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January 23, 2020

VAS Group recruits ex JLL senior director

Leading valuation market specialists, VAS Group continues to expand its senior management knowledge base with the appointment of highly experienced valuation real estate specialist, Jeremy Handley.

Acting in a consultancy role, he will be responsible for quality assurance across both VAS Audit and VAS Panel, enhancing technical valuation propositions to further strengthen and expand the company’s offering.

Handley will also develop, manage and deliver an educational workshop programme for lenders, auditors and brokers. This will be designed to expand property valuation knowledge within the financial supply chain with the overall goal of improving and maintaining quality and speed, without increasing risk.

He brings with him a wealth of valuable experience gained from almost 30 years of service with JLL where he held the role of senior director responsible for the loan security valuation business.

His responsibilities included providing clients who have interests in property, or property debt, with advice about real estate valuation, strategic direction, risk assessment and valuations for secured lending and other purposes.

Handley said: “I am delighted to be working with VAS. The services they provide fulfil a real need in the real estate lending market that is not being serviced elsewhere.”

Stephen Todd, co-founder of VAS Group, added: “As the business continues to grow we understand the importance of further improving our already high level of quality service and assurance for all our partners, Jeremy’s knowledge and experience will be pivotal in delivering this core proposition.”

The VAS Group consists of three divisions: VAS Panel provides a full valuation panel management service which ensures the most relevant companies are instructed based on location, deal type and value; VAS Audit provides valuation auditing services to reduce property specific lending risks.

VAS Software is a cloud-based valuation panel management framework system which allows lenders to better manage their own panels.

January 23, 2020

Why brands should be integrating artificial intelligence

Artificial Intelligence is rapidly changing the way that marketers transform their digital strategy. Implementing a data-led approach can help businesses improve the customer journey and in several ways, help marketers to better understand their customer’s habits . Understanding artificial intelligence tools is key for brands to streamline their marketing efforts using AI solutions.

AI is changing the landscape of marketing and digital marketing agency; Hit Search share their stance on why retail brands should utilise the latest go-to technology to their advantage.

Andrew Donaldson, strategy director at Hit Search, supports the use of cutting-edge AI research, which allows brands to learn and optimise digital strategies in several ways. Here, the SEO agency share four ways artificial intelligence can change retail marketer’s digital marketing strategies for the better:

1. Voice Search & SEO

Voice search technology and AI combined are changing how marketers conduct their digital strategy and their SEO strategy. Enhanced artificial intelligence can assist retail brands, when used correctly. Start by adjusting your SEO strategy, in support of voice search. Recognising long-tail, conversational search terms is imperative to display your brand throughout the customer’s user journey.

2. Chatbot Technology

Ecommerce sites should use AI technology to their advantage and tailor the customer experience to shopper’s needs. Resolving customer queries across several platforms; including social media channels, is the simplest way to make an impact on customers, increase brand loyalty and improve customer retention. Bots can create a lucrative shopping experience and with many customers willing to shop via bots, the positive impact they have on the user’s experience is huge for ecommerce retailers.

3. Content Marketing is King

The old saying ‘Content is king’ has never carried more weight since the introduction of AI. Redefining content marketing strategies, using the insights gained from AI technology will aid content marketers with the ability to tailor a cohesive content approach. This can be achieved by creating content targeting specific keywords, planning blog posts that align with consumer’s shopping habits and creating personalised content that will result in a data-driven marketing approach.

4. Improved Paid Ad Campaigns

Artificial intelligence software is integral when running ad campaigns. Paid media will continue to evolve and increase the efficiency of paid search and social campaigns. AI allows marketers to hyper-target shoppers, based on lifestyle actions and voice search behaviour, who are already in the decision-making phase and ready to purchase, making reaching your target audience far easier.

There are many ways in which artificial intelligence data can improve and strengthen marketing campaigns to streamline the way in which brands connect and influence new and returning customers throughout the user journey.

