Finance broker makes Northern Gateway Enterprise Centre move
A Chesterfield finance broker has moved into the Northern Gateway Enterprise Centre, one of the town’s flagship office developments.
Sorbus Finance was founded in September 2021, and has developed relationships which allows the firm to access a panel of over 70 lenders.
The company’s aim is to support local firms in gaining extra capital and profits to re-invest in their businesses, employees and local communities.
Speaking on the move to the Enterprise Centre, director Arran Turner said: “Having grown up in Chesterfield I have always seen the potential in the town and the commitment that the business community in Chesterfield puts in to continually pushing for a better future.
“We have one of the best locations to conduct business with great links to the rest of the country, and the developments we can see around the town at the moment are a great visual advert for what we can look forward to in the years to come.”
Following the success of Sorbus Finance’s first 12 months of business, the firm wanted to find suitable premises which was not only cost-effective and convenient, but also provided a home for the future.
Arran said: “From the first time I viewed the Enterprise Centre, it was clear that this was right for my business. The modern and spacious offices, the great team that runs the centre and the other businesses located in the building all take great pride in the space, and want to see each other succeed.
“Alongside this, the location is perfect for us, close to the railway station, coach station, town centre amenities and road links.
“Chesterfield is thriving and stakeholders investing in Chesterfield have a clear vision for its future. Chesterfield is home to a diverse range of business and industries ranging from Manufacturing, Professional Services, Hospitality, Agriculture and so much more!
“The decision to stay in Chesterfield as opposed to moving towards Sheffield or Nottingham was an easy choice for me, I want to be part of the future of this town and everything it is looking to achieve.”
Over the next 12 months, Sorbus Finance aims to grow its team at different skill levels and is now engaging with local education providers. On top of this, the company is committing to Chesterfield in part of its ‘giving back’ programme, and will shortly be looking to find charitable partners it can work alongside, in addition to supporting one-off events.
Significant milestone reached at new Chesterfield and Derby mental health facilities
Integrated Health Projects (IHP), the joint venture between VINCI Building and Sir Robert McAlpine, celebrated the topping out of the Derbyshire Healthcare NHS Foundation Trust’s new mental health facilities in Chesterfield and Derby last week.
Mark Powell, Chief Executive of Derbyshire Healthcare NHS Foundation Trust, Simon Corben, Director and Head of Profession for NHS Estates and Facilities at NHS England, and Geoff Neild, Programme Director for the Making Room for Dignity Programme attended the event held at Derby Kingsway Hospital alongside members of the project team.
In a traditional ceremony dating back to the Roman era, a bagpiper led the guests to the rooftop where IHP Works Manager, Mick Murphy, nailed an evergreen bough to the structure, did a symbolic concrete pour and presented a tankard to Geoff Neild for a ‘job well done’.
The pioneering new mental health facilities are delivered as part of the Trust’s ambitious £150 million Making Room for Dignity Programme – a project using a blend of central, regional and Trust funding to completely revamp the county’s mental health inpatient (hospital) facilities.
The works include the Derwent Unit, a 54-bed mental health facility for Adult Acute Care at the Chesterfield Royal Hospital, and the Carsington Unit, another 54-bed mental health facility for Adult Acute Care as well as a 14-bed Psychiatric Intensive Care Unit at Kingsway Hospital in Derby.
Every room across both Adult Acute Care facilities will be en-suite and temperature controlled, with the facilities also including a shared therapy suite, kitchen, indoor fitness room, online library resource room, arts room and access to a secured roof terrace and garden for wards on the first floor.
James Beardmore, Project Manager at IHP, said: “We are proud to celebrate this significant milestone for these important projects and the exemplary collaboration demonstrated by the project team. We look forward to delivering these adult acute care facilities for the Trust’s ambitious Making Room for Dignity Programme. Once completed, they will greatly improve mental healthcare services across the region.”
Geoff Neild, at Derbyshire Healthcare NHS Foundation Trust, said: “The Derwent Unit at Chesterfield and Carsington Unit at Derby form the backbone of our dormitory eradication programme giving each service user their own en-suite bedroom.
“For those service users from Derbyshire requiring intensive psychiatric care there is currently no provision within the county and our service users are currently placed in out of area facilities. This has a huge impact on the ability of family and loved ones to provide support at a time when it is often most needed.
“Kingfisher House will provide a 14 bedded unit meeting the needs of male service users in Derbyshire. Along with the newly refurbished Audrey House the Trust can meet the majority of the needs of both male and female service users requiring high acuity facilities.
“I am delighted that these new facilities will give staff, service users, family and friends fantastic settings in which to deliver or receive therapeutic care and support.”
Nottinghamshire companies tackle the Yorkshire Three Peaks Challenge in aid of local young person’s charity
On Saturday 30 September, a team of Clegg Construction employees and partners laced up their walking boots to participate in Yorkshire’s Three Peaks Challenge to raise money for Nottinghamshire young person’s charity, Base 51.
