Abchurch hosts IPREX 2012 Annual Meeting

After months of careful planning, Abchurch hosted IPREX’s Annual Meeting 2012 in London. Along with our co-hosts Brevia Consulting, we were delighted to welcome 44 of our international partners, from 19 countries, to London. Based in the Grange Hotel St Paul’s, we treated our lovely guests to a fun packed schedule. To start the event our international partners were invited to a reception at our awesome (as some of the guests descirbed it) offices so they could enjoy the spectacular panoramic view of London and initiate contact with their fellow guests. Brevia invited keynote speaker Steven Norris to draw on a long career as a successful politician and businessman, which certainly got the conversation flowing.

After a stroll over the iconic Millennium Bridge, we celebrated Shakespeare’s 400^th birthday with dinner at the Globe Theatre, where each of his plays are currently being staged in a different language (that night they were performing The Two Gentlemen of Verona in Shona, a Bantu language, native to the Shona people in Zimbabwe).

The next morning, we took our partners by private boat from Limehouse Marina up the River Lea to the stunning Forman’s Fish Island conference venue, idyllically set directly across the river from the Olympic Stadium. On the way into the conference room we peered into Forman’s famous salmon smokery to see it in action.

Editor of Business Green, James Murray, kicked off the conference with a seriously insightful talk highlighting the need for investment in clean technologies and the opportunities and challenges in the sector. He also highlighted some unsung benefits of the clean technology sector (including huge job creation) and drew our attention to very innovative technology from Seawater Greenhouses.

A thought-provoking presentation by John McLean (who had treated guests to China Food Company’s tasty soy sauce in their goody bags) on Doing Business in China came next. His insight into cultural nuances and etiquette sparked lively discussion about growing business opportunities in the East.

Just before lunch we arranged for IPREX’s traditional Kodak moment to take place on the roof of Forman’s, with a full frontal view of the Olympic Stadium. Definitely one for the mantelpiece!

Lunch was a delicious buffet of the locally sourced sustainable salmon that we had seen smoking earlier; quite a treat.

The rest of the day was very entertaining, with an interactive session on Creativity and Innovation as Communication Power Tools and an opportunity to get to know our new Warsaw, Prague and Boston partners better. Kathy Tunheim also presented the new phase of the IPREX Strategy.

After the sunny boat journey back to the hotel, guests had a moments respite to freshen up before returning to the Southbank. This time our destination was the Tate Modern where we toured some of the stunning art on display and the adventurous among us took in the Hirst exhibit. We then enjoyed a superb dinner overlooking the Thames in the Tate Modern Cafe before heading out on the town …

The next morning, Brevia led the charge to Westminster to continue the conference, where IPREX’s regional report introduced plans to extend our network into Russia and Africa. Following the public affairs theme, Simon Thwaites of ComRes gave an interesting presentation on the power of polling as a business development tool in order to meet client challenges and requests.

Brevia then chaired a discussion alongside Cameron Blair, director of Social Media at Wilkinson PR, our Australian IPREX partner, about using social media to help businesses within the IPREX network as well as clients. This provoked considerable amount of discussion with the room full of members wanting to share their digital expertise.Tactics on how to improve a company’s SEO were discussed at great length as it was apparent all partners have the view that the digital world cannot be neglected. The idea of social media monitoring was also discussed extensively, going into the increasingly relevant debate over whether coverage on a journalist’s Twitter feed can now equate to a hit in the media. What was clear was that everyone shared the belief that digital media opportunities are something all IPREX partners need to embrace with open arms.

The final discussion was lead by our Netherlands IPREX partner Cas Jenster from ACA Communicate, talking about making the most of the IPREX partnership for new business opportunities. Our guests shared stories of working together and utilising the partnership to its fullest. An award was then given out to the partner who had provided the most new business over year to the network … and the winner was … Renzi Stone, of Saxum, with an amazing five successful new business opportunities for others.

After lunch, the conference finale was a tour of the Houses of Parliament. Our guests wandered through the current Upper and Lower houses as well as viewing Westminster Hall, built between 1097 and 1099 by William the Conquer’s son, King William Rufus the Redhead. This historic location has witnessed many a famous trial, such as the trail of Thomas More, and Charles I (our only Monarch to have been executed) on the steps of Whitehall, and of course the famous Gunpowder Plot.

