Good morning and welcome to the Business Breakfast live blog for Monday, September 18.

I'm Coreena Ford and I'm running our blog this week.

This live blog will bring you all the breaking business news from across the North East and beyond, covering anything and everything from the world of business.

This morning we have news from accounting giant PwC which has filed its annual results, showing record revenues. Senior partners put the growth down to investment in new technologies and solid work in the regions, including the North Easy where PwC has a strong presence.

As usual, I'll drop in reminders of some of our stories you may have missed, plus other news from the stock market as it comes in.

If you'd like to contribute, tweet at @jnlbusiness to share your opinions, drop me a line at coreena.ford@trinitymirror.com or tweet me at @Scoopford

All you need to know...and goodbye.

That’s the first blog of the week done and dusted, so hopefully that’s set you up for the start of the working week!

I’ll be back here again tomorrow morning, serving up the latest news from the world of biz.

In the meantime, here’s a few extra stories...and thanks for reading. Have a great day!

‘You’ve been watching too much Doctor Who’: Readers react to Hyperloop plans

Dalton Park shopping park’s major refurbishment programme nears completion

Print and packing firm Elanders’ acquisition is just the ticket for regional growth

A Meeting With: Matthew Stephenson, MD and owner of confectioner Sweetdreams Ltd

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From professional footballer to fintech leader - Norm Peterson, co-founder at Growth Capital Ventures

Norm Peterson was living the dream in his late teens, embarking on a career as a professional footballer with Hull City.

But just months into what promised to be a rewarding sporting career, a serious knee injury forced him to make a swift re-evaluation of his life.

Having to suddenly map out a completely new career path might set some floundering, but Norm converted a traumatic time into a positive learning experience that took him thousands of miles from home, working in project management for a host of firms in a variety of emerging industries.

All of his experience has come together now he is home in the North East, working with his brother Craig on a co-investment platform that has the potential to create hundreds of jobs as it drives forward North East firms.

He and Craig are co-founders of County Durham-based Growth Capital Ventures (GCV), a growing fintech firm that has access to £194m of funds to help drive the growth of northern businesses.

The business also operates online co-investment platform GrowthFunders, which allows investors to co-invest in high-growth impact-driven opportunities.

Just two years after first setting up, the firm already has 6,000 investors on the books, and a huge variety of firms tapping into growth funds – and even more ambitious plans around the corner.

Read my full interview with Norm, and find out how GVC has the potential to create vast numbers of jobs, as well as creating much-needed new housing.

Norm Peterson
Norm Peterson (Image: newcastle chronicle)
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Entrepreneurial duo's Storage Shepherds rolls out nationally after backing from Sir Richard Branson

A Newcastle business backed by self-made millionaire Sir Richard Branson is rolling out nationally after a successful launch.

Storage Shepherds is aiming to become the “Airbnb for self-storage” after creating an online marketplace that lets users rent out spare rooms to those needing to store belongings.

In July the company won the Virgin Media Voom Pitch competition, earning the founders £5,000 and brunch with Sir Richard to discuss their business idea. Storage Shepherd is now ready to roll out nationally, having launched the website and taking on an additional member of staff.

Co-founders Max Haydon and Jeffery Widjaja came up with the idea for Storage Shepherd after realising that they their student home was empty for three months of the year. The entrepreneurial students decided to make some extra cash by allowing people to store boxes in their rooms while they were away. They have also broadened the company’s scope to allow people to rent out parking spaces in busy areas.

Storage Shepherds has since expanded and hired Newcastle University student Max Haining to work as the firm’s social media and marketing manager

Mr Haining said: “We are getting customers on board as word gets out. Students are one of our big target audiences, but to be honest anyone who has spare space can use the site.”

Max Haydon (left) and Jeffery Widjaja (right) after winning the Voom pitching competition
Max Haydon (left) and Jeffery Widjaja (right) after winning the Voom pitching competition (Image: Copyright unknown)
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70-year-old engineer expands bike business with latest invention

A grandfather who created a bike business inspired by his grandson is now moving through the gears of expansion through the launch of a range of new foldable eBikes.

