Inflation nears Bank of England target

Inflation has continued its journey towards the Bank of England’s 2% target, coming in at 2.3% in April, down from the 3.2% reported in March. Measured by the consumer prices index (CPI), it is, however, slightly ahead of forecasts (2.1%). Falling gas and electricity prices resulted in the largest downward contributions to the monthly change, while the largest, partially offsetting, upward contribution came from motor fuels. There were also large downward effects from alcohol and tobacco, food and non-alcoholic beverages, recreation and culture, and communication. Meanwhile, core inflation, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, stood at 3.9% in the 12 months to April 2024, down from 4.2% in March. Alpesh Paleja, CBI Lead Economist, said: “A big fall in inflation was always on the cards for April, given Ofgem’s 12% cut to the energy price cap. Households and businesses will welcome a more benign inflationary environment, but it’s worth noting that many will still be struggling with a high level of prices, particularly in food and energy bills. “Today’s data further sets the stage for interest rate cuts in the coming months. While the Monetary Policy Committee is likely to reduce interest rates over the summer, they are still holding out for more definitive falls in measures of domestic price pressures. “It’s encouraging that pay growth is now a touch below the Bank of England’s forecast, but there’s still a long way for it to get closer to levels consistent with inflation at target. “The Bank will also be mindful of growing upside risks to inflation in the near-term: with the growth outlook improving at home, and tensions in the Middle East threatening to stoke commodity prices and supply pressures globally.”

Leicester rag trade £1.3m tax fraudsters handed jail terms

The directors of a Leicester clothing company that supplied high street and online retailers have been jailed for a £1.3m tax fraud. Hifzurrehman Patel, 40, and Ehsan-Ul-Haque Dawood Patel, 46, set up a sophisticated network of front companies to evade VAT between 2014 and 2017. They were caught after a specialist rag trade taskforce made an unannounced visit to their Midlands Trading Ltd factory in December 2015. The taskforce, which included officers from HMRC, became suspicious when staff clock cards completely disappeared during a tour of the factory while the business also handed over false invoices. Investigators discovered the pair had been diverting VAT liabilities to a string of front companies, by claiming they produced clothes on their behalf. It meant they evaded paying £1.3m of VAT on the clothes they were in fact producing themselves and selling on to unsuspecting high street and online retailers. The pair were jailed for a total of nearly nine years at Leicester Crown Court on 17 May 2024. Hifzurrehman Patel of Evington Parks Road, Leicester, was sentenced to five years in prison having been convicted of conspiracy to evade VAT, contrary to section 1(1) of the Criminal Law Act (1977), and two counts of money laundering. Ehsan-Ul-Haque Dawood Patel, of Homeway Road, Leicester, was sentenced to 47 months in prison having been convicted of conspiracy to evade VAT, contrary to section 1(1) of the Criminal Law Act (1977), and two counts of money laundering. Mark Robinson, Operational Lead in HMRC’s Fraud Investigation Service, said: “Hifzurrehman and Ehsan Patel carried out a relentless and sustained attack on the tax system. They invented contracts and forged documents to evade VAT. This is money that should have been helping to fund our public services and was instead spent on cars and property. “Tax fraud is not a victimless crime. It has real consequences for the public services we all rely on and we are working hard to ensure tax cheats do not gain an unfair advantage over their law abiding competitors.” Paula Lloyd, Specialist Prosecutor in the Crown Prosecution Service, said: “While other businesses were doing the right thing by paying their taxes, these criminals thought they could enjoy a cushy lifestyle paid for hardworking taxpayers. “The CPS will be taking them back to court to confiscate any goods or assets they bought using money from their offending. “We are determined to ensure tax dodgers face the full consequences and hopefully this will make others think twice before they do the same.” A further three people were convicted for their roles in the fraud. Pravinbhai Purshotam Valland, 54, was handed a suspended two-year prison sentence at Leicester Crown Court on 17 May 2024. Mohsin Dawood Patel, 42, and Munaf Yusuf Banglawala, 62, will be sentenced at the same court on 21 June 2024.

Final handover of family homes for new Bestwood community

Vistry Group, the provider of affordable mixed-tenure homes, has celebrated the final handover of new family homes at their Ridgeway development in Nottingham. The final home was completed and handed over 20 months after the development received planning permission.

