Post on 22-Jan-2015
description
www.winterrule.co.uk1
Finance in Cornwall 2011- Cornwall is open for businessRichard Wadman, Corporate Finance Director, Winter Rule
Administration
&
“Literature was formerly an art and finance a trade; today it is the reverse”
Joseph Roux (1725-1793)
Administration
&
www.witerrule.co.uk
www.witerrule.co.uk
www.winterrule.co.uk3
Presenters and participants
Structure of event
• Background– BIS (National), Convergence (Cornwall)– Business Link and SWRDA
• Finance, Business Support and Tax– The funds from grant through to VC– Overview only– Sufficient detail for you to ask one to one
questions after / contact details on slides
• Questions/ Networking• Finish 12 noon
www.winterrule.co.uk4
Government support to improve SMEs’ access to finance
Finance in Cornwall 19 May 2011
Seb Aslan – SME Finance Team
Government support to improve SMEs’ access to finance
Finance in Cornwall 19 May 2011
Seb Aslan – SME Finance Team
Business is the driver of economic growth and innovation
• One business gets started every minute in England Wales
• 4.8 million SMEs in the UK, 99.9% of businesses
This Government has committed to two central things: to reduce the budget deficit and support private sector growth.
This Department is the ‘Department of Growth’.
That means stripping away the burdens and constraints on business and giving them a long term framework so that people say ‘Britain is open for business’
(Mark Prisk MP, Minister for Business and Enterprise)
The UK is among the top countries in the world to start and grow a business
1st in Europe for ease of starting a business
Lowest barriers to entrepreneurship of all OECD countries
3rd in the world for supporting business financing needs
Changes to Business Support and Access to Finance
Business Support
• Revamped Website – including Start Up Hub
• 40,000 Business Mentors
• Business Coaching for Growth
• Business Link advisory service closed from 25 November 2011
Access to Finance
• Evidence suggests that in the large majority of cases SMEs getting the bank finance they need
• However – mismatch between what the data is telling us and what we are hearing from the Business Representative bodies
• There are also areas of Market Failure – equity gap
Enterprise Finance Guarantee (EFG)
• Will now continue until 2014/15
• Will enable up to £2bn of lending
• New Export EFG – now live
Bank Lending
• Government has welcomed outcome of Merlin dialog
• Banks will make available £190bn of new credit in 2011
• £76bn of this new capacity will be to SMEs increase of 15%
• Government working with the BBA and Business Finance Taskforce – data on availability/price of finance – stronger lending code/lending principles – internal appeals
Equity Finance
• Continuing programme of Enterprise Capital Funds – commitment of £200m over next four years
• Government welcomed bank’s commitment to the creation of £2.5bn Business Growth Fund – will target SMEs and provide £2m - £10m to those with strong growth potential
Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs)• Chancellor announced reforms to EIS and VCTs• From April the rate of EIS 30%• Next year the amount which can be invested will
double• Size of company which can qualify for investment
increasing• Amount which can be invested in a single
company increasing to £10m
Carleen Kelemen
Director
Convergence Partnership Office
for Cornwall and the Isles of Scilly
19 May 2011
Business Link – current position and future
- Alison Miles
Or ‘Rumours of our demise have been greatly exaggerated’
Current landscape:• The Business Link service currently provides
information, advice and guidance to 45% of the business
population in Devon, Cornwall & Somerset
• 50,000 businesses provided with information in the last
12 months
• Helped create over 1,700 new businesses in the last 2
years
• Over 5,000 quality referrals for further support made to
private public sector partners
Changes to the Business Link serviceBusiness Link service will continue to deliver quality information,
advice and guidance up until 25th November.
In addition Peninsula Enterprise will provide the following contracted
service:
• Rural support
• European funded growth and environmental support
• High Growth skills service
• International Trade
• Specialist Social Enterprise support in Torbay and Plymouth
Future Business Support Landscape• National website & national call centre
• National Business Coaching for Growth programme
• National mentoring network – 40,000 voluntary mentors
• Entrepreneurial support for women, Black, Asian &
Minority Ethnic groups & service leavers
• Development of some Solutions for Business providers
• for further information
SWRDA closure and impact on funding
Closure 31 March 2012
Most funds of relevance to SMEs in Cornwall administered by SWRDA will carry on:
• Take note of contact details on presenters slides
• Speak to us
• Website www.businesslink.gov.uk or www.bis.gov.uk
In the South West peninsula the Business Link service is delivered by Peninsula Enterprise
Contact us on : 0845 602 3657
Alison Miles: ext 8903 Max Strelling: ext 8347
Wayne Hackman: ext 8906
www.businesslink.gov.uk
Grant for Business Investment
Paul Wilson – Business Investment Adviser
South West RDA
What is Grant for Business Investment?
