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FTSE-100

5129.4 ▲ 34.1

THE London market made nervous gains yesterday as hopes that the US would announce more stimulus measures were countered by more weak economic data. The FTSE 100 Index closed 34.1 points higher, at 5129.4, as traders were buoyed by hopes that Federal Reserve chairman Ben Bernanke would announce more quantitative easing on Friday to boost the US economy. The FTSE was up in early trading but lost much of its earlier gains after disappointing economic data from the US.

Liverpool One owner in £19m retail swoop by Tony McDonough

LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com

LIVERPOOL One now extends to virtually half of Lord Street, after its owner snapped up a row of shops in a £19.1m deal. The Grosvenor Liverpool Fund (GLF) bought 52-78 Lord Street from retail property rival Land Securities. Miles Dunnett, head of asset management for the fund, told LDP business that other acquisitions in the city were possible, but stressed they were not actively looking. The deal for the 11 retail units, totalling 55,000 sq ft, gives GLF ownership of the majority of property on

MARKET REPORT: PAGE 15

one side of Lord Street between Paradise Street and South John Street. Fully let, it is home to Specsavers, French Connection, Yorkshire Building Society, Dollond & Aitchison Opticians, Home Bargains, Co-op Travel and Games Station. The transaction – which represents an initial yield of 6.4% – means GLF owns the entire block with the exception of the building housing the McDonald’s restaurant on the corner of Paradise Street. Mr Dunnett said: “This acquisition both reaffirms our commitment to Liverpool, a city that is thriving, and strengthens the wider Liverpool One offer.This gives us a presence in a part of the city centre that is going places.

“We fundamentally believe that Liverpool retail will grow.” Mason Owen acted for the Grosvenor Liverpool Fund and Lunson Mitchenall acted for Land Securities. Land Securities is also the owner of the St John’s and Clayton Square shopping centres in the city. The £1bn Liverpool One scheme opened in two stages in 2008 – Liverpool’s year of Capital of Culture. And, despite the tough economic climate, its mix of retail and leisure facilities has proved a hit with shoppers from across the North West and beyond. Last December, GLF agreed in principle a five-year, £385m refinancing with four banks – well ahead of its

existing borrowing maturing in January, 2012. It replaces the original funding which was put in place six years ago to cover both the development phase and the initial period of trading. As well as Liverpool One, the main Grosvenor business also continues to manage and develop assets in other areas of the city. These include the former George Henry Lee building, in Church Street, which it acquired in a deal that saw previous occupier John Lewis move into Liverpool One. DIY retailer Rapid occupies part of the site, but Grosvenor is actively seeking tenants for the remainder – some 40,000 sq ft over five floors.

■ BILL GLEESON: Page 8

Revival begins at Ethel Austin

inside

Insurance giant bounces back from recession PAYMENTSHIELD chief executive Tim Johnson says there is a revival at Southport’s biggest employer. PROFILE: PAGE 3

Youth role BUSINESS coach offers free assistance to disadvantaged and disaffected youngsters. PAGE 4

Finance fears RAISING finance is still the biggest concern among manufacturers, the EEF says. PAGE 5

Standing Tall RUNCORN’S Tall Group supplies 3m ballot papers for an African referendum. PAGE 7

Brewing up big plans at Cains

PAGE 2

BUSINESS EDITOR: BILL GLEESON 0151 472 2319

DEPUTY BUSINESS EDITOR: TONY McDONOUGH 0151 330 4918

BUSINESS REPORTER: NEIL HODGSON 0151 472 2451

BUSINESS REPORTER: ALISTAIR HOUGHTON 0151 472 2449

THE new owner of retailer Ethel Austin has revealed her plans to revamp the chain and restore its fortunes. In an interview with LDP Business today, Sue Townsend says she will streamline the business to ensure it has a profitable future. Ms Townsend last week bought the chain from administrators, and ditched the Life & Style name under which it had been trading. She said: “It was the Ethel Austin brand that I was interested in. “Their by-line was quality clothing at affordable prices. That can still be true. “It’s a great little high street chain. “It just needs the processes and the product to be made right.”

FULL INTERVIEW: PAGES 8-9 BUSINESS REPORTER: PETER ELSON 0151 472 2502


2

Wednesday, August 24, 2011

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Funding for city medical start-up MERSEYSIDE start-up company Med ePad has received the first telemedical sector investment from the £25m North West Fund for Biomedical. The Liverpool Science Park-based venture has clinched £50,000 of Pathfinder Investment from the fund, run by earlystage venture capital firm SPARK Impact. The North West Fund for Biomedical is a sub-fund of the £185m North West Fund financed by the European Regional Development Fund and the European Investment Bank. Med ePad has developed an interactive touch screen mobile internet device for healthcare service providers, aimed at improving the efficiency of treatment and helping patients to better manage their self-care. The seven-inch handheld touch screen computer comes loaded with condition-specific apps created in conjunction with NHS healthcare professionals. Its functions include the ability to record medication regimes and daily living patterns, send appointment reminders, conduct online consultations and access specific information relating to a particular condition, and, where appropriate, in the language of the patient’s choice. There are around 15m long-term condition sufferers in the UK. The new investment will help fund the development of initial apps and run a number of trials. Med ePad founder Rob Connell said: “I am looking forward to being able to develop a range of efficiency and patient-benefiting applications.”

Top brewer says Cains is ‘fantastic opportunity’ by Alistair Houghton

LDP BUSINESS STAFF

alistair.houghton@liverpool.com

THE new head brewer at iconic Merseyside brewery Cains says he wants to introduce new brews and new names to encourage drinkers to try its beers. Jim Kerr came out of “semi-retirement” to take the top brewing job at Cains. Mr Kerr, who has worked in brewing for most of his career, will now work with the brewery’s owners, Ajmail and Sudarghara Dusanj, to introduce new beers and tweak its existing range. Mr Kerr said: “Brewing is about attention to detail and having a feel for what you’re doing. “It is a science, but I believe there’s a bit of art and craft in it as well. “I’ve done this all my life. I’ve got a feel for how beer should be brewed.” That knowledge is even more powerful in an age where interest in real ale keeps on growing. Earlier this month, a survey from the Campaign for Real Ale showed 52% of all UK drinkers had tried real ale – up from just 37% five years ago. “In my whole brewing career, which spans over 30 years, I’ve never known so much interest in cask ale,” said Mr Kerr. “There’s a fantastic opportunity with a real brewery to produce beers that people will enjoy. “I know beer very well. I’ve got some ideas that we’re thinking about here. “We’re about to discuss our seasonal beers. But I definitely like the idea of brewing a blonde beer – I’ve seen a lot of blonde beers, and they’re doing extremely well.” Success in beer isn’t just about what’s in the glass – it’s about the branding. Many drinkers will happily order beer based on the name – perhaps helping the success of rival beers such as Bishop’s Finger and Piddle in the Hole. “Perhaps we could be more imaginative in naming some of the seasonal beers we produce here,” said Mr Kerr. “Some of the microbrewers have done really well by being a bit off the wall and a bit imaginative in how they name the beers. Even if their beer isn’t good, the names are good. We want good names for exceptionally good beer.” Sudarghara Dusanj added: “That’s the thing – we want exceptionally good beers, consistently very good beers. “We’re looking forward to some good ideas from Jim.” After a Master’s degree in food science, Mr Kerr started his career in

Jim Kerr in his element, in between the huge brewery vats, came out of ‘semi-retirement’ to become head brewer at Cains Picture: JAMES MALONEY/ jm100811cains-1 Liverpool as a graduate trainee with Whitbread. “I did my year’s brewing pupillage, from the bottom right the way through the business,” he said. “I spent time in the brewery in Truman Street, I worked the drays, I worked at the Arrowe Park Hotel in Birkenhead as a barman, and got opportunities on the sales side.” Jim spent 22 years with Whitbread, working across the UK from Blackburn to Devon. Finally, in 1991 Whitbread asked him to move to Castle Eden Brewery in Durham. “I built that up from ‘any other brewery’ to quite a well-known brewery,” he said. “It was almost divorced from Whitbread. People would boo Whitbread but cheer Castle Eden.” And there was a Merseyside connection to his work at Castle Eden –

among the beers he brewed there was famous Liverpool name Higsons. Mr Kerr was head brewer at Castle Eden until 2000, staying on after a buyout that saw it become a standalone business. In 1998, he was named brewer of the year by the British Guild of Beer Writers. As the new Millennium dawned, Jim left Castle Eden to head to Brains brewery, in Cardiff, as operations director. “We re-established Brains as the leading brewery in Wales,” he said, “and I got involved in putting the brewery name on the Welsh rugby shirts.” In 2005, he moved into the wine trade, working at a Bristol wine warehouse, but soon realised his heart lay with the hop rather than the grape. “Wine wasn’t really my cup of tea,” he smiled. So he returned with pleasure to the

beer world, joining Heineken in Manchester before moving to its Tadcaster operation in Yorkshire. “I gravitated to the North East,” he said. “I bought a new house there, and semi-retired.” But then he got the call from Cains. Sudarghara Dusanj said: “We’ve known Jim for a few years now. “Because we knew how good he was at Brains, we wanted to use that sort of expertise and experience to brew great cask beers and proper lager.” Mr Kerr added: “I quickly jumped at the opportunity. I wasn’t ready for retirement. I still love what I do.” Mr Kerr, who still lives in Hartlepool, has been a lifeboatman for the past 11 years. Today, he is part of the management team at the RNLI’s Hartlepool station.

■ TRADING Gossip: Page 16


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Wednesday, August 24, 2011

LDP business .co.uk

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LIVERPOOL’S INVESTMENT SPECIALISTS

profile

‘We felt that, if we couldn’t beat this business, we should buy it’ Alistair Houghton meets TIM JOHNSON, chief executive of Paymentshield, in Southport HE’S helped insure Test cricket matches and a Michael Jackson concert – now Tim Johnson is helping hundreds of thousands of people protect their homes. Johnson leads the 360-strong team at Paymentshield, the insurer that has become Southport’s biggest private sector employer. Paymentshield was hit hard by the recession, shedding more than 50 jobs. But today it is back in growth, with employment already back above pre-recession levels and gross written premiums last year of £210m. The company, taken over by the Towergate group in 2006, has two core products – household insurance, generally sold through mortgage brokers, and mortgage payment protection insurance (MPPI). Johnson, a Lancastrian who has spent his career in insurance, first heard about Paymentshield when he was working at Towergate. And, in classic Victor Kiam style, he liked the business so much he bought it. “We had got a little base in Sheffield in more or less the same market,” he said. “Every time we did our annual budgets, we’d ask the MD there ‘why can’t you do better and why isn’t your market share going up?’ “He would say there was this business called Paymentshield that was totally market dominant and beat them to everything. “We felt, ‘if we can’t beat it, we should buy it’. “It’s been a fantastic business for us – we’ve done well with it.” Johnson, originally from Leigh, started his career in insurance as a graduate trainee at Royal Insurance. “I did a spell in the head office in Liverpool, in the sandcastle,” he said – using the common nickname for the building now called The Capital, in Old Hall Street. Next, he spent 10 years with global insurance giant Aon, including a stint at Pinewood Studios handling insurance for major events. “I looked after Test Match cricket, Grand Prix races, a Michael Jackson concert in Mumbai, and a lot of films. “I met some really interesting people and moved in glamorous circles in those days. It was a good couple of years.” Eight years ago, he joined Towergate as chief executive. In 2006, he and Towergate founder Peter Cullum launched “a quasi venture capital business” within the group called Cullum Capital Ventures. “It was a merger and acquisitions machine for buying insurance brokers,” he said. “We bought 36 businesses in three years, which is a heck of a run rate. “In three years, we grew that business from nothing to the third-largest independent broker in the UK. Towergate was number one.” Two years ago, Johnson was asked to head back to the North West to run Paymentshield. “I said yes because it gave me the

