Leasing World's CITY CHATTER ANNUAL 2013 - God bless leasing, and all who sail in her - Industrial Investment Group
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God bless
leasing, and all
who sail in her
Leasing World’s
CITY CHATTER ANNUAL 2013
(featuring ‘Old Moore’)
As published monthly in LeasingWorld magazine
FOREWORD from John Lutterloch (aka City Slicker)
mazingly, five years have passed since the first City Chatter column saw the
A murky City light of day. Jan Szmigin, owner and editor of Leasing World
magazine had asked me in 2008 to write a column about the City and its
leasing world.
It has enabled me to post my own views of current affairs and those things
affecting our business as well as relay some of the history of our great City.
This annual includes all of last year’s scribblings.
London is more popular now, both as a centre of the finance world and tourist
attraction, than at any time in my life.
The Olympics and our Royal ceremonies have contributed greatly to the latter.
2013 was a good year by many standards. The UK Leasing industry tops the tables
in Europe for new business levels. Car leasing and contract hire is back to its
previous heights and new players have entered the scene.
But, of course, like everything in life, it’s a cycle and there will be down turns
again and the same mistakes will be made.
We should be proud of our place in the UK financing cake where around 30
percent of all capital expenditure is financed by our members.
As I have commented several times our business has both suffered and benefited
from Government intervention, tax changes and accounting changes, but basically
it’s still ‘instalment credit’.
A veteran of all of this is, of course, is “Old Moore” who has his own story to tell
each month from his chair in Bow Wine Vaults, down a cobbled alley just off
Cheapside.
Best wishes to you all from Old Moore and your CC reporter.
John Lutterloch
Contents 2013 Sponsored by
Let the train take the strain 4
Taxed to the Hilt 5
Cock O’ the North 6
Confusion reigns 7
The Feel Good Factor 8
It’s always greener in the other field! 9
City Hopper 10
Another Year Over 11
ANNUAL 2013 CITY CHATTER CITYCHATTER Oh! What a Year That Was! were understandably cancelled but I spent time at the other two So there we have it – another year over and a time to reflect (so did the editor) and some pictures were included in the last on 2012. Leasing World edition. The City Chatter column is now in its 5th year of publication I have often attended what is known as the “blockers” party and I have been encouraged to continue the theme of my which in recent years has been organised by Shaun Carroll of scribblings to include historical facts about the City, comments Hitachi Capital, and attended by some 40 revellers. They were about our industry and, of course, the adventures of Old Moore. in great form when I left for the Doggett’s Coat and Badge pub One of my new year’s resolutions is to walk more and when I where another 200 people were in attendance. This gathering took a slightly different route to my office I was surprised to started it’s life as a casual drink on the Tattershall Castle bar find a couple of streets without yellow lines and just a few and restaurant ship near Charing Cross in 2009 and through the parked cars. I was in Throgmorton Avenue and wondered how hard work of ex-Anglo member Peter McDonnell, has gone on this could be? to great things including the raising of £4,500 for charities, Like many areas of the City, some streets and many of the and the foundation of what we now call the Association of buildings are owned by Livery companies – in this case the Leasing Professionals. Drapers and the Carpenters, both of which have existed for over Amazingly, I was still sober enough to attend the Daniel 600 years. I have been a guest at a number of the fabulous Stewart stockbroker’s event on that same day, and which is Livery Halls – Leathersellers’, Butchers’ and Goldsmiths’ come regarded by many as the best party in London. This year’s theme to mind. The Livery companies started as medieval trade guilds was the “The End of the World Party” with over 300 attending, and some 108 exist today with familiar trade names such as with live music from three tribute acts throughout the evening, Plaisterers’, Fishmongers’, Basketmakers’ etc. They play an and a ‘just for fun’ casino. Well done to all concerned in important part in the fabric and organisation of the City as well cheering us up at the end of a difficult year. as doing great works in education, charity etc., and as they often own the roads around their building, they are not available for public parking. Old Moore I took a quick look at my previous January editions and they Not to be outdone, Moore held his own form of celebration by all seem be saying the same thing – the weather is dreadful, the inviting a few honoured friends to Bow Wine Vaults. It was quite economy is in disarray and when can we expect things to get a noisy affair as it is a very popular meeting point for local back to normal? So not much change there, then. business folk, however Moore had ensured that he had a private Thankfully we were all cheered by our celebrations of “The space in the bar with a continuing flow of his favourite wines Golden Year” with the Royal Jubilee and what is generally and canapes. Knowing Moore of old, I was certain that he was regarded as the best Olympics ever. not paying the bill and I was soon introduced to his son-in-law, If we believe the Government, we are in a much better place Simon, who was a fairly