< Previous10 East Midlands Business Link www.eastmidlandsbusinesslink.co.ukFINANCE NEWSBioCity receives investment from BGF and BSI BGF has made its fourth life sciences investment in the last few months, providing Nottingham-based business incubator BioCity with development capital, alongside Blue Skies Investments (BSI). Founded in 2002, BioCity is a life science incubation business, providing specialist workspace for growing life science companies, including access to high-end equipment, shared services and training, as well as business advice through its expert network. The company also provides funding for the high-potential graduates of its Accelerator Programmes and for businesses based at the sites at which BioCity operates: Nottingham; Glasgow; and Alderley Park. BioCity will use BGF and BSI’s funding to expand this activity, allowing it to develop even more promising young life science companies in the UK. BioCity works with businesses from all areas of the life science industry, including cutting-edge therapeutics, medical devices, diagnostics, contract research, digital health and industrial and environmental biotechnology. Lloyd’s pledges up to £2.5bn for loans to Midlands businesses this year As part of Lloyds Banking Group’s national pledge to lend £18 billion to UK businesses, the Group expects to support firms in the Midlands with up to £2.5billion of lending during 2019. The £2.5 billion is available to firms across the Midlands and will support entrepreneurs looking to start-up a new business, micro-businesses seeking to scale up and small businesses considering trading internationally for the first time. It will also support established mid-sized businesses and large, multinational corporations seeking further growth. Jo Harris, Lloyds Banking Group’s Ambassador for the Midlands, said: “The West and East Midlands are going from strength to strength. We have a wealth of major manufacturers at the forefront of technological development and innovation that are proud to call the region their home. By lending up to £2.5 billion we hope to enable businesses in the West and East Midlands to scale up, trade internationally and grow. “Alongside our continued investment in the Lloyds Advanced Manufacturing Training Centre, this new fund forms part of our continued support for the Midlands through our Helping Britain Prosper Plan.” BDO East Midlands advises on over 80 deals BDO’s East Midlands corporate finance has advised on more than 80 deals with a combined value in excess of £2.5bn since the team was formed five years ago. The team advises privately-owned, private equity-backed and AIM-listed businesses across the region, nationally and internationally on mergers and acquisitions, transaction services (buy-side and sell-side due diligence), as well as tax advisory services. 2018 has seen the team advise on a number of high profile regional deals such as the acquisition of International Logistics Group by Yusen Logistics (parent company listed on the Tokyo Stock Exchange), the debt raise of the privately-owned telematics group Microlise and the disposal of Insphire to Kerridge Commercial Systems (itself backed by PE house Accel KKR) making it the team’s most successful year to date. Momentum in the region has continued into 2019 with the announcement of Core Management Logistics’ (CML’s) sale to Rhenus Warehousing Solutions Europe. BDO advised CML. Vinny Patel, Head of Transaction Services at BDO in the East Midlands said: “When we formed the team five years ago, we had an ambitious goal to build a reputation as the ‘go to’ corporate finance advisers in the region. Our track record now speaks for itself. We work closely with business owners and management teams to help them succeed by setting their own ambitious goals and developing a strategy so they can achieve them.” This announcement follows news that BDO is set to join forces with Moore Stephens LLP. John Bryant, Head of M&A at BDO in the East Midlands, added: “Despite Brexit uncertainty, the outlook for this year and beyond still looks positive. We have seen – and continue to see – confidence from investors whether that’s private equity firms looking to back strong management teams with a compelling growth opportunity, listed companies or overseas trade buyers looking for strategic acquisitions.” © SHUTTERSTOCK.COM / OPOLJA 10-11.qxp_Layout 1 04/02/2019 09:56 Page 1www.