Business
Peter McGahan: With profits and how they don't work
10-03-2010
FOLLOWING on from last week's with profit bond comments I thought I would use this week's column to explain exactly how they work - without the salesman and insurance company's noise.
Let's look at why investors invest, how they understand risk, and how with profits are contrived to sell to that fear.
Investors invest to seek a decent return over and above inflation. In the 22 years from 1987 to 2009 cash only returned 28% more than inflation. (1)
As most investors are not fully explained risk and how it can impact them negatively or positively, they are reliant on the 'adviser' who is wheeled in front of them to explain that.
Unfortunately for the average investor there is very little investment expertise available and investment advice can be offered by most advisers with no specific investment qualifications. Most advisers pass minimum levels of qualifications but are allowed to advise freely on complex areas such as investments.
The result is that the advice is very much at a 'product' and 'commission' level. Banks, all of a sudden decided they were investment advisers and this 'product sale' exploded.
A third of all complaints to the ombudsman last year were against just three of the UK's banks. More than half of all complaints came from eight banks alone. Indeed banks and their subsidiaries command the first 14 places in terms of the amount of complaints.(2) Well done.
More than 63% of all complaints were against these 14 banks and 37% from the remaining 99,986 firms (of which quite a few banks were still in there) 79.14% of all complaints upheld on the ombudsman's website were against banks, building societies or their subsidiaries. Less than a quarter of 1% of the complaints were against Independent Financial Advisers.
The Lloyds group must be over the moon with grabbing three of the first eleven places for the total amount of complaints -but their adverts are catchy and nice.
And so commoditised speedy product sales have been exposed. With profits are indeed a symptom of this commoditised 'advice' process.
In order to 'sell' to a customer; this product is designed as a lower risk vehicle but it is not. Think of this in its simplest form of two comparative pots. A managed fund and a with profits fund.
A managed fund is designed to beat inflation but decrease risk by diversifying across different assets such as property, equities, fixed interests and cash. A with profits fund invests in exactly the same assets.
The difference between the two as far as an investor is concerned is that every day the value of your managed fund changes, whereas the with profit bond 'apparently' does not. The actual return you receive from a with profit bond is based on what an actuary tells you he is going to give you from the returns they are making.
Both the managed fund and with profits are invested in virtually the same manner. A with profits would like to be invested the same as a managed fund, but they are restricted because of the 'guarantees' or 'vague promises' they have to give to other policyholders, so often have to sell out of equities when they have already fallen, and buy them back after they have already risen. Disaster.
With a managed fund you always know what your plan is worth, but with a with profits plan, the actuary holds back your returns and gives them to you over the years.
The idea is that they are supposed to protect you from downsides but that was exposed as nonsense the first time they were put under any sustained pressure. Think about it once again from its simplest form: A with profit bond cannot pay you out any more than the fund it's invested in performs, so by definition it has to underperform.
The golden ticket they used to wave was the protected downside but when the market fell, with profit funds simply applied a market value reduction to reduce the value of your with profit bond back to what you would have received if you had a managed fund. So it's 'heads the insurance companies win, tails they win'.
I'll bet you have never seen them marketed or explained like that. But 8% commission every bond is hard to miss.
For a free initial check on your with profit plan call Peter on 0845 230 9876, e-mail info@wwfp.net
Source
(1) lipper
(2) financial ombudsman
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Companies ‘among the top 100 to work for’
03-03-2010
THE national ranking of two Westcountry businesses listed among the “Top 100 small UK companies to work for”, has been revealed.
Clinton Devon estates came 11th on the recent Sunday Times best small organisation to work for in the UK and top for its commitment to the environment. Some 87 per cent of the estate’s 61 staff who responded to the employee-led survey said that they loved say they working for the organisation.
They also lauded Clinton Devon Estates environmental agenda. Workers were asked for feedback upon a list of 70 questions covering topics including leadership, wellbeing, management, teamwork and their personal development in the firm.
Clinton’s farms manager George Perrott was featured in the national Best Companies supplement and said: “For me it’s like working for a large, well-oiled organisation but with all the benefits of working for a small, friendly family business.”
Redruth based independent radio group UKRD – parent of local radio station Pirate FM – learned on Sunday where it was ranked in the list. UKRD chief executive William Rogers said: “We came 27th in the list of 100 top companies which, for the first time we have been reviewed, is remarkable.”
The WMN revealed last month that both companies were the only two in the Westcountry to achieve three-star accreditation reserved for “extraordinary performance” in the Best Companies guide.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Civic pride at heart of city’s rebranding
03-03-2010
By William Telford and Catherine Barnes
THE company brought in to rebrand Plymouth has begun consultation with a dozen leading national business and media figures, to assess the city’s impact in the UK.
LloydNorthover is also to include local feedback from a study carried out by the shadow Plymouth City Development Company (PCDC) in 2008, as it develops a new commercial identity for the city.
The consultancy was appointed last month by the PCDC to design a “toolkit” of brand components to launch marketing and investment campaigns upon.
The London-based international brand consultancy spoke to the Western Morning News for the first time yesterday, following a recent fact-finding mission to the city to assess its selling points and meet with key stakeholders.
LloydNorthover’s Plymouth-born managing director Rebecca Price praised the city’s distinctive identity, which she said would be a significant factor within the rebranding campaign. She said the branding campaign would focus on building upon a sense of civic pride within the residential and business community.
Ms Price added local feedback from the PCDC survey had tended towards the negative.
Comment had included criticism levelled at the city’s lack of motorway connection and the visual impact of its Drake Circus shopping mall.
Ms Price said: “All too often, people in Plymouth will talk about what Plymouth is not or has not got. It’s our job to turn that on its head.
“It’s important to talk to people beyond the city to see what preconceptions there might be – they could be misconceptions.”
LloydNorthover – which has global offices in Barcelona, Dubai, Hong Kong and Singapore – achieved a marketing renaissance for Belfast, overseen by creative director Jeremy Shaw.
Just a year after unveiling its new brand ID for Belfast in July 2008, the city experienced a 41 per cent increase in tourism.
“The difference between Belfast and Plymouth is that externally, Plymouth is not well known,” said Mr Shaw.
“Everyone knew Belfast, but for the wrong reasons. It was our job to change that perception, to reinvent Belfast.”
Ms Price said: “Plymouth is a fabulous city. It’s a place full of hidden treasures.
“It has an extraordinary history and an exciting future ahead – but what it has today, is very distinct.
“Our job is to capture that and make sure Plymouth communicates it effectively.”
She said that landmarks including the Hoe, the Sound, Mayflower Steps, Smeaton’s Tower and the thriving business community would play a key role in attracting visitors and inward investment.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Investment to create business park infrastructure
03-03-2010
A TOTAL of £8 million is to be spent to provide the infrastructure for a new business park next to the A30 at Scorrier near Redruth.
Half will come from European Regional Development Fund Convergence funding, with the remainder coming from site owners Hallenbeagle Estates Ltd.
The investment will be used to clear the site and to create roads and infrastructure to service the proposed business park, which could act as a hub for recycling and waste management firms.
The work will deliver 13.5 hectares of employment land divided into 23 industrial plots and creating up to 31,000sq m of high-quality employment space. Work is likely to begin in August and to be completed by May 2011.
Hallenbeagle director Russell Dodge said: “There is an acute shortage of serviced employment land within the county and the development will provide the opportunity for significant investment in employment space and job creation in West Cornwall.”
Ian Whale, infrastructure manager at the South West RDA, which handles applications for ERDF Convergence investment for work- space gap funding, said: “This site has long been earmarked for significant employment use and the investment from ERDF Convergence will unlock its potential.
“This is the latest in a string of gap-funding investments designed to create high-quality workspace so businesses can grow and prosper.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Peter McGahan: Death of with profits - at last
02-03-2010
I AM hoping that 12 years after writing my first column on with profit bonds that this will be one of my last. I faced heavy criticism from many about the initial articles, but thankfully the basic natural laws brought this contrived rip off 'investment' crashing to its knees.
The FSA were even guilty of this plan, referring to it as having 'smoothed' investment returns - a point they will be eternally embarrassed about.
It is difficult to know how much money is still wasting away in the compost that is known as with profits, but Norwich union (Aviva) alone detail their investments at over £50 billion.(1) That is staggering and for the life of me I cannot see why £1 was ever invested into such a contrived bucket of twaddle.
Let's investigate. Firstly if commission for an investment bond was capped at 3% rather than the 8% these products can pay, less would be sold. In a couple of years when commission is thankfully banned, the level playing field will mean that advisers have no financial benefit from this commission quandary.
Second reason is very similar to the reason you, as investors are being sold structured or 'protected' investments. Many so called advisers are not comfortable with explaining what risk means to the investor.
A with profit bond simply hides risk by effectively 'lying' to you about the value of your plan. It is only when you actually ask what the surrender value will be that you will know what you have been put into.
'Advisers' often do not really want to explain risk as this may affect whether or not an investor will invest, which, as a commission based salesman, means they will not get paid.
If investors were explained how risk really works, and how it is beneficial to them, coupled with how returns are actually achieved with their investments over time, they would never ever invest in either a with profit bond, or a structured contract. The latter, I understand has over $41bn invested in them! I despair.
Customers are also lied to about how their investments are managed. When they invest, they are told they receive an 'extra allocation'.
If you have been subjected to this, it will look something like '103% of your capital will be invested'.
This is completely misleading and will be banned when the next FSA review is put into place within the next two-three years. This contrived process simply states you have more money invested and then it takes it back via an establishment charge over five years, just in time for 'with profit bond salesman' to come back again for their next round of commission.
Post the next review, your independent financial adviser will have to tell you exactly how you are charged.
Investors are also not explained to how a with profit bond actually works, and indeed how the market value reduction could actually affect them. I'll explain next week exactly how with profits do work.
Every investor is told (when I say told, it's a one line in a document they have to give you, but you'll never see it. In fact it's the ultimate get-out-clause for an adviser).
A market value reduction simply says that the firm can apply, at will, a penalty that will reduce the value of your investments. This simply means your returns are down to an actuary.
You'll be made to feel guilty by their marketing boys who say 'it's to protect other with profit policy holders' but in reality that's nonsense. It's to protect the actuary who may well have got his numbers wrong.
In the meantime, investors who took out with profits bonds in 2000 to 2002 and curdled £38.4 billion into with profits should not miss out on the ten year guarantee which allows them to exit their plan without an MVR. (2)
Check your start date and ten year anniversary and go to a fee based independent financial adviser for advice.
For a free initial check on your with profit plan call Peter on 0845 230 9876, e-mail info@wwfp.net
Source:
1. nunion
2. what investment
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Electronics firm opens new office in city
24-02-2010
AN ELECTRONICS firm has opened a new office, based in the Plymouth factory it sold last year to a Swindon-based manufacturer.
X-Fab, which makes silicon chip technology, has established a research and development office and test facility at the Roborough plant now owned by Plessey Semiconductors.
X-Fab has maintained a team of 20 staff, who will provide research and development to support the company’s output of semiconductors for analogue and mixed-signal applications.
The German firm has four manufacturing plants in Germany, Malaysia and the US.
Its Plymouth base will also serve as its headquarters for customer sales support services across the UK and North West Europe.
One hundred and fifty Devon workers were taken on by X-Fab’s new landlord, Plessey Semiconductors, when the latter acquired the facility in October.
Swindon-based Plus Semi acquired the share capital of X-Fab UK Limited and received a £1 million Regional Development Agency grant to part-fund the transferal of its manufacturing logistics from Wiltshire to the Westcountry.
Following the merger of the two operations, the Plymouth business was renamed Plessey Semiconductors.
Plus Semi retained its own R&D team at its Swindon HQ, while its Roborough factory manufactures some X-Fab developed silicon chips under licence.
X-Fab’s Roborough base will see its team of experts focus upon the development of silicon chips deployed in fields including optoelectronics, which can be applied to technologies including Blu-Ray.
Dr John Ellis, senior member of X-Fab’s technical staff in the Plymouth team, said: “We have built up an expert community in the field of optoelectronics.
“It’s a community that spans the X-Fab international organisation, but many of our new developments are being led from our Plymouth office.”
X-Fab’s chief technology officer Dr Jens Kosch said: “We are delighted to have retained the team, to contribute to our future development activities, which are becoming increasingly application focused.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Caines aims to expand luxury hotel portfolio
24-02-2010
CHEF Michael Caines has announced plans to expand the luxury hotel portfolio he founded with greetings card entrepreneur Andrew Brownsword.
The business partners are to launch their sixth ABode boutique hotel in Chester in April and are eyeing two further possible sites in Salisbury and Oxford. They aim to establish a chain of 15 ABodes, which launched with their Exeter hotel in 2005.
ABode was founded with a mission to provide contemporary, stylish accommodation with a selection of dining choices to suit all budgets. They are located in towns and cities “renowned for culture and heritage”.
Managing director, Nick Halliday said: “We believe the current economic climate presents opportunities for growth. ABode has been well received to the market and doubling our portfolio will lead to stronger brand awareness as well as increase our presence in key short break destinations.”
Turnover for the ABode group – including its Baby ABode opened last year in Chelsea – grew from £12 million in 2007 to £16 million by the end of 2009.
Mr Brownsword is owner the Gidleigh Park Hotel, near Chagford, where executive chef Mr Caines heads its restaurant.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Tourism group to start US campaign
24-02-2010
By Catherine Barnes
SOUTH West Tourism is to launch a US consumer campaign this month, to coincide with a promotional launch of direct New York to Bristol flights by Continental Airlines.
It is to take a stand at the New York Times Travel Show on Friday as part of a £100,000 bid to build upon the region’s appeal to American visitors.
The show, which runs until Sunday, attracts more than 20,000 US visitors and will see South West Tourism showcase the region’s “vast heritage connections”.
The travel show display is part of Explore England’s Heritage – Discover the South West, which will run out of VisitEngland’s office in New York until June.
South West Tourism described it as a “small, but well targeted campaign”, aimed to increase stateside hits at www.visitsouthwestengland.com/USA
South West Tourism is responsible for coordinating the US campaign, £73,000 of which has been funded by the South West Regional Development Agency. Bath Tourism, Destination Bristol and Bristol Airport have contributed a combined £37,000.
The marketing drive will also include a programme of consumer-based marketing and PR activity run in partnership with VisitEngland. It will include playing host to US travel media including Conde Nast Traveller magazine, The New York Times, and the LA Times at an “exclusive” media event.
A thousand Continental Airlines call centre agents will also take part in workshops to provide them with insight into what the region has to offer.
The South West played host to around 200,000 American visitors in 2008, generating an estimated £77 million for the South West economy.
South West Tourism’s marketing head Kirsty Cumming said: “The American visitor is often motivated to visit England by its history and heritage connections and the South West is a perfect destination with this in mind.
“With around 200,000 American visitors staying each year, many already have good knowledge of our region. This campaign will both reinforce the well know areas and also highlight other places of interest.
“It’s designed to appeal to loyal visitors and encourage new first timers.”
Jason Wescott, head of sales and marketing at Bristol International Airport, said: “Continental’s direct flight from New York enables American visitors to fly direct to the South West.
“We aim to get passengers from ‘airside to kerbside’ as quickly as possible, making the journey less stressful and meaning more time to see the sights.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Peter McGahan: Rock and a hard mountain for savers
23-02-2010
Talk about being stuck between a rock and a hard mountain. Savers today are enjoying the paltry returns of c2.8% for instant access savings and 3% for a one year fixed bond.(1) That's the rock.
Over their shoulder is the rugged mountain of inflation squashing any potential returns they may have. Inflation currently sits at 3.5%, meaning that a basic rate tax payer will be 'enjoying' 2.24% whilst inflation corrodes the real value of their capital at a rate of knots.(2)
In fact, if this continued, and a saver took no income at all, £10,000 would become £8809 in ten years. A saver who took the paltry income of 2.24% would have capital implosion as their capital would fall to £7002 over the same period.
Indeed this is no surprise as history repeats itself. If I take the period of 22 years from May 1987 (pre the big crash) up to May last year, inflation would have impacted your capital by 80% yet the benchmark comparison of the Halifax liquid gold account would have returned just 108% giving the saver just 28% (or 1.27% per year) to spend.(3)
Those caught most, are typically those who don't have readily available independent investment advice. These are the same customers who may be subjected to with profit bonds or protected/structured products on the 'whim' that they may exceed this inflation whilst apparently taking no risk.
I have given enough reasons why investors should be wary of 99.9% of these structured products, if not stay clear of completely, and I will cover with profits again next week.
But what are the solutions that an investor/saver can look for? Let's remember March last year was indeed Armageddon and any person considering anything involving anything investment related may have been considered mad. Indeed that was a sign for most that the bottom of the market existed.
But we dont really need to be market timers like that to make the best returns. Equities (stocks and shares) are a well known hedge (protection) against inflation. In a very basic example, if you think about it, energy prices cause inflation, so energy companies must be making lots of money, so it follows their share price would rise, thereby giving the investor and saver protection against inflation.
Over the same period mentioned above for example (and not including the large rise in the market in the last year) the FTSE allshare would have returned the investor a staggering 366% which is 286% over and above inflation or 13% per year.(3)
I chose this period of time because it began just before the stock market's infamous black Wednesday and includes four more catastrophic loss periods.
Subsequently the capital, in pursuit of this gain would have fluctuated wildly. Not every investor has the same appetite for fluctuation in their capital, nor might they be receiving the same investment advice, independent of the commission an adviser might be receiving.
If, however, an investor was truly informed of what the potential for return over inflation versus the potential for fluctuation really meant, they may well have a different outlook.
Let's remember the old adage that when the wind blows hard you can build a wall or a windmill. If equities were flat and rose like a building society, there would be no opportunity to buy cheap and sell high. Equities don't, and this momentum caused by greed and fear creates immense opportunities that investors take advantage of.
Unlike 'without' profit bonds - a product which was poorly contrived by the insurance providers and sold by 'financial advisers' who didn't understand them at destructive commission levels of 7-8% - there are methods of limiting risk in your investments whilst creating the potential for upside return.
Many of these are found in the cautious return sector such as Henderson multi manager income and growth, and Jupiter Merlin income. These funds aim to reduce and manage risk but enjoyed 24.8% and 21.4% over the last year. (4)
For a list of the better performing lower risk funds call Peter on 0845 230 9876, e-mail info@wwfp.net
Source:
1. Which
2. Bank of England
3. Lipper
4.Trustnet
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Pendennis buys Devonport Yachts
23-02-2010
By Liz Parks
THE Pendennis Shipyard has announced that it has bought Devonport Yachts Ltd in a bid to gain further ground in the lucrative superyacht sector.
Speculation about a possible tie-up has been rife since the autumn, with the deal due to be announced this morning.
Mike Carr, joint managing director of Pendennis, said that the acquisition would allow the shipyard to move into the 60 metre-plus category.
“This acquisition provides the group with a powerful brand with which to penetrate the 60m+ new build and refit markets and to continue to develop our position as a leading international superyacht business,” he said.
“Over our 20+ year history, we have established Pendennis as a leading brand for refit and new build of superyachts up to 60m whilst at the same time developing jobs and facilities in Falmouth.
“Placing the Devonport brand and Devonport Yacht Ltd’s other assets within the group will expand our portfolio and help accelerate plans to further develop Falmouth as the UK’s premier superyacht centre of excellence.”
Devonport Yachts will continue trading as a separate business, with its current managing director, Stephen Hills, remaining in post. It will operate out of Falmouth.
Mr Hills said: “This is a great opportunity to continue to develop the UK’s large super- yacht capability and realise the potential which exists in the South West of England.
“There are major synergies within the two businesses which will serve to continue and further strengthen the Devonport superyacht brand, offering a UK service for very large bespoke new build and refit projects.
Our immediate priority is to finalise the new operating arrangements for Devonport Yachts Ltd, after which we will be running a series of yard visits where we will explain in detail the many advantages of the new Devonport yachts business based in Falmouth.”
Pendennis is hoping that the acquisition will allow it to become one of the leading superyacht centres in Northern Europe. As part of the deal, Ernesto Bertarelli, who owns Team Alinghi, two time winners of the America’s Cup becomes a minority shareholder in the business.
Devonport Yachts was formerly part of Babcock Marine, owners of Devonport Dockyard, which announced last year it would not be bidding for any new superyacht contracts to focus instead on its core defence operations.
The brand was originally established by the previous dockyard owners DML, in 1987 as the trading name of its specialist yacht division shortly after the dockyard was privatised.
The business has worked on refit and new build projects, with plans for its current project, known as Project 1011, about to go on display at the Abu Dhabi Yacht Show later this week.
The 536ft (165m) Devonport OneSixty will resemble an ocean-going Concorde with features including 17 VIP rooms, a nightclub, drive-in garage, helipad and hangar, mini-submarine and diving chamber.
It will require a crew of 64.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Employment site could support 1,000 jobs
23-02-2010
By Liz Parks
PLANNING permission is being sought to turn 30 acres of farmland on the outskirts of Exeter into a new employment site that could support 1,000 jobs.
Development company Eagle One has announced that it has submitted a planning application for the site, which is between Yeoford Way and the Devon Hotel.
