Generating more income for your School

One of the hot topics highlighted in the general election has been the issue of school funding.

According to many in the profession, funding has become so critical that almost 3,000 head teachers across 14 counties in the UK wrote to parents outlining the current financial difficulties that all schools are now facing so that they could raise the issue with prospective parliamentary candidates.

Indeed, it would seem the issue is undeniably significant, with £3bn having been withdrawn from the schools’ budget in England at a time when pupil numbers are increasing dramatically; in real terms funding per pupil is being reduced by almost 8%. Schools are also finding it very difficult to recruit teachers in specialist subjects such as Maths, English, Science and Computer Science, as many teachers are leaving the profession as a result of working under too much pressure. According to the Independent newspaper, 10,000 teachers left between 2010 and 2015.

To help schools at this difficult time, Sussex-based chartered accountants, tax and business advisers, MHA Carpenter Box, has produced a list of ‘5 Ways to Generate More Income for your Academy’ which is relevant to all schools. The list covers Grant Funding through the Education and Skills Funding Agency, internal fundraising ideas involving the school’s families and friends and stakeholders in the school, and fundraising events such as quiz nights, pet shows or even a murder mystery evening.

MHA Carpenter Box also encourages schools to forge better links with their local business community, allowing them to highlight a range of careers experiences. Schools could also benefit financially by identifying sponsorship opportunities for local businesses, such as sports playing kits, school achievement prizes or a themed activity week in school.

Last but not least, schools can benefit from crowdfunding which has become an increasingly prominent source of alternative funding in the commercial world. There are many crowdfunding platforms that are worth investigating such as Kickstarter, Crowdfunder and GoFundMe.

Robin Evans, Departmental Director, Assurance & Advisory Group at MHA Carpenter Box, commented: “We already support schools and academies in a number of ways to increase their income and many of the ideas above do not only create the opportunity to raise funds, but also give pupils a chance to apply their numeracy and literacy skills when getting involved in campaigns! We’re happy to help so get in touch if you want to talk any initiatives through.”

Further details can be found at the following link: http://www.carpenterbox.com/2017/5-ways-generate-income-academy/

To help academy business managers and finance trustees to meet their regulatory compliance obligations and prepare for upcoming challenges, MHA Carpenter Box will be holding a free seminar at their offices in Worthing on 7 July 2017. For full details and to register for the event, please refer to the following link: http://www.carpenterbox.com/academies-seminar/   

Don’t be held to ransom by your IT security

It is rare that IT news hits the headlines, but you can’t have missed the news about the Ransomware attacks that happened across the globe at the end of last week. The attack, which exploited a flaw in Microsoft software, led to cyber-attacks on 200,000 computers across the globe. Victims of the attack included 48 NHS Trusts in England as well as Germany’s rail network Deutcsche Bahn and the global FedEx network. The spread was limited in part by 22-year-old Marcus Hutchins, a researcher who ended up being an accidental hero as his tracking the spread of the virus helped to prevent it. There are concerns that systems remain vulnerable, however, and it’s important to keep this type of security top of mind when managing IT.

What is ransomware?

Ransonware is the name for a specific attack which prevents access to files and demands a payment – essentially a ransom – for their return. Often the demands start small and if they are ignored, increase over time or threaten the destruction or sharing of valuable or sensitive files.

How can you prevent attacks?

The extent of the spread of this attack demonstrates that you can’t entirely prevent attacks. A determined hacker will at some point find a loophole in security and exploit it. However, there are measures to limit the likelihood of an attack and the impact if it does occur.

An audit of current security precautions is the first place to start. This includes not only looking at whether firewalls and virus trackers are up to date and effective, but also looking at practices that may be making a network vulnerable. This includes considering how data is stored and shared across an organisation. In many cases, staff training is as important as the technology.

Incorporate cyber-attacks into your disaster recovery strategy

This latest threat may have been stopped for the most part, but in time, it is likely that another threat will arise from so-called “black hat” hackers. This is why it’s important that alongside protective measures to prevent an attack, to also prepare for the worst. A disaster recovery plan should include details of how to prevent the spread across the network, backup storage and data encryption.

JSPC Computer Services track the trends in cyber security to help clients protect themselves. Not all of them hit the headlines as this high profile ransomware attack has done because often they can be stopped before they do too much damage. To avoid becoming a victim of ransomware or other malware, contact JSPC Computer Services a call to audit your current set up and advise how you can protect yourself.

