Company insolvencies swell by a fifth, but there is cause for optimism
As the number of company insolvencies in England and Wales shoots up by a fifth and remains at a level not seen since the 2008-09 recession, the economic path ahead may not be so thorny, with a rising number of businesses able to be rescued rather than wound up.
This is according to the Midlands branch of insolvency and restructuring body R3 and follows the latest monthly statistics published by the Insolvency Service which show that corporate insolvencies increased by 18.4% in April to a total of 2,177 compared to March’s figure of 1,838, and by 52.7% in comparison with the pre-pandemic figure of 1,426 in April 2019.
The rate of company insolvencies during the 12 months ending 30 April 2024 was 57 per 10,000, rising from 52.6 per 10,000 a year earlier.
R3 Midlands Chair Stephen Rome, a partner at Penningtons Manches Cooper in the region, said: “The annual and monthly increases in corporate insolvencies have been driven by a rise in all types of corporate insolvency process, but one of the key areas which stands out is the sizeable rise in Creditors’ Voluntary Liquidations.
“One factor behind this is likely to be directors closing their businesses at the end of the financial year, either because they believe the market won’t improve or because they’ve simply had enough after four tough years.
“Another possibility could be the difficulties small businesses in distress experience in being unable to access more complex and more expensive forms of restructuring and having to resort to liquidation as a means of dealing with unserviceable debt.
“Also of note is the increase in administrations. While this isn’t by a large number, it does suggest that there is a growing volume of businesses which could potentially be rescued rather than wound-up, and as the economy recovers we would anticipate this rise will continue.
“Further data available to us shows that the construction, retail and hospitality sectors have experienced the highest insolvency levels so far this year. Retail and hospitality businesses have been particularly affected by consumers’ wariness about spending money, poor weather in February and a tough pre-Christmas trading period. Issues with the weather will also have affected the construction industry, as will the fall in new work since the start of the year.
“But despite the difficult business climate over the period these figures cover, there is some cause for optimism. The economy is growing again and business and consumer confidence levels are both improving. While businesses remain concerned about costs and consumer demand, the mood is generally more positive with a significant increase in new company registrations being reported by Companies House.”
Acquisitive East Midlands accountancy firm snaps up London-based business
Cooper Parry has exchanged on the acquisition of London-based Cloud Orca – the Salesforce consultancy.
It’s the East Midlands accountancy firm’s eighth deal in the last 16 months, as it targets £250m turnover by 2025.
Cloud Orca’s 55-strong highly certified team is co-located in London and the Philippines. The firm’s impressive client roster includes Revolut, Starling Bank, Monzo Bank, Unum and Chilly’s.
Ade Cheatham, Cooper Parry CEO, said: “This Cloud Orca deal is a massive leap forward in our tech offering. It ticks tons of the right boxes: market reputation, powerful culture, huge growth, and a passion for sustainability. The fit is spot on.
“As we create the UK’s next-gen accountancy firm, the landing of such an impressive anchor firm in the digital and tech space is brilliant news. What a way to start the new financial year! And the great thing is, there’s plenty more on the horizon.”
Ed Rowland, Cloud Orca CEO, said: “Our business was founded on simple, powerful, meaningful values. We’re here to deliver the right tech for dynamic businesses to be more effective, profitable and successful. With Cooper Parry, we’ve found a firm which shares our ambitions in the mid-market space.”
Operator secured for Strategic Rail Freight Interchange in Hinckley
Tritax Symmetry has secured an agreement with Maritime Transport, to develop, lease and operate Tritax Symmetry’s planned £750 million Strategic Rail Freight Interchange (SRFI) at the controversial Hinckley National Rail Freight Interchange (HNRFI).
Maritime Transport, the integrated road and rail freight logistics provider, will develop a 40-acre SRFI, which will be capable of handling 16 trains per day when fully operational. At full capacity, the SRFI will remove more than 83 million HGV miles from the UK road network.
The volume of goods switched from road to rail could save around 70,120 tonnes of CO2 each year.
The new terminal will sit alongside 7 million sq ft of warehouse facilities.
The scheme remains dependent on the Secretary of State for Transport’s approval of a Development Consent Order; the outcome is due in September 2024.
