Bakery business takes on new premises in Market Harborough
The Garage Bakehouse is moving into a 1,500 sq ft unit at Market Harborough’s E1 Welland Business Park.
The bakery’s retail outlet is on Roman Way in the town – an area of huge commercial activity for Eddisons, where employees understand the bakery element of the business will move to E1 Welland Business Park to allow for business growth in expanding its current Roman Way setting.
Museum forms partnership with heating tech giant to build industry skills for the future
Derby Museums has formed a new partnership with Vaillant, bringing new investment to develop future engineering skills in the region.
Vaillant is the largest employer in Belper with additional sites across Derbyshire and is a manufacturer of heat pumps, boilers and complimenting heating system products. Having invested more than £50m into the region, it is now partnering with Derby Museums on a new suite of educational programmes designed to inspire the apprentices, engineers and makers of the future.
This partnership will also see Vaillant as the exclusive sponsor of the Assemble: Derby’s Making Festival which will be hosted on Saturday 26 October. For the next three years, Vaillant will collaborate on special workshops for visitors to get involved and understand low carbon alternatives in heating and new initiatives in education and skills development for the region.
Visitors to the Museum of Making will be able to learn more about a low carbon future through its new Power Pod display. The display showcases the innovations from both Vaillant and its sister brand Glow-worm, looking at heritage boilers from the past and heat pump technology for the future, alongside other industrial artefacts from Derby Museums’ collections.
The partnership will also see the creation of a ‘Launch into Engineering’ project – where secondary school pupils will be invited to spend time in the Museum of Making’s Workshop, visit the Vaillant manufacturing plant and get a taste of life in the heating industry.
Henrik Hansen, Managing Director of Vaillant in the UK & Ireland, said: “Our partnership with Derby Museums is a great way for us to celebrate our local manufacturing heritage. We’ve been in Derby for 90 years with Glow-worm and this year we are proud to celebrate 150 years with Vaillant.
“We are a major employer in the area and are looking to promote engineering and manufacturing in the region and to continue investing in Derby, making the city attractive for current and future generations.
“We value the opportunity to support Derby Museums through educating the public on manufacturing engineering skills. We are especially excited to link the partnership to our Apprenticeship programme with Derby College, as a major manufacturer in the region it is our responsibility to support and invest in our young people to secure the future of low carbon home heating.”
Cathy Putz, Director of Programmes at Derby Museums, said: “We are delighted to have secured the support of Vaillant through this multi-year partnership to support Derby Museums’ ambitions to grow, develop and inspire a community of makers and engineers in the area.
“The Museum of Making is committed to exploring Derbyshire’s making past, present and future and we are excited to be partnering with Vaillant to build on successful existing industry partnerships.
“In a world where sustainability and climate consciousness is paramount, through this partnership Vaillant is continuing this legacy of innovation and invention and aligns well with Derby Museums’ goals to empower makers and engineers of the future and facilitate discussions on how we might live in a more environmentally conscious way considering lower carbon alternatives.”
Duo of major student schemes get go-ahead in Nottingham
Two major student accommodation schemes have been approved for Nottingham, creating more than 980 new bedspaces in the city.
The first development, on Norton Street, on part of the former John Player factory in Radford, is to comprise two accommodation blocks of 7 storeys. Each block would accommodate a mix of studios and 3 to 10 bed cluster apartments, comprising 587 bedspaces in total.
The ground floor of ‘Block D’ would have extensive communal and ancillary areas including a lounge, study area, gym, spa, laundry room, and bike storage. A lounge area with roof garden is additionally included at level 7. ‘Block E’ would also have a lounge area at ground floor level. Landscaped outside space is to be provided within a ‘green heart’ area.
Hyson Green Developments are behind the plans for the site, currently a former car park.
The second development, which sits at the junction of Wilford Road and Traffic Street, involves the erection of an up to 17 storey building.
The site has historically been used for industrial and commercial purposes since the 1880’s and was latterly occupied by Sentinel House, used by Boots as offices and a laboratory. This was demolished and the site cleared in 2008. The site is currently hoarded and in use as a construction compound and parking area associated with the development of sites on Traffic Street.
The scheme comprises 396 bedrooms across a range of cluster flats and studios. The lower ground, ground and first floors would accommodate communal facilities such as a gym, cinema, private dining space, games area, amenity spaces, meeting rooms, a cycle store, laundry and waste storage facilities.
Externally, a sunken entrance space incorporates soft landscaping and tapering steps to provide informal seating, whilst a further courtyard space with soft landscaping and seating is also proposed. Jensco is behind the plans.
Harworth appoints development director for the Midlands
Harworth Group plc, a regenerator of land and property for sustainable development and investment, has appointed Gareth Thomas as development director for the Midlands region.
