iod north west winter 2012

EVENTS DIARY: See p10, with news of the IoD North West Conference 2013 on p8

North West Winter 2012www.iod.com

IoD North West’s regional Chairman, tony Attard, and regional Director Darrell Matthews were delighted to host a celebratory lunch for this year’s winners in the Directors of the Year awards on the 28th of November.

While an opportunity to celebrate their achievements, it was also the ideal chance to tap into the expertise and knowledge base of some of the region’s finest business brains.

We were delighted to be joined by representatives from Weightmans, our award sponsors. As the conversation flowed, so did their opinions as to the future direction of business and what changes need to be made to ensure it can flourish in UK plc.

Here, and inside, we offer some highlights of the conversation.

Tony Attard: Thank you all for joining us today to celebrate your recent award wins and to discuss the issues keeping us all up at night

as business directors. I’d like to begin with a question to John McGuire – are you looking at increasing on-shore sourcing for N. Brown Group?

John McGuire: Fast fashion is the fastest growing segment in my industry – just look at the success of Asos – but in order to have these responsive, quick supply lines you need to have the expertise and ability.

This isn’t so easily found here in the UK, but increasing our on-shore sourcing is currently a big focus for us.

John Schorah: I think the tides are turning on off-shore sourcing – if businesses source products from abroad purely for cost reasons they won’t succeed. The need for stringent quality control, for example – that isn’t easy when sourcing produce internationally.

Tony Attard: so there are obvious benefits to on-shore sourcing – what are the biggest

barriers to this?Chris Eccles: When we originally started the

business we outsourced all safety critical products to companies in the UK, but with the rate of business growth we experienced, this wasn’t sustainable as the capacity to make the quantities needed just wasn’t there.

We explored international options but ultimately decided to invest in building our own internal manufacturing capability – creating 15 jobs in the process.

Continued on pages 6-7 » » »

IoD winners unite to tackle business’s biggest issues

Dear Santa…..It’s clear that we live in an uncertain world but in

uncertainty there is value. It’s never been a better time to invest – to acquire new businesses at very low multiples or to invest in new technology when we have historically low interest rates.

When all of your competitors are waiting for more clarity before making decisions it’s possible to dramatically gain market share.

recessions are interesting economic and management strength tests. Not many companies come out of them stronger or better equipped but those that do can grow considerably as a consequence when the recession is over.

There are many articles, research papers and management books available that will explain those all-important business strategies to guide you along the right path to making the right decision, but it’s often a question of making the right calls at the right time, and that is harder when you are not following the herd.

Communication of business strategy is also key to ensuring its successful application; this is true at business level and at Government level, too. The business community needs to have continuity and clarity in Government policy. We do not want turbulence when taking strategic decisions.

But it’s Christmas and I hope for a week or so we can forget the problems of the world and enjoy time spent with family and friends.

With that in mind, and in the great tradition of Christmas, I thought that it may be nice to make my very own personal ‘10-point Christmas wish list’ of all the good economic things that I would like the Government to give us in 2013.

reduce VAt to 17.5 per cent generally and eliminating VAt completely from the labour

value of construction work – we know that this is an unfair tax and would help the construction industry.

Giving those British companies that export, corporation tax credits. It will act as an

encouragement both to those companies and to others to follow their lead.

Withdraw airport taxation for all British exporters travelling the world to sell British goods.

reduce the high rate of income tax to 40 per cent and allowing high rate tax payers to give the

additional 10 per cent to good causes who can administer welfare much better than the state.

eliminate the advanced payment of corporation tax by fast-growing successful companies, thus

allowing them to invest their cash flow into their businesses.

Formulate a comprehensive and sound aviation policy that includes the building of the new

runway at heathrow, allowing us to compete with other global economies.

repeal the irrational immigration laws that pander to popular opinion yet restrict highly

skilled workers from the UK.

Create a new UK business bank – the one that has been talked about for so long.

establish a clear energy policy that reduces costs to business and helps the general public.

Finally, let’s see a dynamic and resourceful Government that is not afraid of taking bold

steps to enable change.

I hope that these points will add to your Christmas cheer. If not, and you see me in the pub, you can add to mine by buying me a scotch and soda.

Wishing you all a happy Christmas and a very prosperous New Year.

Tony Attard Chairman

IoD North West

02 | IoD North West Winter 2012

Sponsorship opportunities: Call the IoD Office on 0161 247 7693

The winner of the IoD North West/Bruntwood quarterly business card drop is Ian Brammer, managing director of NWM Consultancy.

Ian wins a bottle of Champagne courtesy of the IoD North West’s hosts, Bruntwood.

enter the draw for the next quarter by leaving your business card in the Bruntwood Box next time you visit the Manchester Directors’ Lounge.

Members’ car park offerDIsCoUNt car parking is now available for members at NCP Chorlton street. Parking for up to 12 hours is now just £5.80.

to claim this offer ensure you validate your parking ticket at the Ground Floor reception of City tower, before proceeding back to the car park.

to find the car park...From the hub in City tower• Depart via New York St• Turn right on to Portland St,

cross the road• Turn left into Chorlton St• You will find NCP Parking on

your right.

Inbrief

Ian to have Champagne Christmas celebration

Keep up-to-dateon Twitter at @IoD NorthWest

and our exclusive IoD North West LinkedIn group

Chair’s Welcome

My Christmas list to the Government for economic recovery

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Winter 2012 IoD North West | 03

Link up with other Members at our exclusive LinkedIn group: IoD North West

IoD North West was saddened to hear news of the sad death of Terry Bland of Gödel Technologies. Terry was involved in the Young Directors Forum for several years and made a major contribution to the IoD in that period.

We were also recently informed of the passing of a long-standing member, Dr

Richard Gosling. Dr Gosling had recently completed 50 continuous years of membership of the IoD, and was presented with a certificate to commemorate this landmark at last year’s Director of the Year Awards.

Our thoughts go to their families and colleagues.

We CoMe to the close of 2012, and most of us will probably be taking a deep breath over the festive break, ready to launch into 2013!

Indicators are that there will be some economic growth in the next 12 months, but it may need chasing. Businesses can spend vital resource trying to find routes to market, the right contacts or advice on new revenue streams.

We are planning our calendar of events to help members thrive – through networking contacts and information gained at each event – to remove some of the ‘footwork’ of expansion, and reduce the element of luck.

our IoD North West Conference in May will showcase the most successful business leaders, telling all about the ‘secret of my success’. our

Women Directors’ forum in March will focus on how more women can be ready for boardroom positions, and we also have events opening markets in the Isle of Man and a session with eric Pickles to find out the latest Coalition Government thinking on planning and regulation.

Keep an eye on the events Diary from page 9, and we will endeavour to help members thrive in 2013.

We hope the rest of this magazine is also full of helpful information, from advice for directors from George Davies LLP on page 23 to articles on ‘Captives’ from Deloitte on Page 24.

Finally, enjoy the holiday season, and I look forward to seeing you all next year.

Message from the Regional Director

13 – lucky for some?

Darrell MatthewsRegional Director,

IoD North West

UK trade and Investment runs subsidised overseas trips for businesses that want a helping hand in making contacts in new markets.

During a recent discussion, Clive Drinkwater, regional director, UKtI, asked where IoD members were looking to expand. Clive explains more: “There are plenty of trade visits to China and the other BrIC countries – but where are you experiencing difficulty, or which country is on the business wish list as an export market?”

The IoD’s Darrell Matthews added: “I would love to hear from members regarding any countries where they need that expertise from UKtI.

“I am willing to work with Clive to arrange a trade visit if we get enough interest in a specific country or area. UKtI are experts at opening doors and making connections in foreign markets – so where would you wish to expand?”

“I’m not looking to duplicate other trips to China or India – I would love to hear about the specialist regions that may not be so well served. Drop me a line at [email protected] and we will collate replies”.

Where in the world…?

“There are plenty of trade visits to China and the other BRIC countries – but where are you experiencing difficulty, or which country is on the business wish list as an export market?”

Sad news on two well-known members


Follow us on Twitter: @IoDNorthWest

PoLICY VoICe, the IoD’s public policy panel, has been named ‘european Panel of the Year 2012’ in the annual awards programme run by international market research agency Vision Critical.

The competition selected regional winners from the agency’s 500 online panels worldwide. Policy Voice saw off competition from AsDA, CBs outdoor and the Discovery Channel to land the european award, and was also shortlisted for the overall global award.

The judges commented: “It was great to see a panel which showed so much passion and enthusiasm.

“It was evident that members’ opinions were used not only to drive policy changes in Government and the media, but improvements to the panel itself. Policy Voice

showed dedication to continue to develop the panel, both in the short-term and long-term, and demonstrated innovative ways of recruiting and engaging.

“The IoD was an easy choice as winner!”Mike Harris, head of policy development

at the IoD, said: “Being recognised as ‘best in class’ is testament to the outstanding input members give us every month. Policy Voice is vital to the fulfilment of the IoD’s mission

to represent members to the highest levels – the panel allows us to deliver their views into Downing street, Parliament and the national media. But we couldn’t do any of this without the members who give so generously of their time. A huge thanks to everyone on the panel.”

Members only can join in at http://www.iod.com/Influencing/Policy-Voice, or see below for more details

Did you help to win Award?

The IoD’s Policy Voice is our way of knowing what you think.Join 150 other members from across the North West in giving us your opinions on key issues through Policy Voice.

one of the central missions of the IoD is to represent the views of its members to Government, campaigning for the big decisions that will deliver the business environment you need to thrive.

The strength of that representation relies fundamentally on the input from

IoD members. Your views and opinions underpin every report we publish and every Government consultation we respond to. Launched in 2008, Policy Voice is the IoD’s public policy panel – and one of the main mechanisms allowing directors to feed their views directly to the Director-General and his policy team.

The panel has also attracted significant media coverage, with the press using results as an indication of business people’s

attitudes to the political and economic climate.

Although Policy Voice already has over 3,000 members, we want many more directors to join the panel to help us exert the maximum influence possible on Government decision-making.

Joining is easy – we simply ask you to complete a short questionnaire that should take

just a few minutes of your time. once registered as a member of Policy Voice, we will send you a short online survey on a live business issue once a month

Please help us make the business voice heard and ensure that those that matter know what you think.

