Management buyout completed at Burton tiling and flooring company
QEP-UK, the home of tiling, flooring and hardware home improvement brands such as QEP®, Roberts®, Vitrex®, Tile Rite®, Plasplugs®, Homelux®, XPS Foam™ and Kraus®, has been acquired in a management buyout with specialist support from PKF Smith Cooper’s transactional tax and corporate finance teams.
As a result of this transaction, the UK business is now owned by the Boyce Family Group. Paul and Sarah Boyce have been associated for many years with some of these industry leading brands. Paul has been a member of QEP’s group management team for the past 14 years, having most recently served on the US Board of Directors as CEO of International Operations.
The management team continues to be led by Paul Boyce as CEO. He has been supported in the transaction by FD Steven White and newly appointed COO Cam Gradwell.
QEP-UK, headquartered in Burton on Trent, is a manufacturer and supplier of tiling, flooring and hardware tools and accessories, providing premium products to consumers, trade and retailers.
Its brands cover both the “DIY” and trade sections of the tiling and flooring market and its products are sold in a number of home improvement stores, including B&Q, Wickes, Topps Tiles, Screwfix, Homebase and Travis Perkins, along with a wide-reaching independent retailer network.
The management team has acquired the UK business from US-listed QEP Inc and will continue to trade under the name QEP-UK. The PKF Smith Cooper transactional tax team, led by Adam Rollason, provided a full range of taxation advice, including personal, corporate and VAT.
Darren Hodson and Josh Gurton provided deal support to the management team, alongside Dahren Naidoo (Freeths).
Adam Rollason, tax partner at PKF Smith Cooper, said: “I am delighted to have supported Paul and Cam on this transaction. I have no doubt that under its new ownership structure, QEP-UK will go from strength-to-strength over the next few years, and I wish them all the very best for the future.”
Walther Strong expands to Grantham industrial estate
In a deal brokered by heb Chartered Surveyors and Phillips Sutton, specialist adhesive product manufacturers Walther Strong have expanded into new premises at Autumn Park Industrial Estate, Grantham.
As part of a major expansion due to continued growth in the business, the specialist adhesive manufacturers have occupied 10,000 sq ft of refurbished premises on the popular Dysart Road, in central Grantham.
Fred Dunn of Walther Strong said: “Walther Strong was established in January 2019 going from 2 product lines and now boasting a catalogue of products with 40 pages. We have been on a journey of growth for 4 solid years even during the challenges that we were all faced with from the 2020 – 2021 period.
“Our latest challenge is capturing opportunity, through continuous innovative products, that are focused on solving common construction problems, leading to this constant expansion. We primarily manufacture tapes and adhesives within the construction industry with bespoke items being made upon request.
“We outgrew our current premises in just 2 years and needed somewhere suitable for our needs. Autumn Park is a great location and a great place to continue to develop and grow the wonderful team we have.
“We have expanded our staff by 300% and continue to be on the lookout for dynamic, driven individuals who have a keen aptitude for sales and lead generation within the construction sector.”
Walther Strong is the third major occupier to move onto the estate since the recent multi-million pound refurbishment carried out by owners Paloma Capital.
Tom Ridge on behalf of Paloma said: “We are delighted to welcome Walther Strong to the estate and wish them all the best for their continued expansion.
“They are the latest occupier to move in since our acquisition and refurbishment of the estate – it is really pleasing to see our faith in this excellent location and subsequent investment generating new business occupation.
“Interest has been good since the completion of the refurbishment and currently only 4 of the 22 units remain available to rent.
“We can accommodate occupiers from 2,000 to 40,000 sq ft and would welcome further expressions of interest from local businesses.”
New business hub opens in Worksop
Bassetlaw District Council has officially opened its new business hub in Worksop town centre that provides facilities and support for up to 30 small and micro businesses.
Middletons Yard, which saw a number of buildings with historical significance sympathetically regenerated into a modern and contemporary business hub, was officially opened by the Council’s Chair, Cllr Deborah Merryweather, along with other dignitaries and partners who were integral to the project.
After welcoming its first tenants in December 2022, it has since become a base for 22 businesses. This includes companies in a diverse number of sectors including finance, transport, green technology and fostering services. In addition to an independent café called Secret Garden.
