PROPERTY The SME challengeLEGALThe States we're inMARKETING & PRSomething to shoutaboutwww.blmgroup.co.ukWWW.EASTMIDLANDSBUSINESSLINK.CO.UKMAY 2015EAST MIDLANDS LEADING BUSINESS E-MAGELECTION2015The case forbusinessEDITOR’S NOTESwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link 3The General Election of 2015 will go down as one of the strangest ever fought. More thanhalf of the last Parliament has been shrouded by deep recession, and there's a new kid of theblock in Nigel Farage. The three main parties seem pretty bereft of ideas, and are playing avery defensive formation. The big themes are very thin on the ground.One thing is clear from talking to business owners around the East Midlands - no-onewants the applecart upsetting just yet. Growth has been steady over the last 12 months,companies are hiring again, and finance is beginning to trickle through to where it's needed.In many ways, the last thing the economy needs is a General Election.As we go to press there is just one week left of campaigning. In reality, 8th May looks likewhen the real jostling for power will begin. Will Labour hop into bed with the SNP? Can NickClegg hold his nose for another five years and form a lash up with the Tories (indeed, can hehold his seat?) And what power will UKIP hold in its hands? It might not be what businesses in our region want right now, but it's going to make for afascinating few weeks for Westminster watchers. With that in mind, in this issue we'rededicating several pages to what business leaders in our region think will happen after theElection, and how it will affect the local economy. It'll be very interesting to look back at thisissue in a couple of year's time and see the outcome of any new government and whether itmet our mini-manifesto. See you on the other side...Sam MetcalfEditorThe unwantedElection ContentsMay 2015Latest News 6The latest news from the regionManufacturing News 8News and views from around the East MidlandsFinance News10The latest news from the dealmakers around the regionAppointments14Who’s moving where Property News17All the latest from the property sectorCommercial Property 19The bricks 2015 Awards Evening• SMEs face property challenges in 2015Election 201524The upcoming General Election is going to be a hard oneto call, with the two main parties going into the final weekof campaigning neck and neck. But what will the Electionmean for local businesses?• The Employees’ ManifestoTax28One of the headline grabbing announcements in the recentBudget, was the end of the tax return. Certainly you mightbe forgiven for thinking this might be the case, but thereality is that it probably will not be, says EricaManderfield, tax director at Streets Chartered Accountants. Immingration 30Many readers will know Thalej Vasishta as the founder andowner of the successful UK immigration law firm, ParagonLaw. If you are a client of his you will either be anorganisation or an entrepreneur from overseas that has setup in the UK or you are a UK company that has a need toemploy skilled people from outside of the EEA. Round Table 31Is marketing and PR essential for every business, or is it acost that is hard to quantify? Our latest round table,sponsored by Rock Kitchen Harris, discussed the issues.Coaching 34Failure has to be an option if we truly want to letinnovative, out of the box creative thinkers flourish, saysStuart Ross of Global High GrowthCharity 36Over the last few years charities have been handed aformidable task of coping with Government austeritymeasures and reduced funding opportunities. On top ofthis, charities that operate final salary pension schemes areset for dire triannual valuation results as bond yieldsreduced significantly in 2014, in some cases adding morethan £1 million onto pension scheme balance sheets.AutoLink 38As motor shows go, the East Midlands Business Link teamare great fans – after all, what better way than to get upclose and figure out what’s on its way to our showrooms? • The all-new Range Rover Sport SVRInsolvency 43Voting for Mayhem? by John Harlow, director, HarlowInsolvencyOut of Office44All the leisure sector news from the last month438East Midlands Business Link www.eastmidlandsbusinesslink.co.uk2823EditorSam Metcalfs.metcalf@blmgroup.co.ukAdvertisingLisa Muckle l.muckle@blmgroup.co.ukAccounts & SubscriptionsAngela Sharman, Dawn Cookaccounts@blmgroup.co.ukTel: (01472) 310301 Fax: (01472) 310311Design & ProductionGary Jorgensen, Mark Casson,Rachel Greenstudio@blmgroup.co.ukTel: (01472) 310304Fax: (01472) 310314E-Mail:eastmidlands@blmgroup.co.ukPublisherHaychart Ltd, t/a Business Link Magazine Group,Armstrong House, Armstrong Street, Grimsby, N.E. Lincs., DN31 2QE.All rights reserved. No part of this publicationmay be reproduced, transmitted, photocopied,recorded or otherwise without expresspermission of the copyright holder, for whichapplication should be addressed first to thepublisher. While every reasonable care is taken,neither the publisher nor its participating agentsaccept liability for loss or damage to prints,colour transparencies, negatives or othermaterial of whatever nature submitted to thispublication. The views expressed in thispublication are not necessarily the views of thoseheld by the publisher.