The UK Embassy hosted our launch and the start-up ecosystem is very generous and welcoming. Shared values have made our interaction with Dutch partners very productive.

“Both nations possess world-class institutions addressing the increasing cyber threat – there are National Cyber Security Centres in both countries and Hexegic works closely with them. We are certified by the UK NCSC to conduct cyber risk assessments and are working closely with Dutch companies to counter the threat.”

All of this demonstrates that there are a wide range of opportunities for business of all sizes and sectors. Also, due to the cultural and business administration similarities, there is very little time wasted on procedural and logistical issues.

Lesley Batchelor OBE, Director General of The Institute of Export and International Trade commented: “The Dutch help facilitate a lot of trade for the UK, and in turn they also sell a lot of items into the UK, including flowers, food and many other items. A lot of companies in Europe go through Holland to get into the UK market, almost as a gateway to ship to and from the UK. One of their greatest strengths is their logistics and organisational prestige – they are known for it across the continent.

“The Dutch view the UK as a very lucrative market, and there is a mutual feeling that it is easy to work together – the two countries have a very similar culture and English is universally spoken. It is like doing business in our home market.

They have a lot of cross over with our key sectors like engineering, tech, manufacturing, as well as their historic trade of flowers, food and financial services.”

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Has Brexit impacted the relationship?

There have been aftershocks from the Brexit epicentre, with the Dutch, like many other EU nations, wondering where their trade future with Britain will stand after the October 31st deadline.

Many commentators on both sides of the debate have had their say, but as it is with politics, no one can be certain until the deal is signed and all parties know what they are really dealing with.

Despite this, businesses and trade bodies are remaining especially positive for the future of the trade relationship.

Batchelor explains: “There have always been opportunities between the UK and Holland, and Europe as a whole – it has always been that way, and always will be.

Holland and the Benelux region as a whole have always historically been one of the UK’s strongest trade partners, and that will always continue to be the way forward.

“We will have to put any political issues and Brexit aside and accept that businesses wants to do business – and that both countries just want to get on with it. It is hard to say if Brexit has had an impact on the relationship – I think both countries are a little confused about the situation we are currently in, and what to do and how to manage it, but on the whole I don’t see any issues arising from it. Both sides know that Europe is not the UK’s only market, and so getting

on with business and continuing the strong relationship is important for both countries.”

It isn’t just the fact that businesses want to do business – but both countries want to increase their successful collaboration together.

Nord comments: “The Dutch have always been anchored in the European community, and as co-founders of the Coal and Steel Union which became the European Union, they know their biggest markets, Germany, Belgium and France, are important. They have also been the bridge builder to the British, and have welcomed them into the EU, which of course has made trade relations easier.”

It is this issue that will be the big debate over the next few years. Companies like Panasonic and Sony have recently moved their European HQ out of London and into The Netherlands – along with 250 more, according to the Dutch government.

Smith concludes: “Amsterdam has been proactive in trying to attract firms disaffected with the political situation in the UK. This won’t have gone down too well in Westminster, given that the likes of the Discovery Channel, Sony and Bloomberg have all upped sticks. The global trend towards protectionism is a concern. As far as business goes, we enjoy an incredibly healthy trading relationship and long may that continue.”  Issue 10: September - October 2019

HR

Is employee ownership the future of business?

I

n recent years, there has been a sharp rise in the number of businesses that have transitioned into a form of employee ownership, giving the staff a larger stake in the future of a company.

BLM looks more into this topic.

There are a wide range of reasons for this transition, but what are the benefits? How is it implemented? And, is it right for your company?

Historically, when a founder or shareholders are looking to move on from the company, there were a few options open to them; a trade sale, management buy-out (MBO) or asset-strip and dissolve the business. But now, companies are looking to employee ownership to safeguard the future of the business they have helped build.

Why should you consider employee ownership?

In 2018, the Employee Ownership Association (EOA) and the University of Leeds released two reports where it was revealed that there has been an 18.5% increase in the number of employee-owned firms, when compared to the previous year.

The sector has grown 62% since 2014 thanks to the introduction of Employee Ownership Trusts, and it now contributes over £30bn to UK GDP and employs 200,000 staff across more than 370 businesses.

Top sectors include professional services (50%), manufacturing (17%), wholesale & retail (9.8%), and health & social care (8.4%). The top five regions for employee ownership are London (25%), Scotland (16.5%), South East (11.1%) South West (7.6%) and Yorkshire & The Humber (7.6%).

So, why are these companies making this transition?

There have been some notable companies making the move to employee ownership in recent years, including household names like Aardman, Lush Cosmetics and Richer Sounds.

Cont. 

Business Leader - Inspire • Inform • Connect

47

Christian Wilson

HR

Christian Wilson is a partner and head of the corporate team at Stephen Scowns LLP, a law firm that itself went through a successful employee ownership restructure, and now is an expert advisor on the matter.

He comments on the success it has had at major companies in the UK: “If you look at some of the big employee-owned companies, John Lewis, Aardman and Richer Sounds, you’ll find that employee engagement is at the heart of their business. The owners want to make sure that the employees are the future beneficiaries of the business once they have left and moved on, so that they can develop the business in the way in which it was intended.

"EMPLOYEE OWNERSHIP IS A GREAT IDEA. IT MEANS A SIGNIFICANT AND MEANINGFUL STAKE IN A BUSINESS FOR ALL EMPLOYEES. IT CREATES SUCCESSFUL BUSINESSES IN WHICH EMPLOYEES ENJOY WORKING AND WHICH DELIVER WIDER BENEFITS." Graeme Nuttall

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“If you look at what is going on in the business world at the moment, there is a lot of concern about why we are in business.

