- Optimism softened in September (weighted balance of +20% from +30% in June; long-run average of +3%).
- Business volumes growth was quick in the quarter to September, despite slowing from last quarter (+27% from +42% in June; long-run average of +13%). FS firms expect volumes to increase at a faster pace next quarter (+41%).
- Average spreads increased slightly in the three months to September (+5% from 0% in June). Spreads are expected to be broadly flat next quarter (-3%).
- The value of non-performing loans grew modestly in the quarter to September (+8% from 0% in June) but is anticipated to decline marginally next quarter (-5%).
- Profitability growth decelerated in the quarter to September (+13% from +41% in June) but is expected to speed up again next quarter (+38%).
- Employment expanded at a robust pace in the quarter to September (+34%), albeit at a slower pace than last quarter’s increase (+52%, fastest since December 2006). Firms expect headcount growth to ease further next quarter (+23%).
- Firms expect to increase investment in IT over the next 12 months (compared to the last 12). Capital expenditures on land & buildings and vehicles, plant & machinery are anticipated to be broadly unchanged.
- Uncertainty about demand was the most commonly cited factor likely to limit investment in the next 12 months (47%). The share of firms citing cost of finance (28%) as a potential limiting factor rose to its highest since December 2014.
Financial services activity holds firm
Financial services activity held relatively firm in Q3 of 2023, despite some softening from a buoyant second quarter. Optimism and business volumes growth were quick in the three months to September, although to a lesser extent than the previous quarter, according to the latest CBI Financial Services Survey.
The quarterly survey, conducted between 30 August to 15 September with 150 respondents, found that FS firms expect volumes growth to pick up considerably in the three months ahead. Employment growth, which slowed from last quarter’s 16-year high, is set to decelerate further in the coming quarter.
Key findings:
Logistics confidence falls to second lowest level on record
Confidence in the logistics sector has fallen to its second lowest level on record, only slightly above that seen during the first COVID-19 lockdown in 2020, a new industry report has found.
According to the Barclays-BDO UK Logistics Confidence Index 2023, this year’s score is 47.3, down from 50.4 in 2022. In 2020, the confidence index stood at 47.1. Any index figure below 50 indicates overall pessimism in the logistics sector – a sector that is integral to the functioning of our society at many levels and regarded as a useful barometer of the state of the wider economy.
The latest figure is in contrast to the marked optimism seen in 2021, which produced an index reading of 62.5, as the sector bounced back from the effects of the pandemic – a time of increased levels of home delivery and higher rates for global logistics services.
The latest study from Barclays Corporate Banking and accountancy and business advisory firm, BDO LLP, found that three quarters of operators (75%) feel business conditions are more difficult now than a year ago, with levels of demand the number one concern for 71% of logistics businesses.
Interestingly, staff shortages and increased labour costs – a perennial problem for the sector – are becoming less of a concern for businesses. Less than half of logistics leaders see it as a major challenge in the next 12 months. Challenges in recruiting warehousing staff and LCV drivers have also eased as volumes fall.
Jason Whitworth, corporate finance partner at BDO LLP, said: “Given the economic environment and market dynamics, it’s not surprising that the industry is cautious about the current trading environment, with real concern over volume of activity across certain sub-markets. As always, the logistics industry is feeling the effects of a tightening economic climate more than most, as inflation and interest rate rises continue to have an impact on consumer behaviour.
“Despite the lower overall confidence, there are still plenty of opportunities for operators, including greater collaboration with customers and other providers in the sector in areas such as shared-user warehousing, shared transport space, as well as electric vehicle charging or alternative fuel infrastructure.”
The report also showed that nearly nine in 10 respondents are investing in environmental, social and governance (ESG) projects. While the majority are driven by playing their part to combat climate change, there is clear acknowledgement of the growing commercial importance of being able to demonstrate ESG credentials in winning new business. There is a willingness to consider alternative fuel types, with electric solutions a top priority for investment, albeit jointly with diesel, suggesting the alternatives are not yet viable in many cases.
Whitworth added: “Investment in technology and ESG measures is a positive step to pursuing both cost savings and gaining competitive advantage. In addition, due to a need by many operators to boost volumes through new service offerings or breaking into new sectors, appetite for M&A activity remains strong.”
