A historic hotel, located in the heart of the historic and beautiful city of York, The Grand opened its doors in May 2010 following the extensive refurbishment of the former North Eastern Railway headquarters – one of York’s most iconic Edwardian buildings. Today it is the region’s leading luxury hotel and has established a global reputation for its first-class service, stylish bedrooms and unique historic atmosphere.

The hotel boasts 107 hotel rooms, 13 of which are suites. We stayed in the Executive double room, which was cosy, yet spacious, beautifully decorated and offered stunning views of York minster and the historic City Wall. The room also benefited from a luxurious bathroom, with his and hers sinks, a marble topped bath tub and under floor heating.

There’s no such thing as a standard suite at The Grand. Each room is unique – modelled to integrate the individual, elegant and quirky features of the building.

With four bars and restaurants to choose from, you are spoilt for choice when it comes to dining at the Grand. We opted for The Rise Restaurant, Terrace and Bar which offers modern cuisine across a new ‘small plate’ concept. This allows guests to enjoy a feast of delicious sharing dishes. The restaurant interiors have been inspired by York’s local heritage, creating a soft industrial dining room, combined with an open kitchen, cocktail bar and heated garden terrace which is perfect for alfresco dining throughout the year.

Overlooking York Minister, Hudsons, a 3 AA rosette restaurant, offers an ever changing 9-course tasting set menu which utilizes local produce to showcase a unique contemporary cuisine.

Set in plush surroundings, The 1906 Bar offers amazing Champagne and Martini cocktail, as well as all the classics. Bar food is also available and served until late.

Boasting a fine array of bottles from around the world, the whiskey lounge is a must for any whiskey lover. Here you can relax in the snug armchairs provided and choose from over 110 bottlings aged from 10 to 52 years old.

The Spa at the Grand is set in the hotel’s vaults, where the North Eastern Railway company once stowed its millions, and offers a secluded and tranquil environment. The spa includes a gym, a swimming pool with jets, an Aromatic Steam Room, a Nordic Dry Sauna and a relaxation room, making it the perfect place to unwind after a day of discovering the delights that York has to offer. The Spa also offers tailored treatments for men, women and under 16s and poses some of the most luxurious services and products to leave you feeling de-stressed, energised and rejuvenated.

For more information, please visit www.thegrandyork.co.uk

The pound hit an eight-year low against the euro a few weeks back, with the official exchange rate at €1 to £1.083. At some airports, such as Southampton, travelers were being offered just €0.872 to £1. This represents a 15% reduction in value against the euro since the UK decided to leave the EU and comes as Brexit negotiations are dominating the headlines.

Adaptive Insights VP of United Kingdom and Ireland, Rob Douglas, argues that market fluctuation like this is exactly why businesses need to change their financial planning to be as agile and adaptable as possible. He comments:

“While for many it will be those going holiday that are top of mind as the pound devalues, a much greater concern is how businesses will deal with this fluctuation. Not only will businesses likely be dealing with much greater sums of money and therefore potential loss, but as margins are reduced and prices potentially increased, there will be a knock-on effect across the UK economy that everyone needs to be prepared for.

“Businesses need to be able to bend and flex to changes in exchange rates, while minimising the impact on customers and staff. For many, however, this is not a reality. Recent research shows that over half (60%) of CFOs say it takes five days or more to generate new scenario analyses, enabling them to model the impact of market movements such as this, and yet the majority would like it to be a day or less. This unmet expectation by CFOs sheds a light on the need for a different kind of financial planning that focuses on agility and active planning in nearly real-time to keep pace with the rapid changes in today’s businesses.

“For the UK, uncertainty and volatility is likely to become the new norm, which means businesses need to be prepared for the unknown. While being agile will allow businesses to be more responsive, ‘what-if’ scenarios are also fundamental for businesses to understand the potential consequences of the changing market. After all, many would not have predicted that the pound and euro would reach parity.”

