Scrutton Bland Centenary Adviser Summer 2019

Summer 2019

Who we are Scrutton Bland Group provide a range of financial services and professional advice to both business and private clients. Our services include accountancy, tax, audit, corporate finance, employee benefits, insurance and independent financial advice. Our philosophy is simple, we believe in delivering clear, professional advice and are committed to finding the most effective solution for our clients.

Contents Who we are �� 3 Moving with the times �� 4 Celebrating our centenary�� 5 Scrutton Bland, a history in context �� 6 Memorable moments �� 8 Taking control of your finances ��10 Starting them young ��12 A golden opportunity ��14 A little bit of magic and a lot of hard work ��17 It’s not just about the numbers ��19 A taste of the good life ��20 Competition ��23 When is a silo not a silo? ��24 Going with the grain ��25 Innovation in agriculture ��26 Cooperate to operate ��28 A passion for plants ��30 Corporate finance in an age of uncertainty ��32 Insurance for hostels and shelters ��34 Risk management for charities ��36 Financial wellbeing for your employees ��38 What a corker �� 40 An entrepreneurial approach to the community ��42

If you would like to find out more about any of our services, please contact one of our offices:

820 The Crescent Colchester Business Park Colchester

Essex CO4 9YQ 01206 838 400

Fitzroy House Crown Street Ipswich Suffolk IP1 3LG 01473 267 000

Chancery House, Victoria Road, Diss Norfolk IP22 4HZ 01379 643 444 Milton Hall Ely Road, Milton Cambridge CB24 6WZ 01223 928 065

Scrutton Bland Financial Services Limited is authorised and regulated by the Financial Conduct Authority.

0330 058 6559 scruttonbland.co.uk

@scruttonbland

A B O U T U S | S C R U T T O N B L A N D | 3

Moving with the times

Scrutton Bland’s offices have changed over the last one hundred years.

The Diss office was located for many years in Church Street, moving to St Nicholas Street before finally relocating to Victoria Road on the outskirts of the town.

Scrutton Bland’s Cambridge office opened in Milton in 2016

Merrick Hill Insurance was founded in 1968 and was located on St Nicholas Street in Diss. Scrutton Bland acquired the firm in 2004 but retained the Merrick Hill name until recently

Merrick Hill moved to Victoria Road in 2014 and was rebranded as part of the Scrutton Bland brand refresh in 2018

The current Scrutton Bland Colchester office opened in 2007 on the Colchester Business Park with close links to the A12 and is still one of the firm’s key sites.

The Colchester office on St Isaac’s Walk around 1926

The St Isaac’s Walk office were the home of Bland Fielden (now Scrutton Bland) for over ninety years

Construction of the new Colchester office on Severalls Business Park in 2006

The new Scrutton Bland office in Colchester opened in 2007

Originally located in the centre of the town (above what is now Coe’s newsagents) the Ipswich office was relocated to Museum Street and built on the site of the former Black Bell Inn. In 2014 the firm moved again and the current building was opened on the site of the former Temperance Hall.

The Black Bell Inn, on Museum Street Ipswich was pulled down in 1938 and the new Scrutton & Goodchild offices were built on the site in the new Art Deco style

The former Temperance Hall on Crown Street, later the Crown Iron Works, was demolished in the mid-1960s and is now the location for Scrutton Bland’s Ipswich office

Scrutton Bland’s Ipswich office opened at Fitzroy House, Crown Street in 2014 with capacity for over 150 staff

4 | S C R U T T O N B L A N D | A B O U T U S

Celebrating Our Centenary Providing Clear Advice and Effective Solutions for over 100 years

Our business grew out of the shadows of the First World War; other conflicts have come and gone, and we have seen the economy rise and fall over the decades, but we have remained steadfast, supporting our clients and adapting to the changing world around us. Without our clients we have no business, every one of our activities exists to support and guide our clients’ professional and private financial wellbeing, and whilst the services which we offer continue to evolve and change, our dedication to providing the clear advice and effective solutions that our clients have come to expect from us will always remain at the heart of what we do. I would like to thank you, our clients, for your loyalty and support and over the years which has enabled us to grow a business which now operates out of three counties and employs over 230 people. We have ambitious plans for the future and intend to build on our past to continue to improve the services we offer and ensure that whatever your personal or business ambitions, we are there to support you.

I hope you enjoy reading our centenary edition of Adviser . We have so many hugely successful clients, many of whom operate out of the East of England and in each edition we try to showcase at least one of our clients’ businesses in an effort to highlight the wealth of business talent we have in our region. The Partners and I very much look forward to meeting you at one of the many events which we hold throughout the year.

W elcome to our centenary edition of Adviser . I am extremely proud to be sitting as Managing Partner in this, our centenary year. The journey of the Scrutton Bland Group, as we are known today, has been a long and interesting one over the past 100 years, and not without a number of challenges and rewards. In 2019, we are fortunate to be recognising several of our team members for their long service with the firm, some of whom have been with us for over 40 years. This longevity of service is unequivocally a testament both to their loyalty and belief in our business, but also to the commitment which we as a business have always maintained to our staff, our clients and the communities within which we live and work.