ERDF funded grant scheme to support innovative, knowledge based projects demonstrating productivity improvement with skilled employment.
What type of project can be supported?
• Investment in productivity improving plant and equipment in an existing business.
• Investment in equipment as part of the commercial launch of a business.
• Investment in additional employment.
What’s not suitable for GBI?
• Very small projects (£10k minimum grant).
• Local services (including franchises).
• Tourism normally ruled out through displacement.
• Some sector restrictions.
• Subject to State Aid ceilings for maximum (50% small business, 40% medium business, 30% large business).
• Job numbers also determine the quantum. Average is equating to c£10,000 per job.
• Need is the best place to start. Ensure rest of finance package is well developed.
How much can I get?
• Demonstrated need (No prior commitment).
• Viability.
• Eligible investment – normally capital projects but making increased use of salary support grants.
• Productivity.
• Skill levels.
• Jobs.
Eligibility criteria
Quality features
• ERDF Cross Cutting Themes (Low Carbon and Equality & Diversity)
• High skill levels / salary levels (£20k minimum)
• Innovation and R&D
• Training
• Exports
Application process
• Ensure broadly eligible and supportable before applying.
• Full application requires business plan, financials (historic and projections) and application form.
Payments and conditions
• Paid in arrears by instalments linked to investment, jobs and productivity
• Conditions to make the investment, deliver the jobs and achieve productivity growth
• Security – risk dependant. (Debenture or Parental Guarantee)
Contacts information/support
Paul Wilson
paul.wilson@southwestrda.org.uk
01752 234855
Or
Richard Hoskin
richard.hoskin@southwestrda.org.uk
01752 234824
www.southwestrda.org.uk/gbi
The Low Carbon Grant Fund (LCGF)
Stuart Farmer Cornwall Development Company
www.cornwall.gov.uk
ERDF Low Carbon Grant Fund (LCGF) A £5M ERDF funded scheme
Launched by the Convergence Programme for Cornwall & the Isles of Scilly on the 26th April 2011
Providing grants of between £70K to £1M (subject to match)
Support eligible businesses to reduce carbon emissions by
Improving Energy / Resource Efficiency
Delivering Green House Gas reductions through innovation
Enable generation of Low Carbon Energy
www.cornwall.gov.uk
Who can apply for LCGF?
All ERDF eligible businesses in Cornwall and IOSSME’s maybe eligible up to 50% fundingNon SME’s eligible up to 30%
Applicants in a position to start their project within 6 months of the grant being awarded
New businesses are not ruled out, however additional financial due diligence will be sought
www.cornwall.gov.uk
What must applicants consider Two stage process,
Stage 1, Open call for Expressions of Interest (Closes 01st June 2011)
Stage 2, Detailed business plan
LCGF will invest in projects that have GHG (Greenhouse Gas) Reduction as their primary outcome where They are not supported through existing schemes (FIT / RHI
etc…..)
Mandated through the existing regulatory framework
Would otherwise be undeliverable due to issues of commercial viability
Links to research and higher education institutes (such as ESI)
www.cornwall.gov.uk
What will EOI’s be assessed on?
Project Description (innovation will be taken into account when scoring
Carbon Saving Calculator, (GHG Saved Per £ Invested)
Economic benefits to the business (productivity / jobs)
Wider economic benefits to Cornwall & IOS (Supply-chain development/ R&D Links/ Best practice dissemination)
Call For EOI Closes 01st June 2011
Contracts Expected Autumn 2011
Weighting
20%
60%
10%
10%
www.cornwall.gov.uk
Contact: Janet Bowen at jbowen@cornwall.gov.uk
Cornwall CouncilCounty HallTruro TR1 3AY
Tel: 0300 1234 100www.cornwall.gov.uk
Funding for Business Improvement Initiatives
(vouchers) Josie Gough – ERDF Secretariat
Josie.gough@southwestrda.org.uk
• What? Vouchers to cover up to 50% of the costs for businesses on projects to realise their growth ambitions.
• Why? Private sector feedback on how to invest Convergence funding in the 2nd half of the Programme, maximising the impact of funding.
• Who? To be administered by objective organisation with a private sector led decision making panel. All ERDF eligible businesses looking to significantly grow will be eligible to apply.
• How? Details of how to apply will be available once the contract has been award to the administration body. Commitment to proportionality!
• When? Hoping to get a contract finalised this summer, subject to a brief set up period, applications should be open towards the end of 2011.
