Equivalent is not always equal27-01-2021
With Brexit over and still in the midst of Covid-19, we have not yet seen the full implications of the free trade deal struck with the EU on the premise of ‘zero tariff and quota’. It goes without saying that the post Brexit custom rules with their reams of new forms and certificates have caused despair due to delays at the border despite reduced traffic due to the national lockdown. But, and it is a big ‘but’ which relates to services, the current EU trade deal favours goods for the simple reason the UK has a deficit in goods with the EU but there is no mention of services even though the UK has a surplus. The Chancellor, Rishi Sunak last week announced that the City should get ready for “Big Bang 2.0”. This reference by the Chancellor is his prelude to his vision of the de-regulation of the City. The Chancellor must be thinking about the original phase of de-regulation put in place by the Thatcher government. If the City can replicate the original Big Bang, London may be able to steal a march on Europe with all of its clunky rules. This will mean a divergence between the City and the EU which will prevent the UK from trading into the EU because it is the EU who decides whether or not the UK rules are equivalent to those in the EU. If I am right then we should have divergence sooner rather than later in order that the UK can find its own path whilst the EU is in a hiatus trying to consolidate its own position on financial services and not yet having the skill set to replicate London’s offering. I appreciate there is always going to be fall out to Paris, Frankfurt etc but in order for the City to remain the dominant force within Europe and the world, there is no time to waste. The UK has to ‘grab the bull by the horns’ within the current reviews on the ‘Independent Fintech Strategic Review’. The original Big Bang made the UK a rival for New York and Big Bang 2.0 needs to ensure that the UK stays the dominant force throughout Europe and the world even if there is divergence rather than through equivalence.
Ctrl Alt Delete16-12-2020
Last week the EU revealed new proposals to regulate big tech firms though the “Digital Services Act” (“DSA”). The DSA uses the guise of curbing dis-information and hate speech to leverage control over tech giants such as Amazon, Facebook, Google and Twitter but will this ever be a success? What is going to be interesting is to see how the new President elect, Joe Biden, will view the EU flexing its muscles over the US tech giants. Donald Trump frequently clashed with these tech giants, but he was a strong advocate that no foreign countries should control these US businesses, it was for the US to do and the US alone. There is no doubt that the DSA is intended as a worthy piece of legislation as according to Ursula von der Leyen (President of the EU Commission), the DSA intends to “rewrite the rule book in the digital rule books”. As without regulation, there is no protection for the consumer. When looking at the tech giants, will the cost of this regulation for example in the case of eBay and Amazon simply be passed on to the individual sellers using their site and so ultimately the consumer rather than the tech giants themselves? If this happens, then the DSA will not be getting to the root of the problem but instead just be another layer of administration that needs to be dealt with. The irradiation of dis-information and hate speech are laudable attributes in any society but this has to be balanced with the freedom of speech and the practicalities of having legislation which can be enforceable at all levels. The DSA aims to increase “platform monitoring” and incorporate “take down responsibilities” whilst ensuring that there is a “restriction on the collection of data” unless the data is made accessible to business users active in the same space. There will be a new concept of “gatekeepers” however gatekeepers, being the tech giants will be prevented from using data received for advertising services. It is also intended that there will be curbs to prevent pre-installation of tech giants installing their own application on hardware devices. An unintended consequence of the DSA could be that when the tech giants try to addresses the dis-information and hate speech, they create regional variations of their offerings in the same way that Google is available in Hong Kong, Taiwan and Macau but not in mainland China. It is not going to be possible for human intervention to review for example the 500 million tweets that are made every day. This can only be done by changing the algorithms and so instead of having diversity, Europe may find that the EU becomes more homogeneous in respect of big tech. Start-ups may also find it more difficult to raise funding through private equity within a more restrictive e-commerce environment. One thing that can be said for sure is that will the Silicon Valley giants will not easily give up their algorithms. Instead, you are more likely to find that regional variations offered within the EU are more inferior to those within the rest of the world just like not having Google in mainland China and so this could be the gradual eroding of European enterprises rather than a restart through ctrl alt delete.
