Napthens - in:brief newsletter (Autumn 2012)

in:brief napthens.co.uk

autumn 2012 issue ten

THE NEWSLETTER OF NAPTHENS SOLICITORS

Business Roundup Robert Sheasby, director of the NFU North West, writes about Lancashire’s rural economy. page 2

Monitoring Staff Oliver McCann advises on data protection concerns in the workplace and how to stay within the law. page 2

Solid Foundations An artist’s impression of the new development

Napthens advises on £10 million Fylde property scheme The Commercial Property team has played an important role in a £10 million property scheme including a supermarket and 34 homes in Lytham St Annes.

Allan Sumner, partner, advised client Worthington Properties on the site acquisition and development agreement with national retailer Aldi.

The two storey scheme will comprise a 14,155 sq ft foodstore and 70 parking spaces for shoppers, plus 34 contemporary one and two bedroom apartments, with sheltered basement car parking for residents.

The development is situated on the site of a derelict five story building that was the former home of St Annes Conservative Club. The club

recently relocated to new purposebuilt premises nearby.

sympathetic to Lytham St Annes’ Victorian grandeur.

Work is now underway with the scheme set to be completed by December 2013. The 34 apartments will be spread across three floors and are being developed by a sister company of Worthington Properties, Hollinwood Homes, which is the residential property division of The Marcus Worthington Group.

“It was particularly pleasing to see the project come to fruition due to the deal’s complex nature and I’m glad to see it is already proving a success with home buyers.”

Allan Sumner said: “The development will be a welcome addition to the town and its architecture is

Russell Worthington, Worthington Properties development director, said: “The development will be in keeping with the surrounding area and both the retail and the residential elements of the scheme will offer new opportunities for the local community.

Success abroad: exporting sector focus page 4 & 5

“The new Aldi store will bring new jobs to the area, while the apartments will offer first time buyers and keyworkers the chance to own their own home.”

The Lancashire house builder has already sold three of the properties off-plan and interest in the development is particularly high.

Prices for one bed apartments at St George’s Court will range from £98,000, and two bedroom apartments start at £160,000.

in:brief profiles Stone UK and learns about quarrying and manufacturing specialist stone products. page 3

Ask the Expert Head of Family Simon Gledhill looks at so-called quickie divorces. page 6

Face2Face Our expert meets Paul Heathcote MBE to discuss the county’s hospitallity sector. page 7

welcome / round up / legal update:

in:brief welcome

Business roundup

By Robert Sheasby, director of NFU North West That is not the only challenge though – we also operate in an extremely competitive market place. It cannot have escaped anyone’s notice recently the pressure on the dairy industry which has seen national press coverage as the sector seeks not only an above the cost of production return (about 30 pence per litre), but also a contract that is sustainable in the long term.

Dairy is not the only sector facing a challenge. All agricultural and horticultural sectors are likely to feel the strain this autumn as price pressure is expected to remain high as the effects of the weather globally impacts on harvest. Yields are expected to be down caused by serious drought in the USA and a shortage of rainfall around the Black Sea sending commodity prices up, in turn leading to increased costs of production.

Tricia Morrison, Head of Construction

Welcome to the latest edition of in:brief. In this edition we examine the role Lancashire’s exporters play in the UK economy, speaking to both advisers and successful businesses themselves. We look at how many of the county’s exporters are relying on their raw entrepreneurial instinct as much as advanced technology.

As usual we also profile two of our clients – turning to the hospitality sector to meet Patsy Slevin, head brewer at Prospect Brewery in Wigan, to learn how her business has built up such an envied reputation within the industry.

Then, heading to the north of the county, we pay a visit to Stone UK and learn how this traditional business turns 300million-yearold stone into products sought after by customers as diverse as The Queen’s estate and Aston Villa Football Club.

Guest columnist Robert Sheasby, NFU North West director, examines the latest issues in the rural sector.

Our feature Face2Face this time hosts a meeting between Malcolm Ireland, our Head of Leisure & Licensing, and Paul Heathcote MBE, chef and now chairman of Marketing Lancashire.

The leisure industry experts put their heads together in conversation, discussing how Lancashire’s hospitality sector can grow in challenging times.

Robert Sheasby

Agriculture is the only honest way for nations to acquire wealth.

Controversial, but the words of Benjamin Franklin. On that basis after the travails of the banking sector, agriculture and horticulture

Already wheat has pushed through the £200/tonne mark having started the season at £160/tonne, and energy costs continue a one way trip. This, coupled with a reluctance in the domestic market for any price inflation is placing real pressure on many North West farm businesses.