Jason Fayers , Managing Partner, Scrutton Bland

A B O U T U S | S C R U T T O N B L A N D | 5

Scrutton Bland a History in context

1908 Parliament approves old age pensions 1912 Titanic sinks

1876 Bell patents the telephone 1878 Invention of the lightbulb 1885 Invention of the automotive car

1903 Wright brothers fly first motorised airplane

1914 World War I begins

1919 Lady Astor becomes the

1919 Bland Fielden is founded in Colchester when CF Bland joins his father’s insurance agency

1919 Alfred Scrutton and Frances Goodchild establish Scrutton & Goodchild in Ipswich

first woman to take her seat in Parliament

1953 Four additional partners (John Davey, Gordon Goodchild, Cyril Smith & Frank Gower) join Scrutton & Goodchild

1968 Nankivell & Sanderson merges with Scrutton & Goodchild to form Scrutton Goodchild & Sanderson in Ipswich

1969 First man on the moon 1971 Decimalised

1990 Bland Fielden and Scrutton Goodchild & Sanderson merge to form Scrutton Bland

1992 Channel Tunnel opens linking

2004 Firm buys insurance

2006 Firm joins Nexia International network

London and Paris by rail 2001 9/11

broker S Merrick Hill Ltd based in Diss, Norfolk

currency replaces ‘pounds, shillings and pence’

W hen Alfred Scrutton and business would still exist today, let alone having offices in four counties and employing over 230 people. Scrutton Bland as the firm is now known, is the product of several historical mergers and acquisitions between local accountancy and insurance businesses. Of these unions, the most impactful was the joining together of Suffolk- based Scrutton & Goodchild and Colchester insurance brokers Bland Fielden, both of whom were established in 1919 meaning that Scrutton Bland celebrates a double centenary in 2019. Francis Goodchild opened their accountancy firm in Ipswich in 1919, it is unlikely that they would have imagined that the

Managing Partner, Jason Fayers is proud of the firm’s history: “Our founding firms were established at the end of WW1 by soldiers returning from the Great War. They recognised the need for financial advice and insurance that the years of war had created and started businesses to meet those needs. It is hard to imagine how life was back then, but one thing remains the same today, which is that people still need sound professional advice when it comes to their finances.” In 1990 the firm rebranded as the Scrutton Bland Group, and in 2004 expanded its operations into Norfolk with the acquisition of Merrick Hill Insurance Brokers in Diss. By the mid- 2000s, Scrutton Bland had outgrown both its Colchester and Ipswich offices, and in 2007 the firm expanded into a new building on Colchester Business Park and an impressive three-story office

100 Years in Business

Scrutton Bland marks its centenary

6 | S C R U T T O N B L A N D | A B O U T U S

1920s Nankivell & Sanderson is founded in Ipswich

1927 British

1928 Alexander Fleming discovers penicillin 1929 Great Depression

1937 Sir Frank Whittle invents the jet engine

1937/38 Scrutton & Goodchild moves into 34 Museum Street

1939 World War 2 begins 1948 Introduction of the National Health Service

1953 Coronation of Queen Elizabeth II 1953 Watson, Crick and Franklin discover DNA’s structure

Broadcasting Corporation (BBC) is created

2007 Colchester

2007 Apple release the first iPhone 2012 The XXX Olympiad is held in London

2014 Ipswich Office moves to Fitzroy House

2015 Queen Elizabeth II becomes the longest- reigning British monarch

2016 Cambridge office opens

2018 Centenary of the armistice marking the end of WW1

2019 Scrutton Bland celebrates its centenary

office moves to The Crescent, Colchester Business Park

on Ipswich’s Crown Street in 2014. In 2016 the firm expanded once again, this time northwards, increasing the size of its site in Diss and opening a new office in Cambridge later that year. As it celebrates its 100th year, the current Scrutton Bland partnership team reflects on the firm’s long history and the position it has held for so long in local communities: TimMulley, Senior Partner, thinks that the similarities between the business approach today and that of 100 years ago could be the reason why the firm has prospered for so long: “Our business is based on trust. Looking after people’s livelihoods, whether that is in business or their personal finances is a huge responsibility and one which we take very seriously. I think understanding what matters to our clients, and genuinely putting them first is what sets us apart

and why we are still operating today.”

out by hand by an accountant or tax adviser.” But, far from being a disaster, Simon sees this as the very thing that could secure the future of the firm. “You don’t get to celebrate 100 years in business without having adapted to the market around you. Whilst the digital age sees an unprecedented rate of change, we are responding by developing and adapting the type of services we offer and the way in which we deliver them to our clients.”