RURAL DEVELOPMENT PROGRAMME FOR ENGLAND (2007-2013)
Catherine Martin
44
RDPE Funding in Cornwall Axis 1: Improving the competitiveness of the
agricultural and forestry sector. RDPE funds available under Axis 1for;
– Adding value to agricultural products– Training and skills– On-farm advice and small capital grants
Axis 3: Improving rural quality of life and diversification of the rural economy.
RDPE funds available under Axis 3 for;– Farm Diversification– Rural Micro-enterprise– Community and Social Enterprise
45
RDPE moving forwards
Transfer to Defra from 1st July 2011 Programme currently open for
business More information will become
available in the coming weeks Current team transferring across to
Defra.
46
Springboard Fund
Trellisick Gardens19th May 2011
Bob Dow
Project Director
Aims of the Springboard Fund
• Financial help to projects that will make an economic impact in Cornwall or Devon
• Grants or loans to worthy projects that would otherwise be unlikely to proceed
Springboard Fund
• Open to eligible projects both from businesses and from not for profit organisations
• Projects from any sector• Funding can be for early stage activity to start a
new project or to make a step change in growth
What the Springboard Fund does
• Awards of £30K to £150K • Application process is staged:-
Eligibility Initial review Full evaluation
• Final stage being a presentation to the Panel
Eligibility
• Significant impact on the economy of Cornwall or Devon through new job creation
• Other potential funding sources must have been exhausted (minimum of 25% match funding
• The project must demonstrate viability
Projects with potential Impact extending beyond applicant organisationCreation of new high calibre jobsCreation of activity/environment that will facilitate
other economic benefits in the futurePartial funding already secured/identifiedAdditional benefits such as positive
environmental impact or up-skilling of jobs
Projects not likely to succeedX Poor business/project plan lacking understandingX Impact only on profitability of applicant organisationX Few new jobs created/low skilledX Little future benefitX No other funding source explored or identifiedX Project could proceed without Springboard fundingX Supporting a non viable business
How to apply• All applications must be submitted via the
application form on the website• Website has eligibility criteria, application form
and further details
www.springboardfund.co.uk
The South West Loans Fund
Launched 2009
Part of the South West ERDF 2007-2013 programmes
Fund Managers:
The South West Loans Fund
Fund holder and contractor:South West Investment Group (Capital) Ltd
SWIG Services Ltd
Small Loans for BusinessLoans up to £50,000
FC Fund Managers
Finance for BusinessLoans up to £250,000
Fund commissioned by:South West RDA
The South West Loans Fund
The Fund provides loans on commercial terms
To:
•SMEs (including start-ups)•Based in South West Region (or relocating to)•Growth or growth potential•Financially viable proposition•Planned requirement for investment•Identified finance package•Eligible for ERDF
• Cannot raise sufficient finance from banks and other sources
The South West Loans Fund
ERDF - What the Fund can support
Capital expenditure
Working capital
Net economic benefit - ‘added value’, e.g:
Business A:
Start-up manufacturing innovative, interactive youth sports and exercise equipment. Contract to supply, but investment needed for full production set up. £50,000 SL4B growth loan agreed. The business now has a small production unit and is creating skilled jobs for local people.
Business B
Existing company designs, supplies and installs a range of energy-saving products including lighting systems for high bay warehouses and soft start motor controllers. £100K F4B loan approved to support its expansion in the UK and key export markets.
The South West Loans Fund
ERDF - what the Fund cannot support
Displacement (e.g. Pure retail or local domestic services)
Other exclusions•Primary agriculture •Financial services•Speculative property development•Activities that the State ‘should provide’ e.g. education, health
Re-financing
Not lender of last resort to business ‘in difficulties’
The South West Loans Fund
Process
• Contact the appropriate Fund Manager
• If we think you are eligible, complete a 2-page form
• This helps to assess whether or not to proceed to full application
• If all OK – proceed to full application and business plan
• Turn around time 2-6 weeks
The South West Loans Fund
At 19 May 2011:
No. SMEs Competitiveness Convergence Total
SL4B 20 22 42
F4B 17 10 27
Total 37 32 69
£’s Competitiveness Convergence Total
SL4B 500,502 555,815 1,056,317
F4B 1,680,000 1,057,000 2,737,000
Total 2,180,502 1,612,815 3,793,317
The South West Loans Fund
Contact:
Small Loans for Business (up to £50K)
SWIG Services LtdLowena HouseGlenthorne CourtTruro Business ParkThreemilestoneTRURO TR4 9NY
01872 223883
info@southwestinvestmentgroup.co.ukwww.southwestinvestmentgroup.co.uk
Finance for Business (up to £250K)
FC Fund Managers14 High CrossTRURO TR1 2AJ
01872 272288
enquiries@fcfundmanagers.comwww.fcfundmanagers.com
SWAIN
Finance in Cornwall19th May 2011
Bruce Colley – Investment Director
What do we do?