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 11 FINANCE NEWSPeppermint Technology secures over £7m of strategic funding Peppermint Technology, a Nottingham-based legal cloud software provider, has secured over £7 million of strategic investment from Accel-KKR, a Silicon Valley technology-focused investment firm and existing investors Scottish Equity Partners (SEP). The funding will support management’s plan to accelerate growth, further develop their Legal SaaS platform and scale resources to solidify the company’s market position in the legal IT sector. Gary Young, CEO of Peppermint Technology, said: “This is a very exciting time for Peppermint. The backing of both Accel-KKR and SEP reinforces that our innovative approach to transforming legal services through technology fundamentally sets us apart in the industry. “When I joined the Company in early 2018, I recognised a real opportunity to make a difference in the legal sector. With this investment, we will continue to enhance our product offering and accelerate our go-to-market strategy, whilst focusing on the delivery of a great experience to our customers.” Samantha Shows, Managing Director at Accel-KKR, said: “Since we first began conversations with Peppermint, we have been impressed with the sophistication and focus of the management team and their mission to leverage technology to make their customers lives easier and more efficient. “We are excited to back this customer-centric business as they continue building their momentum in the market.” Ideagen swoop for Irish firm in £3.5m deal Ideagen Plc, the Nottinghamshire-based software developer operating in the governance, risk and compliance (GRC) sector has acquired Scannell Solutions Ltd for £3.5m. Scannell Solutions Ltd is based in the Republic of Ireland and is known for its Software as a Service (SaaS) solutions for Environmental Health, Safety and Quality monitoring and auditing. Ben Dorks, CEO of Ideagen, said: “I am delighted to announce the acquisition of Scannell Solutions Ltd. The company is a leader in terms of Environmental Health, Safety and Quality solutions, which it offers via a SaaS platform, so this will enable Ideagen to grow both our SaaS capabilities and accelerate our EHSQ offering.” The acquisition is the first of 2019 for Ideagen and follows a period of growth for the business. 2018 saw acquisitions in the US and UK aimed at growing the company’s geographical and service offering as well as expand its current client base. Scannell Solutions Ltd currently has around 100 customers, including blue chip companies, such as Coca Cola, Johnson&Johnson, BT and Heineken. Geoff Spiers of Scannell Solutions Ltd, said: “Scannell Solutions Ltd is delighted to be joining Ideagen. Ideagen is a world leader in Governance, Risk and Compliance (GRC) software solutions for businesses in a wide range of industries. By coming together with them we will have the opportunity to significantly grow the customer base for our Environmental Health, Safety and Quality solution.” Scannell Solutions Ltd employs 15 people, all of whom will now become Ideagen colleagues.Midlands deal activity remained “relatively static” in 2018 Experian has released its M&A Review for 2018. In the Midlands, deal activity “remained relatively static compared to the previous year.” 977 deals were announced, just 1 per cent less than the 987 recorded by Experian in 2017, and over 4 per cent less than the 1,020 deals in 2016. However 2018’s total is higher than all other yearly totals in the last decade. According to Experian, deal value in the Midlands slipped by 1.8 per cent to £18.2bn, though this is 35 per cent higher than the 2016 total. The Midlands was found to be the third busiest region of the UK in 2018, with involvement in 13 per cent of all deals by volume and 4.9 per cent by total value. Manufacturing was the busiest industry of the year once again, with 308 announced deals worth £12.1bn. Manufacturing accounted for around 32 per cent of all deals and almost 67 per cent of total overall value for the region, representing a 70 per cent increase in total value for the category compared to the previous year, which Experian says is “despite volume actually being just over 2% lower than 2017’s total of 315.” © SHUTTERSTOCK.COM / DUNCAN ANDISON 10-11.qxp_Layout 1 04/02/2019 09:56 Page 2Toyota begins production of new Corolla in Derbyshire The official start of production of the all-new Toyota Corolla Hatchback and Touring Sports wagon has been marked by a ceremony at the Toyota Manufacturing UK (TMUK) car plant at Burnaston in Derbyshire. TMUK is the exclusive European production centre for these new models, which will be strong contenders in the highly competitive C-segment compact hatchback and wagon market. The event was attended by Dr Johan van Zyl, President and CEO of Toyota Motor Europe, Mr Hiroki Nakajima, Mid-size Vehicle Company, executive vice president and oncurrent chief engineer, Toyota Motor Corporation, The Rt Hon Greg Clark MP, the UK Secretary of State for Business, Energy and Industrial Strategy, and His Excellency Mr Koji Tsuruoka, Japanese Ambassador to the United Kingdom. Dr van Zyl, said: “TMUK was our first major manufacturing enterprise in Europe and we have invested more than £2.75 billion in its operations since the start of production in 1992. As part of our strategy to secure the competitiveness of our UK operations, we took the decision in 2017 to upgrade our Burnaston plant to manufacture cars based on the new TNGA platform. “The highly qualified workforce at TMUK has a fine record of delivering superior quality products. Our continued investments, combined with the dedication of our members, will ensure that we can deliver ever better cars to our customers. The new Corolla will play a critical role in our market ambitions in Europe. It delivers the benefits of the new TNGA platform and increases the appeal of our industry leading self-charging hybrid electric technology.” 