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Winter News 2008
w: champion-accountants.co.uk
2. Growth in Preston
3. Deal Makers
4. Focus on the Economy
5. News from CWM
6. The Word is Out!
Champion Consulting Ltd.1 Worsley Court, High Street, Worsley,Manchester M28 3NJt: 0161 703 2500 f: 0161 703 8212
Champion BusinessSolutions Ltd.71-73 Hoghton Street,Southport PR9 0PRt: 01704 535687 f: 01704 500855
Champion Haworth Moore Ltd.54 Caunce Street, Blackpool,Lancashire FY1 3LJt: 01253 621512 f: 01253 752576
Champion Allwoods Ltd.2nd Floor Refuge House,33-37 Watergate Row,Chester CH1 2LEt: 01244 404420 f: 01244 404440
Champion BusinessAdvisors Ltd.4 Nile Close, Nelson CourtBusiness Centre, Riversway,Preston PR2 2XUt: 01772 735000 f: 01772 761761
Welcome to ourWinter Newsletter
Welcome to the winter edition of ournewsletter, I would like to extend a warmwelcome to our new clients joining us as a
result of our merger withRobinsons CharteredAccountants. We lookforward to working withyou.
In these unpredictabletimes we have invitedsome of our professionalassociates – a banker, aninsolvency specialist andan asset based lender - to
give us their views on the Economy, whileAdrian Shandley from Champion WealthManagement gives his thoughts on the volatileinvestment market.
Also in this issue we introduce Len Bell, ournew Group Director of Leisure, Tax Director GillBurns updates us on tax planning using trustsand Simon Blackburn fills us in on ‘The Word’-the new e-newsletter from Champion BusinessSupport.
In a first for Champion, Chester Director MikeJackson and his team acted as reportingaccountants to Scancell Holdings Plc for theirsuccessful flotation on the London PLUSmarket. You can read more about this and otherdeals in the ‘Deal Makers’ article on page 3.
Finally, in these troubled times, I urge you toseek advice from the Champion team inrelation to anything included in this newsletteror indeed any other issues which may becausing you concern.
Ged Cosgrove
Group Managing [email protected]
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Champion has joined forces with Preston-basedaccountancy firm, Robinsons.Client Director Stephen Robinson and his team of six joined the Champion fold in October,following a merger with our existing Preston office, Champion Business Advisors Ltd.The deal, under which Robinsons willadopt the Champion brand name, is thenext step in the ambitious growth plans forthe Champion Group, following a mergerwith Blackpool-based accountancy firmHaworth Moore in August of last year.
Originally established in 1958 by Stephen’sfather and uncle, Robinsons are nowsituated just next door to Champion’sPreston office. Stephen was made Partnerof the firm in 1985, started his ownpractice in 2000 and now has over 25years experience, specialising in workingfor religious charities and owner managedSME’s.Speaking on behalf of Robinsons, Stephencomments: “We pride ourselves on
delivering a personal service through thestrong relationships we build with ourclients. As always, our clients remain atthe forefront of our minds and we firmlybelieve the merger is a positive moveforward for all involved”.
Champion Director Dave Woodcomments:“We are thrilled to welcome Stephen andhis team to Champion. The merger willbring the best of both worlds to existingRobinsons clients: continuity of highaccounting service standards from thecurrent Preston team, complemented byaccess to a much wider, progressiverange of services from across theChampion Group”.
Growth in Preston
THE DEMERGER OF FOXBROS (BLACKPOOL) LTD Fourth generation familybusiness Fox Bros (Blackpool)Ltd previously combined heavyplant, excavation works, cranehire and haulage withcommercial and domesticproperty development. Thebusiness has been reorganisedand separated into individualcompanies, keeping taximplications to a minimum.Group Tax Director Gill Burnsadvised on the deal commenting,“Fox Bros were a great client towork with, allowing us to guidethem through the complextaxation and legal issues”.Managing Director Paul Foxcomments, “I want to thank Gillfor her energy, tenacity andexpertise during our recentdemerger project. The work shedid has put us in a strongposition to continue our growthand success. I would readilyrecommend Champion’sservices to others seekingaccountancy and businessadvice”.
