"Nice Bowling Paul!"

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IN TERMS of well-executed business deals, the new Test arena for Glamorgan Cricket has to rank as an exemplar.

The £9.5m project is not only on budget it is also on time and will host its first game in May, but more importantly it will provide Wales with not only an excellent sporting venue but a new opportunity to market itself to the world – in particular India.
Cricket is that country’s national game and has been identified as a key destination for Welsh exports.

When England play Australia at the 17,000 venue in 2009 it will create great marketing opportunity for Cardiff and Wales, not only in Australia but also in India.
It is also hoped that the ground will host a Test match between England and India in 2011.
Under Glamorgan Cricket Club’s ambitious chairman Paul Russell, the stadium project has quickly moved from vision to reality.

Utility supplier Swalec recently announced a £1.5m naming rights deal on the ground which will now be known as the Swalec Stadium. The revenues that should be generated from having a Test-standard arena in Sophia Gardens will ensure the financial viability of the club.

While Mr Russell and his team have to be applauded for their business acumen, the success of the Glamorgan cricket side cannot be factored out of the equation.
It is hoped that the delivery of the new stadium and additional revenue generation will help to galvanise the team for the coming season and, in the longer term, financial success off the field will be matched on it.

Single Investment Pot

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IT has taken over a year to come to fruition, but a new approach to business support from the Welsh Assembly Government has to be welcomed.
However, the key factor in its success will be the competencies of the Assembly’s single point of contact customer relationship managers.
They have to be imaginative and have the confidence to say to businesses: “I hear what your are saying, but if you went for this support you would get a better return.”
The vast majority of businesses in Wales don’t need business support and have the ability to expand off their own balance sheets, or through private sector fundraising. The more companies that can do this then the better for the Welsh economy. It would also allow the Assembly Government to spend more in other areas like health and education.
However, for those seeking support what they want are simpler and quicker turnaround times in delivery.
The single investment approach in principle can provided this, but as always the proof of the pudding is in the eating.

Merlin, Excalibur and Stone

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Biotechnology serial entrepreneur Sir Chirs Evans is arguably one of Wales' most successful entrepreneurs.

I have always found him a journalistic dream: never short of great comments, sometimes controversial, but always colourful.

As reported yesterday his latest venture has seen his Merlin Biosciences, which operates three investment funds, acquiring Dr Jeremy Stone's Cardiff-based investment vehicle Merchant Ventures.

The acquisition/merger has seen the creation of Excalibur [loving the Celtic link guys!], which has ambitious plans to launch a number of broad medical sciences sector investment funds. The Welsh business partners are also keen to back "business winners" in Wales,although they say that such funding will need significant support from the indigenous investor community, as well as the public sector.

Both have the ability to tell compiling stories: with their new focus very much on backing companies which are already [or are close to] generating revenues and profits.

Sir Chris said that Excalibur's investment strategy would not follow the model of Merlin''s first two funds. which in many cases has seen it play the role of seed funder.

The economic climate for funding raising is not great at the moment, but despite the flight to cash and certain commodities there are still huge money reserves globally... and it's not all held by sovereign wealth funds!

Hopefully Excalibur will generate a regular deal flow of investment and expertise into high growth potential Welsh companies, which can only be good for Wales plc.

Northern Rock goes public

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So the Government says it had no alternative but to nationalise ailing bank Northern Rock.

But its temporary move will probably mean three years at the earliest before it can be sold off again to where it belongs - the private sector.

Much political capital is being made with the Tories who today heaped more pressure on Chancellor Alistair Darling, who will present his maiden Budget on March 12.

Perhaps the Government should have acted more swiftly in bringing Northern Rock in-house, but the demise of the Newcastle headquartered financial institution had nothing do with Mr Darling and his friends at the Treasury. Its problems stemmed from the US subprime mortgage fuelled credit crunch.

And with taxpayers' money involved it had to give the private sector the option of putting rescue bids together for the bank.

Unlike the models of mutuals, like the Principality here in Wales, Northern Rock was heavily reliant on the money markets to finance its mortgage book lending - with only a minority set against its saving deposits.