The outline application is to build 500,000sq ft of employment space which is likely to include industrial units, some office space, warehousing and trade counters.
Mike Bryant, development manager at Eagle One, said it would be a “natural extension” to the existing Matford Park development.
“We are fortunate in terms of timing that it will take a while get things ready which will coincide with the upturn,” he said.
The site is owned by an unnamed Jersey-based company, with Eagle One acting as planning co-ordinator.
If the planning application is given the green light, preparatory work would be carried out on site, with construction of the new units getting under way in around 12 months time.
Mr Bryant said that, despite the challenging economic conditions, funding had not been an issue for the development.
“We don’t envisage there being any funding difficulties, particularly as we’re not necessarily doing any speculative development,” he said.
“We are aware that there is demand out there, we have been involved in the development of Matford and it has always proved to be popular with people coming in and people coming from Marsh Barton who want to expand.”
Nick Hole, director of Eagle One, said: “We believe this will be a key addition to Exeter’s appeal for new employment and will take the city forward over the next decade.
“We have just submitted a planning application for the development.
“The site will be ready for the upturn and should attract a range of potential occupiers.
“We have worked closely with the city council to bring this proposal forward and I am confident that we will gain public support.”
Derek Phillips, chairman of Exeter Chamber of Commerce, said: “We have been concerned over recent years that Exeter is short of employment sites.
“It is thus very welcome that Eagle One have now advanced their plans to a stage where we will see development at this major site starting during 2010.
“It is a further welcome boost to economic recovery in the city.”
Coun Stella Brock, lead councillor for economy and tourism, on Exeter City Council, also welcomed the proposals:
“We have been keen to bring forward a new site within the city for expanding firms and to create new jobs.
“We believe that this prestigious location will be attractive to the market.
“We are also pleased that the scheme is being designed so that it will be able to make use of sustainable energy supplies,” she said.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Smit sings praises of social enterprise
16-02-2010
By Liz Parks
THE achievements of 15 Cornish social entrepreneurs have been celebrated at a graduation ceremony at the Eden Project.
The 15 men and women were the first to take part in a nine-month programme organised by the Penzance-based Cornish School for Social Entrepreneurs.
A total of 20 would-be social entrepreneurs were chosen for the programme last year with three pulling out and two deferring their places.
Tim Smit, patron of the Cornwall SSE and co-founder of the Eden Project, attended the event and heard about the progress they have made by taking part in the programme.
“Social enterprise is, in my view, possibly the most important development in business over the last century,” he said.
“Its recognition of the wider needs of the community and environmental impacts of business as well as the responsible social role business should play give it great relevance in the emerging post recession world.
“The school is a vital addition to the capacity of Cornwall and we at Eden are proud to be supporters and were delighted to welcome them here for this their first graduation ceremony.”
The Cornwall SSE is a partner in Cornwall Works for Social Enterprise, which is supported by European Social Fund Convergence investment via Job Centre Plus and led by Cornwall Council. It is managed through Cornwall Development Company.
Those graduating on Friday included: Caroline Driver, who runs Llamarama, a fair trade business which aims to reduce poverty through bringing artisans’ products to international markets; Jane Yeoman, who is setting up ZOOP, a social enterprise promoting sustainable living to families with children under five, and Jane Opie who has set up Smart Savings, a social enterprise providing professional and ethical financial services, particularly to disadvantaged communities, and with a specific focus on claims management.
The SSE programme has seen the graduates taking part in one day a week of study, tutorials or other activities for the last nine months.
Cornwall SSE development manager Sally Heard said one of the main benefits of taking part was being able to share problems and their solutions.
“Quite often people have had their idea for a while but they have felt quite isolated. Coming onto the programme gives them the opportunity to work with like minded people,” she said.
SSE chief executive Alastair Wilson said: “I am delighted to welcome these first Cornwall social entrepreneurs into the SSE fellowship. They are true social entrepreneurs – driven by a social mission, which they pair with the entrepreneurial spirit and skills that allows them to change the lives of the people they work with and for.”
Recruitment is now under way for the next intake of social entrepreneurs. The Cornwall SSE has organised two information days for people to find out more, with one due to take place on Friday at the Library House, in Truro, and another on Friday, February 26, at Cornwall One Stop Shop, St Clare, Penzance.
For more information, visit www.sse.org.uk
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Peter McGahan: Quantitative easing has the Red Bull eff
16-02-2010
Do you think it is a good idea to keep any investments in corporate bonds/gilts as I am hearing from some sources that they are a massive bubble?
Bubble? That's a synonym for fizz, and it's ironic that the biggest contributor to it being a bubble is the 'red bull' stimulus injected into the veins of the economy by the Bank of England - quantitative easing.
Quantitative easing is where the Bank of England creates cash in its account, with which it buys up a range of assets from other institutions such as gilts etc, who in turn pay that into their banks and for the banks to supposedly lend it on (it hasn't happened).
It's called liquidity or 'greasing the wheels of finance'.
The idea is that it also drives down gilt/bond yields, which in turn is a thermometer for lending rates which helps the business community from a borrowing perspective. That hasn't happened either, and banks have just sought the opportunity to create the extra margin for themselves to bolster up balance sheets.
Whether or not the fizz will lose its effervescence depends on a number of complicated issues.
If Barack Obama beats the investment banks, much of the inflationary risk will disappear as the cost of the raw goods (commodities) will plummet. Higher interest rates will not be needed to curb inflation so there will be less stress on the financial system and in turn sterling.
Furthermore it is not expected in the short term that the Bank will ease any more red bull into the system as it is widely expected that the current recovery is sustainable in the short term. If it is, investors will be mindful that the treasury could soon sell off its recent purchases driving yields up and capital values down.
Most retail investors in bonds are not sophisticated enough to play the market, moving between the two contrasting holdings of equities and bonds. Instead most hold them as a hedge against each other i.e. buying an ice cream company and a wellington boot company - In extreme conditions they balance each other.
It is well documented that bonds have been the better selling sectors over the last year and it's easy to see why, but the bubble could be losing its fizz and creating a potential bubble.
And if you understand g.i. indices with food, after a sugar spike there is a boring, boring lull with no energy. If you have suffered a sugar spike lull (rice cakes are interestingly pretty bad for that) you will know that you get no warning but that you are crabby and unapproachable.
The key now to successful investing is in reducing your exposure when the risk is disproportionate.
Whilst the above 'depends on what happens' there is a flip side to much of this. Any study of banking crisis will show you that there is indeed a long process of deleveraging where everyone tries to reduce debt down to reasonable levels - even governments.
Undoubtedly the next government will have drastic spending cuts, a strategy that will, along with current employment rates have a medium term dampening effect on inflation. In turn gilt yields will then be allowed to remain low and for much longer than expected, making them still an attractive sector. However, in the short term, inflationary figures driven by Vat changes and the appalling tax on fuel and energy prices will make their way into the system causing short term inflationary problems which I am comfortable will dissipate because of the dampening issues mentioned.
There is evidence already of yields rising with ten year gilts hitting 4% in December from 3.5% - a downward pressure sign on prices.(1) So in short I would take an opportunity to reduce risk by taking some of the gains and keep an eye on inflationary figures around August September time.
If you would like investment advice call Peter on 0845 230 9876, e-mail info@wwfp.net
Source:
1 Jupiter
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Law firm to sell ‘online divorce’
10-02-2010
By Catherine Barnes
A WESTCOUNTRY law firm is to launch an online store, selling “DIY divorces” through its website.
Coodes Solicitors will reveal its innovative “DIY Law Online” services at Boconnoc House near Lostwithiel on Friday. The series of fixed-price and DIY packages available via the web, will enable customers to create their own legal documents.
Clients will be able to browse the range of legal offerings at www.coodes.co.uk and – just like at an online store – will be able to put their chosen items into a shopping cart system at the click of a mouse.
Coodes said that products – with fees starting at around £25 for a letter before action to be sent when chasing a debt – would enable customers greater scope to budget for their legal advice and begin the procedure themselves.
Some documents will be ready-written to enable clients simply to fill in the gaps. Other fixed price online services will enable customers a freer hand to pen their own documents, such as a will, with the firm’s solicitors checking the finished article for accuracy, ensuring that it is legally watertight.
The fixed price divorce packages will be available for clients going through marriage splits – that exclude wrangles over children or finances – with couples able to begin documenting the proceedings, themselves.
First-time home buyers will also be able to buy fixed price conveyancing, with other packages including employment law, wills and powers of attorney and commercial property.
Coodes managing partner Ian Taylor described the new online services as “an industry first” for the South West. The firm believes that buying and selling legal services through the Internet, will become “more and more common” in coming years.
“A lot of people just need help with the wording,” he said. “Our fees are fair for the job that we do, but sometimes cover more than we actually need to do to service that client.
“Sitting in front of your solicitor could cost £185 an hour – although some clients will still need that reassurance. Yet while some people might prefer to chat over a cup of tea, many will be much happier to do the work over an e-mail and get back what they want, at a good price.”
Mr Taylor added: “We believe strongly this is the future of law – it enables us to be upfront and transparent about the costs of our services, as well as offer flexibility for customers to access our products wherever and whenever they choose.”
The products will position the firm to compete with supermarkets and high-street retailers, who will soon able to sell legal services as legislation regulating the type of firms permitted to do so, is relaxed.
Mr Taylor added: “Some may see this as a controversial move, but customers can be assured that the quality of legal advice available through Coodes Direct will be just as high as if you walk into one of our branches.
“We’ve recognised that consumers are becoming more and more comfortable with buying products and services online, are inclined to shop around for the best price and enjoy the convenience of e-commerce.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Peter McGahan: Potential for catastrophic losses
09-02-2010
WHEN something doesn't make sense, it isn't sensible.
President Obama proudly announced he would 'fight' the banking institutions who were using our money to buy up investments in commodities making record profits at the same time.
The natural reaction to this was that banks' share prices took a tumble. Interestingly Mr Obama announced this on the 21st Jan '10. What is perhaps worrying is how commodity prices have reacted.
Commodities are the very things we use every day; Oil, gas, soya beans, pigs, wheat, oats and so on. It is normal for commodities to perform well as we move out of recession, but most of these commodities have performed well, long before we have come out of recession. Hmmm puzzling!
In January '09 all we could hear was Armageddon. Yet in January '09 crude oil jumped from $49 to a massive $83 on the 7th of January 2010? (1) No explanation given.
Remember we have been in a global recession. Peculiarly, just prior to Mr Obama announcing his intentions that he would curb the activities of these banks, crude oil fell to $77.56 (-6.5% - just as it was announced we are coming out of recession when clearly global demand for oil would become much greater - very weird indeed). Amazingly, its low of $72.84 was only found on 1st Feb '10. Most commodities followed a similar pattern - almost as if they knew it would happen.
There were quite a few falls and rises over last year (5 sharp rises and 6 sharp falls ) with oil regularly hopping around by 15-18% in both rises and falls. That simply isn't logical. Clearly at the heart of all this confusion is proprietary trading - trading by these banks and other institutions in assets they should be no-where near. Indeed these banks are solely responsible for driving our costs of living through the roof.
However the threat is greater than we think. Investors, keen on making money from this bubble are piling their cash into a range of assets that could be exposed to bizarre risks.
And here is the next threat - ETF (exchange traded fund). This is generally sold as a cheap and quick access to a basket of shares or commodities. It is a successor of a tracker or an evolutionary 'development'.
There is great potential for a substantial loss for investors exposed to commodities. These are the customers exposed to certain Latin American funds, Emerging market funds, BRIC funds (Brazil, Russia, India , China), ETF's and ECT's (exchange traded commodities). But every single investor in the UK, whether they have a personal pension, endowment, ISA or investment bond is likely to be exposed to this.
Many ETF's are opaque. For tax, regulatory and cost reasons many are resident in one country, the management residing in another and the commodities or securities they are investing in are in the third. One fund was found that had a manager, trustee, custodian and listing in the Indian sub continent, the Gulf, Africa and Europe where the 'verifiers are junior people from small firms with a limited track record'. (2)
Global ETF assets soared past £625bn at the end of last year. Some of the above ETF's are highly complicated and the risk is not easily understandable to an investment adviser let alone a consumer.
Few will have been stress tested for what may happen. For example, because of poor, if not nonexistent regulation, some funds have begun to use highly complicated derivatives to get investors excited.
Every fund should also have sufficient collateral to repay customers. Some are using stocks and bonds which fluctuate daily as their 'collateral'. The investment firms response to that is that they have it clearly documented in their material how their fund is structured.
This will not mean a jot to most due to the stress testing referred to above; i.e. commodities and their associated stocks collapse, so investors try and encash their investments, but unfortunately the collateral was also exposed to this downturn - a pack of very wet cards.
If Mr Obama has his way, a number of these smaller funds will fail, there will be a mass dumping of these assets, potentially causing catastrophic losses.
If you would like to see what exposure your investments have to this call Peter for investment advice on 0845 230 9876, e-mail info@wwfp.net
Source
1. barchart.com
2. Guardian
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Firms among best in country to work for
02-02-2010
By Catherine Barnes
TWO Westcountry businesses have been named among the country’s top companies to work for.
Clinton Devon Estates and commercial radio station group UKRD – owner of Cornwall’s Pirate FM – were awarded three-star status in the 2010 Best Companies to Work For survey.
The Best Companies accreditation scheme follows a Michelin star-style system, with companies awarded one star for first-class, two stars for outstanding and three stars for extraordinary performance.
The Best Company list grades businesses through a detailed assessment it makes based on the results of questions that employees respond to.
More than 1,000 organisations from the private and public sectors applied for Best Companies accreditation this year.
Full feedback has yet to be sent to the three-star winners, but only 49 companies across the country are thought to have been awarded the status.
UKRD chief executive William Rogers said: “We are really chuffed with the three-star accreditation.”
The Redruth-based radio station group increased its staff from 90 to 240 employees around the UK after its takeover of the Local Radio Company last year – and has 24 team members at its head office and Pirate FM base, in Redruth.
Mr Rogers said: “This is something that is entirely dependent on the response of the employees.
“It confirms we have managed together to create an environment that people really enjoy working in. It’s great news for the business.”
Clinton Devon Estates estate director John Varlet said the achievement was a reflection of the firm’s policy to ensure every employee felt involved in the day-to-day running of the business.
About 55 local people are directly employed by Clinton Devon on its three estates around the county, with many other indirectly employed as contractors and professionals.
Mr Varley said: “It’s amazing – but we are not complacent.
“We are delighted with the results and when we get the detail of how we have performed, we intend to discuss it at team meetings and see how we can make further improvements to how Clinton Devon Estates employees can be further engaged in our workplace.”
Jonathan Austin, CEO and founder of Best Companies said: “An engaged workforce is essential as organisations move out of the recession and into a more stable economic situation.
“No doubt many organisations have tackled redundancies and rapid change this year.
“But only those that have kept on engaging their staff and making sure they are involved in the business will be in a good position for the future.
“Those that have ignored this and lost the trust and goodwill of their staff will find the recovery more difficult.
“The companies that have achieved accreditation are among the best employers, and are to be congratulated.
“This year’s survey also underlines the important role managers have in keeping their team productive and motivated.
“For the first time in the 10 years of our research, employees have cited their own manager as a more important factor in their engagement than the leader and senior management.”
A further 46 organisations across the South West also received accreditation on the list.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Peter McGahan: Obama and the banks
02-02-2010
IF you fully understand what Obama is doing with the swashbuckling banks, you will note the financial world as we know it will never ever ever be the same.
In May 2008, I wrote a column 1300 words long, which said that banks were at the heart of spikes in commodity prices such as oil, wheat, maize etc. That article was pretty much ignored by the investment companies who were making so much money off the back of it – until they weren’t. That was the day that oil plummeted and every other commodity with it.
Most of us know we can buy shares and we sit and hope they will go up. What is quite sinister and worrying however is that it is possible to also make money betting on stocks and shares to go down.
Think it through. If you could in some way use your clout to talk a share or market up (commonly called ramping) to a point that it was overvalued, you could then make similar numbers betting that the price would fall and use your media clout again to ‘de-ramp’ the share by talking it down. Naturally that would be morally wrong wouldn’t it?
If this was left open, the stock market could just be a merry go round of someone pushing up prices and then pushing them back down again. The only winners would be the banks, as customers would remain in exactly the same position whilst bank bonuses would redistribute your wealth to them on an annual basis.
In May 2008 I showed that investments in commodities through index traded strategies had leaped from an all time historic high in 2003 of $13bn to an amazing $260bn in 2008. The price of all commodities had artificially soared with it, and we all paid for that through the supermarkets and petrol pumps.
In the U.S. it transpired that the body which was put in place to govern this practise (CFTP) had actually relaxed the rules. So much so, investment companies could buy $100 dollars worth of commodities by putting down just $8 and borrowing the rest.
This was a bubble waiting to explode. It also allowed banks to create ‘swaps’, a method of making and investment and effectively ‘hiding’ it by creating a separate swap with a bank.
The result of this is that speculative investments could then be created way beyond the normal market as investment banks borrow to invest. The result – we all pay more for our food, metals, oil etc.
President Obama has made it clear to the banks: ‘If these folks want a fight, it’s a fight I am ready to have’ – good man.
Goldman Sachs borrowed an astonishing £10bn from the U.S. government in 2009. Goldman’s bonuses and incomes are now under fire, especially when it has become clear their average income per employee is £300,000. The chief exec received $68 million in 2007, which should have been enough to feed the kids.(1)
So what might the impact be? President Obama, surrounded by his economic advisers made it clear he would halt proprietary trading where banks were being allowed to risk huge sums of money predicting the prices of oil/commodities etc. His concern is not only about the scenario of ‘heads, the banks win; tails, the tax payer bails them out’.
The major issue is that the process of buying up such speculative investments effectively forces prices through the roof and can cause economic mayhem.
Normal supply and demand creates the price of markets and goods and they should not be allowed to be artificially manipulated by speculative investors, whether that is up or down.
The average price of oil is c$32 and there is no reason why oil should be any different than that. Today oil sits at $74.18. (2)
If President Obama gets his way, these banks will be brought to their knees, all speculative positions removed, and market forces will bring our petrol, food and metals plummeting down to earth. Normality resumes.
If you have a query and which to speak to an independent financial adviser call Peter on 0845 230 9876, e-mail info@wwfp.net
Source
1. Times
2. Bloomberg
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Peter McGahan: Property price rise
26-01-2010
Do you think the current rise in property prices will be sustained?
No. There is no real reason why residential property should increase in value at all.
Whilst I was negative on all property from 2005, in February last year I was happy to buy back into real estate investment trusts (REITs – commercial property shares), and four months ago I was happy to buy back into the physical commercial property asset.
Residential property is rather different and for me is still too overvalued. I am pretty confident we will look back two years from now at the current rise as a minor blip, driven by the current fantasy financial climate we have.
Much of the public has actually acclimatised themselves to the current interest rates and as such are enjoying a honeymoon period which is beyond comprehension.
There are three key issues that will impact house prices and they are inflation (and in turn interest rates), debt repayment and employment/wages.
The average house price in the UK peaked at £184,023 (1) in January ’08. It hit rock bottom in April ’09 at £152,748 and today stands at an amazing £161,554. That would seem quite peculiar when we are in the midst of apparent Armageddon.
Well not really. If we look at the bank of England base rate since 1972 there are only two very short periods that interest rates have pipped briefly below 5%. (2) It was only back in 1990 that borrowers were paying 15% for their mortgage yet today they enjoy the fantasised luxury of 0.5% base rate. In mortgage terms, that’s the difference between an average mortgage owner of £112,000 paying £1400 per month at the peak of the market as opposed to £46.60 per month now.(3)
Clearly it is a supportive measure but it is not sustainable by any means.
The biggest threat of inflation is already upon us.
January noted a huge rise in inflation which surprised on the upside. It was the biggest monthly rise in inflation since records began.(4)
Naturally if you were a mortgage owner, you would panic at that thought
High inflation is generally curbed by high interest rates.
However I don’t believe this is as big a threat as many would believe.
Firstly, we had VAT revert from 15% to 17.5%, then we have the colossal tax which is being levied against fuel. I filled up last week at 111p per litre. Two years ago we had hurricanes, global demand from China and all sorts of other twaddle being blamed for oil prices driving fuel to these sorts of levels.
What is the excuse today? None. Its just tax. The great thing is that the government are controlling this as opposed to market forces. No seriously, that is good. If they are controlling inflationary pressures by creating them, they can easily ‘uncreate’ them. Furthermore, it is generally believed in the economic world that the current fantasy interest world we are living in is simply a supportive measure which will disappear.
Most believe that companies will not be passing wage increases to employees and that the current shocking state of public finances will put huge downward pressure on wages and employment.
So whilst that will ease any short term inflationary fears, the reality is that 2010-2012 will be a period of global deleveraging – we will continue to try and lower our debt, both the general public and government. More on that next week.
Unemployment will rise due to cutbacks, and wages will fall.
Inflation will recede but interest rates cannot stay as they are. Higher borrowing costs will take money out of all markets and unfortunately house prices will stay flat for quite some time (3-4 years).