Insolvency practitioners are required by law to take out a bond to provide appropriate levels of security to cover any losses as a result of fraud or dishonesty on their part. Stakeholders have told the UK government that current arrangements are inflexible and prescriptive and fail to protect creditors.

Following the government’s publication of plans to revise bonding requirements for the insolvency profession, Adrian Hyde, President of insolvency and restructuring trade body R3, has this to say to Finance Monthly:

“With the insolvency and restructuring profession increasingly concerned about rapidly rising premiums for smaller firms and the perceived adversarial nature of the bond claim process, the government’s call for evidence into the issue was timely and necessary.

“Insolvency practitioner bonding is there to ensure creditors are protected if things go wrong, but unaffordable premiums could force small firms out of the market. Without a diverse insolvency profession, the UK insolvency framework’s ability to rescue jobs and businesses and return money effectively to creditors will be compromised. This will have a knock-on effect for UK plc.”

Adrian Hyde adds: “It’s very important for the government to follow up this call for evidence with further research into the market: empirical evidence is needed to shed more light on the issues that have been identified. There are some fundamental questions that need to be resolved, including whether bonding is the right way to protect creditors in the first place.

“One step that can be taken in the short-term is the development of a claims management protocol. While this would not deal with some deep-seated issues with the current legislation, a protocol would help improve communication and transparency and would simplify the claims process for all parties.

“R3 has worked closely with insolvency practitioners, creditors, and insurers on this matter and we look forward to continuing this work and working with the government to find a practical solution to concerns over the coming months.”

According to the statistics, Price Central London began to witness a recovery in Q2, both in sales volumes and prices. This follows 2 years of stagnation as buyers held back due to Brexit and residential tax headwinds. The increase in average prices, however, can largely be attributed to a surge of high value sales with buyers taking advantage of price discounting at the luxury end of the market. Underlying price appreciation for the rest of the market remains significantly less buoyant.

England and Wales and Greater London continue to see falling transactions and slower overall price growth, impacted by the introduction of mortgage caps, the instability in the domestic economy and the growing new build crisis.

Price Central London (PCL)

• Sales volumes have strengthened slightly, with an annual increase of 4.8% to 3,885
• Average prices reached £1,946,151 in Q2 2017, representing quarterly price growth of 7.9%
• Despite the statistical increase, this has been buoyed by a number of high value transactions and an increasing proportion of luxury sales
• Q2 2017 saw the most expensive sale ever to transact through Land Registry at £90m for a flat in 199 The Knightsbridge Apartments
• As a result, the top 10% of the market performed particularly strongly in Q2, seeing a 20% increase in average prices to £8m
• The most active sector this quarter was the £5m - £10m bracket, where the proportion of sales increased by 23% over Q1
• Excluding the top 10% of the market, average quarterly price growth was 4.5%
• Growth in the buy to let sector was the most sluggish with a 1.3% increase in average prices for property under £810,000

Average prices in Prime Central London reached £1,946,151 in Q2 2017, following quarterly price growth of 7.9%. Despite a slow down as the market adjusted to increased residential taxation and Brexit, this recovery is, in part, a result of buyers seeking safe havens in the face of increasing uncertainty as tensions mount in the USA, Middle East and worldwide, together with the attractions of weak sterling and low interest rates.

Transactions in PCL have strengthened marginally in Q2, following a prolonged period of falls from 6,044 in Q2 2013. According to LCP’s analysis, 3,885 sales have taken place over the last 12 months, representing a small increase in annual sales of 4.8%.

Notwithstanding the headline figures in Q2, a detailed analysis indicates that price increases have been buoyed by a number of significant high value sales, including £90m for a flat in 199 The Knightsbridge Apartments, the most expensive sale ever to transact through Land Registry. As a result, a particularly strong performance has been seen for the top 10% of the market with prices increasing 20% to average £8m. With this excluded, average growth falls from 7.9% to a more typical 4.5%.

