Dates announced for Leicestershire Innovation Festival 2022
Following on from the success of Innovation Week in June this year, dates have been announced for 2022 with the focus on innovation due to spread across a fortnight to accommodate the wide range of events.
It has been announced that Leicestershire Innovation Festival will run from Monday, 14 February to Friday, 25 February 2022. The celebration of solving problems by thinking differently will be launched officially with an event at Space Park Leicester on Valentine’s Day and continue until Innovation Friday 12 days later. The Innovation Awards will take place on Thursday 24 February.
Dr Nik Kotecha OBE, Chair of Leicester Innovation Board, explained: “There are so many innovative ideas and projects in Leicestershire, which simply won’t all fit into five days. Last time we found that some events were competing against each other, so this year we would like our audience to have the opportunity and flexibility to see everything to be inspired to create their own innovation culture within their businesses.
“For the Innovation Festival we are inviting anyone who wants to share their innovations to organise an event and we will support by adding it to the official calendar and publicising it through the Business Gateway website and partners. This is a great opportunity for Leicestershire businesses to showcase their successes to a very wide and influential audience.”
The Innovation Festival is a partnership between Leicester and Leicestershire Enterprise Partnership, Leicestershire’s three universities, Innovate UK Edge, Midlands Engine and the Business Gateway.
Sonia Baigent, Chair of the Business Gateway Board, added: “The launch event at Space Park Leicester will be focused specifically on encouraging innovation in our Manufacturing sector. However, during the Festival we expect to see innovation highlighted in lots of different sectors and applications such as automotive, food and drink, textiles, medicine, and lots more. Every business – big and small – benefits from innovation, and that’s part of our message.”
Any organisation that would like to organise an event for the Innovation Festival should email peter.allen@bizgateway.org.uk before Christmas.
Further information will be published shortly on the innovation pages of the Business Gateway website: www.bizgateway.org.uk
Agency MD reacts to impact of interest rate rise and outlook for 2022
Purpose Media Managing Director, Matt Wheatcroft, reflects on the impact of the interest rate rise and looks ahead with some useful insights for 2022.
When asked what they think about the current economic and political landscape there are no doubt plenty of business owners saying “it’s tough” – except most are probably using a much stronger expletive instead of ‘tough!’ The rise in mortgage interest rates is already leading to a more cautious approach from banks towards borrowing and credit limits which in turn will impact both commercial and personal customer spending. Couple this with the stresses of the employment market and the clouds of perfect storm are already forming. Problems getting staff for roles in retail, logistics, food and drink and healthcare have been repeatedly highlighted, but the same issues are happening within the marketing profession as businesses battle to retain customers and market share. The demand for people with specialist digital marketing skills and experience and the salaries being offered has gone sky high – in fact, it’s gone to another galaxy! Companies which had already embraced digital marketing strategies within their marketing toolkit wanted more – and those who previously thought them unnecessary realised that lockdowns, store closures and people working from home required radical changes to their marketing approach. Businesses have been forced to make changes in order to counteract the loss of in-store and face to face interactions and the brand profile lost from traditional sponsorship or advertising at empty venues. Those affected have simply had to embrace the use of websites to sell online or offer click and collect services, as well as use email marketing, social media and digital PR in order to communicate with customers. Consequently, the battle for talent to meet this demand means that not a day goes by when marketing agency bosses don’t hear reports of a team member getting a call from a head hunter. If the combination of these dynamics adds to the likelihood of inflation (which I think it will), I fear there is a risk is that employees who jumped ship for inflated salaries might find themselves the first casualty when their new employer looks to rationalise their overheads – regardless of industry sector. So my advice to those looking to jump ship is to really consider if the grass really is greener on the other side? Would it be a better long term option to show a little bit of loyalty and stand by your current employer – particularly if they’ve treated you fairly over two of the worse years you will probably ever have experienced. As a business our saving grace has been the fact Purpose Media did everything to protect the financial and mental well-being of our staff has strengthened employee and client relationships. Also, a key part of our recruitment strategy has been to develop and nurture a good proportion of our talent by offering apprenticeships. The fact we can offer a structured career path has helped create a great place to work and lots of loyalty and many apprentices progress to be part of the senior management team. Offering these opportunities also gives me a lot of personal satisfaction as it is this generation of learners who has been most impacted by the last two years.Digital marketing agency wins helicopter filming contract in Swiss Alps for refrigeration company
The video production team from Derbyshire-based full service digital marketing agency Purpose Media has won a contract to film and photograph the delivery by helicopter of a refrigerator to a remote location in the Swiss Alps on behalf of global commercial refrigeration company, True Manufacturing.
Over the last 4 years Purpose Media has been helping the company develop its UK and European marketing strategy and has successfully launched its new brand message and communication strategy to establish True’s ‘Passion for Cold™’.
Day one of the contract in Switzerland involved filming True products in use in a commercial bakery, a commercial kitchen and a busy restaurant. The final day of the project involved filming and photographing the delivery of a refrigerator by helicopter to a restaurant in a remote location in the Alps.
Olga Beck, Marketing Manager EMEA at True Refrigeration, said: “The team at Purpose Media went above and beyond for us and we cannot thank them enough for their hard work across two intensive days. They project managed their time perfectly to scope out the scene and plan each day’s filming. The finished film and photography is something quite extraordinary and has certainly helped to demonstrate True’s ‘going above and beyond’ brand values.”