Your support and input is vital and makes a difference.

IoD’s authoritative public policy panel is looking for new members to help form future strategies that will boost business

More about... Joining Policy Voice

Want to know more?To join Policy Voice, please visit www.iod.com/policyvoice

DUrING these challenging economic times and following recent energy price rises, now is the time to act and find savings wherever possible.

The IoD Energy Switching Service, provided by energyhelpline, can help members reduce their gas and electricity bills. A dedicated team of energy experts will search the vast majority of suppliers on your behalf, to find you competitive rates – saving you both time and money.

Businesses could save over £1,000 a year*, which could make a considerable impact to your overheads. All industry types can benefit from this service and recent successes include:

• a sandwich maker, saving £863 per year• a nursery school, saving £1,127 per year• an architect’s firm, saving £4,471 per year

Many businesses are unknowingly paying over the odds for their energy needs, or may think that it is too difficult and time-consuming to enter negotiations with suppliers. This service takes care of the hard work for you and can often

access special rates that aren’t available by going direct to the supplier yourself.

to save on both your business and domestic energy bills, use this free service and get a no obligation quote today:

t: 0800 634 5194 (business energy)t: 0800 634 3875 (domestic energy)w: www.iod.com/energy* At least 10 per cent of businesses that switched

using energyhelpline between May – August 2011 saved over £1,000 and at least 10 per cent of domestic households that switched between January 2011 – March 2012 saved over £300.

Save money on your energy bills

Our win: IoD’s Mike Harris and Alexander Ehmann

accept the award


Keep up-to-date with events news and membership offers – see www.iod.com

A BUrY company which manufactures airbags for the automotive industry was the overall winner of the North of england excellence Awards 2012 (Noee).

Milliken European Airbag Products was named Business of the Year and also won special Awards for Lean and for high Growth. The business is part of Milliken Industrials, which has been operating in Bury since 1964 and manufacturing airbags since 1994.

David teale, chief executive of Noee, which organises the awards said: “our winners are all examples of outstanding Northern businesses committed to best practice and innovation.

“This year we have seen a record number of awards applications and are detecting an increased interest by companies in using the

Restructure, re-focus and grow.BTG Restructuring, a division of Begbies Traynor Group, has an established track record in helping businesses address the operational and financial challenges that hinder corporate performance.

Below is an example of a recent appointment.

BackgroundA group of companies with a combined turnover of £12m that recently exited from the retail market to focus on networks. Although cash generative, the business consistently underperformed and missed forecasts.Situation on Appointment• ThebusinesshadsignificantCrownarrears.• Theirfinancialmodelwascomplex,andtheyhadaweakfinancefunction.

• Minimal security was available for a secured lender in a formal insolvency situation.

ApproachThree independent Business Reviews (IBRs) were undertaken on behalf of the directors over an 18 month period. The main objective was to reduce the Bank’s exposure through continued support and funding, whilst assessing the viability of the business to trade. Tax advisors were instructed to secure aTimetoPayagreement,whilstourCorporateFinanceteamwere retained to identify any potential purchasers.OutcomeOur multidisciplinary team worked together to achieve reduced Bank exposure by 60 per cent over the 18 months, a solvent sale of one subsidiary, the sale of business and assets of another subsidiary, with the remainder of the group being placed into Administration.For Further Information Contact:Jeff Barber, PartnerE: [email protected] Lee, PartnerE: [email protected] Tackie, Director E: [email protected]

BTG Restructuring is a division of Begbies Traynor (Central) LLP, registered in England and Wales No: OC306540. Registered Office: 340 Deansgate, Manchester M3 4LY A member of the Begbies Traynor Group: Specialist Professional Services. www.begbies-traynorgroup.com

T: 0161 837 1700 | www.btg-restructuring.com | Offices across the UK

0837 BTG Restructuring Editorial.indd 1 24/09/2012 15:25

Proud night: The NoEE Awards winners with (front row, centre) Brother UK’s Phil Jones and the BBC’s Steph McGovern

principles of business excellence to improve competitiveness.

“our winners will testify to the fact that business excellence not only improves quality and performance but also directly benefits the bottom line.”

other winners were Liverpool Direct’s Security Industry Authority service, Trafford Council, Hurst Green Plastics and First TransPennine Express.

The 2013 Noee Awards are now

open for awards and assessor applications. For more details see www.northofenglandexcellence.co.uk or contact suzanne house, marketing director, on [email protected] or call on 01925 715242.

Airbag firm triumphs in NoEE awards‘outstanding’ finalists showcase innovation

Continued from page 1

Matthew Kimpton-Smith: I had a similar experience with sub-contracting in the UK – as I found my business growing I became acutely aware of the thin veneer of capabilities and resource here in the UK: even if I were to invest in machinery and technology I wouldn’t have the people to run them.

The raw materials and engineering skills just aren’t here, which places a real burden on domestic suppliers. The ability for businesses to grow is, therefore, low. We could treble in size if we had the right resources at our disposal. What’s worrying for me is those who treat their businesses as ‘lifestyle businesses’ – happy for them to just tick along – so they don’t invest in the capabilities or staff.

Tony Attard: Precisely – there is a different management skillset needed for the long-term vision of a company – how do you take a business from £10 million to £100 million?

Matthew Kimpton-Smith: I found it difficult – those who can build a business with one-to- four staff aren’t able to take the business from five-to-10 people and so on: they are incredibly good, capable people but as the business grows we need different skills to nurture this growth.

Tony Attard: Louise, we’re talking a lot about the difficulties of manufacturing here in the UK from a private sector perspective, how does procurement in the public sector work – is it entirely from the UK?

Louise Shepherd: Not entirely but a good proportion, yes. The health service tends to oscillate between centralising decision making such as procurement to save costs – which it doesn’t – and localising decision making.

Tony Attard: I have found that in my business – we manufacture and sell a fabric which attracts bacteria and destroys it – perfect for hospital cubicles. It’s very popular in the Us but there wasn’t great pick-up in the UK – I was told, “It will stop people cleaning!”



In attendance at the dinner were:

Tony Attard, Regional Chairman, IoD North West and Chief Executive at PANAZJohn Schorah, WeightmansJohn McGuire, N. Brown Group (Non-Exec Director of The Year)Louise Shepherd, Alder Hey Children’s NHS (Public Sector Director of The Year)Mike Roberts, Roberts Bakery (Family Business Director of the Year)Howard Goldman, Rayburn Trading Company (Global Director of The Year)Christopher Eccles, Charge Point Technology Ltd (Young Director of The Year)Matthew Kimpton-Smith, Cygnet Group Limited (SME Director of The Year)Graham Keegan, Costain (Salford Award for Chartered Director)Emlyn Williams, WeightmansPaul Raftery, Weightmans

Tony Attard, Mike Roberts and Paul Raftery

Emlyn Williams and Matthew Kimpton-Smith

Christopher Eccles



Louise Shepherd: sadly that doesn’t surprise me. Decentralisation for procurement is much better between consortia of hospitals – they know what’s going on at the ground-level and know what they need. There is a thing as too many opinions!

Tony Attard: Moving on to a more financially focused question – how do you think a proposed rise in VAt to 25 per cent would affect your businesses?

Howard Goldman: A rise like this would have a massive impact on my business. We supply products to discount shops, pound shops and chemists – the margin would simply be too big and it would destroy trade. Instead of targeting tax-paying businesses the Government should focus on conglomerates who don’t pay tax at all!

Mike Roberts: too many companies avoid paying tax. They should be taxed on the turnover in the country of sale.

John Schorah: A rise in VAt won’t address

the underlying problems facing the UK’s businesses – we need to make it easier for people to manufacturer goods here. Where is the workforce to do this? That should be tackled.

Matthew Kimpton-Smith: There’s definitely a lack of engineers coming through – it’s too late to interest young people in engineering by the time they hit their GsCes. Young people these days are influenced by their science teachers, careers advisers and parents. The message seems to be that engineering and manufacturing is a ‘dead game’, which is just not true.

Polytechnics have disappeared and that has diminished the recruitment pool. University courses these days just aren’t practical – engineering students hardly touch machines!

Chris Eccles: We partner with Bath University to give undergraduates hands-on experience but I agree more needs to be done to encourage the learning of these practical skills.

John McGuire: Why doesn’t someone stand

up for technical colleges? Look at the nursing trade – the requirement for all nurses to have degrees puts off great candidates due to political dogma and educational political prejudice.

Tony Attard: We need to make the most of the skills we have – you can’t get out of a recession without the right skillset.

John McGuire: I agree, the money is there for investment, particularly in sMes, but the problem is people – and finding the right skills.

Tony Attard: We have a responsibility to work with local colleges, but the problem is the quality of candidate we see – the literacy and numeracy we teach simply isn’t good enough.

to encourage business growth in the UK we need to have the right people, with strong skills in areas like manufacturing and engineering to get ourselves out of this recession.

Thank you all for joining us to discuss these pertinent issues – it has been a very interesting afternoon. Congratulations once again on your recent awards.

John Schorah and Graham Keegan in conversation

Louise Shepherd Howard Goldman



FoLLoWING feedback from members, we will shortly install some screens to ensure that the IoD Lounge has more privacy, and that noise travels less across the open space.

Darrell Matthews said: “Members have asked that we provide a few quieter areas for more confidential conversations, or to help them focus and concentrate. While we still get a great deal on the red rooms private meeting areas, these screens will help to control everyday noise. They are a frosted glass design, so will blend in and not close down the Lounge too much.”

“Please let me know what you think, when you visit the Lounge in the New Year”.

IoD North West Annual Conference 2013

update on Members’ Lounge

JOIN uS on 14 May at The Lowry Hotel, Manchester for the IoD North West Annual Conference 2013, where we’ll hear inspiring business leaders talk about their careers.

For this year’s conference we will be featuring the North West’s outstanding young entrepreneurs exchanging views with their business heroes.

Previous speakers at our conferences have included Michael o’Leary from ryanAir, the

BBC’s robert Peston and Karren Brady.We will be announcing our stunning list of

speakers in the New Year, and details of how to book, so please keep an eye on the IoD website – www.iod.com/northwest – and make sure you ‘save the date’.

