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Hertfordshire Limited

Investing for growth

November 2013

In association with

LEISUREGROW HOLDINGS LIMITED LENA WHITE LIMITED LENGARD HOLDINGS LIMITED LEVY ASSOCIATES LIMITED LEWIS TYLER & SONS

(FENCING) LIMITED LIGHTNING PACKAGING SUPPLIES LIMITED LONDON FLUID SYSTEM TECHNOLOGIES LIMITED LOPPINGDALE PLANT LIMITED

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Hertfordshire Limited 2013: Investing for growth 1

This is the second year we have run Hertfordshire

Limited. We wanted to understand how the county is

performing at a time when business confidence is

certainly a lot higher than twelve months ago. We ran

the data for the top 200 private companies in

Hertfordshire and we remain impressed by the

dynamism of the business community. There continues

to be encouraging trends in terms of employment

growth and clear signs that companies are investing in

anticipation of the upturn.

In the second year, we are starting to see some

recurring themes. The county is very well represented

in Property and Construction and in the Food, Drink

and Leisure Sector. The largest private companies

within Hertfordshire are major businesses by

comparison with neighbouring counties

– with 6 companies having turnover in excess of

£500million.

The very largest companies have experienced mixed

fortunes. However, SMEs within the county continue

to grow, a particularly positive sign as these represent

the "engine room" of the economy. Hertfordshire

Limited focuses on independent companies, but the

county includes major listed companies such as Tesco

and EADS, as well as continued excellence in life

sciences and pharmaceuticals. Additionally, the creative

industries are a source of excellence in the county, so it

is particularly fitting that Dan Dark of Warner Bros.

Studios Leavesden is our 2013 speaker.

The overall picture for the county is that it is well

placed for growth.

Steve White

Advisory

Jeremy Read

Assurance

Introduction

Foreword


As Chairman of Hertfordshire Local Enterprise Partnership (LEP), I welcome

Grant Thornton‟s invaluable contribution to the Growth debate. Their report

makes fascinating reading for anyone interested in Hertfordshire‟s economic

performance.

Our organisation has an important role to play in

championing the interests of local business both

nationally and internationally. Engaging with local

firms is vital to this process and evidence based work,

such as that produced by Grant Thornton, provides us

with a fuller understanding of our business community.

In a sense, Hertfordshire Limited mirrors the LEP‟s

understanding of the true state of affairs: doing well

but could do much better. Hertfordshire does have a

comparatively strong economy but it is the pace of

growth that most concerns us.

The report, therefore, provides a salutary reminder that

we are still grappling with the effects of the longest

economic recession in living memory.

Whilst growth rates in some of the larger firms are

sluggish, there are very encouraging signs that many of

the smaller and midsized SMEs are starting to flex their

muscles. We are also starting to see Hertfordshire‟s

business base getting back to its pre recession levels,

which is a strong indicator that confidence is returning.

The LEP has recently published its growth strategy

based on the vision that by 2030 Hertfordshire will be

the leading economy at the heart of the UK‟s golden

research triangle (Oxford-Cambridge-London).

So as we negotiate a “Growth Deal” for Hertfordshire

with government to deliver the strategy, our efforts will

be focused on accelerating business growth by tackling

historic underinvestment in infrastructure, maintaining

a highly qualified workforce and capitalising on the

unique opportunities that Hertfordshire‟s location and

business sectors have to offer in the global marketplace.

I look forward to us working together to achieve these

aims.

John Gourd

Chairman - Hertfordshire LEP

Her

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Lim

ited

Our thanks to…

During the preparation of our report, we have spoken with a number of

businesses in the Hertfordshire top 200 to understand how they are driving their

companies forward. Our thanks to all those involved, with particular thanks to

the following individuals and businesses. These companies demonstrate that

while the headlines may not shout out success across the board, there are plenty

of resilient, growing businesses in the county:

• Dan Dark – Warner Bros. Studios Leavesden

• Steven Eagell – Steven Eagell Toyota

• Paul Ugo – Ugo Foods

• Raj Mavani – Villa Plus

• Mark Needham - Widget UK

• Steve Sampson – Ginicam / Paradise Wildlife Park

• Jonathan Kane – Kane International

Please join our Linked-in group, Hertfordshire Limited, for on-going

updates.


The survey analyses the financial performance of

Hertfordshire's leading privately owned companies.

This provides a yardstick against which the county can

assess its economic performance and businesses can

benchmark themselves against their peers.

