corporate treasury

3
Corporate treasury YOUR AWARD-WINNING SUPPLEMENT DISTRIBUTED WITH

Upload: mark-ragan

Post on 12-Aug-2015

50 views

Category:

Documents


4 download

TRANSCRIPT

Page 1: Corporate treasury

Corporate treasuryYOUR AWARD-WINNING SUPPLEMENT

DISTRIBU TED WITH

Page 2: Corporate treasury

The supplementWe are producing a supplement with a special focus on Corporate treasury to be distributed with The Sunday Telegraph and City AM.

What’s it about?Corporate treasury has developed into a profession in its own right, in response to the growing sophistication and volatility of financial markets and the globalisation of business. Tactically they manage cash and foreign exchange, banking and credit facilities and, at a more strategic level, capital and financing structures and more generally financial risk management. What will be the editorial themes?• What a company expects from its treasury department is substantially dependant on

the nature of the company’s activities and the responsibilities that executive management entrust to it. Some corporate treasurers are formally part of executive management, others are not. Further, outside of what may be considered the core universal responsibilities of treasury management, there are always potentially grey areas between what is treasury management and what is financial control, company secretarial, tax, risk management and insurance. We analyse the market.

• It is clear that corporate treasury departments will need to respond as secure banking relationships and sources of financing become more precarious. As banks have retreated, corporate treasurers have needed to be more proactive – executive management now requires more information and reassurance and assumptions about risks and hedging strategies will routinely be more robustly challenged.

• Corporate treasurers around the world want a strong financial services industry capable of supporting the business needs of commercial and industrial companies. Is there an overarching, well-coordinated global regulatory plan? We investigate.

• We look at how companies with a fair amount of cash on their balance sheets can generate returns in times of low interest rates. How can they achieve this without taking undue risks?

• More volatile conditions in the emerging markets puts added pressure on UK-based companies trying to fund their EM subsidiaries. And the recent increase in global M&A activity puts added demands on treasurers who need to help their company maximise their benefits from any merger.

• For treasurers of large companies, we look at how they should manage large banking groups where there is a need to spread a limited “wallet”. And, as many treasurers also head up a company’s tax department, it’s important for them to understand many new tax measures and regulations facing companies.

Lyonsdown Ltd, Shakespeare House, 7 Shakespeare Road, London N3 1XE www.business-reporter.co.uk | +44 (0)20 8349 4363

2014’s front page

Mark Ragan project manager

Direct: +44 (0)20 8439 [email protected]

CONTACT

YOUR AWARD-WINNING SUPPLEMENT

Information

• Readership1.45 million

• Circulation405,000

• Copy deadlineFebruary 16

• Readership399,000

• Circulation120,000

• Copy deadlineFebruary 16

Publication date March 15 2015

Publication date March 18 2015

Page 3: Corporate treasury

YOUR AWARD-WINNING SUPPLEMENT

Sponsorship is available at the below rates and sizes, with additional sizes also available. All prices exclude VAT and agency commission. City AM prices are half those quoted below.

Business Zone & Inside Track

Sponsorship is also available in our Business Zone and Inside Track sections, with pieces ranging from 500 to 160 words

Industry leaders and decision makersThe Telegraph’s readership includes more chairmen, CEOs, MDs and directors than any other quality daily newspaper. This includes 66,000 readers who are C-class executives of companies with more than 250 employees. That’s 11,000 more than The Times and 45,000 more than the FT. These powerful decision-makers trust the contents of their newspaper. This is your chance to influence those people.

Inspire, connect and share Telegraph readers are networked business people with successful careers. They know people across an array of social, cultural, professional and economic circles. They also have an instinctive and natural gift for making social connections. They are key opinion formers, spreading knowledge far and wide as they debate new ideas and concepts. What they read in their newspaper has an impact far beyond the general readership.

Senior professionals and execsCity AM is read by more senior business professionals in London than any other quality title. City AM is distributed at more than 400 carefully chosen commuter hubs across London and the home counties, as well as 1,600 offices throughout the City, Canary Wharf and other areas of high business concentration, giving it a daily readership in excess of 399,000 professionals.

Advisors, influencers, strategistsCity AM attracts a unique audience, with 93 per cent of all readers in full-time work earning an average salary of £66,800. 91 per cent of its readers are under 55, and are concentrated in the London area. City AM is read by 77 per cent men, 23 per cent women. 68 per cent of City AM readers are decision makers in one or more areas; it is also the highest indexing title (212) of seniors who have set up a new company.

OptionsAudience

TRACKINSIDE

Ind

ust

ryV

IEW

Ind

ustryV

IEW

High hopes for new talent

British concrete and cement producer Hope

Construction Materials has set up its own

apprenticeship academy to recruit and

develop the engineers and technicians

of the future. Pictured left to right are Matt

Richardson, Henry Wilde and Daniel Repton,

the latest apprentices to join Hope’s

900-strong national workforce.

With almost 180 sites across England

Scotland and Wales, the £300million turnover

company is supplying the core products

– cement, ready-mixed concrete, limestone,

sand and gravel – to meet the surge in

demand from UK housebuilders and

construction firms.

Simultaneously, Hope is flying the flag

for British manufacturing, indigenous raw

materials and home-grown talent.

www.hopeconstructionmaterials.com

Setting sights

on another

European record

It’s the taking part that

counts: The demolition

business is looking good

The UK construction

and off-highway

equipment industry

is worth around £11billion

to the UK economy and,

with infrastructure projects

such as Crossrail and HS2,

this figure is set to grow

considerably as the demand

for construction machinery

reaches new levels. Hyundai

Heavy Industries Europe has

been increasing its market

share in the UK year-on-year

since its construction

equipment first arrived in

the UK from South Korea

some 15 years ago.