Conference set to unlock the secret of business successDate: Wednesday, 14 May, 2013Venue: The Lowry Hotel, ManchesterSave the date!

Conference theme: The Secret of my Business Success

Five-star venue: The Lowry Hotel, Manchester, will play host to the

2013 Conference

Private meeting rooms in City Tower can be booked on 0161 212 2222 – please quote IoD for a discount.


For the 10th year we will be running the highly successful and prestigious Director of The Year Awards for the North West in 2013.

The IoD promotes and supports excellence in all aspects of business leadership, and this is our flagship event to showcase the phenomenal talent that we have in the North West.

We will be opening nominations in March next year – so please keep an eye out and

think of who you know that deserves consideration for this top accolade.

regional Director Darrell Matthews commented: “We keep the nomination process as easy as possible, as we realise everyone is busy at the moment. All you will need to know is the name, company name and email address – and we will do the rest.”

Nominations will open in March, so please watch out for updates.

Nominations open in March for 2013 awardsDirector of the Year Awards 2013

Nominations open: March 2013Awards night: 26 September 2013Save the date now!

Winning line-up: The North West’s Directors of the Year, 2012

Festive Lunch – a new Manchester landmark!

My dream: Roger Ward addresses guests while, below, Darrell Matthews conducts the raffle

MeMBers AND GUests enjoyed a convivial festive lunch on 7 December at the newly refurbished Albert square Chop house at which the visionary behind the restaurant, roger Ward, told the remarkable story of this major redevelopment.

roger spoke about his dream of totally refurbishing a “wreck of a building” to create a new landmark eaterie in the city, complete with a cosy bar, a sumptuous dining area and a state-of-the-art meeting and conferencing area.

Members also heard of the plans to add a small town centre hotel facility in the coming months.

After a wonderful lunch and roger’s presentation, a charity raffle draw for a luxury cheese hamper was held, with funds raised going to The Christie Charitable Fund.

How to Double Your SalesDate: 19 MarchVenue: 116 Pall Mall, LondonTime: 9am to 5pmCost: £360 + VATone of the longest running IoD conferences returns to revolutionise your attitude to the sales process and motivate you and your team to set and achieve extraordinary goals.

how to double your sales will arm you with a set of simple strategies, proven techniques and first-hand knowledge that will revolutionise your attitude to the sales process, allowing you to achieve an extraordinary increase in sales – fast.

Led by internationally recognised sales and motivational coach Bruce King, this conference will be provide tips and strategies for achieving business success.

For more information or to book please call 020 7451 3337 or visit www.iod.com/doubleyoursales

Sales in the spotlight




IoD Events Diary

Date: Thursday, 24 January 2013Venue: IoD Hub Meeting Rooms, 24th Floor, City Tower, Manchester M1 4BTTime: 7.45am – 9.30amCost: Members Free of Charge, Non-members £15 + VAT

IoD Manchester members and guests are invited to the first IoD breakfast of 2013 to learn details about the new duties on employers to help more people save for their retirement.

As of october 2012, new legislation means employers will have to automatically enrol certain employees into a pension scheme and make contributions on their behalf. each employer will be given a date from which the changes will have to be in place, known as the staging date.

Presented by scottish Widows and Vale Insurance services Ltd, the presentation will provide you with a summary of pensions reform including:

• The conditions required to meet the requirements for auto-enrolment.

• The contributions required from both employer and employee including the phasing of contributions from the staging date.

• The administration and governance requirements to comply with the legislation.

The presentation will also summarise other changes to pensions legislation such as the changes to the annual and lifetime allowances and the new carry forward rules.

Also speaking will be Malcolm small, the IoD Policy expert on pensions, who will give a pensions overview and the IoD view on the changes and future outlook.

There will be an opportunity to ask any pension related question to the speakers and breakfast will be provided.

IoD Manchester

Briefing gets to grips with workplace pensions reform

In association with:

Join us at the new and inspirational Manchester Metropolitan University Business school for an entertaining and fascinating evening of debate, unique insights and unequivocal strategies of the world of e-commerce.

Chaired by David edmundson-Bird, principal lecturer in digital marketing and enterprise at Manchester Metropolitan University Business school, the panel of experts includes:• Ben Wilson, Founder and Managing Director of Afrapoco and Freshcig.

Ben began trading on eBay at the age of 18 from his bedroom and four years later he has a projected annual turnover of £3m. Ben has successfully understood and harnessed the power of e-commerce.

• Guy Levine, Managing Director, Return on Digital

After a successful ‘dabble’ in the .com

world, Guy decided to create a consultancy aimed solely at making the internet highly profitable for the companies he works with.

• Tim Roberts, Managing Director, I-COM

tim co-founded the company with ravi Bhalla in 2004. tim loves everything about I-CoM, particularly seeing the company’s staff develop their skills and clients’ businesses grow as a direct result of I-CoM’s design, development and online marketing services.

Towards your First e-£millionDate: Wednesday, 27 February 2013Venue: MMU’s New Business & Law School, ManchesterTime: 6-8.30pm (includes a tour of this £75m building)Cost: Members Free of Charge, Non-Members £15 + VAT

IoD Manchester

“After a successful ‘dabble’ in the .com world, Guy created a consultancy aimed solely at making the internet highly profitable...”

Date: Tuesday, 5 March 2013Venue: Roberts Bakery Factory, Northwich, CheshireTime: 3.30pm - 6.30pmMembers: Members £10 + VAT, Non-members £15 + VAT

IoD Cheshire members will be treated to a behind-the-scenes tour of this important Cheshire business.

Mike roberts, winner of IoD North West Family Business Director of the Year in 2012 and deputy chairman of roberts Bakery (pictured below), will speak to members about what it is really like to run a successful family business.

tim Isherwood of family business advisors steuer Gregsson will also offer advice to members.

Places on the tour are limited so please book early. More places will be available to attend the presentations following the tour. Call the regional office for details on timings - 0161 247 7634.

Behind the scenes at Robert’s Bakery – what it’s really like to run a family business

IoD Cheshire

IoD members are invited to join us for a private event with the rt. hon eric Pickles MP, secretary of state for Communities and Local Government.

The secretary of state will address members on local growth and Government initiatives that will help drive economic growth, with particular reference to the North West region.

Among other initiatives, the secretary of state may talk to members about Local enterprise Partnerships (LePs), which are intended to strengthen local economies, create the right environment for business to

grow; enterprise Zones, the Growing Places Fund and

Devolution and Deregulation.

Please join us to hear from the secretary of state and have the opportunity to voice your views and

opinions directly to Government.



How much? The inside story of editing the ‘Rich List’Date: Tuesday, 29 January 2013Time: 7.45am – 9.30amVenue: Rathbone Hall, Port of Liverpool Building, Pier Head, LiverpoolCost: Members £10 + VAT, Non-members £20 + VAT

Ian Coxon became editor of The Sunday Times Rich List in 1997 and launched The Sunday Times Sport Rich List in 2010.

starting as a sports sub-editor on The Sunday Times in 1985, Ian was the managing editor for more than 20 years, during the biggest period of expansion in its history. Ian was editor the night Princess Diana died and in 1998 he was responsible for the launch of The Sunday Times University Guide, which he edited for 11 years. he edited The Sunday Times Schools Guide 2012 and is editor of the paper’s Top Secondary Schools Guide for the Republic of Ireland.

Join IoD Liverpool to hear the remarkable inside story of one of the top newspapers and the real story of what (and who) goes into the rich List. Breakfast, tea and coffee included.

Venue: IoD Hub, City Tower,Date: Tuesday, 12 February 2013Time: 7.45-9.30amCost: Members - Free of Charge Non-members £15 + VAT

The UK’s economic landscape is changing and all directors need to be prepared for the opportunities on offer – or to make the best of an unfortunate situation.

our seminar will allow attendees to examine the different corporate recovery options for effecting a rescue of a distressed company, and the issues involved.

The talk will look specifically at successor companies which follow a liquidation, the administration regime and the increasing popularity of the Company Voluntary Arrangement (CVA).

We will also focus on managing any potential claims that a director may face when considering the options for effecting a rescue of a distressed company, including personal guarantees, overdrawn director’s loan accounts and issues relating to unlawful dividends.

There will then be an informal discussion and the opportunity to ask any questions of our sector experts from Begbies traynor, the leading independent business recovery practice in the UK.

Members will leave with a better understanding of the corporate recovery process.

Breakfast sandwiches will be served prior to the presentation.

IoD North West

opportunities in corporate recovery

IoD Liverpool

IoD North West

Minister offers the inside track on policy at private IoD briefing

To bookon any IoD North West event, contact the office on 0161 247 7634 or see the website at www.iod.com/northwest/events

Date: Thursday, 21 March 2013Time: 11.00am – 12.30pmVenue: Room Restaurant, Spring Gardens, ManchesterCost: Free - members only

Dates for your Diary 2013SAVE THE DATE: IoD North West Director of the Year Awards Ceremony – Thursday, 26 September 2013

SAVE THE DATE: The Business Breakfast at RHS Flower Show, Tatton Park – Thursday – July 25, 2013 (TBC)

Date: Thursday, 11 July 2013Time: From noonVenue: Chorlton-cum-Hardy Golf Club, Barlow Hall, Barlow Hall Road, Chorlton, Manchester M21 7JJCost: Members team of four £248 + VAT (£297.60) includes Lunch, 18 holes of golf, dinner and informal prize giving

Join us for this relaxed day of golf, at one of the region’s top courses.

Chorlton-cum-hardy is a parkland course with easy access to Manchester and the rest of

the region, and is described as ‘Manchester’s hidden gem’!

teams will meet up in the impressive club house, the 13th century Barlow hall, for lunch

from noon with a 1.30 tee off.After golf there will be an informal dinner

and a prize-giving for the best team, best individual, nearest-the-pin and longest drive.



