napthens in:brief magazine

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in : brief SPRING 2010 ISSUE THREE napthens.co.uk THE NEWSLETTER OF NAPTHENS SOLICITORS Expansion for Trans-Continental Group Napthens has advised market leading distributor Trans-Continental Group on the move of its business from two Blackpool sites to one, larger, Preston location. Business roundup North West Aerospace Alliance’s chief executive, Martin Wright demonstrates the sky’s the limit for the region’s aerospace sector page 2 Equality Bill Napthens’ Stacey Carter points out what employers can expect this October page 2 No business like show business in:brief profiles Blackpool’s iconic and historic Grand Theatre page 3 Advice Patrick Newell, litigation solicitor, highlights how to minimise the risk of prosecutions from regulatory bodies page 6 Opinion Simon Ainsworth, head of Private Client division checks whether the green shoots are appearing in the housing market page 7 Musical maestro in:brief talks to Terry Griffin, head of personal injury, about his guitar heroes page 8 Trans-Continental was founded in 1994, and is one of the leading suppliers of consumer goods in Europe, specialising in Christmas products, garden furniture, pet products and indoor furniture. The group supplies more than 10,000 product lines to household names including Harrods, Tesco, Next, BHS, John Lewis, Asda and Wilkinsons, along with the majority of UK garden centres. It consists of four businesses – Sun Time, Snow Time, Pet Time and Home Time. Currently it occupies two Blackpool sites – its headquarters on Amy Johnson Way, and a 113,000 sq ft distribution site on Olympic Way. The group is now consolidating its two UK sites into one 153,000 sq ft, prestige headquarters it has acquired on Olivers Place, Preston. The new location, the former CCA Stationery building, includes 30,000 sq ft of offices and showrooms and was acquired for an undisclosed, seven-figure sum. Martin Long, partner, advised Trans-Continental on the purchase. Mike Withers, founder and managing director of Trans- Continental, said: “We had been looking for a strategic move for the business for two or three years. Working across the two sites was inconvenient and had the potential, as the business continued to grow, for inefficiency. “The new premises suit our business down to the ground and is in an ideal location with great transport links. Trans-Continental imports about 2,000 containers each year and distributes to retailers throughout Britain and Europe, Preston is the geographical centre of the country and is, therefore, perfectly situated for our business activities. “It’s a prestigious looking building, and the customers who visit our offices and showrooms will be very impressed.” Martin added: “Trans-Continental is a real North West success story. In a relatively short time the group has become a market leader in its field and a highly respected name among its customer base. “This acquisition will allow the group to operate more efficiently, and help in the next stages of its development as a business.” Trans-Contintental Group employs 150 staff, and includes a company in Hong Kong, Trans-Continental Asia Ltd, garden centres in Newton- le-Willows and Sefton, and a newly established internet business. This year turnover is predicted to hit £30 million. It also has offices in Belgium, Hong Kong and China. Andrew Bather of Blackpool-based property consultants Duxburys Commercial also advised, identifying the building and carrying out purchase negotiations for Trans-Continental. Holiday and leisure parks: Special report page 4 & 5 Clare Taylor of Duxburys Commercial, Martin Long of Napthens and Mike Withers of Trans-Continental

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Napthens in:brief magazine Issue 3 - Spring 2010

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in:brief SPRING 2010ISSUE THREE

napthens.co.uk

THENEWSLETTEROFNAPTHENSSOLICITORS

Expansion forTrans-Continental GroupNapthenshas advisedmarket leadingdistributor Trans-Continental Groupon themoveofits business from twoBlackpool sites to one, larger, Preston location.

BusinessroundupNorthWestAerospaceAlliance’s chief executive,MartinWright demonstratesthe sky’s the limit for theregion’s aerospace sectorpage 2

Equality BillNapthens’ StaceyCarterpoints outwhat employerscanexpect thisOctoberpage 2

No businesslike showbusinessin:briefprofilesBlackpool’siconic andhistoricGrandTheatre page 3

AdvicePatrickNewell, litigationsolicitor, highlights how tominimise the risk ofprosecutions fromregulatorybodies page 6

OpinionSimonAinsworth, headofPrivateClient division checkswhether thegreen shootsare appearing in thehousingmarket page 7

Musicalmaestroin:brief talks toTerryGriffin,headof personal injury, abouthis guitar heroes page 8

Trans-Continental was founded in1994, and is one of the leadingsuppliers of consumer goods inEurope, specialising in Christmasproducts, garden furniture, petproducts and indoor furniture.

The group supplies more than10,000 product lines to householdnames including Harrods, Tesco,Next, BHS, John Lewis, Asda andWilkinsons, along with the majorityof UK garden centres. It consists offour businesses – Sun Time, SnowTime, Pet Time and Home Time.

Currently it occupies two Blackpoolsites – its headquarters on AmyJohnson Way, and a 113,000 sq ftdistribution site on Olympic Way.

The group is now consolidating itstwo UK sites into one 153,000 sq ft,prestige headquarters it hasacquired on Olivers Place, Preston.

The new location, the former CCAStationery building, includes 30,000sq ft of offices and showrooms andwas acquired for an undisclosed,seven-figure sum.

Martin Long, partner, advisedTrans-Continental on the purchase.