Hyundai is now the

fastest growing construction

equipment company in the

UK and, last month, Hyundai

reported machines released

to the UK market reached 955

units in one year (to date)

– another European record

broken by the company.

HHIE’s sales director

construction equipment,

Alain Worp, says: “For next

year and beyond, the primary

target remains to further

increase all European market

shares in all

machine

segments we are covering,

especially in the key

countries of the UK, Germany

and France, which at the

moment represent about

70 per cent of the total

European potential.

“Hyundai is a growing

brand all over Europe, but

we have done especially

well in the UK. The challenge

ahead is to continue this

growth path with our existing

Hyundai dealers in the UK

and strengthen and grow our

dealer network throughout

Europe and enhance and

widen our product portfolio.”

Worp concludes:

“Hyundai’s key strengths lie

in the quality of its machines,

our significant investment in

R&D, innovation and a highly

competitive price, which our

competitors are unable to

match.” Hyundai says its

distribution and logistics

chain has been fine-tuned

to meet the demand for its

machines. Once in the UK,

the machines are stored at a

depot in Tilbury – ready for a

speedy distribution to dealers.

www.hyundai.eu

Construction’s

digital future

has technology

at its heart

In contrast to the tough

trading conditions of the

past few years, the advent

of Building Information

Modelling (BIM) has been a

welcome development for the

UK construction industry. The

benefits of the BIM process are

today too numerous, and too

well documented to ignore

– greater productivity,

improved safety and

quality, better collaboration,

enhanced programme

performance, more satisfied

clients, and more.

With the majority of the

world’s current construction

spend and forecast growth

originating in emerging

markets, and increasing

demand there for firms that

“get” BIM, there is also a huge

potential opportunity for the

UK construction industry,

already ahead of many in

terms of BIM expertise, to

secure lucrative export work.

But the digital world isn’t

standing still. Just as the

technology which enables

the BIM process is

transforming the industry

today, a new generation of

digital trends are poised to

do likewise tomorrow.

Increasingly, the success of

individual contractors will

be linked to their ability

to deploy these digital

developments.

Trends like big data,

cloud computing,

3D printing, the

internet of things,

digital reality,

crowdsourcing,

crowdfunding,

or algorithmic

design, will change the way

in which the industry plans,

finances, designs, builds and

manages tomorrow’s built

environment.

In particular they will

open the door to radically new

ways of tackling the really big

issues of urbanisation, energy,

skills and sustainability.

If today the industry

uses digital models for

individual projects, then

tomorrow expect it to model

whole cities as integrated

ecosystems – letting

technology take the strain of

matching population patterns

to transport infrastructure,

projected workloads to digital

apprenticeships, CO2 levels

to green-space offsetting,

and the urban aspirations of

communities to crowd funded

investors. Exciting times lie

ahead for the UK construction

industry, and technology

will be at its heart.

Dominic Thasarathar,

construction thought

leader, Autodesk

www.autodesk.com

In a global business as competitive

as construction, a competent

and skilled workforce gives you

a competitive edge.

Construction companies ask me why

it is so important to have a workforce

that is trained to the highest safety

standards. Silly health and safety rules

are often the butt of tabloid news stories.

Health and safety is often thought of

as restrictive and just an added cost.

The best construction companies

understand that staff trained in health

and safety improve site efficiency –

and also make their companies more

attractive to work for from an employee’s

point of view. For the employer there

is the comfort of knowing that an

employee has essential awareness

of working safely on site. On-site

competence also avoids potentially

ruinous court cases – which reassures

investors.

IOSH is the chartered body

for health and safety

professionals. With more than

44,000 members in 120

countries, we’re the world’s

biggest professional health and

safety organisation. Around one

third of our members are in the

construction industry.

We know from our

own research that manufacturing and

construction are still the biggest areas

for demand – generic training for

non-health and safety professionals or

specific training for the profession is

what we do.

Skills and capability lead to a safer

workforce and those skills become

internationally portable. Certificated

training is something that people can

carry with them wherever they work.

This is an advantage, especially with

growth in the Gulf states, India, Nigeria,

Turkey and Russia, which are showing

huge demand supporting housing

infrastructure.

We believe that training is relevant

to everyone. Last year alone, more

than 150,000 people were trained to

our standards. Forward thinking

organisations know that investing

in a culture of care brings advanced

performance through reputation,

resilience and results. Some of the

biggest construction companies

in the world follow these

developments – all of the top 20

construction companies in the

UK and more than half of the top

30 global construction

companies have members

of IOSH working

within them at

senior level. These organisations are

quite clearly taking health and safety

to the heart of their organisation.

As an organisation, our vision is a

world of work that is safe, healthy and

sustainable – to achieve this we work

with a network of training partners who

operate through the world to ensure our

UK framework continues to be one of the

most sought after and trusted.

Our training network extends across

84 countries. The network has 1,850

training centres including construction

companies such as Balfour Beatty and

Bovis Homes.

Earlier this month, the Construction

Skills Certification Scheme (CSCS)

recognised our one-day Working

safely course as an equivalent to a

Level 1 Award in health and safety in a

construction environment. This means

anybody who completes Working Safely

can apply for a CSCS green labourer card

– the card site managers check to ensure

labourer competence on site.

Our UK framework provides

opportunities for UK building firms who

carry these standards, and UK health

and safety standards remain the envy

of the world.

Jan Chmiel (left) is CEO of IOSH

www.iosh.co.uk

Building

for success:

Investing

in a culture

of care

Business Reporter · October 2014 · 13

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

12 · Business Reporter · October 2014

The demolition business,

probably more than

any other sector of

British industry, has made

enormous strides in efficiency,

innovation, safety and

sustainability in recent years.

This is largely due to the efforts

of the people who work at the

centre of the industry, and who

have taken up the challenges

that modern-day demolition

projects now demand.