Jonathan Wallis, Director at Tritax Symmetry, said: “Maritime Transport’s commitment to an SRFI at this early stage is a significant first in the sector and reflects ultimate confidence in the location’s suitability for rail freight from the leading road and rail freight location provider in the UK.
“Alongside Maritime Transport’s fully fledged support, we are excited by the potential of this prime location for rail-linked logistics, which we believe will see strong demand for large scale, flexible, modern, low carbon space.”
John Williams, Executive Chairman of Maritime Transport, said: “We are delighted to agree terms with Tritax Symmetry to become the long-term operator of the new SRFI, in planning, at HNRFI. This development will strengthen our rail-connected network and our strategy of decarbonising the full load supply chain in the UK, moving cargo closer to the end user by rail.
“Our strategy of decarbonising the supply chain will extend to the introduction of BEV (Battery Electric Vehicles) to perform first and final mile transport, creating the most sustainable full load networked, intermodal logistics offering for occupiers at HNRFI and beyond.”
Tritax Symmetry is part of Tritax Big Box REIT plc and was represented by Baker Rose Consulting.
Food processing facility gets green light in Easton
Plans for a food processing facility in Easton, Lincolnshire, have been approved by South Kesteven District Council.
The application site, off Burton Lane, forms part of the existing Magnavale Group and XPO Logistics site which comprises of a number of storage and distribution warehouses and ancillary offices, providing cold storage for frozen food products.
The buildings were developed in the late 1960s, and the site is best known locally for being previously operated by Christian Salvesen Limited. Various buildings have been updated over the 50-60 years of operation, with a new coldstore food warehouse under construction.
The proposed development site for the food processing facility consists of an area of vacant, brownfield land, which previously contained a warehouse building.
The processing facility, which will have a total footprint of 18,630 sq m, will operate alongside the other coldstores on site, which will be utilised for storing the raw materials and the final product.
It will bring new life to the former McCain’s factory site.
Easton Properties Limited, part of the Sadel Group, is behind the plans. The Sadel Group has plans for the whole brownfield site to operate as a hub for controlled-temperature storage of both raw materials and finished product, reducing food miles.
Further, the group plans to develop an anaerobic digester plant in the northern part of the site area to produce renewable energy to feed the cold storage plants.
30-year-old Derbyshire day nursery sold
Specialist business property adviser, Christie & Co, has sold The Lanes Day Nursery in Ilkeston.
Established in 1994, The Lanes Day Nursery is a popular setting and one of the few nurseries still running a successful out-of-school club in the area. It has the capacity for up to 42 children and a ‘Good’ Ofsted rating.
The business has been owned by Angela Mold since 1994 and was brought to market to allow her to retire.
Following a confidential sales process with Jassi Sunner at Christie & Co, it has been purchased by Oak Wood Early Years Limited which comprises Oak House Nursery and now The Lanes.
Emily Waez, Manager at Oak Wood Early Years Limited, says: “We thank Angela for all of her hard work and wish her the best for the future; we look forward to building on the solid foundation she has created. We already operate an Ofsted ‘Outstanding’ nursery setting in Derbyshire, and we look forward to implementing our ethos and frameworks into The Lanes Day Nursery.”
Jassi Sunner, Associate Director – Childcare & Education at Christie & Co, says: “Lanes Day Nursery held a unique position on the border of Derbyshire and Nottinghamshire and, therefore, was always likely to attract a range of interest.
“Following a thorough marketing process, our client was delighted to select a local operator to continue the good work she had put in place and allow some synergy between her nursery and their existing set-up.
“This is another example of the confidence in the sector and the focus of activity in the Midlands at the moment where we have seen a number of sales over the long, medium and short term.
“Due to the funding changes this year, we are seeing an increase in activity from new entrants or smaller operators in the sector who are looking to benefit from the changes the sector will provide.
“Adopting tried and tested local approaches to childcare alongside managing local authority funding will be key to enabling the Government strategy to increase nursery uptake.”
The Lanes Day Nursery was sold for an undisclosed price.
Solicitors let Loughborough office building
EHL Solicitors has let 8 Forest Road, Loughborough; a semi-detached, self-contained two storey period office building.
8 Forest Road is located in a prominent position just south of Loughborough town centre, well served by a plethora of amenities and transport links.