Process?
Investment Attractiveness
Business plan demonstrating significant sustainable growth
Unique product – the right price – barriers to entry – protected IP …
A management team -> ability to create profits (capital growth) An exit strategyA realistic valuationCommitment
Facts & stats
25%
23%
14%
11%
9%
8%
8%
Deal analysed by business sector (2004-2009)
IT
Services
Medical Devices
Media/Communications
Health Care
Manufacturing
Renewable/Clean Technology
Other Technology
Facts & stats
25%
23%14%
11%
9%
8%8%
Updated – Last 3 years
Cloud Nine Offering
• Low-cost modular design – fitted interiors
• Microgeneration ready • Sustainable materials• Lego configurations• Short-term or long term site use• Affordable eco-housing• Indefinite life buildings• Can use “difficult” sites
Kernow Eco Housing Ltd
The CompanyCornish Sea Salt is a food manufacturing business
that harvests sea water to produce a pure and
natural culinary sea salt in a purpose built facility.
Situated just 8 metres from Grade A accredited
waters – the highest to denote water purity – at
Porthkerris in Cornwall.
The company was incorporated in July 2004 and
commenced trading in February 2008, following
a three year project to identify and secure a site,
source and commission the technology,
undertake market research and raise investment
finance.
With a production capacity of 500 tonnes per annum,
Cornish Sea Salt has developed a process that
blends age-old chemistry with innovative and
energy-efficient technology that is
environmentally benign.
The company owns the harvesting building and has a
X year lease for the Porthkerris site; it also has a
X year lease for the Pol Gwarra foreshore and
leases a 250m² warehouse unit at St Keverne
(less than 1 mile from the harvesting plant).
Key DatesCornish Sea Salt established – July 2004Porthkerris site secured – Dec 2006Investment agreement – June 2007Harvesting building completed – Sept 2007Salt Plant commissioned – Dec 2007Trading commenced – Feb 2008
Key AssetsHarvesting building - £XXX,XXXSalt making equipment - £XXX,000Porthkerris lease – X yearsForeshore lease – X yearsWarehouse lease – X yearsBrand trade marks & domains
Cornish Sea Salt Co bespoke harvesting plant Pol Gwarra, Lizard Peninsula
10/04/2023 72
Adding value
Raw Fleece
Scour and Card
Knitting and weaving
yarns
Fabric Throws
Blankets Scarves
Garments and
furnishings
Add to blends£6-12
per Kg.
£15 trade £30 retail
per Kg.
£25-40 trade £60-120
retail per Kg.
£35 trade £90 retail per metre (o.5 Kg.)
£100-£500 per item (o.5 Kg.)
Buy in at 50p-£10 per Kg.
Cost £6-7 per Kg.
Cost £14-20 per Kg.
Cost £20-40 per Kg.
Cost £50-100 per item
What we do
Data
Data analysis
InformationAnonymised data and information
Manager / policy makerMobile phoneUsers Screens
Feedback devices
ElectricityGasWaterTemperatureHumidityHeating
Deal profile
87 deals (14 deals per year);63 businesses (64% first round); £6.75m from SWAIN investors;£44m total finance;Ave. Stake 18.5%Typical post money valuation <£1mFailure rate approx 20%
Introduction to Venture Capital
by Al istair BrewMay 2011
INTRODUCTION TO VENTURE CAPITAL
Introduction to Octopus Ventures
What we do and look for
Current Climate for fund raising
Tips for fund raising
Conclusions
OCTOPUS VENTURES
Division of Octopus Investments
Fast growing fund management company
£2bn FUM
£300m+ in unquoted VCTs
One of the most active SME investors
24 deals in 2010 & 3 deals in 2011 to date
£500k-5m investment size
Early stage, growth capital and MBO’s
Equity, mezzanine and debt (via Octopus Specialist Finance)
Portfolio of over 60 companies
WHAT WE DO
We partner exceptional entrepreneurs who wish to build big businesses that create, transform or dominate an industry sector.
We partner these businesses through their growth prior to selling the business and our stake to trade or financial
purchasers.
Our objective is to make returns of multiples of our original investment from each business in which we invest.