Claudio Davanzo, Creative Director at Purpose Media, said: “This was an incredible experience for the team. We’ve gone from working next door to the Peak District to filming in the Swiss Alps. There were challenges with the weather, but the team managed to get the shots they needed, and I’m pleased to say the end product is a triumph. Our team have certainly shown their versatility on this project.”
Nottinghamshire funeral firm unveils £350,000 plan to transform Eastwood’s historic police station
A Nottinghamshire funeral firm will soon be able to host services in its own purpose-built chapel thanks to an ambitious £350,000 renovation scheme that will give a town’s 19th Century police station a brand-new purpose.
Gillotts Funeral Directors has unveiled its plans to create a 20-seat chapel alongside a number of other new facilities on the ground floor of the building in Eastwood, which was built to serve the town in 1878 but has stood empty for more than four years.
The company, which is based next door in Nottingham Road, bought the police station three years ago and was recently granted permission by Broxtowe Borough Council to carry out a conversion which will ensure the building continues to perform a community function.
Under the plans, Gillotts will create multi-purpose spaces, including three chapels of rest, one of which will be large enough to hold intimate funeral ceremonies when only a small number of attendees are expected. There will also be facilities for families to prepare their loved ones for burial or cremation themselves, which is an important requirement of certain faiths.
An existing vehicle entrance between Gillotts’ current premises and the police station will be filled in and converted into a reception area, and the existing funeral home will be renovated to include two family rooms and more office space.
The expansion of the Eastwood site is also necessary because of its role as the headquarters for the wider Gillotts group, which also operates funeral homes in Kimberley, Selston, Heanor and Stapleford. Clients from any of its funeral homes will be able to make use of the new facilities.
Joanne Hutsby, a partner in Gillotts, says that the police station conversion is three years in the making and will follow other ambitious schemes to convert community buildings that the company has undertaken.
This includes a successful £300,000 renovation of the ground floor of the former United Methodist Free Church chapel in Main Street, Kimberley, which was turned into a funeral home six years ago, and the conversion of Selston’s former police station five years ago.
She said: “Eastwood Police station is a part of the history of the town and so we’re really pleased to be able to announce plans which will ensure that it will soon have a role in the lives of the community again.
“Changing trends and the lockdown has meant that many families prefer to have smaller, intimate funeral gatherings and our plans for a larger multi-purpose chapel will give them somewhere they can hold a service before their loved one is taken to be buried or cremated.
“It’s a first for Gillotts, but it’s another sign of how we are adding new facilities to keep up with what families are looking for when they set about planning their loved ones’ funerals.”
The police station, which has a more modern extension stretching around the corner into Oxford Street, was replaced in 2018 by a new station co-located with Eastwood Town Council just 150 yards away, on the site of the former Post Office.
Logistics REIT acquires duo of East Midlands properties
Urban Logistics, the specialist UK logistics REIT which recently completed a £250 million equity raise and moved to the Main Market in December, has acquired four assets, using proceeds raised, for a total consideration of £28.6 million.
The value accretive assets include three immediately income-producing properties and the forward funding of a development project.
Two of the properties are in the East Midlands, including a distribution depot at Elland Road, Leicester. The 27,115 sq ft site is a parcel delivery hub let to the Royal Mail Group. The purchase price paid was £3,180,000 at a NIY of 5.0%.
A warehouse at Caswell Road, Northampton was also acquired. The 22,783 sq ft unit is let to Tuffnells Parcel Express until 2031. The purchase price paid was £5,600,000 at a NIY of 5.7%.
The company further snapped up a warehouse facility of 117,031 sq ft near the airport in Dundee, occupied by Hermes Parcelnet, and entered into an agreement to forward fund the development of a new logistics unit in Sheffield. The agreement is subject to planning, and the development is expected to complete in November 2022, and will comprise a warehouse of 131,500 sq ft.
Richard Moffitt, Chief Executive, said: “We’re pleased to confirm our continued deployment of capital following the close of our recent oversubscribed equity raise. This is testament to our team’s ability to act swiftly and reliably on deal execution.
“As previously stated, we have an excellent pipeline of “last mile / last touch” logistics assets to acquire and the team will be working hard over the coming months, investing in those quality assets that will be accretive to shareholder value, with further acquisitions expected before the end of the year.
“Our strategy of acquiring mid-box last mile logistics assets, in key locations, with excellent transport links has not altered since inception in 2016. We acquire properties which are key to our tenants’ operations, and we continue to create additional performance through active asset management and improved environmental performance.”
Morris Homes agreed as development partner for latest phase at Ashton Green
A housing developer has been appointed to deliver the next phase of building at a landmark regeneration site in the north of Leicester.
Leicester City Council has selected Morris Homes as its development partner for the next parcel of housing development at Ashton Green – major project to create a new neighbourhood of up to 3,000 homes, along with community facilities, green space and retail.
Morris Homes is one of the largest independently-owned house builders in the country and will deliver a new village centre with around 380 new homes, including 114 affordable homes, a supermarket, some smaller shops and attractive open space.
The city council has agreed to sell to Morris Homes 46-acres of land across two plots bordering Ashton Green Road.
