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Top story
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Whittaker calls for red-carpet treatment
As his son and development director James set out this morning to swim 21 miles along the Manchester Ship Canal in the first leg of a bid to raise more than £150,000 for The New Children's Hospital Appeal, Peel Holdings chairman John Whittaker called for a new planning regime to aid his Ocean Gateway regeneration plans to establish the Mersey and the Ship Canal as an economic powerhouse. "It needs a cohesive authority to overcome in-fighting between local authorities, as has been established in the Thames Gateway," he said. "It's not just for Peel, but would give the North West the chance to become the UK's most dynamic region. If Peel were an inward investor coming in with £50bn of regeneration for the North West there would be a red carpet from here to Downing Street, but indigenous companies are not given the credit they deserve." This morning's event saw regional dignitaries and property agents join a private charter from Salford Quays to Liverpool.
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Today's news
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Ratner: You've got to be in it to win it
Comeback entrepreneur Gerald Ratner last night called for regional business leaders to pull together and work through the economic storm during a speech at Insider’s North West Leaders Dinner in Salford. Ratner bounced back from an infamous PR gaff in 1991 when he joked that a pair of earrings sold in his shop were cheaper than a prawn sandwich but probably wouldn’t last as long. He now runs Britain’s largest online jewellers, Gerald Online, and told the audience that problem solving in the current climate was the key to getting through the tough times. “Nobody can predict the future and sometimes you need a bit of luck but, however bad it gets, it’s better to be working and surviving,” he said. “We all have stress and business is a series of problems – let’s solve them rather than moan about them.” The event attracted more than 150 key business leaders from around the region and was sponsored by DLA Piper and The Co-operative Bank.
Hallworth to tread new path for Clearwater
Clearwater Corporate Finance has appointed Graham Hallworth as non-executive chairman to spearhead the organisation's move into debt advisory and restructuring. Hallworth, a serial non-exec and former partner at venture capital outfit Alchemy, is perhaps most famous for the deal he didn't actually complete when he was put forward as part of the management team behind Alchemy's bid for carmaker Rover in 2000. In terms of deals he has done, Hallworth is well known for his role in leading a management buy-in and subsequent turnaround at Homestyle, and for being part of the Alchemy team that turned around home decorating business AG Stanley.
We've got the wind power
Two new wind farms off the North West coast have been given planning approval by government. A 500mw farm 14km off the coast of Cumbria and Lancashire will be one of the three largest offshore wind projects approved in the UK so far. The 139-turbine project is run by Morecambe Wind, a consortium comprising ScottishPower, Danish wind developer Eurus Energy and Danish state-owned DONG Energy. Meanwhile, Eclipse Energy, a company backed by a range of investors including the YFM-managed North West Business Investment Scheme, has been given the go ahead for its 30-turbine Ormonde wind farm and to generate and export electricity from the adjacent Ormonde Gas Fields.
Climbing the value chain
Burnley-headquartered Discount retailer The Original Factory Shop has once again defied the wider market after reporting profits hikes of 16.4 per cent in the year to 31 March. The company has also reported that sales growth from 1 April to the week ending 24 August continued with the same momentum with gross sales up 16.8 per cent and profit margin 80 basis points ahead of last year. The company, which went through a secondary management buyout backed by Duke Street Capital in December 2007, currently trades from 91 sites across the UK and is forging ahead with plans to open a further 13 stores before Christmas.
LateRooms chalks up London deal
Manchester-based online accommodation business LateRooms.com has acquired London hotel booking site Hotels-London.co.uk. The business will continue to operate under its current trading name and will be managed as a separate entity. LateRooms was backed by ECI in 2004 to the tune of £12m and then sold on to First Choice in 2006 for £108m, representing one of the best private equity returns ever seen in the region. This latest acquisition is part of a high-growth strategy for the business, which is aiming to increase in size by about 50 per cent a year.