Hertfordshire Limited is the latest in a series of

detailed business analyses by county initiated by Grant

Thornton which have become a key feature in the local

business calendar in Cambridgeshire, Essex,

Buckinghamshire, Bedfordshire, Northamptonshire

and Suffolk.

How Hertfordshire Limited is compiled

Hertfordshire Limited is compiled using the most

recent publicly available accounts (as at 25 October

2013) of the county's 200 largest privately owned

companies based on turnover and with their principal

trading address in Hertfordshire. The survey excludes

companies that are listed or owned by listed or

overseas businesses. This survey encompasses

companies with revenues ranging from just under £12

million to over £1 billion.

Inevitably there is a time delay between the availability

of the data used and the presentation of this report.

Therefore the report covers the period before the

clearer signs of recovery became evident in the UK

economy and there was still significant turbulence in

the Eurozone.

The report gives a fascinating insight into how

Hertfordshire Limited has performed and provides a

snapshot of the health of the county's economy as

businesses in Hertfordshire respond to the challenges

that lie ahead.

Following analysis of the constituent members of

Hertfordshire Limited, nine sectors were identified to

form the basis of this report:

The results are derived from the current and previous

year's financial statements of the constituent members

to allow a year on year comparison.

About Hertfordshire Limited

Launched last year by financial and business advisers, Grant Thornton,

Hertfordshire Limited gives a unique insight into the performance of the

business community in the county

• Automotive & Motor Retail

• Business Support Services

• Food, Drink & Leisure

• Freight & Logistics

• Healthcare & Education

• Industrial Manufacturing

• Property & Construction

• Retail & Wholesale

• Technology


Our findings – county performance

Current Year Prior Year Variance

£000 £000 %

Turnover 13,533,574 13,536,982 0.0

EBITDA 1,085,238 1,094,614 -0.9

Interest payable 323,633 303,018 6.8

Average cost of capital 6.2% 5.9% 4.8

Interest cover 3.35 3.61 -7.2

Gearing 2.63 2.63 0.0

Trading Summary – All Companies


£000 £000 %

Fixed assets 5,150,336 5,186,169 -0.7

Current assets 4,872,571 4,599,162 5.9

Current liabilities 3,282,199 3,278,296 0.1

Net current assets 1,590,372 1,320,866 20.4

Total equity 1,986,876 1,944,677 2.2

Total debt 5,216,518 5,117,122 1.9

Average stock turnover 68 64 3.5

Debtor days 46 48 -2.1

Cash 981,396 945,964 3.7


Balance Sheet Summary – All Companies

The consolidated balance sheet of Hertfordshire

Limited gives a strong sense of the confidence that

is returning to the county's economy with the key

movement in net current assets of over 20%,

considered in conjunction with the working capital

measures of average stock turnover and debtor

days painting a picture of a business community

that is growing in confidence.

Inventory levels are rising, perhaps in anticipation

of a significant upturn in activity whilst cash

balances remain healthy.

This also contextualises some of the gearing

metrics previously highlighted, with debt being

deployed to support future trading growth rather

than to underpin weak balance sheets.

In overview therefore the financial data paints a

picture of a business community that is regaining

its confidence as we emerge from the recession

with investment for growth becoming the

prevailing theme over cost control.

Headline results

The results for Hertfordshire Limited in 2013 present a

mixed picture with a largely flat performance in both

turnover growth and profitability masking a more

positive performance from the small and medium sized

enterprises (SMEs) that remain the engine of growth

for the County's economy. The consolidated accounts

show that sales were static at £13.5 billion whilst

earnings before interest, tax and depreciation

(EBITDA), which we have taken as the best proxy for

operating cash generation, has also remained flat at

£1.09 billion.

A small increase in total debt of 1.9% has resulted in a

6.8% rise in interest payable, further compounded by a

slight increase in the average cost of capital. The key

financial covenant of interest cover remains strong

however, whilst gearing is stable (although as

highlighted in last years report this continues to be

high in absolute terms and is skewed by a number of

large leisure businesses which carry high levels of debt

to fund large freehold estates).

,

Employment

Employment trends in our survey continue to be

encouraging with an overall increase in total

employees of 5.4%. This is largely driven by service

led sectors and supports the contention that

business confidence continues to increase. Average

remuneration remains relatively flat however,

mirroring national trends that employers are

continuing to focus on employment costs to remain

competitive as we emerge from the recession.

This compares to a national average wage of

£26,500 (a rise of some 1.4% over the previous year)

and continues to highlight some of the structural

features of Hertfordshire, with the impact of

significant employers in relatively low paid sectors

such as leisure and retail (characterised by seasonal

employment outside the county) being offset by the

presence of higher paid, highly skilled roles in other

sectors such as technology.