chance to go home,” he said. “I’d been in the South for 12 years.” Johnson, who lives in Poulton-leFylde, says he is “golf-mad” – making Southport, with its wealth of golf courses, an attractive base. Paymentshield was founded in 1992 by Pat Cottrell and Rick Riding. “They decided it would be a good idea to try to sell household insurance through mortgage brokers,” said Johnson. “They started off on Mrs Cottrell’s dining room table, stuffing documents into envelopes. Then they moved into her son’s bedroom – he worked here in IT until recently. “So this has gone from pretty humble beginnings to what you see today – about 360 employees and a 30,000 sq ft big shiny office block. it’s a heck of a story.” Johnson had clearly made a point of studying its back story – even down to its financial performance. “The first year’s profit was £4,794 – and my FD has put in brackets ‘that’s pounds, not millions’.” In 2004, Stuart Pender led a management buy-in at Paymentshield, backed by Bank of Scotland Corporate. Two years later, it was bought by Towergate in a £180m deal that saw BoS make a “successful exit”. The recession had a big effect on Paymentshield because sales of its household insurance are so closely linked to the health of the mortgage market. “We had a peak time in 2007/2008 when the market was overheated, as has since become pretty evident to anybody who reads the papers,” said Johnson. “The majority of our sales come from mortgage brokers. They sell household insurance when they make a mortgage sale. “With a stagnant housing market, that trigger to sell the insurance doesn’t happen.” There may have been fewer people taking out mortgages, but those who had already taken them were keen to find insurance cover – so Paymentshield’s MPPI business kept ticking over. “Lots of people were desperate to buy any unemployment-related cover they could,” said Johnson. “Without wanting to sound too ‘business school’, it’s a counter-cyclical business. “We got a letter this morning that said ‘we’ve been claiming under your

q&a Age: 43 Highest educational qualification: MBA, Henley Business School Biggest achievement in business: Building Cullum Capital Ventures in three years from scratch to being worth north of £200m, if it had a market cap of its own Best advice received: The harder you work, the luckier you get Still to achieve: Going down the corporate route, I’d like to become chief executive of an FTSE-quoted company

Tim Johnson – has seen employment levels at insurer Paymentshield return to pre-recession levels

redundancy cover for the last X months and I’d like to say thank you to you for keeping me and my wife in our house’. “That’s the positive side of MPPI that the papers tend to ignore. This keeps real people in their houses in their tens of thousands every week. “Without cover, the vast majority of UK households could last for some five or six weeks on their savings if they lost their jobs. Then they’d be snookered.” In November, 2009, Paymentshield axed more than 50 jobs. “At the end of 2009, we basically carried a 2008 cost base in a 2009 economy,” said Johnson. “ “We were lucky the majority of people we had to let go were contractors or voluntary redundancies. “It was not a very pleasant thing to have to do. But it left the business in much better shape.” Last year, the company launched a two-pronged expansion plan. Firstly, it set up a new business offering credit reference services to landlords. And, secondly, it opened a dedicated call centre to help it win

back some of its former customers. That call centre alone now employs more than 50 people. “We’ve got a really excellent service proposition,” said Johnson. “I’m not saying we’re perfect, but people do like us. “If a customer has left us, they have often left on price. They save a couple of pounds, get poor service, then when we contact them they remember the service they had. “We find it reasonably easy to win them back. “If somebody has left because of poor service, it’s very hard to win them back.” Johnson is proud that the company has battled to win new business and get staffing levels up again. “We could have just hibernated and waited until the market picked up again,” he said. “It’s not my preferred strategy, but it’s a legitimate one because in two or three years the market will come back. “But you can also say ‘how can we grow out of it and think of things differently?’ We chose to do that.” Johnson shies away from making

bold predictions about the future of the housing market. “I haven’t got a better crystal ball than anyone else,” he said. “But hopefully next year we’ll start to see signs of the market coming back a little bit.” Johnson remains passionate about the power of MPPI, as offered by specialist insurers such as his. Several banks have been fined millions of pounds for mis-selling PPI products in recent years – and the whole industry has been tarnished as a result. Johnson, however, believes such insurance is a necessary precaution at a time when the economic forecast remains gloomy. He said: “When the banks sort out their failings, there will be a really strong place for this insurance. It’s a case of getting consumer confidence back up again. “One thing is for sure – the Government won’t want to fund all those people who could end up losing their homes and looking for state support. “Providing this sort of insurance cover is one way to look after people.”


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Wednesday, August 24, 2011

LDP business .co.uk LJMU in finals of prestige awards LIVERPOOL John Moores University (LJMU) has been shortlisted for an international quality management award for the fourth consecutive year. The university adopted the European Foundation for Quality Management (EFQM) excellence model as its management system framework, and became the first in Europe to achieve a full award in 2008 at its first attempt. It has since been shortlisted in the finals in 2009 and 2010 and again this year. Finalists are chosen after a team of international managers spend a week at each organisation interviewing and analysing applicants. Their latest assessment praised LJMU for excellent leadership and the way it has developed partnerships with external organisations in support of its employability agenda. University director of business excellence, Paul Evans, said: “The assessment process was rigorous and thorough. “This is not just about winning a prize or getting recognition. It’s about having experienced assessors giving us an objective view about what we’re doing well and identifying areas we need to improve on – it’s a very valuable exercise for the university to undertake, whether we ultimately win a prize or not.” Winners will be announced on October 25, in Munich, Germany.

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Business coach in offer to give youngsters a break by Neil Hodgson

LDP BUSINESS STAFF

neil.hodgson@liverpool.com

A LIVERPOOL life and business coach has extended free assistance to disadvantaged and disaffected youngsters in the wake of the recent civil unrest. John Haynes, founder of the Maryland Street-based Liverpool International Coaching Academy, coaches and mentors businesses in the UK and local and national government staff in Kenya and Nigeria. He established a coaching group last year to help Bootle teenagers in trouble with the law as part of a threemonth Sefton Council project. When the scheme finished, he extended the course, for free, through his Maryland Street Academy, to continue the personal development of the youngsters. And, following the recent trouble on the city’s streets, he has extended the offer to more Merseyside teenagers who want to break free from the downward spiral of gang culture and petty crime. Mr Haynes explained: “When we worked with the youngsters in Bootle, we got them working as a team and instilled responsibility. “We concentrated on things like interviewing skills and asked them, what did they want to do, instead of what their mum or dad wanted them to do. “We gave them the belief in themselves and got them to take responsibility, and they came together as a team.” But, he added: “When the scheme finished, they asked me ‘what happens to us now?’ So I brought them into our Academy. “I felt I had to carry on, because they wanted to be part of a team, and not a gang.” He said the monthly sessions, which are integrated “open house-style” with other Academy students and include

John Haynes, of the Liverpool International Coaching Academy, which is offering guidance to disadvantaged Liverpool youngsters lunch, attract up to 18 youngsters: “They are from Bootle, Croxteth and Norris Green. But they have all come together and we are thinking of extending it to once a fortnight. “We’re going to run it right through the year.” Mr Haynes added: “We give them

tasks to solve and ask them what the problem is and what are the solutions. “But the one thing that brings them alive is interview skills. “They are terrified of interviews and passing exams. But I am always amazed at just how fast they have learned. They are really sharp.

“In fact, two 16-year-olds have asked to come on our leadership course.” Mr Haynes, a former director with Liverpool insurance group Royal Sun & Alliance, added: “Kids are always going on about people putting something back into the city, so this is what we are doing.”

Breaking down cultural barriers ‘can improve business dealings’

New deals for safety experts

A LIVERPOOL couple have set up a new training organisation aimed at dealing with the growing range of different ethnic communities. Karen Bellion and Greg Logan are behind the St James Street-based Parcours. Karen has worked in the BAME (Black, Asian and Minority Ethnic) communities for more than 20 years, and believes that improving communication by breaking down barriers created through a lack of cultural awareness, or differences in attitude and behaviour, body language or etiquette, is a key ingredient to encouraging successful business.

BROMBOROUGH construction safety firm Innov8 Safety Solutions has landed three new contracts with schools across Cheshire. It has signed a deal with ISG Construction to provide construction design management across three primary schools at Ashton Hayes, in Chester; Comberbatch, in Northwich; and Wimboldsley, in Middlewich, to build extensions to the main school buildings. This will allow mobile classroom units, which have been used at the three sites since the 1970s, to be removed. Alan Robson, Innov8 managing director, said they would be playing an integral role in the £3.5m development, overseeing all health and safety aspects during work which should be completed by the end of the year. Mr Robson added: “We have seen solid and steady growth throughout 2011 and the latest deal expands our expertise across further sectors.”

She said the company aims to specialise in intercultural working practices, which, she added, is the term now used to describe the ability to work across cultures using a general understanding of communication and working styles. These techniques can develop sustainable strategies for organisations in order to encourage learning and development. This involves establishing working partnerships between organisations and the region’s diverse communities, enabling them to reach their full potential through their increased knowledge of intercultural working practices.

She said: “Parcours is about taking people on a journey and to discover how we can become more accessible to others. “Businesses and organisations have realised that their personnel need far more than facts and figures or ‘do’s and don’ts’ when working with people from different cultures.” She added: “We offer a stepby-step approach to assist an organisation in understanding its interests and those of the increasingly diverse markets.” The couple’s fledgling company has established a number of training packages and offers experienced facilitators to work with both small and large groups.


5

Wednesday, August 24, 2011

LDP business .co.uk

IN ASSOCIATION WITH

LIVERPOOL’S INVESTMENT SPECIALISTS

New jobs as microloans provider expands Speke office EUROPE’S leading provider of microloans is expanding its Speke-based UK headquarters. Finland-based Ferratum provides short-term loans online and via mobile phone in 15 countries and opened its first UK office last month. It can provide loans of between £50 and £300, repayable from seven to 45 days, to

meet the short-term financial needs of customers. It has received thousands of applications in the month since the office opened, leading to a recruitment drive taking staffing from three to 12, with more expected in the coming weeks. Ferratum UK’s sales and marketing manager, Ian

Porter, said: “We could not have wished for a better start and, if we continue at this rate, we will smash our firstyear business targets within a matter of months. “We believe we have entered the market at exactly the right time.” The firm aims to be the leading global mobile micro-

loan company by 2014, operating on all five continents in more than 50 countries and serving more than 10m customers. So far, the Helsinkiheadquartered organisation employs more than 150 staff and currently serves more than 700,000 customers. It was founded by chief

executive and Finnish entrepreneur Jorma Jokela, in 2005. Jokela said: “We are pleased with how well our UK launch has gone, but our extensive research told us that demand for our products was likely to be high. “As a company, we believe passionately in the importance of responsible lending.”

Funding ‘still available’ to credible businesses by Neil Hodgson

LDP BUSINESS STAFF

neil.hodgson@liverpool.com

MANUFACTURERS’ organisation the EEF has called for better access to finance and improved lending rates. North West director David Ost says that, apart from issues of onerous red tape, raising finance is still the biggest concern among his members. He said: “Manufacturers in Merseyside have come out of the recession leaner and looking for new markets. “But bank borrowing is still extremely difficult. “Since the end of 2008, EEF’s quarterly survey has shown the cost of credit getting worse, not better, for manufacturers. Only in the past quarter did we see the availability of finance improve. “But there are areas where it is vital we see change. First, we need to see the availability of finance, on reasonable terms, improve.” And he called for transparency on new management fees, how banks are enforcing loan covenants, and also tightening the application of terms and conditions. However, the new head of Barclays Business for the North West insists small firms with credible business plans are likely to succeed in finance applications. Martin Baker, who oversees Scotland, Northern Ireland, North Wales and the north west of England, said: “The days of ‘computer says no’ is well

behind Barclays and other organisations.” He said Barclays has seen a 12% increase in start-ups over the past year, but 80% of small firms approaching the bank are likely to have their funding requirements approved, which is in line with pre-recession levels. And he said Barclays met its commitment to Merlin – the Government’s target for bank loans to small firms – in the first half and is on track to meet second-half targets. “Of £20bn in loans, £7bn of that was to small firms,” he said. Since taking on his role at the end of the first quarter, Mr Baker has increased staffing among his North West business relationship managers by 5%, to 21. He added: I want to make sure we have the right people for the right locations. “It’s not just about looking at your balance sheet. It is important our customers feel decisions are made locally by someone who understands them.” And he said he was keen to improve access to finance and banking services by working with other organisations. “The North West economy in the first quarter grew faster than the national average, and Merseyside is a very quickly expanding part of the country,” he said. “There is still a lot of funding available to businesses through various organisations, rather than lending. “We are working with Local Enterprise Partnerships (LEPs) to see how we can work with them.”

ival, taking place this Bank Holiday weekend, that attracts visitors from all over the world. WildThang director Andrew Dwerryhouse said: “It’s fantastic that the brand we have created will be used

Centre serving clients’ needs

A CHESHIRE business centre is reporting successful expansion, it says, by managing to give companies “what they want and need” to help the town of Frodsham overcome the effects of the downturn and recession. During the past year, nine small and medium-sized firms have moved to the town, and Frodsham Business Centre director Simon Longden said they were all flourishing. Mr Longden added: “Our experience during the recession is that if you offer businesses affordable office space and the right level of support, they will continue to look to develop.” However, as well as attracting new companies, he said the centre had also managed to keep its existing customers satisfied. “Attracting new firms into the centre is important. “But looking after the firms that have been with us for many years is also crucial.” He said a number of the centre’s customers had occupied just one office when they first moved to the facility, situated in the town’s Bridge Lane. “Now, they, too, have expanded to take more, because they are happy with the service we provide.” Among the centre’s customers that have chosen to remain and are now performing well are the cerebral palsy charity, Scope, IT specialist Medhurst, and finance broker Corporate and Medical Finance.