Reporting to Midlands regional director, David Cockroft, Gareth will be responsible for expanding the Midlands portfolio to support Harworth’s strategic growth ambitions, including progressing its major developments in the region. Gareth has over 15 years’ experience in the private and public sector, having held senior leadership positions at both JLL and Deloitte, advising a range of institutional investors, financiers and property companies on commercial acquisitions and lending across the UK. Prior to joining Harworth, Gareth led the development team at The Coal Authority, which is sponsored by the Department of Energy Security and Net Zero. Whilst there, Gareth also led teams that advised on land management, acquisitions and disposals, as well as leading its permitting and planning functions across Great Britain. David Cockroft, regional director – Midlands, Harworth Group, said: “Gareth is an excellent addition to the team at Harworth and strengthens our capabilities in the Midlands region. Gareth’s senior expertise and extensive experience will help drive growth in the region and support the successful delivery of a wide range of projects.”Derbyshire entrepreneur purchases golf club with multi-million pound transformation plans
Charjen Capital has purchased the 19th century Horsley Lodge Golf Club in Derbyshire for an undisclosed sum – with long-term, multi-million pound plans to transform the 200-acre site into one of the UK’s outstanding golf and lifestyle destinations.
Led by Derbyshire-based entrepreneur Marc Brough, Charjen has kickstarted its overarching programme by enhancing the existing golf course and members’ areas – as well as refurbishing 14 hotel rooms and creating two new ones. In just three months since the purchase, Charjen has invested £500,000 on works to the golf course and equipment, members’ area and bar.
With further significant investment on the horizon, Charjen has kicked off further plans for Horsley Lodge by applying for planning permission to demolish existing conservatories within the main members’ building to create brand new restaurants and terraces for member and non-members alike.
Originally built by the Earl of Sitwell as a wedding present for his son in 1863, Horsley Lodge has earned a reputation as one of Derbyshire’s finest golf courses, country hotels and wedding venues, set in the foothills of the Peak District.
Marc Brough of Charjen said: “We saw an opportunity to own one of Derbyshire’s finest golf courses in a stunning location and have grand plans to enhance the golf course itself – as well as upgrade the hotel and venue space in a sensitive and sustainable manner.
“We have a three-year strategy to make the most of this vast, stunning destination, creating a larger wedding venue, enhanced facilities for golfers – including a new driving range with simulators – more rooms for guests to stay and, of course, an elevated dining experience for all, supporting local producers.
“We intend to build on the existing success of Horsley Lodge – investing in a planned programme of works. We have short-term plans for refurbishment which includes the upgrading of the current wedding venue on site, and longer-term plans to create fantastic new facilities.”
The former Horsley manor house was restored by the Salt family creating the golf club itself, retaining the original character and charm – from the sweeping drive into the exposed limestone walls and original tiled floors.
In its current application to Amber Valley Borough Council, Charjen’s architect Sigma has set out transformational designs to create a high-end brasserie of 85 covers, a signature fine dining space with 18 covers and a chef’s table for eight people and private dining space for 22. There will be a kitchen garden growing produce for the restaurants and providing a stunning backdrop for diners – overlooking the garden and ninth hole. If planning is approved, the restaurants are expected to open later this year.
“We are really excited about the new restaurants – creating a destination for diners locally and nationally and using the finest local producers in Derbyshire. Horsley Lodge will be opening its doors to members and non-members alike to enjoy all the fantastic upcoming facilities that we have in store,” added Marc.
“The golf course will be at its core – and one we want to appeal to local and regional golfers and guests, but also create a venue that appeals to a national audience with the ‘Soho House’ crowd in mind,” he said.
“We intend to put Horsley Lodge on the map as a great place to play golf, stay a few days, enjoy our fantastic dining experiences and leisure facilities – and of course, to enjoy this stunning part of Derbyshire and all that it has to offer.”
In the longer term, Charjen intends to build a new wedding venue with space for hundreds of guests, further accommodation throughout the estate, a new state-of-the-art driving range and simulators, high end spa facilities and swimming pools.
Charjen purchased Horsley Lodge from the Salt family. Lawyers involved in the deal were Browne Jacobson.
Positive outlook for East Midlands businesses as new research shows boost in sales and orders
Increased sales and orders, a growing confidence in future profitability, and reduced pressure to increase prices are among a series of findings from a new East Midlands survey of over 300 businesses.
Six in 10 respondents to East Midlands Chamber’s Quarterly Economic Survey (Q2, 2024) said they anticipated their turnover to improve this year, with half expecting gains in profitability to follow. An increasing number of businesses were planning to boost their investment in new equipment and training and there was a drop in those reporting difficulties with cashflow.
East Midlands Chamber Head of Special Projects Richard Blackmore said: “It’s fantastic to see so many measures in our Quarterly Economic Survey pointing to growth for East Midlands businesses, with the data suggesting this will continue over the remainder of the year. What everyone in business wants to see is their turnover and profit going up and price pressures falling and that’s exactly the picture being painted by this data.
