Duo of tools and building materials businesses open at new £30m mixed-use development
Two UK-wide tools and building materials businesses have opened their doors at a new £30 million mixed-use development in Nottingham.
Tool Station started trading earlier this month at Teal Park off the Colwick Loop Road in Netherfield. They have been joined this weekend by Screwfix.
Howdens is due to start the fitting out of its 6,000 sq ft premises towards the end of this month.
This activity marks the completion of the 33,300 sq ft trade park and a 28,860 sq ft industrial unit sold to Storage Giant which has been jointly developed by Warwickshire-based AC Lloyd Commercial and Nottingham-based based Henry Davidson Developments (HDD).
The multi-million-pound development will also include another six trade units and six large employment units totalling 111,000 sq ft, a care home, a new Local Centre with four retail shops, a children’s day nursery and a pub as well as an Aldi supermarket when it is completed.
Mark Edwards, Managing Director at AC Lloyd Commercial, said this was the first time he had visited Teal Park since the first national lockdown in March 2020.
“It was fantastic to see all the work that has been done over the last 19 months in person – and the difference to my last visit is staggering,” he said.
“There was a hive of activity with customers already visiting Tool Station and Screwfix and I’m sure there will be an equally positive response when Howdens and Storage Giant open.
“Looking at photos of the trade park doesn’t do it justice and we are really pleased with the completion of the first phase of the development.”
Richard Croft, director at HDD, added: “This is the first branch of Tool Station in this part of Nottingham and the steady flow of customers shows that Tool Station and Screwfix are already proving popular.
“The opening of these two units will be part of an overall job creation figure of 340 full-time equivalent posts when Teal Park is finished which is good news for local job-seekers and the local economy.”
Derbyshire Dales District Council to further support recovery of small businesses with grants
To support the continued recovery of the local economy, Derbyshire Dales District Council proposes to utilise its remaining COVID Additional Restrictions Grant (ARG) allocation to help small and micro-businesses to adapt, diversify and improve resilience post COVID.
Priority will be given to businesses operating from business premises and employing staff in order to assist longer term economic recovery. Applications from businesses with growth plans curtailed as a result of COVID restrictions will also be considered.
Applicants should show that investment will contribute to one or more of the following: increase turnover, enhance productivity, enable diversification/expansion into different products or services, improve efficiency or safeguard/create new jobs.
Businesses in manufacturing, engineering and knowledge based/creative and digital sectors are particularly encouraged to apply.
Grant support at 50% of eligible project costs up to a maximum of £20,000 will be considered for projects costing more than £10,000 and up to £40,000 (excluding recoverable VAT).
Larger projects may be considered in exceptional cases. Eligible costs include: new equipment, machinery or technology; specialist consultancy; or expenditure to reduce the carbon footprint of the business.
Applicants must be able to complete their investment and claim the grant by 28 February 2022 latest.
Three quotes are required for items of expenditure over £1,000. These must be submitted online as part of the application.
Applications are to be submitted online before 5pm on 15 November 2021.
Carlton Forest 3PL acquires 100,000 sq ft site in Nottinghamshire
Carlton Forest 3PL has added a further 100,000 sq ft site to its growing portfolio, it’s fourth building acquisition in just eight months.
The warehouse, located at Tuxford, Nottinghamshire, close to the A1, is facilitating stock storage, management, and fulfilment for two significant retailers to support them with their strategic long-term supply chain management.
“We continue to seek opportunities to grow our customer base and the reputation that we have secured for our high levels of customer service are paying dividends as businesses seek partnership agreements with us,” said Adam Jones, Managing Director, Carlton Forest 3PL.
“This latest acquisition highlights our ability to create tailor made solutions in strategic locations that suit our customer requirements and allows us to integrate the site into our business operations with ease.”The site is now fully operational and has secured the employment of ten staff from the local community after the previous company operating from the building went into administration. The companies’ entire portfolio of warehouse space now exceeds 1.3m sq ft.
Adam concluded: “This latest acquisition joins our sites at Worksop, Hellaby and Bawtry Park and gives us great flexibility in offering support to business who are either based in the region or who are seeking a distribution hub in the area. 2022 already looks exciting for us with further expansion planned and warehouse acquisitions already in the pipeline.”
Record month for Nottingham property developer
Hockley Developments, the Nottingham-based supported living and residential property developer, has exchanged on £5m of forward sales in the month of October.