Although being proud of its long history, the modern day Scrutton Bland is firmly focused on positioning itself at the forefront of new technology. Having been one of the first adopters of cloud-based accounting in the region, the firm has recently secured exclusive partnership arrangements with online apps and software providers to ensure that it remains well positioned to adapt to its clients’ needs as both business and personal finances become increasingly digitalised. Simon Pinion, a Business Advisory Partner who is responsible for developing the firm’s digital strategies, identifies this as one the most dramatic changes to affect the firm: “Advisory services are changing. Technology is replacing much of the work which traditionally would have been carried

scruttonbland.co.uk hello@scruttonbland.co.uk 0330 058 6559

A B O U T U S | S C R U T T O N B L A N D | 7

Memorable Moments Some of Scrutton Bland’s Partner team share their memories and reflect on some of the changes over the years

Jason Fayers Joined Scrutton Bland 1998, Partner since 2003

“I do remember that our reception in Museum Street was a bit grim – the receptionist was stationed behind a ‘hatch’ and the one and only meeting room had green striped wallpaper which reminded me of what I always thought a prison would look like. The receptionist at the time was

rather ferocious, but kept everyone in check! The corridors in the building had lino, no carpets on the stairs and the toilets were the old high-level cisterns – the whole building was hot in summer and freezing in winter. Crossing the road from one building to the other was a nightmare: there were 120 buses going down the road in rush hour and if you managed to avoid them there was every chance of being mown down by the cyclists going up! Since I became partner in 2003 the firm has changed dramatically – for the better!”

Tim Mulley Joined Scrutton Bland 1990, Partner since 2003

Sue Gull Joined Scrutton Bland as Partner 2001

“On the first day I started at Scrutton Bland Ipswich, I was shown to up to my room on the top floor of 34 Museum Street. I was slightly surprised to find that the computer monitor arm that was supposed to hold a computer, or at least the screen, in fact held, wait for it, a microwave. Having always been known for loving my food I thought that maybe it was just advance notice of my bad habits, but in fact it turned out that there was nowhere else to put it because the fire brigade didn’t want it on the landing. Sadly it was removed and replaced with a computer, which with the support of our great IT department put us ahead of the game on the technological front, with electronic filing ahead of many of the larger firms.”

“I often got in the office very early and put my tie on when I got in. One morning I ran into the senior partner, Mr Foster. “Mulley! What on earth are you doing?” he barked at me. Never mind noticing my enthusiasm for an early start, all he was concerned about was my open-necked shirt. A few years later when I was made a director, I went to see him. “Good morning Mr Foster” I said. “Do call me David” was his response.”

8 | S C R U T T O N B L A N D | A B O U T U S

Tim O’Connor Joined Scrutton Bland in 2002, Partner since 2004

“The time that stands out for me is when we moved the Colchester office to the Business Park in 2007. I had worked with Tim Mulley on the new building, but largely took responsibility for clearing out the old Sir Isaac’s Walk offices. We had been in those buildings for around 90 years and much had been accumulated and squirreled away

in that period. We found an old locked safe, and the keys were nowhere to be found, but it clearly had something in it as you could hear clonking from inside when you moved it. So we had it picked up by a locksmith who managed to crack the locks and gave me the honour of being present when it was opened. For some reason, some blank sheets of A4 paper had been locked in the safe for posterity. So still no fame and fortune.”

Nick Banks Joined Scrutton Bland 1993, Partner since 2004

“I spent much of my work as a trainee doing handwritten analysis of manual cashbooks. Spreadsheets were evolving and computers were used for very specific purposes in the firm. I can recall spending a good few days working through piles of paperwork in order to find a bank difference which my reporting partner thought at the time would be good experience. I also remember the irritation when doing the filing of foolscap and A4 paper being different paper sizes. Of course today the majority of our clients use software, our stationary store no longer has fourteen column analysis pads, and of course we use electronic document management.”

Sharon Gravener Joined Scrutton Bland 1983, Partner since 1995

“My earliest memories here are having to light all the gas fires at the Museum Street offices every morning, which wasn’t much fun. We did have a lovely tea lady there, Phyllis, who came round with a tea trolley twice a day. When I started we had to add up using a mechanical adding machine with a long handle, which if you pulled it too quickly would shoot across the table. A few years ago I took my children to the Science Museum in London and was mortified to see one on display as a historic artefact!”

S E C T O R | S C R U T T O N B L A N D | 9 A B O U T U S

Alternatives to Pension Contributions for High Earners of your finances

Alternatives to Pension Contributions for High Earners

I f you top up your pension pot then some of the money you save may be eligible for tax relief, provided you’re within the pension contribution annual

Combine these restrictions on pension contributions with the Lifetime Allowance for pensions savings (£1,055,000 in 2019/20) and there comes a point where making pension contributions becomes less suitable for high earners. Not only could the contributions be liable for an annual allowance charge when you pay in, effectively removing the tax relief benefit, but when it comes to using your pension for its main purpose: retirement funding, there will be a Lifetime Allowance Charge if your total pension savings exceed the Lifetime Allowance as well. So what else could high earning individuals do in place of pension contributions? One of the main reasons to review your pension contributions is the Income Tax relief available and the reduction this can have on your Income Tax liabilities. There are specialist investments such as Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCT) that can be used to claim Income Tax relief of up to 30% of the amounts invested. Both of these investment structures offer other tax benefits in addition to Income Tax relief but they are considered high risk investments and you should always seek independent financial advice before investing in these schemes.