12 East Midlands Business Link www.eastmidlandsbusinesslink.co.ukMANUFACTURING NEWS£20m export deal win for Castle Donington motorcycle manufacturer A series of new deals for British and Japanese companies, worth over £200 million has been announced, during a visit by the Japanese Prime Minister. Castle Donington motorcycle company Norton was revealed to be amongst these companies, signing a new £20m export deal to Japan, which will support 200 jobs in the UK and see around 1,000 new motorbikes sold to Japanese customers over the next five years. Kay Johnson, Head of Global Sales and Marketing at Norton motorcycles said: “Norton have an agreement with our distributor, PCI Limited in Japan which will run over a five-year term to manufacture over 1,000 bikes and will achieve an estimated value of £5m. “We very much look forward to growing our workforce to support the demand for motorbikes in this territory and, in doing so, continue to build a strong trading business with Japan.” £5m investment opens new opportunities for three Lincolnshire firms A £5 million investment in new equipment and skills has provided three Lincolnshire companies to expand and diversify. Eminox Limited, Hooton Engineering and CWM Automation, all part of the Hexadex Group, created nearly 70 jobs and supported 14 apprenticeships in 2018. The businesses plan to continue to increase these numbers further in 2019. Overall the companies have a workforce totalling 430 people. Eminox Limited specialises in designing and manufacturing emissions control systems to reduce harmful emissions and enable truck, bus and heavy machinery operators to better protect the environment and meet tightening air quality regulations. Eminox has invested over £4 million in new equipment and staff training to continue the ongoing expansion of the company. Hooton Engineering, which manufactures small to medium sized fabrications, mainly in stainless steel, works with businesses such as Derby Homes, Kerry Foods, Hovis and Noble Foods, plans to double its growth in 2019 and will be expanding to a new, larger site. CWM Automation joined the Hexadex Group in October 2018 and is already looking to relocate to new premises, nearly three times larger than its current site. The company creates bespoke machinery for leading food producers such as Yeo Valley, Troy Foods, Swizzels Matlow, Harvey & Brockless and the Samworth Brothers Group, producers of Ginsters pasties and pies. According to Engineering UK, the country will need 1.8 million new engineers and technicians by 2025. © SHUTTERSTOCK.COM / ROMOLO TAVANI12-13.qxp_Layout 1 04/02/2019 09:58 Page 1www.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 13MANUFACTURING NEWSScotts to double size of its Lincolnshire factory Scotts Precision Manufacturing is to more than double the size of its Lincolnshire factory this year after securing a substantial grant from the Rural Development Programme for England LEADER Fund. The £275,000 “Slate Worx” expansion project began in January with completion expected by July this year. Once completed the enlarged facility will help Scotts realise its ambitions of doubling its production levels over the course of the next 24 months. The company which manufactures vegetable handling and harvesting machinery in Eastville, near Boston, has been granted planning permission for a 6,000 square foot building with overhead 5-ton crane, which will house its assembly area along with a two-storey office block and stores. A minimum of four new full-time members of staff will also be recruited as part of the grant agreement over the next three years. © SHUTTERSTOCK.COM / SERGEY KOHLUniversity research to improve welding process for manufacturing industries New research, led by the University of Leicester, will optimise the welding and additive and manufacturing process. Arc welding and additive manufacturing are hugely important for creating large metal components relatively inexpensively and quickly. Led by Professor Hongbiao Dong from the University of Leicester’s Department of Engineering, the research has shown how to optimise this process to improve efficiency and cost. The research was a