new member of the family and also than many of our European counterparts. The levels of UK recently promoted to a senior banking position. “He seems like Capital Expenditure appear to be increasing again and this is a very nice young man,” I said to Moore. Moore looked suitably reflected in the latest FLA figures. pleased and responded, “Yes he is a very bright chap and going My own company had a good 4th quarter but that has more places. Of course I am helping by introducing him to a number to do with the hard work of my team in ensuring that year end of my important friends in the City. I have explained to him that deals completed on time than the number of deals on the table. the way to get their time is to take them out for a lavish lunch. ING’s withdrawal from the market has given a golden I have already got about six lined up in January alone so we opportunity to other funders who have been hoovering-up new should be able to make good use of his entertainment budget. broker relationships and the resultant new business volumes. By the way, I have got him to pick up the bill tonight so pretend The City’s leasing fraternity certainly enjoyed a lively you are somebody important, will you?” December with three separate informal Xmas functions Well Moore, thanks very much and a happy New Year to you ironically all arranged for December 6th. ING’s arrangements as well! www.leasingworld.co.uk DECEMBER 2013 3
CITY CHATTER ANNUAL 2013
Let the train take the strain industry veterans including, John Bennett, Ian Gell, and Jim
The City celebrated a major milestone last month with the 150th Edmunds, and was taken to task by Mr Bennett on a historical
anniversary of the London Underground system. The first point of order.
underground train journey took place in 1893 when a train I have occasionally reported on what I referred to as the world’s
powered by steam locomotive travelled 4 miles between oldest continuous sporting event, namely the Doggett’s Coat and
Paddington and Farringdon, and set down the first track in what Badge race, which dates back to 1743. My Scottish friend reminded
we know today as the Metropolitan line. By 1900 there were a me that the “Silver Arrow” dates back more than 100 years earlier.
number of independent train companies linking up London’s The Musselburgh Silver Arrow is reputed to be the oldest
commuter lines which then consolidated in 1908 to what is more sporting trophy in United Kingdom, and is competed for annually
or less the Tube network that we know today. On the 13th of by the Royal Company of Archers. It dates back to at least 1603
January this year, “Met Steam Locomotive” No. 1 which had been so I stand corrected by the knowledgeable Mr B.
fully reconditioned, took a lucky selection of passengers from Much of the conversation at that meeting was around the
Kensington Olympia to Moorgate to celebrate the event. changes to our industry such as the major names that have recently
As someone that has commuted to London for over 40 years, I pulled out, new entrants on the scene etc. However, the consensus
can recall with horror strap-hanging in packed trains and in was that we continue to play a valuable part of the UK’s financing
boiling temperatures. Thankfully, the trains of today have much community and although the players may change there are
improved as each line is upgraded and new rolling stock is significant opportunities for our industry.
introduced. The infrastructure development in the railways
around the Olympic stadium has also benefitted from the huge
investment that took place. Old Moore
Did you know: every Tube train travels 114,500 miles each year: With the seasonal parties behind us, Moore spent the early half
more than 1.1 billion Tube journeys are made each year: there are of the month “drying out” as he likes to call it. “The French have
426 escalators and 164 lifts with 23 escalators at Waterloo station the right idea,” he pontificated. “They take the period of Lent in
alone where 82 million passengers pass through each year. order to fast and cleanse their bodies, you know. I tried it once
It is also the 150th anniversary of the football league. Although and even went down to taste the waters of Lourdes. It was
records confirm that team matches were played from 1888 the rules disgusting and more likely to send you straight back on the bottle.
of the League were only finally established after a 4 year debate Anyway, I now try to take a couple of weeks off at the beginning
which concluded at a meeting in the Old Freemason’s Hall in of the year to give my liver a rest.”
London in 1893, and the first recorded match played under the His period of cleansing had clearly not lasted long as he was in
new rules was Wolverhampton Wanderers vs Aston Villa. Wolves full flow when I caught up with him in Bow Wine Vaults. He
also went on to win the FA Cup that year 1-0 against Everton. informed me that he had a nice surprise in store, and after a
Speaking of the past, I recently met with a number of our couple more bottles of his favourite tipple he ordered a taxi to
take us to Belgravia. For those not familiar with London,
Belgravia still retains a village like atmosphere even though it’s in
the heart of Kensington or as Moore describes it, “Just a stone’s
throw from Harrods.”
He had booked a table at Motcombs Restaurant in Motcomb
Street where we were enthusiastically greeted by the owner, Philip
Lawless. The restaurant has an excellent reputation and is often
visited by celebrities and sporting personalities, and Moore seemed
well known to a number of the regulars.
