Deal secured on Derby City Centre retail premises

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Deal secured on Derby City Centre retail premises
A former furniture retail premises has been sold for mixed-use redevelopment. BB&J Commercial have secured the sale of the redevelopment opportunity within Derby City Centre, having disposed of the freehold interest for the store on Babington Lane. Mark Richardson of BB&J Commercial said: “We had a lot of interest in this unit, particularly from developers looking to convert the upper floors for residential use. “The layout of the unit is such that it proved to be a significant challenge so well done to the purchasers for coming up with an imaginative scheme that allowed both residential and commercial uses to operate together. “The repurposing of city centre buildings to provide such mixed-use developments is gathering pace and I believe will help to bring a number of buildings back into use.” New owner Sam Berry, director of Berry Homes UK Limited, said: “We are thrilled with acquiring 5 Babington Lane and the subsequent planning permission which has been successfully secured. “This approval allows us to introduce new, affordable accommodation to Derby’s City Centre while preserving the commercial aspect on the ground floor of the building. We look forward to continuing our positive relationship with BB&J as they assist in securing a new tenant for this space.”

Manufacturing business fined following failure to protect workers from hazardous substances

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Manufacturing business fined following failure to protect workers from hazardous substances
A manufacturing business in Lincolnshire has been fined for failing to protect its workers from hazardous substances. A Health and Safety Executive (HSE) inspection of W.S. Barrett and Son Limited’s site at Riverside Industrial estate in Boston, Lincolnshire, found the company’s workers were being potentially exposed to welding fume and dusts from powder coating. Welding fume is carcinogenic and can cause other serious illnesses such as occupational asthma. Exposure to coating powders can also cause occupational asthma and skin irritation. The inspection on 25 March 2022 found that an on-tool extraction system on the welding tools was in a poor state of repair and that Local Exhaust Ventilation systems, provided to capture welding fume and dusts from powder coating in order to protect employees’ health, had not been thoroughly examined and tested. A subsequent HSE investigation found W.S. Barrett and Son Limited, a specialist manufacturer for the agricultural and horticultural industries, had failed to ensure that its Local Exhaust Ventilation systems, which controlled workers’ exposure to welding fume and dusts from powder coating, had been thoroughly examined and tested. The company had already been warned about its Local Exhaust Ventilation systems, during a previous HSE inspection on 13 February 2018, the company was served with Improvement Notices following issues with Local Exhaust Ventilation systems. The company failed to comply and was prosecuted as a result. W.S. Barrett & Son Limited, of Marsh Lane, Boston, Lincolnshire, pleaded guilty to breaching Regulation 9(1) and Regulation 9(2) of the Control of Substances Hazardous to Health Regulations 2002. The company was fined £10,000 and ordered to pay £3,625.20 in costs at Lincoln Magistrates’ Court on 22 November 2023. HSE inspector Stacey Gamwell said: “W.S. Barrett & Son Limited could have ensured that its Local Exhaust Ventilation systems were thoroughly examined and tested to ensure that they were working as intended to protect the health of its employees. “This case highlights the importance of regular maintenance and inspection of control measures including Local Exhaust Ventilation, to ensure equipment remains in an efficient state, in efficient working order, in good repair and in a clean condition.” This HSE prosecution was brought by HSE enforcement lawyer Jonathan Bambro.