IoD Events DiaryIoD North West

‘Hidden gem’ to host IoDNorth West’sgolf day

Date: Thursday, 25 April 2013Time: 12.00 - 2.30pmVenue: The Radisson Edwardian, Peter Street, ManchesterMembers: £15 + VAT, Non £25 + VAT

Sponsored by unity Trust Bank

A recent study by CAss Business school found that employee-owned companies create jobs faster and were more resilient through the recent economic downturn. But can this business model work for companies seeking new ways to compete and grow? Does the extra employee commitment really help deliver business success? And how does employee ownership help with business succession when the founder of a company decides to sell?

Join IoD North West members and guests for this engaging and informative event, aimed at business people,company founders and advisors from all sectors, and hear direct from three of the UK’s most influential speakers on the topic.

Event speakersSteve Parfett, Chairman of AG Parfett & Sons Ltd, Stockport

Known as the North West’s foremost independ-ent cash & carry, Parfetts has grown steadily since it was first founded in stockport in 1980.

It remained a family company until 2008 when steve took the business to employee ownership as the best option for the continued success and sustainability of the company.

Graeme Nuttall, Partner at Field Fisher Waterhouse LLP

Field Fisher Waterhouse is a european law firm with a focus on highly regulated companies, intellectual property and technology. Graeme Nuttall is head of tax and equity Incentives, is the Government’s independent adviser on employee ownership and wrote The Nuttall Review of Employee Ownership, published in July 2012.

Iain Hasdell, Chief Executive, Employee Ownership Association

The employee ownership Association is the voice of co-owned business in the UK – a network of over a 100 companies in a sector worth £30bn pa.

IoD Cheshire

Cyber Security: Don’t worry - it doesn’t affect you… does it?Date: Thursday, 7 Feb 2013Time: 7.45am - 9.30amVenue: Daresbury Laboratory, WarringtonCost: Members £15 + VAT Non-members £20 + VAT

Cyber crime costs the uK £1bn a year, yet under the uK National Cyber Security Strategy the Government target is to make the uK the safest place in the world to do business.

As a business what will that mean for you?

Are there opportunities for your business?

Join IoD Cheshire Branch for the answers to these questions at a special breakfast seminar.

A stake in the firm: Can employee ownership help in the private sector?

IoD North West

The hidden gem: The club is a stunning mix of beautiful parkland course and historic buildings

“Cyber crime costs the UK £1bn a year”

Date: Tuesday, 19 March 2013Venue: The Lowry Hotel, ManchesterCost: Members £45 + VAT; Non-members £60 + VATTime: 9.30am-3pm. Networking drinks till 4pm

IoD members and guests will meet for an inspiring day of top-level speakers and peer-to-peer networking at the 2013 Women Director’s Forum’s Conference, which this year takes the theme of Women on Boards.

our speakers will explore every aspect of promoting, supporting and educating women business leaders to enable more diverse boards.

With the continued debate regarding the introduction of female quotas for UK companies, the IoD has sourced some key speakers to cover topics including;

Gender-balanced boards – from Mirella Visser, Centre for Inclusive Leadership

‘Out of the Cave’ – a comparison of leadership styles from Nick robinson

What does it take to be a CEO? Marj Boyer, former Ceo of Manchester’s one Central Park

Is an interim position right for your career? tracy shuff, Interim Networks

How did one of the ‘Top 4’ banks tackle the inequalities? Angela Bate, rBs

The day will be hosted by our previous host, Claire-Marie Boggiano of Lurig Change & Development. Claire-Marie will ensure there is plenty of opportunity for lively debate and exchange.

so join us for a full day of inspirational speeches from our line-up of dynamic and award-winning women. Whether you operate as a team or as an individual, our speakers will share their business stories with you, and impart their knowledge and advice to inspire and motive you to realise your own potential.

online bookings are now open for this key

date for 2013. There will be ample opportunity for Q&As and to network with your fellow delegates over coffee, lunch and at the end of the day. Come and take away as much as you can from this great value one-day event.


What gets measured gets done

Mike Perls - CEO - MC2 Marketing GroupThe Boardwalk, 21 Little Peter Street, Manchester, M15 4PST: 0161 236 1352 W: www.mcmc.co.uk

It’s easy to see why many people won’t look back at 2012 with much fondness, as we’ve seen continued economic uncertainty and the demise of more household brands.

Despite this, 2012 will remain in the collective memory for years to come. This summer we saw commitment, performance and results sweep the nation. Children, politicians and royalty alike all came together to support the finest athletes of a generation. We kept our eyes on the numbers, the seconds and the meters, because that’s what counted. That’s what made the difference.

For a professional athlete, measurement is everything. It’s the same for communications, even more so when budgets are tight. The way a business communicates can bring a lot to its overall performance. But to know how successful it has been, it needs to be measured.

To get the most out of your communications, you need to know from the start what you set out to achieve. What does success look like for you? Increased sales, Facebook ‘likes’, or page impressions on the website?

Without knowing what you need to measure, you risk focusing on the wrong elements. Why shout if you don’t know who is listening?

For strategic communications, that deliver results, get in touch.

For a discussion about how to define and execute your strategy and communicate it to the world, give me a call on 0161 236 1352

IoD North West Women Director’s Forum

Women’s conference set to map the path to better board equality

To bookon any IoD North West event, contact the office on 0161 247 7634 or see the website at www.iod.com/northwest/events

Guest speaker: Mirella Visser



IoD Manchester members were invited to hear the latest on the Co-op’s new NOMA development in November at an event hosted by David Pringle, the project’s director.

Phil Smith, Chair of IoD Manchester, opened the presentation by welcoming members and guests and thanking The Co-operative Group, yet again, for their generous support, a year on from the first IoD briefing on NOMA.

David’s presentation was an update on progress in the 12 months since our last meeting. “Our new head office – One Angel Square – and the ring road around the NOMA site have been completed”.

He added: “NOMA is about regeneration on a great scale and our approach is customer-focused and personal. Energy efficiency was key: “We

have already achieved the highest ‘Green’ BREEAM rating, potentially the best in the world”.

Following the presentation in the CIS Tower, members and guests journeyed 24 floors down and across Miller Street to access the impressive new site. David lead a tour around several floors and members had ample time to inspect some of the unusual new features of the building.

Phil Smith commented: “From start to finish this event was full of energy as attendees were eager to learn more about this colossal £800 million mixed use development in the heart of Manchester City region”.

At the end of a great morning, Phil lead a vote of thanks for another warm welcome extended by the Co-op.

New export markets and finding the best way of accessing them were the topics under discussion at the Guardian Small Business Network breakfast seminar with the IoD in Manchester, writes Alison Coleman

WheN it comes to exploiting new markets through exporting, Manchester and the North West generally have had their share of success, the Guardian newspaper being one of the best examples, as panel chair terry Macalister, the title’s energy editor, pointed out.

But given that two-thirds of growth in global trade comes from new entrants to markets, according to UK trade & Investment (UKtI) figures, there is a constant demand for business advice and support in breaking into the world’s high growth market economies and overcoming the barriers.

Graeme Leach, the IoD’s chief economist talked about the positives for businesses: falling inflation, an end to the squeeze on real earnings and the cash in the coffers of UK plc. he highlighted a key indicator, M4X reflecting the broad money supply, which is now growing at a rate that allows some room for optimism.

After touching on the problems created by the eurozone crisis, the discussion quickly turned to new export markets for small business. tony Attard, chair of IoD North West and chief executive of textile company Panaz, called on his own export experience, particularly to Asian markets, to paint an upbeat picture of the scale of the real opportunities that exist.

“This is an incredibly exciting time to be in business; our company grew 12 per cent last year, and will achieve another 15 per cent this year. A lot of our competitors have retrenched, creating some brilliant opportunities for us. our exports have grown by 72 per cent over the last year, because export markets pick up very quickly,” he said.

The upward trend in exports is being seen across the region, up 12 per cent last year, and still climbing, but with a slight tail off in exports to the eurozone from 52 per cent to 49 per cent, reflecting a shift towards new high growth markets. China has become the region’s fourth largest export destination, from its previous position as 12th.

Clive Drinkwater, regional director of UKtI, said: “two years ago the biggest export commodities to China were scrap metal and chemical products. Now the biggest is luxury cars, which indicates the growth we are seeing in China’s consumer spend. export sales to other emerging markets such as russia and turkey are also growing.”

But it was China that was on the minds of many of the delegates, including the export implications of the country’s faltering economic growth, ageing workforce, and even whether

The North West Round-up

Stunning NoMA project is transforming the city

Reports from IoD North West events



huge investment in its national infrastructure could be considered growth.

Leach explained: “China needs to maintain eight per cent economic growth to manage its massive rural urban migration. If it falls below eight per cent they will stimulate the economy. India will overtake China in terms of population 40 years down the line, but the key thing is that China’s rate of growth will be sufficient to manage the demographic change. And yes, putting an infrastructure in place delivers a significant platform for growth.”

some of the newest and arguably most exciting new markets are emerging in Africa, with countries like Nigeria firmly on the UK export radar. however, as one delegate pointed out, corruption and bribery in some of these new markets can leave British firms in a difficult position, forcing them to walk away from lucrative business opportunities.

Attard said focusing too much on emerging markets and overlooking some of the established economies and business models,

including those in the eurozone, could be a mistake.

“Italy and spain are supposed to be having a rough time, but we are doing some great business with both countries. It is harder to get a foothold in China, south-east Asia and south America because the infrastructure isn’t there,” he said.

however, for those determined to explore comparatively uncharted export territories, his advice was to attend trade shows, work with trade associations and contact the commercial attaches of the relevant consulates. And physically getting out there, he added emphatically, is a must.

If there is one big advantage that UK businesses have over other foreign competitors when it comes to accessing new overseas markets it is ‘Brand Britain’. It is regarded as a hallmark of quality, trust and heritage that has continued throughout the recession, no doubt enhanced by the success of the London 2012 olympics.

Malcolm Woodall, international business manager for Lloyds tsB, said: “British products are very well perceived overseas, but selling them is still hard work.”

“In some markets, notably China and Asia, you will see union flags everywhere. Made in Britain is incredibly hot, and exporters should be exploiting that,” Attard said.

Many delegates wanted to know what support was available from UKtI to help them gain a foothold in a new market.