It turns out that Philip is also the owner of Bow Wine Vaults
and had asked Moore if he could meet the writer of the City
Chatter column, who mentions his other establishment so often.
We were duly entertained on a grand scale with Champagne and
a delicious lobster thermidor.
Like the wine vaults, the restaurant has a special and delightful
ambience enjoyed by many locals and visitors alike, and it was a
most enjoyable experience.
As the evening came to an end I waited with trepidation for
Moore’s usual trick of leaving me with the bill. Amazingly he took
out his credit card and settled with the head waiter, including a very
generous tip.
My face must have been a picture because after he’d tucked his
Coutts Classic Card away, he said consolingly, “Don’t look so
surprised, it will be your turn next – now where is the most
expensive place in London?”
4 DECEMBER 2013 www.leasingworld.co.uk
ANNUAL 2013 CITY CHATTER
Taxed to the Hilt Budget day. As usual he plays the card of the poor old
According to Wiki, Christopher Bullock wrote in his “Cobbler pensioner forgetting that his index-linked final fund and other
of Preston” (1716), “Tis impossible to be sure of anything but investments give him a comfortable life. “I don’t trust this
death and taxes!” Much later, in 1789, Benjamin Franklin who government any more than the rest,” he spouted. “I have
knew a thing or two about celebrity attribution, wrote, “The friends that live in Cyprus and they cannot believe that a large
only things certain in life are death and taxes,” and is now the portion of their savings have been stolen. What if they did that
one associated with the quote. Changes in the tax system came here?” So I reminded Moore that most of the rich people in
into place this month following the government’s Spring budget, the world are now moving to London to take advantage of our
and the headlines are once again full of “the rich getting richer generous tax regime.
and the poor getting poorer.” As I was aware that this month’s Leasing World had a
Income tax was first implemented in Great Britain by William feature on aircraft leasing I asked Moore if he had any
Pitt the Younger in his budget of December 1798 to pay for experience in this sector. “Ah – clause 19b,” he squeaked with
weapons and equipment in preparation for the Napoleonic excitement. He explained that he had financed a number of
Wars, and was described as a “temporary measure.” Although corporate jets and super yachts in the past, and clause 19b was
it was abolished by several chancellors in later years, it is now the Lessor’s right to inspect the goods. “I always made it clear
firmly back as a way of life. before the deal was done that this needed to take place on or
The events in Cyprus bring home to all of us another case immediately after delivery so I had some fantastic trips to
where governments cannot do their sums properly. The fact that Paris, Monaco and Geneva. One client even took me in his
personal bank accounts are then raided is staggering especially helicopter to play golf in France. I was also personally named
when many of the depositors are Russian millionaires. Rumour in the Sunday Express supplement at that time under the
has it that those in the know had already taken their money out. heading Pigs Can Fly”.
And talking of anniversaries (see last month’s City Chatter) – Moore explained that he financed a Dornier 228 passenger
VAT is 40 years old this month. Designed by French tax expert plane to Suckling Airways, a newly formed airline, that flew
Maurice Lauré in the post war years it was first levied in the UK from Manchester to Ipswich and then on to Schiphol. “Of
on April Fools’ Day, 1973. VAT is now the government’s third course I was invited on the inaugural flight. We had a fantastic
largest source of revenue after income tax and national lunch in Amsterdam then back to Ipswich later that afternoon.
insurance, and has raised a reported £1.6 trillion in that period. Mind you the lease documentation was quite an event.
Those halcyon days when we preached the tax benefits of The airline was owned by Roy Suckling and his wife Merlyn.”
leasing are also long gone. We are all concerned about the state Apparently, she was a barrister by profession and when
of our industry and many of us elders are also concerned that he turned up with a package of documents about 6 inches thick
our we are not attracting new blood. Investment banking in the she got very angry and phoned the senior partner in the
City used to be the dream ticket for many post-graduates but, law firm that prepared the lease. “This is not a bloody jumbo
with the reputation of the banking system in tatters, the leasing jet,” she told him, “no doubt you charge by the number of
industry is well down the list. words.” By the time the deal was signed the document had
halved in size.
