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Moneynoobject forexecutives seekinglove

Networker21

thisweek Puttingthe familyfirst Big Interview 12-13

Citytennis eventlooks tobusiness

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Barristersin actionthreat Legal 14

Rosariais onsong

Networker22

Losing power How energy prices are hitting the business sector

P4 &5


2 post business news

Thursday, November 14, 2013

Appeal to city businesses to join Liverpool’s Santa Dash BUSINESSES in Liverpool are being urged to sign up for this year’s Santa Dash in aid of the Liverpool Post’s children's charity fund, Liverpool Unites. As well as raising a sack-full of cash for a great cause, we want the business community to get behind Liverpool’s bid to re-take the World Santa Dash title. A sign-up day will be held in the Capital building in Old

Hall Street, Liverpool city centre, on Monday, November 18, from 8am to 6pm. Downtown Liverpool in Business chief executive Frank McKenna and ambassadors for the fun-packed 5K, which takes place on December 1, will be there along with a Liverpool Unites representative. Mr McKenna said: “The Santa Dash is a tremendous event which raises vital

funds for charity so it’s crucial that the whole city gets behind it. “It’s certainly a fun and unstuffy way for local business people to get involved in fundraising while soaking the unique spirit and landscape that makes Liverpool’s event stand out from others around the world.” Liverpool took the title from arch-rivals Las Vegas in 2010 but last year “Sin City”

beat us by 714 runners – despite our own record turn-out of 8,500. Organisers this year hope to hit the 10,000 mark for the city’s 10th Santa Dash to stand a chance of claiming back the crown. Liverpool Unites fundraising manager, Claudia Tanner, added: “I’d urge companies to do their bit and really get behind the city's attempt to reclaim the World Santa Dash title.

“Furthermore, please consider promoting Liverpool Unites to your staff as a charity to support in the run.” People can register on the sign up day or online by visiting www.btrliverpool.com/event/santa-dash to register. Please then register with Liverpool Unites by email. Those running can easily set up a fundraising page at www.sponsorme.co.uk.

U-turn over legal change that could have cost jobs in city by Alistair Houghton POST BUSINESS STAFF

alistair.houghton@liverpool.com

LAWYERS have welcomed a Government U-turn on legal reforms they feared could have led to job losses in Liverpool. The Government wants to cut down on the number of “fraudulent and exaggerated” personal injury (PI) claims. It was planning to increase the small claims limit from £1,000 to £5,000. That would have meant that any claims worth less than £5,000 could only have been dealt with at a small claims court without solicitors – and local law firms employing thousands of people feared that could cripple their businesses and restrict access to justice. But the Government has now decided to defer that change. Cllr Nick Small, Liverpool City Council’s cabinet member for employment and skills, had written to Justice Secretary Chris Grayling to insist that while local lawyers would welcome a clampdown on fraudulent claims, “the overwhelming majority of PI claims are from genuine victims of RTA or work-related accidents”. And he said Liverpool legal professionals were “extremely concerned that the scale, speed and depth of the proposed changes will dramatically reduce an important income stream without leaving enough time for firms to adapt to the new conditions”. He added: “The Law Society locally has calculated that there are 2,658 registered PI solicitors in our city region, with a total of 10,000 local jobs dependent upon these services. All of these jobs will come under threat should the proposals as they stand be implemented.” And he warned: “In addition to the direct effects on access to justice and local employment, I am also concerned about the unquantifiable knock-on effects in other areas of legal work such as welfare, criminal work and pro bono work currently undertaken. “There is little doubt that smaller PI firms would be the hardest hit by this legislation as margins become squeezed, driving all PI work to banks of lower qualified staff in larger commercial firms.” Mr Grayling wrote back to say the Government still believed there were “strong reasons” for raising the small claims threshold for PI claims. He added: “However, we have also accepted evidence from stakeholders

Justice Secretary Chris Grayling says ‘the time is not right’ for changes to small claims limits

St Helens launches £2m fund for firms A £2m FUND has been launched in St Helens for businesses looking to expand and create jobs. The St Helens Jobs and Growth Fund, a grant programme funded by the Government’s Regional Growth Fund, aims to support businesses to access the finance they need to grow and create new jobs within the private sector. It is being managed by St Helens Chamber and will offer grants of up to £70,000 for companies for whom suitable finance is not available elsewhere. Grants are available for a range of projects that will help create jobs, such as purchasing new premises, expanding current premises or capital expenditure on plant and machinery. Geoff Bates, RGF programme manager at St Helens Chamber, said: “This new fund is great news for St Helens. “Businesses in St Helens want to invest, to grow and create jobs and this funding will give them the opportunity to leverage private sector finance. Businesses can apply for grants of up to 20% of their total project value. Eligible projects should have a minimum total value of £20,000. The maximum grant available is £70,000. A For further information and to download a form go to www. sthelenschamber.com/rgf

POST BUSINESS DAILY that the time is not right to do so now.” Cllr Small told Post Business: “I welcome the concessions announced by the Government. “Everyone wants cheaper motor insurance. It’s right the Government is looking at reducing the number of fraudulent and exaggerated whiplash claims. But it’s also right that any reforms don’t reduce access to justice and damage Liverpool’s economy. “I’m pleased that by working with Liverpool law firms and Liverpool Vision, we’ve been able to get the Government to think again on their original proposals, which would have resulted in job losses in the city. “I’m committed to working with Liverpool Vision to make sure we get the Liverpool legal sector listened to by Government.”

Philip Waters, senior solicitor at 2020 Legal, parent company of Your Legal Friend and Camps Solicitors, said: “We have been proactively campaigning against an increase in the small claims limit from £1,000 to £5,000 for some time and are encouraged to see that this proposed reform has now been deferred. Increasing the limit now on top of the vast range of legal reforms already implemented this year would have had serious consequences. “However, we must continue to ensure that the innovative PI sector on Merseyside is rigorously represented at top level. That is why we are joining forces with Cllr Small, Liverpool Vision and other regional firms to support both access to justice for individuals and help shape the future of our industry.”

A revolution in the way business people get their news

Cllr Nick Small

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Thursday, November 14, 2013

news

Airbus group out in force at prestigious Dubai Air Show EADS, the parent group of planemaker Airbus, will be out in force at next week’s Dubai Air Show. The group, which employs more than 6,000 staff at its wingmaking plant in Broughton, near Chester, will feature its huge array of technologies from commercial and military aircraft to satellites and secure communica-

tions systems at the November 17-21 event in Jebel Ali. The region is a key sales generator for EADS which has representative offices already in the United Arab Emirates, Saudi Arabia, Oman, Qatar and Egypt. EADS chief executive Tom Enders said: “The Dubai Air Show is one of the world’s premier gatherings for the

aerospace and defence community. “EADS is a leader in this market and a trusted partner for governments and commercial customers in a range of activities.” Airbus will feature displays by its double-decker superjet the A380, and a full-size cockpit mock-up of the A350 extra wide-body air-

craft currently undergoing test flights. Exhibits will also include product demonstrations through iPad applications and videos on smart luggage, cabin comfort, innovation on board Airbus aircraft and technology that is helping to make aviation more efficient and sustainable. Mr Enders added: “Gulf

leaders have shown strong leadership and vision in recognising the aerospace and defence sector is a key driver for technology and economic growth. EADS is proud to partner many of the region’s most prestigious companies and be trusted as the provider of technology for many of the region’s most important programmes.”

World first for Daresbury in science to industry project The Hadron Collider and inset Weaver Vale MP Graham Evans with Neil Burns

post business 3

STEP INTO MY OFFICE Robin di Stefano, general manager of Living Room

‘Christmas is brilliant I'm of the school that you plan for Christmas in March, and having only been with the company since August its been a game of catch up’ Full video interview available at www.ldp business.co.uk

CiC shares tips in new book by Helen Davies

POST BUSINESS STAFF

helen.davies01@trinitymirror.com

THE first business which will be allowed to carry out research using the world’s biggest piece of science equipment as part of a pioneering project has been announced. Warrington-based 3D printing firm Croft Additive Manufacturing will work with a business incubation centre (BIC) located at the Sci-Tech Daresbury campus which has been established by the Science and Technology Facilities Council (STFC) in partnership with CERN, the Swiss-based scientific facility which is home to the Large Hadron Collider. The STFC CERN BIC will nurture up to 10 companies over the next two years with a support package which includes direct access to CERN’s technologies, expertise and intellectual

property, up to £40k funding, a dedicated STFC business champion and 40 hours of free access to technical expertise and facilities across STFC. The aim of the scheme, which could eventually be introduced in other countries, is to help bridge the gap between science and industry. Paul Vernon, head of campus development at the centre, said: “Daresbury has a history of launching things that are the first of their kind and are then rolled out in other parts of the world. “This is a two year pilot, with the response we’re getting now and the feedback we’ve had it’s probable we’ll go beyond the two year pilot.” Mr Vernon said the last 10 years have seen a move away from “doing world class science for the sake of science”. “Science is still incredibly important but it’s much more relevant to be able to demonstrate the outputs of

that investment now,” he said, “One of our jobs at STFC is to produce economic impact and try to get the UK economy involved.” This week saw Dr Sergio Bertolucci, director of research and scientific computing at CERN, welcome Croft Additive Manufacuting to the incubation centre. The company, which launched in January this year and employs six people, is a developer of revolutionary additive manufacturing printing technology, also known as 3D printing, to produce bespoke metal filters applicable to all industries, including the aerospace, automotive and energy sectors. Neil Burns, director at Croft, said: “For a small business to be working with a giant like CERN is superb. “It gives us access to a scientific site we wouldn’t normally have.” Medicine, telecommunications, IT and security are just a few of the sec-

tors where inventive new businesses can make an impact using key technologies from STFC and CERN. These include particle accelerators, high performance computing, superconductors and cryogenics. Dr Bertolucci said: “This is the first time that CERN has been involved in a dedicated business incubation initiative. “The BIC builds a bridge between our technical experts and entrepreneurs in the UK. “This knowledge-transfer scheme could inspire other member states to establish more national business incubation centres and turn CERN’s innovative ideas into business opportunities.” To date spin-out technologies from CERN have included the world wide web, touch screen technology for tablet computers, more efficient solar panels and and new ways of imaging cancers.

WIDNES-based national social care charity Community Integrated Care (CiC) has contributed three chapters to a prestigious new care sector book. The charity is featured in Not Another Care Handbook: Pearls of Wisdom for Care Managers, a new book produced by the team behind the magazine ‘Caring Times’. The publication aims to enhance the skills and understanding of managers in frontline care services and features contributions from 109 care sector experts who share insights they have gained in their careers.


4 post business big feature

Bill Gleeson More political will needed to back NW green energy sector DURING a recent roundtable discussion Cammell Laird chief executive John Syvret claimed the green energy sector could create 30,000 manufacturing and engineering jobs in the region over the next two decades. Mr Syvret has previously said that if his Cammell Laird shipyard business could win just 10% of the work required to construct the next round of Irish Sea windfarms it would mean his Birkenhead workforce could rise to 2,000 and grow turnover to £500m. Furthermore, the construction of components used in nuclear power stations could add many thousands of more jobs to the region. During the round table event, hosted by Liverpool Community College last week, Mr Syvret said all that was needed was the “political will” to make it happen. However, there appears to be a problem. Cammell Laird and others are already finding it difficult to recruit the necessary professional and skilled people. For example, Mr Syvret described how, despite a trawl of Britain’s universities, he has failed to fill a number of vacancies at his shipyard for naval architects and naval engineers. That surprises me. Given the current high level of unemployment you would have thought there would be a queue for such jobs. One of the issues that politicians are going to have to address is how best to tackle the skills shortage. IT’S good to see that the Institute of Chartered Accountants in England and Wales is throwing its weight behind next year’s International Festival For Business (IFB), which will be staged in the city region during the summer. The ICAEW has chosen the IFB to launch the publication of the first part of its grand and ambitious Business Futures report. This is the ultimate think piece, which attempts to grapple with the major issues likely to affect British business in the years ahead. These

issues include, for example, the skills shortage, an aging population, demand for energy and changing attitudes towards corporation tax. According to the Royal Academy of Engineers, Britain needs 100,000 science, technology, engineering and maths graduate every year for the next decade, but our universities are only turning out 90,000 a year including international students. These are indeed the crucial issues facing British firms and the publication of Business Futures should help set an agenda for the IFB. IT WILL be fascinating to see how Marks & Spencer fares with its newly-expanded venture in India. The company is struggling to recover its poise in the UK after a move into more stylish fashion appears not to have paid off. The move into India will focus on a more basic range of clothing. M&S plans to open 86 stores by 2016 from 36 currently. It is a bold move. British retailers, such as Tescos, have not always succeeded when moving overseas for a variety of reasons. However, It is good to see British brands attempting to move into emerging markets. In fact, it is absolutely necessary that they do. One of the fundamental causes of the financial crisis was the trade imbalance between emerging nations like China and India and traditional industrialised Western nations. To avoid a future crisis, the West’s trade deficit needs to be narrowed, and that requires selling more goods to these vast, growing economies. Of course, retail is not really the way to do this as, in all likelihood, most of the products sold in India by M&S will probably not be sourced from Britain. Indeed, a good deal of it will probably come from India. Nevertheless, the basic idea that consumers in emerging economies need to spend more on Western goods and brands is correct.