“Plenty,” was Drinkwater’s response. The north west region alone had 40 UKtI advisers helping businesses, and several posts in China handling commercial activity for them. Passport to export is a UKtI gateway to growth programme designed for new exporters, while the government’s UK export Finance body can signpost businesses towards export credit, export working capital, and help in understanding the complexities of foreign exchange.

responding to questions, the panel gave some valuable practical advice, for example, businesses should avoid the assumption that their product and packaging will work in every new market; they may need to package for individual countries. Those with concerns over the threat of counterfeiting when launching into a new territory were advised to take expert advice, and when planning markets ensure that IP is protected.

The panel concluded that accessing new markets isn’t difficult and is extremely rewarding.

• This content was originally published on the Guardian Small Business Network, in association with Lloyds TSB commercial.

Panel offers a positive view on export potential

Panel talk: From left, IoD North West chairman Tony Attard, IOD chief economist Graeme Leach, The Guardian’s Terry Macalister, Malcolm Woodall, Lloyds TSB, and Clive Drinkwater, UKTI



FeW members can have failed to be excited by the BBC’s superb Media City development in salford – and November saw a fortunate group take an exclusive behind-the-scenes look at this state-of-the-art facility.

Members met up with some of the BBC producers, heard the latest developments from the broadcaster and took a look at the studios which are home to some of British tV’s most iconic programmes, including Blue Peter and Match of the Day. There was also time for networking with BBC staff.

regional Director Darrell Matthews commented: “This was a superb event, and a great opportunity for members to get ‘behind the microphones’ of the working life of Media

the Young Directors’ Forum (YDF) gathered at the room restaurant, Manchester, in November for a special breakfast session on ‘What is News?’.

Mark Collin, YDF Chair, introduced the session in which suzanne Judge and Fritzi Wemheuer of local Pr firm Judge & howard gave the group their expert opinion on the use of Pr to increase your brand’s profile.

topics covered included how to identify what is actually news, how this news is made and some simple advice on how to get your news published. They also advised on how to measure the effectiveness of your Pr and touched on using social media to get your

message out. Members were encouraged to ask advice on their

businesses and there were a number of questions related to specific scenarios which members are facing currently.

Members present agreed this was a very useful event with great advice that can be applied to their businesses. Many thanks to Judge & howard for their involvement. • YDF events aim to cover topics that are useful to young (or new) directors and entrepreneurs. For more information, contact the YDF Chairman, Mark Collin, at [email protected]

Chef’s recipefor successAward-winning Lancashire chef Nigel howarth entertained members and their guests at a dinner at his award-winning Northcote restaurant, in Langho. This popular dinner, which sold out very early, showcased the restaurant and Nigel’s skills as a chef.

IoD Lancashire Chair, John Kersey commented: “This was a fabulous evening with great food, and some wonderful networking. A perfect end to the year.”

The key detail behind retailLIVerPooL oNe – the city’s exciting retail development – has been a stunning success, transforming the city and pulling in visitors from far afield.

IoD members heard the fascinating story of the planning, development and opening of the largest regeneration project of its kind in europe in a presentation led by Chris Bliss, estates Director from Academy oNe. This major success story is the perfect antidote to much of the gloom that’s currently surrounding retail in the UK.

Guests then enjoyed refreshments and a tour of the Academy oNe facilities, which is training the next generation of retail workers, and heard about some of the excellent work taking place to support the visitor economy sector in Liverpool.

Nigel Howarth

Making the news

City. Alice Webb, the Chief operations officer of BBC North, spoke to members and explained the achievements since the move north was completed, and outlined plans for the coming years. our thanks to all at

the BBC for their hospitality and open conversation.”

• Pictured above, IoD members and guests pictured with some of the BBC team

Exciting night at the Beeb!

Newsworthy event: YDF chair Mark Collin with guest speaker and PR expert Suzanne Judge

the fabulous surroundings of Booths hall in Knutsford was the venue for a fascinating and thought-provoking IoD Cheshire Branch presentation by top business coach Nick robinson on the leadership styles of men and women – and which is best suited to the 21st Century.

Nick began with two startling statistics. First, women are now responsible for 85 per cent of all purchasing decisions. second, recent research from the harvard Business review reveals that out of the 16 key leadership criteria, women are ahead of men in 15 of them. so it was clear from the off that Nick was sounding a very loud wake up call that ‘traditional’ men’s leadership was no longer fit for purpose. While, in Nick’s words, ‘Nuts, Nature and Nurture’ often dictate men’s behaviour, today’s successful businesses demand leadership that uses better relationship skills to get things done and

creates a shared sense of purpose.Fortunately, for one half of the room at least, Nick

provided tips and insight on what needed to change and how businesses could turn a potential problem into an opportunity. Nick then concluded with the hope that men can now start to catch up to women in their leadership skills, thereby creating more possibilities for the whole world of business.



IoD North West Members and guests packed the Midland hotel in october to hear a specialist breakfast seminar on Access to Finance for sMes, hosted by our regional Chair, tony Attard.

The speakers came from companies heavily involved in leading the way in corporate deals and funding and included Gary houghton from Baker tilly, rob Paillin from rBs, Mark Lindsey from Bibby Financial and David Bowcock from Brabners Chaffe street.

several areas of finance were covered from

working capital and senior debt to capital markets, asset-based lending and angel investors, with all four speakers aiming to shed some light on to the issue and help sMes find a solution to their funding queries.

each gave their expert view on how sMes should look to raise finance in the current climate, and used case studies to show the pitfalls and advantages. Members had the opportunity to ask the experts questions and raise their concerns, which included short financing terms.

A PACKeD seminar heard a host of useful tips and insights for directors on how to add value to their business and plan their exit through a sale, from a panel of experts.

speakers included Kevin Uphill from Avondale, stewart Millington of sequoya Business Growth and Mike Cooper of Chantrey Vellacott DFK – and they covered all aspects of the subject, from tax planning, to asset valuation, legal considerations and coping

with other shareholders.our thanks go to Avondale for supplying the

sector experts and more information on preparing to sell your company can be found on www.avondale.co.uk.

LEP looking for engagement Cheshire IoD Members gathered at Daresbury scitech to meet Christine Gaskell, who is Chair of the Cheshire Local enterprise Partnership (LeP) and has been a board member of Bentley Motors since 1995.

“Christine was very frank and honest regarding the role of the LeP,” stated regional Director Darrell Matthews.

“They are obviously very keen to engage with the business community in Cheshire and beyond to ensure the priorities are identified and acted upon. however, Christine made it clear that the LeP cannot do this alone and needs involvement from all stakeholders.”

our thanks go to Christine for a very interactive session.

Plas Coch story one to celebrateIn the beautiful surroundings of rathbone hall in The Port of Liverpool Building, IoD members heard the rollercoaster story of how one entrepreneur with a vision secured funding to renovate Plas Coch holiday Village, and turn it into an award- winning tourism destination.

Dean styger, the Managing Director of Plas Coch was joined by Neil sturmey from Grant Thornton and Phil Mills from rBs, to tell the story of the acquisition and development challenges that faced the team - and how they all worked together to realise the dream of the owners, against the odds.

SMEs hear options on access to finance

Time to get out of the cave, 21st century man!

Man’s role?: Nick Robinson with IoD Cheshire’s Andy Duxbury

Excellent advice on the best way to a business exit



Events Round-up

At A reCeNt IoD Cheshire event in Crewe, rail industry expert Dr Pete Waterman oBe offered members his passionate views about the rail industry in Britain, and explained what he thought the hs2 project could mean for UK businesses.

Martin Lee opened the session by saying that rail travel has increased by 67 per cent since 1995 and that business travel has tripled, yet rail represents only eight per cent of internal journeys.

In a lively debate, Pete was joined by Clinton Leeks oBe, the Director of external and Parliamentary relations for hs2. Members heard the long-term plans for the scheme, and how this was vital for future capacity of the railways. Clinton outlined the plan and the proposed delivery dates and commented that hs2 “was not just about speed and saving journey time, but about joining the cities, the engines of growth in the UK.” hs2 could create up to 100,000 jobs and so he added that it “was imperative that the UK invested in transport” and that we “build for the next 100 years”.

Members then heard from Pete Waterman, who

North West business leaders learn why HS2 is so important to region

gave an expert insight into the history of Britain’s railways and how the lack of planning in the past has lead to a lack of capacity for current needs. “This is about a legacy for our kids, and building an infrastructure that will change the North West forever.”

Pete added that “this was the first opportunity for decades to upgrade towns and regenerate areas to be fit for the next century”. The presentations were followed by a lively Q & A session, where members took the opportunity to express their views and grill Pete and Clinton

on all aspects of hs2 – including cost, alternative options, timing, rail ticket pricing and hs3.

Andy Duxbury, Chair of IoD Cheshire added, “This was a really important event for Cheshire, as hs2 will impact on the opportunities for the county to be a real economic hub for centuries to come. Many thanks to Pete and Clinton for speaking and for Martin Lee for organising.”

More information on hs2 can be found at www.hs2.org.uk

I WAs delighted with the response to our recent request for members to

come forward to help form a new regional

committee for the Cumbria branch.

Their offers will really help us take the branch forward. so far all applicants come from very different business

sectors, which is pleasing and reflects the diverse nature of both the IoD membership and the business community of Cumbria itself. Geographically we are well spread out, which could make it difficult getting everyone together but we are holding our first meeting in early January 2013, at which point we will look to constitute the committee.

We will use this meeting to develop a strategy for the Cumbria area which supports the IoD North West’s own vision, and plan a programme of events for the coming year

Looking at the wider business picture, generally within the county it is pleasing to note some significant good news recently with regard to employment from both within the nuclear industry and

other sectors, particularly in manufacturing. It was also heartening to hear the announcement of the Virgin franchise extension. This move provides stability in transport on one of the main arteries into and out of Cumbria. It also promises future investment in the railways infrastructure. however, we will need a campaign strategy if that investment is to come Cumbria’s way. It is vital we remain well connected.

In addition, one of the things the new committee will look at will be business proposals along the M6 corridor. Along with the West Coast Main Line, the M6 is a vital artery for Cumbrian business. Cumbria’s relative isolation means it depends on both these key transport networks and the IoD will help campaign for improvements for both.

