The improving economic climate has seen the funds of the UK's final salary pension schemes move into a surplus for the first time in nearly two years.Figures from the Pension Protection Fund (PPF) revealed that the 7,400 pension schemes achieved a collective surplus of £0.3 billion in March.This compares with a deficit of £15 billion in the previous month. For the same period last year, the deficit was £242 billion.The last time there was a surplus was June 2008.The picture is not so rosy, however, when individual schemes are considered. Over two thirds (68.5 per cent) are still in negative territory, with just 31.5 per cent in surplus.

The reason for the overall improvement is that share prices have risen at a faster rate than the costs of paying out funds to scheme members.The PPF report said: "Total scheme assets amounted to £915.4 billion in March 2010, representing an increase of 3.9 per cent over the month and an increase of 22 per cent over the year to March 2010."Meanwhile, scheme liabilities decreased by 7.6 per cent over the year to March 2010, to £915 billion, but increased 2.1 per cent over the month from £895.9 billion in February 2010."Matters have been further helped by a change in the way that probable future costs of pension schemes are calculated, a move that has shaved some 8 per cent off scheme liabilities, or the equivalent of £70 billion.

The UK economy seems to have sidestepped the dangers of a double-dip recession but still faces many risks, a new study has claimed. According to the British Chambers of Commerce's latest quarterly survey, the economic upturn is on course. On the downside, however, the survey also found that business investment is declining, while job losses in the manufacturing sector continue to climb. The survey, which took in some 5,000 British firms, revealed that the service sector, which comprises the largest segment of the economy, enjoyed an improvement in both domestic and overseas sales during the first quarter of the year.

 Manufacturers, though, experienced stagnation, with sales barely positive and orders still negative. Employment over the last three months in manufacturing recorded a large fall, from +3 in the fourth quarter of 2009 to -16 in the first quarter of 2010. Worringly, investment in plant and machinery, and cash flow are still negative across both sectors, the BCC said. David Frost, the BCC's director general, described the results as mixed but containing some positive features, such as the service sector's improvement and the relatively strong export balances for manufacturers. Mr Frost said: "Businesses are showing resilience despite difficult and uncertain trading conditions. Confidence is building, and the government must nurture this with well-thought out policies that support business growth and job creation. "Special attention must be paid to bolstering our exports in goods and services, which will help rebalance the economy away from an over-reliance on debt and the public sector." Mr Frost urged the post-election government to avoid additional business taxes that could stifle recovery, arguing that the 1 per cent hike in employers' National Insurance Contributions, planned for 2011, should be scrapped and replaced by a 1 per cent rise in VAT. 

 The BCC also wants to see a three-year moratorium on any new employment legislation. David Kern, the BCC's chief economist, added: "These results support the view that GDP growth stayed positive in Q1, but the recovery is set to remain fragile and sluggish. While the upturn in the service sector is gradually gathering momentum, the manufacturing sector is still struggling to enter the recovery phase." Mr Kern highlighted the deterioration of investment levels in plant and machinery as a cause for concern, saying that, unless the sharp declines in capital investment are reversed, the UK's productivity will fall further and the economy will lack the capacity to meet growing demand when the recovery gains momentum. Negative cash flow balances suggest many businesses are still facing serious financial pressures, which are due more to lack of demand rather than to reluctance on the part of the banks to lend. Mr Kern concluded: "Whatever the outcome of the election, a new government must produce a more credible medium-term plan for cutting the country's huge Budget deficit and reducing spending. This will strengthen Britain's credit rating, make it easier for the Bank of England to keep interest rates low for a prolonged period, and underpin the recovery."

The traditional sick note is set to be replaced on 6 April 2010 by a new form of medical statement, called a statement of fitness for work or fit note.  The intention is that the new fit note will help to facilitate an employee’s return to work after illness, thereby reducing sickness related absence amongst the workforce.   

A doctor will be able to advise on the fit note whether an employee is either:   

a) Not fit for work 

OR

b) may be fit for work taking account of the following advice.    

If the doctor advises that option 2 is appropriate, the doctor can suggest ways for the employer to assist an employee’s return to work, for example, a phased return to work, practical adjustments in the workplace, altered working hours or a variation in an employee’s normal duties.   

The doctor’s suggestions are not binding on an employer or an employee, and ultimately it is the employer (and not the doctor) who will be entitled to decide whether any changes suggested by the  doctor and aimed at facilitating the individual’s return to work can be accommodated.    

Also from 6 April 2010, a medical certificate can only be issued for a three month period (instead of the current six months) during the first six months that an employee’s health condition subsists.   