WHAT WE DO
We partner exceptional entrepreneurs who wish to build big businesses that create, transform or dominate an industry sector.
We partner these businesses through their growth prior to selling the business and our stake to trade or financial
purchasers.
Our objective is to make returns of multiples of our original investment from each business in which we invest.
EQUITY OWNERSHIP
TYPES OF DEAL
Development Capital
Acquisition Finance - Good time for bolt-on acquisitions Competition struggling Prices can be very low Not all cash up front
Change of Ownership situations - MBOs
WHAT WE LOOK FOR IN A BUSINESS
• Strong growth potential deriving from inherent competitive advantage
• Critical
•Management team• Product/Service and proven business model•Growth Market
• Other
• Assets including intangible assets such as a brand•Deal characteristics – pricing, ‘skin in the game’• Exit prospects
VENTURE CAPITAL RETURNS
• Target Returns
• 3x + money multiple• 30% + IRR over 3 - 4 years
• Where returns come from
• Earnings growth•Multiple Arbitrage• [Gearing]
VENTURE CAPITAL RETURNS
• Target Returns
• 3x + money multiple• 30% + IRR over 3 - 4 years
• Where returns come from
• Earnings growth•Multiple Arbitrage• [Gearing]
“GROWING THE CAKE”
FUND RAISING - A LOOK BACK....
2007 The end of the road:
Easy debt – too much money
Box ticking due diligence
Lower quality thresholds
High prices
Unrealistic projections
THE TOP OF THE MARKET Anybody could raise money
IMPACT OF DOWNTURN AND CREDIT CRUNCH
2008/9
No money available from banks or investors
Companies contracting
Conditions unpredictable
Weaker companies had no chance
Some government initiatives (Capital for Enterprise)
Very few deals
But interest rates low
THE NEW WORLD
Late 2010 onwards
Appetite to do deals now returning but……
Limited bank funding available (sub 2x EBITDA)
VC price expectations lower
High levels of Due Diligence
High quality threshold
New environment still evolving but VC’s looking for high quality deals
at low prices and limited bank debt
FUND RAISING - GET IN SHAPE Clear vision together with ample detail
Know your business model/ adapt it
Good MIS: data is critical
Full management team (New Hires?)
Is Finance Department adequate
Sales management and pipeline analysis
Investment readiness (but should be doing this anyway)
FUND RAISING – THE DEAL
• What’s the funding requirement/risk profile
• Consider which segment of the VC market to approach
• Be clear about what the priorities are in the deal
• Terms important but also delivery and relationship
• Look at post-deal value add
• Time and energy commitment in the process
• Flexibility
TAKE ADVICE
Objective external advice can be invaluable
Financial/operational/integration/strategic
Listen but you do not need to accept
Do your due diligence on advisor
CONCLUSIONS
It doesn’t suit everyone and it’s expensive but….
Venture Capital can transform your business
Fund raising is difficult
Do the groundwork ahead of starting process
Seek outside advice
Show vision and know the detail
91
Winter Rule 19 MayUEC Enterprises Ltd
Dr Mark Scibor-RylskiRob Misselbrook CFA
92
What we do
93
How we select – Proactive approach to
-Value Proposition – why will customers buy your product or service
-Market Potential – local, UK, International
-Barriers – IP, know-how, relationships
-Management – Experience, knowledge
-Financials – What’s required, structure
[ESI Impact – Environmental Benefit, Job Creation]
www.winterrule.co.uk94
FITs, RHI and other finance for SME?Aimee Phillips, Corporate Finance Assistant, Winter Rule LLP
Overview
• SW Cleantech Co-investment Fund• FITs• RHI• Energy Efficiency Financing Scheme• PESCA• EFF• UCP• R&D• UKTI• Regional Growth Fund
– Overview and website address or contact– AAG: At a gallop!
www.winterrule.co.uk95
South West Cleantech Co-Investment Fund
• Loan Fund to match with equity invested in Cleantech company– Minimum £50k; maximum £100k
• Requirements of Company– SW– Cleantech
• Requirements of Investment– Keystone Investor– Fresh issue of ordinary shares
• Initial contact and more details: SWAIN• www.swain.org.uk/CleanTech.aspx
www.winterrule.co.uk96
FITs
• Feed-In Tariffs• Paid by energy company to the generator of
renewable electricity• Range of tariffs • FITS review published March 2011• FITs and Grants?• FITs and EIS• www.decc.gov.uk
www.winterrule.co.uk97
RHI
• Renewable Heat Incentive• The heat generation equivalent to FITs• Details announced in March 2011• Two phase introduction
– 1st aimed at non-domestic/ ‘big heat users’: Summer 2011?– 2nd phase for domestic / align with Green Deal: October 2012?