However, whilst homebuyers have capitalised on luxury property discounts, a divergent dynamic is being seen in the lower value market. Price growth in the buy to let sector was the most sluggish, reflecting a 1.3% increase for properties under £810,000. The proportion of sales under £1m also decreased by 9%, compared with a 20% increase over £5m.

Naomi Heaton, CEO of LCP, comments: “The increase in average prices appears to reflect a greater proportion of high value properties being sold, rather than any significant underlying growth. Not only have we seen some very large individual sales but transaction data shows the £5m - £10m bracket was the most active in Q2 with a 23% increase over Q1. This can be attributed to international homebuyers taking advantage of notable price discounts, alongside beneficial currency exchange rates. The buy to let sector, on the other hand, is seeing a much slower picture as investors continue to adopt a wait and see attitude.”

“Looking at the monthly breakdown gives us a clearer picture of what is really happening in the market overall. Whilst bumper transactions boosted average prices to as high as £2.2m in April and May, which included the most expensive sale to register through Land Registry at £90m, June reflected a more sedate picture with average prices falling back to £1.65m.”

Greater London

• Average prices have shown quarterly price growth of 4% and now stand at £634,234
• However, annual transactions fell by 24% in Q2, resulting in a low of 88,545 sales, half those 10 years ago

Heaton comments: “Greater London is principally a domestic market and whilst prices continue to show growth, slowing sales volumes reflect the current state of the UK economy. Concerns around Brexit have impacted the ‘feel good’ factor which drives buyers’ decisions, whilst affordability issues resulting from caps on mortgage lending have hampered buyers ability to trade up or get onto the housing ladder. Falling sales volumes are also exacerbated by problems within the new build sector. This has seen international speculators pull back in the face of uncertain or negative returns. It is reported that the number of new building starts in London will fall to just 21,500 this year, meaning only 18,000 new homes will be built by 2021.”

England and Wales

• Average prices in England and Wales have shown almost nil quarterly price growth at 0.27% and now stand at £287,823
• Transactions fell by 12% in Q2 with 844,380 sales annually, the lowest since Q2 2010

Heaton comments: “Despite Government measures to reduce Stamp Duty for 98% of the market and schemes to promote activity such as Help to Buy, weaker sentiment and restrictions on borrowing continue to impact on the domestic market in England and Wales. With static price growth in Q2 and annual transactions levels falling a further 12.3%, the Government seriously needs to address the growing affordability issues within the sector and support the building of more low-cost housing for buyers. The artificial stimulus packages and tax reliefs do not appear to be reinvigorating new buying activity.”

(Source: London Central Portfolio Limited)

Figures released by UK Finance find the number of debit and credit card transactions grew by 12% in the UK in the year to the end of June, the highest annual rate since 2008. The value of spending also rose, accelerating to 7.2%.

Lenders are currently facing the pending challenge of upping their game after The Bank of England's Prudential Regulation Authority (PRA) highlighted the need to address lending concerns.

Ian Bradbury, Chief Technology Officer, Financial Services Business at Fujitsu UK and Ireland, told Finance Monthly:

“With the use of contactless payment cards soaring by over 140% in the past year alone, the news that UK credit and debit card spending is growing at its fastest rate in nine years comes as no surprise. We expect contactless payments to become an increasingly important feature in the British payments landscape. Making up around a third of all plastic card transactions – up from around 10% just a couple of years ago – the convenience and ease of contactless payment means that such transactions are continuing to gain traction with the public. Not only this, the high-growth adoption of contactless payments underlines the fact that consumers and retailers choose to adopt solutions that are secure, quick and easy to use, as well as ubiquitous.

Contactless payments are not only easier to use than Chip and Pin, they are in many ways more practical than small change and small notes. The significant parallel growth in debit card transactions also suggests that this is not growth just fuelled by debt and easy credit – much of this increase will be a result of contactless payments being made purely due to ease. What’s more, contactless payments have the added value of fuelling other payment solutions such as Apple and Google pay and other wearable technology – which can’t be done as easily with Chip and Pin.

