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Top story
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Bank of England cuts rates to 2 per cent
The Bank of England has cut interest rates by another one percentage point to 2 per cent, the lowest level in more than half a century. There were calls yesterday for an even greater cut, to 1.5 per cent. After today's announcement Graeme Leach, chief economist at the IoD, said: “The MPC decision is bold but necessary. We can expect further rate reductions early in 2009 but then the MPC will have exhausted its interest rate armoury.” Pat Loftus, practice senior partner at Deloitte in the North West, said: “Although it is still a difficult time for many businesses, banks are being subjected to government pressure and are being encouraged to pass on the reductions. That said, I still think we need further interest rate cuts in 2009.”
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Deals
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Co-op sheds stores
The Co-operative Group has entered into a conditional agreement to sell 38 of its stores, including former Somerfield shops, to Morrisons for £223.1m. The deal is conditional on the successful completion of the Manchester-based Co-op’s acquisition of Somerfield, with handover set to take place on a phased basis starting early next year.
The last page for Folio
Hotel operator Folio, which operates the Etrop Grange at Manchester Airport, the Best Western Princess on Portland in Manchester city centre and the Chimney House in Sandbach, has been placed into administration with MCR. The company, which is one of largest privately owner groups of three- and four-star hotels, this year also started developing a 36-room town house hotel in Liverpool. MCR is trading the £70m-turnover business as normal with a view to selling the business and assets as a going concern. MCR partner Paul Clark said: “The group has been in the middle of an expensive and comprehensive refurbishment project and has also suffered from rentals that were fixed at the height of the market. Together with the current economic climate, this has exacerbated cashflow demands.”
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Business
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Give hope a chance, say Insider’s 42s
There were festive messages of hope for the business community last night at Insider’s
final event of 2008 for the 42 under 42 fellowship. Speaking at Hill
Dickinson’s new St Paul’s Square offices in Liverpool, Martyn Best,
director of Paver Smith and a former member of the 42 under 42, said
that his wish for Christmas was for hope and prosperity for business,
professionals and the region, and the ability to overcome negative
perceptions. “We’ve all had a tough year,” he said. “Next year is going
to be equally tough and challenging. It vital that we get communication
right – perception is reality. If you act like you’re doomed, you are
doomed. Let’s face the challenges with hope. Give hope a chance.” Best
was joined by Abi Humayun of Rapport Events, one of this year’s class
of 42, who also wished for better communication between businesses and
their staff and customers. Meanwhile, Hill Dickinson’s Liverpool
partner Glyn Dale-Jones said that his Christmas wish was for "the banks
to get their arses into gear”. The 42 under 42 was sponsored by Grant
Thornton, Hill Dickinson and UBS.
Brian steps down at Optare
Andrew Brian, chief executive of bus and coach builder Optare, has resigned from the AIM-quoted company with immediate effect for personal reasons. The company, which has its production bases in Blackburn, Leeds and Rotherham, is approaching the year end with an order book totalling £57.9m, but hit problems during October and into November when production problems at a key supplier’s factory caused a four-weel outage of an essential material. In a trading update on 24 November Optare said that the lost output would not be recoverable during the current financial year.
Freight operator wins nuclear contract
Carlisle-based Direct Rail Services (DRS) has won a contract worth £1m to deliver building materials to a new radioactive waste depository near Drigg, just south of Sellafield in west Cumbria, via the West Coast Mainline. The 150,000 tonnes of hardstone aggregate needed to fulfil the contract will be supplied by quarry company Bardon Aggregates and transported by DRS during the night. The new radioactive waste depository, known as Vault 9, will be built and operated by LLW Repository and provide 110,000 cubic metres of space to store the waste.
Flying with Airangel
Warrington-based Airangel, which provids branded wired and wireless internet access solutions for hotels, has secured a three-year contract with the De Vere Hotels Group to update guest internet access services as part of a 12-site refurbishment programme that includes the Carden Park in Cheshire. Airangel already works with hotel brands including Malmaison, Hotel du Vin and Radisson SAS.
Ai should meet expectations
Ai Claims Solutions, the Blackpool-based motor claims manager, has said its full-year results should meet market expectations, but admitted it would be impossible to predict how the impending recession would impact on business. The company, which handles claims for insurance companies, brokers, bodyshops and fleet companies, said trading was down in the first quarter but has since recovered to normal levels. Chairman Steve Broughton attributed the dip to reduced vehicle usage through higher petrol prices, which impacted on the number of road accidents occurring. Ai’s share price remained at 16.75p this morning.