This will be the third parcel of land developed for new housing at Ashton Green. Morris Homes was also the council’s development partner for the first phase of building, completing the construction of 100 new homes in late 2020. All these homes are now occupied.
The new homes will be contemporary in style, similar to the first phase, and will include a mix of three, four and five-bedroom family homes and two-bedroom apartments. The homes will meet the environmental standards for Ashton Green and will also incorporate well-designed landscaping with high ecological value and sustainable urban drainage.
Morris Homes aim to secure planning approval next year and will begin work on site in 2023, with the first of the new homes expected to be completed later that year.
City Mayor Peter Soulsby said: “Morris Homes were the first to commit to developing at Ashton Green. Their appointment to deliver a third phase of new house building, with much-needed affordable homes, will help maintain the momentum of this vital regeneration project.
“Appointing a development partner to deliver another 380 homes is an important milestone and represents significant further investment in our growing city.
“The ambitious programme of house building at Ashton Green is already making a valuable contribution to the number of new homes that are needed in Leicester – and it will ultimately contribute greatly to the economic prosperity of the city.
“Over the next five years, we expect to see developers invest an additional £150million at Ashton Green, and deliver more than 1,000 additional new and affordable homes.”
Mike Gaskell, Chief Executive of Morris Homes, said: “We at Morris are delighted to be partnering with the city council on this important next phase at Ashton Green which will provide much needed houses and facilities to the local community. We have an excellent working relationship with the council and our shared aim is to provide an exemplar development,”
Leicester City Council is the principal landowner and promoter of the Ashton Green development. It has already delivered substantial highway infrastructure improvements including new walking and cycling routes, traffic calming measures, new bus facilities at Beaumont Shopping Centre and major road building schemes.
Most recently, the city council led on the delivery of a series of new spine roads to help unlock a further 40 hectares of future housing development land at Ashton Green, backed by £10million of government funding from Homes England.
Construction of another 307 houses is already underway by Tilia Homes, which began work earlier this year.
Some 3,000 new homes are planned in total as part of the overall development of Ashton Green, and it is expected that 30 per cent of these will be affordable homes for rent or shared ownership.
Derbyshire company staff write letters of festive cheer to people lonely at Christmas
Employees at a Derbyshire company have given a huge boost to a campaign designed to lift people’s spirits by sending them personalised letters.
The Give … a Few Words campaign was set up during the Covid pandemic in 2020 to try to reach out to isolated people by matching them up with volunteer writers who would send them a letter with a personal touch. Letter recipients were initially from care homes but the campaign has now expanded to include those who are isolated in other settings, as well as families going through a tough time who may appreciate the boost a letter can bring.
Lubrizol, a company with branches all over the world including at Hazelwood near Belper, has given the campaign huge support with more than 40 employees signed up to write letters to people they have never met, including writers from Mexico and the USA.
The campaign has recently launched a festive #Letters for Christmas drive to reach out to people who may be alone, or otherwise struggling, during the festive period – and a team of Lubrizol employees have been taking part.
One of them is Jagienka Harrison, from Allestree, who knows a thing or two about the importance of letter writing. When she arrived in the UK from her native Poland aged 19, Jagienka relied on letters to keep in touch with her family.
Jagienka said: “When I first moved to England in 1999, the Internet wasn’t a thing and I used to write letters to people. I used to try and ring my mum every now and then but it cost a lot more in those days. Letters were great and I used to receive a lot of them.”
When writers take part in the Give … a few words scheme, they are given some details about the interests of the person receiving the letter, which may range from handicrafts to sport, history or even a love of jokes! The writer then crafts a personal letter which is sent to the charity’s post box in Huddersfield where it is then forwarded to the recipient – and only positive content is allowed! They are also able to write an email – the idea is just to communicate personal positive messages through the power of the written word.
Jagienka, an HR administrator for Lubrizol, said: “I think it’s a great scheme. It pushes you a little bit! What I always think about, especially over Christmas last year, is that although my grandmother is no longer alive, if she had been, she would have felt very lonely in Covid times on her own, I’m sure, and she would have loved to receive a letter from somebody.
“I just think that it doesn’t cost anything apart from a piece of paper and a stamp but you might just make somebody’s day.”
The idea of the Give … a few words campaign is that it is not intended to be a long-running pen pal scheme, which may make participants feel the pressure of long-term commitment, but rather, a one-off letter.
Founder Sharron Wilkinson, of Huddersfield, has now set up the campaign as a community interest company.
She said: “Some people receiving these letters have been in tears. They are overwhelmed. There is something really, really special about receiving a gift of something and there is nothing expected in return.
“Care homes have had such a tough time. Residents have had a tough time. A letter gives everybody a lift.”
Sharron said Lubrizol’s support for their campaign had been “amazing”, with letter writers from its branches overseas having got involved outside the festive season too.
She said: “Lubrizol has really, really embraced this. They have been involved from really early on. We are highly appreciative of their support and kindness.
“Some people are on their own, that’s the reality. Or they might be having a tough time. It’s just a really nice thing to be able to do to give some people a bit of a lift, and a bit of a smile.”
For more on the Give … a few words campaign, see https://thegive.co.uk, phone 07498 818838 or email hello@thegive.co.uk
2022 Business Predictions: Andrew Mair, partner and head of BDO LLP in the East Midlands
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Andrew Mair, partner and head of BDO LLP in the East Midlands.
