Consumer goods giant Unilever reported a rise in third-quarter pre-tax profits buoyed by its everyday goods Flora margarine and Dove soap and treats such as Magnum ice cream.

Pre-tax profits were £4.5billion, a rise of 37 per cent. Underlying sales rose 8.3 per cent, lifted by cost-­savings programmes and price increases.

A spokesman for the Anglo-Dutch company said: “People always need to wash and eat.”

He added: “The company’s growth has largely been seen in emerging markets rather than western Europe and North America.”

Chief executive Patrick Cescau said: “This year we now expect to deliver underlying sales growth well in excess of our long-term target range of 3 to 5 per cent.”

He added: “We have streng­thened our businesses in a tough environment. Despite the price rises needed in the light of unprecedented cost increases, our volumes are holding up.”

Analysts remain concerned about Unilever’s marketing strategy and trading in western Europe, its biggest market.

Unilever has struggled to match European food rivals Nestlé and Danone’s 2008 sales targets of 8 per cent and between 8 per cent and 10 per cent.

Unilever said price increases and cost savings meant it had more than offset commodity cost increases of almost o2billion in the first nine months of the year.

Its other brands include Sunsilk shampoo, Knorr soups and Ben & Jerry’s ice cream.

Analyst Graham Jones at Pan­mure Gordon said consumers had bought Unilever brands, despite steep food inflation.

He added: “People should see an end to steep food inflation by 2009 on some products.

The shares were down 7p to 1336p.

Posted in business on 1st November 2008
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Life and pensions giant Standard Life said sales were virtually flat at £12.4billion in the nine months to the end of September.

But the Edinburgh-based com­­pany was “still in a strong position due to conservative investment management policies” amid weakening economic conditions.

Group chief executive Sandy Crombie said: “While markets are volatile and may remain that way for some time, we are well positioned to continue to attract institutional and retail assets.”

Some 2million long-term with-profits savers with Standard Life will see bonus payouts reduced due to falls in share prices.

The life insurer is also introducing stricter penalties for policyholders who want to cash in their pensions and investments early.

Finance director David Nish said there was good growth in corporate pensions and in the Sipp product which had been relaunched online.

Analysts remain cautious in their outlook because of conditions ­“remaining difficult” across all ­markets”.

The shares rose 13p to 213p.

Posted in business on 1st November 2008
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Taking a gap year before going to university has always been a popular activity amongst students with a bit of cash and time on their hands.

But according to high street bank Abbey, British students are becoming increasingly cautious with forking out large sums of cash to go scuba diving in Mauritius or backpacking in Zambia.

According to website gapyear.com a luxury gap year could cost a student as much as £5,000 with the average being around £3,000. Is this money well spent?

Some students who were asked by Abbey Mortgages don’t seem to think so – 42% or 830,000 students questioned said they had already started to save money towards the deposit on their first home, which is more than twice the amount of students saving to go travelling.

Abbey’s research found that 1 in 10 past graduates that have financed a gap year said that they probably wouldn’t have made the same decision in today’s current property climate.

Despite a marginal drop in house prices in the month of January, it would cost a first-time buyer on average £183,324 to buy a home, according to property website Rightmove.co.uk.

Nici Audhlam-Gardiner, the head of Abbey Mortgages said: “House prices have brought in a harsh new reality for students. They now need to weigh up the benefits of travelling against jumping straight into a career and being able to afford to get onto the property ladder.”

Gardiner added: “It is certainly encouraging to see that many university students are sensibly putting money aside for that important deposit on their first home.”

Gary Mizler decided not to take a gap year not only because it was too expensive. He says: “After being with my girlfriend [Louise] for over four years, we were more concerned about securing our long-term future than a short-term experience…If we had used the money to go on a gap year it would have delayed us buying a house by at least two years.”

He believes that the property market has been very difficult for first-time buyers to get onto and thinks more will be able to get onto the ladder in the coming years due to the slow down in the market.