Joe Mulcahy officially reached retirement age four years ago, but he’s now back in business, tapping into skills he first acquired as an apprentice engineer 50 years ago.

The 70-year-old, of Chester-le-Street, is the founder of Pedibal Ltd, the makers and suppliers of three-in-one bikes which are selling all over the world.

Aided by his son Garry, he has designed a new range of fully-foldable eBikes under the successful Pedibal brand, originally inspired by his grandson.

The new range of eBikes are set to go on sale later this year and offer riders the chance to get the full benefit of a commuter bike with the added bonus of an electric motor for extra power and speed.

It is expected that the new range of eBikes, which come in white and black with leather fabric accessories and hand-grips, will be sold direct to customers or via the government’s Cycle to Work Scheme.

Pedibal has sold the innovative three-in-one balance to pedal bikes to individuals, schools and organisations across the world since 2014.

He was inspired to engineer the business after tracking down a suitable balance bike for his grandson, who has dyspraxia, a neurological condition which affects sufferers’ mobility and coordination.

Mr Mulcahy said: “When I started Pedibal I had no intention of settling down into retirement.

“I was looking at ways to innovate bike design following an experience I had helping my grandson to learn to ride at an older age due to his dyspraxia challenge.

“The response to the three-in-one bike from our customers in locations such as Norway, Denmark, France and Holland really inspired me to look at new and alternative ways to use bikes to transform lives.”

Joe Mulcahy, founder of Pedibal, with the new foldable eBike that is set to tap into a whole new market
Joe Mulcahy, founder of Pedibal, with the new foldable eBike that is set to tap into a whole new market (Image: Ian McClelland)
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UK now the 8th largest industrial national, EEF report finds

Britain is now the eighth largest industrial nation, after manufacturing returned to growth last year, a new report says.

The country has climbed one place in the world rankings over the past year, with annual manufacturing output worth more than £183bn, said the EEF.

The manufacturers’ group said the largest individual sector is food and drink (16%) while the chemicals and pharmaceuticals and transport sectors both account for 14% of output each.

The North West remains the biggest regional powerhouse, producing more than £24bn output.

Manufacturing also helps power the engine of the West Midlands (£17.5bn) and East Midlands (£15.9bn), with their strength across the aerospace and automotive sectors, said the report.

Lee Hopley, chief economist at the EEF, said: “With Government facing lots of major policy decisions on everything from our future trading relationship with Europe and the rest of the world to the detail of a long-term industrial strategy, it is vital that they have the right industry facts at their fingertips.

“Our latest annual fact card reveals that manufacturing’s share of the economy remains stable at 10%, but the sector makes a much larger contribution to vital exports and innovation.”

Britain is now the eighth largest industrial nation, after manufacturing returned to growth
Britain is now the eighth largest industrial nation, after manufacturing returned to growth (Image: PA)
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Esure shares soar on £1bn sale speculation

Shares in motor insurer esure have soared following reports the firm’s biggest stakeholder is looking to sell.

Sir Peter Wood, who owns a 30.7% controlling position, has been in talks with would-be buyers in a move that could trigger a full-blown sale of the business, according to reports.

Shares rose more than 5% in morning trading on the London Stock Exchange as traders reacted to the speculation.

Sir Peter is reported to have held “informal” discussions over a possible sale, with an eye to having a deal in place next month.

An American insurance company is seen as the most likely buyer for the 71-year-old’s portion, despite interest from private equity firms, the report suggests. The firm, which has a market capitalisation of £1.2 billion, saw price comparison site Gocompare demerge from the company and list on the stock market on November 3 last year.

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Travelodge launches recruitment drive to take on 875 staff

Hotel chain Travelodge is to recruit hundreds of staff in the coming months under an expansion programme.

The company said 875 posts will be filled, ranging from receptionists, bar staff and cleaners to managers.

Six new hotels are opening between now and Christmas and jobs are being filled at other Travelodges as well as at the firm’s head office.

