STAFFMATTERSMinimisingriskINSURANCETheperfectstorm?INWARDINVESTMENTCollaboration’swhatsyouneedMAY2014EASTMIDLANDSLEADINGBUSINESSE-MAGwww.blmgroup.co.ukMAY2014WWW.EASTMIDLANDSBUSINESSLINK.CO.UKHS2Ontherighttrack?HS2Ontherighttrack?EDITOR’SNOTESwww.eastmidlandsbusinesslink.co.ukEastMidlandsBusinessLink3OverthelastmonthI'vebeenspeakingtoalotofpeoplethroughouttheEastMidlandsbusinesscommunityaboutthethornyissueoffunding.Therehavebeensomeeye-openingconversations...Thereremains,itseems,averydefinitedividebetweenthehavesandthehave-nots.Somebusinessownersfeelthebanksareinhuman,technocraticanddistant-whilst,forothers,they'vebecomeopen,welcomingand,tousethatnowalmostmeaninglessphrase,openforbusiness.There'snodoubtthatthebankshavetakenabreakfromthenavel-gazingofthe2008-2012years,whentobeabankermeantthatyouweren'twelcomeatparties.There'salsonoquestionthattoborrowmoneyfromabanknowtakesmorethanasmartsuit,asmileandbuyingyourlocalbranchmanageracoupleofpintsatlunchtime.Forabusinesstosecurethefundsitneedstogrownowisamuchmorestrictprocess.Banksaremuchmoreriskaverse,andthisissomething,thankfully,eventhosewhocontinuetohavedifficultiesinsourcingcashthingsisofficiallyAGoodThing.TheRegionalGrowthFund,greetedwithashrugwhenitwasannouncedacoupleofyearsago,hasgainedinpopularity,anditisnowthecommonconsensusthatithasfilledthegapleftbytraditionalbankfunding.ThesuccessoftheDerbyEnterpriseGrowthFundamplyillustratesthis.Addintothismixpeer-to-peerlendingandcrowdfundingandyoumightbeforgivenforthinkingthatbusinessesnowhavemorewaysthanevertoaccessthefundstheyneedtogrow.Butisthatreallyhappening?We'dbedelightedtohearyourexperiencesoftryingtoaccesscash.WehopeyourenjoytheMayissueofouronlinemagazine.Untilnextmonth...SamMetcalfEditorShowmethemoneyContents10284EastMidlandsBusinessLinkwww.eastmidlandsbusinesslink.co.ukMay2014LatestNews6ThelatestnewsfromtheregionCommercialPropertyNews8AllthelatestfromthepropertysectorManufacturingNews10NewsandviewsfromaroundtheEastMidlandsAppointments12Who’smovingwhereDeals14ThelatestnewsfromthedealmakersaroundtheregionFastest4016WetakealookattheEastMidlandsBusinessLink’sAnnualAwardsShow-Fastest40Awards.HS218TherecentreportfromSirDavidHiggins,ChairmanofHS2confirmedthedeliverabilityoftheproject,butwillsuccessivegovernmentslisten?And,moreimportantly,isbusinessbehindthescheme?TheBigInterview21SamMetcalfspeakstoIanHarrison,UKTIStaffMatters22Importantnewemploymentlawchangeswereintroducedwitheffectof6thApril2014,warnsAngelaShawofNottinghambasedLanshawsSolicitors.TheBigInterview24SamMetcalfspeakstoSimonGray,InvestinNottinghamRoundTable25LookingforawayinFunding28TheBudgetandgoodnewsforexporters•AlliedIrishBank(GB)TheBigInterview30SammetcalftalkstoBjornJones,BlusourceOfficemarket31SpeculativeofficedevelopmentsarebeingconsideredagainintheEastMidlands,pointingtoastrengtheningofthemarketacrosstheregion.InwardInvestment34ThesuitedpropertypeoplehavelongsinceleftthetownofCannesanditistimeforUKbusinessestocountthecostoftheirfirmsattendingMIPIM,theworld’slargestpropertyconference.Soisitvalueformoney?Finance36CharteredaccountantCarlElsbyofElsby&Colooksattheimplicationsofthechangestooverdrawndirectors’loanaccounts.AutoLink40Wemaynotgettoomanyopportunitiestoputtheroofdowninthiscountrybutasanationofcarlovers,whentheweatherdoessmilefavourably,there’snothingwelovemoreOutofOffice38AlltheleisuresectornewsfromthelastmonthDressDownFriday46Adifferentlookatofficelife30EditorSamMetcalfs.metcalf@blmgroup.co.ukAdvertisingLisaMucklel.muckle@blmgroup.co.ukAccounts&SubscriptionsAngelaSharman,DawnCookaccounts@blmgroup.co.