It used to be that perhaps

just 5 per cent of construction

costs were earmarked for

demolition. In many cases

this has now at least doubled,

as the upper tier of demolition

contractors expand their

scope and take on more of the

builders’ work. For a company

like John F Hunt, the average

cost per contract was between

£2-3million just three years

ago, but today, post-recession,

that has doubled, as larger

and more extensive schemes

have hit the market and the

company’s compass of

operation has increased.

Established in 1982, John

F Hunt Demolition has grown

to become one of the UK’s

largest demolition companies.

It works with developers,

industrialists, contractors and

local authorities throughout

the private and public sectors,

and is at the forefront of new

thinking within the industry.

Increasingly, companies

are being asked not only to

demolish buildings but to

prepare the ground before

construction can commence.

John F Hunt offers a broad

spectrum of services including

ground remediation, piling,

infrastructure and deep-

basement construction

works. Andy Salter, Managing

Director of John F Hunt

Demolition, explains: “Clients

are continually looking for

best value from us. We have

addressed this by focusing on

innovation in engineering and

in the methodology we adopt.

Also, increasing the sphere of

our operations and becoming

more construction-orientated

has allowed us to offer clients

significant cost and

programme advantages.”

Demolition, along with

the rest of UK construction

plc, faces stiff competition

to recruit the best talent;

good people are scarce in

this booming market.

From machine operators to

supervisors, project managers

and surveyors, quality people

are in short supply. Salter

continues: “Some years ago

we took a conscious decision

to improve the calibre of

people we recruit. John F

Hunt is now offer engineering

apprenticeships in its

workshops, and sponsors

talented young people through

university. We also embarked

on an extensive scheme to

expand the knowledge of

our existing staff in related

fields, especially that of Health,

Safety and Quality Systems

management.” This has

obviously paid dividends,

as the company now boasts

one of the best staff retention

rates in its sector.

John Hall, John F

Hunt Group CEO, taking an

overview on the business adds:

“Customers in the plant-hire

sector are no longer willing

to tolerate noisy, out-of-date

and inefficient equipment.

Accordingly, we decided

to initiate a structured

replacement policy, taking

advantage of the exceptionally

low interest rates, and invested

heavily in the most silent,

security assured and

environmentally friendly plant

on the market.” He says: “Now,

with the recession well behind

us we are running exceptional

utilisation rates, as demand

for this new generation

of machine increases.”

Another change Hall

has noticed is a growing

preference for robotics. “In

the demolition sector we have

seen an increasing demand

for robotic machines. This has

been brought about not only

by pressure from health and

safety, but a general desire of

the industry to become more

cost-efficient and improve

working practice in general.

However, our hire business

has seen an excellent upturn

from the specialist tunnelling

sector off the back of Crossrail,

where zero emissions are

so critical. Therefore as

a consequence, we have

virtually doubled our fleet of

robotic demolition machines

over the last 18 months.”

The company currently

employs more than 450

people across its Demolition,

Plant Hire and Asbestos

Consultancy operations. It is at

the heart of the London

construction boom, and is one

of many businesses to be

benefiting from the insatiable

appetite of Far East investors

for London Real Estate.

Hall concludes: “I am often

asked, if as a business we are

now ‘hiking up our rates’ and

the answer is always a

resounding ‘No’. Our current

working margin is exactly

what it was during the

recession. However what we

are trying to do is work in a

more planned and efficient

manner, not taking the

unnecessary risks that have

traditionally seen so many

Demolition and Plant Hire

Contractors fail in the past”

www.johnfhunt.co.uk

Business Reporter · June 2014 · 15

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

A diverse boardroom is reflective of the real world, harbouring different skills, competencies, philosophies and life experiences. It levels the playing field and ultimately improves business decisions.As a big believer in meritocracy in the boardroom, I find it surprising that the increasing rate of women on boards is still very low. In my experience, women are insightful. Given that the information presented at a board meeting is often at a high level and very polished, women show strength in spotting discrep-ancies or planning weaknesses. They drive to understand its underpinnings and inherent value.Additionally, in the technology world, I’ve found women typically think about things in more useable, real-life ways than men do. They put themselves in the shoes of the end-user and think more about how the software may be used to help people in the future. This almost always translates into better, more user-friendly software in the end.

020 3514 5391 www.blackline.com

Women now account for just over 20 per cent of FTSE 100 board positions and it looks like Lord Davies’ target of 25 per cent may well be achieved next year, but the glass ceiling remains firmly intact. Most of these positions are non-executive with limited influence – and the situation in the FTSE 250 is much worse.This is important because diversity of talent is strongly associated with diversity of thought. Research by McKinsey & Co and others has proven the business case: having women in the boardroom drives better business results. More fundamentally, there is a 28 million female customer base in the UK that businesses need to understand and reflect.Recruitment firms can play an important role in helping female talent rise to the top. APSCo (Associa-tion of Professional Staffing Compa-nies) encourages its members to sign a commitment to diversity, and many have developed strategic partnerships with employers to help them take this important agenda forward.

www.apsco.org/why

We need to broaden traditional business values in order to keep women engaged, to draw on their skills and strengths and recognise their contribution to business. We must create and build businesses which are healthier, more fulfilling workplaces that conduct ethical, sustainable and responsible practice. Diversity, in all its forms, matters. This is because the commercial challenges we face often arise from multiple, complex causes and so require multiple points of view to generate solutions. Over the past 15 years, Ashridge Business School has delivered the Masters in Sustainability and Responsibility, which is designed for people who are committed to responsible and ethical leadership to create a more sustainable future. I am delighted that so many of our graduates have been women, and many have gone on to play creative and innovative leadership roles. We all need this kind of responsible, values-aware and imaginative leadership.

www.ashridge.org.uk

Diversity and the benefits it can bring starts at the top of an organisa-tion. A diverse board is more likely to ensure that employees reflect their customer set. Research now suggests that diversity is proven to bring benefits to an organisation, includ-ing increased profits, better share prices and greater innovation.To achieve this, though, we need to break down barriers to create a more diverse leadership. It is common knowledge that we are hard-wired to prefer people who look like us, sound like us and share our interests. Yet hiring in one’s own image is to be avoided, since it can lead to a workforce which doesn’t fully represent our customers or society. Subconsciously, success has a certain shape in our minds, thus, when assessing staff or peers, this shape can dictate how favour-ably (or not) we value someone. These unconscious biases can lead to us making poor decisions, particularly around recruitment, assessment and retention.

