FEBRUARY 2019EAST MIDLANDS LEADING BUSINESS MAGAZINEwww.blmgroup.co.ukWWW.EASTMIDLANDSBUSINESSLINK.CO.UKWWW.EASTMIDLANDSBUSINESSLINK.CO.UKMAXIMISE EFFICIENCYMAXIMISE EFFICIENCY£3.50ENGINEERING The engineering questionHOSPITALITY Help for the hotel sector BUSINESS TRAVEL Business or leisure?01.qxp_Layout 1 04/02/2019 09:42 Page 102.qxp_Layout 1 04/02/2019 09:44 Page 1www.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 3EDITORS NOTESBrexit, Brexit, Brexit. It feels like all we hear about nowadays and we’d like to cover topics different ourselves if it wasn’t such a momentous event. For all those who have ever wondered what it might be like to live through a pivotal point of human history, this might be it. Not as any of us thought. At the time of writing, the Government has not yet made a decision on whether to continue with a No Deal option or extend the deadline yet again. At least in that regard they’re remaining consistent – consistent in not providing much consistency. Supermarkets may have warned of a lack of goods on the shelves in the event of a No Deal Brexit, but here in the East Midlands many manufacturers are stocking up beforehand, predicting sharp price raises for raw material in the event of a no deal. It’s good to see what sectors can preparing, as it never hurts to prepare for a worst-case scenario. Anything better can be considered a bonus. It’s not all doom and gloom, however, because the manufacturing sector has also signalled high rates of confidence across the region despite the economic uncertainty, while other sectors such as property have bucked trends and remained strong. Our issue this month takes a look at both of these – but also delves into the world of business travel, as well as training and apprenticeships, to face that ever-present skills shortage question. Along with up-to-date news, analysis and comment from business leaders in the region, this month’s issue is not one to be missed. Good reading, as always. Michael Fisher EditorWelcome...03.qxp_Layout 1 04/02/2019 11:26 Page 1ContentsFebruary 2019LATEST NEWS 6 A round-up of the latest news from our region APPOINTMENTS 8 East Midlands on the move. FINANCE NEWS 10 The latest news from the world of finance around the region MANUFACTURING NEWS12 News and views from around the region PROPERTY NEWS 14 All the latest from the property sector. BRICKS 201916 East Midlands Business Link Bricks Award 2019 are now open for entries. The awards are a chance to recognise and celebrate the region’s top projects, as well as the teams behind them. ENGINEERING SPOTLIGHT18 A skills shortage, automation and the ever-present drive for efficiency; the engineering sector has a lot of problems to solve, but then, that has always been an engineer’s greatest strength. TAX22 Were you one of the growing number of people who filed their tax return on Christmas Day? Or are you still looking for an excuse as to why you haven’t done it? By Erica Manderfield, Tax Partner at Streets Chartered Accountants COMMERCIAL PROPERTY 24 The commercial property has waxed and waned these last few years as uncertainty stemming from Brexit compounds deeper market issues. Perhaps the greatest threat to the sector here in the East Midlands is one of supply and demand. Any regular reader will already be familiar with the dearth of available Grade A stock across the region, despite a swathe of new developments looking to fill the deficit. TRAINING & APPRENTICESHIPS 27 It’s undeniable that many industries face a skills shortage, but is the answer really to take on new people – or can we train and up-skill those we already have? PRINTING & PACKAGING30 As consumers demand more from their packaging it is vital that firms get on board with major trends. The most important of which, perhaps, is the matter of sustainability. PUBLIC RELATIONS34 There’s a hole in your bucket dear Liza. By Greg Simpson, founder of Press for Attention PR and Enterprise Nation Champion for Nottingham CORPORATE HOSPITALITY 36 Beset by staffing issues and increasing competition from sharing accommodation, the hotel sector is having to play to its strength to overcome its challenges. NETWORKING 40 Gain new custom from your customers. By Fiona Duncan-Steer, founder of RSViP Business Networking Agency BUSINESS TRAVEL42 Though improvements in technology have made business travel less necessary, firms continue to step out of the office. How people travel, though, is changing. AUTOLINK46 Motor Industry invest in 80 new models in a bid to recover the market Over 80 exciting new generation models, 31 of them plug-in electrics, are set to make their showroom debuts in 2019 as the motor industry tries to stimulate growth. • Porsche