@BLMEastMidlandsBLMEastMidlands5www.eastmidlandsbusinesslink.co.uk East MidlandsBusiness Link Cover photo: Shutterstock.com/Duncan AndisonEast Midlands Business Link www.eastmidlandsbusinesslink.co.uk6GENERAL NEWSEast Midlands Business Link www.eastmidlandsbusinesslink.co.uk6Staffline buys welfare towork provider for£34.5mStaffline, the Nottingham-headquarted recruitment andstaffing business, has bought A4e, the company whichprovides welfare to work services for the government for£34.5m.A4e turned over around £140m for the year ending 31stMarch, with profits of £10.2m.Andy Hogarth, chief executive of Staffline said: "We aredelighted to be announcing today the acquisition of A4e.This is an exciting milestone in Staffline's growth,considerably expanding the size and geographic reach ofour employability offering and will result in the combinedbusiness being one of the largest Work Programmeproviders in the UK."The significant strengths of both businesses will beunited and we are confident that our leadingposition will bea strong platform from which to develop our strategy,services and innovation. "We look forward to creating a winning team andbusiness, and delivering significant shareholder value."Andrew Dutton, Group CEO, A4e added: "We are todaystarting a new chapter in the history of A4e. Staffline isexactly the right fit for us: its ambitions, robust financialposition and its people and business values will all supportthe combined business as we grow together and build onour position as a leading Work Programme provider in theUK."A4e is now in the perfect ownership to both develop ourcustomers and support our employer relationships and Iwish the combined business every success in the future."The agreement, which was signed this month, will enableWindForss Energy AB to carry out marketing, sales anddelivery of SHARC technology and associated projectsacross the Nordic region.New dawn for Gray as Hastings moves into EquinoxHastings Direct will be welcoming its new site director, Andrea Gray and 30 new colleagues on the 5th May to its temporary home,Equinox, opposite the city centre bus station.Equinox will be the company’s Leicester base until it moves into its permanent city centre home, details of which are being finalisedand will be communicated in the coming weeks. Hastings is initially creating 40 roles rising to around by the end of 2015.Gary Hoffman, CEO, said: “Welcoming our first colleagues to our new site on the 5th May is an exciting step for us. It puts us firmlyon Leicester’s map and supports the next step in our growth and expansion plans.“Given Andrea’s vast experience as a people leader we expect the Leicester team to grow quickly. The team will fast become part ofour Hastings family, working alongside colleagues in Bexhill and Newmarket to help us maintain our refreshingly straightforwardcustomer service."Gray added: “I’m delighted to be at the beginning of the Hastings Direct story in Leicester. Our team is fully committed to making itone of the best places to work in the Midlands. To deliver our ambitious growth plans we need to attract the best talent for today andtomorrow and recruitment continues apace. To support this we’re working closely with the universities, job centres, and local schoolsand colleges.”Ashley topsEast Midlandswealth league Mike Ashley, the founder of theSports Direct retail empire, is therichest man in the East Midlands,according to The 2015 SundayTimes Rich List, to be publishedthis Sunday, 26th April.Although he remains the richestperson in the region, Ashley is infact its biggest financial loser overthe past 12 months. While hisNewcastle United football businessmade a £19m profit, Ashley, whosefortune derives primarily from theSports Direct sporting goodsempire, has seen his fortune drop by £250m overall during the year. Sports Direct isheadquartered in Shirebrook, Derbyshire. The 50-year-old has a 55% stake in thebusiness which is now valued at £3.7bn, down in value from £4.7bn a year ago. Heonce made £929m in a day through the sale of some of his shareholding in thebusiness when it floated in 2007. Ashley also has stakes in Debenhams, JD Sports,Tesco and MySale and significant property investments. He is still a billionaire threeand a half times over and worth nearly three times more than the next richest personin the East Midlands.Will Adderley and family, in second place in the region, have cemented theirbillionaire status in the past 12 months with a further £80m gain in their overall wealth,carrying the family to £1,280m. Their fortune is derived from the success of Dunelm,which began life with Bill and Jean Adderley’s market stall