Plans submitted for new facility for world’s fastest growing sport
Padel Tennis – the fastest growing sport in the world – is being brought to the centre of Mansfield by the Dubai-founded World Padel Academy (WPA).
WPA has secured their first fully owned UK venue at One Call Stadium, home to EFL League Two promotion challengers Mansfield Town Football Club (MTFC).
Padel Tennis is an urban style racket sport played in a glass and steel mesh walled court and is a mix of tennis and squash.
WPA have submitted a planning application to Mansfield District Council to develop a brand new bespoke Padel Tennis facility that will include four covered courts and a small clubhouse, providing amenities and social spaces to help create a fun experience to engage the local community.
Mansfield Town Football Club Chairman, John Radford, said: “I’ve been playing Padel regularly for a few years now in Portugal and it’s one of the most enjoyable sports you can play.
“Padel encourages teamwork, discipline and healthy competition. It’s very easy and a great way to keep active.
“Playing it regularly helps develop healthy fitness habits and I know the people of Mansfield will really enjoy the game. I’m very much looking to playing Padel at the club.”
The £1 million project is a significant investment into the town and is set to add an inclusive and accessible sports venue that the whole community can enjoy, with no limits on age or physical abilities.
Mansfield’s CEO, Carolyn Radford, said: “We are so pleased to be working with World Padel Academy as Padel will be a really exciting addition to the football club. This project fits with our vision to provide more for Mansfield and it will doubtless help enhance the mental and physical wellbeing of our community.”
WPA Mansfield will provide group activities, coaching programmes for beginners through to Academy level players and will deliver a calendar of tournaments year-round for all levels, which will help grow the next generation of GB players and professionals.
James Bowring, Chief Operating Officer, WPA UK, said: “WPA’s expansion strategy into the UK market is extensive as we are working hard to secure a network of venues across the country, but I have to say, I’m very excited to be launching our first fully managed UK venue in my hometown and introduce this amazing game to Mansfield.”
For the last six months WPA have added their expertise to grow the Padel community at Nottingham Padel Centre and the appetite for the game is developing rapidly, to the point where it’s challenging to book a court during peak hours.
Like Nottingham, WPA Mansfield will boast four Padel courts in 2024 but with one major differentiator, a purpose-built canopy structure will be erected to protect players from adverse weather, so Padel can be played all year round with no interruptions.
Theatre launches drive to raise further cash to realise revamp plans
After receiving £10 million of Levelling Up Fund money to develop the venue, Derby Theatre has launched a drive to raise further cash.
The funding the theatre has been awarded by the Department for Levelling Up, Housing and Communities had originally been earmarked for a new learning theatre called ‘Assemble’ at the Assembly Rooms.
However, after the scheme was deemed unviable, the Government agreed that the £20 million it awarded for Assemble could be divided equally between revamping the existing Derby Theatre and Guildhall Theatre.
Now, Derby Theatre, which is based in Derbion, has revealed major plans to refurbish the venue – and enhance its facilities, including the addition of a brand-new studio theatre.
However, the overall cost of the redevelopment will need additional investment. To raise that extra cash, it has launched a campaign called Derby Theatre: New Horizons.
Sarah Brigham, Chief Executive and artistic director at Derby Theatre, said: “Derby Theatre is approaching its 50th birthday in 2025. This funding will allow us to secure the next 50 years of high-quality theatre in our city.”
Derby Theatre has said it plans to use its Levelling Up funding to develop its performance, community, participation and learning spaces.
As well as the new studio theatre, which will be a versatile space for the theatre to present innovative work, there would be an improved space for learners and the community, plus improvements to the audience experience in the main auditorium.
Sarah said: “We welcome nearly 100,000 people a year through our doors to see shows and 25,000 to take part in workshops and learning activity, so we are delighted that we will be able to use this funding to offer an even better experience to our customers and encourage more people to visit us for the first time.”
As well as announcing plans for the revamp, Derby Theatre has also revealed details of its New Horizons campaign, which aims to generate support and additional funds for the project.
The campaign will look to reach out to local communities, audiences, businesses, friends and stakeholders from the region.
Marketing Derby throws weight behind city centre apartments scheme
Marketing Derby has given its backing to plans for a major new apartments scheme in Derby city centre.
Last month, Wavensmere Homes and Wilson Bowden Developments submitted a full planning application to Derby City Council to build Cathedral One, which will consist of 186 one- and two-bedroom apartments.
The nine-storey building would be constructed on vacant land bounded by Full Street to the west and the River Derwent to the east.
In the letter of support for Cathedral One submitted to the city council’s planning department, John Forkin, Managing Director of Marketing Derby, writes: “Marketing Derby is delighted to see plans submitted to bring 186 new homes onto this important site, which has laid vacant for too long.
“Wavensmere is a proven contributor to Derby’s regeneration, and we couldn’t think of a more appropriate developer for this sensitive riverside site, contributing significant benefit and positive impact to the setting of Grade-I listed Derby Cathedral and the Museum of Making and UNESCO Derwent Valley World Heritage Corridor.”
The development site was previously occupied by a police station, which was constructed in the 1960s and demolished in 2013.
Phase One of Wilson Bowden’s Full Street development was completed in 2016.