[email protected] [email protected]

Despite recent improvements in boardroom gender diversity, the ratio of women to men at executive level remains lamentably low. The talent pipeline in organisations continues to leak women and other forms of diversity struggle to get attention.Boards that recognise the benefits of diversity highlight the fact that different views and thinking leads to better decision-making, and that tackling issues in different ways achieves greater innovation – a diverse board better represents its customers, community and people. These boards are also keen to address the broader issues that cause talented women to leave before they become eligible for appointment. Fairness as a rationale for diversity, and voicing the hope of a trickle-down effect is more prevalent in these companies. Importantly, boardroom behaviour has to change if we are to reap the full benefits of diversity. This requires chairs to get the most from the board by maximising the contribution of every team member.0845 261 0600 [email protected]

The debate Why is boardroom diversity important?

Exp

ertI

nsi

gh

t

Young, enthusiastic and successful…

W omen in physics are rare. However, relatively large numbers of young women start the nanoscience study programme at the Swiss Nanoscience Institute (SNI) at the University of Basel.

One of these is Heidi Potts (far right). In 2008, the 25-year old German citizen started her studies in nanoscience. She successfully completed the numerous lectures and practical projects in physics, chemistry, biology and mathematics that allow an excellent insight into the diverse topics of nanoscale sciences and their applications.

When the time approached to select a topic for the master’s thesis, Heidi did not take the easy route. Instead of applying to one of the numerous research groups at

the SNI in Basel, she pursued her goal to combine a thesis about solar cells with her wish to stay in Canada for a while. Dedicatedly, she scanned publications and the internet and was finally successful at the University of Toronto with Professor Nazir Kherani. He was looking for a candidate who studied ultra-thin silicon solar cells that are more cost-efficient than standard products.

Heidi successfully examined problems related to the subsequent minimisation of the solar cells and suggested ways to prevent them. Not only was her supervising professor impressed by her work but also the SNI, as she was awarded the prize for the best master’s thesis in nanoscale science at the University of Basel in 2013.

In the meantime, Heidi has started her PhD at the EPFL in Lausanne under the supervision of Professor Anna Fontcuberta i Morral. For her thesis, she produces and examines nanowires with novel physical properties. “I feel well prepared for this topic, which is

classically investigated by physicists through my nanoscience studies in Basel and the expertise that I have received during my education,” Heidi said when asked about her work.

[email protected] www.nanoscience.ch

Heidi shows how determination can pay offINDUSTRY VIEW

Therese TuckerCEO and founder BlackLine SystemsAnn Swain

CEO APSCo

Gill ColemanDirector, Ashridge Masters in Sustainability and Responsibility

Gillian ArnoldDirector of Tectre and chair of BCSWomen, part of BCS

Joëlle WarrenExecutive chairmanWarren Partners

Bu

sin

ess

Zo

ne

Wo

men

in b

usi

nes

s In

du

stry

vie

w

Three top tips

G overnment attention has been a key factor in the rise in the number of female executives who hold board-level positions in FTSE companies. But has this been the only significant factor driving change, and if so is it cause for concern?A recent Harvard Business Review highlights that companies have three different approaches to diversity. Some take the view that it is fair and therefore the right thing to do. For others the motivation is more commercial, especially in markets that have a high proportion of female customers such as retail. In these cases a greater proportion of female executives at board-level provides better insight and access to their customer base. Finally there are those organisations who embrace diversity because they have found it improves decision-making, drives innovation and generates genuine commercial advantage.

If these are the reasons for the positive shift in the number of female executives at board level, then we are making real progress. On the other hand, if the primary reason for the shift is government pressure then the underlying behaviours and barriers that prevent greater diversity at board level remain largely unchanged. This would mean that diversity is little more than window dressing and companies will not reap the benefits that genuine diversity provides.Chairs play a pivotal role in ensuring that female board executives’ views and recommendations are heard and given due consideration. Indeed, culture and behaviours can really change when boards contain three or more women. Chairs need to ensure that the benefits of diversity manifest themselves in the board’s motivations, decisions and business outcomes.

Successful boards have a balanced

and broad perspective that brings customers, staff and investors with them. As boards come under increasing customer, regulatory and investor scrutiny, how and why boards do things is important, not just what they do, starkly illustrated by the recent company tax debate.Speaking at the recent CISI annual conference and listening to the views of politicians such as Dr Vince Cable, business leaders such as Sir Richard Lambert, academics such as Sir Andrew Likierman and investors such as Stephen Cohen led me to conclude that women could contribute so much more if boards more readily recognised that they can add value because of their gender rather than in spite of it.

Joëlle Warren is executive chairman of Warren Partners 0845 261 0600 www.warrenpartners.co.ukIn focus: Creating a level playing field

A t Hermes our people strategy focuses on delivering the leadership and talent our business needs to achieve planned business growth and success.

A third of the main board positions are held by women at Hermes, as are a third of

all senior management positions. In addition, more than 60 per cent

of our field team leaders are women. While there is still work to be done, women are extremely well represented in our business, well above the industry norm.We have achieved

this by trying to create a level playing field for everyone by having an

environment whereby employees of both genders can flourish. We

recognise diversity across the business, resulting in a workforce made up of experienced career people, new entrants, diverse ethnicity, women in leadership roles and those with disability status.