Finally, each of you can play your role. Each time you go shopping, make sure that you are supporting North West farmers who not only produce food but also maintain the countryside which is the backdrop to so many of our weekends – whether wet or dry. www.nfuonline.com

Contact: Robert.sheasby@nfu.org.uk 01695 554900

Monitoring employees can bring with it a host of data protection concerns for a business.

It is normal practice for companies and organisations in many different sectors to install CCTV cameras in the workplace, add trackers to company vehicles, or perhaps monitor staff use of the internet or company email system.

Employment partner Oliver McCann advises businesses on how they can monitor employees’ activities effectively whilst remaining within strict legal guidelines, and Simon Gledhill, Head of Family, considers whether there is such a thing as a ‘quickie divorce.’

I hope you enjoy the read. If you have any comments on any of the articles, do let us know.

2 in:brief AUTUMN 2012

should be enjoying the good times and certainly feeling honest.

However, whilst for many the wet weather is an inconvenience to leisure or business, for farmers and growers it is the difference between having and not having a cashflow.

By setting the strategy now, agriculture and horticulture has in the North West an unrivalled opportunity to contribute to our food security, our balance of trade deficit, as well as contributing directly to the local economy by direct jobs in the supply chain – including the food and drink industry.

Legal update

Along with some of the latest news from Napthens, our experts provide an update on issues from their own legal sectors.

Thank you.

With increased base commodity prices this directly leads to the livestock sector seeing increases in the cost of production. In a wet year, as we have had, for all sectors, the cost of harvest goes up and quality usually suffers – a double hit.

To counter some of these challenges the NFU has recently launched a new report and campaign titled ‘Farming Delivers.’ This will see the NFU showcasing how farming delivers across food, animal welfare, the economy, the environment, for cleaner energy and for careers both in the North West and across the country.

Oliver McCann

This type of workplace monitoring is legal, but it must fall within strict guidelines set out by the law.

data protection within the workplace which includes the correct use of monitoring equipment.

the company practice on this matter, and include it in a contract of employment.

For instance, it is crucial that there is a genuine business need for this monitoring, or a company or organisation can fall foul of the Data Protection Act 1998 (DPA) and meet arguments that use of the monitoring equipment is a breach of privacy.

This guide recommends that employers make it crystal clear that equipment such as CCTV is being used, what it is being used for and what will happen to the images and information which have been obtained.

Under the DPA, an employer must be able to justify not only the use of such equipment but the manner in which it is used and the information collected and stored. It is very rarely legal to secretly monitor staff, for instance with video cameras in private areas.

Signage should be in place and clearly visible, to make sure that employees and other visitors are aware of monitoring equipment.

Whilst many employers will be exempt from notifying the IC that they are a data controller, once an employer installs monitoring equipment they must register and notify the IC of the usage of CCTV/ vehicle tracking. Failure to do so is a criminal offence punishable by a fine of up to £5,000.

To help employers, there is plenty of guidance on the act from the Information Commissioner (IC), who has provided an employers’ guidance booklet, Quick Guide to the Employment Practices Code, on

Employers should also conduct regular Impact Assessments which are designed to weigh the benefit to the employer in using the monitoring equipment (for example, security or efficiency) against intrusion to the employees. These should be carried out annually.

It is also a good idea to have a written policy in place which sets out

At Napthens our employment team can help clients conduct an Impact Assessment which is compliant with DPA regulations.

Contact: Oliver.McCann@napthens.co.uk 01254 686221

www.napthens.co.uk

book review / firm news / Stone UK:

Book Review Andrew Clare, corporate partner, reviews the novel Pro Bono by Seicho Matsumoto – a book he translated himself and which is now available to buy. ultimately spending three years in Japan with an American law firm.

While there I translated this classic legal thriller.

social consciousness, particularly in relation to the various sociopolitical problems experienced by post-war Japan.

The translation started off as a way of filling time while my family was back in the UK, and also a way of keeping my reading skills up to speed.

In Pro Bono (Japanese title: Kiri no hata, 1961), the story deals with the failings of the judicial system in Japan and the efforts of the sister of the wrongly-indicted defendant in a murder trial to secure legal representation by an eminent defence attorney in Tokyo.

An award-winning author, Matsumoto’s novels are known for their psychological complexity, meticulous detail and, perhaps most significantly, their emphasis on social realism.

After serving five years with 42 Commando, Royal Marines, I found myself doing a degree in Japanese and then training as a lawyer,

Matsumoto came from a poor family background, and didn’t have any formal education. His story is one of triumph over prejudice and adversity.

