PwC in the North

Financial crime, LIBOR, suitability... what's next?

PwC — Wed, 22 May 2013 14:15:46 +0100

Over the last year a number of high profile incidents have impacted banking, insurance and asset management. We have got together a panel of experts from our Financial Services practice who have helped firms respond to these incidents to discuss why they keep happening. Julie Coates will lead the debate on the common themes and what financial institutions can learn to avoid similar surprises in the future.

We will be live from 15:00 (GMT) on Thursday 6 June 2013.

The webcast will last approximately 40 minutes and you will have the opportunity to put your questions to the panel during the webcast. To view the webcast, please email nw.events@uk.pwc.com confirming your details. You will then be emailed a link to the webcast.

Contact details
Email: Iwan Griffiths
Tel: +44 (0) 161 245 2288

Falling fuel prices push down April inflation

PwC — Tue, 21 May 2013 15:07:14 +0100

April’s lower than expected inflation rate is the first dip in UK inflation since September 2012, according to today’s data from the Office for National Statistics (ONS).

Inflation, as measured by the consumer price index (CPI), fell to 2.4% in April from 2.8% in March, with around half of the fall attributable to lower fuel prices.

Declining air fares were the other major contributor to the decline.

Between March and April, average petrol and diesel prices fell by 2.1p and 3.9p a litre respectively, however the ONS said that food prices continued to rise due to reduced crop production resulting from prolonged bad weather.

Average food prices have now risen by 40% since 2007, as successive years of bad weather hit farming and crop yields, the ONS said.

Commenting on today’s UK inflation figures Iwan Griffiths, PwC's North West Chairman said:

"This latest drop in the inflation rate is more than most observers expected, but it's welcome nonetheless as it relieves some of the squeeze consumers have experienced between rising prices and falling incomes.

“With wages having increased at less than half the rate of inflation for almost five years, any slowdown in inflation is welcome.

“However airfares and fuel prices, which contribute to April’s decline, are among the more volatile components of inflation and these could easily reverse.

“That means the drop we have seen in April may not be sustained, so we cannot assume that inflation is on a steady decline towards the Bank of England’s 2% target and regrettably we could see inflation moving upwards again over the summer.”

PwC selects DTZ to advise on £300m Opal asset disposals

PwC — Tue, 21 May 2013 12:36:54 +0100

PwC, the joint administrators to various companies within the Opal group, has selected DTZ, a UGL company to advise on the disposal of eight student residential blocks estimated to be worth circa £300m. The properties are located in Liverpool, Manchester, Leeds, Birmingham, Nottingham, Newport and Greenwich.

Toby Underwood, partner at PwC said:

“Having stabilised the operating platform and occupancy of the properties, the administrators will, together with DTZ, undertake a timely but measured disposal of the properties, which will realise optimal value following the implementation of any appropriate asset management opportunities.”

Andrew TC Smith, lead director at DTZ comments:

“This appointment recognises DTZ’s strength in this area and the fact that we can bring additional insight and market awareness to the role of adviser.”

Mike Mitchell, UK head of student accommodation investment states:

“We are going to work closely with PwC. These properties represent excellent assets and there is already keen interest from parties looking for high quality stock. Formal marketing will commence next month.”

Tax First: NW breakfast briefing

PwC — Mon, 20 May 2013 16:43:16 +0100

We are delighted to announce details of our forthcoming North West Tax First breakfast briefing, where we bring you the latest thinking and information about developments and opportunities in the world of tax.

Corporate Tax Reform: A highly competitive corporate tax regime - what the new environment could mean for your business and how other companies are responding
New UK GAAP (FRS 102): How to make smart decisions on transition to achieve the best tax result
Alternative Dispute Resolution: A new approach to settling long running tax disputes

The breakfast seminar is taking place in Manchester on 26 June 2013.

To register interest in attending the briefing or if you would like further information, please send an email with your details to nw.events@uk.pwc.com.

A tale of two businesses: creating value by removing complexity

PwC — Mon, 20 May 2013 16:26:14 +0100

Removing complexity creates an organisation that’s agile and can respond efficiently and effectively to market changes. They also know how their people, processes and systems add value to customers and the business. This can be challenging to get right, but the benefits are significant and will ultimately lead to improved business resilience and growth that outstrips the market.

