news Shareleague Thames Valley Presented by in association with Business T H E M A G A Z I N E


The Acal Group, the Guildford- based specialist provider of technology products and services, announced the acquisition of MTC Micro Tech Components GmbH and its affiliate EMC Innovation for an upfront cash consideration of £2.1 million before expenses. A further deferred cash consideration of up to £1m will be payable in January 2013 subject to the business achieving agreed growth targets.


The news helped the group’s share price up 11% during October. MTC is a specialist provider of Electromagnetic shielding products to the European and Asian industrial electronic markets. Based in Germany, with a manufacturing operation in South Korea, it employs 20 staff and will form a separate business unit within Acal’s electronics division.


Chief executive Nick Jefferies said: “The acquisition of MTC is a further step in the implementation of our specialisation strategy. Operating in a rapidly growing niche, they bring a strong range of own- brand Electromagnetic shielding products into the Group, which we plan to sell throughout Acal’s European organisation.”


The high-flyer in the sub-£50m turnover section was Pipehawk, whose shares rose 65%. The Aldershot-based electronic systems company develops solutions in the specialist fields of land mines and utilities detection.


It announced final results for the year ended June which showed turnover plus other income totalled £3.5m, an increase of 33% on the previous year, achieved an overall profit after taxation of £242,000 following the reported


Large (over £1 billion) Closing price


WOLSELEY SEGRO


ICTL.HTLS.GP. BG GROUP SPECTRIS


VODAFONE GROUP SERCO GROUP CENTRICA


RECKITT BENCKISER GROUP SHIRE


30/09/11 1607 220.2 1051


1241.5 1168


166.25 510.5 297.7 3273 2010


Closing price 31/10/11 1798 243.8 1149


1356.5 1272


172.85 519.5 296.7 3198 1951


Medium (£250 million to £1 billion) Closing price


ELEMENTIS


ASHTEAD GROUP MORGAN CRUCIBLE ELECTROCOMP. VITEC GROUP DAIRY CREST GENUS


CABLE & WIRELESS COMMS. OXFORD INSTRUMENTS CABLE & WIRELESS WWD.


30/09/11 123.5 133


244.9 190.1 530 351


1048 37.25 808 31


ACAL


TIMEWEAVE ANITE


SINCLAIR PHARMA MCKAY SECURITIES


ALBEMARLE & BOND HDG. RM


GAME GROUP KEWILL


NANOCO GROUP


30/09/11 215


25.25 64


24.88 116


349.5 77.63 23.75 85.5 50


Sub £50 million Closing price


PIPEHAWK


REDHOT MEDIA INTL.(DI) PARSEQ ANGLE


PETARDS GROUP


AEA TECHNOLOGY GROUP TRIAD GROUP


CLINICAL COMPUTING WATER HALL GROUP TALENT GROUP


30/09/11 1.75


24.75 6.63 68.5 21.5 2.33 13.5 1.63 2


3.5 THE BUSINESS MAGAZINE – THAMES VALLEY – DECEMBER 11/JANUARY 12


Closing price 31/10/11 144.2 155.1 283.1 219.5 602 346


1026 36.24 768


27.96


Small (£50 million to £250 million) Closing price


Closing price 31/10/11 239


26.63 66.75 25.5


117.75 307.75 67.25 19.25 69.25 39


Closing price 31/10/11 2.88 33.5 8.87


88.75 25 2


11.5 1.38 1.5 2.5


Change in share price 12% 11% 9% 9% 9% 4% 2% 0%


-2% -3%


Change in share price 17% 17% 16% 15% 14% -1% -2% -3% -5%


-10%


Change in share price 11% 5% 4% 2% 2%


-12% -13% -19% -19% -22%


Change in share price 65% 35% 34% 30% 16%


-14% -15% -15% -25% -29%


People in focus i EMPLOYMENT LAW UPDATES


Pay rises – the hidden costs


In these times of austerity, measures such as pay freezes, reducing employee headcount and general cost cutting are common place. It is also no wonder that many employers are holding back from offering salary increases while employees are crying out for a pay rise to compensate for fast rising inflation and the increased cost of living. However for those lucky enough to get a pay rise – does it actually bring the financial gain expected from it?


Employees are still finding their take home pay hit hard and, with the rising cost of living, many are being squeezed beyond anything seen for many years. It’s not surprising that employees will snap their employer’s hands off when a pay rise is offered but what about where the pay rise has an undue (and often detrimental) effect on other income streams into the family household?


From 2013 child benefit will be removed entirely where there is a higher rate taxpayer in the household. This can add up to a significant loss when you consider child benefit is at the rate of £20.30 per week for the first child and £13.40 per week for further children. For example a family with three children stands to lose £2,449.20 each year – a lot of money in anyone’s book, and even more so in financially difficult times such as now.


In reality, a small pay rise to employees earning just under the current higher rate threshold of £42,475 could mean that the household has a reduced income through lost child benefit despite the pay increase.


The particulars will depend on personal situations. Obviously if the pay rise is substantial the net value may outweigh any lost child benefit but, in many cases, employees may see nominal increases just nudging them over the threshold. As a result, employers, in certain circumstances, should be prepared to be flexible in discussing pay increases with their employees, including accepting that some


employees may even elect to refuse a pay rise.


Could an alternative benefit be offered instead?


There are less drastic options that might be available. For example employees might be able to elect to take a form of salary sacrifice in return for benefits such as childcare vouchers (but there is a maximum cap still so it depends on individual circumstances) or by increasing personal pension contributions so taxable income falls below the higher rate tax threshold.


So what things should you look out for?


Employees should keep an eye on the tax threshold levels as these may change from time to time and employees could suddenly find themselves in the higher rate bracket without realising it.


From the employer view, where childcare vouchers are not currently offered then the introduction of these (and other salary sacrifice schemes) could be considered but the benefits and limits are not what they once were.


Any refusal to accept a pay rise should be made in writing so as to reduce the risk of subsequent claims such as equal pay. Employers cannot do very much if an employee rejects a rise but the intentions of all parties should be clearly made and recorded at the time.


For further information about this update or any other employment law issue, please check our website: www.boyesturner.com.


Details: David Blomfield, partner, Boyes Turner employment team, dblomfield@boyesturner.com 0118-9527284


Follow us on Twitter: http://twitter.com/btemplaw To request our weekly employment law updates email: elg@boyesturner.com Listen to our employment law podcasts: www.boyesturner.com/services- employment.html?pgid=349


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