Announcing the record month, head of construction, Paul Kennedy, confirmed demand continued to be higher than the business could supply.
“With one of our repeat buyers exchanging on the full development at The Phoenix development, a 26 apartment new build development in Nottingham, and further exchanges at our site at Westbridge House, this highlights the confidence in the value, finish and specification that our buyers have.
“With us expecting a similar amount of sales to be agreed in November across two new developments in Sherwood and St Anns in Nottingham, we are now focusing on securing further sites to develop in 2022.
“We also expect to expand our supported living developments across the East Midlands next year with sites being identified in Leicestershire and Northamptonshire.”
More than half of UK private equity firms have made investment strategies more ESG focused
More than half of UK private equity firms have made their investment strategies more ESG focused, despite COVID-19 threatening to halt progress as firms rallied to support portfolio companies throughout pandemic uncertainty.
According to accountancy and business advisory firm BDO, which studied the environmental, social and governance (ESG) policies of 100 private equity (PE) houses with UK operations, PE firms are increasingly having to prove to investors that they take ESG issues seriously.
While the majority have started to make their investment portfolios more responsible from an ESG perspective, progress stalled slightly during COVID-19 as PE houses focused their attention on supporting portfolio companies through the worst of the pandemic.
- In 2021, 57% of UK PE firms clearly set out the changes they have implemented to make their investments more ESG focused.
- 55% of UK PE firms now adhere to the United Nations Principles for Responsible Investment (UNPRI), the world’s most-recognised set of ESG principles. This is up from 49% in 2020.
- 48% of UK PE firms now report in detail on the ESG impact of their investments – unchanged from the previous year.
- 29% of UK PE firms now have a dedicated individual or team responsible for embedding ESG into the investment process – up from 25% in 2020.
Thousands of young people across Derbyshire and Nottinghamshire to benefit from Careers Hub expansion
Over 92,000 young people across Derby, Derbyshire, Nottingham and Nottinghamshire will benefit from new support to prepare them for the world of work.
The local Careers Hub, run by the national body for careers education, The Careers & Enterprise Company in partnership with the D2N2 Local Enterprise Partnership (LEP), is expanding to support 118 more schools across the region.
Operating since 2019, the Careers Hub will now support a total of 150 secondary schools and colleges in the region and their 118,000 students. The Hub brings together school staff, particularly those who lead on careers education, and provides them with additional support, resources and training for their schools to deliver “modern, 21st century careers education for every child, no matter their background or circumstance.”
The Careers Hub also links the region’s schools with employers, Further Education colleges and apprenticeship and in-work training providers, to make sure young people in the region know about the options available to them after they leave education, and the different jobs open to them.
Research carried out by The Careers & Enterprise Company shows that schools and colleges that are part of a Careers Hub deliver more support to students, have stronger links with local employers, offer more work experience opportunities and develop innovative ways of linking the curriculum with different jobs a student could go on to do.
Over the next year, the D2N2 Careers Hubs will work with member schools to ensure each has a fit for purpose strategic careers plan while delivering a range of experience events and programmes for young people to access, made possible by the backing of supporting employers.
Will Morlidge, Interim Chief Executive at D2N2 LEP, said: “This exciting initiative couldn’t be better timed. Bringing the worlds of work and education together is a vital part of our strategy to lead a green recovery from the impact of Covid-19.
“Our four Careers Hubs will play a key role in inspiring our future workforce about the amazing opportunities that lie ahead for them across the D2N2 area. It’s no secret that our young people have been disproportionally affected by the effects of Covid-19, so this is a real opportunity to level the playing field.
“It has been a real collaborative effort to bring these Careers Hubs to our region and we look forward to working with all our partners as we look to transform the careers landscape across the D2N2 area.”
Oli de Botton, the Chief Executive of The Careers & Enterprise Company, the national body for careers education in England, said: “Modern, 21st century careers education for every child, no matter their background or circumstance couldn’t be more important.
“Over the last few years schools and colleges across the country have been improving careers education, and helping more and more of their young people to take their best next step out of education and into the wider world.
“Careers Hubs have played an incredibly important role in making this happen. They are helping businesses, schools, apprenticeship providers and colleges to collaborate and work together as effectively as possible.
“I want to say a huge congratulations to the team in in Nottinghamshire, Derbyshire, Nottingham and Derby for making this happen, and for expanding their Careers Hub so it helps to improve the lives of many more young people in the area.”