ukTel:(01472)310301Fax:(01472)310311Design&ProductionGaryJorgensen,MarkCasson,RachelGreenstudio@blmgroup.co.ukTel:(01472)310304Fax:(01472)310314E-Mail:eastmidlands@blmgroup.co.ukPublisherHaychartLtd,t/aBusinessLinkMagazineGroup,ArmstrongHouse,ArmstrongStreet,Grimsby,N.E.Lincs.,DN312QE.Allrightsreserved.Nopartofthispublicationmaybereproduced,transmitted,photocopied,recordedorotherwisewithoutexpresspermissionofthecopyrightholder,forwhichapplicationshouldbeaddressedfirsttothepublisher.Whileeveryreasonablecareistaken,neitherthepublishernoritsparticipatingagentsacceptliabilityforlossordamagetoprints,colourtransparencies,negativesorothermaterialofwhatevernaturesubmittedtothispublication.Theviewsexpressedinthispublicationarenotnecessarilytheviewsofthoseheldbythepublisher.@BLMEastMidlandsBLMEastMidlandswww.eastmidlandsbusinesslink.co.ukEastMidlandsBusinessLink5NEWSEastMidlandsBusinessLinkwww.eastmidlandsbusinesslink.co.uk6JobslostaspoultrysupplierslipsintoadministrationALoughborough-basedpoultrysupplierwhichhasbeentradingfor30yearshasbeenplacedintoadministration,withthelossof26jobs.CharnwoodFayre,apoultererservingretailandwholesalecustomers,wasplacedintoadministrationbyPKFCooperParryonlastweek,afterlosingcontractsthatmadeupaquarterofitsturnover.TyroneCourtman,restructuringspecialistandpartneratPKFCooperParrysaid:“WewereappointedjustoveraweekagotoactasadministratorsforCharnwoodFayre.Thecompanywasalongstandingwholesalerofchickenproducesupplyinglocalauthorities,schoolsandhospitals.TheownerIanRogersonstruggledonwiththebusinessinveryhardeconomictimesandeventuallyitwasnolongerviable.Despitemakinghisbestattemptstosavethebusinesshecouldnotpreventthelosses–thebusinesslostabout25percentofitsturnoverlastsummerwhenitlostcontractsinCambridgeanditneverrecovered.“Welookedforabuyerbutunfortunatelytherewasnotoneforthcoming.Stepshavebeenmadetoceasetradingandregrettably26employeeshavebeenmaderedundant.WehavebeenonhandtosupportCharnwoodFayrethroughoutthisincrediblydifficulttimeandwewillcontinuetodosothroughoutthisprocess.”EBSrevealsrevenuehikeNottinghamfirmEBSAccountantshaspostedatwentypercentgrowthinrevenuesforthelast12months,andhashailedareturnofconfidenceandoptimismamongEastMidlandsbusinesses.“Keepingmomentumwithfresh,newideasforclientsandtheirtaxandfinancialplanninghasbeenatoppriorityforthefirmsinceitbegan,”saidJillEvenden,managingdirectorofEBS.“Wehaveaclose,committedandexperiencedteam,manyofwhomhavebeenwiththefirmformanyyears.Workingcloselywithallourclientsandgettingundertheskinoftheirbusinessisattheheartofeverythingwedo,especiallyourclientservice.“Therecessionhasbeenatoughperiod,takingmanybysurpriseandforcingthemostagiletoregroupquickly.However,thisyearbeganwiththereturnofariseinconfidenceandoptimismforgrowthandsalesamongstUKandNottinghambusinesses,andthesignsaretherethatthisishappening.“ItisrewardingthatEBShasweatheredthestorm,butparticularlythatthefirmhasretainedsomanyofitsclientsandisrecordingsubstantialgrowthoftwentypercentinthisour21styear.”GlentworthSecuritydirectorsplanphoenixcompanyWorksop-basedGlentworthSecurity,whichprovidedsecurityservicesforprivatesectorbusinessesandPrimaryCareTrusts,hasenteredadministrationandcalledinDeanNelsonatSmithCooper.Glentworthwasformedin1992,andowed£341,152whenitlastfileditsaccountson30thSeptember2013.JohnDuttonandRichardWebsterwerenamedasdirectorswhenthecompanywentintoadministration.ThepairnowsaytheywanttobuythebusinessandassetsofGlentworththroughacompanytheyhavesetupcalledRWDJ-andchangethenameofthatcompanytoGlentworthSecurity.CreditorshadpetitionedtohaveGlentworthwoundupinNovember2011,butthiswasdismissedbytheHighCourt.SourceBiosciencelaunchesStatesideSourceBioScience,theNottingham-headquartedlaboratoryservicesandproductsbusiness,willtoday(1stApril)launchitsUSbusinessoperatingoutoffacilitiesinLosAngelesandAtlanta.BothUSfacilitieswillprovidepharmaandbiopharmastabilitystorageservices,allfullycompliantwiththehighestregulatorystandards,andtheLosAngelesfacilitywillprovideDrugEnforcementAdministrationcompliantstorage.DrNickAsh,CEOatSourceBioScience,said:"WearedelightedtoannouncethelaunchofourproductsandservicesportfoliointotheUSmarket."Withourworld-leadingsequencingcapabilities,enhancedproductportfolioandbiostoragefacilitiesweknowwecanmakeasignificantcontributiontolifescienceresearchinCaliforniaandacrosstheUSfromourfacilitiesinLosAngelesandAtlanta."NEWSwww.eastmidlandsbusinesslink.co.ukEastMidlandsBusinessLink7BreedonAggregatesforcedintoplantsalesTheCompetition&MarketsAuthority(CMA)hastoldDerbyshire-basedBreedonAggregatesthatitwillhavetoselltwoplantsifitsacquisitionofAggregateIndustries(AI)istoberatified.TheCMAhastoldBreedonthatishastodisposeofofaready-mixedconcreteplantinthePeterheadareaandanasphaltplantintheAberdeenarea,andtogiveundertakingsinrespectofitsasphaltplantsintheInvernessarea.AstatementfromBreedonread:"ThecompanywillnowworkwiththeCMAtofinalisethetermsofthesedivestmentsandundertakingswithin12weeks.BreedonhaseveryintentionofreachingagreementwiththeCMAasquicklyaspossible,inorderthatitcanexpeditethesaleoftheassetsconcernedandproceedwiththefullintegrationoftheformerAIbusinesses."BreedoncompletedtheacquisitionofAIinApril2013,whichincluded11aggregatequarries,4asphaltplants,9RMXplantsand2concreteblockfactories,locatedat18sitesinnorthScotland.PriortotheacquisitionBreedonwasthelargestsupplieroftheseproductsinnorth-eastScotland.Initsfinalreport,theCMAstatesthatBreedonandAggregateIndustrieswerepreviouslycompetitorsformanyoftheseproductsacrossnorth-eastScotlandandthatasphaltcustomersinAberdeenandInverness,aswellasRMXcustomersinPeterhead,couldfacehigherpricesduetothelossofcompetitionandlackofalternativesuppliers.PXtechenjoysbumperyearofgrowthDerby-basedPXtech,thebusinessintelligencesolutionsspecialist,hasrevealed40percentyear-on-yeargrowthasiteyesaglobalexpansionplan.Fortheyearending31stDecember2013,PXtechgrewitsrevenuefrom£2.3mto£3.1m,anoverallincreaseof41percent.Thecompanyalsotookonfivenewdevelopersaswellasadditionstoboththeengineeringandsalesteams.RichardDorf,PXtech’smanagingdirector,said:“We’vehadanamazingyear,whichistestamenttotheinvestmentswe’vemadeindevelopingthebusinessandgrowingourraftofinternationalclients.Wenowhaveapresenceinover50countriesacrosstheglobeandthefigureisontherise.WelcomingUniwellandOxfamonboardlastyearwasastrongboostforthebusinessandwe’relookingforwardtofurtherrealisingourambitionsin2014.”AblemareandBondentersadministrationSome23jobsacrosstheEastMidlandsareatriskafterithasemergedthatMikeJervis,PeterDickens,TobyUnderwoodandStuartMaddisonofPwChavebeenappointedasjointadministratorsofAlbemarle&BondHoldings,Albemarle&BondJewellers&PawnbrokersandHerbertBrown&SonwhichtradeasAlbemarleBondandHerbertBrown.ThegroupisthesecondlargestpawnbrokerintheUK,with183branchesandalmost900staff,serving140,000customers.Itprovidesawiderangeofservicesforcustomerslookingtoaccesscash,includingpawnbroking,goldbuying,chequecashingandunsecuredlending.Italsoprovidesforeignexchangeservicesandactsasajewelleryretailer.Asaresultofthedeclineingoldprices,40ofthegroup’spop-upbrancheswereclosedin2013.Againstthisbackdrop,effortstoturnaroundthebusinesshavesofarprovedunsuccessful,whichhasledtothecompanyfilingforadministration.Jervis,jointadministratorandpartneratPwC,said:“Thegroupexpandeditsbranchportfoliointheperiodtoearly2013andendedupwithtoomanyunderperformingoutlets.Itthenexploredarightsissuetoraisefunds,beforeattemptingasolventsalesprocess.Together,theseeffortslastedmorethansixmonths.Despitethishistorymanydifferentpartsofthegroup,andlargeswathesofitsshops,remainprofitable.