LDP

MOBILE Martin Baker, head of Barclays Business, North West, insists that the days of ‘computer says no’ are over

WildThang gifts branding design to music festival A BOOTLE merchandising business has created new Mathew Street Music Festival branding free of charge. WildThang has designed the event brand and a limited edition range of merchandising for the 19th annual fest-

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across the city on stage backdrops, posters and on merchandise. “We know how important the event is to the city and we want this iconic festival to be around for future generations to enjoy.”

He added: “Given difficult cuts that are being made, WildThang wanted to show its support, so we were more than happy to do the design work free of charge. Obviously, being official merchandise provider, there is an added

incentive to make sure everything looks just right.” He said a percentage of the proceeds from merchandise will help to support the upkeep and continuity of what he calls “the best music festival on the planet”.

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6

Wednesday, August 24, 2011

LDP business .co.uk

Impact of rocketing fuel prices revealed by Tony McDonough

DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com

SOARING oil prices and their effect on businesses is the key issue examined in the September edition of the LDP Business magazine – available free with tomorrow’s Daily Post. LDP Business writer Peter Elson looks at the impact fuel prices are having on businesses, particularly in the road transport and aviation sectors. Featured is an interview with Dr Simon Snowden, a member of the University of Liverpool Management School’s Oil Depletion Impact Group, a group of academics investigating the implication of oil depletion on society. “Since last February, I’ve been trying to track oil and the economy, and I would say that since then we are into another recession,” said Dr Snowden. “The long, hard times of slow growth point to us potentially looking at a ‘double-dip’. We’re in an ‘oil shock’. “The 2008 credit crunch was merely a credit system fault line which opened up; the actual cause was oil prices.

“As oil prices went up after 2000, lots of people said oil was detached from inflation. But companies were absorbing oil prices into their margins without passing it on to customers.” Also in this month’s magazine, Alistair Houghton talks to the managing director of Lime Pictures, Sean Marley. Lime makes the hit TV shows Hollyoaks, Geordie Shore and The Only Way is Essex. In the interview, Mr Marley talks about how the Liverpool company aims to increase its revenues in the future. He said: “What’s intriguing for me is we’re on the verge of moving into a new commercial world with the whole idea of product placement and IPTV (Internet Protocol TV). “People will be engaging with their television in a very different way over the next decade or so.” In the commercial property section, we focus on the Wirral International Business Park and talk to the corporate financiers at Liverpool-based Brabners Stuart about an upsurge in corporate dealmaking. ■ THE LDP Business magazine is free with the Daily Post tomorrow.

Independent Financial Advisers in your area Anglesey Security Financial Services

Ty Llwyd, Llanfaelog,Ty Croes, Anglesey LL63 5TY Contact: Richard Jones Email richard@security-financial.co.uk Phone: 01407 811268 Mobile: 07710 468970

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info@valefinancialservices.com Studio One,Town Hall, Crown Lane, Denbigh LL16 3TB Tel: 01745 814962 Fax: 01745 814446 Contact: Glyn B. Jones info@valefinancialservices.com

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Bibby to help city runners

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Only way is up for Lime

Hollyoaks maker lays out its masterplan for growth l Fuel crisis: How firms are coping with soaring oil price l Green dream: St Paul’s s on top l Real deal: Buyo uts on rise È

Simon Snowden, of the University of Liverpool – we’re in an ‘oil shock’ Picture: JASON ROBERTS

ORGANISERS of October’s RunLiverpool Marathon have announced the involvement of Liverpool logistics and distribution company Bibby Distribution. The Duke Street-based business, which is part of the Bibby Line Group, will assist with the handling of more than 9,000 runners’ personal effects, transporting them from the Birkenhead Park starting line to the city’s Pier Head for collection at the end. The company will also ensure that the water stations along the course are stocked with the tens of thousands of bottles required. Bibby Distribution’s development director, Paul Byrne, said: “It’s great to be able work in partnership with a high-profile international running event.”

Advertising Feature Independent financial advice

‘Keep calm and carry on’ is the message to investors WITH the recent turbulence in the financial markets, Glyn Jones, of Vale Financial Services, advises investors and people concerned about their pension pots not to panic. He comments: “Billions wiped off the value of pensions, screamed the headlines, even in so-called serious newspapers! Well, that will encourage you to save for your future, won’t it?” Glyn says, as he has written before, talk of billions means nothing to most of us. So what if a few dealers are seen panicking? Should you panic as well? And if you did, what action would you take? He says the facts are that most people are investing their savings and pension money for the longer term, and events like those of the past few days become less significant over time. So the message once again is “keep calm and carry on”! He reports that what is highlighted, however, is the need to put your money with successful fund managers who know how to take advantage of different market conditions, and also how to shield your money in volatile markets. Glyn says equity release, ie, . releasing money from your property, seems to be gaining attention

Equity release seems to be gaining attention – Glyn Jones, of Vale Financial Services, Denbigh at present, and there are several reasons why this can be an attractive option for many people. And he stresses that an IFA will make sure you consider all the alternatives, understand the product thoroughly, and, if considered appropriate, discuss it with the family. He says your solicitor will also ask questions, so nobody should feel uneasy about these products

once they have taken professional advice. He stresses that you should make sure that your adviser uses a company that is a member of SHIP (Safe Home Income Plans), as their plans will have to include valuable guarantees. Glyn says these include a “no negative equity guarantee”, which means that, when the loan is repaid, there can be no claim on

your estate beyond what the property is worth at the time. If you are approaching retirement, you have more options available to you than ever, with new products arriving on the market. No longer do you have to buy an annuity fixed for life, although we should remember that this is quite often the preferred option! For example, he says, new plans can allow you to access the pension commencement lump sum, without starting to draw an income. This is being looked at by more people who may have a use for a lump sum but do not necessarily need the income immediately. And he adds: “Another recent innovation allows for fixed- term annuities, rather than the ‘fixed for life’ approach. These allow you to take an income for a set number of years, with the option to fix again then. One possible benefit from this approach is that your health at that time might qualify for an enhanced rate. As ever, ask all these questions and be comfortable that you understand what you are buying.” ■ VALE Financial Services is a trading style of pi Financial Services, which is authorised by the Financial Services Authority.


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Wednesday, August 24, 2011

LDP business .co.uk

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Dangers of allowing hope to triumph over experience and reality

Alex Turner HOPE can be a useful characteristic, in business as it is in life. The hope that things will improve, that tomorrow will be a better day than today, can be what ensures that proposals are still written, sales calls

are still made, and progress is still made. The problem with hope is when it becomes mendacious and seeps into the rational element of our thought process. Take the Sunday night coverage of the events in Libya. Rolling 24-hour news is problematic at the best of times, with the amount of information available rarely substantial enough to fill the time allotted to it. Rolling news tries to solve the problem of the fog of war by putting its main beam on, but all you get is brighter fog. Having tired of Sky and BBC coverage, I flicked over to Russia Today, where the same events

were given a very different spin. But, regardless of the broadcaster, in the place of facts comes supposition and optimism – it is invariably what the commentator hopes will happen. But, by allowing hope to triumph over experience, or, more particularly, knowledge, we give up the only justification for our future actions. That came to mind 24 hours later when I was with a group of business people in Birmingham, and talk moved to the official tourism figures for the Liverpool city region.

Scepticism increased as each piece of information was relayed. The sector supports 41,000 jobs and boasts 11m visitor staying nights per year – averaging 30,000 people every night of every week. There are, apparently, more than 48m day visitors – not far off 1m a week. Giving it more than a moment’s thought, it is obvious there’s either a problem with the data or with the criteria. It doesn’t matter which, but the consequences that flow are important. These are the numbers that shape our perceptions and shape our city

‘Problem with either the data or with the criteria’

region’s policy. And, of course, if you believed these numbers were real, in the sense that the city region actually received a tangible benefit from 48m day visitors and 11m overnight visitors, collectively we wouldn’t have anything to worry about. But, if those seem like inflated numbers, try this one: £75,000. That’s the salary attached to the advertised position of The Mersey Partnership’s director of visitor economy. Is that position worthy of that salary? Here’s hoping. ■ ALEX TURNER is the general manager of financial training firm Ambitious Minds.

Tall Group gathering pace after sluggish first half by Tony McDonough

LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com

RUNCORN-BASED Tall Group has supplied 3m ballot papers for a referendum in the African state of Liberia. The secure print, card and payments specialist has also struck a major deal with credit and debit card giant Visa. Last week, LDP Business reported on the firm’s latest published results, which showed a rise in turnover but a fall in pre-tax profits. Tall Group specialises in printing secure paper documents from cheques and credit notes to certificates and ballot papers. It operates from three sites – in Runcorn, Hampshire and Leicestershire, employing more than 200 people. In an interview with LDP Business this week, managing director Martin Ruda admitted the first half of the year had been slow, but was upbeat on prospects for the remainder of the year. Earlier this year, the Runcorn site printed 7.5m ballot papers for the South Sudan independence referendum. And this month it has supplied 3m ballot papers for a constitutional referendum in Liberia. Mr Ruda said: “When these types of jobs come up, we have to enter a competitive bidding process. “Once a bid is accepted, the process then moves very quickly. “With the Liberia contract, we had just one week to get all the details for the printing and then everything is collated and shipped out by air. “For the Sudan and Liberia jobs, we had UN inspection teams at the Runcorn site inspecting the numbering sequence on the ballot papers. “They would then pick them up at the other end – it is a complex shipping arrangement. “We have done jobs for Iraq where we have security guards who will literally accompany the shipment from door to door.” In December, 2009, Tall Group acquired Hampshire-based ID Data Cards for £270,000. The division produces secure plastic cards, and Mr Ruda said this week it had won accreditation from Visa. He added: “We will produce debit and credit cards for Visa and we

Tall Group managing director Martin Ruda – says he’s confident about future growth prospects expect the first tranche this year. Other big contract wins for Hampshire include the NHS European health insurance card. This will see us printing 10m cards a year, and it is our first UK Government contract.”

The firm’s base in Leicestershire provides electronic payment solutions, and is benefiting from an increase in the number of firms who wanted to switch payment methods. “Economic volatility has slowed

down decision-making over contracts,” said Mr Ruda. “People were deferring contracts earlier in the year, but we are expecting a stronger second half and I am confident we will continue to grow.”

