THE AGENTS

Stephen Taylor

Managing director, Guy Simmonds

The job of any professional licensed property agent is to be fully aware of market conditions and to constantly monitor sellers' and buyers' attitudes and confidence.

We recently conducted an industry-wide national survey to determine licensees' views on important issues in the industry. The results are extremely interesting and generally optimistic.

While many operators identified price competition on

alcohol as a concern, a clear majority felt that the ambience and friendly service offered in pubs would always draw

customers. While rental levels of tied lease operations were a concern, it was widely recognised that such businesses can

offer substantial revenue and capital growth opportunities for those unable or unwilling to commit to buying freehold.

The need for the industry to raise its game via professional training was widely recognised, and many highly-successful

operators declared that their success owed much to their undertaking professional pre-entry training, such as that provided by Guy Simmonds, and by investing in an ongoing programme of staff training.

The smoking ban has undoubtedly brought trauma to many pubs, but overall it was seen as a positive development which, after a period of adjustment, was likely to widen the appeal of pubs to customers who hitherto have shunned them. At Guy Simmonds we have also noticed a new breed of prospective

licensees who are drawn to the trade due to the more

pleasant working environment.

Stealth taxes and constant changes in legislation are cited as two major concerns, and we see the proposed changes in capital gains tax (effective from April 2008) as likely to cause many successful operators to sell their licensed businesses in an attempt to beat the deadline.

It cannot be denied that the prevailing view is that the country has entered a general economic downturn - and any agent suggesting otherwise is out of touch. It remains the case that licensed businesses are valued predominantly as a function of turnover and profits, and when properly

valued according to prevailing market conditions, such

businesses will always be of appeal and can be expected to sell readily.

It is for these reasons 2007 has been another record year for Guy Simmonds and we look forward to 2008 with great confidence.