Minister for Skills, Alex Burghart, said: “Careers Hubs ensure young people can see and know about the huge range of different jobs and career pathways on offer, and make decisions that work best for them and their futures.
“Good careers education is such a valuable asset, so it’s fantastic to see that the Careers Hub in Nottingham, Derby, Nottinghamshire and Derbyshire is expanding, extending the support to make sure more young people have the information they need to make the most of their talents.”
Mansfield District Council Chief Executive resigns
The Chief Executive of Mansfield District Council has announced she is stepping down from the role in the new year.
Hayley Barsby, who has worked at the council for nearly 22 years, is leaving on 9 January to spend more time with her family.
From starting her working life as an industrial engineer at Mansfield Shoe Group, Hayley moved to the council in 1999 starting as a clerical assistant.
Over the next two decades, she progressed through the ranks to Head of Housing and Director of Communities. She became the Interim Chief Executive in May 2017 before being appointed to the role on a permanent basis in January 2018.
Hayley has led the organisation through some of its most difficult years to date. She took over at a time when the council needed to make significant financial savings as a result of cuts in Government grants. COVID-19 has been a major focus for much of the last two years with the council’s main priorities during the height of the pandemic being on maintaining vital services and supporting the district’s most vulnerable residents.
A married mother of two children with disabilities, Hayley was born and went to school in Mansfield Woodhouse. She lives just outside Mansfield but considers it to be her home town.
She said: “I love Mansfield – both the people and the place and I hope I have made a difference. I will be sad to leave the organisation but I feel the time is right for someone else to take Mansfield to the next level.
“I have dedicated 22 years to Mansfield and the past few years have been challenging, particularly since the start of the pandemic. During my time as Chief Executive I have lost both my parents. My Dad passed away in April and I am still feeling the after-effects of having COVID-19 in the summer.
“Over the years I have made sacrifices for the job, and rightly so, but these life-changing events have made me reassess and I’m now making a conscious decision to put my family first.”
Speaking about her proudest achievements, Hayley said: “I’m most proud of the work we have done with Nottingham Trent University to bring students to Mansfield. It’s early days but I’m proud of the opportunities this is creating for local people to enter employment in some of our anchor institutions such as at Sherwood Forest Hospitals’ Trust.
“I’ve invested a lot of time into understanding the needs of our communities and working closely with partners, particularly around prevention rather than intervention. I’m proud of how we responded to COVID-19 and how we have provided our local communities with hope and support when they needed it, for example, through our food clubs and cultural services outreach work.
“I’m immensely proud of how we built our housing schemes at Poppy Fields and Town View to help meet the needs of over-55s and those who need extra support and care. In 2010, during my time as the Head of Housing, the council built its first new council homes for 30 years. Even then, climate change was at the forefront of our minds and the 43 energy efficient homes on the Bellamy Road estate have either ground source heat pumps or solar panels and water harvesting.
“With the Government funding we’ve secured and the publication of the Local Plan and draft town centre masterplan, we have an ambitious vision for how the town centre and wider district could be transformed in the coming years. I’ve created the right foundations for Mansfield and this is an exciting time for someone to take over and see these major projects through to fruition. I’ll be rallying behind Mansfield all the way.”
Executive Mayor Andy Abrahams said: “Having worked her way up from the bottom to the top, which is inspiring in itself, Hayley has been the font of all knowledge leading Team Mansfield.
“She has been a rock throughout the pandemic, forward-thinking, anticipating problems and ensuring everything is in place to keep our residents and her staff safe, and local businesses protected where possible.
“I will miss her sound and reliable advice and guidance but she has assembled a fantastic team that I have every confidence in to deliver our ambitious plans for the district. The new Chief Executive will be well placed to pick up the torch and carry on the great foundation Hayley has left and lead our residents to a brighter future.”
No decisions have been made on interim arrangements or the recruitment process.
Business Gateway provides SUBStantial support for start-ups interrupted by COVID
Good news for any Leicestershire business that started in 2018 or after, and had to stop trading due to COVID; a huge programme of no-cost business support has been funded by the Business Gateway to help get these businesses back on their feet and growing.
SUBS or Start-Up Business Support will provide training, mentoring, peer networks and digital workshops to over 150 businesses in Leicestershire.
Simon Weaver, senior project manager at the LLEP, said: “This programme is open to any business less than 36 months old, from any sector, based in Leicester or Leicestershire. The only other eligibility criterion is that you must be registered as a business with HMRC or Companies House. It is likely you will be a micro-business or small to medium enterprise.”