I pay as much attention now to the ‘marketing’ arms of ‘house price indexes' as I did in 2008 before the market went pop. Enjoy the next ten months because the twenty four after that will be about being thrifty as we emerge from interest rate fantasy land.
If you wish to discuss your financial options, speak to an independent financial adviser on 0845 230 9876, e-mail info@wwfp.net
Sources:
(1) landregistry
(2) bankofengland
(3) bbc
(4) ifaonline
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Veg box deliveries exceed expectation
20-01-2010
THE best result possible was the verdict of South Hams-based Nearly Naked Veg Company founder Ben Brunning who said that online veg box sales, as well as meat and other groceries, were more than double what he had expected in the run up to Christmas.
But with credit card payments looming as well as the usual bills the end of the month brings, he warned that consumers should not become complacent in their desire to make a conscious choice about where they buy their food as well as supporting local businesses.
Ben said: “Our pre-Christmas sales far exceeded our expectations to the degree that we had to deliver our Christmas boxes over two whole days before Christmas rather than the anticipated one day.
“At Nearly Naked we give people the choice of having boxes delivered to their doorstep which are affordable to virtually every pocket and we want more people to realise that they can all have access to seasonal produce which is fresh out of the ground. The New Year is a great time to make it a permanent resolution to buy locally grown and reared food.”
Since Ben set up the veg and fruit box delivery company in June he has won the prestigious Taste of the West online retailer of the year award and was runner up in Devon Life’s newcomer of the year category at its annual food and drink awards.
“More and more people are coming to us having made a conscious choice about where they source their food from.
“We’ve also seen more people asking for advice about how to grow their own veg and at the Nearly Naked Veg Company, we absolutely support this and are happy to give advice whenever we can.”
The Nearly Naked Veg Company’s cropping plan for the months ahead is available to see at www.nearlynakedveg.co.uk or contact 01364 646106.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Peter McGahan: Cautious investors could lose millions
20-01-2010
CAUTIOUS investors could easily become fooled by some of the investment options available on the high street; and judging by the millions poured into so called 'guaranteed products' investors must clearly be reading information I am not.
The biggest concern for investors is the potential for loss of their capital. Most of these types of 'guaranteed' or 'protected' investments will be sold via the high street in banks. They are typically marketed to those who have an aversion to risk, or as I prefer to say it, where the financial adviser neither explains risk or cannot explain risk.
Risk comes with a potential gain and a potential loss. Understanding what it means to you and can do for you is fundamental to your capital gains and protection.
If I opened a high class Christmas cracker it might say about risk 'if there are strong winds, you can build a wall or a windmill'. Christmas is great.
So why might many investors be close to losing all their money when they believe they are protected?
These plans work as follows: A plan provider (a bank for instance) creates a product by placing some of your money with another financial institution. That financial institution offers a fixed return to the bank over a set period of time. So for example (in really simple terms) the bank is offered 5% per year over the next five years with UBS. The bank knows that if UBS pay that 5% per year they will have 25% (simple terms) in five years time.
And so they can place 80% of your money with UBS and in five years time the 80% will grow to 100% - hence your capital protection. The remaining 20% will be used to buy a range of complex financial instruments which participate in the upside of the stock market. So you might then see them marketed as '100% capital protection* (note the very expensive asterix) plus 60% of the upside of the stock market growth' (typically the FTSE100).
Seems good? Prepare for the deluge:
There are three key points: Firstly the 'capital protection' only works at maturity (end of five years typically) and you have to ask yourself over how many five year periods in history has the FTSE 100 not returned at least your capital back? Rarely. So what value does the capital protection really have? None really.
Secondly, these 'protected' plans will not benefit from the yield in the FTSE100 (i.e. its dividends). This is currently running at c3.2%. (1) So if you were invested into a product such as that above you would be 17% worse off at the end of the term.
The most worrying issue however, is in relation to the 'capital protection'. Remember these are aimed at investors who are risk adverse.
There is a potential with these plans that an investor could lose all their money, unlike the stock market where your capital simply fluctuates up or down. If the institution from which you are buying the capital protection goes bust, there is no protection under the financial services compensation scheme, due to the 'large company' rule. Therefore your money could be completely 'out the window'.
And here is where companies put investors at risk. The lower the credit rating of the institution, the bigger the return they offer, so banks can simply move downwards with their choice of provider to then offer higher returns, catapulting your risk skywards.
A credit default swap (basically the cost of insuring a company's debt) is a good analysis of a company's strength. Today the cost of insuring £100 of Lloyds TSB's debt (127.35) is 119% more expensive than the cost of insuring HSBC's debt. (2)
This cute move of moving down the credit curve is putting millions of cautious investor's capital at risk and they are oblivious to it.
If you would like investment advice call Peter on 0845 230 9876, e-mail info@wwfp.net
Source:
(1) Invesco
(2) BSAM
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Princess Yachts in cruise control
14-01-2010
PRINCESS Yachts has been awarded the title Boat of the Year for one of its vessels being exhibited at the London International Boat Show.
Its acclaimed Princess V62 (pictured) won in the sports cruiser category and is one of 12 yachts from the Plymouth boatyard on show at the event.
Judges said the luxury yacht was their “unanimous choice” as category winner, praising its “blistering performance and agile handling”. The panel said: “The V62 is as close to sports cruiser heaven as you can expect.”
It is the second year running that Princess have collected the award in the Sports Cruisers category. Managing director Chris Gates said: “We take real pride in making every Princess the best they can be, so to receive independent recognition that you have succeeded is extremely rewarding.
“The whole team can be very proud of this award, it is yet another testimony to the passion we have throughout the firm to produce world-class boats.”
Princess premiered its 22.35-metre 72 motor yacht at the show.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Firms urged to help raise £1m for local communities
14-01-2010
BUSINESSES in the region are being urged to help the Western Morning News raise more than £1 million for community groups in Devon and Cornwall.
As part of our Think Local campaign, sponsored by independent financial advisers Worldwide Financial Planning, we aim to raise £1 million extra cash for grassroots projects helping people in need through the WMN 150th Anniversary Challenge Fund.
To mark the paper’s 150th anniversary this year, the WMN is inviting all businesses to get involved in a unique opportunity to secure matched funding from the Government for voluntary and community groups.
The Government is making £1 million available through two local charities – Devon Community Foundation and Cornwall Community Foundation – as part of the Grassroots Endowment Challenge.
If local people can help us to raise £1 million, the Government will match the amount to benefit community groups across the region. If the money is not raised, the match-funding will be lost.
To date, companies and organisations helping us include Worldwide Financial Planning, Devon and Somerset Law Society, Crealy Adventure Park, Coutts & Co and Tregothnan Botanic Garden. We are urging more companies to take the lead to help us secure this funding which will go elsewhere in the country if we do not secure it in conjunction with Devon Community Foundation and Cornwall Community Foundation.
Last month we launched the Dinner 4Good fundraiser, supported by the region’s celebrity chefs, who are encouraging readers to host their own dinner parties either by using celebrity chefs’ menus or their own.
Michelin-starred chef Michael Caines of Gidleigh Park in Chagford and ABode, Exeter; Mitch Tonks of the Seahorse, Dartmouth; Jason Hornbuckle of Lewtrenchard Manor, near Okehampton; Paul Wadham of Hotel Tresanton at St Mawes; and Neil Haydock from Fifteen Cornwall, at Watergate Bay, have supplied their favourite menus and recipes to inspire readers to hold their own dinner parties.
Using the website, www.dinner4good.com, readers can mail out invitations to guests and receive donations online.
If you would like to Think Local and help the WMN raise this much needed cash boost, contact deputy news editor Eleanor McGillie at thinklocal@westernmorningnews.co.uk, or by calling 01752 765538 to discuss ideas.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Olympic tourism opportunity for holiday let firm
13-01-2010
A LUXURY holiday lets firm has agreed a deal to market 50 apartments in the heart of what is likely to become an Olympic tourism hot spot.
Brixham-based Blue Chip Vacations has already begun taking bookings for the first single story, duplex and triplex apartments to have become available near the 2012 sailing venue, in Portland, after entering a marketing deal with London-based property developer, Comer Homes.
Blue Chip Vacations will take a quarter of Comer’s Ocean View apartments – currently being fitted out – in tranches of 10 between now and 2012.
They have begun to market them as luxury self-catering units, with an eye to accommodating competitors taking part in the Olympic and Paralympic Games, as well as sailing events held in the lead-up to the major sporting events.
Blue Chip’s head of property portfolio Philip Newnes said: “Ocean Views overlooks the Olympic course and some of the best sailing waters in Europe, making it a prime location for visitors, competitors and sailing fans looking to stay on Portland.”
Weymouth & Portland Borough councillor Howard Legg said the accommodation would also benefit the region’s high-end tourism market.
“Combined with a growing interest from sailing competitors and support teams who have been looking for accommodation close to the 2012 sailing course, these new self-catering apartments will help to meet a very real demand,” he said.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Sales hike boost for housebuilding group
13-01-2010
By Catherine Barnes
CONSTRUCTION and housebuilding group Galliford Try has been “very encouraged” by half-yearly figures indicating a hike of more than £40 million in sales.
In its trading update ahead of the publication of its results next month, the construction plc said total sales on reserved, contracted or completed properties within its housebuilding sector stood at £324 million on December 31, compared to £281 million the previous year.
It added that while the housing market had provided an opportunity for cautious optimism, the spread and depth of its construction business across its market sectors would continue to be a key strength.
It said cash generation within its contracting business was “excellent” with the group holding net cash of around £100 million, compared to £34.1 million in June 2009.
The firm said the housing market had continued to demonstrate a stability that returned during 2009.
It said 638 homes were completed in the period, at an average selling price of £181,000, compared to 964 units last year, at an average selling price of £171,000.
It said lower unit completions in the first half were a result of “minimal stock levels” at the start of the financial year, as a follow-on to a reduction in capital spending in 2008/09.
Last month, the group – which owns Newton Abbot based Midas Homes and Gerald Wood Homes of Totnes – said it has continued to make “good progress” in bringing land acquisition opportunities to fruition, following the raising of a net £119 million in the rights issue that was completed during October.
This includes 156 plots with the £200,000 acquisition of award winning Truro-based Rosemullion Homes, announced in December.
Galliford’s total land bank stands at 8,800 plots of which it said 3,200 plots were acquired under current market conditions, since the start of its last financial year in July 2008. It has also agreed to acquire a further 1,600 plots.
Galliford Try is one of six organisations to have been selected as a delivery partner on all three of the Homes and Communities Agency’s (HCA’s) development partner panels, which will develop affordable and private housing on public sector sites across the whole of England.
The group said the move had given its affordable housing and regeneration business a “significant advantage” in securing new development opportunities.
It has been allocated £31 million of Kickstart funding from the HCA’s housing stimulus package.
The group said its construction business continued to perform well in challenging markets, with a “resilient” contracting order book standing at £1.75 billion – 3 per cent higher than at the same point last year. Almost 90 per cent is for public and regulated sectors, with 92 per cent of anticipated revenues for the financial year to June 30 secured.
In November, the company announced it had submitted an appeal to the competition appeal tribunal, following an £8.33 million fine imposed by the Office of Fair Trading for cover pricing which took place in the early 2000s.
Galliford Try said exceptional provision will be made for the financial penalty in financial statements for the half year, due on February 24.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Peter McGahan: Sovereign debt crisis looms
12-01-2010
A NEW year, a great year? Unfortunately not. This column accurately predicted the inevitable back in 2007, and how that would run out in time for an election, and the very real potential of a hung parliament. (By the way prepare for lots of media coverage on that subject).
Politics are very political. In 2007, Mr Brown was (probably as any politician would have been at the time) under big scrutiny. It was clear a recession was on the way. With that much excess in the system, an inflated economy would inevitably cause a bubble. Faced with an election in 2010, I figured they would use the old skill of bringing forward an outcome. If you know something is inevitable, bring it forward.
And so all the headlines from the chaps at the top were about very difficult times ahead. 'The UK needs to brace itself' and so on. One minute we were all told to be happy then we were all told to be sad. One minute all the different folk at the 'house price index' say house prices are rising then they are falling. The power of the media.
And so with the recession brought forward, the timing of when to drive us back out was the next key. Eighteen months ahead of an election is the prime time, as that is how long it takes for any changes in fiscal policy to make their way through to the economy in full. Sure enough, with more timing than an 'x' factor singer, we had both quantitative easing and record low interest rates thrown into the system.
The next few months will be about winning an election, and the following couple of years will be about paying for that. So expect a nice run through over the next months. Expect news that we have been taken out of recession sometime over the next few weeks. Expect inflation to return and with it a threat of interest rate rises. We might even have a rate rise with the self appointed 'gold star' being the fact they have had to do it because they have been so successful in taking us out of the state we were in.
Then the pain will start. I might be cynical in thinking that capital gains tax was reduced to 18% at the same time that many other allowances were discontinued, only for the next budget to bring capital gains tax back in line with other taxes i.e. why would you have income tax at 50% and Capital gains tax at 18%. Watch out for that, and if you are thinking of selling assets I would approach your accountant to chat through the timing of any sale.
If you are a higher rate tax payer, what fun you will have. Mr Darling who announced higher earners will 'have to contribute a bit more' only 'while we resolve this situation' made the mother of all gaffs last week when he announced (mistakenly) that the higher 50% tax rate has been factored into the budget until 2015.(1) The higher earners will expect to pay £10.7b more over that period. Whilst that mightn't worry those under the higher rate tax barrier, most have seen that taxing brains doesn’t achieve much, as the better brains leave the country, or simply find the right adviser to mitigate the tax. There is always a way.
All this is coming at a time when PIMCO, the world's biggest bond house is preparing to sell off its UK Gilts.(2) Hmmm. The potential for a sovereign debt crisis looms large. This was always a risk, a risk we mentioned here in this column on countless occasions and the inevitable sell off of gilts will not be favorable. Gilts are seen as a benchmark rate for lending. The drive upward will not be favorable for the borrowers as gilt prices fall and the yield rises. PIMCO rated the probability of a UK downgrade to 80%. If it happened the U.K. would have to pay more for its foreign debt driving us further into the mire.
In the meantime however, equity investors are having a field day. In November '09 the investment management association announced that private investors bought £2.4bn unit trusts and OEIC's breaking the previous record of 2000.(3) Happy new year.
If you would like investment advice call Peter on 0845 230 9876, e-mail info@wwfp.net
(1) Daily Mail
(2) The Telegraph
(3) The Telegraph
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Finance deal agreed to upgrade wind farm
12-01-2010
By Catherine Barnes
THE company behind Delabole Wind Farm has secured £11.8 million funding to begin construction work on four giant wind turbines.
Good Energy Group said that a £9.6 million debt finance package from the Co-operative Bank, combined with £2.2 million equity from its own resources, was now in place to enable work to begin on “repowering” the North Devon site.
Final planning permission for the work, which will see Delabole’s 10 existing turbines replaced by four 357ft (110m) windmills, came through at the end of last month, after council approval was given in December 2008.
The building project is expected to be completed towards the end of this year.
The repowering of Delabole will see the 10 existing 162ft (50m) turbines replaced with the four, more powerful, Enercon turbines which, said a Good Energy spokesman, would harness the wind more effectively.
With a total combined capacity of 9.2MW, the turbines will increase the wind farm’s output by roughly two-and-a-half times, enough to supply more than 7,800 homes.
A spokesman for Good Energy said that there had been “few objections” locally to the proposed upgrade, which, he added, would take up a smaller surface area than the present turbines.
Good Energy chief executive Juliet Davenport said: “Increasing the capacity of Delabole will help contribute to Cornwall’s renewable energy targets, increase price stability for our customers and take another step in helping the UK reduce its carbon footprint.”
The repowering of Delabole is Wiltshire-based Good Energy’s first wind farm development project.
The company said it was currently “actively progressing” a pipeline of further investment opportunities.
Co-operative Bank business development manager James Sutcliffe said: “Delabole is a very exciting opportunity for our renewables team.
“We are very pleased to be working with Good Energy Group on this project and our aim is to utilise the experience gained from working with them going forward on other similar projects where there is an established demand for funding for such schemes.”
Delabole Wind Farm, the UK’s first commercial wind farm, began generating in 1991.
More than 26,000 homes and businesses across the UK now source their electricity through Good Energy, according to the company, which is unique in the supplier industry by buying and selling only 100 per cent renewable energy.
By paying them for the energy they produce, Good Energy also supports a pioneering community of more than 1,000 independent renewable generators that use wind, small-scale hydro, solar power and sustainable biomass to generate heat and power.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Students benefit from universities’ Flybe link
11-01-2010
FLYBE has teamed up with universities in the Westcountry to offer a foundation course designed specifically for the airline industry.
The airline is partnering Exeter College and the universities of Plymouth and Exeter to create the Partnership in Education project.
The project, which officially launches next week, will provide a “suite of qualifications” including leadership, management, airside operations and engineering.
Wendy Purcell, vice-chancellor of the University of Plymouth, said: “Partnership in Education is an exemplar of Government policy that advocates higher and further education institutions working together with British industry.
“By partnering Flybe, we have gained a unique insight into their educational needs, and from that we have been able to create a model that satisfies their requirements, but can also be applied across any sector with demands for work-based training to higher education level.” Last September, FlyBe announced that it has secured funding for a £24 million training academy in Exeter, which is expected to be completed in March.
Simon Witts, Flybe’s director of safety quality and training, said the new courses – many of which will be held at the academy – would help position the South West at “the very forefront of industry sector training worldwide”.
He added: “These critically important new foundation degree courses have only been made possible by the close co-operation of the key partnerships forged with the eminent educational institutions involved.
“As we move towards the reality of opening our own Flybe Training Academy, the prestige added to this new institution by these industry-specific foundation degree courses is yet another important milestone.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
£89m new look for city’s skyline
11-01-2010
AN £89 MILLION development that will transform the Plymouth skyline has begun in the city centre.
Demolition of the old TSW television studios and Foot Anstey offices at Derry’s Cross started shortly before Christmas. Two hotels, student accommodation and shops will rise in its place, with a 31-storey tower block at the heart of the Oceanique scheme.
“It will help the renaissance of Plymouth, which did falter slightly with the recession,” said Lawrence Butler, of Falmouth-based Devington Homes.
Demolition is expected to be finished by early April. Ian Hurst, demolition manager at contractors Ashcroft Group, said the icy weather had delayed work.
“The next thing will be to dig a great big hole in the ground and start pouring concrete into it,” Mr Butler said. “It’ll be this time next year before it reaches the level of what will become a boulevard through the development, and we can start building upwards.”
The first building to be finished will be a 170-bed five-star hotel on the Crescent, followed by a budget hotel with 140 rooms. Devington Homes will also build 182 student apartments.
The last part of the project will be the tower, which will contain 109 apartments for sale, with shops underneath.
The project was given the go-ahead in May, under the city’s Market Recovery Action Plan, designed to kick-start developments stalled during the recession. The scheme replaced an earlier version incorporating more luxury apartments and offices.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
They’re queuing up for Alfie’s red sledges
11-01-2010
SALES were certainly not on the slide for a Cullompton business which seemed to be one of the few beneficiaries from the heaviest snowfall in decades this week, writes David Shepherd.
While a number of retailers battened down the hatches as showers continued on Wednesday morning, Alfie Dolbear raked it in with sledge sales. Customers drifted in to his discount store on Fore Street where a total of 216 sledges were sold on Tuesday and Wednesday morning alone, at £8.99 apiece.
The businessman, whose plastic sleighs brought in a total of more than £1,900 over the two days, arrived at his outlet to find a queue of people at 8am on Wednesday who were all keen to hit the whitened Mid Devon hillsides.
A total of 500 sleds have been sold over the past three weeks after he stocked up on surplus supplies from wholesalers.
Mr Dolbear, 63, who has run Alfie’s Bargains for 35 years, said: “I sold 94 on Wednesday and 120 on Tuesday, but I had loads of people queuing up and I only had 80 in the shop so I had to get back in the van go and back to my shed and pick up some more.
“But I have had these in stock since February as I was offered a special deal because nobody wanted them, so I sat on them since then as I knew the snow had to come at some point.
“Up to a fortnight ago we also had blue, but now customers can have any colour they wanted as long as it is red,” he added.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Peter McGahan: Explaining insurance funds
05-01-2010
Is there really that much difference in performance between investment funds or are they all much of a muchness as I have some investments and pensions and I have no way of knowing whether or not I am getting the best performance for my money or not.
That’s an interesting one. Let me give you a really quick example by using the 'cautious' sector, why everyone should immediately look at who their money is invested with and look for independent investment advice.
Let's take an investor who has decided to invest into a cautious managed fund in pursuit of protection of their assets. The investor's general expectation would be that the returns would be broadly similar across most funds. Unfortunately not. Over the last year you would have had some very interesting results.
For example Marlborough fund managers have a fund that is down -12.4% over the last year with its MFM Tait Walker cautious fund.(1)
That may not seem to be much of an issue but when you see the average for the sector is +16.8% and that only two other funds have lost money over that year out of 168, you may think it peculiar. The best two funds returned 43% and 31% respectively. And so an investor in the best fund would be 85% better off than the worst fund for that one year!
Such disparities should not occur in a sector that is supposed to be cautious, yet they exist.
