Galway Advertiser 2006/2006_02_16/GA_1602_E1_041.pdf 

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February 16 2006

41

THE BUSINESS
Galway's business and appointments news with Julie Tierney

Property still the No 1 investment choice for high earners
Property remains a preference for Irish investors according to independent research presented by Friends First at a regional investment conference held in the Marriott Hotel in Galway. According to the results of the survey, Ireland's top earners have done well in 2005 and are optimistic about 2006, with 51 per cent expecting to be better off by the end of the year. The survey was carried out in the high net worth market, among the top 13 per cent of the population in socioeconomic terms. Speaking on the current environment for investments at the conference chief economist, Friends First, Jim Power said: "With the Irish economy forecast to grow by up to five per cent during 2006, the opportunities for investment are excellent. However, on foot of the research carried out we would be concerned that the limited knowledge of investment options available among investors and an over-reliance on property investment could create a damaging effect on ultimate returns. Investors need to understand where the real risks lie, in order to maximise the growth of their investments." Property's grip on the pockets of the Irish investors continues. It is the top choice among Irish investors and 33 per cent of those polled intend to take out a property investment in the next 18 months. Pension and education costs are the two biggest financial concerns for Ireland's top earners, according to the research. While 27 per cent of the over 35s listed pensions as their main worry, only five per cent of those under 35 named pensions as their biggest concern. Many of those who cited pensions as their chief concern already have one in place (71 per cent), however the issue is not just about taking out a pension but about increasing contributions. Overall, 40 per cent of pension holders are funding their own pension and 24 per cent have a company funded pension. Mortgage and childcare costs were more of an issue for the under 35s, with 25 per cent listing mortgage costs as their biggest money worry versus only 12 per cent of those aged 35+. Childcare costs were cited as the number one worry by 14 per cent of the under 35 segment, while only three per cent of the 35+ category saw this as important. The regional conference was attended by up to 40 brokers from the Galway area. Also speaking at the conference were investment manager Friends First Daragh Murphy and director F & C Ireland, Graham Brooks. The Galway conference is part of a series of Friends First regional investor seminars.

Director of F&C Ireland Graham Brooks, investments manager for Friends First Daragh Murphy, and chief economist from Friends First Jim Power pictured at the Friends First investment conference held in the Courtyard Marriott Hotel on Friday.

1 million invested in Galway firm Lightstorm Networks
The Western Development Commission Investment Fund is investing 1 million in Galway based Lightstorm Networks. The company, which employs 29 people, is involved in leading edge silicon design and is at the forefront of developments in the Carrier Ethernet semiconductor market that will enable triple play (telephone, broadband, and TV) services at very high speed to residential and business customers. The Lightstorm designed chips allow internet access at speeds 20 times greater than today's broadband. The market size for the Lightstorm Networks products is estimated to be more than 290 million in 2006 and is forecast to grow to 900 million by 2010. Commenting on the WDC investment investment manager WDC Investment Fund, Gillian Buckley, said: "In June 2004 we first invested 317,000 in seed funding to assist this company develop its proof of concept. That original investment enabled the company to attract very significant funding from two major Dublin venture capital companies, Trinity Venture Capital and Delta Partners. "We are delighted to participate in this round of funding as we feel Lightstorm Networks has the potential to be a global market leader in its sector. The total overall investment to date in this company is almost 10 million." "The current funding round will be used to see Lightstorm Networks through its development phase to the point of securing its first customers. The chip has already generated significant interest among a number of leading telecommunications corporations and if the chip is successful in the market, as we expect it will be, this investment by the WDC will result in a huge boost for the western region," added Buckley. Bryan Campbell and Jim Finnegan lead Lightstorm while Pat Sheehan is non-executive chairman. Don Harrington of Trinity Venture Capital, Frank Kenny of Delta Partners, and David Newman also serve on the board. Chief executive Bryan Campbell, an industry veteran, maintains that they have one of the strongest s e m i c o n d u c t o r development teams ever assembled in Ireland .

Announcing the Western Investment Fund investment in Lightstorm Networks was chief executive WDC, Lisa McAllister; chairman Lightstorm Networks, Pat Sheehan; and investment manager, WDC,Gillian Buckley.

Jobs market gets off to encouraging start
2006 has started on an extremely positive note for Galway jobseekers with almost 1,250 recruitment advertisements placed in the local newspapers in Galway during January, according to Bank of Ireland Business Banking's latest Galway Job Index. Recruitment demand was 65 per cent up on the previous month and contrary to figures issued in December every sector experienced an upturn of some level. Demand for labour in January was mainly fuelled by recruitment in the professional sector that was significantly up on the previous month with 153 more jobs advertised than in December. This may indicate the start of a recovery in this sector, following the decline in demand seen during December and November of last year. The slowdown in leisure recruitment reversed in January as demand in this sector rose significantly (+127 per cent), the biggest jump recorded for the sector since May 2005. The healthcare sector also experienced an upward trend (+88 per cent), recording its largest increase since June 2005. The manufacturing (+24 per cent), construction (+16 per cent), IT/Tech (+16 per cent), financial (+36 per cent), and education sectors (+10 per cent) recorded more modest gains. Commenting on the Galway Job Index regional business manager Bank of Ireland Galway, John Lavelle, said: "The leisure sector has shown strong improvement in January. A recent survey of 1,500 businesses by Bank of Ireland showed that 54 per cent of businesses within the leisure sector felt the financial circumstances of their business would improve within the next 12 months. "The increase in job advertisements in the manufacturing sector is in line with the national trend, while the pace of global manufacturing growth has slowed, this sector remains strong. The recent announcement by USCI, Japan Ltd, that it will create up to 125 jobs in Ballinasloe is a real boost to the area."