Many changes over 15 years of success for Hawkins Hatton16-12-2020
Hawkins Hatton Marking 15 Years and Remaining Positive07-12-2020
This is a title I have used before as it is from that famous phrase, “to Jaw Jaw is always better to than to War War.” It is one of those enduring quotes that resonates over generations. The fact that talking and negotiating is better than war. I am sure most people will agree that the consequences of war and the devastation it causes are long lasting. Last week it was announced by Boris Johnson that, “the days of cutting the UK’s defence budget are over.” This may seem contrary to the phrase mentioned above but is definitely a welcome announcement during this year of Covid. At the very least this will be another factor that will help create long term growth in the UK economy. I am saying this because there will be at least £16 billion spent over the next 4 years. Not only will this money be spent on modernising the UK’s military, but there will be investments in new projects such as space and cyber. This transformation has a two-fold effect of not just enhancing the UK’s military capability but more importantly, if done correctly, will lead to more UK innovation. Innovation is an important part of the make-up and fabric of the UK’s DNA as a nation. It is through this cutting edge innovation where there is need to be the best, that you will get the trickled out effect of technology into the private sector and hopefully into everyday goods and services that the consumers will want to buy. A good example of this are the satellites which are used for sat-nav’s. After all, it is the consumer that is the beating heart of the UK economy and this may just be the shot in the arm that the UK economy needs. Space and Cyber are going to be the new grounds that need to be conquered rather than just a physical land grab. This announcement of military spending, with Brexit looming, is welcome on the basis that even if we fall short of the claim this spending will create 40,000 jobs, it has to be good news for a variety of industries such as UK aerospace and ship building. I say all of this because it has been 50 years since it could last be said that the UK were holding their own against the USA and the Soviet Union when it comes to the Space Race, but the sun has long set on those days so if this new start is not going to be squandered it could be a new dawn for the UK in so many different ways.
Making the UK more resilient12-11-2020
Medicom is a global brand based in Canada but with a worldwide footprint stretching into Europe and the UK. Medicom has always been committed to making the world safer and healthier by providing consistent, reliable protection through its brands and superior materials and manufacturing processes. Now with the worldwide pandemic of Covid-19 it has become more important to find partners who you can rely on. Medicom is moving into the UK to assist in the provision of medical equipment on a local basis to help the UK become more resilient in facing this current pandemic and any future pandemics which may come to fruition. As part of the move into the UK Medicom has decided to open the base of operation within Northampton in order to use this as a separate location to try and reach all parts of the UK. Medicom used Hawkins Hatton Corporate Lawyers to assist it when taking the lease of premises (112,750 sq ft) at Brackmills Industrial Estate in Northampton. Hugues Bourgeois, a director of Medicom said “We had a short window in which to finalise the deal though it was important to find a firm that could move at the pace we wanted to and ensuring that they covered off the commercial points in a manner which was not tied up in a legalistic wrapper. We found that firm when we instructed Hawkins Hatton” Colin Rodrigues, Corporate Partner of Hawkins Hatton Corporate Lawyers said “It is always hard to meet the expectations of new clients but at Hawkins Hatton client service is at the forefront of everything we do so to us it is always pleasing when we are able to assist clients with achieving their end goals which is in our legal DNA”
PDQ for PDX12-11-2020
PDX Logistics has for 26 years been synonymous for warehousing, distribution and logistics, as such, it was natural for Möbile to have targeted PDX Logistics as a natural fit for its expansion beyond the West Midlands, in order that Möbile can better serve its customers in the South of England. Möbile, throughout its history which dates back to the late 1970s has continued to expand its business, but it has maintained its ethos of “People.Powered.Logistics”. Matthew Marriott, managing director of Möbile, said “there is no wizardry involved in the formula of People.Powered.Logistics, it is just simply hard work and commitment and ensuring you do the right thing every day”. Möbile was assisted by Arran Jones of MDP Accountants who said “I have worked with both Matthew Marriott and Ian Jolly of Möbile and I have found them to be quite visionary in their sector.” Hawkins Hatton Corporate Lawyers also assisted Möbile by delivering what was a difficult transaction in a clear and concise way and avoiding the obstacles which could have beset the whole deal. Colin Rodrigues of Hawkins Hatton said that “Matthew Marriott and Ian Jolly’s sorcery with their ethos and its combination with PDX will transform Möbile into a national player in its sector in the post-Brexit years.”