Purpose and empowering employees is the cornerstone of modern business, not just about profits. This is what employee ownership is all about.”

flexibility to how employee ownership can operate. This means that it can give you the opportunity to get employee ownership to fit into your culture, as opposed to getting your business to fit into the old employee ownership structure. That was the significant change.

The Nuttall Review If there has been such a positive response to employee ownership, many would be excused for questioning why it hasn’t been commonplace in the business world for the last few decades.

“Prior to that, it was restrictive and one size fits all – now it is about tailor making it to your business. The pros of this are that you can now safely safeguard the future of the business through employee ownership in what the business feels are the right hands.”

The UK’s largest independent audio and TV retailer, Richer Sounds were one of the pioneering employee ownership businesses, and had been interested in transitioning to employee ownership for a long time. However, it wasn’t until the 2012 Nuttall Review that their ambitions could become a successful reality.

Graeme Nuttall, who was the Government adviser on employee ownership for the review explains: “Employee ownership is a great idea. It means a significant and meaningful stake in a business for all employees. It creates successful businesses in which employees enjoy working and which deliver wider benefits.

Up until May this year they were completely owned by Julian Richer, and then he transferred 60% of the business into employee ownership.

"The longevity of companies with employee ownership is impressive. Employee ownership is an adaptable concept and whatever the business or the stage a business has reached, employee ownership can work well.”

David Robinson, MD of Richer Sounds comments: “We looked at employee ownership in the past, and it was quite restrictive. What then happened was the Nuttall Review, which gave so much more

The review showed the government's desire to see employee ownership in the mainstream of the British economy. There Issue 10: September - October 2019

EMPLOYEE OWNERSHIP

Barry Horner

Graeme Nuttall

years and nearly 70 employees.

And then we grew from two founders to wanting more people to have shares, and a few of those were people heading towards retirement. That caused us to look at other options, from trade sales to everything else you go through in that process.

has been all party support for many years, and successive governments have promoted the ideas of the review.

It also encouraged employees to acquire shares through tax advantaged share plans – a popular benefit from employee ownership.

As long as the business is 51% owned by the trust, there is no capital gains tax to pay. That legislation has helped a lot of people have a highbred trust between employee-owned and traditional shareholder(s), like Richer Sounds.

“We then found more about employee ownership and it was the perfect fit for the firm, for when it comes to culture and to maintain the legacy of what we have built.

The main advantage is the ability to give employees the sense that they really do own the business. They might not have share certificates but between them, they do now own 80% of the shares of the company. They now have a genuine right to influence information and what happens within the business.”

Wilson echoes these sentiments: “From a succession strategy point of view, there are a number of pros. As a founder, when you are looking at your succession options, the traditional options are either a trade sale, MBO, or even wind up the business and release the assets – not the ideal situation for the employees. The great opportunity provided by employee ownership is that the owners can say that they do not have to go and look for a trade buyer.

“The opportunities presented by employee

ownership are a good option on a succession basis. As the founder, you will know that the company that you built and have grown is going to remain in the same location and is going to look after their employees in the way in which the founder would have done. It is then all down to the employees to continue with this and maintain it.”

It is this universal support that has ignited a lot of interest in companies of all sizes looking into the possibility of employee ownership.

How does it work?

It might be all well and good having all of these benefits, but the main stumbling block for employee ownership has been the difficulty to adapt to the old government’s stiff regulations to make the transition. However, since the review and a growth in the number of legal experts in recent years, employee ownership is now a lot easier to implement.

Wilson explains: “It is easier to implement than a trade sale and not too dissimilar to an MBO. However, it shouldn’t be rushed, and due to the principles in which employee ownership is done, the process can go over an extended period of time. If you are growing as a business, it is a good idea to implement it over a few years. Employee ownership is not a ‘gift’, it is a sale, and so certain percentages can be sold over time. Money, hard cash is exchanged for the shares. But for the employees it increases engagement and interest in the direction of the company.” 

And if the shares are in an employee-owned trust, subject to rules and regulations, the employees can take a tax-free profit share of up to £3,600 each year.

Pros of employee ownership The Nuttall Review was a game changer for businesses looking to transition to employee ownership. However, there are more benefits than just maintaining culture and tax perks.

Barry Horner is CEO of financial planning firm Paradigm Norton, who recently became part employee-owned in order to have a smooth and successful succession plan.

Horner explains: “As a firm, we have been looking at the issue of succession planning for about five years and we have been going through every option you would typically look at when you build a business up for over 20 Business Leader - Inspire • Inform • Connect

Academy Award-winning animation studio, Aardman, last November also announced that co-founders Peter Lord and David Sproxton transferred the ownership of the company to its employees.

For over 40 years, the Bristol-based business has entertained the world with its stop-motion clay animation movies and television shows, most notably featuring Wallace & Gromit.

In a joint statement released by Lord and Sproxton, it read: “We’re not quitting yet, but we are preparing for our future. This approach, the creation of an employee trust, is the best solution we have found for keeping Aardman doing what it does best, keeping the teams in place and providing continuity for our highly creative culture. And of course, those that create value in the company will continue to benefit directly from the value they create." 

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HR SPONSORED BY QUANTUM ADVISORY INDEPENDENT EMPLOYEE BENEFITS CONSULTANCY BASED IN BRISTOL, CARDIFF, LONDON AND BIRMINGHAM 0117 905 8766 | info@quantumadvisory.co.uk | www.quantumadvisory.co.uk

What will the future of work look like in the UK?

BLM brought together HR and business leaders to discuss what the future of work will look like and discuss the current motivations for employees working across businesses small and large, across the UK.