There’s little doubt that the last 12 months have continued to test the resilience of the East Midlands business community. Impacted by the emergence of a global pandemic in 2020 and its lingering presence, regional businesses have also had to contend with the fall-out from Brexit – adapting the way they operate to manage pressures on domestic and international supply chains, input price inflation, worker shortages and additional red tape and regulation.
The challenges have remained consistent throughout 2021, but the way businesses have dealt with those issues has evolved. East Midlands businesses have remained optimistic about the rate of recovery, have committed to delivering on growth strategies and have stayed focused on critical business issues that transcend COVID-19, such as ESG.
The recent emergence of a new variant has reminded us all that the pandemic is an ever-present threat to businesses and the way in which they operate. According to our latest Rethinking the Economy survey of 500 medium-sized businesses, leaders in the East Midlands fear supply chain disruption will affect their ability to offer the usual range of products and services, impacting end of year trading. Nearly half of companies in the region are planning to increase the prices of their goods and services as a result.
Despite these pressures, more than a quarter (27%) of companies in the region expect to see their revenues return to pre-pandemic levels within three to six months. That sense of optimism translates into plans for 2022, with nearly a quarter (23%) of East Midlands companies surveyed prioritising investment in international expansion, with one in five Midlands businesses looking to drive growth into the US next year.
M&A opportunities have continued to rank highly in terms of investment priorities in 2021, and we expect this trend to continue into next year. It’s fair to say that the regional marketplace has rebounded from a turbulent 2020, with the uplift in activity leading to eager and cash-rich investors willing to pay over the odds for businesses, skewing valuations.
Reassuringly, the fundamental market dynamics remain steadfast, with the appetite of corporate acquirers, private equity, alternative investors and open debt markets showing no signs of abating. The key is finding a good home for the ‘wall of money’ that’s currently available in the regional market.
Sectors to watch in 2022 are technology, which will remain at the forefront of activity, biotech, pharmaceuticals, life sciences and telecoms. The good news for the East Midlands is the re-emergence of ‘forgotten’ sectors, such as automotive and aerospace, as well as hospitality and leisure, which have all suffered at the hands of the pandemic.
One thing is certain in 2022 and that’s the ongoing debate about the threat of climate change, the environment, the depletion of natural resources and the role that businesses have to play in helping to achieve the stated aims of our own and other nations. As a region that has a rich heritage in manufacturing and exports across the world, the East Midlands has a real part to play in the ESG movement – whether that’s by prioritising the green agenda or focusing on achieving net-zero emissions. The efforts to combat climate change will create real changes to business models, operational costs and regulation – and corporate strategies will have to evolve to manage the shifting landscape.
There’s much to digest from 2021 and much to consider for 2022, no more so than the growing emergence of modern, collaborative working, and the transition for many to an agile-workforce. For now, businesses will have to balance the pressures of supply chain disruptions, geopolitical risks, the continuing fall out from Brexit, price inflation, and labour shortages – factors that have and will continue to influence day-to-day operations.
Qatar to invest £85m in Rolls-Royce’s new low carbon nuclear power business
Rolls-Royce has reached agreement with Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar, to invest £85 million in Rolls-Royce SMR Limited.
Rolls-Royce SMR is building a new technology solution to deliver affordable, low carbon, nuclear power. A single power station will occupy around one tenth of the size of a conventional nuclear generation site and power approximately one million homes.
QIA will join Rolls-Royce Group, BNF Resources UK Ltd and Exelon Generation Ltd as shareholders in Rolls-Royce SMR, taking a 10% share of the equity.
Mr Mansoor bin Ebrahim Al-Mahmoud, Chief Executive Officer of QIA, said: “QIA is investing in the energy transition and funding the technologies that enable low carbon electricity generation. We will continue to seek out investments that align with our mandate to deliver long-term value for future generations through responsible sustainable investments.”
Warren East, CEO, Rolls-Royce Group, said: “I am tremendously pleased to announce that we have further strengthened our relationship with Qatar, through QIA’s investment in the Rolls-Royce SMR business. We have successfully raised the capital we need to establish Rolls-Royce SMR and it is encouraging to confirm that the business is now set up to succeed.”
Business and Energy Secretary Kwasi Kwarteng said: “This investment is a clear vote of confidence in the UK’s global leadership in nuclear innovation and follows the £210 million of government investment in the development in Small Modular Reactors.
“It represents a huge step forward in our plan to deploy more home-grown, affordable clean energy – ensuring greater energy independence for the UK, highly skilled jobs and bringing cheaper, cleaner electricity to people’s homes.”
Minister for Investment, Lord Grimstone, said: “Although the COP26 Summit ended last month, the work to reach Net Zero and build back greener from the pandemic goes on.
“Investment will play an important role in this. By investing millions into innovative green tech, like Small Modular Reactors, not only are we working hard to end our contribution to climate change, but we are securing thousands of highly-skilled jobs.”
The Rolls-Royce SMR business is now fully funded, having secured £490 million through commercial equity and UK Research and Innovation (UKRI) grant funding. The development of SMRs is a core part of the UK Government’s 10-point plan for a green industrial revolution.