Marketing agency strengthens management team

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Marketing agency strengthens management team
Marketing agency Purpose Media has made a series of promotions to bolster its operational management team after a strong performance by the business during 2023. The move – designed to strengthen collaboration between key disciplines – sees experienced champions appointed to ensure the firm’s creative, brand and technical capabilities are fully exploited on behalf of its growing client base. As part of the changes, senior designer Alan Chaffe steps up to creative lead, senior front-end developer Josh Donnell becomes technical lead, and senior designer/front-end developer Danny Painter takes on the role of creative technologist. Purpose Media managing director Matt Wheatcroft said the promotions supported the business’s mission to deliver comprehensive and impactful solutions for clients across web, creative, video and digital marketing. “Our team brilliantly combines insights, technology and creativity to bring our customers’ visions to life and help them achieve their marketing and business objectives,” he said. “These appointments will ensure that, as we continue to grow, experienced, innovative and passionate voices are always fully heard during all internal and external collaboration, allowing us to continue to produce solutions which exceed client expectations.” South Normanton-based Purpose works regionally, nationally and globally, with a client list which includes football clubs Derby County and Rotherham FC, aerospace supply chain giants Incora and international commercial refrigeration specialists True. Matt said the new promotions reflected the significant contributions made to the business by Alan, Josh and Danny over a number of years. Josh, who began his career with Purpose Media as an apprentice eight years ago, is delighted by the opportunity to drive performance through even greater collaboration. “This new role will enable me to form closer working relationships with the senior Purpose team to push the boundaries of our technical and creative outputs to deliver the best solutions for client needs,” he said. “Having started out as an apprentice, it is also important to me to help the next generation grow in their careers and I look forward to sharing my experience as they develop their skills and understanding.” Danny, who joined the business eight years ago from creative agency Revolver Revolver, has a background in both design and development which will help inform the creation of effective strategies for clients. “I have been fortunate to work alongside talented leaders over the past decade and to soak up as much of their knowledge as I can,” he said. “This has helped shape me as a creative thinker and problem-solver and I plan to use those attributes and the understanding I have developed of both creative and technical disciplines to aid my colleagues and the customers we serve.” Alan, who joined the Purpose team in 2019, is also looking forward to the new challenge. “We have a dedicated team of talented people who I’ve been lucky to work with over the last few years, and who have positioned us as the go-to strategic marketing agency in the Midlands,” he said. “I’m excited to collaborate with our clients, both existing and new, to listen and understand their needs and to develop brave, bold work that really delivers for them.” Along with the trio of management promotions, Purpose has also promoted Georgia Weston from account executive to account manager. “We’re committed to helping talented individuals like Georgia, Danny, Alan and Josh to develop their abilities and to provide them with a platform to go on to achieve even greater success,” said Matt. “We look forward to seeing them channel their passion and abilities on behalf of our clients.”

Overcoming the bystander effect in decarbonisation

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Overcoming the bystander effect in decarbonisation
Tim Rook, with his extensive 16-year experience spanning both traditional industrial and renewable energy sectors, currently holds the position of Chief Markets Officer at Clade Engineering Systems. This UK-based firm is at the forefront in manufacturing air source and propane heat pumps, which are integral in enhancing decarbonisation efforts in residential and commercial settings. In this article, Rook delves into the critical role of small and medium-sized enterprises (SMEs) in combating climate change and highlights the risks associated with inaction. According to the Federation of Small Businesses (FSB), small to medium enterprises form the backbone of the UK’s economy, making up 99.2% of all business entities, contributing to half of the private sector’s turnover, and employing 60% of the workforce. Given their vast reach and influence, small and medium-sized businesses lie at the heart of the UK’s mission to achieve decarbonisation. The government’s ambitious Net Zero target for 2050 is commendable, but the onus largely falls on SMEs to drive this national objective forward. These businesses must actively engage in sustainable practices and shift towards renewable energy sources to effect genuine change. However, they encounter significant financial obstacles and often lack awareness of available support.

The starting point

Many businesses are eager to contribute to this cause but are uncertain about how to begin. Thankfully, raising awareness is relatively straightforward, with numerous resources available, including the UK government’s Business Climate Hub, various grants, and information on renewable technologies like heat pumps and solar energy. The real challenge for many SMEs lies in the prohibitive costs of these sustainable solutions, particularly in the current economic environment. While the long-term benefits of renewable technologies are clear, the initial investment is often beyond the reach of smaller enterprises. While budgetary constraints and limited knowledge are understandable barriers to progress towards Net Zero, less excusable is the inaction of businesses that have the means and awareness but choose not to act. This inaction can often be attributed to what’s known as the bystander effect.