Branch news: The view from our chairs

Cumbria has good news to celebrateby Neil McNicholasChair, IoD Cumbria



For 2013, one of my personal goals will be to work harder on achieving even greater levels of engagement with our Cheshire branch members.

This is a topic I’ve touched on before and I make no apologies for returning to it. recent events have highlighted just how important it is that we hear your views, not just on the big issues but also the local issues impacting on business – so that we can take these issues up with the relevant decision makers and work behind the scenes to improve the situation.

We want the IoD’s voice to be heard in all forums, but one of the most crucial in the future will be the Local enterprise Partnerships (LePs)– and in this branch, the Cheshire and Warrington LeP. After a slow start the LeP is gaining momentum though at times it is perhaps guilty of not communicating frequently enough with the business community and telling more people about its successes.

The LeP board, led by Christine Gaskell, is extremely keen to deepen its links with the county’s business groups and is now proposing an informal association of business

membership groups in Cheshire to meet, discuss the key issues and interact directly with the LeP.

But for us to play our full part we need to know what issues are devilling you, what changes are needed to create a better environment in which to conduct business – both at a local and national level.

We hold many events throughout the year, and often we use part of these to discuss bigger issues rather than just focusing on the event topic. In addition, we have Linked In and

twitter through which we can engage with members and solicit opinions.

Let us know your thoughts.

A PerFeCt example of an issue on which we are keen to deepen our engagement with members is on hs2. As you will read on the page opposite, we held a fabulous event on

this at which our speakers, Pete Waterman and Clinton Leeks,

were enthusiastic supporters of the plan, and outlined why this was a proposal that the business community needs to get behind.

This is one of the biggest issues for

the coming years. It will require a colossal investment and will no doubt create a large amount of upheaval but its success would be, I think, hugely beneficial. however, we need to hear your views: does the plan have your support? how should it develop? Let us know.

IN the meantime, the events diary for 2013 is fast taking shape. Already planned are a number of events that focus on key issues for business. The first, in February, will look at cyber security, particularly with regards to sMes which often have weaker defences against determined It threats. A growing menace are so-called ‘stepping stone attacks’, where cyber criminals target larger companies and then ‘step across’ into their supply chains as a way of breaking into smaller businesses.

Then, in March, we will pay a visit to the award-winning roberts Bakery to look at some of the unique issues surrounding family businesses, a key sector but one that is often overlooked. Mike roberts, the North West’s Family Director of the Year, will be our host.

so there is a great deal to look forward to. I hope this Christmas will see you take a well-deserved break and enter 2013 re-energised to tackle your role.

happy New Year; I look forward to meeting up with you at some point over the coming 12 months.

by Andy DuxburyChair, IoD Cheshire


IoD ready to play a central role

DesPIte another gloomy quarter for the UK economy, with distressing figures for youth unemployment across europe, I remain optimistic and buoyed by what I see going on here in the North West.

With the launch of the IoD student Membership scheme in the summer we are already seeing fantastic uptake by our local universities and ultimately benefit for the large undergraduate community in our region. The Young Directors Forum will be building on this early success and really

driving a greater set of events and interactions conjoining business and education in 2013.

In one of the most atmospheric debating environments in Manchester, ‘The room’ – formerly the reform Club, which has iconic figures such as the late and great Winston Churchill and Lloyd George among its former members – the YDF held one of its recent events asking ‘What is news’.

It’s a hot topic and gave members an insight into how they can get their news heard – important advice for any new business or entrepreneur looking to break into the

market.

But what was more significant at this event was that the IoD welcomed its first student members (from UCLAN -

LaunchPad) to the fold. even better, we learnt that one of the student members has recently gone on to agree placement and employment in her chosen field.

We are already seeing the great benefits of strong business-education collaboration and I look forward to bringing much more news on this front in 2013.

2012 was a great year for change at the IoD: we had one of the biggest constitutional changes in 100 years and it was a great example of an organisation adopting new approaches and adapting to a changing ‘consumer’ climate. We always need new ideas and fresh faces so please do get in touch if you would like to know more about the Young Directors’ Forum.

Finally, best wishes for a growing and prosperous new year.

by Mark CollinChair, IoD YDF

Students offer encouraging fresh perspective




I’M DeLIGhteD to report that we’ve had a very positive response to our recent request for Liverpool members to volunteer to join our branch committee.

running a branch is an enjoyable but challenging task, and we are always on the look-out for new members.

If you haven’t offered to help but are interested in doing so, please let either myself or head office know.

to those who have already offered their services, we are currently working our way through the responses and hope to organise a meeting in early January at which we can take the branch forward.

oUr tWo most recent events were both informative and enjoyable, with members learning an incredible amount from their fellow directors - the hallmark of a great IoD event!

The trials and tribulations surrounding the growth of the Plas Coch holiday village were laid out in a storyboard fashion, with the key players in obtaining finance – Dean styger, Plas

Coch managing director, Neil sturmey, Grant Thornton and Philip Mills from rBs – outlining their roles as we went from initial idea through to obtaining finance, acquiring land and project completion.

The session highlighted the need for patience in any major undertaking such as this - banks don’t move as fast as business sometimes wants!

It also highlighted how much the world has changed since the credit crunch: the development was signed off just as the financial collapse altered the face of business financing, and possibly would not be sanctioned today.

Another valuable lesson was to budget for the unexpected – £30,000 for a bat house, anyone?

A fascinating evening, with a positive business story told in an amusing style, with lessons all could learn.

eQUALLY positive and just as stimulating was the branch’s look at ‘the detail of retail’, when we visited Academy oNe, the retail centre for excellence and sister body to the Liverpool oNe shopping centre. our host, Chris Bliss, Chair of Academy one and estates Director of Liverpool one, outlined how Liverpool oNe had helped transform the city into the UK’s fifth most

popular retail destination almost overnight (from a lowly 15th), with more power to add if passengers visiting the harbour’s new cruise ship terminal can be whisked into this magnificent development.

Again, there was an inspiring and positive message which was well received by members.

I seNse traces of that positivity around the city. Business is still cautious and cashflow remains king while access to finance is squeezed but in some niche areas there are plenty of positive stories to celebrate.

I was reminded of that recently when I attended the Knowsley Business Awards, which turned the spotlight on the town’s hi-tech companies, many working in new fields of alternative energy, efficiency and regeneration. It was a wonderful night which encapsulated the new economy the Government hopes will lead us out of the downturn.

I was a guest at the awards of Liverpool John Moore’s University, which is forging stronger links with the IoD through our new student membership programme.

The university’s Business school hopes to add 100 new student members to the IoD’s roll, with

the IoD is well-placed as a unique organisation with an effective voice to represent North West business leaders’ views to the Government.

As a Lancastrian and having been in business for over 40 years in the county, I am acutely aware of the challenges facing business in today’s economic climate. With this experience and with the hope of sharing the knowledge I have gained over the years, it gives me great pleasure and is an honour to take up the role of branch chairman of Lancashire. It will enable me, along with the new committee, to engage with members to encourage interaction and offer a unified voice as the business leaders of the region.

hopefully this will allow members a chance to get more benefits from their membership.

As most people are aware, any organisation is only as good as the members within it and therefore we need members who are prepared to participate on as many different levels as possible. so if you feel you have something to contribute and to share with the business community and would like to get more involved, please contact me or any member of my new committee and we will be only to glad to hear from you.

Lancashire has an amazing diversity of businesses, from the traditional industries one associates with the region, to manufacturing and commerce, to the latest hi-tech firms – all of which are being supported by a great pool of students graduating from some of the largest universities in the country.

Also new to the region, based on the Fylde

by Lorraine DoddChair, IoD Liverpool

We’re celebrating the positives

by John KerseyChair, IoD Lancashire

New chair seeks greater engagement across county



these aspiring business leaders gaining access to IoD events and knowledge bank as they take their first steps in their own careers.

The university knows the students will gain real benefits from this link-up, with the chance for experienced IoD members to act as mentors for the new blood. It’s a relationship I hope we hear a lot more about in the coming months.

returning to the Knowsley Business Awards, I shall end on a particularly positive note. Winning the Judges’ Award that evening was Jaguar Land rover: a local company that is a global leader, a beacon of engineering excellence whose impact on the regional economy is without equal.

I think it’s fitting that I should end this final column for 2012 by paying tribute to what is a great local success story.

coast, is a completely new industry: fracking – a way of extracting shale gas from beneath the surface.

This is prime example of how this region has had to adapt and embrace change in order to stay ahead of a changing environment.

With its rich history, Lancashire will always be associated with successful businesses moving forward and embracing change. With this in mind, and looking to the future with the help of the new committee, it is my task over the coming year to put together an exciting and informative diary of events that will appeal to a wide cross-section of the membership.

We hope to promote a healthy exchange of ideas in the knowledge that we will be making a real difference to the business community, helping the successful and the aspiring business leaders of Lancashire and ultimately building IoD links across the business world.

“We hope to promote a healthy exchange of ideas in the knowledge that we will be making a real difference to the business community”

John Kersey

by Phil SmithChair, IoD Manchester

It’s thAt time again to reflect on the year past and look forward to the year ahead, and doesn’t time fly when you’re having fun.

I sincerely hope that you have all enjoyed a good balanced mix of branch activities through the year, with the opportunity to network with your peers and go away with lessons and insights from the topic of the day. our objective has been to create these activities that bring members together locally and open doors to venues and businesses that are otherwise closed.

Meetings through the year have ranged from a professional ‘tax health check’ from Adam Waller and Lee Blackshaw at PwC to a session on digital marketing at Manchester Metropolitan University’s All saints Campus by Imran Farooq, MD of MMC Learning.

We’ve also had more social occasions, including a visit to Contemporary six, an independent art gallery in the royal exchange Arcade, to be educated in the art of art for investment by Alex reuben.

More recently, you’ll see elsewhere a report on our event at the CIs tower for the NoMA breakfast event. This was a return visit and gave us chance for an update on this striking £800 million investment, by David Pringle. Again, an informative event that was well received.