Packaging firm helps out the homeless and vulnerable with festive care packages
Staff at a packaging firm have once again played Santa – hand-delivering hundreds of hampers to the most vulnerable people of the area.
The elves at The Wilkins Group, based in Colwick, Nottinghamshire, have put together 250 festive care packages full of winter essentials to help users of local homeless shelters, and other vulnerable people, get through the winter months.
It follows a similar, successful charity drive last Christmas, in which The Wilkins Group delivered 344 festive hampers to local Covid-19 heroes and those most in need.
The latest packs contain a hat, gloves, thermal socks, toiletries including shower gel, toothpaste and a toothbrush, and snacks.
Among those set to benefit are users of Emmanuel House, Framework, The Friary, Men’s Complex Needs, Women’s Complex Needs, Hughendon Lodge, Nottingham Nightstop, The Arches and SOTA Sneinton Hermitage.
The donation comes after charities warned that they expect homelessness in Nottingham to increase past pre-Covid levels and that this winter could be the worst in a decade for rough sleepers.
A new kind of homelessness is presenting itself, with reasons including domestic issues, rather than substance misuse or mental health problems.
One recipient of a Wilkins care package, Sam, a service user at Emmanuel House support centre, in Goose Gate, said he had recently been released from a five-week prison term for a probation violation.
Sam said: “Last night I was on the Trent embankment in my sleeping bag.
“The toiletries will certainly come in handy. It’s very kind of The Wilkins Group to do something like this. It means a lot.”
Gill Barker, marketing and fundraising assistant at Emmanuel House, said: “The festive packages from The Wilkins Group are gratefully received by Emmanuel House support centre.
“The contents of the donations are amongst our most needed items and will be distributed to people using this service who are experiencing homelessness, in crisis, are rough-sleeping or at risk of homelessness.
“It will make a difference to the beneficiaries, who otherwise have no access to these basic supplies that many of us take for granted. This is particularly important at this time of year.”
Justin Wilkins, sales and marketing director at Wilkins Group, said: “There’s no doubt that it’s been another tough year for many. Now, as we’re in the depths of winter, we find ourselves thinking more and more of others, and what we might be able to do to help them.
“I had no idea how many charities there were that help the needy in our city and county – it shows how much they are needed. As a local company, we are committed to giving back to our local community, and if these packs can put a smile on just one person’s face, then it’s worth it.”
Bingham industrial unit sold to e-commerce fulfilment business
An e-commerce fulfilment business has snapped up a Bingham industrial unit.
Anthony Barrowcliffe of FHP Property Consultants has completed on the sale of 35 Moorbridge Road to Crocodile Stores.
The unit comprises of a semi-detached warehouse, of 5,588ft², with 4.5 metre eaves, located within an established industrial location.
Anthony Barrowcliffe of FHP Property Consultants said: “I realised quickly when I met Matt Kirby that he had a rapidly growing business working in the e-commerce sector which has seen huge growth, especially due to Covid-19.
“He was already operating three warehouses from Cotgrave so 35 Moorbridge Road worked brilliantly for this already established business due to it being located a short simple drive away on the A46.
“The warehouse consisted of simple storage space with only a small office to the front which suited Crocodile Stores operation perfectly. I hope to work with Matt Kirby again as I know he has already almost filled 35 Moorbridge Road and is still winning more and more business due to his brilliant operation/reputation.”
Matt Kirby of Crocodile Stores said: “Crocodile Stores offer e-commerce fulfilment services and Christmas is a key time of year so time was of the essence in getting the deal done in order to be ready for our peak season. Securing the additional space has allowed our business to service significant growth for our clients with order volumes doubling compared to Quarter 4 in 2020.”
East Midlands economic recovery slows as businesses grapple with uncertainty and price rises
The brakes are being applied to job creation, sales and investment in the East Midlands as economic growth slows down, new research reveals.
Every indicator of economic activity recorded a drop between the third and fourth quarters of 2021 in East Midlands Chamber’s Quarterly Economic Survey, while confidence was also down.
It was also the first time the State of the Economy Index – which aggregates the various indicators to rate the region’s economic health – fell since the beginning of the pandemic, having grown consistently since Q2 2020.
Chris Hobson, director of policy and external affairs at East Midlands Chamber, said: “The reading of our State of the Economy Index will be a disappointment for businesses and indicates an economy that continues to grow, but at a rate of pace that is slowing.
“To put it another way, over the past few months, the brakes have started to be applied to parts of our economy.
“When we dig a little deeper, we can see the reality for many businesses. They are having to contend with rising prices for raw materials and staffing, which is putting the squeeze on margins.
“While many businesses spent much of 2021 trying to stave off passing these price rises on to support competitiveness, additional pressures at the end of the year, including increased energy costs, seem to have provided the proverbial straw to break the camel’s back.”
Just under 400 businesses across Derbyshire, Leicestershire and Nottinghamshire took part in the survey between 1 and 22 November.