Similarly on a study of risk, the difference is immense. The riskiest fund, as measured by Standard deviation over five years, carries 221% more risk than the most cautious fund.(2)
If you look over five years the numbers are even more interesting. Top of the 'I didn’t do a thing with your money' list is AXA defensive distribution with a shocking -3.3% return over the period when the sector average was 18.8%.(3) Consider the poor folk who have over £132m invested here have the joy of an annual total expense ratio of 1.64% for the joy of losing that much money.(4)
A really useful measure of a fund is something called Sharpe ratio. In simple terms, Sharpe ratio measures how well the return of an asset compensates the investor for the risk taken. And so it’s a measure I rely on when ascertaining which funds to purchase or not to purchase for investors.
So consider what happens when I ascertain the worst Sharpe ratios over the five year period i.e. those funds who add least value for the risk taken. Ranking very highly in the 'we really haven’t done very well top 20' are some high profile names. Joining AXA are: three funds from Santander (was Abbey), two funds from a Barclays legal and general fund, one from Norwich union (Aviva), one from Lloyds (Scottish widows) and HSBC.(5)
As if banks haven’t had a bad enough time overcharging and making inappropriate decisions, here they are providing the worst value for the risk they are taking with investments.
And the charges are not too favourable: For example the Scottish widows balanced fund has a total expense ratio (basically the total charge) of 2%.(6) The Legal and General (Barclays) balanced portfolio trust has an even worse total expense ratio of 2.05% per year.(7)
Investors are also being subjected to an age old tradition of up front charges that they don’t need to endure. For example HSBC income fund of funds has an up front fee of 4%, and that is one of the cheaper options.(8) Three years ago we moved most of our customers to a system that enabled them to buy all their investments at cost (c0.3%), yet customers within these banks' funds are still being subjected to brutal costs and investment capability.
Seeing as the decade I have dubbed as the naughty noughties are out of the way, perhaps in the 'ones' investors will put oneself first.
If you have a query regarding a fund that you would like to ask Peter about call 0845 230 9876, e-mail info@wwfp.net
Source:
(1) Trustnet
(2) Lipper
(3) Trustnet
(4) AXA
(5) Lipper
(6) Scottish widows
(7) Barclays Legal and general
(8) Digital look
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Peter McGahan: Paying through the nose
28-12-2009
Am I better paying my independent Financial Adviser via a fee or commission?
The answer here relates to any financial adviser rather than just an Independent Financial Adviser.
There is a perception in most people's eyes that if they have not actually paid out a cheque for financial advice that they have indeed got it for free. It will undoubtedly be the most expensive free lunch you will ever have purchased. Read on.
I'll cover the shocking costs in a moment but firstly, let us remember that the FSA have changed this and within the next couple of years an adviser will only be allowed to be called independent if they charge a fee.
In the meantime consider that when you approach a financial adviser, you expect advice. If a financial adviser is compensated for the 'advice' you are given only by way of selling you a financial product, how can that be good for you from an independence point of view.
I analysed three months of recent work and found that after a review of the prospective clients' needs and aspirations, as well as a two-hour conversation about risk, 38 per cent of customers did not need a product of any shape or form.
Interestingly, 41 per cent of those actually needed to stop a policy which had been sold to them through an 'adviser' (the definition of which is: one who gives advice; a fortune teller).
If this is the case most advisers would be giving their advice for free as they would be receiving no commission. There is no way that will happen.
As a consequence, the motivation to either sell a product or even 'churn' one (stop your existing policy and start a new one) is very high.
That covers off the motivation aspect but consider also the actual costs to the customer. A fee based adviser is typically a specialist adviser in that they will be highly specialist in one particular area rather than a generalist. As such the adviser is likely to be able to locate the correct solution very quickly rather than having to research the entire market place whilst charging you for this inefficiency.
Moreover, let's look closely at the actual costs of financial products. I will look at three aspects here: Life insurance, investments and mortgages.
Life insurance: If a 40 year old took out some life cover for £50 per month with commission attached, the total life cover is £328,626. If they had used a fee based independent financial adviser, the total cover would be over a third more at £444,428. (1)
Investment: If you purchased an investment bond via a bank or financial adviser the typical cost would be c10-11% including fees for set up and commission. The vast majority (99%) of what I see is an investment in an investment bond, which is the highest commission paying, but the least tax efficient product you can buy.
If you bought a unit trust or ISA, the typical set up fee is c5.25%, of which an adviser is paid 3% commission. In both these situations a fee based adviser would have no up-front costs and even if they charged you 3% set up fee, the savings to you are colossal.
Most quality investment advisers have access to the best products and unit trusts at virtually zero cost (there is always a creation price of c0.3% on an investment).
It is also quite common practise for an adviser to return every five years and move a product around (churn), thereby generating a new set of charges and commission for themselves which is invariably disguised with something contrived called extra allocation (another practise which will be shortly banned by the FSA).
Mortgages: Today, rates are not competitive and invariably many banks are not paying commission to mortgage advisers. The best rates are often achieved by the customer going direct to the bank some of which do not offer certain mortgages via a financial adviser. A fee based adviser would be charging for his service and would simply direct you to the best lender.
If you have a financial query or would like to see if you are being overcharged call Peter on 0845 230 9876, e-mail info@wwfp.net
Source: (1) The exchange
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Initiatives to benefit from European cash
22-12-2009
By Liz Parks
TWO separate Cornish projects have been awarded a total of more than £500,000 in convergence funding.
A bid to back business growth in the environmental goods and services sector by offering higher level skills training and advice to more than 200 employees and managers, is to receive almost £500,000 of European Social Fund convergence funding.
And an historic former dairy building in Penzance is to be converted to provide high spec, flexible, office accommodation with support from European Regional Development Fund convergence funding.
The skills project, Strengthening the Environmental Sector, is being delivered via the Learning and Skills Council which has awarded the contract to Cornwall College.
The college will use partners – Rezolve Kernow, Cornwall Development Company, Global Action Plan and Environment Kernow – to deliver the project which will include conferences, seminars and bespoke training to address skills gaps in the sector.
The project will target those involved in businesses and organisations including those involved in life sciences, marine and coastal, food and renewable energies. It will also support businesses diversifying into the sector and aims to strengthen the newly-formed Environmental Skills Network.
Mark Williams, ESF director for the Learning and Skills Council South West, said: “We are focusing on core aspects of training within those business areas central to the longer term economic potential of Cornwall and the Isles of Scilly.
“The environmental sector in Cornwall is growing and it is very important to support that with the specific skills the industry needs. This particular project will also help to ensure knowledge and skills keep pace with convergence research and infrastructure investments.”
Meanwhile, a former dairy building in Penzance is to be converted into flexible office space with support from the European Regional Development Fund arm of the convergence programme.
The Dairy Knights building, in Belgravia Street, will be converted to provide 168sq m of office accommodation with high speed broadband access.
The completed development will provide offices for up to 13 people. It is estimated the work will be completed in February 2010. The project, worth just over £241,500 has been approved for just under £90,000 from the ERDF convergence programme.
The project will be delivered by BBCB Ltd – a company which has worked on the conversion of a number of older buildings in the town including Leskinnick House and the former Meeks Emporium.
Neil Badcock, BBCB director, said: “This investment has made all the difference and without it the project and the resulting employment space would not have happened.
“We are very positive that there is demand for high quality office space in Penzance.”
Carleen Kelemen, director of the Convergence Partnership Office for Cornwall and the Isles of Scilly, said: “Higher quality workspace is key to supporting the growth of higher value businesses in Cornwall.
“Turning our historic buildings into workspace fit for the 21st century will give tenant businesses a unique offer to achieve a more competitive edge.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Peter McGahan: Pain-free Pre-Budget Report
22-12-2009
A Pre-Budget Report just before an election is never going to be too painful. If we expected anything other than vote winning ideas we were unrealistic in our expectations.
Such was my lack of interest; I avoided doing any of my normal phone ins and newspaper/website contributions and went to watch Snow Patrol with the children in Belfast. It seemed like a good gamble and it worked.
The Pre-Budget Report could be summarised via vote winning attacks and that's about it.
It's easy to tax and attack the rich and invariably the rich are the only ones who complain. But we have to think for a moment about why taxing brains may not be the best attack. Faced with the choice of setting up in business in Macedonia or the UK, one might feel a little inclined to trot off to the country that is a stone's throw from Greece and the beautiful Adriatic.
Personal tax is only 10% for both individuals and companies, who also enjoy 0% on any retained profits with only profits that are distributed being liable to tax.
With Labour costs at €428 per month you can see why companies may well consider it as a better alternative and the brains head Southeast.(1)
Interestingly, incentives in the Technology Industrial Development Zones (TIDZ) has put tax at 0% for the first ten years, no Vat and customs duties for export production and a subsidy of up to €500,000 towards building costs!
So why would someone with brains want to stay here and be taxed to high heaven? I hope Mr Darling has thought that through, but if recent reports are correct, he may well have landed us all with a bigger tax bill for the future. As the brains disappear, someone else has to pick up the slack and it will be the middle earners (basically all of us in work) that will foot the bill.
A leading UK money broker has now reacted by offering to assist its entire staff in relocating elsewhere in the world to avoid the tax being paid. That doesn't seem illogical does it?
But in our keenness to hate the rich we need to understand that we all play our part in paying fair and reasonable taxes to keep the world spinning.
Without a fair tax regime, you repel entrepreneurialism, brains and solid hard working people.
Admittedly the 50% super tax is only being levied until April on bonuses over £25,000 but this appears to be supported by the Conservatives and may signal a time for these companies to pack up and go.
Now whilst these banks are saying that people and capital are easily mobile, they will need to remember (when they are mid rant at a press conference) that our bank accounts are much more mobile than they are.
Much of this concern is actually relating to the feeling we, as tax payers have given the banks the capital so they shouldn't be paying bonuses.
Hardly. What has in fact happened is that banks have been supported or protected with capital which is simply a digital transfer of information on a screen at best.
The banks however have used this opportunity to now charge higher interest rate margins. Whilst base is sitting at 0.5%, typical commercial deals are being offered at 4.5%.
The customer is also being charged a hefty 2% fee ingoing and often an exit fee. It's hardly appropriate.
After a few years the banks will pay back their debt or relinquish their support, the government will take credit for that and the tax payer will be content. The true pain however will have been felt via the unsuspecting businessman who has paid through the nose for access to finance, and those battered by falling sterling such as overseas holiday makers and importers of goods where sterling's demise has crippled the costs.
All of this noise will have gone unnoticed in the pursuit of a hung parliament.
If you have a business finance query or problem call Peter on 0845 230 9876, e-mail info@wwfp.net
Source: Investinmacedonia
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Peter McGahan: Getting business finance support
15-12-2009
My bank is telling me that it is still very active in lending in the commercial market but they are not supporting me and my commercial finance broker is struggling to assist me with my business finance. Are banks really being more relaxed with their lending or is this all hype?
Unfortunately banks haven’t really loosened their approach to lending that much; but expect to see things change soon. With financial Armageddon avoided and bank reserves heading north, things can only get easier for the business borrower.
Consider, however, the other potential solutions that are available to the business borrower.
Let me give you a few scenarios that we have come across in the last few weeks with readers; but first let me explain what a commercial broker can be: By and large (nearly every situation I have seen) a commercial broker offers advice on just commercial finance and there is no requirement under their ‘regulator’ to be independent, nor are they allowed to give any advice about any financial product you may have such as your self invested personal pension, your investments or tax position. This does not fall within their scope of advice and they are not trained to give this advice.
This is particularly worrying in that a pension is often the best way to buy your commercial property and a residential mortgage can often be the best place to raise deposits or finance yet the commercial broker in the above instance will not be able to assist.
An independent financial adviser is required to give independent financial advice but most importantly they can look at every potential solution as the examples below will show:
A reader called us asking if he could raise cash for his business. He owned his commercial property with a mortgage but his bank would lend him no more. He hated pensions yet his pension fund had nearly enough to buy the property from him. So we used his pension and raised a small mortgage inside his pension so it had enough money to buy his property and he now pays a rent to his own pension. He now has a tiny borrowing within his pension, has £112,000 in his bank account and can communicate rather differently to his bank, who now owe him.
In another situation we had a business owner who had a residential mortgage and he also had a director’s loan account within his business. A director’s loan account is where the business owes the director money either through capital he injected or through income perhaps he has not taken; but clearly already been taxed on. Directors tend to leave the cash in the account to assist with cash flow.
We advised he take the director’s loan account from his business, then repay his personal mortgage. He would then take out the same mortgage and inject back into the business. The net effect is the same in that he now has a mortgage of the same amount and the director’s loan account is the same value.
However, because it can be seen that he has injected this cash into the business he will now be able to claim tax relief on the mortgage interest payments. Cute.
All too often business' approach their bank in a position of weakness. For example they approach a bank with too small a deposit and as such the rate and terms are hiked northwards. If they had raised cash through their pension or even against their residential property (often at much more competitive rates) they would be in a position of power to negotiate the best fees and terms.
Furthermore we are now seeing many more foreign banks come to the market place. Of the most active in London are the German and Asian banks with Germany being easily the biggest players. With 85% of all transactions being overseas, it’s easy to see why.
I hope that helps but in simple terms make sure you seek Independent advice from someone who can cover all areas in-house.
If you have a business finance query or problem call Peter on 0845 230 9876, e-mail info@wwfp.net
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Flybe reopens its flights to Norwich
15-12-2009
FLYBE has reintroduced a route from Exeter to Norwich which was previously dropped due to a lack of demand.
The link from the South West to East Anglia was ditched from the airline’s winter schedules in 2008 and was not revived for summer this year.
But tickets have now gone on sale for flights which will operate from Sunday, May 23, to Sunday, September 26, 2010.
The route – which was deemed “economically unsustainable” less than 18 months ago – is one of five from Exeter which are making a comeback in the summer schedules.
Flights to provincial French destinations Rennes, Avignon and Bergerac, as well as the Croatian city of Dubrovnik, will return again next summer after proving sufficiently popular with passengers earlier this year.
The announcement of the airline’s full summer schedule means Flybe will operate a total of 20 summer routes from Exeter, with 226 flights a week.
It follows the news of a brand new through-running route from Exeter to Hanover via Newcastle, which will operate three times a week beginning on March 31.
Mike Rutter, Flybe’s chief commercial officer, said: “We’re delighted to be able to offer our Exeter passengers a choice of over 200 summer flights a week next year.
“We are committed to ensuring that Flybe offers an extensive range of affordable quality flights to the widest possible range of attractive destinations.”
Confirmation of the routes was welcomed by Exeter Airport’s commercial manager Jonny Rayner, who said: “Flybe really do offer a fantastic choice from their home base here at Exeter.
“It is great to see the full portfolio of routes continue in 2010 together with the additional link to Germany. This really shows the resilience of the South West market. We predict abundant demand for these destinations and a boost to inbound tourism for the region.”
At the time it was announced in July last year that the Exeter to Norwich route was being withdrawn, a spokeswoman for Flybe said: “We have introduced a number of destinations from Exeter and while we are keen to maintain as many as possible, it is simply not possible to continue with routes that fail to produce passenger numbers and are economically unsustainable.
“Flybe remains committed to growing its routes out of Exeter International Airport.”
Across the whole of its network, Exeter-based Flybe’s summer 2010 schedule includes 16 brand new routes, meaning the airline will operate a total of 3,738 flights a week.
Mr Rutter said: “In an environment in which other airlines are withdrawing services, we’re delighted to be offering close to 4,000 summer flights a week that include the operation of another 16 brand new routes.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
£100m shopping spree
13-12-2009
By Liz Parks
A FIFTY per cent stake in Exeter’s Princesshay shopping centre has been sold to the Crown Estate for almost £100 million.
Land Securities has now exchanged contracts with the Crown Estate on the 530,000 sq ft scheme which is home to more than 60 units featuring retailers including Debenhams, Topshop and Zara.
It is the first retail property acquisition in the Westcountry for the Crown Estate, which is broadening its London-centric property portfolio.
Land Securities will retain a 50 per stake in Princesshay and will continue with its property management role in the development, including its relationship with retailers.
The property giant has said it still intends to lead on any future development around the bus station.
It is understood that the Crown Estate will effectively act as a silent partner in the shopping centre.
Paul Clark, director of investment and asset management at the Crown Estate, said: “This acquisition forms part of a focused diversification strategy to reduce our central London weighting and we are delighted to be involved with such a high-quality, sustainable, city centre scheme.
“Joint ventures like this are increasingly attractive for us.”
Richard Akers, retail managing director for Land Securities, said: “The sale was agreed in July as one of the last disposals in our retail sales programme. We will continue to manage the retailer relationships established in Exeter and will use our development expertise to lead any future development activity for the centre.”
Exeter retail bosses said that the sale would not affect the day-to-day running of Princesshay.
Princesshay centre director Wayne Pearce said: “We’re delighted to enter into a mutually-beneficial partnership with the Crown Estate. The Land Securities team here in Princesshay will continue to deliver the best for our customers and retailers by handling the day-to-day management of the shopping centre.”
Exeter city centre manager John Harvey said: “I think it is helpful and healthy to have the Crown Estate now involved in the city centre. I’m not expecting that this development will have an impact that people would necessarily immediately notice.
“The Crown Estate is clearly a very significant player and, therefore, one could only conclude that it’s a welcome position that they are now involved in the city centre as it moves forward.”
While the Crown Estate has a strong commercial property portfolio across the UK, it has a much smaller presence in the Westcountry, with its main asset being much of the foreshore off the Devon coast.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
West flight academy construction begins
08-12-2009
BUILDING work has started on a multi-million pound training academy next to Exeter International Airport.
During a turf-cutting ceremony to mark the start of construction of the £24 million Flybe building, aviation minister Paul Clark described it as a major boost for the both the local and national economy.
The Flybe Training Academy is scheduled to open late next year. Once complete it hopes to provide world-class training not only for its own staff but for the airline industry as a whole.
The building, being designed and built by local firm Rok, is being part-funded to the tune of £4.3 million by the Learning and Skills Council’s new Capital Specialisation Fund with a further £2.8 million contributed by the South West Regional Development Agency, with Flybe footing the rest of the bill.
The 25-classroom academy will house up to four flight simulators and an apprentice workshop. It is being built on a 12-hectare site off Long Lane and will create around 200 jobs.
During his visit Mr Clark said: “I am delighted to see for myself the excellent work being done by Flybe and others to invest in its future.
“Our country has a proud aeronautical history, and I believe it also has a bright future. But we need to ensure the right skills are in place to deliver the high-quality workforce the industry needs.
“This new academy will present an exciting opportunity for all involved, and will be good news for the local economy and the country as a whole.”
Months prior to becoming the first UK airline out of 150 leading UK companies to sign the Government’s Skills Pledge in June 2007, Flybe had already announced its intention to replace its outdated training accommodation with an academy to incorporate flight simulators and an independently owned 160-room hotel.
Jim French, Flybe’s chairman and chief executive officer, said: “We are delighted that the Minister is here with us to share this important moment and officially mark the start of building of our world-class training facility.
“This major investment into training and skills’ development reflects a commitment that is very close to our hearts; it is a necessary component to the sustainable development of our company and staff.
“In today’s competitive global economy, it is vital to create and retain a highly skilled workforce to succeed and survive.”
Rok’s construction leader in Exeter, Bruce MacDonald, said his team was extremely proud to be working on such a prestigious and high-profile project for the region.
He said: “We have been doing plenty of ground work with Flybe to ensure the building fulfils its aspirations for a first class, environmentally sound facility for nurturing the much-needed skills of the future.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Boatbuilder to re-hire
08-12-2009
By Liz Parks
BOATBUILDER Princess Yachts is set to re-employ more staff in the New Year as it begins work on larger craft at its new Devonport base.
The Plymouth-based firm has already announced it will be re-hiring 20 staff who were made redundant earlier this year.
Now, with work at its new 15-acre waterfront site at the South Yard under way, the manufacturer is set to re-hire more skilled staff in January.
Managing director Chris Gates said around 70 staff would be working at the new site from January.
The firm has already spent around £1 million refurbishing and remodelling facilities in the yard in readiness for production of new 32-metre boats.
Princess Yachts has identified larger yachts as a key potential growth area for future sales.
But Mr Gates warned while the firm was optimistic about the future, it was still feeling the effects of the recession.
He said: “The economic environment is getting tougher. One of the things we have had for many years is a long order book. It’s normal for us to have a 12 to 24 month order book that has cushioned us. Now, that’s down to six to nine months which is more uncomfortable.”
Mr Gates said the firm was also facing competition from international rivals who had not moved swiftly enough to cut product levels and were heavily discounting their older models to achieve a sale.
“We need to take on some more staff in the not too distant future to enable us to grow into large craft – the 32m and 40m – but we are going to be very cautious,” he said.
Mr Gates was speaking as he signed an agreement with the Unite union to give employees access to more training opportunities.
Princess Yachts is to create a dedicated learning centre at its Coypool base where it will give employees access to PCs and learning materials so they can develop new skills in areas relevant to their jobs and elsewhere.
Princess Yachts will work with training providers such as City College Plymouth and the Sector Skills Councils to provide the training.
