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Top story
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Think big in sport and business, urges Peel boss
Andrew Simpson, the managing director of Peel Holdings, this morning told an Insider property breakfast that Manchester needs to think bigger to build on its reputation as a sports city. Urging support for Peel’s plans for Salford Forest Park, he said: “There’s a great base to work from in the global reputation of Manchester United and the Olympic gold medals produced from the Velodrome, but to really become the ‘place to be’ we need top-class facilities. How many major corporate sports events do we have? None. What we’re proposing could bring a Belmont-style corporate racecourse and a golf course capable of holding a Ryder Cup four miles from the city centre. This would improve Manchester’s ability to attract major corporate head offices, rather than back office functions.”
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Deals
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In House to breathe easy
Warrington-based In House Group, which buys property portfolios for break-up, has agreed to acquire a 75 per cent interest in Breatheasy Finance. Heads of terms have been agreed proposing a purchase price of up to £200,000 to be settled by an issue of shares. In House has secured a three-month exclusivity period with Cheadle-based Breatheasy, which identifies housing stock at below market value with a view to achieving strong rental yields.
Doing it for the kids
Entrepreneur Jennie Johnson is driving a major expansion of her Kids Allowed childcare centres after securing a £7.5m loan from banking giant Abbey. She is also seeking further private equity investment to help expand her three-strong chain to five in the area via the acquisition of further sites for purpose-built centres. Her long-term aim is to operate 15 centres throughout the North West through organic expansion. The loan from Abbey allowed Johnson to buy out original investors and buy back full ownership of the Kids Allowed sites at Cheadle Royal Business Park and Christie Fields Office Park, West Didsbury. She said: “The fact that we secured a substantial loan from Abbey in these tough economic times proves the success of our business and confidence in its prospects. We negotiated an amicable exit for our current shareholders who have been instrumental in getting us to this stage and are now gearing up for a major roll-out of our tried-and-tested business model.”
Swordfish snapped up
The 26-strong Manchester team of computer game developer Swordfish Studios has been acquired by Nottingham-based Monumental Games, the UK’s fastest-growing developer of middleware technology for multi-player online gaming and virtual worlds. Swordfish Studio head Mike Delves joins the Monumental management team to head the business, which will be known as Monumental Manchester. He said: “Monumental has clearly been the one to watch for a while now, and we’re glad to be playing a crucial part in a new phase of growth.” Meanwhile, US company Codemasters has acquired the Birmingham team of Swordfish.
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Business
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Confident NetServices reports profit
The chief executive of Salford-based communications business NetServices believes that the AIM-quoted company’s business model is perfect for attracting and retaining clients in the current economic climate. Speaking to Insider this morning as the company released preliminary results showing maiden profitability as a quoted company, Mark Vickers said: “Our model and strategy has not changed for two years and now Cisco is even replicating it. It is about cost reduction for clients, paying for what you need, when you use it.” Pre-tax profit for the year to 31 August was £50,000, up from a £530,000 loss in 2007, on a turnover slightly down at £7.1m following the sale of the wholesale consumer broadband business. With a strong customer base in place, NetServices is confident it can ride out the credit crunch. “We bought Telefonica UK two years ago and I’ve not lost one of those customers,” said Vickers. “What they love about us is that we have consultancy, professional services, pre-sale, a project office and a service office. That capability is usually only delivered to FTSE 100 companies – we’re taking that empowerment to the small and medium-sized business sector.”
Wiganers urged to vote yes on TIF
The Wigan Economic Partnership (WEP), a combination of the public, private and voluntary sectors, has voted overwhelmingly to support Greater Manchester's Transport Innovation Fund bid and urged the borough’s voters to follow suit. WEP chairman Nick Yates of law firm Stephensons said: “The people of the Wigan have got to go out and vote yes. Not voting would be like having a £3bn lottery ticket and not claiming your win.”
PNE prepares to repay loans
Football club Preston North End has told the stock market that it is finalising the terms of repaying two loans, one with Guild Ventures worth £6.1m and one with the Friends of Preston North End worth £990,000. Guild, controlled by Trevor Hemmings, owns 28 per cent of the club. The loans have been used by the club, currently mid-table in the Championship, to fund player purchases and ongoing working capital requirements.
B of the Bang case settled for £1.7m
Manchester City Council will receive £1.7m after settling out of court with Thomas Heatherwick Studio and its subcontractors Packman Lucas, Flint and Neill Partnership and Westbury Structures over the design and construction problems of the B of the Bang sculpture at Sportcity in east Manchester. The council’s solicitor Susan Orrell said: “The settlement allows the council to recover substantial damages and avoid further cost and the risks that are always associated with legal proceedings.” A report into the sculpture’s future will go to the council’s executive in the New Year.
Tourism counts cost of the crunch
The fifth annual Regional Tourism Conference for England’s Northwest takes place today at the Southport Theatre and Convention Centre. Hosted by the Northwest Regional Development Agency (NWDA), the conference is focusing on managing business through the credit crunch, with keynote speaker David Edwards from VisitBritain providing an insight into future trends and opportunities for the tourism industry. Felicity Goodey, chairman of Tourism England’s Northwest, said: “This industry is getting even more competitive, which makes it even more important for us to continue to deliver exceptional visitor experiences. We must continue to invest in our buildings, environment and people – public and private sector alike.”
