Business
UK Unicorns Need to Go Global

Geoff Anderson, CEO, PixelPin
There’s a lot of uncertainty around Brexit and wherever there is uncertainty, nerves and panic can often be found not too far on the horizon. The genie is out of the bottle now and whatever happens, it’s safe to assume that there will be changes to how we do business in Britain.Companies need to start looking at how to not only protect themselves but also flourish in this brave new world.

Geoff Anderson
The tech industry – particularly in areas such as AI and Fintech – has become something of a jewel in the UK economy’s crown of late. Recent figures revealed that more than a third of Europe’s fastest-growing tech firms are now based in Britain while the country also produced 13unicorntech companies over the past year. But with a volatile economic environment at home and many businesses and investors becoming wary of overstretching themselves, how do today’s success stories maintain their momentum and the next wave of exciting start-ups replicate that success?The answer is to think bigger.
At a time when many are looking inward and trying to protect what they have, tech start-ups, in particular, should be bolder and go global.
Many businesses when starting out understandably begin local and gradually expand into new markets and areas as they gain traction. In all fairness, this is quite sensible. However, by looking further afield, there might be far greater opportunities should the right approach be taken. If we look at VC funding, for instance, the potential becomes clear. While the UK and Ireland led the way for VC funding in Europe in 2018 (€7.7billion), this was less than a third of the overall total for the region (€27.8billion).
And that’s just Europe. The US is widely accepted to be the global leader in VC funding thanks to a less risk-averse culture making it an attractive choice for many start-ups. The APAC region, meanwhile, continues to more than pull its weight when it comes to VC funding, propelled by China’s economy, growth in India and the established presence of Japan and its globally recognised goliaths of industry. Where a company decides to look depends on their unique circumstances but there is a strong likelihood that the ideal investor might be the one 4,000 miles away rather than 40.
At PixelPin, we chose to look to Asia as we were getting the company off the ground. Our decision was founded on a few key points, not least the cultural fit of our visual password replacement solution which immediately resonated with prospective partners and customers in countries including Japan and Taiwan. While we continued to pursue opportunities in the UK, it became clear that the potential for growth and success would be far greater if we pursued both avenues.This should be the first step when looking abroad for investment or to grow a business: what makes you relevant? Any successful business will be based on a solution which meets a clear need and it’s no different in this case.
Is there a country with fewer competitors for example, or perhaps somewhere that demand is outweighing the supply? Plan around what resources you have available: if you are a small startup, you may have employees with a network that you can tap into. Getting the team together to propel an export plan forward will bring out skills in your team you never knew existed.
There are additional considerations when thinking global opposed to local too. The first and most obvious will be language. Communication is critical and getting this right is vital to success. Miscommunication and misunderstandings can cause delays and hiccups that a fast-growth business can ill afford. As such, having local employees or working with a partner to facilitate your moves into a new market is a wise investment. You might find you already have team members with experience and language skills in a relevant market, or a champion in a potential customer who want to help. This will also help navigate any additional cultural considerations such as local holidays and festivals.
If you’re able to identify the opportunity and have access to the resources to service it, exporting can draw a whole new revenue stream in markets that are significantly larger than the UK. It also opens up avenues to wider talent pools, partnerships and inspiration for innovations in product and company culture.
If you have a great product then why wouldn’t you take it abroad? While the urge to “stick to what you know” might be a strong one, there are significant opportunities beyond these shores that could be the difference between being the UK’s next unicorn and one of the crowd.
Business
UK delays review of business rates tax until autumn

LONDON (Reuters) – Britain’s finance ministry said it would delay publication of its review of business rates – a tax paid by companies based on the value of the property they occupy – until the autumn when the economic outlook should be clearer.
Many companies are demanding reductions in their business rates to help them compete with online retailers.
“Due to the ongoing and wide-ranging impacts of the pandemic and economic uncertainty, the government said the review’s final report would be released later in the year when there is more clarity on the long-term state of the economy and the public finances,” the ministry said.
Finance minister Rishi Sunak has granted a temporary business rates exemption to companies in the retail, hospitality, and leisure sectors, costing over 10 billion pounds ($14 billion). Sunak is due to announce his next round of support measures for the economy on March 3.
($1 = 0.7152 pounds)
(Writing by William Schomberg, editing by David Milliken)
Business
Discounter Pepco has all of Europe in its sights

