Business Month December 2014

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December 2014 • ISSUE 49PRICE £2.50(Where sold)

3 November 2014 BUSINESS MONTH

• INFRASTRUCTURE • JONATHAN FLINT ON ANDOR • DENROYPLASTICS • 2014 ECONOMY WATCH SPECIAL • THE CHAIRMAN

THE SECRETSUCCESS

You’ll see few picturesof them and even fewer

quotes. This portrait isa rare glimpse of one

of the scions of thecompany — and yetthe Barnett family is

responsible one ofNorthern Ireland’s

biggest businesssuccess stories

Business Month 124-144 Royal Avenue,Belfast, BT1 1EBEditor - Margaret Canning

Sales manager - Jackie ReidContact: +44 2890 264070 or email:[email protected]

Design and production: RE&DBusiness Month is an imprint ofIndependent News and Media (NI)

Editor’s noteMargaret [email protected]

CONTENTS

31 December 2014 BUSINESS MONTH

WELCOME toDecember’sissue of Busi-ness Month,which will find

many businesspeople on ten-terhooks as the Prime Ministerfinally delivers a decision onNorthern Ireland’s corporationtax debate (we hope).

It’s been a long road for thestalwarts of the campaign butone many of us hope will reachits destination before ourChristmas decorations go up.

And while businesspeoplein the province are naturallydisposed to Christmas goodcheer, we also have reason tobe nervous about economicprospects to come.

The austerity which hasgripped the Republic in an icyembrace is now travelling north- one form of cross-bordertrade we could well do without.The year ahead may be one inwhich we’re finally forced toswallow some pretty unpleas-ant medicine. Eurozone nervesare also expected to impact onNorthern Ireland, making ourbelow-par export performanceworse.

But we have already comethrough a tough period andare leaner, meaner and moreresilient as a result.

Indeed, by November we’dnotched up 16 months ofimproved business activity, sothere is something to celebrateat this year’s Christmas party.And if it’s harder to maintainthat performance in 2015, itwon’t be for want of trying.

Merry Christmas, and seeyou in 2015.

FEATURES

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12 Analysis: High performancecomputing can help fast-trackSME growth and innovation14 Analysis: Northern Ireland’seconomy can grow if ourpredominantly family-ownedbusinesses spread their wings andexpand into overseas markets16 Economy Watch: Wages andprofits under the microscope22 Analysis: Ohio is a greatexample of economic success,writes Alan Watts24 Breaking the Mould:His company bought Andor lastyear - now Jonathan Flint revealshis passion for science

.FOCUS38 Independent retailers: As ourshopping trends change,our shop owners are reportinga boost in sales , taking on thesupermarket giants42 Fit-out firm:The companies which have workedon some of our best restaurants,pubs and shops — and evenventured to Disneyland, Paris

OFFLINE46 Out to Lunch: Joris Minne sitsdown with James Nicholson, thearchbishop of the wine trade, whoshares his love for wine48 Day in the life: SimonCampbell managing director ofPortview Fit-Out58 The Chairman: Our man abouttown gives us the inside track onbusiness.62 Last Word: Willtheriseoftherobotsheraldanewgoldenageintheworldofwork?

FIELDS OF GOLDWhat is the secret behind thephenomenal performance ofNorthern Ireland’s mostillustrious businesssuccesses, W&R Barnett?

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COVER STORY

NEWS BITES

£7.7bnUK public sectorborrowing in Oct

£0.2bnFall in borrowing on Oct2013

£64.1bnAmount borrowed bypublic sector April to Oct

£3.7bnIncrease in borrowing onsame time 2013

£341bnCentral governmentincome April to Oct

Source: Office for National Statistics on public sector finance

4 BUSINESS MONTH 1 December 2014

Financial firm expandswith 600 new jobs

FINANCIAL services firm Citisays it is creating 600 new jobsas it further expands its Belfastoperations.The company currently em-

ploys some 1,500 people at itsTitanic Quarter office.The new positions will boast

average salaries of around£35,000. It’s an overall invest-ment worth £54m to the North-ern Ireland economy.Citi has operated in Belfast for

nearly 10 years. It increased itsworkforce from 900 people toaround 1,400 after a jobs boostback in 2010.Invest NI has put forward

almost £6m towards the invest-ment.James Bardrick of Citi praised

the talents of Northern Ireland’sworkforce. “The success of ourcurrent operations in Belfast wasan important factor behind thislatest decision to create another600 jobs,” he said.

Luggage courier takesslice of the Big AppleINDEPENDENT luggage courierSendmybag.com has opened abranch in New York, creating adozen new jobs shared betweenthe newUS base and its Co Downheadquarters.The baggage carrier, started

by Bangor entrepreneur AdamEwart, has launched 50 newroutes from Europe to the USwith luggage shipping chargesstarting at $99 (£63).The Big Apple office was

launched to provide in-countrycustomer service support and amarketing base for SendMyBagin America. Mr Ewart confirmedthemove would result in at least10 new posts over the next six to12 months.

US port officials eyewaterfront designOFFICIALS from a port inWash-ington state are set to visit theTitanic Quarter as they consider

modelling a proposed redevel-opment on Belfast’s waterfront.Titanic Quarter has provided a

calling card for its Donegal-baseddeveloper Harcourt which couldhelp it secure amajor contract forPort of Bellingham.The firm, which is headed up

by Pat Doherty, is in the runningto clinch a deal to redevelop 20acres of waterfront in Port ofBellingham.The project is expected to cost

$44m (£28m) with half of thecost covered by the state, andwould take around eight years.

Prison software couldbe a Danish successACOMPANY specialising in tech-nology for prisons has carried outa major export mission to theNordic region, helped by InvestNI and British Airways.Core Systems (NI) Ltd in north

Belfast was one of the winners ofthis year’s Export Challenge, sup-ported by Invest NI and BritishAirways.

Their prize was a set of BritishAirways flights to the exportdestination of their choice, alongwithmarket research advice fromInvest NI.The company’s chief executive

Patricia O’Hagan said it chose tovisit Denmark to seek out cus-tomers for its technology.The firm has been in business

for around 20 years, developingsystems which help prisonersaccess information and educatethemselves, therefore helpingtheir rehabilitation.Denmark’s liberal penal regime

allows prisoners to leave jail towork in the community as partof their sentence.The company’s commercial di-

rector and business developmentmanager travelled to Denmarkin August to carry out marketresearch and make new connec-tions by visiting prison facilities.A spokeswoman for Core Sys-

tems said: “The trip helped tobuild strong relationships withthose in charge of criminal justicewithin an innovative country.”

Bank’s massive fineover software blunder

A FAILED software upgrade —which left 700,000 Ulster Bankcustomers being unable to usetheir accounts for three weeks— led to the biggest ever finehanded down by the regulator.The Financial Conduct Au-

thority (FCA) and the Bank ofEngland’s Prudential RegulatorAuthority (PRA) slapped theRoyal Bank of Scotland (RBS),which owns Ulster Bank, with afine of £56m for the ITmeltdownin June and July 2012.The banking group, which also

includes NatWest, has alreadypaid £70.3m in compensationto its customers because of theproblem. A further £460,000 hasbeen paid to those who were notcustomers but were still affected.In November, Ulster Bank

was fined €3.5m (£2.7m) by theRepublic’s financial regulatorsfor the effect it had on the bank’scustomers south of the border.

HOMES DEAL: Housing association Helm Housing has announced a contract worth £25m over seven yearswith H&J Martin. The firm will provide response maintenance services to 15,000 tenants in more than 5,000properties. Around 30 H&J Martin staff will be involved in the work and here, H&J Martin managing directorDerek Martin, left, joins Michael McDonnell, chief executive of Helm Housing, to announce the deal

NEWS BITES


Invest NI has ‘promoted’ some 10,800 jobs during the first half of this year

demands to be issued in 2015.Those benefiting from the re-

valuation includemany licensedpremises, which have been se-verely hit by changing consumerbehaviour. There has also been asignificant change in the assessedmarket values of retail propertiesin Belfast. Shops in the Donegall

Place area of the city are likelyto have their rates bills halved.Other city and town centre shopsacross Northern Ireland willalso gain.Losers include out-of-town

shopping centres, large foodstores, some pubs in more fash-ionable parts of Belfast, windfarms and othermajor infrastruc-ture assets.Since the 2001 valuation, com-

mercial property prices first rosesubstantially and then crashed.The overall valuation assess-ment is that commercial proper-ties across Northern Ireland areworth 8% more last year thanin 2001.

BUSINESS rates have been re-valued, with the result that com-mercial property owners willpay rates based on their 2013valuations rather than the 2001valuations as was previouslythe case.While some businesses will

pay more in business rates thanbefore, the exercise does notmean thatmore business rates intotal will necessarily be collected.The impact of the revaluation of73,000 non-domestic propertiesis to redistribute the burden ofbusiness rates more fairly, inline with recent market values.The valuations will be used forthe first time for business rate

Ratesrevaluation produces winnersand losers

▲ HOUSE SALES:The number of house sales inNorthern Ireland rose by 21%in the last year, with averageprices rising by 7%.

▲ MORTGAGES:Gross mortgage lending in theUK rose by 8% in the last year,to £17.5bn. This is the largestamount since 2008.

▲ CONSTRUCTION:UK construction industryoutput rose by 3.5% in the lastyear. It has now grown year-on-year for 16 consecutivemonths.

▲ SELF-EMPLOYMENT:The number of people in the UKbecoming self-employed roseby 6.6% in the last year: 14.7%of the UK workforce is nowself-employed.

▼ UNEMPLOYMENTUnemployment in NorthernIreland fell by 1.3% in the lastyear, to 6%.

▼ NEETS:The number of young adults,aged 16 to 24, in the UK whowere not in education, employ-ment or training (Neets) fellby 142,000 in the last year, to954,000.

▼ POUND:The value of sterling has fallenby nearly 10% against thedollar since July, when a poundbought nearly $1.72, comparedto $1.56 in late November.

▼ REPOSSESSIONS:Mortgage arrears and repos-sessions in the UK are falling.The proportion of mortgagesin serious arrears – equivalentto 2.5% of mortgage value –fell from 1.33% to 1.12% in thelast year. This is the lowestproportion since the beginningof 2008.

INVEST NI has reported itsstrongest ever half year results.It reports that 10,800 jobs havebeen ‘promoted’ — either cre-ated or promised — in the firsthalf of 2014, supporting £1.11bnof investment in the NorthernIreland economy.Some £126m of investment

has been offered by Invest NI, ofwhich £35m is going to small tomedium-sized enterprises here.More than half of supportedresearch and development invest-ment is related to the activities ofthose SMEs. Firms here are alsoresponsible for more than halfthe jobs that have been promoted,said Invest NI.In response to a request from

Business Month for details oflocations of jobs promoted inthe half year, Invest NI provideda list of firms where agreementshave been announced. These arescheduled to provide an addition-al 7,526 jobs. Of these, 57% werelocated in Belfast, while 70%were either in Greater Belfast orthe nearby areas of Antrim, Bal-lymena, Carrickfergus, Lisburnand Newtownabbey.The largest job creation pro-

jects were Concentrix, which iscreating 1,043 jobs in Belfast;PwC, 807 jobs in Belfast; MoyPark, 628 jobs spread acrossBallymena, Craigavon and Dun-gannon; EY, 486 jobs in Belfast;First Derivatives, 484 jobs inNewry and Capita, 400 jobs inNewtownabbey.Despite Invest NI’s success in

attracting investment and jobs to

Belfast, unemployment remainshigh in the city. Claimant countunemployment in Belfast was6.2% in October, compared withthe Northern Ireland averageof 4.4%. The lowest rate wasrecorded in Castlereagh, where

it was 2.7%, and the highest wasin Londonderry, at 8.2%. Claim-ant count unemployment hasfallen in the last year by 11.9%in Belfast, compared to a fall of27.4% in Dungannon, but just5.1% in Derry.

Invest NI enjoys its best ever resultsPAUL GOSLING

NEWS BITES


NORTHERN Ireland’s businessleaders have called on the Ex-ecutive to take faster action toraise educational outcomes andaddress the number of childrenleaving school without basicskills.The call followed the latest

report from the chief inspectorof education and training. NoelleBuick praised schools for the risein the number of school leaverswho achieve five good GCSEs.She added: “Northern Ireland’s

education and training systemhas unacceptable variations andpersistent shortcomings whichneed to be addressed urgently ifwe are to improve our provisionand outcomes from average totruly world-class. Whilst educa-tional outcomes are improvingto varying degrees across all theeducation and training phases,the differences in provision and

achievement reflect a system thatserves some better than others.”Education Minister John

O’Dowd said: “There is a con-sistent downward trend in thenumber of young people leavingschool each year without reachingthe crucial standard five goodGCSEs. I want to see this trendending, but I recognise thereare still too many young peoplein this position and that there ismore work to be done by all of usin education.”Ensuring that Northern Ire-

land has the right skills for itseconomy is “critical”, said NigelSmyth, director of CBI North-ern Ireland. “It’s important thatbusinesses seize the opportunityto work with schools and col-leges and ensure that NorthernIreland’s students are equippedwith the skills firms want in theiremployees. Science, technology,engineering and maths skillsare particularly valuable, given

existing shortfalls and the needto meet the opportunities thosesectors will provide over thecoming years.“Businesses are looking for

young people who are rigorous,rounded and grounded. Gettingthe basics of literacy and nu-meracy right are essential — weneed increased rigour withinthe education system to ensureall young people achieve theappropriate standards in theseessential skills.”Gavin Killeen, who chairs the

North West Skills Directorate,said: “If we measure the successof our schools on their resultsthen we have schools offeringeasier subject choices rather thanthe harder Stem-based subjects:for example, the ICT A-Level Vsoftware development.“NI plc needs kids with higher

level of computational skills andthis only comes from the Stem-based subjects. ”

Executive‘mustacttoimprovepassrates’PAUL GOSLING

The private rented sector provides 19% of Northern Ireland housing

THE Department for Social De-velopment has announced thatit is to conduct a review of theprivate housing rental sector,with the objective of increasingthe supply of privately-ownedproperties available for rent.The review will examine theeffectiveness of regulation andwhat improvements can bemadeto help make the private rentedsector a more attractive andviable housing option.The private rented sector now

provides 19% of Northern Ire-land housing. Private landlordsreceived £410m in 2013/14 fromhousing benefits.

Nicola McCrudden, directorof the Chartered Institute ofHousing Northern Ireland, said:“There are genuine issues of af-fordability in the private rentedsector, particularly for peopleon benefits. Many tenants arestruggling tomeet the increasingshortfall between their housingbenefit and their rent.“Since early 2013 there has

been a 10% jump in the numberof homeless households present-ing to the Housing Executivebecause they have lost theirrented accommodation. This isan indication that welfare reformchanges are already biting.”

Private rents under review

LOW productivity is hold-ing back Northern Ireland’seconomic recovery, which isalso being damaged by re-stricted consumer spending,according to PwC’s latest UKEconomic Outlook. Yet growthin 2014 was largely driven byconsumer spending, ratherthan by the more sustainableeconomic drivers of exports,investment and higher pay.The consumer spending

that has taken place has beenfinanced to a significant ex-tent out of savings, says PwC.This call on savings may nowhave reached its limit, warnsthe study, as the savings ratiocan only fall so far.Economic growth for 2015

is now projected by PwC at1.9%, compared to 2.5% inthe UK as a whole. NorthernIreland has the weakest eco-nomic prospects of any UKregion next year, says PwC.It also warns that NorthernIreland’s average householdincome per head is less than83% of the UK average andthe lowest of any UK region.“Consumer spending

growth has been relativelystrong for the past two yearsdespite weak average earn-ings growth,” said Dr EsmondBirnie, PwC’s chief economistin Northern Ireland.“This has been due to

strong employment growth,increased income tax per-sonal allowances and lowmortgage interest rates, allof which have stimulated con-sumer spending. We expectthe proportion of householdspending on essentials likehousing costs and utilities torise steadily.”He added: “Northern Ire-

land has enjoyed a significantincrease in job creation overthe last 18 months, but thishas not translated into wealthcreation which is essential toclose the gap with the rest ofthe UK.”PwC expects Bank of Eng-

land base rates to rise. “Forbusinesses, that’s going toput pressures on liquidityand for families, it’s going topush up the cost ofmortgages,overdrafts and credit cardrepayments,” said Dr Birnie.

Productivityand spendingholding us back

Pay falls 1.4% inNI, widening gapwith rest of UKAVERAGE pay in NorthernIreland fell 1.4% this year, ac-cording to the Annual Surveyof Hours and Earnings. Thiscompares with amarginal riseof 0.1% in the UK as a whole— the smallest increase since1997. However, pay in both theUK and NI fell in real termsonce the rate of inflation istaken into account.Full-time average pay in

Northern Ireland is nowmorethan £3,000 a year less thanin the UK. NI average pay is£23,764, while in the UK it is£26,936. Average pay in NI isnow the lowest of any regionin the UK and it is one of onlytwo regions in which averagepay fell in the last year.Unusually, average pay for

women in NI is higher thanthat for men. This reflects thehigher proportion of womenworking in the public sector. InNorthern Ireland, public sectorpay now stands on average at41% higher than private sectorpay. In the UK, public sectorpay is 17% higher.Just 10% of workers in NI

earn more than £43,200 peryear, while one in 10 earns lessthan £13,200.