In January, a steering committee made up of management and employees, Unite representatives and City College Plymouth representatives will be set up.
The committee will develop the learning strategy, oversee its introduction and monitor its progress and by mid February, it is hoped that a funding bid will be in place.
Dave Springbett, regional officer with Unite, praised Princess Yachts for developing the initiative.
“This proactive step by the company is especially welcome in the current climate where many employers are cutting back on their commitment to training employees,” he said.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
New service to Germany by Flybe in the spring
08-12-2009
By Liz Parks
SOLDIERS’ friends and families are likely to among the main users of a new air route linking Exeter and Germany for the first time.
Westcountry airline Flybe will be launching flights between the city and Hanover next spring. The route will operate via Newcastle and will begin on March 31.
Mike Rutter, Flybe’s chief commercial officer, said that friends and relatives of armed forces personnel based in northern Germany were likely to make up a considerable part of passenger numbers on the route, following the success of other Flybe-operated services between Hanover and the UK.
“Because of the large armed forces concentration in Hanover, we have built a large business in getting family and friends over there to visit,” he said.
As well as tourists, business travellers are likely to make up the remainder of passengers because Hanover has a strong light manufacturing base as well as a reputation as a conference centre.
The service to Hanover will run three times a week, leaving Exeter at 7.20am and arriving in Hanover at noon and departing Hanover at 12.25pm to return to Exeter at 3.05pm.
Mr Rutter said he did not believe that passengers would be deterred from using the route because it was via Newcastle.
“We have got a through plane so passengers do not have to get off at Newcastle. They are on the ground for about 20 minutes which is nothing compared to the additional time they would spend if they were trying to go from somewhere else like Heathrow or Southampton,” he said.
With the aviation industry in a state of contraction, few airlines are announcing new routes at the moment.
But Mr Rutter said that Flybe would shortly be announcing more new destinations. “There will be a couple more announcements of new routes from the South West and from Exeter, probably next week – they will be leisure destinations,” he said.
The announcement has been welcomed by Devon’s business community, who said it could lead to increased tourism revenue and the chance to build better business links with northern Germany.
Exeter International Airport’s managing director, Jamie Christon, said: “Links to Germany have been on our wish list for many years and this route to Hanover looks set to please many travellers from the South West.
“There has been a gap in the market and we are delighted that Flybe is able to provide a service that will also bring extra in-bound tourism to the region.” Derek Phillips, chairman of Exeter Chamber of Commerce, said it would help bring inbound tourists into the region.
“Because of the Rosamunde Pilcher books there are quite a number of German tourists who want to visit the Exeter and Devon areas,” he said.
“We would hope to pick up more tourists because we know that the Westcountry is very popular with the German market.”
Tim Jones, chairman of the Devon and Cornwall Business Council, said: “The business community should now be looking to see what sort of doors could be opened by this, it’s not just about tourism, it’s a great opportunity to see what’s there.
“We need to be much more aware of opportunities in northern Europe. We already do a vast amount of trade with northern Europe and the indications are that this is where the future should be.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Don't forget your consumer rights this Christmas
07-12-2009
THE Christmas shopping frenzy is now in full swing but in the midst of all the excitement, Cornwall Council’s Trading Standards team are keen to remind people of their consumer rights.
What are the rules when returning unwanted gifts; are you protected in the same way if you buy on line; and, as the sales approach, what consumer rights apply to items bought in the sale?
Stuart Benson, Cornwall Council Public Health and Protection Service, Area Manager said: “The Know Your Consumer Rights campaign, launched earlier this year, is reminding people of their rights during and after the festive period.”
The key rules highlighted by the campaign are:
Goods must
. fit the description given
. be of satisfactory quality
. be fit for purpose
The Cornwall Trading Standards Team answers some common festive queries:
Do I have the same rights if I buy something in the sales?
Yes. If something is faulty, mis-described or not fit for purpose then it doesn’t matter if it was full price or in the sale – you are entitled to your money back. However, it is up to an individual retailer whether they want to take back an item because you have simply changed your mind.
What about unwanted gifts?
Again, it is up to the individual store whether they want to take back unwanted gifts. The advice is to check with the retailer when you buy the gift. If you are unsure what to buy, a gift voucher might be a better idea but do check any conditions and the expiry date. Some retailers offer a gift receipt to return unwanted gifts so it is a good idea to ask the seller if they provide these.
Do I have any rights if I buy from the internet?
Yes. You actually have additional rights when you buy a gift from an internet retailer. You have a ‘cooling off’ period of seven working days, however there are exceptions to this rule, for example when the gift has been custom made. During this cooling off period, any order can be cancelled or returned without any reason being given and they must give you a full refund.
Buy from well-known companies, those that you have done business with before or those that have been recommended to you. Make sure you have a postal address and telephone number, and have printed out your order and any terms and conditions in case of problems after Christmas.
If my new gadget breaks on Boxing Day who should give me a refund – the manufacturer or the retailer?
When you buy something your contract is with the retailer and not the manufacturer so if the goods are not up to scratch then it is the retailer, and not the manufacturer, who should give you a refund or replacement or repair the item. Return the item to the seller as soon as possible after purchase as your rights to a full refund may diminish as time goes by. Always keep receipts to show proof of purchase should you need to return the goods to the seller after Christmas.
What protection is there for credit card purchases?
If you use a credit card to buy goods or services costing over £100 and up to £30,000, you may be protected under the Consumer Credit Act. This states that the credit card company is equally liable for any breach of contract, so if a problem arises you can claim from the trader or the credit card company.
Stuart adds: “You are much more likely to get a fair deal, save money and get the right result if you are aware of your rights. This is especially important at Christmas when many people are spending money both on gifts and in the sales.”
How can I find out more about my rights?
If you’ve paid for something and you’re not happy, establishing your rights is the first step towards claiming the refund, repair or replacement you may be entitled to. Consumer Direct is a government-funded advice service for consumers and should be your first port of call for practical help with how to complain.
For more information go to www.consumerdirect.gov.uk or call the helpline 08454 04 05 06.
There’s also a quiz on the website where you can test your knowledge of consumer rights and win £150 of shopping vouchers.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Help for businesses struggling with rate increases
07-12-2009
TORBAY Council has pledged its commitment to help local businesses struggling with new business rate increases.
Every five years, the Valuation Office Agency re-values premises that are business rated. The object of this is not to raise more income but to re-distribute rateable values more evenly across the country based on activity in the market rental sector. The government has also re-introduced a transitional relief scheme to phase in changes over the five year life of the re-valuation.
Some premises, such holiday accommodation, licensed premises and petrol filling stations, are assessed slightly differently from other businesses and turnover over a three year period forms the basis of valuation, while for others the data collected is based on the position as at April 1, 2008.
As the proposed rate poundage will decrease by around 14 per cent, some business will pay less rates and transitional arrangements will phase in these reductions.
Torbay Councillor Kevin Carroll said: "While the draft rating list for Torbay shows that 4.2 per cent of businesses have a reduction in their rateable value, over 94.5 per cent will see an increase. The remaining 1.3 per cent will not change.
"It is clear that the data used to inform the re-valuation was gathered before the recession set in, and we will be approaching central government about this to try to get it re-considered.
"We will do everything we can to help local businesses deal with this including support and assistance with appeals and applying all of the statutory relief available. Business Link advisers offer a 90 minute session for businesses and will be working with us, Torbay Development Agency and the Town Centres Company to try and help lessen the impact in these difficult times."
The council are lobbying central government through the Local Government Association and will be preparing an advice leaflet for local businesses. This Will be available in January when the full implications are clear.
The council's Business Rates Team will be visiting the local chambers of commerce to offer assistance and advice. These meetings will take place at Brixham Chambers of Commerce (December 8), Torbay (January 11) and the Business Forum meeting (January 14). A representative from Business Link will also attend and will be able to take away any questions for resolution and response.
The meetings will cover the following topics;
. the actual financial implications of the new rateable values
. the impact on different types of businesses
. small Business Rates relief
. discuss appeals
. answer questions and give general business rates related advice
The council is asking all local businesses to contact their Business Rates Team for advice and support on 01803 207197 or email business.rates@torbay.gov.uk if they have concerns. The Business Rates Team can then do a 'health check' to make sure that businesses are getting all the help they are entitled to.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Yacht launch at boat show
02-12-2009
PRINCESS Yachts International is to reveal its new Princess 72 Motor Yacht at the London Boat Show next month. The Plymouth manufacturer will also be showcasing three of its latest yachts – the Princess 78 Motor Yacht, the Princess V78 and the Princess V56 sports cruiser at the event. Princess said the 72 introduced “new standards in design, space and finish”. The luxury craft features a deep V-shaped hull, infused with resin or weight-reducing efficiency and “poise” at sea. The yacht – which sleeps eight guests and two crew – comes with standard equipment including an integrated navigation system with autopilot and GPS and a large bathing platform which can be lowered and raised hydraulically to launch and recover a tender or “wetbike”. The 72 Motor Yacht has an asking price of £1,904,400 including VAT.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
May Gurney profits up 21% to £8.5m
02-12-2009
By Catherine Barnes
CIVIL engineering and maintenance group May Gurney has reported pre-tax profits up 21 per cent to £8.5 million for the first six months of this year.
The company – which has bases in Bodmin, Exeter, Plymouth, Plymstock and St Austell and about 850 South West employees – said long-term prospects were good, with a “record” £1.4 billion forward order book.
The Norwich-based firm – which provides maintenance and enhancement services to the highways, rail, utilities and general infrastructure sectors – said potential contract extensions were worth a further £900 million.
In 2008, it was awarded a £24 million three-year contract with Western Power Distribution, which delivers electricity to 2.5 million customers across the South West and South Wales.
During the past six months to September 30, May Gurney has secured contracts totalling more than £500 million. Last month, North Somerset Council announced it had agreed an £85 million deal with the firm to manage its waste collection and recycling services over a period of up to 14 years.
May Gurney chief executive Philip Fellowes-Prynne told the Western Morning News that new job opportunities could arise in the area, when the contract comes into play, in April.
Mr Fellowes-Prynne said the South West remained a “key heartland” for May Gurney, despite the loss of 150 jobs across Devon and Cornwall, as a major 10-year project to renovate mains water pipes was completed, this year.
“There is a lot of work in the South West coming forward,” he said. Among the contract bids that May Gurney has submitted is a new contract opportunity with South West Water. “We remain positive about the opportunity to win the work and await the decision with baited breath,” said Mr Fellowes-Prynne.
May Gurney’s most significant bid win over the past six months, was a new highways maintenance contract for Lincolnshire County Council worth up to £350 million.
During the period, its structures framework for Network Rail was also extended by a further two years and across a wider geographical area, with a contract worth of £40-50 million.
May Gurney said the total annual value of its public and regulated sector markets is now £14.9 billion.
Mr Fellowes-Prynne said: “Within the past six months, May Gurney has become the market leader in the UK’s local authority highways maintenance market following the win of the Lincolnshire County Council contract.
“In addition, we now deliver environmental services to 18 local authorities, with two of the UK’s most progressive local councils recognising our environmental services as essential to the delivery of their ambitious recycling and carbon reduction targets.
Despite these significant achievements, we are aware that our clients in the public sector face challenges in the coming years, with the impact of political change and a potential budget squeeze set against the trend of increased demand for ‘essential’ services.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
New managing director runs transport firm
02-12-2009
A NEW managing director has been appointed to run Plymouth CityBus after its sale to Go-Ahead was completed in a £20.2 million deal.
Andrew Wickham, who was previously operations director for Go South Coast, was appointed to the role with immediate effect.
Keith Ludeman, group chief executive of Go-Ahead, said: “Andrew has a wealth of experience in the UK bus industry and I am confident he will build on the strong reputation that Plymouth Citybus has for delivering high quality, locally- focused services for the community of Plymouth.”
The firm’s previous managing director, John Ackroyd, will be taking up a post with Go-Ahead’s operations in London.
The sale was completed yesterday after a meeting of Plymouth City Council on Monday where councillors voted in favour of the deal.
Council leader Vivien Pengelly said: “This is a good decision that will benefit the city and improve our local bus services. Go-Ahead is very well respected in the transport industry and in cities in which they operate.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Irish firm buys up a slice of Somerset
01-12-2009
By Russell Lynch and Catherine Barnes
SOMERSET-based Blackthorn, Olde English and Gaymer Cider have been sold to Bulmers’ Irish parent company C&C in a £45 million deal.
C&C – which owns Magners and the Tennent’s beer brand – plans to add the Somerset beverages to its portfolio of leading labels in the purchase from Constellation Brands.
The company is paying for the deal through a £60 million facility arranged with banks including Lloyds Banking Group.
The sale includes its Cider Mill at Shepton Mallet and Bristol distribution centre, which employ a workforce of around 250 people.
A spokesman for Constellation said: “Transfer arrangements are being worked through for existing Gaymer Cider employees and transitional plans are also being developed jointly by both C&C Group and Constellation.”
Constellation said following completion of the deal in mid-January, it would “continue to support” the cider operation, joining with C&C Group for “up to six months” to ensure the continuity of service for customers and suppliers.
C&C said the deal would strengthen its position in the UK, which is the world’s largest cider market by value.
The addition of Blackthorn will C&C an established mainstream draught cider, as Gaymer and Olde English are mainly sold in shops and off-licences.
It said that Gaymer was the smallest of the firm’s three main cider brands, but had the best potential for growth.
Of the 900 million litres of cider sold in the UK every year, only around a third is drunk in pubs with the rest bought in shops and off-licences.
The Shepton Mallet site is one of only three large-scale cider-making bases in the UK, capable of producing 200 million litres a year.
C&C chairman Tony O’Brien said: “This transaction strengthens our position within the world’s largest cider market and broadens the scope of the group’s existing cider offering.”
Troy Christensen, president of Constellation Wines Australia and Europe, said: “As part of the company’s efforts to enhance the prospects of the UK business, we embarked on a strategy to simplify the business and this is another move towards that goal. For the UK and in Europe, the drive is to focus primarily on wine.
“For Gaymer Cider, a successful and profitable business, the opportunity now exists to develop as part of a business that is focused on the cider and beer sector.”
Peter Spencer, managing director of GCC said: “This represents a real opportunity for Gaymer Cider and the people within the company.
“However, it is business as usual for both organisations for now at what is a very busy time of the year.
“Once the deal is completed we can look to manage the issues of integration and future planning. In the meantime my colleagues and I have a clear focus on our existing plans and business.”
Mr Christensen added: “The Gaymer Cider business and its employees have made an enormous contribution to Constellation over many years.
“The business will be in good hands and will complement C&C’s existing cider and beer portfolio.
“Their track record for growing brands makes this mutually beneficial for both companies.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Airline rejects suggestion of stock market floatation
01-12-2009
EXETER airline Flybe has dismissed reports it is preparing for a stock market flotation next March.
A report in the Sunday Times said the airline would be valued at £300 million and would look to float in March.
The report said Flybe advisers Merrill Lynch has been asked to prepare for a listing next year.
Flybe has been planning to float since 2005 and scrapped plans last year because of the economic downturn.
The company has said it is still planning to float – but not until market conditions improve and IPO (Initial Public Offerings) levels pick up.
A Flybe spokesman said: “Flybe’s business is delivering a robust performance against the backdrop of difficult industry conditions.
“The directors of Flybe are very pleased with these results and with the numerous growth opportunities which the business has options to action.
“Flybe has a long-standing business relationship with Merrill Lynch across a range of advisory and IPO levels transaction services.
“Flybe may consider the possibility of a public listing at some point in the future when the demand for IPOs returns and provided an IPO could be undertaken in the best interests of the company, its shareholders and customers.
“Flybe will continue to monitor this situation.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Airport to sell more land
01-12-2009
By Liz Parks
A FURTHER slice of land at Plymouth City Airport will be sold off next month in the second phase of a deal agreed with airport leaseholders Sutton Harbour Holdings.
The AIM-listed company, which is based in Plymouth, yesterday posted its interim results for the six months ended September 30, 2009.
The results reveal that Sean Swales, finance director of Rotolok (Holdings) Ltd, joins the company’s board from today – fulfilling a long-held ambition of Rotolok owner and major Sutton Harbour shareholder Dan McCauley to have board representation.
The results show a pre-tax profit of £1.2 million compared to £505,000 for the same period last year when the firm was hit by the full force of the recession.
Turnover levels were up 18 per cent to £19.2 million, compared to £16.19 million last year.
Chairman Michael Knight described the past six months as “a period of considerable progress”.
“I think, overall, we have made very solid progress. In line with market expectations we have had a good performance from our marine business. Overall, it has been pretty solid and we’re pleased to maintain our dividend,” he said.
The firm reduced gearing levels to 41.4 per cent, from 58.2 per cent in 2008, following cash injections from the sale of land at Plymouth City Airport, which will raise at least £11.8 million, as well as a successful share placing deal in September, which raised £6.7 million.
Managing director Nigel Godefroy said he was unable to give any further details about the amount of land that would be sold because of Stock Exchange rules.
The results say that the firm is “well within its agreed banking facilities”, although it may need to increase short term borrowing levels in the closing stages of some of its development schemes.
Sutton Harbour’s aviation activities through its regional airline, Air Southwest, made a loss of just under £1.5 million.
Mr Godefroy said the firm’s heavily-promoted London City route was performing well, with the aviation sector as a whole under significant pressure during the downturn.
“It comes down to maximising revenue and keeping costs as low as we can, but not at the expense of service,” he said.
Marine activity levels increased, with profit levels up to £858,000 compared to £701,000 last year.
Regeneration activities made a profit of £2.84 million, after fair value adjustment, compared to a loss of £312,000 last year.
Sutton Harbour has said that has made good progress in this area but it has warned that the general economic climate will see some schemes taking longer to deliver “and brought forward as market conditions permit.”
Mr Godefroy said yields from developments had dropped because of falling land values.
He said a development in Swansea would be delayed and waterside schemes in Plymouth could also be delayed, adding: “Perhaps there will be other schemes around the harbour we will delay to maximise the value to shareholders in the medium term.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Airport to sell more land
01-12-2009
By Liz Parks
A FURTHER slice of land at Plymouth City Airport will be sold off next month in the second phase of a deal agreed with airport leaseholders Sutton Harbour Holdings.
The AIM-listed company, which is based in Plymouth, yesterday posted its interim results for the six months ended September 30, 2009.
The results reveal that Sean Swales, finance director of Rotolok (Holdings) Ltd, joins the company’s board from today – fulfilling a long-held ambition of Rotolok owner and major Sutton Harbour shareholder Dan McCauley to have board representation.
The results show a pre-tax profit of £1.2 million compared to £505,000 for the same period last year when the firm was hit by the full force of the recession.
Turnover levels were up 18 per cent to £19.2 million, compared to £16.19 million last year.
Chairman Michael Knight described the past six months as “a period of considerable progress”.
“I think, overall, we have made very solid progress. In line with market expectations we have had a good performance from our marine business. Overall, it has been pretty solid and we’re pleased to maintain our dividend,” he said.
The firm reduced gearing levels to 41.4 per cent, from 58.2 per cent in 2008, following cash injections from the sale of land at Plymouth City Airport, which will raise at least £11.8 million, as well as a successful share placing deal in September, which raised £6.7 million.
Managing director Nigel Godefroy said he was unable to give any further details about the amount of land that would be sold because of Stock Exchange rules.
The results say that the firm is “well within its agreed banking facilities”, although it may need to increase short term borrowing levels in the closing stages of some of its development schemes.
Sutton Harbour’s aviation activities through its regional airline, Air Southwest, made a loss of just under £1.5 million.
Mr Godefroy said the firm’s heavily-promoted London City route was performing well, with the aviation sector as a whole under significant pressure during the downturn.
“It comes down to maximising revenue and keeping costs as low as we can, but not at the expense of service,” he said.
Marine activity levels increased, with profit levels up to £858,000 compared to £701,000 last year.
Regeneration activities made a profit of £2.84 million, after fair value adjustment, compared to a loss of £312,000 last year.
Sutton Harbour has said that has made good progress in this area but it has warned that the general economic climate will see some schemes taking longer to deliver “and brought forward as market conditions permit.”
Mr Godefroy said yields from developments had dropped because of falling land values.
He said a development in Swansea would be delayed and waterside schemes in Plymouth could also be delayed, adding: “Perhaps there will be other schemes around the harbour we will delay to maximise the value to shareholders in the medium term.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Peter McGahan: Oil sharks? Hardly...
01-12-2009
‘Oil sharks sit off Brixham coast’. ‘Dear oh dear’ I thought as I passed the newsagent window. And like most of these things I yawned and resigned myself to that old saying ‘it’s like that déjà vu all over again’.
So is there any credence to the fact that bad boys are sitting off the coast ripping us off? I can’t believe I am even giving this space but here goes: Firstly, when oil was driven to $147 last year the resulting petrol price (which was blamed on oil) was less than it is today. Crude oil is priced at $77.07 today. (1) Explain that then.
Need I go on?
Secondly, this would only be true if we had a shortage of supply and/or an increase in demand. Neither is true, so I definitely could end this column here.