Four companies have won the contract to deliver the support programmes. NBV’s Beryl Pettit will be delivering the three-week programme ‘Gearing for Growth’. Stuart Hartley and his company Incrementa will deliver a six-week programme including mentoring, weekly workshops and 1-2-1 support. Sam Larke will lead the Leicester Start-Ups CIC programme to help solve the most critical business challenges. Finally, Ben Mainwaring and his team from So Very Creative will deliver SMARTUP, a digital marketing accelerator.
Mr Mainwaring said: “We’re very much looking forward to supporting Leicester businesses who had to stop trading because of COVID. We’re aiming to deliver really practical sessions that they can use to grow their businesses and leave COVID in the past.”
Simon Weaver concluded: “We’re advising any business that wants to take up this offer to speak to one of our Business Advisers first. There is quite a range of support packages and a Business Adviser can help you decide which one is right for you. Just call the Business Gateway on 0116 366 8487 or there’s more information on our website: https://bit.ly/2YX18zg.”
M-EC welcomes five new staff members
M-EC, the development technical consultants, has recruited five new members of staff.
The company is experiencing strong demand for its services as the construction industry and the economy continues to pick up following the pandemic. The new appointments, which will all be based at the firm’s Leicestershire head office, will enable M-EC to further meet client demand.
Joining the firm are:
Zoe Jordan: assistant flood risk engineer
Simran Matharu: assistant transport planner
Isobel Jones-Walters: land surveyor
Natasha Kearl: geo environmental engineer
Adam Walker: acoustic consultant
As part of M-EC’s commitment to developing a diverse workplace and training and developing its own staff, two of the new appointments, Zoe Jordan and Simran Matharu are recent graduates and four are women, which is unusual in a traditionally male dominated sector.
Zoe and Simran are taking their first steps in the engineering industry after leaving university. Isobel Jones-Walters, Natasha Kearl and Adam Walker join M-EC with a wealth of engineering experience so can hit the ground running and immediately get started on client projects.
Alex Bennett, director of M-EC, says: “We are extremely pleased to be expanding our team with these five new appointments. Each individual is bringing a specific set of expertise to the company and I am looking forward to seeing them grow within M-EC and positively impact our client base.
“It’s great to see increased interest in careers in engineering and development consultancy from women. It’s certainly a growing trend across the country and I know more women joining the industry will bring huge benefits, both to individual firms and the sector as a whole. M-EC is proud to support a diverse workforce as an equal opportunities employer.”
APPEX programme to help Advanced Manufacturers reach new heights
The Business Gateway is demonstrating its support for Leicestershire’s key sectors by creating a programme for innovative Advanced Manufacturing companies.
Called APPEX, the course will help participating companies achieve Advanced Manufacturing Product and Process Excellence to help boost turnover.
The programme is worth at least £5,000 but will be free of charge to the ten businesses that qualify to take part.
APPEX helps businesses get a detailed understanding of their business capabilities, leadership team priorities and how to select, plan and execute a focussed improvement project with external support. It also gives them the chance to see and learn best practices from other non-competing Advanced Manufacturers on the programme.
APPEX is available to manufacturers in several growing and innovative sectors including aerospace, pharmaceuticals, medical, transportation, construction equipment, low carbon, and power generation among others.
To qualify to take part, companies need to have been trading for more than three years, have more than 50 employees, have an annual turnover of more than £4m and have a functional leadership team structure. They should also be manufacturing a product that is new to market or using innovative manufacturing processes.
Dr Chris Owen, MD of Owen & Partners Ltd, who will be delivering the programme, said: “We’ve put together a really practical programme of support for Leicestershire’s Advanced Manufacturers.
“Companies will learn how to select and drive focussed improvement projects to boost their competitive positioning and productivity and win more orders. As part of the very first cohort of its kind, participating leaders will also become pioneers in building a community of innovative advanced manufacturing leaders to further boost the sector in Leicestershire.”
Rachel York, Business Gateway manager, added: “We’re delighted to be able to offer such high-quality support to Leicestershire’s Advanced Manufacturing sector, particularly the companies who are embracing innovation because that’s an essential element for growth. Hopefully the companies that participate will spread the word across the sector and we will see more companies taking up our offer.”