For more information on JSPC Computer Services visit www.jspc.co.uk or call 01903 767 122

Worthing Homes Board Member Recruitment - June 2017

Board Member

Salary £3,066 per annum

Worthing Homes is a housing association with 3,500 homes in the Sussex coastal area. The majority of our homes are for social rent but we also provide affordable and intermediate rented housing; shared ownership and homes for outright sale. We have ambitions to increase the provision of homes locally and have the resources to be able to provide an additional 500 homes over the next 5 years. We also have commitments to deliver an excellent customer experience, increase the use of IT to access our services, and to invest in the local community. 

We are seeking people to join our Board as non-executive directors and are particularly interested in people who have a background in one or more of the following:

• Property development and maintenance
• Finance, particularly investment and appraisal;
• General business and commercial acumen;

This is an exciting opportunity to make a real difference to the provision of housing and the communities that we serve on the South coast working closely with other board members, the Chief Executive, Senior Leadership Team and the staff of Worthing Homes to deliver our ambitious plans.  Our Board members should have a clear understanding of the housing policy and are truly aligned to the Worthing Homes’ vision and values. As a local community based organisation we do ask that all board members and staff live within an hour’s commute of Worthing.

We have recently developed a Fairness Strategy in partnership with our residents, staff and stakeholders. We are an inclusive organisation and value each individual’s unique contribution, irrespective of race, ethnic origin, religion, age, gender, disability, sexual orientation or social background. 

To find out more about us, visit our website www.worthing-homes.org.uk.

For an informal conversation about the role, please contact either Jackie Bligh, Chief Executive, on 01903 703 169 or e-mail jbligh@worthing-homes.org.uk or Catherine Taylor, Assistant Company Secretary on 01903 703 184 or email ctaylor@worthing-homes.org.uk.

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Mortgages for new business owners: What you need to know

Starting a business and buying a home; can start-up entrepreneurs have their cake and eat it too? Pandle's Lee Murphy offers crucial insight...

They are two of the biggest things you can do in life – but do buying a home and starting a business go hand-in-hand?

For many new business owners, the prospect of securing a mortgage fills them with dread. Judging by the number of client enquiries I receive many still fear that a freshly-formed business will, in the eyes of lenders’ underwriters, disqualify them from mortgage eligibility.

On the flip side, many would-be business owners are forced to prioritise, preferring to defer their career ambitions, to secure their family home first. Only returning to their business dreams, sometimes years, later.

But the anxiety around the implications of starting a business on your mortgage eligibility doesn’t need to be so thorny.

It’s getting easier to get a mortgage as an entrepreneur

It’s true that, historically, securing a home has been less straightforward for the self-employed than for PAYE employees. But, while in years gone by many lenders have shut up shop when approached by fledgling entrepreneurs, I have good news as most have now relaxed their rules.

More specifically, whilst lenders all used to operate different criteria when it comes to assessing mortgage applications, many have now standardised the way they judge affordability. And the pool of lenders and products available to business owners is growing all the time.

So, don’t worry – just like for your salaried friends, as long as your finances are fundamentally sound the chances are that you will get a mortgage.

How to navigate the mortgage application process if you’re a business owner

Many new business owners stress that mortgage lenders will require three years’ of good accounts against which to judge an application. Yet, whilst three years typically remains the period underwriters tend to look back on, the focus of their energies has changed.

Rather than dive in to your company accounts, most lenders now want to see your personal tax calculation. That means, just like PAYE employees, you need to show lenders proof of earnings after tax.

For employees that means sending over three years’ of end-of-year P60 forms and wage slips, but for self-employed people it means sending three copies of SA302 – the annual tax calculation breakdown available for download from your HMRC online account.

For business owners or prospective entrepreneurs for whom the required three years may span a mixture of both employment and self-employment, the SA302s can automatically bridge both categories.

Remember, your lender is not interested in the health of your business – as long as you can demonstrate a viable flow of cash – whether in dividends or salary – to your personal finances.

Plan your business finances

This doesn’t mean, however, that, when you want to buy a house you can embark on a new business with impunity.

Yes, there are fewer technical hurdles to securing a mortgage but you must nevertheless consider the impact of starting a busines on your underlying finances.

Going into business can come with significant set-up costs, like premises, staffing, and stock, and, at the start, earnings may be slow. These upfront costs can mean an enforced, if temporary, reduction in your own salary and this is something that would reduce your income and would show on the SA302 presented to mortgage lenders.