The 24-mile round trip route, which included an eye-watering 5200ft of ascent, saw the team take on the peaks of Pen-y-Ghent (694 metres), Whernside (736 metres) and Ingleborough (723 metres) – three hills which form part of the Pennine range, and encircle the head of the valley of the River Ribble in the Yorkshire Dales National Park.
The Clegg challengers were joined by a team of employees from Atkins Search – a Nottingham-based recruitment company specialising in the Construction, Consultancy and Residential sectors, whose partner charity of the year is Base 51.
The Clegg team was made up of both site and office-based employees, including site managers, project managers, quantity surveyors, and four members of the company’s pre-construction department.
Completion times for the challenge ranged between 9.5 and 11 hours – below the 12-hour average.
Darren Chapman, operations director at Clegg Construction, is no stranger to the Three Peaks Challenge, having already completed it twice! He was instrumental in helping other Clegg Challengers prepare for the event, including arranging a 12-mile training walk which took place in the Derbyshire Dales a few weeks prior.
Darren said: “This was a very physically and mentally demanding challenge – not helped by the weather conditions – but overall, it was a successful and rewarding day completed in aid of a very worthy cause. We all look forward to the next challenge!”
Chris Rolling, associate director at Atkins Search, said: “The Yorkshire Three Peaks Challenge certainly took its toll, but the experience, memories and sense of achievement will stick with us for many years to come. The support and teamwork throughout the challenge were incredible and vital to its successful completion. Thank you to all at Clegg and Atkins Search for taking part!”
Founded in 1993, Base 51 is dedicated to supporting 11 to 25-year-olds in Nottingham and Nottinghamshire through the provision of counselling, trauma support, skills workshops, and more. Between March and December 2022, the charity served 3,370 hot meals, provided 1:1 support to over 500 individuals, and welcomed over 4,088 people to its youth club.
A GoFundMe page has also been set up to collect donations and has so far exceeded the initial £1,000 donation target by over 100% – with the total donations currently standing at a fantastic £2,180. The page will remain up and running until the end of the week (Friday 6 October) for any last-minute sponsorship pledges.
Verity Mitchell, head of fundraising and events at Base 51, said: “We are so grateful to the amazing teams from Clegg Construction and Atkins Search for taking on this challenge to raise vital funds for Base 51.
“The money raised will help us provide support to 11–25-year-olds in need in Nottingham and Nottinghamshire, the money raised will cover the cost of 44 crisis support sessions with counselling, food parcels, showers and laundry for young people who are struggling. Thank you to everyone who took part!”
Eagle Lab welcomed to Vulcan Works
Vulcan Works, a collaborative flexible working space, and Barclays have partnered to launch an Eagle Lab in Northampton.
The Barclays Eagle Lab aims to drive growth in the local economy by boosting the Northamptonshire eco system for start-up and young businesses, signposting them to a network of industry experts and mentors as well as growth programmes, events and workshops, and investors and funding streams.
The Lab will look to complement existing services offered by Vulcan Works’ own Business Growth Manager, Darren Smith.
Barclays Eagle Labs’ Eco System Manager, Owen Moran, will be based at Vulcan Works as part of a contract between the High Street bank and Oxford Innovation Space, which was appointed to manage Vulcan Works by West Northamptonshire Council.
Centre Manager at Vulcan Works, Garrick Hurter, said: “We are delighted to announce the addition of a Barclays Eagle Lab at Vulcan Works. Northamptonshire has one of highest rates of start-up businesses in the UK. Unfortunately, we also have a high failure rate.
“This is something we wanted to tackle when we launched, through offering bespoke business support and cost-effective workspace solutions. To be able to enhance this support further with the backing and expertise of Barclays and its industry experts will really make a difference to so many entrepreneurs and young businesses.”
Owen Moran, Barclays Eagle Labs Eco System manager, said: “We’re so pleased to be opening our doors in Northampton. This partnership shows our dedicated commitment to supporting local businesses here, and to drive growth in the local economy.
“Eagle Labs provide a wealth of support to startup businesses, particularly those who are focused on technology and innovation. Physical spaces, like this one in Northampton, are vital for businesses to get connected with our mentors, specialists and to create a collaborative community with each other.”
Cllr Dan Lister, Cabinet Member for Economic Development, Town Centre Regeneration and Growth at West Northamptonshire Council, said: “It is fantastic news for West Northamptonshire that the new Barclays Eagle Lab will be officially launching at the iconic Vulcan Works. This is set to enhance and amplify the expert support already available for businesses in the area and make a real positive change to our local economy.
“At West Northamptonshire Council we are dedicated to enabling local, sustainable growth for all employers in the area and we can only achieve this by working with organisations such as Vulcan Works and Barclays Eagle Labs.”
Motorpoint CEO remains positive after difficult first half
The CEO of Derby’s Motorpoint Group has said the independent omnichannel vehicle retailer is well positioned to emerge from the current difficult macroeconomic cycle a leaner and more agile business.
In a trading update for the six months ended 30 September 2023 (H1 FY24), the company noted that as a result of growth and profitability being hampered by the UK’s difficult macroeconomic conditions, it has taken “swift, decisive action to right-size the business to reflect the reduced market size and ensure cash generative trading at lower levels of group sales.”
