SOLENT LEP 2017 ANNUAL CONFERENCE BUILDING BRIGHTER FUTURES TOGETHER.
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Why does the UK need a carrier? The Fact that the UK is an island nation affects the livelihood of every single person living in Britain. And despite all the advances in technology and air travel, 95 per cent of Britain’s economic activity depends on the oceans.
Why does the UK need a carrier? ‘To question why the UK needs an aircraft carrier is to ignore the realities of being a significant player on the global stage with peacetime, wartime and humanitarian responsibilities’. Captain Simon Petitt former Senior Naval Officer of HMS Queen Elizabeth
QEC – Queen Elizabeth Class With a lifespan of 50 years, HMS Queen Elizabeth and HMS Prince of Wales will continue to have an influence around the World as they safeguard the UK’s interests well into the future.
Context – 283m, 65000 tonnes Queen Elizabeth Class (UK) 65,000 tonnes Invincible Class (UK) 20,000 tonnes Charles de Gaulle (Fr) 45,000 tonnes Nimitz Class (USA) 90,000 tonnes
QEC Carrier Aircraft ▪All weather day/night operating capability Merlin Mk2 F35-B Lightning II Crowsnest Lynx Mk2 Chinook Apache
Preparations for QEC arrival
Preparations for QEC arrival
Preparations for QEC Arrival 3 ▪ 3.5 million metres of dredging 3 ▪ 4,000 metres of concrete demolished ▪ 3,300 tonnes of new steelwork 3 ▪ 2,500 metres of new reinforced concrete ▪ 14 new harbour navigation aids ▪ 1.8km of new cables installed – double the length of The Mall in London
16 QEC Centre of Specialisation (COS)
Cats, Brows, Navaids
Socio economic context ▪ 13,000 full-time employees – 77% live in local area ▪ 4.1% of all full-time employees in Solent Local Enterprise Partnership area ▪ 7% of all manufacturing in area ▪ Every £1m generated by Base stimulates £750k nearby
Socio economic context ▪ Every 100 full-time employees jobs results in 66 additional jobs elsewhere ▪ Net household expenditure of all base employees of £181m pa. ▪ Service personnel net household expenditure £2m locally ▪ Potentially additional 2,000 RN locally by 2020
Thank you.
Growth Opportunities in the Port of Southampton
Big success story • The UK’s biggest export port – £40bn manufactured goods exported each year – Over 90% outside the EU – Critical mass and location real advantage • The UK’s most efficient container port • Northern Europe’s biggest cruise port – Total over 5 million passengers a year • Port plays central role in UK industry supply chain – And we are rapidly running out of space……
Masterplan 2009 What we believed in 2009: 2005 2020 2030 Cruise pax (000) 702 1,498 1,917 Containers (TEU 000) 1,382 2,694 4,204 Dry Bulks (000 tonnes) 1,357 1,786 2,166 Cars (000) 724 702 844 % Containers departing by 25% increasing 40% train
Masterplan 2016 Overlay current performance on 2009 predictions: 2005 2020 2030 2016 Cruise (000 pax) 702 1,498 1,917 1,983 Containers (TEU 000) 1,382 2,694 4,204 1,943 Dry Bulks (000 tonnes) 1,357 1,786 2,166 1,653 Cars (000) 724 702 844 901 % containers departing by 25% increasing 40% 40% train
How do we meet demand? • Primarily a question of space – Removal of non-‐port related activities – Relocate peripheral activities where possible • £100m on Marchwood Estate – Build up -‐ create ten acres from two • Creates other challenges • 7 car parks in ten years – 30,000 spaces • Running out of options on current footprint
Explore long term options
Q&A
BREXIT -‐ OPPORTUNITIES AND CHALLENGES FOR THE SOLENT ECONOMY Panellists: Rod Bransgrove, The Ageas Bowl Stewart Dunn, Hampshire Chamber of Commerce Graham Galbraith, University of Portsmouth Gary Jeffries, Solent LEP Cllr Keith Mans, Hampshire County Council Hazel Warwick, Business South Alastair Welch, Port of Southampton
BRIAN JOHNSON SOLENT LEP BUSINESS DIRECTOR
01 Solent LEP: SME Support • £7.5m invested in SME businesses • 100 existing businesses funded • 70 new businesses started up “Type a• quote here.” 1,200 jobs created / safeguarded • £30m additional investment leveraged into supported projects • Solent Growth Hub established –Johnny Appleseed www.solentlep.org.uk
