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Top story
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Businesses welcome new bank bailout
As the government this morning announced a second package of measures designed to bail out the banks and encourage them to start lending again, the region’s business community was cautiously welcoming of the news. “Another interest rate cut may not be effective in freeing up credit, so this new bailout demonstrates the government’s continued focus on attempting to aid the economy through various means,” said Graeham Sampson, financial director at Montpelier Chartered Accountants in Manchester. “The credit crunch has become much bigger than anyone could have imagined and this is causing continued concern within the banks. If the new bailout does not work, then perhaps it is time the banks come up with a solution that will allow them to start providing more credit on terms that they are comfortable with.” Peter Mooney, head of consultancy with Employment Law Advisory Services in Manchester, said: “We should see a brake being applied to the current violent plunge towards deep recession. I’d estimate that around 200 businesses across Greater Manchester and Merseyside would be able to continue trading if they’re granted sufficient credit to see them through the first half of 2009.” The list of measures includes a scheme to offer insurance against banks losing more money from the toxic debt.
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Deals
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In Focus – Manchester bids for Gatwick
At a time when there is little to cheer about in the M&A market, Insider editor Michael Taylor this week turns his attention to Manchester Airport Group’s bid for Gatwick Airport. “If Manchester wins, then it scuppers the argument that stated Manchester Airport has no place being owned by a group of local authorities, but it also raises the possibilities that the public ownership could be a progressive, dynamic and ambitious mode,” he says. To read more, visit In Focus here.
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Business
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Dog treats boost Pets at Home sales
The UK’s unwavering devotion to domestic animals has seen Handforth-based retailer Pets at Home secure record Christmas trading figures. Like-for-like sales climbed 10.4 per cent for the six weeks to 8 January, compared to the same period last year, while the surge has also boosted sales for the current financial year. In the 41 weeks since 28 March 2008, like-for-like sales are up 7.2 per cent and total sales are up 13.4 per cent. Chief executive Matt Davies said the strength of the company’s offer and its store opening programme gives it “confidence for the future". Dog and cat treats were the biggest seller over the festive period, with more than 400,000 sold.
Strong trading for Matalan
Matalan has become the latest discount retailer to weather the consumer spending downturn after posting strong trading results for the Christmas period. The Skelmersdale-based company, which owns 203 out-of-town stores across the UK, reported a 5.9 per cent rise in like-for-like sales in the five weeks to 4 January. Comparable sales in the 13 weeks to 3 January also rose by 3.4 per cent. Chief executive Alistair McGeorge said: “We are now in a position to grow the business and will be investing to do so despite the current economic environment.”
New UK director at Amplifon
Italian hearing aid giant Amplifon, which has its UK headquarters in Manchester, has appointed Steve Fleming as UK and Ireland market director. His appointment will help spearhead the company’s ambitious plans for continued growth in the UK in 2009. He joined Amplifon as sales director in April 2008 and previously spent 12 years at Vision Express.
How does your garden grow?
Peppermint Green, the eco-division of Hale marketing communications firm Peppermint PR, has been appointed by renowned horticulturalist Sue Beesley, runner-up in this year’s BBC Gardener of the Decade competition. Beesley, who spent almost 30 years working in IT and business management, clinched the Gardener of the Year title in 2006. After discovering that Lodge Lane Nursery and Bluebell Cottage Gardens – in Dutton, Cheshire – were on the market, she put in an offer and moved in next door to the nursery.
Swinton hires in Manchester
High street insurance retailer Swinton is expanding its Manchester workforce. The move to add 46 part-time jobs at its Manchester call centre follows recruitment drives in Norwich and Yorkshire and covers positions in marketing, IT and finance.
Pop goes Scottish
Manchester design agency Corporation Pop has appointed Mark Gorman, co-founder of 1576 Advertising in Edinburgh and chairman of the Scottish Marketing Association, as a board adviser. Dom Raban, managing director at Corporation Pop, said: “Mark has been working with us since last spring and has made a real impact on refining the direction of the company.”