Cllr Deborah Merryweather, Chair of Bassetlaw District Council, said: “It was wonderful to be able to officially open this building and speak with many of the people who now base their businesses here. I would also like to thank all of the partners who were involved in this project and helped to make it all possible.
“We know that in order to support our towns and our independent businesses, places like Middleton’s Yard need to be created so that small and micro businesses have the opportunity to get started and grow to their full potential. This is reflected in the Council’s recently adopted Vision 2040 strategy and our ambition for Bassetlaw to be a great place to do business.”
Match-funding of £1.8 million was provided by D2N2 and Midlands Engine through the ‘Unlocking Growth in N2 Town Centres’ programme.
Richard Kirkland, Employment and Skills Manager at D2N2 LEP, said: “Small to medium size employers (SMEs) are the lifeblood of the local economy with more people employed by an SME than any other sector. SMEs are more productive, with greater value added to the local economy, and we need to give our businesses the best chance to survive, grow and prosper. This is where this facility is ideally placed to support this challenge.”
Additional funding of £108,000 was provided by the National Lottery Heritage Fund, and Glyn Morgan, Midlands and East Committee Member at The National Lottery Heritage Fund added: “This is a fantastic renovation project that we were delighted to be able to be part of. The National Lottery is the biggest funder of heritage and we know the power and support that funding can provide.
“I look forward to the ongoing work that this project will deliver and I’d like to say a special thank you to everyone who plays the National Lottery, it’s your support that makes it possible to support projects like this.”
Middletons Yard provides managed office space over two floors in its main building, three floors in second building, and additional self-contained offices in the historic Brewers Yard section. The buildings have been designed to offer flexible spaces and include two dedicated meeting rooms and break-out areas to encourage networking between businesses. The hub also accommodates a co-working space and virtual tenancies, for start-ups and micro businesses.
In addition to office space, the Council’s Economic Development Team provide occupants with a wrap-around business support service that includes access to start-up Enterprise Grants, pre-start up advice and training, links to supply chains, and skills and recruitment support.
In addition to supporting local businesses, Middleton’s Yard is also supporting the high street by bringing additional footfall to Worksop Town centre. Public spaces are an integral part of the site to increase accessibility in the town centre and provide easy access to the high street and public transport hubs.
With such strong links to local businesses and the high street, the official opening also saw Shadow Secretary of State for Business and Industrial Strategy, Jonathan Reynolds MP invited by Cllr Jo White to support the opening of the building.
Deputy Leader of the Council and Cabinet Member for Business and Skills, Cllr Jo White, said: “I was delighted to invite Jonathan Reynolds MP to jointly open Middletons Yard because Bassetlaw District Council’s model of supporting local businesses is a standard that many other authorities view with envy.
“It is important that we share achievements and initiatives, like Middletons Yard with senior politicians like Jonathan, who was very impressed with what he saw, supporting local business whilst bringing a derelict site back to life.”
The event was also attended and supported by representatives of all partners involved in the project, including architects Anotherkind Architects, construction partners Messenger.
Construction of new forest school begins at Coalville site
Construction works have begun for a new forest school at Harworth Group’s South East Coalville development in Leicestershire, delivered with support from North West Leicestershire District Council and Leicestershire County Council.
Designed by Lungfish Architects, with construction works by Stepnell, the two-form entry school is scheduled to open in 2024, providing 420 places.
The school will be built to a bespoke design based on forest school principles. Originating in Scandinavia, the forest school approach promotes education through play and activity while nurturing creativity through self-activity and investigation.
To facilitate this, the school design consists of six single storey buildings, designed as a series of pavilions, which include teaching space as well as the school’s hall, kitchen, administration facilities and early years accommodation, all linked by way of a cloister.
The teaching pavilions are organised around groups of four classrooms, offering flexible teaching opportunities through a range of teaching spaces, such as group rooms and shared learning spaces.
The classroom spaces have been designed to ensure they are dynamic, naturally lit and naturally ventilated. The school will generate approximately 10% of its own electrical requirements through a roof-mounted solar PV panel system and will use air-source heat pumps to meet its heating requirements.