Old Moore “Talking of lunch,” said Moore “It’s definitely your turn,”
Budgets and tax changes are certain to get Old Moore on his then called for the menu and went through the card.
hobby horse and he was in full force in Bow Wine Vaults on I should have known better.
www.leasingworld.co.uk DECEMBER 2013 5
CITY CHATTER ANNUAL 2013
dinner hosted by Amin Amiri, the Principal of a2e Venture
Cock O’ the North Catalysts. As his company name suggests Amin is a serial
This month’s City Chatter comes from Manchester which, at the investor with a fantastic track record. The dinner was held at
time of writing, is the focus of the world’s press following the the Old Manchester Stock Exchange and attended by 80
retirement of Sir Alex Ferguson at Manchester United. guests. As well as an award ceremony for some of his most
Our industry provides a range of finance offerings to successful directors there was an excellent debate between
Football Clubs and I have personally been involved in the Amin and the renowned economist, Professor Patrick Minford.
financing of football grounds and player transfers in recent Apparently this is an annual event and the audience was
years. Even the wealthier clubs occasionally lease their spell bound as the two conjurors argued their case.
advertising boards and big screens. Surprisingly, both seemed to agree on the state of the nation’s
I used to be a regular visitor to England’s third largest city. economy and how recent governments have got it wrong.
As well as the Head Office location for Coop Bank, In previous years I have always made reference to St
Manchester was also the headquarters of two well established George’s day on 23rd April. With TV awash, supporting
leasing companies, Sovereign, and the Davenham Group, both Britain’s obsession with food, I was amazed to read that April
of which have sadly disappeared. 23rd is also Asparagus Day with a festival that runs until
It’s a clear demonstration of the changes in the makeup of June in Worcestershire [Yum-Yum, Ed.]. Then, there is
our industry players when two fast growing and thriving Vegfest Day, Watercress Day and Artisan Cheese day. In each
leasing businesses are here today and gone tomorrow. case the gourmets dress up in traditional costume to celebrate
Interestingly, in November 2001, I visited Colin Davenport, their produce.
then chairman of Davenham Group, having read numerous
press releases regarding its AIM listing which had disappeared
off the newsstands. He explained that the flotation was planned Old Moore
for September of that year, but following 9/11 it was pulled at I purposely popped in to Bow Wine Vaults on St George’s Day
the last minute. The company was fortunate to have two large and Moore was looking distinctly sheepish. There he was in his
institutional shareholders to invest further capital at that time double breasted jacket and Freeman of the City tie, with a red
and Davenham continued its growth and successfully floated on rose in his button hole.
AIM in 2007. To me, it looked like the perfect model with three “You look a bit down, Moore” I suggested.
specific divisions – leasing and hire purchase, invoice “For the first time in 25 years nobody has invited me to a St
discounting, and property finance. As I understand it, the George’s Day lunch,” he scowled. Of course I remembered going
property portfolio finally brought the house down, though some with him in the past few years as a guest of RBS but apparently
might say it was the change in banks’ attitudes to lending. such entertainment is now frowned upon at the state
The main reason for my visit to Manchester was to attend a owned bank.
6 DECEMBER 2013 www.leasingworld.co.uk
ANNUAL 2013 CITY CHATTER
“I have been sitting here since eleven o’clock hoping for a last Discount Company of London plc. He
minute invite. The nearest I got was a bloody roast beef sandwich also spent 18 years on the ELA/FLA
at 2-00pm.” Feeling a bit sorry for him I suggested that I take him Management Committee and was a
for a proper meal – the City has a number of well known steak member of the Council of Leaseurope
restaurants – Hawksmoor, The Groucho Grill to name a couple, for 6 years. He was chairman of
but in the event we walked round the corner to Goodman’s Leasing Life for the first 10 years and is
restaurant in Old Jewry. The place was packed and we were lucky currently a non-executive director of
to get a table. Cassiopae Ltd.
At last Moore cheered up when he saw the menu, and was Andrew spent all of his working life
literally salivating when he ordered a 400 gram Porterhouse Rib at Manufacturers Hanover Trust and
Eye and a Lobster Tail on the side. Add to that an expensive bottle headed up various sections of the Bank
of claret, and the bill was over £200. in London, New York and Sydney. He
You may know that these are not cheap restaurants. I am aware is still a non-executive director and adviser to a number of small
that this particular location took £5.2 million last year. After 6 companies.
hours imbibing on his own in misery he had cheered up Interestingly, they were not sure if they had met before but,
considerably but was now looking a little tired. At one point I between them, they came up with a list of people that we all knew
thought he might nod off. around the leasing fraternity. Both had strong views on the state
I ordered him a taxi and we left around 8.30pm. of our country and particularly the banking industry with a
“You are not a bad old sport,” he mumbled, and unexpectedly consensus that to have taken the powers away from the Bank of
grabbed me in a man hug before falling into the cab. England in favour of the then newly formed FSA was a major
I got a phone call from Mrs Moore the next day to thank me mistake (Old Moore would have loved it).
for getting him home safely. London’s Mayor, Boris Johnson, is currently hitting the City’s
“He was very complimentary about your hospitality after he headlines. By “Getting in touch with the City” (his words) he has
was let down by his usual sponsors,” she said. “Make sure he been visiting many of the famous City institutions with, of course
takes you somewhere really expensive next time.” the inevitable photo shoot. If you google him and find 'Images of
Chance would be a fine thing! Boris' you will be amazed how many people and places are on
show. Could he be the next leader of the Conservative Party?
