R3 Midlands urges cashflow caution as latest government statistics show surge in insolvencies

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R3 Midlands urges cashflow caution as latest government statistics show surge in insolvencies

The current surge in insolvent companies across England and Wales is likely to impact heavily on the Midlands economy over coming months, leading to further substantial rises in corporate insolvency levels across the region for 2024.

This is according to the Midlands branch of insolvency and restructuring body R3 and follows new statistics published by the Insolvency Service which highlight an 18.5% month-on-month increase in corporate insolvencies in February 2024, jumping from 1,774 to 2,102.

Last month’s number is also 16.7% higher than February 2023’s figure of 1,801, and 38.5% above February 2022’s total of 1,518. Compared to the pre-pandemic statistic of 1,213 in February 2019, February 2024 shows an increase of 73.3%.

R3 Midlands chair Stephen Rome, a partner at Penningtons Manches Cooper in the region, said: “These figures are the highest we’ve seen for February in more than four years, which is a sign that more and more businesses are at a point where a sale or a liquidation may be their only option.

“Local businesses are still suffering the after-effects of last year’s economic turbulence, with rising fuel, energy and funding costs and cautious consumer spending continuing to take their toll on the bottom line.

“While there is still some optimism among the region’s firms about what 2024 has in store, the economic conditions remain a key area of concern for many. Unless there is some improvement, we could see several more companies turning to an insolvency process to help resolve their financial issues.

“Directors and management teams need to remain vigilant and take action as soon as they spot any signs that the business could be financially distressed. Keeping that careful eye on cashflow, and acting immediately as soon as red flags are raised, gives more time for decision making and more potential options for resolving the situation.”

Leicestershire Charity Furnley House Foundation Summer Ball returns

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Leicestershire Charity Furnley House Foundation Summer Ball returns
The Furnley House Foundation Summer Ball returns on May 6th. Held at Winstanley House, the evening aims to raise a significant amount for three local charities, with the 2023 ball raising over £42,000 for Leicestershire charities. The annual ball was born out of Financial Adviser and Mortgage Brokers Furnley House’s ambition to create opportunities and improve and save lives in their local community. The dedicated Furnley House Foundation holds two flagship events throughout the year, The Furnley House Foundation Summer Ball and The Leicestershire Community Champions Awards, along with other fundraising opportunities to help bring the community together and raise money. This year, all funds raised will be dedicated to supporting three charities that were chosen during the 2023 Leicestershire Community Champions Awards: Charity of the Year winners, Steps Conductive Education Centre, and finalists Focus Charity and Heartwize. Steps Conductive Education Centre is a registered charity supporting families with children who have special educational needs. Focus Charity supports vulnerable young people, many of whom are in a mental health crisis. Heartwize delivers basic life support training including CPR using resuscitation dolls as well as how to use a defibrillator. Simon Winfield (Chairman of the Furnley House Foundation and Managing Director of Red Monkey Play) expressed his enthusiasm, stating: “We would love to see as many people as possible at this year’s Summer Ball. Our hope is that thousands of pounds are raised, and we can make a real difference to the local community. “Previous Balls have been fantastic evenings and have received lots of support, helping us to achieve our mission of improving and saving lives in Leicester and Leicestershire.” The evening is hosted by comedian Patrick Monahan and will feature a three course meal, live music, and the chance to bid on some incredible items, both in live and silent auctions. Last year, tickets sold out so be sure to get your tickets early.

Netherfield-based educational resources supplier acquired by leader in European B2B ecommerce