• Range of tariffs • www.decc.gov.uk
www.winterrule.co.uk98
Energy Efficiency Financing Scheme
• Successor to interest free loans from Carbon Trust
• “easy, affordable and flexible ... Scheme brought to you by Carbon Trust Implementation Services (CTIS) and Siemens Financial Services”.
• ‘Leases, loans and other financing options”• Launched April 2011
– Energy Efficient Equipment purchases– £1,000 +– Financing options designed to match with energy savings
• www.energyefficiencyfinancing.co.uk
www.winterrule.co.uk99
PESCA
• Links to fishing industry – but not retail or fishing vessels
• PESCA business development fund• Interest free loans of up to £20k; one off
admin fee of 5%• 60% of allowable expenditure
– Capital – Marketing costs
• Repayable over 5 years • www.southwestinvestmentgroup.co.uk• John Peters – john@southwestinvestmentgroup.co.uk
www.winterrule.co.uk100
EFF
• European Fisheries Fund– fishing industry to become more sustainable and to remain
profitable
• £4.8m available in Cornwall• Axis 2: processing facilities and marketing
fully spent in Cornwall• May 2011 announcement on movement of
funds b/w Axis?• www.marinemanagement.org.uk• Justin Williams
justin.williams@marinemanagement.org.uk
www.winterrule.co.uk101
UCP
• Unlocking Cornish Potential“UCP matches talented graduates with progressive Cornish companies to fuel innovation, growth, creativity, competitiveness and economic prosperity in Cornwall.”
• Projects between 6 and 12 months• Financial assistance for Training and
Mentoring• Project Investment Funds available• Andy Peters
andy.peters@cornwall.ac.uk
www.winterrule.co.uk102
Research & Development Grant
• Open 4th April 2011• SMEs – in the South West• £25,000 - £250,000• 3 types of grant
– Markets– Concept– Prototype
• Judging 5 times per year (7th July)• www.innovateuk.org
www.winterrule.co.uk103
UKTI – ‘taking Cornwall to the world’
• £2million Sponsored by UKTI• Business network group • Cornwall businesses exporting• Support for:
– Overseas Market Introduction Service– Export Marketing Research Scheme– Passport to Export– Gateway to Global Growth– Market Visit Support– Tradeshow Access Programme– Training Workshops– Export Communication Review
• www.exportcornwall.co.uk• Michael Franks michael.franks@uktisouthwest.org.uk
www.winterrule.co.uk104
Regional Growth Fund
• £1.4bn: England 2011 to 2014• Competitive bidding process
– Lever private sector growth and job creation– Private sector and Public private partnerships can bid– Targeted at regions ‘transitioning’ from public to private sector– £1m minimum
• Next deadline = 1 July 2011• www.bis.gov.uk/RGF• RGF Roadshow – Plymouth 10 June 2011
www.winterrule.co.uk105
WHAT IS COACHING?
“Coaching is unlocking a person’s potential to maximise their own performance.
It is helping them to learn rather than teaching them.”
coaching and mentoring is about using our experience and training to help you to find the answers yourself. Through good questioning, followed by inspired analysis, reflection and detailed action planning. The success of coaching and mentoring will depend upon you: your ability to change your behaviour, or see things in a different way: to act on the action plans.
Coaching is a journey: not a quick fix. There are no right or wrong answers except in legal issues. It takes time, it will be challenging, hard work and it will be disruptive. Both the business and the coach must be agnostic as to what the solutions are.
WHAT IS COACHING?
Coaching for High Growth
• Help with creative thinking• Looking for a new perspective on your business• Refining your business model • Identifying new channels and markets • Developing new products and services • Sourcing new technologies • Raising finance • Developing your team • Extending your geographical reach • Achieving your goals
Starting a high growth business• Developing and delivering your business
plan • Developing your products and services • Identifying channels and markets • Securing finance • Building your team • Sourcing new technologies • Extending your geographical reach • Achieving your goals
Leo started his career with Midland Bank/HSBC in the early 80’s, gaining vast experience in the finance sector.
From 1997 he was Investment Manager for the HSBC UK Enterprise Fund for Greater London, part of a
network of regional funds looking to provide SME's with initial investment of up to £250k.
He then worked as Investment Director for Ferranti Capital Ltd. From May 2006 Leo worked as a business advisor for range of companies including travel and
technology firms 2008 became the Manager of Thames Valley Investment
Network (TVIN), the business angel network based in the Thames Valley.