NEWS ANALYSIS


THE public procurement mar-ket across the island is wortha staggering £9.5bn. Given itslucrative nature and significantpotential, it is surprising to findthat only 14% of firms have bidfor a public sector tender in thelast 12 months.That was a finding in the Inter-

TradeIreland Quarter 2 BusinessMonitor, which also highlightedthat less than a quarter of thebusinesses that did take partin public procurement bid onprojects on a cross-border basis.However, of those companies thatdid, encouragingly more thanhalf (52%) were successful.It is true to say that companies

really could be missing a trickwith public procurement, bothlocally and also cross-border, butit is also the case that firms areseeing some challenges.The impending changes in

how public goods and servicesare tendered is likely to makethis a little daunting initially forsmaller firms who do not keepthemselves informed. However,this does notmean organisationsshould shy away from tenderingas this will also present newopportunities for SMEs.A consequence of these chang-

es is that the number of individ-ual tenders is expected to dropwhile the value of tenders willalmost certainly rise over time.‘Adapt’ is the first piece of

advice that we would offer toSMEs. For organisations whichhave been successful in the ten-dering process in the past, donot rest on former successes asthe changes will likely affect yougoing forward.First and foremost, ensure you

are hearing about the contracts.Only a small number of SMEsacross the island are registeredon public procurement portalsbut this can be an essential tool.If firms are not listed current-

ly, they should do this as soonas possible. If they are alreadylisted on eTenders (for southernopportunities) and eSourcing (forNI contracts), visit the websites,update your information andcheck the details you have pre-viously entered are still relevant.Secondly, consider partnering

to advance. Local firms shouldlook to both www.dfpni.gov.uk/cpd and www.procurement.ie asa useful starting point.The realignment and centrali-

sation of the tendering processesacross the island by Central Pro-curement Directorate (CPD) inNorthern Ireland and Office ofGovernment Procurement (OGP)in Ireland presents new oppor-tunities and smarter tenderingtechniques will help firms tomaximise these. Bidding locallyand also on a cross-border basisremains an underexploited busi-ness generation tool.With that in mind, InterTra-

deIreland has enhanced its ser-vices and now provides a morecomprehensive suite of specifictendering supports, includinga consortia facilitator to assistfirms in partnering with others.We regularly hold events

such as ‘meet the buyer’ whichthousands of firms have foundextremely beneficial and offers

them the unique opportunity tomeet public sector buyers face toface from across the island.Our award winning Go-2-Ten-

derWorkshops, where SMEs canhone their tendering skills, arealso extremely popular and oftenover-subscribed.These two-day workshops give

SMEs the confidence, knowledgeand practical skills to tendersuccessfully for public-sector con-tracts, particularly on a cross-bor-der basis.These workshops have been

updated, based on the new publicprocurement practices north andsouth. Advanced Go-2-Tenderworkshops take the learning astep further, helping SMEs bid formore complex contracts.For further information on

the range of tendering supportavailable from InterTradeIrelandand details of upcoming Go-2-Tender workshops and events,visit www.intertradeireland.com/public-procurement

Lucrative public procurement

Cashing in: businesses are failing to bid for work in a market which is worth £9.5bn on an all-island basis

SMEs could be missing out on public sector tendering opportunities,accordingtoMargaretHearty,actingchiefexecutiveof InterTradeIreland

with other companies to bid forthese larger tenders. Choosethese partners wisely — perhapsa competitor could join you in aconsortium? Consortia buildingsuch as this can marry com-plementary skills of differentfirms to better address tenderrequirements.This may seem daunting but

it can lead to many other futureopportunities way beyond thescope of the tender. Workingin tandem with a partner canopen up a whole new world ofpossibilities for firms and initiallocal successes can progress toGB and wider European bidswith significantly more publicpurchasing power.Our third piece of advice is for

firms to thoroughly research theprocurementmarket. Categorieswill be coming into effect and un-derstanding how the newmarketworks andwho the public buyersare within your category willbe essential to those who wish

NEWS ANALYSIS

enabling power it brings.PathXL, a global pioneer in

the use of web-based solutionsfor digital pathology based atthe Northern Ireland SciencePark has used it to speed up theiranalysis of tumours using digitalimagery.Speaking at our recent HPC

launch Professor Peter Hamilton,VP research and development atPath XL explained the key bene-fits of the service.“Our area of business is looking

at very largemedical images, be-ing able to analyse those imagesquickly, cost effectively and beingable to detect cancer within thoseimages.This just cannot be achieved

successfully with normal com-puter technology so high perfor-mance computing and the abilityto parallelise difficult complexcomputational tasks is reallyimportant. Fujitsu has providedus with the framework and thecapability of doing that.“This allows us to accelerate

our research and developmentprogram within Northern Ire-land, allowing us to deliver newsolutions that are going to helpwith cancer diagnostics in thefuture.”One of the challenges that

PathXL facedwas that the digitaltissue images they analyse areenormous, probably the largestimages currently generated inmedical practice, with manymillions of slides being generatedannually in cancer diagnostic andresearch labs across the country.It became clear that conventionalcomputer processing was notsufficient to analyse these tissueimages with the precision, accu-racy and importantly, the speedthat was needed.TheHPC Service is now provid-

ing PathXL with essential archi-tecture to deliver the processingspeed that it needs in its ongoingresearch and development pro-gram. Having already moved itssoftware across to the FujitsuHPC platform PathXL believethat this will really reduce thetissue analysis time significant-ly, allowing it to develop, testand deliver its cancer detectionsoftware more quickly and cost

effectively than they have beenable to do previously. This willallow companies like PathXL tocontinue to develop world lead-ing solutions in medical imageanalysis and cancer diagnostics.The Institute of Electronics,

Communications and Infor-mation Technology (ECIT), theQueen’s University centre whichcommercialises research and ex-pertise in cyber security has usedthe service to test facial recogni-tion software to assist trackingpeople in real time using CCTV.Stephen Wray, commercial

director at ECIT commented onthe difference HPC has made totheir work: “Cybersecurity as anindustry has a fundamental re-quirement for high performancecomputing.“We trialled the service running

simulations on huge amounts ofCCTV video data which normallytakes days to run but wewere ableto speed that up dramatically.”ECIT found twomain benefits

of Fujitsu’s HPC service — one isthe performance enhancementand the computer capacity thatthe service offered, while theother was the support servicewhich was tailored to their spe-cific needs.

ECIT is linked to some of theemerging cluster of cybersecuritycompanies around NorthernIreland. These companies aredeveloping technologies andsolutions in a landscape wherethere is an increasing amountof data and a need to analysethat data in real-time. Many arestart-up or small companies, whocannot afford to build their ownhigh performance computing in-frastructure andwhywould theywhenever this service not onlyoffers access to some of the fastestand most powerful computersavailable but also the expertiseand tools needed to perform thecomputational tasks required.Working with our partner HPC

Wales, we are now offering SMEsin Northern Ireland access tothe UK’s largest distributed su-percomputing network througha simple web browser. Super-computing enables research tobe completed quicker, productsto reach market earlier and pro-duction costs to be reduced sig-nificantly. In many cases it hasmade what was once consideredimpossible, now possible. We arekeen to collaborate with anyonewho could potentially benefitfrom this enabling power.


DO you conductlarge-scale researchprojects or need toanalyse large data-sets? Ever wondered

what access to a supercomputercould do to turbocharge yourprojects? Fujitsu’s new highperformance computing (HPC)service brings a supercomputingservice to Northern Ireland forthe first time, something whichhas the potential to add signifi-cant competitive advantage to awide range of local businessesand researchers.For the first time many will

now be able to access world-class, secure and easy-to-usehigh performance computingtechnology which is critical tosolving advanced computationalproblems, but at high speed andat a fraction of the cost. High per-formance computing essentiallyspeeds up computationally heavytasks turning processing time ofmonths to days and days to hours.The technology is designed

to support the development ofNorthern Ireland’s knowledgeeconomy and has the poten-tial to fast-track product inno-vation, knowledge capital andcommercially focused researchapplication, not to mention theassociated job creation.Wewantto help more Northern Irelandbusinesses to compete on theworld stage— be that in software,healthcare, manufacturing, crea-tive industries or agriculture- andare very excited about the HPC’sprospects to help more increasetheir competitive edge.A similar service has been op-

erational inWales for some timeand has already been used acrossa number of industry sectorsincluding advanced materials,engineering and manufactur-ing, creative industries, energyand environment, financial andprofessional services, ICT and lifesciences, resulting in many newinnovations, company develop-ments and job creation.With our initial investment

plans, we want to collaboratewith local SMEs and research-ers to support their innovationstrategies. Two local companieshave already seen first hand the

Get in the fast laneHighperformancecomputingcanhelp fast-trackSMEgrowthandinnovation,writesNewlandMcKelvey, accountmanageratFujitsu

Supercomputing is coming to Northern Ireland for the first time

NEWS ANALYSIS

Northern Ireland has hugepotential but everyone needsto work together to achievecommon goals


“ONLY 3% of Northern Ireland’sincorporated businesses are ac-tually exporters, with half of theregion’s manufacturing exportscurrently accounted for by justsome 10 companies”.At first blush that may sound

like grim news but I prefer tothink more positively about it.Despite our modest export per-formance, our economy hasman-aged to grow (albeit at a slowerand more patchy rate than theother regions in the UK).So consider the opportunity

that lies ahead for significantand sustainable growth of theNorthern Ireland economy, ifour predominantly family-ownedbusinesses spread their wings andexpand into overseas markets.Another opportunity to be

grasped and exploited is NorthernIreland’s prowess for innovation.We know from the recently pub-lished knowledge economy index,a report commissioned by theNorthern Ireland Science Park,that Northern Ireland has one of

the fastest growing knowledgeeconomies in the UK.According to the research it is

a sector that has grown by 33% inthe past five years. The definitionof “knowledge economy” includesresearch intensive sectors where“new ideas, new products andnew processes are key determi-nants of competitiveness”.Sound too “techie” for North-

ern Ireland? Not in the slight-est. Northern Ireland has a richheritage in all these areas andBallymena-based Wrightbus isa prime example. Employingalmost 2,000 people, it is a fami-ly-owned business that combinesthe key ingredients of innova-tion and engineering excellencetogether with export sales toimpressively successful effect.Many of the big ticket merger

and acquisitions in recent yearshave happened in this sector ofthe economy and almost invaria-bly attract international investorsto these shores. In 2013 we sawsoftware giant Intel acquire local

software company Aepona andin the first half of this year, ourclient, Nasdaq-listed BrunswickCorporation, acquiredWhale, theBangor-based water, waste andheating systems manufacturer.Earlier in the year, another

client, Tyrone-based specialistmaterials handlingmanufacturerTelestack, was sold to Nasdaq-list-ed Aztec Industries for $36m(£23m). This international aspectto M&A activity is, in my view, atrend that is set to continue.I see this as an opportunity

not only for those shareholdersachieving an exit but also for thewider Northern Ireland economyas investment is pumped into thenewly acquired local businesses.Aepona’s workforce grew by

21% in the year after acquisitionandWhale chief executive PatrickHurst said its acquisition provid-ed greater security to the businessand opened up “direct access tothe largest markets in the world”.As the next Programme for

Government is being prepared,

the opportunity to really trans-form our economy by encour-aging our business owners toexpand operations into exportmarkets must be a priority.That means political stability

in emotive areas like parades andflags, financial certainty over theimpact of welfare reform andfinancial management of thedevolved government budget, allmust be achieved.I think that we have already

seen signs of changing prioritiesin Invest NI evidenced by thestrong pipeline of announce-ments in the legal services, fi-nancial services and ICT sectors.Facebook chief operating of-

ficer Sheryl Sandberg adviseswomen to “lean-in” in order tofulfil their potential. NorthernIreland has huge potential butwe need all the stakeholders —politicians, funders, universities,business owners, innovators andemployees — working towardsthat same goal, leaning-in tomake it happen.

Lean in togetherNeasa Quigley, partner and joint head of the corporate departmentat law firm Carson McDowell says working as one can reap benefits

ECONOMY WATCH


MixedOur economy perked up in 2014, with 16

theless, pay packets are not keeping up. Rich-while Brian Murphy ponders the improve-

OF late, Northern Ire-land has seen risinghouse prices, grow-ing business output,and a general,

overall recovery. One thing thathasn’t been on the up thoughis the wage packets going intopeople’s pockets. NorthernIreland’s recent Annual Surveyof Hours and Earnings showedthat the earnings of a typicalfull-time employee here fellby 1.4% this year. Within thesurvey’s data, though, it is averitable mixed bag, with wom-en faring better than men, andinequality between a range ofdemographics apparent.Income inequality has been

a big talking point globallythis year. Thomas Piketty’saward-winning book Capitalin the Twenty-First Centu-ry argued that capitalismgives rise to growing incomeinequality, necessitating stateintervention. One of its bigfindings was that there hasbeen a notably big rise in theincome shares of the top 1%in English-speaking countries(above all, the US) since 1980.Perhaps the most extraordi-nary statistic is that “the rich-est 1% appropriated 60% of theincrease in US national incomebetween 1977 and 2007.”Within Northern Ireland’s

wage data, inequality takesa variety of forms, includinggender, public sector versusprivate sector, and NorthernIreland’s pay performancerelative to the UK and otherUK regions.Data limitations prevent us

from identifying the ‘top 1%’ ofearners. However, looking atearned income for all employ-ees, it is noted that the wagepackets of the top 10% arealmost seven times larger thanthe bottom 10%. Adjustingfor full-time employees only,reduces the ratio to 3.3. Thisrepresents a slight narrowingrelative to 1997 when the top10% earned 3.6 times those in

the bottom. Meanwhile, thepay packets of the top 25% offull-time employees in North-ern Ireland earn twice theamount of the bottom 25%.

The narrowing of the gapbetween the top and bottom10% of earners has been drivenby the public sector, particular-ly among part-time employ-ees. There are two key areasof growing wage inequalitythat are a particular cause forconcern. These are the recent

divergence between male earn-ings in Northern Ireland andthe UK, and the widening wagegap based on age.Last month’s survey re-

ported a slump in NorthernIreland’s male earnings. Themedian full-time male weeklywage fell by 3.9% over the lastyear or 6.4% when adjusted forinflation. The correspondingUK figure was broadly flatin cash terms. As a result,Northern Ireland’s full-timemedian gross weekly wage formen has fallen to less than 83%of the equivalent figure in theUK. This represents the lowestshare since the series began in1997. Back then, Northern Ire-land’s median male earningswere 89% of their UK equiv-alent. Therefore the NI-UKmale earnings differential haswidened by 50% over the last17 years. Conversely, North-ern Ireland’s women havenarrowed the gap in full-timeearnings that existed with theUK in 1997 by 60%.There have been contrast-

ing fortunes for different agegroups. The older genera-

SALARIES tions have witnessed a hugeimprovement. But the youngergeneration has borne the bruntof unemployment with one-in-five of our 18 to 25-year-oldswho are looking for work una-ble to find employment. Whenyou consider that the youngergeneration also has a higherconcentration of low wageemployment, it is increasinglyapparent that they have beenhit hardest from the cost ofliving crisis, too. Accordingto some recent research, itis noted that the fall in realwages (adjusted for inflation)for those UK individuals aged18-25 years has been so severethat they are back at levels lastseen in 1988.Since 2008, the median

wage for all employees (full-time and part-time) has fallenin real terms by almost 14%.The median wage of employ-

ees aged between 18-21 hasalmost halved between April2008 and April 2014. Thoseaged between 22-29 and 30-39have experienced declinesof 21% and 12% respectively.Employees in their 40s and 50shave seen their pay fall by al-most 15% and 12% respectively.Meanwhile those employeesover 60 years of age buck thetrend and are the only age-group not to experience a realterms decrease in earningsover this period (+0.4%).A big focus in Northern

Ireland’s economy tends to beclosing the gaps with otherparts of the UK. When it comesto Northern Ireland’s medianfull-time wage, this hasn’tbeen happening. Indeed, it wascloser to the UK’s when theGood Friday Agreement wassigned in 1998.Indeed, while we have been

focusing on trying to close thegap with the UK, new wagegaps have actually been emerg-ing – notably between theyoung and the old. And thishas economic as well as socialimplications.