“For fewer respondents than in the last quarter to say they feel a compulsion to raise prices and for that data to coincide with a drop in inflation this week to 2% is a good combination.
“Orders are up, both in the UK and overseas, and businesses are increasingly talking up their intentions to invest, especially in plant and machinery. These are all signs that businesses are moving away from the drawn-out days of just ‘getting by’ in the face of tough times and are now looking to push ahead.
“It’s worthy of note that just as many East Midlands businesses are saying ‘competition’ is up there with inflation in their list of growing concerns. A healthy economy requires healthy competition between businesses, so this finding again suggests brighter times lie ahead for the rest of 2024.”
Highlights from East Midlands Chamber’s Quarterly Economic Survey Q2, 2024:
- Six out of ten respondents expected turnover to increase
- Nearly half of respondents expected profitability to increase
- One third of respondents expected to raise prices (down from Q4 2023 when the figure was two out of five)
- Three out of ten respondents reported an increase in overseas sales over the last three months (up from two out ten in Q3, 2023)
- Just under a quarter of respondents expected overseas orders to increase over the next three months
Record revenues for Lutterworth cybersecurity software company
Revenue and profit have soared at Intercede, the Lutterworth cybersecurity software company specialising in digital identities.
According to preliminary results for the year ended 31 March 2024, the business delivered record group revenues of £20 million, 65% higher than its prior year (£12.1m).
Meanwhile, pre-tax profit ascended to £5.6m from £0.6m. Intercede noted that FY24 was “an exceptional year” and that it continues to invest in its colleagues, IT Infrastructure, product development, sales and marketing to maintain and sustain current momentum.It added: “We embark into FY25 with good visibility on the pipeline, known and fully resourced internal critical investments, and with a clear roadmap on our acquisition strategy…. The focus is on growth and execution of strategic plans to deliver it.”
Royston Hoggarth, chairman, said: “In this challenging global environment, the Group has delivered record revenues in what has been an exceptional year. We look forward to building on this momentum.”
As monthly company insolvencies fall, the tide could finally be turning for East Midlands businesses
A surprise monthly fall in the number of company insolvencies in England and Wales could indicate that the tide is turning for the local economy, with an increase in business growth and prospects over coming months.
This is according to the Midlands branch of insolvency and restructuring body R3 and follows monthly statistics published this week by the Insolvency Service which show that corporate insolvencies decreased by 6.4% in May 2024 to a total of 2,006 compared to the previous month’s total of 2,144, and by 21.2% against May 2023’s figure of 2,547.
R3 Midlands Chair Stephen Rome, a partner at Penningtons Manches Cooper in the region, said: “Despite the challenges facing local companies, including the uncertain political and economic climate, business owners appear generally more optimistic about the coming months, and many expect output and sales levels to rise and are planning to recruit extra staff.
“With the national economy growing in the first quarter of this year and predicted to grow again in the next quarter, the tide may be about to turn for the better in the East Midlands.
“Businesses do need to remain cautious, however, as inflation levels, depressed consumer spending, and the costs of energy and fuel have been looming over the local economy for months.
“Shorter-term issues, like the rain we experienced in April and May, will also have hit local firms in the construction, retail and hospitality sectors, with delays to building projects and a reduced footfall into shops and hospitality businesses.
“We therefore urge anyone who is worried about their finances to seek advice as soon as possible. We know how challenging it is to talk about money worries but starting that conversation when the problem is new will give more options for resolving it and more time to consider the next step.
“Most R3 members will offer potential clients a free initial consultation so they can learn more about their situation and how it may be resolved.”
Games Workshop sees revenue and profit grow
Revenue and profit are on the rise at Games Workshop, according to a year end trading update.
For the 53 weeks ended 2 June 2024, the Nottingham business estimates its core revenue to be not less than £490 million (2022/23: £445 million) and licensing income of £30 million (2022/23: £25 million). The group’s profit before tax is estimated to be not less than £200 million (2022/23: £171 million).
In recognition of the contribution of Games Workshop’s staff, the company has paid group profit share cash payments amounting to £18 million (2022/23: £11 million). These are paid in cash on an equal basis to each member of staff. Dividends declared and paid in the year were £138 million, 420 pence per share (2022/23: declared and paid £136 million, 415 pence per share).
Science company leaders get stuck in helping YMCA Derbyshire residents enjoy the outdoor life
Residents of the YMCA Derbyshire charity have been supported by senior business leaders from all around the world who stepped in with paintbrushes and hammers for a morning’s work.
Procurement directors from science company Lubrizol who are based in the USA, China, South Africa, France and the UK were at the YMCA’s base in Derby where they got stuck in to help with planting, painting and making bird boxes – as well as constructing a geodesic dome.
The dome is a model of a larger construction that the YMCA hopes to be able to install in a three-acre garden that it leases to benefit residents who use it to grow vegetables and enjoy peace and quiet in the open air.
