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Top story
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Business unites in call for interest rate cuts
Businesses in Liverpool are calling for interest rate cuts as the Bank of England Monetary Policy Committee (MPC) meets today, but few believe that this will be enough to kickstart the economy. “It would seem the bank has little option but to cut interest rates again,” said Simon Cutler, European sales director at EliteTele.com, based in St Helens. “I’d expect to see a cut of up to half a per cent. Steps must be taken now to ensure that the predicted recovery in 2010 becomes a reality and we don’t find ourselves in a deep, long recession.” Meanwhile, Neil Sturmey, managing partner at Grant Thornton Liverpool, called for a 1 per cent cut and said: “This should then have some impact on Libor, which is very much out of step with the official government borrowing rate, and should help reduce the cost of borrowing to businesses and personal lending.” Graeme Leach, chief economist for the Institute of Directors, said: “Inflation is yesterday’s problem, today’s problem is recession and - if the MPC don’t take the right action - tomorrow’s problem will be deflation.”
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Deals
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Deal values down but family buyouts up
It’s official – there are deals being done in the North West, but total deal values have halved. New data released by the Centre for Management Buy-out Research (CMBOR) reveals that the private equity market in the North West has been impacted by international financial pressures, with activity levels standing at £259m from just 12 deals in the third quarter of 2008. CMBOR, which is sponsored by Barclays Private Equity (BPE), found that total deal value in the North West has reached £1.3bn from 76 deals in the first nine months, compared with £2.6bn from 83 deals for the whole of 2007. The first few months were distorted by changes to capital gains tax. The year has seen a leap in the number of family buyouts, with 36 taking place, compared with 35 for the whole of 2007, reflecting the fact many deals are with smaller, owner-run businesses.
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Business
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Greasley quits MediaCityUK
Brian Greasley, managing director of MediaCityUK, has stepped down after only a year in the role. Hired to create the vision for MediaCityUK in Salford and establish an implementation team, Greasley will be replaced for an interim period by Andrew Simpson, group managing director of developer Peel, who said: “We will be seeking a replacement for Brian in due course who will focus on the next phase of the project, as well as implementing the ongoing programme of strengthening the MediaCityUK team.” At the Insider Creative Forum in September, international branding guru Kevin Roberts said: “I have never seen anything as boring as MediaCityUK. It’s everything a brand name shouldn’t be and it’s heading to oblivion fast.”
Bakery innovation centre opens in Wirral
Bakemark UK, part of global bakery supplier CSM group, has opened an innovation centre for frozen and bakery products at its site in Bromborough. The company hopes the facility will become a hub for the latest developments in the sector and will house a team that specialises in cake, laminated and fried products. The innovation centre is one of four centres that CSM plans to open across Europe.
Doctors head south
Business Doctors, the business advice firm based in Newton-le-Willows, has opened its first franchised office outside of the Merseyside area. Business Doctors Central Southern will be headed by Keith McCallum, whose business background includes group accountant for furniture retailer MFI. Offering businesses in Cambridgeshire, Hertfordshire and Bedfordshire support with strategy, sales and profit growth and people engagement, the franchise will also provide implementation and interim support with management, as well as help accessing funding and financial support.
Liverpool: innovation central
Liverpool is today playing host to hundreds of delegates from technology businesses as Merseyside ICT holds Liverpool Software City International, in association with global enterprise solutions company Oracle. Being held at Liverpool’s Crowne Plaza hotel, Software City will allow businesses with innovative ideas the chance to pitch to a panel of millionaire investors. Keynote speaker is Richard Farleigh of Dragons’ Den fame, who will also be on the panel. ICT sector director Steve Smith said: “We have had delegates booking from Finland, the US, Australia and Shanghai and there’s a fantastic buzz within the North West business community too.”
Transaction completes two contracts
Liverpool-based internet consultancy Transaction Partnership, set up last year by former Littlewoods executives Richard Blanchard and Steve Goodheart, has helped two major retailers set up their own online stores. Irish-based sportswear and clothing company O’Neill now has an online sales presence in four European countries, while Cheshire-based Pets at Home has also started to sell its goods over the net. Transaction has been involved in the launch of 14 retail websites over the last year, which it estimates deliver annual net sales of more than £1bn.
