roundtable: building on success 55
“There is definitely more confidence and activity in the market now, but the businesses that have been brave, have strong management teams, and have invested in people, assets acquisitions during the downturn, are the ones that will be able to make most of the opportunities that are coming. It is an interesting period we are entering.”
However, he stressed, GCS does place people within companies throughout Europe stating: “I do believe however that we need to focus on certain key foreign markets, such as Germany. Given the different employment laws in some countries, it could make more sense to acquire an existing business rather than attempt to open a new ‘branch office’, but the question is, whilst you can buy and put a badge on it, will it have your company culture?”
Migration within the EU was beneficial to the recruitment industry, he added, noting that GCS was currently placing people in Ireland from high unemployment areas of Europe.
Wilkinson highlighted that HSBC was actively supporting businesses to grow abroad. “Our new lending to SMEs last year was £12.3b, of which £5.1b was to enable them to connect with international markets overseas.”
Sue Dowling
“All the indicators are saying that the economy is beginning to tick up, although I suspect that recovery will be steady. The challenge for those businesses that really cut back to survive in the downturn is how they will satisfy the increased demand for their services or products.”
Most of the Roundtable companies had made some small acquisitions during the downturn, but predominantly their growth has been organic.
Bloxham suggested that the time maybe coming for GCS Recruitment Specialists to consider a major acquisition in order to make a step-change within its market segment.
Jones said CH&Co had looked at several M&A opportunities and would continue to do so. His concern was that potential vendors, having waited for the M&A market to pick up, would now have increased valuation expectations.
Looking for growth in new overseas markets?
Bloxham commented that GCS has only recently expanded into Ireland. “UK recruitment, as a mature, sophisticated industry, is a leader within the world, and other recruitment companies have moved out into other parts of the world such as the Far East, Australia and America. We elected to not do that, partly because of our Thames Valley roots and the fact that we have been able to be very successful focusing on out primary location in the south east of England, which is one of the best places to be a recruitment agency in the whole world.”
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Stanley: “We are UK-based, but we have just opened an office in Charleston in America. We see that as a huge growth market, but Scandinavia and again Germany are huge opportunities for us. The question is do we seek funding and go over to make an acquisition or do we try to achieve that growth organically? It’s a very exciting time and we certainly wouldn’t have been thinking so optimistically about those expansion plans 2-3 years ago.”
Grundon: “Geography is difficult for us because we tend to be UK-asset based but we have made strategic land purchases last year to take us into new markets.”
Tatham said Westcoast had spread its Thames Valley-based operations to Scotland, Ireland and Wales, the latter through cloud data storage. The company had also bought a small Belgian business that was yet to prove successful. “But, I think our focus will be to expand into new markets and new ways of business.”
He exampled Westcoast’s efficient distribution systems, which could be transferred to a whole new range of distribution channels such as office products. The distribution of cloud services through Westcoast’s existing IT channels was also an option.
Murray pointed out that cloud technology had no set geographical boundaries.
Tatham: “Yes, but one of the joys of having a cloud data centre in the UK, is that it is in the UK and you know where your data is.”
Stradling stated that although HSBC operated worldwide, its home markets still remained as UK and Hong Kong, but he noted that HSBC was currently making a significant investment in Germany to develop its commercial banking operations.
Wilkinson mentioned HSBC’s Global Connections competition, which successfully
David Murray
How can Thames Valley business conditions be improved?
Tatham suggested another lane on the M4 would be very helpful. “It is a key artery, and although some improvements have been made, we need more, particularly on its elevated section.”
He also agreed with Murray that the Thames Valley would benefit from having its own Tech City similar to London. “Having that start-up capability and vibrancy, for instance like San Jose has got in the Bay Area of America, would be an outstanding addition to our region. From our UK technology perspective I think it is absolutely vital this sort of thing happens, and hence I’m delighted to see Tech City in London.”
Bloxham, who is the president of the Thames Valley Chamber of Commerce and involved with the Thames Valley Berkshire LEP, discussed the expansion of Heathrow as the UK’s hub airport. “Heathrow, with its access to international markets, is one of the key factors that drives the success of our region, and we need to assure its future.”
enables businesses to meet like-minded businesses on well publicised, thought provoking international exchanges. “It’s currently open to innovative local domestic businesses which show future proofed growth strategies or internationally focused ones which have shown evolution out of outstanding global implementation.” (Nominations expiry date: December 8).
Jones felt CH&Co currently needed to concentrate on its existing market. “We control about 2.5% of the UK catering market so plainly there is plenty of work still to be done.”
THE BUSINESS MAGAZINE – THAMES VALLEY – NOVEMBER 2013
www.businessmag.co.uk
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