Lubrizol contributed 17 senior leaders based all around the world who volunteered at the YMCA as part of their “Creating Community Chemistry” drive to give back to local communities.
The Lubrizol leaders were in the UK at a meeting at the company’s UK Technical Centre in Hazelwood, near Duffield. They stepped away from the board room for a morning to help out at the YMCA where they were put to use with paintbrushes and hammers.
The chemistry company has plants all over the world and employs nearly 9,000 people.
JT Jones, Lubrizol’s senior vice president of procurement and high growth regions – who is based in the USA – was one of those working hard at Derby’s YMCA to help create freshly painted and planted pots for the charity’s garden, as well as bird boxes and the geodesic dome.
He said volunteering in the local community was important to everyone at Lubrizol and employees had been involved in many initiatives around the world from helping out at a US foodbank to picking vegetables in China.
He said: “All of us are really lucky and it’s always important to give back to the community – lots of people are not as lucky as we are.”
The team from Lubrizol also included Nadina Singh, the company’s global procurement logistics director who is based in South Africa, who said she was enjoying spending her morning painting. She was working alongside China-based Stephanie Shen, Lubrizol’s procurement director for Asia Pacific, and senior director Deanna Murlin.
Deanna said: “Perhaps a reason why a lot of us enjoy working at Lubrizol is that it’s important that we are employed somewhere where we can give back to the community and that we are given that opportunity to do that. It’s very nice to do this.”
Planters painted by Lubrizol volunteers were made by YMCA residents for use in the charity’s garden, through its Men in Sheds project. Wood for the geodesic dome was donated by Derby Timber Supplies.
Scott Gillespie, from the YMCA, said: “At the YMCA we are trying to encourage as many local communities as possible to help support the work we are doing to support our residents. Our Men in Sheds project gives our residents confidence, and future skills.
“The support from Lubrizol is incredible. It’s amazing just how well the Lubrizol team works together and seem buzzing from it. It’s team-building for them and invaluable for us. It’s absolutely phenomenal.”
YMCA Derbyshire provides accommodation to people at risk of homelessness. Through its merger with the Padley Group, it provides a community hub for those experiencing poverty and social isolation, where people can access a range of support including basic provisions such as clothing and food, as well as advice on debt, budgeting, mental health, addiction, registering with a GP and legal advice.
The charity is currently providing accommodation for more than 200 people in Derby who might otherwise not have a home.
Burton retail space to sizzle with new letting
Following the recent letting of Unit 2, 158 High Street, Burton upon Trent, commercial property agent, Rushton Hickman, have let Unit 1, the remaining ground floor suite.
In 2020, T&T Assets Limited acquired the building from Rushton Hickman and subsequently transformed the first and second floors into residential accommodation, while also renovating the ground floor into two premium retail / office units.
The 351 sq ft retail space is in a prime location in Burton town centre, directly facing Station Street, a popular pedestrianised shopping area with heavy foot traffic.
Sam’s BBQ & Bakes are the new tenant in Unit 1, 158 High Street. Run by a brother and sister duo, this new town centre spot offers a variety of traditional American slow smoked meats, such as pulled pork and beef brisket, all seasoned with their own special rubs.
Taylor Millington, Surveyor at Rushton Hickman, who negotiated the deal, said: “I am confident that Sam’s BBQ & Bakes will be a great addition to the busy high street and we are excited to see them succeed due to their unique food offerings. We take pride in our efficient two-month turnaround time and this deal further emphasises the continuing demand for high-quality retail space.”
Further letting secured on Interchange 25 Business Park
FHP have completed the letting of the first floor at Unit 5, Interchange 25 Business Park to Equans, a provider of technical services, FM, regeneration and energy services.
Interchange 25 Business Park comprises a development of eight self-contained detached office buildings providing high quality office specification throughout, with a variety of occupiers including Air IT, Nurture Fertility, GPA Global, and Keepmoat Homes.
Equans have taken 2,071ft² of open plan office accommodation with ample car parking spaces.
Amy Howard, Surveyor at FHP Property Consultants, said: “After a slow start with initial interest, it was a great result to secure Equans on the first floor offices. It was evident that
the demand for the whole space of circa 4,000ft² was limited following on from a few viewings that resulted in no offers on the property.
“We therefore looked at different options to secure full occupancy. The out-of-town office market continued to show a strong level of demand between the 2,000ft² and 2,500ft² size bracket, which resulted in us changing our marketing approach and offering both the whole space and on a floor-by-floor basis.
“Once we added the additional availability options, it resulted in several further viewings and we secured Equans Ltd. Equans were a delight to work alongside from the start and they will be an excellent addition to the park.
“Securing a tenant for the ground floor space is a priority for us in order to achieve full occupancy for our client, interest remains strong so we are hopeful to achieve this over the course of the next few weeks.”