Mike Withers, founder andmanaging director of Trans-Continental, said: “We had beenlooking for a strategic move for thebusiness for two or three years.Working across the two sites wasinconvenient and had the potential,as the business continued to grow,for inefficiency.

“The new premises suit our businessdown to the ground and is in anideal location with great transportlinks. Trans-Continental importsabout 2,000 containers each yearand distributes to retailers

throughout Britain and Europe,Preston is the geographical centreof the country and is, therefore,perfectly situated for ourbusiness activities.

“It’s a prestigious looking building,and the customers who visitour offices and showrooms willbe very impressed.”

Martin added: “Trans-Continental isa real North West success story. In arelatively short time the group hasbecome a market leader in its fieldand a highly respected name amongits customer base.

“This acquisition will allow the groupto operate more efficiently, and helpin the next stages of itsdevelopment as a business.”

Trans-Contintental Group employs150 staff, and includes a company

in Hong Kong, Trans-ContinentalAsia Ltd, garden centres in Newton-le-Willows and Sefton, and a newlyestablished internet business. Thisyear turnover is predicted to hit £30million.

It also has offices in Belgium, HongKong and China.

Andrew Bather of Blackpool-basedproperty consultants DuxburysCommercial also advised, identifyingthe building and carrying outpurchase negotiations forTrans-Continental.

Holiday and leisure parks:Special reportpage 4 & 5

Clare Taylor of Duxburys Commercial, Martin Long of Napthens and Mike Withers of Trans-Continental

The Bill’s aims are to harmonisediscrimination law and to strengthenit. It will bring together and insome respects extend the existingdiscrimination legislation concerningsex, race, disability, sexualorientation, religion or beliefand age.

It also contains some importantchanges to the law. Some of thekey measures will be to:

• Allow an employer to recruit andpromote an individual from anunder-represented group wherethe individual is at least asqualified as his competitor.

• Widen the definitions of directdiscrimination and harassment tocover claims based on“associative” and “perceptive”.

• Introduce Third PartyDiscrimination (e.g. the employermay be liable for the acts ofa customer).

• Following the case of Malcolm vLewisham Borough Council, it willbe unlawful to knowingly treat adisabled person in a particularway which amounts to adetriment, unless the treatmentcan be justified.

• Limit the enforceability ofcontractual “pay secrecy” clauses.

• Require private sector employersto report on their gender pay gapwhere they have 250 or moreemployees in Great Britain.

• Strengthen enforcement byenabling tribunals to makerecommendations about thebenefit of the wider workforce.

In support of the Bill, equalityminister Harriet Harman has said:“The Equality Bill will promoteequality, fight discrimination in all itsforms, including age discrimination,and introduce transparency in theworkplace which is key to tacklingthe gender pay gap.”

The Bill is set to have a big impactand all employers will need to reviewtheir equal opportunity andrecruitment policies in light of thisnew equality legislation.

Contact:

[email protected]

01772 904280

Business roundupByMartinWright, chief executive, NorthWestAerospaceAlliance (NWAA)

in:briefwelcome

At the start of 2010 we can lookback to 2009 and say theaerospace sector emerged relativelyunscathed compared to otherindustries.

Our feedback suggests that supplychain companies in the lower tierstook the brunt of the downturn inthe year. Workflow through thesupply chain curtailed to someextent as companies took adefensive approach.

However, our Aerospace SupplyChain Excellence (ASCE 1)programme, which aims to create aworld class supply chain in theNorth West, able to compete on aglobal scale, was on schedule. Weare in the process of developingASCE 2 with funding confirmed fromregional and European sources. Thisprogramme will help us to maintaina competitive edge and be one ofthe leading areas in the world inaerospace engineering excellence.

Last year’s Paris Air Show was alsoa great event for flying the flag forthe North West aerospace sector.The NWAA attended with 20aerospace companies from theregion and showcased what thecounty has to offer.

Final figures from the show –opened by French Prime MinisterFrancois Fillon – reveal it featured2,000 exhibitors from 48 countries,with 140,000 professional visitors,205 public visitors and 11Government ministers. We are nowin the process of preparing for this

year’s Farnborough show toshowcase the region.

Aerospace has enormous backing inthe North West, and we shouldcelebrate the achievements from thepast year.

• Funding for the Virtual EngineeringCentre, led by the University ofLiverpool.

• The sale of Typhoon to SaudiArabia and the approval ofTranche 3.

• The announcement of theinvestment in Rolls Royce,Barnoldswick.

• The completion of the civilautonomous systems report bythe NWAA.

• The success of North Westcompanies in winning machiningcontracts on JSF Lightning.

• The establishment of the firstsupplier association on JSFLightning.

• The establishment of the pilotcarbon commodity group and thesuccessful bid for a £1.65 millionbid Technology Strategy Boardproject on carbon weaving.

• The continuing success ofASCE 1.

• The announcement of fundingapproval for ASCE 2.

• The progress in developing a skillscapacity model for the region.

Although certain areas of theaerospace industry may lag behindother sectors in emerging from therecession, there are already signs ofpick up in business jets. The militaryworkload looks strong, andprogressive growth in civil isexpected as the Far East air travelmarket expands.

Looking to the future, we knowenvironmental challenges will drivetechnology development and we willprogress the autonomous systemsagenda to ensure the region playsits part in what will be a new supply

chain. Key challenges for the regionwill lie in generating sufficient skillsand ensuring the region maintainsits share of what will be anincreasing world market foraerospace products and I amconfident that the NWAA will helpaddress these tests.