The tour of one of the truly fantastic historic and current sites in world politics capped what was a highly successful and useful few days, where we treated our guests to some of the best of sport, politics, arts and literature that our City has to offer. And judging by all the lovely thank you messages we have received, our partners left the UK satisfied with their valuable meetings and time to network with their fellow members.

The London conference had such a great turnout and Abchurch would like to thank all partners who attended, and extend our special thanks to our new partners from Warsaw, Prague and Boston, who we all loved getting to know better.

Bring on the next IPREX meeting …….!

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Chelsea FC - Season Review

-Viva Didier-

As yet another insane football season is over Abchurch reflects on what was an extremely exciting season for Roman Abramovich’s side. Abchaps were out in force come rain or shine (mostly rain) entertaining some of our lucky clients, journalists and intermediaries with our four season tickets at Stamford Bridge.

Chelsea’s season began with so much promise, with Jose Mourinho incarnate, Andre Villas Boas (“AVB”) occupying the Blue’s dugout. AVB’s success at former club Porto meant much was promised upon his appointment, and the Abchurch team was looking forward to seeing a ‘new look’ youthful Chelsea take on the best football league in the world. The season began well with Chelsea quietly going about their business; which was illustrated by their 2-1 victory very early on in the campaign against West Brom which Jamie and Quincy attended. Chelsea were in good form and if it was not for the form of the Manchester clubs and Tottenham Hotspur’s breathtaking performances at the start of the campaign the media would have certainly made more of Chelsea’s calm but consistent start.

As with any club with high expectations and ambition, Chelsea’s campaign was not solely focussed on the English Premier League (“EPL”) but also the European Champions League (“CL”) - the only major club honour which eluded Roman Abramovich; yet the one he yearned for the most. This campaign, like the EPL, started off extremely well for Chelsea. The competition saw many debutants, such as the young Daniel Sturridge who was seemingly carrying AVB’s team at the time, but the most notable was Julian Bosdet (“Bozzy”), Abchurch CEO who would experience his fair share of nail biting evenings.

October saw the first change in AVB and The Blue’s fortunes. A three match losing run including defeats to bitter local rivals, QPR and a 5-3 home defeat to Arsenal, attended by Mark, Jamie, a personal finance reporter for the Daily Telegraph and an Abchurch client provided the press ammunition to question AVB’s credentials as Chelsea manager. Club captain John Terry being accused of racism capped off a miserable month for AVB. November and December were equally unkind to Chelsea who lost back to back home games to rivals Liverpool including a 2-1 home defeat; attended by Abchurch’s resident Scouser, Mark who was entertaining guests from houses SVS Securities and Westhouse Securities.

By the turn of the year it was safe to say that AVB was on borrowed time, as the ambitious but naïve manager had alienated the more senior players of his squad who can always come in handy for a team fighting in all fronts. A public outburst from Frank Lampard in January confirmed what everyone already ‘knew’ – that AVB was losing his grip on Chelsea football club. Whilst it was all doom and gloom at Stamford Bridge, the Abchaps continued to entertain guests. A stand out match fell right at the beginning of February where AVB’s men squandered a 3-0 lead at home to defending champions Manchester United. Abchurch’s Olly B was in attendance for this memorable United comeback with guests from Liberum Capital, Cobbetts and Grant Thornton.

AVB’s Chelsea tenure did not last for much longer and after a 3-1 humiliation at the hands of Napoli in the Champions League. He was duly sacked. Chelsea legend Roberto di Matteo (“RDM”) was swiftly appointed interim manager. RDM’s tenure began fantastically and he (with the help of John Terry on the touchline) masterminded a dramatic comeback against Napoli in the second leg of the Champions League knock out; witnessed by Bozzy and guests from finnCap.
RDM quickly installed faith back into The Old Guard of Stamford Bridge, and messrs Lampard, Cole and Drogba were back doing what they did so well for previous managers Jose Mourinho and Carlo Ancelotti. Bozzy, with a new penchant for Champions League evenings at the Bridge, entertained old friends from Cenkos, Dorsey & Whitney and Baker Tilly for the 2-1 home leg victory against Benfica.