Looking at growth opportunities in the next 12 months, the most popular strategy is cost control and efficiency. According to the research, this is also one of the main drivers of investment in technology. More than half of businesses see this as an opportunity and, as in previous years, most will spend on upgrades to and replacement of existing technology. With the rise in cybercrime across all industries, cyber security is the second highest priority.
James Lean, Industry Director for Manufacturing, Transport & Logistics at Barclays Corporate Banking, said: “It is consistent with other global indexes to see the UK logistics sector feeling at a low level of confidence following the realigning of supply chain capacity.
“However, as our report shows, despite cooler demand from manufacturers and wholesalers, this resilient sector continues to look to the future, adapting their business models through digital strategies, investing in fixed assets and importantly their people.”
Solicitor appointed in historic Derbyshire court’s role
A solicitor has become the first woman to be appointed as Steward to an historic Derbyshire court.Wake Smith Solicitors’ private client director Suzanne Porter will hold the title of Steward to the Duke of Devonshire’s Liberties of Eyam and Stoney Middleton, Ashford, Tideswell, Peak Forest and Hartington, Crich.She was appointed under Section IV of the Derbyshire Mining Customs and Minerals Courts Act of 1852, and will conduct the business of the Great Barmote Courts.Suzanne, who was born and lives in Derbyshire, said: “I will follow the ancient customs and precedents of these courts and faithfully and impartially conduct the business, both in court and at other times, as required by the Act and for the benefit of Derbyshire Lead Mining.”The Barmote Court, held in the lead mining districts of Derbyshire, is for the purpose of determining the customs peculiar to the industry, and also for the settlements of any disputes which may arise in connection with it. It meets once a year, and will next gather together in November.Her role at the court will include swearing in the grand jury, presiding over the meetings of the court and adjudicating over any matters brought to the court’s attention. Nicholas Wood, Estates Director Derbyshire at Chatsworth Settlement Trustees, said: “I am delighted with Suzanne’s appointment as Steward to the Duke of Devonshire’s Liberties. She brings a wealth of experience to the position which makes her an excellent choice. Suzanne has a history of breaking new ground, and I wish her every success in the role.”Suzanne, who became the first female Head of the Private Client team in Wake Smith Solicitors’ long history in 2017, was recently shortlisted in the 2023 Modern Law Private Client Awards as the Lawyer of the Year – Wills & Probate category with her team up for Private Client team at the Yorkshire Legal Awards this month.
Champions (UK) Plc to merge with Lowaire
Costock-based Champions (UK) Plc is to merge with digital marketing and website development agency Lowaire.
Staff from each of the companies enjoyed a celebratory breakfast as they marked the start of a new collaboration which is designed to “propel both organisations forward.”
The deal marks the latest chapter in a remarkable story as each business began as “bedroom start-ups.”
Champions (UK) Plc’s Managing Director, Matthew Hayes, spoke of the partnership and explained what he hopes the future holds.
He said: “The objective of the merger is to combine Lowaire’s local presence and ambitious attitude with Champions’ years of experience and extensive offering to provide a results-focused approach for our clients.
“Furthermore, it allows Champions to offer a full service to clients from start-up all the way to mid-tier and fast growth corporate organisations.”
Lowaire boasts an in-house team with expertise ranging from social marketing, paid media, SEO and website design and development.
Through this partnership, they provide a full range of digital marketing and website design services to meet clients’ ever-changing digital needs.
Just like Champions (UK) plc, Lowaire started out as a one-man team from a dining room table back in 2014.
Now it possesses a dedicated team providing services to over 100 clients locally, nationally, and globally.
Matthew added: “We understand how difficult and challenging the agency market can be and how lonely it can be from the point of view of starting from scratch.
“They have proved themselves over the first seven years of business, but what we believe we can do is help add rocket fuel to the business, taking the learnings and lessons of being a bedroom start-up agency ourselves. We know what is required to deliver rapid growth for the agency itself.”
Lowaire’s Managing Director, Adam Coley started the business because he believed there was a gap in the market for a digital marketing agency that provided a better, more transparent, and personalised service for clients.
He said: “This collaboration marks a significant milestone for us. As specialists in producing robust digital marketing solutions, Lowaire sees this partnership as an exciting opportunity to fuse with Champions’ established growth strategies.