THE SALE OF ACCLAIMDEVELOPMENTS LTD
Preston Director Dave Woodadvised on the sale of AcclaimDevelopments Ltd, operators ofthe Kings Gap Hotel in Hoylake,to the tune of £2.25m.Champion continues to act forformer King’s Gap owner TonyHolland in respect of his currentbusiness, the Northop HallCountry House Hotel in Chester.
Tony comments, “I wasabsolutely delighted with thework Dave Wood, AndrewPilling and the rest of theChampion team did. Theyhelped make a difficult sale gothrough with ease”.
THE MBO ACQUISITION OFRIBBLE VALLEY WINDOWSLTD
Championacted forbuyer SimonWoodward inacquiringRibble ValleyWindows Ltd;
a manufacturer and installer ofdouble glazing. Advisor onthe deal was Director DaveWood and Champion’s
Preston branch continues to actfor the company.
Simon comments, “During thewhole process, Champion, andin particular Dave Wood, were agreat help. Dave assured usand guided us in the decisionswe had to make”.
THE FLOTATION OFSCANCELL HOLDINGS PLC
New Chester client Scancell wassuccessfully floated on theLondon PLUS market, raising£1.5m of new capital. Foundedin 1997 as a spin-out from theUniversity of Nottingham, thecompany is currently developingvaccines which stimulate theimmune system in order to treator prevent various forms ofcancer.
The flotation was the culminationof over six months audit and duediligence work by the Chesterteam, headed up by DirectorMike Jackson.
Professor Lindy Durrantcomments: “The high standardof corporate finance work andyour professional and friendlyapproach was muchappreciated. I always felt theChampion team would doeverything in their power to getthe best result for us and thebusiness”.
Champion has advised on the following deal transactions during the secondand third quarters of 2008...
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Deal makersNorthwest Parkowners can nowaccess specialistbusiness advice forthe leisure sector,courtesy of a newdepartment atChampion.
Our new Leisure Division has been created tomeet the growing demand for a dedicatedservice and will be headed up by industryexpert, Len Bell.
Len’s 25 year career includes 19 years on theBoard of Directors for luxury holiday homegroup Haulfryn, first as Financial Director andmore recently as Joint Group Managing Director.
As Champion’s newly appointed GroupDirector of Leisure, Len will lead a highly skilledteam with extensive experience of managingacquisitions, development and growth in thePark Home and Holiday Park sectors.
He comments: “The creation of the LeisureDivision is an exciting development forChampion. The team’s in-depth industryknowledge will greatly enhance the credibilityof strategic reviews, business plans andfunding proposals. Meanwhile, clientsplanning for the future will certainly benefitfrom our tax advisory and wealthmanagement expertise in respect of taxplanning, succession planning and disposals”.
Group Managing Partner Ged Cosgrovecomments, “We are delighted to have Len atthe helm of our new Leisure Division andbelieve he has the expertise to establishChampion as the Northwest’s leadingbusiness advisor to UK Park Home andHoliday Park operators”.
To find out more, contact LEN BELL on01244 404420 or [email protected]
Business adviceat your Leisure
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In Finance Act 2006, the inheritance tax (IHT) treatment of trusts changed tobring the treatment of all types in line with that of discretionary trusts. It wasinitially thought the new rules would have a negative impact on trusts, limitingthe number of them created by individuals.In fact, the opposite has occurred. Trusts remain an important part of planning whenconsidering tax saving opportunities and in particular succession planning for assets.
For example, assets to the value of £312,000 (the current year’s nil rate band perindividual) can be contributed to a trust fund for family members, tax free. There is acapital gains tax relief available for the transfer of assets into a trust, e.g. with carefulplanning, a married couple could effectively transfer assets to the value of £624,000
out of their joint estate, tax free. This would result in a potential IHT savingof £249,600.
Provided certain conditions are met, for certain assets such as business andagricultural property there is no limit on the amount of value that can be transferred.
