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?

http://www.growcornwall.co.uk/coaching-for-high-growth.html

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