Purpose Media supports new regional authority with key web project
Strategic marketing agency Purpose Media is helping the East Midlands’ newly elected mayor and the team she leads communicate with the two million people living in their region.
The South Normanton-based business was chosen by East Midlands Combined County Authority to design and build a website which will demonstrate how it is delivering the region’s strategic priorities after a historic devolution deal signed with central government.
The body came into being in the spring of this year, taking over responsibility from Westminster in areas such as transport, skills, regeneration and economic development across Derby, Derbyshire, Nottingham and Nottinghamshire.
It controls a £1.14 billion investment fund and is responsible for £1.5 billion of transport spending, under the leadership of Claire Ward, who was elected as East Midlands Mayor in May.
Devolution is viewed as a way of uniting the region, giving it a stronger voice nationally and internationally and bringing more local control of decision-making on key issues.
Instrumental to the new authority’s operations is a need to communicate with those it has been set up to represent, and with only a matter of weeks from the devolution deal being ratified to the mayor and her team beginning work, it turned to Purpose Media to design and build a website to explain its role, detail its priorities and encourage interaction.
Tim Lenton, Purpose Media’s digital innovation and strategy director, said the agency was delighted to be entrusted with delivering such an important project within the region where it is based.
“We are proud to be part of the East Midlands business community and to represent many clients who are also based locally, so it is a thrill to be selected to support the new combined county authority in its work attracting investment, encouraging prosperity and creating opportunity within the area,” he said.
“We were able to draw on our 15-year experience of building websites for hundreds of clients and working with government bodies such as the Department for Culture, Media and Sport and the Forestry Commission.”
The new site was constructed on a WordPress content management system, allowing the authority’s staff to easily add content, but with a bespoke ‘front end’ delivering enhanced user experience.
It is customisable, allowing for minutes of meetings and key documents to be displayed and indexed, and is optimised for performance and search.
“Timeframes were tight, but we used our technical expertise to deliver a flexible platform which blends the best tools available with our own creativity and which can be developed in line with the authority’s future needs,” added Tim.
“Once again it shows that clients can present us with pretty much any challenge and we are able to rise to meet it.”
Richard Dawson, the authority’s Interim Strategic Communications Manager, said: “We are really pleased with the look and feel of the new website, which was delivered on time and to our exact specifications. It has been a pleasure dealing with the Purpose Media team.”
Derby City Council leader replaced after no confidence vote
Derby City Council’s leader has been replaced after losing a confidence vote.
The vote of no confidence from opposition leaders related to the conduct and actions of Cllr Baggy Shanker regarding the failed Sinfin Waste Treatment Plant and an associated £93.9m invoice from Derbyshire County Council, which he has disputed.
Shanker was quoted by the BBC saying the motion was “a desperate act of political opportunism.”
The ex-leader is the Labour party’s candidate for the Derby South constituency in the general election.
Shanker’s deputy leader, Labour’s Nadine Peatfield, has taken his place after the vote to back the motion was tied, with mayor, Conservative, Ged Potter using his casting vote to force a new leader.
Organisations representing thousands of businesses, including the Business Improvement Districts (BIDs) for the Cathedral Quarter and St Peters Quarter, plus Marketing Derby, as well as investors, such as St James Securities and Wavensmere Homes, submitted letters expressing deep concern about the introduction of political instability at a crucial time for Derby ahead of the vote.
At immediate risk is a huge sum of up to £500 million of investment with genuine fears that instability will further affect investor confidence costing the city jobs and investment.
Wavensmere Homes, which has already built over 900 new homes in the Nightingale Quarter, with a further 500 homes in the immediate pipeline, has said it may consider re-evaluating a further £250 million of investment in Derby.
St James Securities said that negotiations on the next phase of the £230 million Becketwell scheme were at a very sensitive stage and feared this might be threatened.
The BIDs are especially concerned about losing city centre regeneration momentum and yesterday Marketing Derby wrote to the mayor of Derby, Ged Potter, reiterating these concerns and urging a different approach be taken to solve any political problems.
Inflation returns to target
Inflation has returned to the Bank of England’s 2% target for the first time since July 2021.
Measured by the consumer prices index (CPI), which rose by 2% in the 12 months to May 2024, it is down from 2.3% in the 12 months to April.
The biggest downward contribution to the fall in inflation came from food-price inflation, which dipped to 1.7% in May, the lowest annual rate since October 2021. This was partially offset by higher petrol prices.
The UK has also won the international race to get back to target, being the first among the euro area and US to bring headline inflation back down to 2%. In fact, the UK currently has the lowest headline inflation rate in the G7 bar Italy.
Despite this, the impacts of sustained high inflation over the past three years will remain for some time, with the relative cost of essential goods expected to remain high.
The Resolution Foundation notes that overall prices have risen by 22% since July 2021 (when inflation was last at 2%), while energy prices have risen by 66% and food by 31%.
