Belfast’s talent pool helps it land 168 tech jobs from US
Carpetright’s profits are floored by one-off costs
A US firm creating 168 jobs here has said the attraction of a low rate of corporation tax was “second” to Northern Ireland’s talent base.
Bazaarvoice, which works with some of the world’s biggest retailers, chose Belfast over the Republic for its new European base.
It’s adding the new jobs over the next three years, which have average salaries of around £32,400.
Gary Allison, executive vice president of engineering at Bazaarvoice, said: “It came down to southern Ireland and Northern Ireland. It was a difficult decision for us.
“At the end of the day, the talent here in Belfast was really compelling for us.”
The firm works with the majority of the world’s biggest retailers, online and collects content, reviews and photographs from customers and filters that through to the retail sites. Some of its clients include Debenhams and Philips.
“The largest number (of jobs) are software engineers. That’s where we are starting with. We have hired our first five. We will then expand from that to support roles,” he said.
Mr Allison said services, sales and administration are possible areas for expansion.
Speaking about the current political situation, including the Stormont impasse and this week’s DUP deal with the Tories, he said: “The city and country has gone through a vast transformation. It’s not about what happens in one day, it’s where it’s going over time.”
Bazaarvoice has already hired five staff and is based at Arthur House in Belfast city centre.
Mr Allison said the attraction of a lower rate of corporation tax was “second” to the talent base, and that he “thinks it’s going to happen”.
The devolution of the business levy is expected to be delayed by around two years.
Alastair Hamilton, Invest NI’s chief executive, said: “The proposition is still the same. High quality talent, supported by the universities and colleges and key programmes.
“This project is unique as it covers the full range (of jobs).”
The jobs will include customer service, but the bulk will be software engineers.
Asked about Monday’s £1bn deal between the DUP and Conservatives, which includes £400m for roads infrastructure, Mr Allison said: “I welcome the deal that was made. I think the fact that there was an economic focus was really important for Northern Ireland.
“The infrastructure piece is vital... anything that improves road infrastructure and helps people to commute, to be able to get access to jobs, I welcome that
“Also, a very strong piece in the agreement was the broadband commitment.”
And on corporation tax, he said: “I don’t think there’s much more that can be said at this stage... the statement that is embedded in that agreement, that we are going to work towards the autumn Budget to resolve the budgetary element of that is a welcome position.”
The new jobs will generate salaries of around £5.5m a year when all are in place.
Invest NI has offered £1.1m towards the creation the new posts, with a further £225,000 coming from the Department for the Economy’s Assured Skills scheme. RETAILER Carpetright, which has eight stores in Northern Ireland, has seen profits collapse after UK sales dipped and it booked a hefty exceptional charge linked to store closures.
The company said that pretax profit plummeted 93% to £900,000 in the year to April 29, down from £12.8m.
Exceptional costs linked to closing loss-making stores totalled £13.5m.
Overall revenue, which includes its European arm, was broadly flat at £457.6m, but UK sales fell 2.6% to £381m.
Chief executive Wilf Walsh said: “I am pleased to report on a year of significant strategic progress, as we implemented a wide-ranging programme of investment and operational change, to refresh and update the Carpetright brand.
“While a challenging consumer environment and competitive landscape remain headwinds, we are confident the additional potential in our self-help initiatives will support an increase in market share.”
Like-for-like sales in the UK fell 0.5%, but Carpetright said that it bounced back in the second half of the year.
The firm added that it has made an “encouraging start” to the new financial year, despite “continued economic uncertainty”.
Like-for-like sales in the UK grew by 2% for the seven weeks to June 17.
Mr Walsh added: “Our strategy is on track and the positive response we have received from these initiatives has encouraged us to press ahead with plans to complete the refurbishment of the UK store estate by the end of 2018 and to extend the programme in the rest of Europe.
“We have made an encouraging start to the new financial year, underpinned by the improving performance of our refurbished UK estate.”
Carpetright shares rose more than 8% to 194.5p as investors took a ‘glass half full’ view of the results.