“I think every penny you can save while studying will get you closer to getting on the property ladder after graduation. If I had not started saving early we would have had greater trouble getting on the property ladder,” he adds.

Gary and his girlfriend eventually bought a home in the Mosborough area on the outskirts of Sheffield after managing to save around £2,000 that would have been
spent on airfares and travelling – “not to mention the other untold amounts I would have put on my credit card.”

He is happy with his first home, he adds: “Most of my friends are enviable of the position I’m in, as most are either renting or living back at home with parents.”

The cost of buying their first home is not the only worry facing today’s students.

According to the National Union of Students the average annual cost of student accommodation for 2006-7 during term time in London is £3,752 and outside London is £2,813. It is no wonder that students now don’t want to take a gap year.

In 2006-7, furthermore the overall average weekly rent for a room in an institutionally provide allocated accommodation is £81.80, an increase from 2003-4 of 23%. This is predicted to rise at least in line with the Retail Price Index by over 4.5%.

However, Nina Grayson a student who is now studying for a BSc in anthropology at the university of London really enjoyed taking a gap year last year.

Nina paid approximately £1,970 for a placement on an overseas project which included accommodation, food and a local representative.

“I worked for a 11 weeks in a children’s school in a slum area in Bangalore, India. I assisted teachers, devised activities and helped children on a one-to-one basis,” she said.

Nina funded her placement in India by working as a professional fundraiser in the UK on behalf of Action Aid and Save the Children, as well as working in her local pub on Saturday nights.

She doesn’t seem to be bothered by the fact that she might not be able to get on the property ladder after completing her Gap year or indeed university.

“Those kind of things aren’t important to me. Maybe I’ll change my mind in the future, but for now it is not my priority…I have never had aspirations [of owning] a huge house. As long as my home feels like a home, I’m not bothered about other factors,” she added.

Samuel Tang also took a gap year to Central America – Belize Guatemala and Mexico with Trekforce for five months, and then travelled around South America – Peru, Bolivia and Brazil for another two and a half months.

Samuel is now studying Geography at Exeter University. His gap year cost him around £5,000 including flights and spending money. The additional travelling afterwards with all the flights and spending money came to approximately £2,500.

He really enjoyed his time off and plans to travel and volunteer after finishing university.

“I would like to travel in between university years to South America, preferably to help volunteer in a school again, but I do also have plans to go to South East Asia, Australia and New Zealand after I finish university,” said Tang.

When asked about whether he has plans to save for his first home now he added: “Maybe when I am mid-late twenties, but my priority at the moment is to enjoy life whilst I am young, therefore I want to experience the world before I have a deterrent such as a property preventing me from going wherever I wanted to go.”

The National Union of Students and GapGuru.com - an organisation which creates a ‘perfect’ gap year programme for students are fully supportive of students like Samuel Tang who want to take a gap year before starting university.

“Gap years have traditionally been an opportunity for prospective students to broaden their experiences by meeting new people, learning new languages and skills, and working for voluntary projects across the world. It is a great shame that increasing fees, rising debts and the inaccessibility of the property ladder are pricing today’s students from broadening their development through travel, denying them the opportunities afforded to students in the past,” said Stephen Brown, the NUS national secretary.

Arvind Malhotra, managing director of GapGuru.com said: “While the hike in tuition fees and the negative press that overseas volunteering received in 2007 may have put some would-be gappers off, for others it has forced them to consider how to put a year out to best use.”

“The trends that GapGuru experienced throughout 2007 and into 2008 certainly back this theory, as despite the reported decrease in the number of students taking gap years over the past year, we’ve actually seen an increase in numbers for our medical, journalism and business based work placements in India,” Malhotra added.

According to the Universities and College Admissions Service (UCAS) only 7.3% of 390,890 accepted applicants deferred their entry to higher education from 2006-2007 compared with 7.7% or 31,059 of accepted applicants from 2005-2006.

The “jury may be out” on whether or not to take a gap year before university if you are a student. But with near un-attainable prices for first-time buyers in the UK, it may be wise to put away some savings for that deposit.