Thirdly, to my knowledge there are no product berths in the UK capable of taking vessels of this size and of course the real reason they are there is because this area of the coastline is one of very few places in Europe where ship to ship operations are actually permitted at sea.
Before I make my way to the real culprit you might like to consider how petrol prices are where they are. Currently VAT and tax represent just over 70p per litre and this will rise to over 72p when VAT returns to normal. (2). So forget the ‘sharks’, petrol without tax would be a mere 35p.
In any event, part of the blame offered for the price increase is the increase in demand, yet Mr Darling’s reason for increasing duty was detailed in his budget as: "Fuel duties in 2008-09 were £0.4 billion below their 2008 Pre-Budget Report projection and were lower than in 2007-08. Since fuel duty is charged on a per litre basis, this reflects a reduction in the demand for fuel."
So because demand is low he is saying he needs to charge more, yet we are being told prices are rising because of demand. Furthermore, the budget reveals that petrol will rise by 1p over indexation for the next four years! So I assume they believe that demand will still be low and can forecast four years ahead. Give me strength!
And so who else has their hand in your pocket? Last year oil prices were being blamed on global demand surging, blah, blah. Yet at that time, the reserves were all full and oil tankers sat in Louisiana and Iraq with nowhere to go.
Goldman sachs (who used to run the largest commodity index in the world) touted a $200 oil price which everyone fell for, except this column. However, very mysteriously, Goldman Sachs were ‘neutral’ on their oil stocks (i.e. they believed they were not worth investing more into).
How could they believe that the companies delivering the commodity would not benefit from the price of that commodity (oil) doubling in price? Their share price should have been tipped to soar. Perhaps because they didn’t believe it?
And so I decided to research the reason. To cut a long story short the culprit was speculative investors in commodities and in particular a certain type of investor.
In 2003 the total amount of money invested into commodities via index traded strategies was $13bn. In 2008 if this had risen to $17bn it would have been a spike. The total however was $260bn. So we had $13bn in history and $247bn in five years!
In 1936 US congress passed the commodity exchange act with the understanding that speculators could not dominate the futures markets. Unfortunately, the CTFC took steps which have now allowed these speculators virtually unlimited access to the futures markets. Wall Street banks were given exemptions from speculative position limits (they are blocked from investing too much).
The CTFC have now met to decide how to regulate this area closely and to close off such speculative position limits. They do it for agricultural and other commodities yet they don’t do it for energy. Perhaps the current noise around energy prices will be something to do with a last gasp push to get invested before regulation changes.
If you would like to speak to an independent financial adviser call Peter on 0845 230 9876, e-mail info@wwfp.net
Source
(1) oil price
(2) Tax payers alliance
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Safety product nominated for award
25-11-2009
AN INNOVATIVE safety product developed by an Exeter firm with support from the city’s university has been nominated for a national business award.
Packexe SMASH will feature among shortlisted products at the 2009 Real Business Growing Business Awards in London tomorrow.
Launched in May, it is an adhesive film used by rescue services to minimise the danger of shattered windscreens at the scene of road accidents. Scientists at the University of Exeter’s Advance Technologies department designed and engineered the unit used to dispense the film.
The innovative product prevents trapped casualties being showered with glass fragments as windows are removed or buckle under the pressure of rescue services’ hydraulic tools. Until recently, emergency services often used a sheet or piece of card to protect casualties from glass fragments.
Tomorrow, Packexe and the university team will find out if SMASH has been named New Product of the Year by a panel of judges including Dragons Den’s Theo Paphitis and Phones 4 U founder John Caudwell.
Mike Felstead, from the University of Exeter, said: “We’ve worked with Packexe on the dispenser project from the beginning. The team already had a great range of products, but this application process represented a significant new challenge. Packexe are worthy finalists for these awards and we are delighted to have been part of such a successful project.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Co-op begins £10m rebrand of Plymco
25-11-2009
By Catherine Barnes
THE Co-operative Group has launched a £10 million makeover programme to rebrand and upgrade 68 former Plymco stores in Plymouth, South Devon and South East Cornwall.
The Manchester-based consumer co-operative took over the operation of the Plymouth and South West Co-operative Society in September. It has already begun its multi-million pound revamp schedule – due for completion by the end of 2010 – with a £350,000 store makeover in Crownhill, Plymouth. The new-look outlet will be officially unveiled tomorrow.
Two further former Plymco stores will be relaunched under the Co-operative’s branding before Christmas. A spokesman for the group said that it had spent £1.1 million on upgrading the branches in Torquay’s St Marychurch and Fore Street in Torpoint.
David Parker, chief officer of the Co-operative Group in the South West, said: “The Co-operative brand is changing the face of high streets nationwide and is a highly visible representation of the renaissance of the Co-operative.
“This major investment in the former Plymouth and South West Co-operative Society stores will provide customers with an enhanced service and contribute to the growing financial success of our business.”
With the addition of the Westcountry’s 70 Plymco stores, the Co-operative Group now has a portfolio of 5,300 outlets across the UK, and is the world’s largest consumer co-operative.
Children from Plymouth’s Widey Court and Manadon Vale primary schools will perform the ribbon-cutting at the Crownhill branch tomorrow. Store manager Adam Fritzsche, will present each school with £100, to mark the occasion.
The Co-operative – which announced a 17 per cent rise in interim profits to £228.8 million, last month – acquired the Somerfield chain in a £1.6 billion takeover in March.
To date, three Somerfield stores in Devon and Cornwall have been converted to Co-operatives – in Exeter, Launceston and Sidmouth.
A spokesman said: “The Group plans to convert Somerfield stores to Co-operatives over a period of two years. The re-brand programme is already under way.”
Under the terms of the takeover, the Office of Fair Trading called for the Co-operative to offload 133 of the Somerfield branches it acquired. Yesterday, the spokesman said the group had concluded “all the OFT competition issues in Devon and Cornwall.”
Last month, it was revealed Saltash-based Spar distributor Appleby Westward Group had acquired former Somerfield branches from the Co-op in Keynsham, Liskeard and Minehead. They will be modified to become the region’s first Eurospar stores.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Peter McGahan: Talking commercial property
24-11-2009
Back in February I was asked about commercial property and if I would buy it and I said no.
The reason for that was because I believed that REITs would outperform them.
A REIT (real estate investment trust) in very simple terms buys real estate. Its main advantage (or disadvantage) is that it is effectively a share and that share can trade at a discount to the asset it holds.
For example, the REIT buys property that is worth for example, after all the market falls, £10m.
If there were 10 million shares you would expect each share to be worth £1. That would make sense? However in difficult markets REITs trade at a discount to their actual net asset value, so you can effectively buy exposure to the aforementioned property at quite a discount to its real value at that time.
When the market turns positive the REIT can then change and trade at a premium. The primary reason for this is that they expect the next valuation of the assets to be upward.
In July some of these REITs were trading at large discounts to their net asset value with Hammerson at 42%, British Land at 43%, Brixton estates at 51%, Segro at 42%. Had you bought this share in July when I wrote the column it was worth 279p. It is worth 449p this morning – a cool 61% return. (1)
Whilst REITS still have further to go because of the benefit of their gearing (borrowing within them to invest more), and in anticipation of the next valuation point where all their assets will be re-valued, the actual commercial property asset itself is now beginning to look good. A sure sign of the bottom of the property market is lots of for sale signs, but with a few noticeable exceptions this has not happened this time.
So why, after five years of advising against commercial property do I believe the commercial property asset is a worthwhile investment.
Firstly, commercial property is now a target for overseas investors and in particular pension funds who are focusing on the inflationary protection that commercial property will offer.
Armageddon was expected, and priced into the market, but that has not happened, and no-one now expects it to happen, so with depressed capital values the yield/income has been driven up.
Many rents in the city have upward only rent reviews and this is attracting the large sovereign wealth funds keen to make a yield. Income is everything, especially if it has inflationary protection which commercial property income benefits from.
What has caught the market by surprise is the fact that banks have not had to sell their properties and have retained them. The lack of supply to the market has kept prices buoyant whilst demand has soared. Whilst much of this has occurred in London, it’s a matter of time before it ripples out to other key areas.
From their current oversold position, commercial property is expected to rise by around 15-20% over the next six months.
In the city today there are 30 banks that are now keen to lend. Interestingly most are foreign banks and 13 are German. The overseas investor is buying UK assets at quite a discount because of the currency exchange rate and this is driving up demand for the commercial asset.
Many of the larger REITs such as Helical Bar, London and Stamford have been very buoyant and raised sizeable cash positions which are now looking to take advantage of any weaknesses. Most of these will also have hedged (protected) any threats of interest rate rises on their debts so that threat when higher inflation returns will be excluded.
Savill's announced that city Demand is now at a parallel with January ’08. The general belief is that demand will continue for the next 24 months whilst overseas money continues to pour into London. 85% of all transactions in London are from overseas investors. Sounds favourable. (2)
Source:
1)Yahoo finance
2) JLL EMEA
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Landlords raise glass to pub’s tenancy
24-11-2009
A HISTORIC Devon pub is being given a new lease of life after being bought by the St Austell Brewery.
The Three Crowns Hotel in Chagford, near Newton Abbot, which dates back to the 13th century, is now being run by landlords John Milan and Steve Bellman, who have more than 30 years in the industry and who already hold the tenancy for a number of the brewery’s pubs in Cornwall.
The purchase brings the total of pubs and hotels in the brewery’s estate up to 174 across Cornwall, Devon and Somerset. The acquisition came at the end of a successful year for the company, which saw it celebrate several major awards, including the title of UK Regional Brewer of the Year, which recognises the success of the business, the quality of its ales and its pub estate.
The brewery and the new landlords have embarked on an investment programme that has already seen the lounge bar and dining room refurbished. Six bedrooms at the front of the property will be the first to be completely overhauled, with work on other bar areas and the other 13 bedrooms set to follow.
Mr Milan said: “The Three Crowns Hotel is a fantastic traditional inn and I’m delighted to be running it. The next few months will be a really exciting time and I look forward to welcoming locals and visitors alike.”
Aiming to put the Three Crowns on the South West’s food map is new head chef Beatus Esholtz, who most recently spent 12 years as chef at the St Andrews golf course in Scotland.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Fact-finding mission from China
18-11-2009
BUSINESS envoys from the Chinese province of Deyang were in Plymouth yesterday on a UN-sponsored fact-finding mission.
The delegates visited the University of Plymouth and the Tamar Science Park to learn more about the potential for mutually beneficial relationships in the city. Their focus is upon areas including investment, strategic alliances, knowledge transfer and academic exchanges.
The visitors included the deputy mayor of Deyang’s municipal government, Siqing Li, the city’s economic administration committee chief, Zheng Pu, and a representative of the province’s industrial park, Xin Wang.
Yesterday, they met with representatives from the University’s Enterprise Solutions team, who run the Formation Zone and Formation2.0 business incubation centres.
They visited some of the institution’s centres of excellence in areas including robotics, advanced composite materials and marine technology. The group also met with businesses operating from the Tamar Science Park.
Professor Julian Beer, director of research and enterprise, and pro-vice-chancellor at the university, said: “This is a tremendously exciting visit and demonstrates that Plymouth’s reputation now extends around the world.
“Deyang’s economic strategy fits with many of our areas of expertise, and they are keen to understand the knowledge and technology transfer processes that we enjoy with the Tamar Science Park and incorporate that best practice into their own partnerships.”
Located in the west of China, Deyang has one of the fastest-developing economies in the country.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Home trader hot spots
18-11-2009
By Catherine Barnes
THREE Westcountry locations are among the UK’s top 100 hot spots for launching a business from home, according to a report.
Plymouth, Exeter and Taunton are among 11 towns and cities across the broader South West favoured by workers who become self-employed.
Enterprise Nation’s 2009 Home Business Report has revealed that home-based firms are generating an estimated combined annual income of £21.9 billion for the South West economy. The figure is anticipated to increase, with 89 per cent of UK home businesses expecting to increase turnover next year.
But the BT-sponsored report warns home businesses are “missing out on vital advice and help” because their success and growth is not being fully recognised.
It also calls for more out-of-hours support to help a new “five to nine generation” of home entrepreneurs, who hold down a day job and build their businesses during evenings and at weekends. Enterprise Nation – itself a home-based business – says that the awarding of grants and support from Government, regional development agencies and business support bodies should be more dependent on growth in earnings, rather than growth in employees.
It found that almost half of UK firms surveyed plan to increase turnover using freelances and outsourcing, while 42 per cent intend to make better use of existing resources. Only 4 per cent said they would consider hiring full-time employees.
Emma Jones, founder of Enterprise Nation and author of the report on the UK’s 2.8 million home businesses, said: “This report confirms that more people are starting up at home on account of lower costs and wanting a better work/life balance.
“Basing a business at home is certainly no obstacle to growth as home business owners are making the most of technology to outsource work and collaborate with other talented minds.
“It’s a most modern way to grow, yet it is not recognised in business support programmes and policy.”
Technology, including broadband, was vital for home business expansion, and 81 per cent said it was “critical” to their success.
Jon Reynolds, BT’s South West regional director, said: “These home-based entrepreneurs really are the lifeblood of their local communities.”
More than 60 per cent of businesses started in the UK begin at home, and nearly a third of the businesses surveyed this year were started during 2009.
The spare room is the most likely location for a home business.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Peter McGahan: Taxing time for lottery winnings
17-11-2009
£45.5 million. That surely is a good Saturday morning reading when you pick up your lottery winnings. But it isn’t all plain sailing as some of you might think! Consider the problems Les and Samantha, the lottery winners now have. There may be some mild sarcasm to follow.
What about inheritance tax (IHT)? The UK government will have helped Les and Samantha with the extra nil rate band for Inheritance tax. That will have pulled the total IHT bill down from £18,070,000 to a mere £17,940,000 - What a bonus that is. No sooner will they have the cash than they will indeed be trying to get rid of it.
And for savings and investments - the extra allowance for an ISA will help as Les can now put £10,200 into an ISA but Samantha will have to suffice with £7200 as she isn’t reached the fine age of 50 yet. She can enjoy that pleasure in April 2010 when everyone will benefit from the higher allowance.
There are investments they can make which are taxed as income and investments which are taxed as a capital gain. An investment into a range of products that attract capital gains tax which performed at a growth per year of 7% will, after allowances, attract £573,300 in tax per year and will be rising year on year.
This is still more attractive than the good old investment bond which most people invest into. Unfortunately for Les and Samantha they will be hit for their highest rate of tax on the income on any gain in a bond. For example an investment into an onshore investment bond (which is basically a default vehicle for most bank or tied financial advisers) would enjoy the highest rate of tax on the gain. So they invest at year one and five years later after a return of 7% per year they decide to encash. The gain which is added to their income for the year is £18,316,103.
If plans to tax higher rate tax payers at a mere 50% come into play in April 2010, Les and Samantha will have to part with nearly £9m in tax. But consider the poor commission based financial adviser with his 7% commission who will have to struggle with over £3.1m commission initially. I suspect the Scaddings might bargain with them on their commission though.
So a few tips to consider: The accountant you used to work out your day to day expenses will probably need an upgrade.
Investments into an offshore bond should be considered but use a fee based adviser so as to pay for the services in a tax efficient manner. An offshore bond allows for tax free growth on the investment (apart from a small element of withholding tax in certain countries of origin). All the investments inside this tax efficient wrapper can be traded without any liability to capital gains tax. Les and Samantha could disappear for a year and become non resident and then encash the bond outside of the Uk's tax regime. This would potentially save nearly nine million; They should now, much to their childrens' delight, make whatever gifts they can to mitigate inheritance tax; they should also use a qualified investment specialist rather than a generalist and ask for lost of opinions on their ability; If they decided to set up a business with their family they could receive 100% relief for Inheritance tax on death as it may be classed as a business asset. There are other trusts which can be created to allow the capital to be gifted away but retain an income but they will need careful advice at the £45.5 million mark.
And….whilst I am sure they will not let it affect their lives, they will probably, for tax reasons, knock the overtime on the head.
For investment advice call Peter on 0845 230 9876, e-mail info@wwfp.net
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Burgh Island wins top environmental award
17-11-2009
AN ICONIC South Devon island resort has won a top industry award for its environmental responsibility.
Burgh Island and Hotel has received the Green Tourism Business Scheme’s Gold Award, following a recent inspection which examined all areas of its business practice.
The Green Tourism Business Scheme (GTBS) is a national sustainable tourism certification scheme, approved by Visit Britain, through the International Centre for Responsible Tourism.
The organisation awarded Burgh Island top marks for its commitment to sustainability. Praising owners Deborah Clark and Tony Orchard, the GTBS judges said: “The owners and staff have taken the opportunity to embrace a whole island environmental approach, with success.
“In an environmentally sensitive area, surrounded by coastal habitats and natural and cultural heritage, efforts have been made for the hotel and guests to have the least impact.”
Ms Clark and Mr Orchard married at the hotel on the island in April 2001 and became owners in residence of the entire place, six months later.
The couple invested £1 million to restore the hotel to its original 1930s luxury. The island orders supplies from local food producers and craftsmen and actively promotes its support for – and involvement with – other local business, said Ms Clark.
In 2007, Burgh Island received a Gold Award from the Green Apple Organisation for conservation.
Ms Clark said: “We are over the moon about this award from a nationally recognised organisation. We were one of the first businesses to join the GTBS on its inception in 2003 and are deeply supportive of its aims.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
£40m broadband cable plan for city
17-11-2009
By Liz Parks
PRIVATE and public sector organisations in Plymouth have been urged to back a £40 million scheme to secure better broadband connectivity for the city.
Kick-starting the city’s celebrations of Global Entrepreneurship Week, a report on the business case for superfast broadband in the city was unveiled to the city’s business community yesterday.
Economic development consultancy Adroit Economics, which compiled the business case study commissioned by the City Development Company and project managed by the Chamber of Commerce, delivered their draft report at the city’s New Continental Hotel.
A price tag of £40million has been put on the scheme, which is called Digital Plymouth.
Most of this funding is expected to come from the private sector, with a small amount of pump priming funding being sought from the public purse. There are three main strands to the scheme.
Firstly, connecting Plymouth up to the transatlantic cable that passes near the city and would offer much faster speeds.
Secondly, building a “world class” data centre at Mount Wise to offer a high-class data storage centre to businesses based across the UK and even internationally.
Thirdly, the scheme would involve connecting every building in the city – residential and commercial – to the Internet by fibre optic cable to give faster and cheaper broadband access.
Fibre firm H20 has said that it was willing to foot the estimated £35 million bill for installing this network of cables, using the city’s sewerage system to give access to the buildings with minimum disruption.
The firm is currently in “advanced negotiations” with Plymouth City Council to sign a memorandum of understanding to allow this to go ahead.
If this is agreed, the scheme would take around 12 months to plan and a further two to three years to roll out.
The private sector is also working on plans to fund the Internet exchange that would be needed to connect to the “broadband motorway” – likely to cost up to £6 million – but this would be reliant on securing advanced orders for very high speed broadband to unlock the necessary bank funding.
Dr Steve Sheppard, managing director of Adroit Economics said Plymouth was in a strong position to become a UK leader in connectivity – if it seized the opportunity.
“If Plymouth falls significantly behind competitor cities and regions, its businesses and residents would find it more difficult to use applications and services that are starting to become commonplace using high bandwidth broadband in the rest of the world,” he said.
Dr Sheppard said that 44 per cent of businesses in the city wanted broadband of at least 50mbs but were currently unable to get it. He warned that Plymouth would be at a “substantial disadvantage” without better connectivity.
Neville Cannon, Plymouth City Council’s head of ICT, said: “The speed of change is so great that if we don’t keep pace with things then we will lose out.”
David Parlby, chief executive of Plymouth Chamber of Commerce, said the scheme should be a priority for the city to help it realise its ambitious growth targets. “It’s absolutely fundamental if we are serious about building the finest European waterfront city,” he said.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Authority’s quarry buyout saves 12 jobs
13-11-2009
A CORNISH quarry has been sold out of administration to Cornwall Council.
Castle Granite, which operates from Castle-an-Dinas Quarry at Ludgvan, near Penzance, went into administration in April.
It has been sold as a going concern for an undisclosed sum to Cornwall Council. All 12 jobs have been secured.
Administrators Ian Walker and Gilbert Lemon, from business recovery and insolvency specialists Begbies Traynor in Plymouth, undertook an extensive marketing campaign during which time the business continued to operate.
The quarry’s granite is used in building and construction, and there is a strong local market for its natural stone and aggregates.
Its Macadam plant supplies material for road construction throughout Cornwall.
The council’s highways business manager Robin Fisher said: “This is an excellent purchase for the authority which secures employment for local people and enables us to enter the coated stone supply market at a very reasonable entry point. We look forward to this being an excellent addition to our provision.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Lawyers to run seminars on planning process
13-11-2009
THE planning team at law firm Foot Anstey is hosting seminars this month aimed at all those involved in the planning process.
The team is inviting people to attend an event whether they are involved in the process individually or as advisers, and whether promoting or opposing development.
The seminars in Plymouth, Exeter, Truro and Taunton will update delegates on a range of topics, including recent and imminent changes in planning, occupancy conditions and criminal liability in the field of planning.
The objective is to provide practical guidance as well as explaining current trends.
