Next’s first quarter sales fall by less than expected
First quarter sales have fallen at Next, though by less than expected, according to a new trading statement for the thirteen weeks to 29 April.
Full price sales were down 0.7% against last year, moderately ahead of Next’s guidance which was to be down 2%.
The retailer’s full year guidance is however unchanged, with profit before tax of £795m still expected, decreasing 8.7% on last year. Next said: “Although our first quarter performance moderately exceeded our sales guidance, we believe it is too early in the year to alter our overall sales expectations for either the half or full year.”
Charlie Huggins, manager of the ‘Quality Shares Portfolio’ at Wealth Club, said: “This is another solid update from the bellwether of the UK High Street. Sales have fallen by less than expected, and although Next hasn’t increased its full year guidance, this seems to be borne more out of prudence than anything else.
“The current retail environment is sorting the wheat from the chaff. On the one hand you have the likes of Superdry, Boohoo and Asos which are really struggling, not to mention countless other retailers that have gone bankrupt. At the other end of the spectrum are the likes of Next and Primark, which appear to be getting stronger.
“Next’s strength is allowing it to snap up weaker rival’s brands (like Made.com) at knock-down prices and plug them into its online distribution network. By offering these brands, Next expands choice for customers and gives them even more reasons to keep coming back.
“Overall, Next is doing everything investors could ask of it in a difficult retail environment. Economic pressures could yet worsen as higher interest rates really start to bite. But that won’t worry Next too much. It looks to be in a much stronger position than rivals to weather any storm.”
Sportpark scores in world-leading energy efficiency assessment
The £9m extension of Sportpark in Loughborough has been awarded Passivhaus status – one of the world’s most challenging energy efficiency and comfort standards in the world.
It means SportPark’s new Pavilion 4 will provide sports organisations with environmentally future-proof accommodation in a building with triple-glazed windows, an enhanced thermal efficient airtight building fabric, external solar shading, and a highly efficient heat and ventilation system under a roof covered with solar panels to further reduce its energy demand.
The extension was delivered by the Leicester and Leicestershire Enterprise Partnership as part of the Getting Building Fund. Funds were designated for investment in local, shovel-ready infrastructure projects to stimulate jobs and support economic recovery across the country.
The LLEP was allocated £20m, supporting the SportPark expansion with £6m. Further funding support has been provided by Loughborough Town Deal.
Andy Reed, LLEP Co-Chair, said: “Sustainability is a pillar of our economic growth strategy and, in funding SportPark Pavilion 4, we enabled development of a superb building at the highest standards of energy efficiency.
“The project has also supported more than 400 jobs within the construction phase alone, brought additional sports-related organisations to our region, and created a living lab for local architecture students with an interest in sustainable building design.”
Newly opened MKM branch pledges long term support for local charity
The UK’s largest independent builder’s merchant invited the founder of A Child Of Mine, a local Stafford-based charity, to mark the branch officially opening its doors to the trade and public.
To highlight MKM’s commitment to the local community, the branch has pledged its ongoing support to A Child Of Mine with an initial donation of £1000 – which was very swiftly followed by an additional £300 raised through a raffle organised by the MKM Stafford team.
Ryan Hitchin, branch director at MKM Stafford, said: “As a local, independent business, we are extremely passionate about our local community; that’s why we are delighted to celebrate the official opening of our new branch by announcing this partnership with A Child of Mine.”
Gayle Routlegde, founder of A Child Of Mine, said: “I am so incredibly grateful to MKM Stafford for choosing us as its charity partner. A Child Of Mine is a small charity – in fact, full time it’s just me, and we have one part time helper – so the support of a local business like MKM Stafford really does mean the world to us.
“At A Child Of Mine, we support bereaved parents and their families by providing accurate, practical information, working to improve professional bereavement services, and delivering direct services to families who have lost a child, including financial assistance. Our ultimate goal is to connect families who have had this experience, offering support and letting them know they are not alone.”
Ryan Brammer, branch director at MKM Stafford, added: “This partnership isn’t a one hit wonder for us, we really want to support Gayle in her mission at A Child of Mine however we can. All of our newly formed team, bar one, are parents, so it’s a matter close to all of our hearts.
“Our ongoing support will include providing materials for in-person events for the charity, raising awareness of their fantastic work through our own social media channels, and donating stock where appropriate. At MKM Stafford we’re here to support A Child of Mine for as long as they want us too.”
Open to both the trade and general public, MKM Stafford is a purpose built, state-of-the-art builder’s merchant that is conveniently located on Stone Road, just a short drive from the town centre, and five minutes from the nearby Tollgate Industrial Estate.