Contact:

[email protected]

01282 604444

welcome / round up / Equality Bill:

Andrew Clare,corporate partner

Martin Wright

Welcome to the latest editionof in:brief, which bringstogether a wide range ofthoughts, opinions and newsfrom the business and legalworld.

Our special feature takes alook at holiday, leisure andcaravan parks - an area ofwork in which we specialise -and one that is experiencinggrowth. The in:brief specialreport investigates if this is aby-product of the recession orentrepreneurial flare.

Martin Wright, chief executiveof the North West AerospaceAlliance writes this issue’sbusiness roundup andprovides an overview of howthe aerospace industry hasperformed. It’s an industry thatis vital to Lancashire and thewider region, providingemployment opportunities andcontributes significantly to theregion’s GDP.

in:brief also profiles two moreof the firm’s clients – one ofwhich is an iconic brand locallyand one recognisedinternationally. We talk to chiefexecutive and general managerNeil Thomson at the GrandTheatre in Blackpool andStephen Richards, managingdirector of Fast & Fresh, thePreston-based company whichbrought SUBWAY® to theNorth West. Both businessesare doing well in sectors thatare often affected when timesare tough.

Readers will also be givenimportant legal updates byStacey Carter and PatrickNewell in employment andlitigation respectively. We catchup with family law partner,Damian Baron and alsowelcome litigation partner,Sean Gibbs, to the firm. Our‘Talking Heads’ feature gaugesopinion about what a changein government would do forbusinesses across the region.

I hope you enjoy this edition ofin:brief and if you would likefurther advice on any of theissues covered, please feel freeto contact our legal experts.

Thank you.

EqualityBillTheGovernment’smuchheraldedEqualityBill is nowmaking itsway throughParliament.The longawaitedBill followsover four years of reviews, discussions and consultations andis expected to come into force inOctober2010.

2 in:brief SPRING 2010 www.nnaapptthheennss.co.uk

Stacey Carter

No business like show businessBlackpool’s historic – and iconic – Grand Theatre is living proof of the old entertainers’adage that the show must go on.

The Grand is embarking on a newfive year business plan that will seeits name in lights for many years.

Just as importantly, the ChurchStreet theatre is delivering successafter success in the artistic andentertainment arena.

There is a chipper feel about the1053-seat theatre, designed byFrank Matcham in 1894, which iscritically important to chief executiveand general manager Neil Thomson.

“In this business financialprecariousness goes with theterritory,” said Neil. “However, if ourstate of health is measured byputting on the best quality shows forthe widest range of audiences, thenwe’re in very good shape. We arebacked by Blackpool Council andnumerous sponsors.”

Among recent critically acclaimedproductions was a series ofperformances by the Siberian StateBallet & Orchestra which followed anequally successful pantomimeseason with Peter Pan. The balletproved so popular that it will returnin 2011 with extra performances.

“It seems like a contradiction, butthe recession has created an upturnin our fortunes. We’ve had

encouraging figures from the boxoffice recently, and it’s as if peopleare coming here for the feel-goodfactor – determined to cheerthemselves up,” explained Neil.

The Grand’s reputation in theentertainment world is reflected byan impressive array of eclecticshows. It hosts musicals producedby impresario Bill Kenwright, dramastaged by the National Theatre,pantomime from UK Productions,and comedy from big namesincluding Stephen K Amos, JulianClary, Ed Byrne and Armstrong andMiller – not to mention the legendaryKen Dodd.

Major restoration and renovationprogrammes have made substantialcontributions to the sustained historyand heritage of the Grand. In recentyears the interior has been takenback to its 1890s heyday, while theceiling has been restored to itsgrand design of 1910 and newseating and drapes in the theatre’soriginal style and colour (Utrechtblue) have been installed.

The next improvement project willtake place over five years and couldinvolve enlarging the stage usingproperty recently acquired adjacentto the theatre.

“Our stage is quite small comparedto other theatres, especially modernones, and extending it will open up alot of fresh opportunities that wewould otherwise had to have passedon,” said Neil. “For example, ourstage couldn’t accommodate theNational Theatre’s Habit of Art,which was a big disappointment tothem and to us.”

Looking ahead, Neil believes theGrand has a bright outlook. “We do

a lot of work with schools, which isimportant because children are theaudiences of the future, and wehave strong, long term relationshipswith local organisations andindividuals whose support we valueenormously,” he said.

To find out what’s on at theGrand visit;www.blackpoolgrand.co.uk

talking heads / The Grand Theatre / business bites:

www.nnaapptthheennss.co.uk SPRING 2010 in:brief 3

Grand in name, grand in nature

Talking HeadsWould a change in government bring a sigh of relief for businesses or can we expect the tough times to continue?

Jane Haymes, business recoverypartner, Napthens solicitors: “A new government normallyengenders some optimism.Expectations of improvements tothe economy can sometimesbecome self-fulfilling prophecies butthese are not normal times. Thebudget deficit needs reducing andcan only be achieved through cuts

in spending and increases in tax.Cuts in government spending willaffect businesses supplying to thepublic sector.