In the knowledge that Chelsea simply faced too much competition from a resurgent Arsenal, a stuttering Tottenham and a rampant Newcastle to finish in the coveted top four, RDM focused Chelsea’s attentions on the remaining cup competitions. This change in policy would prove to be the best decision ever made in Chelsea’s history.

Playing Chelsea’s Old Guard means installing their traditional philosophy of playing cautious counter attacking football and relying on the ever dominant presence of Didier Drogba in attack. This tactic was demonstrated by their 1-0 home defeat of Barcelona, also attended by Bozzy with a Sunday Times journalist and an Abchurch client, and again Didier Drogba the Chelsea scorer in big games. Subsequently, aided by the utterly unthinkable, the world’s greatest player Lionel Messi missed a penalty, leading Chelsea to defeat Barcelona on aggregate at the Nou Camp – the Blues were in the Champions League and FA Cup finals.

Abchurch’s attendance continued to the bitter end, with Quincy returning to Wembley where only a couple of weeks before saw his beloved Tottenham Hotspur comprehensively beaten 5-1 in the semi final owing to a horrific referring decision and yet another Didier Drogba master-class. Quincy and Ashleigh saw the 2-1 victory over Liverpool at Wembley with guests from Canaccord Genuity. Chelsea were FA Cup winners, RDM had delivered silverware, and Abchurch was there to see it.
Oli, accompanied by an Independent journalist and an Abchurch client, saw one of the goals of the season scored by Papis Cisse for Newcastle during Chelsea’s penultimate game. A game which finished as 2-0 defeat, and showed the world that RDM had one thing and one thing only on his mind, and that was the Champions League final against Bayern Munich in Munich!

What would happen to the team who finished sixth in the Premier League and had always come so close yet so far to winning Europe’s elite club competition? Would the old guard finally win the one trophy that had so far so brutally eluded them? Would RDM play the same tactics that had proved so fruitful in the other knock-out rounds? Would Ashley Cole make goal line clearance after goal line clearance? Would Didier Drogba bully yet another European defence on the largest stage of them all? Would Chelsea qualify for next year’s competition?

The answers to the above questions are all yes, as Didier Drogba slotted the winning penalty to make Chelsea European Champions with a 4-3 victory on penalties.

In a season which started out so haphazardly, Chelsea who until mid way through did not have a prayer from anywhere, anyone or anything, boasted arguably their finest campaign yet.

As we enter another close season, with RDM not even sure if he has a job with Chelsea at the end of the summer, Abchurch must thank the Chelsea team for providing one of the most dramatic and exciting campaigns in football history. For our and our guest’s sake, please keep the drama and excitement up.



Jamie Hooper


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Gorkana Breakfast Briefing with Martin Barrow, Health Editor, The Times

With a growing stable of life science and med tech clients, the thoughts and general musings of the person responsible for The Times newspapers health and social care coverage was bound to be, not only interesting but relevant to many of our clients. The two Olivers, Oli and Olly made the journey across town to the West End and the fantastic lecture hall at the Royal Institute of British Architects (RIBA) to hear what Martin had to say.

Martin Barrow has been Health Editor at The Times since November 2011, but started working for The Times over 21 years ago. His first role at the paper was on the business desk where he worked for 12 years, followed by spells as foreign news editor and home editor before taking charge of the two person health team. With such a wealth of experience behind him the hour he was given looked unlikely to suffice.

Rather than repeating what Gorkana has very helpfully written up here it was incredibly interesting to hear what Martin covers in detail, the host of issues he is currently interested in, how he likes to work and what he looks for in a story. He also highlighted the benefits of online coverage in The Times, despite being behind a paywall, the website has over 120,000 paying subscribers who actively engage with the paper and explore new content.

Thanks again to Gorkana for organising this and a full review of the meeting can be found on Gorkana PR via this link.

Oliver Hibberd


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King Pin 2012

Following on from the success of last year’s event, Abchurch was delighted to again receive an invite from Dorsey & Whitney LLP, to attend the 2012 King Pin Tournament. The Abchurch team, consisting of Adam, Mark, Quincy, Jo, Olly B and Oli H, were one of eight companies competing for this year’s trophy.