Thursday, November 14, 2013

Firms squeezed The rapidly rising price of energy bills is forcing up the cost of doing business. Bill Gleeson reports

A

GREAT deal has been said and written about the effects of the rising cost of energy on domestic budgets – but what about the effect on business? Gas and electricity prices have risen faster than the annual rate of inflation for the best part of a decade and in recent years the pace has accelerated further. Nor is it just energy costs that are hurting business profits. Other costs such as wages and business rates are adding to the burden. The rising cost of doing business has replaced worries about access to bank lending, according to the Forum for Private Business (FPB). The problem of rising business costs was highlighted by the results of a recent survey by the FPB . The FPB’s Cost of Doing Business survey, carried out among its members, shows firms are still facing an uphill battle to make ends meet, despite positive signs of an economic recovery. The results showed that 94% of businesses have seen an overall increase in their business costs. 87% of businesses reported an increase in energy costs, 83% in transport costs, 78% a rise in marketing costs, and 69% a rise in the cost of raw materials/stock. Worryingly, the report also identified that 41% of small business owners admitted to being unable to pass any rising costs onto customers, forcing them to cut their own costs to keep prices static. Just 2% were able to pass on costs in full. Alexander Jackman, the FPB's head of policy, said: “The major reasons for increases in prices are predominantly down to transport and energy prices rising, coupled with the continued weakness of sterling for importers. The economic outlook may be better but costs still remain an issue for our members and a key focus of our lobbying and support services. “Unfortunately, it doesn’t look as if there is going to be any respite from energy hikes any time soon, despite the ongoing political pressure to take action to introduce more competition in the market, with many of the major players recently announcing significant increases and others expected to follow suit.” Mr Jackman added: “They have been above inflation now for a good number of years – four times the rate of inflation over the last 10 years – and over the last three or four years the rises have become more significant. “The majority of businesses can’t pass on all of their costs and some don’t pass on any. Only 2% pass higher costs on in full. “It’s either coming out of profit or reserves or even running at a loss and continuing in the hope that conditions pick up and get better. “There is a danger energy costs could send some companies under. Certain companies could be tipped over the edge.

“In the main, though, energy costs are not their biggest bill. It is just another pressure sending the cost of doing business up. “You see a lot of talk in the media about the cost of living crisis but not a lot about the cost of doing business crisis. “Everything across the board has been rising: business rates continue to rise above inflation and there are concerns about fuel prices. “All of those price rises have made it a difficult period, but now that the economy is picking up hopefully they will be more easily absorbed.” Mr Jackman explained: “The issue is not so much competition, as its much better in the business sector, it’s the switching process. Some suppliers object to switching, not for good reasons but to keep a customers tied to them.” Businesses can seek to switch their energy supplier, but their existing suppliers can object on the grounds that they are owed money or the request is outside of terminational window.

Firms unable to pass on costs to customers

Mr Jackman said: “There is evidence from Ofgem that suppliers are objecting in order to keep business with them, which is not helpful for the energy market.” While annual inflation has continued to fall from 3% to 2.7%, the research also found that prices have continued to rise faster for micro, small and medium-sized employers at 6%, although this is less than the 6.7% figure reported by the FPB last year in research into business costs, suggesting things are improving – albeit slowly. One bit of good news from the survey is the finding that a significantly lower proportion of businesses are concerned by credit restrictions this year, with a higher proportion seeing credit restrictions as having little impact on their operations. However, credit restrictions are still apparent, with 26% of businesses feeling they have less leeway in coping with business costs than they had last year. 81% of firms indicated that rising business costs have been detrimental to their business while 73% have had cash flow issues as a result and it has had


big feature post business 5

Thursday, November 14, 2013

as energy prices hiked The rising cost of energy continues to hurt industry

Alexander Jackman, the Forum for Private Business’ head of policy

Britain’s energy industry is facing a ‘Fred the Shred’ moment, warns government minister

detrimental effect on 51% of firms when looking to invest. About 51% also reported that it has been detrimental to employment levels and 63% feel that it has inhibited their plans for growth. The worries have emerged despite the recent positive news about the economy, yet rising business costs could continue to restrict the ability of many SME’s to take full advantage of the signs of recovery, with 83% of business owners quizzed expecting prices to continue to increase, and 16% expecting a significant increase. Other frequently cited exacerbating factors were customers paying late (59%) and competitors offering products below cost price (51%). Excessive administrative demands forced on businesses by the government, banks and customers meant that 35% of businesses have not been able to focus on business activities. Changing payment terms had been a problem for 24% of businesses in dealing with suppliers, and 26% in dealing

with customers. Mr Jackman said: “The findings suggest that significant action is still needed to tackle late payment by strengthening the Prompt Payment Code to prohibit businesses from signing the Code if they have extended payment terms in the last 12 months. We would also like to see the government make it compulsory for PLCs to declare their annual payment time statistics in annual audits to support better payments. “As well as positive action on late payment we’d like to see further steps to help small firms with business overheads. We’d like a freeze on business rates and small business multipliers next year. An extension of small business rates multipliers until the end of the current parliament would also be welcome and we’d like to see the government commit to undertaking independent research into business rates.” The FPB also wants an undertaking from Government not to raise fuel duty again before the end of this parliament.

‘Some suppliers object to firms switching’

ENERGY customers should not be seen as cash cows, to be “squeezed” in the pursuit of a higher return for shareholders, a Government minister has said. Energy Secretary Ed Davey told Energy UK’s annual conference held in London earlier this week that trust between firms and customers was breaking down, amid continued controversy over soaring bills. Power companies had to make profits so they could invest in energy infrastructure, secure supplies and develop more energy efficient technologies, as well as create jobs, he told the London conference, adding: “But those profits cannot come at the expense of the elderly, the vulnerable, and the poorest in our society. Customers are not just cash cows to be squeezed in the pursuit of a higher return for shareholders. “Trust between those who supply energy and those who use it is breaking down. It is

so difficult for people to work out what exactly they are paying for that they fear the big energy companies are taking them for a ride when bills go up. “Fair or not, they look at the big suppliers and they see a reflection of the greed that consumed the banks. So this is a ’Fred the Shred’ moment for the industry. You deliver an essential public service, so your industry must serve the public - and the public must have trust in what you do.” The minister said the Government was looking at how it could reduce the impact of its policies on bills. “But our commitment must be matched by a commitment in industry to open up your books and set out exactly how you are bearing down on your own costs to make bills as low as possible. “The industry must be much more transparent and Ofgem will have our full support to introduce whatever regulations are necessary to

deliver that greater transparency.” Meanwhile, Labour leader Ed Miliband said a freeze of energy prices would save the taxpayer more than £100m in reduced bills for public services. Mr Miliband’s comments came as he led a Labour drive to promote its central policy to tackle the rising cost of living. Mr Miliband said £40m would be cut from NHS costs, £28m from schools and £21m from defence if the move was implemented now by the Government and put a halt to an average 6.4% rise in bills. Labour says that it will act to freeze prices until 2017 if it wins the next general election. It will reform competition and transparency in the energy market and introduce a tougher industry watchdog. Tories dismissed the pledge as a “con”, suggesting energy firms will simply push up prices in the run up to a freeze or immediately afterwards, wiping out any benefit.


6 post business wealth management

Thursday, November 14, 2013

IN ASSOCIATION WITH

Investors advised to consider equities for a decent return market analysis

by Anjali Roberts

LIVERPOOL OFFICE OF CHARLES STANLEY

WITH the end of the year fast approaching it is already clear that 2013 has proved to be good for investors in developed equity markets, as shown by the rise in the FTSE All Share of 18.2%. In comparison, bond yields have been subdued with the All Gilt Index down 2.1% to the end of October and gold has also underperformed, down 21% in dollar terms to date. If history is an indication of future market movements, then it would seem the run in equity markets is set to continue. Data going all the way back to the late 1920s shows that on the 34 occasions in which the S&P 500 delivered returns in excess of 10% over the first quarter of any year, returns over November and December were positive in almost every instance. Investors exposed to risk assets should continue to benefit as, historically, two thirds of annual equity returns take place in the last 10 weeks of any year. It appears investors are already aware of this given the current inflows into global equity markets. The last week in October revealed another $13bn of net inflows into the global stock market, which is $320bn annualised.

Anjali Roberts

This represents the highest level as a percentage of assets under management since 2004. The increased inflows into equities are mainly due to a lack of alternatives.Returns from bonds are likely to be limited as the Federal Reserve looks to taper QE, while in real terms cash still offers negative returns. However, there are reasons to remain cautious as many benchmark equity indices are currently trading at, or close to, all-time highs. Economic momentum appears to be stalling again, particularly in the US and Europe. Data in China suggests economic activity recovered in the third quarter, but there is also plenty of anecdotal evidence to suggest the economic powerhouse may face a slowdown in the final quarter of 2013. A potential slowdown in China would have a negative effect on Asia’s satellite economies and also to many of the resource-driven economies in Latin America which rely on China to buy their exports. Secondly, the trend in earnings revisions remains negative, with downgrades still outweighing upgrades. In the UK and Europe 57% of companies reporting quarterly earnings have beaten previously lowered earnings forecasts, but only 35% have beaten lowered top line expectations. In order for the global economy to migrate from a liquidity-driven environment to a growth environment, the earnings revisions ratio needs to move in favour of upgrades. This looks unlikely between now and the New Year. In the US consensus is looking for a 6.5% sequential improvement in earnings for the fourth quarter up from the third quarter. An improvement of this size would mean the best quarteron-quarter rise since 2005. Given the prevailing uncertainty surrounding the macro environment, actually achieving this is likely to be very difficult, especially as many companies have already pared back costs in order to deliver margins close to peak levels. Financial markets have profited from the excess liquidity, but the real economy has not really benefited. In order for sustainable growth to exist going forwards into 2014 the global economy needs to morph into a new era of lower liquidity support and higher economic growth. This issue is something global governments need to address as a matter of urgency.

notes ■

ADVERTS for payday loans must not be allowed to air during children’s programmes, Ed Miliband has said, warning that Labour would change the law to ban them if necessary. The Labour leader accused lenders of “putting pressure on our kids” with childfriendly, animated commercials to take advantage of families feeling the squeeze. Calling for them to be treated the same as gambling and junk food promotions, he said that, if the Advertising Standards Authority failed to act, a Labour government would legislate. The Opposition leader has targeted what he dubs the “Wonga economy” as a symbol of his campaign to highlight the rising cost of living.

Records show that trading in shares appears to be the way to go

A DEBT advice charity has raised fears of surging numbers of people struggling to pay for “expensive” smartphone deals after seeing the number of cries for help with phones generally more than treble over a five-year period. The Money Advice Trust (MAT) dealt with 17,766 calls to its National Debtline from people about telephone debt last year, compared with 5,830 in 2007, the year the iPhone was launched. The trust is on course to deal with record calls for help with telephone debt this year, with 13,389 calls on the subject between January and August, a 15% increase on the same period a year ago. It said that in 2007, 4% of calls were about phone debt, but this has soared to 11%. The charity suggested that the rising use of smartphones is a factor.