“High levels of unemployment willcontinue in such a climate which willimpact on consumer spending. Taxhikes, rising interest rates and fuelprices will result in increased costs

for businesses. Taking into accountthese factors (together with thewithdrawal of government supportsuch as HMRC’s “time to pay”scheme) we can expect the toughtimes to continue. Businesses needto be cautious but prepared forwhen better times arrive.”

David Ingram, managing partner,Moore and Smalley CharteredAccountants and BusinessAdvisors: “There is a generalexpectation that a new governmentwill be more business friendly, butthe amount of government debt thathas been created in the attempt toresolve the banking crisis, and thegeneral recession, means that toughdecisions are required whicheverparty gets in power.

“The budget deficit needs to beaddressed and this means one orboth of higher taxation and cuts inpublic spending. Management of tax liabilities will be critical to UKbusinesses and their owners tomitigate some of the planned taxincreases. Cuts in governmentspending will affect businesses both directly and indirectly exposedto servicing the public sector. Inshort, I expect there will be some

difficult times ahead for many of usin business.”

Sean Williams, managing partner,Yorkshire Bank’s PrestonFinancial Solutions Centre:“Regardless of who comes to powerafter the next General Election, UKbusinesses will still face achallenging period of recovery.

“There is no getting away from thefact that big spending cuts will haveto be brought in to reduce thenational debt and that, coupled withthe high level of unemployment,which will continue to depressconsumer spending, will put a strainon the UK getting back to fulleconomic health.

“However, businesses must remainpositive and put plans in place tomanage their growth to be ready forthe real upturn in the UK economywhen it arrives.”

Jane Haymes David Ingram Sean Williams

business bites:Pizza the actionBritons are munching their waythrough a million Domino’s pizzas aweek prompting the fast-food chainto increase store openings

Google knocks on estateagents doorsThe Office of Fair Trading (OFT) hasrecommended relaxing rules forGoogle and Tesco to offer rivalproperty search websites that willcompete with estate agents.

Probably the best profitin the world...Carlsberg reported a 38 per cent risein profit to £425 million in 2009,driven by strong performances inEastern Europe and Asia.

It’s like Blackpoolilluminations in hereThe region’s businesses could saveover £400m by tackling energycosts, according to the Carbon Trust.It is launching a campaign inManchester to persuade businessesto stop wasting energy by taking afree Carbon Survey.

Tidal energy plan forCumbriaA feasibility study is to look atelectricity generation from tidalenergy in South Cumbria. Tidalbarrages, fences and reefs combinedwith other technology are all beingconsidered for the Duddon Estuary.

Contact us:We welcome your feedback andcomments on the articles in thisissue of in:brief. Feel free to drop usa line at [email protected] visit our in:brief page on ourwebsite, www.napthens.co.uk/inbrief.Alternatively, if you want to contactany of the Napthens team mentionedin this issue, please email them [email protected]. We look forward to hearing from you.

4 in:brief SPRING 2010 www.nnaapptthheennss.co.uk

special report: holiday and leisure parks

Holiday and leisurefirms look to thelong termUK holiday companies have received a welcome boost from the ‘staycation’phenomenon, but the North West’s caravan, holiday lodges and leisureparks sector is reaping broader – and more sustainable – rewards.

that it’s more economic to buy acaravan that can cost less than atwo-week summer holiday abroad.As owners of a caravan or holidaylodge, they are clearly intending touse our centres as a long termholiday choice.”

Andrea’s comments are underscoredby figures showing Partingtons’caravan sales figures for 2009 wereabove average, with caravan holidaybookings up 28 per cent.

At Ribby Hall Village near Blackpool,the staycation phenomenon isregarded as a commercial fillip, butnot the basis of strategic businessplanning for 2009 - 2010.

“We’re only too aware that ourcustomers are savvy shoppers andoften look for and expect discounts

and value for money. We have seena record number of last minutebookings and record numbers ofguests taking advantage of ourloyalty offer,” comments marketingmanager Charlotte Gili-Ross.

“Every year our industry is affectedby macro-economics that are out ofour control such as the weather andthe fluctuating euro.

“While we have to be able to reactquickly to these changes, weconcentrate our marketing efforts onwhat we can influence such ascontinually improving our productoffering, listening to what ourcustomers want, and ensuring weprovide consistently excellent servicelevels,” added Charlotte.

Traditionally regarded as the holidayof the ‘anorak’ culture, caravanningis increasingly attracting people fromdiverse demographic categories.

“The so-called ‘silver’ market hasalways been strong, but it’s a muchlooser term these days. People don’t all retire at 65 and we’reseeing many more retired and semi-retired people in their fifties,”explained Michael.

“In addition, we’ve seen an increasein sales to families with youngchildren who want more flexibilitythan they can get at a hotel. This isalso a cyclical market – people whoused to take their childrencaravanning enjoyed the experienceso much that they are returning nowthat their kids have grown up.”

Blackpool-based Partingtons HolidayCentres, which operates five parks inBlackpool, the Lake District andYorkshire Dales, has also takenadvantage of the trend towards UK-based holidays in the short-term aswell as on a sustainable level.

“We have benefited from thestaycation concept with our holidayoperations, but our core business is supplying privately-owned holiday homes to families who have access to our facilitiesthroughout the season,” saiddirector Andrea Challis.

“We have seen an increase incustomers who would normallytravel abroad but have decided

The region’s caravan and holidaypark companies have respondedpositively to the downturn by takingan entrepreneurial approach to theirbusinesses while seizingopportunities that bode well for their future.