Considering the Abchurch team had enjoyed a sneaky practice session a couple of days before the event (where Mark had manage to produce a ‘Turkey’ for those in the know with the bowling lingo), the Abchurch team’s collective performance was somewhat of a disappointment. Having headed into the evening in buoyant spirit, the phrase ‘gutter ball’ was repeatedly heckled behind the Abchurch team’s lane and was fair testament to the bowling on show.

BDO LLP came away eventual winners having fielded what can only be fairly described as five potential hopefuls for the Great Britain 2012 bowling team. Aside from the action on the lanes, Roger Gregory and his colleagues again hosted a fantastic evening’s entertainment, allowing everyone to catch up with friendly faces and some new contacts.

Special thanks must again go to the Dorsey & Whitney team for inviting us to attend. We look forward to returning the favour at our Future Faces event on April 19th!


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Abchaps FC downed by man strong Dow Jones

On Tuesday 13 March Abchurch and Dow Jones played out a goal fuelled 5-A Side football match at the Power League in Docklands, Canary Wharf. The Dow Jones team ended up as narrow winners with the extra player and match fitness proving the crucial difference between the two sides in the 11-9 thriller.

Dow Jones fielded a team with familiar names such as Tommy Stubbington, Peter Evans and Iain Packham contacts that the Abchurch team have conducted many a telephone briefing with. The match also provided introductions to Michael Haddon, Mike Wright and Alexis Flynn.

The Abchurch team was on the back foot from kick-off, however through some intricate passing and resilient defending, the ‘Purples’ were never more than two goals away from levelling the score. Some unlucky Abchurch strikes which rattled the post and cross bar, which on any other day would have broken the nets at Power League meant the Dow Jones ended up as deserved winners in a physical but well tempered contest.

The Abchurch team would like to thank Dow Jones for such a competitive encounter, and hope this was the first of many football contests to come and with a couple of new signings and some extra training, Abchurch FC will be a force to be reckoned within the after work football arena.


Jamie Hooper

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Sachs Forum European Life Science CEO Forum for Partnering & Investing

March 2012 - Zurich
Adam Michael and Jamie Hooper represented the Abchurch Life Sciences practice by attending the first Sachs Biotech Investment Forum of the New Year in Zurich. As always the event was excellently attended with both private and listed biotech companies, a broad spectrum of the finance community, representatives from the medical profession and the occasional PR practitioner.

The format of the Sachs Forum gives attendees the best possible chance to maximise their time in Zurich with an efficient one-to-one meeting system, themed panel discussions, and networking facilities throughout the day. With over 200 companies attending, and a strong contingent of European life science investors, delegates at Sachs were kept very busy.

The panel sessions stimulated quality debate for both the day and evening networking (over a glass wine and canapés), covering such topics as; the resurgence of platforms technologies over products; the latest interactions between big pharma and biotech; and the current popularity of the French biotech industry with investors.

The one-to-one meeting system enables delegates to pre-arrange meetings with potential collaborators and investors, or to just help increase someone’s knowledge on a particular technology. Frequently compared to speed dating the platform gives attendees a fast, sharp opportunity to interact with numerous delegates in a more structured setting than the networking hall. The half hour sessions keep meetings to the point.

While times are still tough in life sciences, with capital hard to raise, and public markets shying away from life sciences, events like the Sachs CEO Forum give companies in the sector a real opportunity to present their case to investors and partners and maintain momentum across the industry.

One thing is for certain: the Swiss venue for the conference continues to garner strong support from both the vibrant and sophisticated finance community, and the local, world-leading, pharmaceutical industry.

Jamie Hooper

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Five minute Abchat - Jessica Allum

Our newest First Class Honours graduate, Jessica Allum answers the Abchat questions...

• What did you want to be when you grew up?

My first life ambition was to be a dancer, but my lack of rhythm and coordination ruled that out. After getting my first cat, Fluffkin, I then decided that I wanted to be a vet. This dream lasted until the age of 15 when I undertook some work experience in Financial PR. From that moment on I knew I wanted to work within business, ideally in the City, in a role that combined the markets with communications.