In this brief introductory video 'A tale of two businesses', we show how addressing the complexity issue, will improve the performance of your operations, reduce your costs and give your customers a better experience. This creates a real opportunity to deliver business value and set you on course for a platform for growth.

Deal Team North double announcement: NorthEdge invests in Jigsaw24 and makes Yorkshire debut with £11m Help-Link investment

PwC — Mon, 20 May 2013 14:01:17 +0100

PwC’s Deal team is delighted to have provided support to two of NorthEdge Capital’s recent investments in Jigsaw24 and in Help-Link. PwC provided financial and tax due diligence and tax structuring in support of the Jigsaw24 investment, and a lead corporate advisory role to NorthEdge, as well as financial and tax due diligence and tax structuring, in support of the investment in Help-Link.

Jigsaw 24

Jigsaw24, based in Nottingham with a service operation in MediaCityUK in Salford, offers IT solutions to businesses across the UK and has particular expertise in Apple, Adobe and creative solutions. The company, founded in 1992, has an impressive 21-year track record of year-on-year growth and has capitalised on the growing popularity of Apple products and mobile devices. Jigsaw24 employs 143 staff and has turnover of £60m, and plans to open a base in London later this year.

NorthEdge’s investment backs the management team, led by chief executive Martin Balaam and managing director and founder Roger Whittle.

The financial due diligence team was led by Christine Adshead and Patrick Meades, supported by Andrew Stewart and Peter Stephenson. The tax due diligence and structuring team was led by Simon Viner, supported by Stephen Woodhouse and Usman Choudhary.

NorthEdge Partner Ray Stenton said:

“Jigsaw24 is an established player in the Apple and creative IT solutions market with a well-established growing customer base. The business has enjoyed sustained growth through operating in sectors such as the creative industry and education, and capitalising on the increased acceptance of Apple solutions in the workplace.”

NorthEdge Investment Manager Tom Rowley added:

“PwC focused on the key drivers of the business and produced a concise report expressing clear views and opinions. The team worked closely with us and with the management throughout the deal process to deliver just what we needed.”

Patrick Meades, Director at PwC in Manchester, said:

“We were delighted to work with NorthEdge and Jigsaw24 on this deal. NorthEdge is an excellent partner for Jigsaw24 and we look forward to seeing the continued development of the business.”

Help-Link

Help-Link, based in Leeds, installs and replaces over 20,000 boilers across the UK each year. The company, founded in 1998, has seen considerable growth over the past three years after successfully entering the private boiler installation market. Help-Link, the only significant national operator in their market, employs over 600 staff, has turnover of over £30m and plans further growth over the coming years both in the private boiler installations market and through the government's Affordable Warmth scheme, designed to help combat fuel poverty.

NorthEdge's investment backs the management team, led by chief executive Mel Butler, sales director Alan Dickinson, operations director Jim Stephenson and finance director Alastair Gamage.

The Corporate Finance team was led by Stuart Warriner, supported by Andrew Kerr, Charlie Ross and Penny Mellor.

The financial due diligence team was led by Nigel Ward and Kevin Barnard, supported by Christopher Bullough and Thomas Bennett. The tax due diligence and structuring team was led by Gordon Singer, supported by Mark Wilson.

NorthEdge Partner, Andy Ball said:

“Help-Link is a Yorkshire success story that has succeeded by providing a great customer experience for an essential service. Its future is bright and we are delighted to be a part of it."

NorthEdge Director, James Hall added:

“PwC were very quick to get to grips with the business and understand the key drivers and the areas where they should focus their work. The timetable was fairly tight but they managed to deliver a quality product, on time whilst still remaining flexible and pragmatic. They were a pleasure to deal with."

Nigel Ward, Partner at PwC in Leeds, said:

“This is a terrific deal that we are proud to be involved with. The business is strongly positioned to continue to grow with NorthEdge's support.”