Business duo to help city academy TWO Liverpool businesses have joined forces, with support from the Community Foundation for Merseyside, to make a long-term joint investment in a project with North Liverpool Academy. Law firm, Hill Dickinson and digital agency, Mando Group, have pledged to donate a percentage of their net profit to charitable causes and are working together to develop an international social enterprise element of NLA’s Student Leadership Academy. The Academy is one of the UK’s top 10 most improved schools and is situated in an area of social and economic deprivation. The project will nurture the leadership skills of young people by developing their enterprise capabilities, self-awareness and interpersonal skills to aid their careers in the future. As well as the financial investment, both Mando Group and Hill Dickinson will be investing their time and expertise to help build the confidence and employability of the students. Matt Johnson, chief executive at Mando, said: “We may be small, but we are passionate about seeing the opportunities of others increased by the small contributions we make. We have some incredible talent within our company and each and every one one of us would like to reach out to help those less fortunate than ourselves. “We believe this partnership will be a huge success.”


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Wednesday, August 24, 2011

LDP business .co.uk Bill Gleeson Does Grosvenor have big plans for Lord Street? THE £19.1m purchase of the row of shops on Lord Street that the Duke of Westminster’s Grosvenor has bought from Land Securities is slightly puzzling. It might be nothing more than a tidying up exercise for both parties. For Land Securities, which also owns St John’s and Clayton Square shopping centres, it might be the equivalent of selling a bit of junk at the back of the garage. It’s hardly a crucial part of their portfolio, and they may have said to themselves “if they want it, they can have it. It’s not much use to us”. For Grosvenor, it makes sense, because the buildings are immediately next to its city centre shopping estate. The Lord Street shops back onto Liverpool One. So it just might be helpful from the perspective of some arcane property law issue, or maybe it’s easier to manage refuse collection of road sweeping with the shops incorporated into the Liverpool One estate. I would, however, prefer to think that there was some grander strategy in the making. Wouldn’t it be nice, for example, if the real reason for the purchase was that another big department store name has seen the trade being done at Liverpool One and has decided it wants a piece of the action. Grosvenor could easily knock the row of shops down and build a new store facing onto Lord Street, just like Debenhams does a hundred yards down the road. Or maybe it’s just the yields are good. At 6.4%, it’s certainly a steady return. CAN Ethel Austin’s new owner make a go of the chain when others have failed in the past? You have to remember that it isn’t just previous owner Elaine McPherson who has struggled to turn the famous Liverpool retail name into a viable

proposition. Before her, there was a management team led by Phil Hoskinson. He and a team of fellow managers had big ambitions to double the number of stores, including opening Ethel Austin shops in parts of the country where the group had no previous profile. As the adjacent feature demonstrates, new owner Sue Townsend certainly has a plan. Maybe the failure of Ethel Austin and its erstwhile alternative incarnation of Life & Style resulted from the failure to pay attention to some of the important details of retailing, as Ms Townsend suggests. Alternatively, though, the problem could be down to the highly competitive nature of the discount segment of the retail market. When you look at the progress of Primark and the fact that much of what you can buy in Ethel’s can these days be found in Tesco, it is easy to see why the job of keeping your niche is all the more difficult. Or, as the recent British Retail Consortium’s survey suggests, it’s just tough out there at the moment and you have to be brave indeed to venture forth in current conditions. IF YOU had no particular affinity to Queens Park Rangers, would you buy the London football club, rather than Everton? Indeed, if you were a Middle Eastern sheikh, would you buy Manchester City without at least taking a look at Everton, if it were on the market? Probably not. So why can’t Bill Kenwright find a buyer? Price could well be a sticking point. Everton must be Mr Kenwright’s principal asset, so he can’t let go of it without obtaining good proceeds for it. On the other hand, laden with debts, the club is not worth very much to others. If so, we could be stuck in this impasse for many years to come.

‘A great little h

Ethel Austin’s new owner tells Bill Gleeson about her plans to revive the struggling stores group SUE TOWNSEND plans to return retail chain Ethel Austin to its North West roots and breathe new life into the oncefamous high street name. Following her acquisition of the North West stores of the financially collapsed retail chain from its administrators last week, Ms Townsend now plans to beef up business processes and attract more shoppers to the stores. The first thing she has done is ditch the Life & Style name that it had been trading under for the past 18 months. Ms Townsend told the Daily Post yesterday: “Of the current 62 shops that we bought, 59 are still trading as Ethel Austin. “It was the Ethel Austin brand that I was interested in. “Their by-line was quality clothing at affordable prices. That can still be true of this brand. “It’s a great little high street chain. “It just needs the processes and the product to be made right for existing customers.” The 62 stores acquired by Ms Townsend had previously belonged to Elaine McPherson’s Life & Style chain. These shops had traded as Ethel Austin stores before Ms McPherson changed the name. Between them, Life & Style and Ethel Austin businesses have been in administration three times in the past three years. Ms Townsend did not acquire another 40 stores in other parts of the country that have now been closed. “The previous administration lost their way with the Life & Style brand and forgot the core customer,” said Ms Townsend. Ms Townsend, formerly a director of Blackwell’s bookshop chain, dismissed concerns that Ethel Austin had suffered lost market share because it could not compete with rivals such as Primark and Matalan. She said: “From the point of view of an outsider looking in, it wasn’t about the competition as to why it failed. “There was definitely a customer base there. “Matalan and Primark run very different types of operation to Ethel Austin’s traditional high street shops, which have a relatively small floor space. “I can see that statement (about the competition) running true for Life & Style’s 25,000 sq ft shops, in places like Watford, but, in the North West heartland of the Ethel Austin brand, those retailers are not direct competition.” As well as restoring the Ethel Austin name, the new owner plans to radically overhaul the way the chain does business. She believes efficient business processes are key to ensuring a profitable future for the chain that has otherwise struggled to remain viable in recent years. Ms Townsend said: “There’s a fantastic brand in Ethel Austin. “There’s lots of opportunity to do things the brand has never really embraced. “They never had a digital platform. As many value retailers trade well on a digital platform as premium retailers.

E-bay is the UK’s biggest digital platform and I would not say that’s a premium site. “The existing chain has lacked a lot of the retail disciplines. It needs a strong promotional and marketing calendar. “You need to give your customers regular reasons to return to your shops. You need good value, frequent promotions. “We need a customer relationship marketing plan. I would like to go out and engage with our customer base. “We will be advertising the promotions. At this stage, we could do with a very solid direct programme of marketing. We will be using email and text messaging and local media. “My priority is to stabilise the existing 62 stores. I’m an old school retailer. The adage ‘retail is detail’ is absolutely true. This is a chain that lacks processes.” One of the first things Ms Townsend will do with the shop portfolio is intro-

‘There is a fantastic brand in Ethel Austin’

duce a model shop concept. She explained: “We will take an existing shop in the portfolio and use it to test operational processes and practices – what is the best way to lay out a shop and how often should window displays be changed? – all the things that make a retailer the retailer it is. “We can then roll the successful model out to all of the portfolio.” Ethel Austin was previously headquartered at Knowsley before Ms McPherson moved it to Altrincham, close to her own home. Could it now return to the area? Ms Townsend said: “At present, we are definitely staying where we are, though on a much reduced footprint. “But obviously I recognise the brand’s affinity with Liverpool. “I never say never.” She will be trimming back on the Altrincham head office overheads to make them more appropriate to the reduced size of the Ethel Austin business. Ms Townsend said: “It previously


9

Wednesday, August 24, 2011 IN ASSOCIATION WITH

the big feature

LIVERPOOL’S INVESTMENT SPECIALISTS

high street chain’ The new owner of Ethel Austin has pledged to revive the brand

Sue Townsend, who bought Ethel Austin this month

Retail investors continuing to face difficult conditions

designed all of its support functions to support a much larger chain than it had. “It was over ‘footaged’ at Altrincham, in terms of warehouse and office space. “We have no immediate or even medium-term need for that much space. We want to keep the cost base tight so we can invest in front-of-house areas. “The majority of the chain still looks very good, but having been through three administrations there is some remedial work that needs to take place and housekeeping work across the whole chain.” Ms Townsend said that she expects to retain the services of the 470 staff taken on by her new business. “I have acquired people,” she said. “The people have been ‘TUPEd’ over. I’m expecting to keep them all. “There’s only one thing I can’t foresee. It’s my intention to keep all the shops, but we need to speak to every landlord.” Asked whether she planned to expand

the business beyond the current 62 stores, Ms Townsend said: “Absolutely. “I’m really positive about the future. “I want to stabilise the existing chain first. “I’m as ambitious as the next girl, but we will do it in a controlled way.” Ms Townsend was the commercial director of Oxford-based academic bookstores Blackwells for 3½ years. She left that post in spring, 2009, after helping oversee the turnaround of what was a struggling business. She has since continued providing consultancy services to Blackwells, but this arrangement is coming to an end shortly. In 2008, she founded Gifted In, a consultancy business that advises retailers on how to develop own-brand products. She is also a director of the Edward De Bono Trust and is a Fellow of the Royal Society of Arts.

‘You must give shoppers reason to return’

■ BILL GLEESON: Page 8

IT’S A brave move to acquire any retail chain during the current slow economic conditions, but that doesn’t seem to be stopping people. Sue Townsend is only the latest entrepreneurial retailer to buy a struggling chain with a view to turning its fortunes around. Anil Juneja, who owns Speke-based retailer Benross, made a similar move when he recently acquired six TJ Hughes stores. But these acquisitions come as industry figures show that all types of shop location saw fewer customers pass through over the past three months as the squeeze on consumer incomes tightened. The problems have seen a number of household names appoint administrators including Oddbins, Moben, Habitat and Jane Norman, with a number of others announcing high street store closures. Footfall, or the number of people visiting shops, fell by 1% in the three months to July, with 11.2% of high street and shopping outlets vacant at the end of May, according to the

British Retail Consortium (BRC). The figures, which were for a period before this month’s riots, are despite a one-month improvement in July in all three types of destination – high street, shopping centre and out of town – due to the start of the school holidays and early summer sales. The BRC said the figures overall continued to reflect the tough times for consumers, with high inflation, low wage growth and job uncertainty key reasons for the reduced number of shopping trips. Areas with a high level of public sector employment have suffered the most, with Northern Ireland and Wales seeing the worst falls, and also registering the highest level of shop vacancies. Diane Wehrle, research director at Springboard, the report’s co-author, added that retail parks and malls were now being affected as much as town centres. Last week, Asda also said its customers were cutting back on trips to its stores, due to high fuel prices.

private business ASICS runs up 53% rise in sales

SPORTSWEAR specialist ASICS UK saw profits soar by more than 30% as demand for its trainers and running shoes continued to grow. The Warrington-based company saw sales in 2010 of £59.7m – up from £38.9m the previous year. And accounts recently filed at Companies House showed ASICS UK reported a pre-tax profit of £6.1m – up from £4.7m in 2009. The directors’ report says: “Turnover increased by 53.4% during the year primarily due to the continued upward trend in demand for running shoes. “Profit before tax increased by 30.9% due to the increase in turnover outweighing the increase in operating costs. “The directors expect sales to be maintained at the current level or better for the foreseeable future with continued healthy profit figures.” ASICS UK is part of the ASICS group, which was founded in 1949 by Kihachiro Onitsuka, and is based in Kobe, Japan. The name, ASICS, comes from the Latin phrase “Anima Sana In Corpore Sano”, meaning a “sound mind in a sound body”. ALISTAIR HOUGHTON

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Wednesday, August 24, 2011

LDP business .co.uk briefing Profits plunge at steel firm Severfield STEEL group Severfield-Rowen said underlying profits in the six months to June 30 fell 59% to £3.4m “against the backdrop of a prolonged and unprecedented period of weak demand”. However, the company, which recently won work on British Land’s Cheesegrater skyscraper, in London, said its UK order book rose after it won market share.

Segro suffers a downturn PROPERTY group Segro reported that pre-tax profits fell 57% to £64.6m in the six months to June 30. Segro, which is behind some of the UK’s largest industrial estates, said net rental income was down 6% at £135.5m. Its vacancy rate at the end of the period was 11%, down from 14% a year earlier.

New facility TELECOMS giant BT is to open an international routing facility in the Western Cape of South Africa. Customers will connect to the BT network via a co-location site in Cape Town. BT operates one of the largest global Internet Protocol (IP-based) networks in the world.