We are positively working to develop our women leaders through our Women’s Network, promoting specific development, community involvement and strengthening the different contributions that gender can play in our business and the areas in which we work. Our network is open to all genders and forms part of our wider agenda on diversity in the workplace.

We also try to offer flexible and part-time working whenever feasible, but this is designed to benefit both male and female employees. Government legislation is also moving in this direction, recognising that the traditional male/female family roles are no longer always the norm.At Hermes we like to create champions who can help inspire others and yes, some of our best examples are women.

Carole Woodhead (inset, left) is CEO at Hermes

communication@ hermes-europe.co.uk

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

14 · Business Reporter · June 2014

How can talented women accelerate their progress through the organisational pipeline? Since 2008 my executive coaching

company has run Women’s Impact Programmes for senior and high-potential women.

These are the top three behaviours we help them develop: • Set boundaries. Most

women work incredibly hard and struggle to say no. Many are simply too accommodating, often feeling like the ‘squashed filling’ in a sandwich of demands from above and below. We help them focus on doing what only they can do. This means

learning to handle difficult conversations assertively, and better delegation.

• Develop leadership presence. Women tend to under-value themselves – fewer apply for promo-tion or pay rises. In

meetings, self-deprecating language conveys a lack of confidence. We help women articulate their ‘leadership brand’ and transform their communi-cation skills without losing their authenticity.

• Manage upwards. Women often keep a low profile, not sharing achievements or aspirations. We help women engage and impress senior decision-makers and turn them into powerful career sponsors.

As unconscious gender bias is addressed, more busi-nesses will recognise the value women bring. Helping capable women maximise their self-assurance, impact and skill is an equally vital part of achieving change.

Dr Catherine Sandler runs Sandler Consulting +44 (0)20 7723 5525 www.sandlerconsulting.

co.uk

“ Sheryl Sandberg In the future, there will be no female leaders. There will just be leaders.

Representing women above the standard

The future Statistics don’t tell the whole story...

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE DAILY TELEGRAPH

Exit strategiesBusiness Reporter · June 2014

Find us online: business-reporter.co.uk Follow us on twitter: @biznessreporter4

Exp

ertInsight

Planning should start at least a year before

an exit in order to get the best tax breaks

and maximum value from a deal when a

business is sold. Ann-Maree Dunn, tax partner at

accounting fi rm WMT, says: “One of the key tax

issues for exit strategies in family businesses is

accessing entrepreneur’s relief.

“Entrepreneur’s relief is a generous rate of tax

for people that sell their businesses. Maximising

this means sellers can pay 10 per cent tax on their

gains, instead of the standard capital gains tax rate

of 28 per cent.” For larger businesses, planning may

include making sure several directors are able to

benefi t from this relief.

What planning the business undertakes to

get the best tax break in an exit strategy entirely

depends on the owners and what they want to sell.

Andrew Williamson, corporate fi nance partner at

WMT, says: “The way the exit is structured always

varies, depending on circumstances. But there are

some generic strategies you have to think about to

see whether they are applicable. These include: how

the shares are held, how the business is structured,

where the trade is, what buyers

are interested in, and what the

key assets in the business are.”

Dunn explains that many

people who own their own

company are looking to sell

only parts of it. They may have

property tied up in the business

that they want to keep, or

shareholdings that are spread fairly widely across

family members. She explains that it is important

to get the ownership structure of a business correct,

so the assets they want to keep can be held as

separate entities outside the sale process. This will

ensure they will not impact on the full value for sale.

Dunn adds that this process can be lengthy.

“The earlier business owners start planning their

exit the better,” she says. “Five years ahead of the

planned exit is a good benchmark.” The minimum

she recommends is 12 to 24 months, which “will

prevent business owners falling into bear traps

or having problems that could have been fi xed if

they had time, but are impossible to resolve closer

to sale”. If a business does not plan, it risks missing

out on tax relief and not getting the best price.

It is also important to keep your options open.

Buyers can appear unexpectedly before a planned

exit date, and often the best deals can be within the

existing management team. Management can also

create tax breaks for the company when exiting by

o� ering share option schemes. “Your existing

management team knows the business inside and

out,” Dunn says. “A lot of people have a strong sense

of loyalty to their own team that will help them take

the business forward.”

According to Williamson, a plan for an exit

strategy requires ingenuity, and businesses should

“make sure they are working with advisers who

look at the situation from every direction to fi nd the

right route for both the owner and the business”.

So, if you are thinking of your exit strategy, plan

early, plan well and be prepared to fl ex your strategy

to make sure you and your business benefi t from

tax breaks and obtain the maximum value in a sale.

0800 158 5829

www.wmtlllp.com

Don’t miss out on entrepreneur’s reliefINDUSTRY VIEW

Planning ahead to getmaximum value

Exp

ertInsight

The term “exit strategy” has

long created images most

entrepreneurs will identify with

– a lump sum, heading o� into the sun

and putting their feet up after a hard slog

in the rat race.

For many SME directors, this leads

to a process which involves

getting their house in order.

However, simply ensuring

the books are in a healthy

state and legalities have been

considered is not enough.

What many SME

owners fail to consider

are their own personal

fi nancial needs – what

they will need to fund

either a lifestyle with

existing commitments, or

alternatively, what they may

need in order to embark on a

new venture, or just retire.

For most, it is failing to consider this

ahead of time that can result in not

achieving the right price for the business.

It’s important to remember that it’s not

always about keeping hold of the business

until it reaches an ideal value. To reach

that point, many business owners could

work signifi cantly longer than they might

otherwise want to. Instead, they should

recognise the amount of money they

need to enjoy the lifestyle they want, and

work specifi cally to achieve that goal.