Confusion reigns
Reading current news items one can easily be confused by the Old Moore
varying reports. Apparently, London is the most popular place Moore was in his element. He had attended the Derby, the test
on the planet for wealthy individuals: Australians, Russians, matches at Lords and the Oval, Ladies’ Day at Royal Ascot, and
Sheiks and Princes are all making their home here. It is reported was now eagerly looking forward to Henley, and the Open Golf
that the French are the fastest growing new residents in London Championship.
(to get away from their 75 percent income tax rate), they say I took a couple of colleagues to meet him in Bow Wine Vaults
even Nicolas Sarkozy and Carla Bruni are planning to make where he was in full cry with a number of his drinking pals.
their home here. This in turn is fuelling a huge increase in what “Ah, here is my good friend the City Slicker” he spouted. I
we now call the Super-Prime housing sector, and with reminded him that City Slicker is a column in Private Eye, as
government supported lending at the bottom end, the outgoing well as a hairdresser’s shop in the City, round the corner from
Governor of the Bank of England is forecasting a Fannie Mae/ Sweetings. (I would definitely enjoy the freedom of the pen
Freddie Mac situation for UK property lenders. embodied in Private Eye but my editor has a sharp blue pencil
Our government currently seems obsessed by companies and and strict rules on here-say and double-entendres, and “has no
individuals not paying enough tax, yet Britain is recognised as intention of appearing in court,” as he puts it).
a tax haven and that is the reason that so many companies “We were just discussing the state of the nation,” Moore
locate their businesses here and employ thousands of Brits. boasted. Of course, this is Moore’s favourite hobby horse. “And
Killing the golden goose comes to mind. we have come to the conclusion that we need to get back to the
FLA figures confirm that Capex is on the rise and that levels old principles when ‘my word is my bond’ was the basis of all
of finance from our industry is growing also. My own business City transactions.”
is certainly in a better shape than a year ago, and although it’s One of my guests immediately took the bait and entered into
been confirmed that we are officially not in double dip an exchange with the old boy, making the point that just as
recession, levels of lending through the Funding for Business many frauds took place in early years, and that just as many
scheme are down. Why is that? promises were broken then as now. It wasn’t quite fisticuffs but
On a lighter note I had the pleasure of hosting a lunch for a when my friend left Moore came up to me and said, “He was a
couple of ‘almost retired’ City colleagues, Andrew Brett and Bob bit feisty – what have you been feeding him on?” I explained
Munro (pictured). Many of our readers will know Bob, who held that my friend was in the City fraud squad and knew a thing or
senior positions at Lloyds & Scottish Finance and Hambros Bank; two about City behaviour. That seemed to quiet him down at
was MD of Williams & Glyn’s Leasing Co. Ltd, Nordic Leasing which point he ordered large whiskies all round, and the toast
International BV and a Main Board Director of the Union was: “To the keepers of the City.”
www.leasingworld.co.uk DECEMBER 2013 7CITY CHATTER ANNUAL 2013
The Feel Good Factor Old Moore
At last things are on the up or at least the politicians are talking You can always find Moore at Bow Wine Vaults on a
it up. The press (and the politicians) are making the most of the Wednesday. I popped in late afternoon to hear of his recent
good news – record temperatures, Royal baby, Murray winning sporting trips – Cricket at Lords, Henley, and the Open Golf
Wimbledon, and England winning the Ashes. Championship at Muirfield.
Business indices seem to be improving all round and that all Surprisingly he was not there, however Paul the evening
bodes well for our industry. Leaseurope reported that the UK manager said that he had seen him earlier and was certain that
once again became the largest equipment leasing market in he was coming back.
Europe in 2012. With its total asset finance sector growing by It was not long before Moore and a couple of friends burst
9.6 percent to €44.4bn, the UK overtook Germany, where slow through the door presumably after a good lunch. “Dear boy,”
growth of 1.1 percent kept it to €43.2bn. he spouted, “let me introduce you to some old friends, Stan
The UK has topped the volume tables in almost every year that Mowatt, Keith Cunningham and David Finbow.” It appears that
I have been in the business and I was surprised when the German they had been to the Merchant Taylors Livery Company in
leasing market overtook the UK a few years back. They certainly Threadneedle Street where Stan was celebrating 50 years as a
never had the same tax incentives that drove leasing to record Fellow of the Institute of Chartered Secretaries.