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Netherfield-based educational resources supplier acquired by leader in European B2B ecommerce
Netherfield-based educational resources supplier Findel has been acquired by Paris-headquartered leader in European B2B ecommerce Manutan. Manutan, which has a specialism in educational supplies, employs 2,200 people and operates 28 subsidiaries across 17 European countries, including the UK. The business offers in excess of 800,000 products to its customers and has a turnover of €946m. Findel’s origins as an educational resources supplier can be traced back to 1817. Today, the company’s brands and websites offer more than 32,000 products to educators and parents based in the UK and overseas with the business exporting to 130 countries. In addition to its distribution centre and offices in Netherfield, the company has its headquarters in Hyde, Greater Manchester, and employs around 300 people in total. The company’s brands comprise Hope, GLS, Davies Sports, Philip Harris and EuHu. The company’s current leadership team undertook a management buy out (MBO) of Findel from Studio Retail Group in April 2021. The MBO was supported by Leeds-headquartered private equity firm Endless. Commenting on the acquisition, Findel Chief Executive, Chris Mahady, said: “Over the past three years, Findel has undergone a business transformation thanks to the incredible work and dedication of our people and the support of Endless. “Our acquisition by Manutan marks the end of that journey and the beginning of an even more exciting one. Like Findel, at the heart of Manutan are values and a positive culture that guides everything they do along with an unwavering commitment to sustainability. “This gives Findel a long-term sustainable home for the future which ultimately solidifies our position and will help us to continue to develop an even stronger customer proposition. “In addition, Manutan’s leadership believes in fostering learning environments that inspire growth and innovation, so we are perfectly aligned. “By joining forces, we will leverage our combined strengths in the UK and international educational supplies sectors to achieve even greater success together.” All of Findel’s people have been retained following the acquisition and all commercial arrangements with customers and suppliers remain unchanged. Owner and chairman of Manutan Group, Xavier Guichard, said: “Following on from our strong growth in recent years, we’re delighted to be acquiring Findel, whose culture, focus on people, performance and shared values, is totally aligned with our own principles. “We also share the same business model, which combines the strengths of digital technology (our e-commerce solutions) with a strong focus on sustainability, providing service excellence to customers and suppliers.” Findel was advised on the acquisition by Clearwater and Walker Morris LLP and Manutan was advised by Cripps LLP (legal) and PWC (finance and tax). All values relating to the acquisition are undisclosed.

Nicholas Associates Group steps up to support local communities with ’50 for £50 Challenge’

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Nicholas Associates Group steps up to support local communities with ’50 for £50 Challenge’

Nicholas Associates Group (NAG), a provider of workforce solutions, has announced its recent initiative to support local community food banks through the ’50 for £50 Challenge’.

Throughout February, the company challenged its teams across the UK to walk 50 miles in return for a donation from NAG to enable the team to buy £50 of groceries for a local food bank. Sixteen teams took part, collectively raising £800.

The foods banks that benefited included the Archer Project in Sheffield and The Trussel Trust food banks in Scunthorpe, Coventry, Long Eaton & Sawley in Nottingham.

NAG Group CEO, Paul Smith said: “Community support has always been a core value at Nicholas Associates Group, and we are constantly seeking innovative ways to give back.”

He continued: “The ’50 for £50 Challenge’ provided an excellent opportunity for our teams to come together, not only to support local food banks but also to prioritise their own wellness by getting outdoors, engaging in physical activity, and fostering meaningful connections with their colleagues.”

The challenge received an overwhelmingly positive response from employees across the company. Teams enthusiastically embraced the opportunity to make a difference in their communities while also prioritising their own well-being.

Paul emphasised: “This is just the beginning of our commitment to community engagement. We are excited to introduce our latest initiative, the ‘March on in March’ challenge.

“Building on the success of our ’50 for £50′ challenge, teams will continue to walk for a cause. For every 10 miles exceeded beyond the initial 50, an additional £10 will be donated to support local communities. We’re eager to see the impact we can make together.”

The East Midlands Bricks Awards are back for 2024!

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The East Midlands Bricks Awards are back for 2024!
After another successful event in 2023, Business Link Magazine is gearing up for the East Midlands Bricks Awards 2024. Shining a light on the region’s property and construction industry, while offering an opportunity to network with business leaders, this year’s glittering ceremony will take place on Thursday 3 October at the Trent Bridge Cricket Ground in Nottingham. The East Midlands Bricks Awards is an independent awards and publicity programme recognising development projects and people in commercial and public building across the region – from office, industrial and residential schemes, through to community projects such as leisure schemes and schools. Supported each year by a roster of highly-respected sponsors, the event is welcoming interest from businesses who would like to back a category at the event, supporting the East Midlands’ property sector while promoting their own quality work and brand. With a limited number of categories remaining, please contact Angie Cooper at a.cooper@blmgroup.co.uk to learn more about sponsoring the event. For those interested in entering the prestigious awards, which have been a highlight in the business calendar since 2015, further information will be released upon the opening of nominations in due course.