in 1979 but todayencompasses 137 stores. The Leicester-based curtains-to-cushions business recordeda 17% rise in sales to £180.6m in the first quarter of 2014-15. The company is worth£1.76bn and the family’s stake in it runs to £973m.Tony Langley remains in third place in the East Midlands with a £1,097m fortunewhich has grown by £47m in the past year. He is one of the select band of billionaireswho actually makes things. His company manufactures cement cooling machines,printing presses and dockside cranes. Retford-based Langley Holdings recorded£78.2m profit in 2014 and is worth more than £1bn. Langley, 60, founded the companyin 1976, teaching himself engineering.Two new names join the list of East Midlands billionaires this year. John Bloor, likeTony Langley, is in manufacturing. Bloor rode to the rescue of Triumph motorbikes 32years ago when the company was on its knees, buying the Triumph name from thereceivers. Today it is a massive success story. He bought the name for just £150,000,spent £80m on a new factory and last year the prestige marque sold more than 52,000motorcycles. Bloor, 71, also owns a housebuilding business. Bloor Holdings, theparent company of both the housebuilding and Triumph businesses, made profits of£65m last year and is worth £975m, allowing for the hefty brand value in the Triumphname. Bloor owns it all and with other assets is now worth £1,025m, a huge £275mmore than last year.7www.eastmidlandsbusinesslink.co.uk East Midlands Business Link GENERAL NEWS7Pathway CareServices soldto Acorn Pathway Care Solutions, theEast Midlands children’sresidential care home business,has been sold to Acorn Care andEducation.Based in Nottingham, PathwayCare Solutions currently operates12 homes around Nottingham and Sheffield.It offers medium to long term placements, aftercare, reception and assessment, shared anddomiciliary care within small, three-bedded homes for children who have complex learningdisabilities requiring continuing care, Autism Spectrum Disorders (ACS), severe physicaldisabilities and social and emotional behavioural difficulties.Dr Anib Rehman, managing director at Pathway Care Solutions, said: “Pathway CareSolutions (PCS) looked carefully at the wider independent care and education sector to find anideal partner, whose shared values and focus on meeting the needs of some of our mostvulnerable children and young people very much chimes with what PCS have always beenabout. We also believe that integrating PCS into the wider portfolio of the Acorn Care &Education group will provide a stable foundation for future growth and service diversification.”www.eastmidlandsbusinesslink.co.uk East Midlands Business Link SHARC set to makewaves in Scandinavia Nottingham-based SHARC Energy Systems hassigned a distributor agreement with Stockholm-based WindForss Energy AB, awarding it exclusivemarketing and distribution rights across the Nordicregion.The SHARC sewage heat recovery system wasintroduced to the UK in June 2014. Unique in theUK and Europe, the system generates heating,cooling and hot water production for commercialand residential buildings by extracting the heatfrom wastewater. The first UK installation is nowunderway with further UK projects planned.WindForss Energy AB, owned by WindborneInternational and the Swedish property and energyinvestment company, Forsinvest, designs, installsand manages sustainable energy solutions.Russ Burton, CEO of SHARC Energy Systems,said: “Finding the right partner is key to ourgrowth plans. With our flagship UK installationunderway, and a number of further UK projects inthe pipeline, we were able to pursue the Europeanmarket as the next area to expand into. The Nordicregion is a key strategic market to enable our nextstage of growth. To do this, it was important toidentify a distribution partner with clear synergiesto SHARC to help us to develop and grow ourpresence in Europe.”He continued: “WindForss Energy is a naturalpartner as the SHARC system offers them analternative to or complements their existingground source heating and cooling (GSHC)solutions. Where the available wastewater doesnot cover the entire energy needs of a project, theSHARC solution can be complemented by GSHC.In reciprocation, the SHARC system cancomplement a GSHC system by introducing accessto a further sustainable and cost-effective energyresource.”Nottingham florist set to bloom aftersaleThe owners of Nottingham’s leading retail and wholesale florist have completed a deal tosell the company to APAC Packaging.Wilfrid Whittington, which has been in business for more than 50 years, supplies floristryproducts and equipment, artificial flowers and wedding accessories and has 14 stores acrossthe country.The shareholders have been advised on the sale to Leicester-based APAC Packaging bysolicitors Fraser Brown and accountancy firm UHY Hacker Young.Gavin White, partner and head of the corporate team at Fraser Brown, said: “With helpfrom Graham Green