Posted in business, features on 1st October 2008
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The Live From Abbey Road series is in its second year. Broadcast on Channel 4/More 4 the series will feature around 38 musical artists usually 3 per show, performing up to 3 songs per session.

Straightforward eh? Absolutely. There are no annoying TV presenters or wacky zoom in angles. It just focuses on the music – man. The format is akin to the once legendary TV music programme The Old Grey Whistle Test. Ask your dad!

Series two of the show will see live performances from Elbow, Def Leppard, Alanis Morissette, MGMT and the Black Keys to name but a few. The last series featured Paul Simon, The Killers, Kasabian and the Red Hot Chili Peppers.

What the audience gets with this music programme is a “no holes barred” performance from the musician with no Alexa Chung or Steve Jones popping up in between songs.

The sessions are also recorded without a live audience in high-definition with the use of 35mm lenses. This is because the producers Michael Gleason and Peter Van Hooke wanted to record performances which “look like a movie and sound like a record.”

The setting of the Abbey Road studios is also inspirational for all you Beatles fans out there. Viewing is a must.

Posted in arts, features, music on 1st October 2008
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Deciding where and when to do business overseas is a big step for a growing company, so it’s important to get the groundwork right.

Taking your business to the next level can be difficult, particularly if it involves beginning to trade overseas. There are many factors to consider before taking your first steps into the international arena, so it’s important to tread carefully.

First of all, there are many emerging markets out there – which countries should you do business with? Richard Sainter, client development manager at Food from Britain (FFB), the international market development network which helps some 700 British food and drink companies each year to build their international business, says: “Current areas of focus for us as development markets are Central Europe and Russia, the Gulf States and Asia Pacific and we are currently exploring expanding our activities in India. However, the EU still remains the UK’s largest training partner: Ireland and France are our first and second largest export destinations respectively.”

Sainter said food and drink exports hit a record £10.5 billion in 2006. Last year’s figures are not fully compiled but look set to reach an even higher mark thanks to the reputation British food and drink manufacturers have for leading the world in convenience food, healthy ranges and own-brand products.

Perfect timing

Secondly, when is the right time for your business to begin trading overseas? Ciaran Crowley, marketing director of Directa (UK) Limited, a distributor of industrial products such as safety signs, tapes and adhesives, decided 18 months ago to expand the Essex-based business which employs 60 people. Following a strategic review that led the company to reassess its business model, it branched out from a catalogue-only supplier into a multi-channel sales operation.

When asked whether he would have done anything differently, Crowley advises: “Put checks in place for overseas customers. While the online sales channel opened up growth opportunities in new geographical areas, we got stung in the early days with a bad debt. We’re now more cautious about vetting overseas customers and we insist on being paid by bank draft.”

Gareth Williams, one of the three co-founders of flight search engine Skyscanner.net, was not fazed by setting up his web-based company during the dotcom bust in 2001 or by growing his business overseas.

“A recession may reduce demand, but four billion flight tickets being sold is such a big market that a slight downturn does not restrict us,” says Williams. “Our business was designed from the outset
to be international. As a web company, and because we show flights that cross borders, this was a natural approach for us.”

BEFORE TRADING ABROAD

Evaluate the business
Assess the options
Make sure you go for the right sort of growth at the right time
Perform a SWOT analysis:Strengths, Weaknesses, Opportunities, Threats
Implement the growth strategy

Be prepared

Williams believes the best route for global expansion is knowing your product. “If we become more popular than say, Expedia in the UK, we can be confident that we have a chance in other countries too. The web helps hugely here in lowering the barriers to competing for overseas visitors.” Points to consider include:

Research local product requirements – It is important to find out about customer preferences, standards and product regulations in different countries. You might even need to change the product’s appearance or design if it doesn’t fit in with certain customs or traditions. Sainter from FFB says: “Working in global markets requires a clear knowledge of the local culture, in addition to the essential knowledge of legal requirements governing labelling and ingredients. We have a network of local offices and associates that work with British companies to plan market-entry strategies and ongoing product management to ensure our products are correctly ‘translated’ for the relevant market.”