One-in-10 feel part of economic recovery

Housing supply warning

ONLY one in 10 people feels part of Britain’s economic recovery, a new poll shows. A survey of more than 4,000 British adults, commissioned by KPMG and housing charity Shelter, shows that more than a third think an economic recovery is under way, but just one in 10 feels they are part of it. Almost half of those questioned said they would need to see wages rise before a recovery felt real, and 69% said that any recovery “won’t

THE number of surveyors reporting house prices lifting across the country has surged to an 11-year high as the Government’s new Help to Buy scheme fuels “soaring” demand from buyers. The Royal Institution of Chartered Surveyors (Rics), which released the findings for October, said urgent action must be taken to tackle the problem of demand outstripping the supply of homes for sale, which, it said, is “nowhere near” the levels

feel real” until it gets easier for young people to own a home. Just 8% said prospects for home ownership for young people have improved, despite Government policies like Help to Buy. Three in four people said young people’s prospects of home ownership have worsened over the past few years. Marianne Fallon, KPMG head of corporate affairs, said: “An accessible and affordable housing market is vital if people and families are to be able to build on their aspirations

and unlock their potential. It’s important for business, too, to know staff can afford to live within reach of where they are located.” Shelter chief executive Campbell Robb, said: “Every day our advisers see the reality that our housing shortage is now hitting people from all walks of life and across income scale. This poll makes it clear that no political leader can win the trust of voters on the economy or the cost of living without addressing high rents and house prices.”

needed to cope. Sales volumes are running at their highest levels in more than five-and-a-half years as more people flood into the market to snap up properties, its latest UK survey found. Rics said that nearly three-fifths (57%) of surveyors reported price rises during the month, the highest percentage since June 2002, reflecting the imbalance between supply and demand.


Thursday, November 14, 2013

Fletchrose secures wetrooms contract LIVERPOOL contractor Fletchrose has been awarded a contract by Liverpool Housing Trust (LHT) to install more than 100 wetrooms at homes across Merseyside. The wetrooms will largely be fitted in supported and sheltered housing accommodation for older people and those with disabilities. Work on the planned contract is set to begin in autumn under a phased programme and includes a full refurbishment of the existing bathrooms including the provision of level access showering facilities. This is the first contract awarded to the company by Liverpool Housing Trust, with Fletchrose using its own team of in-house tradespeople to carry out works. Aintree-based Fletchrose is already a regular provider of both planned and reactive maintenance works for several other housing associations. Managing director of Fletchrose Dave Hutchinson said: “It’s fantastic to form relationships with new clients and we’re pleased to be able to deliver this type of planned maintenance contract for LHT and showcase our capabilities as well as our commitment to customer excellence. “The contracting arm of our company is continuing to grow.”

news

MSIF loan helps Kimberley’s local wares café get cooking

Kimberley Soni of Café Country Kitchen with Paul Humphray from Merseyside Special Investment Fund

BUSINESS DAILY A revolution in the way business people get their news

by Tony McDonough

POST BUSINESS STAFF

LIVERPOOL’S International Tennis Tournament is aiming to join forces with next year’s International Festival for Business (IFB) to offer conference facilities ahead of the tournament. Next year’s event will take place from June 18 to 22 at its usual venue in Calderstones Park. Each year a marquee is erected to cater for around 2,000 corporate guests and tournament organiser, Anders Borg, says he would like to put the tent up more than a week before that and open it up for IFB events. “We are talking to Liverpool Vision

about this,” Mr Borg told Post Business. Mr Borg’s company, Northern Vision, has now been organising the tournament for over a decade – 2013 will be its 13th year. Tennis legends such as Martina Navratilova and John McEnroe have graced the courts and Mr Borg has repeated his call for Liverpool’s business sector to give it even more support this time around. The event has benefited from city council financial support down the years but in recent years this has been cut back due to austerity measures. Earlier this year, Northern Vision struck a four-year headline sponsor deal with Liverpool Hope University but Mr Borg appealed for more backers to come forward.

“The council has been a great supporter over the years but now they are having to cut – we understand that as tennis is not an essential service,” he added. “However this is amazing for the city – it attracts 15,000 people each year and I would urge the city’s business community to get behind it. “To keep an event such as this going for 13 years is unheard of – most exhibition tournament usually fold after three to four years. “Let us make sure it continues.” This week Northern Vision is holding an International Tennis Federation-approved junior tournament at Liverpool’s ECHO Arena and BT Convention Centre. The company is also now managing young tennis players such as Ken and Neal Skupski.

Anders Borg

Richardson’s Healthcare hopeful on China deal Download today for your free 30-day trial www.liverpool dailypost.co.uk/ businessdaily

A START-UP which received support from a Liverpool venture capital provider has created 15 jobs. Merseyside Special Investment Fund (MSIF) lent £4,500 to Café Country Kitchen through its Start Up Loans Scheme. Café owner Kimberley Soni, 30, opened in August serving locally-sourced food at the Hardshaw Shopping Centre in St Helens. She provided £6,000 of her own money to revamp the premises and buy new equipment and stock. She said: “My family and I already run another eatery in St Helens. This café was one of our main competitors so when I heard the previous owners had vacated I jumped at the chance.” She said the banks were taking too long to process her loan application, so she followed advice from St Helens Chamber of Commerce and approached MSIF: “They were very efficient in processing my application and I now have access to some really useful support services which is important for someone running a new business.” MSIF investment director Paul Humphray said: “Not only has Kim created a job for herself but she has also got 15 other people into employment which is a fantastic achievement.”

Tennis tournament seeking stronger links to business tony.mcdonough@liverpool.com

POST

post business 7

A SPECIALIST medical equipment supplier in Bootle has clinched a key export order for China which it hopes to build on in the future. Richardson’s Healthcare makes a range of innovative pressure-reducing mattresses and pads used on operating

tables and hospital trolleys around the world. It has been producing pressure-reducing solutions for the health sector for more than 50 years and supplies operating table manufacturers throughout Europe, Japan and Australia.

It has recently fulfilled a second shipment of products to China and has been awarded an important contract to supply mattresses to Acare Medical Science, in Xiangzhou District, Zhuhai, a whollyowned subsidiary of the Swedish based Arjo Huntleigh

Getinge Group. Michael Gould, managing director of Richardson’s Healthcare, said: “British products are viewed by the Chinese as the very best available, and they are happy to pay the premium over locallysourced products.”

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8 post business the bottom line

Thursday, November 14, 2013

Sales fall but profits increase at Runcorn healthcare firm by Bill Gleeson

POST BUSINESS STAFF bill.gleeson@liverpool.com

RUNCORN-BASED pharmaceuticals wholesaler Phoenix Healthcare Distribution saw a rise in profits during its last financial year, despite a fall in sales, according to accounts recently filed at Companies House. Turnover for the year to January 31 was £983.8m, down on the £1.02bn recorded in the 12 months to January 2012. The company blamed the fall on changes to its product mix as the patents on some of its best-selling brands expired and were replaced by cheaper generic drugs. Part of Germany-based Phoenix Group, the Runcorn operation sells pharmaceuticals, surgical equipment and other medical products to chemists shops, health centres and GP practices in the UK. Cost of sales were £883.8m versus £931.1m in 2012 meaning gross profit was £100m, up on the £97.9m last year. Once distribution costs of £40.1m and other operating income of £1.9m are included, Phoenix recorded an operating profit of £37.5m, up from £33.7m. Interest payable and similar charges were £7.4m versus £7.6m last year. Profit on ordinary activities before taxation was £30.1m versus £26.1m in 2012. The tax charge for the year is shown as £6.9m compared to £7.1m, giving a profit after taxation of £23.1m, up on the £18.9m seen for the previous year. No dividend has been paid in the year under review (2012 £20m). Phoenix’s balance sheet shows total fixed assets of £33.4m at the 2013 balance sheet date, down on the £36.1m recorded at the end of January 2012. Stocks were £53m, down from £65.9m. The company sold part of its debtors book and the balance sheet includes net financed receivables of £1.5m and other trade debtors of £217.1m. Cash at bank and in hand was £2.4m compared to £4.1m a year earlier. Creditors due within one year were £149.3m down from £157.6m. Creditors falling due after more than one year was just £76,000, the same as the previous year. Provisions for liabilities and charges were £544,000 compared to £660,000 at the end of January 2012. Net assets are £157.6m, up on the £134.5m figure struck at the previous balance sheet date. According to the directors’ report, “turnover was down 4.4% primarily due to lower hospital sales and reduced sales prices as the expiry of patents of certain branded products

VODAFONE topped up its investment plans by another £1bn this week as it reaps the benefit from one of the biggest corporate deals in history. The mobile phone giant previously pledged to spend £6bn under Project Spring, with initiatives including the roll-out of its 4G network to ensure 90% coverage in its five main European markets by 2017. But with the £84bn sale of its share of Verizon Wireless under its belt, the company has announced investment will reach £7bn by March 2016, as it looks to build a stronger network for customers. Shareholders have already been told that the company will return £54bn to them as a result of the Verizon deal in the United States.

Phoenix Healthcare Distribution’s operation at Runcorn has led to higher sales of lower priced generic products. “Gross margin was 10.2% compared to 9.5% in the previous year. The increase is due to a change in sales mix. “Operating profit amounted to £37.6m (3.8% of turnover) compared to £33.8m (3.3% of turnover) in the previous year.” Phoenix moved into the UK in November 1998 when it bought Wrexham-based pharmacy chain L Rowland & Co and Birmingham firm Philip Harris Medical. It went on to buy several other regional wholesalers before combining them to form one wholesaling company, Phoenix Healthcare Distribution, in Runcorn’s Whitehouse Industrial Estate. It employs more than 1,600 people

across the UK, with some 296 involved in administration and sales and the rest involved in distribution. Phoenix was hit in 2007 by the loss of a major contract with drugs giant Pfizer – which it blamed on Pfizer’s transition to a sales model known as “direct to pharmacy”. The emergence of this model remains a problem. In its latest accounts, Phoenix warns that the model reduces the wholesalers’ ability to compete with customers on the basis of service and discounts offered to customers, and it also reduces customer choice. The accounts state: “The Office of Fair Trading has reviewed the pharmaceutical wholesaling industry and has deemed this distribution model to be acceptable. It found, however, that any

future widespread use of exclusive distribution arrangements might lead to longer-term competition concerns and it will monitor the situation with the prospect of future investigation, if appropriate.” During the year the company won distribution contracts with Smith and Nephew, a UK-based global manufacturer of dressings and wound care products, Nipro, a Japanese-based diagnostic company and Pharma Nord, a Danish-based specialist pharmaceutical manufacturer. In a statement Paul Smith, chief executive officer Phoenix Medical Supplies, said the contracts “demonstrate that Phoenix continues to grow upon existing business and is also extending its reach into new market channels.”

Speedy remains confident about its full year outcome PLANT and tool hire group Speedy Hire saw its key indicators improve for the first half of its financial year, and this week announced a new venture in the oil and gas sector in Kazakhstan. The Newton-le-Willows group, headed by chief executive Steve Corcoran, increased revenues in the six months to September 30 by 0.4% to £169.8m

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while pre-tax profits increased from £4.7m to £5.3m. It also reported strong growth of 31% in infrastructure revenues from the UK’s top 10 infrastructure customers which it says leaves the group well placed and growing revenue in its targeted markets of water, waste, energy and transport. Chairman Ishbel Macpherson said: “In the first half of the year Speedy

has battled with continued challenging market conditions, in the construction sector in particular. “Whilst we see some signs of recovery in the sector, beyond house-building, we don’t expect to benefit from it in the current year. That said, a series of new contract wins and the full mobilisation of the National Grid contract in the first half have made us confident about our momentum going

into the second half. “The international division made good progress in the first half and this will continue into the second half. We therefore remain confident that the group continues to trade in line with management expectations for the full year. “Looking further out, we continue to take further steps to build the business for the future.”

STRUGGLING DVD rental chain Blockbuster faces being broken up by Christmas after it formally went into administration this week – for the second time this year. Corporate recovery specialists, who have now taken charge of its future, say parts of the business have attracted the interest of potential buyers – though some are only eyeing up store sites to be taken over as Morrisons did earlier this year. Blockbuster announced two weeks ago that it intended to go into administration, putting 2,000 jobs at risk.