A Gripping Deal for Pilers12-11-2020
Maun Industries Ltd has a long history dating back to 1944 and is the UK’s largest manufacturer of pilers and precision hand tools. It has just continued their innovation and secured its future growth for the long term through Tim Scholes. Tim Scholes, whose background has always been business, has continued his entrepreneurial streak by closing a gripping deal for Maun Industries. Tim has 35 years of project-based consulting experience, which he is going to bring to bear within Maun Industries. Tim was attracted by Maun Industries’ combination of specialist products and highly skilled workforce which he wants to help continue to develop by introducing new product ranges and customers through innovation, design and technology. Tim was assisted in this transaction by Pippa Hawkes of BSN Chartered Accountants, who helped Tim structure a deal which worked for all parties. Pippa said that “with Tim’s experience, Maun Industries is certain to grow and increase its global footprint beyond the 200 countries which it already services.” Hawkins Hatton Corporate Lawyers also assisted Tim by ensuring the deal was dealt with in both a timely manner and with a commercial outlook. Corporate partner, Colin Rodrigues said “knowing Tim and his capabilities, he will not only continue to nurture Maun Industries, but he will ensure that its evolution will be world beating to guarantee that Maun Industries is synonymous with quality worldwide.”
Legal Tie Up14-09-2020
Rik Pancholi of Pattersons Commercial Law, based in Ratby just outside Leicester, orchestrated the merger of his firm with Ashteds Solicitors who are also based in Leicester. Pattersons Commercial Law is renowned in the East Midlands for Corporate and Commercial legal expertise within sectors ranging from Accountancy, Financial Services and Retail to E-Commerce and Healthcare businesses to name but a few, Ashteds has maintained a strong reputation in Dispute Resolution and Corporate Insolvency lead by Ashwin Mody. Rik Pancholi (MD of Pattersons Commercial Law) commented that “I followed my instincts when looking to merge with Ashteds as I always wanted to find another firm which would be a perfect fit for Pattersons Commercial Law in order to further compliment the advice we offer to our clients. Ashteds were the perfect marriage partner and together we will be stronger in the depth and breadth of advice we are able to offer going forwards under the Pattersons brand.” Ashwin Mody (MD of Ashteds) said “I have been in the legal sector for over 25 years so you can say that I have seen many things in my career but like the old adage goes, doctors make bad patients so I decided when embarking on this merger, to instruct Hawkins Hatton Corporate Lawyers to deal with the sale as, having made the big decision to merge with Pattersons Commercial Law, I was content to leave the contractual negotiations with them.” Colin Rodrigues (Corporate Partner at Hawkins Hatton) said, “unlike most transactions where from time to time you find problems can escalate into deal-breakers, there was a real desire from both Pattersons Commercial Law and Ashteds to ensure that nothing should be a problem which could not be resolved and looking at the personalities and make up of both firms, I can genuinely say that the merger of these two firms is not a marriage of convenience but instead, the coming together of two reputable legal firms to create a formidable legal force within the East Midlands.”
We started the year coming off a high from a business point of view knowing that the 2019 election gave Boris his majority which would put an end to the uncertainty of Brexit on the basis that the political paralysis was now broken. Then came the talk of the Budget and the pre-tax planning about removal of ER (aka Entrepreneurs Relief) which would hit SME owners hard. The results of this speculation consumed many professionals, both accountants and lawyers alike and took over as the main driver for their clients. This concern did not prove unwarranted as the lifetime allowance for ER was reduced from £10m to £1m. This means that in a business sale in excess of £1m, the proceeds will be taxed at 20% and not 10%. This even made my speculations to the ER changes look too conservative and reminded me of a valuable lesson of always preparing for the unexpected. This is what those clients did in their pre-budget planning where they were able to do so. The detail of the changes to ER has been lost by the press in their budget commentary by the talk of emergency funding for the NHS, the ability to claim sick pay, business interruption loans, business rates being abolished for firms within leisure, hospitality and the retail sector and such like. But all of this is needed as you do not need to be an economist to know that the UK growth in 2020 will be severely curtailed as a result of the Coronavirus and will most likely be the slowest since 2009 as a result of the banking crisis. That brings me back to the point I always focus on which is productivity and how to do more with less. Businesses should learn and heed well the lessons taught from the Coronavirus, as businesses still need to function and deliver goods and services but with a contracting workforce so productivity improvements will have to be delivered if businesses are to survive and come through the shock of Coronavirus. It is at times like this that spark innovation as business has to “think out of the box” to deal with situations which it normally does not need to face maybe because a lot of businesses were within their own comfort zone. The message to businesses is to focus on the “bounce-back” and keep applying those productivity improvements and innovations in order to ensure that this decade can try and emulate some of the “Roaring Twenties” in the last century through the collaboration between the political elite and business to engender growth in order to prevent this decade from being another lost decade.