 

Situated on a 4.2-acre brownfield site in the Bestwood area of Nottinghamshire, the 71 one-, two-, and three-bedroom properties comprise 33 affordable homes, built on behalf of Nottingham City Council and 38 homes for private rent through Start Living, the single-family build-to-rent platform established by Gatehouse Investment Management and TPG Real Estate Partners.

 

All the homes were built using modern methods of construction (MMC) reducing the carbon footprint of every property. The properties were manufactured off site using open panel timber frames from the Vistry Works East Midlands factory in Bardon in neighbouring Leicestershire. Each home built using these panels emits 14,460kg CO2e less than a traditional brick-and-block house and has a faster construction time.

 

The development’s completion heralds a new era of enhanced living standards for residents and the local community, with landscaping, public open spaces, and road improvements. The wider community has also benefitted from investment with £1,911,255 towards local educational and a further £85,764 going to other services.

 

Lee Parry, Managing Director of Vistry North East Midlands, said: “We are thrilled to mark the successful handover of the final homes on our Ridgeway development. This milestone represents not just the final stages of this project but also the beginning of a new chapter for the residents as this new community flourishes.”

 

Councillor Jay Hayes, Portfolio Holder for Housing and ward representative for Bestwood at Nottingham City Council, said: “I’m delighted to see these new properties reach completion, ready to become family homes in a part of the city with high levels of housing need. We’re creating new communities that everyone who lives in the area will benefit from.

 

“The amount of housing being delivered currently in Nottingham is a positive sign and it’s also a clear indication of the willingness for developers to invest here. Construction activity has a large and positive impact on jobs and the local economy, so this is great news for Nottingham.”

 

John Coles, Head of Acquisitions at Gatehouse Investment Management, added: “Ridgeway was one of the first Start Living locations to be acquired, forming part of our wider investment in the area, and it is hugely pleasing to see the final properties delivered.

 

“Many residents are already enjoying the high-spec homes and fantastic local amenities that Ridgeway has to offer, and we look forward to more families moving into these last few homes. We are also due to launch an additional 64 plots at the adjacent Padstow site in the coming months, which is already generating strong interest.”

Housebuilder’s £3.5million investment helps create thriving communities across East Midlands

An East Midlands housebuilder has pumped more than £3.5million into improving local communities. Redrow East Midlands, which is currently building at seven developments across the region, has made a significant investment into all its surrounding communities – over £3.5million – and isn’t finished yet. With developments proving popular with buyers looking for their dream home, Redrow East Midlands has been hard at work supporting the surrounding areas, providing funds to support local education services, infrastructure and biodiversity. Supporting local bio-diversity a key priority, and the developments have seen hundreds of pounds poured into the creation of animal-friendly spaces, with woodland planting and meadow grasslands aimed at making the developments a sanctuary for nature, as well as residents. Across Leicestershire, Redrow has invested over £752,000, with a further £706,000 still to be invested in supporting local communities to thrive. At Foxbridge Manor, in Castle Donington, Derbyshire, over £1.2million has already been invested in the local community, with a further £1.1million still to be invested – including in local youth and adult facilities, and support for local recreational grounds. Meanwhile, at Redrow at Nicker Hill, Nottinghamshire, over £600,000 has already been invested into local health and education services, as well as funds to help maintain the local bus stops and provide bus taster tickets to local people. Further contributions of almost £200,000 are underway to improve local sports facilities and swimming pool. The housebuilder is also implementing measures to reduce its carbon footprint, closely monitoring its water, electricity and gas usage to reduce environmental impact as much as possible. Ryan O’Sullivan, Sales Director for Redrow East Midlands, said: “We are thrilled to be continuing to support East Midlands communities and improving the sustainability of our already popular developments, while bringing much-needed homes in the region. Our commitment to creating thriving communities benefits the local area, our residents and those looking to move in the future. “With investment in local education providers, youth and adult facilities, and biodiversity, we are proud of the difference we’ve made so far and are excited to continue supporting the region. “Our developments are proving incredibly popular with buyers and we’d encourage anyone looking to purchase a new home to come along and chat to our friendly team about how we can help you find your dream home!”