Steel-signing marks progress at Derby’s new entertainment and conference venue

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Steel-signing marks progress at Derby’s new entertainment and conference venue
A special ceremony has taken place to mark the progress made on the construction of Derby’s new £45.8m entertainment and conference venue. Senior figures from Derby City Council and project partners visited the Becketwell site to ceremoniously sign one of the development’s steel beams. The event celebrated completion of the external structure and roof of the building. Councillor Nadine Peatfield, Cabinet Member for City Centre, Regeneration, Culture and Tourism at Derby City Council was first to sign the steel and said: “I’m thrilled to see the progress being made and have this unique opportunity to add our own individual mark in the legacy of this landmark building. “This venue is a key part of our journey to transform Derby into a vibrant city centre with culture at its heart. It’s really exciting to see the structure go up and the space take shape at such pace.” The main contractors, Heage-based Bowmer + Kirkland, took over the site in June 2023 and by December the steelwork, alongside the rows of concrete steps which will create the tiered seating area, had been put in place. The roof is now ready for a concrete pour, which will be followed by a layer of insulation, plasterboard and quilting to the underside to ensure the building is soundproofed. Gus Kedzior, Regional Commercial Director for Bowmer + Kirkland said: “Today is a great day for all the project team but also for Derby and the wider community. Completion of the steel frame now means that we can see the shape and size of the venue and in less than a year we will be handing the project over to Derby City Council.” The finished building will contain 1,200 tonnes of steel. Heavy machinery helped the 10 operatives responsible for fixing the steel into place. The heaviest single piece weighs 3.5 tonnes and the longest single span of steel is 12.9 metres. Built on the site of the former Pink Coconut nightclub on Colyear Street, Laurie House offices, multi-storey car park and Padley House in Becket Street, the new venue is set to significantly enhance the city’s cultural offering. Boasting a larger and more flexible space than the city centre has had in the past, the venue will complement the activities of Derby Arena to provide the best possible events programme for Derby and the wider region. It will be a scalable space capable of staging a range of concerts, stand-up comedy, family shows, musical theatre, exhibitions, and business events. The venue is set to host over 200 cultural and commercial events each year and expected to attract an additional 250,000 visitors to Derby. It is also expected to create over 200 new local jobs and provide the impetus to kick-start further investment in surrounding areas of the city centre. The venue will be owned by Derby City Council and leased to and operated by ASM Global, the venue management and services company, and producer of live experiences, whose UK portfolio includes OVO Arena Wembley, AO Arena (Manchester), first direct Arena (Leeds) and Olympia and OVO Hydro (Glasgow). Construction work is progressing to plan with practical completion and handover scheduled for the first quarter of 2025. The exciting new 3,500 capacity entertainment and conference venue forms the second phase of the £200m Becketwell regeneration scheme, the most significant urban rejuvenation project for more than three decades. Phase one includes the city’s first purpose-built Build to Rent scheme. The Condor is owned and operated by Grainger plc and now almost fully let. The adjacent Springwell Square, a new public green space for the city, officially opened in September 2023. The Becketwell scheme is being developed by St James Securities, a privately-owned Leeds-based property developer, with a track record of delivering successful major regeneration schemes. Paul Morris, Development Director at St James Securities, said: “The steel-signing ceremony is a significant milestone in the construction of the long-awaited new entertainment and conference venue for the city. “Despite the terrible weather conditions over the past few months, construction has continued apace, and the building is really taking shape now. “We look forward to celebrating the completion of the arena at a topping-out ceremony later this year.” Future planned phases of the Becketwell scheme include potential for a hotel, and purpose-built student residential.

Midlands PE-backed mid-market businesses saw average 51% EBITDA growth over three years

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Midlands PE-backed mid-market businesses saw average 51% EBITDA growth over three years
Midlands private equity-backed businesses experienced average EBITDA* growth of 51% over the latest three-year period, underlining the positive impact that the sector is having on the region’s economy, according to a new report. The inaugural Private Equity Value Report from Real Deals, developed in association with BDO, found that the region performed slightly below the UK average. Nationally, growing PE portfolio companies achieved an average EBITDA increase of 58.9% over the same three-year period while average revenues grew by 22.2%. Accountancy and business advisory firm BDO commissioned the research to understand the impact that private equity investment is having on the growth of the regional economy. The data was drawn from the most recent three years of accounts filed with Companies House. The fastest growing 25 businesses in the Midlands saw average EBITDA growth of an impressive 90% over three years and included a range of businesses from the East and West Midlands, such as: Kindred Education Limited in Northampton, Nottingham-based Care Fertility Group and M&J Evans Construction in Walsall. The top 25 showcased a range of sectors from technology to travel and manufacturing and the most featured investors in the region were Bridgepoint, CBPE Capital and BGF. Steve Round, partner at BDO LLP, said: “Despite the challenges of the past three years, this research demonstrates PE-backed businesses are a resilient and dynamic segment of the region’s economy. “There’s often a focus on the level of deal activity and headlines around exits but we should also celebrate the value created by investors and management teams working hard to deliver against their growth plans.” The fastest-growing PE-backed businesses in the region created an additional 878 jobs between 2020 and 2022. BDO’s latest bi-monthly Economic Engine survey of 500 mid-sized businesses revealed that 37% of Midlands businesses are either currently looking for private equity investment or will do so in the next three months. Whereas, 48% shared they wouldn’t consider PE-backing with the biggest barriers cited as not knowing how to engage the right adviser or business owners favouring a trade sale with no requirement to be involved post-deal. Steve added: “Private equity investment can be a real force for good as this growth also fuels innovation and job creation in the Midlands. Looking ahead, there’s a significant opportunity for the region which is home to so many high-quality businesses. “Investors have the capital and appetite to back more entrepreneurs to scale up and we have the experience to support business owners and PE houses on that journey.” *EBITDA stands for earnings before interest, taxes, depreciation and amortisation.