“Having worked for various companies including the NHS, I was quick to learn how a more personalised and result-driven approach could lead to better results and client retention. As an agile team at Lowaire, our nimbleness combined with Champions’ extensive experience will propel both our organisations forward.
“We truly believe our expertise coupled with Champions’ wide-reaching experience will uniquely position us in the marketplace and we look forward to sharing this exciting journey with our stakeholders.”
Accountants expands senior team
Magma Chartered Accountants and Business Advisers has strengthened its senior team following the appointment of Paul Pownall, as head of operations.
A well-known figure across the Midlands business community, Paul recently completed a spell managing a successful members’ golf club but has now stepped back into the professional services arena to join the team at Magma, which has offices in Leicester and Rugby and employs over 100 professional advisers and support staff.
Paul’s recruitment comes on the back of several recent appointments made by the business over the recent months.
Mark Tuckwell, Magma’s managing partner, said: “Magma continues to enjoy growth across our teams and client base, and Paul’s wealth of experience will allow us to develop our internal processes and infrastructure. Being able to attract talented individuals like Paul is testament to the positive direction of the business and the ‘people-focussed’ culture Magma has achieved.”
In his new role, Paul will be responsible for managing the business’s HR, IT, Finance and Marketing professionals as well as helping to deliver further improvements in client service and operational efficiencies.
Paul added: “I have known and respected the team at Magma for many years, and the opportunity to join such a progressive practice in a role in which I can bring all of my previous experience is very exciting.”
Paul has worked across the East Midlands for over 35 years and is a keen golfer.
East Midlands is being “levelled down” after scrapping HS2
Prime Minister Rishi Sunak has announced that the rest of HS2 will be scrapped, dropping the Northern leg between Birmingham and Manchester, seeing many angry reactions from leaders in the region.
HS2 costs are instead set to be allocated to build Network North – to drive better connectivity across the North and Midlands with faster journey times, increased capacity and more frequent services across rail, buses and roads – and fund transport projects across the country.
Rail, roads and buses are to benefit from £36 billion in transport improvements, and a further £12bn is to be set aside to deliver fast links between Liverpool and Manchester.
The Government is to deliver HS2 between Euston in central London and the West Midlands as planned, with a station at Old Oak Common and Birmingham Interchange and branches to central Birmingham and Handsacre, near Lichfield – where HS2 trains for Manchester, Liverpool and Scotland will join the West Coast Main Line.
The Government has said £9.6 billion will be reinvested in the Midlands:
- Funding the Midlands Rail Hub in full with £1.75 billion
- Over £1.5 billion guaranteed local transport funding for the new East Midlands Mayor
- Over £1 billion extra local transport funding for West Midlands City Region
- A new £2.2 billion fund for local transport across all areas in the West and East Midlands outside the city regions – smaller cities, counties, towns and countryside
- Reopened train lines and new stations
- The number of trains between Leicester and Birmingham will be doubled from 2 to 4 per hour
- £100 million will be shared across the North and Midlands to support the development and rollout of London-style contactless and smart ticketing
- Funding to fix 2 major pinch points on the A5 between Hinckley and Tamworth. Funding will also be provided for improvements to the A50/500 corridor between Stoke and Derby, cutting congestion for the 90,000 drivers who use the road each day and ensuring smoother journeys for drivers and freight around Rolls-Royce, Toyota, Magna Park and other major local employers
- A Midlands Road Fund worth nearly £650 million will be launched for new road schemes
- A further £250 million will fully fund 10 smaller road schemes in the Midlands, including the A509 Isham Bypass, near Kettering, and the A43 between Northampton and Kettering
- £2.2 billion for the Midlands to combat potholes
- £230 million will be invested in increasing the frequency of bus services in the Midlands and the £2 bus fare will also be extended until the end of December 2024.
Malcolm Prentice, chairman of Midlands rail depot maintenance firm MTMS, said: “HS2 wasn’t just about offering faster passenger train times, it was about freeing up the infrastructure to increase the capacity on our rail system for freight, because we can’t live with what we’ve got.