Richard RamseyChief economist Ulster Bank

Thenarrowing

of the gap betweenthe top and thebottom 10% ofearners has beendriven by thepublic sector

ECONOMY WATCH


fortunesmonths of improved business activity. None-ard Ramsey considers wage stagnation,ments in company performance and profits

OVER the last 12 to 24months confidencehas been slowlyseeping back intothe local economy

and there is no doubt that theprivate sector is in a betterplace now than at any stagebetween 2008 and 2012.While that is a generally

applicable statement, ourexperience has been that somesectors are moving ahead at afaster pace than others.Growth in profitability in

Northern Ireland firms haslargely been driven by the wid-er recovery throughout the UK,from export markets and froma general increase in consumerconfidence and spending athome.Businesses are tapping into

growing market confidence andare using this as a catalyst forgrowth. This is to be encour-aged and it is something we areseeing on a daily basis withinour client base.In Northern Ireland, the

agri-food sector has been a realsuccess story in the post reces-sion context. Indeed through-out the downturn, it was onesector which continued to boastgrowth and profitability.That was helped significantly

by the recent implementa-tion of the Agri Food StrategyBoard’s ‘going for growth’ strat-egy, which was backed by theNI Executive and in particularthe Departments of Enterprise,Trade and Investment andAgriculture and Rural Devel-opment.The hospitality and lei-

sure sectors, despite difficulttrading conditions during thedownturn, are also beginningto show signs of improvedperformance.Not only is the level of

confidence growing but weare seeing a tangible increasein business activity with a lotmore transactions in relation toproperty involved in this sector.There have been a number of

high profile projects announcedby Invest NI in recent months,all of which have involved jobswhich number in the hundreds.In general, the technology

sector is buoyant. We haverecently seen companies likeProofpoint creating 94 jobs inBelfast and Seagate in Lon-donderry and its multi-millioninvestment along with PuppetLabs, another software compa-ny investing and providing jobsin the province.This clustering of technol-

ogy companies can lead to ademand for skills by both newentrants to the market and in-digenous businesses. NorthernIreland is now developing areputation as a technology huband that will inevitably helpthe region attract even moreprojects and more investment.The construction sector was

the one which above all otherswas the demonstrable barom-eter of the downturn. Buildingfirms large and small sufferedand many unfortunately did notsurvive to take advantage of thedeveloping upturn.While the sector remained

deflated for some time, ourclients have been seeing op-portunities to reinvest in themarketplace and to rebuild themomentum that this sectoronce had. Some of the majorinfrastructure projects inGreater Belfast are testament tothe increase in confidence andprofitability within the sector.Property prices in residentialand business sectors are also onthe increase.In our experience, the com-

panies that are now achievinggrowth are those companiesthat have prepared for itduring the lean years of thedownturn. During this period,these businesses adapted tothe financial pressures andstructured themselves in sucha way as to insulate themselvesfrom the worst effects. Now aswe see growth returning to themarketplace, these streamlinedand stronger companies are ina perfect position to avail of theupturn.Confidence is key to the

growth of profitability forbusinesses in Northern Ireland.Businesses need to be ‘growth

PROFITS ready’ and that means havingthe right personnel in place,with the right skills and theappropriate resources.They cannot hold back in

investing in new products, intraining, in marketing and insales. Some businesses may bereticent about spending moneyas we emerge from recession,but success in growth oppor-tunities demands that level ofcommitment and investment.Traditionally the Northern

Ireland economy was dominat-ed by agriculture and manufac-turing industries.However, over the last 30

years, there has been a shift toa more service based economy,with the public sector account-ing for in excess of 70% of theeconomy. Business leadersacross Northern Ireland havelong been calling for a rebal-ancing of our economy, with amove away from the public tothe private sector in order toboost growth, profitability andenterprise. While such a strat-egy will no doubt be painful inthe short term, it can only befor the long term good.There are a number of

strategies being considered tostrengthen the private sector inNorthern Ireland.The local business com-

munity patiently awaits theGovernment’s intentionsregarding the devolution of taxpowers to the Northern IrelandExecutive, most importantlyincluding the power to varythe corporation tax rate. Areduced corporation tax ratewill benefit existing businesseswithin the private sector andwill increase the attractivenessof foreign investment.We are by no means clear

of the threat of economicinstability or the lingeringeffects of the recent downturn.However, the signs are good,and we should be encouragedto continue to work towards anew economic era of growthand prosperity.

Brian MurphyBusiness restructuring partner at BDO

COVER STORY


Jamie Stinson looks into the formula behind the phenomenal performance of one ofour illustrious — and elusive — business successes, agri firm W&R Barnett

SLOW and steady is thename of the game forW&R Barnett.We’ve seen tech

companies, like Googleand Facebook, rise to becomeglobal monoliths in a matter ofyears and rush to embrace PRto boost their profile.However, W&R Barnett,

which has over 100 years ex-perience in the job, is taking adifferent path, with a slow andsteady approach and a policy ofstaying out of the limelight. Allin all, they are the antithesis tothe ‘grow or die’ model.W&R Barnett, established

in 1896, is Northern Ireland’slargest international graintrader and the holding compa-ny of a group of international

commodity trading and agri-business firms, including JohnThompson & Sons.The fourth-generation busi-

ness is still run by the familythat bears its name, with Rob-ert Barnett (70), whose greatuncle co-founded the company,and his son William (38) be-hind the wall of the firm.The company expanded from

its origins as a grain merchant,and now has operations of avariety of areas, such as drybulk commodities, derivatives,molasses, oils, feed mills, labo-ratory testing, and storage.W&R Barnett had a turnover

just shy of £0.5bnlast year,making it the 10th biggestNorthern Ireland companyin terms of sales (Moy Park is

first with £1bn.). This broughtabout a profit of over £22m.The Sunday Times Grant

Thornton Top Track 250 leaguetable recently called it North-ern Ireland’s biggest mid-mar-ket private company followingits stellar 2013 performance.The success of the family run

firm has been built on inwardinvestment within the businessand acquisition. The purchaseof other companies has playedan integral role in the businessethos of the family throughoutall generations, with two of itsmost successful acquisitions(John Thompson and Sons andUnited Molasses) taking placemore than 50 years apart.Economist John Simpson,

who compiles the Belfast Tele-

graph’s annual Top 100 compa-nies, puts the success of W&RBarnett down to a numberof factors. Mr Simpson said:“The business has built upover most of the last 50 years,partly by expansion, partly byacquisition.” Alongside this‘their grain trade expertise hasgrown and grown, and theirskilful international buyingand financing,” has played abig role in their continued suc-cess, Mr Simpson added.A great understanding and

skilful management of thegrain market was needed whenthe UK system of grain importschanged upon the UK enteringthe European Union, accordingto the economist.The firm’s focus on acquisi-

SLOW RISE TO TOP


tions has left W&R Barnett as adominant player of the marketas a whole. Mr Simpson puts itssheer size and influence overthe Northern Ireland agricul-ture market as a big factor inits success. It has been so suc-cessful as it “has become largeenough to be a strong marketplayer on the whole island”.He added that its influence

in the grain market and agri-culture in Northern Irelandis “much more critical thansimply measured by directemployment, or turnover”.“Potentially it might have

an even larger impact in yearsahead,” he said.But it hasn’t all been plain

sailing. One deal which leftW&R Barnett taking a big hitwas its investment in Scottishinsulation company SuperglassHoldings. The AIM-listedcompany has taken a batter-ing over the last five years,and in August shares plunged17% after another set of poorresults. W&R Barnett were themajority shareholders, before ashare issue last month, whichsought to raise £6.25m for thebusiness, left its share holdingaround 5%. The glass wool in-sulation manufacturer’s shareprice has seen a colossal fall.It was almost 730p a share in2007 and is now around 5.13p ashare. W&R Barnett made themajority of its investment in2013, when the share price hadalready dropped to 50p.The investment was a step

in a different direction for theconservative family busi-ness, whose success has beenunderpinned by the agri-foodsector. This may have left itmore nervous aboutstraying into areaswhich it may nothave the years ofexpertise as itdoes in grainand animalfeeds.One of

W&R Bar-nett’s mostsuccessfulinvestments hasbeen with Irishfirm Origin Enterpris-es plc. Together they arejoint owners of R&H Hall — agrain and animal feed busi-ness, whose history stretchesback to 1839.Together the Barnetts and

R&H Hall, alongside flourmillers Isaac Andrews, madethe purchase of animal feedscompany John Thompsons andSons in March 1964, according

to Gentle Giant, a history ofThompsons written by MikeFaulkner.Thompsons is a leading

manufacturer of animal feedsfor the ruminant, pig and poul-try markets in the province.The firm, which dates back

to 1871, is one of the most rec-ognisable factories in Belfast,located on the York Road withits dour grey facade overhang-ing the M2 motorway — and adistinct smell of its products.On the other side of the M2

lies another area of the citywhere the Barnetts have playeda major role over the lastcentury.The family has always had

a strong influence on BelfastHarbour, with both Robert

Barnett and his fatherWilliam (known asBilly) sitting aschairman andcommissionerat a time. TheBarnett Roomin the Har-bour Office isnamed afterBilly, whosechairmanshipran from 1972

to 1980, and bothmen’s portraits hang

in the Belfast HarbourOffice. The first Barnett siloswere built at the harbour in1937, and after the SecondWorld War it was the companyentered into a joint venturewith R&H Hall, one of the mostprominent of the port users to-day, according to Alf McCreary,author of Titanic Port: Anillustrated history of Belfast.

The notoriously privatefamily rarely gives interviews(they declined for this piece),but Robert opened up to MrMcCreary on why the Harbouris so instrumental in NorthernIreland’s fortunes.“The harbour is the key to

nearly everything that comesin and out of Northern Ireland.If you make a mess of the har-bour, you make a mess of theprovince, and over the yearseveryone connected with theport was aware of this,” he said.“The Commissioners in each

generation did a good job, andthere are few ‘not for profit’organisations that can createenormous chunks of infra-structure like that, and handthem on. It really has been a‘sacred trust’ but it has to berun in a businesslike way. Theharbour is a very visible andcompletely vital asset, and I be-lieve the public realises that.”Mr Simpson said a big part

of the Barnett’s success is“linked to their role in BelfastHarbour and as Harbour Com-missioner”. Robert’s final yearas chairman of Belfast Harbourin 1997 was a record one, withturnover £18.8m, profit £6.4mand net assets £74m.During The Troubles, Robert

told Mr McCreary how themanagement ensured the har-bour remained relatively un-scathed during the tumultuousand violent period in NorthernIreland’s history. “Early on,there was an attempted armedrobbery at a pay-depot at theharbour, but from that time onthere was a tacit agreement onall sides that it would be stupid

to import the violence into theestate. It was almost the equiv-alent of deciding to maintain aregime of peace in a large gamereserve, where the lions wouldnot eat the elephants, and theelephants would not charge thelions. This tacit agreement heldgood throughout all the Trou-bles, and it was a phenomenalachievement on all sides.”A love of horses has played a

big part in the family’s history,and has filtered down throughthe generations. Robert Bar-nett believed his involvementin horses, and horse breeding,has helped the business. Hetold Mr McCreary: “There arecertain similarities betweenour business and our horsebreeding. Both are high-riskventures, and things don’t al-ways go the way one would like.“I think it helps people feel

that if you are involved in hors-es, which are so unpredictable,you must be a real human be-ing, and not just a hard-heart-ed businessman.”Robert’s great-uncle Wil-

liam, co-founder of the com-pany, left Malone House, andits surrounding land known asBarnett Demesne, to the peopleof Belfast upon his death in1946. This William Barnettplayed a big part in the family’slove of horses and was a hugelysuccessful horse-breeder him-self. His horse Trigo, Spanishfor grain, won the 1929 derbydespite initial odds of 33-1, ac-cording to Mr McCreary. Whenthe childless William died, allhis money, from the selling of

>> Continued on page 20

The Barnett Room at the Harbour Office in Belfast is named after William (Billy) Barnett

COVER STORY


his racehorses and stud farm,was donated to hospitals inBelfast and Downpatrick.William’s nephew, and

Robert’s father ‘Billy’ was alsoa renowned horse breeder andoccasionally leased horsesto Sir Winston Churchill,including Red Winter, thewinner of the Ulster Derby,and Dark Issue, which won theIrish One Thousand Guineas.Billy, who died in 1980, studiedeconomics at Cambridge underJM Keynes in 1929, at the timeof the Wall Street Crash, andrepresented Britain in yachtingin the 1948 London Olympics.Despite all its illustrious

past, it could be argued thebusiness has never been in abetter state, and its best yearsare still to come. The year toJuly 2013, W&R Barnett en-joyed record levels of turnover,when revenues grew to almost£500m. “In the last five yearsthe Barnett group of compa-nies saw business more thantreble,” Mr Simpson said.In the group’s latest results,

pre-tax profits increased from£0.16m to £22.3m, whileemployment rose from 256 to278. The group’s results includetrading figures for 26 active

subsidiaries — 14 registeredin other countries where theytrade in the marketing ofmolasses — and seven otherassociated companies.“The group has expanded

its business successfully, withonly a relatively modest in-crease in borrowed funding. Inthe last three years, the capitalprogramme has been easedby the retention of significantpost-tax profits in the businessand bank borrowing in July2013 of just over £400m,” MrSimpson added.A major part of the compa-

ny’s current success is downto the purchase of UnitedMolasses in 2010 from Tate andLyle for £71m. The acquisitionhas been a fruitful one, andhas made it a global trader andactive in the markets of West-ern Europe, Asia, and CentralAmerica. It is now buying,shipping and selling vesselsof molasses around the worldfor use in yeast, rum, lysine,mono-sodium glutamate andsteel production.United Molasses now makes

up over 50% of the group’sturnover and pre-tax prof-its. The firm believes UnitedMolasses has presented it withopportunities to invest andgrow over the last three years

and believe that it will be ableto continue this growth.Mr Simpson said: “The

impact is only now building upafter the takeover about fouryears ago, and takes the groupinto more trading develop-ments in Great Britain.”In February 2013, United

Molasses Group purchasedAdvanced Liquid Feeds, whichwas one of the major factorson why 2013 was such a strongyear. Another was the sharpincrease in the price of rawmaterials for feed grains andrelated agricultural commod-ities, as well as a small volumeincrease due to poor weather ofspring last year.Mr Simpson is of the opinion

the potential of the acquisitionof United Molasses for W&RBarnett has “yet to be fullyrealised, but could be major.”While United Molasses, sees

W&R Barnett looking beyondNorthern Ireland, it is stillfirmly entrenched in the agri-food sector here, where therehas been an increase in animalfeeds demand.Robin Irvine, chief executive

of the Northern Ireland GrainTrade Association, said: “Theagri-food sector in NorthernIreland, which is principallybased on livestock production,

has seen steady increase indemand for feed materials.“Therefore the increase

in volumes imported over anumber of years was relativelyunaffected by the slump inthe economy as underlyingdemand for food remainedstrong.“Demand for animal feed

is not expected to grow thisyear due to concerns about lowproduct price and poor profita-bility at farm level.”Low milk prices are hitting

farmers in the province hard,Mr Irvine said. “Agriculturein Northern Ireland is facing abig hit, particularly on the milkside. Milk price has been goodfor 18 months or so, but thenAmerica and New Zealandpush up their production inresponse to growing demandand good prices — the marketbecome oversupplied and theprice falls again.”Supply outstripping demand

is something that is not onlyhappening in milk prices, butwithin the grain market, inwhich W&R Barnett have sucha major investment.Mr Irvine added: “We have

a record global grain crop in2014. Last year (2013) therewas a record maize crop, butthis year virtually all the

>> Continued from page 19


principal commodities (maize,wheat and soya) are produc-ing record crops and growingstocks. There is now a surplusof supply over demand, bring-ing prices down.”While there is some volatility

in the market W&R Barnett be-lieves the market will continueto perform relatively well intothe future. Two current issueswhich will affect the businessare rising freight costs inNorth America, and the US dol-lar becoming stronger againstthe pound. This is creatinghigher costs, which will bereflected in a rise of the cost ofanimal feed for its customers.However, this is contrasted

with the strength of the poundover a relatively weak euro atthe moment.A weaker pound against

the euro is beneficial for mostagri-food companies in North-ern Ireland and the UK moregenerally, as it increases theircompetitive advantage againstEuropean competitors.The company believes this

is important but maybe notas significant as it appears asmost costs, apart from labourand property costs, are eithereuro or dollar based.

The grain market has beenon the increase since around2004/05, with a brief declinedue to the financial crisis in2009. The company feels themarket has gone through thecycle and stable or lower pricesshould return in years.Going forward W&R Barnett

will continue to look for op-

portunities to invest and growin a sensible and controlledmanner.This is likely to be both

by the acquisition of newbusinesses and additionalinvestment within its existingbusinesses.W&R Barnett is firmly fixed

on sticking to what it knows

best, and what has worked forthe company this far. There isno desire to branch out over-seas into markets where theremay be good returns but highrisk, with the company stayingstrictly focused on areas whereconservative, steady growth ismore than important than justmaking a quick buck.

21

William Barnett (left) and Robert Barnett, company chairman (right)

NEWS ANALYSIS


WHEN you thinkof investment,your firstthought isprobably the

United States. Probably morespecifically California or maybeNew York. And in terms of thebig numbers, you’d be right.California, New York and Bos-ton normally account for thelion’s share.But one state that I’ll bet

didn’t spring to mind wasOhio. It rarely gets a mentionand indeed, often describesitself as a flyover state. That is,somewhere people fly over inorder to get to somewhere else— like California or Boston.Earlier this year we were

lucky enough to have JohnHuston speaking in NorthernIreland.John is an amazing guy who

started his career landingfighters on aircraft carriers,went on to be a major USbanker and then retired earlyto transform the angel scenein Ohio.