Other alternatives to pension contributions can include more established investments such as Stocks and Shares ISAs, General Investment Accounts and Investment Bonds. These savings plans can be set-up in line with your individual attitude to risk and long-term objectives, but it is important that they are reviewed on an ongoing basis with your financial adviser to ensure they remain suitable. All of these options have their benefits, and come with their own tax advantages, so it is likely that no one solution will be appropriate on its own and a combination of investments may well be more beneficial. If you are considering whether pension contributions are the most suitable option for you, or if you want to discuss alternatives in more detail, please contact a member of the Scrutton Bland Financial Planning Department on 0330 058 6559 or email matt.merchant@scruttonbland.co.uk

allowance. However, the tax relief rules are complex. Matt Merchant , Independent Financial Adviser at Scrutton Bland explains. Since the beginning of the 2016/17 tax year, individuals earning over £150,000 a year may have had their annual allowance for pension contributions reduced from £40,000 to as low as £10,000 per annum. Now in the 2019/20 tax year we are in a position where someone’s maximum pension contribution, if they have not contributed over the past three tax years, could be as low as £40,000 to cover four tax years’ worth of allowances rather than £40,000 each year. If you (or your employer) make pension contributions in excess of your annual allowance and any carry forward has been used up, you will face an annual allowance charge on the excess. This charge is applied in a similar way to Income Tax, so for high earners the excess pension contribution will likely suffer a tax charge of 45%.

1 0 | S C R U T T O N B L A N D | P E R S O N A L F I N A N C E

P E R S O N A L F I N A N C E | S C R U T T O N B L A N D | 1 1

Children’s savings accounts i.e in a bank or building society

Minimum investment: Usually £1 but varies by provider and type of account. Rates of interest: Varies by provider and type of account. Regular (monthly) savings plans usually give a higher rate of interest than one-off deposits, and the same applies if the adult has a qualifying account with the same provider. Rates can also change at the end of the initial period. Tax implications: If gifts are from parents and any interest earned is greater than £100 per annum, there could be a tax implication for the parents. Ease of access (ie at what point can the child access their savings): Depends on the account. Some are available for children to access but often a parent or guardian is required. Restrictions: Often there are limits on regular savings or amounts to access best rates. How much can be saved into each one per year: No set limit, dependent on provider. Other things to bear in mind: The account usually needs to be opened and potentially operated by a parent or guardian, ie not the grandparent. Junior Cash ISAs (JISA) Minimum investment: Usually £1 but varies according to provider and account. Rates of interest: Usually higher than a bank or building society account – but they vary considerably.

Advice on savings plans for children continues to be a common request received by our financial planners. But where do you start if you’re a parent, grandparent, or family friend wanting to set up a regular investment plan for babies or young children? Adviser asked James Wright , Independent Financial Planner, to outline the pros and cons of the different savings plans currently available for children.

Tax implications: Free from Income Tax.

1 2 | S C R U T T O N B L A N D | P E R S O N A L F I N A N C E

Child Trust Funds (CTF) Minimum investment: CTFs are

Trust Investment Minimum investment: Trust funds for

Ease of access: The child can withdraw cash after they are 18, after which time the cash remains tax free. Restrictions: A child can only have one Junior Cash ISA and one Junior Stocks and Shares ISA. How much can be saved into each one per year: Currently £4,368. Relatives can contribute to a JISA on top of their own £20,000 ISA limit. Other things to bear in mind: This type of account usually needs to be opened and potentially operated by a parent or guardian, ie not the grandparent. Junior Stocks and Shares ISA Minimum investment: Monthly minimum payment of £25 or a one off payment of £100 typically. The options available depend on the provider. Rates of interest: Varies depending on the investor’s attitude to risk and fund selected. There are various multi-asset funds that can be used with low cost and global diversification for the underlying investments. Ease of access: The child can withdraw cash after they are 18, at which time the cash remains tax free. Restrictions: A child can only have one Junior Cash ISA and one Junior Stocks and Shares ISA. The maximum investment is £4,368 per annum. Other things to bear in mind: The account usually needs to be opened and potentially operated by a parent or guardian, ie not the grandparent. Tax implications: Free from Income Tax and Capital Gains Tax.

Tax implications: Like adult pensions, a child’s pension is eligible for 20% tax relief, so if a grandparent pays in £2,880 each year the child’s account is grossed up to £3,600. Ease of access: Like all pension plans, the minimum age they can be accessed is 55. Restrictions: Access is restricted until the child reaches the age of at least 55 years old. A parent or guardian must open the account although others can contribute to it. If no relevant earnings are accrued in one tax year a maximum net contribution of £2,880 can be made. How much can be saved into each one per year: £2,880 net (£3,600 gross). Other things to bear in mind: Consider the investment risk required. There are a number of options available to you when considering investing for children. Before you commit to any investment you should always seek the advice of an Independent Financial Adviser. If the financial gifts are intended to mitigate Inheritance Tax then you should also consider consulting your Tax Adviser and solicitor.