“Mr Sunak talks about digitalisation and modernisation, but while that will make a difference, it won’t allow the network to take on heavy volume and so this is a sticking plaster, not a solution to the capacity challenges that we are facing.
“It’s hugely disappointing, but if we are now going to develop and Midlands and Northern network then it should at least be a British project with British suppliers drawn from the same areas to avoid it further widening the North-South divide.”
Mr Prentice, who has more than 40 years’ experience of working in the rail industry, also took aim at the Conservative party’s own politicians whose inability to deliver HS2 has led to it having to be scaled back.
He said: “Mr Sunak stood there and talked about the project having been mismanaged and mis-delivered, but that has all been on the Conservative Government’s watch and many of the people in the room were responsible for that.
“Instead of standing there clapping and whooping, they should stood there hanging their heads in embarrassment.
“It seems that everybody who has got involved in HS2 has been more interested in their own self-interest and until the Government change the way these big projects are managed, any new rail project that comes along will have the same outcome.”
Drive-thru coffee shop plans in Edwalton stopped by council concerns
Concerns over the impact on residents and local traffic have stopped a planning application for a further drive-thru coffee shop close to Wheatcroft island in Edwalton following work by Rushcliffe Borough Council’s (RBC) planning team.
Planners originally refused plans from Edwalton Holdings Ltd for the site in December 2022 on land between the Porsche and ALDI sites adjacent to the A606 Melton Road and close to an existing similar outlet.
A subsequent appeal has now been dismissed by the Planning Inspectorate that cited the significant impacts on traffic flow at the proposed site and issues with the design of the facility.
Rushcliffe Borough Council’s Cabinet Portfolio Holder for Planning and Housing Cllr Roger Upton said: “Officers stepped in and stopped this application that could have had serious traffic implications and effects to local residents and that as the Inspectorate stated, would have harmed the character and appearance of the area.
“We welcome suitable and appropriate planning applications that can improve our local economy but in this instance officers were right to refuse this, backed up by the appeal being dismissed. The County Council also raised significant highways concerns and many were referenced by the inspector in his decision.
“Despite the applicants not seeking to engage with our teams prior to the application submission, RBC planners worked hard at the application stage to highlight the knock-on traffic effects would have been unsustainable. Standards of the design were also simply not up to scratch and ultimately they had no choice but to refuse it.
“They respond to many applications every year and it’s testament to how rigorously they are checked, they have alleviated where real community and highway issues could have been created here.”
Dismissing the appeal in their decision on September 26, The Inspector also highlighted the proposed single storey flat roofed building was deemed to have a boxy low level functional appearance and its roof mounted bulky signage blade would be disproportionate in size to the rest of the building.
On a visit to the site he could not be satisfied that the development would not result in a severe impact on the local highway network. There was a further lack of a retail impact assessment to consider the implications of the plans on the nearby existing retail centres.
Ward Councillors for Edwalton Cllr Hetvi Parekh and Cllr Gordon Wheeler said: “As local councillors for Edwalton, we would like to thank RBC officers and the work they put in for the appeal.
“The majority of the residents were against this application and had put numerous objections and had taken the time to comment on the planning portal.
“We also had put our objections on the planning portal. We are delighted that the appeal has been dismissed and the voice of the local residents has been heard.”
DMU begins search for architects to design £30m next generation library
A search is underway for a design team to lead the £30 million plans to develop a ‘next generation’ library on the De Montfort University Leicester (DMU) campus.
DMU has sent out a contract notice inviting architects to send in tenders or requests to participate in the build.
Consultations have been held with students, academics and staff over several months before reaching this stage of what DMU has called ‘an ambitious reimagining’ of the library to ‘support a diverse student body and facilitate new forms of research and learning’.
David Parkes, Director of Library and Learning Services, said: “We have already had huge student and staff engagement to find out what they would like to see from a library redevelopment. These views will help us to inform the design specifications and the design principles that we will share with the successful tenderer.”
The tenders or requests to participate in the build had to reach DMU by last Thursday. A decision will now be made on who to appoint. The job will likely include a new library extension and a redesign of the current Kimberlin Library which was originally built in 1977.
It could also include a refurbishment of the neighbouring Eric Wood building or the construction of a new larger block where the Eric Wood building currently stands, connecting with the current library.