Panamera Turbo S & E-Hybrid Sport Turismo OUT OF OFFICE50 All the leisure sector news from the last month EVENTS52 A timely look at forthcoming business events around the East Midlands AND FINALLY...544604-05.qxp_Layout 1 04/02/2019 09:45 Page 136Group Editor Steve Fisher s.fisher@blmgroup.co.uk Editor Michael Fisher m.fisher@blmgroup.co.uk Journalists Dominic Cuthbert d.cuthbert@blmgroup.co.uk Stuart Pearcey s.pearcey@blmgroup.co.uk Tess Egginton t.egginton@blmgroup.co.uk Sales Director Angela Cooper a.cooper@blmgroup.co.uk Tel: (01472) 310310 Accounts & Subscriptions Angela Sharman accounts@blmgroup.co.uk Tel: (01472) 310301 Fax: (01472) 310311 Design & Production Gary Jorgensen, Mark Casson studio@blmgroup.co.uk Tel: (01472) 310304 Fax: (01472) 310314 E-Mail: eastmidlands@blmgroup.co.uk Publisher Haychart Ltd, t/a Business Link Magazine Group, Huntingdon House, 278-290 Huntingdon Street, Nottingham NG1 3LY All rights reserved. No part of this publication may be reproduced, transmitted, photocopied, recorded or otherwise without express permission of the copyright holder, for which application should be addressed first to the publisher. While every reasonable care is taken, neither the publisher nor its participating agents accept liability for loss or damage to prints, colour transparencies, negatives or other material of whatever nature submitted to this publication. The views expressed in this publication are not necessarily the views of those held by the publisher.@BLMEastMidlandsBLMEastMidlandsCOVER PHOTOS: PORSCHE • SHUTTERSTOCK.COM • MR.WHISKEY • NESPIX • FIZKES • GORODENKOFF04-05.qxp_Layout 1 04/02/2019 09:46 Page 26 East Midlands Business Link www.eastmidlandsbusinesslink.co.ukGENERAL NEWSLeicester tops rankings as best city for new millennial businesses Leicester has topped the rankings as the best city in the UK to start a new millennial businesses. The new ranking, which comes from online business print providers, instantprint, is the result of research analysing the cost of living in the 20 biggest UK cities, along with average age, number of start-ups per 1,000 people, office prices, train reliability, recycling rates, superfast broadband availability, and the average price of a cup of coffee to produce the top ten. All factors were selected based on research into what is important to the millennial generation and what challenges they may face in starting a business. The data revealed that there are great opportunities for millennial start-up companies all around the country, with only two of the top ten cities located in the south of England. The top ten cities are: • Leicester • Derby • Belfast • Nottingham • Portsmouth • Southampton • Hull • Coventry • Cardiff • Edinburgh James Kinsella, CEO and Co-Founder of instantprint commented on the findings: “As a millennial start-up company ourselves, we understand how daunting deciding where to set up your business can be – especially if you haven’t had much time in the workplace to build up capital resources and a great network of potential contacts.” £1.5m grant to power future of electric transport research The Wolfson Foundation has donated £1.5m to fund state-of-the-art equipment that will advance research into sustainable, electric transport at the University of Nottingham. The Aerospace and Electric Flight Test Cell Propulsion Unit will take pride of place in the new Power Electronics and Machines Centre, the flagship research facility, which is due to open in summer 2020. “The aerospace industry faces significant technological challenges as it strives towards all-electric flight propulsion in the coming decades. This significant new grant will support the University’s position at the forefront of the revolution in automotive, aerospace and marine transportation, expanding our capacity to discover sustainable ways of transporting goods and people and reduce the global dependency on conventional fuel sources,” explains Pro-Vice-Chancellor for the Faculty of Engineering, Professor Sam Kingman. Professor Pat Wheeler, Director of the Power Electronics and Machines Centre, said: “The creation of a new test cell unit will enable our world-renowned Power Electronics, Machines and Control Research Group to progress its successful research into transport electrification concepts. “By accommodating a greater volume of interconnected equipment, the Group can emulate real environments at higher power levels and therefore model larger scale applications and systems to produce solutions to future power management challenges. The new facility will also enable us to work even more closely with our industrial partners on research, particular those companies working in the electrification