BARRATTS Shoes has gone into administration for the third time in four years, putting more than 1,000 jobs at risk. Directors at the Bradford-based chain were left with no choice after an investor pulled out of a plan to inject £5m at the end of last week as the company sought to shore up its finances, according to a statement. Philip Duffy and David Whitehouse of financial advisory and investment banking firm Duffy & Phelps were appointed administrators last Friday. The administrators said they were reviewing the company’s financial position and seeking a sale of the business as a going concern.


small business post business 9

Thursday, November 14, 2013

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business of theweek

AROUND 137,000 businesses in the North West could see their National Insurance Contributions (NICs) cut by up to £2,000 when the new Employment Allowance is introduced in April 2014. Across the UK 1.25 million businesses and charities will benefit from the new allowance on employer NICs. In the North West 53,000 will pay no employer NICs at all. The allowance will mean that a business that employs one person on £22,400 will pay no employer NICs on that employee’s earnings. A business employing five adults full-time on the national minimum wage will see their employer NICs bill reduced by more than 80%. HM Revenue & Customs (HMRC) says businesses will confirm their eligibility for the allowance through their regular payroll processes and up to £2,000 will be deducted from their employer NICs liability over the course of the year. Businesses paying NICs of £2,000 or less will pay no employer NICs at all. More than 90% of the benefit of the new allowance will go to businesses with fewer than 50 employees.

by Neil Hodgson

POST BUSINESS STAFF

neil.hodgson@liverpool.com

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OU could say Chris Danks is a young man with his head in the clouds, although he would find it hard to suppress a sneer. For the self-taught IT expert does not subscribe to the cloud analogy, in reference to the huge plethora of information we are led to believe is floating around in the ether. He said: “The term ‘the cloud’ is just a marketing ploy – it’s been around for ages.” Basically, the cloud is servers, anywhere in the world, that host material for clients rather than them having their own office-based server, with all the cost implications of power, air conditioned facilities, and maintenance that they present. “Servers haven’t been in people’s offices for ages,” said the Runcorn-born founder of Cyber Host Pro, a web hosting provider, serving thousands of clients around the globe, in Liverpool’s Cotton Exchange. He developed a fascination for the web as a 15-year-old: “I wanted to know how the internet worked.” He set up his own .co.uk domain name which, he said, taught him how to buy a name and how to make a website work. By the time he was 17 his hobby turned into a fledgling business after his mother, as a birthday present, bought him a three-month package for server space which allowed him to host websites for clients. He said: “I got a deal with a US server that would host as many websites as I wanted. I got more servers over time and started US hosting. Now we have hundreds of our own servers across the North West and have thousands of clients around the world, mostly IT companies re-selling our services as their own. “They provide web space and domain names, that we host on our servers. As a full host we are probably the biggest in Liverpool.” From his days as a sole trader working from home the 24/7 business now employs two staff and several home workers, as well as providing year-long apprenticeships. It is a remarkable achievement for someone who left school with no IT qualifications: “I didn’t have any qualifications because we didn’t have any IT teachers. My granddad is more qualified than me in IT, but Google has been my teacher. “I had a passion to learn it and I wanted to learn it, which is more important.” Last year Cyber Host Pro hit a healthy six figure turnover and £80,000 profits, and this year Mr Danks is targeting a 30% increase in sales based on new, bespoke products. One, involving a £50,000 investment, allows companies to build their own cloud-based virtual website and build, or scale it down, according to their needs: “They can upgrade or downgrade for, say, six hours. If they get a huge unexpected spike there is an automatic upgrade facility to handle the difference, then it downgrades when it is no longer needed.” He said a company doing this on its own would have to pay £2,000 for hardware and several thousand pounds a month for fast internet con-

Chris Danks, who has developed a cutting-edge web hosting business from a hobby as a 15-year-old

Self-taught IT expert turns hobby to profit nections and power, whereas the Cyber Host Pro service costs from £15 a month: “It is almost unique and we are in the forefront of it.” He is also in the process of offering a service to thwart DDOS (distributed denial of servers) incidents which is the biggest threat to the internet and companies. “It’s like world war online. It can shut down websites, such as the recent case when the New York Times site was shut down by Syrian hackers. Our system will detect an attack and filter it out.” His firm’s impressive achievements were recently acknowledged as Best Technology Company 2013 at the Merseyside Independent Business Awards.

The Cyber Host Pro office in Bixteth Street’s Cotton Exchange

HMRC is also reminding taxpayers who have not yet sent in their 2012/13 tax return to do so online to avoid a penalty. About 145,000 people on Merseyside file a self-assessment return each year and HMRC say if they send a paper tax return from November onwards they will receive a £100 late filing penalty – even if they have no tax to pay, or they pay their tax bill on time. This is because the October 31, deadline for 2012/13 paper tax returns has now passed. Anyone who has not sent in their 2012/13 tax return must do it online by January 31, 2014. To send an online tax return, you must be registered for HMRC Online Services. This involves HMRC sending you an Activation Code in the post, so allow time for this to arrive. To register for HMRC Online Services go to: www.hmrc.gov.uk/ online


10 post business creative & digital

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by DR RICHARD WILSON

Developers tackling the pirates OUR 2013 piracy survey demonstrates that UK game developers are taking a constructive approach to dealing with the challenge of piracy. The findings reveal that UK developers and digital publishers overwhelmingly favour the adoption of new business models to minimise the problem, with 87% of respondents preferring this approach compared to only 10% feeling stricter enforcement of intellectual property rights is the way forward. Some 40% of those surveyed still felt that educating consumers against piracy was important, showing that whilst the majority would rather innovate around the problem, many still see value in raising awareness of piracy and its effects on UK businesses. Some 57% of respondents said piracy was a problem for their business. In spite of this, 73% of developers disagreed that people who persist in illegally swapping copyrighted files of films, music and games on the internet should have their internet connection slowed down and ultimately severed, even if they ignore warning letters to stop. Some 73% of those polled said piracy was staying at a constant level, with 40% saying they still expected it to be a threat to their business in five years’ time. Piracy of video games appears to be particularly acute on the Android platform. Many games businesses continue to find the most effective response to the problem is to adopt new business models, such as subscription based services and free to play games. UK developers are taking the initiative to deal with the issue of piracy and are looking for new ways of delivering content and communicating directly with their consumers. This is testament to the generally pragmatic and innovative approach of the UK video game industry. ■ DR RICHARD WILSON is CEO of video games industry body TIGA

Thursday, November 14, 2013 IN ASSOCIATION WITH

Designival Mini will act as a launch event for IFB special by Alistair Houghton POST BUSINESS STAFF

alistair.houghton@liverpool.com

DESIGN festival Designival is making a miniature comeback next week ahead of a major showcase at next year’s International Festival for Business. Designival – originally launched as Design Symposium North in 2008 – is usually held in November in Liverpool as a two-day festival of design. The next full Designival has been moved to July as part of the IFB. So to ensure local creatives don’t miss out this November, Designival Mini will be held next Friday at Camp & Furnace in Liverpool’s Baltic Triangle. As well as acting as a launch event for the IFB event it will also include lectures from top names in design and chances to network. Matt Webb, CEO and co-founder of London agency BERG, will talk about projects including the web-connected Little Printer that prints personalised newspapers. Erik Kessels, who created the I Amsterdam campaign to promote the Dutch city and was last year named “the most influential creative in the Netherlands”, will also discuss his work. A third and final speaker will be revealed before the event, which is set to attract up to 200 people. Jon-Paul Waddington, a member of the Designival Mini organising team, said: ‘The event came about when we were approached by the city fathers, who said they would like it very much if we did Designival as part of the International Festival for Business next year, to show off the best the city’s creative industries have to offer.

Erik Kessels reated the I Amsterdam campaign to promote the Dutch city We wanted to do it, but we also wanted to keep a November event, because that’s when Designival is. “So we thought we would make November effectively a launch event for July. “The last thing we wanted to do

was just sit 50 people in a room with a glass of white wine each and just say what we were doing. So we thought we’d just do a Designival that’s slightly smaller and cheap as chips, and that’s where Designival Mini came from.

“We’ve all been to a lot of industry events, and they can be quite dry and serious. This is more about meeting friends, listening to interesting people, talking to interesting people and having something to eat and drink afterwards.”

Architects move into Liverpool One space LIVERPOOL-BASED K2 Architects has moved its studio to Compton House, in Liverpool One. The practice has signed a five-year lease with Grosvenor Liverpool Fund for 1,500 sq ft of studio space in School Lane, next door to the Grade 1 -isted Bluecoat Creative Hub. Kevin Horton, architect director, said: “Following three successful years, we decided that it was central to our strategic growth to position ourselves within Liverpool’s creative culture and provide our team with a flexible, efficient working space with state of the art technology.” “At K2 we are committed to our clients.”

K2's Kevin Horton, left, with Chris Bliss from Liverpool One, centre, and Mark Davies of K2


creative & digital post business 11

www.ldpcreative.co.uk

Thursday, November 14, 2013

Ben Hatton

Get on the right page for sales

The Liverpool Launch48 team

Superfast start-up scheme is set to launch in Liverpool by Alistair Houghton POST BUSINESS STAFF

alistair.houghton@liverpool.com

A NEW high-speed business accelerator programme is coming to Liverpool to help people turn ideas into viable businesses in just 48 hours. The first Launch48 Liverpool will be held at FACT on Friday, November 22. It follows other similar events in the city, including the Liverpool DoES Startups events held at hi-tech workspace DoES Liverpool. Launch48 has held events around the UK in partnership with local organisers, helping to develop 50 busi-

nesses since 2009. The Liverpool team is led by Simon Holgate, working with Paul Freeman and Claire Tasker. Past events in other cities have focused on web businesses, but organisers say Launch48 is open to all. Mr Freeman said: “It’s basically a structured workshop where teams of people get together and are guided through taking something from just being an idea to being a viable business. “There’s a bias towards web start-ups – doing something cool on the web and trying to make it into a massive company – but the processes and the tools you introduce are trans-

ferrable to anything. “Even if you’re not necessarily looking to start a new start-up, it’s a way of getting hands-on practice with tools you might have just heard of and work side by side with people you might normally just talk with. “It’s hands-on networking. It’s an intense weekend.” The event starts at 6pm on Friday, when people meet to start pitching their ideas. “Then,” said Mr Freeman, “it’s a bit of a beauty contest to form into teams, do initial informal networking and get things set up.” At 9am on Saturday, people meet

again – and work through until 10pm. Food will be provided – Mr Freeman smiled: “you get locked in and forced to work. “There are workshops through the day to get you introduced to various concepts, some of which people will be used to, some new. “There will be mentors on hand to share their experience and advice. “Then it’s the same again on the Sunday, 9am until 10pm, towards a presentation at the end of the weekend. “Teams will then be supported to continue to grow their embryonic businesses beyond the weekend.”

One for the gamers as Oscar takes the stage

Blue Orchid helps to get creative entrepreneur up and running

IF YOU’RE a gamer or a creative and digital business interested in how your business can harness the power of games to engage communities and generate revenue, this is the session for you. Oscar Clark has a passion for online entertainment and community and has spent the past 12 years at the leading edge of this technology. As part of thethinking series Oscar will talk through his work with Applifier, what the company does, how their ad platform works, their cross promotion tools and their latest success Everyplay, with players around the world recording their game sessions and uploading

AN ENTREPRENEUR from Liverpool has his designs set on a new future, thanks to the help of business start-up support specialists Blue Orchid. Drew Bellis from Woolton launched his creative digital media business, Glympse, earlier this year and is now providing design, communication and marketing services to other start-ups, taking advantage of his experience and wide range of skills. After what he describes as a “creative childhood” creating his own comics and computer games, Mr Bellis studied for a degree in multimedia and went on to work at a web design

Oscar Clark them for others to view. Attendees of this event, held at Unit 51, Baltic Creative, are invited to stay for the kin social which follows directly at 7pm-ish to 9pm.

Heather Hayes agency in London. Keen to start his own business, he sought the assistance of Blue Orchid and this resulted in him enrolling in the New

Enterprise Allowance scheme, which provides money and support for those wishing to run their own company. He also received expert advice and start-up support from a dedicated Blue Orchid business advisor, and attended a number of workshops run by the leading start-up specialist, including those designed to give insight into sales, marketing, networking and business growth. Blue Orchid managing director, Heather Hayes, said: “It’s been great to work with Drew and see his plans come to fruition. “There’s little doubt that Glympse can go from strength to strength.”

CHRISTMAS will soon be upon us, and that means sales will also be appearing in most high street chains and independent shops. Swathes of stores hold sales to drum up trade, and this is reflected in online stores, too, which have fared well with customers actively seeking out bargains via the internet. Whilst stores may want to push their online sales as much as possible, some careful thought into the layout of the sales page can lead to many customers also browsing – and buying – full price products, regardless of their bargain-hunt. According to research that has been published by Play.com, only a paltry 19% stuck to viewing sale-only items, while two-thirds of those surveyed enjoyed sales online, admitting it does give them a ‘buzz’, meaning people love to take a look at a sale, but the thrill really is in the chase as most will view non-sale pages, too. Clear and simple sales pages are a must, but easy navigation to other sections or mixing sale and non-sale items may help boost browsing on the whole site, as well as mixing sale and non-sale items together on the pages. As so many people love to ‘bargain-hunt’, sales can act as a useful ‘window display’ to get customers’ attention and entice them into looking on the website. Once a potential customer is on the site, it offers the perfect opportunity to introduce and engage them with the complete brand offering.