Be culturally aware and know local commercial practice – Making the assumption that overseas business people operate in the same way as in the UK could cause offence. For example some countries might see a written contract as a key part of an agreement, others might interpret a handshake as a done deal. If you go to Japan and exchange business cards with people, make sure you study the business card carefully before putting it in your pocket. If you don’t, you may be seen as being rude.

Investigate how products are marketed and sold – Identify major contacts with whom you need to build relationships, for instance customers or suppliers, agents, trade organisations and government departments. International business takes time and investment, and international customers have the same concerns as those in the home market: availability, flexibility and pricing.

Sainter advises: “Ensure you have the resources in place to make your international strategies work. FFB works closely with British food and drink companies to ensure that they have the capacity – both in terms of production and management resource – to grow their business overseas and ensure that international customers are given the same priority as home-based ones. The most successful exporters, in our experience, think of themselves as food exporting companies, not food manufacturers who export.”

Build relationships with UK organisations overseas – The British embassy in your target market is a good start as is that country’s embassy or other organisations in the UK. Consider taking consultancy advice if your budget will allow it.

The British Chamber of Commerce offers a review of how to deal with overseas communications and also makes practical recommendations for improvements.

Do the paperwork – Make sure you have a clear agreement that is internationally recognised and have effective transport arrangements, as logistical problems could create friction. Neil Refson, managing director of Exakt Precision Tools, a power tool manufacturer for the DIY and professional markets, says: “It is important to get your goods quality checked before they are shipped. If they are faulty when shipped you will have to wait for more goods to be shipped and send the others back. This means paying for the shipping three times and you risk letting customers down. The quality checker can either be your own employee or an agent. You also need to visit at least every few months, not just for quality control but to maintain relationships.”

Communicate regularly – Attending trade fairs and exhibitions is a good way of meeting new and existing customers. UK Trade & Investment has a Passport to Export programme that your business can participate in. 

Posted in business on 30th September 2008
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Creating an eco-friendly workplace doesn’t have to cost the earth. Sabuhi Mir examines today’s green offices for RICS Business.

Businesses have become invreasingly aware of creating a sustainable workplace for their employees, choosing either to add green features to existing offices or to construct environmentally friendly buildings from scratch.

Richard Kauntze, chief executive of the British Council for Offices, says: “Since late 2007 there has been a noticeable trend for greater occupier interest and willingness to engage on environmental issues, especially recycling and energy usage.”

Although there are always concerns about cost, there are plenty of green materials – such as carpet tiles and furniture – readily available and no more expensive than less environmentally friendly products, he insists.

Posted in business on 30th September 2008
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THE NUMBER of firms listing on the Aim market has almost dried up due to the credit crunch and the general economic downturn.

What had been a steady flow — as home-grown and overseas companies sought to tap UK investors — turned to a trickle by the start of the summer.

Since then, it has nearly evaporated all together.

According to accountancy firm Baker Tilly, the number of Initial Public Offerings totalled 36 in the first seven months, against 116 in the same period in 2007.

It is a long way from peak levels in 2006 when there were 462 admissions and total new funds raised was £9.9billion.

Chilton Taylor, head of capital markets at Baker Tilly, said: “The total funds raised by new issues has decreased 78.5 per cent from £4.6billion in the seven months to July 2007 to £1billion in the same period in 2008.”

Taylor said the uncertainty could be attributable to the credit crunch and reluctance of institutions to invest, with the exception of oil, gas and mining companies.

The current state of Aim is not to dissimiliar to the early 1990s and the end of 2001, according to Taylor but he said: “Aim is going to recover within the next one to two years.

“Institutions have to put their cash somewhere.”

Taylor’s advice for companies wishing to enter Aim is akin to the Boy Scout motto “Be Prepared”, in relation to having a strong management team and up-to-date litigation and accounting teams.