Actions included increasing retail margins supported by the use of data to optimise selling prices, reducing auction fees by securing a greater proportion of stock through direct supply channels, streamlining the firm’s organisational structure, pausing new store roll out and reducing discretionary capital spend. The right-sizing programme proved helpful to Motorpoint’s performance in Q2 as difficult macro conditions continued.
The business shared that an underlying loss before taxation of £3.1m incurred in Q1 narrowed to a loss of c.£0.6m in Q2. For the half year, the business made an underlying operating profit of c.£1.6m before interest expense of £5.3m. It also incurred a one-off exceptional charge of c.£1m related to redundancy costs.
Mark Carpenter, CEO of Motorpoint, said: “The impacts of high inflation, interest rates, and consumer uncertainty continue to affect demand for used cars. We have responded by reducing our cost base and expanding our retail criteria to help customers find the car of their choice at a price they can afford.
“We have successfully preserved cash while making progress on selective strategic initiatives, and are well positioned to emerge from this difficult macroeconomic cycle a leaner and more agile business, ready to seize the significant opportunity as market conditions improve.”
Leicester insurance brokers acquired
Brown & Brown has acquired Berkeley Insurance Group. The deal is the first broking acquisition by Brown & Brown in the UK since it rebranded from Global Risk Partners Ltd earlier in September 2023.
One of the UK’s largest independent insurance brokers, Berkeley is headquartered in Leicester with offices in Birmingham, London and Edinburgh. It is a long-established and well-known advisory-led Chartered Insurance broker targeting high-quality mid-market customers.
It offers a strong generalist capability, but within this, Berkeley is recognised as having particular specialisms in commercial property and construction, financial risks, cyber, private client and corporate client insurance, each of which has a dedicated team.
Berkeley will become part of Brown & Brown’s UK Retail Division. Tim Maxted (chairman and CEO), Jonathan Yeeles (finance director), the wider management team and all staff will move to the new arrangement.
The Berkeley brand will remain, and the business will continue to trade from its current offices.
Mike Bruce, CEO of Brown & Brown Europe, said: “Berkeley is an excellent advice-led broker which, under Tim’s leadership, is characterised by strong organic growth, a clear strategy and a highly entrepreneurial, respected management team.
“It brings a number of sector, product and proposition capabilities to our Retail Division in the mid-market customer segment. We are keen to build on Berkeley’s success in this market sector. We will be looking to leverage the Berkeley team’s extensive experience and areas of specialism across our UK operations.”
Tim Maxted said: “We have always prided ourselves on our position as one of the UK’s leading advice-led brokers in the mid-market. Having discussed our future objectives and ambitions with Mike and Powell [Brown], it quickly became clear that there was true strategic and cultural alignment between us.
“We were especially attracted by the ‘forever company’ ethos, which is at the heart of the Brown & Brown philosophy, and exactly reflects how we think about our business. It is especially gratifying to be the first broking acquisition for Brown & Brown following the name change.”
Tim Maxted added: “We are excited about the next chapter for Berkeley, for our customers and our team, and taking advantage of the opportunities from our future partnership with Brown & Brown.”
Mike Bruce concluded: “I’m confident that, as part of Brown & Brown, Berkeley will continue to flourish. I look forward to working with Tim and the team to support them in achieving their long-term strategic goals.”
Pendragon bidder backs out
Hedin and PAG International have backed out of the race to acquire Nottingham-based car retailer Pendragon.
The team had planned to offer 32 pence per share, in cash, upgraded from a previous 28 pence per share offer.
The news follows a new bidder stepping forward, with American firm AutoNation wanting to acquire the entire issued and to be issued share capital of Pendragon for 32 pence per share, in cash.
It also comes after Lithia Motors, one of the largest automotive retailers in North America, increased its offer for Pendragon’s UK motor business and leasing business by £117 million, to £367 million. The total cash consideration is £397 million, including a previously publicly disclosed subscription for shares in Pendragon.
Last month Pendragon revealed plans to sell its UK motor business and leasing business to Lithia. They also agreed the terms of a strategic partnership, including the rollout of Pinewood, the company’s dealer management software (DMS) business, to Lithia’s existing 50 UK sites and the creation of a joint venture to accelerate Pinewood’s entry into the attractive North American DMS market.
As part of the transaction, it was announced that Pendragon’s Pinewood division, which operates the company’s proprietary DMS business, would become a standalone entity, retaining Pendragon’s existing listing on the London Stock Exchange and creating a pure play Software as a Service (SaaS) business with an accelerated growth plan.
Plans submitted for Frasers HQ move
Shirebrook-based retail giant Frasers Group has submitted its plans for a new global HQ out of the East Midlands.
Frasers is hoping to establish the site in Ansty in Rubgy and create 7,500 jobs.
The development, designed by architects Grimshaw, could include offices, logistics space, a hotel and leisure facilities, with a gym, courts and pitches.