Given the current economic climate, such opportunities are increasingly important.For example, there are opportunities to transfer low value assets into trusts now,securing the relief and ensuring that any future growth is outside of one’s IHT estate.
For more information contact GILL BURNS, Group Tax Director on 01617032500 or e-mail [email protected]
Be positive and be brave in the face of the economic slowdown sayChampion’s professional associates. They give their views below:
“”“”“”
“The North West was the only UK region torecord an increase in economic output duringQ3 2008, according to the PMI BusinessSurvey Data, produced by Markit economicsfor RBS.
Whilst the rest of the UK experienced adecline in economic output during the lastquarter there is a region that does buck thetrend and that is the North West. Whilst nextyear will undoubtedly be more challengingthe North West can draw strength from thefact that it is proving more resilient than otherparts of the country.
The current problems in the UK are unlikely tobe as severe as those experienced during theGreat Depression or in Japan during the1990’s. The moves taken by financial servicesorganisations to recapitalise themselves plusco-ordinated action by governments aroundthe world ensures the present situation isdifferent from previous events”. Stephen BoyleSenior Economic AdvisorRoyal Bank of Scotland
“Earlier this year, for the first time, Asset BasedLending overtook the traditional bank overdraftas the primary form of funding for SME’s in theUK- this has been achieved against a back dropof an expanding economy supported byconfident lenders.Since we set up Positive Cashflow Finance almost12 months ago the invoice finance market hasbeen turned on its head with many institutionslooking to reduce facilities and in some casesmanage away fundamentally sound businesses.Our facilities are based on invoice values ratherthan property or personal security so ourconfidence and willingness to support businessesis more about our confidence and belief in theowners than historic out-of-date valuations. As a result we see the current economicclimate as an opportunity for us to demonstrate
the value of dealing with decisionmakers who react swiftly anddeliver what we say.”Phil CheshamSales & Marketing DirectorPositive Cashflow Finance Ltd
“Unfortunately the economy is going toget worse before it gets better, but it isn’tall doom and gloom. Business’ experienceof this recession will be very different to thelast, in a positive way, because the attitudesof banks, funders and even the Government,are much changed. As such there areoptions for Directors looking to retaincontrol of an otherwise viable business.
Alternative funders, such as asset basedlenders, are experienced in lending tocompanies in distress. Similarly, othercreditors such as banks and HM Revenue &Customs are being supportive in order toavoid crystallising losses. This is making themmore patient, giving troubled businessesmore time to get back on track with the hopeof retaining their own revenue streams. The
key for any Director now, is toseek advice early on beforeproblems escalate.”
Paul ReevesDirectorLeonard Curtis insolvency specialists
Trusts Still Going StrongTax Update
News from CWM
When IT issues arise the day to day running of yourbusiness can become difficult. In worst cases, thingscan even be brought to a complete standstill.
Champion IT Solutions are on hand to give you access toexpertise whenever you require it, via our Helpdesk facility.Ensuring you will always have someone to turn towhenever you encounter problems or crashes, ourHelpdesk allows you to concentrate on what you dobest…running your business.
To discuss any of your IT needs, please call Group ITManager SIMON TURTINGTON on 0161 7032500 ore-mail [email protected]
"On recommendation we decided to instructChampion IT Solutions to quote for, install andmaintain our IT requirements. We continue to bevery pleased with the service and response levelsprovided by Simon and his team and would nothesitate in recommending their services to otherpotential clients".
Andrew Nixon, Nixon Williams Ltd
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We haven’t produced a Market Commentarythis quarter as things are moving so fast itwould be out of date before it was printed! The sub-prime problems were seen from a long wayout, the impact was felt in September 2007 andalthough the markets stalled again in Q1 of 2008,most of the economic bad news was thought to bepriced into markets by the middle of the year.
In the USA and Europe we have suffered from weak and indecisiveGovernments and central Banks that have been reactive rather than
proactive. This has led to a total devastation of confidence generally.This indecision was the main initial reason for the depth of the stock-market falls that we saw.