The close proximity of London as a magnet for

talent also continues to be a challenge for all

employers in the county.



%

Total employees 104,889 99,552 5.4%

Total employee remuneration 2,680,790 2,529,991 6.0%

Average remuneration (£) 25,558 25,414 0.6%




£000 £000 %

Fixed assets 1,662,112 1,690,864 -1.7%

Current assets 2,900,514 2,634,843 10.1%

Current liabilities 1,586,762 1,519,960 4.4%

Net current assets 1,313,752 1,114,883 17.8%

Total equity 1,716,084 1,609,783 6.6%

Total debt 1,558,575 1,530,392 1.8%

Average stock turnover 64 57 12.3%

Debtor days 47 49 -4.1%

Cash 529,752 471,942 12.2%


£000 £000 %

Fixed assets 3,488,224 3,495,305 -0.2%

Current assets 1,972,057 1,964,320 0.4%

Current liabilities 1,695,437 1,758,336 -3.6%

Net current assets 276,620 205,984 34.3%

Total equity 270,792 334,894 -19.1%

Total debt 3,657,943 3,586,730 2.0%

Average stock turnover 89 85 4.7%

Debtor days 39 39 0%

Cash 451,644 474,022 -4.7%


£000 £000 %

Turnover 7,469,745 7,883,312 -5.2%

EBITDA 675,324 733,636 -7.9%

Interest payable 262,992 240,589 9.3%

Average cost of capital 7.2% 6.7% 7.5%

Interest cover 2.57 3.05 -15.7%

Gearing 13.51 10.71 26.1%


£000 £000 %

Turnover 6,063,829 5,653,670 7.3%

EBITDA 409,914 360,977 13.6%

Interest payable 60,641 62,428 -2.9%

Average cost of capital 3.9% 4.1% -4.9%

Interest cover 6.76 5.78 16.9%

Gearing 0.91 0.95 -4.2%


A comparison of the largest twenty companies by

turnover against the remaining population (the 'Herts

20' and 'Herts 180' respectively) of our survey using

the same financial metrics gives further colour to the

emerging trends within the county. The largest twenty

businesses represents 55% of the economic activity of

our sample by turnover and give a clear indication of

the scale of some of the indigenous companies in the

county. There is a pronounced difference between the

trading performance of these two groups, with the

Herts 180 demonstrating a strong upturn in both

turnover and profitability compared to the large

companies. This informs a view that these dynamic

enterprises are proving to be the early drivers of

growth for the economy.

The balance sheet metrics and their corresponding

impact on funding levels suggest however, that it is

the large corporates that are re-gearing for growth

more aggressively with net current assets rising by

some 34% in a movement that appears to be largely

driven by stock. This would suggest a greater caution

on the part of the smaller Herts 180 in preparing for

the upturn with a strong focus being maintained on

reducing debt, as gearing falls by some 4% and

interest cover rises strongly. There are clearly some

key qualitative questions arising from the data as it is

unclear what impact the well publicised access to

finance issues for SMEs are having on these trends,

but in overview there is much to encourage a view

that confidence is returning strongly to business and

all segments of the economy are responding positively

as we emerge from recession.

Balance Sheet Summary – The Herts 20 Balance Sheet Summary – The Herts 180

Trading Summary – The Herts 20 Trading Summary – The Herts 180

Sector review

In line with the mixed picture already highlighted

elsewhere in the report there is some inconsistency in

individual sector performance for the period under

review.

Service and consumer led sectors have performed

strongly with Business Support Services and

Healthcare delivering particularly impressive turnover

growth.

The more challenging view presented by industrial

sectors is skewed by significant restructuring in a

small number of large corporates however, and the

underlying trend remains positive for most businesses

across all sectors.