no longer available. Existing arrangements have a maximum of £4,368 per annum and can be transferred to a Junior ISA. Rates of interest: Varied but CTFs were generally a form of savings account with varying rates of interest earned.

an individual can be set up so that one or more ‘trustees’ are legally responsible for holding assets for ‘beneficiaries’ (which could be grandchildren). Typically, this type of investment would be more suited to larger gifts of £50,000 and up. Rates of interest: Varies depending on the trustee’s attitude to risk and capacity for loss. Trustees have a responsibility to protect and invest funds appropriately for the beneficiaries. Tax implications: Dependent on type of trust and we would always recommend advice is sought. Ease of access: This can depend on the trust but could be at trustee’s discretion. Restrictions: Dependent on the trust but could be at trustee’s discretion. There may be an additional cost in setting up a trust deed and further advice may be required. How much can be saved into each one per year: Gifts to a trust over £325,000 may incur Lifetime Charge to Inheritance Tax. Other things to bear in mind: If monies are gifted to the trust then no benefit can be retained by the settlor if it is to be applicable for Inheritance Tax relief. Child

Tax implications: Free from Income Tax and Capital Gains Tax.

Ease of access (ie at what point can the child access their savings): The child can withdraw funds after 18.

Restrictions: CTFs are no longer available.

Other things to bear in mind: CTFs can be transferred into a Junior ISA to provide more savings or investment options. However a JISA and a CTF cannot be held concurrently. Premium Bonds Minimum investment: Minimum purchase of £25.

Rates of interest: Nil. Prizes awarded from a draw each month.

The information above provides an overview of the products and services available to you and should not be used as a guide to investing. For further information on investing for children or any aspect of your financial planning contact james.wright@ scruttonbland.co.uk or tel 0330 058 6559 .

Tax implications: No tax due on NS&I Premium Bond wins.

Ease of access: The parent or guardian must look after the account until the child turns 16. Restrictions: A range of adult friends and relations can buy Premium Bonds for children, however only a parent or guardian can manage the account. How much can be saved into each one per year: An individual can hold a maximum total saving of £50,000.

pensions Minimum

investment: Stakeholder

pensions can be setup for as little as £20 per month. Maximum of £2,880 net per annum. Rates of interest: Varies depending on the investors attitude to risk and capacity for loss.

P E R S O N A L F I N A N C E | S C R U T T O N B L A N D | 1 3

In times of crisis, investing in gold has traditionally been seen as a safe haven for savers. Financial Planning Partner Grant Buchanan considers the issue of going for gold.

1 4 | S C R U T T O N B L A N D | S E C T O R

F I N A N C I A L P L A N N I N G

Venetian gold ducat from 1400 Classical Numismatic Group, reproduced courtesy of Wikimedia Commons

G old has been used for decoration and currency for thousands of years. In around 700 BC an alloy of silver and gold known as electrum was used in the Kingdom of Lydia (part of modern day Turkey) and the Roman Republic issued an official gold coin known as an aureus in 50 BC, although the Romans had been using gold as currency for several hundred years before that. The Venetians first produced the gold ducat in 1284 AD, and in the same year the gold florin appeared, the first major gold currency in England. The acquisition and trading of gold coins has long been a subject in art and literature: think of Long John Silver’s parrot shrieking “pieces of eight!” in Treasure Island, or the paintings of the Dutch Old Masters, such as Rembrandt and de Hooch, who frequently depicted images of people weighing and exchanging gold coins. Today we invest our savings in different ways, although traditional ‘safe havens’ in times of uncertainty for investment markets have been bonds, cash and gold. But with bonds and cash currently offering negligible returns, the political turmoil surrounding Brexit, the economic slowdown in China and doubts about the strength of the US economy, many professional investors have been prompted to favour gold. against sterling, and who has an aptitude for calling markets, has been an enthusiastic buyer of the precious metal. Meanwhile, the Royal Mint, the Government body which is responsible for “minting” Britain’s coins, is offering investors the opportunity to invest their pension pots in gold. However, buying gold in the form of bullion is expensive. There is a buyer’s premium of around 1.5%, and a 1% charge for selling. Then there is the cost of storage and insurance, costing several hundred pounds per year. George Soros, the US billionaire who famously “broke the Bank of England” in 1992 by betting

An alternative way of investing in gold is via a security such as an Exchange Traded Fund (‘ETF’), which can carry a lower cost but still has platform charges and broker fees. There are of course indirect ways of investing in the value of the metal such as to buy shares in gold mines or bullion dealers. And what about the return? Gold produces no interest and no income, and the only means of profiting from the investment is by selling it – which may be subject to Capital Gains Tax. However, gold does have the advantage of being a physical asset, and as such can provide some protection against inflation. Over the past 20 years, the gold price has risen by more than threefold, but gold bought at its peak in 2001 lost 25% of its value over the following five years. Such figures demonstrate the extreme volatility of the gold market, therefore making it a market to view with caution. Squirelling away small amounts of gold is one thing, investing in ingots, fine wine, art and classic cars however requires expert advice. The Scrutton Bland Private Client team are committed to helping clients understand the ever-changing financial landscape. As specialists the Scrutton Bland in-house Tax Advisers and Independent Financial Planners are able to provide a joined-up service of financial and tax advice, all under one roof and in the same meeting. If you would like to speak to Grant or any one of the Independent Financial Planning team at Scrutton Bland regarding any aspect of your financial planning or investments contact grant.buchanan@ scruttonbland.co.uk or tel 0330 058 6559 .