IN YOUR OPINION, HOW IS THE WORLD OF WORK CHANGING?

talent pools and the motivation staff have is changing too.

Leanne Bridges: “At A-Gas we’re seeing a shift away from traditional working hours and we’re reacting to that. It isn’t always easy though as we have manufacturing and office-based staff, so you do need to find a balance that suits both.”

“How you think about culture is becoming more important too; and this can be key in ensuring that all your employees who work in different parts of the business come together.

Heather Cooper: “There is lots of change now – we’re embracing different types of flexible working, engaging with different

50

“We’re going through some big programmes of change but the average age of employees in our business is thirty-four, so we’re not seeing much resistance to this. The average mindset at Hargreaves Lansdown wants to achieve a work life balance.

Vicky Parfitt: “We’re primarily a manufacturing business so the work

is 24/7 and we operate very structured shift patterns, so it can sometimes be difficult to offer this side of the business flexible working. But if you offer it to the office side of the business then, quite rightly you’ll hear that it’s being done for the office people but not the manufacturing side.”

Adam Hardwood: “The reality is that we need to open our ears to the workforce and listen to how they want to shape their working patterns. Perhaps in traditional manufacturing companies, it was a case of you’re the people who do the work and we’re the bosses but that’s not how we see it – and we’re much more accommodating.”

Issue 10: September - October 2019

DEBATE SPONSORED BY QUANTUM ADVISORY INDEPENDENT EMPLOYEE BENEFITS CONSULTANCY BASED IN BRISTOL, CARDIFF, LONDON AND BIRMINGHAM 0117 905 8766 | info@quantumadvisory.co.uk | www.quantumadvisory.co.uk

The Panel Stuart Price Quantum Advisory

part-time working and job sharing. We’ve also engaged with Perkbox as an employee engagement tool and this is having a positive impact. It’s early days but this is where we want to be.”

Neil Douglas Viper Innovations Emma Cox Thatchers Cider

Christopher Allen: “One of the challenges is that we’re still fixed on the concept of ‘working the hours’. If we stick to working the hours we naturally go to a command and control way of working but many of the companies are starting to trial flexible working patterns, so there is a tension.”

Leanne Bridges A-Gas Heather Cooper Hargreaves Lansdown David Deidun Quantum Advisory Adam Hardwood CFH Docmail Vicky Palmer CFH Docmail

HOW ARE YOU APPROACHING CHANGES TO WORK AS A VERY LARGE ORGANISATION?

Hannah McDonals Bristol Waste

Josie Peadon: “We employ 56k people in the UK and we approach work from the perspective of what the client wants but also on what a certain department needs. We offer flexible working and we have the scope to give people different contracts and shift patterns.

Karen Stephens Bristol Waste Christopher Allen Montroc Marie Hodgson MHR Manager Josie Peadon Mitie

Karen Stephens: “We have lots of workers out in the field and we’re seeing changes to how they work, and part of this is more

"IN MY OPINION, MANAGING FLEXIBLE WORKING ACROSS DIFFERENT TEAMS IS A TRAINING ISSUE AND HEADS OF DEPARTMENTS NEED TO REALISE THAT FLEXIBILITY WILL BE DIFFERENT FOR DIFFERENT TEAMS." Christopher Allen Business Leader - Inspire • Inform • Connect

“We also have our own app which everybody has access too. Technology has been key for us helping front line staff keep in touch with their manager – whom they might not see from week to week. When staff aren’t being supervised daily, technology is an important tool to harness.”

HOW CAN SMALLER COMPANIES ADAPT TO HOW WORK IS CHANGING? Neil Douglas: “It’s challenging but it’s something we’re taking seriously. For example, we operate four day working weeks and more flexible hours – so people can work between ten o'clock and three o'clock, should they wish.

“We conducted an employee survey last year and it was interesting that what came back as most important for them, was flexible working.”

Marie Hodgson: “In a smaller business much of it is down to trust and you can have informal arrangements in place, so being a small company can be an advantage as you can be agile and implement practices that other businesses can’t. But when it comes to flexible working, this can be challenging when you have different parts of the business and working patterns – such as field based, office based, or factory based.”

Christopher Allen: “In my opinion, managing flexible working across different teams is a training issue and heads of departments need to realise that flexibility will be different for different teams. You can only do that by putting fewer constraints and policies in place.

“Netflix is a good example. They have a document which just says, ‘be a great employee'” WHAT OTHER TRENDS ARE YOU SEEING AROUND THE FUTURE OF WORKING? Stuart Price: “There was a recent survey which shows that the UK could potentially be more productive and add £20bn a year to the economy by fully embracing flexible working. This is because people would spend less time commuting and it would also relieve stress.

“So flexible working is something that we can’t ignore. Looking at the end of an employee's working life is also becoming a bigger part of the conversation and pensions are on the radar more now than ever.”

Cont.  51

HR SPONSORED BY QUANTUM ADVISORY INDEPENDENT EMPLOYEE BENEFITS CONSULTANCY BASED IN BRISTOL, CARDIFF, LONDON AND BIRMINGHAM 0117 905 8766 | info@quantumadvisory.co.uk | www.quantumadvisory.co.uk

WHAT DOES BEING A FAMILY RUN BUSINESS MEAN WHEN IT COMES TO WORKING PATTERNS? Emma Cox: “Culture is everything and you’re coming to work for a family business, so we try hard to break down the lines of ‘you work in the manufacturing side of the business and you work in the office part’.

“If we need people to work on the lines I’m there and the Managing Director will be there. It’s very fluid and everybody who joins the company will work across every part of the company.

“We also work closely with staff to listen to what they have to say and listening is the most important thing you can do, as it allows you to develop a career path and plan and to stick to it; and this may mean moving from one part of the business to another for example.