levels in the 70s, 80s, and 90s. “Stan very kindly invited Finbow, Cunningham and I to join
The old days of 100 percent writing down allowances made a the celebrations,” he boasted. “We are all old pals from my Golf
huge impact on the levels of lending, and also was the incentive Club. Stan was a leader of Industry – you’re a City man – you
for companies to replace or buy new assets. I am certain that must have heard of him?” The name was familiar but Moore
despite the various lobbies, including me, that think the return went on to confirm that they had first met in the 60s when Stan
of such incentives would make the difference, the last thing any was at Cooper Brothers working on major assignments with
government is going to do is allow the major banks to defer their Glaxo and Richards & Merrell (now Proctor & Gamble). He
tax liabilities as in the past. was also a senior executive/advisor to a number of well-known
As I have pointed out before, those players that have continued companies before founding his own group which he eventually
to strengthen their position are now seeing the benefit especially sold to Seton Healthcare. Moore continued, “He was a legend
after the withdrawal of ING Lease. I am also aware of a number in the City you know and knows almost everybody worth
of private funds that are currently seeking investment to come knowing in America.”
into our market, where they see rich pickings. Stan looked a little embarrassed but chatting with him later he
8 DECEMBER 2013 www.leasingworld.co.ukANNUAL 2013 CITY CHATTER
clearly has met with a number of famous faces and won a number
of business awards. His other friends, David and Keith were also
celebrating a feat of their own. Both in their mid-sixties they had
just returned from a trip to Marbella on their motorbikes. “Was
it a good lunch at the Livery Company I enquired?”
“The food looked excellent but we nipped out for a quick
snifter in the nearest pub. To be honest, the ceremony itself was
a bit long so we left Stan there and nipped out for a couple more
but got back just in time to see him receive his award”.
I asked Moore about his trip to the Open. “The weather was
incredible and I had a fantastic time. I followed Westwood for
the last two days and really hoped that he could pull off his first
major on home soil. You have to hand it to Mickleson, though,
to have won the Scottish Open the week before as well, was an
amazing feat.” I asked Moore if he had ever played golf at found more than 30 helicopters parked up at Dublin airport
Muirfield knowing that it is one of the most exclusive courses owned by the successful entrepreneurs who had benefited from
in the UK. “Of course, dear boy, you just have to have a word the ‘Celtic Tiger’ economy. Now there are just 3.
with Stan – he can get you in anywhere.
Old Moore
By coincidence Moore was also in Dublin. I knew he had some
It’s always greener relatives there but he had really come to watch England vs
Ireland in the one day test match held at the Malahide Castle
in the other field! ground just outside Dublin.
This month’s column comes from the City of Dublin. Those of us He rang me just before my trip to say he had a spare ticket
old enough to remember 100% first year allowances in the UK (yes and we arranged to meet just outside the ground. He was
– the good old days) witnessed a period when leasing was highly accompanied by a couple of his cousins and they insisted we
tax driven and delivered a substantial proportion of funding of went straight to the bar. (They had definitely had a couple
assets for UK companies. already).
Many of the US banks were in London then, taking their share The atmosphere in the ground was fantastic. Cricket is not a
of the UK pot – Continental Illinois, Security Pacific, Bank of popular sport in Ireland but the chance to watch top
Boston Leasing, Manufacturers Hanover to name but a few (where professionals was a draw to 10,000 fans who witnessed an
are they now?). exciting match eventually won by England.
Most of the deals were closed on quarter-end days, especially It was suggested that we walk down to the nearby village of
31st December to get the maximum after tax return. I spent many Malahide for a few more drinks and a meal. “Malahide? -
a New Year’s eve in lawyers’ offices at closing meetings which often sounds like chemical you would use in a hospital,” Moore said
finished literally at the last minute. rudely” Actually it’s a lovely village only five minutes away from
The allowances reduced by 25% each year from 1980 to 1984 the ground and after a few more noggins we ate at a delightful
but with annual reductions in Corporation Tax. This resulted in restaurant.
the ludicrous situation for a time where leases could be written The place was packed and as usual Moore had no hesitation
(and were) at negative interest rates, and still make a positive after- in spouting his historical knowledge about anything and
tax return to the lender. everything. “Dublin was founded by the Vikings you know,” he
Ireland did not reduce its 100% FYA until 31st March 1982 and pronounced rather loudly. “When they finished their rape and
I was dispatched to Dublin then to complete a suitcase full of pillage in York, and then the Scottish Isles, they made their way
telecom deals, taking advantage of that window. here and used Malahide as an early settlement.” I looked at the
I stayed at Jury’s Hotel in Ballsbridge where the bar used to be faces of his audience but they seemed little concerned at his
rather like the ‘Cheers Bar’ of US fame with great banter between choice of words. (Back at Bow Wine Vaults in London he was
the visitors and the locals and we celebrated the closing until the often challenged about his forceful view of life and events but
early hours of the morning. (I understand that this has changed everyone here seemed very relaxed).
