East Midlands business activity growth quickens to fastest since April 2022
The headline NatWest East Midlands PMI® Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – posted at 54.2 in February, up notably from 51.6 in January, to signal a solid expansion in output at firms in the East Midlands.
The rate of growth was the sharpest since April 2022, with companies highlighting that stronger client demand and increased investment helped spur the accelerated rise in activity. Moreover, of the 12 monitored UK regions, only London saw a steeper upturn in output.
East Midlands private sector firms recorded a second successive monthly increase in new orders during February. The rate of growth quickened to a solid pace that was the fastest in almost two years. The expansion was sharper than both the long-run series and UK averages. Anecdotal evidence suggested that the upturn was linked to stronger client demand and the acquisition of new customers.
February data signalled more upbeat expectations regarding the outlook for output at East Midlands companies. The degree of confidence picked up notably to the highest since January 2022. Stronger business confidence was attributed to investment in new product and service lines, increased marketing and hopes of further upticks in new business.
Staffing numbers at East Midlands firms continued to decline during February, with job shedding gaining pace. Although only marginal, the rate of contraction in employment was the fastest for three months and contrasted with the UK average which pointed to a fractional rise in workforce numbers.
Lower employment was in part due to the non-replacement of voluntary leavers due to cost considerations.
Private sector firms in the East Midlands recorded a further drop in the level of incomplete business midway through the first quarter. The pace of decline quickened from January and was moderate overall. Businesses noted sufficient capacity to process incoming new work.
The fall in backlogs of work was driven by manufacturers who registered a sharp decrease in work-in-hand.
Input prices faced by East Midlands firms increased at a marked pace during February, with the rate of inflation ticking higher. The uptick in cost burdens was the joint-fastest since September 2023 and broadly in line with the UK average.
Higher input prices were linked to additional shipping and transportation costs, alongside increased supplier charges.
East Midlands businesses registered a faster uptick in output charges during February. The rise in selling prices was steep overall and accelerated notably from January to post above the series average. Anecdotal evidence commonly stated that higher output prices were due to the pass-through of greater costs to customers.
The pace of charge inflation was slightly softer than the UK average, however.
Rashel Chowdhury, NatWest Midlands and East Regional Board, said: “East Midlands firms saw a further improvement in the health of the private sector during February, as rates of output and new order growth accelerated. Moreover, the region was one of the strongest performers across the UK.
“More robust client demand spurred the sharpest rise in new business for almost two years. Firms remained conscious of cost pressures, however, as this, alongside sufficient capacity to process incoming orders, led to a further fall in employment. Jobs were shed at the sharpest pace since last November.
“Lower employment was not indicative of weaker business confidence in the year-ahead outlook, as optimism strengthened to the highest since early-2022. Greater sentiment was expressed despite renewed upwards momentum in rates of inflation. Transportation and shipping costs continued to be a key driver of increases in expenses, which were in turn passed through to clients where possible.”
IT firm owner gears up for busy year of fundraising
The owner of an IT firm is gearing up for a busy year of fundraising for local charities that includes a family fun run and an epic bike ride to Skegness.
Lee Jepson, founder of L.E.A.D. IT Services and a former Noel-Baker Academy pupil, will cycle the 100 miles from Derby to the Derbyshire Children’s Holiday Centre in Lincolnshire, raising vital funds for the charity that, last year, provided 360 children from the county with a five-day seaside stay.
Money raised from the bike ride will, for 2024 – the 10th anniversary of the ‘SkegVegas’ trip – be split between the Derbyshire Children’s Holiday Centre and Derby Kids’ Camp; a volunteer-led charity committed to providing free holidays for the city and county’s most deserving young children.
Lee is also preparing for the Derby 10k Family Fun Run – part of the annual race around the city – which will be sponsored by L.E.A.D. IT Services.
He said: “The Derbyshire Children’s Holiday Centre holds a special place in my heart, as the charity provided me with a seaside break when I was younger.
“I will be volunteering this year with Derby Kids Camp, too, so the 10th anniversary of the much-loved SkegVegas bike ride, which will raise funds for both charities, proved an ideal opportunity to take part.”
L.E.A.D. IT Services provide IT solutions to businesses and schools across the UK. They currently work with 70% of Derby schools – including growing multi-academy trusts including Embark Federation and Reach2 Academy – and have recently moved into new premises, on Pride Park.
In the past, L.E.A.D. IT Services have sponsored the England Dodgeball Team and Derby-based Mickleover FC Girls.