F I N A N C I A L P L A N N I N G | S C R U T T O N B L A N D | 1 5

1 6 | S C R U T T O N B L A N D | A G R I C U L T U R E B U S N E S S P R O F I L E

M agic and mystery have always been an intriguing premise for both adults and children – a thought which inspired the imaginations of Chris Barnardo and Richard Blakesley when they set up The Wand Company in 2009. Launching their range of unique remote-control devices with ‘Kymera’ a lifelike, button-less magic wand, the pair have gone on to produce a range of collectable designs including the Star Trek flip-up communicator, and Dr Who’s Sonic Screwdriver. Adviser spoke to Chris about how they have managed to create such a successful brand within the highly competitive home entertainment industry. What made you decide to start your own business and how easy was it to get things off the ground? I have always been happiest running my own company having started a London-based design agency in the 1980s and a Venture Capital (VC) funded display manufacturing company in the early 2000s. However, I wanted to blend the two disciplines and build a company that developed, designed and manufactured consumer electronics products. I had a good idea for a product and approached a friend to begin developing it but it was really tough starting out because we needed money to cut tooling and buy stock. Our requirements weren’t enough to interest a VC but we needed more than we personally had to invest, so we offered our friends and family a chance to loan us money in return for interest, rapid repayment and an ongoing royalty. The deal took about six months to put together and we raised £75,000, which was enough to get us going. We paid the money back within 18 months, and with the ongoing royalties, each investor has approximately doubled their original investment.

You appeared on Dragons’ Den and were offered funding by all five Dragons. What are your memories of that? It was an exciting episode and I am very proud of how we did in the Den. Although we were offered money by all the Dragons and accepted Duncan Bannatyne’s offer in the Den, in the end we didn’t follow through on it and so have had no involvement with him since. Ultimately it has not been material in the growth of our business, not least because a large part of our profit comes from exports, in places where Dragons’ Den is not known. What were the lessons you learnt in the formative years of the business? • Keep it lean. Initially we worked from home offices, we did everything ourselves (and mostly still do) from website development, to product design, to customer care. • Build a good relationship with your retailers and your end customers. • Focus on making high quality products. • Understand all the costs of developing and bringing your products to the market so that you know how much real profit you are making. • Don’t overstock the market for a short-term gain. It hurts your retail customers, ruins your product and spoils your relationship with the end user: the (potentially loyal) person who actually buys your product and makes everything else possible.

Can you tell us a bit about how the range has developed? Why you chose the first pieces to make, and how you came to produce items like the Sonic Screwdrivers? I had built a website of craft projects (www.dadcando.com) and one of the most downloaded projects was my “make your own wizard’s wand”. With the success of Harry Potter I thought there was a market for a remote control wand that could appear to do real magic. I showed the idea to my old friend and colleague Richard Blakesley who is a genius and together we made a prototype of a wand which was universal, meaning that you could wave it and it would remotely control things like the television and music systems around the home. One of our early retail customers was Forbidden Planet in London. Our wand was already selling and the buyer there commented that our technology would work perfectly inside a Doctor Who Sonic Screwdriver and suggested that we approach the BBC for a Doctor Who licence. This made sense and the BBC were very receptive to our pitch, plus the license was less expensive than we had thought it would be! We knew that if we were going to make a licensed product such as a sonic screwdriver, we had to make sure that it was very accurate, so we set about finding the best reference of the actual TV prop that we were going to copy, eventually borrowing it from David Tennant (the Tenth Doctor). Other Sonic Screwdrivers followed, and we realised that there was a niche in the market for highly accurate replicas which also had useful, real-world functions, that were made from authentic-feeling materials, and priced somewhere between a cheap toy and the stratospherically expensive hand-built replicas. From that point on, one of the most difficult things we have had to do as a business is choose the next hero product to invest our valuable time in developing. Many of the obvious potential properties are already licensed to other massive toy manufacturers and although there are many other opportunities available, the majority will never be able to find a big enough audience at the £100 to £150 price range that our products need to sell at, to recover the development costs and be profitable for us.

B U S I N E S S P R O F I L E | S C R U T T O N B L A N D | 1 7

You’ve recently introduced several interesting pieces which tie in to the huge hit that is the computer game Fallout 76. Why did you decide to move into this area? Many of the people we have worked with over the years have moved into the computer games industry, and they have introduced us to this growing part of the entertainment sector. We see gaming as having a bright future for merchandise and replicas. Gaming is now very big business, rivalling films in terms of revenue and fan engagement. With new technology and better and better hardware, this form of entertainment is only going to grow. The games industry tends to be less developed in terms of merchandising than the film and TV industry, with small licensing departments and a limited number of licensees for any given property. In comparison, the licensing department of the average film studio or tv company will have many hundreds of licensees.