‘Clear and simple is a must’

■ INTERNET entrepreneur Ben Hatton is founder and managing director of digital agency Rippleffect. Follow Rippleffect on Twitter @rippleffected


12 post business big interview

Helen Davies meets JOHN URPI, chief executive of Warrington’s First Recruitment Group

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AREERS in recruitment are known for their long hours and competitive nature as employees work late to hit the latest commission target. But for John Urpi, chief executive of First Recruitment Group, it’s family first, business second and that’s a philosophy he says he is keen to pass on to the 68 staff working at the firm’s headquarters in Birchwood, near Warrington. On the day he speaks to Post Business, the father-of-four had been up early to take his youngest grandchild for a walk before work. “Getting work?life balance in this sector is difficult,” said Urpi. “I’m a family man so try to ensure people here don’t work long hours and if they do it’s through necessity rather than bravado or because it’s the done thing. “I encourage people to make sure they see their kids before they go to bed. “I don’t want that London-type recruitment scene where people have no quality of life at home.” The desire for staff at First Recruitment to have a good work life balance is further evidenced by an office move for the firm this year. The initiative of founders Andy Cartledge and Steve Farthing, the new base, which is called Parry House as a tribute to Wendy and Colin Parry who lost their son in the Warrington bombing in 1993, includes an area for table tennis and a gym. That’s not to say the company isn’t ambitious and committed to growing a successful business, though. Turnover now stands at over £100m, with pre-tax profit last year of £2.5m, and over the last few years First Recruitment has started expanding overseas and now has offices in Australia, Thailand and Ghana. The firm specialises in recruiting people for roles in several key sectors: oil and gas, legal, mining, pharmaceutical , power and water. In the last two years they have also branched out to cover IT and Fast Moving Consumer Goods (FMCG). First Recruitment, which has recruitment partners in America, Kazakhstan, Angola and Russia, was launched by Cartledge and Farthing in 1997, originally focussing on recruiting for the utilities sector with clients such as North West Water. It was a brave move as the pair previously worked, along with Urpi, for the now billion-dollar recruitment business Fircroft, based just down the road from them. “They were competing with Fircroft,” said Urpi. “The business grew steadily and by around 2007 they had a turnover of £50m.” Then the recession hit and many recruitment firms found business became very hard work. “The market disturbance has been difficult,” recalls Urpi. “The business did suffer during 2008/9 but since then it has bounced back and doubled turnover. “The international oil and gas market has been buoyant during the recession so that’s where we’re looking to focus.”

Thursday, November 14, 2013

Warrington firm with international expansion plans

John Urpi, chief executive of First Recruitment and Inset The break-out room at the firm, based at Birchwood Boulevard in Warrington

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LTHOUGH now managing a company which recruits, among others, engineers, Urpi actually started out his career as an engineer himself.

The 58-year-old, who grew up with his mother and grandparents on a council estate in Swinton, left school at 16 and started on the Engineering Industry Training

q&a Age: 58 Highest educational qualification: HNC Mechanical Engineering with distinction Biggest achievement in business: Winning the ABB and Bentley Motors sole supply accounts Biggest regret: None that I can think of Best advice received: To try to

think about what's in it for you Still to achieve: I’d like to design and build my own house Hobbies: My family, which includes my wife, four children and two grandchildren, playing drums, running and golf and in that order Plans for future: To open new offices and enter new markets

Board programme. From there he went on to be a trainee technician in the physics department at the University of Manchester before working on engineering contracts in Eccles and Birchwood. “That was when I decided to try recruitment,” said Urpi. “I thought it looked easier than engineering.” Asked if he thinks he made the right decision changing careers, Urpi admits he found engineering “a lot less stressful”. His time in recruitment has certainly proved successful, though. The grandfather-of-two, who lives near Wigan with his wife of 36 years, joined Fircroft in 1989 when it was a small family firm with a

staff of 10 and turnover of £12m. He became managing director in 2000 when Fircroft’s turnover was £60m and pushed the business overseas in the oil and gas markets until he left in 2007 when the firm’s turnover was £200m. Urpi said: “At that point in my career I realised I had put a large part of my work life into someone else’s business, without thinking about what’s in it for me, so I decided I would leave and do something else.” Farthing, who was the first person Urpi recruited for a job when he started work at Fircroft back in 1989, persuaded him to join First Recruitment on a consultancy basis in 2007. He became chief executive of the


creative & digital post business 13

Thursday, November 14, 2013

Tackling alcohol at work

John Urpi, Andy Cartledge, Colin Parry, Steve Farthing and Wendy Parry

company in 2009. “It’s brilliant,” enthused Urpi. “I’m much more involved with the owners of the business than I was in my previous position. “Steve and Andy are very generous people, you can see that through how much they spent on the building for their staff. “They’re part-time now but they’re still involved with executive decisions and board meetings. “The day-to-day running of business is left to me. “We’ve known each other since our Fircroft days, there’s a strong bond and trust between us.” Urpi decided to implement what are called Six Stigma and Lean Management techniques into the business, concepts designed to

eliminate waste within a company that are often used in manufacturing and engineering but are relatively new to the recruitment sector. This has led to both staff numbers and turnover increasing and means the business is planning ahead for expansion in the near future.

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RPI plans office openings in both the UK and abroad next year with a particular focus on growing the international oil and gas sector of First Recruitment’s work. Following on from the launch of its Ghana office, the firm is due to open a base in Kenya as its looks to Africa as a key area for development of the business.

“There’s a big recruitment business in oil and gas in Africa,” the chief executive said. “It’s a strategic move to support our major clients.” FTSE 100 business Tullow Oil is a client of First Recruitment and is behind the firm’s decision to expand to Kenya. It’s not without its difficulties though. Tullow had to stop its work in Kenya last month due to violent protests by locals demanding more jobs and benefits from their work in the country. Urpi explains First Recruitment is concentrating on its corporate social responsibility presence in Africa and that many of those employed, both to work in the company’s offices and for the positions

they recruit for, are local workers. Outside the oil and gas field, Urpi says the company plans to expand into other market sectors, such as nuclear, to recruit for new-build power stations. He said: “We’re aiming to expand into international markets with coordination with our clients. “We’re also looking at more joint ventures, such as with a Norwegian recruitment agency, so we can position ourselves against bigger global recruitment companies and compete more effectively with them.” Within the UK, First Recruitment intends to keep its head office in Warrington, but there are plans to open more offices next year, one in Aberdeen and one near London.

BUSINESSES considering testing their staff for alcohol consumption are being offered advice by Liverpool charity Health@Work. It is estimated one quarter of the UK workforce drinks at hazardous levels, defined as at a level of consumption or pattern of drinking that is likely to result in harm should it be continued. Figures show this harmful drinking causes 40% of workplace accidents, resulting in 17m lost work days a year; subsequently costing the UK economy £7.3bn each year. Director of the Alcohol Health Network, Don Shenker, has suggested businesses should take pre-emptive action to tackle the affects of alcohol in the workplace. Health@Work says it supports this view, but warns a distinction needs to be made between alcohol testing and screening at work. The charity says it does not promote alcohol and drug testing in the workplace, except in life critical circumstances, including those that work in emergency services or operate heavy mach inery. This is Frances Molloy due to a lack of evidence that it is conducive to improving individual’s health and that of the business and Health@Work is warning introducing such policies can create an atmosphere of mistrust in the workplace. Frances Molloy, chief executive of Health@Work, said: “We encourage businesses to implement effective alcohol policies that make it clear to employees their requirements, what is expected of them and what support is available. “Alongside the policy, we encourage employers to arrange employee alcohol awareness training to give them knowledge about the impact of alcohol use and what support is available.” She added: “Most employers tend to have alcohol policies in place; however they tend not to be used effectively, employees are mostly unaware of them and in some cases they are just there as a tick box exercise.” Health@Work is hosting an event to raise awareness of issues surrounding alcohol and the workplace. The lunch time debate will be held at the Liverpool Maritime Museum onNovember 27, from 11am to 1.30pm and will see Sir Ian Gilmore, chair of the Liverpool Health Partners, join Health@Work. To book go to www.healthatworkiangilmore.eventbrite.co.uk


14 post business legal

Thursday, November 14, 2013

Barristers threaten action over criminal case fee cuts

Tom Handley, right, with fellow Exchange Chambers barristers Sarah Griffin and Ian Harris

by Helen Davies

POST BUSINESS STAFF

helen.davies01@trinitymirror.com

BARRISTERS in the region are threatening to refuse to take on some serious cases in light of fee cuts by the Ministry of Justice. From this month fees paid by Government for Very High Cost Criminal Cases (VHCC), which are the most serious and complex trials lasting over 60 days, will be cut by 30%. Tom Handley, director of chambers at Liverpool-based Exchange Chambers, said: “Not a single barrister from our criminal team will be continuing with, or taking on, VHCC. “This is not about ‘fat cat’ barristers earning hundreds of thousands of pounds from legal aid. “It is about the Lord Chancellor destroying the best justice system in the world and thousands of livelihoods at the same time.”

The Government has agreed transitional arrangements under which VHCC agreed with the Legal Aid Agency before December 2 will be paid at the old rate. Barristers still plan to take action though and there are talks of a rally against the cuts later this month. Mr Handley is calling on Justice Secretary Chris Grayling to perform a u-turn and says “the criminal justice system will grind to a halt if he doesn’t”. Richard Pratt, a QC who is leader of the Northern Circuit and head of chambers at Liverpool’s 7 Harrington Street, has also voiced his concerns. He said: “The individual members of the Bar are awaiting guidance from their professional body as to the appropriate response to these drastic, unfair and dishonourable cuts, but the mood of individual barristers could not be clearer. “It is to say 'enough is enough'.” Mr Pratt added: “This cut applies

not only to work in the future but also to existing contracts which means that advocates who have been working for months and sometimes years on an agreed basis have been told that the contract price for their work has been unilaterally reduced by 30%. “I have no doubt that if the Secretary of State attempted to impose unilateral contractual changes like these on builders or decorators working on Ministry of Justice property he would get short shrift and could confidently expect that they would walk out leaving rubble and unpainted walls behind them. “These cases are the most factually complex cases in the legal calendar. “They involve reading tens of thousands of documents. “They will last at least 61 working days and usually significantly longer.” Mr Pratt explained during a trial a non QC barrister will earn £199.50 per day gross.

Picture: GARETH JONES

After deductions for chambers rent and expenses that will equate to approximately £160 per day. He said: “A 'day' for these purposes is 5.5 hours (including two hours out of court preparation). “Thus the hourly rate is £29. “Putting that into some sort of context, the guideline hourly rates for solicitors in civil litigation adoptedin 2010 prescribe for the lowest grade of fee earner (trainee solicitor/paralegal) in Liverpool and Birkenhead is £118. “The Government is thus following a well established trend of making the criminal Bar the poor relations of the legal fraternity. “It means that the bright and promising advocates of the future are turning away from practice at the criminal Bar. “The consequences of falling standards in the prosecution and defence of, for example, terrorist cases hardly needs to be spelt out.”

Get your divorce right the first time LIVERPOOL law firm Maxwell Hodge is warning divorcing couples to get their settlement right first time round or they could leave themselves open to further claims even 30 years after separating. Andrew Newton, divorce lawyer at Maxwell Hodge said: “There is no statute of limitations regarding divorce claims, which means an ex partner could claim some of your estate even 30 or 40 years after your divorce. “Only recently I've dealt with a case where a couple didn't sort out all of the financial issues as part of the divorce. In the original settlement the husband didn't make any reference to the assets in his pension, as a result seven years after the divorce his ex wife laid a successful claim to her share of the pension.” The issue of ex partners laying claim to assets many years after the date was highlighted recently in the high profile case of Vince vs Wyatt. The couple separated in 1981 but Miss Wyatt established a claim on some of Mr Vince's £90m of assets more than 30 years after the original divorce. Eventually the claim was thrown out by the Court of Appeal, but it highlighted the ability for ex partners to establish a legal claim years after a divorce.

POST BUSINESS DAILY A revolution in the way business people get their news

Solicitor reflects on changes to civil litigation A SOLICITOR who has been practising for 40 years says he is “saddened” by changes to civil litigation. Michael Halsall, senior partner at Newton-le-Willows-based personal injury specialist Michael Halsall Solicitors, said: “When I star-

ted in practice there were few regulations and everything seemed to work well. “You regulated yourself and to keep clients you also made sure that their interests were paramount. “This was obvious and it seemed to work.