“Finally, regarding flexible working that’s interesting and you need to be careful because many people on the production side of the business like the shift patterns and we wouldn’t want to change them. It goes both ways.”

REGARDING MOTIVATION TO WORK, WHAT IS IT THAT MOTIVATES PEOPLE THE MOST TO WORK? Marie Hodgson: “Every client is different, but career development is commonly important and helping people to move through the business and develop a career path.

"CULTURE IS EVERYTHING AND YOU’RE COMING TO WORK FOR A FAMILY BUSINESS, SO WE TRY HARD TO BREAK DOWN THE LINES OF ‘YOU WORK IN THE MANUFACTURING SIDE OF THE BUSINESS AND YOU WORK IN THE OFFICE PART" Emma Cox 52

It’s all about listening to what employees have to say and then acting on it – this carries a lot of weight.”

Christopher Allen: “People with purpose are the happiest and retained people in the business. But to gain people like that is the challenge.

"I’ve been working with Innocent Drinks and they are fabulous at allowing people to work out who they are and switch roles if they discover that they enjoy something else more.

“Interestingly they also champion people when they leave and put them on the wall as an achievement of somebody that the company has developed. If you set up your own business – they make a golden star out of you.

“More companies don’t do this because they don’t think about the emotional capital of their staff.”

Neil Douglas: “I believe it’s the full package – it’s flexible working, it’s development and it's employee benefits.

“It doesn’t always have to be expensive either. We can’t offer the same packages as larger employers, but you can implement small perks such as yoga classes and sports masseurs which engage with staff in regard to their health and wellbeing. There is lots you can do and listening is always at the heart of it.

“In a small company the career path can be challenging because you can promote and develop people but if they want the top jobs, they’re often relying on somebody leaving.”

Christopher Allen: “I find perks interesting.

There is something called the hedonic treadmill, whereby people are so used to getting perks, no matter how small, that they constantly expect one. You must be careful because in order to attract and retain people as a small business you can end up spending lots of money on perks but lose the motivation of why they’re in the business in the first place.

“The biggest perk you can give people is talking to them – and that costs nothing.”

Issue 10: September - October 2019

DEBATE SPONSORED BY QUANTUM ADVISORY INDEPENDENT EMPLOYEE BENEFITS CONSULTANCY BASED IN BRISTOL, CARDIFF, LONDON AND BIRMINGHAM 0117 905 8766 | info@quantumadvisory.co.uk | www.quantumadvisory.co.uk

WHAT PART ARE PENSIONS PLAYING IN EMPLOYEE RETENTION AND DEVELOPING STAFF FOR THE FUTURE OF WORK? Stuart Price: “Pensions are very important because you must think about when you finish work too, because you can’t just rely on the state pension.

“But the younger generation have different aspirations and needs - if they have spare money what are they spending it on? This is where flexible benefits can be good because it gives choice and allows you to pick what suites your lifestyle.

“I would also say that the workforce is more engaged since auto-enrolment. People now know more about pensions but often what they’re putting aside is not even touching the sides to where they need to be. But of course, not everybody can afford to put money aside.”

David Deidun: “Financial education really is important and it’s something we drum into our staff as soon as they join the business and throughout their time with us.

"I remember when I was at school, we had a symposium class each Friday afternoon and people from different professions would visit us and you’d listen to somebody talk about their particular trade.

"On one occasion we had a bank manager come in – he had what we thought was a fancy car and suit. I was very curious in those days and I asked him how much he earned? He said, ‘all of it!’ and I found that an interesting answer. That was an early introduction to finance for me and it was the moment that made me decide I wanted to work in this field.

"We all have a responsibility around this, and I think it’s important.” 

"YES, PENSIONS ARE BECOMING MORE FLEXIBLE AND THERE IS MORE FREEDOM AROUND THEM BUT IF YOU GIVE TOO MUCH FLEXIBILITY YOU WILL END UP WITH NOTHING TO LIVE ON." Stuart Price

Leanne Bridges: “I guess there is change around pensions and the freedom of pensions too, whereby people might want to draw some of it earlier in their life and before retirement and they can also take their pensions elsewhere, as more people are having multiple jobs.

“The final salary style pension is becoming a thing of the past and dying out.”

Stuart Price: “Yes, pensions are becoming more flexible and there is more freedom around them, but if you give too much flexibility you will end up with nothing to live on. I still believe a pension should be much more about after work.”

DOES THERE NEED TO BE MORE FINANCIAL EDUCATION IN THE WORKPLACE? Heather Cooper: “Financial awareness and the financial journey of an employee is important too. Many young people are coming out of education with no information about this.

“As an employer we’re helping people to understand about this. Young people aren’t interested in pensions – they should be but they’re not. Young people are interested in spending and not saving. Not all of course, but as a trend generally this is the case.”

Business Leader - Inspire • Inform • Connect

53

SURVEY

BUSINESS LEADERS GIVE THEIR VIEWS ON WHAT THE FUTURE OF WORK WILL LOOK LIKE GIG MILLENIALS FLEXIBLE AI MACHINE ECONOMY SHAPING WORKING LEARNING WORK STRUCTURE

WHAT DO THEY FEEL WILL HAVE THE BIGGEST IMPACT ON THE WAY THEY WORK IN THE FUTURE?

B

arclays have collaborated with BLM to produce a survey on what the future of work will look like. Over 80k business people were asked a series of questions on topics ranging from flexible working to productivity, in order to gauge a view on how leaders in businesses are approaching the changing face of work. Here are the results.