It included the refurbishment of Riverside Chambers office complex, delivery of 46 new apartments at Number One Cathedral Green, and a Premier Inn hotel.
The remaining parcel of land had been earmarked for an office development of up to 100,000 sq ft, but it is now being brought forward by Wavensmere Homes for Cathedral One.
In addition to the apartments, 2,000 sq ft of mixed-use space has been accommodated at ground floor level to overlook Cathedral Green and Full Street.
A range of uses are earmarked for this space, including a new café and residential facilities such as a gymnasium, co-working zone, and concierge point.
Currently, Wavensmere Homes is delivering the £175 million Nightingale Quarter residential scheme, which features more than 900 houses and apartments.
The company has also submitted plans for the historic Friar Gate Goods Yard site in central Derby, which could be transformed into 276 houses and apartments, and over 110,000 sq ft of commercial space.
Franklin Ellis Architects has designed the scheme.
Growing company walking on air after industrial park move
An East Midlands-based compressor sales, hire, installation and maintenance firm is expanding after moving onto the Moorgreen Industrial Park on the outskirts of Nottingham.Air Compressor Maintenance, which has taken Unit 5 at Chestnut House on the industrial park, has been established over 30 years and covers the whole of the East Midlands.Alicia Lewis, surveyor at NG Chartered Surveyors, acted on behalf of a private landlord to complete the deal.She said: “It was a pleasure to help Air Compressor Maintenance to move into their new home. This is a great outcome for Dan, Sam and the team to realise their growth ambitions as the company expands – as well as our landlord client.“Air Compressor Maintenance is a quality tenant in a quality new premises. The team at NG wish them well for the future.”
£3m funding secured to deliver ‘game-changing’ new approach to skills development in Leicestershire
Further education colleges across Leicester and Leicestershire have been successful in securing £3m in Government funding to enable them to a respond to an East Midlands Chamber-led skills initiative published last summer.
The new programmes, to be delivered as part of the Government’s Local Skills Improvement Fund (LSIF), will aim to develop future green and digital skills across the city and county.
Following the bid by a consortium of colleges, the Department for Education has awarded £3.07m to further education colleges to deliver a range of programmes responding to the Leicester and Leicestershire Local Skills Improvement Plan (LSIP), published in August.
Work led by Leicester College, North Warwickshire and South Leicestershire College, Loughborough College and SMB College Group will focus on addressing four priority areas in skills needs for the area – decarbonising transportation, green leadership skills, digital upskilling and employer skills training – via new initiatives.
These areas were earmarked for intervention in a series of recommendations that followed a trailblazer project for the Leicester and Leicestershire LSIP. Launched in autumn 2022 and led by the Chamber with its partners, it aims to bridge the gap between the skills and attributes employers need in their workforce and what is on offer from local educators.
An innovative new data-led approach was developed by the Chamber, which led to the creation of Insight Unlocked, a “collective skills intelligence observatory” that pulls together insights from existing data sources around job adverts, occupation projections and qualification levels.
A mobile app was also used to engage businesses via short daily surveys on their live requirements for skills, knowledge and behaviours, with findings from this pilot published in summer 2023.
Chris Hobson, director of policy and insight at East Midlands Chamber, said: “Businesses have been telling us for a long time now that skills gaps are one of the biggest issues holding them back from achieving sustainable long-term growth.
“The Leicester and Leicestershire LSIP is a game-changing initiative in shaping future skills, knowledge and behaviours by aligning local education with the needs of local employers, with the overall aim of improving employability.
“Having provided the evidence base through our innovative data-led approach, we are delighted that colleges have now received funding to address some of the issues identified, with a key focus on developing the green and digital skills that will be needed in the future.
“This will help us to establish Leicester and Leicestershire as the best place in the country for developing people with the skills needed for businesses to thrive, the economy to grow and individuals to succeed.”
Examples of activities in each of the four areas of the Leicester and Leicestershire LSIP are:
· Decarbonising transportation: Skills training for staff at levels three to five in green transport technologies to support a step-change in becoming carbon-neutral. New qualifications will include IMI Level 3 electric and hybrid system repair and replacement, and IMI Level 4 in diagnostics, testing and repair of electric and hybrid vehicles and components.
· Green leadership skills: Collaborative development of short, contextualised Level 3 courses, including a new green leadership health check tool for leaders, managers and decision-making staff within organisations to assess the viability of implementing sustainable energy, waste and building technologies.
· Digital upskilling: New easy-access, flexible short courses between levels three and five for digital skills in business, including digital marketing, social media, cloud computing, data analytics and an introduction to artificial intelligence.
· Employer skills training: Review further education training across Harborough and the surrounding districts, including adult provision and English as a second language across Leicestershire. Data scientists will analyse training needs of industry to gain a deeper understanding of the area and how to engage employers.
Verity Hancock, principal of Leicester College, said: “The next stage of the LSIF is a real funding boost that will extend support for colleges and training providers such as Leicester College. It will enable us to offer more high-quality training opportunities and help to develop the skills base in key local industries.”
LSIPs were introduced by the Department for Education to support more people to gain the skills they need to secure rewarding careers, while ensuring the training on offer better meets the current and future skills needs of local areas.
Education Secretary Gillian Keegan said: “This investment is about boosting local industries, building people’s skills and ultimately futureproofing our economy and the career prospects of the next generation.