Finally, the success of contactless payments demonstrates that consumers are quick to adopt new payments solutions that focus heavily on improving the consumer experience. However, because consumer experience can cover many aspects including convenience, security, speed and ubiquity, it’s vital that providers put in place ways to improve the experience over current solutions. If future payment solutions do not address all of these areas – which are fast-becoming a customer expectation – then they are unlikely to be successful.”

In a surprising turn of events, foreign investors don’t seem to be put off by Brexit. In London over 99 financial projects were backed by overseas investment beating out the likes of Paris and Berlin, foreign entrepreneurs are actively seeking out the Entrepreneur Visas to come to the UK.

Globalisation: The next stage business

Expanding business holdings on an international is the move for the 21st century, whether it’s opening a foreign franchise or taking over an existing company, the exploration of a new country’s economy can put businesses ahead of competition.

The UK is currently attracting pioneering business women and men as one of the biggest investment hubs in the Western world, a great international pedigree, and a fantastic business time zone. With over a billion-pound worth of investment in the city of London over the past 12 months, it’s clear to see that over Brexit worries are not slowing down business opportunities,

The Visas

There are many ways to enter the UK but for those looking to pursue a successful career and make the most of the UK economy an Entrepreneur, Visa will definitely be the best option. This visa defined as a ‘Tier-1’ is for prospective business people from outside the European Economic Area and Switzerland who are looking to either set up or run a business in the UK. For those looking to go to the Capital, an immigration lawyer in London would be able to guide through the steps for a successful application.

(Source: Immigration Advice Service)

As part of Finance Monthly’s brand new fortnightly economy and finance round-up analysis, Adam Chester, Head of Economics & Commercial Banking at Lloyds Bank, provides news and opinions on UK and global markets touching on the Bank of England, Brexit and currencies.

The pound fell to an eight-year low against the euro over the past week, pushed by ongoing signs of momentum in the Eurozone and concerns over the outlook for the UK economy.

Sluggish wage growth has also fuelled concerns about the strength of the economy as a whole.

The Office for National Statistics reported that average weekly earnings grew by 2.1% year-on-year in the three months to June - equating to a 0.5% fall in real wages.

While there can be little doubt that the fortunes of the Eurozone have improved, despite Brexit uncertainty, the fall in the pound looks overdone and the UK’s position could now be shifting.

Signs of improvement

The jury remains out on the extent to which Brexit uncertainty is weighing on sentiment, but earlier indications of a sharp slowdown in economic growth have given way to signs of stability.

Undeniably, the economy slowed sharply in the first half of this year. Quarterly GDP growth averaged a below-trend 0.3% across the first six months of 2017, compared with 0.6% in the second half of 2016.

As the third round of Brexit discussions gets underway however, reports including CBI industrial trends, purchasing managers index (PMI), labour market and even retail sales are all showing signs of improvement.

While plenty of downside risks remain, for now, households and businesses are in the main managing to cope with the challenges.

Employment and exports climb

Take the latest employment report, for example.

According to the ONS, total employment rose by a further 125,000 in the three months to June, pulling the unemployment rate down to 4.3% - the joint lowest rate since 1975.

Separately, the CBI reported last week that industrial orders rose this month, approaching the 29-year high seen in June. The trade body stated that a rise in both domestic and export orders was behind this rise, with the latter fuelled by the drop in the pound and the turnaround in the Eurozone’s fortunes.

Improvements didn’t stop there. The latest UK public finances data were also better than expected. July’s public finances were back in the black for the first time since 2002, thanks to surging tax revenues.

The beleaguered retail industry also saw a return to stability. Sales rose by 0.3% in both June and July, though this could prove temporary, as the latest CBI retail trades survey suggests renewed weakness in August.