Energy investor secures wind farm deal
Isle of Man-based Renewable Energy, an AIM-quoted investor and operator of renewable energy technologies, has agreed a sale with Mynnydd y Gwynt, the vendors of the proposed wind farm site at Llangurig, mid-Wales. The company has paid £750,000 in cash and will pay a further £15.18m subject to the vendors obtaining all required planning, construction and operating permits and subject to construction. It will use part of an existing loan facility with Standard Chartered Bank to fund construction and development of the wind farm. Mynydd y Gwynt was set up by a group of local land owners and entrepreneurs.
Saudi opportunities for businesses
As a result of Prime Minister Gordon Brown’s recent visit to Saudi Arabia, 40 senior representatives from 27 Saudi Arabian companies will visit Manchester on Monday, hosted by UK Trade & Investment and the Northwest Regional Development Agency. This event creates an opportunity for companies in the North West who are interested in doing business in Saudi Arabia, exporting, creating joint ventures or mergers and acquisitions to meet with the Saudi Arabian delegation.
FDs gloomy over 2009 prospects
More than half of North West firms think economic growth in the region will stagnate or slow for two years or more on the back of rising costs and tightening bank credit facilities. According to the latest survey of financial directors by accountancy firm Baker Tilly, 76 per cent believe 2009 will be worse economically than 2008, with only 4 per cent thinking there will be a recovery over the next 12 months. Sixty-four per cent of North West businesses say they are cutting costs in the light of the worsening economic conditions, while 24 per cent claim to be freezing employee pay rises over the next year.
IS Pharma sees profits swell
Chester-based IS Pharma, a late-stage pharmaceutical and medical devices business, has seen profits after tax more than treble to £1.8m in the six months to 30 September 2008, up from £500,000 for the same period last year. Revenues also rose 87 per cent to £5.8m. Chief executive Tim Wright said: “We are continuing to deliver in line with our strategy and have built a strong portfolio through late-stage product developments and intelligent acquisitions, which is capable of delivering further strong organic growth.” IS Pharma changed its name from Maelor Pharmaceuticals in March after acquiring Swiss company Speciality European Pharmaceuticals for an initial £9.25m.
Marketing professionals suffer low pay
The Chartered Institute of Marketing’s latest marketing salary survey, conducted by Croner Reward, reveals that pay for marketers in the North West is well below the national average. The survey found that the average basic pay for marketers in the region is £29,000 per annum – 9.4 per cent below the national average. But at the most senior levels pay remains competitive: a head of marketing in the North West earns a basic salary of £55,000, while a marketing director earns £75,000 – both in line with the national average.
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Property
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Way ahead planned for Cunard Building
Consultancy CB Richard Ellis, which manages the Cunard Building, has appointed the Liverpool office of architecture firm Buttress Fuller Alsop Williams to survey the condition and create a plan for the maintenance and development of the Grade II-listed former shipping headquarters, which is one of the city’s Three Graces. The plan, drawn up in consultation with the Local Authority Conservation Officer and English Heritage, will be used to develop programmes of repair, restoration and to govern any modifications.
Housing market remains “fragile”
Housebuilder Redrow has revealed that housing reservations are 45 per cent lower than last year as the market remains “extremely fragile” and is being dented further by the fear of rising unemployment. The Flintshire-based company’s net reservations in the last eight weeks averaged 38 private sales per week over 93 sales outlets. However, Redrow believes it is now in a position to weather the storm after a series of cost-cutting measures. The business secured a new £450m debt facility to 2011 in September and said it is on track to achieve its aim of reducing its debt by June 2009. Net debt stood at £300m at the end of October.
Baxter expands in Liverpool
Global biopharmaceutical company Baxter Healthcare is expanding its Liverpool operations by signing a 25-year lease on a 38,000 sq ft production and laboratory facility at the Wavertree Technology Park. Landlord Space Northwest is developing the site to enable Baxters to bring previously outsourced activities in-house and create around 30 high-value jobs for the city. The development significantly increases healthcare activity on Liverpool Innovation Park.
Access road receives £10m funding
The first Cumbria project to receive funding from the latest European Regional Development Fund (ERDF) Programme is the construction of a new access road for the Waterfront Business Park, currently under development in Barrow-in-Furness. The Northwest Regional Development Agency and ERDF are putting in £4.9m for the project, which received planning permission from Cumbria County Council’s Development Control and Regulation Committee at the end of October. The park is part of the wider £200m Waterfront Barrow-in-Furness development by West Lakes Renaissance, which is expected to create around 1,500 jobs.
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