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Wednesday, May 25, 2011
LDP business .co.uk
news
LIVERPOOL’S INVESTMENT SPECIALISTS
IN ASSOCIATION WITH
Jury still out as Cameron moves to relaunch maligned Big Society
Matt Johnson
ONE of David Cameron’s main focuses when coming to power just over 12 months ago – his desire to create a Big Society – has been kicked around by all and sundry,
applauded by some and ridiculed by others. This week, the PM has returned to his theme to promote the Big Society. This time out, he has played to the perceived strength of his case by zooming in on the way British citizens currently view charitable donations and volunteering. In a renewed effort to promote the Big Society, he is calling for us to give more to charity – in terms of both time and money. Downing Street strategists are looking at how social networking sites can help the Government deliver this part of its agenda. Initiatives include being able to
make charitable donations directly from cash machines or via mobile phones. And, in terms of giving time by volunteering, social networking sites may provide a new vehicle capable of reaching new audiences. When Big Society was first publicised, critics soon emerged. Among them were those who, rather than suggest the devil was in the detail, worried more that there was not enough detail. The more surprising, then, that when he returned to his theme on Monday, Mr Cameron appeared a
little light on detail. For example, the statement on one official site that: “Government policies will also be tested for social value as well as value for money.” Although this particular plank of policy may need more detail, others have been worked up to be presented in what looks to be a much more viable and credible manner. For example, this week we have been told that there will be a £10m social action fund to support measures to promote giving and boost volunteering in priority areas in England; prizes of
‘Initiatives include donations through mobiles’
up to £100,000 for the best solutions to “volunteer challenges”; a £30m fund to improve the effectiveness of infrastructure organisations which support front-line volunteering; £1m to support the Youthnet volunteering website and £700,000 to support Philanthropy UK, which connects wealthy donors to charities. We could believe there is plenty of detail there. But whether or not it’s enough of the sort of detail required to re-energise a previously criticised policy remains to be seen. ■ MATT JOHNSON is chief executive of Mando Group
Women’s Organisation explores Boston trade links LIVERPOOL female enterprise agency The Women’s Organisation linked up with some of the leading female entrepreneurs in the US, including fashion designer Donna Karan, at a high-profile conference in Boston. Chief executive Maggie O’Carroll attended the Simmons Leadership Conference which discussed promoting growth of women’s businesses through international trading. It follows a recent trade mission from Boston to Liverpool, inspired by the takeover of Liverpool FC by the Boston-based Fenway Sports Group last October. It is hoped the new links can boost trade between the two cities. Ms O’Carroll said: “The opportunities for Merseyside and wider women’s business owners to trade with the US are immense.” She added that initiatives like the Golden SEED Angel investment programme, which involves a group of 130 US female “angels” investing in women-led businesses, could present excellent opportunities for female enterprises based in Merseyside.
Maggie O’Carroll, right, Prof Teresa Nelson (Simmons School of Management), left, and Donna Karan
Turbulence in Middle East hitsHolidaybreakrevenues by Graeme Evans
LDP CORRESPONDENT
business@liverpool.com
THE owner of school trips firm PGL said its adventure holidays arm faced a £1.5m hit to profits this year, due to cancellations and lower bookings caused by the uprisings in the Middle East and North Africa. Cheshire-based Holidaybreak said the business, which includes the brand Explore, had enjoyed a period of “very strong trading” prior to the disruption. It said the uprisings led to high levels of cancellations and lower levels
of forward bookings, as well as increased costs in dealing with the disruption. The events are estimated to have cost the division around £1m in lost profit in the first half of the financial year, with a further £500,000 in the second half. It has refined its product offering to focus on more profitable tours but said sales for the adventure arm were still 3% below last year. Losses in adventure rose to £2m from £600,000 a year earlier in the six months to March 31, contributing to wider losses for the group over the
seasonally quieter half-year of £19.2m, up from £17.7m last year. Holidaybreak was also impacted by tougher trading conditions in its Superbreak hotels division, where half-year profits fell £300,000 to £4.2m. Hotel sales are currently 9% below last year, although this is partly due to the loss of lower-margin airport hotel contracts with large travel agents. Holidaybreak said its education arm – its biggest operation and much less exposed to discretionary spending – continued to trade well, with 96% of revenues already secured for this financial year and 39% for 2012.
The company’s PGL UK centres will be accommodating around 6,000 schools at sites including Liddington, in Wiltshire, and Windmill Hill, on the Sussex Downs, during this year. It also reported an “excellent trading performance” from Meininger following the acquisition of a 50% stake in the Berlin-based business, which has city centre sites near cultural locations, including in Cologne, Frankfurt, Vienna, London and Munich. Chief executive Martin Davies said: “We have delivered a resilient performance in the first half despite the difficult trading environment.”
Franchise model ‘thriving in UK’ THE North West franchise industry is holding steady in the face of tough economic conditions, a survey reveals. Franchised businesses in the region generated £1.3bn last year – the same as in 2009 – according to the study by NatWest and the British Franchise Association (BFA). Nationally, in 2010, franchising further increased turnover by £600m to £12.4bn. Since 2006, the sector’s turnover, and number of franchise systems, have both grown by 15%, despite a UK GDP growth rate of only 9.4% in the same period. The number of franchise systems operating in the UK has grown to 897 over the past year, increasing the number of franchise business units to 36,900. An extra 56,000 jobs have been created, taking total employment in the sector to 521,000. Franchising is also helping to drive international trade. Around a third of UK franchisors have units located outside of the UK, additionally, 38% of domestic only franchises plan to expand abroad. Average start-up costs also reduced for a second year to £46,600. Brian Smart, director general of the BFA, said: “Yet again, franchising has demonstrated its inherent tenacity and stability, despite a tough climate last year. “This means many more sustainable business start-ups and jobs have been created by ethical franchising – further helping the UK economy.”