Brexit and the Bank of England

Despite these signs, Brexit uncertainty still looms large.

At its policy meeting earlier this month, the Bank of England remained studiously agnostic on the implications of Brexit. For forecasting purposes, it assumes a “smooth transition” post March 2019, but makes no judgement about what form the UK’s eventual relationship with the EU may take.

It’s clear, however, that uncertainty continued to weigh heavily on the minds of UK rate-setters when they left the bank base rate unchanged again this month by a margin of 6-2.

Alongside this decision, the bank published its inflation report, containing modest downward revisions to GDP predictions for this year and 2018. Inflation is expected to remain above its target of 2% over the next three years.

Judging by the reaction, these latest communications have been taken as evidence that UK interest rates will remain on hold for a long time.

The markets are not priced for a first quarter-point rise until mid-late 2019, and the rate is expected to be below 1.0% in five years’ time.

Potential rate rise earlier than expected

But this looks overdone.

Market participants seem to have focused on the most dovish aspects of the Inflation Report, ignoring the explicit warning the rate may rise more sharply than the market yield curve expects and forgetting the implications of the ending of the Term Funding Scheme (TFS).

The programme has been in place since last August to help provide cheap finance to the banking system.

It would be odd to increase rates while at the same time mitigating the impact through TFS, so when it ends next February an obstacle to an early rate rise will have been removed.

On balance, the recent scaling back in UK interest rate expectations, and the corresponding impact on the pound, may have gone too far. There remains a significant risk that the first rise comes earlier than the market expects – possibly by early next year.

Much will depend on how Brexit negotiations develop. One thing is certain, the markets will be watching closely for any signs of progress.

With the ups and downs of global uncertainty in today’s markets finding a buyer can prove difficult. Here Finance Monthly hears from Lord Leigh of Hurley of Cavendish Corporate Finance LLP on his five key tips to ensuring a business gives itself the best chance of attracting an overseas buyer.

The UK continues to be one of the most attractive markets for foreign direct investment (FDI) and inbound M&A activity. According to Ernst & Young’s 2017 ‘European Attractiveness Survey’, the UK was named the second most attractive market for FDI while Lloyds Banking Group’s June Investor Sentiment Index revealed that UK investor sentiment remains at near record levels, with overall sentiment up 3.87% compared to the same period last year.

Both these indicators are positive signals for potential overseas buyers of British companies and a fall in Sterling has also helped to make UK businesses more attractive, though the continued robustness of the UK economy and the performance of the corporate sector also underpin healthy M&A activity. Mergermarket reports that in H1 2017, the UK was responsible for 22% of all European M&A inbound activity, with UK activity totalling £46.6bn and Europe totalling $211.1bn.

Despite this encouraging backdrop, uncertainty, largely surrounding the outcome of Brexit, still persists, so it’s important for British businesses to take all the steps they can to ensure they are as attractive as possible to foreign buyers, who typically pay a premium compared to domestic buyers when acquiring a UK company.

1. Understand your buyer

The more aware you are of the foreign buyers’ motive for purchasing your business, the more value you will able to demonstrate to the prospect. There are typically four reasons an overseas buyer would be interested in a UK business: it provides access to the British market, or an entryway into European and international markets, it has attractive tech and intellectual property potential, or the business is able to merge with one of the foreign buyers’ existing businesses to generate cost savings and efficiencies. Identifying a buyers’ intention before engaging in the deal process will significantly increase your chances of selling and achieving maximum value for your company.

2. Develop a post-Brexit strategy

Although the UK is currently well positioned for FDI, the EY 2017 Attractiveness Survey reveals that a number of respondents think that, in the medium-term, the UK’s attractiveness as an FDI location will deteriorate, with 31% of respondent investor’s worldwide saying they expect this to be the case in the coming three years, although 32% say they expect it to improve. One can assume that this is potentially due to the uncertainty around Brexit and the UK’s access to the European single market.