Marex Spectron completed another acquisition. This time it was for a London-based Tangent Trading Ltd (‘Tangent Trading’). Tangent Trading is a leading scrap metals trading firm which can trade its roots back to 1985. Tangent Trading specialises in non-ferrous scrap metals trading, with a focus on copper and aluminium markets. A long-term member of the London Metal Exchange, Tangent Trading has an international network of customers and suppliers across Asia, Europe and North America. Tangent Trading will continue under the leadership of Darren Leigh and Robert Borland, who join Marex Spectron’s global metals franchise, which boasts one of the most experienced teams and broadest product ranges across base, precious and ferrous metals worldwide. Ian Lowitt, Marex Spectron Chief Executive, commented: “The scrap metal market is a new and exciting direction for our business as we continue to invest in and grow our market-leading metals franchise. This acquisition is part of a strategy focusing on expanding our offerings and developing our business in sustainable commodity sectors. We believe the recycled metal markets are poised for growth as environmental sustainability becomes more important to clients. Given the scale of our global network and balance sheet, there are significant opportunities to further develop the Tangent Trading business – making it an excellent fit for Marex.” Darren Leigh, CEO of Tangent Trading added: “We are excited to join the Marex Spectron family. Not only will we have access to new technologies and services, we will be in a great position to further enhance, strengthen and expand our global offering.” Tangent Trading were assisted by Hawkins Hatton Corporate Lawyers who have worked with Tangent Trading for several years and have detailed knowledge of their background and operating model. Colin Rodrigues, Corporate Partner of HH said “as with any deal, time is the biggest enemy and there was a lot of ground to cover in a very short period of time, yet this was achieved as there was a true meeting of the minds between the parties”. David Price, Director of Price Pearson Accountants commented: “it has been a pleasure to work with Tangent Trading from the outset. Price Pearson have a long history with Tangent Trading and have a special affinity for them. We are delighted to help achieve the shareholders goals of continued growth and expansion through this acquisition by Marex Spectron.
Exit Brexit Growth12-02-2020
As we can finally see an end in sight to Brexit, we must now start to look to the future of the UK economy and try and influence the best way for the UK to deal with the challenges it will face in the post Brexit world. This leads me to an issue which I always express a strong opinion about as it is something I look to improve within my own firm on a continuing basis. In a word it is “productivity”. This has long been the curse of the UK economy as there are inefficiencies in what we do in the UK at work. Will the UK get back to the growth it achieved in the last decade? This was over 2% in real terms which can be translated down into the doubling of living standards every 35 years. But since the turn of the century, the UK growth figures have been well below this. Economists have mused and politicians have pondered over the reasons why productivity has been so low in the UK. Consensus has centred around the fact that the UK has been more focused on ensuring that (since the last financial crisis) those who are able and willing to seek employment gain employment and so the UK is close to full employment. Another conundrum is that, notwithstanding we have almost full employment within the UK, inflation is still at an all time low. In the post-Brexit world with the UK no longer being the magnet it once was for the younger mobile Europeans; the UK may not continue with this full employment so now the UK must concentrate all its efforts on productivity otherwise inevitably firms within the UK will have to raise prices to deal with demand. So, here is hoping that in a bid to achieve growth after Brexit we all play our part in lobbying those in the corridors of power so they do not just stop at HS2 Phase One but also agree to Phase Two. We need to encourage the government to give the green light to the building of the third runway at Heathrow and put more effort into improving the railways, rolling stock and the network of roads. Though in my view, what will make the most difference to productivity is 5G as this has the capability of improving connectivity and so hopefully be the long-awaited boost in the arm to UK plc which can make the real difference to the UK’s productivity. We can all do our part and we should ensure that businesses continue to invest in plant and training for future capability. But as with everything, big or small, it comes at a price. So, if there is an increase in taxes in the fourth coming budget, as some suspect, let’s hope that the extra revenue is put to good use to create this extra capacity for the UK’s post Brexit economy as a spring board for future growth.