January 23, 2020

Solid December continues late boost to dismal year for online retail

UK online retail sales growth spiked unexpectedly to +9.4% year-on-year (YoY) in December, bringing 2019 to a positive close with a surprisingly strong Christmas trading period, according to the latest IMRG Capgemini Online Retail Index, which tracks the online sales performance of over 200 retailers.

Unlike the high street, online retail defied forecasts of poor turnouts during the festive season, with Q4 recording a growth rate of +11.3%. This was largely boosted by November’s peak performance of +16.4% and the slightly later Black Friday sales period. Comparatively, December’s sales growth fell sharply versus November, however, down -20.0% month-on-month (MoM), which was the greatest December decrease since Black Friday first really grabbed widespread attention in the UK in 2013.

Despite a good Q4, the final surge was not enough to save online retail from the lowest annual performance seen on record. Whilst the stronger year-end figures boosted growth in the second half to +7.6%, a series of disappointing results during the first 9 months of the year contributed to a discouraging growth rate of just +6.7%. With shopper confidence in the current climate low this failed to match the start-of-the-year forecast of +9%.

Breaking down the results, December’s slightly more positive performance was mirrored in a number of categories, with health & beauty increasing by a huge +45.1% and clothing up +9.5%. There was also a small glimmer of hope for electrical retailers, who saw their sales rise to +11.9%, rebounding from their steady plummet throughout 2019, and marking their first positive growth since November 2018. In a year where the clamour over Black Friday was louder than ever, this was not the only result which bore its fingerprints – clothing’s performance in December also masked a fall in average basket value (ABV) of -17.6% YoY. Meanwhile overall ABV for 2019 was down -22.5% versus 2018.

Andy Mulcahy, strategy and insight director, IMRG: “If online retail in 2018 was characterised by strong growth in the first half and weak in the second, 2019 is the year when Black Friday quite possibly papered over retail’s cracks. Demand was low earlier in the year, particularly over summer, and growth for the year was running at just +4.9% up to October. A solid December, albeit against weak Year-on-Year growth in 2018, off the back of an explosive November have made the full-year result look much better at +6.7%; lower than our forecast of +9%, but nowhere near as bad as it was looking a few months’ back.

“So, where does that leave retail heading into 2020? The final quarter has been a lot more positive for online sales growth than it has looked for a long time, plus we’ve had the election and Brexit should actually, finally, become something. There are also major sporting events galore in 2020 which could stimulate retail spending. Have we turned a corner then, or is it the case that the fundamental problems affecting retail are still yet to be solved in any meaningful way? Time will tell.”

Lucy Gibbs, managing consultant – retail insight, Capgemini: “The welcome boost in spend over the festive period after a somewhat subdued year was in fact a mixed story online. There was also a notably stronger performance by pure online only retailers in comparison to the more traditional players, who failed to seize the growth when they perhaps need it most, leading to a total growth of +4.8% this year against last year compared to a more healthy +10.0% for online only.

“Budget retailers also enjoyed a good year, taking advantage as consumers hunted out the best deals and outperforming both mid-tier and premium in the final quarter, though average basket value did fall 25% over November and December as a result. There is some hope however, as consumer confidence lifts a little, up +3 points in December; could the final quarter growth indicate a more favourable climate as we move into 2020?”

January 23, 2020

International conference heralds ‘bold’ ways to secure future of cash

An international conference will urge global policymakers to continue to adopt ‘bold and imaginative measures’ to secure access to cash and its acceptance in the future, as many societies are seeing radical change in the payments and monetary landscape.

The ‘Future of Cash’ conference, which will be held on 21 – 22 April in Madrid, Spain and organised by AGIS Consulting, will see central bankers and decision-makers from financial institutions and other stakeholders within the cash cycle across the world consider the drivers behind the demand for cash and new technologies that are helping to transform the cash cycle.

As cash demand continues to grow alongside developments in alternative payment methods, a ‘Future Makers’ workshop facilitated by experts from international think tank Demos Helsinki, will see delegates design scenarios for the future of cash and develop roadmaps to secure its smooth and efficient distribution.

