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Top story
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Manchester’s LSB is latest banking casualty
London Scottish Bank (LSB), the troubled Manchester finance house, has this morning been placed into administration after failing to find a buyer for the group. Talk of a takeover of all or part of the group had been rumbling on for months and the Financial Services Authority stepped in yesterday to stop the company accepting deposits because there was no certainty an offer would be made or that LSB’s shortfall in regulatory capital could be remedied in the short to medium term. As a result, the bank was unable to renew maturing deposits and called in administrators from Ernst & Young. The Chancellor has put in place arrangements to ensure that all eligible retail depositors will receive their money in full, including those with balances above the £50,000 limit. In August LSB sold London Scottish Invoice Finance to Hitachi Capital (UK).
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Deals
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A caring deal
Husband and wife team Peter and Claire McGailey have acquired Lyngate Care Home in Bolton in a £1.4m deal funded by The Royal Bank of Scotland. The facility has been run as a residential care home for the last 25 years and can accommodate up to 41 residents at any one time. The duo has previously owned and managed the Majestic Care Home in Blackpool for a number of years and Peter McGailey also runs Mediply, a wholesale distributor of medical and healthcare products.
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Business
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Sales down at Strategic
Like-for-like sales at Manchester-based Strategic Retail, the national retailer of soft furnishings, furniture and DIY products, have slid by 6 per cent in the six months to 30 August as the group faced up to tough conditions in the retail sector. The company was formed in April 2003 as a cash shell to acquire companies or businesses in the retail sector that are seeking admission to AIM. In a statement to the market, the company said: “The board of directors is taking all appropriate measures to deal with the current challenging economic environment and is maintaining a regular dialogue with the company’s bankers.”
Chamber members say “no” to TIF
Greater Manchester Chamber members seem to be against the plans for a congestion charge. In a survey of its membership of 5,400 businesses, 826 members responded saying the proposed congestion charge was not an acceptable trade off for the investment in public transport and predicted reduction in levels of congestion. Sixty-three per cent are opposed to congestion charging in principle. Angie Robinson, chief executive of Greater Manchester Chamber, said: “We had hoped to have a much higher response from members, as this is such a hot topic. What is very clear is that for many businesses congestion is a problem and they believe it will get worse. Also, most businesses believe our public transport is poor and half of the respondents view the proposed transport improvements positively. But there is very significant opposition towards the congestion charge proposal.”
Losses for Reflec
Cheshire-based holding company Reflec, which operates subsidiaries in consultancy, media and industrial processing, has reported a pre-tax loss of £312,254 for the six months to 31 August against a profit of £101,166 a year earlier. The losses relate to security services subsidiary Perseus and reflective garment producer Reflec USA. The directors are seeking to push forward with a sale of Perseus but recognise it may be difficult to achieve a realistic price for the business.
Victrex admits slowdown
Lancashire-based Victrex, manufacturer of high-performance materials, has this morning issued a trading update for October and November, earlier than planned given the deterioration in industry conditions in recent weeks. Sales volume remained strong in October at 218 tonnes, in line with average run rates achieved for the year ended 30 September. Sales volume continued at this level in the early part of November. However, the company said it has since experienced a slowdown in orders as customers have responded to the deteriorating global economic climate. A statement said: “Even though the current economic climate is clearly impacting sales in the short term, the underlying growth drivers remain in place across our end use markets and our development pipeline of potential new applications is strong. We will continue to generate new business in 2009 as we penetrate existing markets with new applications, pioneer innovative applications in new markets, and expand our geographic presence.”
Deep and long recession awaits
Richard Jeffrey, chief economist and strategist and chief investment officer at Cazenove Capital Management was in Manchester last week to remind everyone how tough things are. He addressed a private dinner at Addleshaw Goddard on Thursday night and an investment conference on Friday at the Midland Hotel. Afterwards, he told Insider the government have only themselves to blame for the mess. “This is going to be a long and painful recession,” he said.
E-tailers to get Christmas boost
Online sales are expected to increase by 10 per cent this year as more consumers use the internet for their gift and food shopping, according to research from the business advisory firm Deloitte. Total online spend is estimated to reach £4.7bn this year, from £4.2bn in 2007. But Anish Patel, director in retail consulting at Deloitte, warned: “Although online retailers are well positioned to make the best of a potentially lean Christmas, their online strategies need to be sophisticated and well executed, focusing on better customer insight and innovative marketing.”
Cumbria limbers up
Cumbria is preparing to make the most of the 2012 Olympic Games after a visit to Kendal by Charles Allen, chairman of the London 2012 Nations and Regions Group and member of the London Organising Committee of the Olympic Games board. Allen met with Andy Worthington, chairman of the North West steering group for the Games on Friday to highlight the opportunities that the 2012 Games will bring to the county. Cumbria Vision and Northwest Business Network are staging a free seminar and workshop at Rheged, Penrith, on 9 December from 9.30am to 1pm. The event will provide important information on how Cumbrian businesses can compete for business opportunities and other public sector contracts related to the Games.