No Toil for Tollgate05-02-2020
Tollgate Products Limited recently went through a management buyout under which the existing owners principally led by Edward Sneade (all of whom helped steer Tollgate over the last 45 years) made way for the existing management team to come in and continue to build on Tollgate’s success and experience. The management team led by Donna Nicholas, included Darron Shepherd, Phil Shieber and Angela Thompson, all of whom are long standing employees of Tollgate and have contributed to it being a leader in the UK within the cubicle hardware sector. This status has been achieved through Tollgates’ excellent service and flexibility whilst never compromising on its ability to be responsive and providing unrivalled customer support. Donna Nicholas said “as a team, Darron, Philip, Angela and myself, have always worked together to help deliver the results and customer service that people expect from Tollgate. Therefore, for us, it is the start of a new journey and something which we have long relished and are keen to ensure that we fulfil.” In order to facilitate Tollgate’s MBO, the management team enlisted the help of Hawkins Hatton Corporate Lawyers and HSBC UK Bank Plc. Stuart Smith, an experienced senior commercial manager within HSBC led the transaction on behalf of HSBC and said that “as with any MBO, it is all about the management team and their ability to work together as a team in order to put the needs of the business first. Having looked at Donna and the rest of her MBO team, I am confident in saying that they will continue to make Tollgate a success and ensure that it achieves the recognition that it deserves for its superior products and services.” Colin Rodrigues (Corporate Partner of Hawkins Hatton) said “I have long known that the name and reputation of Tollgate is that of a one-stop-shop for cubicle and architectural hardware. What I did not appreciate is how vast and diverse the business of Tollgate is and having worked with Donna and the rest of the MBO team, I can clearly see that their ambitions for the success of Tollgate will be realised and thereby create an even stronger and better business focused on its strong product range and loyal customer base.”
I recall writing an article last year headed “Jaw Jaw Not War War” based on that famous quote from Winston Churchill when talking about potential international trade wars. It is déjà vu that at the start of 2020, when looking back at the tension in 2019 that existed between the US and China over trade and how this started to affect the world economy as a whole, that we are back here again, but this time between the US and EU, whilst China and the US have started to resolve their trade differences by the “Phase One” deal. The trade war is now a lot closer to home as this month, the EU and the US are meeting in America to discuss a long list of trade issues which are causing tension between the two trading blocks. This has the possibility to become the biggest news story of 2020 if agreement cannot reached quickly as it effects products as esoteric as artisan cheese and single malt whiskey. The tension on the US side has started to build up due to the French digital service tax (“DST”). The DST is a 3% tax on the revenue of digital companies providing advertising services within France, which was given effect by President Macron in July 2019. To avoid a drastic outcome that would more likely effect the EU more than the US, it is hoped that Phil Hogan, the EU Trade Commissioner, will be able to get a reset on EU/US trade relations, but this will only be achieved if they can sort out the big issues that have caused the US to impose these tariffs. These tariffs have come about due to the unease felt by the US over aircraft subsidies that have been given by the Europeans to Airbus and the fact that now Airbus has just overtaken Boeing as the biggest aircraft manufacturer in the world by the number of planes sold. If progress cannot be achieved, as I said, it will be the EU that suffers more because of the very nature of the US economy being more insular and closed, as opposed to the EU which is more driven by export. As with everything over trade, any resolution will be politically driven, especially given the backdrop of the pending election in the US and Trump’s mantra of “America first”, so if anything, the EU may only in reality, achieve a mini deal, a similar deal to the one that Japan has recently done with the US and/or a deal similar to that with China the “Phase One” deal, though only time will tell.