Bglobal awards wireless contract
Darwen-based Bglobal, a supplier of smart meters used to reduce energy consumption, has selected Enfora to provide wireless products for use in its commercial and residential electricity smart meters. The AIM-listed company said it awarded the contract to Enfora due to its “expertise and robustness and reliability of its wireless communications which have been deployed worldwide". The UK government recently mandated that all residential homes must be fitted with smart meters by 2011.
Glisten to keep its shine
AIM-listed food manufacturer Glisten, which operates its main factory in Blackburn, expects to report a 6 per cent increase in year-on-year sales but a decline in operating profits when it announces its first-half results in March. In a trading statement this morning, Glisten said underlying trading margins were robust and raw material prices were no longer rising on a widespread basis but lower volumes would force profits down for the six months to 31 December. As a result of strong cash generation, half-year net debt is expected to be in the region of £27.4m, against £25.1m a year earlier, and has fallen since the end of October 2008.
New facility for Tangerine
Tangerine Group, the international veterinary business based in Lytham, has completed the construction of a £1m manufacturing facility on Boundary Road. The facility – phase one of a long-term investment plan – will complement Tangerine’s existing facility on Dock Road and will initially be used to manufacture all VetPlus products, one of Tangerine’s flagship companies. VetPlus was founded in 1995 and was the first company to develop and patent a joint supplement for dogs, Synoquin.
Strong expectations at Stobart
The board of Cumbrian transport and logistics group Stobart was in buoyant mood on issuing an interim management statement in which it says it is confident of achieving year-end financial expectations. After a year of acquisitive growth, the group is now set to drive forward its multimodal strategy and believes that its pay-as-you-go cost model is proving resilient in the economic downturn. Road transport and warehousing operations are slightly ahead of expectations, while port operations are slightly behind, due to a downturn in Far East imports. Rail freight is growing and Stobart is in discussions with customers to move road transport to rail. It is officially opening a Grangemouth to Inverness service on 20 January. Full-year results are due on 28 February.
Separate the goals, says BoE man
One of the keys to understanding the downturn is not confusing short-term and medium-term goals, Bank of England deputy governor Sir John Gieve told a Cityco event in Manchester on Friday. He said: “In the medium term we need to see a rebalancing of the UK economy. But if everyone tries to increase saving and cut borrowing immediately we could prolong the downturn painfully. If everyone plans for the worst, we are more likely to get it. This apparent tension between the medium and short term is evident in the banking sector - one lesson of the last 18 months has been that in the medium term banks need to work with lower leverage and higher buffers of capital and liquidity.”
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Property
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TDG takes Crewe shed
Distribution company TDG has agreed to take a 212,000 sq ft warehouse at the Crewe Gates Farm industrial estate from Highcross. The building was acquired by Highcross in 2006. Crewe Gates Farm is five miles from junction 16 of the M6. Lamont Commercial advised Highcross, while King Sturge acted for TDG.
Lomax takes up dual role
Lesley Lomax has been appointed head of marketing for both New East Manchester and the Manchester City South Partnership, a newly created post that will oversee the marketing and communication functions of both regeneration agencies. She will be based in the marketing coordination unit at Marketing Manchester. Lomax spent ten years with IT giant Hewlett-Packard before taking up roles at inward investment agency MIDAS and then Manchester Knowledge Capital.
Into the valley
The Medlock Valley Project in east Manchester has been shortlisted for the British Urban Regeneration Association (BURA) Waterways Renaissance Award. The project, a partnership between Manchester City Council, New East Manchester, the Northwest Regional Development Agency (NWDA), Groundwork, the Environment Agency, Red Rose Forest and community groups, has improved 225 acres of public open space alongside the river from Newton Heath through Clayton, Beswick and Ancoats to the city centre.
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Events
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Dates for your diary
Over the next two days The University of Salford is hosting Northwest Vision and Media’s TV from the Nations and Regions conference, at the Lowry Galleries, Salford Quays, which includes a session with Peter Salmon, director of BBC North. On Wednesday HSBC is hosting a Chinese regional cities roadshow in Spinningfields and Friday sees Greater Manchester Chamber of Commerce’s building and development section holding its annual lunch, to be addressed by city council chief executive Sir Howard Bernstein, at Yang Sing.
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