Key findings from the survey for the East Midlands included:
- UK sales were down by 9% in Q4 compared to Q3, while UK advanced orders reduced by 17%
- Overseas sales and orders were down by 3% and 1% respectively
- The proportion of businesses that increased their workforce fell by 8% (a net 25% of organisations grew headcount in Q3 compared to 17% in Q4), while there was a 3% drop (from a net 38% in Q3 to 35% in Q4) in those saying they expect to employ more staff in the next three months
- The rate of improvement for cashflow dropped by 10% at the same time as 62% of organisations (up from 46% in Q3) were concerned about future price rises
- There was a 2% drop in the proportion of businesses intending to invest in machinery and a 7% in those anticipating investment in training staff
- Confidence on turnover and profitability improvements dropped by 3% and 8% respectively
Chesterfield IoT software company raises £2.1m
A Chesterfield-based business which aims to transform industry with its internet of things software platform has raised £2.1m to accelerate its international expansion.
Konektio received funding from both the Midlands Engine Investment Fund (MEIF) and Northern Powerhouse Investment Fund (NPIF), managed by Mercia and Foresight Group, along with existing investor Tern plc.
The funding will allow Konektio to further develop the product, boost its sales and marketing team, create a number of new highly skilled roles at its headquarters, and grow sales in international markets.
Konektio’s main product AssetMinder enables companies to connect to and monitor assets, ranging from individual components to turbines in remote locations or assets across an entire factory floor. The technology gathers data from the assets, allowing users to make informed decisions on maintenance and servicing, reducing downtime and energy usage and improving efficiency.
AssetMinder, which was commercially launched just over two years ago, is now used across multiple sectors from food processing and manufacturing to logistics, energy and water industries. Konektio clients include maintenance and repair operation Dexis, GCE Healthcare, global engineering company Howden and gas turbine manufacturer Centrax, among others.
The company, which was previously known as InVMA, was founded by Patrick Nash, Jan Hemper and Jon Hill, who recognised the need for the software due to their work as industrial IoT consultants. It now employs around 20 staff at its headquarters in Chesterfield and has recently opened an office in North Carolina.
Peter Stephens, CEO of Konektio, said: “Companies have started to cut through the confusion around digital manufacturing and the next industrial revolution and now share a real appetite to see how the intelligent use of data can deliver returns on investment.
“This is really good news for our business, and we are looking to capitalise on this trend by investing significantly in product development, R&D and expanding our global customer base. The investment secured will help us achieve these goals.”
Kiran Mehta, investment manager at Mercia, said: “Konektio is a deep tech company with the potential to transform industries ranging from manufacturing to infrastructure and power generation. The team are renowned for their knowledge and strong track record. This funding round will enable them to take their product to the next level and establish the company on the global stage.”
Adam Huckerby, senior investment manager at Foresight, added: “We have been impressed by management’s achievements to date. There is a wealth of growth opportunity in the market and this is one of several IOT-related investments Foresight has made. We look forward to working with the team over the coming years.”
Al Sisto, CEO of Tern Plc, said: “We are very pleased that Konektio has secured a significant institutional investment in order to fund the next phase of its growth. We welcome the Mercia and Foresight funds as our partners, alongside the management and founders of Konektio, to help the business achieve its full potential.”
Kerry’s Fresh donates Christmas trees to local care homes in bid to spread festive cheer
Nottingham-based produce supplier Kerry’s Fresh has donated a number of real trees to local care homes and causes – in a bid to share some festive cheer this Christmas.
The family-run business delivered real trees to Church Farm Skylarks care home in Lady Bay, and Church Farm Rusticus in Cotgrave, where they were greeted with joy from residents and staff.
The Friary, a local charity based in West Bridgford also received six trees from the business, to deliver to local, vulnerable families who would otherwise not have had a Christmas tree this year.
Aidan Kerry, business development manager at Kerry’s Fresh delivered the trees personally and said: “Ensuring we followed all safety procedures, it was really lovely to meet some of the residents at the care homes and we were delighted to see how pleased they were to receive the trees.
“We also hope we brought some joy to those families who will have received the trees in partnership with The Friary this year.
“As a business, we are always looking at ways we can help and engage with the local community spread some cheer, especially in such uncertain and turbulent times. We wish everyone a safe and Happy Christmas.”
Specialising in care for people living with Dementia, staff at Skylarks care home were preparing for their annual ‘Winter Wonderland’ themed party for residents where the tree would take centre stage.
Whilst at Church Farm Rusticus resident Jean was excited at the prospect of decorating the tree.
Helen Walton, head of operations at Church Farm Care, said: “We were delighted to receive Christmas trees at our Church Farm care homes from this generous local business. Our family members love Christmas and everything that is involved.
“Engaging with the local community is extremely important to Church Farm Care so this gesture means a great deal.”
90% of Midlands businesses set to be impacted by R&D tax reform
Ninety per cent of Midlands business leaders will need to rethink their tax and innovation strategy as the Government has confirmed new R&D tax relief rules, first announced in the Budget, according to new research from accountancy firm, BDO.
The bi-monthly Rethinking the Economy survey of 500 leaders of medium-sized businesses reveals the significant proportion of Midlands businesses that will be impacted by the announcement which aims to target abuse, improve compliance and drive UK innovation.
Experts warn that without forward planning and a holistic tax strategy, this could have substantial implications on business’s cashflow and moreover for innovation in UK businesses and particularly in the regions.
Ross Northall, partner at BDO LLP, said: “At a policy level, it makes sense that the Government are seeking to onshore R&D, enhance UK innovation and better police genuine UK R&D but, practically, business leaders need a plan.
