They’re the Newport based accountancy firm that is part of an international network: the Moore Stephens South team say they’re still “small enough to care”. Tom Stroud finds out more
We all know that taxation is one of only a small handful of certainties in life; we also know that paying tax is something we’ve lived with for hundreds of years. That doesn’t mean it’s entirely foregone though; the rules are changing all of the time and with “tax avoidance” being a key issue in the recent election it’s raised moral questions for many people in all walks of life.
Accountancy is changing too. Like most other sectors, the marketplace is evolving and reacting to global trends. Moore Stephens South in Newport is a great example; a business that has grown through mergers and acquisitions, still employing a team of knowledgeable Islanders, while also a part of the Moore Stephens national and International network which has offices in 100 countries. Moore Stephens South comprises branches in Chichester, Guildford, Salisbury, Southampton and Newport.
“Business is good and it’s an exciting time with lots of opportunities,” says Sue Lucas, Managing Partner of the Newport office. “We’re Chartered accountants, first and foremost, so we know how to analyse and improve profitability as well as reduce costs and we work hard to achieve this for our clients. But we’re also business advisers and owner managers ourselves. That’s why family and owner-managed businesses represent 80 per cent of our client-base. They come to us because we understand the issues they’re facing and we look after them by considering the issues and finding practical solutions. We’re here to help and pride ourselves on our friendly, personal, partner-led approach.”
Moore Stephens South offers accounting and business support, auditing and compliance services across a range of sectors including retail, manufacturing, technology, education and international businesses based here on the Island. Locally the team has particular expertise in construction property and development, charities, farming and professional practices. Technical specialist areas also include capital allowances and claims for integral features especially around property transactions. Currently they’re advising on Research and Development too – “people don’t even realise they can claim for these tax reliefs – it isn’t just technology firms,” Sue explains.
Sue joined the firm in 1992 and she specialises in the property and construction sector, where she can see that business activity and margins are beginning to improve.
“Market forces have been impacting on margins. It’s highly competitive and construction has definitely been hit hard, but it is starting to show a nice turnaround now. Generally I’d say we’re well and truly out of the recession, although the Isle of Wight takes a little longer to pick up than the rest of the south east. The Island has more confidence and entrepreneurs are now willing to invest in and expand their businesses. There’s a lot more activity in new projects across a whole breadth of different sectors and our client base reflects that. Businesses with a core strength, a good brand and a good service have continued to thrive, even in the recession.”
“We’ve experienced so many different economic cycles for businesses across many sectors,” Sue says. “Many entrepreneurs are driven by their own beliefs. We’ve always offered a high quality, pro-active and supportive service to meet their individual requirements. Our clients have plans and know where they want to take their businesses. Some businesses have more than just survived the recession, others will want to put the right measures in place to help them both recover and grow. Clients want a safe, steady pair of hands and some solid guidance.”
The last decade has been a time of change for most businesses. Back in 2006, following a merger with the Moore Stephens office in Salisbury, the firm joined the Moore Stephens network and then a year later merged with long established Island accountants Hook and Co, taking the team up to 24 employees. Since then business has continued to grow, with turnover doubling in the last 15 years.
The team is growing too, with three trainees and one member of staff newly qualified through internal training programmes. Moore Stephens is also about to take on two further trainees this summer. The whole team in the Newport office at St John’s Place enjoy living on the Isle of Wight and many are Island born and bred.
“We grow our own people and we train them to a high standard,” Sue says. “We’ve been particularly successful at training people, even through the recession. My 17 partners in Moore Stephens South had a wide range of training experiences from smaller and larger practices and we like the flexibility of running local offices within a larger network.”
For Moore Stephens South the last two decades have seen a huge investment in IT and systemisation, which allows them to use integrated software which keeps track of assignments, deadlines, workflow and also employee development. Every team member carries out a minimum of a week’s Continuing Professional Development to keep them update with changes in the marketplace.
“Keeping abreast of new legislation is always a challenge,” Sue says. “The Pension Reform Act will mean that pension savings can also be used for inheritance tax planning, which is a huge positive impact and gives a range of opportunities to owner managed businesses. At the same time, pension “auto-enrolment” compliance is going to affect every single employer. To help clients adapt to meet this challenge, we’ve developed a solution that assists with the payroll function and makes sure the business is fully compliant with the new rules.
“With the current political debate about morality versus legality in tax planning, and with a changing HM Revenue and Customs stance, compliance is key. Tax avoidance might be interpreted by the government as immoral, whereas a tax barrister will see such planning as completely legal and above board. For us it’s about offering an individual service to each client. Interpretation will depend on what each individual feels comfortable with.”
Sue heads up the Newport office with her partners Kevin Cooper and Esme Shakeshaft. Sue currently sits on the IW Chamber Of Commerce’s Investment and Development board while Esme sits on the Chamber’s IW Lottery Loans panel. “We are big supporters of the IW Lottery,” Sue says. “We’re all active in the community outside of work too. We are all also involved with local charities and take active roles in voluntary organisations, and play our part in Island life.”
Although the local office is part of an international network, the local team know that being involved and staying in touch with what’s going on at grass roots level is hugely important.
“Our message is ‘we’re small enough to care yet large enough to cope’. We work hard to demonstrate this in everything we say and do. Larger firms find it hard to offer a personal service, which is one of our strengths here. We try to see our clients on a regular basis with a proactive service.”
First published in the July 2015 issue of Island Business magazine.