Craig Bonnar, Travelodge chief operating officer, said: “Joining a hotel company opens the door to training, career progression and even roles in new countries. “We have a successful in-house management development programme in place that has helped hundreds of colleagues climb the career ladder into management via an entry level position.”

The new hotels include the new Newcastle Quayside hotel as well as hotels in Bath, Inverness, Redhill in Surrey, Melksham in Wiltshire and London.

The new Travelodge hotel being built on the site of the former BT offices next door to the Copthorne Hotel on the Newcastle quayside
The new Travelodge hotel being built on the site of the former BT offices next door to the Copthorne Hotel on the Newcastle quayside (Image: Newcastle Chronicle)
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Gateshead's Primula cheese makers grow profits to £2m despite loss of major customer

Primula cheese makers Kavli UK grew profits by 14% to top £2m despite continuing challenges in the food industry and the loss of a major customer, accounts have shown.

The Team Valley-based business, which has been making cheese products for more than 90 years, recorded a 1% drop in turnover to £46.7m in accounts filed for the year ended December 31, 2016.

However, additional sales from new and existing customers, as well as a more profitable mix of products, managed to offset the loss of a customer, helping profit for the year to climb 14% to £2.172m.

Kavli UK has been involved in cheese products in the North East since 1929 but more recent acquisitions have brought paté producers Castle MacLellan and St Helen’s Farm goats’ products into the UK business, which now employs an average of 273 people.

In a business review alongside the financial statements, Kavli UK managing director Paul Lewney said: “The group’s turnover has decreased by 1% against the prior year with an increase in profit on ordinary activities before taxation to £3.348m (2015 £3.035m).

“The loss of a major customer, partially offset by additional sales with new existing customers, a more profitable product mix and cost reductions have been the main reasons for the growth in profitability in 2016.”

The growth in profits means more funds will now be pumped into the firm’s charitable trust, set up in the 1960s by the parent firm Kavli Group, whose sole purpose has been to generate profits for good causes through its commercial businesses.

Paul Lewney, managing director, outside Kavli UK HQ in Gateshead
Paul Lewney, managing director, outside Kavli UK HQ in Gateshead (Image: Tony Hall Photography)
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Home Office lost a seven-year-battle to slash its property tax bill

The Home Office waged a seven-year war to slash the property tax bill for its Westminster HQ by nearly £16 million in a dispute over its own government’s rates system, it has emerged.

Amber Rudd’s Home Office eventually lost its lengthy appeal against the level of property taxes it pays for the site at 2 Marsham Street in the City of Westminster earlier this year.

In an embarrassing twist for the Government, the building has also housed the Department for Communities and Local Government (DCLG) - which is responsible for business rates policy - since 2014 in a bid to save costs.

The Home Office first lodged its challenge against the £25m rateable value slapped on the site in 2010, hoping to slash the value by almost a fifth to £19.1m. The appeal was dismissed at the end of March this year, Valuation Tribunal decision documents show.

If the Home Office had been successful, it would have been handed a £15.75m rates rebate, according to calculations by business rent and rates specialists CVS.

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Insurer Hiscox unveils £110m Hurricane Harvey hit

Hiscox said the devastation wreaked by Hurricane Harvey on the United States will cost the insurer $150m (£110m) in claims.

The FTSE 250 firm said the estimate was within the modelled range for a disaster of that scale and was based on an insured market loss of $25bn (£18bn).

It came as the company warned that “natural catastrophes” would run up a big bill for the insurance industry this year, but assured that the sector would be able to cope.

Alongside the aftermath of Hurricane Harvey, America is also grappling with the impact of Hurricane Irma, which made a devastating sweep through the Caribbean before slamming into Florida.

Chief executive Bronek Masojada said the reinsurance protections for the group were substantially intact.

He added: “Insurance exists to help individuals and companies recover from the devastation caused by events like this, and our priority is to pay claims quickly so that they can do that.

“At the same time, Harvey has also highlighted the lack of flood cover for large parts of the US market.

“2017 will be an expensive year for natural catastrophes but the industry can cope.”