They currently sponsor Notts County Ladies FC and, in 2019, they supported the Project Zao Schools Football Tournament, which saw junior teams in the East Midlands compete for the ‘Community Engagement Champions Cup’.
Organised by the Derby East Safer Neighbourhood team, the aim of the tournament was to educate youngsters about knife crime.
Lincolnshire business lands £300k grant to develop crypto platform
Lincolnshire-based company, Recap, a provider of crypto tax calculation services, is poised for significant expansion following its recent Innovate UK grant win.This milestone achievement marks a pivotal moment in Recap’s journey to revolutionise crypto asset management, with the £300k grant fueling the development of a pioneering, privacy-focused collaborative crypto tax and client due diligence platform tailored for accountants and professional services.Driving this initiative forward, Recap has brought together a consortium of industry experts – namely pioneers in source of fund analytics, Hoptrail, and top UK crypto specialist accountancy firms Andersen LLP and Wright Vigar – also headquartered in Lincoln.Together, they will enhance the platform’s capabilities to seamlessly track and process crypto asset transactions while ensuring trusted source of fund checks during customer onboarding.Speaking about the grant application success, Daniel Howitt, CEO and co-founder of Recap said: “This grant is a testament to our dedication to innovation and our commitment to addressing the evolving needs of the Crypto industry.“We are immensely proud to lead this project alongside esteemed colleagues and partners Andersen LLP, Wright Vigar and Hoptrail, who bring unparalleled expertise in accountancy, tax services and anti-money laundering compliance, respectively. “As HMRC urges crypto holders to disclose gains, it’s been a pleasure to assemble this team of ‘Crypto Tax Avengers’ to make the first steps towards revolutionising crypto asset management and equip accountancy firms with the cutting-edge tools they need to best serve their clients and remain compliant.
“With the support of Innovate UK and our esteemed collaborators, Recap is poised to lead the charge as the go-to solution provider for crypto tax and client due diligence.”Funding a 12-month project – already underway – the Innovate UK grant win represents a significant investment in Recap’s growth trajectory, with plans for its team of five to expand significantly over the next year, with multiple new hires in the pipeline.Playing a key role in the expansion of Lincoln’s digital hub, Recap’s ambitious drive to become the go-to provider for cryptocurrency accounting software is set to help boost the city’s economic landscape – drawing more fintech and digital asset experts to the area.Daniel added: “This investment is not just financial: it represents the confidence and support we’ve garnered from Innovate UK – a testament to our dedication to innovation, and the strategic vision we have for Recap and the future of crypto and digital asset management.“Moreover, our ambitious drive to become the top provider for cryptocurrency accounting software aligns with our hopes of contributing to the economic growth of Lincoln. By fostering innovation and job creation, we aim to make a lasting impact on the city’s financial standing.”
East Midlands Chamber at Westminster to present growth manifesto for the region to government
Improvements to taxation, infrastructure, skills alongside reform of the planning system are among key asks that will be handed to the UK government and MPs today in a new manifesto from East Midlands Chamber.
Under the proposals taxation and regulation would see reforms to make them simpler, transport would benefit from electrification of the Midland Main Line and upgrades to key road networks, while acceleration of full-fibre broadband roll-out across the East Midlands would boost digital growth.
The document also identifies the ‘Big Opportunity’ for the East Midlands – to develop the region as a centre for the future of energy production, storage and provision.
Hosted by Nigel Mills MP, co-Chair of the East Midlands All Party Parliamentary Group, alongside East Midlands Chamber President Stuart Dawkins and Chair of the Board Kevin Harris, and with a delegation of regional business leaders in attendance, the event at 13.00 today in Westminster will mark the official launch of the Manifesto for Growth 2024.
Speaking ahead of the Westminster launch, East Midlands Chamber Chief Executive, Scott Knowles, said: “This document is the culmination of in depth engagement with our members.
“It builds upon our core themes of Innovation, Infrastructure, International trade and Investment, making specific recommendations in four areas: Skills reform for the reality of today’s workforce; Transport and infrastructure that is fit for purpose; Developing a taxation and regulation regime that is aligned with a long-term vision for the country; and how we fix the broken planning system.
“We’re also really excited to be presenting our Big Opportunity, to create a centre for the future of energy production, storage and provision in the East Midlands. We’ve already had some exciting recent developments in this space, including the STEP fusion plant development in West Burton, the Freeport’s ambitions for the Ratcliffe-on-Soar Power Station site and the work Rolls-Royce are doing on Small Modular Nuclear Reactors.