Understanding the bystander effect

Coined by social psychologists, the bystander effect – in simple terms – refers to the phenomenon where individuals are less likely to take action when others are present, assuming that someone else will intervene. This leads to a diffusion of responsibility and, collectively, to inaction. This phenomenon is also observable in the business response to climate change. It is understandable, as individuals, that one might be daunted or overwhelmed by the concept of climate change, and perhaps even question the impact one person can really have just by making sure your recycling goes in the correct box outside your home. These actions may seem somewhat insignificant, but collectively, they are crucial in the fight against climate change, and their impact is substantial. From a business perspective, making a genuine change to any aspect of your operations presents challenges – especially when you consider the short-term potential pain in cost and challenges in traversing the adoption of new methods by staff and customers. Change in any form costs time, resources and cold, hard cash. The journey to Net Zero for businesses involves substantial operational changes, financial commitments, and shifts in staff and customer behaviour. It is here, facing these challenges, that smaller business owners might fall victim to self-reassurances that as their contributions to decarbonisation would be “minimal” compared with those of larger businesses around them, they needn’t take action. When only one business adopts this mindset, the overall effect is minimal. However, if every small business adopts a passive stance, it significantly impedes progress towards decarbonisation. This is a line of thinking that small businesses should be wary of, and seek to avoid.

Counteracting the bystander effect

Decarbonising the commercial sector is not only feasible, but essential for the planet’s long-term wellbeing. SMEs must actively work against the bystander effect by taking definitive steps to reduce carbon emissions. The UK Business Climate Hub offers guidance to the 5.5 million SMEs, advising on renewable energy solutions like air source heat pumps and strategies to reduce energy costs. Investing in commercial heat pump technology, particularly air source models, is an environmentally friendly and strategic choice for businesses, aligning with the UK’s Net Zero 2050 goal by reducing emissions and operational expenses.

The business benefits to Net Zero

The impact of climate change on us all is here to see around the world. There has been a political focus on reducing carbon emissions for quite some time, and smaller businesses are an integral part of the UKs plans to meet net zero emissions targets by 2050. For small businesses, net zero means sustainable services, products that are made from sustainable materials, thorough insulation within workplaces, the promotion of public transport, sustainable distribution and shipping of products, and the use of renewable energy sources, such as commercial heat pumps. Enhance your business reputation: the modern consumer is more likely to become a long-term customer of a brand that works in a genuinely sustainable way with a focus on green credentials. Reduce energy costs: by installing commercial heat pumps, solar panels, or other types of renewable energy sources at your business, you will significantly reduce your energy consumption and bills. Become more attractive to investors: in the way the modern customer is more attracted to a business that operates sustainably, the same can be said about investment opportunities. Stability in process: by adopting electric vehicles or renewable energy sources you can become more self-sufficient and less reliant on sources of power that can be impacted by volatile markets and disruptions. While interest in Net Zero is growing among UK enterprises, the bystander effect poses a threat to this momentum. To ensure that sustainable practices are adopted widely and effectively, it’s vital that key players, including renewable energy suppliers and heat pump manufacturers, collaborate to support and motivate SMEs in adopting sustainable business models.

Pockets of deal activity drive logistics and supply chain transactions to two-year high

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Pockets of deal activity drive logistics and supply chain transactions to two-year high

M&A activity in the UK logistics and supply chain management sector has rebounded to 2021 levels, with renewed interest from international buyers and venture capital investors targeting early stage tech-enabled companies.

Mirroring levels seen in Q4 2021, 21 deals were completed between July and September. Notably, there was a ‘reawakening’ of investment appetite towards UK assets from international buyers, with significant deals involving key industry players including Super Group Limited, DSV A/S, and InPost SA. Meanwhile, almost 20% of transactions were venture capital investors targeting early stage tech-enabled companies servicing the sector.

According to a new report from accountancy and business advisory firm, BDO LLP, disclosed deal values increased during the third quarter of the year to £288 million – a rise of £232 million compared to the previous quarter. This was mainly attributable to the acquisition of Xpediator for £161 million by a consortium group consisting of BaltCap, Stephen Blyth and Justas Versnickas. However, total disclosed deal value is still down on levels seen in the last three years, with values similar to that of 2018/2019.

The UK M&A Update Q3 2023 – Logistics and Supply Chain Management also sounded a word of caution, with increased evidence of distress within the market. This included the acquisition of the trade and assets of Nelson Distribution by Kinaxia Logistics, the administrations of Selazar Ltd and Glasgow Car Movers Ltd, and more recently Mark Stewart Limited.