To counter this scepticism, it is important for businesses to develop a post-Brexit strategy. For companies who do not export outside Britain, they will need to demonstrate that they have the capabilities to survive and grow solely in the UK market. Companies that do export outside of the UK will need to show that they can continue to easily sell their goods in the EU and have potential international markets they can access if selling in the EU becomes more problematic.  A good example is the recent sale of smoked salmon producer John Ross Junior, a company with a Royal Warrant, which we advised. The company proved its international capabilities by highlighting the 30 countries they supply and the opportunity for future growth in other regions, which were key factors in the decision of publicly listed Estonian company, PR Foods, to buy the business.

3. Foster key relationships

Foreign buyers want to see a highly connected UK business, and having strong networks is key for sealing contracts and fostering growth. Prospective buyers want to be reassured that the company does not have particular reliance on any one customer and should they purchase the business, there will be high retention rate among customers, employees and suppliers.

4. Update your books

The extent of the due diligence that the buyer will undertake depends on the sector, the buyer’s existing knowledge of the target company and the laws of that country. English law states ‘caveat emptor’ or ‘buyer beware’, meaning that the buyer alone is responsible for checking the quality and suitability of the company before a final sale is made. Having updated financial statements and a strong finance team to help respond to the likely multiple queries a potential buyer will have, should ensure a smooth and speedy process when engaging with a prospective buyer.

5. Appoint an advisor with specialist expertise

Selecting the right advisor for a sales process is key, especially when an overseas buyer is involved. Compared to domestic M&A, foreign deals demand an understanding of cultural differences, state versus domestic laws, and regulatory approval processes. Engaging an advisor with specialist expertise in your sector, the mid-size market and that has a global reach to find potential acquirers will optimise the sales process and ensure that the deal executed will be the best outcome for your business.

The FCA has finally released its long-awaited consultation paper[1] (CP) on its planned extension to the Senior Managers and Certification Regime (SM&CR) to the vast majority of those firms regulated by it.

The FCA intends introducing this new extended regime on a proportionate basis and having regard to the plethora of activities undertaken by regulated firms, and the size and scale of individual firms. Here Douglas Cherry, Partner at Reed Smith, discusses with Finance Monthly.

The SM&CR consists of three principal elements which are the “core”, “enhanced” and “limited-scope” regimes.

The core regime applies to all affected firms and is the focus of this short discussion.

The enhanced regime will apply only to the very largest firms regulated by the FCA and is expected by the FCA to capture only around 350 firms in total. It requires additional detail, above the core regime and places additional individual responsibility in particular on risk, prudential and audit responsibilities.

The limited scope regime is effectively a ‘light’ version of the core regime for particular classes of FCA-regulated firms including: limited scope consumer credit, oil market participant and sole trader firms. These firms will not be required to implement the SMFs and are exempt from other requirements in the regimes too.

The core regime essentially sees those holding significant influence control functions under the existing regime mapping across to the newly defined Senior Management Functions “SMFs”. It also introduces the notion of the certification regime to firms.

Whilst the new SMFs are re-defined, there is little magic about those definitions, and those of you currently holding a Chief-Executive, Executive Director, Partner, Compliance Officer, MLRO and so on, will likely fall within these new SMF definitions. SMFs will be required to apply for the relevant designations and receive prior approval from the FCA before carrying out any duties at a regulated firm which fall within the definition of the relevant SMF.

The extended regime mandates adherence to a Statement of Responsibilities (SOR) by SMFs. The firm must articulate those duties for which the SMF holder is responsible and ensure that each impacted SMF-holder subscribes to that SOR. This is similar to the approved-persons regime, but in contrast to that regime, it creates a burden on the SMF holder to demonstrate to the FCA that they proactively discharge their prescribed responsibilities, and in the case of regulatory criticism; show that they took “reasonable steps” to meet their obligations.