He was the first author to introduce into his stories a strong element of

Matsumoto wrote the story following several prominent miscarriages of justice including the infamous Matsukawa Incident in 1949, where the US occupation authorities and the Japanese Government claimed the Japan Communist Party (JCP) was responsible for derailing a passenger train.

Twenty JCP members were arrested and charged, six of whom were given the death penalty.

Matsumoto, together with a number of other prominent authors, was instrumental in organising a petition, as a result of which all the defendants were acquitted.

Pro Bono is the first Matsumoto novel to be published in English in the last 20 years and is expected to be of interest to the significant following the author has around the world, particularly in America.

Contact: Andrew.Clare@napthens.co.uk 01254 686208

Building on solid foundations Not many businesses can boast Her Majesty The Queen as a customer.

But then not many businesses are experts in the art of quarrying and manufacturing specialist stone, dealing with 200 tons of processed stone each month.

Founded in 2002, the group now employs over 300 people across more than 30 branches and its Bold Industrial Estate head office. It is run by business partners Zubair Malik and Suhail Sharief.

The group has branches in locations as varied as London, Nottingham and Oldham, and has recently opened in Gainsborough and Northampton. Now it has unveiled plans for pharmacies in locations including Lancashire, Cumbria and Staffordshire.

Richard Clithero has advised the group on its recent acquisitions, which have taken it to 34 branches across the UK. Richard said: “Imaan Pharmacies has expanded rapidly during difficult economic conditions and I am delighted to see a regional business doing so well in a competitive national arena.”

The company, formed in 2006, now has eight staff and has carried out projects for customers including the Queen’s Estate at Sandringham, the Geffrye Museum in London, Blenheim Palace and Aston Villa Football Club. It now turns over approx £1.5million.

Suhail Sharief added: “During the last three years we have expanded particularly quickly, opening branches in areas where there is a genuine need for a good pharmacy service.

“Our new pharmacies are intended to really benefit the communities they serve, particularly the elderly, disabled and those without cars.”

Stone UK produces a range of specialist products

Private and commercial customers value Stone UK’s work for its traditional roots. The business still deals with traditional English stone, manufactured with traditional methods to supply craftsmen around the UK.

“A lot of our competitors import stone and also supply man-made products, but we can provide natural stone very competitively against these other products such as precast stone. Natural stone is more environmentally friendly and often more in keeping with the style of existing buildings.”

David Evans, managing director, said: “We pride ourselves on being able to supply natural English stone for building projects across the country.

As well as quarried stone, Stone UK works with reclaimed stone from industrial sites and commonly attracts the attention of customers in London and the South East.

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Richard Clithero, solicitor in the Commercial Property team, has advised St Helen’s business Imaan Pharmacies on ambitious plans for growth.

The group specialises in providing prescriptions and other community based services for local residents who may have mobility issues.

Stone UK, based in Garstang, specialises in quarrying local stone from Yorkshire and Lancashire, to manufacture products including paving, building stone and memorial stone, fireplaces, steps and walling materials. The raw material used is carboniferous sandstone which is approximately 359 - 299 million years old.

Local projects include supplying English sandstone and granite cobbles for part of Chester’s centuries old Commonhall Street; and renovation of the Cartford Inn, Little Eccleston.

Napthens advises on pharmacy growth plans

The business relocated to Garstang two years ago with the purchase of a specialist stone cutting machine which allowed the business to expand. Napthens’ Commercial Property team advised on the move.

It is now planning to develop its site with a small reclamation and builders’ yard with an emphasis on supplying local traders. Service lines include planning and design, bespoke cutting and landscaping.

David added: “While we have worked on projects across the UK

and our stone is proving particularly popular in the south of the country, many of our customers are local.

Contact us:

“They particularly value the locallysourced stone which is a good match for other properties in the area around Garstang. A lot is purchased for restoration and conservation projects.

We welcome your feedback and comments on any of the articles in this issue of in:brief. Feel free to drop us a line at Marketing@napthens.co.uk or visit our in:brief page on our website, www.napthens.co.uk/inbrief.

“The development of our site will give more access to a range of services to local people.” www.stoneuk.com

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AUTUMN 2012 in:brief 3

sector focus: Lancashire’s exporters

Global markets hold no fears for Lancashire’s exporters The Government regards UK export sales as a key driver of economic recovery – and Lancashire’s exporters are playing a major role with their traditional can-do attitude.

Success stories can be found in knowledge-driven sectors, such as biotech and speciality chemicals, yet many of the Red Rose County’s exporters rely on entrepreneurial instinct as much as advanced technology.