Inflation comes in lower than expected for February

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Inflation comes in lower than expected for February
Inflation came in lower than expected for February, heading back in the right direction. Annualised inflation stood at 3.4% in February, measured by the consumer prices index (CPI), down from the 4% reported in January and below the 3.5% forecast. The largest downward contributions to the monthly change came from food, and restaurants and cafes, while the largest upward contributions came from housing and household services, and motor fuels. Meanwhile, core inflation, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, was 4.5% in the 12 months to February 2024, declining from 5.1% in January.

Alpesh Paleja, Lead Economist, CBI, said: “Inflation is heading in the right direction, and should fall below the Bank of England’s 2% target sometime in the Spring. However, the path beyond this is likely to be bumpy: shifting base effects mean that it will likely rise back above 2% later in the year, before settling down more sustainably.

“While the Bank of England are likely to look through these ups and downs, they will still want to see more definitive movement on domestic price pressures before committing to cutting interest rates.”

Revenue and profits slip at Eurocell

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Revenue and profits slip at Eurocell
Eurocell plc, the manufacturer, distributor and recycler of window, door and roofline PVC products, has seen a slip in its revenue and pre-tax profits. According to preliminary results for the year ended 31 December 2023, profit before tax stood at £11.7m, down from £26.2m in 2022. This was, however, in line with expectations. Revenue, meanwhile, declined from £381.2m in 2022 to £364.5m. This came against a challenging backdrop, as noted by Eurocell, with a weak repair, maintenance and improvement (RMI) market and particularly severe decline in new build housing.

Darren Waters, Chief Executive of Eurocell plc, said: “The trends reported at our half year results in September continued for the remainder of 2023, with some further modest weakening in our key markets. Against this challenging backdrop, we are pleased to report profits for the year in line with expectations and strong cash flow generation.

“We took early and decisive action on costs in response to lower volumes and have continued to focus on efficient working capital management, driving a good cash flow performance. Whilst the near-term outlook for our markets remains challenging, these actions leave us well placed to benefit from a market recovery when it comes.

“Our review of strategy is now complete and I am very pleased with the outcome. Looking ahead, we have identified a clear pathway to building a £500m revenue business, generating a 10% operating margin over a five-year period, built around four pillars; Customer Growth, Business Effectiveness, People First and ESG Leadership.

“This is an ambitious vision, but when we aggregate the growth opportunities, and apply a degree of sensitivity, we believe it is an achievable target, with the potential to create significant shareholder value.”

Over 160 new energy-efficient homes to be built in Bolsover

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Over 160 new energy-efficient homes to be built in Bolsover
Chesterfield housebuilder, Woodall Homes has secured a resolution to grant permission at Bolsover District’s Planning Committee for one of the firm’s biggest developments to date. The development lies on the countryside edge of Bolsover and will comprise 161 energy-efficient properties, with a mixture of one to five-bedroom homes, including bungalows. Accessed by a new tree-lined link road connecting Shuttlewood Road and Oxcroft Lane, the scheme will feature broad swathes of attractive, accessible open spaces, with multifunctional green infrastructure, landscape corridors, wildlife-friendly habitats and a local play area for community use, along with pedestrian and cycle connections linking to Bolsover’s amenities. Darren Abbott, Planning Director at Woodall Homes, said: “We are absolutely delighted to have secured a successful resolution to grant full planning permission for our new site in Bolsover. “This will be one of our largest developments and will make a significant contribution to achieving our targeted growth as a business in the coming years. It will cater for a wide range of needs within the area, providing accommodation perfect for couples, families and buyers who are ready to downsize.”
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