Sector performance - Turnover

Current

year Prior year Variance

£000 £000 %

Automotive & Motor Retail 673,124 659,492 2.1%

Business Support Services 1,186,243 1,093,243 8.5%

Food, Drink & Leisure 4,268,699 4,114,053 3.8%

Freight & Logistics 88,993 94,966 -6.3%

Healthcare & Education 1,214,358 1,093,491 11.1%

Industrial Manufacturing 872,520 1,153,514 -24.4%

Property & Construction 3,998,254 4,160,436 -3.9%

Retail & Wholesale 542,064 510,572 6.2%

Technology 689,319 657,216 4.9%

Grand total 13,533,574 13,536,983 0.0%

Turnover by sector

Composition of Hertfordshire Limited by

number of companies by sector

Composition of Hertfordshire Limited

by turnover by sector (£bn)

15

30

31

2

37

22

34

12

17

Automotive & Motor Retail

Business Support Services

Food, Drink & Leisure

Freight & Logistics

Healthcare & Education

Industrial & Manufacturing

Property & Construction

Retail & Wholesale

Technology

0.7 1.2

4.3

0.1 1.2 0.9

4.0

0.5 0.7


Sector profitability

Sector profitability broadly tracks the picture painted

by the turnover analysis with the pronounced negative

movement in Industrial & Manufacturing being

attributable to some large individual businesses.

There remains margin pressure in some sectors,

notably Automotive & Motor Retail and Technology

but again the underlying data supports a direction of

travel that remains positive for most businesses across

all sectors.

The number of los smaking businesses remained low

with twelve companies recording an EBITDA loss

compared to eleven in the previous year.

Sector performance - Profitability

EBITDA by sector

Current year Prior year Variance

£000 £000 %

Automotive & Motor Retail 19,559 21,506 -9.1%

Business Support Services 97,650 79,468 22.9%

Food, Drink & Leisure 370,394 367,519 0.8%

Freight & Logistics 5,892 8,170 -27.9%

Healthcare & Education 141,982 128,396 10.6%

Industrial & Manufacturing 92,721 130,159 -28.8%

Property & Construction 172,292 179,295 -3.9%

Retail & Wholesale 158,184 146,412 8.0%

Technology 26,564 33,689 -21.1%

Grand Total 1,085,238 1,094,614 -0.9%


Sector performance – Automotive &

Motor Retail and Business Support

Services


£000 £000 %

Turnover 673,124 659,492 2.1%

EBITDA 19,559 21,506 -9.1%

Operating profit 9,847 13,936 -29.3%

Interest paid 2,257 2,338 -3.5%

Profit before tax 8,324 11,791 -29.4%


Total remuneration 78,665 74,497 5.6%


Fixed assets 79,927 73,351 0.8%

Cash 18,240 17,117 6.6%

Total debt 45,308 45,345 -0.1%

Total equity 61,001 60,258 1.2%

Gearing 0.74 0.75 -1.3%

Steven Eagell started his Toyota business with one site in 2002. At the outset he was aware that expansion was required. The group has now expanded to seven locations, two of which are based in Hertfordshire. The business employs 211 people including 24 managers and is still looking to expand further where there is a strategic fit for the growth plans. Steven is proud of the fact that the business offers genuine career progression and engenders a lot of loyalty amongst the workforce. In line with the company's organic growth policy, nearly every one of his managers has come up through the ranks and can boast an average 9 years of service in the 11 years the business has been trading. This level of engagement feeds through to the connection his team have with their customers in delivering an excellent customer experience. He firmly believes that if you look after your customers and keep in contact with them they will keep coming back to you; "We tend to focus on keeping it simple and getting the basic things right" he says, "We are passionate about providing complete customer satisfaction". Currently operating a £90m turnover group, this Hertfordshire based business is going from strength to strength.


£000 £000 %

Turnover 1,186,243 1,093,243 8.5%

EBITDA 97,650 79,468 22.9%

Operating profit 54,731 38,984 40.4%

Interest paid 25,444 27,340 -6.9%

Profit before tax 38,038 6,499 485.3%



Average remuneration (£) 16,542 17,415 -5.0%

Fixed assets 255,334 261,860 -2.5%

Cash 81,076 69,259 17.1%

Total debt 402,037 384,743 4.5%

Total equity 12,142 18,792 -35.4%

Gearing 33.11 20.47 61.7%


Automotive & Motor Retail

The Automotive & Motor Retail sector is dominated

by franchised dealers in Hertfordshire and their

performance highlights the resilience of car sales

though the downturn, with new car volumes

remaining strong. There has, however, been margin

pressure to maintain these volumes resulting in the

sector experiencing a significant decline in operating

profit.

The challenge of a commission led remuneration

structure based on unit volumes is also evident with

average remuneration showing a marked increase in

the current year.

Notable performers in this sector include Brayley

Cars and S&B Commercials.

Business Support Services

Business Support Services is a major component of the

Hertfordshire economy and on this basis the strong

turnover and profit growth experienced by the sector is

particularly encouraging.