of future transport systems.” Paul Ramsbottom, Chief Executive of The Wolfson Foundation, said: “The Wolfson Foundation funds research infrastructure underpinning international quality research. Our funding partnership with the University of Nottingham is therefore a natural one, given the strength of the University’s research – and it is a partnership that dates back to the 1960s.” East Mids construction sector issues highest profit warnings in six years Profit warnings from the construction sector hit a six-year high in the East Midlands, with five profit warnings recorded in 2018 – the highest since 2012. However, the East Midlands saw the number of profit warnings drop for the third consecutive year since 2016, when 19 warnings were issued – matching the 2018 total number of warnings. 2016 was the only year profit warnings had risen above 12 since 2008, when 23 warnings were issued. According to EY’s latest ‘Profit Warnings Report’, the East Midlands recorded profit warnings from the following five sectors: construction and materials; electronic and electrical equipment; general retailers; gas, water and multiutilities; and automobiles and parts. Across the UK, 2018 saw the second highest level of profit warnings issued by UK plc since 2008, with 287 profit warnings, a rise of 4% year-on-year. The General Retailers sector across the UK recorded the highest percentage of profit warnings in a decade, with 38% of the sector issuing profit warnings in 2018. Dan Hurd, EY’s Head of Restructuring in the Midlands, comments: “Following events last week, there is a further political and economic uncertainty to contend with and no let-up in the pace of change. But rising uncertainty wasn’t the only reason why profit warnings spread in 2018. “In the retail sector, a combination of a relentless margin squeeze, the continuous need for reinvention and falling consumer confidence made 2018 an exceptionally tough year for the retail sector across the whole of the UK. “What happens next depends on how much more unpredictable 2019 becomes. Markets adjust quickly to new realities, however, in this fast-moving world companies need to keep moving forward or risk finding themselves on the wrong side of sector trends, potentially triggering a new cycle of profit warnings in years to come.” 06-07.qxp_Layout 1 04/02/2019 09:51 Page 1www.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 7 GENERAL NEWSPattonair stikes major sponsorship deal The home of Derbyshire County Cricket Club is to be renamed after it agreed a major sponsorship deal with Pattonair. The aerospace and defence supply chain service provider, has agreed an investment into the club to support Derbyshire’s playing ambitions and investment in facilities. As part of the four-year deal, Pattonair becomes the club’s Principal Partner and has naming rights over the Pattonair County Ground, off Nottingham Road in Derby. Wayne Hollinshead, Chief Executive of Pattonair, said the firm was proud to have its headquarters in Derby, where it employs around 600 people, and wanted to show its support for the community. “Pattonair is a truly global business, with more than 2,000 customers worldwide and 1,100 employees across all continents. However, we are keen to celebrate our Derbyshire roots and see this association with one of the county’s premier sporting teams as a fantastic opportunity. Our relationship with the cricket ground goes back to 2016, partnering with DCCC’s first Fireworks Night and Fun Fair spectacular, an event we have continued to enjoy and support,” he said. Ryan Duckett, Chief Executive at Derbyshire County Cricket Club, is delighted to grow the club’s partnership with Pattonair. “We have worked closely with Pattonair in recent years and it is fantastic that we have been able to extend our partnership further. “Their backing will allow us to continue investing on the field as we aim to compete across all forms, while we further develop the Pattonair County Ground as a year-round venue at the heart of Derby and the wider region.” Apprenticeship system needs to be more flexible The apprenticeship system is still holding firms back because of the system’s “rigidity”, according to a new report. A survey of 765 firms by skills development organisation, City & Guilds, reveals that almost half want to use the money to invest in other forms of training such as professional courses. City & Guilds say its research suggests that nine out of 10 levy-paying employers wanted greater flexibility in how they spend their apprenticeship allowance. The apprenticeship levy, which was introduced in April 2017 requires businesses with an annual wage bill of £3 million or more to pay 0.5 per cent of