By James Davey
LONDON (Reuters) – Pepco Group, which owns British discount retailer Poundland, has targeted 400 store openings across Europe in its 2020-21 financial year as it expands its PEPCO brand beyond central and eastern Europe, its boss said on Friday.
The group opened a net 327 new stores in its 2019-20 year, taking the total to 3,021 in 15 countries. The PEPCO brand entered western Europe for the first time with openings in Italy and it plans its first foray into Spain in April or May.
Chief Executive Andy Bond said its five stores in Italy have traded “super well” so far.
“That’s given us a lot of confidence that we can now start building PEPCO into western Europe and that expands our market opportunity from roughly 100 million people (in central and eastern Europe) to roughly 500 million people,” he told Reuters.
To further illustrate the brand’s potential he noted that the group has more than 1,000 PEPCO shops in Poland, which has a significantly smaller population and gross domestic product than Italy or Spain.
The company, which also owns the Dealz brand in Europe but does not trade online, has already opened more than 100 of the targeted 400 new stores this financial year.
Pepco Group is part of South African conglomerate Steinhoff, which is still battling the fallout of a 2017 accounting scandal.
Since 2019 Steinhoff and its creditors have been evaluating a range of strategic options for Pepco Group, including a potential public listing, private equity sale or trade sale.
That process was delayed by the pandemic, but Steinhoff said last month that it had resumed.
“The business will be up for sale at the right time. It’s a case of when, rather than if,” said Bond, a former boss of British supermarket chain Asda.
Pepco Group on Friday reported a 31% drop in full-year core earnings, citing temporary coronavirus-related store closures.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were 229 million euros ($277 million) for the year to Sept. 30, against 331 million euros the previous year.
Sales rose 3% to 3.5 billion euros, reflecting new store openings.
($1 = 0.8279 euros)
(Reporting by James Davey; Editing by David Goodman)
Business
Fashion-focused livery launch reveals new colours for Gasly, Tsunoda in 2021

Scuderia AlphaTauri debuted their colours for the 2021 Formula 1 season as drivers Pierre Gasly and Yuki Tsunoda unveiled the team’s new look with the livery for their AT02 racecars. The setting was a fashion-forward launch in the all-new showroom of AlphaTauri, Red Bull’s premium fashion brand.
Salzburg (AUSTRIA) – Formula 1 team Scuderia AlphaTauri served up a stylish preview of the new F1 season with a presentation of its 2021 livery alongside key looks from the upcoming Autumn/Winter 2021 collection of Red Bull’s premium fashion brand, AlphaTauri. The launch – held at AlphaTauri’s new showroom in Salzburg, Austria and presented digitally – marked the first time that drivers Pierre Gasly of France and Yuki Tsunoda of Japan have appeared together as teammates.
After a successful first season racing in AlphaTauri colours, the Italian outfit is looking to challenge the top of the ultra-competitive midfield in 2021, and the two young drivers have been assigned clear-cut roles. Gasly is Team Leader. The 25-year-old, who made his Formula One debut with the team in 2017 under its former name, Scuderia Toro Rosso, has earned two F1 podiums. During the 2020 campaign, Gasly’s maiden win at Monza was a defining moment for him and the team under its new name.
Tsunoda, 20, is the first Japanese driver to race in F1 since 2014, his promotion coming off the back of a fast, four-season trajectory from winning the 2018 F4 Japanese Championship and finishing third in the 2020 FIA F2 Championship to entering the top-level ranks this year. Expectations are high for his rapid style of learning to complement the experience of Gasly.
“The decision to go for Pierre and Yuki in 2021 was taken because Scuderia AlphaTauri’s philosophy is still to give talented young drivers from the Red Bull Junior Program the opportunity to step up to F1 and to educate them – this is why Yuki now gets his chance,” explained Team Principal Franz Tost. “With Pierre on Yuki’s side we have an experienced driver, who can help our Japanese rookie to develop faster, but at the same time we can aim for good results. I think this pair is the best possible scenario to achieve both our targets, and I’m also confident this will be a successful one.”
In 2020, Scuderia AlphaTauri won best livery by a landslide, and the team’s all-new, matte blue and white racecar livery took center stage with the drivers at the fashion event, anticipating the 2021 model that will debut at pre-season testing in Bahrain on 12 March. The test is the precursor to an unprecedented 23-race schedule, and in preparation for the demanding calendar both drivers have spent time at Red Bull’s Athlete Performance Center for intense fitness testing.
“I’m ready to take on the role of team leader. Yuki is a very quick driver, and he will help us move the team forward – we will work together to achieve that,” said Gasly, the team’s all-time top points scorer. “I really believe last year was the team’s best in terms of the way it worked, the development, the performance and the way it managed the race weekends. I’m always hungry for more, and I’m sure we can achieve great things in 2021.”
Tsunoda, who was honored with the Anthoine Hubert Award for best Formula 2 rookie in 2020, added, “I’ve been lucky enough to spend some time with Scuderia AlphaTauri ahead of the season, so I’m already developing strong relationships and learning a lot from them – including Pierre, who is an incredible talent. My main goal is to learn quickly and deliver results as soon as possible, and I’m really excited to get started.”
The launch at the AlphaTauri Showroom not only gave Gasly and Tsunoda a preview of the AlphaTauri Autumn/Winter 2021 fashion collection, but the drivers had the chance to select their new off-grid looks ahead of the season start.
Ahmet Mercan, CEO AlphaTauri, summarized: “This is a triple reveal at a unique point of time: a new AlphaTauri Showroom where fashion meets F1, a first look at the AW21 AlphaTauri collection and the unveiling of the new Scuderia AlphaTauri F1 livery and driver pairing.”
Scuderia AlphaTauri fans don’t have long to wait for racing action: The FIA Formula 1 season kicks off at the Bahrain Test on 12-14 March, in preparation for the Bahrain Grand Prix on 28 March.