How do you see the market for sophisticated devices and high-quality replicas developing? With the reducing costs of the electronics and decreasing size and power requirements, higher levels of functionality can be implemented into our designs. Complimenting this are the increasing performance expectations of consumers with a matching rise in acceptable retail prices for consumer items such as smart-phones and a whole range of other home appliances. These two factors mean that consumers now expect more from their products but at the same time they are happy to pay a premium for the highest quality items. Our products are changing the market too. Every time we develop and release a new replica we raise expectations of what is possible, and we see this trend continuing to the point where consumers will expect their replica pieces to have a similar if not identical functionality to the fantasy version. The final step for us is to begin working with games companies, studios or designers to help create the key props in the first instance so that the replicas then become the props that originally would have inspired them. The first product to be created in this way was our Fallout 76 Pip-Boy stand. The Pip-Boy is a wrist-worn computer that features in Fallout game and was an obvious candidate for a hero replica. We knew that fans like to display their replicas and so we designed a display stand for it. The game designers at Bethesda liked our stand design so much that they used it unchanged in the game and it was featured in the first game trailer. We are now making that stand as a real product in the form of a Bluetooth speaker kit. This process validates our design, helps develop our position in the industry as producers of key props and quality replicas and obviously gives us the earliest possible access to the design assets, enabling us to plan the production process in the most efficient and appropriate way. From their offices in Bishop’s Stortford, The Wand Company now export their high quality prop replicas to markets across the globe and have plans to extend their range. Many of their products are available to buy online or see www.thewandcompany.com for more information.

The Scrutton Bland Business Advisory team specialise in supporting and assisting innovative businesses to plan, manage and develop their business through practical solutions and advice. If you are starting out in your business, or are ready to expand into your next development stage, you can contact Simon Pinion , Partner at Scrutton Bland or email hello@scruttonbland. co.uk and one of the team will contact you.

1 8 | S C R U T T O N B L A N D | B U S I N E S S P R O F I L E

It’s not just about the numbers The Scrutton Bland Scholarship gives a boost to both finances and confidence

From left to right: Jon Anscombe, Stacey East, Tim O’Connor

T he Scrutton Bland Scholarship is an annual award given to an undergraduate studying a finance- related degree at Anglia Ruskin University’s Faculty of Business and Law. The £500 award is presented to the student with the highest marks at the end of their first year, and this years’ award was presented to Stacey East by Tim O’Connor, a Corporate Services Partner at Scrutton Bland. Adviser spoke to Stacey about her experience of studying accountancy and finance, and to Jon Anscombe, Development Manager at ARU about the way the university is evolving within an increasingly competitive education sector. The Faculty of Business and Law is one of the largest business schools in the UK, with campuses at Cambridge and Chelmsford. Stacey explained that she studied economics at A level and then attended an open day at Anglia Ruskin, when she decided that the accounting and finance fitted with what she was looking for. “I’m more interested in management accounting than purely finance, and I had done some work experience which convinced me that I wanted to work in areas like cost prediction and analysis.”

So what difference has receiving Scrutton Bland’s scholarship made to Stacey? “Obviously it’s great to have that financial help,” she explained. “But it’s also given me a huge lift to my self confidence in my own capabilities. For example, since winning the award I have set up an accounting society at ARU, which I’d never have had the nerve to do beforehand.” ARU’s Jon Anscombe stressed the importance of creating a student environment which is relatable to a real-life context. “The business world is changing so fast, and we need to make sure that our students have the most relevant content on our courses. We also need to generate interest from up and coming students: “Our Bloomberg labs are used by local schoolchildren for special “trading events” and our School of Medicine runs a programme of events to engage with schoolchildren throughout the year. ARU is committed to developing strong ties with employers and business across the region. We can work with them to secure placements for our students, and businesses can provide guest lecturers and mentoring to give extra support.”

Tim O’Connor at Scrutton Bland agrees that there are mutual benefits for professional companies working with higher education establishments. “The competition for good candidates in finance and accounting is fierce. It’s tempting for students to look to London to work for the ‘big four’ but that can sometimes be a false move. These huge firms will often focus on a very narrow skill set, and if you find you don’t like the work, or they don’t like what you’re doing, you may well be on the next train home. A smaller firm can give you experience in several departments, to help you find what you’re good at and enjoy, and the right area of the business to work in. At Scrutton Bland we have a broad spectrum of financial services to choose from, and plenty of support as your career progresses; we have lots of examples of people who have joined straight from school or university who have risen through the ranks to a senior role.”

For more information on Anglia Ruskin University please see www.anglia.ac.uk

If you would like to find out more about a career in financial services or the opportunities available at Scrutton Bland, visit the careers section of the website www.scruttonbland.co.uk

C A R E E R S | S C R U T T O N B L A N D | 1 9

How one Suffolk distillery is enjoying the current ‘Ginaissance’

A fter thirty years working in the corporate drinks sector, Gary Wilkinson knew that he wanted to run his own business. Having worked for some of the UK’s largest spirit distilleries, devising ways in which to improve the extraction of botanicals (the natural essences which give spirits their flavours), Gary and his wife Melanie decided to set up a craft distillery from their home in Glemsford near Bury St Edmunds.