“Our local skills projects will bring together regional organisations, businesses and education providers to respond to the specific needs of employers, building an increasingly skilled workforce and growing local economies.
“Whether it is green skills, construction, engineering or digital, thousands more people can now gain the skills they need to secure good jobs closer to home. These are long-term plans that will ensure every area can have a brighter future.”
Law firm recruits Leicester financial litigation partner
Howes Percival has added Leicester financial litigation partner Alistair Haggerty to its Dispute Resolution team in the city.
Alistair specialises in financial litigation with an emphasis on secured asset recovery, including property, plant and machinery and domestic and commercial vehicles, and has a wealth of experience litigating claims in the County Courts, High Courts and Court of Appeal as well as appearing as Solicitor-Advocate in County and High Courts across the country.
Howes Percival partner Katie Summers said: “We are absolutely delighted to bring Alistair to Howes Percival. He has a wealth of experience in secured asset recovery, including property, plant and machinery and vehicles.
“He also has significant expertise in the area of enforcement, in particular receiverships. This is a specialism we are looking to develop and provide clients with a holistic approach to their secured assets and the recovery of the same as and when required.
“We are looking to work with commercial lenders, funding houses and brokers who may know of companies who would benefit from the recovery expertise Alistair is able to provide.
“Conditions in the property market, particularly, have been difficult of late and those who have lent money in return for security over property, need to act quickly in these scenarios. Having people who know this market and how best to realise an asset, is key to ensuring a safe return for any sums loaned.”
Sixth win for John Pye at insolvency industry awards
John Pye Auctions has been named Asset Valuer/Auctioneer of the Year for 2023 in the Turnaround, Restructuring and Insolvency (TRI) Awards, in a record breaking six-time win in the category.
Established over 15 years ago, the TRI Awards are the only awards programme that recognise and reward excellence across the turnaround, restructuring and insolvency sector. Independently judged by a panel of leading industry professionals, the awards cover the breadth of the profession, with winners named across 20 categories.
John Pye has worked on some of the UK’s largest insolvency cases in the last 12 months, namely MADE.com and Moore Large and Co. which saw the firm auction off over £35m RRP worth of bike and cycling stock.
Trevor Palethorpe, director at John Pye, says: “This is a fantastic achievement for the team and I think we’ve set an industry record with our sixth win in this category! It has been a phenomenal year for our business in terms of receipts, registered bidders and turnover. This month we’ve also announced a record profit share with our staff of £2m.
“Winning this award from the TRI recognises the hard work of everyone in managing a number of high-profile cases this year including Wilko, Made.com and Moore Large and Co. It’s great that the team has been recognised in this way.”
Topps Tiles sees third consecutive record year of revenue
Topps Tiles, the Leicester-headquartered tile specialist, has recorded its third consecutive record year of revenue, with sales per store up 30% compared to pre-pandemic levels.
According to unaudited consolidated annual financial results for the 52 weeks ended 30 September 2023, group revenue hit £262.7m, increasing from £247.2m last year.
Pre-tax profits, however, slipped to £6.8m from £10.9m, which the company says reflects the impact of inflation on its cost base.Rob Parker, Chief Executive, said: “This has been a further year of strategic progress for the Group and we are delighted to have delivered a third consecutive year of record sales and to have achieved our ‘1 in 5’ market share goal two years ahead of schedule.
“While profitability for the year reflects the impact of inflation on our cost base, particularly during the early months of the period, these pressures began to abate in the second half, with the smaller store estate and the cost reduction plan at Parkside providing further mitigation.
“As we enter our new financial year, it is clear that there has been a weakening of discretionary consumer spending. The business is well positioned to deal with this period, our established brands are market leading, we are competitively advantaged and we are confident that we will continue to take market share.
“When combined with a strong balance sheet, this will support the Group’s ambitions over the medium term. Topps Group continues to develop and diversify and we remain excited by the opportunities ahead of us.”
Deal secured on Derby City Centre retail premises
A former furniture retail premises has been sold for mixed-use redevelopment.
BB&J Commercial have secured the sale of the redevelopment opportunity within Derby City Centre, having disposed of the freehold interest for the store on Babington Lane.
Mark Richardson of BB&J Commercial said: “We had a lot of interest in this unit, particularly from developers looking to convert the upper floors for residential use.
“The layout of the unit is such that it proved to be a significant challenge so well done to the purchasers for coming up with an imaginative scheme that allowed both residential and commercial uses to operate together.
“The repurposing of city centre buildings to provide such mixed-use developments is gathering pace and I believe will help to bring a number of buildings back into use.”
New owner Sam Berry, director of Berry Homes UK Limited, said: “We are thrilled with acquiring 5 Babington Lane and the subsequent planning permission which has been successfully secured.
“This approval allows us to introduce new, affordable accommodation to Derby’s City Centre while preserving the commercial aspect on the ground floor of the building. We look forward to continuing our positive relationship with BB&J as they assist in securing a new tenant for this space.”
Manufacturing business fined following failure to protect workers from hazardous substances
A manufacturing business in Lincolnshire has been fined for failing to protect its workers from hazardous substances.
A Health and Safety Executive (HSE) inspection of W.S. Barrett and Son Limited’s site at Riverside Industrial estate in Boston, Lincolnshire, found the company’s workers were being potentially exposed to welding fume and dusts from powder coating.