New Leader and Deputy Leader of Nottingham City Council officially appointed

The new Leader and Deputy Leader of Nottingham City Council have been officially appointed. Councillor Neghat Khan and Councillor Ethan Radford are the youngest team to hold the top two council positions in Nottingham. Councillor Khan was officially appointed as Leader at a formal city council meeting on Monday evening (20 May). She is the first woman of colour to be Leader and only the second woman to hold the role. Councillor Khan, who represents the Dales ward in the city, leads the majority group of Labour councillors in Nottingham. Councillor Ethan Radford was appointed as Deputy Leader. He has served as a councillor for Bulwell since 2019 and has worked with the Executive group of councillors for the last two years. They replace councillors David Mellen and Audra Wynter who have been Leader and Deputy Leader since 2019 and 2023 respectively. Councillor Khan, who has been a city councillor for 10 years, said: “I’m proud to serve as Leader of the Council. I am ambitious for Nottingham, where I was born and grew up. I care about the people who live, work and study here and I want only the best for our neighbourhoods and communities. “Nottingham is a diverse city and it now has its first British-Asian leader. I hope that young women and young people of colour from Nottingham, like my son who is 12, see that there should be no barrier to their ambitions and aspirations. “It is no secret that Nottingham faces significant challenges, but I have never shied away from a difficult situation. I will work with senior officers and Government Commissioners to drive forward the changes needed to continue the council’s improvement journey. The people of Nottingham deserve nothing less. “Money remains tight, and we know that further difficult decisions will be needed. However, I believe that cuts to our funding does not mean we can’t afford to be ambitious; it means we can’t afford not to be. What Nottingham needs now more than ever is politicians ready to rise to the challenge facing us, setting a renewed vision for our city, and achieving the promises we made when we were given a clear mandate from the public at the last local election. “I would like to pay tribute to Councillors David Mellen and Audra Wynter for their hard work and dedication as the previous Leader and Deputy Leader. They have helped to lay the foundation for significant changes and improvements in Nottingham – not least their work to secure the devolution deal that will now see us working closely alongside the Mayor of the East Midlands, Claire Ward, to fight for a fairer share of funding for the city. “I’m clear that our council cannot work in isolation. I want to work with partners, businesses and the voluntary sector to give Nottingham a fresh start.” Councillor Radford said: “I’m honoured to be appointed as Deputy Leader of the Council – and I am determined to deliver improvements for the people of Nottingham. “We have all lived through the last 14 years of austerity and reduced funding to public services which have, in turn, led to cuts to the services we all rely on. Public services are in crisis. These difficult times have led to real challenges in delivering on our ambitions for Nottingham but it is vital that we remain ambitious for our city. “The leaders of this city need to be united, pulling in the same direction with a shared vision for our city, built on a solid foundation of trust. Neghat and I have worked together for a number of years and have skills and abilities that together cover a wide area and complement each other. We offer Nottingham strong political leadership focussed on fulfilling our promises to voters, delivering for residents by working with the regional mayor and the Police and Crime Commissioner. “We want to protect services and jobs, and optimise every pound spent in Nottingham. By targeting root causes of major cost areas to the authority, we can reduce costs but maintain value, support communities, and invest in Nottingham’s future.” Councillor Khan will also be Executive Member for Strategic Regeneration, Transport and Communications, and Councillor Radford the Executive Member for Skills, Growth and Economic Development. The Leader and Deputy Leader are joined by a Cabinet of six Executive Members who were also confirmed at the Full Council meeting:
  • Councillor Linda Woodings, Executive Member for Finance and Resources
  • Councillor Cheryl Barnard, Executive Member for Children, Young People and Education
  • Councillor Jay Hayes, Executive Member for Housing and Planning
  • Councillor Corall Jenkins, Executive Member for Communities, Waste and Equalities
  • Councillor Pavlos Kotsonis, Executive Member for Adults Social Care and Health
  • Councillor Sam Lux, Executive Member for Carbon Reduction, Leisure and Culture