“However, today there is more and more paperwork and we cannot just deal with client matters we spend more and more time dealing with regulations. “Cost of regulation is also high, we have to pay substantial sums for practising cer-

tificates,” he added. Mr Halsall, who started his firm in 1987, added he had “really enjoyed” his time in law so far and looked forward to more challenges in the future.

Michael Halsall

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women in business post business 15

Thursday, November 14, 2013

Lifestyle Lounge launches at Port of Liverpool Building A HEALTH and wellness consultancy is being launched by a trio of business women in Liverpool. Alison Houghton-Corfield, Judy Abramson and Sue Holding have struck a deal with Liverpool property firm, Downing, to take space at the waterfront Port of Liverpool Building. Their venture – the Lifestyle Lounge – will specialise in helping people with issues such as weight loss, boosting energy levels, optimising nutrition or for those looking for a new challenge. All three are independent Herbalife distributors. Alison Houghton-Corfield said: “Our new Flexi-Office in the beautiful Port of Liverpool building is absolutely perfect for our business and it’s a pleasure to be here. “We’re really looking forward to welcoming new clients giving them a taste of the brilliant products and nutritional supplements we have on offer.” The business has agreed to take space as part of Downing’s Flexi-Office deal. The property firm’s senior agency surveyor, Robin Ellis, said: “One of the benefits of the Flexi-Offices is that they’re easily transformed into bespoke suites which match the occupier’s requirements and vision.”

Alison Houghton-Corfield, left, and Judy Abramson at the Lifestyle Lounge, with Robin Ellis from Downing

Chic Networking to hold its first event at Liverpool hotel by Tony McDonough POST BUSINESS STAFF

tony.mcdonough@liverpool.com

A BUSINESS networking group for women will hold its first Liverpool event next month. Chic Networking, which holds events across the UK, is inviting women to gather at the Hilton Hotel in Liverpool city centre early next month. It will hold their first networking event on Sunday, December 1, from 2pm at the Liverpool One venue. It is being aimed at the city’s independent businesses. During the event, attendees will have the opportunity to mix and mingle with bloggers, models, representatives from the fashion industry, local businesses and magazine executives, photographers, independent designers and event coordinators. There will also be a business card exchange, a runway show, a shopping experience and the opportunity to speak to PR and marketing companies about expanding their businesses. Lauren Greene, event coordinator and director of Chic Networking, told

Post Business: “Chic Networking is a great opportunity to give smaller independent businesses and its supporters the opportunity to learn more about each other and unite a community. “It is about supporting one another by bringing together a lot of hidden businesses all under one roof and opening these up, gaining exposure and custom to companies that may not have the means to do it themselves in this tough climate . “That is the purpose of Chic Networking – unity from the top down.” Chic Networking holds events across the country and overseas based around networking for women in business or businesses that will appeal to women. The company said: “The events are all about allowing women to socialise with other businesses, creating new connections and showcasing what their businesses have to offer. There are four sections each of the events: ■ Fashion ■ Business & Lifestyle ■ Health and Beauty ■ Networking

Research highlights continuing pay gap THE gender pay gap in some jobs is three times bigger than the £5,000 average, according to a new report. A study by the TUC found that female health professionals had the biggest gap, earning £16,000 a year less than their male counterparts. The research was published to mark Equal Pay Day – the point in the year at which campaigners say women effectively stop being paid because they earn on average 15% less than men. The TUC said the gap was high in health because leading male professionals earn around £50 an hour, twice as much as top-earning women. The gender pay gap across the private sector is 19.9%, far higher than the 13.6% pay gap in the public sector, said the TUC. The difference is even bigger for women working part-time, who earn 35% less per hour than men working full-time, so Equal Pay Day for them was on August 27, said the report. TUC General Secretary Frances O’Grady said: “It is a huge injustice that women are still earning on average almost £5,000 a year less than men. “This pay gap can add up to hundreds of thousands over the course of a career. “The gender pay gap is also a huge economic failure.”

POST BUSINESS DAILY A revolution in the way business people get their news

‘It is about the smaller businesses supporting each other’

Lauren Greene, director of Chic Networking

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16 post business location

Thursday, November 14, 2013

Postponement of business rates revaluation is hurting across the board

view point

by Helen Stewart, associate partner at Hitchcock Wright IT IS no secret that the delay in the revaluation of business rates is really hurting retailers, occupiers and landlords where they have voids. There are more and more instances where market rents are

Leases getting shorter LEASE lengths for commercial property fell to an historic low in the year to June 2013, while income, lost due to tenants going bust, hit an all time high. Landlords have struggled to maintain cash flows in many areas, and new research by IPD shows that they lost 6.2% of their income, due to record numbers of defaults and insolvencies last year. A continued environment of tough trading conditions have driven down lease lengths and increased pressure on landlords to offer more competitive terms to occupiers. More than 80% of UK leases signed in the year to June 2013 were under five years – the highest proportion since measurement began. This is up from 55% a decade ago. The average new lease fell to 5.8 years, from 7.8 years in 2003.

T J THOMAS 0151 708 6544 KNOWSLEY IND PARK, Business units, 575sqft £100pw ERSKINE STREET Business units 850sqft £550pcm LIVERPOOL CITY CENTRE

lower than the rateable value applicable to the property. Rent and incentive packages can be communicated to potential tenants but when the rateable value is made clear, the deal can often fall through or the proposed rent/incentive package is further adjusted to secure the deal. This essentially fixed cost is therefore something there is very little control over. Crippling rates put pressure on business occupiers as their overheads are fixed, whereas often, the income of the business has been forced down by competitors. While there are some incentives

South L’Pool 500-4000 sqft, monthly tenancy, competitive rents from £50p/w

Tel: 0151 427 5051 INDUSTRIAL UNITS Bootle area, 10,000 sqft, flexible terms 0151 486 0004

‘Now we see that councils are being hit too’

NHS Property Services has instructed Mason Owen to sell its former offices in Maryland Street

The original revaluation would have taken place in 2015 based on values as at April 2013. This would more fairly reflect the current economic circumstances for businesses. It would address the discrepancies in the current list between those areas, in particular in the South, where values have risen considerably above the current assessment, which is based on values in 2008. It would also assist those areas that have shown a considerable decline, exacerbated by the high business rates currently allocated to these struggling areas.

ON THE instructions of NHS Property Services, Mason Owen has been asked to dispose of former offices in Maryland Street in Liverpool. Located close to the newly-built Everyman Theatre and the Philharmonic Hall, the building is situated at the junction with Hope Street and would be suitable for a number of uses subject to planning. It comprises 2,111 sq ft over basement ground and first floor and has on-site secure car parking. The building is available freehold with offers invited in excess of £245,000. Paul Thorne of Mason Owen said: “Despite having only just come to the market, we have received a huge amount of interest in the property given its location within this popular and vibrant area. “We believe that the building may suit a variety of uses given the mix within the area and anticipate inviting offers from interested parties “It is a combination of its location, size and relatively low lot size that has generated so much interest.”

Agents gather for unveiling of Montell House scheme by Tony McDonough POST BUSINESS STAFF

www.tjthomas.co.uk

TO LET

that “the failure by councils to collect all the rates owed meant that significant sums were not available for local services”. One option for local authorities is the ability to alter business rates locally according to the specific needs of the varying locations that are within their control. However from an administrative point of view this may be easier said than done. Alternatively, the Government needs to re-think its postponement of the rating revaluation to 2017.

Former Liverpool NHS office on the market for £245,000

Shop unit £115pw

INDUSTRIAL UNITS

to assist from a rates perspective, this really only applies to businesses at the smaller end of the scale in terms of rateable value. The effects of rising business rates aren’t just affecting occupiers and landlords – now we can see that many councils are suffering. The Audit Commission has released the news that during 2012-13 alone, £513m of the £22.4bn owed was not collected by local authorities. The commission went on to say

tony.mcdonough@liverpool.com

Stephen Wade, Legat Owen, Chris Walker and Neil Waddington, Prospect GB, and Will Sadler, Legat Owen

PROSPECT GB has officially unveiled its latest office development – Montell House in Chester Business Park. It has refurbished 10,000 sq ft of space in the building. Businesses and property professionals attended a launch event showcasing the scheme. Originally constructed a few years after the launch of Chester Business Park, the two-storey Montell House has been transformed by a comprehensive renovation with a full pre-let

specification which includes a reception area, air conditioning, eight-person passenger lift, full access raised flooring and a barrier-controlled 60-space car park. Chris Walker of Prospect GB said: “Montell House is situated within the Kingsfield Court complex at the heart of one of the most prestigious business parks in the North West. “It’s an outstanding location for an office and earlier this year, when we starting putting our plans together, we could see the building’s potential appeal with the addition of a high-specification upgrade. The feedback was very enthusiastic.”


location post business 17

Thursday, November 14, 2013

A move to Manor for specialist business A MAJOR distribution letting deal at Manor Park in Runcorn has been welcomed by Halton Council. Rehau, a manufacturer of UPVC products for the construction and automotive industry, has signed a 15-year lease at £4.95 per sq ft on Manor Point, a 132,000 sq ft distribution centre at Manor Park in Runcorn. Manor Point was speculatively developed in 2009 at the height of the property downturn by Pin Property. It was originally occupied by Medline who vacated the property earlier this year when their business was transferred to mainland Europe. Manor Point will become Rehau’s UK distribution centre, employing 60 people and creating up to 40 new jobs over the next five years. They are relocating from 3MG in Widnes but will maintain manufacturing facilities in North Wales. Cllr Rob Polhill, leader of Halton Council, said: “It is fantastic news that Rehau have decided to remain in the borough. Their investment and confidence in Halton is most welcome.” Imran Younus of Pin Property added: “This is a win/win deal for both parties. The building is of a very high specification.”

POST BUSINESS DAILY A revolution in the way business people get their news

Occupiers keen on Exchange Station, says Stuart Keppie The Exchange Station scheme will unveiled tonight. Inset, Emily Armstrong of Hansteen Pictures: ANT CLAUSEN

by Tony McDonough

POST BUSINESS STAFF

tony.mcdonough@liverpool.com

AN AGENT working on Liverpool’s £5m Exchange Station office scheme says response from potential occupiers has been “overwhelming”. Stuart Keppie of Keppie Massie told Post Business: “We have already secured new occupiers and we have a number of other suites under offer.” Ashtenne Space Northwest has spent several months refurbishing the office scheme in Tithebarn Street, formerly known as Mercury Court. So far 23,000 sq ft has been completed with more on the way.

For 150 years until 1977, the site was home to one of the biggest railway stations in the North West and the developers wanted to bring back the original name. The centrepiece of the scheme is a entrance hall which includes a new coffee shop – Bean at Exchange Station. Agents and business people will gather at the development tonight for its official launch. Emily Armstrong from Hansteen, asset manager for Exchange Station, said: “It is a really exciting time for us, not only with the launch taking place but also because all of the refurbished office suites surrounding the concourse are under offer.

“The concourse is a fantastic space – it has become a real hub for tenants and visitors to come and enjoy lunch or host informal meetings and it is the ideal space for the launch event. “We hope this will be the first of many events to be hosted in the concourse – especially during the International Festival for Business .” Mr Keppie added: “Keppie Massie has had an involvement with Exchange Station for a number of years and it has been a real pleasure to have been part of the team that has delivered such an exceptional refurbishment scheme. “This is one of the best commercial developments within the region and offers an unrivalled state-of-the-art

North West commercial demand rises

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DEMAND for shops, offices and industrial units in the North West increased during the third quarter of the year , says the latest Royal Institution of Chartered Surveyors (RICS) commercial property survey. The report reveals that 9% more chartered surveyors in the region reported rises rather than falls in demand for shops. RICS said: “This may not

sound like a significant result but while demand is still historically very low, this is the first real jump in interest for vacant retail premises since 2011. Significantly, every part of the country saw demand for retail space increase with London seeing the most notable growth.” The study also revealed that 37% more respondents reported an increase in demand for indus-

trial units in the North West – up from 11%in Q2. Chartered surveyor, Andrew Moore of Mason Partners in Liverpool, said: “As the RICS survey suggests, the general feeling in the industry is that confidence is returning to the commercial property market.Encouragingly more occupiers are considering slightly longer leases compared to say a year ago too.”

working environment.” The project management of the scheme was undertaken by Savills and BDP was behind the interior architecture and the brand. Project designer, Jasper Sanders, said: “We wanted to create a place that transformed the building. “The potential for the building was in making the concourse work hard for the business occupiers – we felt if it was good for people, then it would be good for business. “So we utilised the space for a range of meeting and workplace settings. We wanted the interior to follow in the tradition of engineering to reflect the history and romance of this former train station.”