collaboration between the University of Leicester, Delft University of Technology, Diamond Light Source, University College Dublin and TATA Steel Research UK. It explores the internal flow behaviour in additive manufacturing of metals and arc welding – the most widely used welding process in modern manufacturing. Porterbrook to lead postal train resurgence with new deal Porterbrook, based in Derby, is to supply the Rail Operations Group (ROG) with bi-mode FLEX trains to support the company’s expansion into the rail postal industry. Increasing congestion on the road network, a shortage of HGV drivers and the rapid growth in on-line shopping has led many shipping firms to explore rail as a key part of their logistics chain. A lack of suitable trains has thus far delayed the move. Working with ROG, Porterbrook will renovate two of its innovative FLEX trains for light logistics traffic. The FLEX trains are capable of operating on both electrified and non-electrified routes will help meet shippers needs for rapid movement of goods and just-in-time delivery. Mary Grant, CEO of Porterbrook said: “We are excited be breaking new ground with ROG as we both move into light parcel logistics for the first time. The UK’s light logistics sector is experiencing huge changes and we’re delighted that we can support the sustainable solution on the rail network. “Porterbrook is particularly pleased that ROG have recognised the potential for non-passenger use of our innovative FLEX trains and over coming months we will be exploring further opportunities to support the successful UK railfreight sector.” Karl Watts, CEO of Rail Operations Group, said: “The time is right for a modal shift from road to rail for logistics and express parcels services. ROG are leading the industry in delivering this shift and the FLEX trains are the perfect rail-borne solution to make this happen. There is huge opportunity to re-establish a comprehensive network of express parcels trains and help reduce the number of commercial vehicles on UK roads which will, in turn, help to drive improvements in the UK economy.” © SHUTTERSTOCK.COM / LIZ KCER12-13.qxp_Layout 1 04/02/2019 09:59 Page 214 East Midlands Business Link www.eastmidlandsbusinesslink.co.ukPROPERTY NEWSOff-market deal brings Nottingham IFA to a new HQ A financial planning agency has found a new flagship HQ in the heart of Nottingham’s business district – thanks to two local advisors. Wren Sterling will move into its four-storey Derby Street building before end of Q1, which has just over 10,000 sq ft of office space, after the completion of a full-scale Grade A refurbishment. The move brings the staff back under one roof after rapid growth had forced some to move into temporary accommodation, away from the firm’s old offices in Castle Marina Road. Finance Director Andy Moss said: “We see this location as being very attractive to new recruits, which will enable us to expand our talent pool, and this office also provides long-term capacity to enable us to continue our growth.” Landlord George Costa added: “We hope that Wren Stirling will be continue to grow their business and prosper in our landmark building, located in in the centre of Nottingham’s financial hub.” The Nottingham office of property advisers JLL represented the building’s landlord during the negotiations, led by James Keeton from the office agency team. “Our success within the office refurbishment market continues and we are delighted to have fully let to a single occupier, yet another high-profile city centre building,” he says. Nottingham City Council purchases Pegasus Business Park for £11.2m Nottingham City Council has acquired Pembroke House and Donington Court on Pegasus Business Park in Castle Donington for £11.2m. The two buildings comprise 64,640 sq ft (6,005 sq m) of Grade A office space situated next to East Midlands International Airport. The sale follows three recent lettings at the park, which will contribute to the combined annual rental income. Air Logistics Limited has agreed to a new 10-year lease for 7,369 sq ft (684 sq m) on part of the second floor of Unit 2A Donington Court, whilst Wates Construction Limited has also agreed to a 10-year lease for 6,040 sq ft (561 sq m) on part of the ground floor. Additionally, HSBC Bank plc, the global banking and financial services organisation, has agreed to new 10-year lease for space in Donington Court totalling 6,232 sq ft (579 sq m) and will occupy the west wing of the second floor in the three storey office building. Victor Ktori, Head of Office at Savills Nottingham, the property firm that secured the deal, comments: “These two buildings at Pegasus Business Park provided Nottingham City Council with an excellent opportunity to acquire a strong income producing asset. What’s more, the scheme is underpinned by the adjacent SEGRO Logistics Park