The sector has performed well across a range of other

KPI's demonstrating good employment growth and

cash generation. Average salaries have remained under

pressure and gearing levels are heavily skewed by VPS

Holdings, a large provider of vacant property services,

whose private equity funding includes significant

subordinated debt.

The sector includes outstanding growth achieved by

VPS, Mcginley Support Services and Churchill Contract

Services.

Food, Drink & Leisure

Food, Drink & Leisure remains the largest sector in

Hertfordshire, which is home to major leisure groups

such as Bourne Leisure and David Lloyd, as well as

significant players in the Food & Drink arena such as

Noble Foods, Lamex Food Group and Burton's.

Trading performance has been solid with most

companies experiencing modest turnover growth and

stability in terms of EBITDA margins. The sector

remains the largest employer in the county with

employment levels being maintained and supporting a

small rise in average remuneration.

Sector performance – Food, Drink &

Leisure and Freight & Logistics

Freight & Logistics

Freight & Logistics remains a very small sector in

terms of privately owned businesses with any scale,

perhaps highlighting the dominance of large

multinationals in supply chain logistics. As a

consequence relatively small movements in absolute

terms are accentuated. It is encouraging to see

however, that a downturn in trading performance has

been underpinned by a significant rise in new

employees in the sector, implying a greater confidence

in the future trading environment. The largest

company in the sector is Star Cargo plc which

delivered solid growth in the period under review,

growing its turnover to £73.6m.


£000 £000 %

Turnover 4,268,699 4,114,053 3.8%

EBITDA 370,394 367,519 0.8%


Interest paid 106,107 101,004 5.1%





Fixed assets 2,103,187 2,106,482 -0.2%

Cash 143,889 107,100 34.4%

Total debt 1,928,356 1,893,145 1.9%

Total equity 517,071 544,192 -5.0%

Gearing 3.73 3.48 7.2%


£000 £000 %

Turnover 88,993 94,996 -6.3%

EBITDA 5,892 8,170 -27.9%


Interest paid 488 537 -9.1%


Total employees 730 530 37.7%



Fixed assets 28,076 26,552 5.7%

Cash 9,734 9,379 3.8%

Total debt 11,069 11,972 -7.5%

Total equity 20,380 18,857 8.1%

Gearing 0.54 0.63 -14.3%

Villa Plus is a villa and pools tour operator based in St Albans. From small beginnings in 1986 the business has grown from having

turnover of just over £1m to its current level of £43m per annum with aspirational growth targets over the next few years. The

company prides itself in being able to build a significant and unusually high level of repeat business among its customers as a result

of providing them with high quality accommodation. In addition and distinct from their competitors, having offices overseas enables

the team to ensure there is an excellent customer experience that engenders ongoing loyalty. Speaking about the greatest challenge

the company faces in the plans for growth, Raj Mavani, Director at Villa Plus, explained that finding and attracting the right talent with

the right skills is top of the list. This SME is looking to the future and growing top line year on year despite rising costs and adverse

exchange rate movements. Let’s hope that talent challenge delivers and another great business operating in the Hertfordshire area

continues successfully investing for long term growth!


Healthcare & Education

Healthcare & Education remains a significant

sector in the Hertfordshire economy

encompassing both commercial enterprises and

not for profit organisations.

The marked turnaround in trading performance is

underpinned by some notable results, particularly

for Education Personnel and Flynn Pharma whose

growth has been impacted by significant

acquisitions in recent years.

The sector continues to be a significant employer

for the county and pharmaceuticals in particular

remains a strategic industry for driving high "value

add" in the local economy.

Sector performance – Healthcare &

Education and Industrial Manufacturing


£000 £000 %

Turnover 1,214,358 1,093,491 11.1%

EBITDA 141,982 128,396 10.6%

Operating profit 100,811 (1,654) 6194.9%

Interest paid 74,974 67,487 11.1%

Profit before tax 29,593 (66,371) 144.6%




Fixed assets 1,112,917 1,106,758 0.6%

Cash 120,950 94,161 28.5%

Total debt 1,061,264 1,043,533 1.7%

Total equity 245,269 231,113 6.1%

Gearing 4.33 4.52 -4.2%


£000 £000 %

Turnover 872,520 1,153,514 -24.4%

EBITDA 92,721 130,159 -28.8%


Interest paid 45,170 30,553 47.8%





Fixed assets 657,203 646,032 1.7%

Cash 98,851 133,004 -25.7%

Total debt 567,578 578,083 -1.8%

Total equity 299,368 280,569 6.7%

Gearing 1.90 2.06 -8.0%


Industrial Manufacturing

The fortunes of the Industrial Manufacturing sector

are highly skewed by the performance of one

dominant player in the sector, Renewable Energy

Systems (RES), which experienced a fall in turnover

from £750 million to £450 million and a

corresponding drop in profits in the period under

review. This is due to challenges in the US renewables

market rather than reflective of the Hertfordshire

business economy. If RES is excluded from the

analysis the sector experienced turnover growth of

4.6% and impressive EBITDA growth of 56%,

demonstrating the high value solutions characteristics

of this sector in the county. This is further

demonstrated by the average remuneration in the

sector which whilst being relatively flat year on year,

remains very high in absolute terms.

