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Fast and Furious
Not satisfied with getting their thrills and speed from a 16gb hard drive, Olivine are sponsoring Harry Adams in his efforts to achieve a professional motorbike racing career.
The all new Olivine Racing has opened it's doors and you can get up to date performance information here
Acquisition Finance Awards 2011
We are delighted to have won the following recent awards:
ACQ Global 2011 Tax Advisory Firm of the Year for UK and Ireland
ACQ Global 2011 Corporate Tax Advisory Firm of the Year for UK and Ireland.
for more details on the awards please click here
Banks on course to meet Project Merlin Targets
The Bank of England has reported that the five biggest UK banks have increased lending to businesses as part of their obligations under the Project Merlin agreement.
The increase in the second quarter will see them on target to hit the agreed targets for lending. New loans to businesses were £53 billion, up by nearly £6 billion from the £47.3 billion lent to businesses in the first quarter.
The Project Merlin agreement means that the big five UK banks have to lend £190 billion to UK businesses in 2011.The agreement set out to provide a boost for the economic recovery in the UK.
In the second quarter lending to small and medium-sized businesses increased by 22 per cent to £20.5 billion. This means that they have reached 49 per cent of the target of £76 billion of lending to small and medium-sized businesses for the year.
Overall, the improvement in lending by the banks means that they are 53 per cent of the way towards their target of lending across the board under Project Merlin.
However, many business leaders believe that the figures are not an accurate representation of what is happening at ground level.
Whilst we have certainly seen an increase in the availability of funding on more generous term and multiples than the past 3 years or so, it still remains a difficult market. Strong relationships with banks and financial institutions combined with our own market knowledge are key to delivering successful funding solutions to business.
The Bank of England release can be found here
Swiss bank accounts agreement reached
UK and Switzerland reach agreement on treatment of Swiss bank accounts
On 24 August the UK government reached an agreement with Switzerland on measures to deal with undisclosed bank accounts held by UK residents.
The full text will not be published until it is formally signed, but the key details are:
UK residents who declare income from Swiss bank accounts to HMRC are unaffected.
UK residents with undisclosed funds in Switzerland will not have their details passed to HMRC but they will be subject to two tax charges from 2013, which will be deducted by the Swiss banks. The two charges are:
• a one-off 'catch up' charge of between 19% and 34% of the balance in the account, to settle any outstanding income tax, CGT, IHT or VAT liabilities in relation to the funds in the account;
• an annual withholding of 48% on interest, 40% on dividend income and 27% on capital gains, intended to replace the normal assessment to UK tax.
Small business can raise up to £4.4m without a prospectus
HM Revenue & Customs has adopted a new €5m (£4.4m) limit proposed by the European Commission, up from €2.5m, a year early. Companies will also be able to target a larger pool of investors – 150, up from 100. The new rules are expected to save small companies £12m a year.
Green Investment Bank
The government recently set out more detail on its plans for a Green Investment Bank, an initiative announced last year which aims to transition the UK to a green economy.
It is always a tricky one with government sponsored investment as it can skew the market and deter private equity from entering the arena - additionally, the target returns can be less than that which would otherwise be commercially viable. However, having said that investment in the UK at the present time can only be welcomed.
Full details are contained here: further details can be found here
Business Growth Fund
Work to set up the BGF began in October 2010 through a Working Group with membership from all the banks led by HSBC. The BGF became operational in April 2011.
The Business Growth Fund (BGF) will operate like a traditional growth capital fund in many respects, initially operating from three offices (in Birmingham, Edinburgh and London) and with nearly 30 staff and a significant pool of capital – reckoned to be as much as £2.5 billion (€2.9 billion). It says it will take equity stakes in "established UK businesses" with turnover between £10 million and £100 million (€11.6 to €116 million), and each investment will be between £2 million and £10 million (€2.3 to €11.6 million). The fund will take a seat on the board of its portfolio companies, and is focused on high growth sectors such as renewable energy and cleantech, healthcare and life sciences, high-tech manufacturing, software and electronics. Like other growth capital funds, it will be a long term investor offering financial, strategic and operational support – but with more flexibility to hold stakes beyond the life cycle of a ten year fund, because it will be investing from its own balance sheet. details of the investment criteria can be found here
More awards 2011
Just been notified of a couple more awards!