Any company that meets the criteria should contact a Business Adviser on 0116 366 8487 to discuss applying for the programme.
Plans revealed for new business park in Leicestershire
Brackley Property Developments (BPD) has revealed plans to develop a new business park in Leicestershire.
The commercial developer has submitted a reserved matters application to Harborough District Council for the first phase of development at Elm Business Park in Broughton Astley.
The scheme proposes the development of industrial and warehouse units ranging in size from approximately 8,000 – 50,000 sq ft on a 17-acre site adjacent to Broughton Astley Golf Complex.
Units will be available on a design and build basis, which will provide occupiers with the opportunity to tailor the size and specification to their requirements. The largest building which can be accommodated is c.120,000 sq ft, subject to layout.
Elm Business Park lies on a prominent site off the B4114 Coventry Road, within six miles of the M1/M69 interchange. Outline planning consent was granted in December 2020 for a mix of uses including industrial, office, retail and leisure.
Stephen Pedrick-Moyle, Managing Director of BPD, said: “We are expecting planning approval for phase one towards the end of the year but we are already engaging with occupiers to discuss potential requirements for the site. This is with a view to starting construction during the first quarter of 2022.”
Approval for 275-bed student scheme at Argos site
Plans for a new student accommodation scheme and commercial space at Lombard House in Nottingham have been approved by the city council.
The site, at 37-41 Lower Parliament Street, is currently occupied by Argos.
Bmor Ltd are behind the 275-bed student accommodation development which would provide a mix of clusters and studios, including 23 studios which are included in the existing Argos building.
The proposals involve the demolition of the warehouse section of the Argos for a new development. The scheme would be up to 10 storeys.
Acquisitive firm snaps up majority stake in Notts furniture company
Storskogen, the Swedish firm which acquires and manages well-managed and profitable small and medium-sized enterprises, has snapped up a qualified majority stake in Julian Bowen Ltd.
Julian Bowen is a Nottinghamshire-based e-commerce design and fulfilment specialist for home furniture, with annual revenue and EBIT of approximately £34.9m and £6.9m, respectively. Julian Bowen is Storskogen’s second acquisition in the UK and represents a major milestone in the group’s international expansion.
Established in 1987, online retailers now comprise about 70 per cent of Julian Bowen’s sales, while the company offers a flexible fulfilment model to suit its wide range of customers that includes e-commerce, traditional bricks and mortar retailers, and contract furniture providers.
Amazon, Wayfair, Dunelm and DFS can be found among Julian Bowens customer base. Julian Bowen has also amassed a wide range of international suppliers.
Julian Bowen has a workforce of around 100 employees, while Managing Director Emmett Lenaghan and buying director Mark Pickup will remain in their existing senior roles within the company.
“We are delighted that Storskogen have chosen to partner with us. Their support and expertise will be highly beneficial as we continue to deliver our ambitious plans for the company,” said Emmett Lenaghan, Managing Director of Julian Bowen.
Julian Bowen will join the business area Trade headed by Christer Hansson.
“Throughout our discussions, we have been immensely impressed with Julian Bowen, in particular their extensive e-commerce operations and capacity to innovate in partnership with customers and suppliers. Julian Bowen is an ideal partner for Storskogen, and we will continue to support the expansion of their flexible and dynamic customer offering,” said Christer Hansson, EVP and Head of Business Area, Trade.
Storskogen UK CEO Philip Lofgren believes the UK has an integral role to play in Storskogen’s international expansion plans, and Julian Bowen represents another step towards realising these objectives.
“Julian Bowen represents our second investment in the UK following our acquisition of SGS Engineering in Q2 2021. Like SGS, Julian Bowen is exceptionally well positioned to benefit from the ongoing migration from bricks and mortar towards digital retail channels.
“We have extensive expertise in the B2B and B2C e-commerce space and are excited to partner with the existing Julian Bowen management team to develop these capabilities further,” said Philip Lofgren, CEO of Storskogen UK.
National lighting and security provider expands into Derby
National lighting and security providers, QVIS, have taken occupation of Unit 11 Dunstall Park.
The business has moved into the 4,500 sq ft unit on a new 10 year lease as part of their planned UK wide expansion.
Dunstall Park is a new development of workshop and warehouse units being undertaken by Derby-based Ivygrove Developments. The 7-acre scheme will provide units from 2,000 sq ft to 6,000 sq ft.