One of the highest priorities is effectively managing cashflow: the gap between shipping goods and receiving payment can put a significant strain on resources, while seasonal demand spikes, long transit times and lengthy credit terms add extra pressure.

“To ensure success, financing should be carefully tailored to meet fluctuations, helping to accommodate varying payments terms and fulfil day-to-day working capital requirements,” said Brian Heyes, senior international commercial manager at HSBC in Preston.

“The use of traditional products, such as letters of credit and documentary collections, are as effective today as they have always been, and enable businesses to build trusted trading relationships around the world.”

Other options available to manage cashflow are factoring and invoice discounting facilities, which deliver credit against the sales ledger.

“Working capital loans of three to five years can be paid back through instalments, which effectively enables companies to commit long term working capital to the business and this helps support growth needs,” said Steve Riley, a director at Burnley-based Riley Brothers, which exports beef and lamb carcases to France and Germany. “In addition, the Government offers help to plug the funding gap through the UK Export Finance Export Working Capital Scheme.”

First time exporters are advised to pay close attention to legal and compliance issues. Companies that fail to do this face heavy costs and lost trading opportunities.

“Dealing with import restrictions and regulatory hurdles can be daunting and payment terms are always a keenly negotiated issue,” said Andrew Clare, a corporate partner at Napthens. “You should carry out credit checks, insist on a healthy deposit, and deliver product against a letter of credit or bond.

“If you are exporting to countries with weak corporate governance

4 in:brief AUTUMN 2012

regimes you may be exposed to risks such as solicitation, extortion or bribery. Contracts should be run past local lawyers as most countries have laws that will not be affected by freely negotiated contractual terms. It’s especially important to link up with a trading partner or agent who understands the local legal requirements.”

Nonetheless, commentators agree that businesses armed with the appropriate financial resources and legal advice have much to gain from developing overseas markets.

With rare exceptions, firms that tackle international markets become stronger and more productive as a result.

was not filled in to the requirements of Chinese customs,” explained Mark Merrick, finance director at AM Seafoods. “The UKTI advisers out there were magnificent. They worked with us over 24 hours to resolve the issue and we were very pleased with the outcome because it could have gone horribly wrong.”

Some exporters believe more could be done by the Government to boost the UK’s export trade – an opinion underscored by a recent House of Commons Business Select Committee report which highlighted the need for the UKTI to do more to flag up investment opportunities for UK exporters.

“While the growth opportunities of large emerging markets such as China, Brazil or India have been well documented, thinking laterally about supply chains will enable businesses to identify their most relevant opportunities.”

Detailed and wide-ranging research of the target market is essential and the Government’s advisory body, UK Trade and Investment (UKTI), has professional advisers in 96 international markets who are well placed to help exporters.

Services include trade training for new exporters; support for experienced exporters; market research and international e-commerce; overseas missions and market visits; financial support; and export documentation advice.

UKTI advisers were especially helpful when Fleetwood-based AM Seafoods, which exports shellfish to worldwide markets, ran into a potentially damaging red tape tangle in Shanghai.

“The documentation for our product

“There is also pressure being brought to bear on the Government to implement short-term export credit guarantees, as is the case in some European countries, to deal with the lack of funding from conventional sources,” commented Napthens’ Andrew Clare. “This would help to alleviate the constraints on many businesses when trying to obtain trade credit.”

Other international traders want to see the Government take a firmer stance on countries that impose import restrictions. Among them is Leyland-based gift card supplier Nitecrest, which exports to 120 countries.

“A challenge we face is an import ban on certain product ranges in Nigeria. While we understand the view of creating local manufacturing,

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sector focus: Lancashire’s exporters we still believe the UK Government should take more notice of these situations as they do not generate fair international trade,” said Nitecrest managing director Ronnie Hart.

“Import restrictions in Nigeria could lead to other governments in Africa doing the same and this would seriously harm many UK exporters.

These bans have been in place for many years and affect a range of products, including our own.”

While government support is certainly welcome, exporters must plough their own furrow in the export trade by developing competitive advantages that set them apart in the marketplace.

“The UK is one of the world’s most open and competitive markets: if you succeed here, you are very well

placed to succeed internationally,” said a spokesperson for UKTI in the North West. “Companies that compete successfully tend to have well defined products or services that can build on the UK’s reputation.”

Lancashire’s exporters are a hardy breed and there are no ‘no-go’ countries for businesses such as Nitecrest.

Businesses thinking about starting an export campaign are advised to carry out extensive research to establish where their business’ skills and products are most in demand.