“At Napthens we have seen NorthWest caravan and holiday parkcompanies benefiting in the shortterm from the staycation trend whileenhancing their longer term positionin the market through better qualityproducts, higher service levels andcontinuing focus on customers’needs,” commented Napthenspartner Martin Beardsworth.

“Soundly managed businesseswhich respond to changing marketconditions will thrive and our regionhas no shortage of caravan andholiday park companies that fall intothis category,” added Martin.

Among them is Preston-baseddealership Campbells Caravans andMotorhomes. “The staycation ideahas helped, but not to the extentsuggested by the media,” said groupchairman Michael Campbell.

“It’s part of a wider mix of factorsthat has been growing over theyears. With touring caravans you geta sense of adventure on the openroad, variety and flexibility of locationand low cost. Compare this toairport security worries, flight delaysand relatively high costs associatedwith overseas holidays and it’s easyto see the appeal of caravanning.”

The industry at a glance• The UK holiday parks industry generates an annual spend of £2.9billion, mainly in rural economies and accounts for 20.5 million tripsannually (defined as two nights or more away from home).

• Around one in five of paid-for holiday bed-nights in the UK is spent inpark accommodation, including caravan holiday homes, tents, touringcaravans, motorhomes, chalets and timber lodges.

• Of the 89.2 million nights spent in parks each year, visitors stay insurroundings ranging from isolated rural farms to multi-entertainmentparks at major resorts.

• In the UK there are some 4,000 holiday parks; 498,000 touringcaravans; 112,000 motor homes; and 335,000 caravan holiday homes– totalling about one million units of holiday accommodation.

“Soundly managed businesseswhich respond to changingmarket conditions will thriveand our region has noshortage of caravan andholiday park companies thatfall into this category”

Michael Campbell Charlotte Gili-Ross Martin Beardsworth,

special report: holiday and leisure parks

Luxury cottages surround the lake at Fisherman’s Lodge, Ribby Hall Village

Future is bright but issues remain, say industry expertsIn 2009 the domestic tourism market saw an estimated volumegrowth of some 5 per cent, drivenlargely by the recession andstaycation concept.

However, the picture may not be asrosy as it seems because bargain-hunting holidaymakers have beenspending less.

“It’s difficult to say with certaintywhether the volume growth has ledto increased revenues,” saidStephen Hunter, senior partner atthe Preston office of accountancyfirm KPMG, who recently presenteda paper to the British Holiday &Home Parks Association (BH&HPA).

“Within the sector there are winnersand losers. Businesses focusing onselling expensive but high-qualitylodges or larger caravans have

found fewer customers with this sortof money to spend.

“On the other hand, those sellinggood quality, second-hand smallercaravans have found that thecustomers are there in as manynumbers if not more.”

Well-run businesses have respondedwith entrepreneurial agility tochanging market conditions,adapting their products to meetmarketplace requirements.

“The star performers are those thathave offered good quality, value-for-money products, and those thathave suffered have perhaps onlybeen able to offer a perceivedexpensive product, such as arelatively costly twin-unit caravan orlodge,” added Stephen.

He believes the prospects forcaravan, holiday lodge and holidaypark businesses are encouraging:“Given the current exchange rate ofthe pound, and provided that theeconomy continues to move out ofrecession, the outlook is reasonablybuoyant for the industry.”

The main opportunities for theholiday parks sector are bound upwith its principal challenges,according to Jon Boston, of theBH&HPA.

“What people are increasinglylooking for – especially if children areinvolved – is the option of indoorentertainment. For this reason, manyholiday parks are now investing infacilities such as pools and leisurecentres, plus more grown-upattractions including spas, gyms and

health-and-beauty salons,” said Jon.

“At the same time, the holiday parkssector continues to be frustrated bythe problems of obtaining planningconsent for expanding existingparks, or developing new sites.”

Holiday parks typically contributeabout 20 per cent of the income torural economies in popular tourismareas and sustain around 15 percent of full-time and seasonal jobsthat are tourism-dependent.

“It can be easy to underestimate theimportance of holiday parks to ruralregions such as the North West –not least because parks aregenerally far less visible than hotelsand guest houses. But collectively,their contribution to local economiesis both substantial andirreplaceable,” added Jon.

Stephen Hunter

www.nnaapptthheennss.co.uk SPRING 2010 in:brief 5

All businesses now face greaterregulations and consequently are atincreased risk of prosecution fromregulatory bodies.

Many authorities, including the fireauthorities, local authorities, Office ofFair trading, Environment Agencyand the Health and SafetyExecutive, have the power to bringprosecutions and are now frequentlyexercising this right.

In many cases, the prosecutingbody doesn’t have to prove thebusiness owner intended to commitan offence, merely that it happened,which makes defending a case a lot harder.

Traditionally, a defence would rely onthe fact that the accused dideverything within their power toavoid the incident occurring.However, business owners nowhave to show they had proper riskassessment, policies and systems inplace and evidence to show they’dbeen followed.

Penalties will often result in fines - a statutory maximum for summaryoffences is usually £5,000. Offences brought by regulatorybodies often exceed that figure, with certain cases resulting in finesup to £50,000.