Confirming the deal, FHP said the property generated a good level of enquiries from the commencement of the marketing, given the lack of available stock within Loughborough, and secured a high level of viewings on the property.
Amy Howard, surveyor at FHP Property Consultants, said: “It was a great result to finally get this letting over the line and the new occupier to be handed over the keys. The level of interest we received on the property portrays the demand for office stock within Loughborough is high although there is limited availability within the market.
“The ample parking available within the demise was certainly an attractive feature upon the marketing, something that is typically limited. Rents across Loughborough remain competitive, and we achieved a good result for our client, in which they were delighted with.”
Poor mental health costs employers £51bn a year
New mental health research from Deloitte has revealed that the cost to employers of poor mental health is £51bn per year, a decrease from £55bn in 2021, but an increase from £45bn in 2019. Presenteeism is the largest contributor, where people work in spite of illness and not perform at their full ability, which is costing employers around £24bn annually.
Deloitte’s fourth report on mental health and the workplace also shows that over half (58%) of survey respondents say their mental wellbeing was good or excellent. There were also improvements for younger people with 64% of 18-24-year-olds reporting that their overall their mental health is good, an increase from 53% in 2022.
This year’s report also explores the impact of children’s poor mental health on working parents for the first time. According to the survey, 46% of working parents are concerned about their children’s mental health. Half of those who are concerned about their children’s mental health say it impacts their performance at work.
Deloitte’s report in collaboration with mental health charities Place 2 Be and Mind estimates that working parents’ concern about their children’s mental health is costing UK employers £8bn annually. The cost is due to parents and carers taking time off work to care for their children, the impact on their performance, or leaving their roles.
A majority of working parents (63%) who were concerned about their children’s mental health, say they turn to external sources of support to manage their children’s mental health challenges, rather than approaching their employer for additional support.
Of those who are concerned about their children’s mental health, a third (32%) have looked to reduce their working hours and 19% have turned to their employer for additional support, such as an employee support line, childcare, or flexible working arrangements.
Juggling demands of work alongside caring for a child with mental health difficulties led to 10% of parents taking up to five days off per year to support their children. One in a hundred working parents have left their jobs because of the poor mental health of their children.
Elizabeth Hampson, Deloitte partner and author of the latest mental health research, said: “Work performance is being impacted as more than one in ten parents have taken time off work to support their children’s mental health and one in 100 is leaving a job as they simply can’t juggle the demands of work alongside caring for a child with mental health difficulties.
“Alongside wider societal support, our research shows that specific support, including for working parents, can help reduce time out of the office and presenteeism.”
Catherine Roche, CEO, Place2Be, children’s mental health charity, said: “Children don’t come with a manual: in today’s fast-moving landscape we need to support parents and carers to build their confidence and understanding of emotions and behaviours, so they can foster resilience, healthy coping mechanisms, good mental health and wellbeing.
“Place2Be is delighted to work in partnership with Deloitte, whom we applaud for investing time and research into these complex issues. Creating mentally healthy workplaces has long-reaching benefits for employers, employees and society as a whole.”
Deloitte’s research found an increase in some elements of burnout. 63% of respondents said they were exhibiting at least one sign of burnout, such as feeling of exhaustion, mental distance from their job, or a decline in performance at work, an increase from 51% in the previous survey.
Given the implications of burnout on job performance and productivity, as well as employees’ overall wellbeing, there is a clear case for employers to recognise and address this issue.
Overall, the main concerns affecting the mental health of working adults are the increasing cost of living (60%), personal/family finances (46%), and job security (22%). Working parents were most concerned about the rising cost of living (65%), alongside family finances (55%) and about the mental health of their children (29%).
Dr Sarah Hughes, CEO of Mind, said: “Work is important. It affects every area of our lives – and that includes our ability to participate in our families, perhaps to be a supportive parent, and enjoy spending time with our loved ones.
“We know it’s critical for businesses to consider ways to better support working parents – considering flexibility, providing additional support, and creating a culture where talking about life’s challenges is acceptable. This research finds a link between the mental wellbeing of young people and their parents – when one suffers, the other does too.
“Parents of children with poor mental health found themselves struggling to do their best at work, perpetuating a cycle of stress both in their home life and in their working life. We envision a future where an employer can support the mental and emotional health not just of their own employees, but their families and networks too.”