this amount into a fund that can be spent on apprenticeships and other eligible training. Kirstie Donnelly, Managing Director of City & Guilds Group, says: “The turmoil we are facing, as a result of uncertainty around Brexit as well as the rapidly changing world we live in, means that it’s never been more urgent to improve the skills of our workforce and invest in home-growing the skills that we may no longer be able to import from abroad. “Apprenticeships have a huge potential to deliver on this, but the system is still not responsive enough to the needs of employers.” East Midlands growth falters at end of 2018 Business sales and activity fell at the end of 2018 after a year of relatively steady performance, according to the East Midlands Chamber’s latest available data. The slowdown resulted in overall business activity and sentiment across the region falling to a level not seen since immediately after the EU Referendum in 2016. In the latter part of 2018, business sales and activity levels – both domestic and international – dropped markedly according to the results of the East Midlands Chamber’s fourth Quarterly Economic Survey of the year. For the first time in many years, the survey showed a decline in sales to important export markets such as the Middle East and Africa. Firms trading with the EU saw the smallest growth since the Chamber’s records began 12 years ago. Scott Knowles, Chief Executive at the Chamber, said: “An important difference between this slow down and that seen in mid-2016, is that two years ago it was very much about reduced confidence – particularly for a short period of time immediately after the referendum result, which surprised many.” © SHUTTERSTOCK.COM/ KOBKOB© SHUTTERSTOCK.COM / GOODLUZ © SHUTTERSTOCK.COM / RAVIOLI BROTHERS 06-07.qxp_Layout 1 04/02/2019 09:51 Page 2New CEO for Notts nutrition brand MuscleFood Nottingham online nutrition and sports food retailer MuscleFood has bolstered its board with the addition of Gareth Jones as CEO. The search for a new CEO was spearheaded by company founder Darren Beale who will now move into a part-time, non-executive advisory capacity. “We are very fortunate to have found someone of Gareth Jones’s calibre,” said Mr Beale. “Gareth brings experience in developing a scalable technology platform at very.co.uk, something our business will benefit from greatly as we continue to deliver our vision to make healthy living accessible to everyone. “As we start to scale our team, infrastructure, production and technology, Gareth’s experience and expertise in this area will be invaluable.” Mr Jones was CEO of online at Missguided.com and led a financial and strategic turnaround of the business. Previously, he was Deputy CEO of Shop Direct where he was instrumental in turning a struggling catalogue led business into one of the most respected digital and data led businesses in the UK. “It’s a great privilege to be asked to lead one of the most exciting online businesses in the UK,” he said. “Musclefood.com is already an undoubted success delivering a convenient online solution to anyone with a desire to train and eat healthily.”8 East Midlands Business Link www.eastmidlandsbusinesslink.co.ukGateley expands in Leicester with two new partners The Leicester office of law-led professional services group, Gateley, continues to expand its service offering with the introduction of two new teams; Construction & Engineering and Commerce, Technology & Media (CTM), headed up by new partners Piet van Gelder and John Buckby. Piet van Gelder specialises in the Construction and Engineering sector and John Buckby is a dual qualified lawyer and Chartered Trademark Attorney, both join Gateley from Spearing Waite LLP. Piet, who will be heading-up the Construction and Engineering team, said: “I’m thrilled to be joining Gateley with my team to launch a new offering for Gateley in the East Midlands. The company already has a fantastic Construction team nationally and my vision over the next twelve months is to progress business in the East Midlands region and to grow the existing team further.” John, who has been appointed as a CTM partner, said: “I’m excited to be joining such a forward thinking business. Gateley has a great reputation and I am eager to work with the company’s lawyers in a field of expertise that I am passionate about. “Prior to becoming a lawyer, I worked in the music industry and therefore I am well aware of the need to deliver client requirements to add commercial value, and this is something that Gateley does well.” Piet and John will be working closely with existing partners Simon Taylor in the Real Estate team and Chris Greenwell, in the Commercial Dispute Resolution