Core inflation, meanwhile, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, rose by 3.5% in the 12 months to May 2024, down from 3.9% in April.
James Smith, Research Director at the Resolution Foundation, said: “It’s very welcome to see headline CPI inflation falling back to its 2 per cent target for the first time since July 2021. And while the UK experienced a higher inflation peak during the cost-of-living crisis, it has now got back to target more quickly than either the US or euro area.
“But the legacy of a long period of very high inflation means there is unlikely to be much of a feel-good factor among families, as they continue to struggle with the higher cost of essentials.
“And while headline inflation is back to normal levels, domestically-driven services-price inflation remains elevated. This inflation will worry the Bank of England, and may give pause for thought when it comes to cutting interest rates.”
“Inflation returns to target, but Bank of England is unlikely to fire starting gun on interest rate cuts tomorrow,” noted Yael Selfin, Chief Economist at KPMG UK.
“The Bank of England will be encouraged by the slowdown in headline inflation, and while concerns will remain over elevated underlying price pressures, further falls in services inflation are anticipated over the coming months. Today’s data are unlikely to spur a surprise rate cut tomorrow, however, the MPC could have sufficient evidence to begin its easing cycle in August.
“While underlying price pressures have moderated somewhat, they remain uncomfortably high, with services inflation running at 5.7%. The Bank will need to see a continued fall in services inflation before it can be confident that headline inflation will stay sustainably at its 2% target in the medium term. A slower pace of pay rises may lead to weakening services inflation, helped by a loosening labour market.
“Energy prices continue to present a risk for the UK inflation outlook. Wholesale gas prices have risen by more than 30% since the start of April, and if prices remain at this level into the autumn, household energy bills could potentially rise again in October. Nevertheless, the overall outlook for inflation remains broadly positive, and we expect headline inflation to hover around the target range over the coming months.”
New chair appointed to Leicester and Leicestershire Business Board
Andy Reed OBE has been appointed to chair a new Business Board tasked with helping to shape economic strategy in Leicester and Leicestershire.
The Leicester and Leicestershire Business Board will bring senior public and private sector leaders together to consider matters relating to growth in the city and county.
The Business Board is a key part of the new Leicester and Leicestershire Business and Skills Partnership led by Leicester City Council and Leicestershire County Council.
The Leader of the County Council and the City Mayor have appointed Mr Reed, the former Chair of the Leicester and Leicestershire Enterprise Partnership (LLEP), as the Business Board’s first Chair.
Mr Reed brings substantial relevant experience, and his appointment provides continuity in business and stakeholder advice to the city and county councils.
The purpose of the Business Board is to boost skills and growth by building the local business voice into delivery of economic strategy.
The Board is a key component of the Business and Skills Partnership, which will have input into functions including the Business Gateway Growth Hub and the Careers Hub.
Mr Reed said: “It’s so important that the voice of business is available to local authority leaders as they form growth policy in our city and county.
“The Leicester and Leicestershire Business Board will provide input from businesses of all sizes during decision-making, working with our elected leaders to inform broad economic strategy.”
Introduction of the Business Board comes after the Government ceased funding for local enterprise partnerships (LEPs) nationwide at the end of March.
Work has since continued behind the scenes to develop the new Business and Skills Partnership and associated Business Board.
Cllr Nick Rushton, Leicestershire County Council Leader, welcomed Government sign-off for the new Business and Skills Partnership, adding: “I’m delighted that Andy has agreed to chair the new Business Board and am keen that we get the new arrangements up and running as soon as possible.”
Sir Peter Soulsby, Leicester Elected Mayor, said: “Building a strong business voice into the development and delivery of our economic strategy is very important and we look forward to working alongside Andy as we establish the new Business Board.”
Work is now underway to recruit Board members. The first meeting is expected to be held later this year. Subsequent meetings are expected to be held every two months in and around Leicester and Leicestershire.
Members are set to serve a three-year term, which may then be extended by a further three years.
East Midlands scale ups attracted more than $36m in Q1
Innovative businesses in the East Midlands attracted $36 million across 13 deals in venture capital (VC) funding in the first quarter of the year, according to the latest KPMG Private Enterprise Venture Pulse report.
While the number of deals remained relatively stable, decreasing only from 13 to 12, the total value of these deals experienced a significant decline, falling from over $58 million to $36 million compared to the same period in the previous year.
Some of the largest raises came from businesses with a healthcare focus – Locate Bio raised $10.6 million for a clinical study, University of Nottingham spin-out IsomAb raised $9.4 million to develop a new treatment for cardiovascular diseases, and Neupulse secured $3 million to advance a wearable device aimed at tackling Tourettes Syndrome.
In 2023, there were a total of 47 VC investments in the East Midlands, worth more than $155 million.