• How did you get into PR?

My degree was largely focused around business, however I specifically selected to study a module in communications which was highly beneficial as I was exposed to the academic side of PR. I studied at the University of Sheffield and I carried out work experience at a number of Financial PR companies and asset managements firms. In their own ways each placement enhanced my desire to pursue a career in communications. Having graduated in 2011, prior to my role at Abchurch, I gained experience in in-house PR at a hedge fund.

• Describe your role in ten words or less (if that’s possible!):  

Exciting, invigorating, interesting and enjoyable.

• If I wasn’t talking to you now, what would you be doing?

I would be finishing update reports and inviting analysts, lawyers and brokers to the Quoted Company Awards. At the same time I would be absorbing all the different facets to financial and corporate PR going on around me.

• What is the most interesting thing about your work?

There are a number of interesting elements, ranging from arranging analyst and media road shows for clients to witnessing how a piece of media coverage can influence a client’s share price. However I feel that the most interesting aspect of my job is the ability to work within a variety of sectors which enables me to broaden my knowledge and gain valuable experience into City life.

• What developments do you expect to see in the next twelve months?

When considering the broader area of the financial sector one of the key developments likely to be seen relates to tighter regulation in terms of corporate governance. However looking more specifically at the field of PR the first government- funded industry-wide PR apprenticeship scheme has been unveiled. Much more emphasis is likely to be placed on helping those who plan on not attending university in entering the PR sector; not a great surprise given the fact our Prime Minister is a former PR man.

Institutional Investors in AIM Breakfast 2011

On Thursday 20^th October Julian, Jo, Quincy and Oliver attended the Institutional Investors in AIM 2011 breakfast, organised by Vitesse media.

Whilst the equity markets have continued to be incredibly volatile, the fact that Vitesse’s report revealed that institutional investors still have some £37.3 billion invested in AIM, up from £32.7 billion last year, should give all those involved within AIM some much needed confidence leading into next year.

With the continued malaise within the eurozone, it should not come as much of a surprise that institutions such as Blackrock and Henderson Global Investors are focusing their investments on emerging markets. Africa in particular, with its wealth of natural resources and minerals, has attracted a lot of investor interest, similarly, Asia and South America.

Following the presentation of the report, the breakfast provided all the attending advisers with an opportunity to network and it was great to see lots of familiar faces. The concluding remark of the report, that 54% of AIM is still owned by institutions, reiterated to all that even in tougher markets, there remains an active investor interest in growth companies with strong investment stories and quality management teams.

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LSE Chief advocates for SMEs

“There are 21.7 million people unemployed in Europe, and 23 million SMEs. If each SME were able to take on one more person…?This is why governments across Europe must look at all they can do to assist SME growth; these businesses are the essence of our future prosperity,” said Xavier Rolet, CEO of the London Stock Exchange last night at the AIM annual awards ceremony.

This year, the old Billingsgate Fish Market (built in 1874) hosted the event, which has arguably the best views of Tower Bridge in the city. Over 1,300 guests attended the dinner, comprising  AIM quoted companies, NOMADS, brokers, accountants, lawyers and public and investor relations firms, making it the largest AIM gathering in the City. Sponsors of the event ranged from Argus to Zeus. And the overall winner of evening, taking the Company of the Year Award was May Gurney.

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IPREX EMEA Fall Meeting, Stockholm

I have just returned from IPREX’s EMEA Fall Meeting in the beautiful city of Stockholm. Based on the topical theme of Digital PR and The New Web, the meeting provided thought provoking insights into future developments and ways of practice.

The opening evening provided an idyllic combination of great food, wine and engaging conversations, a trend that lasted throughout. Peter Ericsson, a former IPREX partner, gave a talk on the rise and fall of PR, a subject of great relevance in light of the current economic climate. He took the group back to past events that led to the unfortunate closing of his firm in one week. Peter advocated the need for internal crisis plans as a form of security.

Highlights included a talk by Jim Walsh of Walsh PR via Skype. Jim discussed how a small PR firm can tackle the challenge of managing digital and online programs for clients. His independent research revealed that agencies are split on their approach: half hire a ‘guru’ on either a full or part-time basis, while the rest upgrade current staff skills to meet new demands.