DealMakers Global Award Winner 2011
InterContinental Finance Magazine Global Award Winner 2011
marketinvoice.com
Have just been seeking for some short term finance for a start up recruitment business and came across this option which looks interesting - we're not promoting them and have not dealt with them in the past but it looks interesting for some short term funding or indeed possibly longer term...
The link to the website is here
Most Trusted Tax Adviser 2009 - Acquisition Finance Global Awards
Olivine is delighted to have won Most Trusted Tax Adviser of the Year – UK, further recognition of the high quality of advice and service provided by the firm.
Commenting, Vanessa Rush says: "We are delighted to have been awarded Most Trusted Tax Adviser of the Year. This award is testament to the growing strength of Olivine. The aware reinforces the quality and style of work we have undertaken over the past 5 years.”
VAT - exchange of timeshare rights
A VAT case has just been decided at the European Court of Justice (3 September 2009) concerning the place of supply of membership, subscription and other fees for the exchange of timeshare rights within the EU which decided the services of organisers are sufficiently closely related to the property concerned to be subject to VAT where the timeshare property is found. This case relates to membership schemes but could be of wider application.
This could be a blessing and a curse:
• if the membership organisation is based in the UK but the property is elsewhere UK VAT should not be charged on the fees but UK input VAT is recoverable, and
• the membership organisation may be required to be registered for sales tax in the EU member state in which the timeshare property is located. This imposes an administrative burden and if missed could result in penalties. It could benefit the membership as they may be able to reclaim the VAT charged by the member.
At present some organisations are suffering double taxation i.e. VAT in the UK and other EU member states.
Non compliance with the rules could result in penalties.
CGT - Emergency Budget
In the budget on the 22nd June we will be watching for substantial relieves for both entrepreneurs as well as employee shore ownership.
Passive share holders in small companies and buy to let investors will also potentially suffer.
Also, will there be any relief for inflationary gains - it seems sensible to reintroduce these relieves.
The final question is the timing of these changes with an immediate rate rise is likely.
Enterprise Capital Funds (ECFs)
Enterprise Capital Funds (ECFs) address a market weakness in the provision of equity finance to SMEs by using Government funding alongside private sector investment to establish funds that operate within the ‘equity gap’. An equity gap arises where businesses with viable investment propositions are unable to attract investment from informal investors or venture capitalists. In bridging this gap, ECFs aim to alleviate what would otherwise present a significant barrier to enterprise and to productivity growth. Nine such funds have been launched since 2006.
Enterprise Capital funds replace previous products such as the Regional Venture Capital Funds.
We have had extensive experience dealing with the regional venture capital funds. If you would like to speak to us concerning ECFs or toher funding requirements then please speak to Stuart Cumberland on 07841417713.
Wavetrend Holding Limited, a world leader in the deployment of track and trace solutions, secures USD $5 million in funding.
SURREY, UNITED KINGDOM – April 21, 2009) Wavetrend Holding Limited, a world leader in the deployment of track and trace solutions, announced today that it has secured USD $5 million in funding and completed a successful management buyout. Wavetrend remains a private company, now owned by its management team and new financial backers. The executive management team will continue to be led by Saleem Miyan, Wavetrend’s incumbent Chief Executive Officer.
Wavetrend’s new investors include established technology investors with a deep understanding of global business management, having successfully launched and grown businesses in diverse industries, including retail, construction and secure global logistics. Access to this business expertise provides Wavetrend with additional resource to assist in the strategic extension of its solutions offerings into new vertical markets.
“This investment in Wavetrend is a validation of the quality and marketability of the solutions we offer. Wavetrend has established itself as a leading provider of solutions to monitor and track critical high-value assets, people and vehicles, and we are well-positioned to build on our record of success,” said Mr. Miyan.
The latest round of funding provides Wavetrend with the resources required to respond to its growing customer opportunities. Wavetrend’s commitment to intelligent and cost effective innovation has led to the development of a market leading product and solutions portfolio that allows the company to offer applications directly addressing its customer business
requirements. The company also has the advantage of an established track record in regions, such as the Middle East, and industries, such as secure logistics, oil and gas, automotive and construction, where active RFID is being increasingly deployed and where Wavetrend has an expanding customer base.