45% 31% 15% 9%

WEEKLY OR MONTHLY WORKING HOURS The survey kicked off by asking business owners what they feel will have the biggest impact on the way they work in the future?

The majority (45%) said they felt AI and machine learning – and other disruptive technologies – would have the biggest impact.

Interestingly, only 31% said flexible working, against 9% who selected the gig economy and 15% who said the requirements of millennials and how they are shaping the way work is structured.

Focusing specifically on disruption, 47% said they expected some of the roles around them to be displaced by technology in the next ten years.

Flexible working With flexible working coming out as the second most disruptive working practice, it was interesting to see that an overwhelming 77% believe it is a good thing, with 7% saying it’s bad and 16% were undecided.

On a similar thread, when asked about whether the concept of weekly or monthly working hours – ie the traditional 9-5 working day – was a good thing, 60% said 54

FLEXIBLE WORKING A GOOD THING A BAD IDEA UNDECIDED

77% 7% 16%

it was, 22% said it wasn't and 18% were undecided.

Productivity Productivity is a major issue for the UK, with many working the longest hours in Europe but still coming out as the least productive.

A GOOD THING A BAD IDEA UNDECIDED

60% 22% 18%

office to complete work tasks. Unexpectedly a huge 60% said no, with 5% saying that employees should be at their desks all the time when completing work.

The balance (35%) said that it depended on the circumstances, as to where employees should complete work.

45% said yes, with 37% saying they didn’t think this would be the case. 18% responded that they were undecided on this issue.

Millennials The next generation of workers are having an impact on how work is structured, with many companies aligning themselves to their expectations. The concept of a job for life is also a thing of the past it seems, with the average person holding down five different jobs over their lifetime.

The next question in this segment then asked if people should always be in the

When asked whether the business they own or work for has adapted specifically to align

On this subject, business leaders were asked if they felt their employees would be more productive if they worked less hours.

Issue 10: September - October 2019

FUTURE OF WORK

WOULD YOUR EMPLOYEE BE MORE PRODUCTIVE IF THEY WORKED LESS HOURS?

45% 37%

26% YES

NO

UNDECIDED

WHAT DO YOU FEEL IS MOST IMPORTANT TO A HAPPY CAREER?

45%

40%

PAY

Looking forward, it's estimated that by 2025 three quarters of the workforce will be millennials and, businesses will need to continuously think of new ways of working to satisfy the needs of this next generation of talent.

A millennial is defined as a tech-savvy professional who wants to work for organisations that foster innovative thinking, develop their skills, and make a positive contribution to society.

Firms need to think about the office space they occupy, tapping into new trends to create collaborative activitybased offices and non-hierarchical spaces to accommodate hot-desking and agile working.

New smart-tech buildings promise flexible amenities, state-of-the-art conference venues, shared food halls and innovative technology. They also seek to respond to wellness criteria for improved productivity.

15% COMPANY VISION

The Future of the Workplace

EMPLOYEE BENEFITS

itself as a millennial friendly business, 38% said yes.

Interestingly 48% said they hadn’t changed their business to meet this requirement.

14% said they hadn’t even considered it as an issue.

Employee benefits The survey ended by asking the recipients about employee benefits and staff retention. Everybody was asked what they felt was most important to a happy work career – pay, employee benefits or the vision of the company.

45% said the vision of the company, 40% said pay and 15% said employee benefits and perks. 

Business Leader - Inspire • Inform • Connect

Technology is playing an ever-increasing role, from the impact of artificial intelligence on headcounts to an alwaysconnected workforce that can operate seamlessly away from the office, firms are rethinking their strategy to adopt new forms of more agile, activity-based working in their offices.

The rise in automation opportunities has also allowed companies to become more and more efficient in their use of space.

And another point to note is that firms are becoming more digitised, storing their files online and in the cloud.

The working environment, the overall ‘experience’ and the culture of the organisation are all starting to play a bigger role in millennials’ decision

David Goodall

making when it comes to jobs. They are demanding better amenities, better facilities and better benefit schemes.

So, what will the workplace of the future look like? With landlord’s providing concierges, bike storage and gym facilities, event areas and restaurants and bars, demised office space can be assigned for working purposes which will help reduce space requirements.

Technology will enable agile working to come to the fore and meet the differing needs of different generations

To find out more contact: David Goodall, Head of Mid Corporate Banking, South West.

Mobile: +44 (0)7920 266489 Email: david.goodall@barclays.com

www.barclayscorporate.com

Barclays Bank PLC is registered in England (Company No. 1026167) with its registered office at 1 Churchill Place, London E14 5HP. Barclays Bank PLC is authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority (Financial Services Register No. 122702) and the Prudential Regulation Authority. Barclays is a trading name and trade mark of Barclays PLC and its subsidiaries

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REGIONAL

FOCUS

WHAT IS LEVEL39?

AND HOW IS IT REVOLUTIONISING THE LONDON TECH SCENE?

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Issue 10: September - October 2019

LEVEL39

T

he capital has become a beacon for British tech brilliance in recent years, and now has the eyes of the world focused on what new innovations will come to market from the everincreasing number of companies making a mark in the sector.

With over 187,000 tech companies achieving a combined reported annual turnover of £292bn, London tech businesses, from start-ups to international powerhouses have benefited from the many advantages the capital affords.

Despite the impressive statistics, what is more eye-catching is the fact that this annual turnover has been achieved with 16% year-on-year growth over the last three years.

The lifeblood of the tech system are new age start-ups that are either developing a piece of tech or software to revolutionise a sector – or introducing something completely new to the world.

In 2018, London start-ups attributed £11.4bn to the UK economy, and gave employment to almost 40,000 people across the 33 London boroughs where they are based.