Clear skies ahead for Cleardebt
Cleardebt, the Cheshire-based consumer debt advice and management group, has recorded revenue of £1.87m and a loss of £697,264 for the year to 30 June, up from 2007 revenues of £420,963 and a loss of £657,494. The group has 2,499 debt management plans (DMP) running and is aiming to grow organically – as more consumers fall into serious debt – and through acquisitions. Chief executive David Mond said: “With the number of IVAs and DMPs growing, good pipelines, and the current economic conditions suggesting a constant flow of new enquiries to our website, we have every reason to believe that we will continue to be busy. ClearDebt is in a position to become an industry consolidator as our peers find their models cannot cope with the new market conditions.”
Revenues rise for Renold
Despite ongoing pressure on the global economy, revenues at Wythenshawe engineering group Renold have risen 16 per cent to £95.2m and pre-tax profits doubled to £2.8m in the half year to 30 September. Chairman Matthew Peacock said: “This is a commendable achievement given a more difficult background of input price inflation than envisaged. The development of Renold in India, recent falls in input costs and the strengthening of the US dollar are all positive for the group's future prospects.” In September Renold completed the acquisition of a 75 per cent stake in Indian chain business LG Balakrishnan & Bros, which will enable the group to promote its product range into India’s rapidly growing market.
Uncertain times for James Cropper
Cumbrian paper mill James Cropper has seen turnover rise 5 per cent in the half year to 27 September to £37.7m, with a group pre-tax loss of £200,000, but there are uncertain times ahead for the Speciality Papers division. The Technical Fibre Products division, which has a strong order book for the second half of the year, performed particularly strongly, with turnover up 15 per cent and profits up 4 per cent on the same period last year. “Given the uncertainties surrounding the forward trend in exchange rates, quoted energy prices and pulp costs, the outlook for Speciality Papers is difficult to project,” said chairman James Cropper, of the division that saw turnover increase 7 per cent. “The impact of the increasing cost base will be mitigated in the second half of the year by further sales price increases. It is not anticipated that losses in Speciality Papers will grow significantly over the remainder of the financial year.”
Patent duo appointed
Patent and trade mark law firm Mathys & Squire has appointed two directors from William A Shepherd & Son, Gary Johnston and Robert Hawley, to head the firm’s new Manchester office. Opening the Manchester office reflects the firm’s strategy to grow its UK client base and provide a local service to regional clients. The firm is headquartered in London but also has offices in Cambridge, Reading and York.
Entrepreneur challenge finalists named
The five finalists have been announced for the North West England and North Wales region of the Bank of Scotland Corporate £35m Entrepreneur Challenge. Manchester Science Park-based ANS Group, already a winner at the IoD Director of the Year awards, will compete with Stockport’s National Tyres, Cheadle-based Myprotein.co.uk, Northwich e-commerce provider The Hut and Welsh holiday business Pendine Park to secure a £5m funding package, free of interest and charges for three years.
Employment law supports Hill Dickinson growth
North West law firm Hill Dickinson has reported fee income of £38.5m in the half year to October 2008, a year-on-year increase of 13.5 per cent. The firm attributed its success partly to a 52 per cent increase in employment law work on the equivalent period in 2007. The Manchester office and its sister office in Piraeus, Athens, were the strongest performers, with a 32.4 per cent rise in fee income in Manchester and 47.2 per cent increase in Piraeus.
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Property
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Meek reports on Blackpool progress
Liz Meek, regional director of the Government Office for the North West, has announced her verdict on the progress of the Blackpool Resort Masterplan commissioned in the wake of the town’s failed supercasino bid. Meek reported that since July progress has been made on the potential Victoria & Albert museum, the Tower Festival headland project, housing projects and expansion of higher education. Northwest Regional Development Agency chairman Bryan Gray said: “A better Blackpool requires investment, but also support from all partners. I am pleased this report shows that progress is being made.”
Four sign at Exchange Quay
Four occupiers have signed up for a total of 22,812 sq ft at Exchange Quay, the 500,000 sq ft office complex in Salford Quays. In the largest single letting at Exchange Quay for a number of years, fit-out business ISG has taken 10,845 sq ft on a ten-year lease. Business information provider Dun & Bradstreet has taken a 3,080 sq ft suite, while construction consultancy RLB Rider Levett Bucknall has relocated within Salford Quays to take a 4,846 sq ft space. Bluesky Travel Systems has increased its space by 4,041 sq ft to 12,132 sq ft.
WB presses on in Macc
Wilson Bowden Developments (WB) has submitted an outline planning application for the £200m redevelopment of Macclesfield town centre, on which it has been working with the local authority since 2005. WB is up for sale by its embattled parent group Barratt, but is pushing ahead with a number of schemes. Debenhams is committed to the Macclesfield scheme for an 80,000 sq ft anchor store, while negotiations are ongoing with a cinema operator. The 500,000 sq ft scheme will include about 50 retail units.
Arley on the attack
Warrington-based housebuilder Arley Homes says now is the time for developers and landowners to act. Managing director John Cosgrave said: “While these are extremely challenging and difficult times, we see opportunities to work with those who want to realise their asset potential rather than wait and allow pressures to build. We have been careful not to overstretch ourselves in recent years and are not saddled with an expensive land bank or over-valued assets, and therefore find ourselves able to continue to purchase new sites for development.”
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