Owner-managers for the most part are

so involved in the day-to-day running of

the business that planning ahead isn’t

always at the forefront of their minds.

But with an exit strategy it is important

they view their business much like an

employee will view a pension – ensuring

they understand what it is they need from

the sale as a means of living when they

hand over the keys.

This foresight also helps identify

where the business is currently at

fi nancially, and where it needs to be in

the future to achieve this required value.

Working with a corporate fi nance team,

business owners can then assess whether

the sale value they require is realistic.

If the answer to that is no, taking

professional advice on how to build

their business through acquisitions or

investment will be key to ensuring that,

when the time is right, the business

will stand a fi ghting chance of being

ripe for sale.

During this time of planning, it is

also important to take a step back and

analyse the strengths and weaknesses

of the business in order to be prepared for

the negotiation phase. Business owners

should put themselves in the mindset

of the buyer and look to accentuate the

positives, but also identify where there is

room for improvement. Failure to prepare

all the relevant information about the

company will give the buyer leverage to

reduce the value of the business – and no

one wants to haggle over their nest egg.

Je� Barber (left) is a partner at BTG

Corporate Finance

0845 678 2902

je� .barber@btg-corporatefi nance.com

INDUSTRY VIEW

to a process which involves

getting their house in order.

However, simply ensuring

the books are in a healthy

state and legalities have been

considered is not enough.

either a lifestyle with

existing commitments, or

alternatively, what they may

need in order to embark on a

new venture, or just retire.

SME owners must consider what they’ll need to fund ‘life after business’ before heading for the exit

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

Find us online: business-reporter.co.uk | Follow us on Twitter: @biznessreporter

Business Reporter · September 2014

4 Business Turnaround & Transformation

Exp

ertInsight

Admit it, you looked at this

article’s title and – unless you’re

a practitioner in turnaround –

are going to turn the page or stop reading.

You expect a homily about coping with

adversity in business and quite frankly, you

wouldn’t want to be in the same room with

companies “in trouble”. That’s a perfectly

understandable reaction, given some

interpretations of the “t-word”. Instead,

let’s talk about people, because they, in a

nutshell, are what true turnaround is about.

In 2013, there were 4.9 million

businesses in the UK; more than 99 per

cent small or medium-sized businesses

employing up to 249 people. Calling these

companies SMEs somehow diminishes

their economic and social importance,

relative to the charmed circle of publicly

quoted companies. It is the people who run

these SME companies – and the people

working in them – who have a major stake

and role in bringing about the sustained

economic recovery, and one that can

benefi t the majority of people in the UK.

Recessionary hangoverSome features of our recessionary hangover

concern policymakers such as the Bank

of England and su� ciently to restrain any

sudden or material hike in interest rates.

First, there are changed employment

patterns, as there are more in work but on

short-term contacts or working part time.

There is a large, puzzling shortfall in

productivity, which underpins estimates

of the economy’s ability to grow without

generating too much infl ation. Some

analysts attribute the lack of real growth

in wages to the UK’s low productivity. Low

wages mean less discretionary spending

and more hardship. Overall, British

workers now produce about a fi fth less for

every hour worked than any other leading

G7 nation. There is also the inequality

between regional share and the City and

the London faster bounce back

from 2008.

As sharp as the north-

south divide is the relative

fi scal and fi nancial

treatment of SMEs and

tradeable stocks. IFT

research has shown that

even back in 2012, large

companies thought lending

conditions were improving.

Smaller ones faced steeper

fees, shorter term lengths

and higher interest rates.

Then there’s reward in proportion

to value. The average FTSE 100 chief

executive’s pay increased from £4.1million

to £4.7million in 2013, said a July report

from the non-partisan High Pay Centre.

With executive pay in FTSE companies

almost 180 times more than the average

worker’s, is it really any wonder big business

has failed to re-establish trust in the wake of

recession? In the face of a rapidly widening

inequality gap, in which the “squeezed

middle” has become the disa¢ ected new

working class, are we kidding ourselves that

this situation is sustainable? The High Pay

Centre says: “A maximum pay ratio would

recognise the important principle that all

workers should share in a company’s

success and that gaps between those at the

top and low and middle earners cannot just

get wider and wider.”

Ignorance inhibits growthSMEs have the potential to change this

unappealing economic and social

landscape. According to the FT, “the

biggest bar to growth remains ignorance”.

A recent study of 300 SMEs, commissioned

by Money & Co. claimed UK SMEs had an

annual unmet need for fi nance of £4.3bn.

Whether for growing or turning around

companies, it’s never an issue for FTSE

businesses. But SMEs have found it

especially tough to get access to a¢ ordable

capital and a level playing fi eld on which to

invest. Yet the SME survivors, who have

ducked, dived and adapted through the

lean years, are well placed to deliver the

economic boost and inclusivity we need in

the UK. SMEs are culturally signifi cant too.

Of SME employers, according to The

Department for Business, Innovation and

Skills (BIS), 19 per cent were led by women

in 2012, fi ve points up on 2010. A further 23

per cent of SME employers were equally led

by men and women, meaning that 42 per

cent were part-led by women. In other

words, it is a more balanced mix of talents,

often refl ecting family ownership.

SMEs boost the wider economySMEs are geographically essential to

spreading the benefi ts of growth and

prosperity. It is clear that they could do so

faster and less riskily by harnessing

the skills and experience of

accredited turnaround

professionals. Turnaround is

like an advanced driving test

of business, and it’s only a

success if it’s sustainable.