South East Coalville is Harworth’s largest residential development in its Midlands region. The 250-acre site is situated just two miles from Junction 22 of the M1, and has an outline planning consent for the creation of a sustainable new community of more than 2,000 homes.
The development comprises two distinct areas: Hugglescote Grange to the north and Swinfen Vale to the south, both named after surrounding villages. Immediately to the south of the site, is Harworth’s Bardon Hill development, providing 332,000 sq ft Grade A employment space.
To date, Harworth has sold land parcels for the delivery of 793 homes, to housebuilders Redrow, Bellway, Morris Homes and Cadeby Homes and delivered new green space including the planting of over 800 trees.
The second phase of the scheme will see the development of new homes, as well as a local centre close to the entrance to the site, where the school will be located, opposite a new Aldi supermarket. More community amenities are planned to be delivered at the site in the coming years.
David Cockroft, regional director – Midlands, Harworth, said: “This new forest school demonstrates the Harworth Way in action, working with local partners to deliver a valuable asset to the local community, creating a sense of place and further enhancing the attractiveness of South East Coalville and the wider area as a place to live.
“With sustainability at the heart of its design, it will provide a modern and inspiring learning environment that is befitting of its National Forest location. I am grateful to all our partners for facilitating this development, and especially to North West Leicestershire District Council and Leicestershire County Council for their continued support.”
Food processing company fined £20,000 after worker suffers serious injuries
A company has been fined £20,000 after an employee’s arm was drawn into machinery and seriously injured.
The worker, Piotr Zielinski, 58, from Nottinghamshire, was working for food processing company Belwood Foods Limited.
His right arm was drawn into a machine and wrist crushed while cleaning poultry processing machinery at Belwood Food’s site at Lowmoor Business Park, Kirkby-in-Ashfield, Nottingham, on 22 November 2019.
He had been removing debris that was trapped on the hinges of an open access panel door at the base of a hopper machine. The door had been opened to allow the debris to drain from the auger.
While removing the debris however, the auger was still in operation and caught the worker’s right arm, drawing it into the machine up to the elbow.
This led to skin and muscle being removed from Mr Zielinski’s right arm with his wrist also being crushed. His injuries required surgery.
An investigation by the Health and Safety Executive (HSE) found that the access panel door was able to be opened freely whilst the auger was in motion. There were no controls in place to prevent the panel from being opened while the auger was moving. It was not locked or interlocked, and there was no safe isolation procedure for this weekly cleaning task.
Belwood Foods Limited, of The Henley Building, Newtown Road, Henley-on-Thames, Oxfordshire, pleaded guilty to breaching Section 2(1) of the Health and Safety at Work etc. Act 1974. The company was fined £20,000 and ordered to pay £7,839.21 in costs at Nottingham Magistrates’ Court on 9 October 2023.
HSE inspector Lee Greatorex said: “This injury was easily preventable. Employers have a responsibility to properly assess the risks from all aspects of their operations, including cleaning and maintenance, and implement effective control measures to minimise the risk from dangerous parts of machinery. HSE will not hesitate to take action against companies which do not do all that they should to keep people safe.”
This prosecution was supported by HSE enforcement lawyer Samantha Wells.
Pride Leisure in Derby sold for £8.4m
Clearbell Property Partners II LP (Clearbell), a fund managed by Clearbell Capital LLP, has sold the final asset in its mixed-use Amber portfolio for £8.4 million to Manchester-based property company Elstar.
The off-market sale of major sports complex Pride Leisure in Derby – home to Everlast Gym, Oxygen Freejumping, We Are Padel, Subway and Frankie & Benny’s – marks the conclusion of the portfolio break-up, bringing total realisations of £174 million of sales across 23 separate transactions.
Having originally been acquired from abrdn in August 2015, the Amber portfolio totalled 2 million sq ft across 29 assets throughout England and Scotland, allocated across the logistics, retail and office sectors. Clearbell has spent c.£10million capex on repositioning assets before selling on completion of asset management objectives.
This intensive asset management included over 60 leasing transactions, along with other initiatives including repositioning assets for delivery of over 600 homes, and energy efficiency improvements across the portfolio.
