The life and less ordinary times of LDC

LDC’s South Region encompassing the Reading and Bristol offices has been a key part of LDC’s regional footprint for over 13 years, and in that time, has played a key role in developing LDC’s investment track record. The team have also had a busy 2011 with new investment activity surpassing £50million with investments in eConveyancer, A-Gas and EDM Group as well as committing a further £50million into the oil and gas sector investor Epi-V. They have also recently exited Airclaims, Ascend and Davies Group in which these companies achieved transformational growth throughout LDC’s investment.

This year’s Southerly Forecast publication, the seventh edition, focuses upon growth of businesses in any economic climate with case studies about LDC’s recent investments, exits and portfolio companies including Ascend, Airclaims, Leasedrive, EDM Group and Quantel. The publication also features an insightful interview on delivering growth with Ruby McGregor-Smith, CEO of the FTSE 250 Bristol-based company Mitie Group. It also reviews some of the technologies that are driving growth in the media sector..(ever heard of an Xbox or YouTube?) with Peel Hunt’s Patrick Yau, an area of focus for LDC.

A full copy of the newsletter can be downloaded here: Southerly Forecast-Winter 2011.

LDC has teamed up with the China Britain Business Council (‘CBBC’) to run a practical seminar for those businesses looking to trade in China.

This seminar has called upon the strength of CBBC, the overseas legal expertise from Eversheds, and LDC’s in-house team to create a forum which will provide interested businesses with a host of information on finance, tax and legal issues of expanding trade into China.  

CBBC’s history dates back to the early 1950s when British companies were among the first to trade with communist China. From this time to the present day the team has maintained a number of strong relationships in the region that has enabled British companies to take advantage of a new market.

British companies are increasingly aware of the huge business opportunities that China offers. A rapidly growing economy, increasing consumption and burgeoning wealth is creating demand for the full range of goods and services that the UK produces. However, taking advantage of these opportunities takes significant amounts of knowledge and resources. In a market where the opportunities are vast, but turning a profit can take time, money and commitment, finding the necessary expertise and resources for success can be one of the biggest challenges to business

Designed for business leaders, you will hear from seasoned experts on the practical solutions and potential pitfalls of expanding your business into China. Take a look at the attached brochure for more details and how to get involved.

If you would like more information about LDC’s activity in Asia take a look at www.ldc.co.uk/hongkong or read this article: http://www.ldclessordinary.com/adding-value/focus-on-asia

The Independent Group launch their new Group logo on the nose cone of the Virgin F1 race car at Monza this weekend.

Following a period of intense activity the Independent Group is now primed to move into the next stage of its commercial development. And it has been an interesting and at times difficult period for the group. 

The Independent Group now forms the headline Company for the recently integrated Ansa Group, Independent Inspections Ltd., Home & Comforts and Chem-Dry companies, all centrally located in Preston, Lancashire. 

The integration process whilst on-going meant developing a common ‘shared services’ platform that centrally coordinates the operational and most active elements of the business. All of this had to be achieved in a timely manner whilst ensuring the service to their client base was maintained. And here was a great example of when LDC’s Value Enhancement capability had a role to play in helping the business to manage the change – integration being a prime area of expertise for this team. 

It will now be interesting to see how the business performs over the coming months especially as there is expansion in key areas of the business that is supporting strong growth opportunities. This is particularly the case in the supply and fit of floor coverings such as carpet and laminates. 

Andrew Lloyd-Jones, the CEO of the Independent Group believes the enlarged business is now ‘well positioned’ in the market with a number of clearly defined strategic objectives for the business. 

It is however clear that a new approach under a single unifying Group brand will provide another catalyst for the business, employees and it is hoped the prospects for current and future customers!                   

Editor’s Notes:

The Integrated group offers consolidated Claims Management Outsourcing services via Expert Validation for all UK Insurers. Predominantly active in the flooring & furniture, fire & flood restoration and drainage arenas the Independent Group delivers cost effective end to end solutions across these perils covering repudiation, fraud detection, restoration, fulfilment or cash settlement within the shortest cycle time, backed up by innovative software demonstrating on a claim by claim basis the lowest cost solution.

By LDC London’s Managing Director, Daniel Sasaki. As Featured in Real Deals.

A company is only as good as the board that runs it. But what makes a great board, and what needs to be done to produce one?