The three leading stateshave 21% of the US populationand yet they take 62% of theventure capital (VC) dealsand an amazing 76% of the VCdollars.Ohio, with 4% of the popula-

tion, takes only 2% of the dealsand 0.5% of the dollars.So you can probably see the

parallels emerging from thisunfashionable, in the wrongplace, flyover state — and littleold Northern Ireland.If you want more, well Ohio

has had five initial public offer-ings (IPOs) in 14 years. Whichis bad, but better than us.And yet Ohio has the largest

angel group in the US whoseportfolio of 30 companies em-ploy 420 people with an annualpayroll of $37m.So what lessons can we learn

here from this?Well, the first one is if you’re

not California then don’t try toact like another Silicon Valley.It’s about horses for courses,really.With so little VC money

available, Ohio angels knowthe limitations of their pockets.By being well organised andsyndicating multiple angelrounds between their variousangel groups, they can takea good company a lot furtherthan many other angel organ-isations.This means investing up to,

say, $3m.This may sound a lot, but it’s

small change to west coast VCsand certainly not enough to letthat company grow to sales ofover $100m.Effectively this means that

the marriage between angelinvestors and growing compa-nies should end in a (finan-cially lucrative) divorce beforethe company needs really bigbucks for its major growth.This translates into selling

the company in less than fiveyears and before it outgrowsthe available local pockets.This in turn leads to the

other big learning point. Theinvestor exit, or at least thestrategy for the exit, is agreed

before the first investment iseven made.To continue the marriage

analogy, this is like a pre-nup-tial agreement to plan a di-vorce within a few years. Scarystuff, but it works.And the third lesson is about

how the investors behave afterinvestment, especially in guid-ing the company.John trains his angels exten-

sively in how to be an effectivenon-executive director: how toplan and look for the strategicpurchasers the company willneed.Look up in the sky on any

clear night and you may wellsee people flying over our littlestate. But at least we can saythat there’s a good chance thatthe seats or the wings of theirplanes were made in NorthernIreland.

Alan Watts is the director ofHalo, the Northern IrelandBusiness Angel Network. Halois based at the Northern IrelandScience Park

A fine state of affairsOhio is a great example of economic success, writes Alan Watts

23

BREAKING THE MOULD


Name: Jonathan FlintCompany: Oxford Instruments plc,parent company of Andor

I got into a technology businessbecause ...My passion for science startedas a young child. I found thenovels and films about bravescientists and engineerssaving our world from someoverwhelming external threatfascinating and terrible inequal measure. Today thethreats have become real. Ofcourse it is not little green menwhich pose the threat. Today itis issues like health, safety, en-ergy, our environment, whichpresent real challenges for oursociety. The simple fact thatwe have to use the resourceswe have in more innovativeways, means we have to makenanotechnology work for us.We need to make things small-er, faster and smarter. OxfordInstrument’s tools enablescientists and engineers to dojust that.

I have always done this ...I have always worked incompanies that offer me aperspective on the difficultpath between the spark of anew idea and seeing the effectsof that idea on society at large.My time with BAE Systems,for example, gave me a realinsight into the technology andthinking behind the aerospaceworld and in managing verybright technical experts.The challenges at Oxford

Instruments apply to the worldof the very small (nanotechnol-ogy) rather than aerospace, butin many ways they are similar.In each case we had to take anew technology and apply it toa difficult technical challenge.In the end the job is to convertinnovation into productswhich solve real problems.

The best thing about my work is ....Without question it is the tech-nology that excites me. Sciencewill always push the bounda-ries of mankind’s knowledgeand capabilities, and I amin the privileged position of

working with highly skilled,talented people who turn oursmart science into commer-cially successful products. Ourrecent acquisition of AndorTechnology in Belfast hasopened up a whole new worldof optical imaging for us. Ourobjective in buying Andor wasto extend our business into thelife sciences markets and to getaccess to Andor’s amazing opti-cal technology. We were buyinginto all the expertise andinnovative thinking that existsin Belfast. I am amazed by theimages of living cells produced

by Andor’s scientific cameras. Ifeel privileged to live in an erawhen we are, for the first time,starting to get real answers tothe burning questions abouthow the processes of life work.

The person who inspires me ....When I was a young engineerI had a boss who managed ina completely different waythan I had experienced before.Although we were workingin a technology business,he focused entirely on com-munication and people. Heremembered everybody’s

name and seemed to be able torecall many details about theirwork, families and hobbies.Although he was managingthousands of people, all of usfelt he particularly cared aboutus as an individual. I felt thatif I ever became a manager, Iwould like to be able to leadpeople with a little of his amaz-ing personal touch.

My advice to anyone starting out intechnology ....Never lose the passion to learnand push boundaries. Neversay it can’t be done.

Pushing boundariesHow technology from west Belfast is fuelling scientific progress

Jonathan Flint from Oxford Instruments plc is excited about the progress in technology

AND I’LL TELL YOU ANOTHER THING...

Name: John IrwinCompany: General manager,Denroy Plastics

My first job was....With SHS Sales & Marketingselling major grocery brands toall the local supermarkets andwholesalers.It was great experience inrelationship building, sellingbrands, looking after cus-tomers, travelling all aroundNorthern Ireland. I learned thevalue of having a product tosell that I knew ticked all theboxes for my customers. Thisis vital and Denroy has thisstrength also.

The person who taught me tosucceed was…My father. His characteristicability to listen rubbed off onme. He taught me not to be theone who is always talking. Inbusiness I have always felt itwas crucial to listen, not onlyto my customers, but also tothe people whom I work with.

It is important to provide whatcustomers require rather thanwhat I think they require. Icouldn’t do this without a teamof people who are encouragedto put forward their ideas onhow we can perform betterand better all the time. DenroyPlastics Ltd has an excellent ex-isting team frommanagementright through the workforce.Their track record of successspeaks for itself and I am verylucky to have this foundationon which to grow the business.

My business mantra is…Tenacity. Be flexible and agile,adapt and overcome but betenacious in relation to yourobjectives and you will succeedevery time.

It’s all changed since I startedout…Having worked in manufac-turing for almost 20 years Ihave seen considerable change.Northern Ireland has alwaysshown a positive drive and di-

rection even through what hasbeen difficult political and eco-nomic times. The result is now,without doubt, world-classmanufacturing throughout thecountry. Denroy Plastics is sell-ing product all over the world,competing with manufacturersin low cost economies. Theonly way to do this is to havean irrefutably high qualityproduct offering backed upwith service levels fully alignedto what the market demands.Underpinning this is a man-ufacturing ethos that drivesout inefficiencies, supports thelocal workforce and attractscustomers to the reassuringlabel — made in the UK.In 10 years the world will be…Still full of opportunities. Ibelieve the next 10 years are myopportunity to be part of thetremendous growth potentialfor Denroy Plastics. We havethe team, the contacts and thetechnical ability to be in theright place at the right timewith the right product.

My one business regret is…Seeing the demise of somegreat companies and custom-ers over the years. It has beena great pity to witness the casu-alties of the recession and notbe able to do anything about it.We can only hope that as theeconomy recovers the skills,expertise and dedication of allthose people are incorporatedback into the workforce.

My one piece of business adviceis…Never be afraid to change. Justbecause something was right atone time will not make it rightforever. Be prepared to reviewwhat you do and change it, butmake sure you get feedbackfrom your team.

I couldn’t start the day without…Driving to work! It gets methere but it also gives me timeto think before the day starts..


We’re on world stageJohn Irwin of Denroy Plastics in Bangor on his long experience

Denroy Plastics has been winning contracts all over the world, says general manager John Irwin

SME WATCH


SAWERS is known asBelfast’s foodie heaven— for good reason. Thegourmet grocery busi-ness based in College

Street in the city centre stockssome of the finest food prod-ucts the world has to offer.Sawers was established in

Glasgow in 1873 but followingthe closure of shops there andin Aberdeen, Birmingham, andDublin, the Belfast store is theonly one that remains of thebrand.It sells a variety of local and

international produce includ-ing cheese, olives, charcuterie,tapas, seafood, caviar, Greekand Italian desserts and otherfresh deli items.Managing director Kieran

Sloan started working for thecompany in the 1980s as ateenager on a youth trainingprogramme, moving his wayup the business he now owns.The 47-year-old self-con-

fessed workaholic from Belfastis passionate about food andloves running Sawers along-side his 14 staff.Mr Sloan has fond memories

of his first days at the firm.“I was a 16-year-old trainee

on a YTP,” he said.“My first job was in (mens-

wear shop) Burton and I hatedit.“I did my exams and there

were no jobs and then anopportunity came up throughYouth Ways — a totally newconcept.“It was the first time Protes-

tants and Catholics were goingto meet. We all joined in andhad 16 weeks of mad fun.“It was just brilliant. I loved

it. I made new friends, wentcamping, went mountainclimbing and you had workplacements.“One week I got into McEr-

lean’s bakery on the Glen Roadand then I got into Sawers onthe fish counter.“I loved it and was offered a

job after about six weeks, andI’ve been here ever since.”Sawers moved from Castle

Street to College Street in 1982and two years ago Mr Sloandoubled its floor space tomove away from being seen asmerely as a fishmongers. Hebroadened the range to includetea, jams and marmalades.

Deli-ciousKieran Sloan tells Amanda Ferguson how gourmet deli Sawershas thrived selling high-end produce aimed at Belfast’s foodies

Sawers’ managing director Kieran Sloan has worked there since the 1980s


“We sell top-end foods,” hesaid.“It’s gourmet grocery for

people who like to eat, who liketo cook nice food.“We stay away from main-

stream stuff. We do a lot offresh produce and also a lot oflocal produce.“We support a lot of local

suppliers and work with themas well such as (tea and coffeemakers) SD Bells on the New-townards Road and Erin GrovePreserves in Enniskillen.“Our bestsellers are our

own-label sweet chili jam,our chili feta, Mull of Kintyremature cheddar made withsea salt, potted herrings — somany things fly out the door.”Mr Sloan told Business

Month Sawers customers are“mostly local foodies” but“from all walks of life” and hegets regular visits from BelfastFood Tours groups and tour-ists from all over the globe.“We have become a foodie

heaven in a sense,” he added.“We have the deli-to-go and

have delved into differentthings like Italian pastries anda Turkish delight counter.“We bring food in from all

over the world — Sicily, main-land Italy, London, as well ascompanies across Ireland.”A Sawers Christmas store

has opened across the roadfrom the main business prem-ises and ‘Belfast Hampers’filled with local products areon sale there.“Everything is 100% North-

ern Ireland and that’s some-thing I would be very adamantabout,” Mr Sloan said.“There is companies out

there sticking Irish and North-ern Irish on things and theyare not made here at all.Mr Sloan also has ambitious

plans for expanding the eventsside of the business and its

website to offer online order-ing. “The people of Belfast areso loyal to us,” he said.“I would love to run cheese

and wine nights, get companiesin, get some local musicians in.People would love it. It wouldbe a brilliant night. I have lotsof plans. My head never stops,but there is only one of me.”

Sawers has built up a loyal following selling everything from cheese and olives to seafood and caviar

ASK THE EXPERTS

All questions should be addressed to: [email protected] and advice are publishted in good faith but should not replace the advice of your professional financial advisor.

I AM considering putting my house on the market in the New Year. Whatconsiderations should I bear in mind?

JANUARY is one of our busiest times for new property listings for sale.Many people start the New Year with resolutions they want to accomplish,and moving house is often one of them.It pays to get in there first. Have your home valued pre-Christmas so youare ready to get on the market the first week in January.In today’s marketplace, vendors must do all they can to ensure their homeis in top condition, both inside and out, to maximise the value. How doesyour home look from the road? Is the driveway untidy? You need any poten-tial buyers to be sufficiently impressed from the road to take a closer look.Take time to think about who your home is likely to appeal to. For example,if you feel young professionals are your market, you could consider turninga bedroom into a study. For families, do the reverse.Clean up — while it seems obvious, some vendors don’t see the importanceof keeping the home clean and tidy and odour free for each viewing.Create an ambiance so that the moment a potential purchaser walks intoyour home, they should be overcome with that welcoming feeling.Put the heating on at least an hour before viewings. There’s nothing worsethan viewing a cold home. If you have a fire, light it.You don’t need to spend a fortune on home improvements buyers may ormay not want, but repair signs of obvious wear and tear. Neutral colourssell. It’s a fact. Try to convey an image of quality and neutrality.Remember that nothing will turn off a potential buyer quicker than acluttered, untidy home. And, dress up your main rooms to their advantage.Place greater emphasis on any unusual or period features e.g. dress anunused Victorian fireplace with candles.In summary, house prices can vary significantly even for very similar prop-erties, so anything you can do to boost the perceived value of your homewill be well worth the effort in the long run.JM

ASK THE EXPERTS

to assist individuals and busi-nesses who have been mis-soldthese complex products. It is veryimportant that you speak to an

expert in these cases as they willbe rejected if not presented in thecorrect way.GMcE


LAST year it was revealedthat banks had actedwith negligence in thesale of certain financialproducts, known as

interest rate swaps. The intentionof these swap agreements is toprotect borrowers with loansagainst potential interest raterises by fixing the interest rate fora specified period of time. The po-tential consequences of having afixed interest rate, however, werenot fully explained in the majorityof cases and led to many busi-nesses making a loss as a result.Some businesses have actuallycollapsed due to the financialburden of the fixed interest rate. Ifyou have signed up to one of theseagreements and feel the detailsof your arrangement were notfully explained, you could be duecompensation.

In January 2013 the FSA admit-ted that 90% of these complexagreements may have been mis-sold by banks. This admission ledthe ‘big four’ UK banks to set aside£3bn for potential compensa-tion pay-outs. So far only aboutone-third of this figure has beenreclaimed.

Our practice has taken a pro-active approach to the situationand has established a dedicateddepartment, MKB Law Financial,

I entered into a loan agreement with an interest rate swap but Idon’t think I was treated fairly by the bank. What can I do?

I’M a minority shareholderin a private limited compa-ny and am being left in thedark when it comes to prettyfundamental decisions. Whatshould I do?

MOST Northern Irish compa-nies only have a small numberof shareholders, usually twoor three. It’s often the casethat these shareholders arealso the people who manageand run it on a day to day basis.In reality these companiesare run more like a partner-ship than a large corporateentity and are often calledquasi-partnerships.

‘Majority rule’ is an estab-lished principle of company lawwhereby the majority of theshareholders hold the decisionmaking power of the company.Sometimes this dominantposition leads to an oppressionof the minority shareholdersinterest – this may be in theform of blocking minorityshareholders from the decisionmaking processes.

The Companies Act 2006offers an olive branch to thoseminority shareholders who findthemselves in such a position.This piece of legislation af-fords broad relief to a minorityshareholder who can show thatthey have been treated bothunfairly and prejudicially as ashareholder.