Gareth Pinwell, partner and head of the planning and regulatory team at Foot Anstey, said: “We hold two of these events a year so that we can keep the planning community as informed as we can on developments, and what we see as emerging issues.
“Not only will we discuss changes in law, but we also try to look at topics and provide practical solutions to those attending. By holding a seminar in each one of our regional centres, we provide the opportunity to keep the event local and the conversations relevant.”
To reserve a place, e-mail www.footanstey.com/events or telephone 01752 675136.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Tenders sought for former landfill site
13-11-2009
TEIGNBRIDGE District Council has begun advertising for a development partner for a former landfill site in Teignmouth.
Development plans for the site at Broadmeadow include a new supermarket with 2,000 sq metres of sales space as well as additional work space to attract businesses to the area. There are also plans to clean and restore contaminated land at the site.
This week, the council has begun to actively seek partners to tender for the opportunity to develop the site, advertising in trade publications. It is asking interested developers to complete a pre-qualification questionnaire by December 9, ahead of a formal tender process.
It plans to award a contract for the work by May 2010 and hopes to see preliminary work on formal development proposals begin soon after that.
Playing fields at Broadmeadow have not been used since 2001 due to contamination issues associated with the former landfill tip, which ceased operating nearly 30 years ago.
The council has investigated various proposals for the site since the closure of the playing fields, with a view to bringing them back into use.
Councillor Alan Connett, leader of Teignbridge District Council and executive spokesman for resources and budget, said: “In the current economic climate, the regeneration of Broadmeadow will help in providing jobs and long-term employment space for new businesses and bring playing fields back into use.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Group to focus on developing airport
13-11-2009
By Liz Parks
A NEW development group for Newquay Cornwall Airport will eventually seek to find a private sector operator for the airport, it has been revealed.
Plans to set up the group, in response to John Mills’ report into the airport’s 19-day closure last year, were given the go-ahead at Cornwall Council’s cabinet meeting on Wednesday.
The now-disbanded Cornwall County Council, which owned the airport, had been due to take over running the airport from RAF chiefs in November 2008.
But because it failed to get the correct licence from the Civil Aviation Authority in time for the RAF pulling out on November 30, the airport was closed for three weeks December at a cost of more than £1 million.
Mr Mills’ 97-page report recommended that “a specific, small group needs to be established within the council to promote and govern the council’s interest as shareholder”.
Members of the development group will be chosen by Coun Carolyn Rule, Cornwall Council’s cabinet member for economy and regeneration.
She said it was likely to include herself, Coun Graeme Hicks and senior council officers such as Tom Flanagan, the council’s corporate director for environment planning and economy.
The group’s remit will include developing a strategy and identifying priorities for the airport, monitoring its performance and advising on plans to attract a private sector operator to run the airport.
“It’s all at a very early stage. The first meeting will be to set the terms of what we hope to achieve from the group,” said Coun Rule, adding she was keen to hold the first meeting of the group as soon as possible.
At present, the airport operates at a deficit which this year is predicted to reach £5.14 million.
The council has said it wants to reduce its subsidy to the airport as it finds its feet as a commercial operation after years of military infrastructure support.
Council figures show its deficit in 2010/11 should drop to £4.23 million and £3.99 million in 2011/12.
The council is currently working on a “fundamental review” of the airport’s business plan which is due to be completed by March next year.
Coun Rule said improving the airport’s finances would be a key role for the new group.
Finding a private sector operator for the airport was a “long-term aspiration”, said Coun Rule, with the short-term priority for the airport team to “do the day job”.
“We have got excellent airport directors. The airport has been recognised by the industry and the team there are all doing a good job,” she added.
The three council scrutiny committees, which already consider decisions made about the airport, will continue to operate as normal when the group is up and running.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Image makeover sees bottled water sales rise
12-11-2009
A NEW-LOOK image for a Cornish bottled water brand has seen sales soar, say the company’s owners.
In the first full month following the re-launch of their Just Water, retail sales increased by 29 per cent, according to Pauline and Colin Dyer.
The Bodmin company – launched by the Dyers on their working farm in 2002 – commissioned its fresh new look from Truro-based Aawen Design.
“We have come out with an extremely strong identity for our range, which in turn has had a really positive impact on sales,” said Mrs Dyer.
“The new identity has also been directly responsible for us picking up new customers, including a number of the Spar shops in Cornwall, in addition to our existing customers such as the Eden Project. Our wider retail customers also reported increased sales.
“We had never really developed the brand for our retail range. Despite good sales, we felt the original branding and labelling was getting tired and needed a fresh new look.”
Aawen’s director Adrian Taylor has worked on Schweppes and Bulmers brands in the past and re-configured Just Water’s image to appeal to its target market of 18 to 30-year-olds.
He said: “The original branding just didn’t fit in with this age group. Pauline and Colin now have a much stronger and more identifiable brand for the range.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Accountancy online
12-11-2009
A CHARTERED accountancy has introduced an accounting package that will enable businesses to manage their paperwork online.
Exeter-based Simpkins Edwards, which has five offices and two market-based practices in Devon has launched Libertyse, which it says will allow businesses to manage their accounts securely through their web browser.
The software, developed by Liberty Accounts, has been introduced as a “value added service” by the Exeter firm to its clients. Customers will be able to log on anywhere to view and review their details, in between meetings with their accountant.
Simpkins Edwards partner Mary Jane Campbell said: “Our software is cost-effective, flexible, easy to use and above all convenient. It’s accessible from any Internet connection, which is a big plus for busy people. Libertyse is a fully-functional online accounting package, perfect for businesses that have remote or multiple offices or for owner-managers who travel. It also works on any PC, Mac or Linux-based computers.”
The system’s book-keeping and payroll facilities have been built to manage the online filing of VAT and PAYE returns.
Adrian Hemmings, partner at Simpkins Edwards, added: “Because the accounts are online, it is easy for us to work collaboratively with our clients.
“We can simply log on to do month or year-end reports. We can see who owes money and chase the debts. We can even load transactions on to the system for you.”
A CHARTERED accountancy has introduced an accounting package that will enable businesses to manage their paperwork online.
Exeter-based Simpkins Edwards, which has five offices and two market-based practices in Devon has launched Libertyse, which it says will allow businesses to manage their accounts securely through their web browser.
The software, developed by Liberty Accounts, has been introduced as a “value added service” by the Exeter firm to its clients. Customers will be able to log on anywhere to view and review their details, in between meetings with their accountant.
Simpkins Edwards partner Mary Jane Campbell said: “Our software is cost-effective, flexible, easy to use and above all convenient. It’s accessible from any Internet connection, which is a big plus for busy people. Libertyse is a fully-functional online accounting package, perfect for businesses that have remote or multiple offices or for owner-managers who travel. It also works on any PC, Mac or Linux-based computers.”
The system’s book-keeping and payroll facilities have been built to manage the online filing of VAT and PAYE returns.
Adrian Hemmings, partner at Simpkins Edwards, added: “Because the accounts are online, it is easy for us to work collaboratively with our clients.
“We can simply log on to do month or year-end reports. We can see who owes money and chase the debts. We can even load transactions on to the system for you.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Savebuckets compares well to the competition
12-11-2009
By Catherine Barnes
THE technology arm of a Cornwall-based independent radio group has developed a website to rival leading price comparison websites. UKRD, which owns Pirate FM, commissioned its eight-strong Exeter based website development team to create and launch www.savebuckets.com.
The team is behind the content management system that supports all UKRD radio station websites, and the format has also been licensed for sale to other companies.
Savebuckets is the latest “sideline” to emerge from the broadcaster’s technology department, following the successful launch of a number of consumer sites, which offer “tried and tested” advice on products ranging from pushchairs to toys.
Its developers say the site improves on the services currently offered by price comparison sites, which they found to be “confusing”.
UKRD’s chief technology officer, James Wenger, said: “There are a plethora of price comparison adverts on the television – mostly for financial services.
“We spent a considerable amount of time looking at these sites and ended up going round in circles on them. Most we looked at made it pretty complicated to find what we were actually searching for.
“We thought we could better, and actually add in a couple of useful things that no-one else was doing.”
One innovation the UKRD team developed for the site was a price tracker, which enables customers to “name their price” and e-mails an alert when goods become available or are advertised online, within their price range.
Mr Wenger said: “When customers hunt for something on the site and it’s too expensive, they can tell us how much they’d be prepared to pay for it.
“We then check the price for that item every day and when it becomes cheap enough, we send a link to the product.”
Customers can make their purchase by following the link to their selected suppliers’s website.
The company does not charge suppliers to be listed on the site, or add a commission of its own to the listed prices.
“We wanted to be as transparent as possible with this site,” Mr Wenger said.
“We don’t have any special relationships with the retailers, so there is no ‘favouritism’ in terms of how products are ranked.
“Our front page shows the most popular items people have been looking at, based on what products have been looked at on the site.
“We also wanted the site to be as clean, simple and clutter-free as possible, so we don’t carry product reviews.”
UKRD partnered with plebble.com, an independent ratings organisation. Plebble supplies savebuckets.com with consumer ratings awarded to retailers featured on the site, so that customers can opt to narrow their choice of a supplier down, according to fellow shoppers’ preference.
As an independent radio station UKRD has been able to support its latest website launch with on-air advertising, but Mr Wenger says ensuring top ranking on search engine listings has been the key tool for driving customers towards the site.
“We have worked very hard on our site to make it as easy for Google and the other search engines to find their way to it,” he said.
“We work closely with another local company – the Search Engine Optimisation arm of LBi – and they have helped us get some pretty good positions in search engines.
“Search for cheap toys, or iPods, for example and you will find us listed.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
£1.95m for former Toshiba location
12-11-2009
PREMISES in Plymouth formerly occupied by electrical giant Toshiba are now for sale at a quoting price of £1.95 million.
Acting on the instructions of Richard J Smith & Co, Alder King are marketing Lynher House at Estover, which represents an opportunity for owner occupiers seeking premises with investment potential.
The premises comprise a large distribution warehouse and office accommodation totalling 78,806 sq ft.
It is available freehold with vacant possession of the warehouse and two of the office suites.
The total site area is 3.65 acres and there is extensive car parking for the office suites attached to the accommodation, with five office areas and storage areas on the lower ground floor producing a total rental income of £108,800 a year until December 31 this year.
Scott Rossiter, partner in the Exeter office of Alder King handling the instruction, said: “The premises would ideally suit a firm looking to purchase their own premises and run a distribution operation, while benefiting from the income of the lower ground floor offices. There is also scope to expand into these areas should they become vacant.”
For further details contact Scott Rossiter at Alder King on 01392 353080.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Olympics offer £700m in new opportunities
12-11-2009
ORGANISERS of the 2012 Olympic Games and Paralympics have launched a tranche of contracts worth £700 million for tender, presenting golden opportunities for South West SMEs.
More than 5,000 business across an area from Cornwall to Swindon have already registered to supply the Games in some capacity since the ODA (Olympic Delivery Authority) initiated construction works on the competition sites.
Now Westcountry firms are being urged to put themselves forward to supply goods and services to furnish the 2012 sporting venues and accommodation.
Almost 80 regional firms have already been contracted by the ODA for the delivery of services. Many hundreds more operating within a seven-tier supply system have provided equipment, consultation and logistics as back-up to major contractors servicing the 2012 Games.
In this latest round of contract opportunities, the London Organising Committee of the Olympic Games (LOCOG) – the private company contracted to stage and deliver the Games – is seeking businesses to provide the Olympic venues and village with supplies as diverse as beds, uniforms, bag-scanners and flowers, to performing arts, IT backup and transport.
“The list is into its hundreds,” said Ian Gent, head of marketing and communications for Business Link in the South West. “The way to find out more is by registering on www.competefor.com.”
Support can also be found for firms wishing to register, via the Business Link website.
Businesses that wish to be informed of opportunities relevant to them must then be “published” – the next stage in the procurement process – which involves providing “non-intrusive” company details including turnover, policies and staff numbers.
“Businesses considering this route are seeing other opportunities connected with major national and international sporting events over the next 10 years, open up to them,” Mr Gent said.
“We haven’t found that people have been backward in coming forward to register – from sole traders to bigger companies. Some smaller companies might even wish to register as consortiums.
“The new round of Olympic and Paralympic contracts being issued over the next six months is a great opportunity.”
Guy Lavender, the Regional Development Agency’s South West director for the Olympics, said: “There are more opportunities for smaller SMEs coming up than there were during the first round of bids.
“Value for money will be key – the Games’ available budget is under close scrutiny. The second criteria is deliverability – there is only one go at the games – so whatever firms deliver has to work to the time scale. And the quality of the goods must meet the organisers’ needs.”
Mr Lavender – who is to become the RDA’s new general manager for Wave Hub in the New Year – added: “Weymouth’s sailing venue was delivered a year ahead and on budget. The stadium is up and progressing on track – so I have no concerns that we are not going to deliver.
“Now is the time for many different business sectors to get involved. We want South West firms to register.”
Anthony Grills, director of Bideford-based TC Office Interiors, said that the company – established by Adrian and Rebecca Sealey in 2006 – had flourished through its links to an Olympics site contractor, Premier Interlink.
TC has fitted out temporary buildings erected for firms working on the east London Olympic Village site, with furniture, flooring and joinery. Business Link also helped the firm to register online to get Olympic tenders through.
“We already had a relationship with Premier and they invited us to do the work,” Mr Grills said. “Since then, contractors have approached us through word of mouth recommendation, and we recently did work directly for the ODA.”
From a start-up firm in the Sealeys’ garage to a business with a purpose built showroom and £1.1million turnover, Mr Grills accords around 50 per cent of the firm’s rapid growth to 2012-related contracts.
“We’ve probably had a presence on the site every week,” he said.
Paulex Environmental, of Topsham, has supplied training – on and off site – to Olympics contractors in order to prevent chemical spills leaching into the water table in the event of an accident.
The emergency spill equipment it manufactures and distributes have also been deployed in “bins” across the 2012 construction sites. It also supplies “socks” and booms to contain spillages in water.
“We’re very proud of what we’ve achieved,” said the firm’s projects manager, Andy Chesterman.
Waycon Precast, of Plymouth, has supplied its patented lift shafts as a sub-contractor to works on the Olympics’ media centre.
“We were approved last year,” said its director, Ray G\erson. “People have approached us with on-going things since, and it’s nice to be involved.
“However, our products are normally signed up with logos, which has not been allowed – even though they would only be visible during the construction process. We can’t really shout about having been involved.”
Although the Olympic and Paralympic Games venues will ultimately become a showcase for what British manufacturing, suppliers and services can achieve, the organisers have taken a fairly uncompromising line on their promotion. Their priority is to protect to the commercial interests of the major sponsors being wooed to pump millions into the events.
Business Link and the RDA have been negotiating to ease the stringent publicity rules to encourage involvement from businesses through example, while respecting sponsorship specifications.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Hub awards will reward young entrepreneurs
12-11-2009
CORNWALL’S young entrepreneurs will be recognised at the Hub awards later this month.
Sponsored by Business Link, Cornwall Development Company and Unlocking Cornish Potential, the awards will take place on November 26 at the Atlantic Hotel, Newquay.
The event’s guest speaker will be Dave Meneer, chief executive of Fifteen Cornwall. Before Dave joined the Jamie Oliver-inspired restaurant in September 2007, he was the marketing director at the Eden Project.
Awards will include Employee of the Year, Innovator of the Year, Best Business Start-up and Entrepreneur of the Year, as well as Hub Contributor of the Year.
Hub committee member Andrew Weaver, of Live Events South West, said: “We’re delighted about the response to this year’s Hub Awards and are really excited about unveiling the winners at what should be the most exciting awards yet.”
Initially set up for young business people in Cornwall, The Hub has expanded to accommodate people working at all levels of business, from newly-appointed graduates to company directors.
Tickets for the Hub Awards are priced at £25 each. For more information, log on to www.cornwallhub.co.uk.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Lifestyle team put their backs into service
12-11-2009
A CORNISH chiropractic practice is celebrating after gaining national recognition for its patient care and customer service.
Lifestyle Chiropractic, which has clinics in Truro and Mawnan Smith, has been awarded the Patient Partnership Quality Mark by the College of Chiropractors.
The award was presented to chiropractors Amanda Hensman and Mairi Dowlen.
“The whole team at Lifestyle are extremely pleased and honoured to have gained this award,” said Amanda, who founded the business in 2005.
“We’re dealing with people with health issues such as back pain on a daily basis, and it’s our job to ensure that they receive high-quality care in all aspects of our service, as this can assist their recovery.”
In order to achieve the PPQM mark, Amanda and her team had to demonstrate they met patient expectations across a number of areas including accessibility, ease of booking and out-of-hours service, cleanliness, safety, privacy, communication and patient education.
Tim Jay, president of the College of Chiropractors, said: “The College of Chiropractors believes that chiropractic services should be centred on the users of those services.
“The college supports the delivery of services that are flexible and responsive to the needs of patients, acknowledging them as partners in their own care.”
Lifestyle, which has recently launched its How’s your Gait? campaign to highlight how focusing on feet can help improve health, has received a PPQM plaque and will be able to use the kite mark logo on its practice literature and correspondence.
Mairi Dowlen added: “We’re proudly displaying our award and getting some great feedback from our patients, who seem as excited as us about it.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
New investment will help salt firm to grow
12-11-2009
By Liz Parks
A CORNISH business that makes salt which is used by chefs including James Martin and Rick Stein has obtained £430,000 in venture capital funding.
The Cornish Sea Salt Co, based in Porthkerris, on the Lizard peninsula, has received backing from South West Ventures Fund, which is managed by the YFM Group.
Julian Dennard, senior investment manager with the YFM Group, said: “Over the last few months, Cornish Sea Salt has established itself as a key player in the market – it is a strong, ethical and environmentally-conscious brand which now deals with some of the UK’s leading retailers and independents.
“Its new sales team is already securing outstanding results and its new export strategy really demonstrates that this is a high-growth company with a global vision.”
The business is the first sea salt plant in the UK that harvests direct from the ocean. It employs 13 people.
Managing director John Steel said the funding was being used to fund new appointments to its sales and marketing team and to invest in equipment to increase production capacity.
The business was launched 18 months ago and has already secured listings in more than 800 independent delis, farm shops and high-end food halls such as Harrods, Selfridges and Fortnum & Mason.
Since August, the firm has been stocked in all 219 Waitrose stores after a successful regional trial.
“We are proud of our achievements over the past few months,” Mr Steel said. “An increase in home cooking due to the recession and people’s demand for a high-quality, natural and local produce, has meant that sales of Cornish Sea Salt have rocketed.
“The company is going from strength to strength. This latest round of funding comes at a pivotal time of growth for us and we are delighted with the support from the South West Ventures Fund.”
As well as focusing on securing listings in more supermarkets, international sales are also a key part of the firm’s strategy for the future.
It has already picked up sales in Australia, Germany, America and the Far and Middle East.
Mr Steel said that the identity of the Cornish brand seemed to translate well overseas.
“When we started trying to set sales overseas, we wondered if people would get it,” he said.
“What they see is that it’s shorthand for a high-quality English product. I think they must recognise the Cornish brand as something of provenance in the UK.
“It’s hugely positive that we can translate the brand internationally without having to say ‘we’re British’ first to explain to people.”
The salt produced by the company delivers more taste from less salt.
It is used by chefs including James Martin, Hugh Fearnley-Whittingstall and Rick Stein, and is a key ingredient in a range of biscuits Mr Stein has created with Furniss Biscuits. Created for Stein’s Deli, the biscuits have proved so popular that they have gone on to be stocked in Waitrose and Tesco stores.
Mr Steel was appointed managing director in May, having held management positions at Premier Foods, where he worked with Loyd Grossman on his food ranges, as well as stints at Marston’s and Weetabix.
The company has won a range of awards including Best Food & Drink Business and Entrepreneur of the Year at the O2 X Awards as well as Best Newcomer in 2009 by the Observer Food Monthly. It has also become the first English sea salt product to achieve Soil Association certified product status.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Signing up Wave Hub developers ‘a priority’
12-11-2009
By Liz Parks
THE new general manager of the £42 million Wave Hub project has spoken of the challenges that lie ahead before off-shore construction work begins next year.
Guy Lavender’s appointment has been announced today and he will take up the post, which has a salary of between £50,000 and £62,000, on January 4.
Until then, Mr Lavender, who is currently South West director for the 2012 Olympic Games, will be getting up to speed with the Wave Hub project as well as ensuring a smooth handover of his Olympics role.
“The first thing I will be doing is to meet partners and stakeholders, and I intend to start doing that before January,” he said.
“I think that’s critical for me. It’s important to get down there and look at the project delivery.”
Wave Hub is one of the South West Regional Development Agency’s flagship projects and a key plank of its renewable energy strategy.
Wave Hub will be a giant electrical “socket” on the seabed, some 10 miles offshore and connected to the National Grid, into which wave energy device developers will be able to plug their devices to convert the power of the waves into energy.
A total of four berths are available at the scheme, with just one developer – Ocean Power Technologies – signed up so far. Developers Fred Olsen and Orecon are in talks to take a berth, but have yet to sign on the dotted line.