development, which is set to attract a wide range of commercial occupiers to the area, re-establishing it as a top business location and undoubtedly adding value to the existing scheme. We are now bringing forward the UPS investment on the Park and anticipate strong interest.” Avant Homes acquires land at Chesterfield Waterside Avant Homes has acquired a significant parcel of land at Chesterfield’s £340 million Waterside development where it now plans to build 177 new homes. As a result, Avant Homes has now submitted an application to Chesterfield Borough Council for reserved matters planning approval for the £36m development which will deliver a mix of two, three and four-bedroom homes in ‘The Park’ neighbourhood of the Waterside project. Subject to approval of the application, construction at Waterside Quarter will commence in summer 2019 with the first homes released for sale in autumn 2019. The construction of homes on the 12-acre former timber yard site on Brimington Road will be the first official ‘spade in the ground’ at Chesterfield Waterside following the completion of site enabling works. A new highway bridge, which will provide the main access to this phase of the development, will also be constructed as part of the proposals. Planning permission for the bridge was granted by Chesterfield Borough Council at the end of last year. Waterside Quarter is the third site acquired by Avant Homes in north east Derbyshire in the last six months and will be managed by the company’s Avant Homes Central operation which was established in May 2018 and is based in Holmewood. 14-15.qxp_Layout 1 04/02/2019 10:03 Page 1www.eastmidlandsbusinesslink.co.ukPROPERTY NEWSJenkins Shipping docks at Tetron 141 A 141,459 sq ft warehouse unit in Swadlincote, Derbyshire, has been acquired by Jenkins. The specialist warehousing and logistics company has agreed a five-year lease on the unit, called Tetron 141, with landlord Aberdeen Standard Investments. The rent is undisclosed. CBRE advised Jenkins on the letting. JLL and Knight Frank acted on behalf of the landlord. Tetron 141 is a modern Grade A specification industrial unit comprising 132,865 sq ft of warehouse space and 8,594 sq ft of office accommodation, plus 95 car parking spaces. Located on William Nadin Way, a warehousing and logistics hub, Tetron 141’s neighbours include Bison, Clipper Logistics, Roger Bullivant, Sandvik and TNT. Melissa Wase-Rogers and Craig Herrick from CBRE’s Midlands industrial and logistics team advised Jenkins. Melissa, a director in the team, said: “The East Midlands Industrial market has remained strong throughout 2018, with 9.8 million sq ft of space (buildings over 100,000 sq ft) let during the year. “This deal is an example of a letting of a recently refurbished second hand unit that was agreed on flexible lease terms for the tenant, including a three-year break option. The landlord benefitted from a competitive rent and a negligible void period.” Derby development, ‘The Landmark’, given the go-ahead Godwin Developments, the company behind The Landmark, the proposed 202 apartments scheme in Phoenix Street, Derby, has pledged to work with the city council to now sign off the section 106 and planning conditions after the development was given the green light. The announcement came after councillors voted to reject planning officers’ recommendations to refuse the scheme, and instead voted to grant planning permission. Godwin Developments Managing Director Richard Cornes said they were delighted to have achieved consent for this important residential scheme. “We are grateful for the support from Marketing Derby, the Chapter of Derby Cathedral and from major employers such as Rolls Royce, who have recognised what we are aiming to achieve in the city – a prestigious development which reflects well on Derby and brings more people to live in the city,” he said. Writing on behalf of the Chapter of Derby Cathedral, the Dean of Derby, the Very Revd Dr Steven Hance, said: “We note that the building is located outside of the Cathedral Quarter conservation area, and that it would be the first build-to-rent in Derby, a key part any strategy for bringing city centre living back to Derby.” Plans approved for £15m Belong Beeston village Planning permission has been granted for the development of a £15 million care village in Beeston, Nottinghamshire, which will see the former Myford’s factory site in Wilmot Lane transformed into a state-of-the-art facility for not-for-profit care village operator, Belong. The plans were approved by Broxtowe Borough Council and, once the development is completed, it will create in excess of 140 new jobs in the area and provide world-leading dementia and nursing care. Belong Beeston will follow the organisation’s village model of care, combining choice, independence, an active lifestyle and a strong