Nicolas Merigeau of New Cap shared details of how his firm handled recent challenges regarding digital PR and crisis communication, emphasising the importance of online interaction. Nicholas used the example of Air France’s neglecting of online comments from customers regarding the price rise on flights from France to
Japan.

The full group in Mariatorget Square on Saturday afternoon

Beata Wickbom suggested that companies should see social media as an experiment, and that those who do are the most successful in the space. She believes that companies should focus on appealing to users’ emotions when operating in such a social environment.

A big thanks to Johan Wetterqvist of Spotlight PR and the EMEA team for hosting a highly beneficial event, with much to take away from.

It is well advocated that the communications landscape is becoming increasingly digitalised, as companies seek to offer multi-layered services. Every aspect of how we exchange information is feeling the impact of the technological revolution. Therefore, we as PR professionals must follow suit, and adapt to meet our client requirements.

With Facebook Inc., projected to float at US$100bn, it really does put the prominence of new media into context.

Henry Harrison-Topham, Managing Director

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F-star – a shining example of biotech and drug discovery

The ingredients for a successful biotech company are actually much like any other early-stage business: a good product with customer interest, management skilled to commercialise the product, and the financial backing to make the project a reality. It’s the simple, TV Dragons Den formula.

The difference with biotech is in assessing the quality and robustness of the technology, finding suitably experienced management, and sourcing the weighty investment necessary to succeed---pharmaceutical companies still quote $500m per drug to market, although good biotech companies should slash these costs.

I’ve been tracking F-star (www.f-star.com) since late 2009, just before it raised €8million in an extended series A, drawing in the venture wings of two pharmaceutical plays: MerckSerono and Mitsubishi Tanabe Pharma. Yesterday (September 7th 2011) the company announced that from the early investment from MerckSerono, a product development deal had evolved worth just shy of €500m. MerckSerono is providing three drug targets in inflammatory disease to which F-star is creating antibody drug candidates through its Modular Antibody technology.

Between these two events with MerckSerono, the company has also struck a deal with Boehringer Ingelheim worth up to up to €180m for each of seven targets, and closed an additional financing round of €15m, led by SR-one, GlaxoSmithKline’s venture wing. Other investors in the business include Novo Ventures, the venture arm of Danish pharma group Novo, and a purse of established life science venture capitalists.

These events have all fallen under the leadership of Kevin FitzGerald, who took to the CEO seat just seven months before closing the €8m financing in January 2010. Along the way the company has also managed to attract the likes of Sir Greg Winter, arguably the world’s leading academic on antibodies, to head the scientific advisory board.

So, a great product with significant pharma interest; a management team that is actively (and rapidly) progressing the company’s potential; and all healthily financed in a way few biotechs are in the current cycle. F-star is fulfilling a simple business formula. It’s now probably too hot for even the fieriest of Dragons, but are there deep-pocketed investors in life science that will recognise, buy into, and further progress the F-star proposition? I sense so.


Adam Michael


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Chinese IPOs come back into favour

Chinese companies have often been criticised for their turbulent relationship with UK investors. On AIM in particular they are often accused of not being transparent enough, and it is well documented that investors have had their fingers burnt by some high profile companies.

However, it seems that there is a flip side to this, and one that intuitive Chinese companies can capitalise on. Whilst the preconception is that these types of companies are prone to shying away from regular communication with investors, many fund managers still want exposure to the significant opportunities and vast markets that are present in China across a variety of sectors. There is a great opportunity, therefore, for companies that are prepared to be transparent and communicate openly to make a great success of their time on AIM.

Dongfang Shipbuilding, which joins AIM this week, is intending to leverage the market’s standing and corporate governance guidelines. By listing on AIM, Dongfang’s management intends to promote the Company as transparent and adhering to high levels of corporate governance, which will not only be reassuring to investors, but also help the Company to stand out amongst its peers in the Chinese shipbuilding industry. The Board believes that the European ship owners in particular will feel that the Company’s listed status in London will make it stand out in a crowded market and give a level of reassurance that isn’t possible as a private company.