“To us, every country has a potential client and we work in some very challenging areas, including Yemen, Afghanistan, Iraq, Palestine, Somalia, and Congo, to name just a handful.

We travel generally wherever a European airline will take us,” said Ronnie Hart.

“While the growth opportunities of large emerging markets such as China, Brazil or India have been well documented, thinking laterally about supply chains, rather than automatically targeting traditional trade routes, or focusing on the current ‘hot’ markets, will enable businesses to identify their most relevant opportunities,” commented Brian Heyes at HSBC.

“Of course there are some areas that are no-go in terms of travel and here we work by email and phone, conducting meetings in neighbouring countries, or an international hub close to the client. These areas are challenging, however, and any exporter needs to be very careful.

Often we have to arrange security for our travel which is expensive and must be reflected in the cost of sale.”

All commentators agree that countries where bribery and corruption are widespread should be approached with caution, or even avoided altogether, depending on the potential downside and cost of risk management.

European Union countries are recommended for businesses setting out on their exporting journey, principally because there are no tariffs, cultural differences are minimal, and language issues are rare.

“Exporting to eastern Europe is difficult because of limited information and trading history and we don’t trade in Russia anymore,” said Mark Merrick at AM Seafoods.

Looking ahead, Lancashire exporters are unanimous that success will continue to come the way of businesses with an eye for innovation and an intrepid attitude to business growth.

“We’ve had customers in former Soviet Union countries who wanted us to do things we were not comfortable with, such as providing incorrect documentation to enable the customer to avoid paying tax or import duties. We won’t do this and will walk away from a market rather than get involved in dubious activity.”

“For people with the right approach, there will be plenty of opportunities out there,” said Mark Merrick.

“The increasing strength of the pound is creating pricing pressures, but this won’t be a serious obstacle for businesses with a good product, thorough knowledge of the market, and strong rapport with the customer.”

Napthens is delighted to sponsor the International Business of the Year category at the 2012 NWSCA Awards on November 22.

Brian Heyes

Andrew Clare

Lancashire’s exporters play a key role in the economy

www.napthens.co.uk

Ronnie Hart

AUTUMN 2012 in:brief 5

ask the expert / ownership / lancashire brewers: ask the expert:

Quickie Divorces Simon Gledhill is Head of the Family team, advising on issues including divorce, and seperation agreements, as well as complex children matters.

Legal Update - ownership Keith Melling, Head of Corporate, looks at employee ownership of businesses.

Businesses are becoming increasingly aware of the benefits of incentivising employees through share ownership, but not many take the step of passing overall ownership into the hands of their staff.

Q: I am going through a divorce, and would like to get through the process as quickly as I can. Television and celebrities paint a picture of quickie divorces – could you tell me about the reality?

This is mainly because employee ownership is not widely understood, with no recognised model which can be easily adopted by companies, their advisers and finance providers.

A. In the UK, it is likely to take on average five or six months for the courts to process the necessary paperwork, and in the meantime there is plenty going on behind the scenes led by the solicitors acting for each party involved.

The Government recently completed a review of benefits of wider employee ownership of businesses.

It concludes that there is evidence that companies with a degree of employee ownership outperform those without, due to increased buyin, commitment and reward.

The basic steps will include a divorce petition being issued through the courts by one party to the other, who then has to complete and return the paperwork to the courts.

Next Decree Nisi is applied for, which is the court’s approval of the divorce.

Following this Decree Absolute can be issued, but only after six weeks and one day.

The process becomes even more complicated where joint assets are involved such as a house or pension scheme, which must be split fairly.

Where children are involved the process is still more complex as there are so many more factors to consider such as shared care and contact arrangements.

However, this time is absolutely necessary to make sure any arrangements are acceptable for both parties, and is used very productively by the solicitors.

Advisers for both parties will negotiate financial settlements, for instance, and ensure everyone is happy with the results.

While the timeframe may be longer than you were hoping for, this time will be put to good use.

The most important thing is to seek good legal advice as fast as possible, and try to remain civil with your partner during the proceedings, both of which can help the process to go smoothly.

Contact: Simon.Gledhill@napthens.co.uk 01772 904270

The report (the Nuttall review) recommends that the Government: • Raises awareness of employee ownership within the business community, in particular amongst professional advisers

• Increases resources to support employee ownership, e.g. access to finance and training • Produces simplified models for employee ownership, and removes certain legal restrictions One challenge which must be addressed is to encourage interest from finance providers.

Employees need to be comfortable that funding will be available in times of both growth and distress.

Business owners need to be confident that an employee buyout is a realistic exit route which will deliver the capital value to fund retirement or other business opportunities.

