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Top story
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Retail's hard times continue as banking crisis increases stock
The British Retail Consortium’s (BRC) call today for commercial landlords to emulate Hermes in accepting monthly rents, rather than upfront quarterly payments, looks unlikely to come to retail’s rescue. BRC’s director general Stephen Robertson said: “Retailers are battling to keep shop prices down. The dam has burst. There is no principled or practical reason why landlords cannot offer this flexibility.” Chris Ronnie, chief executive of ailing JJB Sports, is among retailers to call for change at a time when banking mergers and restructurings will lead to further voiding of high street units. But Nick Round, partner at retail agency Tushingham Moore told Insider: “Some landlords will offer it as a short-term measure, but it’s a fundamental term of the lease both parties agree to.”
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Deals
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In the news
National newsagent chain Martin McColl's is expanding in the North West and has completed the acquisition of two stores this month. JD & NM Dring in Crewe was acquired through agent Knightsbridge Business Sales having an asking price of £84,950 for the lease, while Thorougoods Store in Clitheroe has been acquired through Redwoods Dowling Kerr, now part of the BBTA group alongside Knightsbridge, off an asking price of £495,000 freehold. McColl's is still looking to acquire suitable newsagents, off licences and convenience stores in the region.
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Business
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Business leadership team approves TIF bid
The North West Business Leadership Team (NWBLT) has today announced its support for Manchester's proposed Transport Innovation Fund with the proviso that substantial public transport improvements are made prior to congestion charging. The NWBLT, currently chaired by Pilkington's Stuart Chambers, includes senior figures from Co-operative Financial Services, BT, United Utilities, Virgin West Coast Trains, AstraZeneca, BNFL, BAE Systems and more.
AGMA seeks to bridge awareness gap
With two weeks to go before the end of consultation over its Transport Innovation Fund proposals, the Association of Greater Manchester Authorities (AGMA) faces a "lack of understanding" over its proposals. Although 80,000 written responses have been received already, double that expected, a recent Ipsos MORI poll showed that, although 95 per cent of respondents are aware of a congestion charge, only 80 per cent know of the £3bn transport improvement package and only 45 per cent know that improvements are scheduled to come in before charging.
Christmas the key for IRC
In its half-year results, Individual Restaurant Company, the parent group of Piccolino and Restaurant Bar & Grill, has cut its losses before tax from £157,000 to £83,000. Revenues climbed 21 per cent to £24m and the group remains on track to open seven new venues in the year. Chief executive Steven Walker said: "These are creditable results in what remain testing times. The underlying fundamentals of the eating out market remain attractive over the medium term. Both Piccolino and Restaurant Bar & Grill continue to perform resiliently. As always the Christmas period will be all important."
Africa keeps PZ on track
PZ Cussons, the Stockport-based maker of soaps and other domestic products, will today tell its AGM that trading for the last quarter has been in line with management expectations. Although competition from major retailers has made trading in Australia "challenging", the group's main market of Nigeria remains healthy as wage increases outstrip cost inflation. Cussons' two major projects there, a £39m three-year investment in core manufacturing facilities and a new UHT facility, are now underway.
Joint specialist prepares to raise cash
Arthro Kinetics, the AIM-listed business based in Macclesfield that specialises in joint regeneration, this morning announced plans to start selling off assets as it seeks to raise funds for further development of two projects still in the research and development phase, its Cell Free Implant system and its Nucleus Replacement Implant. "Whilst the group has achieved its targeted cash position of £3.5m, this provides insufficient funds to support the ongoing requirements of the business," said chief executive Jason Loveridge, who added that he is confident of completing a transaction this year. The company's interim results for the first half of the year show revenue growth in its biologics business of 60 per cent.
Resilient Holidaybreak battles on
Despite tough trading conditions in the travel market, Northwich-based Holidaybreak, the quoted education, leisure and activity travel group, this morning said its trading performance is in line with expectations, with year-end net debt expected to be around £160m. Group chief executive Carl Michel cited "spread and diversity" of the group's businesses as the reason for this resilience. The education, adventure travel, hotel breaks and camping divisions have all seen sales growth for 2007/08, although hotel breaks for 2008/09 are reporting an 11 per cent drop in forward sales because of weaker demand in London. The diving business has been hit by costs of around £300,000 following the demise of XL Leisure Group.
Door closes on Endless investment
STP Group, the New Mills-based manufacturer of doors acquired by turnaround firm Endless last year for £6.4m, has been placed into administration. Administrators at Ernst & Young are continuing to trade the £23m-turnover business as they seek a buyer for the company, which has depots in Manchester, Leeds and Bristol. The November 2007 buyout saw Endless investment supported by working capital facilities from Five Arrows Commercial Finance.
Recruits and rejig at PwC
The PricewaterhouseCoopers mergers and acquisitions tax team in the North West has announced a number of changes. Brian Leyland, who has led the team for a number of years, is relocating to London to take responsibility for the national business and Simon Viner, who has worked alongside Leyland for the last ten years, takes over leadership of the Manchester team. He will be supported by two new recruits at director and manager level - Nick Hatton and Steven Woodhouse - who join from the transaction tax team at Ernst and Young.
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Property
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RICS says house price gap is growing
The Royal Institute of Chartered Surveyors says house sellers are now accepting an average of 10 per cent less than asking prices. Eighty-two per cent of North West surveyors reported that the gap between asking and selling prices is still widening. Regional spokesperson Ian Perry, managing director of Harvest Housing, said: "With housing transactions currently at a 30-year low, vendors are being forced to lower their asking prices. The gap could widen as the economic downturn becomes more visible."
Morgan Est goes nuclear
Birchwood-based infrastructure services company Morgan Est has appointed Colin Ellam as business development director. Ellam was previously strategy relations director for AMEC's nuclear business, having begun his career as a UK Atomic Energy Authority apprentice in Risley, Warrington. "The UK's energy sector, including the prospect of new nuclear build, is experiencing an extended period of investment in power generation, transmission and distribution," he said. "Morgan Est has the capability to make a real contribution."
Bridge Properties
Bridge Properties has agreed a letting to Manchester-based design and communications agency Creative Lynx as the first tenant at its refurbished 52 Princess Street. Creative Lynx will occupy the entire 5,620 sq ft top floor of the Grade II-listed building. Architecture firms Buttress Fuller Alsop Williams and GA Studio have designed the redevelopment.
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Events
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Dates for your diary this week
There’s something for everyone this week. On Tuesday law firm Halliwells is holding its sixth annual corporate recovery and turnaround conference at the Radisson Edwardian. PKF, Aberdeen Asset Managers, The Royal Bank of Scotland and Pannone are holding a free workshop on management buyouts and buy-ins at the Lowry Centre on Wednesday. Internet service provider Star is holding a Get Ahead IT forum on Thursday morning, also at the Lowry, to tackle how small and medium-sized businesses can effectively use IT to confront the downturn, with guest speaker Simon Woodroffe of YO! Sushi. The Forum for the Built Environment is holding a breakfast event at Manchester Art Gallery on Thursday morning. Meanwhile, the CBI is holding its International Markets and Globalisation Conference at the Bridgewater Hall on Friday, with a special focus on India. And Thursday evening sees the VIP opening of Manchester In Fashion at Urbis.
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Insider
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Telephone: +44 (0)161 907 9711
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