Action demanded on ten-day payment pledge
A North West business group says public sector bodies should follow the government’s pledge to pay small firms within ten days rather than 30 days. Private Sector Partners (PSP) North West, represents more than 100,000 firms regionally. Its leader, businessman Len Collinson, said he is determined to see the ten-day pledge adopted across the public sector. “The ten-day pledge is a welcome and vital measure for small firms wrestling with the economic crisis,” said Collinson. “However, not all public bodies are signed up to it. Backsliding and sweeping the pledge under the carpet in this climate is not acceptable. There has been a culture of late payment in parts of the public sector historically. PSP will be watching and listening closely to see how quickly publicly funded bodies are paying their small business suppliers.”
Pannone scoops award
Manchester law firm Pannone has been named as regional law firm of the year at the British Legal Awards in London. Managing partner Steven Grant said: “We are delighted with this award. Any law firm is only as good as its people and we have the very best people throughout Pannone.”
One up for Moore and Smalley
Lancashire accountancy firm Moore and Smalley has scooped the top award at this year’s 2008 North West Society of Chartered Accountants annual accountancy and business awards. It won accountancy firm of the year at the event at Ribby Hall, where over 14 prizes were up for grabs, with Moore and Smalley beating of regional rivals Tenon and Pierce to the award.
Hills to lead fraud at EY
Fraud partner Kevin Hills has been appointed to head Ernst & Young’s Forensic Investigation team in Manchester. Office senior partner Simon Allport said: “In the current economic climate, clients are calling out for risk advice to protect themselves. Kevin is the third partner to be appointed in Manchester in the last 11 months with two more in the pipeline.” His remit involves leading fraud investigations at quoted companies, large private businesses and public sector organisations across the north and Scotland.
PFI waste project nears
Greater Manchester Waste Disposal Authority (GMWDA) and preferred bidder Viridor/Laing have committed to achieving financial close on a 25-year PFI waste services contract for the city region. Councillor Swannick, chairman of the GMWDA, said: “We are ready to sign the contract as soon as the banks have completed their processes of approval.”
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Property
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Festive cheer at Heywood
Three tenants have signed up to take extra space at SEGRO’s Heywood Distribution Park in Rochdale to help them cope with the Christmas rush. JD Sports has added an extra 35,000 sq ft to its existing space. Parcelforce has occupied B2, 40,000 sq ft of extra space, and Royal Mail has taken B4 (Bays 5&6), which equates to 30,000 sq ft. The deals come shortly after lettings to Linpac Allibert and a public safety communications company.
Squirrel fill store
Shepval, the joint venture between Shepherd Development Company and Valad Property Group, has announced the sale of its final unit at ISIS on Agecroft Commerce Park in Manchester. Squirrel Storage has purchased the 69,774 sq ft speculatively built Zeus warehouse in a deal worth over £4m. Squirrel will use the unit in tandem with its existing 50,000 sq ft facility at ISIS. The transaction follows deals with Bunzl and JJ Foods and completes the development.
How to plan in Macclesfield
HOW Planning has submitted four planning applications on behalf of two clients for a regeneration scheme in the Park Green area of Macclesfield. Acting on behalf of Infinity Number Two, HOW has made three applications for the conversion of the Grade II-listed Georgian Mill and the replacement of the Georgian Mill extension and neighbouring Waterside Mill for office developments. An application has also been made on behalf of PH Property Holdings for a mixed-use development combining office and residential accommodation. Park Green Mill will be demolished and replaced with a three-storey building with 31 apartments and 227 sq m of office space.
CBRE completes Axis
Following Property Alliance Group’s joint venture agreement with Development Securities to develop AXIS office tower in Manchester city centre, CBRE has been appointed to market the scheme, alongside WHR Property Consultants and P3 Property Consultants. CBRE will market the 75,000 sq ft, 18-storey office tower adjacent to Manchester Central.
JJB pulls out of four leases
Troubled retailer JJB has handed over the leases on four of its stores – in Cardiff Bay, Salisbury, Worthing and York Davygate – to Sportsdirect.com Retail for £3.4m as it seeks to raise funds to reduce its level of borrowings. For the financial year ended 27 January the stores generated pre-tax profit of £1.1m and at 27 July had gross assets of £300,000.
First through the door for Weightmans
Design and fit-out firm Claremont Group has completed Weightmans’ new Manchester office at Three Piccadilly Place. The contract included the design, fit-out, furniture and AV for a new 19,000 sq ft office, which is located on the first floor of the 300,000 sq ft mixed-use development. Weightmans is the first client to move into the new building.
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Events
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Dates for your diary this week
The CBI annual lunch and awards on Friday provides an opportunity for the corporate heavyweights to swap stories about how they are bearing up. Jamie Mitchell, UK managing director at Innocent Drinks is the guest speaker. Ford Campbell Corporate Finance and Ford Campbell (the accountants) are splitting up. Andy Campbell’s lot (the accountants) had a pleasant party at the Museum of Science and Industry last week. Tony Ford’s crew (corporate finance) have theirs this Thursday. A special coloured wristband will gain you entry to the Pitcher and Piano. Pinsent Masons is hosting a party at Harvey Nichols on Tuesday, then PricewaterhouseCoppers is there the night after. And on Thursday thirsty corporate financiers will be fed and watered at the First Thursday event, with BTG McInnes, Hammonds and The Royal Bank of Scotland picking up the bar tab alongside Aberdeen Asset Managers Private Equity, downstairs at Grinch from 5.30pm.
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