Announcing the plans initially last year, the company, which owns household names such as Sports Direct, House of Fraser, Game and Evans Cycles, said the project will support the continued growth of the business and allow the business to drive productivity, growth, and innovation across the UK and globally.
At the time a spokesperson for the company said: “Frasers Group is proposing to deliver an exceptional campus environment, reflecting quality design, operation, and sustainability. It will be landscape-led, driven by responsible and sustainable design principles. Where possible it will retain, reinforce, and enhance the existing landscape character and features.”
Rolls-Royce CEO calls for swift action toward deployment of small nuclear reactors
Shortlisting of Rolls-Royce SMR in the first stage of the Great British Nuclear Small Modular Reactor technology selection process has led to a call for swift action from the company’s CEO.
The shortlist includes the UK’s home-grown nuclear technology, Rolls-Royce SMR – a ‘factory-built’ nuclear power plant which will provide enough affordable clean electricity to power a million homes for 60+ years, helping achieve our net zero targets.
Chris Cholerton, Rolls-Royce SMR CEO, said: “The Rolls-Royce SMR is a British solution to the global energy security and decarbonisation challenge. We welcome our shortlisting and are eager to build on this progress, moving quickly to the next stage where we can work to agree a contract for deployment and help the government reach its ambition to deliver up to 24GW of nuclear power by 2050.
“We have the only SMR technology in a European regulatory approval process, putting us almost two years ahead of any of our competitors. Securing a domestic contract is vitally important to unlock the enormous global export potential of our clean energy technology.”
A successful outcome from the GBN selection process will result in immediate investment in the UK supply chain and manufacturing sectors, creating thousands of high-skilled, long-term jobs.
With a team of more than 600 UK-based people already working for the business, Rolls-Royce SMR is making good progress through the Generic Design Assessment process with the nuclear industry’s independent regulators to secure consent for its technology to operate in the UK.
Ditching HS2 unlocks raft of enhancements for East Midlands transport
The East Midlands will benefit from a £1.75 billion regional rail hub benefiting more than 50 stations in a major funding boost to create stronger public transport networks.
A total of £36 billion in savings from HS2 will be reinvested in hundreds of transport projects across the country, delivering more buses, reopening railway stations and ensuring major funding for new and improved roads.
Cash that would have been spent extending the HS2 route north of Birmingham will instead be redirected into roads, rail, and buses to drive economic growth and provide jobs.
The Midlands Rail Hub will be delivered in full with £1.75 billion of increased investment to speed up journey times, increase capacity and boost frequency of services across the region.
It will benefit more than 50 stations in Birmingham and the wider Midlands, including Cheltenham, Gloucester, Hereford, Malvern, Worcester, Tamworth, Burton, Derby, Nottingham, Nuneaton and Leicester.
Further benefits for the East Midlands will include:
- the number of trains between Leicester and Birmingham will be doubled from two to four per hour
- a guaranteed £1.5 billion to empower the new East Midlands City Region Mayor to transform transport for 2.2 million people living in Derbyshire and Nottinghamshire. This is an average of almost £1,000 for everyone in the 2 counties. The new combined authority could use the funding to extend the Nottingham Tram system to serve Gedling and Clifton South and connect Derby to East Midlands Parkway with a Bus Rapid Transit System
- stations and lines closed under the 1960s Beeching reforms will be reopened, including the Ivanhoe Line between Leicester and Burton, connecting 250,000 people across South Derbyshire and North West Leicestershire, with new stations en route
- funding will also be provided for the Barrow Hill Line between Chesterfield and Sheffield Victoria, with a new station at Staveley in Derbyshire
- £100 million will be shared across the North and Midlands to support the development and rollout of London-style contactless and smart ticketing, supporting seamless travel by enabling contactless or smartcard payment
- funding to fix 2 major pinch points on the A5 between Hinckley and Tamworth, a stretch of road linking the M1 and M6 that serves more than 1 million people. Funding will also be provided for improvements to the A50/500 corridor between Stoke and Derby, cutting congestion for the 90,000 drivers who use the road each day and ensuring smoother journeys for drivers and freight around Rolls-Royce, Toyota, Magna Park and other major local employers
- a Midlands Road Fund worth nearly £650 million will be launched for new road schemes
- a brand-new £2.2 billion fund to transform local transport in every part of the Midlands outside the mayoral combined authority areas and the new East Midlands combined authority – rural counties such as Shropshire, smaller cities like Leicester and towns such as Evesham
- a further £250 million will fully fund 10 smaller road schemes in the Midlands, including the A509 Isham Bypass, near Kettering, and the A43 between Northampton and Kettering
- £2.2 billion for the Midlands to combat the potholes causing misery for drivers
- £230 million will be invested in increasing the frequency of bus services in the Midlands and the popular £2 bus fare will also be extended until the end of December 2024 instead of rising to £2.50 as planned
- the East Midlands will get a brand-new City Regional Sustainable Transport Settlement (CRSTS) allocation of over £1.5 billion as it embarks on its new status as a combined authority next year
Local businesswoman takes over Scunthorpe United
A takeover has been completed for Scunthorpe United by local businesswoman Michelle Harness.