Mark Percy, a director in corporate finance at broker Seymour Pierce, said: “Fund-raising is significantly down. There has also been a decline in IPOs so far this year, due to general market conditions, with the metal, mining, oil, gas and property sectors all being affected.”

Percy added that, in previous years the property sector was particularly buoyant in relation to Aim.

However, with a potential recession, all that had changed.

An exception to the rule this year was the successful $90million fundraising by Vietnam Property Fund in April.

David Snell, a partner at accountants PwC, said: “It has been a difficult time for Aim and a lot of the capital markets which have been effected by the downturn.”

Snell says that companies have been finding it hard to obtain debt finance and there was little hope for short-term improvement within the next 12 months.

Posted in business on 30th September 2008
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Property website Right­move shrugged off gloom surrounding the housing market to report a 63 per cent rise in first-half pre-tax profits to £19.8million.

Although its estate agent clients are finding the going tough, it has had more business from housebuilders stepping up their marketing.

“These strong results are testament to the importance of the internet and show how people buy their homes,” said managing dir­ector Ed Williams.

Page impressions for the website rose 15 per cent to 3.1billion compared with 2.7billion a year earlier and membership grew 5 per cent despite a fall in the number of estate agents.

Right­move’s total revenue increased 49 per cent to £37.8million, compared with last year, driven by strong growth in revenue per advertiser and its ­lettings and new homes businesses.

Posted in business on 30th September 2008
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INTERNET trading and the inte­gration of its Early Learning Centre business produced a 20.7 per cent rise in first-quarter revenue at retailer Mothercare.

Chief executive Ben Gordon said: “The Early Learning Centre acqui­sition has helped push up sales. Like-for-like sales in the UK are up 1 per cent, which is good in a slowing UK economy.”

Mothercare bought the Early Learning Centre business for £85million last year.

Sales at Mothercare’s Direct in Home unit, which includes internet and telephone orders, increased by 77.7 per cent.

The specialist baby retailer also benefited from international franchisee retail sales, up 50.4 per cent.

Demand from Russia and the Middle East — helped by new store openings — added to growth.

Last week in Beijing the com­pany opened its first shop in China. It plans to open soon in Shanghai.

Mothercare has a total of 526 stores in 49 countries.

Mothercare’s shares stayed unchanged at 346.25p

Posted in business on 30th September 2008
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Lou Reed recorded the album Berlin in 1973. It was a commercial failure. Over the next 33 years, he never performed the album live.”

These comments were made by the director of the documentary in question, Julian Schnabel, who filmed Lou Reed in December 2006 at St Ann’s Warehouse in Brooklyn, New York where he played the seminal record in its entirety for five nights.

There is no shame to be had if you’ve listened to Berlin and found it slightly depressing, tackling as it does subjects like suicide, drug addiction and general self destruction. It’s a record that isn’t for the faint hearted.

With this filming of the concert, Schnabel brings all these themes to light. There is a backdrop of a hotel with greenish walls where Schnabel’s daughter Lola projects the story of the self-destructive character Caroline, played by actress Emmanuelle Seigner. But unfortunately, the fictitious life of the “heroine” (ba-dum tish!) Caroline which is played out whilst Lou is performing his album sometimes borders on the farcical, and at times, even worse, Sienna Miller’s performance in Factory Girl.

Quite unnervingly also, Lou is accompanied by the Brooklyn Youth Chorus and guest vocalists like Antony Hegarty of Antony and the Johnsons who joins in for ‘Candy Says.’ Not only might Antony’s warblings not be everyone’s cup of tea, but he also seems to have been over-zealous with the bottle of black hair dye.

Though the film and this performance has its flaws, its difficult to knock the Velvet Underground legend and all round sacred cow Lou Reed, as he is a man who has clearly been through a lot, both mentally and artistically, with the whole Berlin project. ‘Sweet Jane’ at the end is a particular plus point, but as a film, this is very niche, and very much for the fan

Posted in arts, features, music on 30th September 2008
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