There are other costs to consider.Business owners will have to coverthe costs of remedying the effects ofan incident. There are also the costsof bringing the prosecution to court,and as regulatory bodies are allowedto recover their own legal costs, thedefendant will need to paycompensation. Of course there isalso the cost of the disruption to thebusiness, caused by aninvestigation, to take into account.

In corporate manslaughter cases,the penalties which the courts arerecommending often exceed sixfigure sums combined with thepossibility that senior managementor directors could be held personally responsible.

To avoid prosecutions, it isimperative that business ownerscarry out stringent and regular riskassessments to minimise the effectof potential incidents. Systems needto be put in place and proceduresfollowed but they must also beregularly audited. Doing so will helpa defence if an incident hasoccurred. In some cases evidenceof robust risk managementprocesses could help reduce thepossibility of a prosecution. After anincident has happened it isimportant to react swiftly, takingappropriate action which will reduceany penalty and may also, whereapplicable, reduce the costs ofremedial works.

Our expert litigation team hasadvised a wide range of clients inrelation to regulatory prosecutionsand preparing risk assessments,helping clients protect theirbusiness. Our experience tells usthough, that prevention is definitelybetter than cure.

Contact:

[email protected]

01772 904358

Robert Dobson

ask the expert / legal update / Fast & Fresh:

Businesses face greater level ofprosecutions from regulatory bodiesPatrick Newell, solicitor in the litigation department looks at the increasing number ofprosecutions from regulatory bodies and considers how business owners can minimisepotential risks.

Fast & Fresh – hungry for growthA break from the construction industry and a year spent travelling the world, prompted aPreston entrepreneur to establish his Fast & Fresh company in 1998 and bring a globalbrand to the North West.

Stephen Richards was travelling inAustralia when he spotted anopportunity with SUBWAY®. “Thestores were all the rage in Australia,the States and lots of othercountries – but they were relativelyunknown in the UK. I practically livedon Subs while I was out in Australiaand New Zealand!” said Stephen.

“I knew the concept would work inthe UK but success globally doesn’tnecessarily mean success here. I dida lot of homework before I made upmy mind and once I did I got on aplane to Australia and got a job in aSUBWAY® store in Sydney for sixmonths. It was one of the bestmoves I’ve ever made. I learnedeverything from making a sandwichto running a business and I wasconvinced this was the right move.”

When he returned to the UK in1998, Stephen applied to theSUBWAY® chain’s headquarters inAmerica to be a franchisee anddeveloped a business plan. He was

accepted and embarked on histraining in Milford, USA. Eightweeks later, his first restaurant inBlackpool opened and he has neverlooked back.

The company is split into twobusinesses, Fast & Fresh Ltd andFast & Fresh Restaurants. Theformer is a development agent,responsible for the success of 106stores across the North West andthe Isle of Man while the lattermanages the day-to-day running of42 of those outlets. Recent newopenings include Liverpool JohnLennon Airport and the CapitolCentre in Preston.

Sales at the business have grown60 per cent a year from £2.6m in2005 to £10.6m in 2008; employingover 400 staff in the process. Lastyear, the Preston-based companyranked 83rd overall in the SundayTimes’ 100 Fastest GrowingCompanies league table, and 11th inthe North-West.

Stephen concluded: “We areplanning to open ten more outletsthis year, bringing new style formatsand growing the business. It isn’twithout its challenges, as sourcingfinance is still proving to be difficultbut we are in a robust industrywhich offers great opportunities. We

can overcome any barriers togrowth given the fantastic people wehave at Fast & Fresh, supported bya powerful global brand.”

For more information about Fast& Fresh, visit:www.fastnfresh.co.uk

Patrick Newell

Stephen Richards

ask the expert: ShareholderdisputesRobert Dobsonspecialises inhandling corporatetransactions andcommercialarrangements. Q: My business partner and I haverecently established a company. Wewant to make sure each of us isaware of our legal duties,responsibilities and obligations. Whatdo we need to put in place?

A: You will need to get ashareholder agreement – it’s one ofthe most important documents acompany can have.

Agreements should be tailor-madeto each business. A properlythought-out agreement will ensurethe smooth running of any size ofcompany and stipulates whatshareholders’ responsibilities andpowers are. They will also defineprocedures within which a companyoperates.

Agreements can detail issues suchas how shareholders can transfertheir shares smoothly, proving usefulin the event of retirement, disability,death or even divorce.

If a shareholder dies without anagreement their spouse or anotherfamily member could take their placein the company. This could bringproblems, so an agreement couldprovide a way for shareholders tohave first refusal to purchase thedeceased’s shares. Without anagreement a shareholder could alsosell their shares to anyone – evencompetitors.

An agreement will also need tocover the issue of liability. Normallyshareholders are not held personallyresponsible for a company’s debtsand obligations, but if they havepersonally guaranteed a loan or debtthey will be.

They are particularly useful in theevent of shareholder disputes. Ifthere is a disagreement, relating to“critical” business decisions, anagreement provides a framework toresolve disputes, for holdingmeetings and agreeing upon thefuture strategy of a business.

Contact:

[email protected]

01772 904342

6 in:brief SPRING 2010 www.nnaapptthheennss.co.uk

a day in the life of / Rock Work / opinion:

Preston born and bred, Damian is amember of the Law Society's FamilyLaw Panel as well as sitting on theAppeal Panel of the Legal ServicesCommission.