Creating 20 new jobs in the area, the branch provides an extensive range of building materials, plumbing and heating, timber, landscaping, joinery and more. The branch also boasts a stunning kitchen and bathroom showroom and outdoor landscaping display, which showcases all the latest designs, colours and trends.
Ryan Hitchin, MKM Stafford’s branch director, concluded: “We might be a new independent business, but we have a highly experienced and skilled team on-hand to help our customers every step of the way, no matter what project they are working on.
“The people we have selected for our newly formed team are truly the best of the best – not only are they fantastic at what they do, but they all share a common goal with us; making MKM Stafford a great place to work.
“Our aim and commitment is to provide outstanding levels of customer service in a welcoming, friendly and fun environment. In addition to our extensive product offering, we also offer a range of first-class services, from free same day or next day delivery, to free kitchen and bathroom design services.”
Both hailing from the Staffordshire area, and with almost 40 years of industry experience between them, both Ryan Hitchin and Ryan Brammer are ideally suited to take on the task of helming the new MKM Stafford branch. They are both excited by the challenge, and relish the opportunity of running their own business with MKM.
BrandAlley acquires Internet Fusion Group preserving jobs at Kettering distribution centre
BrandAlley, the off-price premium and luxury brand e-tailer, has purchased certain assets of Internet Fusion Group, a global multi-platform e-commerce business, that includes Country Attire and Surfdome, as part of its expansion plans.
The move marks a significant strategic opportunity to enhance BrandAlley’s infrastructure and will render BrandAlley operations more cost-effective.
In addition to IFG’s intellectual property across multiple domains, BrandAlley is acquiring the logistics operation and customer service division out of administration and preserving over 125 jobs.
BrandAlley will not trade from IFG domains and will not be purchasing IFG’s existing payables or stock, however customer orders currently with carriers will be delivered.
The investment comes at a time of focused growth for BrandAlley, following 15 consecutive years of successful trading and multiple acquisitions including Achica, Cocosa, Lombok and BrandAlley France.
Rob Feldmann, CEO of BrandAlley, said: “The IFG customer is very much aligned to our existing customer profile and the acquisition will enhance our existing operational structure to deliver the best possible service for our members. We look forward to welcoming over 125 new employees from IFG to the BrandAlley family, all of whom will be key in driving our exceptional customer experience.”
The acquisition was delivered in conjunction with Director of M&A Advisory, Simon Smith of Full-Pitch Consulting.
Legal advice was provided by Rob Russell, DLA Piper.
Nottingham lawyer makes partner in Shoosmiths’ latest promotions round
Law firm Shoosmiths has announced eight new partners in its May promotions round.
In the firm’s Nottingham office, Matthew Kemp has been appointed as partner. Kemp advises funds, landlords and corporates, with a particular focus on investment.
The other new Shoosmiths partners are: Jill Briggs, Kate Garcia, Holly Hirst, Liz McKillop Paley, Chris Moakes, Lisa Sigalet and Brian West.
Shoosmiths has also promoted 12 to legal director and 24 to principal associate.
Shoosmiths chairperson, Peter Duff, said: “We would like to thank all this year’s promotees for their contribution to Shoosmiths. The dedication they have shown to clients and their commitment to Shoosmiths’ values has been exceptional.
“At Shoosmiths, we are committed to developing and nurturing our people to create the best lawyers of tomorrow – getting this right is integral to Shoosmiths’ strategic expansion across our chosen markets in the years to come.”
Administrators secure future of Nottingham manufacturer
After being appointed joint administrators to Nova Group Products Limited on 2 May 2023, Tim Bateson and Howard Smith from Interpath Advisory have secured the business’s future.
Based in Nottingham and previously known as Fabriweld, the company is a manufacturer and processor of aluminium and steel products, primarily focussed on home speaker accessories and casings for commercial electric vehicle charge points.
The business had faced a significant drop in revenue over the last two years due to lower demand for consumer-led products. With pressure on cashflow building, the directors explored a number of funding options but, with no solvent solution to be found, took the decision to seek the appointment of the joint administrators.
Immediately following their appointment, the joint administrators concluded sales of the business and assets to Innovation Lifts Limited and Innovation Group Products Limited, two companies affiliated to Nottingham-based Innovation Laser Limited.
As part of the transactions, all of the company’s 25 employees will transfer to the purchasers.
Tim Bateson, director at Interpath Advisory and joint administrator, said: “From its home in Nottingham, Nova Group has been producing quality products for over 40 years, so we’re pleased to have been able to conclude these transactions which will enable production to continue and jobs to be preserved. We wish the purchasers and the company’s skilled employees all the very best for the future.”
Leicestershire-based baker to the Royals rises to challenge of a greener future ahead of King’s Coronation
A Leicestershire-based cake making business, that has provided cakes for The Royal Family, is reducing its emissions and energy usage with the installation of 4,500 sq ft of solar panels, supported by funding from Lloyds Bank.