The court can award themajority shareholders with ashare purchase order, as wellas other forms of relief. Qualityadvice, early, is crucial in thesesituations to ensure your finan-cial interests are not erodedbeyond repair.TMcM

Sound advice can be a valuable commodityWe put your questions to the experts with the answers

Toby McMurrayPartner at Tughans Solictors

Gordon McElroyDirector and coporate solictor atMKB Law

John MinnisDirector, John Minnis EstateAgents

INSIDE REPORT


A NEW public transport inter-change in the heart of Belfastconnected to amodern shoppingplaza and high quality officeaccommodation, could be thefirst project financed through thenewNorthern Ireland investmentfund, it has emerged.FinanceMinister SimonHam-

ilton told BusinessMonth duringan exclusive interview that heis keen to make much fasterprogress with the ambitiousEuropa transport hub upgradefor the Belfast city centre trainand bus station.“For me, it [the Europa inter-

change] is the perfect example ofhowwe should be using financialtransactions capital,” said MrHamilton. “There are 10 acresof spare development land inthe centre of Belfast. We havepushed and pushed DRD [theDepartment for Regional Devel-opment] and I don’t think theyhave beenmoving as quickly as Iwould like to see them moving.”Under the system of financial

transactions capital (FTC), someof Stormont’s capital budgetmustbe spent in association with theprivate or third sector. In the2015/16 financial year, a totaldepartmental capital budgetof £1.1bn for Northern Irelandincludes some £128m that isallocated as FTC. This meansthat it must be used as equity orto lend to a private sector project,or as part of a joint venture withthe private sector.This in fact provides an op-

portunity for Stormont to cir-cumvent spending rules that

Building blocksFOR SUCCESSFinance Minister Simon Hamilton talks to Paul Goslingabout his ambitious plans to use the new Northern Irelandinvestment fund to help to improve infrastructure here

have caused problems for severalNorthern Ireland departments,including DRD. Many millionsof capital allocations are at riskof being lost because governmentdepartments are unable to spendthem within the financial year.The new Northern Ireland

Investment Fund — which isexpected to become operationalduring the 2015/16 financial year— will get around this problem.The fund is to bemanaged by theEuropean Investment Bank, theEuropean Union body chargedwith improving infrastructureacross the EU by assisting withthe financing of major projects.A spokesman for the EIB said:

“We are happy to do things with

Northern Ireland.”He added that a priority for

the EIB in its engagement is toimprove the use of Europeanfunding for Northern Ireland— including Peace funding, thecompetitiveness programme, theSocial Fund and Interreg.The spokesman added: “We

are looking at ways we can helpleverage European and nationalresources. . . We can both lendinto the structure and we alsohave a team with experience ofsetting-up funds.”The EIB has previously ex-

pressed a wish to finance projectsin Northern Ireland, but has beenhamstrung by rules that pre-vent it being engaged in projects

smaller than £150m in size. Fewprojects above that size exist inNorthern Ireland and support forUlster University’s new Belfastcampus was the first example ofEIB engagement here.By creating a large single fund

for a range of infrastructureprojects that are individuallysmaller than £150m, the EIB isable to become an active investorin Northern Ireland. It is hopedthat a £100m investment by the

Simon Hamiltonplans to improveinfrastructure inNorthern Ireland


Northern Ireland Executive willcreate a £1bn fund.The Executive has approved

£12.1m that is unallocated fromthis year’s capital budget to beset aside as the initial base forthe Northern Ireland InvestmentFund.The Treasury has agreed that

as this money will no longer bein the hands of the Executive,and instead held by the EIB, itwill be treated as having been

spent and so will not be lost toNorthern Ireland.As well as the Europa trans-

port hub, other projects likelyto be backed are social housingschemes, large urban regenera-tion projects, renewable energydevelopments, energy efficiencyschemes, telecommunicationsinfrastructure and mixed useeducation campuses. By process-ing schemes such as the Europainterchange through the invest-

ment fund, it also means thatspeedy progress can be made ona project that will stimulate theconstruction sector and providenew premium office space in Bel-fast, while not reducing fundingfor other priority DRD schemes,such as road and rail upgrades.Only schemes that involve the

private or third sector will beable to access the fund. Housingassociations will be eligible to putforward proposals, but the North-

ern Ireland Housing Executivewould only be able to bid if it isrestructured to take it outside thepublic sector, or if it works with aprivate sector partner. Similarly,the new district councils canworkwith private sector developersor higher or further educationproviders.“The origins were early this

year,” Mr Hamilton said. “Two


INSIDE REPORT


term, said Mr Hamilton, whohopes it will be a fixture in theinfrastructure investment land-scape in Northern Ireland.European Commission Pres-

ident Jean-Claude Juncker, haspledged investment in infrastruc-ture as central to his presidencyand his plan to lift the EU out of

its economic crisis. Juncker wantsto invest €300bn into Europeaninfrastructure, probably throughthe EIB. Northern Ireland’s activeengagement with the EIB willraise hopes that we can benefitfrom some of this additionalinfrastructure investment.With a significant capital sum

already allocated to the fund andthe support of the EIB, it lookscertain to go ahead.If the £1bn target can be

reached the fund could proveextremely important in helpingto address what the CBI has cal-culated is a £2.5bn infrastructuredeficit.

things were filtering in. Thefirst was the reality dawningaround [the underspending of]FTC... This is going to becomean increasingly large part of ourbudget going forward. Whatev-er we get we have to ensure wespend it.”The first discussions began

in August last year with theEIB about enabling it to financeinfrastructure and these inten-sified earlier this year, when itbecame clear that governmentdepartments were having severedifficulties in managing theircapital budgets and spendingtheir capital allocations.“They have experience in some

other European countries withsimilar issues,”MrHamilton said.“They were very receptive to this.”However, Northern Ireland

— for once — is moving fasterthan the rest of the UK and theRepublic. “We are ahead of thecurve, doing this before Scotland,Ireland, or England. FTCs canfund anything we can think ofwhere we have private partners,the Minister said.”And the intention is for the

fund to be around for the long-

Belfast’s Europa Bus Centre and Great Victoria Street Station could receive an overhaul through a new fund


TICKERS


Ulster Bank chief economist Richard Ramsey gives a rundown on the latest key pointers

THE latest residential propertyprice index (RPPI) reportedits sixth successive quarter ofprice rises. Residential prop-erty prices increased by 1%q/q in Q3 with prices some 7%higher than the correspondingperiod last year.Northern Ireland’s residen-

tial property prices recordeda peak-to-trough decline of57% between Q3 2007 and Q12013. Prices have subsequentlyrisen by over 11%. As a result,Northern Ireland has recoupedless than one-tenth (9%) of thepeak-to-trough decline withprices still almost 52% belowtheir pre-downturn peak.From a wider economic per-

spective, the continued rise intransactions is a more signif-icant signal that the recoveryis strengthening. Residentialproperty transactions in Q32014 (5,094) were 21% higherthan the same quarter last yearand represented the highest

Q3 figure in seven years. Onan annual basis, the numberof transactions has been risingsteadily for three years withalmost 19,700 transactionscompleted over the last 12months. This is more thantwice the number recorded at

the low in the 12 months to Q22009 but 52% below the ‘freakpeak’ recorded in 2006/07.A return to this ‘freak peak’

is neither expected nor desired.Instead a return to more ‘nor-mal’ levels of activity that wewould have seen around 2005

(29,000) would be desirable.This is almost one-third abovewhere transactions currentlyare.Further growth in house

prices, and more importantlytransactions, are expected inthe year ahead.

The month’s local indicators at a glance

PERSONAL or individual in-solvencies in Northern Irelandhave more than doubled since2007. The latest figures forQ3 2014, released last month,posted a 36% rise relative tothe corresponding quarterlast year. In the latest quarter,975 individuals were eitherdeclared bankrupt (or chosebankruptcy) or entered intoeither an individual volun-tary arrangement (IVA) or adebt relief order (DRO). Thelatest increase was driven by

a surge in IVAs with a recordnumber (549) in Q3 2014. IVAsincreased by 68% year-on-yearin Q3 2014 with bankruptcyorders (303) up 20% over thesame period. Meanwhile, thenumber of DROs fell by almost12% y/y. It is noted that thelatest four quarter outturn(to Q3 2014) there were 3,510individual insolvencies whichis 134% above the level thatprevailed in the four quarterperiod (to Q3 2007) that pre-dates the credit crunch.

SINCE 2008, the median wagefor all employees (full-time andpart-time) in Northern Irelandhas fallen in real terms by al-most 14%. However, the young-er age groups have experiencedthe steepest declines.The median wage of employ-

ees aged between 18-21 years ofage has almost halved betweenApril 2008 and April 2014.Those aged between 22-29years of age and 30-39 years ofage have experienced declinesof 21% and 12% respectively.

Employees in their 40s and 50shave seen their pay fall by al-most 15% and 12% respectively.Meanwhile those employeesover 60 years of age buck thetrend and are the only age-group not to experience a realterms decline in earnings overthis period (+0.4%). The hugefall in median earnings forthose aged 18-21 years is largelyexplained by the changingcomposition of jobs (a greaterpreponderance of part-timework and lower job quality).

BUSINESSPEOPLE


done this.It’s been a dream for five

years and I just bit the bulletbefore Christmas last year. I fin-ished my 12-year legal career inApril, working finally for Allen& Overy, then opened the cafe,which is self-financed, in June.I saved for a year and don’thave an extravagant lifestyle- my car is 12 years old. Butalthough this is 100% harderthan anything I imagined, it’smy passion. I guess I am a littleobsessive and always see thingsthat can be done better.As a lawyer, you’re not your

own boss and you can go homeand leave the job behind. Now Ifind I never switch off but I amusing my creativity and do allthe PR, marketing and socialmedia. I employ nine peopleand I’ve consulted experts ineverything from shop design tothe furniture. That leaves you

free to play to your strengths.For me, the customers are 110%of the job and are the best partof the business.Five years ago when I was

living in Copenhagen, whichis a coffee city, I discoveredthe Kaffe O concept. I drankthe coffee, which is a mix ofGuatemalan, Ethiopian andCosta Rican beans, every day.It’s a strong, dark roast andyou know, coffee is good foryour health and a performanceenhancer. My pricing in linewith other Ormeau Roadcafes. If we’re a few pencemore, well, our coffee has beenhand-roasted in Copenhagenand our hot chocolate is madewith chocolate that’s 80% cocoasolids not cocoa powder. Peopleimagine the profit margins on a£2 coffee are massive, but theyaren’t.The furniture is Danish and I

IKNOW exactly when Idecided I wanted to stopbeing a corporate lawyer.It was when I was takingpart as a middle distance

runner in the World TransplantGames in Sweden in 2009 aftermy second kidney transplant.From the age of 11, I had

renal problems which werediscovered when I collapsed theday after my Confirmation. Itdidn’t affect my life that muchbut at 24, I had a pre-emptivetransplant. That failed afterthree months, then I was in di-alysis for three and a half yearsand had my second transplantin 2007.I’m a sporty person and

played Gaelic football forNorthern Ireland when I wasyoung. I had no energy after myfirst transplant, but six monthsafter the second, I started totest myself and have now donetwo marathons.Law was always a safe option

for me anyhow. I was reallythere by default. But the experi-ence of meeting so many peoplewith transplants at the gamesmade me realise we only haveone chance.I became good friends with

an English guy in his twentieswho’d had a heart transplantand he’s now back playingprofessional rugby, doing whathe loves.A lot of people in his position

start their own businesses andI know somebody with a kidneytransplant who switched fromteaching to being a physio.It changes you and you startthinking, ‘hy not? What’s theworst that can happen?’Four months after opening

Kaffe-O on the Ormeau Road,I’m content I did the rightthing. In a way, although itsounds odd, I’m very grateful- if I hadn’t had renal failurewhen I did, I would never have

The Northern Ireland Businessperson who...

Orla Smyth, owner of Kaffe-O in south Belfast, tells Jane Hardy about her past life —including winning the World Transplant Games world record in 400, 800 and 1500m

Orla Smyth, who lef t the legal profession to open a coffee shop

...went from corporate law to coffee

worked with the architect JohnLavery from BGA and graphicdesigner Paul McNally whocreated our brand.I was brought up round

here as my family lived in theOrmeau Road and I rememberthis building when it was Rea’selectrical shop, which was a bitof an institution.I am very confident in my

product and our coffee isregularly voted the best inthe market. We also use localingredients and the cheesesandwiches aren’t just cheddarbut Irish cheddar.Why did I open a business

in the teeth of a recession in astretch of road with six othercafes? Because if there are moregood businesses in an area,more business is attracted.There’s a lovely French cafenear here and Soul Food Cafe,but people want variety. Belfastwas ready for this.I think we can extend the

brand. We sell beanies, t-shirts,mugs and are importing moreDanish ceramics for Christmas.The music’s very importanttoo. People say why not havesome Abba, but I don’t thinkso. We’re listening to BruceSpringsteen’s The River at themoment.One of the bonuses of

changing from law is the joy ofwearing a beanie, ripped jeansand yellow hoodie to work. Icouldn’t do that as a lawyer.And as it’s my business, I set myown timetable. The only thingI miss sometimes is the chanceto think analytically, and I waswell paid.Some people think I was

buck daft to do this. My otherhalf, who’s a PE teacher, isenvious. People are usuallyenvious of the dream, not thereality, but I am very happywith where the business is afterfour months. My brother Pat-

FOCUS ON: INDEPENDENT RETAILERS


THE way we shop is changing —and independent retailers inNorthern Ireland are making themost of our changing habits.Small businesses and in-

dependent retailers are a vital part ofNorthern Ireland’s economy, employingthree-fifths of workers here and account-ing for £1.7bn in trade each year.Independent shops are in a good

position for growth — because thanks toincreased pressures on our time, gone arethe shopping patterns of the 1990s and2000s.Time is of the essence in our busy mod-

ern lifestyles and consuming is now allabout convenience.The big shop — either weekly or

fortnightly — with families buying theirgroceries in bulk in giant supermarkets ison the wane.Customers are more likely to drop in to

smaller shops two or three times a weekfor their groceries, topping up store cup-boards as they go.Tesco has encroached on the small-shop

sector by opening around 16 Tesco Expressstores in recent years around NorthernIreland, though Sainsbury’s has no plansto introduce its Sainsbury’s Local formatin the Province.Instead, Northern Ireland has a wealth

of successful independent retailers, pre-dominantly in the convenience grocerysector.Over the last year independent retail-

ers have reported a steady though not anoverwhelming growth, with business notyet back to pre-recession levels.Robin Mercer, owner of the Hillmount

Garden Centre in Gilnahirk outside Bel-fast, reports that although the businesshas seen more customers coming throughthe door, they are becoming less frivolouswith their spending.He said: “People aren’t spending foolish-

ly. They still come in to buy birthday andChristmas presents, but they don’t includea little treat for themselves any more.”Musgrave Retail Partners, which incor-

porates the SuperValu, Centra and Mace

brands, reports that shoppers are prepar-ing earlier for Christmas this year, withseasonal sales beginning in September.According to Neville Woods, owner of

Woods SuperValu in east Belfast, theseearly Christmas spends are due to smartshopping.He said: “People are buying earlier, buy-

ing many festive items since Halloween.“I think this is largely because they

are looking for better deals and beingcautious, rather than leaving it to the lastminute and having no choice about cost.”Nothing highlights the importance of

independent trade more than the UK’sSmall Business Saturday on December 6.Now in its second year, the event —

which is promoted in the province by theNorthern Ireland Independent RetailAssociation — saw 57% of customers shop-ping at independently owned businesseslast year on the day.NIIRTA hopes to build on the success of

last year, making the occasion bigger andbetter with online resources for small busi-nesses and their customers available fromwww.smallbusinesssaturdayuk.com.It has also run a strong social media

campaign to promote the event.The Mallusk-based Henderson Group,

owners of Spar, Eurospar and Vivo, havealso reported growth in 2014.The company said that over the next

year, it will be responding to new shoppinghabits by investing heavily in new storesand their own brands. The group prides it-self on ensuring that 75% of their produceis sourced on the island of Ireland.Henderson sales and marketing director

Paddy Doody said: “We know that conven-ience is making a comeback, but we alsowant our shoppers and potential shoppersto know that while we excel in convenienceand quality, that same convenience andquality is being sourced locally.”Declan Corry, owner of Corry’s SuperVa-

lu in Shantallow, Londonderry, also said:“We hope to develop our business next yearby continuing to focus on and increase

SMALL SHOPSKerry McKittrick discovers that as our shopping habits change, independent retailers in

Steven Kennedy (l) of Hender-son Group with Jonathan Stin-son of Daily Bake. HendersonGroup recentl y announced adeal stocking the firm’s pies inSPAR and EUROSPAR



Northern Ireland are reporting a boost in sales as they battle with the supermarket giants

THINKING BIG

FOCUS ON: INDEPENDENT RETAILERS


permarkets — Asda, Tesco andSainsbury’s — all experiencedfalling UK sales in the 12 weeksto November.And the big-format stores so

beloved of the major supermar-kets will also receive a hit nextyear when the revaluation of

business rates hits home.Edge-of-town retail parks

will see an increase in rateablevalue of 18%, while the largestfood stores will see their ratea-ble value go up by around 40%.Retailers are cautiously

optimistic about 2015, but by

no means are they resting ontheir laurels.If independent retailers stay

ahead of the game, they may beable to benefit more than everfrom the toughening condi-tions facing their big super-market rivals.

our fresh offerings which weresuccessful for us last year,” headded.To coincide with Small

Business Saturday, NIIRTAhas set both the NorthernIreland Executive and the newsuper-councils with the chal-lenge of returning NorthernIreland’s independent retailernumbers to their pre-recessionlevels.NIIRTA chief executive Glyn

Roberts said: “We have setthem the objective of helpingto establish or create positionsfor 3,000 new independentretailers by 2020 — we lost thatnumber in the recession. Peo-ple want something different.“They want something

better than the same old chainsupermarkets — that’s wherelocal grocery stores, butchers,bakers and chemists can alloffer something different anddistinctive.“I think consumers are get-

ting that message and increas-ingly voting with their feet.”Recent figures from re-

searchers Kantar Worldpanelshow that our three biggest su-

Independent retailers are on the rise


FOCUS ON: FIT-OUT FIRMS


NEXT time you’re outhaving a drink orenjoying some finedining in one ofBelfast’s trendiest

venues, take a moment to toastLes McCracken.Why? Because the chances

are his firm has provided thebrains and craftsmanshipbehind the establishment’s lux-ury décor and quality finish.Mr McCracken heads up Mc-

Cue Crafted Fit, one of North-ern Ireland’s most successfulfit-out firms. His company’sportfolio of projects includesthe swanky Albany bar on Lis-burn Road, the uber-cool Shirobar and Chinawhite club inBrunswick Street, as well as ElDivino, Box nightclub and theHarp Bar. It has also workedon the fit-out of eateries ThePotted Hen and House of Zenin the city’s thriving CathedralQuarter.With five-star hospitality

sector clients such as London’sSavoy, Claridges and Berkeleyhotels, McCue’s has built aninternational reputation over60 years, and the firm has justsecured a lucrative contractto refurbish 30 branches of amajor UK high-street bank.McCue’s, renowned for its

specialist joinery services, hasdiversified in recent monthsby tipping its toe in the cruiseship market, securing a £1mdeal with Thomson Cruises.McCue’s was awarded two

cruise ship refit contracts to becarried out in Cyprus and Gi-braltar. The work includes newrestaurants and refits to bars,coffee shops and lounges.Mr McCracken, who has run

the firm for 27 years, said “di-versification” and “maintain-

ing a strong cash position” hasbeen key to the firm’s ongoinggrowth through the recession.“We reinvented ourselves inthat period. We widened ourgeographical reach as well asthe breadth and scope of ourwork,” he said.Although McCue’s suffered

a 33% drop in turnover duringthe slump, it has extended itsreach into the retail fit-outsector and has seen “moremovement in the corporateand banking sector” in recentmonths, said Mr McCracken.With a workforce of 120

located on a five-acre manu-facturing site in Carrickfer-gus, McCue’s has grown itsturnover to £30m. While themajority of its work comesfrom abroad — this year alonethe firm has worked on con-tracts in Cyprus, Rome, Paris,Barcelona, Stuttgart and Am-sterdam —Mr McCracken saysthe firm is “keen to stick to ourroots” in Northern Ireland.Another fit-out firm that is

in ship-shape is Marcon. TheAntrim-based company is rid-ing the crest of a wave after itscelebrated work on the £100mTitanic visitor centre.Marcon was crowned Mc-

Donald’s UK Contractor of theYear in 2013 and has just com-pleted a new £2mMcDonald’srestaurant on Boucher Road.