How cash is undergoing a transformation will be examined under the ‘CashTech’ project – a new forum that will see innovators, start-ups and fintechs examine how disruptive technologies can be applied to enhance the competitiveness and convenience of cash as payment tool for consumers, retailers and wider communities. They will enable consumers to pay cash for their online shopping or use lifestyle apps to access cash from their local shop.

Other sessions cover ways to improve cash collection, cash handling and recirculation. Presentations will also compare business models – such as ATM pooling or utility models – can make cash more efficient. Central bank perspectives on cash will showcase how technical processes are transforming the way cash is used and handled.

Most countries have been seeing continued growth in demand for banknotes and coins. Worldwide, cash is the leading payment instrument, even if there are significant differences between countries.

“Cash possesses unique attributes, which are mostly unmatched by alternative payment instruments,” said Guillaume Lepecq, conference chair. “Cash also generates benefits for society that are not directly linked to its payments function: it ensures financial inclusion, it protects users’ anonymity and it also works when the power is down or in case of computer outages.”

The event will set out to shape a dynamic and future-focused roadmap for cash at a time when economies across the globe are seeing far-reaching changes in payment and monetary eco-systems as technology, regulation and demographics combine to enable societies to move wealth differently.

“The bold and imaginative futures that this conference will design come as timely and unique opportunities for all involved in payment technologies and how they can actively shape the future of cash,” he added. Details of the conference programme are available at www.thefutureofcash.com

January 23, 2020

Retail sheds 57,000 jobs

 

  • In Q4 2019, the total number of retail employees fell by 1.8% year-on-year, a lower rate of decline when compared to Q4 2018 when employment fell by 2.8%. This is the 16th consecutive quarter of year-on-year decline in the retail workforce, proof that the transformation in the retail industry is ongoing. Full-time employment fell by 3.0%, while part-time employment fell by 1.2%.
  • This 1.8% decline in retail employees year-on-year (Q4 2018 vs Q4 2019), when applied to the ONS Q4 2018 figure of 3,183,000 employees, equates to 57,000 job losses since Q4 2018. It should be noted that employment in Q4 is higher than other quarters due to the seasonal nature of retail.
  • At 0.2%, store growth was the lowest since Q4 2016, and below the 2018 comparable figure of 2.3%.
  • 38% of retailers planned on hiring fewer employees in the coming quarter, slightly above 29% the previous year. With the Golden Quarter behind us, retailers will be reducing their workforce, which was temporarily increased over Christmas. 8% of retailers indicated plans to increase staff in the coming quarter (14% Q4 2018).

Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said:

“Following figures showing 2019 was the worst year on record for retail sales growth, it comes as no surprise that retail shed the equivalent of 57,000 jobs compared to Q4 last year. There were many challenges in 2019: businesses had to contend with the repeated risk of no deal Brexit, a general election and the ongoing transformation of the industry, leading to weak consumer demand. As a result, employment has suffered in retail, the UK’s largest private sector employer. This matters – retail offers many people their first job, a range of flexible working options, and huge opportunities for progression. Retailers may be investing heavily in their workers, through training and apprenticeships, but more could be done. The current inflexibility in the Apprenticeship Levy system means that much essential training is not covered, limiting the opportunities for many working in the industry.

“Moreover, it is worrying that the government is standing by while tens of thousands of jobs are being lost. If the same was true in manufacturing or aviation, one can be sure that the Government would act. There are opportunities for action and the government’s review of business rates could not come at a more crucial time. It is essential that they reform this broken system and rectify a tax that sees retail, which accounts for 5% of the economy, pay 25% of the burden.”

January 23, 2020

RICS: Construction stabilises for year end, but…

Despite workloads across the UK’s construction and infrastructure sector stabilising for year end, uncertainty over the next stages of Brexit is still holding back investment, according to the results of the Q4 2019 RICS Construction and Infrastructure Market Survey.

This quarter, workloads continue to rise with 12% more respondents seeing a rise in workloads rather than a fall. It should be noted, that while positive, this figure is well below pre referendum results, when responses averaged a net balance of 36%.