A current director of the club, and former commercial manager of over 15 years at the Iron, Michelle has acquired the club from the outgoing David Hilton.
Following a busy few days of negotiations and putting plans in place, Michelle said: “I would like to thank everyone who assisted in the transaction, especially David Hilton.
“There are a lot of challenges and problems to overcome, but David has taken no fee for the club, and wiped all monies that he personally invested to enable this deal to happen. I wish him and his family all the best for the future, and I hope he finds some peace away from football.
“I’d also like to acknowledge the efforts of Simon Elliott, who has massively assisted in getting this deal over the line. There is now a lot of work to do behind the scenes to get our great football club back on track, and that work starts immediately with the fantastic team we have working for us, starting with the appointment of a new board.”
Leicestershire estate agents & chartered surveyors snapped up
Sheldon Bosley Knight (SBK) has acquired Leicestershire-based Andrew Granger & Co, adding a thriving lettings department of approximately 1,000 properties alongside a successful sales operation which lists approximately 400 properties each year.
The company’s rural, commercial and planning departments will also be added to SBK’s portfolio as well as the 50 members of staff who will continue to be based in the offices in Loughborough, Oadby and Market Harborough.
Andrew Granger & Co was established more than 30 years ago and is well-respected across the East Midlands. Directors of Andrew Granger & Co, Mark Sandall, Andrew Robinson, Peter Buckingham and Rupert Harrison all continue with the firm.
SBK custodian, Mike Cleary said: “Andrew Granger & Co is a well-respected and hugely successful business and we are delighted to be chosen to take over the reins.
“As well as sharing similar departments, we share the same values and ethos so it’s an excellent fit for SBK and I am confident we will continue to provide an excellent level of service for vendors, buyers, tenants and landlords in Leicestershire.
“In what has already been an exciting time for SBK in our 180th year, this latest acquisition comes hot on the heels of F2L last month and is our fifth such deal in as many months.”
SBK, which celebrates its 180th birthday this year, has more than 120 in-house staff in offices across Coventry and Warwickshire, Gloucestershire, Leicestershire, Worcestershire and the Cotswolds.
The addition of Andrew Granger & Co is the fifth acquisition for SBK this year.
New medical director for Oberoi Consulting
Derby-based Oberoi Consulting has appointed a medical director to drive forward the company’s range of population health tools and clinical support services to the NHS and pharmaceutical industry.
Prior to joining Oberoi Consulting, professor Ahmet Fuat worked as a GP in the same practice in Darlington for 37 years. He was Darlington PCN CVD and research lead, and in 2001 set up the UK’s first one stop diagnostic clinic for suspected heart failure, then pioneered and ran an integrated heart failure service across primary and secondary care for 20 years.
His PhD, by research in heart failure diagnosis and management including work on natriuretic peptides, generated several publications that have informed national and international guidelines and led to the award of an Honorary Professorial Chair at Durham University.
He has also held various national roles including president of the new Primary Care Cardiovascular Society (PCCS) which he was instrumental in reforming, an advisor to NHSE in CVD, and remains education and research lead for PCCS, AHSN North East and North Cumbria (NENC) primary care heart failure and lipid leads, and continues as a GP research engagement lead for NENC CRN. He will shortly take up a post as Honorary Consultant lipidologist/GPSI for County Durham and Darlington NHS Foundation Trust.
Professor Fuat worked with Oberoi Consulting as a client for many years and has firsthand user experience of Oberoi’s primary care population health tools that support the NHS to identify and optimise treatment for patients.
Professor Fuat will provide clinical supervision and mentorship to Oberoi’s growing team of clinicians who are working with an increasing number of GP surgeries across the UK. The company is actively recruiting more health professionals to deliver clinical support services.
Professor Fuat said: “I have seen firsthand the benefits to patient care of Oberoi Consulting’s work and am excited to join the team to help develop the scope of the work in the future.
“Oberoi’s work not only improves outcomes for patients but also supports an already overstretched NHS workforce. By working together, we can improve decision making, enhance accountability and increase productivity in health care settings.”
Kavita Oberoi OBE is the founder and managing director of Oberoi Consulting. She added: “The growth of our population health tools and health professional teams is crucial to help stratify patients of highest risk and build capacity in the NHS to improve outcomes for patients.
“Professor Fuat’s experience and expertise will be extremely valuable moving forwards. He knows how we work and our commitment to excellence and will be an incredible asset to the management team.”
Financial services activity holds firm
Financial services activity held relatively firm in Q3 of 2023, despite some softening from a buoyant second quarter. Optimism and business volumes growth were quick in the three months to September, although to a lesser extent than the previous quarter, according to the latest CBI Financial Services Survey.
The quarterly survey, conducted between 30 August to 15 September with 150 respondents, found that FS firms expect volumes growth to pick up considerably in the three months ahead. Employment growth, which slowed from last quarter’s 16-year high, is set to decelerate further in the coming quarter.
Key findings:
- Optimism softened in September (weighted balance of +20% from +30% in June; long-run average of +3%).