Kane International designs, manufactures and sells portable electronic analysers used by plumbers and mechanics to test boiler and

vehicle emissions. Over half its sales are outside the UK.

Founded by Douglas Kane and Ernest May in 1963 in Welwyn and now run by Jonathan Kane, this second generation family

business employs 100 people in 2 locations in Welwyn Garden City and in Atherton, Greater Manchester. It is the UK's largest

manufacturer of analysers used by plumbers and heating engineers to ensure domestic and commercial hot water and heating

systems are safely installed, commissioned and serviced.

Jonathan thinks Hertfordshire is a great place for business as it has easy access to worldwide markets, skilled people and an

industrial base ideal for finding premises and suppliers and looks forward to the next 50 years in Hertfordshire, being part of its

economic and industrial development

Sector performance – Property &

Construction and Retail & Wholesale


£000 £000 %

Turnover 3,998,254 4,160,436 -3.9%

EBITDA 172,292 179,295 -3.9%


Interest paid 40,391 46,994 -14.1%



Total remuneration 674,762 720,479 -6.3%


Fixed assets 533,423 608,810 -12.4%

Cash 398,909 417,756 -4.5%

Total debt 868,038 841,707 3.1%

Total equity 604,630 574,069 5.3%

Gearing 1.44 1.47 -2.0%


£000 £000 %

Turnover 542,064 510,572 6.2%

EBITDA 158,184 146,412 8.0%


Interest paid 26,200 24,756 5.8%





Fixed assets 309,105 288,301 7.2%

Cash 35,578 31,549 12.8%

Total debt 267,666 257,185 4.1%

Total equity 92,105 82,839 11.2%

Gearing 2.91 3.10 -6.1%

Ugo Foods Group Limited is based in Borehamwood and is the UK’s fastest-growing manufacturer of chilled pasta, noodles and

dumplings. The company was set up in 1929 when current Chairman Paul Ugo's grandfather first started making fresh pasta by hand

in his small shop in Gerrard St, London, delivering it to his customers later that morning on his bicycle!

Dell’Ugo is the UK’s largest fresh pasta brand, and specialises in making filled and unfilled pasta, based on authentic Italian recipes.

Its pasta currently includes a range of delicious, generously-filled ravioli (including organic), superb artisan & classic gnocchi, a

restaurant quality ‘Dell’Ugo Deli’ range and an award-winning gluten free chickpea Fusilli. Ugo Foods Group Limited have awards

dating back to a gold medal in 1935 at the London International Exhibition, and in recent years has been awarded the prestigious

Gold Q out of 109 short listed products at the Q awards, best new product at the Seafood awards, came fifth in the Sunday Times

‘Best Small Business to Work For’ and won the best fresh retail pasta product of the year at the PAPA awards.


Property & Construction

Property & Construction is a sector which continued

to experience some challenges in the period under

review albeit we believe that the picture is more

positive than the crude data implies. It is a sector

which is highly important to the overall performance

of the county, with two of the largest three companies

in Hertfordshire Limited represented by this sector.

The decrease in profitability of the sector for this

year‟s review is largely down to some of the larger

companies, but the sector is one where it is relatively

common to see large year on year swings. Together

with Food, Drink & Leisure, it is a real powerhouse of

the Hertfordshire economy in terms of overall

turnover. The increase in total employees highlights

an encouraging trend in an industry that was

particularly badly hit by the recession.

Retail & Wholesale

Retail & Wholesale is a sector dominated by

Brighthouse Group, the UK's leading "rent to own"

retailer whose strong turnover and profit growth in

the period powered a strong trading performance for

this sector.

The industry also delivered excellent employment

growth although it remains a relatively small employer

in absolute terms.

With the notable exception for Brighthouse whose

proposition plays well in a recessionary environment,

the sector continued to evidence the impact of the

ongoing weakness of consumer spending during the

period under review.