When private equity firms invest in a business, there are operational and strategic switches that necessitate a change in the composition of the board to better reflect the company’s new direction. In assessing the board, the key elements are:

• Board structure and professionalism
• Ensuring the right mix of skills and talents
• Creating a sounding board for the executives
• Recruiting high-quality NECs/NEDs
• Appointing a LDC director to help ensure the agreed strategy stays on track

The starting point is to ensure that the corporate governance and board structures are set up to facilitate the company’s future expansion.  Many companies acquired by private equity houses began as family businesses where corporate and regulatory functions are often neglected and the same is true of entrepreneurial companies.

Once these structures are provided, it is vital to consider whether the existing board and senior management have the right mix of skills and experience to deliver the new strategy.  However LDC always takes a consensual approach and works closely with the CEO and FD

Continual reassessment of the board is essential, as companies’ aims and strategies can change.  Perhaps most important is creating an effectively balanced board of executives and NEDs.  It is vital to have a calibre of NEDs. A competitive advantage LDC has over is our broad and deep pool of NEDs – a result of the over 450 great management teams that we have backed in the past 30 years.

Private equity houses too often appoint one of their own directors to the board of an investee company but aside from providing a watchful eye over the investment and company strategy, they typically have a certain expertise in the sector in which the company operates. 

Boards also do not need to be the size of small armies or be full of generals. There is always a temptation to add too many apparently value-adding NEDs and specialists, with the result that arguments over strategy and operations can result in delays and even paralysis. 

Having completed all this work to produce a great board it’s important that it meets regularly. Boards, like muscles, atrophy unless they are used. To misquote an old Tammany Hall political maxim, boards should ‘meet early and meet often’. Only then will the rewards of putting together a great board be fully captured by a business.

By Phil Riley, Chief Executive, Orion Media

From the days of crackling, muffled long wave to the now crisp sound of digital stations, radio has always been an influential source of entertainment and information.

The days of a few national channels and just one local station in each part of the UK are long gone. We are spoilt for choice, with an abundance of channels to entertain us across AM, FM, DAB and online.

Latest figures from Radio Joint Audience Research Ltd (RAJAR) show that radio listening is at record levels, with almost 48 million adults tuning into their favourite radio stations every week – that’s more than 9 out of every 10 adults in the UK.

However, I would argue that despite all this variety and choice, local radio remains at the heart of the radio experience due to its importance to its region and community, with the evidence coming from the success we are having at Orion Media.

In and amongst all this national competition, our own stations are doing well, growing audiences at an annual rate of just under 6 per cent since acquisition in 2009. We are particularly pleased with the performance of our two big hitters, East Midlands regional Gem 106, and Birmingham-based brmb, both of which are posting some impressive recent listening figures. brmb has registered an extra 92,000 listeners in the last six months, and Gem106 has grown by 43 per cent since the beginning of last year. I have to say a big thank you to LDC for supporting all of our radio stations since 2009, including backing a significant recent marketing campaign for Gem, and one in the pipeline for brmb. 

So why are people choosing to tune into local radio stations like ours?

Music is of course a key ingredient, and our carefully researched and selected mix of oldies and current tracks is designed to appeal to a core audience in their thirties.

Functional elements like up-to-date local news, sport, travel and event coverage is also critical and a key USP. As a recent example, all of our stations played an important role in ensuring that people from across the region were kept fully informed of the riots that were taking place in and around Birmingham, West Bromwich and Nottingham. Our riots coverage meant all of our stations saw huge surges in their social media engagement, both online and via facebook & twitter, demonstrating the need for the stations to embrace a multi-media future.

The personality of our presenters is also hugely important, and we have worked hard over the past two years to recruit talented DJs across the Midlands, to augment the great presenters who were here when we arrived. Also important is our ability to let our listeners engage with the stations. Our listeners want to be entertained – and quite often we let them entertain each other with their unique take on life by letting them interact with us using phone, text, email or facebook response.

Finally, wrapping this into a cohesive approach, we believe our current success is due to our commitment to “belonging” – ensuring that our listeners know their local station belongs to the area it serves. That involves giving something back, and this year our stations collectively will have raised well over £500,000 for local charities due to the generosity of our listeners and clients.

It has been a fantastic few years for us, made possible by the continuing support from LDC, and with listeners up and ad revenue growing, the future for Orion Media looks as bright as the constellation it is named after.