Matthew Holliday, UK project manager, QVIS, said: “We are delighted to be opening our 6th Technology Showroom in the fantastic City of Derby. This continues our rapid growth and we hope to open 14 more technology centres within the next 24 months and are glad to be creating new jobs in each of the areas plus providing the Security Trade with State-of-the-Art Technology, advice and training inside our Showrooms.”
Chris Keogh, associate director, Salloway Property Consultants, said: “The addition of QVIS to the Dunstall Park development fits perfectly within the scheme which will eventually comprise a mixture of Trade Counter and Industrial occupiers once completed. We are now releasing the final two phases of the development where units are available on a freehold or leasehold basis with sizes ranging from 2,000 sq ft up to 5,700 sq ft.”
Take advantage of face to face networking at the East Midlands Property & Business Expo
After almost two years of no exhibitions, the East Midlands Property & Business Expo, for which Business Link is a proud partner, will return on Friday 12 November 2021.
Taking place at the De Vere East Midlands Conference Centre, Nottingham, delegates can pre-register for free entry to the event, which has everything you need for a great day of networking and business generation.
An established event of over 20 years, the show is well targeted and aimed at the construction, property, business, investment, finance, professional services and related B2B markets.
The exhibition will open to attendees at 9am, with a seminar taking place between 10:30am and noon. A special networking lunch (for which tickets can be purchased here) will then take place between 12:15pm and 2:15pm, and the exhibition will close at 3:30pm.
For more information on exhibiting at the event click here.
To register to attend the event for free click here.
To secure tickets for the networking lunch click here.
Exhibitors include A+G Architects, Allica Bank, Aspbury Planning, Bassetlaw District Council, Bowmer + Kirkland, BSP Consulting, Business Link Magazine, Delta Simons, East Midlands Chamber, Empire Finance, Galliford Try, Invest East Midlands, Invest Newark & Sherwood, J Tomlinson, Lindum, Nottingham Trent University, Pick Everard, Pygott & Crone, Rigby & Co, Severn Trent, Stepnell, Wildgoose, YMD Boon, and more.
Supply chain issues and rising costs drive profit warnings of listed Midlands firms back to pre-pandemic levels
The number of profit warnings issued by UK listed businesses based in the Midlands rose marginally in the third quarter of the year, to six (from five in Q2).
Nationally, profit warnings rose to 51 in the third quarter of the year, up 19 from Q2 2021, as threats to growth and profitability increased, according to EY-Parthenon’s latest Profit Warnings report.
The report reveals that whilst a post-pandemic demand surge boosted sales for many businesses over the summer months, it has also exposed vulnerabilities in supply chains and energy and labour markets, with 43% citing these pressures as the reason for their profits warning.
Most warnings in the region came from Industrial FTSE sectors and a third (33%) of Midlands-based companies issuing a warning said that supply chain issues were hampering their business.
Midlands listed business issued the joint second highest number of profit warnings, along with the South East (6) although significantly behind London (27).
Nearly two-fifths (39%) of UK companies warning were also affected by the fallout of COVID-19 – down from 72% in the previous quarter. Whilst the direct impact of the pandemic is waning, the increase in supply and cost pressures, and the end of government furlough support, will add to the challenge – especially for sectors where demand hasn’t yet returned to pre-COVID-19 levels.
Businesses with annual turnover of under £100m issued 50% of the third quarter’s profit warnings and almost 60% of the warnings were from AIM listed companies, typically small to mid-market companies which are less resilient to economic headwinds. New headwinds, including the impact of the steep rise in energy costs on a wide range of sectors, has also led to a high proportion of new companies warning for the first time.
Dan Hurd, EY Parthenon UK&I Turnaround and Restructuring Leader in the Midlands, said: “Whilst it’s encouraging that profit warnings among Midlands-based businesses remain low, evidence from the last few years has shown a trend for warnings to dip during Q3.
“The last two years has been anything but normal trading for businesses and there is nothing straightforward about this recovery. Whilst UK profit warning levels remained low during the summer they jumped dramatically back to above-average levels in September, as supply chain and cost stresses cascaded through the economy.
“Over the last 18 months, government support has mitigated the impact of massive changes in the UK economy. These measures have now come to an end and the remainder of the year will reveal those surviving on life support, as the government removes most, but not all of its props.”
Supply challenges dominate
The report revealed that profit warnings are rising in consumer-facing sectors as the impact of rising energy prices, supply bottlenecks and labour shortages spread across the economy. Consumer Discretionary FTSE sectors issued the most warnings in Q3 2021 with 11, followed by Industrials with 10.