Technology

The Technology sector has experienced mixed

fortunes with revenue growth not translating into

profitability. There are no dominant players in the

county and it is difficult to extrapolate any consistent

theme from the data presented although, once again,

employment growth in the sector is notable. The

balance sheet metrics remain strong with low gearing

as is typical in an "asset light" sector.

Annodata and AVC delivered particularly strong

performances in the period under review.

Sector performance – Technology


£000 £000 %

Turnover 689,319 657,216 4.9%

EBITDA 26,564 33,689 -21.1%


Interest paid 2,602 2,008 29,6%





Fixed assets 77,164 68,025 13,4%

Cash 74,169 66,639 11.3%

Total debt 65,202 61,409 6.2%

Total equity 134,910 133,988 0.7%

Gearing 0.48 0.46 4.3%

Widget UK Limited is a specialist distributor of consumer electronics products based in Stevenage. Its customers are leading

retailers in the UK, (including Dixons Retail, Amazon.co.uk, John Lewis, Maplin, Tesco and the TV shopping channels) in

Scandinavia, (including Elkjop, Fona and Expert) and in Benelux through its subsidiary in Eindhoven, The Netherlands.

Widget was TomTom’s first distributor in the UK. The company continues to supply its retail customers with new innovative products

which drive sales in the electronics market such as Fitbit personal activity monitors or Orbitsound soundbars.

Widget’s business is about service, product choice and supply chain management, but it also requires innovation and attitude.

Widget understands the complexities of bringing technology products to market and maintaining sales success and goes the extra

mile to find opportunities for its suppliers and customers.


Based in offices at University of Hertfordshire, My Rewards Company has solutions for corporate rewards, fund raising for charities

and good causes, RememberNINO to help organisations comply with their PAYE RTI obligations and CodeTracker which companies

can use to create trackable e-vouchers. In addition to these projects, the same team is also working on developing Ginicam.

Ginicam is a real time interactive broadcast and engagement platform for service providers and celebrities to monetize their online

presence. Ginicam is FREE to use and only costs you money if you make money. What makes Ginicam unique is that you can

charge in real time or as a pay per view broadcast. The underlying technology - Gininet is available as a white label solution for

corporates.

And something unique to

Hertfordshire………..


Based in Hertfordshire, Paradise Wildlife Park is Europe‟s leading zoo for „Wild Animal

Experiences‟. You can Feed a Tiger or Lion by hand, Meet the Meerkats, Feed a Lemur, Shadow a

Keeper or Big Cat Keeper and much more. The experiences make great gifts that create memories

to last a lifetime. The Park is a fantastic day out with animals, events and attractions to suit all ages.

The Park has 3 apartments for guests to „Snooze at the Zoo‟, where you can wake up to the sound

of the lions and have breakfast with the tigers. The Park caters for corporate events for 4 to 4000

people, from meetings and conferences, team builds, fun days and parties. The Park is licensed for

weddings with two great wedding venues - Safari Suite and event marquee.

Linked to the wildlife park, The Big Cat Sanctuary in Kent is home to the charity Wildlife Heritage

Foundation and one of the most important collections of Big Cats in the world. The Sanctuary has

an excellent track record for breeding highly endangered felines including Amur leopards,

Sumatran Tigers and Amur Tigers. The charity supports Global conservation efforts to protect Big

Cats and their habitats. The Sanctuary is not open to the public but is available for private

functions, hosting client events, product launches and experiences. With four wooden lodges

available for overnight stays it‟s an excellent venue for executive meetings, entertaining important

clients in private V.I.P surroundings or for special celebrations.

Steve Sampson

Paradise Wildlife Park

EBITDA

(£000)

Annual

Growth

Brighthouse Group PLC 145,937 11%

VPS Holdings Limited 28,851 51%

Flynn Pharma (Holdings) Limited 11,560 412%

Education Personnel Holdco Limited 15,920 137%

Noble Foods Group Limited 37,405 22%

Five to note…

… for outstanding turnover growth

Turnover

(£000)

Annual

Growth

Lamex Food Group Limited 676,396 26%

Education Personnel Holdco Limited 105,400 106%

Matthew Homes Limited 120,552 63%

McNicholas Construction Limited 149,381 41%

VPS Holdings Limited 201,880 21%

… for EBITDA growth

Letchworth became the

world's first garden city

in 1903, inspiring the

development of other

new towns including

Welwyn Garden City

and even the capital of

Australia, Canberra.

Letchworth can also

claim the world's first

roundabout, built in

1909.