Food hikes bring good times for Carr's
Increasing food prices will help boost the profits of agriculture, food and engineering group Carr's Milling Industries by 127 per cent, the company announced this morning. Following the close of its financial year, the board of the Cumbria-based business expects pre-tax profits in the year to 30 August will be no less than £12.5m - up from £5.5m in 2007 - on revenues of £350m. Chief executive Chris Holmes said: "We are benefiting from market share gains in both feed and fertiliser, seeing strong underlying trading in our retail business and improved margins in flour." Carr's has today placed 410,000 new ordinary shares at 660p to fund additional working capital requirements.
Bluemantle in £85m refinancing
Cheshire property group Bluemantle has secured an £85m refinancing package of its existing portfolio with Rothschild, The Royal Bank of Scotland and HSBC. Managing director Mark Caldwell said: "This deal demonstrates a great vote of confidence in us and proves that the property finance markets are still open for the right sort of business." Bluemantle's existing portfolio, worth more than £150m, is spread over 50 properties across all sectors, looking after over 270 tenants with a rental income of £9m per year.
Everything's gone green
Manchester’s Radisson Edwardian hotel has declared self-sufficiency as the way forward. Under new head chef Russ Brown, the hotel has created a roof garden to grow its own herbs and vegetables. Brown told Insider: “No other hotel in Manchester does this, but it seems so obvious – we could become entirely self-sufficient in time.” The hotel will unveil new menus at its Opus One and Alto restaurants after hosting the Labour conference this month and is looking at building a mezzanine floor in the Opus One bar.
Plan for retail in Middleton
A planning application for part of Middleton town centre in north Manchester has been submitted by Aldi and Kirkland Developments for a scheme that includes a 16,715 sq ft flagship Aldi supermarket and 23,000 sq ft retail outlet at Parkfield Industrial Estate. Planning consultants at Lambert Smith Hampton's Manchester office prepared the application, which, if approved, will result in the demolition of the current dilapidated units.
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Something for the weekend
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Deal of the week
This one could even be a contender for deal of the year. Concluded late on Sunday night and broken to the world on Monday morning, the £210m takeover of Manchester City by the Abu Dhabi United Group is a strong message to the region. Sovereign wealth is making its mark in the North West and it can only be a matter of time before another major club goes the same way. Money talks in football and the Middle East has stacks of it, as well as an uninhibited ambition to be the best.
Buttering up the locals quote of the week
"Many people in London are gobsmacked about the quality of the buildings in Blackburn, and the fact that the town is looking so prosperous compared to many other towns and cities further south." Jack Straw tells his constituents what they want to hear. Unfortunately though, Jack isn't on the judging panel for this year's Stirling Prize for Architecture.
View from the nationals
Question: Can the Abu Dhabi royal family’s baffling interest in Man City be traced back to rogue United fans peppering football phone-ins with hoax calls about what a massive club City is? It’s more plausible than learning of the club through the financial press if this from Tuesday’s FT is anything to go by: “The City faithful are famed for their renditions of Always look on the bright side of life.” Really? We could have sworn it was United fans in the early 1990s who favoured this ditty. Honestly.
Bringing out the dead
The Co-operative Group can't keep out of the news. Co-operative Funeralcare was this week ordered to pay £30,000 to a Glasgow funeral director at an employment tribunal. Visiting senior management from Manchester, hearing squealing tyres, accused Scott Ralston of driving too fast. The 17-year veteran of hearse-driving replied that the noise was due to the polished surface of the funeral home and that he was in fact driving at 7 mph. Ah.
Canapé won't pay
August is but a damp memory and the event season is upon us. The Lowry Hotel and Radisson Edwardian both came up with the goods in their usual style, while a special mention must go to the Travelling Gourmet after a sterling display at this week’s Insider round table. But let’s hear it for HSBC. The tucker at the bank’s St Anns Square bash was reasonable enough, but with the added entertainment of golf simulators, comedy sketches and a levitating magician, who could deny them the prize? Bravo!
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