Episode 70 Show Me the Money

accolade for best actress. Now it is time to Show Me The Money

This is Show Me The Money, your weekly guide to who is making the

catch, how they are doing it and what it means for the way we work.

Screening tonight, our main feature, Tim Richards. He runs Vue Cinemas.

One of his picture houses has the biggest box-office in Britain. Also

starring Rosie Wolfenden, the sparkler behind the British

jewellery company Tata divine, with plans for a big production in

America. I am always scripting the best lines and keeping a sharp eye

on the price of popcorn, money journalist Lucy Tobin from the

London Evening Standard. Another day, another attack on the

chancellor's plans to tax refunds for people who give to charity.

Over 40 of the most generous donors have written to the Sunday

Telegraph, saying that the plans will mean less money for good

causes. Charities, universities, even senior Tory party money men

agree. But the government says some of the super-rich donate to dodgy

charities to save tax, not to do good. Tim, are you one of the

super-rich that gives to charity and enjoys the tax break? Not yet.

But this does feel like another coalition compromise. I am chair of

a 20-year-old children's charity, and with our charity 80% of our

funding comes from 5% of the donors. Something like this would have a

profound impact on our charity. And it is not unique. Is that the

funding model for most charities, that the most money comes from a

small number of people? Bow charity is not unique. You may be seeing a

few bad eggs who take advantage of the system. But the impact this

would have feels like a knee-jerk reaction. You can't turn off the

tap that quickly. But is part of the problem. This would have a

major impact on charities today if it went through. I am the argument

that charities will end up with less money if this tax break is

capped, you believe that to be true? You suspect that your charity

will have less money as a result? A unquestionably. Lucy Tobin, on one

side of the argument, there is the case that if you give to money, you

should not pay tax on it. The other side of the argument is that the

state is entitled to take tax on money earned and what you do with

the money afterwards is your business, not the government's.

s, but it is baffling that the Government has come out with this

policy hot on the heels of emphasising over the last few years

that the public purse is emptier and that the charities and private

sector need to fill the gap. We are seeing more vulnerable people

facing greater cuts and homeless people needing food and ill people

needing medicines. And the government is saying to the

charities, come and help us fill that gap, and then coming up with a

policy that disincentivise is giving. Why is the Government doing

this? Politically, it feels like a strange position where you have a

Conservative Chancellor effectively saying, we think the state should

have the money first, because it can use the money better. In it

feels like something they are floating, and that they will end up

doing a U-turn on. The condemnation is too wide for them to go ahead.

What do you think? It should be an incentive, not a reward. It would

be a shame if it had a bad impact on the arts. They are such an

inspiration to designers like us. Some of our biggest customers are

institutions, and those kinds of places would suffer under this Act.

And from your knowledge of working closely with these artistic

organisations and charities, they would be in a similar position in

that they rely on individual wealthy donors? Absolutely.

feels like the government is having an academic argument with itself

over where it should come from and whether the wealthy are giving

because they want to give or giving because of tax break. But if you

are a homeless person relying on a charity which relies on those

revenues to fill their coffers, it is irrelevant. You just want

something to come from somewhere. The government says it can't afford

it and that charities need to step in. Tim, as someone who is chair of

a charity as well as someone who knows people who give donations to

charity, can the donations from one or two wealthy people, can that be

replaced by a lot of small donations from elsewhere? Yes, but

those things take time. I know how hard we work on every donor and how

much time is spent on them. It takes a long time to build up a

donor base. It does not happen overnight, so this would have a

massive impact. This is the Big Society government. You wonder,

what happened? It is a complete left term.

In these tough trading times, here is a reminder that he should never

say never in business. The old British steel mill at Redcar relit

it blast furnace this evening, some two years after it was mothballed.

Many of the 1600 workers who lost their jobs will now be re-employed.

The first steel slabs are likely to be produced over the next three

days. The plant is now owned by the Thai company SSI.

And now some news that will smelt your heart - it is boom or bust.

Starting with this towering achievement, the world's first and

probably only sand museum. You might think it goes against the

grain, but people from around the world have landed on its shores,

and there are plenty of British icons, from the house of parliament

to old Queen Bess. Shakespeare is there as well, but they don't seem

to give a dickens about Dickens. You might need to sit down for this

- it is a shampooing robot, on trial in a city in Japan.

Sensors in the robot's hands scam the shape of the rope -- the

customer's head. The robot then washes the air with 24 "robo-

fingers". They have not yet taught the robot to ask about your

holidays or how to Cy "Oh, I know" when describing life's weekly

dramas. And say hi to hurry. He might

eventually turn into a 300 kilo beast, but now he is a cute

abandoned hippo Club. Adorable enough to get these keepers to

bottle feed him every three hours and put him in the bath after every

feed. Keepers say they have to keep him moist, as hippos spend 80% of

their time in the water when in the wild. The plan is to reunite him

with his parents, who are still living next door.