77..3300:: Jump in the car and head tothe Preston office. Tune into thenews and shake my head indisbelief regarding the latest anticsof a professional footballer!

8.00: Prioritise duties for the daybefore checking numerous emails.Although a majority of clients are inthis country, I have clients in Italy,

France and South Africa so theirrequests for advice arrive at alltimes.

8.30: My secretary, Louise Johnson,comes in and reviews what’sscheduled for today. I call acolleague in the litigationdepartment who needs advice onprotecting a wealthy client’s assets.

9.00: I have a conference call with afinancial adviser and his client andgive my input to her situation whichis proving to be quite traumatic butwe are on hand to offer support -and will meet with her when she isready.

10.00: My first meeting is with asuccessful businessman who hasfound out his partner has beenhaving an affair. They are notmarried and he’s worried aboutwhat will happen so I take himthrough the process and what hecan expect to deal with. Although it can be very emotional, we have to make sure our clients areprotected and keep what is rightfullytheirs. He’s thankful for the adviceand support.

11.30: I call a divorced client whohas been having problems seeinghis children. The other side have

sent fresh proposals allowinggreater access. He’s pleased withthe new arrangement and happierstill that he won’t have to gothrough an expensive court hearing.

12.00: An assistant solicitor in myteam calls. She wants guidance ona very complex tax issue so weinvolve the firm’s tax specialist,Stephen Betts. We report back tothe client and detail how we canhelp him.

12.30: Lunch involves grabbing asandwich during a ‘head-clearing’walk round the city. Back in myoffice, I schedule a meeting with abusiness contact, who is introducingme to a client. I catch up on thenews again and wonder what thehell the footballer was doing andwhat his lawyer must be thinking!

1.00: Read through a selection ofcase papers for a court hearing thatis on the horizon which needs indepth research and preparation sothat we get the outcome we wantfor our client. Get a call from a clientwho needs clarification on pre-nuptial agreements and I explain tohim it needs to be robust bearing inmind his financial position.

2.30: I attend a pre-hearingconference with a client who can’tagree with her estranged husbandon the division of their assets. Weare due to start a Financial DisputeResolution hearing, but they reachan agreement. We then appearbefore the judge who hears ourproposals and makes a ConsentOrder that ends the proceedings.

4.30: Back to the office where thereare urgent emails and phone calls tobe dealt with. Make a quick call tomy wife Shena, who is a legalexecutive in the Chorley office tosee how her day has been.

6.00: I leave the office on timetonight as I’ve been invited to anevent by a wealth managementadviser. I’m looking forward to it asex-British Lions captain, Willie JohnMcBride is speaking at it and it willbe good to catch up with othercontacts.

Contact:

[email protected]

01772 904270

A day in the life of…Damian BaronDamian is a partner and family law specialist with a particular interest in the financial,property and business aspects of marital and relationship breakdowns, often involvingmulti-million pound settlements.

Damian Baron

RollingRockA Blackpool charityhas expanded tolarger premisesthanks to advicefrom Napthens’CommercialProperty team.

Leona Bulmer and Martin Longadvised the Rock Work OpportunityCentre on its move from an office onBristol Avenue, Bispham, Blackpool,to larger premises at Mowbray Drivein the town.

The charity, founded in 1980 and ledby a group of voluntary trustees,specialises in supporting adults withphysical and educational needs whoare unable to work in thecommunity. It works with about 75-80 people, and recent expansionmeant the organisation outgrew itsformer building.

The centre and its six full-time staff,offers training in life skills and work,helping people referred by localsocial services teams to lead anormal life.

Leona Bulmer said: “Rock Work hasbuilt a great reputation in the areaand does some outstanding work inthe community. It’s a pleasure to seethe centre doing so well.”

John Boyle, honorary treasurer forthe charity, added: “Our newfacilities will mean a much moremodern and up-to-date service forour staff and service users, andeverybody is looking forward to themove.

“We are always looking foropportunities to help people bothcommercially and personally, andthis move will mean we are betterplaced to do that.”

Leona Bulmer and the Rock Workteam

As last quarter’s official figures finally show economic growth, it’swithout doubt we’ve had a prettytorrid 18 months in the housingmarket but there is a sense ofoptimism emerging.

In simple terms, it felt like theproperty market fell off the edge of acliff in October 2007. As the countrywent into recession our figuresdropped for over a year, toDecember 2008, when we took onour lowest number of conveyancinginstructions, around 70 per centdown on the peaks of 2005/2006.

A combination of the banking crisisleading to the withdrawal of a hugenumber of mortgage products, thegovernment’s insistence oncontinuing with costly HomeInformation Packs and clear

over-valuation of national housingstock, combined with uncertaintyover jobs led to a huge lack ofconfidence in the market.

Thankfully, we saw a noticeableupturn in business in the spring of2009, possibly slightly sooner thanexpected. Buyers realised thatinterest rates will simply never belower and governmental pressureforced lenders to introduce moremortgage products to the market. Alittle more confidence in job securitycombined with noticeably lowerhouse prices helped.

Since then we have seen a steadyincrease in the market, albeit at avery slow rate month by month. Inour regular discussions with estateagents and mortgage brokers thereis a world of difference between the

outlook as it stands now comparedto at any time through 2008.Interest rates remain low and whilstthere is talk of an increase on thehorizon this does still seem to besome way away.