Revenues up MARINE services provider James Fisher said underlying profits rose 9% to £17.4m in the six months to June 30, while revenues improved 12% to £148m. The company works with a number of clients, including BP.

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Post-conflict Libya could offer huge opportunities by Sebastian Tong

LDP BCORRESPONDENT business@liverpool.com

INVESTORS peering through the receding fog of war will find plenty of promise and a few pitfalls in a post-Gaddafi Libya. If peace takes hold in Africa’s largest oil producer after a six-month civil war, the long-dormant economy could rapidly flourish, provided there has been no substantial damage to the oil and gas infrastructure underpinning its national wealth. Much remains undecided as anti-government forces gain control of Tripoli in their final push to end the four-decade rule of Muammar Gaddafi, but a new Libyan government could herald a bonanza for Western companies and investors. “Libya is a fantastically wealthy country that doesn’t need foreign money but foreign expertise,” said Emad Mostaque, chief Middle East and North Africa strategist at Religare Capital Markets. “This could be the start of an experiment in hydrocarbon-fuelled capitalism with a lot of money up for grabs.” Though less advanced than the rest of North Africa, even prior to the civil war, the Libyan economy has ample resources it could marshal for national reconstruction. An estimated $150bn in sovereign assets once controlled by Gaddafi and his inner circle has been frozen abroad by foreign governments, and 144 tonnes of gold is held by the Libyan central bank. Combine that with a modest population of 6.4m and standards of education on a par with established emerging economies such as Malaysia and Mexico, and Libya looks well placed for recovery, said Sven Richter, head of frontier markets at Renaissance Asset Managers. “From that point of view, they are in a quite enviable position,” he said. A sovereign wealth fund set up in 2006 to manage Libya’s oil revenues could also prove pivotal if the new government does not purge all personnel associated with Gaddafi. Though somewhat depleted, the Libyan Investment Authority still holds billions of dollars in cash and a number of lucrative equity stakes in Western blue-chip companies such as Pearson and UniCredit. It could spearhead infrastructure development and make up for some of this year’s slump in foreign direct investments which, according to United Nations data, swelled Libya’s coffers by $3.8bn last year. Investment from the fund could also help broaden the Libyan economy away from oil and help attract other sovereign wealth funds and longerterm foreign investors. Politics, however, remains key. “In the last couple of weeks, there have been increasing questions about the unity of the rebels, especially after the killing of General Abdel Fattah Younes just 12 days ago,” said Raza Agha, MENA economist at RBS. The death of the rebel military commander, after he was taken into custody by his own side for questioning remains unexplained, underscoring the disparate nature of the rebel

As Libyans celebrate the fall of Gaddafi, analysts say the country has great economic potential Picture: ALEXANDRE MENEGHINI

Libyan oil refineries will be a major source of wealth National Transitional Council as a mix of Gaddafi opponents. “Beyond Gaddafi, there is a lack of any unifying institution or individual. In Egypt and Tunisia, for example, the military was held in high esteem by the population,” addedMr Agha. If it can hold together, the new gov-

ernment is likely to be friendly towards the West, having come into power supported by Nato air strikes. An official at Libyan rebel oil firm AGOCO has already said the company may have difficulties working with China, Russia and Brazil, which opposed tough sanctions on Gaddafi.

So Western companies look well positioned as billions of dollars in oil exploration and construction contracts come up for grabs as part of the reconstruction effort. Religare’s Mostaque also expects Qatari banks and firms to benefit when Libya reopens its doors to investment. Qatar was quick to establish links with Libyan rebels and was the first Arab country to contribute planes to police United Nations-backed no-fly zones over the country. Until fighting broke out in February, Libya was the world’s 12th largest oil exporter, though its output was modest, coming in at about 1.6m barrels a day or 2 % of global oil output. The disruption of Libyan supply was thus easily compensated for by increased Saudi production. The incoming government will likely focus on raising the country’s production capacity, with a view to capitalising on its oil reserves, the ninth largest in the world. Investors also see potential in Libya’s banking and insurance sector, which briefly enjoyed foreign investor interest when decades of Western sanctions were lifted in 2004. France’s BNP Paribas took a minority stake in a local bank when banking rules were eased, and Renaissance’s Richter expects foreign interest to revive when stability returns. “Financial services demand will be driven by the oil industry,” he said.


11

Wednesday, August 24, 2011

LDP business .co.uk

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Home loans market remains flat amid sluggish growth MORTGAGE lending by Britain’s biggest banks was flat last month, figures showed yesterday, as demand for borrowing remained subdued amid a sluggish economy. Gross mortgage lending remained at £7.6bn last month, equal to the previous month’s lending, according to the British Bankers’ Association (BBA), after an 11% fall

between May and June. Elsewhere, the number of mortgage approvals was up 4% month on month at 74,950, while remortgages increased 7% to 26,043. David Dooks, BBA statistics director, said: “Demand for borrowing from both households and companies continues to be weak, reflecting slow growth in the economy.”

Net mortgage lending – gross lending minus repayments – was up in the period by 1.7% at £900m, while unsecured credit, such as loans and credit cards, contracted by 1.1% to £100m. Retail sales continue to grow slowly – edging ahead 0.2% in July – so consequent demand from consumers for unsecured borrowing remains

weak, the BBA said. Companies repaid loans more than they borrowed in July, leaving net lending of minus £8.6bn. This compares to a surplus of £6.8bn in June. The biggest decline in net lending came from financial companies, possibly due to half-year accounting reasons, while non-financial net lending was flat. Brian Murphy,

head of lending at independent mortgage broker Mortgage Advice Bureau, said the July figures reflected mortgage applications made before the summer holiday period when, historically, mortgage lending drops off. He said: “A stronger indicator as to the health of the mortgage market will be mortgage applications.”

New export figures belie gloom in manufacturing by Peter Cripps

LDP CORRESPONDENT business@liverpool.com

THE manufacturing recovery received a surprise boost today after a survey showed that demand from overseas helped lift orders this month. Economists described the latest findings from employers’ organisation the CBI as reassuring, after the business group reported that a balance of 1% of manufacturers said order books were above normal, up from minus 10% a month ago. This was driven by an improvement in exports, which were seen as being broadly at normal levels, while expectations for growth over the next quarter rose for the first time since March. One business enjoying growth is car maker Jaguar Land Rover, which earlier this month revealed a 4.9% jump in second -quarter sales, compared with the previous year, helped by strong demand from China and Russia for its products, including the Freelander 2 Land Rover, built at its Halewood plant, in Knowsley. The survey was welcome news after a raft of gloomy data that showed that the sector has slowed in recent months, giving rise to fears that the Government’s plans for an export-led recovery were failing to gain momentum. However, the CBI warned that the sector still faced a growing threat as stock market volatility hit business confidence, amid fears of a global recession. Richard Woolhouse, CBI’s head of fiscal policy, said: “Manufacturing order books are holding up, and expectations for output growth are above their historical average, although they are less strong than earlier this year. “But the risks to manufacturing activity and business confidence have, if anything, increased, due to market

Jaguar Land Rover’s factory, in Halewood, is enjoying a healthy growth in exports volatility and the recalibration of growth expectations worldwide. “Concerns around growth in the US and the Euro area present further challenges to the manufacturing recovery.” The survey also showed inflationary

pressures have continued to ease after strong price rises in the first half of 2011 and remain “fairly modest”. A balance of 9% of manufacturers expect to raise prices over the next three months, which is up on the 4% last month, but below the figures of

Picture: DAVID JONES

more than 30% seen in the first half of the year. Samuel Tombs, an economist at Capital Economics, said: “August’s survey provides a bit of reassurance that the recovery in the manufacturing sector has not completely petered out.”

UBS to slash headcount by 3,500

Oil potential

BRITISH employer UBS has became the latest banking giant to announce job losses, as it struggles with a sluggish global economy and increased regulatory pressures.

CAIRN Energy said it was “excited” by the potential offered in Greenland, despite failing to find oil four years after it launched its exploration campaign. The Edinburgh-based oil explorer plans to expand the total number of wells from four to 10.

The Swiss firm, which employs around 6,000 staff in the UK and 65,000 worldwide, said it would reduce its headcount by 3,500 as part of a bid to save £1.5bn by the end of 2013.

The job cuts, which were signalled last month and were less than the 5,000 initially feared, will come predominantly from its investment bank and wealth management

division. UBS could not specify the number of losses in the UK. The move comes after Britain’s biggest banks announced a bloodbath of job cuts across the industry.

news

Safety worries boost for G4S COMPANIES needing more protection in tough and uncertain times have given a boost to security giant G4S, the firm that will help guard next year’s Olympic Games. Revenues jumped by 5% to £3.76bn in the first six months of 2011 and demand is increasing in most areas, it said, with a strong pipeline of UK Government work. After the recent riots, the UK’s prison population is at record levels and the group, which already runs four prisons and handles electronic tagging for 12,000 people, welcomed the Government’s recent plans for more private sector involvement in the treatment of offenders. More outsourcing both from governments and financial institutions is “very firmly” on the agenda, it added. The group’s £100m Olympics contract will see it recruit and train 10,000 security guards to work alongside the police and local authorities to oversee security at both the Olympics and Paralympic events. G4S’s UK and Ireland arm, which already employs 40,000 staff from over 80 offices, increased revenues by 6% to £612m in the latest half-year, despite the loss of its UK Border Agency contract and lower sales in Ireland. Profits rose by 11% to £50m as margins improved. The UK cash transfer business saw lower revenues while G4Si, the jewellery and diamond shipment arm, increased revenues by 16%.

LDP

MOBILE

FOR News, Sport and Business on your phone

Text LDP to 67800


12

Wednesday, August 24, 2011

LDP business .co.uk

location

LIVERPOOL’S INVESTMENT SPECIALISTS

IN ASSOCIATION WITH

It’s down to us to make sure that Enterprise Zones actually work

view point

by Sean Beech, senior partner at Deloitte’s Liverpool office LAST week, the Government announced 11 new Enterprise Zones across the UK. It is a move that aims to drive

growth and innovation among early-stage businesses by offering simplified planning rules, super-fast broadband and tax breaks for companies. The Chancellor, who launched the first zones as part of the 2011 Budget in March, said 30,000 new jobs would be created by 2015 by supporting economic development in local enterprise partnership areas such as Liverpool, Warrington, Cheshire and Greater Manchester. However, previous Enterprise Zones introduced by Margaret Thatcher and John Major in the 1980s and 1990s respectively, could

Smith auction date WIRRAL-BASED Smith and Sons has announced details of its forthcoming property auction, offering a mix of residential refurbishment opportunities and investments across Wirral and Liverpool. To be held on September 7, at the Village Hotel in Bromborough, a total of 27 lots will be available

on the day. These include residential refurbishment opportunities ideal either for first-time buyers or for investors/builders with scope for resale. Auctioneer Chris Johnson said: “This catalogue has already attracted a good level of interest and we feel that there are several good opportunities.”