Some staff will fall outside of the SMF definitions, and instead fall within the certification regime. These staff will not require pre-approval from the FCA. Rather, they must be assessed (on an ongoing basis) by the firm, as fit and proper to do their job. Certification staff will likely include those concerned with client assets and money (CASS oversight function), those heading up business units and those persons who have the ability to cause ‘significant harm’ to a regulated firm (including proprietary and algorithmic traders, and investment advisors amongst others.

The FCA expects to focus very precisely on how roles and defined and described and how the firm organises itself. From an employee perspective, firms may well start seeing senior staff being reluctant to be seen as SMF staff, where a role may be defined in manner that pushes it into the certification regime instead.

Whilst for may practical purposes, the regime changes do not fundamentally change the day to day approach at regulated firms, the very fact of the certification regime places a positive burden on firms (and the SMF individual with responsibility for this area of systems and controls as well) to actively certify at the outset an monitor on an ongoing basis, compliance with the fit and proper test.

The largest burden is likely to be the defining of roles and management time and effort spent in implementing these changes. The consultation runs through to 3^rd November, and the new rules, in very similar form to the CP, to be in force from Q3 2018.

[1] Individual Accountability: Extending the Senior Managers & Certification Regime to all FCA firms CP17/25 July 2017

The UK outsourcing market recorded its strongest half year performance since 2012 between January and June as financial services companies ramped up activity, according to the Arvato UK Outsourcing Index.

The research, compiled by outsourcing provider Arvato and industry analyst NelsonHall, revealed outsourcing deals worth £5.2 billion were agreed in the first six months of the year, with financial services accounting for 55 % of the total contract value at £2.9 billion.

The sector’s investment in outsourcing services was behind a steep increase in spending by UK businesses, according to the findings. Companies signed contracts worth £4.5 billion between January and June, representing a 95 % year-on-year rise. The latest figures follow a particularly strong first quarter, which saw firms agree deals worth £2.5 billion - the strongest quarterly private sector spend since the last three months of 2011 (£6.4 billion).

IT outsourcing (ITO) contracts accounted for the majority of private sector procurement in H1, with deals agreed worth £3.8 billion, up from £1.2 billion in the first six months of 2016. Application management and hosting were the most popular service lines procured by the private sector, as businesses focused on digital transformation.

The overall value of UK outsourcing contracts signed in the first six months of 2017 represents the largest half year spend since H1 2012 (£5.6 billion), and a 23 % year-on-year rise.

Debra Maxwell, CEO, CRM Solutions UK & Ireland, Arvato, said: “It’s clear from the research findings that we are yet to see any impact of Brexit on the sector as businesses continue to invest in new technology and transforming their services.”

Security concerns drive outsourcing spend in financial services

Financial services businesses signed outsourcing contracts worth £2.9 billion in the first half of the year, a steep rise from the £428 million agreed in the first six months of 2016.

An increased demand for outsourcing IT services, specifically network infrastructure, security architecture and cloud computing, was behind the rise, according to the findings. The sector accounted for 62 % of total ITO spend in H1 2017, compared to just five % over the same period last year.

Patrick Quinn, CEO of Arvato Financial Solutions UK & Ireland, said: “Strengthening security and data protection are top of the agenda for the sector and businesses are increasingly turning to partners to deliver resilient infrastructure and architecture in the wake of high profile cyber-attacks and to prepare for the new data privacy legislation.”

Improving customer service drives growth in energy and utilities sector

The number of deals agreed by energy and utilities businesses over the first six months of 2017 rose by 20 cent year-on-year, according to the latest Index findings.

Companies signed outsourcing contracts worth £268 million over the period, up 10 % on the value of deals agreed between January and June 2016.

The research reveals an increase in BPO spend is behind the rise, specifically investment in customer services and collections. Energy and utilities firms spent £164 million improving customer experience in H1 2017, compared to the £4 million invested by the sector on BPO during the same period in 2016.