In Q4 infrastructure has seen the strongest growth with 17% more contributors reporting a rise in workloads. Private housing also continues to see strong growth, with 15% more chartered surveyors reporting a rise.
As a potential visible impact of policy change, it is interesting to note that since the start of 2019, workloads in public housing have also risen. An extra question was added to the survey this quarter to ascertain the impact that lifting the Housing Revenue Account borrowing cap has had on social housing. 34% more surveyors reported an increase rather than decrease in expectations for council house building workloads over the coming twelve months.

Activity in the private commercial sector has also increased in Q4 with a net balance of 11% of respondents seeing a rise, up from 2% in Q3. However, workloads in industrial remain at a near standstill, for the fifth consecutive quarter.

With 45% of the responses to the latest survey coming in post the general election result, the RICS market confidence indicator rose to 35% in Q4, suggesting that the end to some uncertainty has renewed confidence in the market.

Even with the increase in workloads respondents are still cautious over Brexit. Anecdotally respondents to the survey suggest this is one of the main reasons for holding off on investment decisions. 25% more surveyors will likely decrease investments on fixed assets including equipment and software in 2020, and 33% more intend to curtail workforce development and training. However, when asked how business enquiries for new projects or contracts have fared in the past three months, 16% more respondents report an increase rather than a decrease.

Also, despite ongoing recruitment challenges, and with surveyors continuing to report full order books, a net balance of 39% of respondents have increased their headcount in the past three months. 42% of respondents still anticipate skills shortages to impact growth across the sector for the future.

Jeffrey Matsu, RICS economist, commented: “While momentum across the industry has eased in recent years, surveyors continue to report full order books and constraints on capacity that suggest anything but a recession. The general election result last month provided a welcome relief to market confidence with the anticipation of additional fiscal spending to be announced at Spring budget pushing year-ahead workload expectations higher. That said, the yet-to-be-known relationship with the EU has kept the economic outlook fragile which is affecting businesses intentions to invest.”

January 23, 2020

Brewery triumphs after £10,000 social media win from Liberis

Two years after opening, and a year after winning £10,000 in a business finance competition, Barnes-based brewery Jeffersons has demonstrated how a thorough understanding of a niche market, intelligent business planning, and access to funding are the key ingredients to help a small business to flourish.

The £10,000 win came from a social media competition organised by Liberis Finance, an award-winning funding provider that is on a mission to support small businesses in their growth strategies. Freddie Jefferies, business partner and brother to George Jefferies, entered the competition without telling anyone:

“You were asked to tell Liberis how you would use the funding in your business. After applying online I had a follow up call with Liberis and then completely forgot about it,” says Freddie.

A few months later George received word from Liberis that they had won! He couldn’t believe it and finally told his brother that they were receiving a £10,000 cash injection!

The brothers launched Jeffersons Brewery in leafy, South-West London’s Barnes after they identified a gap in the market with the majority of London’s trendy micro-breweries being based in East London. They were also receiving considerable interest in what was initially George’s hobby:

“It started out with a home brew kit, and it took a year and a half of testing ingredient combinations before creating a palatable beer,” says George. “We brewed our ‘Hoppily Ever After’ beer for our brother’s wedding and got great feedback, as well as commercial requests, helping us to realise we could make a business out of this.”

After two years of business planning and obtaining a commercial brewing licence as well as £40,000 funding from a Government-backed, non-profit, start-up finance organisation, StartUpLoans, the brothers launched Jeffersons at the July 2017 Barnes Fair:

“It was a really supportive community event, where we had exclusivity and managed to sell over 1,000 pints of beer” says Freddie. “The journey since then has been a steep learning curve, as we are doing everything in house, from bottle and packaging design to delivery logistics.”

The £10,000 win from Liberis Finance in October 2018 meant that the brothers were able to expand production capacity by increasing tank space, and sell their beers on wholesale sites such as Eebria:

“This has been a great way to get our business out there, producing a ripple effect where people actually approach us,” says George. “We have since won an exclusive contract with the Riverside studios, marking an exciting time for us. We couldn’t have done it so quickly without our Liberis win.”