Welding fume is carcinogenic and can cause other serious illnesses such as occupational asthma. Exposure to coating powders can also cause occupational asthma and skin irritation.
The inspection on 25 March 2022 found that an on-tool extraction system on the welding tools was in a poor state of repair and that Local Exhaust Ventilation systems, provided to capture welding fume and dusts from powder coating in order to protect employees’ health, had not been thoroughly examined and tested.
A subsequent HSE investigation found W.S. Barrett and Son Limited, a specialist manufacturer for the agricultural and horticultural industries, had failed to ensure that its Local Exhaust Ventilation systems, which controlled workers’ exposure to welding fume and dusts from powder coating, had been thoroughly examined and tested.
The company had already been warned about its Local Exhaust Ventilation systems, during a previous HSE inspection on 13 February 2018, the company was served with Improvement Notices following issues with Local Exhaust Ventilation systems. The company failed to comply and was prosecuted as a result.
W.S. Barrett & Son Limited, of Marsh Lane, Boston, Lincolnshire, pleaded guilty to breaching Regulation 9(1) and Regulation 9(2) of the Control of Substances Hazardous to Health Regulations 2002. The company was fined £10,000 and ordered to pay £3,625.20 in costs at Lincoln Magistrates’ Court on 22 November 2023.
HSE inspector Stacey Gamwell said: “W.S. Barrett & Son Limited could have ensured that its Local Exhaust Ventilation systems were thoroughly examined and tested to ensure that they were working as intended to protect the health of its employees.
“This case highlights the importance of regular maintenance and inspection of control measures including Local Exhaust Ventilation, to ensure equipment remains in an efficient state, in efficient working order, in good repair and in a clean condition.”
This HSE prosecution was brought by HSE enforcement lawyer Jonathan Bambro.
Marketing agency strengthens management team
Marketing agency Purpose Media has made a series of promotions to bolster its operational management team after a strong performance by the business during 2023.
The move – designed to strengthen collaboration between key disciplines – sees experienced champions appointed to ensure the firm’s creative, brand and technical capabilities are fully exploited on behalf of its growing client base.
As part of the changes, senior designer Alan Chaffe steps up to creative lead, senior front-end developer Josh Donnell becomes technical lead, and senior designer/front-end developer Danny Painter takes on the role of creative technologist.
Purpose Media managing director Matt Wheatcroft said the promotions supported the business’s mission to deliver comprehensive and impactful solutions for clients across web, creative, video and digital marketing.
“Our team brilliantly combines insights, technology and creativity to bring our customers’ visions to life and help them achieve their marketing and business objectives,” he said.
“These appointments will ensure that, as we continue to grow, experienced, innovative and passionate voices are always fully heard during all internal and external collaboration, allowing us to continue to produce solutions which exceed client expectations.”
South Normanton-based Purpose works regionally, nationally and globally, with a client list which includes football clubs Derby County and Rotherham FC, aerospace supply chain giants Incora and international commercial refrigeration specialists True.
Matt said the new promotions reflected the significant contributions made to the business by Alan, Josh and Danny over a number of years.
Josh, who began his career with Purpose Media as an apprentice eight years ago, is delighted by the opportunity to drive performance through even greater collaboration.
“This new role will enable me to form closer working relationships with the senior Purpose team to push the boundaries of our technical and creative outputs to deliver the best solutions for client needs,” he said.
“Having started out as an apprentice, it is also important to me to help the next generation grow in their careers and I look forward to sharing my experience as they develop their skills and understanding.”
Danny, who joined the business eight years ago from creative agency Revolver Revolver, has a background in both design and development which will help inform the creation of effective strategies for clients.
“I have been fortunate to work alongside talented leaders over the past decade and to soak up as much of their knowledge as I can,” he said.
“This has helped shape me as a creative thinker and problem-solver and I plan to use those attributes and the understanding I have developed of both creative and technical disciplines to aid my colleagues and the customers we serve.”
Alan, who joined the Purpose team in 2019, is also looking forward to the new challenge.
“We have a dedicated team of talented people who I’ve been lucky to work with over the last few years, and who have positioned us as the go-to strategic marketing agency in the Midlands,” he said.
“I’m excited to collaborate with our clients, both existing and new, to listen and understand their needs and to develop brave, bold work that really delivers for them.”
Along with the trio of management promotions, Purpose has also promoted Georgia Weston from account executive to account manager.
“We’re committed to helping talented individuals like Georgia, Danny, Alan and Josh to develop their abilities and to provide them with a platform to go on to achieve even greater success,” said Matt.
“We look forward to seeing them channel their passion and abilities on behalf of our clients.”
Overcoming the bystander effect in decarbonisation
Tim Rook, with his extensive 16-year experience spanning both traditional industrial and renewable energy sectors, currently holds the position of Chief Markets Officer at Clade Engineering Systems. This UK-based firm is at the forefront in manufacturing air source and propane heat pumps, which are integral in enhancing decarbonisation efforts in residential and commercial settings. In this article, Rook delves into the critical role of small and medium-sized enterprises (SMEs) in combating climate change and highlights the risks associated with inaction.