Future of Buxton Brewery secured following pre-pack deal

The future of Buxton Brewery has been secured following a sale of its business and assets to Happy Place Investors Limited. Rick Harrison and Howard Smith from Interpath Advisory were appointed joint administrators to Buxton Brewery Company Limited and Axe Edge Bars Limited on 20 May 2024. Founded in 2009 and operating from a custom designed and built brewhouse in Buxton, Derbyshire, the Group is a producer and retailer of craft ales, producing upwards of 30 distinct brews, with volumes of around 3,500 litres per brew, seven times per week. Trading under the Buxton Brewery brand, it supplies several supermarkets and pub chains nationally, as well as exporting overseas through a number of export partners. In addition, the Group also operates four taprooms and bars located in Buxton, alongside a pop-up bottle shop and online store. In common with many other craft breweries, Buxton Brewery had experienced financial pressures in the wake of the Covid-19 pandemic, which were then exacerbated in more recent times by high-cost inflation and increases to interest rates. The director sought to explore their options, including options for sale and investment, but with creditor pressure mounting, the director took the decision to seek the appointment of the administrators. Immediately following their appointment, the joint administrators sold certain of the business and assets of the Group to Happy Place Investors Limited. The deal safeguards the future of the brewery and the Group’s taprooms and bars in Buxton and the employment of all 50 members of staff who have transferred to the purchaser as part of the transaction. Rick Harrison, managing director at Interpath Advisory and joint administrator, said: “Independent craft brewers have had to navigate a number of headwinds in recent times, not least the long-term impact of the pandemic, as well as the impact of inflation on raw material costs. “We’re therefore pleased to have concluded this transaction which safeguards the future of this well-regarded craft ale brand and its collection of popular taphouses in Buxton. We wish the purchaser and all of the team at Buxton Brewery all the best for the future.”

Topps Tiles sees slip in results

Topps Tiles, the Leicester-based tile specialist, has a seen a slip in its results. According to unaudited consolidated interim financial results for the 26 weeks ended 30 March 2024, group revenue was £122.8 million, down from £130.3 million in the same period last year, driven by lower footfall in Topps Tiles. Meanwhile, the firm fell to a loss before tax of £1.5 million, dropping from a pre-tax profit of £1.7 million last year. The results come as Topps Tiles sets new financial goals and an updated strategy for growth in the medium term.

Rob Parker, Chief Executive, said: “Trading conditions in the first half have been challenging in a tile market which is down 20% on 2019. Against this backdrop, we are continuing to take market share, our online pure play businesses are growing strongly and the Group remains in a robust financial position.

“Lead indicators of market activity such as mortgage approvals, consumer confidence and smaller ticket DIY spend are improving, and while we are yet to see this feed through into our customer’s spending patterns, as market leader Topps Group remains well-positioned for recovery.

“Notwithstanding the challenges of current market conditions, we believe that Topps Group has a substantial opportunity to increase sales and profitability over the medium term through our new growth strategy of Mission 365.

“Mission 365 includes the development of new digital platforms for Topps Tiles trade customers; an increase in our addressable market of 75% by entering new product areas adjacent to our core tile specialism; a drive for accelerated growth in B2B markets through a more co-ordinated Group-wide approach; and continued momentum in our high growth online pure play businesses, Pro-Tiler and Tile Warehouse.

“Together these initiatives represent an opportunity to grow sales to £365 million over the medium term, while delivering profit before tax margins in the range of 8-10%.”

Shoe Zone delivers “robust performance”

Leicester footwear retailer, Shoe Zone has “delivered a robust performance,” according to interim results for the 26 weeks to 30 March 2024.

Revenue at the business grew to £76.5m, up from £75.4m in the same period of the year prior. This was supported by a 19.6% increase in digital revenue, to £17.1m, while store revenue dipped, down 2.8% to £59.4m.

Adjusted profit before tax meanwhile stood unmoved at £2.5m.

In a statement to the London Stock Exchange, Shoe Zone said: “Shoe Zone delivered a robust performance in the period against a continuing backdrop of consumer uncertainty and macroeconomic volatility. Total revenues increased by 1.5% having traded out of 27 fewer stores compared to 12 months ago, with digital revenue increasing by 19.6%. The performance further demonstrates the resilience of our business and the success of our ongoing strategy.

“Trading over all channels was positive with total revenues of £76.5m (2023 H1: £75.4m), store revenues were £59.4m (2023 H1: £61.1m – trading out of fewer stores), digital revenues were £17.1m (2023 H1: £14.3m) with strong performance across all online channels with additional growth from our online exclusive range and range extensions.

“Adjusted profit before tax was £2.5m (2023 H1: £2.5m), which is in line with management expectations for the period.

“We ended the period trading out of 309 stores, which is a reduction of 27 compared to 12 months ago and 14 lower compared to last year end. In the first half we closed 29 stores, opened 15 new format stores and refitted 15 Original stores to our new format. In total we are now trading out of 147 Original stores and 162 new format stores. We are actively working to relocate and refit further stores in the second half of the year, together with a number of stores currently in the pipeline, opening before Christmas.”