Hiscox, which provides cover for around 60,000 homes in the UK, said it would also provide an estimate for the cost of Hurricane Irma once the impact of the event was fully understood.

He added: “Insurance remains a cyclical business and after a long period of price reductions, insurance rates in the affected areas and in specific sectors such as large property are likely to increase.

“In the wider global insurance market for large risks, we expect rates to stabilise and begin to increase.”

NOAA's GOES East satellite capture of Hurricane Harvey shows the storm making landfall shortly after 10:00pm CDT on August 25, 2017 on the mid-Texas coast
NOAA's GOES East satellite capture of Hurricane Harvey shows the storm making landfall shortly after 10:00pm CDT on August 25, 2017 on the mid-Texas coast (Image: Getty Images North America)
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Dairy Crest costs eased by strong cheese demand

Cheese and butter maker Dairy Crest said it remains on track to boost half-year profits despite feeling the squeeze from rising cream costs.

The firm said Cathedral City would churn out double-digit volume growth for the six months ending in September, thanks to a strong customer appetite for the “UK’s leading cheese brand”.

However, sales of butter brand Country Life took a hit after the firm rolled back promotional activity in response to the soaring cost of cream.

Dairy Crest, which also owns Clover and Frylight, said half-year profits looked set to beat last year and expectations for the full year remained the same. Chief executive Mark Allen said: “Cathedral City has had a strong first half of the year, delivering good volume and value growth and strengthening its position as the nation’s favourite cheese.

“This performance has more than offset the impact of further input cost inflation in the butter business.

“Overall, first-half profits are expected to be ahead of last year. “Our profit expectations for the full year are unchanged despite input costs remaining high. “The strength of our brands and focus on quality, innovation and efficiencies mean that we remain well positioned to deal with market conditions.”

Cathedral City Dip and Go. Strong Cheese demand is helping owners Dairy Crest
Cathedral City Dip and Go. Strong Cheese demand is helping owners Dairy Crest
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What's the FTSE latest?

The FTSE-100 index at 8:15am was up 25.87 at 7241.34.

The pound at 8am was 1.3592 dollars compared to 1.3577 dollars at the previous close. The euro at 8am was 0.8790 pounds compared to 0.8808 pounds at the previous close.

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PwC posts record revenues of £3.6bn

Investments in people, new technologies and the growing regions have steered PwC to record revenues.

The professional services firm reported record revenue of £3.60bn for the year ended 30 June 2017, up 5% from £3.44bn last year, as the firm continues to invest in people, technology and its regional presence in response to client demands.

Kevin Ellis, PwC chairman and senior partner, said: “Overall, business performance was solid in a challenging and complex market. We continued to invest significantly in our core and digital services, new technologies and create jobs, despite a slowdown in some sectors due to uncertainties related to the EU Referendum result, US Presidential and UK General election.

“We saw high demand from UK and overseas clients for our insurance, regulatory and real estate services, as well as for supply chain, transaction services and cost reduction support. Across the UK, we grew strongly in Northern Ireland, Scotland, Midlands and the South East.”

Profits for 2017 were £822m, down 1% on 2016, as the firm continued to invest heavily in people, technology and growth areas.

The average distributable profit per partner before tax was £652,000, down 8% from £706,000 last year, as the overall number of equity partners increased to 953, from 926 last year.

Bill MacLeod, PwC’s office senior partner in Newcastle, added: “It is rewarding to see the regions continue to play their part in helping PwC deliver continued growth with the North East no exception.

“In spite of the continued economic uncertainty businesses remain optimistic and focused on the potential opportunities ahead.

“Our Newcastle office has delivered another strong performance this year particularly on the back of a number of substantial transactions we worked on including Parkdean, Fine Industries and CAV.

“We have continued to invest in technology and our people, supported by record levels of recruitment and senior promotions, with two new partners and three new directors, to ensure we are best placed to serve new and existing clients from both traditional and emerging sectors.”

Bill Macleod, Senior Partner of PWC, Newcastle Upon Tyne
Bill Macleod, Senior Partner of PWC, Newcastle Upon Tyne
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