According to the Federation of Small Businesses (FSB), small to medium enterprises form the backbone of the UK’s economy, making up 99.2% of all business entities, contributing to half of the private sector’s turnover, and employing 60% of the workforce. Given their vast reach and influence, small and medium-sized businesses lie at the heart of the UK’s mission to achieve decarbonisation.
The government’s ambitious Net Zero target for 2050 is commendable, but the onus largely falls on SMEs to drive this national objective forward. These businesses must actively engage in sustainable practices and shift towards renewable energy sources to effect genuine change. However, they encounter significant financial obstacles and often lack awareness of available support.
The starting point
Many businesses are eager to contribute to this cause but are uncertain about how to begin. Thankfully, raising awareness is relatively straightforward, with numerous resources available, including the UK government’s Business Climate Hub, various grants, and information on renewable technologies like heat pumps and solar energy. The real challenge for many SMEs lies in the prohibitive costs of these sustainable solutions, particularly in the current economic environment. While the long-term benefits of renewable technologies are clear, the initial investment is often beyond the reach of smaller enterprises. While budgetary constraints and limited knowledge are understandable barriers to progress towards Net Zero, less excusable is the inaction of businesses that have the means and awareness but choose not to act. This inaction can often be attributed to what’s known as the bystander effect.Understanding the bystander effect
Coined by social psychologists, the bystander effect – in simple terms – refers to the phenomenon where individuals are less likely to take action when others are present, assuming that someone else will intervene. This leads to a diffusion of responsibility and, collectively, to inaction. This phenomenon is also observable in the business response to climate change. It is understandable, as individuals, that one might be daunted or overwhelmed by the concept of climate change, and perhaps even question the impact one person can really have just by making sure your recycling goes in the correct box outside your home. These actions may seem somewhat insignificant, but collectively, they are crucial in the fight against climate change, and their impact is substantial. From a business perspective, making a genuine change to any aspect of your operations presents challenges – especially when you consider the short-term potential pain in cost and challenges in traversing the adoption of new methods by staff and customers. Change in any form costs time, resources and cold, hard cash. The journey to Net Zero for businesses involves substantial operational changes, financial commitments, and shifts in staff and customer behaviour. It is here, facing these challenges, that smaller business owners might fall victim to self-reassurances that as their contributions to decarbonisation would be “minimal” compared with those of larger businesses around them, they needn’t take action. When only one business adopts this mindset, the overall effect is minimal. However, if every small business adopts a passive stance, it significantly impedes progress towards decarbonisation. This is a line of thinking that small businesses should be wary of, and seek to avoid.Counteracting the bystander effect
Decarbonising the commercial sector is not only feasible, but essential for the planet’s long-term wellbeing. SMEs must actively work against the bystander effect by taking definitive steps to reduce carbon emissions. The UK Business Climate Hub offers guidance to the 5.5 million SMEs, advising on renewable energy solutions like air source heat pumps and strategies to reduce energy costs. Investing in commercial heat pump technology, particularly air source models, is an environmentally friendly and strategic choice for businesses, aligning with the UK’s Net Zero 2050 goal by reducing emissions and operational expenses.The business benefits to Net Zero
The impact of climate change on us all is here to see around the world. There has been a political focus on reducing carbon emissions for quite some time, and smaller businesses are an integral part of the UKs plans to meet net zero emissions targets by 2050. For small businesses, net zero means sustainable services, products that are made from sustainable materials, thorough insulation within workplaces, the promotion of public transport, sustainable distribution and shipping of products, and the use of renewable energy sources, such as commercial heat pumps. Enhance your business reputation: the modern consumer is more likely to become a long-term customer of a brand that works in a genuinely sustainable way with a focus on green credentials. Reduce energy costs: by installing commercial heat pumps, solar panels, or other types of renewable energy sources at your business, you will significantly reduce your energy consumption and bills. Become more attractive to investors: in the way the modern customer is more attracted to a business that operates sustainably, the same can be said about investment opportunities. Stability in process: by adopting electric vehicles or renewable energy sources you can become more self-sufficient and less reliant on sources of power that can be impacted by volatile markets and disruptions. While interest in Net Zero is growing among UK enterprises, the bystander effect poses a threat to this momentum. To ensure that sustainable practices are adopted widely and effectively, it’s vital that key players, including renewable energy suppliers and heat pump manufacturers, collaborate to support and motivate SMEs in adopting sustainable business models.Pockets of deal activity drive logistics and supply chain transactions to two-year high
M&A activity in the UK logistics and supply chain management sector has rebounded to 2021 levels, with renewed interest from international buyers and venture capital investors targeting early stage tech-enabled companies.
Mirroring levels seen in Q4 2021, 21 deals were completed between July and September. Notably, there was a ‘reawakening’ of investment appetite towards UK assets from international buyers, with significant deals involving key industry players including Super Group Limited, DSV A/S, and InPost SA. Meanwhile, almost 20% of transactions were venture capital investors targeting early stage tech-enabled companies servicing the sector.
According to a new report from accountancy and business advisory firm, BDO LLP, disclosed deal values increased during the third quarter of the year to £288 million – a rise of £232 million compared to the previous quarter. This was mainly attributable to the acquisition of Xpediator for £161 million by a consortium group consisting of BaltCap, Stephen Blyth and Justas Versnickas. However, total disclosed deal value is still down on levels seen in the last three years, with values similar to that of 2018/2019.