In either case, employees who are committed to the business long term are likely to need a finance partner with a long term strategy. The question is whether there are any genuine routes to more ‘patient’ capital.

If the employee owned company is to become a more conventional model, the legal aspects of establishing and running a business need to be simplified. The most common structure is for shares to be held by an employee benefit trust (EBT) which can operate as a form of ‘warehouse’ to hold the shares and any dividends or sale proceeds for the benefit of the employees.

This avoids complications such as tax issues on employee share ownership and retrieving shares when an employee leaves. If there is increased awareness of the benefits of the structure, the report recommends developing standard form documents (similar to Model Articles which apply to companies), which can make establishing an employee owned business less expensive and easily understood.

Businesses with strong employee participation continue to thrive – successful local company, EH Booth

& Co, is a testament to the success in employee share ownership. We have experience of advising clients in this area and expect to see more of these structures emerging if the results of the report are implemented.

Keith Melling Contact: Keith.Melling@napthens.co.uk 01772 904318

Prospects are good for Lancashire brewers Wigan-based Prospect Brewery might be unrecognisable from the days head brewster and owner Patsy Slevin spent creating ales in her mother’s garage, but one thing remains unchanged – a passion for great beer.

Founded in 2007 the small brewery quickly gained national attention and plaudits for the quality of its ales.

Cask beer was closly followed within six months by the first bottled beers and by January 2009 ‘Nutty Slack’ had won gold at the Society of Independent Brewers’ northern region awards, and silver at the national awards.

brewers Daniel Thwaites. Prospect is now operating its first pub – The Silver Tally, formerly the Foresters Arms in Shevington Moor, Wigan.

Napthens has provided a range of legal services for Prospect Brewery, including licensing work for The Silver Tally, and employment advice.

The brewery also recently expanded the opening hours of its popular on-site bar, and invested in new fermenting equipment. Plans are in the pipeline for more pubs.

The future is looking golden for the brewery, with younger drinkers wanting good tasting craft beers and taking a liking to many of Prospect’s mining-themed ales.

Patsy said: “People like drinking local beers – they know they’re sourced locally with good quality ingredients and the beer itself has only travelled two miles down the road from the brewery.” www.prospectbrewery.org.uk

Before long the brewery had been the focus of a TV show featuring Oz Clarke and James May. Patsy said: “Lots of people are very surprised at how quickly we have grown to where we are now. It has all happened organically and we like to think we have grown by making good beer.

“When we first started I always intended it to be a part time role and never had plans to move out of the garage. Four years later we’re in 4,500 sq ft of industrial space.”

Production has now ramped up from 6,000 gallons in Prospect’s first year, to more than 50,000 gallons in 2012. Turnover is predicted to reach £500,000 this year.

Simon Gledhill

6 in:brief AUTUMN 2012

In recent weeks Prospect made its biggest announcement yet – a joint venture with legendary northern

Patsy Slevin of Prospect Brewery

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face2face / logistics acquisition:

FACE2FACE: Lancashire Hospitality For our latest Face2Face, Malcolm Ireland, Head of Leisure & Licensing at Napthens met with Paul Heathcote MBE, renowned chef and Chairman of Marketing Lancashire to discuss the county’s hospitality sector. hard-earned cash for something that they can get at home. I think it comes down to customer service.”

PH: “Keeping costs down unfortunately means working harder and doing something different. As well as the quality end, Lancashire is well placed to offer value-for-money rural or seaside breaks, walking, and cycling for example. We also need to identify how our incredibly good transport system can appeal to international business and Marketing Lancashire needs to be a voice for this.”

MI: “With some of the successful businesses I meet it’s about efficiency, innovation and surrounding themselves with the right team. In terms of efficiency, it is amazing how much can be cut from overheads.

Malcom Ireland (left) and Paul Heathcote in full flow Malcolm Ireland (MI): “Lancashire is known for its food, beautiful countryside, coastline and its hospitable nature. What other aspects of the region should the hospitality sector leverage? For instance, it has a large number of breweries of all sizes, and sales of cask ale are showing growth in a shrinking market. Cask ale is also something that you cannot get at home, so it has a clear USP.” Paul Heathcote (PH): “There is plenty for Lancashire to shout about but in the past we often haven’t done enough to publicise this fact.

The heritage sector, for instance, is hidden – we need to bring this to life.

PH: “As a chef, provenance and quality have been important weapons in the armoury for years.

The recent Square Food Festival in Preston was a chance for local producers to showcase their wares in a high profile event and I am certain this trend will continue well into the future.”