Transreport partners with East Midlands Airport

Transreport, a pioneering tech company specialising in inclusive travel solutions, is thrilled to announce its partnership in the aviation industry with East Midlands Airport (EMA), part of the MAG Group and one of the UK’s leading airports in accessibility. With over four million passengers flying annually from EMA to over 80 leisure and business destinations, the introduction of Transreport’s flagship technology – Passenger Assistance – marks a significant milestone in the company’s journey. Transreport’s partnership with EMA will empower more passengers to fly with confidence through streamlined processes and greater accessibility, facilitating a more inclusive air travel experience for all. Winners of the 2023 Business Disability Forum “Disability Smart Inclusive Customer Service Award”, EMA is dedicated to improving customer experience for disabled and older people. This is reflected in their continuous investment throughout the airport which includes the purchase of new, and the refitting of existing, high-lift vehicles, as well as the installation of a live chat service allowing passengers to request assistance. These efforts have been acknowledged by the Civil Aviation Authority, further affirming the airport’s commitment to creating an inclusive environment. Transreport will collaborate closely with EMA to take these efforts to the next level. Recent global expansion has also extended the reach of Transreport’s accessible technology to Japanese rail, which is renowned for exceptional standards of service. There is a clear growth in demand for accessible travel within UK air travel, with 3.45 million passengers requesting assistance in 2022 according to the CAA Airport Accessibility Report. Transreport have transformed accessible travel in UK rail, partnering with train operating companies to facilitate over 2.4 million journey legs since the launch of Passenger Assistance in 2021. By expanding their reach to Japanese rail and aviation, they have diversified the transportation modes and geographies their technology is integrated with, to shape inclusive travel experiences on an international scale. Jay Shen, CEO of Transreport, comments: “The team at East Midlands Airport are already pioneers in inclusive travel. As well as being recognised for their commitment to accessibility and inclusion, they are award-winning in the accessibility space. At Transreport, our technology has been specifically designed for disabled and older people, and we are excited to work with an airport where they hold themselves to an incredibly high standard, in order to provide excellent service to all customers. “These are just some of the reasons why we are so excited to start our partnership in aviation with EMA. We recognise that disabled and older people can encounter barriers to access whilst travelling, but we also know there are many already working hard to change that – including the team at EMA. At Transreport we’re committed to reshaping those experiences into positive ones, and working with EMA, we know our technology can facilitate greater inclusion in the air travel experience.” Transreport’s innovative Passenger Assistance technology empowers staff to deliver exceptional service and support to customers. By streamlining processes and providing comprehensive passenger profiles, staff can offer personalized assistance tailored to individual needs. The technology enables seamless coordination between office and frontline teams, ensuring a consistent and elevated experience for customers throughout their journey. With real-time visibility into assistance requests, staff can proactively manage operations and allocate resources effectively. Sophisticated reporting capabilities provide valuable insights, enabling continuous improvement and enhancing operational efficiency. Transreport’s solution equips staff with the tools to provide unparalleled service, fostering a seamless and inclusive travel experience for all. EMA’s Customer & Planning Director Mike Grimes said: “We’re really pleased to be working with Transreport to become the first UK airport to offer this more personalised approach to our popular assisted travel service. Our aim is to offer an effortless travel experience to all our customers and we’re really proud that we already achieve high levels of customer satisfaction with our assisted travel service. With this new technology, we can provide a tailor-made service which will give customers all the information and choice they could want on their journey through the airport, so they can relax and start enjoying being on holiday before their plane even leaves.”

Digital marketing agency doubles turnover

A Derby marketing agency launched during lockdown is celebrating after doubling turnover in the last 12 months, surpassing one million pounds for the first time. Alphageek Digital has reached the milestone after less than five years in business during which it has picked up more than 50 clients based across four continents. The firm’s annual turnover passed £1.2m in the last financial year – more than a 50% growth on the previous year, with continued progress this year. The agency, which was founded by friends Art Lindop, Alex Mills and Kieran Flynn, is committed to further sustainable expansion during 2024. Managing Director Art Lindop said: “When we launched Alphageek Digital back in 2020 it was an exciting time for the industry – everyone was moving online and so we were in our absolute element. “The true test was when business returned to normal, but by then we had begun making a name for ourselves and were working with some high-profile clients, so we’ve never looked back. “This fiscal year has been outstanding for us and we’re really proud of everything we have achieved. We’re a very ambitious team operating in a young and dynamic industry and every day we’re proving that you don’t need to be a big London agency to win international clients. “The entire team has worked together to create a set of brand values that we are very much aligned with and I believe we have surrounded ourselves with an excellent crew, so the future is really bright for Alphageek.”