Hertfordshire has

provided the home and

inspiration for a number

of famous writers. Jane

Austen's Pride and

Prejudice was set in a

fictionalised

Hertfordshire. The

polymath Francis Bacon

also called Hertfordshire

home and was buried

there at St Michael's

church having died from

pneumonia, whilst

investigating the effect

of cold on meat.

England's oldest

surviving pub is in

Hertfordshire. Ye Olde

Fighting Cocks in St

Albans dates from the

11th century although

some of the foundation

stones are even older,

allegedly going back to

the 8th century.

Elstree Studios has

produced some of the

world's most famous

films and TV shows

including the first and

second Star Wars films

Episodes IV and V,

Indiana Jones, and

Superman, and British

television shows

Dancing on Ice, Who

Wants to Be a

Millionaire and Big

Brother .

Did you know…

Oldest company:

McMullen & Sons,

Limited

March 1897

Largest employer:

Bourne Leisure

Holdings Limited

12,197

Highest turnover:

Hardwicke

Investments Limited

(T/A Wilmott Dixon)

£1.03bn

Town with

most businesses:

St Albans 29

Highest

EBITDA :

Bourne Leisure at

£190m

… facts about Hertfordshire

… for employment growth

No of

employees New jobs

Churchill Contract Services Group Limited 7,639 1,656

AVC Global Services Group PLC 1,601 929

The Abbeyfield Society 2,539 782

Bourne Leisure Holdings Limited 12,197 473

Brighthouse Group PLC 2,714 429


Dan Dark

Senior Vice President and Managing Director

Warner Bros. Studios Leavesden

Hertfordshire Limited 2013 speaker

Appointed in the role of Senior Vice President

and Managing Director of Warner Bros. Studios

Leavesden in January 2011, Dan is responsible

for overseeing the operations of Warner Bros.

Studios Leavesden.

In March 2012 Warner Bros. Studio Tour

London, The Making of Harry Potter opened to

the public. Subsuequently in June 2012 Dan

opened Warner Bros. Studios Leavesden

following a £100 million redevelopment on the

site.

Son of Film Producer John Dark, from an early

age Dan could be found on the set of his father‟s

films. His professional career started on the

Peter Hyams film Outland. He quickly

progressed to Assistant Director working on

numerous large film and TV productions.

Dan subsequently spent 10 years working in special

effects and was part of the team who won an Oscar for

special effects on James Cameron‟s Aliens.

In 1992 Dan took on a project in Spain to develop a 30

acre site into a studio for the BBC television series

Eldorado. After the series finished he operated the site

as a tourist attraction and production centre.

In 1994 he was approached by Eon Productions to

develop Leavesden Aerodrome into a studio for the

production of Goldeneye. The site continued to be used

as a Studio including home to all of the Harry Potter

films, in 2010 it was purchased by WB and redeveloped

into the UK‟s newest film Studio.

Dan has forged close relations in the community, and is

closely involved with many key local charities and

initiatives.


Jeremy Read

Assurance

T +44 (0)7966 583814

E [email protected]

Steve White

Advisory

M +44 (0)7710 748532

E [email protected]

Hertfordshire Limited contacts About Grant Thornton

Grant Thornton UK LLP is a leading financial and

business adviser. In the UK, we operate from 27

offices, are led by more than 200 partners and

employ nearly 4,500 of the profession's brightest

minds who provide personalised assurance, tax and

specialist advisory services to individuals, privately-

held businesses and public interest entities.

We have been offering practical and strategic

business advice for many years and work closely

with management to understand the issues they

face. We provide an experienced and independent

view – together with innovative solutions – to help

our clients achieve their goals. Our ability to offer

a complete range of tailored solutions to our

clients has helped many execute on their growth

strategies.

Copies of this report are available from our office:

Grant Thornton UK LLP

Grant Thornton House

202 Silbury Boulevard

Milton Keynes

MK9 1LW

T +44 (0)1908 660666

Further information can be found at

www.grant-thornton.co.uk

Jacqui Gudgion

Business development and

communications

M +44 (0)7968 098293

E [email protected]

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How Grant Thornton helps companies grow

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reason and instinct to decision making. At Grant

Thornton UK LLP, this is how we advise our clients

every day. We combine award-winning technical

expertise with the intuition, insight and confidence

gained from our extensive sector experience and a

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Through empowered client service teams,

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in a way that is as fast and agile as our clients. The

real benefit for dynamic organisations is more

meaningful and forward-looking advice that can help

to unlock their potential for growth.

These companies are very much focused on growth,

despite the low-growth environment that exists, and

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