“A vision of the future where the East Midlands is exporting the products, processes and people that can deliver Net Zero is absolutely possible, and it’s essential that we get the right policy support from Government to unlock that opportunity.”
Chris Hobson, the Chamber’s Director of Policy & Insight, added: “We might not know when a General Election will be called, but it’s a certainty that it will at some point in the next ten months. With economic growth still precarious after several disruptive years, it’s a critical time to release this Manifesto that outlines the things businesses have told us they need for those that live and work in the East Midlands to be successful.
“This isn’t a zero sum game. If we get this right we all win. And the policy environment in which we operate is a key enabler to helping us get this right. Whoever is leading the country, businesses themselves will continue to do what they’ve always done: looking to develop opportunities, open new markets and maximise the materials they have and circumstances they are in to be successful.”
Some of the key asks in the Manifesto for Growth 2024 include:
- Business rates: Full review of the system
- Tax and regulation: Simplify the R&D tax credits system
- Skills: Incentives for businesses that invest in staff training
- Infrastructure: Speed up rollout of full-fibre Broadband
- Planning: Let the private sector plug gaps on council staffing
- Transport: Full electrification of the Midland Main Line commitment, reinstatement of direct rail links between Coventry and Leicester and improvements to the A50/A500 and A46 corridors.
Clowes Developments employees vote to fundraise for Derbyshire Mind
2024 marks a new chapter for the Derbyshire-based property group, Clowes Developments, as they implement their new charitable giving policy.
Historically, donations and support for initiatives have always been done on an ad-hoc basis, however, this year in line with the group’s wider Environment, Social and Governance (ESG) strategy, leaders have taken the opportunity to formalise the way they give back to the community.
For the first time, employees were invited to nominate charities close to their hearts. Nominations were then shortlisted to ensure the suggested charities align with the group’s values, employees then voted for their preferred charity.
For the financial period, 1st April 2024 to 31st March 2025, the group have elected Derbyshire Mind as the beneficiary of their charitable fundraising initiatives.
Thomas Clowes, Managing Director, Clowes Developments (UK) Ltd, said: “As we celebrate 60 years in business this year, it feels poignant to formalise the way we give back to our community. This is something we’ve done since my father set up the business in 1964.
“As we evolve our business with ESG in the forefront of our minds, our charitable initiatives remain a priority. Mind has always been a charity that’s been on my radar as Mental health affects so many people in so many ways. Whilst the charity was chosen by our employees, I am personally pleased to be supporting this charity for the next year.”
Derbyshire Mind is the local independent mental health charity within the national Mind network. Their focus is on improving mental health and wellbeing for people across Derby and Derbyshire. They provide a range of community mental wellbeing services designed to support local people with mental health problems as well as the wider population.
Laura Mitchell, Marketing & Fundraising Co-ordinator, Derbyshire Mind, added: “I’m delighted that Derbyshire Mind have been chosen as the Charity of the Year for Clowes Developments.
“We use our fundraised income to deliver a range of services, including our mental wellbeing services and projects, these are all designed to boost mood, reduce loneliness and isolation, and create connections between people to support good mental health. The money raised will make a big difference to our work.
“Derbyshire Mind’s vision is for everyone in Derbyshire to have good mental wellbeing and to live their best life. We’re excited to be working in partnership with Clowes Developments and look forward to seeing how the partnership develops over the next year.”
Clowes have several fundraising events planned throughout the year with the first being a charity golf day, sponsored by Leicestershire-based design company, Carve. ‘ProperTee’ will be held on Friday 3rd May at Brailsford Golf Course. The 12-hole course will host 12 teams of 4 made up of businesses from the property sector.
Following a welcome breakfast at the course’s clubhouse, Acorns, teams will head out to play a Texas scramble format off a shotgun start. Following the competition there will be a prize giving ceremony with a top prize worth £500 donated by FHP. Interested parties are invited to contact lucy.bloor@clowes.co.uk.
It isn’t the first time Clowes have supported Derbyshire Mind. In 2023, the group match donated funds raised at a live music event organised by The Hairy Dog. As well as committing to donate all fundraising activities to Derbyshire Mind for the next financial year, Clowes have been announced as headline sponsor for the Derby County Community Trust Black and White Ball which is taking place on Thursday 11th July.
Clowes Developments will also be taking part in Mental Health Awareness Week from the 13th-19th May. The group’s Marketing Assistant, Lucy Bloor, will be posting a mental health awareness campaign every day across their various social media platforms.