Khush Purewal, partner and head of deals at KPMG in the Midlands, said: It is reassuring to see that funds continue to flow into businesses in the Midlands, particularly those that are pioneering in the healthcare sector.
“Over the last 18 months, the macroeconomic environment has changed dramatically with political uncertainty and cost of borrowing all rising. As we find ourselves in a new normal, we need to think about how we move ahead, and right now, investors are focusing on companies prioritising routes to profitability and that are creating sustainable growth to succeed in the current environment.
“The diversity of our scaleup ecosystem still attracts VC investors who are looking for innovative companies with robust unit economics and a path to growth. As the economy remains challenging, continuing to support fast growth businesses is important to the UK’s economic recovery and growth, and is key to levelling up as we look to attract and develop talent across our regions.”
UK national outlook
Nationally, VC investment into UK businesses continued to slide in the opening quarter for 2024, falling to levels last seen in 2018.
Coming off the back of $4.9 billion raised by UK businesses in the last quarter of 2023, just $3 billion in funding was raised in Q1’24 — the lowest amount seen in twenty-two quarters. Deal volumes were also down with the Venture Pulse report recording just 519 deals completed in the period, levels not seen since 2016.
While deal volume was very subdued, deal sizes remained quite healthy as VC investors focused their funds on the most promising startups.
B2B businesses looking for VC investment faced particular challenges as companies across sectors felt pressure to tighten their pocketbooks and improve their internal efficiencies. This slowdown is likely to affect the interest of VC investors heading into Q2’24, although B2B startups with embedded technology solutions will likely prove more resilient than those with additive technology offerings the report found.
On the fundraising side, Q1’24 saw some larger VC funds in the UK showing interest in acquiring the portfolios of smaller funds; during the quarter, for example, Molten Ventures completed its acquisition of Forward Partners for $52 million. Another trend seen recently in the UK has been the focus on investment corridors; this has been particularly true in the fintech sector, where a number of UK fintechs are working to connect to the fintech ecosystems emerging in the Middle East.
What’s happening elsewhere?
Global VC investment fell slightly from $83.8 billion across 9,458 deals in Q4’23 to $75.9 billion across 7,520 deals in Q1’24 amid geopolitical tensions, the extended drought in exits among VC-backed companies, and a continued pullback in investment at later deal stages. The level of VC investment in Q1’24 was the lowest since Q2’19, while the number of VC deals was the lowest since Q2’16.
VC investment in Europe rose from $15.1 billion in Q4’23 to $17.9 billion in Q1’24, buoyed by a large $5.2 billion raise by H2 Green Steel in Sweden. With few exceptions, VC investors in Europe continued to show caution given the challenging geopolitical and macroeconomic environment, including the high interest rate environment; while interest rates have smoothed, there is little sign that they will decline to a significant degree in the near future.
The number of VC deals dropped considerably in Europe, falling from 2,419 deals in Q4’23 to 1,798 deals in Q1’24. This decline was particularly noticeable at later deal stages, with the number of Series D+ deals in the region dropping to just eleven. The geographic diversity of VC investments held strong during the quarter, with eight jurisdictions in the region attracting at least one $100 million+ funding round in Q1’24, including Sweden, the Netherlands, France, Germany, the UK, Spain, Israel, and Italy.
Chamber-Toyota partnership champions energy efficiency amongst small businesses
A new partnership between East Midlands Chamber and Toyota Motor Manufacturing aims to bring to life energy efficiency for small businesses.
The fully funded Energy Reduction workshop, part of the Accelerator project funded by the UK Government through the UK Shared Prosperity Fund, provides a rare opportunity to experience a practical demonstration and shop floor observation with Toyota Energy Specialists.
It also includes an overview of their strategic approach to decarbonisation and energy cost management and aims to demonstrate decarbonisation and competitiveness in action.
East Midlands Chamber Deputy Chief Executive Diane Beresford said: “Any decision-maker in a business that meets the eligibility criteria of the Accelerator project is welcome to express their interest in joining us on the day although larger-sized SMEs with a particularly high energy consumption will take priority and we expect manufacturing and logistics businesses to derive the most value.
“Whilst participation is fully funded, the workshop is valued at around £600 per person so I’ve no doubt it will be a highly popular offer.”
Toyota Manufacturing UK Senior Manager, Environment and Carbon Neutrality Project John Malpas said: “We have over 30 years of energy kaizen experience achieving significant energy reductions and technological breakthroughs. The workshop aims to inspire others through sharing our decarbonisation activities by practical observations and demonstrations on the shopfloor by our Energy Support and Collaboration Team.”
Businesses can choose from three dates. Each session is limited to 15 places, takes place over the course of five hours and will be held on the following Tuesdays: 30th July, 24th September and 29th October.
Businesses interested in attending are invited to contact Ian Bates, Policy and Representation Manager at East Midlands Chamber ian.bates@emc-dnl.co.uk.