The UK M&A Update Q3 2023 – Logistics and Supply Chain Management also sounded a word of caution, with increased evidence of distress within the market. This included the acquisition of the trade and assets of Nelson Distribution by Kinaxia Logistics, the administrations of Selazar Ltd and Glasgow Car Movers Ltd, and more recently Mark Stewart Limited.
Jason Whitworth, M&A partner at BDO LLP, said: “Maybe surprisingly given the continued challenges in the economic environment, Q3 saw an increase in deal activity to a new two-year high.
“This was driven by a number of factors, including venture capital investors investing in tech, renewed activity from international buyers, which have more recently focussed on other ‘more attractive’ international growth markets, as well as increased evidence of distress.
“The latest edition of our UK Logistics Confidence Index showed that 40% of respondents were likely to make acquisitions over the next 12 months. Although lower than last year, it does confirm the industry’s continued appetite for consolidation.
“Interestingly, in the current market where margins are under pressure, it wasn’t scale, synergies or cost savings that were the leading reasons for wanting to transact, but expansion of service offering and entering new sectors.”
Whitworth added: “Valuation remains a pivotal concern in making deals happen. Uncertain, and potentially lower earnings, coupled with the higher cost of debt, means that there is more complexity in structuring deals that will meet both buyer and vendor expectations. However, with strategic demand and available capital remaining strong, we should start to see a drive in further deal activity.”
Q3 deals included Foresight Group’s acquisition of We Are Fulfilment Ltd and Amworld UK; Endless LLP’s acquisition of ASCO Group; and the sale of Portman Logistics to Challenge-trg Group.
Rolls-Royce targets “step change” in financial performance
Rolls-Royce is set to embark on a divestment program, efficiency initiatives, and partnerships as part of its new mid-term financial targets that will represent “a step change” in its financial performance, making the business “stronger and more resilient than it has been before.”
In the mid-term this means achieving operating profit of £2.5bn-£2.8bn, operating margin of 13-15% with free cash flow of £2.8bn-£3.1bn and return on capital of 16-18%.
These targets are based upon expectations for a 2027 timeframe. Rolls-Royce said: “We expect a progressive, but not necessarily linear, improvement year-on-year, and if we can accelerate the achievement of our ambitions we will.
“These targets, the performance improvements that underpin them and the actions we require to achieve them, are owned across the group and supported through rigorous performance management and clear lines of accountability. Our strong start to 2023 provides further confidence in our ability to deliver.”
Rolls-Royce’s new strategy is based on four pillars: portfolio choices & partnerships (the markets it is choosing to operate in, businesses it wants to invest in, and partnerships that will create truly winning positions), advantaged businesses & strategic initiatives (how it will create a competitive business, expand earnings potential and improve performance), efficiency & simplification (the importance of a company-wide focus to drive synergies that enable Rolls-Royce to be more competitive and simplify the way it operates), and lower carbon & digitally enabled businesses (Rolls-Royce’s commitment to the energy transition, building on the tangible progress it has made to date, and capturing the benefits of becoming more digitally enabled).
Amongst choices made to deliver the step change in financial performance, Rolls-Royce’s group-wide divestment program is targeting gross proceeds of between £1bn and £1.5bn over the next five years, which do not form part of the firm’s free cash flow targets.
Rolls-Royce said it will only sell assets at the right time and at the right price. For example, in Rolls-Royce Electrical the business is looking at options to exit in the short run or alternatively for the right value, reduce its position to minority with an intention to exit fully in the mid-term.
Rolls-Royce also believes “the world-class capability” it has built in Advanced Air Mobility will represent good value to a third party and will allow it to focus on its core electrical engineering activities in Power Systems, Defence and Civil Aerospace.
Moreover, Rolls-Royce efficiency initiatives will deliver sustainable savings of £400m-£500m in the mid-term.
Chief Executive Tufan Erginbilgic said: “Rolls-Royce is at a pivotal point in its history. After a strong start to our transformation programme, we are today laying out a clear vision for the journey we need to take and the areas where we must focus.
“We are creating a high performing, competitive, resilient and growing Rolls-Royce that will have the financial strength to control and shape its own destiny. We are confident in our ability to achieve these ambitions and have a clear and granular plan to deliver on our targets.
“We have made significant progress, with 2023 profit and cash forecast to be materially ahead of 2022.
“We are setting compelling and achievable financial targets for the mid-term which will take Rolls-Royce significantly beyond any previous financial performance. This will benefit not just our shareholders but our people, customers and partners.
“We are building ‘one Rolls-Royce’. A company that can fully realise its potential, ensuring the excellence and innovation that helped shape the modern world, endures long into the future.”
Economy set to miss out on millions in warehouse crisis
New research reveals a lack of land is blocking the growth of the small to mid-box (sub-100k sq ft) warehouse sector, holding back job creation and costing the economy £480 million in Gross Value Added (GVA) per year.
With local planning focused on larger ‘Big Box’ (>100k sq ft) warehouse schemes and residential developments, change is needed.
The report, BIG things in SMALL boxes, is the second annual benchmarking report commissioned by industrial and logistics property company, Potter Space, conducted in collaboration with Savills. The report aims to uncover the challenges faced by the small to mid-box segment of the market and suggest potential solutions.