and lost all of its original ambience). When Moore went to the loo I asked his cousins if they were
My reason for this trip to Dublin was to negotiate funding for ever offended by Moore’s behaviour. “Not at all,” they replied.
some air ambulance helicopters which had been repossessed by one “Over the years we have got used to the old fool. He’s rather
of the Irish banks. pompous and but we are happy to put up with it. After all he
You can always rely on Irish taxi drivers to give you their said you were buying the dinner so we decided to keep quiet
opinion on life, and if you believe them, things are a lot worse in and enjoy your hospitality!” My noggin-ed mind numbed at the
Ireland while unfortunately with a Guinness at €8 a pint you euro bomb that would hit my Amex card, visions of the
can’t afford to drink the problem away. For example, my aviation Dambusters and bombs skipping across the water towards me
colleagues informed me that three years ago you could have flashing through my mind.
www.leasingworld.co.uk DECEMBER 2013 9CITY CHATTER ANNUAL 2013
Columbus discovered America on 12th October 1492. I always
City Hopper thought that Columbus was Portuguese. It turns out that he was
Last month’s City Chatter was based around my trip to Dublin. born in Italy but the voyage was sponsored by the Spanish
This month I am reporting from the city of Barcelona. Crown and it has grown to become one of the biggest days in
One of my sons is completing his MBA and it gave my wife and the national calendar.
me the opportunity to visit him and the historical City. We stayed I am often asked to finance transactions in different countries.
in Born, known as the bohemian area, where there are a number I have been successful with deals in France, Germany and Norway
of museums parks and of course excellent tapas restaurants. (don’t ask) but the Spanish Leasing industry is almost totally under
I am always promoting the City of London but Barcelona is the control of banks and, according the European Leasing’
right up there as one of the great locations of the world. The ten statistics, has very low penetration levels and new business
most important sites to visit included the celebrated Gaudi’s volumes around 10 percent of the UK.
‘Sagrada Familia’, the unfinished Cathedral. Picasso and Gaudi Regrettably my trip to Spain coincided with our own Leasing
are Barcelona’s most treasured sons (although Picasso was born World Expo and Awards Dinner but I can see from the
in Malaga). We also visited several other Gaudi sites. Barcelona photographs that a good time was had by all.
has an excellent air conditioned metro network and with our son’s Back in Blighty I am pleased to report a busy month and with
guidance we saw a massive amount of the City in 3 days. the FLA reporting higher year on year volumes so I am feeling
However, I was most impressed by the site of the 1992 Olympics optimistic about the future.
which, as well as the stadium, houses a beautiful park and the I like to report historic London anniversaries in this column.
Museum of Art housed in a spectacular building with cascading Last month celebrated 10 years of the Oyster Card. According to
fountains. It has fantastic views over the city and is truly a special Wikipedia, over 43 million Oyster cards have been issued and
tourist experience. more than 80 percent of all journeys on public transport in
If you have not made the trip then I would fully recommend it. London were made using the card.
As we are all aware the economy in Spain is dire with one of It’s also 5 years since Lehman was declared bankrupt and sent
the highest levels of youth unemployment in Europe. However, the world into the worst recession for 150 years. How all our lives
there are no more beggars on the streets of Barcelona than you have changed since that event!
will find in London. It’s also worth remembering that it’s less than
40 years since Spain was ruled by the dictator General Franco. Old Moore
Our trip coincided with the ‘National Day’ of Spain which Moore was clearly jealous when I caught up with him in Bow
included street parties and festivals right across the country. Wine Vaults. “I haven’t seen you for a couple of weeks and I
Ironically it celebrates the anniversary of the day Christopher can see by your tan you have been somewhere hot.” I told him
10 DECEMBER 2013 www.leasingworld.co.ukANNUAL 2013 CITY CHATTER
about my Barcelona experience and he immediately recanted located close to the old Billingsgate Fish Market. The old
about his own trips to Spain. Surprisingly he had never been to markets of London are themselves steeped in history.