team. Commenting on the recent expansion, real estate partner and head of Gateley’s East Midlands offices, Andy Matthews said: “I’m pleased to welcome Piet, John and their colleagues Thomas Mould and Molly Fellows to our Leicester office. We have a well-established and successful track record in the city and a great team.” APPOINTMENTSGareth Jones08-09.qxp_Layout 1 04/02/2019 09:54 Page 1Double Director promotion at regional property agency Commercial property surveyors Innes England have promoted Associate Directors Rahul Saini and Paul Rogers to Directors. Paul started his career in London, gaining extensive commercial experience, specifically dilapidations and exit strategies, before joining Innes England in 2016. He has more than 14 years’ experience as a chartered building surveyor, acting for institutional and private investors, owner occupiers and tenants throughout the UK. Rahul brought more than a decade’s experience in the Leicestershire property market to Innes England when he joined the Professional Services team in 2016. An experienced surveyor, he began his career providing valuation advice for various Government departments and now specialises in professional valuation for secured lending, pension fund and accounting purposes. Tim Garratt, Managing Director, said: “Both Paul and Rahul bring a wealth of talent and ability to the board room table. Each has worked hard and they deserve their recognition. “Paul has been part of the significant growth of the Building Consultancy team – handling some key contracts. Rahul is a hugely respected Registered Valuer working in the Leicester and Leicestershire market. “Both are appointed a time of business uncertainty and demonstrate our commitment to growing these parts of the business.” Paul Rogers said: “It is a privilege to do a job that you enjoy and work with people that you like. I very much look forward to continuing to progress my career at Innes England and seeing the building consultancy team thrive further.” East Midlands law firm welcomes new partner Fraser Brown Solicitors has appointed Erin Vickers as partner within the commercial property team. Based at Fraser Brown’s Nottingham office, Erin brings with her over 15 years of legal expertise, having previously been a partner at Leicester law firm Spearing Waite. Originally from New York, Erin has lived in the UK for over 20 years and obtained her Postgraduate Diploma in Law (PGDL) and Legal Practice Course (LPC) from De Montfort University in Leicester. Within the commercial property team, amongst general real estate legal advice, Erin will be advising clients on real estate aspects of corporate reorganisations, acquisitions and disposals. Her specialisms will include business leases, landlord and tenant work, real estate finance, investment property, industrial property and retail and leisure property. Erin said: “I have a huge amount of professional respect for the Fraser Brown team, with whom I’ve been acquainted with for a number of years. The firm has an amazing culture and I’m lucky enough to be working closely with a variety of departments at the firm, all of which have welcomed me with open arms. “Fraser Brown is the largest independent law firm in Nottingham and I’m proud to be joining its growing team of industry leading professionals as the firm continues its growth.” The firm has hired more than 20 members of staff since 2018 and opened an office in Lincoln last spring, which marked its first base outside of Nottinghamshire. Lincolnshire Chamber reveals new Chair Gary Headland, CEO of Lincoln College Group, has been appointed as the new Chair of the Lincolnshire Chamber of Commerce following the announcement in November last year that Ursula Lidbetter would be stepping down. Gary’s experience includes running a £60 million turnover College Group with three UK colleges, two colleges in the Kingdom of Saudi Arabia, as well as a range of international contracts in China, Eastern Caribbean and Romania. Gary is also Chair of the Institute of Directors for Greater Lincolnshire and a Midlands Engine Export Champion for the Department of Industry and Trade. Ursula Lidbetter said: “Our Chamber Board and new Assembly have attracted an exciting mix of talented business people. Led by Gary, I have no doubt that they will make a real impact, developing the Chamber’s services, support and strategic leadership for our vibrant business community across Lincolnshire. “Lincolnshire Co-op remains an engaged member and patron of the Chamber and I wish Gary and all our Board and assembly members every success.” www.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 9 APPOINTMENTS08-09.qxp_Layout 1 04/02/2019 09:54 Page 2Next >