Jason Whitworth, M&A partner at BDO LLP, said: “Maybe surprisingly given the continued challenges in the economic environment, Q3 saw an increase in deal activity to a new two-year high.

“This was driven by a number of factors, including venture capital investors investing in tech, renewed activity from international buyers, which have more recently focussed on other ‘more attractive’ international growth markets, as well as increased evidence of distress.

“The latest edition of our UK Logistics Confidence Index showed that 40% of respondents were likely to make acquisitions over the next 12 months. Although lower than last year, it does confirm the industry’s continued appetite for consolidation.

“Interestingly, in the current market where margins are under pressure, it wasn’t scale, synergies or cost savings that were the leading reasons for wanting to transact, but expansion of service offering and entering new sectors.”

Whitworth added: “Valuation remains a pivotal concern in making deals happen. Uncertain, and potentially lower earnings, coupled with the higher cost of debt, means that there is more complexity in structuring deals that will meet both buyer and vendor expectations. However, with strategic demand and available capital remaining strong, we should start to see a drive in further deal activity.”

Q3 deals included Foresight Group’s acquisition of We Are Fulfilment Ltd and Amworld UK; Endless LLP’s acquisition of ASCO Group; and the sale of Portman Logistics to Challenge-trg Group.

Rolls-Royce targets “step change” in financial performance

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Rolls-Royce targets “step change” in financial performance
Rolls-Royce is set to embark on a divestment program, efficiency initiatives, and partnerships as part of its new mid-term financial targets that will represent “a step change” in its financial performance, making the business “stronger and more resilient than it has been before.” In the mid-term this means achieving operating profit of £2.5bn-£2.8bn, operating margin of 13-15% with free cash flow of £2.8bn-£3.1bn and return on capital of 16-18%. These targets are based upon expectations for a 2027 timeframe. Rolls-Royce said: “We expect a progressive, but not necessarily linear, improvement year-on-year, and if we can accelerate the achievement of our ambitions we will. “These targets, the performance improvements that underpin them and the actions we require to achieve them, are owned across the group and supported through rigorous performance management and clear lines of accountability. Our strong start to 2023 provides further confidence in our ability to deliver.” Rolls-Royce’s new strategy is based on four pillars: portfolio choices & partnerships (the markets it is choosing to operate in, businesses it wants to invest in, and partnerships that will create truly winning positions), advantaged businesses & strategic initiatives (how it will create a competitive business, expand earnings potential and improve performance), efficiency & simplification (the importance of a company-wide focus to drive synergies that enable Rolls-Royce to be more competitive and simplify the way it operates), and lower carbon & digitally enabled businesses (Rolls-Royce’s commitment to the energy transition, building on the tangible progress it has made to date, and capturing the benefits of becoming more digitally enabled). Amongst choices made to deliver the step change in financial performance, Rolls-Royce’s group-wide divestment program is targeting gross proceeds of between £1bn and £1.5bn over the next five years, which do not form part of the firm’s free cash flow targets. Rolls-Royce said it will only sell assets at the right time and at the right price. For example, in Rolls-Royce Electrical the business is looking at options to exit in the short run or alternatively for the right value, reduce its position to minority with an intention to exit fully in the mid-term. Rolls-Royce also believes “the world-class capability” it has built in Advanced Air Mobility will represent good value to a third party and will allow it to focus on its core electrical engineering activities in Power Systems, Defence and Civil Aerospace. Moreover, Rolls-Royce efficiency initiatives will deliver sustainable savings of £400m-£500m in the mid-term. Chief Executive Tufan Erginbilgic said: “Rolls-Royce is at a pivotal point in its history. After a strong start to our transformation programme, we are today laying out a clear vision for the journey we need to take and the areas where we must focus. “We are creating a high performing, competitive, resilient and growing Rolls-Royce that will have the financial strength to control and shape its own destiny. We are confident in our ability to achieve these ambitions and have a clear and granular plan to deliver on our targets. “We have made significant progress, with 2023 profit and cash forecast to be materially ahead of 2022.
“We are setting compelling and achievable financial targets for the mid-term which will take Rolls-Royce significantly beyond any previous financial performance. This will benefit not just our shareholders but our people, customers and partners. “We are building ‘one Rolls-Royce’. A company that can fully realise its potential, ensuring the excellence and innovation that helped shape the modern world, endures long into the future.”