Many of these start-ups are based in 50 plus accelerator programmes and shared office spaces that are spread throughout the city.

One of the most prominent and wellrespected tech communities is Level39.

What is Level39?

Based in the heart of London’s business centre – Canary Wharf – this incubator has over 1250 leaders in cybersecurity, fintech, artificial intelligence, blockchain and retail tech based at their offices.

Almost 200 member companies call the space home – all of which are considered ‘fast-growth tech companies’.

Asif Faruque, Head of Content at Level39 comments: “The community came to life in 2013 – opening its doors to fintech, cybersecurity, retail tech and smart city

Business Leader - Inspire • Inform • Connect

tech businesses. Based in the One Canada Square skyscraper, Level39 runs four floors of workspace, totaling 100,000 sq. ft.

“The community is characterised by ambitious businesses working in close collaboration. Sharing ideas, working with each other, bidding on projects with one another – a very supportive environment.

Surrounded by some of the world’s biggest and most powerful financial institutions, Level39’s entrepreneurs are within a few minutes of relevant, well-financed customers. Entrepreneurs get to market faster at Level39 with the support of those around them.”

Level39 is wholly-owned by the Canary Wharf Group – but ultimately, it is a private, for-profit, company that has built a strong brand and community over the past six years.

The company is self-funded through its membership model where every member of Level39 pays a rate, depending on what they require; office space, hot-desks or fixed desks.

How has Level39 helped its businesses?

Level39 sets itself apart from the other major tech communities in London through its ability to elevate its businesses ahead of a heavily crowded tech sector and create a community of leading industry innovators.

Faruque explains: “Level39’s entrepreneurs are characterised by their focus, ambition and willingness to help each other. They learn from one another, at times they compete, the kind of competition which opens up new opportunities.

“They work in unison – like a cycling peloton – saving energy by working closely side-byside – attracting customers closer to their circle – collaborating on projects and new developments – bringing their products to market faster, raising funds faster, hiring faster and having their talent perform better.

It’s truly a one-of-a-kind experience seeing how our entrepreneurs work.”

Cont. 

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REGIONAL FOCUS

LEVEL39

Through this collaborative work and inclusive mindset, all businesses within Level39 have created their own ecosystem, within the larger confines of the London tech scene.

accessed by over 120,000 people worldwide and has customers including Lloyds Bank, Air Canada, Credit Suisse, the NHS, Premier League, John Lewis, and Just Eat.

Faruque continues: “Level39 is really a subset of London’s entrepreneur ecosystem.

They’re hugely ambitious, well-connected, and supported by one of the world’s most robust, progressive governance and regulatory systems. Time and time again, overseas delegations visit Level39 and comment on the favourable conditions for running a business in this city, the physical proximity of some of the world’s best universities, a widely praised financial regulator, a superb legal system and plenty of support for entrepreneurs. It’s hard to pick out the best part of working in London – our entrepreneurs are very happy!”

Alashe comments on the impact the community has provided: “We’ve had access to mentors, investors, and regular networking events. It was undoubtedly a factor in our Series A, and Level39 continues to be an important element in the exciting growth of our software and our customer base. In fact, because of our location, we get the opportunity to be particularly close to our customers; we can meet them in person and discuss the challenges they’re facing. We can even show them around the office so they can meet the team and feel the energy.

One of those entrepreneurs is Oz Alashe MBE, CEO of intelligent cyber security platform, Cybsafe.

CybSafe was launched in 2017 and last year secured £3.5m in Series A funding. The company’s intelligent cyber security and data analytics platform is

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"THROUGH LEVEL39, WE’VE HAD ACCESS TO WORLD CLASS TALENT AND AS A RESULT WE’VE BUILT A FANTASTIC TRIBE OF CLEVER, HARD-WORKING AND PASSIONATE PEOPLE." Oz Alashe MBE

“Through Level39, we’ve had access to world class talent and as a result we’ve built a fantastic tribe of clever, hard-working and passionate people. As our team has grown Level39 has been accommodating and a few months ago we expanded our office space yet again!”

Due to the extensive amount of expertise provided by the companies that call Level39 home, businesses within the various subsectors of tech can tap into the knowledge of their neighbours.

Alashe continues: “A dynamic and innovative cyber security community is one of Level39’s greatest strengths. Home to more than 20 cyber security companies, as well as the UK’s Cyber Demonstration Centre and Cyber39, Level39 has given us the right cyber-focused foundation for our business to grow. All the cyber security businesses at Level39 are united by this shared vision, to make the digital world a safer place, and it’s encouraging to be a part of a collaborative environment.”

This is also the case for regtech renowned cloud computing specialist, Taina, who utilise software-as-a-service (Saas) to help financial institutions around the world.

Cont. 

Issue 10: September - October 2019

Discover the UK’s fastestgrowing businesses.

Beauhurst is the professional platform for rich information on the UK’s most ambitious companies.

CEO and Founder

Equity fundraising 1 July 2014

£9.5m £40.6m pre-money

Equity fundraising 17 September 2016

£93m £179m pre-money

www.beauhurst.com Business Leader - Inspire • Inform • Connect

59

REGIONAL FOCUS

LEVEL39

CEO Maria Scott commented: “Being around other tech companies experiencing similar challenges has to rank up there, but it’s a combination of important factors that add up to a trajectory changing impact. Proximity to talent, clients, transport links, both nationally and internationally are all critical factors for us and other Level39 members.

“There are a number of competing accelerator projects and spaces across London and the UK. However, almost always these are tied to a particular organisation and ultimately are designed around meeting their interests rather than ours. Level39, by virtue of its independence of these aims and ultimate goal as a landlord, has a direct incentive to help us grow!”