The biggest challenge facing this sector is that of ‘suppressed demand’. This means that demand for space outstrips the available supply of land for development. The report reveals that demand is suppressed in England by 38 per cent, and in some areas, this figure climbs to over 100 per cent.
The Midlands has been particularly affected, above other areas. Suppressed demand currently sits at 51 per cent in Nottingham and Derbyshire. This climbs to 57 per cent in Birmingham and reaches 101 per cent in Leicestershire, making the Midlands the hardest hit area outside of Stoke and Stafford (50 per cent) and Crawley in the South East which sits at 166 per cent.
One proposed solution to combat suppressed demand is ‘co-location’. Larger logistics property companies are facing a decline in demand, leaving unused space that could be filled by smaller providers to create economies of scale by sharing costs of infrastructure, such as access, drainage and power.
By co-locating on large sites, smaller providers could increase their footprint, create jobs and build more resilient local economies. Co-location is also growing in popularity within new developments, with a 16 per cent increase in new builds created with ancillary office space included since 2020, allowing businesses to conduct all operations from one site.
According to the report, local authorities should take a positive approach to planning to unlock economic benefits. Local planners should consider land that is unsuited to bigger warehouses as opportunities for smaller facilities, including areas close to residential developments, beside motorway junctions or railway tracks.
The small to mid-box warehouse sector currently provides 2.1 million jobs in England, with more waiting to be created. It is responsible for 31% of apprenticeship starts, with 13,000 apprenticeship roles per year beginning in small to medium enterprises (SMEs). If the undersupply of land is addressed, this figure could increase to a potential 18,000.
Jason Rockett, Managing Director at Potter Space, said: “Whilst there have been some small steps forward in the industry, the main challenge of finding enough space to meet the demand of these businesses that make up the backbone of the economy hasn’t gone away.
“Our report findings clearly show the need for logistics property companies to work together and collaborate with local authorities for a sustainable future in which the demand of all businesses can be met. If we can get this right now, we’ll not only support businesses, but also provide meaningful and long-term jobs in our local communities.
“Co-location is one way that the sector can work together to make the best use of available land and resources. With suppressed demand sitting at 38 per cent and rising to above 100 per cent in areas such as Crawley and Leicestershire, it’s clear that steps need to be taken now to improve the situation, before it is a major challenge that puts a stop to business growth and job creation.”
Frozen food company fined after employee loses fingers
A frozen food company has been fined £700,000 after an employee lost two of his fingers following an incident at the firm’s premises in Lincolnshire.
Tom Matthews, from Grantham, now champions health and safety in his current job at a different company, warning others to avoid his misfortune.
He had been working a night shift at McCain Foods’ site in Easton on 2 September 2019 when he suffered serious injuries to his left hand.
While cleaning the company’s batter system machinery, the 33-year-old had attempted to remove string dangling from a chute when his left hand was drawn in and contacted the machine’s rotary valve.
The index and middle finger were later amputated as a result of the incident.
Tom Matthews, a father-of-two, said: “The last four years have been hard and an ongoing struggle both physically and mentally. I still have circulation problems in my left hand following the incident that should never have happened.
“While I’m currently working, my new role is with the health and safety team at a different company as I want to use my story as an example to others and make sure something like this doesn’t happen again.”
A Health and Safety Executive (HSE) investigation found that McCain Foods had failed to provide appropriate guarding to prevent access to the dangerous parts of machinery, namely the rotary valve. It had not conducted an adequate risk assessment of the batter machine and had not provided employees with adequate health and safety training or supervision.
McCain Foods (G.B.) Limited, of Havers Hill, Eastfield, Scarborough, North Yorkshire, pleaded guilty to breaching Section 2(1) of the Health & Safety at Work etc. Act 1974 and Section 11(1) of Provision and Use of Work Equipment Regulations 1998 (PUWER). The company was fined £700,000 and ordered to pay £6,508.51 in costs at Lincoln Magistrates’ Court on 22 November 2023.
HSE inspector Muir Finlay said: “This incident could so easily have been avoided had the company taken simple steps to guard dangerous parts of machinery and provide employees with suitable training and supervision.
“Companies and individuals should be aware that HSE will not hesitate to take appropriate enforcement action against those that fall below the required standards.”
This prosecution was led by HSE enforcement lawyer Jonathan Bambro and supported by Rubina Abdul-Karim.
Nottingham academics receive funding to help make AI safe to use
Academics from the University of Nottingham have received funding to research how to ensure Artificial Intelligence (AI) is safe to use, in a new project alongside the Universities of Oxford and Warwick.
The UKRI funded Responsible AI UK (RAI UK) has announced its first round of Impact Acceleration projects, investing £1.8m to ensure AI is safe, and that it will be responsible to the needs of society, addressing topics such as Generative AI in teaching and learning.
In one of these Impact Acceleration projects, researchers from Horizon Digital Economy Research and the Mixed Reality Lab at the University of Nottingham will join colleagues from the University of Oxford and the University of Warwick to deliver ‘Responsible Innovation Advantage in Knowledge Exchange ‘RAKE’’.