BUSINESS to BUSINESS Commercial Premises

Business For Sales

COMMERCIAL PROPERTY To Let long or short term lease. Suit variey of uses. Close to Liverpool City Centre. Approx 6,000 sq ft, £1,200pcm 0151 944 1184

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UNITS / OFFICES From

£20p/w

0151 255 0100

Commercial Premises UNITS TO LET 5,000−15,000 sqft. Initial Rent free period. 0151 486 0004 COMMERCIAL UNIT/WORKSHOP Rainhill to let £65pw, £750sq ft 0161 980 1912 INDUSTRIAL UNITS To Let. South L’pool 500 to 4000 sqft, monthly tenancy, competitive rents. From £50pw Tel: 0151 427 5051

By order of Administrators of Mayfield Construction

COMMERCIAL YARD AND

ANCILLARY BUILDINGS CHARLEY WOOD ROAD KIRKBY • Suitable for a variety of uses • +/-1.4 acres • Freehold Contact: andrea@davidcurrie.co.uk www.davidcurrie.co.uk

fuel an argument that jobs created could simply be displaced from other areas, and that the cost of setting up the zones could outweigh the economic benefits. In addition, a Work Foundation report suggested that zones typically provided only a three-year boost to an area, and therefore lack sustainable growth. Investment in Enterprise Zones is definitely welcome, but it’s difficult to imagine this will meet the economic and job creation goals the Govern-

ment is seeking within the next four years, especially as detail around some of the Enterprise Zones is patchy. Obviously, there are two Enterprise Zones identified in Merseyside that will cover major regeneration projects. They are Liverpool Waters and Wirral Waters. So, as a business operating in this area, our hope is that they will be a success this time round. The aim is that designation as a zone will help to accelerate delivery

‘A move that aims to drive growth in regions’

of these developments, contribute to the Liverpool superport plans and attract much-needed investment and jobs to the region. Whether, in the long term, the Enterprise Zones are a success or not, the impact of being involved in this legislation cannot be undervalued or ignored. It has brought two key schemes onto a national stage and provided our LEP with a springboard for private sector growth and wider regeneration. The Government has given the region an opportunity. It’s now down to us to make it work.

Final slots taken at Innovation Park site

This space could be working for you. For details telephone

0151 227 2000

DAILY POST

This space could be working for you. For details telephone

01512272000

DAILY POST

Existing tenants within Liverpool Innovation Park are growing and taking extra space

by Tony McDonough

LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com

EXPANSION plans by existing tenants at a 33,000 sq ft building in Liverpool Innovation Park (LIP) mean that the complex is now fully let. Independent game developer Spiral House, creative and online specialist agency e-blueprint and technology firm Crosby Systems are among the companies to have taken additional space within the business centre in recent weeks. Baird House is set in landscaped grounds within the former Marconi headquarters site in the heart of the Edge Lane campus in Liverpool. It offers 33,000 sq ft of refurbished office space over three floors and is currently home to 25 businesses. Dr Mark Tock, innovation manager at

LIP, said the Park’s “flexible offering” makes it possible for growing SMEs to expand into new premises in as little as 24 hours. He added: “It is great to see SMEs within the LIP community flourishing and a noticeable increase in overall collaboration among businesses on site. “As commercial landlords, we always try to be as flexible as possible to meet the needs of ambitious, growing businesses and many are surprised to learn just how easy it is to relocate to or within LIP.” Spiral House, creators of games on all leading consoles, PC and wireless platforms, has increased its office space from 782 sq ft to 1,021 sq ft. Spiral managing director Kevin Oxland said: “The business is going from strength to strength, making it the ideal time to move into larger offices.

Picture: TONY WEST

“The Park was so supportive of our plans and our new office was arranged within a day of our enquiry.” Creative agency and online marketing specialist e-blueprint, formed in 2004, has also expanded its presence in Baird House. The company, which started with just desks, now has a 239 sq ft office. Managing director Nick Taylor said: “We’ve come a long way since starting the company and we’ve grown, in part, from the business we have generated from collaborating with other companies based at LIP. “This expansion marks another exciting chapter in the business, and with a strong pipeline of work under way we have high hopes for rapid growth over the next 18 months.” Crosby Systems has now taken almost 700 sq ft of offices in Baird House for three years.


13

Wednesday, August 24, 2011

LDP business .co.uk

IN ASSOCIATION WITH

LIVERPOOL’S INVESTMENT SPECIALISTS

City Science Park welcomes new trio of tenants A FORENSIC investigation practice, a national health and social care charity and a biomedical innovation firm are the latest companies to move into Liverpool Science Park. The arrival of Afentis Forensics, the Huntington’s Disease Association and Med Epad brings the total number of organisations based across the park’s two centrally-located innovation centres to 65. Afentis Forensics is a leading forensic investigation practice whose services have been used in numerous highprofile and nationally significant cases. The firm offers a broad range of services, including computer and telecommunication analysis, audio-visual exhibit assessments, DNA profiling and firearm studies, and is the only forensic provider that makes its own software. Chloe Young, business development director at Liverpool Science Park, said: “We are delighted to welcome three such dynamic organisations. They are the perfect complement to Liverpool Science Park’s growing community.”

Afentis Forensics is one of three companies that have signed up for space at Liverpool Science Park

Traders fill up town market by Tony McDonough

LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com

KIRKBY Market is reporting its highest occupancy rates for more than seven years. Over its three trading days, the current average occupancy rate is 93%. This is compared with an average of only 85% at the beginning of April this year. The pitches are proving so popular with traders that there is currently no more space available on a Tuesday, with Fridays and Saturdays also filling up fast. Cllr Dave Lonergan, cabinet member for regeneration, economy & skills on Knowsley Council, said: “We have seen a real increase in the number of traders taking space week on week and this has continued to rise. “The current figures are the best we have seen in years and, despite difficult financial times for us all, the market is doing really well. “It is a really encouraging sign not only for the market itself but for the wider town centre and these figures come before £1.5m of improvements to the market are made. “These planned improvements are in addition to the private investment of more than £200m that is due to be ploughed into regenerating the town centre. “It definitely looks as if the future is bright for both shoppers and traders.” Kirkby Market has been open since 1960 and only last year celebrated 50 years of trading. The market boasts 130 stalls for both permanent and temporary traders, selling a wide variety of goods.

Cllr Lonergan added: “I think Kirkby market offers visitors a unique shopping experience and I think it really captures the current trend for shopping locally. “There is always something for everyone and with such a vibrant and exciting atmosphere. As for traders, they can always be sure of a bustling atmosphere and in the current economic climate I think the flexibility that is offered from casual as well as permanent pitches is appealing.”

Logistics firm in site deal PEEL has let a 1.8 acre site in Ellesmere Port to distribution firm Reynolds Logistics. The site, which is located just off Junction 8 of the M53, is close to Merseyton Road and Ellesmere Port Docks. Reynolds is one of the leading bulk logistics companies involved in the distribution of bulk fuels, lubricants, bitumen, specialist liquids and hazardous goods throughout Ireland, the UK and Europe. The company has taken the Ellesmere Port site on a 10-year lease to help maintain its continued expansion. David Smith, property manager at Peel, said: “We are pleased that Reynolds Logistics has seen the benefit of being located in Ellesmere Port.” Legat Owen acted on behalf of Peel.