The Suffolk Distillery has been producing gin and vodka for nearly two years, using, wherever possible, ingredients sourced from local suppliers. Supporting local businesses is important to the team at Suffolk Distillery; with a wealth of natural resources around them, finding top notch flavouring for their drinks has been made easier. According to Gary, East Anglia is a treasure trove for sourcing ingredients “I recently had a meeting with a supplier of Maldon salt for a new salted caramel flavour I’m working on, and over the summer obviously I’ll be buying all my soft fruits and berries from local soft fruit suppliers. We have a fabulous supply of natural flavourings in our region from rhubarb to honey and even coriander and lavender, I can get my hands on almost any flavouring within just a few miles.”

It’s not only the contents of the bottle which reflect the Suffolk heritage of these gins, even the branding of the Suffolk Distillery references the region’s ancient past. Each bottle bears a logo made up of the crown of St Edmund and the wolf who, legend says, guarded King Edmund’s decapitated head after the king was killed by Danish invaders near the town of Bury St Edmunds in AD869. The unique branding is displayed on beautifully printed labels, manufactured of course by a local printing firm. As is so often said in business, timing is everything. According to the Wine and Sprit Trade Association (WSTA) at the end of March 2018, sales of gin topped £1.5 billion, equating to around 55 million bottles bought by consumers around the world. Gin has come a long way since it’s last rise in popularity in the mid-eighteenth century when excessive gin drinking became an endemic social problem, earning the drink the name ‘mother’s ruin’. So, if you are in the business of making gin, this twenty-first century ‘ginaissance’ is just too good an opportunity to miss.

2 0 | S C R U T T O N B L A N D | B U S I N E S S P R O F I L E

As Gary explains, “I’ve spent a large part of my working life working with botanicals and finding new ways to extract oils without affecting the flavour. With such a wealth of natural supplies on my doorstep, it just seemed like the time was right to set up on my own doing something I love.” The gins produced by the Suffolk Distillery are a London Dry distillation, which is then re-distilled with a unique recipe of ten different botanicals including the classic flavours of coriander, angelica, and juniper berries. Adding flavours to the gin is where Gary’s experience comes in. “Creating a new flavour is about skill and patience. Balancing the botanicals can be a bit trial-and-error and very much depends on the ingredients you select and your knowledge of extracting and blending flavours together.”

However, making a successful business in distilling takes more than a talent and passion for creating fabulous gins and vodkas, as Gary found out: “Setting up a distillery is not an easy process, licences need to be acquired, the premises need to be categorised as a bonded warehouse and Customs and Excise officials then come to question you, which can mean that you are turned down before you even start distilling. Plus there are all the other elements of running a business which working in the corporate world protects you from. Starting up on our own meant we were suddenly exposed to administrative processes like accounts and insurance, which needed to be dealt with. We knew that we would need to sell online as well as over the counter, so that needed more organisation, and of course we have to be aware of legislation such as GDPR for our marketing activities.”

Gary was able to turn to the New Anglia LEP which provides advice and support for businesses looking to establish themselves or grow by offering initiatives and training supported by public and private investment. For the Suffolk Distillery, accessing grants and support meant Gary could get this business online. For anyone thinking about starting their own business, Gary’s biggest piece of advice is to “keep an eye on your cash flow”. He found from experience that “when you’re starting out, you’re investing money into the business every day, but there’s no cash coming in. Even when you start to sell your product, there will be lots of people, retailers for example, who want at least 30 days credit. One thing I’ve learnt is just keep checking your accounts, to make sure you haven’t overstretched your finances.”

B U S I N E S S P R O F I L E | S C R U T T O N B L A N D | 2 1

Gary and his wife Melanie acknowledge how lucky they were in the support they received from friends and family “Melanie and I had a good 6-12 months of getting everything ready, which meant we weren’t able to pay ourselves, and finances were tight. Fortunately, we have friends and family who offered to help us, so we could get stuff done, like moving the still into place, and helping to get other pieces of equipment set up.”

So as the UK’s appetite for craft distilled drinks continues in its stratospheric rise, what does the future hold for Suffolk Distilleries? According to Gary, he has big plans for his Suffolk-born brand. Already looking to move to larger premises, Gary has his sights on diversifying into gin making classes and developing his range of flavoured vodkas, possibly even one day exporting his drinks to international markets. But, whilst the Suffolk Distillery continues to blossom, at the heart of this business sits Gary’s desire to produce a quality product which will showcase the best of Suffolk and the bounty of fresh produce that the county has to offer.

You can purchase Suffolk Distillery gin online via the website www.suffolkdistillery.co.uk or in store in retailers throughout the region including Suffolk Food Hall, Snape Maltings and Smashing Wines in Woodbridge.

2 2 | S C R U T T O N B L A N D | B U S I N E S S P R O F I L E

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44

www.scruttonbland.co.uk

Made with FlippingBook - professional solution for displaying marketing and sales documents online