“The 90% of Midlands businesses with overseas R&D will need to consider modelling the impact of these tax changes on their R&D claim. This will allow them to truly understand the net cost of innovation for future R&D now the detail has been announced.
“Of course, the greatest cost to UK Plc could be that businesses invest less in R&D overall as they’re not able to transfer the current level of investment into the UK.”
ONS figures estimate that approximately £25.9 billion of the £47.5 billion of R&D investment in 2019 was in the UK with the remainder spent overseas.
BDO tax director, Claire Hudson, added: “For business leaders, this isn’t a case of just re-looking at their approach to R&D. Companies need to take a strategic approach and consider the detail of these changes and whether a restructure is required.
“There are several corporate tax considerations, such as whether onshoring would result in a transfer of IP, whether transfer pricing is impacted, and any overseas entities need to be liquidated. The good news is there is time to get into the detail, but this needs to be a priority for leaders in the new year.”
Businesses have struggled with staff shortages over the past 12 months and recent data showed 77% of Midlands businesses are already planning to increase their use of contractors to bridge the skills gap next year. Skills shortages could also be a considerable barrier to onshoring effective R&D.
BDO tax partner, Ben Tarry, who leads the Global Employer Services team, added: “The changes may also have an impact on staffing models within businesses, which could see a need for increased resource located in the UK.
“This could either be through permanent transfers, project workers or other. In each scenario there will be a need to consider the tax, social security and payroll compliance implications of cross-border employee movement.”
There is also a Government consultation – open until the 7th January 2022 – seeking views on the introduction of a UK re-domiciliation regime, which would make it possible for companies to re-domicile and therefore easier to relocate to the UK.
Housing developer on a mission to make Christmas special for disadvantaged kids
East Midlands housebuilder Peter James Homes has collected well over two hundred gifts as part of a drive to ensure that no child goes without a present this Christmas.
Alongside its partners within the McCann Group; J McCann & Co Ltd and McCann Utilities, Peter James Homes has teamed up with Nottingham radio station Gem 106 and charity, Cash for Kids as part of this year’s Mission Christmas.
Cash for Kids teams up with radio stations and companies across the UK every year to make sure every disadvantaged child wakes up on Christmas morning with a present under the tree.
For the past few weeks, Peter James Homes has been asking its suppliers, and anyone else who wished to help out, to donate new and unwrapped Christmas presents for youngsters of all ages.
Now, 298 presents have been amassed at the group’s head office in Chilwell, Nottingham.
Staff have also been raising money for the cause, including making cash donations for wearing festive garb to work on Christmas Jumper Day, Friday, December 10, and the grand total currently stands at £1,405
John McCann, CEO & Chairman of the McCann Group, said: “The generosity of our staff, suppliers, partners and others has been astounding.
“The idea of bringing joy to the life of a vulnerable or disadvantaged child, brings out the true meaning of Christmas in all of us. We were simply delighted to be able to pass on so many wonderful gifts to such a worthwhile campaign as Mission Christmas, from all branches in our group.”
Companies that contributed to Peter James Homes’ Christmas gift request include Nottingham solicitors Gateley Legal, Midway Clothing, which supplies PPE and branded apparel to Peter James Homes and McCann, estate agents William H Brown and FHP Living, marketing agencies M360 and The Dairy, Castle Donington-based Poppy PR Ltd, Birmingham City Council, Enva a local skip hire company, and United Trust Bank which has funded most of the developments at Peter James Homes.
Justine Bates, fundraising executive at Cash for Kids Midlands, said: “Christmas is a time for giving, but we’re blown away by the efforts of our donors this year. We’d like to thank everyone at Peter James Homes, McCann and everyone else who has donated cash and gifts for helping to ensure no child goes without this Christmas.”
Nottinghamshire care provider sold
Specialist business property adviser, Christie & Co, has sold Bank House Care Homes which comprises a portfolio of two purpose-built care homes in Nottinghamshire.
Established by Trish and Kris Sooriah in 2000, Bank House Care Homes is a family-run business that has enjoyed success with its two most recently constructed state-of-the-art, purpose-built care homes, Ashcroft and Willowcroft, which now make up the entirety of the business’s care home portfolio.
Both homes are situated on the same site, close to Sutton-in-Ashfield town centre in Nottinghamshire.
The business has been purchased by Only Care Limited, a family-run operator established in 2007, which caters to residential, nursing and dementia care needs across England.
Speaking on behalf of Only Care limited, director, Rishi Dhamecha, says: “We are excited to have completed on the acquisition of these two purpose-built care homes in Sutton-in-Ashfield, Nottinghamshire.
“Both homes have a fantastic reputation and share the same family values as us. We look forward to working closely with the team to continue the outstanding levels of care. We also wish Patricia Sooriah and her family well in their next endeavours.”
Lee Howard, regional director – healthcare at Christie & Co, who handled the sale, says: “It has been a pleasure to act for Kris and Trish over the years, having been involved in selling them Ashcroft in 2011. It is a fitting tribute to the late Kris Sooriah and Trish’s continuation to see the units become two of the most respected homes in the Midlands and we were honoured to act in selling them to Only Care.”
Bank House Care Homes was sold for an undisclosed price.
Jobs created as distribution business expands with 100,000 sq ft unit
Commercial Property Partners (CPP) has completed a 100,000 sq ft letting at Calladine Park, Orchard Way, close to Junction 28 of the M1, to distribution business, Home Delivery Solutions (HDS).