The scheme will require the appointment of all design subconsultants, including a structural engineer, interior designer, landscape designer, services engineer and fire engineer to assist with the development of the design.
Announcing the plans for a new-look library experience earlier this year, DMU Vice-Chancellor Professor Katie Normington said: “We are planning an ambitious reimagining that will support a diverse student body and which will facilitate new forms of research and learning.
“A new library extension and redesign of the current space will help create the conditions for success for our students and faculty and establish a model for a next generation library.
“It will offer access to expert services that extend beyond the walls of the library to support student learning and academic success, to support research, digital scholarship and transformations to scholarly communication.
“Creating a new library offer will also foster new opportunities to engage with the city, region and its communities by delivering an exciting spectrum of social, cultural and academic engagement activities.
“Both digital and physical, dynamic and enduring, empowering and inspiring. A manifestation of the mission and vision of the university at the core of the university experience. We are now asking staff and students to help create this new library experience.”
Alfreton warehouse let to aerospace specialist
Commercial agents at Harris Lamb have let an Alfreton warehouse to a leading aerospace specialist.
The 68,357 sq ft building on Clover Nook Road has been let to Daher, who design and operate logistics services for the aerospace and advanced technology industries.
Matthew Tilt of Harris Lamb’s Commercial Agency team, who oversaw the letting, said that the property had attracted a good level of interest whilst the Landlord undertook refurbishment works.
“Available properties of this size and specification are limited in a prime Midlands location just two miles from Junction 28 of the M1,” he stated.
In addition to a power supply of 500 kVA and two five tonne cranes, the building has two loading yards accessed via three ground level roller shutter doors, and an eight-metre internal height to the haunch. It also has two-storey offices and ancillary accommodation, and extensive parking.
Located off Clover Nook Road within the established Cotes Park Industrial Estate, the property provides convenient access to the wider UK motorway network.
Chaiiwala forms strategic partnership for global expansion
Leicester’s Chaiiwala, an independent quick service restaurant brand, is poised for worldwide growth following the announcement of a strategic partnership with investment firm Lote Global.This collaboration is part of Chaiiwala’s long-term plan to strengthen and accelerate its domestic and international expansion to 500 stores with a keen focus on key growth markets including the USA, Canada, and the Middle East.To facilitate this planned global expansion, Chaiiwala is committed to enhancing its operational capabilities, supply chain facilities and digital experiences in the chosen markets. It currently has a portfolio of 90 stores across the world with plans to hit 100 by year-end including new openings in the UAE and Canada.Established in 2015 in Leicester, Chaiiwala offers a fusion of authentic Indian street food with a Western twist.The brand utilises various formats for its stores such as High Street locations, small kiosks, and retail park units. Chaiiwala made history as the UK’s first Drive-Thru business serving Indian street food with the opening of its Bolton store last year.Muhummed Ibrahim, Chief Executive Officer at Chaiiwala, expressed his excitement about the partnership and its potential impact on the Indian street food market.He said: “We are pleased to welcome Lote Global to the team as we solidify our position as the leading Indian street food business and shape the Chaiiwala brand for its next global chapter.“Collaborating with the Lote Global team, we believe we have found the ideal partner to expedite our vision of reaching 500 stores by 2026.“The extensive experience and knowledge of the Lote Global team in key growth markets, such as the USA and the Middle East, will be invaluable as we embark on this pivotal phase of our journey.“We have already laid the groundwork for our expansion in these crucial markets and have confidence that our partners will help us seize the significant global opportunity that lies ahead.”Wasim Choudhury, Chief Executive Officer of Lote Global Investments, said: “We are delighted to have partnered with Chaiiwala to help take the brand on the next stage of its growth story.“Lote Global is focused on supporting the Chaiiwala team to build on its successes and drive geographic, format and channel expansion. Our investment is a demonstration of our belief and confidence in Chaiiwala and its potential to become a truly global brand.”Chaiiwala were advised by KPMG (CF and Tax), Freeths (Legals) and GT (VDD) while Lote Global was advised by PwC (Financial DD and Tax DD), Addleshaw Goddard (Legal), OC&C (Commercial DD), Cross8 (Corporate DD) and Al Maqasid (Shariah DD) as part of the deal.