Rob West, managing partner, Clearbell, said: “Completing the final sale of our Amber Portfolio and achieving a £174m realisation figure is a real milestone for us, and a testament to the skills of our investment team throughout challenging market conditions.
“We acquired the portfolio in a buoyant market in 2015 before the challenges of Brexit, COVID-19 and the rise of interest rates. Our team successfully navigated these headwinds and delivered improvements across the portfolio to secure a double-digit return for our investors.”
Clearbell was advised by KLM.
Agency’s birthday celebrations set to go with a bang
Purpose Media are helping light up the skies over Derby as the company celebrates its 15th birthday.
The strategic marketing agency will sponsor the Derby Fireworks Night and Fun Fair at Derbyshire County Cricket Club on November 3 – just a few days after marking a key milestone in its own history.
The event, Derby’s biggest fireworks display, is expected to attract up to 10,000 people to The Incora County Ground for an exciting evening of rides, fun, games, food and spectacular pyrotechnics, set to music.
It will be an incredible start to the city’s Bonfire Night weekend revelries, and Purpose Media Managing Director Matt Wheatcroft says the business is delighted to play its part in helping Derby celebrate in style.
“The cricket club has been staging the fireworks display since 2016 and it has become one of the most anticipated events in the city’s calendar. Every year it puts smiles on the faces of thousands of people and we’re delighted to lend our support to make sure 2023 is no exception,” he said.
“During October we mark the 15th anniversary of launching our business and it seemed really appropriate to share those celebrations with a region which has been so very good to us and with the cricket club, who we have worked with successfully for a number of years.”
Based in South Normanton, Purpose Media is a strategic marketing agency, specialising in delivering comprehensive and impactful solutions across web, creative, video and digital marketing.
Its clients include huge local brands like Derby County FC and Royal Crown Derby and giant corporates such as True Refrigeration, which is active in more than 100 countries around the world.
“The business has come a long way since its early days in 2008 but our core aim, placing the customer at the heart of everything we do, has never changed and I’m delighted that some of our very first clients are still with us today,” said Matt.
Purpose has regularly supported local good causes, charities and sports clubs.
“We’re proud to come from Derbyshire and to work with so many great businesses across the East Midlands, so we are always keen to try to give something back,” said Matt. “The Derby Fireworks Night and Fun Fair is a brilliant way in this special year for us to say thank you to people locally.”
Derbyshire County Cricket Club Chief Executive Ryan Duckett is delighted to have the company’s backing.
“This event has rapidly grown into Derby’s biggest Fireworks Night and regularly attracts 10,000 visitors to our multi-purpose venue. Purpose Media have been integral to its growth in recent years and it’s great to have their continued support for what is a hugely popular night for the local community.”
Derbyshire specialist aggregate manufacturer makes acquisition
Derbyshire Specialist Aggregates, the aggregate manufacturers, has acquired the Resin Surfacing operations in Stalbridge, Dorset from Geveko Markings.
This acquisition is said to make Derbyshire Specialist Aggregates the only manufacturer of resin and aggregate in the UK.
The acquisition includes all manufacturing plant, product and equipment and employees will be retained by the company.
Sam Buckley, Managing Director, Derbyshire Specialist Aggregates, said: “This acquisition is the perfect next step in our commitment to offer only the highest quality resin and aggregate to the UK resin bound market. We are delighted to supply the superb products previously supplied by Geveko to customers who will continue to receive BBA approved products as normal.”
Martin Poulter, CEO and founder of Derbyshire Specialist Aggregates, said: “As the manufacturer of DALTEX, the UK’s no 1 brand in resin bound, we are delighted to announce this significant strategic acquisition which is a huge development in our plans for future growth in the UK and international resin bound market.”
André Thomsen, CEO, Geveko Markings Group, said: “After a thorough strategic review, we concluded that the decorative resin surfacing market is not a strategic area for our business. The transition of our devoted team and good customers to Derbyshire Aggregates embodies a promising chapter for all involved.”