and Peter Abel at Fraser Brown, we were pleased to be able to advisethe shareholders and help them move onto the next chapter in their business lives.”Finance and accounting support was provided by senior partner Phil Oliver and tax partnerSimon Browning at UHY Hacker Young.Oliver said: “We have worked closely with both of the businesses involved, as well as thelegal team at Fraser Brown, to assist and advise the shareholders on this transaction whichwe were delighted to be involved in.”APAC Packaging is an importer and distributor of floristry, wedding, party and horticulturalproducts and has now acquired the entire issued share capital of Wilfrid Whittington.Chris Samples, Brian Perkins and Jason Perkins, three of the selling shareholders at thefloristry firm will continue to work with the business going forward.APAC Packaging was advised by Spearing Waite with a team headed by Jahid Ali.Image Scan makes overseassales hireLoughborough-based X-ray imagingfirm, Image Scan, hashired an internationalsales manager, as itlooks to grow itsoverseas business.Liron Noar will headup the company'ssecurity sales to theEuropean market. Heworked most recentlyas the security divisionmanager of Vidisco.Bill Mawer, chairman and CEO of Image Scan, said: "Lirons' marketknowledge and international experience will enable him to promote ourproducts to a wide range of international markets. We expect him tointroduce many new customers to Image Scan and our technology.Our new and innovative ThreatScan® range ofportable x-ray inspection systems helpsour customers address theincreasing securitychallenges facedby the worldtoday."MANUFACTURING NEWSEast Midlands Business Link www.eastmidlandsbusinesslink.co.uk8Rolls-Royce wins £6bnEmirates orderRolls-Royce has won its largest ever order, worth around £6bn, toprovide Trent 900 engines and TotalCare® service support toEmirates. The engines will power 50 Airbus A380 aircraft that willenter service from 2016.John Rishton, Rolls-Royce's CEO, said: “The success of Emiratesover the last thirty years has been extraordinary; this is in no smallpart thanks to the exceptional leadership of Sir Tim Clark. Rolls-Roycehas been proud to have been part of this success, powering Emiratesaircraft since 1996. We are delighted that Emirates has again placedits trust in our technology, with the biggest order in our history.”Sir Tim Clark, Emirates Airline president, added: “Rolls-Royce is akey partner for Emirates and we have been impressed with itscommitment to continual improvements in the economic andoperational performance of the Trent 900. These improvements havebeen decisive factors in our selection of the product for 50 of ourA380s. Today’s announcement is significant not only because itcements the partnership between Emirates and Rolls-Royce, but alsobecause of the significant economic impact that this will have onaviation manufacturing in the UK and Europe.”Exports hamper manufacturing growthThe recovery in British manufacturing continued in the three months to April, but the pace of growth eased and export orders growth remainedsluggish, according to the latest CBI Quarterly Industrial Trends Survey.The survey of 468 firms reported an easing of growth in total new orders, as expected from January’s quarterly survey, but this still remained wellabove average. Domestic orders rose modestly, whilst exports growth remained unexpectedly sluggish. Meanwhile output growth fell to its lowestsince January 2013, but above the long-run average.Firms have stronger expectations for the three months ahead, with output and orders growth anticipated to firm up and predictions for exportsgrowth at their strongest since July 2014. But the number of firms highlighting orders or sales as a possible constraint to activity rose to its highestlevel since October 2013.Numbers employed continued their record run of growth, albeit rising at the slowest pace in over two years, but are expected to be flat nextquarter.Looking to the year ahead, investment intentions have fallen sharply from strong levels across all categories, though they do remain at or abovetheir long-run averages. Growth in optimism about both the current business situation and export prospects for the year ahead also dropped back.Katja Hall, CBI deputy director-general, said: “It’s encouraging that our manufacturers are seeing - and expect to see - continued growth, with ratesof expansion still above average.“Exports keep dragging at the heels of growth: firms are finding the recent rise in the Pound against the Euro challenging, making them lesscompetitive in Europe, while the unravelling situation in Greece is creating uncertainty.