Parachuting in for six months,

while a company is in crisis to do

a fi nancial fi x should not be

the end-game, because

at best it creates a

watershed moment

during which turnaround can be

completed. A short, sharp turnaround can

fi x a company so it survives – but for how

long? Insolvency has long been recognised

as value-destructive, and the jobs it creates

are not necessarily long term. So how will

latent but stagnating value be reclaimed?

True turnaround is, in IFT’s defi nition,

“the sustainable return to viability of an

underperforming organisation”.

Underperforming could just as easily be an

organisation needing to scale up, or grasp

the opportunity of internationalising, or

integrating an acquisition, or adapting to

new distribution channels and technologies.

It’s a step-change that needs to be executed

at speed and with simplicity and focus.

Accreditation countsAt the Institute for Turnaround (IFT) we

have always been committed to insisting

that our members prove their credentials

to do this stretching work, not only by virtue

of paper-based qualifi cations, but by an

assessment of performance across 40 core

competencies. There are three independently

validated case studies, the testimony of

two appropriate sponsors who reference

the applicant’s longer career, and a testing

interview that justifi es our application

process as being described as robust,

transparent and consistent. You cannot just

join IFT by paying a subscription, you have

to prove worthy of the brand. After all, you

wouldn’t entrust your company’s brand to

an unproven quantity. Year-on-year, each

member is required to complete an annual

declaration and to satisfy the institute

that relevant Continuing Professional

Development (CPD) has been completed.

IFT established the world’s fi rst Practising

Certifi cate for Turnaround Professionals

and this carries extra requirement in terms

of CPD, professional indemnity insurance,

independent auditing and so on.

There are benefits too, for the turnaround

professionals who use the transformative

aspects of their skills. Diversifying their

application away from only stressed and

distressed situations, broadens their

options at di¢ erent times in the

economy’s and companies’ existence.

Academic Dr Andy Bass and I believe

that a portfolio of engagements at various

phases in the business lifecycle increases

the impact of the work the accredited

practitioners are doing because:

• You transfer learning and experience

• You work in a broader range of sectors

and facilitate cross-pollination of ideas

• You are likely to empower management

in a way you cannot when you are the

focus of a single deep engagement

Business is peopleThose in the turnaround community are

uniquely placed to lead the necessary shift

in British business: the exciting thought is

that it’s a perspective-only shift. The skills

of turnaround professionals can add great

value in a broad range of phases, and it can

be personally and professionally rewarding

for accredited professionals to apply them

more broadly. Ensuring the survival of an

enterprise is a crucial goal if it is potentially

viable. However, open up your thinking

and get ahead of the competition by getting

the right turnaround practitioner alongside.

He or she should have the knowledge and

experience to make your company

go further and help it to thrive.

Ultimately, UK plc is not going to recover

through fi nancial restructurings alone.

We need people to focus, operate and

grow real businesses. The only way to

drive sustainable turnaround is by winning

hearts and minds and by changing

behaviours and culture. That is why

regulators in the fi nancial services sector

are so fixated on principles-based regulation

– because rulebooks document obstacles

that can be navigated around, whereas

principles deal with high-level behaviours,

cultural norms and standards. Turnaround,

from whatever starting position, sets

out a road map towards better business

and economic success. In a nutshell,

turnaround is about one thing: people.

So let’s hear it for specially magnifi cent

enterprises, the SMEs that can enrich the

UK economically, socially and culturally.

The savvy ones know that with turnaround

knowledge and resources, they can

do it faster, cheaper and smarter.

Christine Elliott (left) is the chief

executive for the Institute for Turnaround

+44 20 3102 7710

www.instituteforturnaround.com

SMEs lead the way to restructuring our economyINDUSTRY VIEW

business-reporter.co.uk | Follow us on Twitter: @biznessreporter

executive’s pay increased from £4.1million

worker’s, is it really any wonder big business

has failed to re-establish trust in the wake of

recession? In the face of a rapidly widening watershed moment

during which turnaround can be the impact of the work the accredited

Turnaround in a nutshell

the London faster bounce back

As sharp as the north-

south divide is the relative

treatment of SMEs and

research has shown that

even back in 2012, large

companies thought lending

conditions were improving.

Smaller ones faced steeper

fees, shorter term lengths

prosperity. It is clear that they could do so

faster and less riskily by harnessing

the skills and experience of

accredited turnaround

professionals. Turnaround is

like an advanced driving test

of business, and it’s only a

success if it’s sustainable.

Parachuting in for six months,

while a company is in crisis to do

a fi nancial fi x should not be

the end-game, because

17Risk & fraudBusiness Reporter · August 2014AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

Like us: www.facebook.com/biznessreporter Find us online: business-reporter.co.uk

Exp

ertInsight

Chase Paymentech Europe Limited, trading as Chase Paymentech, is a subsidiary of JPMorgan Chase Bank, N.A. and is regulated by the Central Bank of Ireland. ©2014, Chase Paymentech Europe Limited. All rights reserved. The information herein does not take into account individual client circumstances, objectives or needs and is not intended as a recommendation of a particular product or strategy to particular clients and any recipient of this document shall make its own independent decision. This document and the information provided herein may not be copied, published, or used, in whole or in part, for any purpose other than expressly authorised by Chase Paymentech Europe Limited.

Chase Paymentech Europe Limited, trading as Chase Paymentech, is a subsidiary of JPMorgan Chase Bank, N.A. and is regulated by the Central Bank of Ireland. ©2014, Chase Paymentech Europe Limited. All rights reserved. The information herein does not take into account individual client circumstances, objectives or needs and is not intended as a recommendation of a particular product or strategy to particular clients and any recipient of this document shall make its own independent decision. This document and the information provided herein may not be copied, published, or used, in whole or in part, for any purpose other than expressly authorised by Chase Paymentech Europe Limited.

Fraud is continually evolving. It can hamper prospects

for growth, restrict profi tability and increase

overheads. While there is no simple solution to this

threat, there are some strategies to help mitigate fraud.