Mr Lavender said he would be meeting prospective developers with a view to finalising the outstanding berths.
“It’s going to be critical – we want new developers signed up to the site,” he said. “We’re talking to a number of commercial developers in the UK and in the wider world.
“There is a clear need for the wave hub facilities as a full scale test of commercial designs that have not been delivered on this scale, with this level of ambition, anywhere else in the world.”
Key challenges of the project would be the technical aspects of its delivery, Mr Lavender said.
“The scale of what we’re doing is larger than has been done anywhere else. While the technology has been used in the oil and gas sector, it is a new type of project,” he said.
Mr Lavender’s military background should help him in his new role. He was a Lieutenant Colonel in the Parachute Regiment, spending a total of 17 years in the Army, which included stints working on defence procurement initiatives.
Onshore construction work on the scheme starts on Monday at Hayle. The Wave Hub will be built and the underwater cable laid next summer, with the first wave energy devices deployed in 2011.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Network of mums help grow Sophi’s business
12-11-2009
STARTING your own business is always a challenge.
But Mawgan Porth mum Sophi Rilstone has taken on a bigger challenge than most by opting to launch her own business in the midst of the worst recession since the Second World War – while looking after her two young daughters at the same time.
The former Truro College pupil decided to take the plunge into self-employment after feeling that she needed a fresh challenge after spending time at home with her daughters Maisie, aged three, and one-year-old Millie.
Sophi, 25, launched her online children and baby gift, toys and dressing up shop – www.littlemissboutique.co.uk – earlier this month after travelling to the autumn fair at Birmingham’s NEC to source suitable products.
After trawling through the 500,000-plus products on sale at the event, Sophi ordered the ones that she wanted as well as sourcing local products, and was ready to start trading.
“I had been thinking about starting my own business for some time and I just thought ‘I’m going to do it’. I wanted to do something where I was working but I could still be around to look after the children,” she said.
And Sophi said she wasn’t fazed by the idea of starting her business in a recession.
“If someone is sitting at home thinking about ways to make money, there’s no point waiting until the right time, because it might never be the right time,” she said.
“People are still going to want to buy gifts whether they have got a lot of money or not.
“I love having my own business – it’s really good fun and it’s great to be able to combine it with looking after the girls.”
Employing a mixture of traditional word of mouth marketing through the mums she knows through nearby baby groups as well as more modern approaches such as social media, Sophi is now busy raising the profile of the business.
She is also planning to return to the NEC to source new products at the spring show.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Dockyard operator reveals profits rise
11-11-2009
By Catherine Barnes
DEVONPORT Dockyard operator Babcock International has revealed “excellent profit growth” and steady revenue of £923 million, less than a fortnight after announcing 90 job cuts in Plymouth.
In its half-year report for the six months to September 30, Babcock said profit before tax had increased by 24 per cent to £71.8 million, with a “record order book, robust market positions and strong cash flows” supporting the group’s prospects.
Babcock said good revenue growth in its marine and defence sectors had mitigated a decline in its rail, engineering and plant operations.
An operating margin of 8.9 per cent was a “record” for the group. Its order book currently stands at around £6 billion with strong bid pipeline of around £3.3 billion.
Babcock chief executive Peter Rogers said: “We consider the major markets in which we operate remain both attractive and resilient and provide the group with strong long-term growth prospects.
“In addition, our order book and robust bid pipeline give us excellent long-term visibility.
“We believe that the strength of our business model and our reputation for delivering cost efficiencies for our customers will provide further opportunities for us as pressure on public spending increases.
“2009/10 continues to be another year of excellent progress for the group and we remain confident that results for the full year will be in line with our expectations.”
Over the six months, the group’s marine division saw operating profits increase by 29 per cent on 2008 figures, to £54.3 million.
Babcock said its Plymouth- based Queen Elizabeth class aircraft carrier refit project continued “to make good progress”.
The dockyard operator, which currently employs 200 agency workers was blasted by union bosses last month, after announcing it would consult on reducing its full-time workforce by 90 posts – mainly through voluntary redundancies – between December and March.
In its summary of its marine sector yesterday, Babcock referred to its ability to pass on “cost efficiencies” to clients.
Babcock also last month completed its £38 million acquisition of the United Kingdom Atomic Energy Authority.
The authority announced in September that it had agreed the sale of UKAEA Limited to the defence and energy support services group, which acquired Devonport Dockyard in 2007.
Babcock said the acquisition of UKAEA enhanced its positions within both the civil and military nuclear markets and would provide a “direct relationship” with the Nuclear Decommissioning Authority.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Awards at the double for West housebuilder
11-11-2009
A CORNISH company, which was named the UK’s Housebuilder of the Year in 2008, has won two major awards for its latest development.
Rosemullion Homes’ recently completed 15-property Trinity Watch site in St Ives has been awarded Silver Standard in the national design-led Building for Life Awards.
In a letter to Rosemullion, fashion icon and awards chairman Wayne Hemingway described the development as “an attractive scheme with architectural strengths”.
Rosemullion’s managing director, Roger Carson said: “This is another fantastic award for the team here at Rosemullion as it is further recognition of the hard work we put into creating quality housing schemes, that are sustainable and add to the local environment and economy.”
In a separate event, the build’s site manager James Smith is to attend the National House-Building Council’s UK Pride in the Job awards in the new year.
Mr Smith was recently named regional winner in the NHBC small builder category and praised for his “outstanding” site management at the development.
Mr Carson added: “James works extremely hard to ensure that his site is exceptionally well run and well managed, and its an attitude that does him credit.”
The NHBC’s regional director, Jim Lyons said: “This is a young man who has built some of the finest houses we have ever inspected.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
West dentist achieves top qualification
11-11-2009
THE dentist behind a private Tavistock practice voted top for patient care has become one of just six in the UK to achieve a ground-breaking qualification.
Dr John Patrick McVeigh has passed the inaugural Royal College of Surgeons’ Edinburgh Diploma in Implant Dentistry.
Dr McVeigh – who has run the Abbey Mead Dental Practice with his dentist wife, Ann, since 1997 – sat exams over three days in October, with written papers, case presentations and an oral examination.
Dr McVeigh has had a special interest in state-of-the-art dental implants and reconstruction for a number of years.
He was nominated Dentist of the Year 2009 for his work rebuilding the jaw of a Westcountry man who shattered 11 teeth in a helicopter accident.
The patient made regular round trips for treatment at the Tavistock surgery, following a personal recommendation.
The former Royal Marine and naval dentist said of his latest boost to the practice: “It was an extremely tough set of exams, but well worth the effort.
“The considerable financial investment, as well as the time and effort, were made possible by the tremendous support I have received from my patients, practice team and family.”
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Peter McGahan: Explaining quantitative easing
10-11-2009
What do you think of the introduction of a further £15billion in quantitative easing?
Ideally it would have been preferable for no more capital injection to be required.
As all this capital makes its way into the system, confidence rises and the tail of the whip becomes more and more likely to be inflation. That inflation is harder to control as the Bank of England cannot simply sell its gilts back or increase interest rates.
However, in behind all the potential for quantitative easing to create inflation are a range of deflationary pressures that are dampening any thought of hyper inflation.
Whether it’s the threat of employment levels falling (which in turn takes the UK’s wages with it), or public sector wage threats, all of this makes its way through to less buying power and lower prices.
Other deflationary pressures include a look at most major recessions since the late 1960’s where core inflation fell on average by almost 4% over the two years following the trough of a recession.(1) Ireland is currently ‘enjoying’ core inflation of -2.2% and Spain nearby. It is therefore no surprise that this has made its way through to salaries and in the UK earnings growth has been the slowest since records began.
On the flip side, emerging economies are using many more resources and this is also making its way through to prices. A weakened sterling has also increased the prices of imports although if inflation and recovery is back in the system, you might expect sterling to recover, making those same imports cheaper.
The Bank of England has just announced it would increase its quantitative easing plan by another £25b. The market responded positively to that and sterling appreciated as they were expecting £50b.
The fact the UK failed to exit recession in the third quarter will have motivated the monetary policy committee to extend quantitative easing even though there has been strong signs of positive activity form private business surveys and a house price pick up.
Personally I notice that there are more people in pubs! This is my cruder, but most accurate measure of an economy!
The Bank of England report published later this week will give a better insight into their thought process. The monetary policy committee have been particularly concerned that as households use lower interest rates to lower their debt and banks continue to self paralyse, that once interest rates rise, we could easily see the normal double dip in the economy.
My view has not changed since before we went into this recession. In October 2008 I highlighted inflation not to be a problem and said rates would plummet. I highlighted the motivation that it takes eighteen months for these changes to fully make their way into the system and that November 2008 was a key date – its eighteen months before an election.
This confidence is making its way through to the system already and the ‘support’ of the housing market will easily maintain buoyancy in confidence.
However, the support of the housing market will be short lived and with the inevitable interest rate rises, house prices will be dampened again by mid 2010 and will probably remain flat for some two to four years.
If inflation then comes into the system, investors will probably enjoy higher interest rates coupled with higher equity prices which make the property investment a less attractive return for the risk.
At the same time homeowners will now face the reality of higher costs after the current emergency rates have been lifted. It’s difficult to see how any of that can be positive for property in the short term.
Personally, I have a very strong feeling the next economic report will show we are indeed out of a recession and the economy and markets will be strong until the new government whoever they may be sits down with the task of rebalancing the books.
The next winter could then be an interesting one.
If you wish to speak to an independent financial adviser call on 0845 230 9876, e-mail info@wwfp.net
Source:
(1) www.standardlifeinvestments.com
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Peter McGahan: Long-term care and trusts
03-11-2009
I read your article which explained that putting assets into trust was not a way to get around care costs. My will writer advised me of a ruling that says that Local Authorities cannot recover assets placed in Trust providing they were transferred more than 6 months before the claimant was placed into care. Is this true?
I can see where someone might be coming from here but they are a little outdated with that thought process. The most important advice here is to use a solicitor for advice in relation to your estate.
There is no requirement in law at present for a will writer to be legally qualified. Indeed a west midlands MP commented that she indeed had previously given will advice without qualifications and commented that indeed a convicted fraudster could set up a will writing service without any professional indemnity cover or qualifications thereby offering no protection to the consumer.(1)
As you will see the area of estate planning is highly complicated and should only be undertaken with the advice of your qualified professionals, such as your solicitor, accountant and fee based independent financial adviser.
In the comment above your will writer is referring to the HASSASSA 1983 legislation. This states that the above is true however this act cannot be relied on in isolation.
In March of 1995, Mrs Yule aged 81 gifted to her granddaughter for "love favour and affection" her house retaining for herself a life interest in the property. A year later Mrs Yule fell and sustained a broken arm, her health thereafter deteriorated to the extent that she was no longer able to look after herself and she was admitted to a local nursing home.(2)
When you are completing a form for assessment of financial contribution for the local authority, you are asked if you have disposed of any assets in the last six months.
Mrs Yule’s son completed this form and as there was no disposal of any assets in the previous six months he had nothing to declare. The council decided that she should not have the balance of her charges paid for her as her notional capital including her house exceeded £16,000, which was the means test at the time.
Mrs Yule argued that the house had been disposed of more than six months prior and was no longer her asset and under the 1983 Act there was no provision for any gift prior to the six month period.
Unfortunately the correct construction lies with section 87 of the social work (Scotland) act 1968 by virtue of which the 1992 regulations applied. This act provides for account to be taken of any asset that has been given away, and there is no time limit.
So, as long as it could be proven that the motivation was to deliberately deprive herself of capital, she would be treated as possessing the capital at the time of assessment, no matter when the capital was given away.
It has since been held that the deliberate deprivation test has to be carried out on a subjective basis.
So what was wrong with this case and why did it fail? Basically motivation is everything.
Why would an elderly lady of 81 have given her house away but reserved a right of residence? This will always be open to challenge and difficult to win, so any thoughts of how you might distribute your estate should clearly be talked through with a professional. If it’s reasonably obvious that you are attempting to deprive your estate of capital so as to avoid paying care costs, you will almost certainly be defeated.
I will then refer back to an article I wrote in 2007 referring to the use of nil rate bands on first death. I believed the rules were aimed at creating apathy with financial planning.
Because you are able to use two nil rate bands on second death if you had not used your spouse’s on first death you can easily automatically become the owner of all your spouse’s capital. This is all assessable by the local authority. However if a gift is made on first death this can greatly reduce the value of the estate (sometimes to nil) and not fall foul of deliberate deprivation rules.
If you have a question for Peter on long term care or estate planning call Peter on 0845 230 9876, e-mail info@wwfp.net
Birmingham Post
Elderly Client Adviser
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net
Firms celebrate tourism industry awards success
27-10-2009
By Ryan Hooper
BUSINESSES across Devon and Cornwall have been celebrating after the winners of dozens of industry awards were announced.
The South West Tourism Excellence Awards have heaped praise on a number of businesses across the region, with winners and finalists announced in the 16 categories.
Each category, including awards for large hotel of the year and self catering holiday of the year, is split in to a selection of winners and a smaller number of finalists.
The winners will discover if they have been awarded gold or silver status at the formal awards ceremony at the Saunton Sands Hotel, in North Devon, on November 23.
The gold winners will be put forward for VisitEngland’s National Enjoy England Awards for Excellence 2010, where seven South West businesses received nationwide recognition in April(2009), making it the overall winning region.
Among the winners announced this week are Totnes Rare Breeds Farm and Escot at Ottery St Mary – both in Devon – and Oakham Treasures in Bristol, who won the small visitor attraction of the year, sponsored by Take One Media.
The Polo on the Beach event, held at Watergate Bay in North Cornwall in June, is among the winners in the tourism event of the year category, while Cornwall’s Eden Project and Trebah Gardens are nominated for gold alongside Bristol Zoo Gardens for large visitor attraction.
Jamie Christon, VisitDevon’s acting chairman, said: “Devon businesses have historically done very well in these awards, both on a regional and national level reinforcing the county’s position as one of the UK’s favourite tourist destinations.”
Penny Woodman, interim head of VisitCornwall, said: “Winning an award on a local basis is an amazing achievement but to take it onto the next level and to be recognised among the best tourism businesses in the South West really says something about the quality of your product.”
Alistair Handyside, chairman of organisers South West Tourism, paid tribute to those winners who had triumphed despite the economic climate.
He said: “These businesses have shown that customer care, staff training and continued investment have not faltered but have grown and they are committed to exceeding visitor expectations.”
The awards allow businesses to showcase their quality to customers, and, according to organisers, help build morale amongst staff and gain recognition throughout the community.
Entrants need to demonstrate outstanding levels of customer service, plus exemplary facilities, along with a commitment to sustainability and recycling.
Category winners
Small Visitor Attraction of the Year: Oakham Treasures, Bristol; Totnes Rare Breeds Farm, Totnes, Devon; Escot, Ottery St Mary, Devon.
Bed and Breakfast of the Year: Lavender House, Bath; The Salty Monk, Sidmouth, Devon; Coswarth House, Padstow, Cornwall; Woodlands Country House, Padstow, Cornwall.
Tourism Event of the Year: Polo on the Beach, Watergate Bay, Cornwall; Tall Ships 2009, Gloucester; Salisbury International Arts Festival, Wiltshire.
Large Hotel of the Year: Bristol Marriott Royal, Bristol; Thurlestone Hotel, Devon; St Michael’s Hotel and Spa, Falmouth, Cornwall.
Tourism Information Service of the Year: Salisbury TIC, Wiltshire; Gloucester TIC, Gloucester; Yeovil TIC, Somerset.
Sustainable Tourism Award: Globe Hotel, Topsham, Devon; Bordeaux Quay, Bristol; Mazzard Farm Holiday Cottages, Ottery St Mary, Devon.
Large Visitor Attraction of the Year: Bristol Zoo Gardens, Bristol; Eden Project, St Austell, Cornwall; Trebah Gardens, Mawnan Smith, Cornwall.
Small Hotel of the Year: Eastbury Hotel, Sherborne, Dorset; The Bath Priory Hotel, Bath; Ilsington Country House Hotel, Newton Abbot, Devon.
Tourism Experience of the Year: Longleat House VIP Winter Tour, Warminster, Wiltshire; Cornwall Classic Car Hire, Bodmin, Cornwall; Global Boarders, Marazion, Cornwall.
Access for All: Atlantis Holiday Apartments, Torquay, Devon; Double Gate B and B, Wells, Somerset; Pollaughan Farm, Portscatho, Cornwall; Brunel’s SS Great Britain, Bristol.
Taste of the South West: Darts Farm, Topsham, Devon; The Cove, Maenporth, Cornwall; Victoria Inn, Perranuthnoe, Cornwall.
Business Tourism Award: Riviera International Conference Centre, Torquay, Devon; Event Exeter, Exeter, Devon; Brunel’s SS Great Britain, Bristol.
Holiday Park of the Year: Woodovis Park, Tavistock, Devon; Dornafield, Newton Abbot, Devon; Trethem Mill Touring Park, St Just in Roseland, Cornwall.
Self Catering Holiday of the Year: The Big House, Wellington, Somerset; Cossington Park, Bridgwater, Somerset; Boscrowan, Penzance, Cornwall.
Outstanding Customer Service: Simon Mansfield, Ashvale Holiday Park, Paignton, Devon; Ben Wookey, The Bristol Packet Company, Bristol; Gary Zammit, Gwel an Mor, Cornwall.
The Western Morning News Think Local campaign is sponsored by
independent financial adviser Worldwide Financial Planning.
Peter McGahan: On interest rates and sterling
27-10-2009
Will interest rates rise and will sterling continue to depreciate?
Six months ago I would have said no to both questions but it's slightly different today. Quantitative easing is probably the biggest driver for this which in turn links to inflation. News that the economy is still in recession will not assist savers as rates will need to remain lower to support the economy. The figures regarding the economy are, however, an estimate and will be revised and I suspect will be revised upwards as I believe that quantitative easing will soon kick in and provide a support to the economy.
The current very low base rate is probably only there to really support bank's reserves and is having little real effect as most banks have not passed this saving on.
Indeed it is crippling building societies who are not fixed to the Bank of England base rate. Some building societies do not have the benefit of borrowing at a base rate of 0.5% and lending at 4.5% like banks do, instead they rely on borrowing from savers and lending to borrowers and that margin is much tighter at today's levels.
However interest rates could probably rise by another 2% and it will have little or no impact on the borrower but it will squeeze the margins that banks have although I suspect by next May, in time for the election, this will not matter. Savers will be happy and in turn will have the extra 2% and borrowers will hardly notice as many of their loans are collared at a higher rate.
All in time for an election. Watch out for inflation which I suspect may surprise on the upside come Spring. This will put a higher pressure on interest rates. It’s a difficult call but I suspect inflation will pick up early next year and interest rates will rise with it, but the latter will be closer to next October.
I have noticed various products springing up with financial institutions who are offering fixed rate bonds for one to two years. This (cynically) implies to me that they take an upward view on rates, so if you are a saver, I am of the belief that fixing now may not be the most advantageous idea given the threat of inflation, so look closely at that.
Australia is already in an earlier phase with its interest rates and is tightening them.
In the UK there are deflationary pressures on wages, and unemployment is clearly one of them, but this is expected to peak mid next year.
Whilst there is fear of unemployment, consumers do not spend, and employers can depress wages (justifiably) to minimise the impact on their organisational profits.
Why do wages always have to be reviewed upwards?
As for Sterling, well I would have believed last year that it would have turned to a more positive mode but I am wrong with that. In the very short term you should be aware there are some very large short positions built up around sterling (investors have placed large bets that it will depreciate).
The weakness of Sterling or any currency is largely attributed to capital flows. Sterling and the dollar are economies that require large cash inflows but are running considerable current account deficits.
Whilst the faster growing economies are currently attracting the capital, the UK's damaged financial system is less than magnetic so sterling will be under pressure for some time to come. Once again, watch for mid-2009 post-election, as a number of factors fall into play. The UK is still a large exporter (pharmaceuticals, services etc) despite the fact that many think 'they make no cars'.
The weak sterling is probably by design and makes imports less attractive along with exports more attractive. This will be of considerable benefit to the UK economy.
However, on the flip side, Far Eastern companies have responded to this currency risk by marking down prices on their exports to retain the business which is a double whammy to the UK - bigger threat of deflation and still capital outflow to the East.
If you would like to speak to an independent financial adviser call Peter on 0845 230 9876, e-mail info@wwfp.net
Peter McGahan is an Independent Financial Adviser and the Managing Director of Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Services Authority. 'The FSA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
The above represents the personal opinions of Peter McGahan.
All information is based on our understanding of current tax practices, which are subject to change
- Peter McGahan is the Managing Director of Worldwide Financial Planning - FT Award winning independent financial advisers based in Cornwall with offices across the UK. Worldwide have won 16 awards from the Financial Times in four years and are highly respected in financial circles as being experts and specialists within their fields. Peter McGahan writes for local and national publications such as the Western Morning News, Cornish Guardian, West Briton, Financial Times, Channel 4, BBC, Tiscali Money, Yahoo Finance and various other media. If you have a financial query and wish to speak to a dedicated adviser, contact Worldwide Financial Planning on 0845 230 9876 or email info@wwfp.net