A Towering Success25-11-2019
It was at the beginning of 2019 that HH launched its London venture. This was undertaken in the first instance by an inaugural dinner held in the Palace of Westminster at which some key contacts and clients were invited. Since the launch earlier this year, HH has continued to build on expanding its footprint within London. This has also been demonstrated by its recent event which was held in the Engine Room at Tower Bridge at which over 60 key contacts attended including some famous names such as Bobby Zamora and Mark Noble as well as the “tax timelord” Peter Rayney (Deputy President of the Chartered Institute of Taxation). HH has concentrated on developing its relationships with its London contacts by using the same tried and tested formula of good client service and transparent fees all of which is framed around commercial advice. HH has not taken its focus away from its Midlands roots and has continued to also expand its professional contacts and client base within the Midlands. All of this has meant that HH has been involved in a number of key transactions which have earned their place as being some of the major or prestigious transactions of that kind in that sector within the Midlands region. The three main areas HH continues to focus on are; M&A, Real Estate and Dispute Resolution. HH works well with other firms in respect of employment and private client work. HH has gained recognition for its areas of specialisms from clients, professional contacts, including accountants and financial institutions. HH is going to commemorate its 15-year anniversary next year, it has been a long journey in a short time and it has been a long ladder to climb. Colin Rodrigues, Corporate Partner said: “you have to keep moving forward as time does not standstill and in these ever-changing times, you are only as good as your last deal. In recent years, we have seen many people in firms come and go, as long as you stay true to your principles you are always able to move forward and innovate which is the key to being an effective law firm”. Harminder Sandhu, Managing Partner said: “in 15-years, I have seen so many changes, but change is always good as it keeps everybody on their toes. I still have a passion for law and as long as this continues, I will always strive to ensure that HH continues to achieve the goals and recognition that it deserves.”
Our team of experienced lawyers came together to form Hawkins Hatton in 2006 with the single ambition of creating a different type of practice. One that not only delivers the desired results for our clients, but puts the smooth running of their business and life at the forefront of everything we do. Our ethos is built on total personal support, regardless of whether we are reacting to a client crisis within a moment's notice or pro-actively advising on a complicated legal or commercial issue. By bringing clear thinking to legal complexities, and responding to often challenging deadlines we help take the pressure off our clients. Through a highly dedicated, hand-picked professional team, our clients have access to vast experience within the firm. Achieving the results you require, means understanding your business, and your personal aspirations. In short, working alongside you as your legal partner.
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Our team of experienced lawyers came together to form Hawkins Hatton in 2006 with the single ambition of creating a different type of practice. One that not only delivers the desired results for our clients, but puts the smooth running of their business and life at the forefront of everything we do.
Our ethos is built on total personal support, regardless of whether we are reacting to a client crisis within a moment's notice or pro-actively advising on a complicated legal or commercial issue.
By bringing clear thinking to legal complexities, and responding to often challenging deadlines we help take the pressure off our clients.
Through a highly dedicated, hand-picked professional team, our clients have access to vast experience within the firm. Achieving the results you require, means understanding your business, and your personal aspirations. In short, working alongside you as your legal partner.
Hawkins Hatton Corporate Lawyers Ltd.
Castle Court 2,
Tel: 01384 216 840
Fax: 01384 216 841
Dx: 12746 Dudley
Directions from the M5 Motorway
We are located 2 miles from Jct 2 on the M5. Exit roundabout signposted to Dudley. Continue along dual carriage way over several set of lights. At next island take first exit (signposted Dudley). Continue for 1/2 mile until the next island.
Take fourth exit (next to the Footman James building) and proceed on to the Castle Gate development. Continue to the next island and take the third exit (back on yourself). Take the first left hand turn into the Castle Gate 2 courtyard. Please use the intercom at the gate to request access (Hawkins Hatton is situated in Unit 3). Visitor parking is at the front of the building.
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Hawkins Hatton Corporate Lawyers Ltd.
16 High Holborn,