1 Unmask even the most determined fraudsters Proxy piercing and device fi ngerprinting can help

pinpoint a customer’s true location, enabling retailers

to establish automated rules to fi lter and block suspected

transactions.

2 Manage risks country-by-country IP geo-location tools o� er retailers the ability to identify

threats and block transactions from high-risk countries.

3 Monitor and review multiple channels Analysis of payment data can help identify fraud patterns

per sales channels.

4 Use your data to detect “clean fraud”Reviewing fraud-related chargebacks across criteria such

as country, product and channel may help to spot trends

and identify patterns.

5 Track potential friendly fraud An order history based on chargeback analysis can be used

to help prevent further fraudulent attempts from the same

customer, card number or shipping address.

Finding the right balance between fraud prevention and

a seamless shopping experience is key for success. Your

payment acquirer can analyse your fraud and payment

data to help identify patterns and highlight potential

improvements.

0845 399 1120

chasepaymentech.co.uk

INDUSTRY VIEW

Five strategies to combat online fraud

COMPANIES face new challenges as kidnapping becomes “ugly and organised” in certain parts of the world, an expert warns. Nick Powis, a crisis consultancy manager at Marsh, an insurer that covers kidnapping, says that firms have good practices in the more established economies but that the greatest potential – and some of the biggest risks – can be found in the newer, “frontier” markets.

“We know about places like Pakistan, Iraq and Syria,” he says. “People really do dig in and spend a lot of money on their front-line mitigation. In Iraq there’s a lot of depth to people’s security layers. People do very often have good housekeeping in these territories. But you have less research in emerging territories like Mozambique.”

He warns that in areas such as these, the threat of kidnapping is becoming more of a concern. “There’s kidnapping that’s getting ugly and organised,” he says. “That could expand into the oil and gas sector. It can be quite challenging.”

He notes that kidnapping in newer markets can have a variety of forms and causes. “The spectrum of kidnapping is quite wide,” he says. “It could come for a number of reasons. It can come as a result of blackmail and extortion or be more spontaneous, or it can be totally targeted and the kidnappers could go after a key person in the business.”

And he claims that while certain industries such as the oil and gas sector have significant experience in dealing with kidnapping, some companies can leave their preparations “far too late”.

He says: “You should always map out your business and key relationships. But firms think it’s always a cost and never a benefit, so that layer tends to be added on far too late. Often it’s an incident or a near miss that causes them to take action.”

A number of the “frontier” markets – which are seen as having potential for huge growth but not being as stable as more developed options such as the BRICs – have been tainted by kidnapping.

Mozambique may have had a number of incidents in recent years, but it is not alone. Nigeria’s economic potential is attracting attention, but Boko Haram, a militant Islamist group, has made waves with a series of abductions, as well as bombings and murders.

Earlier this year more than 200 schoolgirls were abducted, with Boko Haram claiming responsibility. Bring Back Our Girls, a global campaign, has been calling for their return since then.

A number of the frontier markets are attracting businesses because of their abundant natural resources and the wealth rapidly generated from these. But Powis warns that this can attract “trouble”.

“The mining industry, the prospecting industry and oil and gas, they have got a lot of experience,” he says. “Historically it’s a bit of a pantomime. Wherever you find oil, you find trouble.”

He says some less experienced industries may need to learn quickly if they want to avoid problems in unpredictable countries – and that individuals can sometimes create risks through “ad hoc” travel. “These industries are quite strategic and they do drive that and they are willing to pay for it,” he says. “But you also get the financial

services sector and they get a portfolio and it might involve these markets.

“I have also dealt with a couple of cases where businessmen and women may go to one territory on a task and then to another territory in an unplanned move. It can be somewhat ad hoc. They go from a somewhat benign area to deeper water. That sort of thing happens a lot, though it doesn’t always end up causing problems.”

Some industries seem to be taking kidnapping, and broader geopolitical risk, into account. A recent report, “Emerging and frontier markets: assessing risk and opportunity”, published by Cushman and Wakefield, a real estate firm, warns about the threats in newer markets.

It reads: “Recent political unrest in the Middle East and across the world has increased the security risks related to both corporate assets and also employees, especially in the emerging and frontier markets.

“Existing political systems in many countries are under pressure and states with poor governance and cultural tensions are susceptible to terrorism and other crimes, such as piracy, kidnapping and bombing. Operators of property must redesign and continually review their approach to many of these markets.”

For other industries, risks such as kidnapping are becoming more prominent. But Howis believes that some of these sectors are more experienced than people realise. “There are issues around deployment in a supply chain,” he says. “Supply chain management has probably got deeper and wider, but the industry has dealt with issues like these for a long time.”

Kidnapping: the next big riskBy Dave BaxterCorporate kidnapping is

already a danger in the extractive industries

W 262mm x H 337.8mm£21,995

Full page

W 262mm x H 159.5mm£12,095

W 262mm x H 46.5mm £6,250

Front page

banner Sixth page

Eighth page

W 40mm x H 337.8mm£4,250

W 84.7mm x H 120.3mm£4,000

DISTRIBUTED WITHIN CITY AM, PRODUCED AND PUBLISHED BY LYONSDOWN WHICH TAKES SOLE RESPONSIBILITY FOR THE CONTENTS

September 2014 CONFERENCES & EVENTS

YOUR AWARDWINNING SUPPLEMENT

September 2014 CONFERENCES & EVENTS

YOUR AWARDWINNING SUPPLEMENT

Heston’s high fi ve

The chef’s top tips on how to cater for the perfect eventPage 3

Lyonsdown Ltd, Shakespeare House, 7 Shakespeare Road, London N3 1XE www.business-reporter.co.uk | +44 (0)20 8349 4363

W 262mm x H 105mm£8,245

Third page