Leo helps businesses understand their funding needs and how these may be met. He can also advise on a
wide range of commercial issues including compliance, regulatory requirements
Leo Dunne
• Started career as an IT Engineer at NCR. • Sales, marketing and management roles
with Alcan and Colgate Palmolive Ltd, • Guinness G.B. as Regional Managing
Director • Diageo PLC in the UK and Africa, latterly
as Sales and Marketing Director in Lagos, Nigeria.
• Extensive experience within food and drink, retail and FMCG markets.
• specialises in sales, marketing and business development including
performance management,
Mike Jobson
Earth scientist and engineer Involved in the natural resources industries for most
of his working life, 10 year career within the water and petroleum
industries Joined the Cornish based marine drilling company
Seacore. As commercial director he acquired considerable experience in developing and sustaining
the growth of an independent business over many years and was subsequently elected managing director, a position he held for 5 years until the acquisition of the business by a European multi-
national.Richard has extensive management experience
covering business development strategy and financial management, raising corporate finance, commercial
and contract negotiations on both a domestic and international basis.
Richard Reed
Coaching A High Growth Business
Thank youwww.growcornwall.co.uk
Clare Whitney
A very warm welcome to…
The spirit ofCollaboration
Where might a collaboration take your business?
Our Vision:
To improve Cornwall and the Isles of Scilly’s competitive advantage by
encouraging and enabling a collaborative culture of thinking
throughout Cornish-based businesses
Educate
Facilitate
Manage
Assist
What is Collaboration?
Collaboration is..“A co-operative arrangement in
which two or more parties (which may or may not have any
previous relationship) work jointly towards a common goal”
COLLABORATEreasons to
Increase sales outputs
Develop new products
Access new markets
Access/improve skills
Access new technologies
Reduce costs
Share risk & reward
Improve productivity
Joint tendering
Leverage resources
1. Co-development (Research & Development)
2. Manufacturing & Production (Supply side)
3. Marketing & Distribution
(Demand side)
There are 3 broad types of Collaboration:
“As a result of Partner to Succeed’s involvement, we are now well on the way towards launching a co-branded
legionella warning system with Silvertree Engineering.”
Robin ProctorSilvertree Engineering Ltd
“There is no doubt that this could have a massive impact on both our profit margins, and it’s very exciting
for all those involved”.
Mike QuestManaging Director, QES Ltd
“I knew the product could do better, and with Partner to Succeed’s help I
proved that to a UK based partner. We are now collaborating to manufacture and distribute Muksak from the UK. If
there are any doubts in your mind about what to expect, Partner to
Succeed can help you answer them”.
Alison VaughanOwner, Muksak
Why doesn’t everyone collaborate?
Trust
Communication
Willingness to commit
It’s not the ‘norm’
Consider it?
Stream 1
Stream 2
Stream 3
Active Collaborations
Collaborate with Confidence
Collaboration Catalyst
Active Collaborations
• Project Management
• Up to 8 Days of Support
• Access to secure online software
• Draft documentation
• Access to Collaboration Credit
Collaborate with Confidence
Discover how you can sell more by working together…
Sales GrowthCollaboration
Clubs
"This has been the start of a road I've been trying to travel along for the past 2 years through a different approach. It has given me a real understanding of
different sales approaches”
Phil AllattIT West Ltd
Discover how you can save money and reduce your carbon output by working together…
Resource EfficiencyCollaboration Clubs
“I didn’t sleep last night after the RECC yesterday. It was really more beneficial than expected and I have a plethora of
ideas on my mind . . . . “
Mark WrightPiran Technologies Ltd
Managing Capacity
Coming soon . . . . .
Improving Competitivene
ss
Collaboration Catalyst
Food for thought?Any collaboration ideas?
For further information or advice visit
www.partnertosucceed.co.ukor call 01872 613000
Diana LobbLeadership & Management Adviser (South West)
Covering Cornwall
Leadership and Management Advisory Service – 2011 to 2012
Context
Think of a Successful Leader. This can be
someone from anywhere in the world at any point in
time
Leadership and Management Advisory Service – 2011 to 2012
Now think of why you thought of them, why do
you think this person was such a successful leader?
Alexander the Great
Catherine the Great
Winston Churchill
Mahatma Gandhi
Leadership and Management Advisory Service – 2011 to 2012
Do You have a clear vision?
Do You have clear goals for your business?
Do You know what you want to achieve and how to get there?
Do You have the skills & knowledge to take your business where you know it can go?
Can You inspire and motivate other people to share your vision and help you achieve your business goals?