- Business volumes growth was quick in the quarter to September, despite slowing from last quarter (+27% from +42% in June; long-run average of +13%). FS firms expect volumes to increase at a faster pace next quarter (+41%).
- Average spreads increased slightly in the three months to September (+5% from 0% in June). Spreads are expected to be broadly flat next quarter (-3%).
- The value of non-performing loans grew modestly in the quarter to September (+8% from 0% in June) but is anticipated to decline marginally next quarter (-5%).
- Profitability growth decelerated in the quarter to September (+13% from +41% in June) but is expected to speed up again next quarter (+38%).
- Employment expanded at a robust pace in the quarter to September (+34%), albeit at a slower pace than last quarter’s increase (+52%, fastest since December 2006). Firms expect headcount growth to ease further next quarter (+23%).
- Firms expect to increase investment in IT over the next 12 months (compared to the last 12). Capital expenditures on land & buildings and vehicles, plant & machinery are anticipated to be broadly unchanged.
- Uncertainty about demand was the most commonly cited factor likely to limit investment in the next 12 months (47%). The share of firms citing cost of finance (28%) as a potential limiting factor rose to its highest since December 2014.
Logistics confidence falls to second lowest level on record
Confidence in the logistics sector has fallen to its second lowest level on record, only slightly above that seen during the first COVID-19 lockdown in 2020, a new industry report has found.
According to the Barclays-BDO UK Logistics Confidence Index 2023, this year’s score is 47.3, down from 50.4 in 2022. In 2020, the confidence index stood at 47.1. Any index figure below 50 indicates overall pessimism in the logistics sector – a sector that is integral to the functioning of our society at many levels and regarded as a useful barometer of the state of the wider economy.
The latest figure is in contrast to the marked optimism seen in 2021, which produced an index reading of 62.5, as the sector bounced back from the effects of the pandemic – a time of increased levels of home delivery and higher rates for global logistics services.
The latest study from Barclays Corporate Banking and accountancy and business advisory firm, BDO LLP, found that three quarters of operators (75%) feel business conditions are more difficult now than a year ago, with levels of demand the number one concern for 71% of logistics businesses.
Interestingly, staff shortages and increased labour costs – a perennial problem for the sector – are becoming less of a concern for businesses. Less than half of logistics leaders see it as a major challenge in the next 12 months. Challenges in recruiting warehousing staff and LCV drivers have also eased as volumes fall.
Jason Whitworth, corporate finance partner at BDO LLP, said: “Given the economic environment and market dynamics, it’s not surprising that the industry is cautious about the current trading environment, with real concern over volume of activity across certain sub-markets. As always, the logistics industry is feeling the effects of a tightening economic climate more than most, as inflation and interest rate rises continue to have an impact on consumer behaviour.
“Despite the lower overall confidence, there are still plenty of opportunities for operators, including greater collaboration with customers and other providers in the sector in areas such as shared-user warehousing, shared transport space, as well as electric vehicle charging or alternative fuel infrastructure.”
The report also showed that nearly nine in 10 respondents are investing in environmental, social and governance (ESG) projects. While the majority are driven by playing their part to combat climate change, there is clear acknowledgement of the growing commercial importance of being able to demonstrate ESG credentials in winning new business. There is a willingness to consider alternative fuel types, with electric solutions a top priority for investment, albeit jointly with diesel, suggesting the alternatives are not yet viable in many cases.
Whitworth added: “Investment in technology and ESG measures is a positive step to pursuing both cost savings and gaining competitive advantage. In addition, due to a need by many operators to boost volumes through new service offerings or breaking into new sectors, appetite for M&A activity remains strong.”
Looking at growth opportunities in the next 12 months, the most popular strategy is cost control and efficiency. According to the research, this is also one of the main drivers of investment in technology. More than half of businesses see this as an opportunity and, as in previous years, most will spend on upgrades to and replacement of existing technology. With the rise in cybercrime across all industries, cyber security is the second highest priority.
James Lean, Industry Director for Manufacturing, Transport & Logistics at Barclays Corporate Banking, said: “It is consistent with other global indexes to see the UK logistics sector feeling at a low level of confidence following the realigning of supply chain capacity.
“However, as our report shows, despite cooler demand from manufacturers and wholesalers, this resilient sector continues to look to the future, adapting their business models through digital strategies, investing in fixed assets and importantly their people.”