Freddie says their experience of the alternative finance community has been excellent:

“It is fantastic that there are alternative options to funding outside of traditional banks, especially those that specialise in small, start-up businesses,” he explains. “We are extremely grateful to Liberis and have been impressed with its responsible and convenient funding solutions, as well as the support it provides to SMEs. Liberis has marketing workshops planned, designed to help people exactly like my brother and I, so we’ll be looking out for more information on that.”

Looking forward, George and Freddie have big plans for their business and while there is always more to learn they believe they have a good proposition:

“The biggest factors in a brewery’s success are consistency and quality, as well as adaptability. It’s a fickle market and vital to keep producing new beers that meet the sector’s fast-moving trends and styles,” says George.

“Our own tap room is on the road map for us, as is further increasing production capacity, investing in equipment, marketing and branding and getting ourselves better known at craft beer exhibitions,” continues George. “Three years from now, we hope to be in supermarkets and exporting internationally.”

“The overall plan is to build a chain of tap rooms,” Freddie adds. “It’s a crowded market and there is limited tap space in pubs, so we see this as a key area for growth.”

Rob Staathof, CEO of Liberis Finance, says the competition was a fantastic opportunity to demonstrate tangible support to its key audience and collect essential business insight:

“It enabled us to talk to great swathes of interesting SMEs, eager to grow and able to tell us what support they need from the alternative finance sector. We’re delighted to see the achievements of the Jeffersons Brewery and proud to have been able to help in the business’ formative years.”

January 23, 2020

IGF wraps up 2019 with a further 26% increase…

Independent Growth Finance (IGF) has entered the new decade in style with seven new clients signed in December and £126m funds in use. Despite a turbulent year for SMEs across the UK, IGF’s funds in use have continued to grow at pace.

Of the seven new asset-based lending (ABL) clients signed in December, three are based in the Midlands, with combined funds in use of £6m.

John Onslow, CEO of IGF, commented: “We closed 2019 with a fantastic month of new business across the UK. This has set us up very well for a strong end to our financial year. Of all the records broken during this period perhaps the most rewarding was the sheer amount of cash collected. It really illustrates how liquid the assets are that we fund and the volume of cash locked away.”

“We understand there is a determination by SMEs to invest and focus on their futures. By providing more than £1bn of new funding over the course of 2019 we are playing our part in ensuring UK SMEs have access to the right financial support.”

The strong start to the year is further bolstered by the appointment of new commercial director, Matthew Shepherd. He joins from the ABL division at CYBG, previously Clydesdale and Yorkshire Bank, to spearhead national growth.

January 22, 2020

Praetura Asset Finance expands team following year of record growth

Praetura Asset Finance, a leading independent asset finance funder based in the North West, has recorded its most successful year ever. 2019 saw the business write more deals, provide more funding and work in partnership with more brokers than ever before.

The consultant lender saw growth in five out of the six regions of the UK year on year; the Midlands saw the amount of funding provided rise by 57% and the South of England saw an 84% increase in the number of deals done.

To maximise the potential of the growth the company is experiencing, they have boosted their sales team with a hat trick of new appointments.

The company are doubling their business development resource for brokers in the South of England, with the additions of Dan Sellwood, previously at EFT Finance (and Liberty Leasing before that) and Alexander Fowler, who joins following three years at Amicus Asset Finance.

Dan Sellwood commented “I am excited to be joining Praetura Asset Finance as the service they can offer brokers and their customers is fantastic. In this demanding and busy market you need to be able to offer something different and flexible to stand out and I believe Praetura’s product suite does just that”.

Alexander Fowler added “I am very much looking forward to this new challenge! Praetura Asset Finance has a strong standing and reputation in the finance industry and I’m keen to contribute to that and continue my career progression with such an exciting company”.

Craig Thomas also began working for Praetua in December 2019 as a business development manager in the company’s new specialist print division.