Finally, it was a delight to meet new members at City tower at the end of November with the entire Manchester branch committee on hand to give the benefit of their individual membership experience: Clare o’Neill, Alison Kennedy, Jane Pye, trevor Millen and Alex Lenihan, along with myself. This social evening included a talk on using membership benefits and a tour of the meeting facilities at City tower with Andrea Lowe, our talented regional administrator and events manager.

Looking forward to 2013 there’s a ‘must do’ event to get everyone well and truly back on their

business agenda in January, with Vale Insurance services and scottish Widows delivering a walkthrough of the ‘Work Place Pension reform’. We’ll be joined by Malcolm small, IoD policy expert on pensions, to give the IoD view on the changes.

In addition, ‘towards Your First e-£million’ is an evening event that will be well worth attending. It’s being held at Manchester Metropolitan University’s new Business school, where David edmundson-Bird, principal lecturer in digital marketing and enterprise will chair an entertaining and fascinating evening of debate, unique insights and unequivocal strategies of the world of e-commerce.

Panel members are entrepreneurial business owners in this sector. Plenty more on the agenda to delight you and reward the tremendous support you give in filling every branch event.

Away from the IoD, Manchester continues to have its special buzz of confidence under the leadership of sir howard Bernstein and sir richard Leese. It was a pleasure to be at the town hall this year to hear sir richard being interviewed by Chris Maguire, editor of Insider. his depth of experience and vision is impressive: a very genuine, humble man.

It just leaves me to wish everyone a happy Christmas and I look forward to meeting you in January for the start of a healthy and prosperous new year for all.

Branch has ‘Manchester mix’ just about right



A DNA testING laboratory that started in Liverpool eight years ago at Liverpool University’s MerseyBio is bucking the trend by offering the UK’s first next day paternity results service, and is on a recruitment drive to cope with the anticipated increase in demand.

on 1 october Alpha Biolaboratories, the exclusive DNA testing laboratory for ItV 1’s Jeremy Kyle Show, launched the country’s first next day DNA paternity testing service, as standard.

This speedier response time has been developed in response to feedback from clients who expressed their preference for a faster analysis time at no extra cost.

Alpha Biolaboratories has analysed over 6000 DNA samples this year and predicts a rise of over double this number with the introduction of the new service. As a result, Alpha

Biolaboratories has recently recruited new staff and the company is aiming to take on additional local highly trained personnel.

David Thomas, IoD member and chief executive of Alpha Biolaboratories, said: “our next day service is a real turning point in consumer genetics. It offers peace of mind for the thousands of customers who use our confidential service to help solve all kinds of personal issues.

“We are expecting to receive significant

international interest as DNA testing of this quality cannot be found quicker elsewhere”.

DNA identification is the most precise and definitive method available to determine parentage. everyone is born with their own genetic blueprint which is passed down from mother and father to child.

As a result DNA identification provides a conclusive way to determine biological relationships.

DNA Paternity tests show a 99.99 per cent probability that an individual is the biological father of a child and current standard turnaround times for DNA testing in the UK is usually between three and 10 working days.

Members’ Good NewsHow our Members are leading the way out of recession

World’s first standard next day DNA paternity results service is launched in uK

Do you have a Members’ good news story to tell the IoD?

If so, contact Andrea Lowe at the regional head office with the details – [email protected]

Alpha has a world first with revolutionary DNA testing kit

Testing, testing: IoD member David Thomas



Testing, testing: IoD member David Thomas

Meeting and conference space at City TowerBased on the 24th Floor at City Tower, Red Rooms offer spectacular views across the city and beyond. The six meeting and conference rooms accommodate up to 150 delegates, making City Tower one of Manchester's most sought-after venues for small to medium conferences, training sessions, exhibitions, board meetings and events.

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• Complimentary refreshments• State-of-the-art AV equipment

• Free Wifi• Fresh, locally sourced food

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IOD members

by Richard Dawson-GerrardGeorge Davies Solicitors LLP

Whether you are a director of a small, local business or of a multi-national company, you are required to comply with the duties set out in The Companies Act 2006.

The seven statutory duties that you must comply with are:

• to act within your powers, • to act in good faith and in a way that promotes the success of the company for the benefit of members as a whole, • to exercise independent judgment, • to exercise reasonable care, skill and diligence, • to avoid conflicts of interest, • not to accept benefits from third parties, and • to declare an interest in a proposed transaction or arrangement of the company.As well as these seven there are also other

duties laid out under general law that directors

must comply with such as the duty to act in good faith and in the best interests of the company.

How can you be sure that you are complying with the duties?

It is crucial that you fully understand what your duties are and how to achieve compliance as the consequences of failing to do so can be extremely serious.

What happens if you don’t comply with the directors’ duties?

Failure to comply can have serious legal consequences. A director who is found to be in breach of any of his/her duties will (in some circumstances) be personally liable to the company for the financial loss suffered as a result of the

breach or may be disqualified from being a director.

richard Dawson-Gerrard is head of the dispute resolution team at award winning, Manchester based law firm George Davies solicitors LLP.

richard regularly advises directors on compliance and failure to comply with their

duties. For an initial consultation please

contact Richard on 0161 234 8797 or email him at richarddawson-gerrard@

georgedavies.co.uk

Directors – do you know your legal duties?

Richard Dawson-Gerrard



FroM the dawn of time, mankind has been faced with the possibility that things can and will go wrong, and there is a need to provide for such times.

From a business perspective, this was formalised in the 13th Century when merchants wanted to protect their ships from the uncertainties of going to sea, such as losses from storms. Wealthy individuals agreed to receive a certain amount of money from each ship owner in exchange for a promise to pay for a lost ship when it occurred ... and the risk financing process called “insurance” was born.

to this day, and especially in these turbulent economic times, the need to provide for funds or capital for payment of losses is a key business strategy for organisations.

traditionally, an organisation’s risk financing strategy is to place such risks associated with potential losses with a commercial insurer. however, another option is for organisations to retain that risk through the formation of a ‘Captive’ insurance company, which may be more efficient and effective than the traditional method.

so what is a captive? We hear about it being talked of in almost hushed tones… seems to be a black box when it comes to what it is and how it works. Well, let’s start with a basic definition and go from there: “A pure Captive is generally thought of as an insurance company that provides insurance on all, or some, of the risks, hazards and liabilities of its parent and/or affiliates”.

The word ‘pure’ is mentioned to highlight

Insuring your business against financial risks can be a complex and costly process, which is why it is worth considering a ‘captive’ option, says Steve Clarke, (right), Director, Financial Services Group, Deloitte LLP

Company A

Asset Portfolio

Premiums Claims CapitalDividends

Investments Investment income

Captive

Diagram 1: How a Captive works

Financial benefits Insurance benefits

• Better risk management • Response to lack of available insurance and hardening insurance market

• Reduced insurance costs • Access to reinsurance markets

• Improved cashflow • Coverage for risk not usually insurable

• Potential tax advantage • Formalised insurance programme

• Potential profit centre • Reduced need for commercial insurance

• Flexibility in programme design

‘Captive’ alternative to rising insurance costs

the fact that there are several variations of captives as is mentioned later in the article.

Now we have that out of the way, we can examine more carefully the decision to create a Captive, which is based on the risk financing strategies of the organisation. Part of that decision involves determining the jurisdiction of the Captive. traditionally for UK companies, jurisdictions such as Guernsey, Luxemburg and Bermuda have been the domiciles of choice, but this may be

changing with the upcoming regulatory reforms such as solvency 2.

We turn now to how the Captive structure actually works: the diagram below provides a guide of the basic flow of funds involved in such structures (see Diagram 1, below).

Using the above, envisage this scenario. A company – let’s call it Company A – is finding it difficult to access reasonable professional indemnity insurance coverage. Its claims history is pretty good, but because of the a few bad apples in the market, ie, PPI claims, it is being lumped into the same barrel.

Company A does some investigations and finds it can invest some capital in a Captive, which is its subsidiary. Then Company A pays a premium to the captive and in the event of the claim the Captive pays the cost of the loss.

The premiums received by the Captive are invested, typically by managers appointed by Company A and any profits can be dividend back to the company.

Now, the above is a very basic structure, and there are some other key parts to it, but why would you not consider this, particularly if it is cheaper than the insurance costs

Diagram 2: The benefits of a Captive



Top 10 Captive domiciles

Domicile 2011 2010Bermuda 862 845Cayman Islands 707 705Vermont 590 572Guernsey 343 341Barbados 270 242Anguila 268 252Luxembourg 242 244Utah 239 188British Virgin Islands 174 219Hawaii 172 167Ranked by number of Captives• Source: BI survey

hitting your profit and loss statement? Another key point to note is that there are

many variations and hybrids of captive structures in the market, which are not all very straightforward but which are constructed to fit the needs of just about any organisation.

What types of variations are encountered? Well, they could be in the form of association captives, which involve organisations who may share a similar purpose or industry, which group together for this purpose.

They can also be seen in the form of segregated or protected cells, where the organisation may forgo or have a greatly reduced capital injection than is needed from a traditional captive structure.

some of these structures can become pretty complex and, as some advisors have lamented, unnecessarily so. What is clear is that there are several benefits that could be derived from forming a Captive and these can be summarised between financial benefits and insurance benefits, some of which are noted in Diagram 2, above left.

The reasons for setting up Captives are varied, but generally centre on the need to access reinsurance or insurance which may be difficult to obtain commercially.

however, the bottom line is that an organisation makes the decision based on whether it can be a financially advantageous method of funding retained risks while supporting their business objectives – that is, it needs to make financial sense!

Want to know more?If you are interested in finding out more about Captive insurance companies, contact Steve Clarke at Deloitte LLP on 0161 455 8941 or via [email protected]

New Members...