So, Lucy, the Sound Museum. What a curiosity that must be. -- the sand

museum. Remarkable that it was crammed full of British icons.

this country, we forget how big we are and how much the world

recognises some of our landmarks. As a Londoner, you can run around

town and complain about the Duke and forget to the Cup and see what

landmarks we are surrounded by all the time and how much those brands

are worth abroad. His only we could get them to take that love of all

things British and buy more British goods. That is what companies are

trying to do, branding themselves as British, because made in Britain

is a valuable commodity. Absolutely. Everything in our business is made

in Britain. And yourself to Japan? All around the world, but mostly

Japan, America, Europe and Britain. And there is a value attached to

that, if you are able to say it is made in Britain? There is a real

kudos to it. In these times, it stands for a lot. Tim, you are a

Canadian based in Britain. Is Britishness attractive? Always.

Certainly in the film industry, British films travel very well. One

of the areas the British policy review looked at last year was

whether we should have a British brand for films. With a logo. Some

of these films travel very well. Aren't they all seem as Posh, like

Gosford Park? There are the Gosford Parks, and they are balanced by The

Inbetweeners. The cheers as far away as you could get! But also a

great movie and the second highest grossing film of the year last year.

The use a technology even in the hairdressing trade nowadays - Rosie,

in your business, even though it is jewellery, you tend to think of

that as an ancient craft. But technology is key in your business,

too? In it is, but we have lots of skilled makers in Britain. All of

our jury is laser cut -- all have our jewellery is laser cut. We

decided to create our own way of making it. It is an ancient craft,

but we try and push the boundaries with technology. We use a laser cut,

does that make it look different? It gives it a very straight edge.

But it does have a different look. And because every peace is and made,

it has a quality to it that you would not otherwise have. I and

this is going to be the big technology in the cinema trade?

City on the horizon. Laser technology is the big thing in our

business. Laser projection throws an incredible amount of light on

the screen. I'm no you do not like people who stand up during movies,

but the use of lasers is an aggressive deterrent. It will

prevent them from standing up again. That brings us to the thought of

how you encourage and nurture the next generation, with the hippo.

That is something the Government has to try hard to do. We have a

generation coming out of university who can't find jobs, and

entrepreneurial isn't is the key. The number of young people who are

interested in setting up their own businesses and going down the

imitative route and starting something you could be great for

Britain. Hopefully, they can learn from tonight's stories as

inspiration. Are they looking at being entrepreneurs because there

is nothing else available, or are they looking at it and thinking,

this is the best choice? It had gone beyond the first idea. Yes,

there are fewer jobs out there, which will encourage people. But on

the other hand, it is great to start something that you can call

your own. You guys will know better than me, but to have a baby and

watch it grow and Hiram people and have your own flexibility and not

have to be a corporate drone sounds appealing. But you were a loyal

once! There has been an incredible gravitational pull to the City with

the best of our students over the last 30 or 40 years. Showing that

there is an alternative, that there is a way of being successful and

having a lot of fun as well, being an entrepreneur and getting some of

those young and talented students into business will get this country

back on its feet. What was the trigger for you? What made you

leave the law behind and become a cinema entrepreneur? I have always

loved movies, so I am fortunate to be in the business I love. But for

me, during the last recession in 1990, I was a lawyer. A mergers

lawyer. Yes, and business had just stopped. Then I answered a very

small ad in the Financial Times to join one of the studios. You could

have missed it. It is amazing how things happen. Just one of those

There is a step from going into the cinema business and then deciding

to set up a company that becomes one of the dominant players in the

cinema trade. What made you think you should set up and run your own

business? There were a number of areas. A lot of entrepreneurs have

that Eureka moment. Why moment was when I was walking into the

Finchley Road cinema, which was Warner Brothers at the time. They

were building loud, noise, brash, cinemas and an affluent couple

walked by. They looked in and walked away. I thought we were

alienating a large proportion of the potential customer base. It was

that together with, I think, studio life. Studio investors are the only

ones that can put Investment Bank is to show in terms of their

expense projects. -- Investment Bankers to shame. I thought I could

do it better and cheaper and I left six months later and started the

company. You have 71 sites in the UK and elsewhere at the moment and

I know you are planning to open more in these difficult economic

times. How do you decide whether Vue Cinemas should be? The hardest

part is deciding where you are not going to be. We get letters weekly

and monthly from councils pleading with us to go in and open up a

cinema. We are a big part of the community. People remember their

first dates. Kids go up. It is a safe haven for young people to

watch the film. It is very hard to turn people down. We have a very

sophisticated screening process, where we will probably end up

developing one out of 20 sites that we look up. That is a very high

rate of attrition, one in 20. What is a contributing factor? How much

people are willing to spend? The number of people through the doors?

What are the variables that you look at? We typically look at a 20

minute drive time. We look at a snapshot of a community, an area,

and that can be stretched in certain areas in parts of the

country where people drive for a longer distance. Then there are

places like Westfield London with phenomenal gravitational pulls.

Both the West field sites, here and in Stratford, people try for over

an hour to come in. You have to fact it in the different elements.