Economy set to miss out on millions in warehouse crisis

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Economy set to miss out on millions in warehouse crisis

New research reveals a lack of land is blocking the growth of the small to mid-box (sub-100k sq ft) warehouse sector, holding back job creation and costing the economy £480 million in Gross Value Added (GVA) per year.

With local planning focused on larger ‘Big Box’ (>100k sq ft) warehouse schemes and residential developments, change is needed.  

The report, BIG things in SMALL boxes, is the second annual benchmarking report commissioned by industrial and logistics property company, Potter Space, conducted in collaboration with Savills. The report aims to uncover the challenges faced by the small to mid-box segment of the market and suggest potential solutions. 

The biggest challenge facing this sector is that of ‘suppressed demand’. This means that demand for space outstrips the available supply of land for development. The report reveals that demand is suppressed in England by 38 per cent, and in some areas, this figure climbs to over 100 per cent.  

The Midlands has been particularly affected, above other areas. Suppressed demand currently sits at 51 per cent in Nottingham and Derbyshire. This climbs to 57 per cent in Birmingham and reaches 101 per cent in Leicestershire, making the Midlands the hardest hit area outside of Stoke and Stafford (50 per cent) and Crawley in the South East which sits at 166 per cent.  

One proposed solution to combat suppressed demand is ‘co-location’. Larger logistics property companies are facing a decline in demand, leaving unused space that could be filled by smaller providers to create economies of scale by sharing costs of infrastructure, such as access, drainage and power.

By co-locating on large sites, smaller providers could increase their footprint, create jobs and build more resilient local economies. Co-location is also growing in popularity within new developments, with a 16 per cent increase in new builds created with ancillary office space included since 2020, allowing businesses to conduct all operations from one site. 

According to the report, local authorities should take a positive approach to planning to unlock economic benefits. Local planners should consider land that is unsuited to bigger warehouses as opportunities for smaller facilities, including areas close to residential developments, beside motorway junctions or railway tracks. 

The small to mid-box warehouse sector currently provides 2.1 million jobs in England, with more waiting to be created. It is responsible for 31% of apprenticeship starts, with 13,000 apprenticeship roles per year beginning in small to medium enterprises (SMEs). If the undersupply of land is addressed, this figure could increase to a potential 18,000. 

Jason Rockett, Managing Director at Potter Space, said: “Whilst there have been some small steps forward in the industry, the main challenge of finding enough space to meet the demand of these businesses that make up the backbone of the economy hasn’t gone away.

“Our report findings clearly show the need for logistics property companies to work together and collaborate with local authorities for a sustainable future in which the demand of all businesses can be met. If we can get this right now, we’ll not only support businesses, but also provide meaningful and long-term jobs in our local communities. 

“Co-location is one way that the sector can work together to make the best use of available land and resources. With suppressed demand sitting at 38 per cent and rising to above 100 per cent in areas such as Crawley and Leicestershire, it’s clear that steps need to be taken now to improve the situation, before it is a major challenge that puts a stop to business growth and job creation.” 

Frozen food company fined after employee loses fingers

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Frozen food company fined after employee loses fingers
A frozen food company has been fined £700,000 after an employee lost two of his fingers following an incident at the firm’s premises in Lincolnshire. Tom Matthews, from Grantham, now champions health and safety in his current job at a different company, warning others to avoid his misfortune. He had been working a night shift at McCain Foods’ site in Easton on 2 September 2019 when he suffered serious injuries to his left hand. While cleaning the company’s batter system machinery, the 33-year-old had attempted to remove string dangling from a chute when his left hand was drawn in and contacted the machine’s rotary valve. The index and middle finger were later amputated as a result of the incident. Tom Matthews, a father-of-two, said: “The last four years have been hard and an ongoing struggle both physically and mentally. I still have circulation problems in my left hand following the incident that should never have happened. “While I’m currently working, my new role is with the health and safety team at a different company as I want to use my story as an example to others and make sure something like this doesn’t happen again.” A Health and Safety Executive (HSE) investigation found that McCain Foods had failed to provide appropriate guarding to prevent access to the dangerous parts of machinery, namely the rotary valve. It had not conducted an adequate risk assessment of the batter machine and had not provided employees with adequate health and safety training or supervision. McCain Foods (G.B.) Limited, of Havers Hill, Eastfield, Scarborough, North Yorkshire, pleaded guilty to breaching Section 2(1) of the Health & Safety at Work etc. Act 1974 and Section 11(1) of Provision and Use of Work Equipment Regulations 1998 (PUWER). The company was fined £700,000 and ordered to pay £6,508.51 in costs at Lincoln Magistrates’ Court on 22 November 2023. HSE inspector Muir Finlay said: “This incident could so easily have been avoided had the company taken simple steps to guard dangerous parts of machinery and provide employees with suitable training and supervision. “Companies and individuals should be aware that HSE will not hesitate to take appropriate enforcement action against those that fall below the required standards.” This prosecution was led by HSE enforcement lawyer Jonathan Bambro and supported by Rubina Abdul-Karim.