“Ourpriorityistokeepallpledgeditemssafeandavailableforredemptionasnormal.Weplantosellallorpartofthebusinesstoprotectasmanyjobsaspossibleandwehavealreadypaid,orwillbepayingallstaff-includingaccruedbonuses-asnormalinMarch.Also,alllandlordshavebeenpaid.However,someredundanciesmaybenecessarydependingontheoutcomeofeffortstosellthebusiness.Everybranchwillinitiallyremainopenassalediscussionsprogress.Thisalsoenablescustomerstocontinuetoredeemtheirgoodsasnormalastheypayofftheirloans.“ThegroupandPwCaredoingallthattheycantosupportemployeesthroughthisdifficulttimeandwillworkwithgovernmentagenciesinordertosupportanyoneaffectedbypotentialredundancies."COMMERCIALPROPERTYEastMidlandsBusinessLinkwww.eastmidlandsbusinesslink.co.uk8InnesEnglandtiesupretaildealsinBulwellRetailersCarpets4LessandScrewfixhavebothtakenspaceinBulwell,Nottingham,followingdealsbycommercialpropertyconsultantsInnesEnglandandLambertSmithHampton.ThedealswerehandledbyheadofretailagencyatInnesEngland,BenTaylor.Hesaid:“Screwfixalreadyhasapresenceinthecity,withstoresinGiltbrookandQueensDrive,buttheirexpansionplansmeantaneedarosefornewpremises.“Theyareundoubtedlyoneofthebestknownbrandsintheindustry.AsthebiggesttradecounteroperatorintheUK,thisdealisafurthersignofanimprovingeconomy,giventheyprincipallysupplybuildersandtradesmen.“SitedonabusymainroadinabustlingpartofthecityneartoSpringfieldRetailPark,thelocationoffersconsiderableadvantagesforthesetwobusinesses.“Screwfixhascommittedtoatenyearleaseatthesite,whichisillustrativeoftheincreaseddemandforthissortofunit.Wehaveseenanincreasingnumberoffirmslookingtoexpandandroadsideunitssuchasthesedelivereasyaccessandvisibilitytocustomers.”NMCwinsBarnsleycontractNottingham-basedcivilengineeringandbuildingcontractor,NorthMidlandConstructionPLC(NMC),hasbeenawardeda£3.6mcontracttoredeveloppartsofBarnsleytowncentre.TheprojectwillseeNMCcarryingouthighwaysurfacingandpavingworkstoalargeareaofBarnsleytowncentre,inadditiontodrainageworksandtheinstallationofnewtrafficsignals.SomeofthefootwayswillbereplacedwithnewYorkstoneandgranitepavingandnewkerbingwillalsobeinstalled.Theschemewillincludetheinstallationofnewstreetfurnitureandsignstoo,aswellasimprovingexistingroad-crossingfacilities.“WearedelightedtohavesecuredthispivotalprojecttoenhancesomeoftheprincipalshoppingstreetsintheheartofBarnsleytowncentre,”saidGeoffPoyzer,managingdirectorofNorthMidland’shighways&utilitiesdivision.“TheprojectusestheveryhighestqualitymaterialsandwilltransformBarnsleyintooneofthemostattractivedestinationsinthenorth.Wewouldencouragedialoguewithanystakeholderswhowishtoaskusabouttheproject,andhowweplantodeliveritoverthecomingmonths.”WorkwillbegininMay,withtheprojectsettobecompletedinApril2015.HarveyJonestapsintotheExchangeFHPPropertyConsultants,actingonbehalfofprivateclients,hassecuredthelettingof20-22TheExchange,Nottingham,theformerCastleGalleriestoHarveyJonesKitchensonalongtermlease.HarveyJonesKitchenshave30showroomsnationwideandhavebeenlookingforastoreinNottinghamforcircatwoyears,saysFrankieLabbatteofFHP.Labbateadded:“WearedelightedtohaveattractedsuchauniqueretailerfornotonlyTheExchangebutNottinghamasawhole.IhavenodoubtthattheywillbeasuccessinsuchanestablishedlocationtheywillbesustainableandcomplementtheoccupiersbothinTheExchangeandnearbyBridlesmithWalk."IhavebeentryingtofindsuitablepremisesforHarveyJonesforsometimeandwhen20-22TheExchangebecameavailable,therewasnohesitationfromtheminsecuringthespace."COMMERCIALPROPERTYwww.eastmidlandsbusinesslink.co.ukEastMidlandsBusinessLink9InnesEnglandsourcesnewofficeforHPThe13,000sqftformerDerbyofficeofPKFCooperParryhasbeenlettocomputergiantHPinadealbrokeredbyInnesEngland.InnesEnglandactedforPKFCooperParryinitsforthcomingmovetoitsnewofficeinCastleDoningtonwhichcomesfollowingtheannouncementthatitwillmergeitsthreeregionaloffices–andnegotiatedthesurrenderingoftheleaseholdinterestatCentroPlace.RobertHartleyofInnesEnglandalsoarrangedthere-lettingofthePrideParkofficestoHP,whichwasrepresentedbyCBRE,onaten-yearlease.Hartleysaid:“Wearedelightedtohavebeenabletosecurethesurrenderandre-lettingofPKFCooperParry’sofficesinDerbytoHPsoquickly.PKFCooperParry’sofficesinLeicesterandNottinghamarenowonthemarketandwehavealreadyreceivedinterest,includinganofferontheformer.”AshleyHancoxofCBRE,said:“HPhashadabaseinthecityformorethan20years,andremaininginDerbywashugelyimportanttothemintheirrelocationplans.Theywereverykeentotakeonavisiblelocation.ThepremisesatCentroPlaceareperfect.“BetweenourselvesandInnesEngland,wewereabletosecureafavourabledealforbothpartieswithouttheneedtogotomarket,whichhasallowedustomovequicklyinsigningthedealmeaningthatHPwillverysoonbeabletobeginthereconfigurationworksreadytohousethestaffthatwillbebasedthere.”JeremyBowler,chairmanatPKFCooperParry,said:“Weareverypleasedthatourformersiteisnowmakingwayforsuchahighprofilefirm.AlthoughwearevacatingourDerbyofficewestillremaincommittedtotheregionandsowishHewlett-Packardallthebestintheirnewbase.”Tescosettocreate20newjobsinNottinghamTescoistocreate20jobsinNottinghamaftersigningadealtoopenanewstoreinNottinghamat19-21UpperParliamentStreetinadealsecuredbyAlanPearson,directorofFHPPropertyConsultantsonbehalfofSWIP,nowpartofAberdeenAssetManagement.Tescohassigneda20yearleaseintheformerCaféLatinopremisesat19-21UpperParliamentStreet,Nottingham.Thestorehasbeenextendedtothereartoprovideagroundfloorof2,841sqftandbasementancillaryof1,301sqft.TescohasotherExpressstoresinthecityandaTescoMetrostorewithintheIntuVictoriaCentre.Pearsonsaid:"WearedelightedtosecureTescoExpressforourclients,SWIPRealEstate,providinganexcellentcovenantandanidealfitgiventheproperty’sproximitytothecity’sprinciplebusstopsandcoreretailandleisureoffering”.CPMGchosenforGraceAcademyinBradford–useGraceAcademypicNottingham-basedfirmCPMGhavebeenselectedtodesignabrandnewsecondaryschoolonFenbyAvenueinBradford.SettobenamedtheGraceAcademy,theprojectispartofa£12mcontractawardedtoWatesConstruction,whichwillworkwithCPMGtodelivera7,700sqm,sevenformentryfacilitywithacapacityfor1,050studentsaged11to16years.Alongsidethemainschool,CPMGwilldesignanindoorsportsfacilitywithafour-courtmultipurposehallthatwillalsobeavailableforcommunityuseonceconstructed.“CPMGisdelightedtocontinueanexcellentworkingrelationshipwithWatesinthedeliveryofafantasticnewbuildacademyfortheCityofBradfordMetropolitanDistrictCouncil,”saidDavidShaw,associatewithCPMG.“TheAdaptsolutionhasenabledthedesignteamtomeetanextremelytightprogrammewithawellconsideredandcosteffectiveschoolsolutionthathasbeentailoredtomeetthenewAcademy'srequirementsforeducationdelivery.”TheprojectisduetobegininAprilthisyear,withcompletionscheduledforsummer2015.Next 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