Students in visit PROPERTY agency GVA has given undergraduates an invaluable insight into the world of commercial property by hosting visits to two of its managed schemes in Greater Manchester. The second-year property management students from Liverpool John Moores University visited Merseyway shopping centre in Stockport and Towers Business Park, Didsbury. GVA organised a question and answer session with senior members of staff.


18 post business economic development

Thursday, November 14, 2013

Mersey manufacturing focus on

growth

by Neil Hodgson

POST BUSINESS STAFF

neil.hodgson@liverpool.com

I

T HAS taken longer than expected, with the services sector showing earliest signs of growth in recent figures, but it looks like the “march of the makers” is finally about to get under way. Despite a move to service-based industries in the past two decades, Merseyside is still an integral part of the North West region’s manufacturing base, with two huge car plants in Jaguar Land Rover and Vauxhall. Our burgeoning pharmaceutical sector is also an important asset in plans to position Merseyside as a future centre of excellence in the global biomed community. Manufacturing organisation EEF is a key facilitator for companies throughout the UK to become more efficient and productive and its regional directors maintain close links with EEF members and wealth generators to gauge the state of the market. Darrell Matthews is the new North West director for EEF and is taking over from colleague David Ost on his retirement next month. He has already embarked on touring North West member companies and reports heartening progress on improving trends, particularly in Merseyside. He told Post Business: “The North West remains the UK’s biggest manufacturing region and here on Merseyside we have always been at the heart of its success. “There is no denying that we have been through a very difficult period, but right across our region there is no doubt we are seeing a renaissance involving companies of all sectors and all sizes.” He said: “In recent months better news about the economy and manufacturing has been rolling in. “Starting with the positive economy-wide news; GDP has been picking up since the start of the year and growth in the past nine months has been the strongest in three years. “Our Business Trends survey, which covered the third quarter of this year, reported the strongest set of results for manufacturing for two years.” He added: “The balance of manufacturers increasing output rose to a three-year high – overseas orders posted a two-year high; and demand in the domestic market is also seeing something of a resurgence. “This positive sentiment was confirmed by official statistics showing quarter-on-quarter output growth of 0.9% in the three months to September.” Taking a closer look at what’s happening in Merseyside he said we have well-known sectors such as aerospace, automotive and food manufacturing all making positive contributions to the brightening

Darrell Matthews, inset, highlights Jaguar Land Rover’s Halewood factory which makes the successful Range Rover Evoque industrial outlook in the UK. “Jaguar Land Rover at Halewood is the flagship success story, along with the many unsung companies in the supply chain who are benefiting from its success. “But beneath the headline makers there are also many smaller award winning companies such as Medimmune in Speke who are at the very cutting edge of pioneering medical treatment.” Medimmune makes nasal sprays and has stepped up production at its Liverpool plant over recent months and is looking to increase capacity even

further. But Mr Matthews says success is not just limited to a handful of companies. He added: “I see a lot of ambition to develop new products and services that give Liverpool companies a competitive edge as they look to expand into new overseas markets. “Sales of goods to emerging economies have taken off in recent years. Between 2010 and 2012 UK sales of manufactured goods to China were up 40%; to Brazil were up by a quarter; to Rus-

‘There’s a lot of ambition to develop products’

sia were up more than 60% and to Indonesia were up by more than half. “It’s this focus on innovation and exporting that is critical for long term growth across manufacturing and in the Merseyside economy.” He added: “Looking forward, I am very positive about what the future holds for manufacturers in the Liverpool region. “The outlook in our major European markets has, at least, stabilised since the start of this year. “Activity is picking up, not just in the core of Europe, but anecdotal feedback points to more signs of life in periphery economies that have had the biggest economic struggle

in the past few years. Growth in emerging economies and major markets such as the US and the Far East remains robust, especially important for a region such as ours which, by its very nature, has always been outward looking. “Plus, 2014 will see the world come to Liverpool as part of the International Festival for Business in June and July.” Mr Matthews said: “This will be a celebration of British design and manufacturing excellence, not just from Merseyside but around the UK. I would urge all companies in this region to grasp this initiative and explore every opportunity available to their business.”


economic development post business 19

Thursday, November 14, 2013

in recovery

diary of an entrepreneur AS A child I loved watching LA Law. Law was something I was always interested in and the idea of doing a job where I could help people in times of difficulty really excited me and appealed to me. I always enjoyed a good debate and getting my point of view across so law seemed the natural career choice. After being brought up in Southport, I left Merchant Taylors’ Girls School and went to study law at university. They were three fantastic years – I liked every aspect of my course and I found that law really suited me. Having been awarded a scholarship I went on to spend a year at Bar school in London which I found really inspiring. Despite having been offered a pupillage almost straight away, I chose instead, to cross qualify as a solicitor and I spent some time working for Weightmans in Liverpool and from there my career really took off. I moved to a firm which specialised in personal injury and within a year I was running my own office. I was, and still am, highly ambitious and I also like to think I am innovative and very forwardthinking and for this reason, despite having been offered equity partnership, I decided to return to my barrister roots and joined 7 Harrington Street Chambers, Liverpool. It is a decision I have never

looked back on and since then I have dealt with literally thousands of cases across the country. The world of law continues to evolve with one of the most recent major changes being that people can now ask a barrister directly if they want help or advice with a legal problem and no longer have to go directly to and instruct a solicitor first. I think for many people the thought of dealing with a barrister can be quite daunting. I am keen to break down this perception and show that I am very down to earth and whilst I will fight tooth and nail in court, when the wigs and robes come off I like nothing more than a good cup of tea and a natter with my friends. In my spare time I love to be with my family and spend as much time as possible with my 18-month-old daughter. It can be a challenge juggling a high pressure job and a toddler but luckily my husband has a very flexible job and somehow we manage. I find I can really relax and switch off from the day job by writing humorous poetry and I am lucky enough to have been a featured poet on the radio this year. All of my poems tell a story but whether I’m writing about a bride missing her wedding or a judge missing his gnome, they are guaranteed to get a laugh and bring a smile to your face. Lianne Naughton works at 7 Harrington Street Chambers

‘I found that the law sector really suited me’

Exports are increasing as more Merseyside firms start looking overseas

Merseyside’s bio-pharma sector is also ripe for development, Mr Matthews believes

New EEF regional director has NW pedigree DARRELL Matthews is the new regional director of EEF, the manufacturers’ organisation, taking over from David Ost who is retiring. With more than 6,000 member companies EEF is the representative body for UK manufacturing as well as a major provider of first class business services

to companies in key areas such as HR, employment relations and health & safety. It also offers a range of consultancy to business in areas ranging from management development to energy efficiency and environmental management. Mr Matthews was previously the regional director at the Institute

of Directors in the North West, where he influenced national and local government on setting the right landscape for business to grow. He has championed equality and diversity on company boards, and support for companies employing Reservists. Previously, he had a

senior business development career with BT in Payphones and the Global Network division, and currently serves as a non-executive director for a charitable organisation in the entertainment sector. He lives in Southport with his wife, Joanne and two daughters, and is a keen golfer and sailor.

Lianne Naughton of 7 Harrington Street Chambers


20 post business professional

Thursday, November 14, 2013

One in three ‘told to flout ethics’

The Cammell Laird shipyard in Birkenhead and, inset, David Hunt

Lack of skill ‘unquestionably holding back firms’ growth’ by Joshua Taylor

POST BUSINESS STAFF

joshua.taylor@trinitymirror.com

BUSINESSES are being held back by a critical shortage of skilled candidates to fill job vacancies, a recruitment executive warned. David Hunt, business development and operations director at Warrington-based head-hunting firm Antal International, said many businesses were struggling to fill vacancies and employee “poaching” was becoming more common. His claims echo those of John Syvret, chief executive of Birkenhead shipyard Cammell Laird, who last week said his company was “struggling to bring in talented people” for “the higher-end jobs”. Mr Hunt said: “I think the North in

particular has benefited from the growth in manufacturing. “Demand from our manufacturing and chemical clients is very high and the number of available candidates very low. Salaries for the type of roles we recruit are high and increasing due to the competitive nature of the market – vacancies outstripping supply of qualified candidates.” Asked if this shortage of talent was holding back growth in some businesses, Mr Hunt said: “I would say that is unquestionably the case, particularly in the manufacturing and chemical industries. “For example, in the automotive sector in the North West we know the original equipment manufacturers are all vying for the same candidates, often poaching from each other, and they all have roles they are struggling to fill. One automotive company we

just recruited for in Merseyside had a role open for nearly two years. We had to go as far away as Hungary to find them the skills they needed.” Mr Hunt’s comments come after a job market report was published by accountancy firm KPMG. This report showed the North of England continued to see a sharp growth in permanent staff placements last month. However, October’s rate of growth was slightly slower than the record level witnessed during the summer months. However, the KPMG report also found staff availability was falling, meaning it is becoming harder to attract new recruits – a finding which is echoed by both Mr Hunt and My Syvret. Chris Fry, senior partner for KPMG in Liverpool, said: “On the face of it, the latest figures for the

North are great news. While this is a sure sign of economic recovery, we must not get complacent because, in the higher earning bracket, left unchecked, wage inflation will bring different challenges to businesses. “Another question that must be addressed revolves around whether increasing salaries are enough to entice job-hunters to move between organisations. All the evidence suggests not, with permanent and temporary staff availability falling in recent months. “It means employers cannot rely on wages alone as a hook to attract top talent. “The time has come for them to develop a raft of offers as part of the overall remuneration package. If they fail to do so, they will struggle to recruit and bring their organisation back to pre-downturn levels.”

A THIRD of finance professionals have faced pressure to act in an unethical manner, according to a survey conducted on behalf of Chartered Global Management Accountant. The finding has led the Chartered Institute of Management Accountants (CIMA) to launch a new online guide to teach finance workers more about workplace ethics. The interactive tool takes participants through a series of challenges in areas such as conflict of interest, the supply chain, bribery and data protection. Tanya Barman, CIMA’s head of ethics, said: “Ethical challenges are part of working life and often there is no perfect answer. But if they are not dealt with appropriately, there may be severe consequences when they come to light, both for the individuals and for the companies they work for. “Unfortunately it is still common for employees, be they in finance or in other parts of the business, to face pressure to compromise their ethical standards and the standards of their company. “It is vital to act ethically to build long-term business success and avoid the shortcuts that can turn into tomorrow’s scandal. “Through releasing this tool to both members and the wider business population, we hope to encourage better working cultures.” Further information is available from visiting, www.cimag lobal.com/ethicstool

on the move ■

A WARRINGTONheadquartered professional services group has named its new sales director. Optionis, which provides support services to small businesses, recruitment firms and freelancers, announced the role would go to Jeff Blakemore, 38, from Lancashire. He has been the group’s head of sales

since August 2011 but his new role will see his responsibilities expanded to include workforce management.

FORMER Liverpool corporate banker Debbie Thompson is to join construction firm Aztec as a non-executive commercial director. She was a senior commercial manager at HSBC before becoming head of the Merseyside

business centre of Alliance & Leicester Commercial Bank and head of commercial for St Helens RL Club. Ms Thompson has since set up her own firm, DT Commercial Consultancy. Established in 1988, Aztec now operates across the UK from its Liverpool headquarters.

A NEW chef has been taken on by a

food venue to relaunch its menu. Andy Jennings has joined Franklyn’s Bar & Kitchen in Telegraph Road, Heswall. He was formerly head chef at The Manor in Greasby and his arrival at Franklyn’s coincides with the celebration of its first year in business. Mr Jennings has also recruited new line chefs, Tom Nugent and Tom Foulds.