MI: “The success being enjoyed by brewers is partly due to customers placing emphasis on provenance and quality and the same applies to our local food producers.

“Customers like the idea of enjoying something that was made a couple of miles away rather than 10,000 miles away.”

“Marketing Lancashire is dedicated to supporting tourism businesses.”

“Our food producers are of a standard higher, or on a par with, all other counties in the UK and we are fortunate to be a gateway to the Lake District which brings numerous opportunities. We need to be bigger and more bullish about our assets and make Lancashire a destination of choice.”

MI: “Great emphasis is being placed on provenance and quality as a sales tool, is this trend likely to continue?”

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PH: “The challenges are vast as other areas are improving their offer as well, but we have much to voice about our own offering. For example, The Open Golf was just a small snippet of what we can do well – the Fylde Coast was presented to the world in a fabulous way and we must keep reminding ourselves of the success – we can compete with the world when we want to.”

MI: “More than ever consumers want value for money. So what can leisure businesses do to maximise their appeal and encourage visitors to increase spend, and how can they keep costs down and remain competitive whilst managing red tape?”

PH: “It’s important not to use the tough economic climate as an excuse. Have a team in place that understands how to work in difficult conditions, and doesn’t shy away from the hard work that needs to be done.”

MI: “Research is telling us that people are not necessarily spending less when they go out, they are simply demanding more for their money. They resent parting with their

“But businesses in the sector need to understand what help is available and what organisations, government or membership bodies they can turn to. In the leisure sector there are all sorts of organisations. SIBA for independent brewers, ALMR and the BII for pubs etc, and let’s not underestimate the value of good business advisers – legal, financial or otherwise.”

PH: “This is one of my board’s remits. Marketing Lancashire is dedicated to supporting tourism businesses. As well as marketing campaigns we provide support including training courses which can help businesses in areas such as customer service.

“Many membership organisations offer good advice and support when it is needed and also present opportunities to mix with like-minded people.”

More information on Marketing Lancashire can be found at www. lancashireandblackpool.com

Napthens drives regional logistics acquisition The Corporate and Employment teams at Napthens played a key role in a recent deal which saw a Lancashire logistics business acquired.

Napthens’ client, LPH Logistics, Bamber Bridge, near Preston, recently acquired Charnley Logistics, Huncoat, near Accrington, for an undisclosed sum.

LPH is an Interlink Express franchise established in 2008 and operated by father and daughter team, directors Paul Sleightholme and Louise Saddik, with Louise’s husband Hassan.

Charnley Logistics is also an Interlink franchise and was operated by managing director Graham Charnley, employing 20 staff. Graham will retire after a transition period.

Both LPH and Charnley Logistics specialise in ‘personal’ logistics such as parcels, packages and letters.

Interlink Express is part of the GeoPost Group of companies, owned by the French postal organisation, La Poste. The group now operates a parcels collection and delivery service with more than 100 franchises across England, Scotland, Wales and the Channel Islands.

The newly-acquired business will be run by Louise and Hassan Saddik.

Andrew Clare, partner in the Corporate department at Napthens, led the acquisition team, with assistance from Employment partner Oliver McCann.

Andrew Clare said: “Logistics remains a well performing sector and this acquisition by LPH will support the company’s plans for growth and give them access to a new market for its services.

“The acquisition was a perfect fit for both parties, allowing Graham Charnley to exit the business and retire, with the newly expanded business giving LPH the opportunity to expand into a new part of Lancashire.

“I look forward to seeing Louise and Hassan take the business forward and make a real success of it in the future.”

AUTUMN 2012 in:brief 7

and finally:

Free employment & HR workshops Napthens is hosting free employment law and HR events to give employers practical advice on staff performance issues.

The events take place at a choice of locations on October 2 and 3, and will see the Employment team joined by training group Dale Carnegie for an interactive-style workshop.

The sessions will give businesses practical guidance on how to communicate effectively with staff on performance issues, and provide the necessary legal knowledge to maximise employees’ potential.

HR decision makers will be given advice on issues including: handling employees’ performance to avoid capability management issues; the legal framework for dealing with performance management; and guidance on internal appraisal systems.

Registration starts at 8am at the Dunkenhalgh Hotel, near Accrington on October 2, and at Ribby Hall, near Blackpool, on October 3.

For more information or to book, visit www.napthens.co.uk/seminars, email seminars@napthens.co.uk or call 01772 904397.

Deal reflects well on Blackpool business Corporate solicitors at Napthens have led a deal which saw a specialist supplier of hi-tech mirrors sold to an international houseware company.