Barcelona but insisted on giving me the tourist’s guide to Billingsgate was the ‘water gate’ to London and although
Madrid, Cordoba and Cadiz. recognised as a landing place from the River Thames it was not
Moore, of course, has an apartment somewhere near Marbella formally known as a fish market until an act of parliament in
and it was not long before he began boasting about his regular 1699. The market moved to Canary Wharf in 1982 but
trips with Mrs Moore. “It’s changed a lot since we first went down interestingly the last building in Lower Thames Street was built
there,” he scowled. “In the early days it was wonderful to in 1875 by one John Mowlem. He also built Smithfield (then a
experience a different culture and, of course, the fantastic weather. fruit market) in 1882.
However, it’s now full of English OAP’s wandering along the Smithfield remains London’s main meat market. Stockmen
seafront with their sticks and zimmer frames, complaining that it’s drove their cattle for slaughter along Cowcross Street up to the
too hot.” 1850s. The area was originally known as Smoothfield – a grassy
I reminded him that he was an OAP and that he had been going place just outside the City walls used by horse traders and sellers
on for years about spending more time in his second home. (How of sheep, pigs and oxen. The area has been in the news recently
long before he would need a zimmer frame I wondered?). as developers are trying to convince the City of London
“Well, as you have been away so long it must be your turn for Corporation to pull down some of the old buildings and replace
lunch,” he proferred. “I know an excellent Spanish restaurant them with a steel and glass structure housing offices shops
just round the corner. You can probably claim it back in your and restaurants.
expenses from that magazine you write for. Now, what
do you want to know about the leasing industry pre-1980?” Old Moore
“What’s in the December edition of City Chatter?” Moore
roared as I came through the door at Bow Wine Vaults. I went
Another Year Over through my planned agenda at which point he said, “You
(and a new one about to begin) haven’t mentioned Covent Garden. Let’s go there for lunch
today and, as its research for your column, you should have no
When I look back through my previous City Chatter editions I problem claiming back the bill.” He picked up his mobile phone
can see a theme for each year. 2011 was doom and gloom. 2012 and called Rules restaurant, the oldest (and I suspect the most
was one of celebration with the Olympics and the Golden expensive) restaurant in London.
Jubilee. 2013 year really does seem to be one of recovery. UK I had been to Rules before and was aware that it was over 200
leasing is topping the new business charts and capital years old. According to its brochure, in the year that Napoleon
expenditure is gradually getting back to pre-2008 volumes. opened his campaign in Egypt, Thomas Rule opened an oyster
You will note in our magazine there are a number of parties bar which went on to become one of the most fashionable
planned by the leasing fraternity and your City Chatter reporter restaurants in London. After a quick look at the menu Moore
is certain to attend them all and probably with Old Moore in spouted, “Fur or Feather?” which apparently was the term
tow. So continuing the spirit of Christmas I will refrain from regularly used in the 19th Century.
bashing the politicians or the bankers this month and get We settled on steak, kidney and oyster pudding which was
back to reporting on some of London’s great institutions and absolutely delicious and washed down with a bottle of Rules
its history. House Claret.
Readers may have recently seen the documentary “Stephen With starters, pudding and pre-dinner drinks the bill came to
Fry’s Key to the City” which opened with him becoming a £150 (sorry Ed.) but Moore was good value as he went through
Freeman of the City of London. He explained, as most people his usual repertoire of politics, the state of the nation and, of
know, that Freemen could take their sheep across London Bridge course, old stories from our the leasing industry. Given that he
without toll but the other benefits that historically went with has been retired for some years he has kept up to date through
the honour were less known. For example, if sentenced to death the many lunches he takes with old leasing colleagues and of
you would be hung by be a silken rope, you could not be press- course his monthly edition of Leasing World.
ganged and could not be arrested as drunk and disorderly in the “Nothing much has really changed since leasing started here
square mile (Moore comes to mind.) in the 1960’s” he huffed. “It’s still just instalment credit. The
I had the pleasure of attending two Freeman of the City only things that move are the tax breaks and the accounting
ceremonies this year. It’s a very historic and impressive affair rules. I agree with many of your readers that leasing does not
involving an oath to the Queen sworn in the Chamberlain’s need to be re-branded as it will always play a valuable part in
Court in London’s Guildhall, in the presence of the Clerk of the the decision making of Finance Directors.”
Court and the Court Beadle. At that he proposed a toast “God bless the leasing industry
Fry looked at the history of London back to the Romans. I and all who sail in her.”
knew that the Romans held London for about 400 years but I That includes you – dear reader – so from Moore and me,
was not aware that when they left it fell to ruins for several Happy Xmas and best wishes for the New Year.
centuries before the Saxon King Alfred re-established This year’s City Chatter Annual will be available soon in
“Lundenburg” in AD 886. hard copy with the customary, but non-obligatory, donation of
Fry visited the perfectly preserved site of early Roman baths £5 to charity.
www.leasingworld.co.uk DECEMBER 2013 11You can also read