Questions
Leadership and Management Advisory Service – 2011 to 2012
If you hesitated before answering any of those questions.
If you thought ‘I do all of that and pretty well but I know I can be better’
If you thought ‘I am not great at some of that and my business will suffer as a consequence’
The Leadership & Management Advisory Service may be of benefit
Answers
Leadership and Management Advisory Service – 2011 to 2012
How Does is Work?
A programme running until March 2012 delivered by Skills South East Ltd in the South East and South West
The Leadership & Management Advisory Service can help identify and prioritise the right development for you to gain the skills and knowledge you need to help your business be more successful.
We may be able to offer up to £1000 of funding to help pay for that development
Leadership and Management Advisory Service – 2011 to 2012
Are you the owner, MD, CEO or senior leader of your business or Social Enterprise?
Employ 2 – 249 people (full time equivalent) including yourself
Display the potential for high or fast growth
You can access up to £1,000 of funding, 50% match funded, to help with the costs of your chosen development
Start and claim costs of development within 90 days of grant approval
Eligibility
Leadership and Management Advisory Service – 2011 to 2012
How do you apply?
• For more information please speak to me, Diana Lobb
07917 113489 diana.lobb@skillssoutheast.co.uk,
• pick up a flyer
• or visit www.skillssoutheast.co.uk 0845 026 4298
info@skillssoutheast.co.uk
www.winterrule.co.uk165
The Tax Dog wags it’s tail...
Scott Bentley, Small Business Partner, Winter Rule LLP
Don’t let tax tail wag the dog
But need to consider tax stimulus for companies to invest • Capital allowances• R&D• Substantial shareholdings exemptionsAnd to be invested in:• Enterprise Investment Scheme (EIS)• Entrepreneurs Relief (the 10% bit)
www.winterrule.co.uk166
Research and Development tax relief (for SMEs)
• For companies only• Enhanced tax relief for allowable R&D costs• Relief for SMEs:
– Up to 31 March 2011 175%– From 1 April 2011* 200%– From 1 April 2012* 225%
• If loss making, can receive cash for % of R&D allowable costs or increase loss carried forward– 14%– Was limited to PAYE/ NI paid * (* = s/t EU approval)
• Issue remains – what is R&D?
www.winterrule.co.uk167
Capital allowances
• Tax deduction for capital expenditure• Changes in March 2011 budget (effective 1
April 2012)– Writing down allowances will be reduced to 18% and 8%– Annual Investment Allowance reduced to £25,000 – For Enterprise Zones in assisted areas, where there is a strong
focus on high value manufacturing
• Enhanced capital allowances (ECA)– For equipment that meets published energy-saving criteria (
http://www.eca.gov.uk/etl)
• For capital expenditure or equivalent used for R&D
www.winterrule.co.uk168
Substantial Shareholdings Exemption
• Exemptions on gains made by companies on the sale of qualifying shares
• Investor and investee must be trading or part of a trading group
• Must own > 10% of ordinary share capital• Must hold investment for at least 12 months
www.winterrule.co.uk169
EIS – overview
• Enterprise Investment Scheme• Tax relief for qualifying individuals investing in
new ordinary shares in qualifying companies• Tax reliefs
– Income tax relief (30% of investment between £500 and £500,000)
– Capital Gains tax relief on any gain if shares held for three years– Deferral of other capital gains at point of investment
www.winterrule.co.uk170
EIS – the good news
• Certain limits on qualifying companies will be increased as follows with effect from shares issued after 5 April 2012:– Number of full-time employees – 250– Limit on gross assets increased to £15 million before the investment– Maximum annual amount that can be invested in the company
increased to £10 million– Maximum annual amount that can be invested by an individual in all EIS
companies is £1 million
www.winterrule.co.uk171
Entrepreneur’s Relief
• Only applies to individuals (some trustees)• Shares in a personal trading company• Owned for minimum12 months prior to sale• £10million lifetime limit for individuals from 6
April 2011• Personal trading company
– > 5% old share capital with > 5% voting rights– You must be an officer or employee of that company– Company must be trading
www.winterrule.co.uk172
www.winterrule.co.uk173
Finance in Cornwall 2011
Wrap up by John Mitchell, Chairman/Managing Partner, Winter Rule
www.winterrule.co.uk174
Thank you: Presenters, participants and Amy
The Future – thoughts and actions
• Immediate: Q&A• Convergence until 2013• The future of finance is equity• Cornwall is a great place to do
business, increasing national profile– Sharps– Celtic Sheepskin
• Service sector to match business requirements
www.winterrule.co.uk175
Final thought
www.winterrule.co.uk176