Allan Sumner on top of the world at St Kilda

Mirrortech Ltd, based on the Fox’s Industrial Estate, creates custom mirror designs and wall art, often featuring inbuilt electronics including LED lighting. These products are sold to independent and multiple outlet retailers including Next, BHS and Selfridges.

Me and my...

Natural history Allan Sumner, partner in the Commercial Property team, has a lifelong love of the natural world. He recently visited St Kilda, birdwatching paradise and the most westerly inhabited part of the UK. Birdwatchers are known to go to extreme lengths in pursuit of their hobby, but even a hardened naturelover would think twice about a trip to St Kilda.

But the isolated chain of islands 40 miles off the coast of Scotland in the North Atlantic boasts some staggering statistics: highest sea cliffs in the UK, the world’s largest colony of atlantic gannet sea birds and the UK’s largest puffin colony.

With no permanent lodging for visitors, simply getting to the island – now owned by the Scottish National Trust – presents its own challenge.

Charter trips are operated, but guests can only stay a few short hours.

spending two weeks at a time in renovating properties which were once used by the original inhabitants of the island – evacuated in the 1930s when the isolated life became too much.

Allan revealed: “When I was 13, my older sister decided she was too old for family holidays. My father said the two of us would go away together, and asked where I wanted to visit. I chose an island in the Inner Hebrides!

“My love of the Scottish islands, and of wildlife, really grew from that visit.

I read about places to visit and came across St Kilda. It wasn’t until I was older that I realised how difficult it was to visit it.

Corporate partners James Allison and Andrew Clare advised Mirrortech’s owners Gavin Jones and Tony Blundell on its sale to Leedsbased Pharmore Ltd, a national market-leading business specialising in supplying housewares to large multi-sited retailers in countries including Canada and Australia.

James Allison added: “Mirrortech has capitalised on a solid niche in the market for its hi-tech bespoke mirror systems, and this sale will help take the business to the next level.”

New appointments

wasn’t chosen. You put your name down a year in advance, and I was lucky to be chosen for 2012.”

Allan found plenty of time to identify rare birds including the sub species of the wren only found on St Kilda.

He also took part in a time-honoured island tradition – the Chimney Challenge, a gruelling run up a cliff featuring a 700 ft climb which earned him a certificate.

He added: “Night time viewing of the nocturnal sea birds was particularly exciting. We would climb down a cliff face before it got dark, and wait for the birds to arrive. Even at 1.30am it was still light enough on the islands to see the wildlife.

Instead, some choose to volunteer to take part in conservation projects,

“I put my name down for a two week project about ten years ago, but

“The visit was a dream come true.”

Preston: 7 Winckley Square, Preston, PR1 3JD DX 714572 Preston 14 Tel: 01772 888 444 Fax: 01772 257 805 Email: Preston@napthens.co.uk

Blackburn: Greenbank Court, Challenge Way Greenbank Business Park Blackburn, Lancashire BB1 5QB DX 745450 Blackburn 12 Tel: 01254 667 733 Fax: 01254 681 166 Email: Blackburn@napthens.co.uk

Blackpool: Libra House, Cropper Close, Whitehills Business Park, Blackpool, FY4 5PU DX 745260 Blackpool 20 Tel: 01253 622 305 Fax: 01253 295 591 Email: Blackpool@napthens.co.uk

Solicitor Jennifer Hayhurst and IT developer Andrew Newman Solicitor Jennifer Hayhurst has recently joined Napthens’ residential property team. Based in the Preston office, she specialises in residential sales, purchases and remortgages, along with all aspects of the conveyancing process.

Jennifer attended Lancaster University and qualified as a solicitor in 2011.

Sarah Barnes, head of the department, said the appointment

is a good one for customers. She said: “The residential property sector remains busy and it is positive news for our clients that we have been able to strengthen the team in this way.”

Meanwhile, technical expert Andrew Newman has joined the IT support team as IT developer. He joins to focus on case management, online services and management information.

Chorley: 10-12 St Thomas’s Road, Chorley, PR7 1HR DX 18412 Chorley Tel: 0845 260 2111 Fax: 01257 260 096 Email: Chorley@napthens.co.uk

www.napthens.co.uk Napthens LLP, registered office: 7 Winckley Square, Preston, Lancashire PR1 3JD. Napthens LLP is a limited liability partnership registered in England and Wales: OC325775. The term “Partner” indicates a member of Napthens LLP who is not in partnership for the purpose of the Partnership Act 1890.

A list of members is available from our registered office.

If you do not wish to receive future copies of in:brief, or wish to receive it by email, please contact Marketing@napthens.co.uk or 01772 904 397.

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