The Consumer Staples sector – including food, drink, and household product producers – issued six warnings, its highest level of third-quarter profit warnings since 2014, with all but one of these six warnings blaming increasing costs or supply chain issues.
Meanwhile, supply chain issues remain acute in many FTSE Industrial sectors compounded by delayed or cancelled contracts, as companies suspended or limit production in response to the direct or knock-on impacts of rising costs or the lack of goods and labour.
Rising energy prices have also generated considerable stress in the retail energy supply sector, with EY expecting the number of UK suppliers to consolidate to 8-10, from 70 at the start of 2021. There is also a wider challenge in the transition to Net Zero that is also playing out in this and other sectors – including oilfield services and automotive – as companies move away from carbon intensive activities.
Dan Hurd said: “As this recovery develops, we expect the gaps to widen between and within sectors, depending on companies pricing power, their agility and capacity to adapt and capitalise on changing behaviours, and their ability to build a sustainable long-term value story.”
A sustainable recovery?
The research also explores how the trade-off between value and values is narrowing. Changing consumer behaviours, regulation and Environmental, Social and Governance (ESG) measurements are now all moving into the capital markets mainstream and companies will increasingly need to demonstrate their commitment to creating long-term value.
Adding to the challenge for companies is the lack of standardisation and regulation of ESG measurements. But, with the growth in green indices, green bonds, green investment funds and increasing fund manager differentiation, EY anticipates more consistent standards and scrutiny to emerge.
This could effectively lead to companies issuing ‘purpose warnings’ in the future – for instance, if companies miss targets and their price of debt increases, or they miss out on contracts as a result.
Joanne Robinson, EY-Parthenon Partner, Turnaround and Restructuring Strategy, said: “Just as we’re seeing increased investor reaction to profit warnings in the wake of greater economic peril, we’re also seeing investors react to greater climate peril. There’s no doubt that companies face a potentially difficult transition period where they’ll need to manage and time new investments, whilst also maintaining some legacy businesses.”
She added: “Companies need to strengthen their social licence to attract new customers and talent. The sustainability challenge will provide the impetus to innovate new products, services and business models that will be more valuable and resilient in the long-term. But the journey – as we can see in the UK energy market – won’t be easy.”
Siemens virtual work experience breaks down barriers to STEM careers for East Midlands students
Students across the East Midlands are among hundreds to enroll to a virtual work experience programme launched by Siemens during the pandemic.
The free programme, which combines live webinars, videos, and activities, has seen 1,164 young people log-in and learn about how engineering and technology builds a more sustainable future.
This includes young people living in Derbyshire, Leicestershire, Lincolnshire, Northamptonshire, and Nottinghamshire.*
Now a third round of virtual work experience to run from October 26 to November 5 will give more young people an opportunity to explore and see what a future career at Siemens looks like. The deadline for applications is Wednesday, October 20.
Siemens virtual work experience is breaking down barriers to STEM careers. Moving to online delivery from in-person placements has increased the number of students Siemens can offer work experience to, has increased diversity and inclusion, and helped young people overcome limitations and barriers such as geography, mobility, financial constraints, and inflexibility due to school or employer timings.
For example, while ethnic minorities are broadly underrepresented in STEM fields, more than half (55%) of students participating in Siemens’ virtual work experience programme were from BAME backgrounds. Meanwhile, the programme has contributed to efforts to reduce the gender gap in STEM, by inspiring the 40% of female participants.
What is more, Siemens has been able to overcome geographical barriers, showcasing STEM as a career path to hundreds of 14 to 18-year-olds in every corner of the UK, rather than to just those living near Siemens sites.
Brenda Yearsley, Education Development Manager, Siemens GB&I said: “Offering free, accessible work experience for students is vital to increase diversity and inclusion, inspire a career in science, technology, engineering, and mathematics (STEM), and showcase Siemens as a career path.
“Moving to an online delivery has helped us continue to offer this valuable experience to young people, regardless of geographical location, with some truly remarkable outcomes when it comes to gender and ethnic diversity, something Siemens is passionate about addressing.
“While Siemens’ sites begin to open up their doors again to in-person work experience opportunities, the chance to continue to give more school and college students invaluable practical skills, industry experience, and a head start for their careers is increasingly important to the post-pandemic recovery.”