With AIM listed companies such as China Food Company and Sorbic International putting considerable emphasis on transparency and behaving like Western-run companies but with the direct exposure to the growth in Asian markets, investors may finally be prepared to consider Chinese companies again as a good opportunity. Dongfang’s IPO this week reiterates that there is investor demand for Chinese companies that are well run and willing to play by the rules; and, in turn, they will be rewarded with their new found status as a listed company and the support of UK shareholders.


Henry Harrison-Topham

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Book Review: 'Priceless' by William Poundstone

Intern at Centaur Media plc reviews 'Priceless' by William Poundstone for Mortgage Strategy

Economic principles will tell you that products are priced on the level of supply and demand as well as the cost of production.

It’s true that good businesses will always ensure they make more than they spend but that’s not all.

William Poundstone’s Priceless seeks to explain the dark art of selling and how to increase the selling price by psychological tricks. It provides insight into the underhand techniques that used-car salesmen and market dealers have been using for years.

These Jedi mind techniques will come in handy for mortgage brokers after one large firm recently revealed it has a 100% target for protection sales.

Cross-selling protection is crucial now and Priceless offers guidance to help you sell more and earn more. One technique is explained through a simple behavioural trick renowned in economics circles.

The book poses two questions. First, is the number of African countries in the United Nations higher or lower than 65?

Second, is the number of African countries in the United Nations higher or lower than 10?
The average guess of those asked the first question was 45 whereas the average answer to the second question was 25.

The reason the second answer is almost half the first is that the number in the question is used as a reference point. The technique is called anchoring and is often used in sales.
Poundstone cites the example of a canny Broadway producer pricing tickets.

“Cheap seats don’t sell, wanna know why?” he says. “If you price orchestra level or mezzanine seats cheap, people think there is something wrong with them.”

Brokers can use this technique effectively. If they set fees too low clients will consider them worthless so the Stella Artois catchphrase ’Reassuringly expensive’ is one brokers could adopt.

Anchoring can also be used to influence clients. For instance, would you like to pay more or less than £1,000 for your broker fees? Some people will ignore the anchor and think logically but most will be swayed to a higher or lower assumption than they originally thought.

There are other fascinating pricing strategies in the form of bundling of products. For example, when selling a blender it would be acceptable to tell the customer they are buying a blender and that’s all. But Poundstone highlights a salesman who marketed his product as a glass canister, blades, holding pod, electric wire and rotation tools.

Despite being identical, the second description gives the impression that buyers get more bang for their buck. The blender salesman charged more but went on to outsell his competitors.

It is worth remembering that when charging fees brokers should talk themselves up and highlight all aspects of their service. That could include offering quality advice, getting the best mortgage deals, a guide for buying a house and a hassle-free experience.

Poundstone also explains the theory behind techniques such as that used on the popular quiz show, Goldenballs. In the final section where contestants can share or steal a pot of money, Poundstone explains why some choose to steal while others share.

Priceless explains that pricing is never fixed and everything is negotiable. The examples are interesting and there is much to take away from this useful read.

Review by Stuart Hosie


This book discusses the art of what makes for good negotiating and price determination. By examining a series of sales and marketing techniques the book highlights principles which apply to the psyche of the consumer.

A very interesting book review; and recommended for any broker, or any professional who negotiates and interacts with people on a daily basis to have a read.


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Apple is world’s most valuable firm

- Steve Jobs is the man-

Recent uncertainty in the stock market yesterday helped Apple to overtake Exxon Mobil to become the world’s most valuable company. However, the innovative work of Steve Jobs should not go unnoticed.

Apple briefly pipped Exxon on 9 August 2011 when the Company’s share price dipped due to a fall in the price of crude oil; a direct result of the market’s concern over The United States’s debt crisis and the increasing threat of a double dip. The USA is the world’s biggest consumer of crude oil and as a result, Exxon Mobil’s share price has seen a 20pc drop since reaching a year high of $87.98 in April 2011. On the other hand, Apple is a blossoming evergreen, with the Company’s share price having almost quadrupled in the last four years. 

City workers, journalists and consumers are questioning how Apple is managing to expand at a time when other companies and even sovereign states are struggling to stay afloat. Could the simple answer be the work and vision of Apple CEO, Steve Jobs…?