It employs 40 people at its11,000 sq ft manufacturingworkshop.Needless to say, the folks at

Marcon aren’t just enjoyingtheir lucrative relationshipwith McDonald’s — they’relovin’ it! Since 2008 the firmhas completed more than 200fit-out projects for the fast foodgiant across Ireland, Scotlandand the north of England.“Winning the McDonald’s

Contractor of the Year awardwas a big deal,” said Marcondirector Mark O’Connor. “Thathas given us the opportunity totake on more work in the UK.”“About 60% of our work is

now outside of Northern Ire-land and a large portion of thatis McDonald’s work,” he said.Marcon is also looking east

in its expansion drive as it iscurrently completing work onNorthern Ireland’s first YO!Sushi restaurant which opensthis month in Victoria Square.The Japanese-themed food

chain has more than 70 restau-rants worldwide and is lookingto expand further in NorthernIreland.Mr O’Connor said: “To see

those two global brands invest-ing in Belfast gives you an ideaof what they think about thequality of our work and alsothe future of the economy. AtMarcon we demand and expectvery high levels of quality andthat has stood to us when weare working with these globalbrands.”Another Northern Ireland

firm that’s gained an interna-tional reputation is Portad-own-based fit-out specialistsDeluxe Group.

TASTE FOR ASimon Rowe talks to the joinery and fit-out firms which have

worked on some of our best restaurants, pubs and shops - and evenventured as far afield as a cruise ship in Cyprus and Disneyland, Paris

Winning theMcDonald’s

Contractor of theYear award in 2013was a big deal


DeluxeGroup’smanagingdirector ColmO’Farrell withBrian Dolaghan,Invest NI (r)


ust volorrum utatiata volenda quiani alitati ratiumet et vendus dis etvoluptas ut ium nihilla quamus

FINE FIT-OUT

FOCUS ON: FIT-OUT FIRMS


The firm won the Fit-OutProject of the Year in theinternational category at lastmonth’s Fit-Out awards inDublin — an annual showcasefor the sector.The firm’s work on the

Ratatouille adventure parkat Disneyland Paris proved arecipe for success.Deluxe, which was also

shortlisted at the recent UKRestaurant and Bar DesignAwards for its work on thenewWhisky Lounge in Lon-don’s Metropole Hotel, hasbeen making an impression inthe hospitality, leisure, com-mercial and luxury residentialsectors for more than 40 years.From its origins as a fami-

ly-run painting and decorat-ing firm in 1969, Deluxe nowsupplies the services of sculp-tors and designers specialis-ing in custom features andfinishes to some of the biggestconstruction projects in theworld. As well as DisneylandParis, it has worked on OneTower Bridge in London, and

an energy science centre inSaudi Arabia.Such is the demand for its

services that the firm needs toexpand production facilitiesand recruit an additional 22employees.

Managing director ColmO’Farrell jr said: “We haveidentified opportunities forgrowth in the high-end resi-dential, hospitality, educationand theme park markets.“We plan to target these

over the next two years.“Our objective is to signif-

icantly grow sales outsideNorthern Ireland and we needto have the right level of skilland the production capacity toachieve that.”

Paul McMahon, manager of CastleCourt Shopping Centre (l) , with Alan Stewart of Marcon Fit-Out at the newToys “R” Us fitted out by Marcon


MAKING ASPLASH

BANGLADESH WATERLEAVES BIG IMPRESSION

MOTORING

SPORTING LIFEAudi TT still shows its a winner

DAY INTHE LIFE

SIMONCAMPBELLManaging director of Portview Fit-Out

MANABOUTTOWN

THE CHAIRMANInside track on Northern Ireland business

OFF LINE SECTION

1 December 2014 BUSINESS MONTH 45

OUT TO LUNCH

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Ever-youthfulexuberance keyto finest vintageJoris Minne visits Love Fish on Howard Street, Belfast with so-called archbishop of the winetrade James Nicholson, who discusses his love for wine and his passion for horse racing

WHAT is it about people in thedrinks business and stayingfit and youthful? ThinkMarkBeirne of Chinawhite, BillWolsey of 40 or 50 pubs or

David Russell of GDK Drinks. All of themlook at least 10 years younger than they are.The same goes for the archbishop of the

wine trade, James Nicholson. By right, Nichol-son should be bulbous of nose and corpulent.He shouldmove with care so as not to inflamehis gout and he should definitely not be trav-elling too far from home.Yet here he is at the age of 60, fit as a beach-

guard and covering thousands of miles as afrequent flyer with an infectious passion forhorse racing as well as good wine. Not onlydoes he run the widely respected James Ni-cholson Wines and JNWine.com operationsbut he is also chairman of Down Royal RaceCourse and a board member of the charityYouth Action.If you were to choose to grow old prema-

turely, horses, youth unemployment andwinewould do the job. But not James Nicholson.For amanwho had to grow up early followingthe untimely death of hismother when hewas13 and started pulling pints in the Villager inCrossgar shortly after his A-Levels atMethody,the wine business and horse racing becamesomething much more akin to art dealingthan just vulgar buying and selling.

He says he began to take an interest in winefollowing the creation of a good restaurant inthe Villager. “Wine was a whole new worldand I wanted to knowmore and soon the winebusiness took precedence.”He makes it look easy. His base is a hand-

some Crossgar warehouse, one of the mostattractive buildings in the village. The experi-ence of buying wine has now been transportedfrom the atmospheric woody interior to a suc-cessful online retail operation, JNWIne.com.“We are not the biggest in Ireland but we

have a presence throughout the island,” hesays. JNWine.com does however sell morethan a million bottles of wine a year. “Tescocould do that on a Saturday coming up toChristmas,” he sighs.The firm has a 50/50mix of sales north and

south. Three quarters of those sales are fromtrade, with the remaining going through retail(of which 15% is throughmail order from hiswhizz-bang website).We are having a white burgundy from

Macon with lunch. It is fresh, invigoratingand in harmony with his crab on toast andmy prawns. He talks about Robert Parker, theworld standard setter on wine. What Parkersays makes and breaks wine labels.He’s marked this Macon at 92%. James

Nicholson knows these things because this iswhat he does. His knowledge of the horse-rac-ing sector in Northern Ireland is similarly

forensic.With 4,000 jobs reliant on the sectorin the north alone, he saysmuchmore shouldbe done to help it get stronger and start at-tracting more international players. “MikeTodd at Down Royal has brought the racingsector up to par with the rest of Ireland butwe can do more.”Similarly, his devotion to the charity Youth

Action and helping get young people intoemployment is as fully charged and he sayssome flattering things about theMinister forEmployment and Learning.We head out into the rain, yet with his

bright, shin-length, cream-coloured raincoat,he seems somehow radiant, reflecting a littlesunshine wherever he goes.

Excellent palate:James Nicholson is

the much-respectedproprietor ofJNWine.com

Love FishTom yum soup 5.00Scallops 8.00Prawn curry 13.00Crab on toast 6.50Bottle sparkling 4.50Half pint Yardsman 2.65Glass wine x 2 18.00Espresso 2.65Macchiato 2.70Service 6.30

Total 69.30

STREETVIEW

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STREETVIEW

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TWENTY years agoin Dromore on thebanks of the Bann,there stood a derelict,roofless building

which today has an award ofmerit from The Historic Build-ings Council.The sympathetically-re-

stored building is now occu-pied by two complementarybusinesses, the Country Choicegift shop and Riverside TeaRoom. The gift shop is ownedby Gareth and Sophie Ingramwhose parents carried outthe restoration. The Ingramsexpanded the shop and havesince leased out the tea room,their symbiotic relationship re-flected in the common signage.The shop has a pleasant

frontage with a typically fullwindow display. Outside thereis a painted milk churn, a re-minder of its earlier emphasison a particular style of furni-ture and giftware. On entrythere is a narrow hallway with

stairs going up to the tea roomand another flight down fromstreet level to the basementwhich has windows frontingthe Bann. The main part of thegift shop is through a door tothe left in the hall. The shopwith its three rooms and flightof stairs is ‘busy’ with all wallspace used to maximum effect.Dromore has a good range ofshops with competition keep-ing business owners alert in

terms of service and value.The Ingrams face compe-

tition in a business wherediscretionary spending is vul-nerable in times of recession.Despite the pressures, businessthis year has been good. Wordof mouth bring customers toCountry Choice from as far asBangor and Portadown.In September a high-order

dress shop opened in a formerbank premises and has already

Ron McBride

Streetview No. 51: Country Choicebrought people into town:some of these customers callinto the tea room and, inevita-bly, the gift shop.This busy shop requires

considerable effort behind thescenes. Trends are importantand the main buying is at theNEC, Birmingham. Stock hasto be refreshed frequentlyand displays changed around.Stock must be refreshed to theextent that unsold items are‘moved on’. Gifts for the youngsuch as the Gor Juss rangeare kept and customers candiscuss the subtle differencebetween soya-based and petro-leum wax candles.A wide range of cards and

candles, lamps and occasionalfurniture, pictures and photoframes as well as jewellery andscarves is available. CountryChoice is very social by natureand is good for pottering with-out feeling under obligation.

Country Choice, 12 Bridge Street,Dromore BT25 1HN028 9269 9211

DAY IN THE LIFE

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DAY IN THE LIFE

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‘A major part for usis not simply tickingall the right boxesbut showing whatmakes us different’

Simon CampbellAn accountant by profession, he is now man-aging director of Portview Fit-Out

5.30amToday it’s an early start as I’moff to London for a pitch to anew client who is due to open arestaurant in the city. I drive tothe City Airport for the flightto Gatwick. While in LondonI will also visit one of our sitesand have a conference call.

7amOn the flight I catch anotherhour’s sleep before a busy dayof meetings with our clients.

8amOn the Gatwick Express Icatch up on emails and phonethe office in Belfast.

9amI head to the Institute of Di-rectors’ business centre in PallMall to take a conference callwith a client in Belgium.

9.45amSettled into the room I havebooked for the call. This facili-ty is really useful as it providesa quiet space where you canmake calls, and it enables youto have a conversation in pri-vate. The call is productive andI have been able to negotiate a

significant deal for PortviewFit-Out, following a recom-mendation from a previousclient.

11.15amI take the Tube to a site inWestminster which is near tocompletion. It is for a Japaneseclient and as well as being theirflagship store in the UK, theyare a new client for Portview.It is six weeks since I last sawthe site, so it has transformedtremendously from a strippedout shell to a retail space withfittings, bespoke furnishingsand special lighting now inplace. Our site manager JohnMcMahon gives me a tour ofthe building to see how it hasprogressed, and I get an oppor-tunity to speak to the architectwe are working with who ispleased with the way his visionhas been brought to fruition.

12.15pmI take the Tube to our potentialclient’s offices in Great Port-land Street and meet up withthe rest of the team involved inthe pitch for a quick sandwichand coffee and run over ourroles in the presentation to

make sure we are well pre-pared for what the client maythrow at us.

1.30pmPresentation goes well and theelements have come togetherwell to convey the experienceand knowledge that the teamhas to bring to bear for theclient. A major part is notsimply ticking the right boxesbut showing what it is that dif-ferentiates us as a company inour approach to working withclients that allows us to enjoyhigh levels of repeat businessand a growing reputation inthis tough market place. A lotof it comes down to our “rollour sleeves up” approach.Hopefully the client has seenthat today and we will waitto hear their response in duecourse. [Subsequently asked totender for the project — nowit’s down to price!]

2.30pmAnother coffee to debrief afterthe presentation to get a feelfor what the client’s reactionwas — what they seemed towarm to and where we can fo-cus on more the next time. It’s

always about learning — whateach client is like and focuseson to take into the project ifsuccessful, and what worksbest in how we convey the mes-sages we want to get across.

3pmSay goodbye to the guys andtube it back to the HeathrowExpress along with Mel ourestimator who was also attoday’s pitch.

4.00pmAt Heathrow I go through Ter-minal 2 for the first time andget a chance to see a couple ofother projects we have recentlycompleted there — SunglassHut and Dixons. I meet upwith one of our other contractmanagers who has also beenover today and catch up withprogress and issues and ageneral update. Flight back toBelfast is spent catching up onsome work related reading.

6.30pmAfter landing, I head home toget changed into Dad taxi torun kids to football and horseriding before heading out to amovie with my wife.

MOTORING NEWS

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MOTORING NEWS

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Citroen commercialeconomy driveEFFECTIVE from November’sproduction, Citroën has furtherimproved the fuel efficiencyand reduced the CO2 emissionsof the Berlingo — the brand’sbest-selling LCV model. Theversions benefiting from theseimprovements are the Berlin-go X, LX and Enterprise vanswith the HDi 75 diesel engineand the Berlingo LX e-HDi 90manual micro-hybrid van.The November changes see theHDi 75 powered Berlingo vans’combined cycle fuel consump-tion figure improve to 56.5mpg(previously 55.4mpg) and CO2emissions reduced to 131g/kmfrom 133g/km. Similarly, theBerlingo LX e-HDi 90 manu-al micro-hybrid sees its CO2emissions reduced to 120g/kmfrom 125g/km and its com-bined cycle fuel consumptionfigure improve to 61.4mpg(previously 58.9mpg).

Barclaycard give backing toFleet World Fleet ShowBARCLAYCARD has been con-firmed as the headline sponsorof next year’s Fleet World FleetShow at Silverstone on May 12.

The sponsorship follows thesuccessful launch of Barclay-card Fuel+, in associationwith The Miles Consultancy(Fuel+) at the Fleet WorldFleet Show earlier this year.Fuel+ is a new fuel andmileage expenses solu-tion designed to helpcompanies cut theirbusiness fuel costs by,on average, 25%.Fuel+ allows drivers torefuel at almost all petrolforecourts in the UK. The2015 show will again featurean indoor exhibition in halls1-3 of the Silverstone Wing,with a wide array of exhibitors.

Mondeo Man set to returnin the coming monthsALMOST 20 years after TonyBlair famously coined thephrase, ‘Mondeo Man’ is set toreturn to our roads. Accordingto research by Sewells Intel-ligence, over half of companycar drivers are consideringthe highly-anticipated fifthgeneration model for their nextcompany car when it arriveshere over the coming months.In the largest study of its kind,half of those asked and who

usually consider lower, upperand executive cars in the UserChooser Barometer (UCB)survey said they would defi-nitely or be likely to considerthe Ford Mondeo as their first

choice for their next com-pany car.The fifth generationMondeo is availablefrom this monthwith Ford’s rangeof ultra-economicalEcoBoost engines and,

for the first time in the UK, ahybrid petrol-electric option.

Politicians urged to supportnew road safety manifestoTHE IAM (Institute ofAdvanced Motorists) has pub-lished its road safety manifestofor the upcoming general elec-tion, calling for urgent supportfrom all political parties topromote driver and rider im-provement on UK roads.One of the more radical ideasin the IAMmanifesto, which isdesigned to cut the unaccept-able number of road deathsand injuries every year, is acall for high speed rural roadsto be part of the driving testas well as for road safety to be

part of the national curricu-lum.

Volkswagen salescontinue to climbTHE Volkswagen Group hand-ed over 8.24 million vehiclesto customers from January toOctober, thus reporting a newrecord and delivering morethan eight million vehiclesfor the first time in this ten-month period. The brands alsoreported a rise in deliveries inOctober, handing over 842,700during that month.Within the group, Audi de-livered 1.44 million vehiclesworldwide in the period toOctober.

New world champion setfor motorsport showNEW FIA World RallycrossChampion and former WorldRally Champion, Petter Solbergwill showcase his skills atEurope’s biggest motorsportshow, Autosport International.Solberg will perform stuntsin the UK’s largest indoorracetrack, the 5,000-seat LiveAction Arena, during the eventat Birmingham’s NEC fromJanuary 8 to Janury 11.