Well all the indicators point to it, over the last two months every recruitment indicator has shown an upward trend, so whether it’s the volume of job orders or the volume of new starters all point to this re-assuring trend. How does this affect candidates? 

Well if you are thinking of looking for work now does appear to be the time to make the move, clients are looking to recruit they are interviewing and making offers to candidates. Our own internal figures show a 30% increase in job orders this quarter compared to the last quarter of 2009, but perhaps more importantly the numbers of people starting new jobs has increased by over 25% in the space over 3 months; not bad for green shoots!?   

The market is still difficult but there is a confidence returning to it that has been missing for the last 18 months especially within real estate and banking.   

If you are thinking of moving on…call us we would happily advise you on your options  

What is Financial Modelling and why is it so important?

Financial modelling (also called excel modelling or business analytics) is a structured approach to decision analysis in order to understand the drivers (inputs) and outcomes (outputs).

Why is Financial Modelling useful?

As individuals and businesses, many decisions we face regarding money are much too complicated today to do accurately on the back on an envelope.  There are too many inputs and most importantly, many of these are uncertain, in other words there is a range from minimum to maximum on each of these inputs.  This means there is a lot of uncertainty or risk.  Understanding this risk is critical for business success.  Otherwise you end up offering loans to people that can’t service them and potentially causing global financial melt down. In short, financial modelling brings clarity to business decisions so that you can make the best decision available.

Sounds great in theory... But does it happen in practice?

Yes! 

In markets that are exposed to high levels of complexity or high levels of risk or both, successful companies are making financial modelling a core and differentiating skill.  Greater identification and understanding of the risk drivers enables focused work in the most value adding areas.  Also, and perhaps more importantly, those organizations that aren’t leveraging the power of business analytics will never price the risk as accurately and will therefore make worse decisions on average that those businesses that have taken the time to understand the risks.

How do successful organizations use modellers?

Successful organizations recognize financial modellers for what they are.  They are analytic and commercially minded staff that know the ins and outs of a business decision better than anyone else.  They’ve read every documents, they’ve understood them so well they can model it, and they know how all the aspects of a deal relate to offer value. Increasingly modellers are recognized as being among the most commercially minded and judicious resources an organization may have.  Consequently they are coming out of the back office and taking a central role in day to day operation and business strategy. Should I consider a career in Financial Modelling? Financial modelling can be an excellent place to start a career.  You learn the nuts and the bolts of a business and so understand the key drivers of success better than anyone else.  You’ll also get great exposure to all the other departments and so be able to make an informed choice about where you are most interested in working.

What is a good modeller?

Modellers are an interesting mix of being highly analytical, numerate and detail focused but also excellent communicators as 50% of their job is talking to subject matter experts (lawyers, accountants, engineers) and working out how to model that aspect of a deal.

What is good modelling?

Good financial modelling in Excel has a number of components: Good financial modelling in Excel has a number of components:

1. Ability to represent a real life problem in excel at an appropriate level of accuracy
2. Ability to build and structure an excel model so that it is robust and flexible
3. Ability to use their model to determine and communication value and risk drivers
4. Ability to format and structure a model so that it is a useful communication tool

Can I get some experience of financial modelling in Excel?

Over the last 20 years, a best practice approach to modelling has been developed to help modellers get the most out of excel for the minimum effort. The guidelines are fairly simple, but the application of them can be a bit more complicated. 

If you want to learn more about best practice modelling check out www.indexmatch.co.uk  who are run by modellers for modellers. We know that a SHOCKING 80% of candidates fail modelling tests.  

IndexMatch offer excellent training that will help you be in teh 20% that succeed

To Bank or Not to Bank               

So the people that have brought the country to its knees are essential to getting us moving forward. What should the government do? Tax them too much and they may up sticks and leave or star performers might simply move to “non-government” owned banks; however there seems to be an appetite for public/electorate revenge on these people that caused all the problems.

I don’t have all the answers but as a recruiter I know the value of people to any organization and Mr Darling and Mr. Brown need to strike the right balance ensuring the excesses of the last 10 years are stopped but not starting a reactionary backlash that will ensure London looses its place as a world leader within the Financial Services industry. We need our part owned state institutions to stay competitive and successful for many years to come..  

Any thoughts let us know

The last month has seen the papers full of comments concerning Bankers and their bonuses…..how many column inches can one subject fill? Few people would argue that in recent years a % of bank bonuses have been over the top and in some cases downright disgusting, however how many people would argue that the vast majority of bonuses are justified and the issue is the value of these bonuses?  