Fiona Cairns is a luxury bakery brand that designs and makes cakes for all occasions. A favourite of The Royal Family’s, the team made the Royal wedding cake for their Royal Highnesses, the Prince and Princess of Wales. They supply cakes and biscuits to high-end retailers including Waitrose, Harrods, Fortnum and Mason, and Selfridges. The company also exports on a weekly basis to Dunnes Stores in the Republic of Ireland.
The family business was founded almost 40 years ago by Fiona Cairns, a former pastry chef who honed her skills in Michelin starred Hambleton Hall, Rutland, and her husband in 1986. Now, the company has more than 120 staff and is a second-generation family business.
The company is now focussing on introducing sustainable initiatives that will help the firm remain resilient, become more cost effective, all while having a minimal impact on the planet.
To support the firm to meet its green ambitions, it approached Lloyds Bank, securing funding via the Clean Growth Financing Initiative, which provides customers with access to discounted lending for green purposes. With this support, solar panels have been fitted to one of the business’s three production units, covering 4,500 sq ft.
The panels will supply almost a third of the building’s energy, equating to around 10% of the business’s total energy usage, and reduce CO2 emissions by 15 tonnes per year. The business is also looking at opportunities to increase this figure by using the electricity generated during the factory’s non-operational weekend hours to charge its fleet of three electric forklift trucks.
The business recently became RSPO certified for demonstrating that its palm oil comes from sustainable sources. Its food waste is used to help generate electricity, and as of April 2023, the cakemaker will aim to send zero waste to landfill. Most of the firm’s packaging is currently produced locally by Leicestershire suppliers, and the company is looking at strategies to reduce the quantity used, including shrinking the size of the plastic windows in its cake boxes.
Further plans are also in the pipeline to install solar panels across all three production units on site, with the hope that renewable energy will be the dominant energy source in the future.
Tara Patel, director at Fiona Cairns, said: “Sustainability is something I’ve been passionate about for a long time, and as the next generation of leadership, it’s important to look at all areas of the business to see where we can reduce our impact on the environment. The installation of our solar panels forms just one part of our sustainability journey, and when combined, these changes are helping us to bring down the emissions of our business.
“Retailers are increasingly scrutinising the emissions of their suppliers. As a partner to some of the UK’s most prominent retailers, it’s our responsibility to ensure we’re operating as sustainably as possible, helping them to achieve their net zero ambitions, as well as our own.”
Noshad Khowaja, relationship director, SME banking at Lloyds Bank, said: “Fiona Cairns is a fantastic brand which has built an excellent reputation with its customers. From royalty to the supermarket shelf, it’s great to see a local firm like this not only succeed in the world of business but also realise the benefits and opportunities that come with sustainable changes.
“The food and drink sector accounts for over a quarter of the planet’s greenhouse gas emissions. At Lloyds Bank we’re committed to helping businesses such as Fiona Cairns to reduce their environmental impact and supporting sectors to work towards a low carbon economy.”
Support for disabled passengers earns award for East Midlands Airport
East Midlands Airport has won a prestigious Business Disability Forum ‘Disability Smart Inclusive Customer Service’ award in the category of inclusive customer service.
Disability Smart Awards recognise the work of teams and individuals who have gone above and beyond to improve the experiences of disabled people, and ten were presented at an event in London.
Chris Drury, Head of Customer Services at EMA, said: “This award shows our recent investment is being recognised and, more importantly, passengers who rely on the support of our assisted travel team can easily access travel for which there should be no barriers.”
East Midlands Airport was congratulated for its innovative and inclusive approach to customer service. The airport has invested heavily in new specialist equipment for disabled passengers. It has introduced easier ways for customers to communicate with the Assisted Travel team wherever they are in the airport.
Key to the success of the airport’s inclusive approach to customer service is the relationship with its independent Accessibility Advisory Group. Christiane Link, who chairs the forum, said: “This award truly reflects EMA’s passion for creating an inclusive environment for all customers. It is a significant accomplishment and testament to the work and commitment of the airport’s Assisted Travel team.
“East Midlands Airport understands that the lived experience of disability is vital to improving the customer experience. The airport is in constant conversation with me and the advisory group, and it is a pleasure to advise them and see passengers benefit from our collaboration.”
Phenna Group makes fifth acquisition of 2023
Nottingham-headquartered Phenna Group has made its fifth acquisition of 2023 with Cansford Laboratories, cementing a strong start to the year whilst augmenting its rapidly developing Health Sciences platform and adding complementary services to existing offerings.
Phenna aims to invest in and partner with selected niche, independent Testing, Inspection, Certification and Compliance (TICC) companies that serve a variety of sectors, ensuring customers’ peace of mind by delivering first class assurance & consultancy services.