Should you have any queries in relation to this article please contact:

Jigsaw
Christine Adshead: Tel: 0161 245 2529; e-mail: christine.m.adshead@uk.pwc.com
Patrick Meades: Tel: 0161 245 2312; e-mail: patrick.meades@uk.pwc.com

Help-Link
Stuart Warriner: Tel: 0113 289 4514; e-mail: stuart.warriner@uk.pwc.com
Nigel Ward: Tel: 0113 288 2277; e-mail: nigel.m.ward@uk.pwc.com
Kevin Barnard: Tel: 0191 269 4445; e-mail: kevin.k.barnard@uk.pwc.com

Basel III and beyond: Gearing internal audit to the new RWA demands

PwC — Fri, 17 May 2013 12:02:35 +0100

Effective internal audit (IA) assurance is going to be crucial in maintaining board, investor and regulatory confidence in the capital numbers, but many IA teams have limited experience of the necessary front-to-back reviews. Focusing in particular on strengthening the risk-weighted asset (RWA) evaluations that are so critical to credibility of the figures, how can IA get up to speed?

Download PwC Gearing IA to the new RWA demands

For more information contact Nick Elliott, Tel: 0161 245 2264 or by emal: nick.elliott@uk.pwc.com

Accounting briefing: May 2013

PwC — Fri, 17 May 2013 11:47:46 +0100

Our Accounting briefing newsletter provides you with a quarterly technical update, focusing on the practical implications of recent developments and topical issues in UK GAAP and IFRS.

Download PwC Accounting briefing May 2013

This issue includes the following articles:

Contact details
Email: Ian Morrison
Tel: +44(0)113 289 4228

Conversion to Financial Reporting Standard (FRS) 101

PwC — Fri, 17 May 2013 11:21:25 +0100

We have noted that some companies have already converted to Financial Reporting Standard (FRS) 101 for their 31 December 2012 year ends. As they've generally prepared International Financial Reporting Standards (IFRS) accounts for their group reporting alongside their statutory UK Generally Accepted Accounting Practice (GAAP) accounts, the switch to IFRS with reduced disclosures hasn't been too onerous. However we have noted some hurdles for converting companies:

Associated companies and joint ventures are not part of the main group, so may not qualify for FRS 101.
Determining whether entities are financial institutions should be performed on an individual statutory entity basis. This can mean that some companies within a group can benefit from disclosure exemptions where others do not.
IFRS terminology does not necessarily have to change, provided that the meaning is the same (for example, trade receivables and trade debtors). But the FRS 101 formats would refer to 'fixed assets' rather than 'non current assets' as these have different meanings.

Further guidance will be available in our updated Practical guide to FRS 101 which will be released shortly.

New R&D tax credits available

PwC — Fri, 17 May 2013 11:20:25 +0100

The Chancellor also announced in the March 2013 Budget reform to R&D tax relief through the ‘Above The Line’ (ATL) R&D credit.

In many circumstances it may be likely that the benefit is no longer accounted for in the tax line but instead offset against the R&D expenditure. This treatment is more appropriate where the credit is more like a government grant than an income tax deduction.

We have considerable experience in assisting companies with making R&D claims as well as extensive knowledge of the legislative environment. Having worked with Her Majesty's Revenue and Customs (HMRC) for a number of years, we can guide you through the claim process to ensure your claims are submitted correctly. Please click here for more information.

PwC in the North

Financial crime, LIBOR, suitability... what's next?

Falling fuel prices push down April inflation

PwC selects DTZ to advise on £300m Opal asset disposals

Tax First: NW breakfast briefing

A tale of two businesses: creating value by removing complexity

Deal Team North double announcement: NorthEdge invests in Jigsaw24 and makes Yorkshire debut with £11m Help-Link investment

Basel III and beyond: Gearing internal audit to the new RWA demands

Accounting briefing: May 2013

Our Accounting briefing newsletter provides you with a quarterly technical update, focusing on the practical implications of recent developments and topical issues in UK GAAP and IFRS.

Download PwC Accounting briefing May 2013

This issue includes the following articles:

New UK GAAP is here

Changes to the UK corporation tax rate

Conversion to Financial Reporting Standard (FRS) 101

New R&D tax credits available

Conversion to Financial Reporting Standard (FRS) 101

New R&D tax credits available