The two-week programme, which is delivered on careers platform Springpod, involves around 10 hours of activities, pre-recorded videos, quizzes and live webinars.
Modules include: an overview of Siemens, its core values and six lines of business; an introduction to the field of engineering, the various disciplines, sustainability in engineering and the design process; an introduction to the world of technology, the different pathways within the sector and what roles in tech involve; an introduction to the other business services such as sustainability, legal, marketing and finance; early careers opportunities at Siemens such as apprenticeship, internship and graduate schemes; an introduction to employability skills, how to build a CV and how to apply for a role at Siemens.
Once complete, students earn a certificate which can be used for a CV and Personal Statement.
Air conditioning and heating business expands in Mansfield
Oceanair UK Limited, an award-winning distributor of air conditioning and heating products, has expanded on Millennium Business Park in Mansfield.
Their existing air conditioning business has seen growth in the domestic air conditioning market and a massive growth in air to water heat pumps ahead of boilers being banned in new builds from 2025.
The industrial unit comprises 6,597ft² of warehouse space with 6 metre eaves, being ideal for Oceanair UK’s storage requirement due to their growth.
Anthony Barrowcliffe of FHP Property Consultants said: “Unit 3C Isabella Court is personally my ninth completed industrial transaction in the Mansfield area this year with a further three properties under offer. The Mansfield area is a fantastic industrial market with excellent access to the M1 and huge employment opportunities.
“The unit in its isolation was a great letting for both landlord and tenant and it was a pleasure to work with Tony Evanson, Managing Director of Oceanair UK Limited, who was honest, straightforward and did everything promised to a high professional level.”
Tony Evanson, Managing Director of Oceanair UK Limited, said: “As gas boilers are being phased out in favour of air source heat pumps it was imperative we increased our storage capability to keep up with demand, Anthony worked closely with us and expedited the whole transaction in a very timely manner.”
4 in 10 business leaders say regulation has a negative impact on their organisation
The Institute of Directors (IoD) has published data showing that the negative impact of regulation is only exceeded by that of the Coronavirus pandemic and employment taxes, and has called for the Government to do a better job in shaping a more business-friendly regulatory framework.
In a recent IoD survey of over 600 directors, 40% stated that compliance with Government regulation was having a negative impact on their organisation, compared to 53% for the Coronavirus outbreak, 41% for employment taxes, 40% for UK economic conditions and 39% for skills shortages/employee skills gaps.
In the IoD’s response to the BEIS consultation, ‘Reforming the Framework for Better Regulation’, Dr Roger Barker, director of policy, said: “In order for business to play a meaningful role in building back better, it is essential for the Government to do a better job in shaping a more business-friendly regulatory framework.
“New business regulation must be more critically scrutinised in order to ensure that it is effective, proportionate and free from unintended consequences.
“The process would be more robust if it incorporated a more central role for an independent scrutiny body, like the Regulatory Policy Committee (RPC), at an earlier stage of the policy making process.
“Similarly, we would like to see the government’s own impact assessments of proposed regulatory changes always published at the consultation stage so that they can be taken into account before the legislation is introduced into Parliament.
“As well as assessing individual regulatory proposals, a broader view of the cumulative impact of regulation is also required. This broader perspective should be developed in the context of an overarching objective to reduce unnecessary regulatory burdens on business.
“The previously employed offsetting approach of ‘One In, Two Out’ has not been particularly effective in controlling the aggregate regulatory burden on business. It is not the number of regulations that matters to business, but rather their effectiveness and impact on business activity.”
Light Science Technologies joins AIM
Light Science Technologies Holdings plc, the controlled environment agriculture (CEA) technology and contract electronics manufacturing (CEM) group, has floated on AIM.
In a successful placing the Derbyshire-headquartered company has raised gross proceeds of £5.2. million and joins with a market capitalisation of approximately £17.4 million.
Simon Deacon, CEO of Light Science Technologies Holdings plc, said: “We are delighted to be joining AIM, and welcome the support shown by our investors in this tremendous milestone for the company.
“We look forward to delivering shareholder value as we take advantage of the substantial CEA pipeline and bolster the capacity of our CEM division.”
The net proceeds of the placing are intended to be used to accelerate the group’s growth, primarily through its CEA operations, by expanding its UK scientific laboratory grow room, enhancing marketing campaigns, product design, tooling and development, geographic expansion into the Netherlands and for ongoing working capital purposes.