Nottingham academics receive funding to help make AI safe to use

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Nottingham academics receive funding to help make AI safe to use
Academics from the University of Nottingham have received funding to research how to ensure Artificial Intelligence (AI) is safe to use, in a new project alongside the Universities of Oxford and Warwick.
The UKRI funded Responsible AI UK (RAI UK) has announced its first round of Impact Acceleration projects, investing £1.8m to ensure AI is safe, and that it will be responsible to the needs of society, addressing topics such as Generative AI in teaching and learning. In one of these Impact Acceleration projects, researchers from Horizon Digital Economy Research and the Mixed Reality Lab at the University of Nottingham will join colleagues from the University of Oxford and the University of Warwick to deliver ‘Responsible Innovation Advantage in Knowledge Exchange ‘RAKE’’. The project will work with a variety of stakeholders including businesses, standards bodies, funding organisations, research teams, doctoral training centres and SMEs to explore how Responsible Innovation (RI) can be better embedded and will deliver RI training sessions in these differing environments. Dr Alan Chamberlain, in the School of Computer Science at the University of Nottingham, will lead on the development of an international interdisciplinary network to bring together academics, researchers and experts to better understand responsible AI in the context of the Arts and Humanities. He said: “Starting to examine how people understand and apply responsible AI in their work is important. It will help us to approach the design of responsible systems together. Involving the public is fundamental, it’s vitally important to enable people to participate and have input into research.” Professor Elvira Perez Vallejos and Dr Virginia Portillo at the University of Nottingham, along with Dr Carolyn Ten Holter at the University of Oxford, have a wealth of expertise and knowledge and will lead work with the Institute of Electrical and Electronics Engineers Standards Association, UKRI CDTs and AI spinouts to map current RI practice, identify gaps and develop guidance to embed and drive knowledge exchange.

Alexandra Dock Housing site released to market

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Alexandra Dock Housing site released to market
An opportunity to create a brand new housing development on brownfield land near the Grimsby Fishing Heritage Centre has been released. The site, behind the newly renovated Garth Lane waterfront area, has been earmarked by the Council for urban housing and the Council is now looking for a development partner to come forward to drive the project forward. The 6.25 acre town centre site bordered by Fisherman’s Wharf and the River Freshney will eventually see a community of around 130 homes with supporting commercial accommodation. The frontage of the site, bordering Alexandra Dock, was completed in 2021, and includes the new footbridge over the River. This area was identified for homes in Grimsby’s Town Centre Masterplan, which is supported by Homes England, and is cited as an ideal location given the water nearby and the improvements that have already taken place. Investment worth approximately £7.8m to support the development at this site has already been secured through the Government’s Towns Fund. Cllr Philip Jackson, leader of the council with responsibilities for the economy, net zero, skills and housing, said: “The main objective of this work is to create a place that connects the town and its community with its waterside, creating a fantastic urban living environment. “There’s a long way to go yet, and developments of this scale don’t happen overnight. But we are working to improve the town centre as a whole and this is part of that vision. Step-by-step we want to change how our town centre is used and enjoyed as a whole.” Potential bidders can view documentation on www.find-tender.service.gov.uk– external site. Selected developers will then take part in a competitive dialogue, followed by an invitation to submit formal tenders to develop out the site from 2024 onwards.
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