Prices are starting to creep back upslightly – although probably areflection of the low number ofhouses on the market. Asconfidence improves and morehomes are marketed, prices shouldnot increase dramatically over thenext 12 months.

There is clearly a long way to go andI doubt we will ever again see thepeaks of a few years ago but we arerecruiting again in the residentialproperty department - a sure sign ofa real upturn.

Contact:

[email protected]

01772 904229

o pinion piece: Simon Ainsworth, head of Private Client division

Property green shoots?

Simon Ainsworth

www.nnaapptthheennss.co.uk SPRING 2010 in:brief 7

Preston: 7 Winckley Square, Preston, PR1 3JD DX 714572 Preston 14 Tel: 01772 888 444 Fax: 01772 257 805 Email: [email protected]

Blackburn: St Andrew’s House, Wellington Street (St John’s), Blackburn BB1 8DB DX 17964 Blackburn 1 Tel: 01254 667 733 Fax: 01254 681 166 Email: [email protected]

Blackpool: 41-43 Springfield Road, Blackpool, FY1 1PZ DX 714350 Blackpool 5 Tel: 01253 622 305 Fax: 01253 295 591 Email: [email protected]

Chorley: 10-12 St Thomas's Road, Chorley, PR7 1HR DX 18412 Chorley Tel: 0845 260 2111 Fax: 01257 260 096 Email: [email protected]

www.nnaapptthheennss.co.uk

Napthens LLP, registered office: 7 Winckley Square, Preston, Lancashire PR1 3JD.

Napthens LLP is a limited liability partnership registered in England and Wales: OC325775. The term “Partner” indicates a member of Napthens LLP who is not in partnership for the purpose of the Partnership Act 1890. A list of members is available from our registered office.

If you do not wish to receive future copies of in:brief, or wish to receive it by email, please contact [email protected] or 01772 904 397.

and finally:

Sean on board aslitigation team expandsCommercial litigator Sean Gibbs has joinedNapthens, bringing more than 20 years’experience with him.

Sean takes up the post ofcommercial litigation partner from asimilar role at DWF in Preston.

He has vast experience working onall types of commercial dispute,from boardroom issues toshareholder and partnershipdisputes and professionalnegligence. He also has extensiveHigh Court experience, and oftendeals with high value cases worthseveral million pounds.

Sean’s experience also includesdefamation and malicious falsehood,

trademark infringement and breachof confidence, and he has acted fora range of clients from institutionalbodies, owner managed businessesand SMEs.

He said: “Napthens has alwaysbeen a firm I have admired, both forthe quality of its lawyers and for itsstrong client base.

“I am keen to be involved with a firmwhich has a real buzz about it and isobviously going places. I am lookingforward to working alongside someexcellent lawyers to provide acommercially focused legal serviceto the business community acrossLancashire.”

John Whittingslow, partner andhead of the Commercial division atNapthens, added: “Sean is a highly-rated litigation lawyer and I amdelighted he has chosen to move towork with us at Napthens.”

Meanwhile, Sean’s former DWFcolleague, tax expert Stephen Betts,has joined the Napthens Corporateteam, and will offer advice onmatters including share optionschemes, stamp duty land tax andinheritance tax.Me and my… Guitars

Jimmy Page, Gary Moore, Eric Clapton, Pete Townsend and PeterGreen are a few musicians that partner and head of Personal Injury,Terry Griffin, refers to as his guitar heroes. Heroes that have fuelledhis passion for music.

“My interest in music started as a13 year-old when myself and a fewfriends formed a band. We weren’ttrying to be the next Rolling Stonesit was just a bit of fun” says Terry.

His interest in music and playing theguitar arose when a Saturday jobenabled him to save £13 to buy hisfirst second hand guitar and Beatlessong book, kick starting his loveaffair with guitars.

Terry’s collection of guitars nowincludes a Gibson Les Paul, which is a 1960’s replica, a 1952 FenderTelecaster, a classic Spanish guitarand an electric acoustic guitar, not forgetting numerous amplifiersand pedals.

“The guitars are far too good for mereally given my lack of talent. Mostof my playing is limited to home soany poor unsuspecting member ofthe general public can rest assuredthat I won’t be murdering classicguitar tracks in the open. Although I do get together with a couple of like-minded friends who go toeach other’s houses and annoy our respective spouses with ourmusical inabilities.”

But Terry is obviously playing downhis talent as it has inspired his eightyear-old daughter to follow in herfather’s footsteps and pick up aguitar. “She’s very good and will singalong to some of the tracks sheknows and is now the proud owner

of a small pink acoustic guitar.We’re planning to form a rock duo!”He says with a smile.

His musical career may take offsooner than he anticipates. “I’mworking with a couple of friends onputting a piece of music together fora fiftieth birthday – but don’t worrywe are certainly not planning onreleasing it.”

Contact:

[email protected]

01772 904259

Charity totalNapthens has raised more than£2,000 for local good cause theRosemere Cancer Foundation.

Events including a dress down day,raffle and other staff activities,helped staff raise a total of £2,029.

Napthens will next sponsor theRosemere family 5k run andsponsored walk in Witton Park,

Blackburn, on May 23. To helpsupport the efforts, log on toNapthens’ charity website, atwww.justgiving.com/napthens

Sean Gibbs

Terry Griffin: Rhythm and blues brother