It effectively borrowed short to lend long and got its fingers seriously burnt when its lenders opted not to lend, as many turned to asssess their own exposure levels to the subprime debacle.

But what of Northern Rock shareholders, many who have contacted me over the last few days? While, what they will be paid will be the subject of an independent evaluation, it really is a case of don't hold your breath.

Those who bought during the glory days of Northern Rock's share price, will be hurt. However, if the Government and the Bank of England had not intervened shareholders faced the prospect of losing everything.

But more importantly, it is hoped that the UK economy can emerge relatively unscathed from a slowdown in the economy this year.

If so the Government's [and our] £100bn exposure in guarantees and emergency lending to Northern Rock should be repaid overtime with interest.

And even if default levels on mortgages increase, the Government will be able to fall back on repossessed properties for collateral... although it is hoped that such instances are the exception rather than the rule

Northern Rock goes public

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So the Government says it had no alternative but to nationalise ailing bank Northern Rock.

But its temporary move will probably mean three years at the earliest before it can be sold off again to where to belongs - the private sector.

Much political capital is being made with the Tories today heaping more pressure on Chancellor Alistair Darling, who will present his maiden Budget on March 12.

Perhaps the Government should have acted more swiftly in bringing Northern Rock in-house, but the demise of the Newcastle headquartered financial institution had nothing do with Mr Darling and his friends at the Treasury. Its problems stemmed from the US subprime mortgage fuelled credit crunch.

And with taxpayers' money involved it had to give the private sector time and the option of putting rescue bids together for the bank.

Unlike the models of mutuals, like the Principality here in Wales, Northern Rock was heavily reliant on the money markets to finance its mortgage book - with only a minority set against its saving deposits.

It effectively borrowed short to lend long and got its fingers serious burnt when its lenders opted not to lend, as many turned to asssess their own exposure levels to the subprime debacle.

But what of Northern Rock shareholders, many of whom have contacted me over the last few days? While what they will be paid will be the subject of an independent evaluation, it really is a case of don't hold your breath.

Those who bought during the glory days of Northern Rock's share price, will be hurt. However, if the Government and the Bank of England had not intervened shareholders faced the prospect of losing everything.

But more importantly, it is hoped that the UK economy can emerge relatively unscathed from a slowdown in the economy this year.

If so the Government's [and our] £100bn exposure in guarantees and emergency lending to Northern Rock should be repaid overtime with interest.

And even if default levels on mortgages increase, the Government will be able to fall back of properties for collateral.

Mobiles, China & RSA

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You might have read online or in today's Western Mail about the decision to pull the plug on a mobile phone recycling operation in South Wales.

Well to cut a long story short the man behind the shelved project, Mike Bandeira, is blaming his decision on the Welsh Assembly Government

He circulated a letter he sent to First Minister Rhodri Morgan to all AMs in which he effectively lambasts Mr Morgan's administration and in particular the RSA team. He went on to describe its commercial acumen as "Third World."
From China today Mike has been back on the offensive with a fresh series of e-mails to AMs.

At time of writing I had counted four additonal e-mails, which I have been copied in on, which are all pretty scathing of the Assembly Government

One entitled the "Real Wales," had no text and just four attached images, which included a picture of myself

Oh dear! oh dear!

Property Matters

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PRAISE the chartered surveying Gods! At last a £20 a square foot deal for grade A office space in Cardiff has finally been struck.

And it was a nice touch when one of the first tenants at the latest speculative office scheme at Callaghan Square happened to be a firm of chartered surveyors! Now the MEPC/Rightacres development has a £22.50 a square foot deal firmly its sights, so come on Knight Frank, DTZ, Cooke & Arkwright, King Sturge, Fletcher Morgan and friends.

Taking the wider picture investor activity in the property market is weakening with improving yields denting capital values.
Economic growth is estimated to slow this year, although recession [two consecutive quarters of a falling GDP] is unlikely even when accounting for the fragility of the US economy.
However, it could be a tougher year for the property sector, which has not been helped by the ending of empty relief from this April.