What does the future hold for Level39?

Last year, the Canary Wharf Group unveiled plans for a brand-new development, Wood Wharf, one of the most ambitious urban regeneration projects in London.

Having already created one of the largest business districts in Europe, Canary Wharf Group is continuing to evolve London’s former docks site by redeveloping a 23 acre site into five million sq. ft. of mixed-use space.

A sense of community, education and culture are at the heart of these plans, which include two million sq. ft. dedicated to fast-growth businesses.

Creating workspaces for entrepreneurs and innovative businesses, set to bring 20,000 jobs to the region, Wood Wharf will be a new part of London and one of the largest clusters of tech and creative businesses in the UK.

"BEING AROUND OTHER TECH COMPANIES EXPERIENCING SIMILAR CHALLENGES HAS TO RANK UP THERE, BUT IT’S A COMBINATION OF IMPORTANT FACTORS THAT ADD UP TO A TRAJECTORY CHANGING IMPACT." Maria Scott

"OUR MEMBER COMPANIES REVOLUT, DIGITAL SHADOWS AND MOTIVE PARTNERS HAVE ALREADY TAKEN SPACE IN CANARY WHARF – AND WE’RE LINING UP EXCITING TECHNOLOGY AND CREATIVE BUSINESSES TO TAKE RESIDENCE IN WOOD WHARF." Asif Faruque Faruque comments: “The future of Canary Wharf lies in Wood Wharf – an exciting new district, just east of Canary Wharf – and the future site to more than 3000 homes, commercial office space, shops and restaurants. It will be a community full of vibrant and dynamic entrepreneurs and scaling businesses.

“Our plan remains to support Canary Wharf with its goal of becoming the most supportive landlord of fast-growth, dynamic businesses and scaleups. Our member companies Revolut, Digital Shadows and Motive Partners have already taken space in Canary Wharf – and we’re lining up exciting technology and creative businesses to take residence in Wood Wharf.” 

A Level39 success story…

R

evolut, one of the UK’s unicorn fintech businesses, has transformed the banking services sector with its prepaid debit cards, current accounts, insurance, currency exchange, cryptocurrency exchange and peer-to-peer payment functionality.

The company was one of the most successful businesses that utilised the unique community offering available at Level39.

With over six million users, Revolut has now expanded into stock trading through its app for existing customers.

Asif Faruque – Head of Content, Level39

60

Asif Faruque, Head of Content at Level39 comments: “In 2018, we saw one of our first, smaller businesses, Revolut, take

commercial office space in Canary Wharf.

They started as a four-person business, working out of hot desks. Now they boast more than 500 employees, global locations, and are valued at close to $2bn (£1.6bn).

They joined two more of our members, Digital Shadows and Motive Partners, in taking commercial space in the district.

That’s a strong sign that Fintech still has a lot of room to grow globally.

“It’s also further proof that a property company can play a multi-faceted role in a business’ growth journey. Level39 has proven it can support a company in its earliest stages – later down the line, Canary Wharf is able to come through and offer total support for scale-up technology businesses.”

Issue 10: September - October 2019

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Business Leader - Inspire • Inform • Connect

61

REVIEW

BUSINESS LEADER LAUNCHES: PURE SCOOTERS T

he latest addition to Business Leader Magazine, ‘Business Leader Launches’ highlights the UK’s hottest up-and-coming brands and their products that look set to shake up their sector. This edition is Glastonbury-based Pure Scooters.

Pure Scooters sell a wide-range of electric scooters, including the Xiaomi M365, Ninebot Segway ES1, Ninebot Segway ES2 and scooter accessories.

Founded by former Hargreaves Lansdown director and prolific investor Adam Norris, after he ploughed an initial £10m of his own money into the new electric scooter venture.

Norris’ idea was to help the UK cut down on congestion and pollution issues that we are currently facing.

The Glastonbury-based entrepreneur hopes to see as many scooters in use as cycles within two years, as he sets his sights on becoming the biggest electric scooter firm in Europe.

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By investing in millions of pounds of stock, the firm can sell the products at the best prices in the UK and guarantee free next day delivery – something other companies are unable to do due to stock issues.

Pure Scooters can also save customers more than a month on delivery times – and hidden delivery charges - from companies in China. Unlike many other sellers, all stock is tried and tested in the UK, seeing the company quickly become the UK’s experts – and ‘go-to’ people in the industry.

Business Leader got the opportunity to review the Xiaomi M365 Electric Scooter – the most cost-effective model in the Pure Scooters’ range.

According to the company, the Xiaomi M365 is “the best all-round electric scooter with a top speed of 15mph, means a two mile journey that used to take 30 minutes of walking, now only takes eight minutes, without crowds, hassle or effort. Air-filled tyres make most surfaces feel silky smooth and it’s light enough to carry.”

Issue 10: September - October 2019

PURE SCOOTERS

BL REVIEW Assistant Editor, Barney Cotton Simply awesome.

Before I get into an in-depth breakdown of this product, I must say that the short time that I have had the Xiaomi M365 Electric Scooter has been great, and I really wish I did not have to give it back!

The product was delivered swiftly to Business Leader HQ and immediately drew the attention of the whole office – already showing the huge potential the electric scooter market can have in the UK. All it needed was the four screws to be put in place and it was ready to go – incredibly simple and easy. And the product had ample charge straight out of the box. After one push off, you are away.

After a (long) play around on the product near my house, I was hooked.

I initially started out on the energy-saving mode, and for the hour plus I used the product, there was still a lot of life left in the lithium-ion battery. The user can easily switch between this mode and ‘general’ mode, where you can get up to the top speed of 15mph – although it feels a lot faster when you are on it!