MOTORING

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FORmany there isonly one TT, theoriginal coupélaunched in 1999that not only did

so much to establish thereputation of Audi, but alsohallmarked a generation ofinnovative car design. How-ever, the marketing end ofthe company knew that theywere on to a winner and thebadge continued to adorn themore matronly shape of itssuccessor, adding 60,000 UKsales to the 50,000 units of

the original.Today the UK remains the

largest market for the car,ahead of Germany and theUS, as the third generationfilters into the showrooms.The new car is shorter and

narrower than the outgoingmodel and its less angularbodywork establishes a clos-er heritage to the original.But it also acknowledges thelatest Audi design elementsand shares its frontal aspectwith the R8, featuring thechamfered grille and bon-

net-mounted badge. Like theprevious model, the thirdgeneration is also offeredwith a diesel power unit andwhile the ultimate attractionis the 4-wheel drive Quattromodel with twin clutch au-tomatic gearbox, I found the2-wheel drive manual versionto be more engaging.Power-wise there are no

shortcomings with the frontwheel drive model, withits 2.0 litre turbochargedengine developing the same230PS as the all-wheel drive

variants. In this instance thein-line four drives througha six-speed manual gear-box, and with maximumtorque available from a lowly1,600rpm, response acrossthe rev band is immediateand satisfying.Despite a penalty of 0.7

seconds in the 0-62mph timecompared to the Quattroversion, it still manages torecord a very respectable 6.0seconds. But this disguisesthe car’s true ability, andweighing over 100Kg less

TT still a winnerAudi is to roll out the third generation of its cult sports roadster, writes Jim McCauley


AUDI TT COUPÉ

Engine: 2.0 litre, 4-cylinder TFSI turbo-petrol; 230 PS @ 4500-6200rpm;370 Nm torque @ 1600-4300rpmDrive: 6-Speed manual gearbox to front wheelsPerformance: 0-62mph (100km/h) in 6.0 seconds; max, 155mph ( 248km/h)Fuel on combined cycle: 47.9mpg ( 5.89 l/100km)CO2: 137gms/km; VED Band E for annual car tax of £130Trim: ‘S line’Price: £32,410Insurance: TBCWarranty: 3 years, 60,000 milesBenefit-in-kind: 20%Euro NCAP: TBCAvailable Extras: 19-inch alloy wheels £450, Auto lights, wipers and dimmingrear view mirror £110, Heated seats £325, Leather package £420, Rearparking sensors £430.

than the all-wheel drive car,it has greater agility andoverall poise with the man-ual ‘box fully engaging thedriver. The test car furtherbenefited by being in ‘S line’trim with a 10mm lower sus-pension adding to its driverfocused response.There is also the addi-

tional function of the AudiDrive Select adaptive drivingsystem, which allows thedriver to control the operat-ing parameters of the enginein a call-up menu that offerscomfort, dynamic, efficiency,individual and auto modes tofine tune the responses of thecar to individual preferences.The electronic stabilisationcontrol system can also beset to a preferred handlingmode.Advancing their tech-

nology applications to theinterior, the new TT features

virtual cockpit instrumentsin a 12.3-inch panel, in whichthe main displays of speed-ometer and rev counter canbe reduced in size to providea larger central area for thesatellite navigation or othercalled-up information.Like the original, the cabin

offers an enveloping drivingposition with excellent frontroom for both driver andpassenger.Rear seat room is restrict-

ed in both leg and headroom, leading Audi to de-scribe the car as a 2+2 ratherthan a full 4-seater. Luggagespace is increased over theprevious model to a generous305 litres with the rear seatsin situ, extendable to 712litres when folded.In ‘S line’ trim, the car re-

ceives a number of upgrades,including the lowered sus-pension and LED headlights

which provide superb spreadand range at night withexceptionally crisp cut-offlines.In addition to the equip-

ment level of the standardmodel, a range of driver as-sistance options are on offer,including side assist technol-ogy to help drivers changelanes more safely, andcamera-based traffic signrecognition that can alert adriver to speed limits even ifthey are only temporary.Other optional features

include park assist to helpguide the driver into suitableparking spaces, and activelane assist, which can correctsteering if there is a dangerof the driver unintentionallydrifting out of lane.Overall, Audi has pro-

gressed the TT in a car thatpays homage to the lines ofthe original but reinvents

it with engines that aremore powerful than thoseof the second generationcar, but less polluting andmore economical. The two-wheel drive model testedhas a given combined fuelconsumption of 47.9 mpgand CO2 emissions of 137gms/km, putting it in bandE for annual car tax of £130.The standard car comes inat just under £30,000, whilea £2,550 premium on the ‘Sline’ upgrade brings the listprice to £32,410.For those who like to see

a healthy return on theirpurchase after three years’ownership, the new TT 2.0litre in ‘S line’ trim has a CAPMonitor prediction of 46%,comfortably beating the 38%and 39% of its BMW Z4 andMercedes-Benz SLK compet-itors. The car can be orderednow for New Year delivery.


TECHNOLOGY

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Arcam Miniblink £90@ www.arcam.co.uk

The miniBlink is a simple, pocketsized Bluetooth receiver designed toallow absolutely any hi-fi system toreceive music from a smartphone,tablet, PC or Mac computer. TheminiBlink uses aptX™ transmissionsystem meaning a crystal clear

soundwith quick and simple pairing of devices. Amini-USBpower socket, 3.5mm audio output jack and pairing button areall that is needed to get theminiBlink streamingmusic to anyaudio system with a ‘line level’ input. The miniBlink’s audiocircuitry is engineered by Arcam to ensure real audiophilesound quality. It even comes with a PSU and all required ca-bles. Plug it into your hi-fi and themusic streamed from yourphone will sound better than the crackle of bacon cookingon Christmas morning.

Power Bank Charge£10 @ www.50fifty.comIf a fading battery on yoursmart phone puts a stop toyour day to day activities,simply power up, then poweron with this handy PowerBank. This convenient deviceworks to recharge all phonesand cable to USB attachments,as well asmany other devices,giving you up to 100% power,all from only a pocket sizedcharger. Quick to charge, easyto use and super reliable,this Power Bank gives youthe reassurance you needwhenmaking longer journeysor spending lengthier timesaway from an orthodox powerpoint.

Radley De Beauvoir Body Bag £149@ www.radley.co.ukIf you feel like treating yourself and your laptop this Christmas, then this lux-urious crossover bag is the gift for you. The Radley Camberwell medium zip-

top cross body bag has padded pockets suitable tohouse a small laptop or tablet device. Made frommeadle leather, it has foil branding and a contrastgrosgrain lining and detachable shoulder strap tocomplete the look. With zip fastening for safetyand a back pocket and adjustable strap, this bagwill make a welcome addition to your collection.It comes in a range of colours including grey,navy or pink.

Toshiba Encore Mini £[email protected] hunters will be attracted toToshiba’s latest product, the EncoreMini,as it comes in at under £100. The 17.8cm(7”) tablet offers Windows 8.1 with Bingand Microsoft Office 365 Personal, inan ergonomically designed, affordable,mobile package. Its conveniently compactform means users can take it anywhere,enabling them to store and sync work,or watch the latest films while on themove. This combination of features andformmakes the Encore Mini the perfectpartner for any primaryWindows-basedPC. It was designed for one-handed usagefor viewing content, or to fit into a smallbag, for comfortable use on the move.Optimised for portrait mode, it would

make a perfect firsttablet for occasionalrather than daily use.

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FASHION

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531 December 2014 BUSINESS MONTH 53

By Grainne McGarvey

IF you’re lucky enoughto get some down timethis festive season, it’simportant to dress forall eventualities in case

the temperature drops. Thebest way is to use layers andkeep your head, hands, andfeet toasty — as these areas are

most likely to feel the cold. Byadding details like buttons,faux fur or a pop of colour toyour winter staples, you willlook great whatever the weath-er — and if you drop enoughhints, you might get the must-have gifts you really want forChristmas.

CashmereStripedTunic £125@ Lands’End

Black FairIsle crewjumper £55@ House ofFraser

Celtic wool scarf £25@ www.clatteringford.com

Faux fur parka £115 @River Island

John Rocha gloves £28 @Debenhams

Lambeth mittens £29 @Radley

Gift wrap

Grey tartanscarf £39 @Barbour


TRAVEL

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BANGLADESH is all too oftenreported in cataclysmic terms:cyclones, floods, famine, ferryand factory disasters .... And yetthere’s plenty to celebrate.

This Bengali lowland of almost 160minhabitants isn’t rich, but an annual eco-nomic growth of 6%, fuelled by a youthfulpopulation has propelled it into GoldmanSachs’s “Next 11” list of future high fliers.For travellers, perhaps the biggest

surprise is an unexpected sigh of relief.Crossing from India into Bangladesh,the intensity of the subcontinent’s humanmaelstrom remains; corrupt odours... getused to them, personal space... what’s that?However, the perpetual hard sell startsto ebb as curiosity extends beyond thecontents of your wallet.Water is certainly a recurring theme.

The nation is dominated by the Gangesdelta; the rivers are vital arteries of trans-port and commerce, while regular inunda-tions are part of the seasonal cycle. My tripbegins at the heart of the delta in the capi-tal, Dhaka. From this seething metropolis,venerable ‘Rocket’ paddle steamers have,since 1928, provided serene passage on theBuriganga river through what was once

India (this land was violently partitionedinto the largely Islamic East Pakistan in1947 before becoming Bangladesh 24 yearslater).“Yes, yes. Rocket is here,” a resting

stevedore reassures me. Tuhin, my guide,lost amid the throng of Dhaka’s hecticSadarghat ferry terminal, indicatesthe end of the dock. Over thousands ofmilling heads and beyond rusty whitemulti-decked launches, the yellow-orangesteam punk fantasy of PS Mahsud is un-mistakable.Moorings made fast, boarding planks

clatter on to the dock and are roped down.A surge of passengers — among themhirsute youths holding hands and a trioof one-legged, destitute men — is held incheck by a stern-looking man wielding astick. A young woman without a ticket isgiven a loud dressing down and standsalone and forlorn. “No money and wantingto travel,” says Tuhin. “This is the tragedy.”In the end, the woman is nodded silentlyaboard.On the upper deck, our cabin is accessed

via one of eight doors leading off the first-class saloon, itself bisected by a long tablelaid with a white cloth. Everywhere layers

of paint have long since rounded any sharpedges adding to an ambience of genteeldecline. Bags stuffed under our beds, Iopen the door on to a wooden-railed deck.Below, a tumult of two-way traffic nego-tiates the gangplank — porters carryingjute-wrapped parcels, fruit vendors andnewspaper sellers hoping for a last-minutesale.At 6.30pm, lines are cast off. It’s the

start of an 220-mile overnight voyagesouth to Morrelganj, lost among theever-narrowing capillaries of the Gan-ges-Brahmaputra river delta. On the banksof the Buriganga, tall chimneys of brickkilns belch black smoke against the sky’slast light; small ferries, standing roomonly, navigate unsteadily through launchwakes, riverbank fires consume rubbish.It’s a different scene in the saloon where

a white-coated steward pours from a por-celain teapot into cups on saucers. Dinneris served: fish, chicken, vegetable curry,rice, dal. I’m given a knife and fork; Bang-ladeshis deftly employ their right hands.From stem to stern, PS Mahsud is a vil-

lage afloat. Beyond first and second-classcabins, deck passengers populate everyother space. Extended families occupy do-

RICH REWARDSWater is a recurring theme for Nick Redmayne as he travels from Dhaka, the capital of

Bangladesh, to the wild bay of Bengal, via paddle steamers, ferries and tenders

54


mains demarked by blankets, children inerratic orbit; wizened old men sleep curledon random ledges; kitchen staff rush fromcabins where vats of hot waterbubble on gas rings. Furthestaft, under dim lighting, theblack treacle of the Burigan-ga melds with the night,slipping past a few feetbelow a deck devoid ofbarriers. A searchlightsweeps ahead, pickingout nocturnal fisher-men and their boats.The thrash of paddlesand rumble of enginesis constant.Daylight reveals the

Buriganga has relaxedinto the wide expanse ofthe Meghna, the far banklost from view beyond rafts ofwater hyacinth. Other river traf-fic motors by. On the foredeck, CaptainAbdul Salaam is taking his ease. “Britishbuilt,” he says, tapping the side of his head.“This boat is speedy, we make 11 knots,eight-and-a-half against the current.”Silted channels and falling water levels

mean that Rockets no longer ply the routeto Khulna. Instead passengers disembarkat Hularhat, 25 miles before the terminus atMorrelganj, to complete the journey by bus.Doubts regarding the superiority of rivertransport are dispelled on the road to Khul-na. Lurching through cratered asphalt,my head whacks the car’s roof more thanonce, and I’m careful not to bite my tongue.“The MP here lives in very nice house,” saysthe driver, “but road never improves.” Asdarkness falls a game of vehicular chickenunfolds, cycle-rickshaws adding an extradimension. Lights are for softies.The following morning, outside Bang-

ladesh’s third city, Khulna, hidden withina labyrinth of rutted farm lanes, Tuhinshows me an ancient Hindu temple ofcarved bricks. “The Islamic saint, KhanJahan Ali came here from Baghdad in the15th century. Most Hindus converted,”he explains, “Or left for West Bengal orsouthern India. More went after Partitionin 1947.” Nearby, at the saint’s tomb, a lakeis home to marsh mugger crocodiles.Feeding these indolent reptiles promises

fulfilment of your heart’s desire, I’m told asI watch pilgrims purchase an unfortunatechicken. The vendor shouts for the crocodileby name, “Khala Phahar, Khala Phahar!”and lobs the bird into the water. The chick-en surfaces, to a small crowd’s expectantgaze. Then, shaking its feathers, it stalksback on to land. “We’ll try later,” says thevendor, “If there’s no crocodile, we’ll make itour dinner.” The pilgrims are satisfied. Lat-er, taking rickshaws around the backstreetsof Khulna, we stop for sweet, milky cha andhot, freshly-made rice cakes.At the Bhoirab river, we hire Toyab

Ali’s small ferryboat. “I’m 80 years old,”

he tells me. “The youngest of my broth-ers is already dead. I’ve committed mostsins and I’m still here!” Expertly swirlingthe single oar, Toyab is in rude health. “I

saw the British leave. Jinnah saidhe’d do many things. Nothingchanged, only the rulers.” Toyabstrokes his beard, “During theindependence war I saw Pa-kistani planes drop bombson empty ships. The riverwas the frontline. I car-ried the Pakistan army,sometimes freedomfighters, in my boat. Idon’t ask questions.”Back at the ferry ghat,

Tuhin points out thewhite decks of the MVKatka Express, the boat I’ll

take next day to the Sund-arbans National Park, almost

75 miles due south where the deltafeeds into the Bay of Bengal. Two thirds ofthe Sundarbans’ littoral mangrove forests,the world’s largest, lie within Bangladesh,the remainder in neighbouring India.They comprise 540sq miles of near impen-etrable wilderness with no permanent hu-man habitation; a redoubt for endangeredwildlife, protecting an estimated 450 royalBengal tigers.After cruising late into the night from

Khulna, early morning reveals a tran-quil anchorage in the forest. Thetender is made ready to explorenarrow channels among themangroves. My fellow pas-sengers are foreignersand middle-class Bang-ladeshis, all curious todiscover the secretsof the Sundarbans.Two uniformed forestguards shoulderingbolt-action rifles joinus. Abdul, the moresenior, sporting a hen-na-hued orange beardand coiffeur, describeshis last journey. “I fired tworounds into the air. We were pa-trolling alone. I found fresh tracksand thought the tiger was about to attack.”Abdul was quite possibly correct. Tigersare superlative primary predators and inthe Sundarbans they have an unusuallyaggressive reputation, which some blameon drinking salty water. Every year 50to 60 people — fishermen, golpata palmcutters and honey collectors — are killedin attacks.The morning mist has yet to dissipate,

and a trickle of birdsong broken by theoar’s gentle splosh are the only sounds.There can be few more serene waterways.A white-chested kingfisher flits across thebow, a pair of magpie robins cock theirheads from lofty perches. Through thetrees spotted deer graze, ever watchful.

In response to whispered instructionsthe boatman steers cautiously towards amuddy margin on the shore. Fresh tracksindicate a tiger having swum the channelhas regained the land, slipping once moreinto the forest, perhaps lying low, watch-ing us now.In the afternoon we walk through open

woodland, picking our way in betweenmangrove roots, observing more herds ofskittish deer. Emerging from the forest,we’re suddenly on the beach. Languidrollers from the Bay of Bengal collapse onthe shore. Abdul examines tracks in thesand — a tigress and a cub passed thisway, perhaps yesterday. It’s deemed safe toswim, so I do.Returning to Dhaka, the sleeper train

from Khulna trundles through the night.Stewards serve cups of cha and spicyvegetable cutlets. Later, they make up bedswith white sheets and pillows. Sleep comesin small measures between melodiousBangla station announcements. Arrivingin Dhaka, there’s consternation amongpassengers; the train is on time.Bangladesh isn’t easy but it is fascinat-

ing. Enduring preconceptions will deterthose for whom Bangladesh is not ready.However, for travellers who do visit, theassault of heady sensations comes witha genuine friendliness that will amplyreward their efforts.