There are still considerable levels of unoccupied stock in Wales, including that owned by the Assembly.The ending of relief will mean that most landlords, who would like nothing better than have fully let premises, will be penalised financially.

For speculative developers could it potentially jeopardise future projects, or possibly result in scaled down plans? Well time will tell.
However, the likelihood is that they will be looking to pay less for land and development sites

Wishing on a star

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My wish list for 2008:

More merging of local authority back office functions and at least a discussion about whether a country with a population of 3 million really needs 22 unitary authorities.

Greater collaboration between universities and further education establishments in Wales on the commercialisation of intellectual property.

To all businesses looking for growth capital, remember that the City of London in global terms is only down the road.

A continuation of the recent trend of Welsh companies floating on the London Stock Exchange.

Investment by the Assembly into
clean coal technology.

More young entrepreneurs driving wealth creation.

Cardiff International Airport securing a scheduled route to North America.

War declared on litter. Who is going to invest in Wales when they see our cities and towns blighted by rubbish?

HAPPY NEW YEAR

Friends, rounds and floats

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HAD a few pints after work in the centre of Cardiff last week with a few friends... well it would be rude not to.

Anyway, the conversation got around to business networking in Wales - perhaps we should stay in more!

Managing director of independent television venture, Boomerang, Huw Eurig Davies, gave an interesting insight into the recent flotation of his company on London's Alternative Investment Market.

He described the process as the hardest business experience he had gone through.

But what struck me was the support he said he recieved from the boss of another Welsh company, which floated a few months before Boomerang.

He explained how he had a few chats with chief executuive of Cardiff-based PR company, Freshwater, Steve Howell [pictured above] which earlier this week posted maiden full year results as an Aim listed company.

It was encouraging to hear at first hand an example of an entrepreneur willing to give time and valuable expertise to a fellow Welsh company.

Also present was my brother Mark, who is chief executive of a biotechnology company in Cardiff called Q-Chip.

Since establishing the business he has gone through several funding rounds, with the latest raising £2m.

He said he would also be more than willing to share his expereinces with companies in Wales looking to raise finance in the biotechnology space. Although I had to say at the stage the focus was very much on the next "round" at the bar.

This kind of informal business knowledge sharing has gone on for years, but in terms of flotations and signifcant funding raising outside of Wales, there are at last a growing number of business people who have not only done it, but are willing to share their experiences.

This can only be a good thing for Wales Plc

Bitter about litter!

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Rubbish, garbage, litter, call it what you like, but it bugs the hell out of me.

Walk down any street in Cardiff, and no doubt any city in the UK, and it wouldn't take long to come across it: discarded bottles, fish and chip papers, burger trays... you get the picture.

This green and pleasant land is fast becoming the cesspit of Europe. Steady on Sion, aren't you being a bit melodramatic here?

Well, perhaps a tad, but litter, or garbage! as Sir Terry Matthews likes to call it, is a growing problem in the UK.

I am fortune enough to be able to walk to work and the amount of rubbish I come across en route to the centre of Cardiff is incredible.

Why do people drop rubbish, surely it cannot be that difficult to hold onto until they come across a bin?

Civic pride, something which was often seen by other countries as a great British virtue, seems to be on the wane.

And it's no point just laying the blame at the door of local authorities, as it all comes down to responsible citizenship.

Sir Terry once described Wales as a "garbage dump" and he went on to tell me that companies would not invest in Wales if they came across garbage everywhere. The garbage is being dropped by locals, he added, so why would anyone want to invest here as they would be taking on "garbage employees?"

Click here to read his thoughts on the subject.

At a time when most regions in Europe are pretty much offering the same inducements to potential inward investors, it is the intangible factors which are becoming more important.

So let's not underestimate the damaging impact of litter on our streets. I for one would rather invest in a city where the streets were clean, as it says something positive about the mindset of its inhabitants.

So come on Wales let's reclaim the streets and kick litter into touch!