Solicitor appointed in historic Derbyshire court’s role
A solicitor has become the first woman to be appointed as Steward to an historic Derbyshire court.Wake Smith Solicitors’ private client director Suzanne Porter will hold the title of Steward to the Duke of Devonshire’s Liberties of Eyam and Stoney Middleton, Ashford, Tideswell, Peak Forest and Hartington, Crich.She was appointed under Section IV of the Derbyshire Mining Customs and Minerals Courts Act of 1852, and will conduct the business of the Great Barmote Courts.Suzanne, who was born and lives in Derbyshire, said: “I will follow the ancient customs and precedents of these courts and faithfully and impartially conduct the business, both in court and at other times, as required by the Act and for the benefit of Derbyshire Lead Mining.”The Barmote Court, held in the lead mining districts of Derbyshire, is for the purpose of determining the customs peculiar to the industry, and also for the settlements of any disputes which may arise in connection with it. It meets once a year, and will next gather together in November.Her role at the court will include swearing in the grand jury, presiding over the meetings of the court and adjudicating over any matters brought to the court’s attention. Nicholas Wood, Estates Director Derbyshire at Chatsworth Settlement Trustees, said: “I am delighted with Suzanne’s appointment as Steward to the Duke of Devonshire’s Liberties. She brings a wealth of experience to the position which makes her an excellent choice. Suzanne has a history of breaking new ground, and I wish her every success in the role.”Suzanne, who became the first female Head of the Private Client team in Wake Smith Solicitors’ long history in 2017, was recently shortlisted in the 2023 Modern Law Private Client Awards as the Lawyer of the Year – Wills & Probate category with her team up for Private Client team at the Yorkshire Legal Awards this month.
Champions (UK) Plc to merge with Lowaire
Costock-based Champions (UK) Plc is to merge with digital marketing and website development agency Lowaire.
Staff from each of the companies enjoyed a celebratory breakfast as they marked the start of a new collaboration which is designed to “propel both organisations forward.”
The deal marks the latest chapter in a remarkable story as each business began as “bedroom start-ups.”
Champions (UK) Plc’s Managing Director, Matthew Hayes, spoke of the partnership and explained what he hopes the future holds.
He said: “The objective of the merger is to combine Lowaire’s local presence and ambitious attitude with Champions’ years of experience and extensive offering to provide a results-focused approach for our clients.
“Furthermore, it allows Champions to offer a full service to clients from start-up all the way to mid-tier and fast growth corporate organisations.”
Lowaire boasts an in-house team with expertise ranging from social marketing, paid media, SEO and website design and development.
Through this partnership, they provide a full range of digital marketing and website design services to meet clients’ ever-changing digital needs.
Just like Champions (UK) plc, Lowaire started out as a one-man team from a dining room table back in 2014.
Now it possesses a dedicated team providing services to over 100 clients locally, nationally, and globally.
Matthew added: “We understand how difficult and challenging the agency market can be and how lonely it can be from the point of view of starting from scratch.
“They have proved themselves over the first seven years of business, but what we believe we can do is help add rocket fuel to the business, taking the learnings and lessons of being a bedroom start-up agency ourselves. We know what is required to deliver rapid growth for the agency itself.”
Lowaire’s Managing Director, Adam Coley started the business because he believed there was a gap in the market for a digital marketing agency that provided a better, more transparent, and personalised service for clients.
He said: “This collaboration marks a significant milestone for us. As specialists in producing robust digital marketing solutions, Lowaire sees this partnership as an exciting opportunity to fuse with Champions’ established growth strategies.
“Having worked for various companies including the NHS, I was quick to learn how a more personalised and result-driven approach could lead to better results and client retention. As an agile team at Lowaire, our nimbleness combined with Champions’ extensive experience will propel both our organisations forward.
“We truly believe our expertise coupled with Champions’ wide-reaching experience will uniquely position us in the marketplace and we look forward to sharing this exciting journey with our stakeholders.”
Accountants expands senior team
Magma Chartered Accountants and Business Advisers has strengthened its senior team following the appointment of Paul Pownall, as head of operations.
A well-known figure across the Midlands business community, Paul recently completed a spell managing a successful members’ golf club but has now stepped back into the professional services arena to join the team at Magma, which has offices in Leicester and Rugby and employs over 100 professional advisers and support staff.
Paul’s recruitment comes on the back of several recent appointments made by the business over the recent months.
Mark Tuckwell, Magma’s managing partner, said: “Magma continues to enjoy growth across our teams and client base, and Paul’s wealth of experience will allow us to develop our internal processes and infrastructure. Being able to attract talented individuals like Paul is testament to the positive direction of the business and the ‘people-focussed’ culture Magma has achieved.”
In his new role, Paul will be responsible for managing the business’s HR, IT, Finance and Marketing professionals as well as helping to deliver further improvements in client service and operational efficiencies.
Paul added: “I have known and respected the team at Magma for many years, and the opportunity to join such a progressive practice in a role in which I can bring all of my previous experience is very exciting.”
Paul has worked across the East Midlands for over 35 years and is a keen golfer.
East Midlands is being “levelled down” after scrapping HS2
Prime Minister Rishi Sunak has announced that the rest of HS2 will be scrapped, dropping the Northern leg between Birmingham and Manchester, seeing many angry reactions from leaders in the region.
HS2 costs are instead set to be allocated to build Network North – to drive better connectivity across the North and Midlands with faster journey times, increased capacity and more frequent services across rail, buses and roads – and fund transport projects across the country.
Rail, roads and buses are to benefit from £36 billion in transport improvements, and a further £12bn is to be set aside to deliver fast links between Liverpool and Manchester.
