Stonegate

Since the last blog there have been changes in the financial world that have effected Newman Gauge Design; after the initial shifting of corporate debt in Punch Taverns, the impression was that the work would die down for a while, which they have on the Punch Side. However with the Punch brand deciding not to invest; there has been activity in other brewery brands, particularly Mitchells & Butler. M & B are another important client of Newman Gauge, a lot of work comes for the lower brands of this company such as Sizzling Pub Co. and Crown Carveries; this work load is steady and there is some talk of more investment and change in these brands.

However, M & B have agreed a deal to sell 300 of there pubs at various locations to another company that has started under the name Stonegate Pub Co. With the previous connections at M & B, Newman Gauge have acquired some initial design work from the new company investing to change the brand of various pubs. 

The first set of investment is at a low level with Stonegate investing to change various O'neills on the high street to Molloy's with a small investment of 300k for these outlets they have purchased, a simple name change and possible low budget refurbishments. 

Molloy's Logo

 http://www.caterersearch.com/Articles/2011/01/31/336822/Stonegate-launches-Irish-pub-brand-Molloy39s.htm

Punch Taverns

When I first started at Newman Gauge a large portion of their work was coming from breweries investing in pubs to drive brands forward and in turn produce more of a profit. A large section of this work was coming from Punch Taverns; the project we were working on were from 30,000 pounds and upwards, the investments are high so therefore fees aren't high but it is still an income for the business. 

However, with the economic climate being unstable Punch decided to make some changes to the company and move their debt around to reduce costs etc. in order to push the brand forward and reduce the risk of losing more money.

This can either have an positive or negative effect upon the design industry and in particular Newman Gauge; if they sold some of their pubs they could then invest in the remaining pubs and create work for design practices, or they could just move their debt by leasing pubs or selling and paying of debt. 

They decided to do the latter, merging brands, and therefore the work load from Punch Taverns decreased dramatically; they put a large majority of their investment on hold including Newman Gauge's work. 

http://www.thepublican.com/story.asp?sectioncode=7&storycode=69246

Financial

My last blog post was regarding a specific client of Newman Gauge; this was a good way to recognise how a large and successful client can affect the company but also understanding the importance of a working relationship.

I will now focus the blog on how financial aspects effect Newman Gauge; the design industry is led by finance; simply because people need to invest in order for design companies to have work and projects to work upon; in turn bringing in an income. Therefore when financial situations change in either and positive or negative way for a client this can have an impact directly upon the design industry. 

To conduct my study of the financial impacts to Newman Gauge from potential clients I will use various sources such as The Publican, which is a website covering all news and aspects of the pub trade, also I will use information gained from talking to the director of the company, Brian Gauge, who has close contacts with senior members within many different organisations within the leisure industry.


I will aim to keep the information up to date and in chorological order.

Bourne Leisure

Newman Gauge have a varied portfolio of work, a large client is Bourne Leisure who own holiday resort companies such as Butlin's; who have provided repeat business for the company with Newman Gauge being the lead designer for the interior scheme of the last new build hotel completed at the Bognor Regis site, The Ocean Hotel & Spa. Through the contacts Newman Gauge have and the relationships that have been built; this creates a good connection for future work and any refurbishment/ maintenance of previous designs.

The Ocean Hotel & Spa
www.butlins.com/accommodation/hotels/ocean-hotel.aspx

 Typical Room Layout

 

Ocean Spa

 

Restaurant

 

Bedroom

Newman Gauge was responsible for all the above interior schemes for the new build hotel at the Bognor Regis site.

Butlin's is currently one of the most successful holiday resort company's in the UK with profits increasing 

http://www.guardian.co.uk/business/2010/sep/19/butlins-dividends-boom-britons-holiday-home

They are a company who are wanting to invest to increase there profits and move forward in the market; this is a client who wants to change their image and doing so costs money; therefore there is a lot of promise for designers who want to be part of the change. 

From seeing how the company is linked with companies such as Bourne leisure, I have become aware of the importance of keeping in contact with a client and how to keep relationships strong as there is often the chance of repeat business; when times are hard and the opportunites for work are low, as it there are currently, the state of these relationships could make or break a design company. For large projects such as new build hotels there are large design fees, the competition for these fees can be fierce so again it is important to forge a positive working relationship.