02 The Solent Growth Fund • Solent Growth Fund • £5m available across the total fund • Available for high-‐growth SMEs, new start-‐ups with high-‐growth potential and SMEs experiencing challenging trading conditions • Available to support businesses operating in: Marine and Maritime, Advanced Manufacturing (including photonics and advanced materials), Aerospace, Defence, Life Sciences and Healthcare, Digital Technologies, Digital Creative Industries, Oil and Gas, Information Economy, Construction and Clean / Green Technology • Can provide up to 20% of total project costs for high-‐growth SMEs • Can provide up to 40% of total project cost for new-‐start ups and SMEs experiencing challenging trading conditions • Grant, Loan, Forward Funding or Equity Investments Available • First deadline: 3rd March 2017 “Type a quote here.” • Solent Growth Fund: Small Business Programme • £1.8m available • £10,000-‐£75,000 available for individual projects • Revenue and Capital funding available • Ambition to support at least 60 businesses, including 30 new start-‐ups • Solent Growth Fund: Capital Investment Fund • £3.2m available • £80,000-‐£500,000 –Johnny Appleseed available for individual projects • Only Capital funding available • Ambition to support at least 20 businesses • Support available • Solent LEP Workshops: Wednesday 1st March 2017 and Thursday 6th April 2017 • Solent Growth Hub: www.solentlep.org.uk T: 01329 820898 E: info@solentgrowthhub.co.uk W: www.solentgrowthhub.co.uk
03 Get in Touch Solent LEP SME Ambassador “Type a quote here.” brian.johnson@solentlep.org.uk –Johnny Appleseed www.solentlep.org.uk
Finance for Growth February 2017
Markets that Support Growth Private Equity Funding requirement £1bn Venture Capital £150m £1m £500k Seed Capital £100k Business Angels £50k Friends Family Concept & Start - Up Early Stage Expansion Consolidation & further Diversification of investors, M&A and seed stage capital raising International Expansion Strategic consideration 40
Supporting the Solent Economy Main Market ELITE 10 Companies 2 Companies AIM 1000 Companies to Inspire Britain 8 Companies 30 Companies Source: London Stock Exchange data, January 2017 41
Supporting the Solent Economy Main Market Admission Date 11-Nov-15 26-Jun-14 11-Jun-14 13-Nov-13 12-Nov-07 01-Jul-74 20-Dec-54 11-Mar-54 28-Apr-47 27-Mar-47 City Bournemouth Basingstoke Basingstoke Poole Basingstoke Romsey Wimborne Andover Christchurch Basingstoke Household Health Care General Pharma & Aerospace & Aerospace & Aerospace & Support Sector Goods & Leisure Goods Travel & Leisure Equipment & Retailers Biotech Defence Defence Defence Services Construction Services Current Market 893 1,675 100 4,796 1,058 478 2,340 30 3,451 618 cap (£m) AIM Admission Date 29-Mar-16 18-Dec-13 24-Dec-10 14-May-10 14-May-10 26-Oct-04 08-Nov-01 20-Feb-98 City Waterlooville Bournemouth Romsey Southampton Southampton Southampton Chichester Southampton Real Estate Household Health Care Financial Alternative Alternative Pharma & Support Sector Investment & Goods & Home Equipment & Services Energy Energy Biotech Services Services Construction Services Current Market 74 32 3 34 34 15 11 20 cap (£m) Source: London Stock Exchange data, January 2017 42
Benefits of Listing in London 43 5
AIM - £100 billion raised since launch Profile of AIM Companies Admissions to AIM – 1995 to 2016 600 982 companies*, 199 520 aggregate value of £80bn (173 Int’l 462 450 147 companies) No. of Admissions 138 355 UK Int'l 113 106 104 300 277 284 71 52 177 160 162 142 150 121 114 118 20 107 102 102 90 99 7 75 73 61 64 36 £0 - 2 m £5 - 10m £25 - 50m £100 - 250m £500 - 1bn 0 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 Fundraisings on AIM – 1995 to 2016 Industries* Represented – by Number of Companies 18 Technology Oil & Gas 120 100 Since 1995 over £99.9bn raised in total (£58bn 14 through further issues) Further Money Raised (£bn) Basic Materials New 149 Financials 173 9 5 Utilities Telecommunications 13 13 Industrials 159 Consumer Services '- 104 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 Health Care 90 Consumer Goods *ICB industry classification 61 Source: LSE statistics, 31st December 2016 *25 companies either suspended or undetermined value 44
ELITE – Supporting Growth Companies ELITE prepares companies for the next stage of by offering enterprises improved access to sophisticated skill-sets, networks and a diversified capital pool. 460+ € 39 bn COMPANIES AGGREGATE REVENUE 25 170,000 COUNTRIES EMPLOYEES 250+ IINVESTORS & ADVISORS ELITE Company Transactions ELITE is dedicated to ambitious companies to share best practices and enhance long-term growth opportunities also 6 45 21 120 through the understanding of financial markets. PE deals Bond AIM Listed M&A / JV issuances ELITE Companies deals 45
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CAROLINE DINENAGE M P F O R G O S P O R T & PA R L I A M E N TA R Y U N D E R - S E C R E TA R Y O F S TAT E F O R W O M E N , E Q U A L I T I E S A N D E A R LY Y E A R S
GET IN TOUCH! Web: www.solentlep.org.uk Email: info@solentlep.org.uk Phone: 02392 688924 Twitter: @solentlep LinkedIn: Solent Local Enterprise Partnership
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