Jeff Blakemore – new Optionis role

Debbie Thompson – Aztec non-exec

Andy Jennings – joins Franklyn’s


networker post business 21

Thursday, November 14, 2013

Lifting the lid on the dating agency for the top earners

JOSHUA TAYLOR looks into the world of elite dating agencies aimed at the rich

I

NTERNET dating has rocketed in popularity over recent years, but signing up to a publicly available match-making website isn’t feasible for some high-profile and wealthy individuals. The risk of being exposed or targeted by money-grabbers can be off-putting for corporate big-hitters, the super rich and the famous. It is to cater for this market that Berkeley International, which calls itself an elite introductions agency, was created. Membership starts at £7,000 a year and prospective customers go through a rigorous interview process before being accepted. Emma Budgen, the firm’s client director with responsibility for selling its services in Liverpool, said: “Our clients are generally wealthy and affluent with lifestyles they need to protect. “On the internet you have no idea who people are or what their intentions are. So we are managing a certain amount of risk for our clients.” Berkeley claims to have FTSE 100 chief executives, celebrities, leading entrepreneurs and sportsmen among its members. Possible matches are identified on clients’ behalf by the agency, which boasts a two-thirds success rate for relationship starts within eight months of joining. Ms Budgen said that attitudes have

Perceptions of dating agencies have changed hugely in recent years, says Emma Budgen, inset changed towards the dating industry in recent times: “There used to be a lot more stigma attached to it. “People thought if you joined an agency it was because you were socially inept so it was not something you would openly admit to.

“However, people’s options when it comes to dating can be more limited if they are successful, so agencies like ours have become an intelligent business choice. “Our clients know they are going to be meeting people who are meeting

them for the right reasons, not for money or any other ulterior motive.” It is clear the world of dating has been changed beyond recognition by the web, but now it seems the traditional dating agency model is adapting to the modern age too.

One in a million... ■

A DATING website for millionaires is soon to sign up its two millionth worldwide member, its owners have announced. MillionaireDater.com is now in its sixth year of business and membership currently stands at 1.94m. It claims to be the first dating site just for millionaires and those signing up are asked to declare their income, which must be the equivalent of at least $150,000 a year. The website claims to rank chief executives, professional athletes, doctors, lawyers, investors, entrepreneurs, beauty queens, fitness models and Hollywood celebrities amongst its members. The company said in a statement: “MillionaireDater.com has real millionaires with verified identity, income and education level. “Searches on dating sites are at the very heart of the benefits this type of service offers. “All search functions on MillionaireDater.com are simple and straightforward for easy navigation. “The quality and extensiveness of the site’s database and how well it is managed are critical factors in a given dating sites popularity and success. “Members can perform a quick search of members based on gender, age, region or within 100 mile distance, income level, religion, ethnicity, relationship desired, distance desired, body type, photos only and astrological sign.”

past business – nostalgia

Bank’s arrival ‘ most momentous thing to happen since the Romans’

MBNA’s Chester campus, as it was in the 1990s

YOU might not associate a credit card company with the Roman Second Rescuer Legion – but Chester would be a very different place without them both. It was Legio II Adiutrix that founded the fortress that became Deva Victrix sometime after 70AD. And it was MBNA that gave the city’s economy a shot in the arm 20 years ago when it confirmed it was to open its European headquarters in Chester and create 800 jobs. The news had been trailed for some months and, just a week before the official announcement in August 1993, the Post said it would “add a firm financial services pillar to he city’s reputation as a centre for tourism and retail”. And the Post added: “As Chester aggressively tackled its hidden mask of unemployment, MBNA’s arrival could not be more timely.” When the news was confirmed, John Price, Labour leader on Chester City Council, told the ECHO

that the MBNA deal was “the most momentous thing to happen in Chester since the Romans came”. And the following day, the Post reported that the council’s phones had been “red hot” since the deal was announced. A council spokesman said: “We have been contacted by firms willing to supply the bank with everything from their new office building to a drawing pin. And we have also been inquiries from prospective employees.” MBNA grew more quickly that anyone had expected. In 1999, by when 2,200 people worked at the site, Prime Minister Tony Blair descended on the business park to confirm that MBNA was to create another 1,000 jobs. He said: “Through hard work and imagination Chester has turned itself into a thriving, buoyant, upbeat place with more jobs and more prosperity.” ALISTAIR HOUGHTON

Tony Blair mets MBNA staff in 1999 after he announced another 1,000 jobs at the site


22 post business networker

trading gossip ■

“I’VE come a long way from selling potatoes,” former Ashtenne Space Northwest director Wayne Locke told Post Business last week. What does he mean? For the last 13 years he has been overseeing the development of places such as Liverpool Innovation Park and has recently overseen the £5m refurbishment of the Exchange Station complex. Now Wayne, from South Wales, below, has struck out on his own as

Thursday, November 14, 2013

From restaurants to operas for Italian Club founder

a commercial property consultant. He grew up working on a farm and continued to do so even when enrolled on a degree course at the University of Glamorgan in urban estate management. Said Wayne: “I was studying full-time but still working on the farm. “So I would be milking cows and lambing ewes and then I would go to lectures. “I was also selling potatoes from the farm to the other students. “I was basically on the go 24 hours a day, and survived on two short naps a day for two years.” Dedication indeed.

POST BUSINESS DAILY A revolution in the way business people get their news

Download today for your free 30-day trial www.liverpool dailypost.co.uk/ businessdaily

Rosaria Crolla says she loves to perform

myday off Rosaria Crolla is managing director of The Italian Club & The Italian Club Fish and is also an accomplished singer

I

t’s true that I’ve been leading a double life. When people saw me and my partner in business and real life Maurizio on Marco Pierre White’s Kitchen Wars last year, it may have merely re-affirmed that my life is totally consumed by restaurants. It is, to a point.

Whilst it is often very difficult to have another life outside probably the most competitive industry of them all – restaurants – I am passionate about singing too. I am a classically-trained lyric soprano so it would be a crying shame to waste that. I love performing in folk, operatic, oratorio, cross-over and international repertoire. I also perform in English, Italian, Spanish, French and German. Whilst the restaurant industry has always been in my family and although I didn’t open my own until 2008, I actually began solo singing in public at 12 years old. I trained with Scottish Opera principal and teacher, Ann Archibald and won prizes at The Glasgow Music festival as a teenager. I represented my school, The Glasgow Academy, in many competitions and made hundreds of public appearances for the school, too. My professional debut performance was with Scottish Opera in two seasons of ‘The Magic Flute’ in the roles of second boy and first boy, respectively.

In 2013 I performed in opera scenes at Malcolm Martineau’s Oxenfoord School in Musselburgh in the role of Pamina, (The Magic Flute) and as Sister Helen in the opera Dead Man Walking. I knew things were getting serious when, in 1996, I won a scholarship to study at The Royal Scottish Academy of Music and Drama and studied with Elizabeth Izatt, Patricia Hay and vocal coach Julia Lynch. I’ve had extensive dramatic training and am a skilled concert performer and perform regularly for the Catholic Archdiocese of Scotland as chosen by Archbishop Conti and Archbishop Tartaglia. Back in Liverpool, I’m also a member of renowned Liverpool acapella choir, Sense of Sound, led by the wonderful and inspirational Jennifer John. I’m also currently training with internationally-renowned soprano, Barbara Bonney in Salzburg. People ask me about the pressure involved in performing but I don’t feel pressure. It’s exhilarating and it’s something I

‘I don’t feel the pressure when I perform’

love. It’s a great release from the clutches of running two very successful, but time consuming, businesses. Both are naturally public-facing and I enjoy that but singing has taken me to so many pastures new – anyone can see the attraction, I’m sure. For example, I am in Dubai next week singing with world renowned people’s tenor John Ennis and I’m in talks with my home town, Picinisco, back in Italy after I launched a new festival there this summer. I want to expand the event next year which will honour the village by initially linking it musically to Liverpool and Scotland, two of my adopted homes. However, in spite of the jet-setting, my feet are firmly on the ground. After all, both of our restaurant businesses were inspired by my late father who turned his hand from fine dining to fish and chips, Scottish Italian café-style. My mother Maria, sister Gabi and my other wonderful relatives have helped tremendously in driving our two multi-award-winning ventures, making The Italian Club and The Italian Club Fish the names they are today. Dad would be so proud.


Thursday, November 14, 2013

networker post business

23

networking

Restaurant Bar & Grill in Liverpool city centre

my favourite lunch

DTM hosts launch DTM Legal celebrated its official launch into Liverpool with an event at the Town Hall, joined by the Lord Mayor, Cllr Gary Millar. Almost 300 guests

attended. Pictured, above, are Tom Sutcliffe, Ben Wyatt and Paul Hyland and, left, Alison Brennan of DTM with Andy Atkinson of Handlesbanken.

Bar’s birthday party HESWALL’S Franklyn’s Bar & Kitchen celebrated its first birthday this month with a party. More than 100 people attended the event at the Telegraph Road outlet and enjoyed live music from

Q What is your favourite dish and why? A I absolutely love fish and seafood and as there are so many delicious dishes on the menu it’s hard to choose a favourite. I do love the Smoked Haddock Risotto, or maybe the Prawn Linguine, or Native Lobster.

Lisa Riley signs in STRICTLY sensation and soap star Lisa Riley met excited fans when she signed copies of her new autobiography in Birkenhead’s Pyramids Shopping Centre.

SATURDAY, NOV 16

FALKLANDS veteran Simon Weston will be guest speaker at a Remembrance Banquet in aid of military charities at Liverpool Anglican Cathedral which hopes to raise more than £10,000 for Help for Heroes and The Royal British Legion. Tickets cost £65. For details phone 01905 319782 or email cathedralevent services.co.uk

TUESDAY, NOV 19

HOPE University is staging a networking event for small- to medium-sized business in the region, from 4.30pm to 6.30pm. It will deal with subjects such as inbound marketing, customer engagement and what the future of digital looks like for your business, with Bryan Adams, managing director of inbound marketing agency, PH Creative speaking on the topic

Q What is your favourite lunch venue? A I love Restaurant Bar and Grill in the city centre. Q Why is this your favourite venue? A It’s a stunning setting and the food is amazing. The service is fantastic, too, they have a wonderful team who really look after you and make you feel special.

Paul Carden and free Prosecco and bar snacks on arrival. Franklyn’s Bar & Kitchen was founded by entrepreneurs Rob Murch and Olly Gree, pictured, right, at the party.

business diary

Tracy Gardner, co-owner of Sugar Cupcakes

of "The Power of a Contagious Brand in the Digital World" and who your business should be engaging with to influence and drive your strategy. The event is free to attend but booking via the university’s online shop is essential. For further details please contact Caroline White, business development officer via: whitec@hope.ac.uk or 0151-291 2076.

WEDNESDAY, NOV 20

THE next free quarterly event of the Institute of

The bubbly actress was at WH Smith’s to launch her new autobiography, Never Judge a Book By Its Cover, in which she tells how she overcame prejudice in her life both on and off screen.

Export and International Trade North West branch takes place at 6pm, hosted by the University of Liverpool Management School (ULMS) in their Rendell Building, Bedford Street South. The event is worth 10 CPD points to those signed up for IOE Continuing Professional Development. Speakers include Prof Tom Cannon, Professor of Strategic Development at ULMS who will explain the value sport in promoting international trade. Andrew Snell, international director of the Liverpool

Q What is the best bit of business you have done over lunch? A We currently supply desserts to Jalons Restaurant and the head chef, Gary Rush, and I will usually meet over lunch to discuss menu changes and new flavour ideas. We have a great relationship with the team there. Q Who would you most like to have lunch with?

Chamber of Commerce will talk about the forthcoming International Festival for Business being hosted by Liverpool in 2014. The third speaker for the event is Steve Toogood, director of the UK-India Business Council. Bookings via Anthony Pierce: IOE-NorthWest@ export.org.uk

FRIDAY, NOV 22

PROFESSIONAL Liverpool is holding its annual general meeting at Liverpool Town Hall, starting at 11.30am, followed by a

Tracy Gardner A It would have to be Audrey Hepburn, I have always admired her style and class and I would love to hear about the golden days of Hollywood. Q Where else do you like to go? A If it’s lunch on the go (which it usually is) then AppeBite in Woolton Village do the most amazing made to order sandwiches. They are so fresh and they only use the best quality ingredients, I love the PiriPiri Chicken with Salad.

lunch for members and guests in the town hall’s large ballroom, commencing at 12.15pm. Please contact Marjorie Barrow at marjoriebarrow@ professionaliverpool.com for further details.

MONDAY, NOV 25

THE Employability and Skills Group of companies is holding a series of open days at its Liverpool operation, which is situated in the city centre’s Bold Street. It invites schools and pupils, parents, teachers, heads of departments

and careers advisors, training providers, job centres, community agencies, and employers to its informal events which run from 10am to 4pm, on the second floor of Link 19 in Bold Street’s Central Village. Refreshments are included. For further details contact Jules Westbrook or Pauline O’Brien on 0151-702 6111. ■ Send your diary events to neil.hodgson @liverpool.com



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