sense of community for over 100 residents and tenants. Village amenities will include a bistro, hair salon, exercise studio and function rooms, which will be open to the public. In addition to services for residents, the new care village will also offer specialist day care to enable people within the local community to take advantage of the amenities in a supported way. Tracey Stakes, Chief Executive of Belong, said: “We are thrilled that plans have been approved for the new Belong Beeston care village, especially since it will be our first site in the East Midlands. Our next step is to work through some outstanding issues around drainage and traffic control so that we can complete the purchase of the land and go out to tender for construction.” East Midlands Business Link 15 14-15.qxp_Layout 1 04/02/2019 10:03 Page 2Nominate yourself or another company here now www.eastmidlandsbusinesslink.co.uk/mag/bricks-2019The Bricks awards is back for 2019. Organised by East Midlands Business Link, this highly acclaimed event, which brings the property and construction sector together all under one roof, aims to recognise the outstanding work of those shaping the landscape of our region. Nominations are now open for the award categories, including: Most Active agent, Contractor of the year, Sustainable development of the year, Residential development of the year, Developer of the year, Deal of the year, Architects of the year, Excellence in design and of course Overall winner. Winning one of these prestigious awards will add considerably to a company’s or individual’s brand and enhance their commercial reach significantly. A specially selected judging panel will pick winners and be celebrated at a special awards evening on the 28th March 2019 in the Derek Randall Suite at the Trent Bridge County Cricket club.Come and join us at theEast Midlands Business Link Bricks 2019PHOTOS: SHUTTERSTOCK.COM / CHAINFOTO2416-17.qxp_Layout 1 04/02/2019 10:05 Page 1To book your place at the event or find out more about the date, time and venue, please visit: www.eventbrite.com/e/east-midlands-bricks-awards-tickets-52903127679 Categories sponsors:We hope you will join us on 28th of March 2019 at Nottingham's stunning Trent Bridge Cricket Ground, for this one-of-a-kind event. Most active agent Excellence in design Deal of the year Developer of the year Residential scheme of the year Overall Winner Architects of the year Sustainable development of the year Contractor of the year Last years’ awards sold out in advance and saw 150 professionals from the construction, development and property sectors in the region attend the ceremony. Nominate yourself or another company here: www.eastmidlandsbusinesslink.co.uk/mag/bricks-201916-17.qxp_Layout 1 04/02/2019 10:05 Page 2The engineering questionThe engineering question18 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk© SHUTTERSTOCK.COM / FUYU LIUENGINEERING18-20.qxp_Layout 1 04/02/2019 10:08 Page 1www.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 19 Businesses and manufacturers across the East Midlands are placing increased importance on engineering as they look for ways to increase efficiency on the production line. The importance of avoiding excessive waste and getting products to market faster than ever before has led to many companies investing heavily in new technology. Because consumers are demanding higher quality products in increasingly large quantities, the industry has had to find ways to increase productivity without extending timescales or ramping up costs. This is no mean feat, of course, but the widespread use of technology is helping to hasten the production process without compromising quality. There are many industrial processes that can be made more efficient by using new and improved technology, ranging from traditionally manual tasks such as cutting and cleaning to more modern procedures such as automated production lines. Automation is one of the best ways to make savings in a manufacturing environment. Repetitive, time-consuming tasks that were traditionally carried out by factory operatives can now be completed quickly and efficiently by machines. As such, factory automation makes it much easier to meet large supply demands. It makes sound business sense to invest in the latest automated solutions, which in turn drives development in the components industry. The two go hand in hand. Processes which were once carried out by hand, such as the inspection of finished goods on the production line and the cutting and cleaning of raw products, can now be completed using the latest ultrasound and laser technologies. Great strides are being made to improve the individual components that make A skills shortage, a lack of 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. 20 uENGINEERING18-20.qxp_Layout 1 04/02/2019 10:09 Page 2Next >