FOOTBALL fan and media entrepreneur Simon Burrell scored an away win with a brand new signing to strengthen his team in a publishing buyout.
Simon picked Cowgill Holloway to lead his backroom squad in the purchase of the football-orientated newspapers “The Non-League and “The League” in a deal for an undisclosed sum.
Cowgill Holloway partner Paul Stringer and Corporate finance manager Charles Cooper advised Simon on the deal to buy the papers –covering grassroots football to the Conference divisions and all football League matches – which were sold by publishers Greenways Media. The purchase complements Simon’s Entertainment and Sports Agency Group providing sport and entertainment content to media companies throughout the world.
And he claims this could be the just the beginning for the publications as he is looking to add value and, ultimately, aims to create a national 120-page multi-sport paper.
He said: “We identified “The Non-League” and “The League” papers as potential acquisition targets because of the fit within our existing business group. These papers are the first port of call for the serious supporter of football beyond the Premiership”.
His enthusiasm is matched by Charles Cooper who commented that Cowgill Holloway intend to keep a close eye on the continued success of these publications, adding: “They bring premier league style coverage to lower league football”.
Legal advice was provided by specialist business lawyers Peter Bibby and Umberto Vietri at Corporateblue, a business law practice ideally based on Chorley New Road, near neighbours to the Cowgill Holloway offices.
Thanks to those close links, the deal was completed in a very short time or, as Peter Bibby commented: “without the need for extra time”.
Peter Cowgill, one of Bolton’s most successful accountants and entrepreneurs has challenged more than 400 North West business leaders to embrace further integration.
Speaking at the Bolton Multicultural Business Dinner held at the Last Drop Village, Peter said that great strides have been made to bring communities together through business contacts and trade but that more effort on both sides will yield even greater commercial and cultural results.
He added: “it is important that businesses from within the various ethnic communities in Bolton are given all the help and support necessary to thrive and develop – but they also need to help themselves. I want to see more diversity from businesses outside ethnic communities”.
The dinner was organised by Bolton Business Ethnic Minorities Business Service whose head, Ayub Patel, said it was a real coup to get someone of Peter Cowgill’s stature to speak at the dinner, commenting: “the fact that he is local is an added bonus”. Peter himself, said it was an honour and a privilege to be asked to address the dinner.
In addition to his role as head of Cowgill Holloway – which has 11 partners and more than 100 staff based at the firm’s offices in Chorley New Road – Peter is also executive chairman of the John David Group, owner of the JD Sports sportswear chain.
A loss-making Lancashire company had its fortunes transformed with the help of Cowgill Holloway’s Corporate Finance team.
Partner Ian Johnson and his team of business experts advised on the multi-million pound sale of Rawtenstall childcare provider Keys Child Care Holdings to Belfast-based Annvale Ltd, part of the Bettercare Group for “an undisclosed seven-figure sum”. Ian said: “This is an extremely rewarding deal to see completed. We were originally called in when the company was facing serious financial difficulties”.
Keys Child Care was established in 1994 by Barbara Fleetwood, Sheila Fearnley and Veronica Reynolds employs 150 staff at 10 children’s homes and two approved schools across the North West.
Barbara Fleetwood, managing director of Keys Child Care said: “If it wasn’t for Cowgill Holloway we wouldn’t be where we are today. They put a strategic plan in place to turn us around from making a loss into a profitable company.
“Over the years, we developed a very close working relationship with Cowgills. They guided us all the way through our expansion and acquisition strategy to structuring the sale of the business”. The expanded group will now operate under the Keys name and employ 400 staff throughout the North of England. Developments are planned in Southern England and Northern Ireland.
Cowgill Holloway advised the Elecon Group on its acquisition of Foilcraft.
The Elecon Group produce an extensive range of accessories for conservatories, windows and doors with its products being used in nearly 25% of all UK conservatories.
Foilcraft was established in 1996 to provide a film laminating service and operates from a purpose-built 10,000 square feet factory selling to its base of clients nationwide.
Cowgill Holloway Corporate Finance partner Paul Stringer led the team which advised the Elecon Group. He said: “The Elecon Group is looking to become market-leader in the window, door and conservatory accessory industry and this is an important step towards this objective”.
Specialist alloy steel casting manufacturer, Shakespeare Foundry, has undergone a management buy-out for an undisclosed sum, following advice from Cowgill Holloway.
Established in 1982 and situated in Bolton, Shakespeare Foundry is a specialist in the design, manufacture and installation of heat and wear resisting components for the mining, mineral processing and cement manufacturing industries.
The company produces alloy steel and iron castings to internationally recognised specifications particularly for applications requiring resistance to heat, wear and corrosive conditions.