“At a time when the world is facing an incredibly difficult economic downturn and budgets are being tightly managed, Wavetrend, with its successful business model, growing roster of implementations and committed management team, represented an outstanding investment opportunity for the investor group,” said Francis Firmstone, a Director of Gulf Capital which led the investment round.
About Wavetrend:
Operationally headquartered in the United Kingdom and regional offices in United States, South Africa and Asia, Wavetrend is a world leader in the deployment of Active RFID solutions. Wavetrend technology enables enhanced management of people, assets, and logistics for improved business performance while optimizing customer return on investment and payback time. Through both its direct Professional Service teams and its global network of accredited solution and integration partners, Wavetrend delivers a wide selection of proven, superior-performing Active RFID products and solutions to customers around the world and supports a variety of industries including healthcare, construction, transport, logistics and automotive. For additional information, visit Wavetrend at www.wavetrend.net.
VAT on unpaid rent
Landlords are increasingly experiencing hardship due to slow payment or non payment of rent. That hardship will be worsened if, where VAT is chargeable on the rent, the VAT on unpaid rent is due to be paid across to HMR&C. The only remedy available to the landlord in this circumstance is VAT bad debt relief. However, this requires the landlord to wait for 6 months from the due date for payment of the rent before the VAT paid to HMR&C can be reclaimed from HMR&C. Landlords may be able to resolve this in either of the following ways:
• opting into the cash accounting scheme, with the result that VAT is only accounted for on payment, or
• by treating rent as a continuous supply, again with the result that VAT is only accounted for on payment.
Each option has advantages and disadvantages and eligibility requirements must also be considered. Advice specific to your circumstances should always be sought.
VAT on temporary staff costs
Plans to add VAT to the wages of temporary social care and charity workers, locum doctors and financial services staff will lead to a significant fall in the use of agency staff, according to a new study.
The Recruitment Employers Confederation has warned that the government has ‘grossly underestimated’ the costs involved.
The new VAT arrangements were announced in the Budget earlier this year and are set to come into effect in April 2009. Key findings reveal the impact will hit:
Health care sector: costs will soar as VAT is charged on the wages of locum doctors and specialist medical staff supplied through agencies.
Charities: one charity has estimated the cost at £1.6 million a year.
Social Housing: it is estimated that the cost to the sector could be £135 million.
Further education: the annual cost to English Colleges could be £20 million.
Financial services sector: the cost to investment banks is estimated at £50 million and in the retail banking sector over 25, 000 jobs are caught up in temporary staffing.
www.olivinepartners.com - New website
Olivine is delighted to launch its new website which reflects its individual, innovative and progressive nature.
The site will be updated regularly with news of deals and the comments from the Olivine team on current issues. The new site also sees the launch of the plog - the blog from the much-loved Olivine office dog, Pongo, giving a dogs eye view on the world around him.
CorporateUK magazine article - MBO
“The corporate finance adviser plays a pivotal role in an MBO transaction, essentially project managing the entire deal, sometimes right from its conception along the often bumpy road towards completion.” Click here to read the full article.
Olivine event - May 2008
Olivine will be hosting another event at Thompson's art gallery in Marylebone, treating over 100 clients and contacts to delicious canapés and refreshing drinks whilst surrounded sculptures being shown for the first time.
Ekay PLC – acquisition of communications agency WFCA
Ekay PLC reported an increase in its first-half pretax profit on higher revenue and said although trading has been more difficult in the first quarter of 2008, the pipeline of work suggests that the second quarter will show an improvement.
For the first half to end-Dec, Ekay said its pretax profit was 253,934 stg after an exceptional credit of 115,000 stg for legal fees, while sales improved 30.3 pct to 23.1 mln stg.
The advertising and marketing agency also said it has acquired full service marketing communications agency WFCA Integrated Ltd for 8.5 mln stg in cash and shares.
For the deal, it has raised 2.5 mln stg by placing 41.67 mln shares at 6 pence per share, and will pay 4 mln stg cash to WFCA as interim payment.
Owing, inter alia, to the size of the acquisition, which constitutes a reverse takeover under the AIM Rules for Companies, Ekay said it plans to raise it share capital to 2 mln stg from 1 mln stg.
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