On the 17th September, Clowes will be officially celebrating their 60th anniversary with employees and to mark the occasion staff will wear blue for Derbyshire Mind. In November, members of the Clowes team will be taking part in the ‘Mental Elf’ fun run at Elvaston Castle.
Midlands Connect highlights benefits from linking cities by rail
A new report by Midlands Connect has highlighted ‘massive’ benefits to universities throughout the region if the rail link between Coventry, Leicester, Nottingham is delivered, with academics saying it would support growth at the universities and help collaboration.
The report chronicles a series of in-depth interviews with senior managers and academics at five major universities who all welcomed the proposals and saw benefits to their institution, staff and student recruitment.
Alongside this report consumer research conducted by Censuswide for Midands Connect shows that 85% of students surveyed struggled to get to or from university because of delayed trains or missed train connections. Nearly 78% believed a stronger local rail network in the Midlands would have made their university a more appealing option and 72% would be more likely to travel by rail more if local services were more frequent, faster, and involved less changes.
This research highlights the impact of better rail connections could make. Currently, just 3% of trips between Coventry and Leicester are made by train; compared to 30% of journeys made between Coventry and Birmingham and average speeds for trains between Coventry and Leicester are currently around 30mph, compared to average speeds of over 100mph for trains from Coventry to London.
The scheme could bring benefits of over £170million to the local economy and journey times along the route will be cut significantly, with trips from Coventry to Leicester falling from 54 to as low as 30 minutes, with trips from Coventry to Nottingham falling to below 60 minutes. Loughborough and East Midlands Parkway could also have new, direct and more frequent links to Coventry.
William Rossiter, Nottingham Trent University said: “I think investment in the rail corridor between Coventry, Leicester and Nottingham would facilitate growth at the university. Without a doubt, it would facilitate the kind of cross university collaborations that are increasingly essential if you’re going to attract public funding for research.
“Connectivity does make a difference to the to the quality of the student experience.
“We tend to operate on quite large catchment areas, particularly for academic staff because of the need to fill roles that are very specialized. I would argue for universities, intra and interregional transport connectivity is more important than the average employer.
“While transport connections are important for students, it is also critical in supporting research collaboration across different institutions.”
Managed hosting and data centre services firm expands in Nottingham
Following increased demand for managed hosting and data centre services, CWCS Managed Hosting has acquired a 9,300 sq ft building in Nottingham to increase the company’s data centre footprint.
Headquartered in Nottingham, with locations throughout the UK and USA, CWCS provides 24/7/365 enterprise-grade infrastructure for mission critical data systems, websites and applications through a choice of cloud, bare metal, dedicated servers, and colocation services.
The acquisition of the new site follows extensive research and the data centre is due to be online in 2024. The announcement forms part of CWCS’s strategy to support growing demand from existing and new customers, as well as supporting the growth for current and future acquisitions.
Karl Mendez, Managing Director of CWCS Managed Hosting, said: “In the last three years, we have embarked on an ambitious growth strategy to expand our portfolio of services through company acquisitions.
“There’s an increasing demand for hosted solutions, especially private cloud and server colocation where customers want their data in a redundant and secure data centre facility with technicians available 24/7, and that’s exactly what we can offer.
“Opening a new data centre in Nottingham significantly increases our capacity to offer flexible options comprising of cloud hosting, dedicated server hosting, and colocation services.
“Above all, it ensures we can continue to meet the individual needs of our customers and positions us as a partner in mission critical data hosting.”
Giles Davis, Partner at chartered surveyors, Geo Hallam & Sons, acted as the agent to find premises for the state-of-the-art facility. Giles said: “The search to find a suitable facility was a challenging brief, given the nature of the CWCS business.
“We looked for premises that were well located and could be stripped back with planning permission. The building we’ve secured is an ideal canvas for CWCS to fit out with their new data centre and associated offices. We wish the team every success.”
Mark Tomlinson, Director at FHP, who acted for the sellers in the sale, said: “The lack of industrial freehold opportunities could have prevented CWCS from achieving its expansion, but by working with Giles Davis at Geo Hallam we’ve been able to solve the problem by putting forward a building they can repurpose, securing a sale for our client, and helping CWCS achieve its vision.
“We are delighted to have completed this deal with them and wish CWCS every success with its expansion.”
Saint-Gobain PAM UK reveals plans to close Leicestershire factory
Saint-Gobain PAM UK has revealed plans to close its Holwell factory in Melton Mowbray.