YOUR NEW OFFICE… RENT FREE! *SUBJECT TO TERMS AND CONDITIONS

Cllr Dave Lonergan – Kirkby Market offers visitors a unique shopping experience

location

OFFICES@DOWNING.COM


14

Wednesday, August 24, 2011

LDP business .co.uk Aerospace & Defence

66034 538

324

116

Avon Rbbr

269 xd

+14

36978 24818 BAE Systems 25834 73612 485

Chemring

+34

49858

+178

24558 17338 Cobham

17734

+134

39758 26134 Meggitt

31412xd -318

665

58612

-12

14278

-178

553

Rolls-Royce

19058 11114 Senior

Automobiles & Parts

13812 GKN

32334 236 385

33578xd

-214

-18

20112 Scot Am

22114

+312

533

42618 Witan

438

+338

Index 1959.65 ▲ 1.14 20418 13058 BT Gp

84

45

14512

859

51034 Bco Santander 541

14512xd

-34 +712

+14

KCOM

28534

+78

395

30278

+114

28038 Sainsbury

44058 360

Tesco

37714

-12

6634 712

734

112

Thorntons

4714

-14

7758 2712 Lloyds Banking2814

+34

Food Producers

5018 1958 Ryl Scotland

20

+38

Index 5294.36 ▲ 13.96

1959 132112 Stan Chart

132112xd-712 1182 940

Beverages Index 8855.62 ▲ 88.15 1395 1031 Barr (AG) 50312 302

Britvic

30914

+4

1122

+1

2340 1841 SABMiller

2087

+4212

18738 8612 Elementis

13578

-118

1667

+24

Construction & Materials Index 2927.73 ▼ 16.22 35714 23018 Balfour Beatty 23034

-38

265

+12

Costain

148234 97218 CRH 1418 970

204

100114 +1778

Kier Group

1164

7634 3512 Low Bonar

65

12412 8812 Marshalls

97

-16

35358 Drax Gp 27938

Intl Power

1423 1108 Scot&Sthrn

+8 -14

1244xd +11

Electronic & Electrical

440

Domino Ptg

15478

+778

23614

+214

1010 350

826

-312

377

263 xd

23212 Volex

-34

Equity Inv Instruments

138

74

119

6712 Barratt Dev

228

+178

15734 11314 Dunedin Sml

14258

-38

49214 39238 Edin Invst

445

+234

52 Adv Medical

1812

212 AEA Technology 244 Albany Inv Tst 834 AMEC 2334 Anglesey Mining 23018 Balfour Beatty 2914 Beale

2039 99712 Fresnillo

1892xd -147

-234 +312

London Stk Ex 805 xd

General Industrials

72412 41214 Cooksn Gp

463

+1038

6

218

Cosalt

238

-12

400

293

Rexam

34518

+4

26614 12534 Smith DS

18434xd +34

1429 90712 Smiths Gp

91712

+112

9712 Redrow

Brown (N) Gp 26114

7738 56

Debenhams

39734 21412 Bodycote

26434

85312 53812 Charter

747 xd +125

42212 198

31258xd

116

8612

4312 Molins

31212 12112 MS Intl

24712

2512 Renold

29

2812 1138 Dixons Retail 1138

-38

JD Sports

86412

-812

28718 19812 Kingfisher

22658

+112

42712

32778

-158

62712 36358 Mothercare

36714

-34

2426 1868 Next

2238

+24

Var 5Day

+318

2 58

+338 - 38

-1 -612

-512 -43

+3

High

1691

+26

1720

+7

Industrial Transportation

BBA Aviation 156

Aviva

12334 8938 Lgl & Gen 547

31618

21114

24434 172

-1

-112

50

-4

-3

1255

1257 139

-158

Resolution

25558

Standard Life 19414xd

61812 BSkyB

59412 36314 D Mail Tst

Low

1112 JJB Sports 1534 Johnson Serv 410 Nichols 9812 NWF 26 Park Gp

750 1435

Index 639.76 ▲ 22.73

Price

2712 19 10234

32 520 xd

Tobacco

2728xd +28

2231 1784 Imperial Tob

2068xd +20

3153 1742 Carnival

479

301

easyJet

31734

Enterprise Inns 3914

1199

409

350 xd +178

32012 PZ Cussons

+8

Pharma & Biotechnology

283212xd+1012

1385

112712 GlaxoSmthKln

129712xd+20

50

3112 Vernalis

3814

+118

Real Estate

62912 44712 Brit Land

-178

430

240

285

164

+10

42814xd +712

Holidaybreak 42714

53112

-1 2

-512

Intl Cons Airlns 164

-312

15514 12014 Ladbrokes

12414xd +218

11718 87

89

361

Marston’s

+78

22918 Mitchells&Btlrs 23512

-5 8

335

12158xd +278

23814 Restaurant Gp 26934

26812 170

24434

+234

Thomas Cook

4378

-178

+50

31034 Gt Portland

35514

-934

27178 14734 TUI Travel

14834

+34

1145

+11

885

59812 Land Secs

741

+3

1887 1368 Whitbread

1445

-9

6870 4425 Randgold Res 6640

-230

3426xd

+5

5514 3234 UK Coal

39

+12

Mobile Telecoms Index 3732.47 ▲ 37.81

Index 692.55 ▲ 4.88 2490 1271 Autonomy

2490

6312 3812 Emblaze

47 23578

Kewill

8578 xd

Logica

8138

+78

24514

+4

+612

36414 22134 Invensys

18234 14938 Vodafone Gp 16458

+158

108

85

14714

8012

302

23134 Sage

Index 1427.14 ▲ 8.67 1754 1397 Admiral Grp

1535

+14

1912 141512 Marsh McL

166758

-512

14312 10912 RSA Insurance 11334xd +34

+4

34618 28714 Centrica

30338

1265 99712 Dee Valley

1255

+258

-4

214

2034 1346 Aggreko

1755

+39

20778 77

Ashtead Gp

9938 xd

-114

214

112

Dawson Intl

178

568

364

Berendsen

49214 +1312

838

478

Eckoh

634

-1 4

67612

Bunzl

72712

125

1112 JJB Sports

1934

+14

+2412

1

1534 Johnson Serv 32

+14

45

+12

33914

+14

29478 190

Electrocmps

19234

+112

12

4

Metalrax

738

-1 8

Experian

67012

+212

550

385

Portmeirion P 460

26438 +2034

17312 55

Redhall Gp

7614

+14

34434

+134

6214 18

Scapa Gp

4712

-1 2

34114

18312

Interserve

32114

-214

550

425

Menzies J

501

-812

+13 -234

34

RSA Insurance

1914 Speedy Hire

xd 24

+3 -134

-314

4634

3412 Sportech

3734

- 12

4634

2514 Telme Gp

4112

-314

5514

3234

-15

2

UK Coal

1 Ultima

39

+12

- 12

1 14

-22

2072

1688 Unilever

2042 xd

+4

+7

-814

63112

54312 Utd Utils

57912

-1

-13

HSBC INVESTMENT FUNDS (UK) Balanced

-

British

92.91

-228.80

Gilt & FI

-

66.89

-236.30

Monthly Inc

-

1.26

228.80 3.01 3.10

236.30 6.01

119.80

4.36

HENDERSON HORIZON FUND European Smllr Cos A Sterling Bd Unit Tst

834.20

- 54.13 -

0.14

56.55 4.46

390.20

-264.60

Capital

3.26

275.20 1.10

European

-

661.20

0.70

Far East

-

532.10

1.80

Swallowfield

114

9534 67

99

Uniq

9558

+18

712

Young A

650

-19

525

-

183.53

FUNDS High

Low Funds

Price

Var

Consols

£90932

£761132 Cons 4% .................£7734

£59116

£50 Cons 212% ............ £59116

Conversions

£8134

£69 Cnv 312%.................£7212

Treasury

£6238

£50 Tr 212% ....................£6238

Currency

Tourist

Buy

Sell

Australia

dollars

1.49

1.571

1.576

£11512 £1062132 Tr 9% 12............. £1062132

Canada

dollars

1.55

1.632

1.634

£10658

Denmark

krone

8.11

8.533

8.543

European Union

euro

1.09

1.145

1.147

yen

0.75

In order to give a greater range of Unit Trust information, covering a larger number of trusts, the list of funds changes each day as follows: UNIT TRUST MANAGERS DAYS PUBLISHED A to Com ................................................... Tuesday F to Inv....................................................Wednesday JP to Pru...................................................Thursday Roy to T .........................................................Friday

Country

Japan

+14

142

+1212

£ ABROAD

-14

-

Sing ASEAN

3034 Man Brnze

-412

-2021.29 2105.51

INVESCO FUND MANAGERS

Crimson Tide 138

+34

-

Property Bonds

0.10

Armour Gp

11334

236.60

382.90

36

10912

-224.77

-

86

14312

-

Pacific Acc

North Amer Acc

AIM

32112 Hyder Cons

-3412

-

887.66

Index 745.66 ▲ 3.49

23734 G4S

-278

565.01

-843.28

0.40

1234 178

Var 5Day

-536.76

International Acc

3.40

158

Price

Index-Linked Acc

351.30

258

▼ 0.24%

GUARDIAN

171.70

-1 2

Low

1.27

163.76 4.52

-

+312

High

752.33

-

452

Var 5Day

-

-152.67

Inc & Gwth

4212

26714

0.01

International

4958 1014 API Gp

34634 18034 Northgate

0.01

640.80

-1

690

-612

1624.00

-

-1

78912

92012

-

Sth East Asia

1434

85312 54912 De La Rue

AMEC

Spec Sits

57912

+414

1251 834

0.10

63112 54312 Utd Utils

291

+9

0.57

125.60

1517 1291 Severn

29378

Index 20496.71 ▲ 27.89

203.00

-

-158

63912xd -112

79412 63512 Capita

Oil Equipment & Services

-

Jpan Spec Sits

Pennon Gp

801

+1

Japan

73712 565

396 xd +578

Premier Oil

4.54

+434

37518 BP

32714

191.70

National Grid 59612

125012xd+1312

47214 28138 Cairn Energy

-

HILL SAMUEL UNIT TST MGRS

156412 104912 BG 509

1.75

Income Plus

63212 530

Index 3869.48 ▲ 64.88 AEA Tech

0.32

311.60

Index 4517.02 ▼ 2.06

Support Services

1812 212

1517.00

-

UK Equity Inc A

Utilities

+638

Software & Comp Servs

44278

Nonlife Insurance

4378

Stagecoach

445

4712 3105 Rio Tinto

-

Gwth & Inc

+514

2954 2282 Daejan Hldgs 2529

24478

American

Gilt & Fixed

+6

33114 23238 SEGRO

-

-3 4

Intercontl Htls 955

15334 10314 Rank Gp -714

504.30

-4 -278

9038 1014 Punch Taverns 1014

Index 1958.11 35314 23738 Big Yellow Gp 23778

40334 Greene King

1435 955

Index 9108.91 ▲ 102.04 3385 254312 AstraZeneca

518

Yield

-

Euro Sel Opps

34714xd +378

1598 1085 Go-Ahead Gp 1426

Offer

Price Gross

Amer Spec Sits

Pratical Inv

1750

51112 Compass Gp 53312

Price

GARTMORE FUND MANAGERS

Index 3885.07 ▼ 9.99

612

Bid

Terms

FIDELITY INVESTMENT SERVS

Travel & Leisure

94612

-14

11018

2871 2181 Br Am Tob

1493 94512 Tullow Oil

42

9712 Redrow

Index 31071.73 ▲ 313.79

83312 606

38634

+112

58 xd

Spirent Coms 11834xd +138

1964xd +28

-312

1001

Psion

-34

2336 1642 Ryl D Shell B

127 xd

82612 Rathbone

2014

-34

-4

-10

BATM

+22

535

61812

+14

57

16014 116

514

36712 +1212

down 2.74

1934

33134 ARM Hldgs

Cancel Fund

+7

Tech Hardware & Equip

41258 31114 FirstGroup 1600 82012 Burberry Gp

+412

+14

Index 3519.27 ▲ 9.07

86412

32

9512

590 xd +612

726 JD Sports Fashion

14912

+34

Prudential

301 easyJet

-38 -3214

31834

Media

850

1127 72312 Travis & P

651

UNIT TRUSTS

-14

2261 1223 Wolseley

12234 38

Index 19549.08 ▲ 74.09

24

93112

Index 7298.22 ▲ 100.85

1030

579

-3

Personal Goods

1914 Speedy Hire

Glencore Intl

Index 3616.20 ▲ 10.06

777

-234

Kazakhmys

Oil & Gas Producers

479

36

To assist in the analysis of the market two figures are given for each sector. Firstly an index (set at 100 on January 1 1992) to give a comparison in the performance of various market sectors. Secondly an indication of the percentage change in the price of all the securities within a sector since the previous close.

-1512

Life Insurance

31734

125

-14

2063 1562 Spirax Srco

31514

Smiths News 8314

12012 79

1671 918

72412 38934 Inmarsat

2218 1130 Weir Gp

47778

+14

53118 348

+2

76112 +1112

+114 -78

M&S

Fenner

+14

1119 65712 IMI

45

+34

7634

20434

1983 1103 Lonmin

Index 6199.85 ▲ 172.76

24034 156

5658

Inchcape

+14

Industrial Engineering

1738

31114 221

11018

Index 2065.48 ▼ 28.25

Index 1478.68 ▲ 2.22

32514

120

4314 2214 Taylor Wimpey 2918

+15

+112

99712 Dee Valley

Index 20073.48 ▼ 25.58

139

20034

1429xd +14

1265

+258

+112

Mining

-14

7114

580

+1112

1001

53312

110

1890

1922 1330 Schroders

51112 Compass Gp

+412

UTV

263112 1767 BHP Billiton

1257 82612 Rathbone

612

101

-6

+1

23034

151

1206

1049

51

+512

Trinity Mirror

3648 3015 Reckitt Benck 3286xd +33

1116 72812 Provident

92012

42838 Utd Business 43514

Index 4898.71 ▲ 41.38

668

24512

725

84612 57812 WPP

Aga Rngmstr 9634

DAILY POST REGIONAL INDEX 1142.27

96

124

+34

2234xd

42714xd +214

7338

-1

4534

3437 2234 Anglo Amer

57012 39114 ICAP

Price

109

3712

1634 97712 Antofagasta

1030 726

20538

8914 STV Group

+134

-14

18634

3912

Household Goods

168

131

-134

-34

+112

59012 46114 Reed Elsevier 48214xd +258

McBride

2514 1212 Ashley L

2661.10 ▲ 0.66%

-7

192

29612xd

-11

563

1066xd

Pearson

General Financial

25314

117

Smith Nph

1207 926

+812

20034 3i

FT ALL-SHARE up 17.49

+118

568

42538

Candover Inv 499

521

+1158

5534

Bellway

+138

Br Assets

35714

742

40578 WH Smith

9312 5418 ITV

75312 511

12514

495

92

49412xd +434

11818 Home Retail

777

Low

475

+42

Index 6129.57 ▲ 70.66

235

14012 113

1251

+4

-238

327

28712

+12

28838

39234 30758 Alliance

High

570 2042xd

50412 28434 Halfords

Index 5430.66 ▲ 14.69

Dundin IncGth

Mondi

+12

88812 65612 Close Bros

54012xd +12

12118 Laird

Oxford Inst

523

General Retailers

35718 18918 Morgn Cru

207

40918 Tate Lyle

2072 1688 Unilever

Index 2690.68 ▲ 76.75 705

Premier Foods 1378

Index 2582.15 ▲ 19.75

30134

1999

Index 3212.17 ▲ 8.45

+1

48114

2986 1724 Signet Jwlrs

+238

1076 640

F

Aug 23, 2011

Feb 23, 2011

349

Index 7805.38 ▲ 77.01

44858

220

Health Care Equip & Serv

340

T

Share price (pence)

-812

Electricity

535

240

619 xd

447

W

FTSE-Rebased

606

664

T

260

896

656

M

G4S

-1212

Index 5326.44 ▲ 50.63

2119 1550 Johnsn Mat

280

78212

3518 13

Aug 15 - Aug 19

17534

Those securities which have increased in value since the previous close are shown in bold type.

56212 Carrs Mill

Index 6229.78 ▲ 85.11

188

300

875

Cranswick

5254.03 ▼ 0.76%

s............ dealing suspended xd.............price ex-dividend xs ......... price ex-scrip issue xr ........ price ex-rights issue xc ..... ex-capital distribution xa................................ ex-all £......price value in £ sterling

SPOTLIGHT

+8

Forestry & Paper

+38

Aug 8 - Aug 12

1049

Chemicals

1658

Aug 1 - Aug 5

AB Foods

42478 33418 Dairy Crest

1178

1307 1050 Diageo

2081 1230 Croda

4940

30834 16838 Prem Farnell 10718 7412 Rentokil

34

KEY

-14

7234

30814 26234 Morrison W

47

FTSE-100

Cble&W Wwd 3518

51218xd +118 -38

20-Day Moving Average

5720

5129.42 ▲ 0.67%

20 DAY MOVING AVERAGE down 40.31

5200

73078 50958 HSBC Ireland

5980

Index 4405.97 ▲ 0.52

Index 3310.92 ▲ 5.87

FT-SE 100 INDEX up 34.12

16234xd

Food & Drug Retailers

33312

Closing Indices

FTSE 100 INDEX

5460

Fixed Line Telecoms

Banks

Barclays

+3

252

7838 34

177 xd

Hend Sml Cos 269

29518 Law Dbnture

Keep track of all the major share moves of the day with our live FTSE ticker at www.ldpbusiness.co.uk

+114

27118xd +34

6118 3114 Cble&W Com 3158

Index 4138.38 ▼ 51.43 245

Edin US TrkTst 54714

32778 26334 Forgn & C

Index 2878.22 ▲ 2.66

LondonStockMarketatClose

120.43

126.170

126.270

£10238 Tr 5% 12................£10238

-132

£121516 £115932 Tr 8% 13.............. £115516

-132

£114332

£109532

-132

£105732

Tr 5% 14..............