Getting thereNick Redmayne flew from Edin-burgh to Dhaka via Istanbulwith Turkish Airlines(0844 800 6666; turkis-hairlines.com). Flightsalso operate fromBirmingham, Gatwick,Heathrow and Man-chester. Return faresstart at £475. Bimanflies non-stop fromHeathrow.The writer travelled

with Undiscovered Des-tinations (0191 296 2674;

undiscovered-destinations.com) which offers both tai-

lor-made and small group tours fromDhaka. The 13-day Bangladesh Discoverytour costs £1,599pp including hotel ac-commodation, most meals and transfers.It visits Sundarbans National Park, Sylhet,Srimongal, and Jafflong. Extensions to theChittagong Hill Tracts are available onrequest. Flights extra.

More informationBritish passport holders require a visa tovisit Bangladesh, available on arrival atDhaka airport for US$50/£33 (020 75840081; bhclondon.org.uk).Bradt guide to Bangladesh (2012; bradt-

guides.com)visitbangladesh.gov.bdbangladeshtraveller.com

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TRAVEL

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56 BUSINESS MONTH 3 November 2014

Country retreat: Relax in our lakelands

Fermanagh cottage isthe perfect escape

BY MARGARET CANNING

WHEN your first thoughtupon hearing birdsong is ‘hasmy other half changed his textalert again?’, you know you’vebeen cooped up in the city fortoo long. A restorative week-end in Co Fermanagh wastherefore more than called for.We’d heard of a new web-

site promoting cottages andother rural accommodationaround Northern Ireland(gorgeouscottagesireland.com) and selected the charm-ing Lakeview Cottage close toLisnaskea in Co Fermanagh.For two and a half days we

basked in rustic surround-ings of beautiful trees, all intheir autumn foliage — andLake Killyfole, right on ourdoorstep. There is also a hottub and sauna, so you don’thave to sacrifice mod cons atthis location.We had to battle through

dark and stormy conditionsin a circuitous, scenic andhilly route recommended by amisguided sat nav system.But we finally got there to a

warm, enthusiastic welcomefrom Caroline, the owner ofthe property. She’d bakedsome sultana, chocolateand plain soda bread in ourhonour — a gift that was stillpowering me through theworking day on the followingMonday.We awoke on Saturday to

sunlight streaming into thecottage, filtered throughthe autumnal leaves — andputting this hardened busi-ness hack in mind of Gerard

Manley Hopkins’ ‘golden-grove unleaving’ in his poem,Spring and Fall.The apartment/cottage is

cosy, with a well-equipped,spacious kitchen and a livingroom with plasma TV, sofasand a beamed ceiling. Thereare two bedrooms sleepingtwo people each, and a lovelybathroom.Overall, it’s stocked with

everything a family couldrequire for a weekend away,from board games to DVDsavailable to borrow from Car-oline, and plenty of leafletson what you can do in thearea.A games room on the

ground floor of the propertyalso has a table tennis tableand table football.We enjoy a lovely walk

around Lake Killyfole on Sat-urday — it’s just one minute’swalk from the apartment —and are greeted warmly by itslegion of dog walkers.We’re reluctant to stray

too far away but we do checkout the cafe offerings inLisnaskea, and Caroline’s rec-ommendation of the Kissin’Crust for lunch lives up to itsbilling.And while you can take

the journalist out of the newsroom, you can’t take the newsroom out of the journalist— so we find ourselves on atour of Sean Quinn countryfrom Derrylin in Fermanaghto Ballyconnell just over theborder in Co Cavan, and theone-time jewel in the Quinncrown, the Slieve RussellHotel.The following day we also

explore Crom Estate, wherethe BBC series Blandings wasrecently filmed.

BUSINESS MONTH 1 December 2014

The sauna atthe LakeviewCottage

OUT AND ABOUT

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withTheCHAIRMAN


The Chairman is relieved to report from a string of interestingsocial events as the glitterati lure him from his BT9 mansion

The Chairman normal-ly prefers to unwindin the confines of afine-dining room, com-plete with crisp linen

tablecloths and cutlery as denseas paperweights.But as soirees go, the Bel-

fast-based precursor to the Dub-lin Web Summit itself in Dublinwas something more akin to ascene from Mad Max — a filmhe glimpsed out of the corner ofhis eye after a rare trip to X-tra-vision (remember those?) backin the 1980s.A couple of hundred global en-

trepreneurs, investors and peoplewho appear to have somethingto do with mobile phones andcomputers were packed into thecavernous metal expanse of theT13 building — home to a ‘skate-park’, among other things.That, and rope and fire danc-

ers.Smoky, bright and garish —

The Chairman had been told thisis the way of the world these days.While the vivid lights of Dub-

lin boasted sunglasses-wearingwarbler Bono, along with ‘des-perate housewife’ Eva Longoria,Belfast’s Titanic Quarter had tomake do with our own celebritytechnology contingent.CEO of Brewbot, Chris Mc-

Clelland, was one of those takingto the stage during the two-dayBelfast launch—with a few of thefirm’s own beers floating aroundthe venue.The Chairman normally pre-

fers a 1982 Chateau Margaux.For those who prefer to fid-

dle with their laptops, ratherthan get out there and do someactual work, Marcus Segal, theformer chief operating officer ofZynga, maker of the compulsiveFarmVille game, or so I’m told—addressed the crowd.Of course, there were repre-

Appointments

sentatives from the NorthernIreland Science Park, along withElaine Thompson from InvestNI — who helped bring a little

Laura-Anne Hann has beenappointed digital marketing ex-ecutive at the Web Bureau Ltd.She has several years experi-ence working in marketing andevent management and she isnow responsible for planningand delivering clients’ digitalmarketing strategies.

Leeann Nuttall-Lowe has beenappointed digital marketingmanager at the Web BureauLtd. With 16 years in the webindustry, she has extensiveexperience in all aspects of dig-ital media.. She has particularexpertise in developing digitalmarketin g programmes.

Gemma Hinds has beenappointed digital marketing ex-ecutive at the Web Bureau Ltd.She has 16 months experienceas marketing executive for atelecommunications firm andis now responsible for helpingdeliver clients’ digital market-ing strategies.

business-minded decorum toproceedings.Still, not a single bottle of

Margaux anywhere to be seen.

Peter Harbinson of Invest NI (centre), Rachael McGuickin, Visit Belfast andPaul Brown of DisplayNote welcomed 150 high potential tech start-ups, in-vestors and media to Belfast’s Web Summit, ahead of Dublin’s main event

Ardmore Advertising picked up the award for marketing agency of theyear at the CIM Ireland Marketing Excellence Awards. From left, MarkIrwin, Miriam Pierce and Larry McGarry from the firm, picked up the gong

59

After the exertions of the WebSummit, the Chairman was re-lieved to repair to the heavi-ly-upholstered oasis of the UlsterReform Club.And no, the committee hasn’t

finally relented andwelcomed theChairman to its ranks, forgivinghim for his overly-vivaciousmoodon that fateful evening way backin 1981.Instead, it was under the aus-

pices of former PA editor Der-ic Henderson — now an acePR man — that the Chairmansneaked in to 4 Royal Avenue.Deric was ably co-hosting a

convivial lunch with dynam-ic father and son duo Eamonand Cathal O’Hare of O’Hare& McGovern construction firmin Newry.

The Chairman revelled in MrO’Hare snr’s ancedotes abouthow the company began around40 years ago, and marvelled at

its recent successes, including acontract to build a new school inEdinburgh.An already chummy atmos-

phere was enhanced, as ever,by the presence of two furtherdynamic duos—NaomiMcMul-lan and Jamie Delargy of UTV,as well as John Campbell andJulian O’Neill of BBC NI.The News Letter unchained

business correspondentRichardSherriff from his desk for longenough to enable him to securea morsel of lunch.And the Belfast Telegraph’s

Margaret Canning also relentedfrom her swift pursuit of TheChairman for his pearls of wis-dom (deadline? moi?) for longenough to share in the lovelyevent.


Appointments

Aidan Harbinson has beenappointed project manager atthe Web Bureau Ltd. He hasover five years experience indelivering projects under theAgile and Waterfall softwaredevelopment models and isnow responsible for specifyingand managing larger e-com-merce and custom projects.

David Cairns has joined theWeb Bureau Ltd as junior webdesigner. He has several yearsexperience working within theIT industry, including in thesouth of France. He will assistin all web development activi-ties at the Web Bureau Ltd.

John Mullan has joined theWeb Bureau Ltd as a webdeveloper. With a mathematicsbackground, he has joined theweb team after spending anumber of years working as aprogrammer in the insuranceand e-commerce industriesboth locally and Australia.

Northern Ireland Chamber of Commerce president Kevin Kingston hosted the President’s banquet at TitanicBelfast. He was joined by Enterprise Minister Arlene Foster, chamber chief executive Ann McGregor and guestspeaker Jeremy Paxman

Eamon O’Hare of O’Hare &McGovern builders hosted a medialunch at the Ulster Reform Club

THE CHAIRMAN

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THE biggest night in theNorthern Ireland pub industrycalendar didn’t fail to impress.It was penguin suits all

round for the annual Pub ofthe Year Awards, and a nightfor the region’s own celebrityfraternity to show their faces –The Chairman included – withCool FM’s Pete Snodden play-ing host for the lavish eveningat the La Mon Hotel.And of course, Corrie’s Big

JimMcDonald (actor CharlieLawson) made an appearance,so he did. Finance MinisterSimon Hamilton was alsosoaking up the jovial atmos-phere, with mind-bendingmentalist DavidMeade andBBC weatherman Barra Bestadding to the night’s NI celebri-ty credentials.Pubs of Ulster’s ownMark

Stewart—making his lastappearance as chairman thisyear — paid tribute to the highstandard of entries.News royalty came in the

form of broadcasting giantIvan Little, with the SundayLife team headed up by a ratherdapperMartin Breen.While the Goat’s Toe picked

up the top gong, a host of oth-

ers also walked away with theirown silverware.A spectacular Game of

Thrones tasting menu gaveRyan’s Bar a win, while swankynightspots Shiro and the Alba-ny also took home awards.There was also scope for a

late-night flutter in the lobby– transformed into a casino forthe evening. The Chairmanwas a dab hand at the black-jack. The same can’t be saidfor Irish News business editorGary McDonald, whose chipstack soon went the way of thedodo.

Appointments

Elaine Birchall has beenappointed chief executive ofSHS Group. She has more thantwo decades of internationalbusiness experience, includingsenior roles at multi-nationalsincluding Colgate Palmoliveand PZ Cussons plc.

Richard Ennis has been ap-pointed director of corporateand business banking at FirstTrust Bank to drive its growthplans in the business sector.Mr Ennis previously held seniorroles in Ulster Bank includingdirector and head of corporate,Northern Ireland.

Rebecca Kincade has joinedMCE PR as a client manager.Working as part of the firm’scorporate team, she managesthe public relations accountsfor clients including DanskeBank, WhiteRock CapitalPartners and Lambert SmithHampton.

THINGS took a remarkablydifferent turn at the launchof accountancy genius RossBoyd’s new Belfast office.Mr Boyd, who originally

started the practice from hishome in Comber, Co Down, haspreviously worked for inter-national accountancy firms inLondon, Dublin and Belfast.Mr Boyd told the Chairman

that the eponymous Ross BoydLtd works with a wide clientbase across pensions advisoryservices and business advisoryservices, such as tax plan-

ning, assisting with corporatetransactions and strategic andfinancial planning for start-ups.Mentalist DavidMeade

wowed, shocked and surprisedthe audience, as well as leavinga few participants terrified, atthe event in Established Coffeein the city’s Cathedral Quarter.PR maestro DavidMcCav-

erywas on hand to keep theperpetually disruptive hackpack in check.Before the show, the Chair-

man was lamenting the appar-ent lack of businesspeople inNorthern Ireland who want toenter politics.Once Mr Meade took to the

stage, things took a much morelighthearted turn.There is nothing more

terrifying than an entertainercalling you up on the stage,with some middle aged mendarting to the back of the roomto escape the mentalist’s gaze.Those in attendance will

know it’s a lot harder to get a£1,000 cheque fromMr Meadethan he’d let you believe.So good luck to the mental-

ist as he embarks on his newshow.

Finance Minister Simon Hamilton (l) and Pubs of Ulster chairman Mark Stewart (r) congratulated Pub of the Yearoverall winner Andrew Gedge of Bangor’s The Goat’s Toe

THE LAST WORD

with JohnSherrocks


NEWS that robots will have takenover a third of Britain’s jobs by2035 will no doubt have beenwelcomed by some employers— those envisaging a world in

which sick leave, overtime pay and pettyoffice politics were a thing of the past. Afterall, not even in the imaginations of themost gifted of science-fiction writers haverobots ever demanded the right to join atrade union. For these bosses the digitalrevolution heralds a return to the ‘heydays’of Margaret Thatcher’s rule — just withoutstriking workers.Low-paid, repetitive posts are at great-

est risk with people earning less than£30,000 a year five times more likely to seetheir jobs taken over by technology thanthose paid £100,000, according to a jointreport from Deloitte and the University ofOxford.But what if we end up with the Termina-

tor rather than R2-D2? I kid you not. ElonMusk, the billionaire founder of SpaceXand Tesla motors, fears a world in whichartificial intelligence (AI) reigns supreme.And he’s not alone. Theoretical physicistStephen Hawking is also warning thatthere are “no fundamental limits” to whatmachines may be able to accomplish in thefuture. “One can imagine such technologyoutsmarting financial markets, out-invent-ing human researchers, out-manipulatinghuman leaders, and developing weaponswe cannot even understand,” wrote Hawk-ing in The Independent.There is, of course, the possibility that

all this speculation will come to nought. Ican remember back in the 1980s when wewere awash with high hopes of a three-dayworking week thanks to the advent of com-puters in the workplace. The only ‘problem’humans would face, we were told, wasworking our how best to fill all the sparetime we’d have on our hands. And it wasn’tjust gullible journos like me who were tak-en in — canny property developers startedplanning the massive leisure parks thatwould be an essential component of ourtransformed lives. As it turned out, tech-nology did herald a new dawn but insteadof having to spend a lot less time working,we’ve all ended up putting in many morehours.Based on the disruptive effect technolo-

gy is already having in the workplace, I’velittle doubt that in two to three decadestime things will be radically different.The only question I have is: will things be

better or worse for mankind?Machines have been displacing humans

ever since the Industrial Revolution.Self-service tills in supermarkets are nowmaking cashiers redundant, just as ATMsdid within banking. And it’s not justrelatively unskilled jobs that are in thefiring line — computers are increasinglyreplacing highly trained workers in fieldssuch as architecture, medicine, teaching,science, transportation, journalism andthe law. After all, why would anyone wantto pay lawyers to review documents whensoftware can do the work faster and at alower cost? Some believe that not even di-rectors are safe now that Hong Kong-basedDeep Knowledge Venture has possibly setthe ball rolling with the appointment of adecision-making algorithm to its board.Supporters of the onward march of AI

argue that while some jobs will disappearbrand new ones will emerge. Furthermore,increased productivity will grow theoverall pie, reducing the need for peopleto even have to work for a living. The onlypie I can see in this reasoning is in the sky.Instead, I agree with American economistPaul Krugman who is warning that “wecould be looking at a society that growsever richer, but in which all the gainsin wealth accrue to whoever owns therobots.”For while the Industrial Revolution did

prove to be a catalyst for the creation ofnew jobs, there can be no certainty thatthe digital revolution will have the sameend result. When social network giantFacebook acquired Instagram for $1bn in2012 the photo-sharing service had just 13employees. At its peak photographic com-pany Kodak had a global staff of 130,000.Erik Brynjolfsson, a professor at the MITSloan School of Management, contendsthat the advances in computer technologyare largely behind the world’s sluggish em-ployment growth of the past 10 to 15 years.There is a widely held view that today’s

technology provides us as individuals withthe information and the means to forgeour own opportunities — to unleash with-in each of us the creativity and possibilitythat has given birth to digital-sharingeconomy successes such as Airbnb andUber. World Wide Web founder Sir TimBerners-Lee believes the internet providesa massive creative space where people“have the ability to start a new industry ifyou can dream it up”.For what it’s worth, I concur with this

train of thought, but as the father of threeschool-going children I also have graveconcerns that our current eduction systemis not equipping the next generation withthe skills and the wherewithal needed tofully exploit these opportunities. Thereneeds to be a greater focus on stimulatingthe cognitive strengths of flexibility andcreativity within youngsters. It’s only withless rote-learning and more critical think-ing that tomorrow’s workers will be able tosuccessfully compete with robots.As Gary Marcus, a professor of psycholo-

gy and neuroscience at New York Universi-ty, notes: “Curricula that foster creativity— by developing children’s intrinsic mo-tivation for originality, encouraging theirintellectual risk-taking and cultivatingtheir metacognitive ability to self-reflect —might be a good place to start.”

Will the rise of the robots herald a new golden age in the world of work or will it leavemost of us behind as artificial intelligence takes over in even more fields of expertise?

We could be lookingat a society that

grows ever richer, butin which all the gains inwealth accrue to whoeverowns the robots

Documents

Business Month December 2014