“Among the measures business wants in the first 100 days of a new government, an ambitious, long-term export strategy must be a centralelemenTimberland gears up for staycationmarketTimberland Motorhomes has revealed expansion plans and the launch of a newlydeveloped showroom after securing a funding deal from Barclays.Timberland Motorhomes was established in 1999 and is located at Heath, Chesterfield. Thebusiness has both new and used sales on site together with a service, repair andmaintenance centre. It is an authorised dealer for Motorhome brands Burstner and Hobby butalso produces hand built vehicles bespoke to customer specifications.Kevin Cain, owner of Timberland Motorhomes, said: “With the increasing demand for‘staycation’ holidays we decided the time was right to develop the site and expand theshowroom. We now have not only more space for customers to view their potential newvehicles but also the addition of a servicing bay which will allow us to provide full after salessupport. The funding has also enabled us to relocate our manufacturing facility which hasconsolidated our operations across the group.”Timberland Motorhomes currently employs 10 staff locally in Chesterfield and they expectthis to increase throughout the year. Projected turnover for 2015 is expected to reach inexcess of £6m.Dan Wilson, Barclays relationship director, said: “Like many of our customers, TimberlandMotorhomes decided the time was right for further investment to grow the company and takeadvantage of the ‘staycation’ market. The newly developed site will increase retail capacityand provide their customers with an all-round better experience when choosing their newvehicles.”MANUFACTURING NEWSwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link 9Derby rail consultancy sold for £42.5mEngineering and consulting company Ricardo has bought Lloyd's Register Rail (LR Rail), based in Derby, for £42.5m.LR Rail is LR Rail is an established international rail consultancy and assurance business.For the year ended 30th June 2014, LR Rail posted revenues of £48.1m. It currently has a 12 month order book totalling in excess of £50m. LRRail has a total of 440 rail engineers and specialists located at offices across Europe, Asia and the Middle East.Current LR Rail managing director Paul Seller will take on the role of managing director of the Ricardo Rail business and will report into the CEOof Ricardo.Dave Shemmans, CEO of Ricardo said: "We are delighted to announce today's agreement to acquire Lloyd's Register Rail from Lloyd's RegisterGroup, which on completion will be immediately enhancing to underlying earnings to Ricardo's shareholders."Lloyd's Register Rail has an impressive market reputation and a very similar culture of quality and excellence in engineering to Ricardo. Thecombination of their geography, product offering and independent assurance and consultancy expertise complements our own, and will positionRicardo for the growth in this important sector. We believe that increasing global urbanisation will create a growing demand for assurance,consulting and engineering expertise in rail to drive safety, efficiency and sustainability."With the team from Lloyd's Register Rail, we will be able to provide an expanded range of value-added services to our customers across asignificantly enhanced global footprint. It is a well-established business with long term customer relationships and is a complementary fit to Ricardoin terms of culture, geography, product offering and business model. We look forward to welcoming Lloyd's Register Rail employees to the globalRicardo team and are excited about the prospects for the new Ricardo Rail business."Altran expands intoDerbyAltran, the global engineering consultancy, hasannounced that it will open an office in Derby.Altran's new office will be at the DerwentBusiness Centre.Mike Simms, chief executive officer of AltranUK, said: “The Midlands is a thriving industrialhub, which is of increasing importance for manyof the sectors in which we provide our expertise.We consider positioning ourselves at the centre ofthis activity a key priority and look forward tobeing part of this community.”Denton Clutterbuck, head of aerospace anddefence at Altran UK, added: “The Midlands ishost to companies operating at the cutting edgeof innovation. We have taken an active interest inthe region for some time, notably through ourinvolvement in the MAA (Midlands AerospaceAlliance). We are therefore delighted that the timehas come to realise our goal of opening an officein this area renowned for excellence inengineering. The office will bring us closer tovalued customers based here and provide us witha springboard for growth in the region.”The opening has been welcomed by the localbusiness community. John Forkin, managingdirector of Marketing Derby, said: “It’s great newsthat Altran has selected Derby as their latest basewithin the UK. As one of the world’s leadingengineering consultancies, Derby is an ideallocation for Altran to continue with their UKexpansion and after initially meeting them at lastyear’s Midlands Aerospace Alliance AnnualConference (held at Rolls-Royce), Team Derby hasprovided hands-on support in helping them tolocate in the city.Next >