Mike Hartley, managing director at Praetura Asset Finance, said “2019 was a phenomenal year for us, there were lots of new things; a new corporate headquarters, new branding and a new multi-million pound funding line, to name just a few. We are helping more SMEs across the country and providing more funding than we ever have before, proving that asset finance ‘The Praetura Way’ is a resource that adds value to each and every business with whom we’ve worked in partnership.

“I’m pleased and immensely proud of what we have achieved, but not satisfied. There is more we can do and the new appointments are testament to the ambitions we have for 2020 and beyond”

January 22, 2020

Liberis raises £32m to accelerate ambitious growth plans

Liberis has successfully closed a £32m funding round in its largest equity capital fundraise to date. This investment represents the company’s first institutional equity fundraise and was led by FTV Capital – a growth equity firm with a successful track record of supporting high-growth financial services and technology companies. Liberis is backed by Blenheim Chalcot, the UK’s leading digital venture builder, who welcome FTV as co-investors in Liberis. This investment brings Liberis’ total debt and equity funding to over £150m.

Since its inception, Liberis has provided over 15,000 small businesses with more than £450m in funding of which the majority through its innovative Funding-as-a-Service platform with integrated partners. Liberis’ strategic partners, which include amongst others four of the world’s largest merchant acquirers, currently white-label its finance platform to offer funding to their own small business customers.

The last 18 months have seen rapid global growth for Liberis with expansion into five new countries including the UK, US, Sweden, Czech Republic, Slovak and Finland. This new investment will support the business as it further expands its footprint in the United States and in two new European countries, as well as attracting the best talent with a 30 percent increase in headcount planned for the next year. The investment will also enable the company to scale globally at pace through its unique partnerships model to support the millions of small businesses who have difficulty in accessing the funding they need to thrive.

Rob Straathof, CEO, Liberis, commented: ‘Small businesses are the lifeblood of the global economy, yet they continue to be turned away by banks and traditional lenders or faced with unhelpful repayment terms and complex processes. We are delighted with this investment from FTV Capital as it means we can continue to onboard new partners, expand our product range and grow our team in order to serve the 50 million small businesses across the US, Europe and the UK with much needed funding. 2020 is set to be an exciting year for Liberis and this financial investment will help to accelerate our plans so we can support thousands more small businesses around the world with fast, flexible and fair funding.’

Jerome Hershey, senior investment advisor at FTV Capital, said: ‘FTV believes the convergence of payment processing and small business funding presents a massive investment opportunity. Liberis’ differentiated distribution model offers a compelling value proposition for both its strategic partners and small business customers. To support a significant growth trajectory as it expands internationally across Europe and in the United States, Liberis can now leverage our Global Partner Network®, a group of leading finance and payments enterprises that have helped FTV portfolio companies for two decades. We are thrilled to be working with the company’s strong management team, and existing investors, to help them execute their vision.’

Manoj Badale, founder at Blenheim Chalcot said: ‘Rob and the Liberis team have built a great business with some of the world’s largest payment providers as strategic partners, and we are delighted to welcome FTV as co-investors. We look forward to working closely with them as we continue to expand its partnerships base and grow Liberis globally.’

To strengthen its global operations, Liberis has recently appointed general managers for both the US and Europe. Howard Kramen joins as general manager for the US, having previously led PayPal’s global credit operations. Kramen played an instrumental role in lending over $10bn to over 225,000 small businesses across the US, UK, Australia and Germany. Meanwhile Pedram Tadayon joins as Europe general manager and brings 20 years’ financial services industry experience to Liberis, having previously been CEO of Emric – a fintech provider in credit management, along with senior positions held at Nets, EnterCard and American Express.

Liberis also welcomes Jerome Hershey from FTV onto its Board. Having led OnDeck’s IPO as the Company’s head of business and corporate development, and with investing roles at Spectrum Equity and Technology Crossover Ventures, Jerome brings a wealth of knowledge and experience to Liberis and will support the organisation as it continues to grow its presence in the United States.

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