The project will work with a variety of stakeholders including businesses, standards bodies, funding organisations, research teams, doctoral training centres and SMEs to explore how Responsible Innovation (RI) can be better embedded and will deliver RI training sessions in these differing environments.
Dr Alan Chamberlain, in the School of Computer Science at the University of Nottingham, will lead on the development of an international interdisciplinary network to bring together academics, researchers and experts to better understand responsible AI in the context of the Arts and Humanities.
He said: “Starting to examine how people understand and apply responsible AI in their work is important. It will help us to approach the design of responsible systems together. Involving the public is fundamental, it’s vitally important to enable people to participate and have input into research.”
Professor Elvira Perez Vallejos and Dr Virginia Portillo at the University of Nottingham, along with Dr Carolyn Ten Holter at the University of Oxford, have a wealth of expertise and knowledge and will lead work with the Institute of Electrical and Electronics Engineers Standards Association, UKRI CDTs and AI spinouts to map current RI practice, identify gaps and develop guidance to embed and drive knowledge exchange. Alexandra Dock Housing site released to market
An opportunity to create a brand new housing development on brownfield land near the Grimsby Fishing Heritage Centre has been released.
The site, behind the newly renovated Garth Lane waterfront area, has been earmarked by the Council for urban housing and the Council is now looking for a development partner to come forward to drive the project forward.
The 6.25 acre town centre site bordered by Fisherman’s Wharf and the River Freshney will eventually see a community of around 130 homes with supporting commercial accommodation.
The frontage of the site, bordering Alexandra Dock, was completed in 2021, and includes the new footbridge over the River.
This area was identified for homes in Grimsby’s Town Centre Masterplan, which is supported by Homes England, and is cited as an ideal location given the water nearby and the improvements that have already taken place.
Investment worth approximately £7.8m to support the development at this site has already been secured through the Government’s Towns Fund.
Cllr Philip Jackson, leader of the council with responsibilities for the economy, net zero, skills and housing, said: “The main objective of this work is to create a place that connects the town and its community with its waterside, creating a fantastic urban living environment.
“There’s a long way to go yet, and developments of this scale don’t happen overnight. But we are working to improve the town centre as a whole and this is part of that vision. Step-by-step we want to change how our town centre is used and enjoyed as a whole.”
Potential bidders can view documentation on www.find-tender.service.gov.uk– external site. Selected developers will then take part in a competitive dialogue, followed by an invitation to submit formal tenders to develop out the site from 2024 onwards.
Investor swoops for Wellingborough engineering company
Nene Capital, an investor in UK small and medium-sized enterprises (SMEs), has acquired MTS (Motor Technical Services Ltd), a Wellingborough engineering company.
Stephen Bayliss, Managing Director of Nene Capital, said: “With its strong track record of delivering high-quality products and services to its customers, MTS is a clear fit with our investment strategy.
“It has a unique value proposition and a compelling vision, we look forward to supporting the talented management team to deliver their growth plans over the long term.
“This acquisition is a testament to our unwavering commitment to identifying investment opportunities in the SME space with long term growth potential, and creating value on a risk adjusted basis.”
MTS, which specialises in the sale, servicing, repair and reconditioning of electric motors, generators, fans and pumps, will now benefit from Nene Capital’s resources and strategic guidance.
This synergy is expected to further elevate MTS’s position in the engineering sector and enable the company to explore new avenues for growth and development.
Simon Stringer, finance director of Nene Capital, said: ”MTS has performed consistently for a number of years through putting customers first – delivering a solution-based quality product to a loyal client base.
“These fundamentals, combined with the massive opportunities in this market, now and in the future, make it another excellent SME acquisition for Nene Capital.”
“We are thrilled about the opportunities that this acquisition will bring to MTS and its stakeholders,” said Tony Libertucci, Managing Director of MTS. “Nene Capital’s commitment to supporting the growth of UK SMEs aligns perfectly with our vision for expanding our reach and capabilities.”
County leaders sign proposed Lincolnshire devolution deal
Parliamentary Under Secretary of State of Levelling Up Jacob Young met the three Greater Lincolnshire Council Leaders today (27 November 2023) as they united to sign the greater county’s proposed devolution deal.
Mr Young joined North East Lincolnshire Council Leader Cllr Philip Jackson, along with Cllr Martin Hill OBE from Lincolnshire County Council and Cllr Rob Waltham MBE from North Lincolnshire for the ceremonial event held at Scunthorpe’s 20-21 Visual Arts Centre.
Parliamentary Under Secretary of State for Levelling Up Jacob Young said: “It’s fantastic to be here in Lincolnshire today announcing our devolution deal for the Greater Lincolnshire area.
“It comes alongside extra funding, more powers and a new directly elected mayor for the Lincolnshire area. I know it’s going to have a dramatic impact across the whole of the Lincolnshire County.”
Cllr Martin Hill said: “This is a deal which will be fantastic for Greater Lincolnshire, from the Humber down to the Wash.
“It gives us a lot of extra spending power over the next 30 years, £24 million a year for the next 30 years, and some additional money straight away that we can spend on our priority areas.
“But importantly it will give us extra powers as well to make sure that we can direct that spending in areas that we know local people need it, around infrastructure, around transport, around housing, flood defence and various other areas where we know we’ve got need in the county.
“We know it’s going to be great for us in determining the future direction of Greater Lincolnshire.”