The accelerator is smooth and sensitive to touch, so you are always in complete control of the scooter, and the brakes are very effective, meaning that it is safe to use around roads and pathways. It is a comfortable ride, and very versatile in its movement. However, I would advise using the Pure Scooters gloves if you are riding around in colder temperatures.

Away from whizzing around the housing estate, I put the scooter through its paces as a useful daily tool. I live about two miles from my place of work, and travelled backand-forth every day on a single charge. I had no issues, and it was a much more enjoyable experience than driving in!

Once you are used to driving the scooter, it is surprisingly nimble in the corners and going up and down pavements. You can completely trust the solid tyres to grip to the road, meaning you can maintain your speed at all times. It even handles well on cobbled

or brick roads – though I would advise not going full speed, if you can help it.

Alongside this, the brakes are first class.

You can fly around and, as long as you are confident, you can control your scooter with precision at all times. Also – braking helps recharge the battery!

This trust means that driving around at night is exhilarating. The large torch at the front of the handlebars is powerful enough to warn oncoming traffic and pedestrians.

With regards to the charging – unlike electric cars – the scooter can be charged at a normal plug socket in a relatively short amount of time. And due to the battery gauge on the handlebars, you know how long you have left before you have to manually scoot.

My only small criticism is its ability to handle water. Although it is water-resistant, it cannot go in small puddles or rainfall.

Although not a massive issue (who wants to scoot in the rain?) – small puddles are a common occurrence in the UK, so be advised when and where you are cruising around. This hasn’t put me off driving it at all, but it is something to be aware of.

Once you are finished with the scooter, it folds down into an easily carriable piece of kit, and can be stored easily at home or in the boot of your car.

Overall, the scooter is well worth the £399 investment – whether it is for a bit of fun or taking yourself to work.

In a world where being environmentally conscious is vital, this has the potential to be a part of working people’s everyday lives.

With hopeful law changes on the way, and at a very reasonable price, this is the local transportation tool for anyone. 

NEWS BUSINESS LEADER COLUMNIST

Is your business investment ready?

Mark Pearson shares his knowledge Mark Pearson is the founder of investment fund Fuel Ventures, which specialises in early-stage companies and offers a London-based incubation studio to its start-ups.

He previously sold Markco Media (parent company of My Voucher Codes) to the publicly listed mobile payments firm Monitise plc in a reported £55m deal.

Here are his top tips for getting your business ready for funding.

1. Understand your market.

Before you start thinking about the actual investment, you’ve got to know your market like the back of your hand.

Who are you selling to? Are people going to buy your product or service for the foreseeable future? And who benefits the most from your product or service?

Quality market data is essential for research into current and future trends, who you are reaching and where, the extent of your market, the value of your market and the demand for your sector. Good businesses will also know their competition almost as well as they know their own company and will be able to clearly demonstrate their competitive advantage.

2. Know your numbers As an investor, I’m looking for scalable business models – I’m not going to give you money because you have a great idea, or because I like you as a person, although that helps. I need to know I’m in for a strong return on my investment and proving this means that you need to have your books in order.

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London Stock Exchange receive shock £32bn offer from Hong Kong rival

You instantly become more investable if you can demonstrate a strong track record of performance and realistic targets for the future. Trading to date, gross and net margins and the state of your balance sheet are all numbers that you should know inside and out.

3. Prove your worth Actions certainly speak louder than words and having sales under your belt will speak volumes to a potential investor. Nothing proves that your product or service will sell better than existing clients or customers.

4. Have a strategy in place More often than not, entrepreneurs are enthusiastic to fundraise, but the strategy to actually grow their business post-investment is unclear.

Investors want to know that you have the strategy to deliver the vision you’re passionate about, which means having a rock-solid plan in place.

5. Build the right team “One of the best things you can do in life is to surround yourself with people who are better than you.” Warren Buffett wasn’t wrong – as a business leader, you should surround yourself with people who have skills and experience you don’t have yourself.

6. Establish your end goal There are a few important questions you need to ask yourself when considering investment. What kind of relationship would you expect to have with an investor? Are you looking for a cash injection or do you want a business partner? How much equity are you looking to give away?

Where do you want to be in five years’ time? Investors will be expecting answers to these questions, so it’s important to have a clear vision for the future of your business before you start the fundraising process.

Hong Kong Exchanges and Clearing, who own the country’s stock exchange, have placed a £32bn bid to buy the London Stock Exchange (LSE).

In a statement by Charles Li, Hong Kong Exchanges and Clearing’s (HKEX) CEO said that the deal would “redefine global capital markets for decades to come”.

He added: “Together, we will connect East and West, be more diversified and we will be able to offer customers greater innovation, risk management and trading opportunities.”

Laura Cha, Chairman of HKEX, continued: “We believe a combination of HKEX and LSEG represents a highly compelling strategic opportunity to create a global market infrastructure group, bringing together the largest and most significant financial centres in Asia and Europe. Following early engagement with LSEG, we look forward to working in detail with the LSEG Board to demonstrate that this transaction is in the best interests of all stakeholders, investors and both businesses.”

However, should the deal go ahead, they will want LSE to scrap its plans to acquire data firm Refinitiv.

HKEX believes that the proposed transaction would offer the prospect of significant synergies.

In particular, the migration of HKEX’s trading and clearing platforms to LSEG’s technology, the revenue uplift in key businesses from cross-selling and innovation opportunities and a reduction in HKEX’s capital expenditures in connection with existing systems and future investment plans all present strong synergy opportunities.

LSEG shareholders would benefit from the realisation of the synergies as future shareholders of the combined group.

Issue 10: September - October 2019

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