Formed in 2010 and accredited to ISO 17025:2017, Cansford Laboratories has established its position as a fast, reliable, and innovative leader in high quality drug, alcohol, and steroid testing. Its founders pioneered hair testing more than 30 years ago, dedicating their careers since to improving and expanding the possibilities of drug and alcohol testing. Today, its methods are used by laboratories across the globe.
From a base in Cardiff, it offers a UK-wide testing service for individuals and organisations in family law, social care, criminal law, education, and the workplace. Cansford’s team of experts offer hair, oral fluid, nail, and dry blood spot testing with related services including collection and expert witness support.
John Wicks, CEO of Cansford Laboratories, said: “We are thrilled to be partnering with Phenna Group. Having been through acquisition processes in the past, I fully appreciate how challenging they can be. Since first meeting Paul and his team, they acted very professionally, ensuring a smooth and commercially focused process.
“Our interactions have been very straight forward, and I’m convinced that Phenna will provide exactly the support we need to help us deliver our exciting future growth plans. Cansford Laboratory have a great team culture and securing a partner that valued that was paramount in our decision making. I look forward to working with the Phenna Group team into the future.”
Paul Barry, Group CEO of Phenna Group, said: “Cansford Laboratories is a business that we’ve admired for a while, and I’m absolutely delighted that John and Lolita have decided to partner with us. From our early engagements, it was very obvious our values and cultures aligned and that together, we could continue to build on their already impressive track record.
“This deal augments our developing health sciences division and I look forward to welcoming their talented team into our Group and to working with them all, to deliver continued success for the business.”
Phenna Group were advised by RSM and Avonhurst. Cansford Laboratories were advised by Lexington Corporate Finance and Berry Smith LLP.
Thomas Edwards, a director at Lexington Corporate Finance, said: “It came as no surprise to us that there was significant interest in Cansford from both trade and private equity buyers, considering the organisation’s impressive reputation as a leader in high quality drug, alcohol, and steroid testing.
“The business has scaled up considerably since its formation in 2010, thanks to the leadership of John Wicks and Lolita Tsanaclis, so it needed a buyer that matched this ambition. From working with Cansford it became clear that Phenna was the ideal fit.
“This transaction builds on Lexington’s strong credentials in the healthcare and TICC sectors, increasing the total value of deals Lexington has advised on in 2023 to almost £150 million.”
Linkline secures £12.5m to accelerate growth
Linkline Transport Limited, a family led warehousing and logistics business based in Wellingborough who boast clients such as Primark and GXO, has been provided with a facility worth £12.5 million from Shawbrook to fund their ongoing growth.
Founded in 1993, Linkline offers logistics, haulage, warehousing, and pallet network services across the UK. The business has grown exponentially in recent years under the leadership of Managing Director, James Bowes who assumed the position in 2021. Under James’ leadership the company expanded into the warehousing sector and is now looking to accelerate its growth and move into further sites.
Shawbrook’s hybrid funding package worth a total of £12.5 million, includes a £5 million Confidential Invoicing Finance loan to support working capital requirements. In addition, a structured cash flow facility to support expansion plans is included within the deal. The funding allows Linkline to enhance their current services as well as providing them the headroom needed to explore expansion into additional sites in the near future.
Dave Hilton, partner at Mazars conducted the Debt Advisory process on the deal. Matt Ingram at Squire Patton Boggs acted for Shawbrook and Dave Easdown of Knights Legal acted for Linkline. The Financial Due Diligence was completed by Knights Transaction Services.
James Bowes, Managing Director of Linkline Transport, said: “Linkline at its heart is a family-owned enterprise and having grown up with the company it is exciting to see the growth we have experienced. Shawbrook has been a fantastic partner throughout the process and ultimately offered us a package that could not be matched in its scope and flexibility.
“I greatly look forward to continuing to drive the business forward, with a particular focus on our high-quality warehousing facilities and am pleased to be able to do so with the support of Shawbrook.”
Dave Hilton, partner at Mazars, said: “I have had a great relationship with both Shawbrook and Linkline for some time and it was a real pleasure to bring these parties together to facilitate this deal.
“Linkline is a promising enterprise that has seen an exceptional level of success in recent years. With the leadership of James being coupled with the funding from a proven lender like Shawbrook, I have no doubt the business will continue to go from strength to strength.”
Daniel Martin, senior director at Shawbrook, said: “Linkline are a strong family led enterprise who have been growing at a phenomenal rate in the last few years and we believe this additional funding will help them build on the fantastic platform they already have.
“James has been a driving force behind the incredible growth they have experienced. His leadership has taken the business from strength to strength, and we look forward to supporting him as the business continues to expand.”