New rates bill to be questioned, says Chamber
The coming of a Business Rates Supplements Bill, floated in yesterday’s Queen’s Speech, has received a lukewarm response from Greater Manchester Chamber. Chris Fletcher, deputy chief executive and policy director at the Chamber, added to Manchester City Council’s previously aired hostility to the plan in saying: “The whole process of local taxation and the role of business is still a live topic. The principle of a tax local, spend local system has merits but only if business has a genuine say in how and where the money is spent. Any extra tax burden must be seriously looked at and questioned as to its effectiveness.”
Call for manufacturing businesses
The sector may be experiencing the worst of the economic downturn, but North West manufacturing companies are being urged to enter the Manufacturing Excellence Awards 2009 to demonstrate the quality that still exists in the region. The awards, organised by the BERR Manufacturing Advisory Service (MAS) and the Institution of Mechanical Engineers, will take place in June and are open to businesses of all sizes. Adam Buckley of MAS said: “By entering, each business will receive excellent feedback on how they are performing against the best in their sector and they will win plenty of customer and peer-recognised kudos if they go on to win an award.”
Fee income continues to slow
Fee income in the UK’s 100 largest law firms increased by an average of 5.8 per cent in the second financial quarter compared with the same period last year, although the rise is the slowest recorded by Deloitte’s Quarterly Legal Sector Survey and is the second successive quarter of slowing growth. But analysts said the rise reflected the international reach of the firms and the strength of both the euro and dollar. “We are now seeing signs of the economic downturn affecting activity levels in the legal industry,” said Heather Crosby, head of Deloitte’s Professional Practices Group in the region. “While some firms are continuing to perform, others are suffering a significant hit on their revenue growth because of the slowdown.”
TIF turnout low so far
Despite the excitement surrounding Transport Innovation Fund proposals, electoral turnout for Manchester stands at just 13.5 per cent so far, the lowest figure of all Greater Manchester’s ten boroughs. According to polling progress information released by Manchester City Council yesterday, only 45,900 of Manchester’s 340,730 electorate had cast their vote by 2 December. The figures show that turnout is highest in Tameside, Oldham and Bury. Voters have until 10pm on 11 December to return their completed ballot papers
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Property
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Artisan closes in
Artisan is hopeful of completing a deal before Christmas to take full control of BASE, its joint venture with Barratt, Insider understands. BASE was chosen by the Oldham and Rochdale Housing Market Renewal Pathfinder in July 2005 to deliver projects across the two boroughs, but the collapse of the UK housing market has forced Barratt into a position where it needs to raise cash. It is also looking to sell the developer Wilson Bowden, acquired in February 2007.
Contractor appointed for Greengate public spaces
Work on the Greengate scheme, a 32-acre area of brownfield land that straddles Salford and Manchester, has moved a step closer after Salford City Council awarded an £8m contract to Carillion to begin the first phase of the regeneration process. Carillion will undertake the public realm work, which includes constructing a new footbridge across the Irwell, and expects to start on site next autumn. The Greengate scheme is a joint venture between Central Salford URC, Salford City Council, English Partnerships, Network Rail and ASK Developments.
Winckley Square under the microscope
English Heritage is reported to be considering adding Preston’s Winckley Square to its list of historic parks and gardens, meaning that Preston City Council’s ambitious plans for a £3m redevelopment would come under close scrunity. The Preston and South Ribble Civic Trust confirmed that it had applied for the square, home to many of Preston’s professional services firms, to be registered and that it had sent a range of doucments to English Heritage to back its claim.
A Wynne win situation
Richard Wynne, director of property and development at Salford regeneration joint venture Urban Vision, has been appointed as chairman of the North West branch of the Association of Chief Estates Surveyors (ACES). ACES represents the professional heads of property and asset management services in local authorities, senior professionals in other public sector organisations and senior surveyors in the private sector who predominantly provide professional services to public sector clients. Wynne has been on the executive committee of ACES for four years.
Swede deal at Christie Park
Acting on behalf of a fund managed by commercial property investment specialist Pinder Fry & Benjamin, Cushman & Wakefield has let unit three at the Christie Park scheme fronting Princess Parkway in south Manchester. Swedish furniture maker Kinnarps has leased the whole 6.205 sq ft building and will occupy the ground floor immediately. Christie Park comprises seven stand-alone buildings. Originally constructed by Business Homes, Pinder Fry & Benjamin acquired three units at the scheme and now has a 4,247 sq ft and 5,265 sq ft building remaining.
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