New Zealand

dollars

1.85

1.977

1.982

£110532

Norway

krone

8.55

8.985

8.986

£3402932 £310532 Tr 212% IL 16 ...... £3391516

Poland

zlotys

4.19

4.758

4.766

Sweden

krona

9.97

10.468

10.478

Switzerland

francs

1.24

1.301

1.302

Turkey

new lira

2.78

2.940

2.950

United States

dollars

1.57

1.649

1.650

Tr

734%

£112716

12-15........£10614 -1932

£142316 £1322132 Tr 834% 17 .......... £1401116

-116

£150316 £1332732 Tr 8% 21.............. £149116

+116

War

£84316

£6712 War Ln 312%.............. £83

+2

Last night, the pound was worth: $1.6494 (up 0.0043)............. 1.1460 euros (up 0.0020) ............. 120.43 yen (up 0.01) .............Its trade weighted index was 80.20 (up 0.20) Metals in $ per troy ounce: Gold 1864 (down 13.00)....................... Silver 42.46 (down 1.03)....................... Platinum 1890 (up 3.00) ...................... UK base lending rate 0.5%


15

Wednesday, August 24, 2011

LDP business .co.uk London market THE London market made nervous gains yesterday as hopes that the US would announce more stimulus measures were countered by more weak economic data. The FTSE 100 Index closed 34.1 points higher, at 5129.4, as traders were buoyed by hopes that Federal Reserve chairman, Ben Bernanke, would announce more quantitative easing on Friday to boost the US economy. The London market had been up nearly 100 points in early trading, but it lost much of its earlier progress after more disappointing housing and manufacturing data from the US. Banking stocks, which have taken a battering in recent days, made slight gains. Royal Bank of Scotland was up 0.3p at 20p, Lloyds Banking Group was up 0.7p at 28.3p, and HSBC was ahead 1.1p, at 512.1p. Mining companies had been among the best performers in earlier trading as they benefited from a rise in base metal prices. But they lost their gains as metal prices softened in later trading. However, commodities giant Glencore International was still among the best performers ahead of its interim results on Thursday. Gold fell from its recent record high of $1,912 an ounce, to $1,863, causing miner Randgold Resources to slide. The biggest Footsie risers were G4S, up 20.8p at 264.4p, Wood Group, ahead 24p at 542.5p, Arm Holdings, up 22p at 514p, and Glencore, ahead 12.5p, at 367.5p. The biggest Footsie fallers were Fresnillo, down 147p at 1892p, Randgold Resources, off 230p at 6640p, International Consolidated Airlines Group, off 3.5p at 164p, and Legal & General ,down 1.6p, at 95.5p.

IN ASSOCIATION WITH

LIVERPOOL’S INVESTMENT SPECIALISTS

market comment

Reasonsto becheerful aboutworld investment markets

INVESTMENT markets have recently experienced very high levels of volatility. World share prices have fallen by a precipitous 18% from their May highs in Sterling terms (as measured by the Morgan Stanley World Index, to August 19), whilst those assets perceived as safe havens have seen strong gains. In the past couple of weeks, investors’ concerns about future Lehman failure. In spite of widespread growth have developed a sharper edge, systemic fears, corporate debt markets spurred particularly by worries that are very much open for business – the the failure to deal decisively with polar opposite situation to the soEurope’s sovereign debt issues has called “credit crunch”. raised the possibility of a nightmarish Thirdly, the health of the systemic financial setback, of corporate sector is an outthe sort experienced in 2008. standing asset. The combinaWe do not dismiss this postion of robust corporate sibility, but we still believe health and a functioning that a much better outcome is banking environment give far more probable. both an incentive to invest The foundation of our when times are good, and optimism rests on a number room for patience if the outEmail us with of pillars. Firstly, important look is more uncertain. your views at progress is being made in They also provide a sound letters@ Europe. The recently dailypost.co.uk, valuation basis, which is announced mechanisms for or write to us manifest starkly in the appealPO Box 48, Old containing the contagion look ing, well-covered dividend Hall Street, to be credible – now it is a yields offered in global blueLiverpool matter of the timeliness and chip stocks, both in absolute L69 3EB scale of their implementation. terms and relative to fixed Secondly, the financial sysincome alternatives. tem is significantly more robust than There is a final intangible difference it was three years ago. Central banks between now and 2008 which lies in worldwide are fully engaged as lenders the nature of investors and their of last resort, having in place many investments in stock markets. Today, mechanisms to channel liquidity into there is a much reduced use of leverthe banking system. age and far greater appreciation of In addition, the banks themselves risk – with very few naive partiare more aware of the risks, more cipants. This is no indicator of future transparent to regulators and better riches, but like the health of corporate capitalised than in the run up to the balance sheets mentioned above, it

What do you think?

The credit crunch conditions that caused the collapse of Lehman do not exist any more, our analyst says Picture: JOHNNY GREEN provides some protection against inclement conditions, limiting the surge of forced sellers that is generally a feature of the most painful market declines. We are optimists, but not myopically so. The banking system is more robust than in 2008, but it is not invulnerable. No modern bank can survive the insolvency of its host country and linkages between countries make such events difficult to isolate. In addition, it is certain that even once these uncomfortable waters have been navigated, the Western econom-

ies are due for a prolonged period of sub-par demand growth as the deleveraging of both consumer and government balance sheets progresses, producing a volatile political climate as a spin-off. In the meantime, our growing reliance upon increasingly assertive, unpredictable developing economies, such as China, India and Brazil, is also a source of potential surprises, both positive and negative. John Haynes, Head of Research, Investec

For all the latest local and national business news online, log on to www.ldpbusiness.co.uk

business diary Tuesday, August 30 “Driving Your Business Forward” is a free seminar organised by Barclays Bank, featuring The Directors Centre managing director Robert Craven speaking on the tools and techniques vital to business success.

It will be held at Barclays Mobile Presentation Suite, B1 Business Centre, Speke, from 11.30am. Email daniel.styler@ barclays. com to book a place. Wednesday, August 31 Downtown Liverpool in Business is holding a

debate called The Beautiful Game – the Business of Football, on whether or not football is now too money-dominated. On the panel will be Liverpool FC managing director Ian Ayre, and Everton FC chief executive Robert Elstone. The venue for the debate is the Hilton Hotel, in Liverpool city centre, from 8.30am to 10.30am.

Thursday, September 1 Freelancers and homeworkers who want to work in a different environment are welcome to attend the latest Jelly Liverpool event. The co-working event aims to provide a friendly, wi-fi enabled space where people can escape their usual working environment. This month’s event

will be held at Leaf Cafe, in Bold Street, from 9am-5pm. For details, visit openlabs.org.uk/jelly/ Wednesday, September 7 The BioIndustry Association (BiA) is holding a BIO breakfast meeting at the MerseyBIO Incubator, in Liverpool. The event is free to attend and open to members of the BiA, along with non-mem-

bers from start-up companies. Wednesday, September 7 Liverpool Chamber of Commerce is holding a workshop on Marketing Research for Exporters. For details on the event, which takes place at the Chamber’s Old Hall Street base, visit www.liverpool chamber.org. uk Tuesday, September 20

This is the latest event staged by the Liverpool Chinese Business Network aimed at growing links between the city’s Chinese and nonChinese business communities. The venue is the China Palace Restaurant on Liverpool’s Berry Street. Arrive from 6.30pm for a 7pm start, and dinner will be served at 7.45pm.


16

Wednesday, August 24, 2011

LDP business .co.uk trading gossip ■

NEW head brewer Jim Kerr, below, may only have been at Cains for a few weeks, but his pride in the brewery is already obvious. Just before getting his picture taken by LDP Business, he looked at the metal tops of the brewhouse kettles – the copper whirlpools – which quickly get dusty when the nearby grain mills are working. “They need to be hosed down before the photos,” he declared. And so, while Trading Gossip waited, he rushed to turn on a hose so managing director Sudarghara Dusanj could soak the metal domes, leaving them shining for their moment in the spotlight.

JOBS can dictate where people take their holidays, according to a survey by Virgin Atlantic. It says bankers are likely to head to New York and estate agents to Spain. The study also revealed that doctors and airline cabin crew are most likely to holiday in the Caribbean and lawyers mainly go to France. Shopaholics feed their spending bug in the US, while farmers often switch domestic animals for wild ones on a Kenyan safari. We at Trading Gossip prefer a caravan in Talacre – as befits our status.

LDP CREATIVE FOR the latest news from the creative sector

www. ldpcreative. co.uk

IN ASSOCIATION WITH

LIVERPOOL’S INVESTMENT SPECIALISTS

the back page

‘I simply live to wake up and smell coffee’

working day

Sam Tawil, 31, is co-founder and director of Bold Street Coffee, a specialist coffee shop situated at the top of Bold Street, in Liverpool city centre. This was his working day 6.15am: Wake up and ride to work. It’s only a short 10-minute sprint, but it gets the blood flowing so I’m wide awake and geared up for the morning stampede. My favourite part of the day is getting the machine ready. We are getting busier and now need two baristas, so we can make coffee quicker and still maintain perfection in the cup. 6.30am: Make adjustments to the grinders and ensure our coffee tastes its very best. I make coffee for the staff – we are obsessive with the scientific side of coffee, weighing it before and after to get a good brew ratio. We believe this is what sets us apart from the competition, and backs up our claim to brew Liverpool’s best coffee. 7.45am: It is essential to drink a cup of coffee before the customers start to arrive, to make sure I am one step ahead. I also eat some breakfast – usually I try to eat a bowl of fruit yoghurt and honey, or a big bacon butty if I have had a late night. The breakfast rush then begins. I have a long list of admin tasks to do, but I take breaks to chat to customers and friends who come in. 11am: Put out our home-made food and clean the machine after the rush. Cleaning everything in a methodological way is vital. The store’s golden rule is to thoroughly clean our machine three times a day. We’ve developed a brew bar with stools, so you can see how we make the coffee. 12pm: Lunch is by far the busiest time of the day for us, because this is when Bold Street really comes alive. The atmosphere in the shop is always electric. The best part of the job is tasting new coffees. I’m often asked how many coffees I drink a day – the answer is lots of little tastes, rarely a full cup. 2.30pm: Clean the machine and make time to push through any orders. I speak to our roasters, Has Bean, to see what new coffees they have, and we chat about our espresso blend. We work closely with them to select single origin coffees and brew these in many different ways, constantly

Sam Tawil, 31, co-founder and director of Bold Street Coffee, in Liverpool city centre – we aim to make coffee quicker, while still maintaining perfection in the cup working on recipes to get the best flavour. 3pm: Harpist Stan Ambrose plays in the shop. He has become a popular figure in the shop. Music is a vital part of Bold Street Coffee. We have a vinyl record player and spend some of our tips each week on records from Probe, Hairy Records and delving in charity shops. They create a great atmosphere and tickle customers who haven’t seen one for a while. 3.30pm: I leave to do the school run and pick up my son, Hector. We ride

home on our bikes and then I head back to the shop. Things tend to pick up again. 4pm: Word of mouth has been spreading and it’s always satisfying when new customers ask us why our coffee is so good. It comes down to our passion for coffee knowledge, sourcing our beans from amazing farms around the world, and paying our roasters a good whack for it. 6pm: Close the doors, clean the machine again and get everything ready for the next day. Coffee training

is another part of our business – one of our baristas made it to a national final this year– and we mainly do this training after we close down the shop. 7.30pm: After work, I try to get out on my bike, which is a great way to unwind. I try to avoid TV as a way to relax from work and instead enjoy meeting friends. 10pm: Normally I just enjoy a read and usually go to bed later than I should. There’s not enough hours in the day, and I need to rest as it all starts again first thing in the morning.

LDP Business - 24th August 2011  

16-page business news supplement from the Liverpool Daily Post.

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