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Top story
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Russell slams Stockport leader over TIF
David Russell, the chairman of Property Alliance Group and a key backer of Manchester’s Transport Innovation Fund bid, has written an open letter to the leader of Stockport council Dave Goddard, a public opponent of the bid. In it Russell draws attention to the withdrawal of Lend Lease from Stockport and says: “It is easy to knock proposals that require trust and forward thinking, but what is the alternative for Stockport? Do you continue to accept poor and unreliable transport links? You would have no town centre investment? You are managing a district in decline. Stockport’s elected leadership are fundamentally letting the people of Stockport down. Stop playing politics and put the future of your constituents first.” Goddard and Trafford leader Susan Williams have been the dissenting voices among local authority leaders. Goddard said at an Insider round table debate this month: “Stockport has the least investment from this package.”
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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.
Crunch time for Arthro
Arthro Kinetics, the AIM-listed business based in Macclesfield that specialises in joint regeneration, this morning announced that it was struggling to find a buyer for the business and could either close down or delist by the end of the month. Although sale discussions are ongoing, progress has been hampered by the economic climate. The company has seen headway in the sale of Cell and Tissue Bank Austria (CBTA), which would enable the repayment by CBTA of a loan for about €1m made to it by an Arthro Kinetics subsidiary. The deal is targeted to complete by the end of November.
Bank backs Buddha Lounge
It may not seem the most prudent time to open a new restaurant, but two businessemen have done just that in Ramsbottom, with the help of funding from Barclays Commercial Bank. Scott Murray and Kin Lau have opened The Buddha Lounge, which overlooks the famous steam train station on Railway Street. The site, which has been sat empty for the last five years, has undergone a £300,000 investment for the restaurant, which offers a fusion of Thai and Chinese cuisine. Murray and Lau first brought the Thai Lounge restaurant to Whitefield, Manchester in June 2006.
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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.”
Call for rate cuts – but will it be enough?
Businesses in the North West are calling for interest rate cuts as the Bank of England Monetary Policy Committee meets today, but few believe that this will be enough to kickstart the economy. “The credit crunch is still freezing credit for businesses and individuals, so there is a long way to go,” said Graham Sampson, finance director at Montpelier Chartered Accountants in Manchester. “Despite the rough economic climate companies need to avoid having a short-term view.” Martin Kirby, managing director of Tenon in the North West warned: “Analysts agree that a cut is needed, but the impact of a reduction will be less than people expect. The Chancellor knows that he cannot use interest rate cuts as a magic wand and it may be spring before we see the benefits of the policy.”
Engineering business relocates
Following a successful growth period that has seen staff numbers swell to 70, North West Engineering Group has relocated to larger premises at the Southgate Trade Park in Morecambe. The company has taken 25,000 sq ft of space at the park, which is located adjacent to the Lancaster Retail Park near junction 34 of the M6. Property investor Northern Trust, which recently completed a refurbishment programme at the park, said that it was delighted to have secured such a large letting in the current climate.
Able2buy secures new lender
Able2buy, the Salford-based consumer credit provider, has signed a new lender agreement with LaSer UK that will see the French-owned group become its major lender. The business said the deal will allow it to offer a new range of credit finance products to existing retail customers and develop new business opportunities across both the high street and ecommerce sectors. LaSer is owned by Galeries Lafayette and BNP Paribas and is one of Europe’s largest loyalty and affinity companies.
Top appointment for Mitchell Charlesworth
Manchester accountancy firm Mitchell Charlesworth has been added as a specialist adviser to the Institute of Credit Management, Europe’s largest professional credit management organisation. The firm joins the technical advisory panel of the body, which represents and promotes the credit profession across trade, consumer and export credit.
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, whilst 24 per cent claim to be freezing employee pay rises over the next year.
Accountants head to Manchester
Manchester will next week play host to the annual conference of the UK200Group, the mutual professional association of over 120 quality assured independent accountants. Open to members and non-members, the event at the Midland Hotel on 13 and 14 November is entitled After the Good Times and looks at sustaining performance during a period of economic uncertainty. A series of specialist panel workshops, discussion sessions, presentations and seminars will be held, each featuring keynote speakers, including Dennis Turner, chief economist at HSBC.
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.
Client wins at Harold Sharp
Sale-based chartered accountancy firm Harold Sharp has added two major new regional clients, Sale Sharks Rugby Club and Old Trafford-based Paramount Print Group, to its existing portfolio of over 1,000 clients. The firm has been appointed to provide an outsourced service that meets the rugby club’s entire payroll requirements and delivering accounting services and advice to Paramount as it focuses on business growth.
Growth at Manchester recruiter
Cast UK, the Manchester-based recruitment consultancy, has appointed Jeff Roberts as its new managing consultant as it looks to double staff numbers to 24 over the next 12 months. The firm, which specialises in finding candidates for procurement and logistics roles, was set up three years ago and has already broken the £1m-turnover mark. Roberts was previously employed by DHL-Exel, one of the world’s biggest logistics companies.
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Property
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Barron joins Colliers
Well-known Manchester office agent Rupert Barron has joined Colliers CRE, where he will work alongside Stephanie Mullenger in growing the firm’s strength in office agency. Barron was last month made redundant by DTZ, where he’d been the ‘last man in’ following the firm’s merger with Donaldsons. He previously worked for Knight Frank and Chesterton in the city. Mullenger said “Rupert’s vast experience and market knowledge will allow us to greatly develop and enhance our office agency offering.”
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.
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.
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