The California based tech company is enjoying rapid expansion, with every results announcement continuing to boast record growth upon record growth. Furthermore, analysts do not expect this growth curve to plateau, as most still hold buy recommendations on Apple, despite the prospect of the deepening slowdown in the world economy. In fact the only time Apple’s share price did begin to level-out was in January 2011, when reports in the press stated Jobs had been taken ill again; arguably a marked testament to the markets’ faith in their CEO.

The argument that technology will continue to develop and demand will never dwindle is true, but Apple has to be acknowledged for its innovative products – the recognition of which should go to Steve Jobs. When Jobs was reinstated at Apple in 1997, he inherited a company worth $2billion. Apple was trailing behind Dell and the world of electronics was wholly dominated by Microsoft. Today the company is worth $341.5bn.

As the Internet became more widely accessible, Job’s first priority was to rebrand Apple. The company reacted and introduced the pretty coloured iMac computers. Over the years, this evolution has continued, with the iMac leading to the iPod, then to the iPhone and most recently, to the iPad. In just 14 years Steve Jobs has changed consumer computing, the entire music industry, mobile communications and brought tablet devices to the market (a concept one might have thought belonged in an H G Wells novel not too long ago).

The upcoming autumn launch of iCloud is yet another example of the company and Steve Jobs’s innovation. Jobs spotted that the proliferation of hand held wireless devices has led to businessmen and consumers being ‘online’ all the time, and as a result, there is increased demand to access and backup data through cloud based services. iCloud will actually overservice these consumer needs; further differentiating Apple from competitors such as Microsoft and Dell, and in turn, increasingly encroaching upon Google’s territory.

As Dominc Rushe in the Guardian comments: “One of Jobs’s early goals was to surpass Dell”. Apple have done just that. In 2006 their market capitalisation was $72.13bn vs Dell’s $71.97, and by May 2010 Apple’s market cap was $3bn greater than Microsoft’s.  Now the technology giant’s market cap is rivalling oil companies. [1]

The soon to be launched iCloud service and the eagerly anticipated iPhone 5 will continue Apple’s dominance of consumer electronics under Jobs, with stores worldwide having flocks of dedicated followers queuing up overnight eager to get their hands on the latest Apple product.

When Steve Jobs decides to retire, the board at Apple has some task on their hands to replace him. It will not be easy.

Jamie Hooper

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[1] Pg 24 Guardian 10 August 2011

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AIM joins in on Global IPO fever

A recent piece of research commissioned by Ernst & Young has offered all those associated with the financial markets reason to feel optimistic heading into the second half of the year. The report notes that Global IPO fundraising activity has risen by 38% in the second quarter of 2011, compared with the same period last year. Focusing on Europe in particular, the report comments that IPO fundraisers in the second quarter amassed to a huge 534% increase in capital raised, compared to the dealings from the first quarter of the year. Of particular note was the fact that dealings conducted on the London Stock Exchange were themselves responsible for US$12.6bn of the US$17.7bn raised within Europe’s stock markets. Whilst the blockbuster IPO fund-raiser of the Swiss commodities trader, Glencore, no doubt heavily contributed to this buoyant up-turn in capital-raising, further market sentiment would suggest that the London Stock Exchange is enjoying a very active period. In turn, the increase in Global IPO activity has also been heavily mirrored on the London Stock Exchange’s AIM market. The number of companies joining AIM has more than doubled to 16 in the second quarter of 2011, up from just seven in the first quarter. Furthermore, AIM has already completed 19 IPOs this year, with June in particular having been an especially strong month; the IPOs in June managed to raise £169.5m which was the highest amount raised on the market for six months. Market reporters suggest that the current trend of IPOs on AIM is set to continue throughout the second half of the year. Abchurch is certainly seeing an increase in activity and the team are working on a number of floats at the moment, one of which, Spectra Systems, a US specialist in advanced technology for banknote authentication floated on AIM in late July. Early indications suggest that Spectra Systems has continued the current IPO fund-raising trend on AIM by managing to raise £15m; a strong advance on the £5m initially hoped for. Furthermore, Spectra enjoyed a happy first day of dealings with the share price up to 78.5p having floated at 75.3p. .


Olly B


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