The Arvato UK Outsourcing Index is compiled by leading BPO and IT outsourcing research and analysis firm Nelson Hall, in partnership with Arvato UK. The research is based on an analysis of all outsourcing contracts procured in the UK market during H1 2017.

Other headlines from the H1 2017 Index include:

Overall, 87 % of spend came from the private sector, with government bodies accounting for the remaining 13 %.

A total of £882 million was spent on business process outsourcing (BPO) deals, representing 17 % of the overall UK outsourcing spend.

The value of ITO contracts accounted for 83 % of the UK market, with contracts signed worth £4.2 billion.

(Source: Arvato UK & Ireland)

Mortgage sales for the UK decreased by £1.8 billion in July, down 10.8% on the previous month, according to Equifax Touchstone analysis of the intermediary marketplace.

Buy-to-let figures were resistant to the general decline, down by just 0.2% (£3.9 million) to £2.6 billion, while residential sales dropped by 12.8% (£1.8 billion) to £12.2 billion. Overall, mortgage sales for the month totalled £14.8 billion, up 10.8% year-on-year.

All regions across the UK suffered a significant fall in sales. Scotland suffered the biggest slump of 19.8%, followed closely by Northern Ireland (-18.5%), and the South East (-15.4%).

John Driscoll, Director at Equifax Touchstone, said: “These figures show how volatile the mortgage market can be. Sales have tumbled in July, with every region suffering substantial declines as buyers are put off by continuing political and economic uncertainty, coupled with the worrying gap between inflation and wage growth. These circumstances may be further compounded by the potential for an interest rate hike as early as September, driven by continued pressure on the pound.

“On a more optimistic note, mortgage sales are up over 10% year-on-year and a dip in sales for July is not uncommon; however, as the summer period comes to a close, the long-term outlook for the market still remains very unclear.”

The data from Equifax Touchstone, which covers the majority of the intermediated lending market, shows that the average value of a residential mortgage in July was £199,286 (2016: £188,115) and £159,721 for buy-to-let (2016: £158,415).

Equifax Touchstone utilises intermediary and customer profiling tools to provide financial services providers with a detailed understanding of their marketplace and client base.

(Source: Equifax)

Data released in Creditsafe’s Credit Worthiness Premier League, has revealed that Chelsea is set to be relegated from the 2017 Premier League – if the final standings were based on company credit ratings.

Despite having a turnover of over £335million, the football club finds itself with the third worst credit score in the Premier League, with a poor debt/asset ratio and an average of paying invoices 28 days beyond the agreed payment terms, contributing to the club’s low credit rating (45).

The credit scores have been calculated using Creditsafe’s rating model. It combines financial variables including trade payment information, financial ratios, industry sector analysis and director history to assess the risk of insolvency. The algorithm then provides a rating between 0-100 – the higher rating, the better the score.

The teams joining the 2016/17 Premier League champions in the relegation zone are Premier League new boys Newcastle United and Brighton Hove Albion, who have a credit rating of 27 and 21 respectfully.

At the other end of the table, Manchester City (96) is crowned champions just ahead of Leicester City (93), who were the champions of last year’s Credit Worthiness Premier League, with the same credit score. Manchester City who finished 6^th in last year’s table with a score of 89, has taken the title this year while enjoying a second successive year of profit and a strong debt/asset ratio which has helped its credit score increase.

Rachel Mainwaring, Operations Director at Creditsafe UK said: “Unfortunately the success of Chelsea last season has not been reflected in its position in our alternative Premier League, as they slip in to the relegation zone, down from 13^th in last year’s table.

“As we have seen through the release of clubs’ financial reports and the transfer fees being paid this summer, football clubs are now dealing in extremely large sums of money. With this being a trend set to continue, having a credible credit record will enable Premier League clubs to demonstrate solvency, secure funding and deliver success to the fans.”