Fraudster sentenced for £1.5m renewable energy and home safety scam
A fraudster who conned elderly and vulnerable residents out of £1.5m for renewable energy and home safety products has been sentenced to seven years imprisonment alongside a 10-year directorship ban.
Robin MacDonald, aged 45, of Park Row, Bretby, Burton-on-Trent, was found guilty of conspiracy to commit fraud by false representation along with charges of fraudulent trading following a five-month trial at Nottingham Crown Court where more than 200 victims gave evidence.
Between 2014 and 2015, MacDonald repeatedly mis-sold victims products including solar panels and emergency medical buttons through his businesses Sunpower Renewables Ltd and Stirling Technologies Ltd trading as Proshield Alarms.
The defendant was prosecuted following an investigation led by the National Trading Standards Regional Investigations Team East Midlands, hosted by Nottinghamshire County Council, and supported by Derbyshire County Council Trading Standards.
Sunpower Renewables sold renewable energy products to customers and sales representatives often bullied and pressured victims into signing contracts for works which were then completed to a poor standard, with some creating structural instability in homes.
Proshield Alarms promised customers round the clock safety through products which would allegedly alert emergency services in the event that their alarm systems were triggered, with victims being misled through the deliberately false statements made by sales representatives and the marketing brochures.
A second defendant was found not guilty by the jury on the same charges.
Roy Hancher, aged 54, of Light Ash Lane, Coven, Wolverhampton, pleaded guilty to fraudulent trading prior to the trial and was sentenced to one year and eight months imprisonment, suspended for 18 months and a six-year directorship ban. Nicola Mather, aged 44, of Spindletree Drive, Derby, pleaded guilty to money laundering prior to the trial and was sentenced to one year imprisonment suspended for one year as well as 200 hours of unpaid community work.
Mark Walker, Interim Service Director for Place at Nottinghamshire County Council, said: “I’d like to thank and recognise all of the victims who came forward and worked with our investigators to bring this case to trial and these individuals to justice.
“These sentences show that the dishonest selling of products will not be tolerated.
“There is a saying that if something seems too good to be true, then it probably is and sadly scammers hope to exploit this for their own gain.
“We would always advise residents to be alert to cold calling and to never buy at the door. If residents have any concerns or if something doesn’t feel right, then it probably isn’t, and nobody should ever be afraid to close the door.
“Scammers may turn up out of the blue offering something you didn’t think that you needed, but by working together to spot their behaviour we can make sure that they don’t take advantage of friends, loved ones and neighbours.
“If you think you’ve fallen victim to a rogue trader, you can report this to the Citizens Advice Consumer Helpline by calling 0808 223 1133. You can also contact them for advice prior to entering into a contract to purchase goods or services.”
Lord Michael Bichard, Chair, National Trading Standards, said: “MacDonald and his associates preyed on and took advantage of vulnerable people – stopping at nothing to get what they wanted.
“Lingering in the homes of their victims for hours, they bullied customers – many of them elderly – into signing contracts at vastly inflated prices for products they didn’t want or need.
“I hope that the sentences handed down today will provide some solace to the victims and serve as a powerful deterrent to anyone hoping to make money from fraudulently selling renewable energy and home safety products.”
Derby businesses fear uncertainty will hit investment in potential vote of no confidence
Derby City Council is being called upon to reconsider holding a potential vote of no confidence in its leader, Councillor Baggy Shanker, in an emergency meeting it is understood is due to be held in secret this evening.
Organisations representing thousands of businesses, including the Business Improvement Districts (BIDs) for the Cathedral Quarter and St Peters Quarter, plus Marketing Derby, as well as investors, such as St James Securities and Wavensmere Homes, have submitted letters expressing deep concern about the introduction of political instability at a crucial time for Derby.
At immediate risk is a huge sum of up to £500 million of investment with genuine fears that instability will further affect investor confidence costing the city jobs and investment.
Wavensmere Homes, which has already built over 900 new homes in the Nightingale Quarter, with a further 500 homes in the immediate pipeline, has said it may now consider re-evaluating a further £250 million of investment in Derby.
St James Securities said that negotiations on the next phase of the £230 million Becketwell scheme were at a very sensitive stage and feared this might be threatened.
The BIDs are especially concerned about losing city centre regeneration momentum and today Marketing Derby has written to the Mayor of Derby, Councillor Ged Potter, reiterating these concerns and urging a different approach be taken to solve any political problems.
All submissions have stressed they are non-party political and supportive of the four-year electoral cycle introduced last year. This being broken could lead to three years of uncertainty.
The vote of no confidence from opposition leaders relates to the conduct and actions of Cllr Shanker regarding the failed Sinfin Waste Treatment Plant.
Shanker was quoted by the BBC saying the motion was “a desperate act of political opportunism.”
A statement from Shanker added: “It is no coincidence that two of the signatories to the motion happen to be standing against me in the general election to become the next MP for Derby South.”