You want to avoid getting into a situation where you are forced to defend your business plan or attempt to justify first-year set-up costs as one-off as this could cause delays to the whole process.

And, whilst you could happily run your company at a loss in order to draw enough in salary to satisfy your underwriter, you must avoid gaming your company’s tax return just to play the system.

Think ahead, get advice

Although mortgage lenders these days are more inclined to look at self-starters, you have a responsibility to yourself to make the right decisions. Is it really the best idea to start a business and hitch your wagon to a mortgage at the same time?

Draw up a personal budget which is linked to your projected business income, and, considering that historic-low interest rates are bound to rise at some point, assess whether your business potential leaves you with scope to dig deeper into your pockets for increased future fees.

Above all, get a mortgage broker. Like accountants, they will be able to provide professional advice tailored to your specific information and they will have full view of all the products available in the marketplace.

If you think clearly and plan ahead there is no reason you can’t achieve a new listing at both Companies House and your own new house!

by Lee Murphy Lee Murphy is owner of accountancy software company Pandle.

Specialist manufacturer acquired in £62m MBO

A Surrey-based manufacturer and distributor of self-adhesive sign vinyl and print media has completed a £62m management buyout (MBO) backed by a private equity firm.

London-based Primary has purchased Metamark, which was established in 1992 and operates from a manufacturing facility in Lancaster and a sales and distribution base in Woking, from founder shareholders Mark Bateson and Mike Stuart.

The management team is led by chief executive Paul French and sales director Ian Simister. French and Simister have led the business for the last five years and in that time have presided over a doubling in revenues and profits. In the year ended 31 March 2017, Metamark had revenues of approximately £29m, with one third coming from export sales to 40 countries.

Matthew Enright joins Metamark as its chief finance officer.

French said: "We have some very exciting plans for Metamark. They will ensure that our growth continues on the upward trajectory we've established both in the UK and internationally.

"We have a planned programme of further investment in capital plant to strengthen our manufacturing and conversion and we'll be investing in people so we can strengthen our team and reinforce our international stature. We're taking our model to new markets too.

"Our technical leadership and service led ethics mean we can achieve scale in markets such as construction while growing opportunities in our established channels with new, product-led applications. In Primary we have an investment partner who shares our ambition and values."

The deal was led by Iain Wolstenholme, Alistair Armstrong, and Chris Hopwood at Primary. Metamark is Primary's fifth investment from the Primary IV Fund.

Santander and Yorkshire Bank provided senior debt finance for the deal and working capital facilities to help fund future growth. A KPMG Corporate Finance team, led by Alex Hartley, advised Primary on its investment.

The vendors were advised by CLB Coopers. 

Photo: Ian Simister (left) and Paul French (right)

Article by Insider Media

Bright future ahead for Worthing’s much-loved Brooklands Park

A much-loved pleasure park is set for an environmental makeover after Worthing Borough Council pushed on with plans for a long-awaited upgrade.

Following environmental concerns over the condition of the lake in Brooklands Pleasure Park, the local authority has agreed up to allocate up to £850,000 towards refurbishing the attraction.

This hope is by working with the community, the 45-acre park just off east Worthing seafront will be preserved for generations to come.

Councillor Diane Guest, Worthing Borough Council’s Executive Member for Environment, said:

“Brooklands Park holds a special place in the hearts not only only of the local community but tens of thousands of visitors who return here year after year.

“It really is a unique attraction and I’m confident that this significant investment is just the start of a bright new future for the area.

“I hope that by working with the community we can come up with a long-term solution that will benefit all of the users of the park, while enhancing the amazing natural habitat within it.”

Worthing Borough Council agreed to carry out work last year due to fears over the environmental impact of silt building up on the bottom of the eight-acre lake.

After inviting contractors to submit proposals for the work, senior councillors on Adur and Worthing Councils’ Joint Strategic Committee agreed on Tuesday (June 6, 2017) to allocate up to £850,000 towards the scheme.

The local authority will now push on with appointing a company to carry out the dredging of the lake.

The works will also see silt traps installed to prevent further buildup of silt; changes to the current approach of Teville Stream through Valley Gardens; and using the removed silt to create new islands and margins within the lake to encourage wildlife.

Once a contract has been awarded and relevant checks signed off, the refurbishment could start as early as this autumn.

Once complete, the local authority will then work with the community to create a management plan for the park with the aim of establishing a Friends of Brooklands Park group.