Mr S Colvin MIoD Transmode Systems AB Cheshire BranchMr M Braddock MIoD Frank Roberts & Sons Ltd Cheshire BranchMr M Roberts MIoD Frank Roberts & Sons Ltd Cheshire BranchMr A Boulton-Briggs MIoD Turbine Controls Ltd Cheshire BranchMr R Hamblin-Boone Cash Centres Ltd Cheshire BranchMs S Peters Nottingham Trent University Cheshire BranchMr W Hamlin Johnsons Moving Services Cheshire BranchMr A Morley MIoD Xtraloc Ltd Cheshire BranchMrs W Davies British Sub Aqua Club Cheshire BranchMr A R Richardson MIoD Convatec Ltd Cheshire BranchMr B Findlay MIoD CMC Intl Ltd Cheshire BranchMs J Mogan MIoD DTM Legal LLP Cheshire BranchMs S Cheetham MIoD Ryman Ltd Cheshire BranchMs M Cabrera Uren Food Group Ltd Cheshire BranchMrs R Patterson PIMSS Data Systems Ltd Cheshire BranchMr G Davies MIoD RKD Computers Cheshire BranchMr S Thomsen MIoD Lehvoss UK Ltd Cheshire BranchMr D Polkey Sellafield Ltd Cumbria BranchMr S Rogan Simmons Edeco Europe ltd Cumbria BranchMr T Wright Management Learning Ltd Cumbria BranchMr D Culshaw MIoD UK Carline Ltd Lancashire BranchMr M Lyth MIoD James Briggs Ltd Lancashire BranchMs C Beaumont Ortolan Legal Ltd Lancashire BranchMr C T Melia MIoD CTM Management Ltd Lancashire BranchMrs L Lord MIoD Natures Aid Health Products Ltd Lancashire BranchMr S Berry University of Central Lancashire Lancashire BranchMiss A Dowling University of Central Lancashire Lancashire BranchMr D Foy University of Central Lancashire Lancashire BranchMr R Hamilton University of Central Lancashire Lancashire BranchMiss S Hoque University of Central Lancashire Lancashire BranchMr T Harrison University of Central Lancashire Lancashire BranchMiss E Izzi University of Central Lancashire Lancashire BranchMr J Khan University of Central Lancashire Lancashire BranchMs K Kalisz University of Central Lancashire Lancashire BranchMr R Lowson University of Central Lancashire Lancashire BranchMs E Miezite University of Central Lancashire Lancashire BranchMr H B Muhamad Suyat University of Central Lancashire Lancashire BranchMr M McLellan University of Central Lancashire Lancashire BranchMr R McFarlane University of Central Lancashire Lancashire BranchMr D Porter University of Central Lancashire Lancashire BranchMiss S Patel University of Central Lancashire Lancashire BranchMr S J Sunter University of Central Lancashire Lancashire BranchMr S Smith University of Central Lancashire Lancashire BranchMr D Taylorson University of Central Lancashire Lancashire BranchMr K Wilson University of Central Lancashire Lancashire BranchMr J Dunwell MIoD Morris & Spottiswood Ltd Lancashire BranchMr A Kumar MIoD Xchanging HR Services Ltd Lancashire BranchMr M Drage University of Central Lancashire Lancashire BranchMr E Hall MIoD The Land Trust Liverpool BranchMr B Beech Maltacourt Ltd Liverpool BranchMr M Beedles MIoD Connex Holdings Ltd Liverpool BranchMr S Hague Integrated Change.net Liverpool BranchMr J Osborne MIoD Bibby Maritime Ltd Liverpool BranchMr S Donnelly BTTG Ltd Manchester BranchMrs C Uphill MIoD National Landlords Association Ltd Manchester BranchMr M Twist Oakwood Energy & Environment Ltd Manchester BranchMr S Cassey Alere Ltd Manchester BranchMr I Lamb MIoD G & H Sheet Fed Ltd Manchester BranchMr L Sojka MIoD Hair Solved UK Manchester BranchMr S Humphries MIoD Clarke Nicklin LLP Manchester BranchMrs J Barringer MIoD Prospect Business Consulting Manchester BranchMr C Haynes MIoD Houghfold Associates Ltd Manchester BranchMrs K Whitby MIoD SAS Daniels LLP Manchester BranchMr P A Kenny MIoD Suttons Group Ltd Manchester BranchMr R Brown MIoD Glaisyers Solicitors LLP Manchester Branch

The following business leaders have joined the IoD in the North West since the last issue



Quantitative Easing in the UK was introduced in 2009. Richard Carter, Senior Fixed Interest Specialist at Quilter, examines what impact it has had on the economy, and asks how much longer can we expect it to continue?

%

6

5

4

3

2

1

0

Dec-07

Jun-08

Dec-08

Jun-09

Dec-09

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UK 10-Year Gilt Yields source: Bloomberg, 30 November 2012

qE: For better or worse?As We Are NoW more than three years into the Bank of england’s Quantitative easing (Qe) programme – with a total of £375bn having been ‘printed’ – many are questioning whether it is actually working.

After all, you would be hard-pressed to find anyone who feels wealthier than they did before Qe started.

The obvious response, although this may seem cold comfort, is that the situation would have been much worse without it. The reality, however, is that Qe has not solved the economic problems or addressed eurozone issues although it has probably kept asset prices, including equities and corporate bonds, higher than would otherwise have been the case. This in turn has lowered bond yields dramatically which should have positive consequences including lower government borrowing costs.

This is not to imply that there have been no negative consequences. While there have been few signs of a direct benefit for the high street, Qe has definitely had an impact on savers. Investors in government bonds are getting much lower yields – the chart below shows that 10 year gilt yields have fallen to 1.79 % (as at 28 November). As the Bank of england has been using the ‘electronic money’ it printed to buy gilts, it is no surprise that prices have gone up and yields have gone down.

Pension deficits are also a major concern. According to the Pension Protection Fund, the deficit on UK final salary pension schemes rose from £24.5bn in May 2011 to a record £312.1bn in May this year. Corporate pension schemes tend to own a lot of gilts and, with prices rising and yields falling, the gap between their assets and liabilities has widened.

It is possible that companies with pension deficits will have to cover them from profits. This means that – instead of building a factory which could benefit the wider economy - the monies will be used to top up pension schemes. Against this backdrop, the pension fund industry has, understandably, become increasingly vocal in its condemnation of Qe.

A different way?Another question that must be asked is how

long will Qe continue? In addition to the original £200bn in 2009, there was a further £75bn in october 2011, £50bn in February 2012 and another £50bn tranche at the beginning of July, although the MPC announced a pause at their latest meeting.

so far, the Bank of england has used this huge sum to buy conventional gilts. It now owns one third of the UK gilt market but there is still plenty for it to snap up. however, with yields at current levels, continuing down this

road may not be the wisest choice. some ‘mavericks’ on the Monetary Policy Committee have said that, if Qe is to continue, the Bank needs to look elsewhere – possibly to index-linked gilts or even corporate bonds.

This is clearly a more risky route. The Bank is indemnified by the government for any losses it incurs on gilts. If it were to buy corporate bonds, it would be taking a credit risk and would probably only do so if the government was prepared to extend the indemnity. Meanwhile, the effect of Qe seems to have run out of steam and the situation has not been helped by inflammatory headlines with the government blaming everything on the eurozone crisis.

one key problem is that the Bank is unable to cut interest rates much further but the government is committed to reducing the deficit. When fiscal policy is very tight, monetary policy generally needs to be loose. Qe is an important element of what the authorities are trying to achieve as it is partly designed to offset any negative effect on growth.

The waiting gameThe Bank of england decided to announce a

pause in Qe at their latest meeting in November, partly due to increased doubts over its effectiveness as well as worries about rising inflation. Their decision was also influenced by the treasury’s grab of around £35bn’s worth of coupons being paid on the Bank’s gilt holdings.

The Bank of england obviously have high



What next for the Old Lady? (pictured above): While the Bank of England’s previous attempts to boost the economy with Quantitative Easing have been well-received, it’s likely that further moves would not be welcomed as enthusiastically

Quilter provides bespoke investment management for private clients, trusts, charities and pension funds. For further information about Quilter’s services, contact:

About Quilter

Richard Thorn, Head of Liverpool Officet: 0151 236 8281e: [email protected]

David Rothburn, Head of Manchester Officet: 0161 832 9979e: [email protected]

w: www.quilter.com

hopes for their plan to improve credit creation – the Funding for Lending scheme. however, there is not much evidence of this working so far and Mervyn King and his colleagues have left the door open to another round of Qe, should the economy take a turn for the worse next year.

The situation could change if, by some miracle, the eurozone is able to get its act together, financial markets rally and confidence improves. otherwise, it is hard to know when the Bank of england will stop Qe.

The end of the programme still appears to be some way off and is unlikely to happen unless the eurozone crisis is resolved. how and when that will be is still anyone’s guess.

ContactsIoD North West Regional Office

Regional Director: Darrell Matthewst: 0161 247 7693e: [email protected]

Regional Administrator & Events Manager: Andrea Lowee: [email protected]

IoD Hub, 19th Floor City Tower, Piccadilly Plaza, Manchester M1 4BTt: 0161 247 7634f: 0161 236 5249w: www.iod.com/northwestTo book a Meeting Room, call 0161 212 2222 or email [email protected]

North West Regional Committee Chair, IoD North WestTony Attard OBEe: [email protected]

Chair, IoD LiverpoolLorraine Doddt: 0151 236 6666e: [email protected]

Chair, IoD LancashireJohn Kerseyt: 01772 655552e: [email protected]

Chair, IoD ManchesterPhil Smitht: 07725 223 036e: [email protected]

Chair, IoD CheshireAndy Duxburyt: 01244 405555e: [email protected]

Chair, IoD North West Young Directors’ ForumMark Collint: 07736 957 291e: [email protected]

Chair, IoD CumbriaNeil McNicholast: 07785 393540e: [email protected]

Chair, IoD North West Public Sector ForumMahmood Adilt: 07867 538123e: [email protected]

Press EnquiriesClaire Aniteye, MC2t: 0161 236 1352e: [email protected]

Since 1771 we have been asking the questions that count in investment management. We could have the answers you are looking for.

For further information, please contact: David Rothburn Richard ThornHead of Manchester Office Head of Liverpool Officet: +44 (0)161 832 9979 t: +44 (0)151 236 8281e: [email protected] e: [email protected]

w: www.quilter.com

HOW CAN ASKING THE QUESTIONS THAT COUNT BENEFIT YOUR FINANCIAL FUTURE?

Quilter is the trading name of Quilter & Co. Limited. A member of the London Stock Exchange and authorised and regulated by the Financial Services Authority.

iod north west winter 2012

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