-- people drive for an hour to come in. You have to look at the

relevant affluence of the customers and how much they are willing to

spend. How much they will spend on popcorn? No, it is the whole

package. Hot dogs as well? Tickets, too. If you look at our price wars

across the streets at Westfield, similar across the country, we have

a price point that starts at �1 and goes up to �20. We tried to cater

to all our customers across the country. Thank you. The business

story next week is likely to be Tesco. They are expected to reveal

their worst performance in decades. They are selling some of their

stores and they are making much less profit at home. Some of the

top bosses have walked the plank already. Phil Clarke will reveal

his turnaround plan on Wednesday, with more emphasis on smaller

stores, cutting back on new hypermarkets, and hiring more staff

to improve customer service will all be on the bill. What has gone

wrong with Tesco? Let's get some perspective. Profits will be down,

but it will still be over �3 billion as their pre- tax profit

and not many people can compete with that. And it is still one

third of our groceries. But there is still a slow down. I think it

has become arrogant, actually. Farmers have complained about them

squeezing margins. Communities have got annoyed about them opening too

many branches, squashing local independent shops. Now it has gone

further and annoyed the customers. It has cut back on staff, so

customer-service levels have dipped. If you walk into a store, they

looked sterile in industrial whereas says with a Morrison's have

been investing. -- is Sainsbury's and Morrisons. ASDA has been having

a very big price war. People have drifted away from Tesco. It has

been a big player for a long time and has concentrated too much on

international markets and not the UK. The problem is that the UK was

the cash cow that generated the money to spend abroad, but if that

slows down and dried up, they have big problems. The story was that

Tesco grew and grew, and you could argue that it has grown so much

that it has become unmanageable. Your business has grown pretty

quickly, 40% in one year. How do you manage that rate of growth?

Managing growth is tricky. We are in control of every area of our

business, manufacturing, distribution, retail sales. Having

all of that means that throughout the growth you are in control. You

have got very stringent forecasting and it you know where you are at.

Is there a pay-off between growth and what you can control? I am sure

there is. But not quite yet? yet. A good position to be in! Your

business had a big expansion as well. Overnight to took over... I

forget which one. Was it warned of? It was five companies. I started

with a zero. He -- how did you manage that change in the business?

It is very difficult and the challenge is to keep the

entrepreneurial spirit alive in the company. All of our key executors

have a stake in the company. They think like owners and that is a big

part of it. We have individual executives who will cut their own

budgets because they know it is for the greater good of the company,

and you would not see that in a big company with huge bureaucracy with

entrenched positions. For us, having our managers think like

entrepreneurs is very important. There is some pressure from Tesco

investors to perhaps pull out of the United States. It is taking a

lot of time with very little to show for it at this stage. Should

they leave the United States? think they have put in too much to

walk away right now. I was at the Tesco conference last year, and

there are always bonkers investors saying what have you done? When

they opened Fresh & Easy to 1006 they said they would break easy in

two years. Several years on, they have not. -- in 2006. They have

changed the stores a lot. When they originally opened, the fresh side

was not what the Americans wanted and they have changed and it does

seem to be on the up. Investors will be watching. We will see what

they have to say for themselves on Wednesday. They say you should

never go into business with your friends and family but that message

did not reach one rather large family in Cardiff. We went to find

Niche journey. He is brothers with Steve and father to Helen. -- mate

Jimmy. Their sisters and cousins as well. They all work together as

hairdressers in Cardiff. What is it like working with your entire

family? Sometimes it is held. It is also brilliant. What is it like

working with your children on a day-to-day basis? Not a problem.

Sometimes I make it clear that they are my children but at work I am

the boss. At home they are my children and I love them to bits.

In the shop, everybody has to have a responsibility. That is what the

business is all about. Helen has been working in the family salon

since she was a teenager. What is the success secret? Is it having

defined roles? The most important thing is that you have to be good

at your job. You all have to have different roles. I do chemicals. We

all work differently. The most important thing is that you have to

get on as a family unit as well. If you do not get on, that is when the

problems start. Family businesses contributed nearly a quarter of the

UK's GDP. 3 million small businesses in the UK are run by

families and they give jobs to 9.2 million people. Between them, they

generate a turnover of 1.1 trillion pounds per year. Over time, family

businesses can turn into dynasties. Think of the Rockefellers, trance,

the Rothschilds. That great wealth can cause great feuds. The story of

the Gucci family reads like a soap opera. How can families make sure

their businesses run smoothly? As you can see from the books behind

the, research into family businesses is a growing field. At

the forefront, Professor Nigel Nicholson. What are the pros and

cons of keeping it in the family? When families work well, they are

grit. They have fantastic family spirit, they make quick decisions

and they have a telepathic ability to understand each other and they

are held together by love so they can tell the truth about falling

apart. However, the other side of that coin is that those things are

risk factors. Sometimes they are too quick to make decisions and

conflicts can overspill. Sometimes people end up unable to talk to

each other for weeks or months because they have fallen out.

Although the Lazarous admit that they occasionally Baker, Steve and

Jimmy do their best to keep everybody in mind. -- occasionally