It puts 161 staff members at risk of redundancy, according to reports in the Construction Enquirer, as the firm looks to move the manufacturing of access covers and gratings products to its factory in Blénod, France. A period of consultation is now underway with employees and the GMB union. A closure of the factory is not expected until the end of the year.
Alan Gwilliam, Managing Director of Saint-Gobain PAM UK, said the factory had become uncompetitive after contending with Brexit, Covid and cost increases over the last few years, and despite efforts from the Holwell team.
Meanwhile the French factory has recently been invested in to minimise the carbon intensity of production, resulting in a significant reduction in the carbon emissions related to products.
Theatre refurbishment gets the go-ahead
At Planning Committee this week, Ashfield District Council approved the plans for the refurbishment of Sutton Community Academy’s Theatre.
Ashfield District Council secured the funding to upgrade the theatre, which will be rebranded and opened to the public as Cornerstone Theatre, as part of their £6.27m Future High Streets Fund.
The Council are working with Sutton Community Academy on the plans for the project. As part of the improvement work the theatre will be completely renovated and reconfigured to create a new multifunctional community space that will accommodate a wider range of high-quality performances and acts.
The new theatre will allow residents and visitors to watch professional theatre performances, cinematic experiences, music and comedy nights, as well as other community uses.
Following the approval of the planning application, work is expected to start in summer 2024, with a finish date of early 2025.
Cllr Matthew Relf, Executive Lead for Growth, Regeneration, and Local Planning, said: “This project will help us achieve our goals of creating a vibrant and safe night-time economy in Ashfield. As the new Planetarium will connect young people to space and raise their aspirations, Cornerstone Theatre will ignite their creativity and imagination.
“We are so proud to be investing in arts and culture, to allow more people of all backgrounds, young and old, in Ashfield and beyond to experience the magic of cinema, live theatre and music in an easy to access place.
“All our regeneration projects, funded through over £100million external investment, have the common aim – to create an Ashfield that is a great place to live, work, play, study and visit.”
Simon Martin, Vice Principal at ATTFE, said: “ATTFE is hugely excited to be involved in the inception and the future running of the Cornerstone facility.
“Sutton-in-Ashfield and the surrounding area has long needed investment in and opportunities for cultural experiences of all sorts, and Cornerstone will provide these for the direct communities, neighbourhoods, and families that we serve.”
New dressing rooms and a green room, toilets – including a changing places room, foyer and box office will be created to accommodate the improved theatre.
Inside the theatre itself the auditorium will be completely refurbished with new flooring, ceiling, acoustic wall treatments and doors. A new retractable seating system will provide seating, and specialist lighting will also be installed. Considerations are being made to ensure the theatre will be an accessible space for staff, performers, and the audience.
Meridian Space Command chooses Space Park Leicester for HQ
An organisation helping to accelerate the expansion of UK space technology around the world has opened its headquarters at Space Park Leicester.
Meridian Space Command helps space sector organisations to secure funding for, and complete technology demonstration missions which enable them to expand into commercial markets.
It also supports the space industry with end-to-end mission management, operations, software, audits and education.
To further its growth, Meridian has moved to the University of Leicester’s £100 million science and innovation park to capitalise on Space Park Leicester’s state-of-the-art facilities.
The move will also enable the organisation to collaborate with the University of Leicester and to showcase its offering to businesses, ranging from industry giants to innovative start-ups, in and around the Space City Leicester cluster.
Meridian Director, Dr Sam Richards, said: “I am extremely proud to establish Meridian’s headquarters at Space Park Leicester, and look forward to cultivating our partnerships and expanding our capacity to offer collaborative opportunities for UK technologies.
“Space Park Leicester is a hub of expertise, innovation, education, and partnerships and we’re excited to participate in all these things and to contribute to them. We see Space Park Leicester as a key partner in Meridian’s vision to accelerate the global offerings of UK’s space tech.
“It also means a great deal to be part of the Space City Leicester community. It’s rare to find somewhere with commercial enterprises located alongside space companies. This unique environment will help us to develop partnerships with services that could otherwise be overlooked.
“Space City is a bold development and its continual expansion provides great opportunities for collaboration.”
Meridian’s move has been welcomed by Vinay Patel, Head of Commercial and Innovation, at Space Park Leicester.
He said: “Meridian is a fantastic organisation and we’re delighted that they have moved to Space Park Leicester to help further expand their client base.
“With their educational offering it also makes perfect sense for them to be here as they can benefit from fantastic links with the University of Leicester.
“We were particularly excited to hear Meridian is set to offer an educational short course in Newspace Mission Operations and Management which will train the next generation of space industry enablers.”