In America, the decision not to save Lehman Brothers Bank will,with hindsight, be seen as the worst mistake of the current crisis.Also in America there has been an element of political denial. But,the necessary and sufficient measures that now seem to havebeen taken globally to halt the falls in markets were unfortunatelytaken too late, as markets had already fallen due to this inaction andloss of confidence.
With stock-markets down 40% this year, thisinevitably has a terrible knock on effect toinvestment portfolios and pensions generally.Nobody saw the depth of this crisis and it hastaken everybody by surprise. Unusually allasset classes have suffered - property funds,shares and equities, corporate bonds, gilts -and even cash deposits have not beenconsidered as ‘safe’.
Never again did I think we would see a crisis ofconfidence in the banking system such as this.
We believe a modest recovery will be staged byChristmas, possibly after the US election, but itwill be the end of Q2 or Q3 2009 before wesee any return to realistic values in globalmarkets. What does appear attractive is thecurrent levels of equities - many shares arenow worth 40% less than they were in thebeginning of October!
If you are holding a portfolio for growth,then in the medium-term we feel marketswill recover and therefore your
investment values will recover accordingly.However, if you are receiving an income from yourinvestments then you may need to review yourportfolio in the short-term, if investment marketsremain at their current levels for a while. Eitherway, as always, we remain committed tosupporting you and advising you especiallythrough this most difficult of periods.For further advice please contact ADRIANSHANDLEY, head of Champion WealthManagement on 0161 703 2500.
What Does This All Mean For The Investor?
Market Volatility
Help is at Hand
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Champion is pleased to announce theappointment of Andrew Hopwood asDirector of their Chester office,Champion Allwoods Ltd.
Originally from Wrexham,Andrew started his career inaccountancy after graduatingfrom Liverpool University with adegree in Maths and ComputerScience. He secured a traineeaccounting role with Chesterbased firm Allwood Baird Hackand became fully qualified three years later, in2001.
Andrew became part of the Champion teamin 2004, when the two practices mergedunder Champion’s ambitious growthstrategy and he is now one of threeDirectors at the site, running a team of 23.He has worked with some of his clients,who are based across North Wales andChester, for the entire 11 years of his career.
Andrew’s appointment is the second of thisnature since Champion started on theacquisition trail. It follows the promotion ofJanice Hurst to Director of ChampionBusiness Solutions Ltd. earlier this year.
Group Managing Partner Ged Cosgrovecomments: “Andrew’s promotion to Directoris well-earned, he is a fantastic asset to thegroup. The loyalty of his clients standstestament to the quality of his work and hiscontribution to the continued growth of theChester office. We encourage personaldevelopment and Andrew is the perfectexample of how homegrown talent canflourish within a progressive company suchas Champion”.
Champion is a leading North Westaccountancy group providing
services that enable a business to grow andcreate wealth for the owners.
• Audit & Accounts• Business Support• Corporate Finance• IT• Management Accounts• Payroll
• Tax Compliance• Tax Enquiry Insurance• Tax Planning• Vehicle Solutions• Wealth Management
Champion’s Business Support haslaunched a new e-newsletter packedwith tips and information for SMEowners and managers.Delivered monthly straight into your inbox,“The Word” gets to grips with thefundamental issues affecting your business -leadership, sales and marketing, people andculture, systems and finance, customerservice and business planning anddevelopment. Offering practical advice and illustrated withreal life examples from the business world,
The Word aims to address a growing need forinstant and useable business advice. Manager Simon Blackburn comments: “TheWord is a frequent reminder to businessowners and managers that they should beworking “on” their business not “in” it. Giventhe current climate, this is more critical nowthan ever before”.He adds: “So far, The Word has been wellreceived and we’ve had some really positivefeedback”.
ChesterAppointmentThe Word is Out!
WIN!If you would like to be
added to the mailing list, send ane-mail to liz.madden@champion-
accountants.co.uk with“The Word” in the subject box. Alle-mail addresses received will beentered into a prize draw to win aFREE Business Healthcheck.