Shakespeare Foundry produces ferrous casting up to 500 kgs to all international standards. The manufacturing facility operates on a 24-hour basis. The flexible approach to scheduling allows, in the case of a customer breakdown, the introduction of short lead time runs without affecting planned production runs.
Commenting on the successful MBO, Cowgill Holloway Corporate Finance partner, Paul Stringer, said: “Shakespeare Foundry has built up a good reputation as a leading supplier of components worldwide in the past 20 years. The management team has ambitious plans that will see the company continue to develop and expand in the coming years”.
DO it yourself builders could be missing out on thousands of pounds of VAT refunds following a policy amendment, warn tax consultants at Cowgill Holloway.
The Bolton based chartered accountants believe many DIY builders are unaware of HM Revenue & Customs (HMRC) revised ‘DIY Builders and Converters Refund Scheme.’
Previously, people who undertook construction or conversion projects in a non-business capacity were compensated for building materials incorporated into the building or its site in the course of the works, or in the case of a residential conversion, the services of a contractor. Goods on hire, and items such as tools and equipment, temporary fencing, cleaning materials etc do not qualify because they are not incorporated in the building.
Carolyn Van Hecke, senior VAT manager at Cowgill Holloway believes many people who are building or converting their own property, or having a property built or converted for them, which includes a non-residential part are unaware of the recent changes. She said:
“Following a recent Court of Appeal decision, HMRC accepts that buildings being converted to include both a residential and non-residential part are eligible for the DIY Refund Scheme, provided an additional dwelling has been created. If DIY house builders have converted a property which fits this criteria in the past three years, they should consider submitting claims for VAT incurred on eligible expenditure.”
PRIVATE tutors should claim back VAT before a verdict is reached on HM Revenue and Customs (HMRC) appeal against a tribunal decision, advise tax consultants at Cowgill Holloway.
The tribunal considered whether private tuition of subjects ordinarily taught in schools and universities by limited companies should be exempt from VAT.
Subjects including languages, sports, music, horse riding and even motorbike lessons are exempt from VAT when provided by a sole trader or the partners of a partnership. But, if they are provided through a limited company or by an employee of a sole trader or partnership they are subject to VAT.
HMRC are contesting the result of the VAT Tribunal in the Empowerment Enterprises case which decided in favour of the training providers. HMRC believes VAT exemption should not be given to tuition provided by limited companies.
If the taxpayer is eventually successful, private tuition providers will be able to deregister from VAT and, as a result, reduce their charges to the public. Carolyn Van Hecke, senior VAT manager at Bolton based Cowgill Holloway thinks people affected should act quickly to take advantage of the current ruling, otherwise some VAT overpaid may be lost forever. She said:
“An announcement is expected later on this year on HMRC’s appeal against the decision, but in the meantime businesses should consider lodging claims to HMRC on the grounds that they should never have been registered to pay VAT. Claimants should apply for a refund on the net VAT which has been overpaid subject to VAT claims time limits and unjust enrichment rules.”
Succession may be achieved in many different ways. A proprietor can opt for a total exit through a trade sale, a disposal to the management in a management buyout (MBO), or a sale to management with an additional lead executive, known as a buy-in management buyout (BIMBO). There is also the option of floating the business on the Alternative Investment Market (AIM) or passing it on to another family member.
The chosen method of succession is usually determined by the financial objectives of the proprietor and whether he or she wants to continue to hold a financial interest in the business.
Whichever route is chosen the business will normally be more valuable and marketable if a strong management team is in place with clear lines of responsibility and accountability. It is also essential to minimise the dependence on the proprietor.
To achieve these goals and to allow for effective tax planning, it is important to plan ahead by about two or three years and to introduce an experienced and commercially adept team of advisors to work on the succession strategy.
The best business model to adopt is that which is demanded by venture capitalists – notably, a sound strategic growth plan, a capable and structured management team and strong financial disciplines.
At the time of the exit it is critical that the business is not so dependent on the existing proprietor that it will significantly deteriorate as a result of their reduced input or absence. It is essential that the proprietor commits to a management training and grooming process at an early stage and that his withdrawal from day-to-day executive involvement is well organised.
Planning a family succession may appear to be more difficult especially when there is more than one person vying for the top job. While there may be additional emotional issues the basic criteria remain the same in terms of management responsibility and risk identification.
The appointment of a strong independent non-executive director or chairman should not be underestimated in this process. While many businesses may avoid such a move on the grounds of cost, experience suggests that the increased level of objectivity and accountability which result from this appointment may be the key to a successful family succession.
Cowgill Holloway LLP
Chartered Accountants
Regency House,
45-51 Chorley New Road,
Bolton BL1 4QR
Tel: 01204 41 42 43
Fax: 01204 41 42 44