The next 12 months are going to be key to UKPLC and the issue of bonuses will not go away especially when the now government owned and funded institutions are refusing to pay bonus or if they are they are paying them over three years in shares. As a recruiter I have seen a flood of CV’s from extremely talented professionals looking to leave these institutions…It seems simple, there are two choice’s one is a political digestible and political correct institution void of quality that will struggle to pay the government back the money it is owed because many of its best people have left or some kind of middle ground that rewards people responsible for doing a great job and by doing so retains these quality individuals and in turn helps re-pay the debt quicker.  

Unfortunately these institutions have already made the decision and I would suggest that “WE” will regret for many years to come.

Top 10 CV Writing Tips 

In this competitive job market everything can help…  

1- Spelling and grammar

The most common mistake and yet the most important thing to get right to make a good first impression. Get your CV checked and checked again  

2 - Where to start…

Recruiters want to know what you’ve done recently, so list your work experience in reverse chronological order and place your educational achievements after your work experience.  

3- Keep it concise

The average recruiter spends only a few minutes scanning a CV, so keep it to two pages or three at most for those in senior positions and attach a deal sheet if possible.  

4- Formatting

Remember what looks great on your PC screen might not display well elsewhere so keep formatting to a minimum. Recruitment consultancies often use their own templates, so make sure your CV is easy to copy and paste, and preferably in Word.  

5- Specify the key details

Great project manager, good communicator, dedicated employee – all great skills but worthless unless you demonstrate what you achieved. Ensure everything you say is quantified by specifying the actions you took and the results and/or benefits.  

6- Explain gaps in your CV

Your CV should read as a continuous, chronological flow of activities, so make sure you explain any gaps such as travelling, maternity leave, sabbaticals etc.  

7- Redundancy

In the current economy, stating that you were made redundant doesn’t reflect badly on you. And if you don’t include it the reader might assume you were fired.  

8- Exclude irrelevant information

If you’re unsure whether to include something, ask yourself: does this impact my ability to do the job? If no, leave it off. This includes: age, gender, marital and parental status and religion.  

9- Interests and hobbies

Although your hobbies and activities may be really interesting, unless they’re relevant to the role or demonstrate a particular skill, keep this section to a minimum.  

10- More than one version of your CV

Best kept secret - every role is different, so tailor your CV to that role. Go through the job spec and emphasise your relevant skills and experience on your tailored CV.

Best of Luck!

We hope our Top Ten CV Writing Tips helps

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or email: enquiries@circlesquare.co.uk

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 Accountancy & Finance Salary Guide 2013

SO Baroness Scotland falls foul of immigration law and is fined £5000.00. Her cleaner did not have the correct visa therefore she was not legitimately allowed to work in the UK. People often criticizerecruitment consultancies with good reason; however such checks are standard practice for agencies in the UK along with checking both professional and educational documentation and taking a reference…..

Moral of the story Baroness Scotland- Use an agency and don’t get fined £5000 as the responsibility is all ours under the 2003 Agencies Act to ensure all these BASIC checks are in place

With the staff attrition rates we have seen in real estate teams and related products in the last year you would be totally in your right to think real estate is over. However since January, we have seen there have seen ‘green shoots’ of real estate returning. They’re doing so not in the traditional format of the Big Banks and the traditional Advisory and PE businesses, but in new and exciting start-ups and other businesses.

They have looked at the market, seen the gap, and are now expanding into it. This is not only in debt restructuring but general real estate advisory. Will these start ups and new businesses really be able to take advantage of where the market goes and will it go the way they are expecting?

The debate seems to focus on when debt will come back to the market, where it will come from and who will be in a position to arrange that debt (client side). Right now, banks are unwilling to make loans and lack the associates and analysts to structure finance for their clients (I heard a rumour that one particular bulge bracket missed a deadline by two week due to lack of resources).

At the same time, the clients and PE houses do not have the resources (or the desire) to pull all the information together (the due diligence, the memos and the term sheets). Both these areas are ripe for start-ups to exploit. Equally, the source of funding has changed from the European Banks to the US Banks (admittedly only a few), the sovereign wealth funds, newly raised funds and private investors (due to the low value of sterling and subsequent decrease in the price of Central London Property for overseas investors). This is all creating demand for a new breed of real estate professional.

The new market needs people who can not only understand the financing and the numbers behind the funding, but can also operate from a cost saving perspective. In my opinion, therefore, real estate is coming back: New businesses out there that are going for it. And I suspect that established banks which have cut to the bone will be hiring like crazy into their real estate teams in Q1 2010.