The new site will add to Derbyshire Specialist Aggregates’ seven current sites across the UK including its Head Office and main production facility in Derbyshire, Daltex Central Hub in Ashbourne, DALTEX Trade Centres in Brighouse and Bridgend as well as a slate plant in Bangor, North Wales. These are supported by two large dock facilities in Mersey Wharf and Goole.
Modest rise seen in GDP
A modest 0.2% rise in GDP in August, reported by the Office for National Statistics, is offering some relief for businesses, after the sharp drop recorded in July.
A recovery in services has driven the increase, but this has been hindered by falls in manufacturing and construction.
Tina McKenzie, policy and advocacy chair of the Federation of Small Businesses (FSB), said: “This modest rise in August’s GDP is a relief, coming on the heels of the sharp drop recorded in July.
“The recovery in services has driven the increase, but this masks concerning falls in production and construction, indicating that there are downward pressures on many sectors.
“Today’s figures will go some way to allaying fears that the summer was a wash-out for small firms, although our research has consistently found that confidence levels in some sectors – especially consumer-facing ones such as retail and hospitality – have trailed behind the overall results for all sectors.
“The early September pause in the upward march of the base rate has given small firms a ray of hope that the margin squeeze they’re enduring may ease.
“As we’ve seen in recent months, growth is volatile and fears of a recession have yet to be fully banished. If this most recent monthly rise is to be sustained, the Government will need to consider how it can promote a trading environment where small firms can flourish.
“It’s imperative for the Government to extend the 75% business rates discount for retail, hospitality and leisure firms beyond its current expiry date of April next year. It’s been a lifeline for thousands of small businesses and its continuation would limit the need for jarring price rises next April in consumer-facing sectors.
“Extending the VAT threshold to £100,000 would be another smart move to support economic growth.
“The blueprint for a thriving economy hinges on supporting small housebuilders. Small construction enterprises deserve a seat at the Government planning table, and by introducing brownfield development incentives and allowing the Community Infrastructure Levy to be paid at a project’s end rather than the beginning, we can lay the groundwork for strong GDP and economic recovery.
“The millions of small business owners and self-employed people make up a powerful voting bloc, and they will be looking to the Autumn Statement for policies which will help them achieve their ambitions, and which will help the economy overall.”
Marks Electrical builds on good trading momentum
Marks Electrical Group, the Leicester-based online electrical retailer, has seen continued growth in its first half.
According to an update for the six months ended 30 September 2023 (HY24), a strong trading period has seen revenue growth of 24.8% to £53.9m, up from £43.1m in the same period last year.
The business saw continued market share gains in the Major Domestic Appliance and Consumer Electronics markets, and rapid growth in its premium next-day service offerings with integrated, gas, electric and television installation services achieving over 7,000 installation orders in the first half, against 2,500 in the prior year, and over 11,000 freestanding connection services against 5,000 last year.
Robust performance was seen across product categories with particularly high growth in televisions (+71%), washer-dryers (+74%) and American fridge-freezers (+36%).
Mark Smithson, Chief Executive Officer, said: “We’ve built on the good momentum delivered at the start FY24, with revenue growth of 24.8% against a Major Domestic Appliances & Consumer Electronics market that is broadly flat in the first half of our financial year.
“Our strategic decision to add in-house installation services to our offering has strengthened the Group’s premium service proposition, enabling us to develop a market leading installation offering, growing market share and driving revenue growth.
“The launch of this service, alongside the well documented industry-wide pressures regarding wage inflation, impacted our H1 margin, with the pressure on distribution and installation costs being higher than expected. At the same time, year on year, we remained disciplined on marketing costs, maintained our cost control on overheads and are continuing to gain market share profitably.
“We remain focused on our full year targets and expect margin pressure to ease in H2 as we benefit from improved operating leverage during the peak trading period.
“Our differentiated operating model, leading customer service and free next-day delivery provides a unique premium service proposition that sets us apart from the competition. I’m proud of our achievements in the first half and thank all of our colleagues for their commitment to developing and maintaining our superior customer offering, positioning us as the UK’s leading premium electrical retailer.
“We’ve exited September with order growth of over 20%, made a strong start to October, and are laser-focused on maintaining our performance management discipline on revenue, profit and cash in order to grow sustainably and achieve our full year targets.”