Deloitte’s return on investment analysis of employee mental health interventions that was conducted as part of the research shows on average, for every £1 spent on supporting their people’s mental health, employers get nearly £4.70 back on their investment in improved productivity. Demonstrating that higher return on investment can be achieved by early interventions, such as organisation-wide culture change and education, than more in-depth support that may be needed at a later stage when a person is struggling.
Hampson concluded: “Employers are increasingly putting mental health and wellbeing at the heart of their business and providing effective mental health support for their people. The benefits of providing targeted support for employees are clear and compelling.
“Employers need concrete evidence to make informed decisions about how to invest in workplace mental health programmes and maximise benefits, including financial returns. We hope to inspire employers to take stock of the importance of their people’s wellbeing and mental health and put in place effective interventions to support their people, including working parents.”
Nottingham’s Phenna Group makes third Australian deal of 2024
Nottingham-headquartered Phenna Group, which invests in and partners with selected niche, independent Testing, Inspection, Certification and Compliance (TICC) companies that serve a variety of sectors, has acquired Resolve Group.
The acquisition is Phenna Group’s third deal in Australia this year and continues its strong growth in the region, whilst augmenting the firm’s Built Environment platform across the country.
Resolve Group is a building surveyor consultancy with capability in the construction, property and mining sectors.
Founded in 2011 by Scott Roberts and Kieran Hunt, they have built a reputation providing building code consultancy and certification services to a diverse mix of public and private sector clients, working on a number of iconic projects.
Scott Roberts and Kieran Hunt, Resolve Group Directors, said: “We are very excited to be joining Phenna Group. Making a decision like this after many successful years was a big step in the evolution of our business to ensure its ongoing growth and success.
“From our first engagement with Phenna Group it was clear that their business model and their team was the right fit for our business.”
Brett Coleman, Divisional MD, Australia said: “I am very excited to welcome Scott, Kieran and their team to Phenna Group. Since 2011 they have built a very successful business with an excellent reputation for customer service and technical capability.
“I look forward to working with them to continue their growth, and to realise the significant opportunities that exist as part of the Phenna Group in Australia.”
Paul Barry, Executive Chairman & Founder of Phenna Group, added: “I am delighted to welcome Scott, Kieran and their team to Phenna Group. The addition of Resolve Group and their experience and capability supports our fast-growing certification and compliance operations in Australia.
“I look forward to working with Brett, and the Resolve Group team to continue their exciting journey.”
Phenna Group were advised by Macpherson Kelley and Pitchers Partners. Resolve Group were advised by Red Swan Partners, RSM and Holding Redlich.
New appointment for LCS IT Solutions
LCS IT Solutions Ltd are thrilled to welcome Matthew to our Support Team. He brings with him a wealth of experience after spending 20 years at a well known agricultural firm in Lincolnshire. Matthew has a strong knowledge base in all Microsoft systems as well as physical and virtual server infrastructures European wide.
Here at LCS, we now have a Team of 10 who are all dedicated to providing an honest, friendly and professionaI service to meet our clients’ specific needs.
LCS IT Solutions Ltd’s aim is to be Lincolnshire’s most trusted IT advisors, implementation and supporting solutions which are effective, secure and effortless to use.
Accountancy firms join forces
East of England accountancy firm Moore Thompson has joined forces with Jackson and Grimes, based in Stamford.
Moore Thompson has long sought to extend its footprint into the local market.
The senior directors of Jackson and Grimes identified Moore Thompson as the ideal partner to ensure the necessary succession that benefits clients and staff alike.
Mark Hildred, Managing Partner at Moore Thompson, said: “This move brings together two firms with a shared ethos of excellence, client service, and community engagement.”
Moore Thompson is taking on the entire workforce of Jackson and Grimes, including three directors.
This move not only enriches Moore Thompson’s team with fresh expertise and insights but also ensures continuity of service for all existing clients of Jackson and Grimes.
“The synergy between Moore Thompson and Jackson and Grimes has made this possible, setting the stage for enhanced service offerings to clients,” added Mark.
“We are looking forward to welcoming the clients of Jackson and Grimes, as we deliver an even broader spectrum of accountancy and advisory services tailored to their needs.
“This is more than a merger of resources. It represents a fusion of values and visions aimed at fostering growth, innovation, and community development.”