The Government is to deliver HS2 between Euston in central London and the West Midlands as planned, with a station at Old Oak Common and Birmingham Interchange and branches to central Birmingham and Handsacre, near Lichfield – where HS2 trains for Manchester, Liverpool and Scotland will join the West Coast Main Line.
The Government has said £9.6 billion will be reinvested in the Midlands:
- Funding the Midlands Rail Hub in full with £1.75 billion
- Over £1.5 billion guaranteed local transport funding for the new East Midlands Mayor
- Over £1 billion extra local transport funding for West Midlands City Region
- A new £2.2 billion fund for local transport across all areas in the West and East Midlands outside the city regions – smaller cities, counties, towns and countryside
- Reopened train lines and new stations
- The number of trains between Leicester and Birmingham will be doubled from 2 to 4 per hour
- £100 million will be shared across the North and Midlands to support the development and rollout of London-style contactless and smart ticketing
- Funding to fix 2 major pinch points on the A5 between Hinckley and Tamworth. Funding will also be provided for improvements to the A50/500 corridor between Stoke and Derby, cutting congestion for the 90,000 drivers who use the road each day and ensuring smoother journeys for drivers and freight around Rolls-Royce, Toyota, Magna Park and other major local employers
- A Midlands Road Fund worth nearly £650 million will be launched for new road schemes
- A further £250 million will fully fund 10 smaller road schemes in the Midlands, including the A509 Isham Bypass, near Kettering, and the A43 between Northampton and Kettering
- £2.2 billion for the Midlands to combat potholes
- £230 million will be invested in increasing the frequency of bus services in the Midlands and the £2 bus fare will also be extended until the end of December 2024.
Malcolm Prentice, chairman of Midlands rail depot maintenance firm MTMS, said: “HS2 wasn’t just about offering faster passenger train times, it was about freeing up the infrastructure to increase the capacity on our rail system for freight, because we can’t live with what we’ve got.
“Mr Sunak talks about digitalisation and modernisation, but while that will make a difference, it won’t allow the network to take on heavy volume and so this is a sticking plaster, not a solution to the capacity challenges that we are facing.
“It’s hugely disappointing, but if we are now going to develop and Midlands and Northern network then it should at least be a British project with British suppliers drawn from the same areas to avoid it further widening the North-South divide.”
Mr Prentice, who has more than 40 years’ experience of working in the rail industry, also took aim at the Conservative party’s own politicians whose inability to deliver HS2 has led to it having to be scaled back.
He said: “Mr Sunak stood there and talked about the project having been mismanaged and mis-delivered, but that has all been on the Conservative Government’s watch and many of the people in the room were responsible for that.
“Instead of standing there clapping and whooping, they should stood there hanging their heads in embarrassment.
“It seems that everybody who has got involved in HS2 has been more interested in their own self-interest and until the Government change the way these big projects are managed, any new rail project that comes along will have the same outcome.”
Drive-thru coffee shop plans in Edwalton stopped by council concerns
Concerns over the impact on residents and local traffic have stopped a planning application for a further drive-thru coffee shop close to Wheatcroft island in Edwalton following work by Rushcliffe Borough Council’s (RBC) planning team.
Planners originally refused plans from Edwalton Holdings Ltd for the site in December 2022 on land between the Porsche and ALDI sites adjacent to the A606 Melton Road and close to an existing similar outlet.
A subsequent appeal has now been dismissed by the Planning Inspectorate that cited the significant impacts on traffic flow at the proposed site and issues with the design of the facility.
Rushcliffe Borough Council’s Cabinet Portfolio Holder for Planning and Housing Cllr Roger Upton said: “Officers stepped in and stopped this application that could have had serious traffic implications and effects to local residents and that as the Inspectorate stated, would have harmed the character and appearance of the area.
“We welcome suitable and appropriate planning applications that can improve our local economy but in this instance officers were right to refuse this, backed up by the appeal being dismissed. The County Council also raised significant highways concerns and many were referenced by the inspector in his decision.
“Despite the applicants not seeking to engage with our teams prior to the application submission, RBC planners worked hard at the application stage to highlight the knock-on traffic effects would have been unsustainable. Standards of the design were also simply not up to scratch and ultimately they had no choice but to refuse it.
“They respond to many applications every year and it’s testament to how rigorously they are checked, they have alleviated where real community and highway issues could have been created here.”
Dismissing the appeal in their decision on September 26, The Inspector also highlighted the proposed single storey flat roofed building was deemed to have a boxy low level functional appearance and its roof mounted bulky signage blade would be disproportionate in size to the rest of the building.
On a visit to the site he could not be satisfied that the development would not result in a severe impact on the local highway network. There was a further lack of a retail impact assessment to consider the implications of the plans on the nearby existing retail centres.
Ward Councillors for Edwalton Cllr Hetvi Parekh and Cllr Gordon Wheeler said: “As local councillors for Edwalton, we would like to thank RBC officers and the work they put in for the appeal.
“The majority of the residents were against this application and had put numerous objections and had taken the time to comment on the planning portal.
“We also had put our objections on the planning portal. We are delighted that the appeal has been dismissed and the voice of the local residents has been heard.”