The move is set to support HDS’s expansion requirements following significant growth over the past 18 months in the volume of goods handled through existing contracts, alongside new client contracts.
This recent growth for the business, which includes key clients Costco, B&Q and Vibrant Doors, has resulted in the expansion from its present base in Markham Vale, Chesterfield, and will secure an additional 20 jobs, with more to follow.
The unit offers HDS a modern high-grade warehouse with reception, office and refurbished welfare provision.
Sean Bremner, director of CPP, said: “We are delighted to have agreed terms with Home Delivery Solutions so swiftly after our client completed their works upon the building. HDS’s initial search was for a smaller property, but during our conversations their volumes continued to rise and so our suggestion to match them into Calladine Park has worked out well for all parties. They are a welcome addition to our client’s portfolio.”
Stephen Taylor, Managing Director of Home Delivery Solutions, added: “HDS has seen huge growth helping our clients to meet their delivery promises over the past year. The move to Calladine Park will enable our business to continue with its rapid expansion plans.
“From the first meeting with Sean, he understood what we needed, was pro-active in showing us suitable options and slick negotiations followed to enable us to move swiftly to a deal position.”
Rob Wofinden from Browne Jacobson’s Nottingham Office was legal counsel to the landlord and commented: “It was a real pleasure working alongside CPP on this matter for our mutual client. The whole transaction ran very smoothly, and the client is delighted to have Home Delivery Solutions on board.
“The lettings market in the warehouse and distribution sector is certainly very strong, particularly across the Midlands region, and it is great to be at the forefront advising on these significant letting deals with CPP.”
Time to go green and boost your business
Leicester’s Business Gateway is giving small businesses the opportunity to play their part in tackling the climate crisis and improve their bottom line with a series of six webinars in the new year. As well as reducing their carbon emissions, the businesses will be helping to attract more trade as customers increasingly looking to buy from sustainable companies.
The Business Gateway has commissioned Sustainability West Midlands (SWM) to run the webinars which start in January and, like all Business Gateway events, will be free of charge to participating businesses. The programme of webinars will cover How to find funding and support; Green transport; Energy saving; Reducing waste and Bringing your staff on board.
Andy Whyle of SWM said: “We’re delighted to be working with the Business Gateway again to promote sustainability, particularly as Leicestershire is so clearly committed to tackling climate issues head on. We’ll be including speakers from local companies who have already introduced green changes, so that other small businesses can see how easy it is. Our focus throughout will be on supporting small businesses to understand the need to go green, where to find funding to do this and the benefits that they can create.”
Sonia Baigent, Chair of the Business Gateway Board, added: “In the near future, there are bound to be new regulations around waste reduction, renewable energy usage and carbon emissions so this programme is designed to help Leicestershire businesses get ahead. On top of that, the latest research shows that a massive 85% of UK consumers now make more sustainable lifestyle choices. By becoming more sustainable, our businesses can get a share of that. Going green really will boost your business.” (Deloitte: Sustainable Consumer)
An additional benefit for participating businesses is that they will be supported to draft their own Green Policy document at each webinar, completing it at the final webinar in March 2022.
The full programme of webinars for Going Green to Boost your Business is:
What Does Net Zero Mean for your Small Business? 11 January
Funding, support and opportunities for your SME 25 January
Greener Transport 8 February
Energy Saving in your Small Business 22 February
Reduce your Waste, increase your Profitability 8 March
Engaging your Customers and Staff 22 March
All webinars start at 1pm and run until 2.30pm
You can book your place here: https://bit.ly/2ZYYN53
Accountancy firm secures private equity investment
Dains Accountants has secured significant investment from Horizon Capital, the private equity investor specialising in technology and business services.
With almost 200 staff, Dains provides services to 4,000 fast-growth businesses, international companies and high net worth individuals helping clients achieve their goals through audit, tax and business advisory and support services.
The market that Dains operates in is highly fragmented and driven by strong tailwinds due to increasing levels of compliance and sophistication, as a result of which a growing proportion of clients are outsourcing business-enhancing tasks to expert providers.
Dains has delivered growth through the COVID-19 pandemic. Horizon Capital have invested significant capital to expand these capabilities further and to enhance this through high quality acquisitions. The partnership with Horizon will enable Dains to continue to build on the momentum already created following the recent acquisitions.
Dains is Horizon Capital’s fourth new platform investment in 2021 following those in BP3, Modern Networks and The Marketing Practice (TMP) earlier in the year, which have already completed four acquisitions collectively on their buy and build journeys.
Richard McNeilly, managing partner of Dains, said: “This is an exciting time for Dains, our clients and colleagues. We are delighted to be partnering with Horizon Capital who have a strong track record in supporting companies such as ours to accelerate both organic and acquisitive growth. Dains has grown in recent years thanks to the hard work of our colleagues and the support of our clients, and we look forward to building on that success with this investment.”
Luke Kingston, partner at Horizon Capital, added: “We are excited to invest in Dains as the company provides essential, tech-enabled services to a large universe of Small and Medium-Sized Enterprises and high net worth individuals, both vital components of the UK economy. Dains is already a strong player with an impressive track record, and we look forward to working with Richard and his team to supplement this with an exciting acquisition strategy.”
