East Midlands business confidence rises to second highest in UK
Business confidence in the East Midlands rose 18 points during April to 41%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the region reported higher confidence in their own business prospects month-on-month, up ten points at 46%. When taken alongside their optimism in the economy, up 27 points to 36%, this gives a headline confidence reading of 41%.
East Midlands businesses identified their top target areas for growth in the next six months as evolving their offer (42%), diversifying into new markets (42%) and introducing new technology (39%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.A net balance of 28% of businesses in the region expect to increase staff levels over the next year, down five points on last month.
Overall, UK business confidence climbed one point to 33% in April. Every UK nation and region reported a positive confidence reading and six out of 11 regions recorded a higher reading than last month. London reported the highest levels of business confidence at 47% (up nine points month-on-month), followed by East Midlands (up 18 points) and North East (up three points), both at 41%.
Firms’ outlook on their own trading prospects remained strong at 39% for the second consecutive month, and a net balance of 27% of businesses reported plans to increase their staff levels, up two points from March.
Ahead of the three Bank Holidays in May, firms’ optimism in the overall economy increased five points to 28% – the highest reading since June last year.
Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “It’s fantastic to see the region’s businesses mark a third consecutive month of rising confidence, and to see so many firms planning to invest in new technology and explore new markets. Investments in these areas will contribute to driving growth and help give businesses the edge they need to differentiate themselves.
“For those businesses focused on growth, reviewing working capital needs, and unlocking finances tied up in inventory or stock with asset or invoice finance, can be helpful for freeing up money to invest back into the business.”
Business confidence in the service sector rose to 36% this month, the highest since May 2022, with sentiment particularly upbeat in hospitality and financial services. While the other sectors saw slight decreases, construction remained strong at 43% while manufacturing and retail remain above last year’s lowest levels.
Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “The recent increases in business confidence indicate that the economy entered the second quarter of 2023 with positive momentum.
“The revival in the demand for labour, which improved for the fifth consecutive month, may account for the modest uptick in wage expectations for the next twelve months.
“While firms’ concerns on overall cost pressures have eased, there is little evidence that pricing expectations have declined which may impact wider pricing decisions for the remainder of 2023.”
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Double framework success for rg+p
Multi-disciplinary design practice, rg+p Ltd has secured two framework positions providing architectural and employer’s agent services to housing provider, Midland Heart.
rg+p will now sit on a panel of preferred consultants for Midland Heart under its three-year Development Consultancy Panel. The £4.4m framework will cover a range of projects across the Midlands, where Midland Heart owns around 34,000 homes across 54 local authorities.
“Our working relationship with Midland Heart extends just over a decade and has included some of the Midlands’ most well-known housing projects such as the regeneration at Wolsey Island, Green Lane Road and St Mary’s Allotments in Leicester,” explains rg+p’s director, Rob Woolston.
“I’m told only ten teams were due to be selected for this framework so it’s excellent news our experience in this sector has allowed us to stand out in this competitive tender process.”
One of rg+p’s first projects under the new Midland Heart Development Consultancy Panel is the delivery of Hill Top Farm in Earl Shilton, Leicestershire. This will provide 50 much needed affordable homes on a derelict farm estate where rg+p previously secured planning consent in late 2022.
Multi-disciplinary built environment consultancy secures £40m investment
Multi-disciplinary built environment consultancy Ridge and Partners, which has offices in Leicester, has secured a significant investment of more than £40 million from Horizon Capital.
Horizon’s investment supports Ridge in delivering the next phase of its ‘Quality, Innovation and Growth’ vision, which sets a strategy for expanding expertise and nurturing talent in a progressive way.
The success of this strategy is clear in Ridge’s recent expansion from 577 people and £61 million turnover in 2020 to 1,000 people and a forecast £105 million in 2023 across its 13 UK offices. Strategic acquisitions in the last three years have included Scott Hughes Design and Projex.
Ridge’s broad multi-disciplinary offering to clients, which includes depth in architecture, building services, engineering, planning, surveying, sustainability and transport, will be expanded by investing in talent across its core disciplines as well as through new acquisitions.
New acquisitions will complement Ridge’s existing practices and develop new services to enhance its track record of strong client relationships. Strategic opportunities include the digital revolution, the net zero carbon and social impact agendas and changing ways of living, working and learning. Through its investment in Ridge, Horizon Capital is adding built environment services to its portfolio of 14 technology services, business services, software and data companies.
Adrian O’Hickey, senior partner, Ridge, said: “This is a transformational deal for Ridge – a catalyst for some of the most ambitious changes in our strategy. We’ve already been successful in turning up the dial on this business, introducing new initiatives and developing our people. We want to continue that progress, with the benefit of new investment, while maintaining our core values of quality, collaboration and agility all the way.
“Progressive growth is crucial for us and that means creating better and more sustainable places while offering cutting edge services for our clients and career opportunities for our colleagues.
“Horizon Capital’s focus on professional services and technology makes them a strong fit for Ridge and protects the personal culture of our 75-year-old business. Horizon understands the personal touch that distinguishes the Ridge culture and our willingness to exploit the latest technology to work more efficiently and more accurately.”
Luke Kingston, managing partner, Horizon Capital, said: “Horizon is providing the first institutional capital to Ridge in its 75-year history. Its partners have already taken opportunities for sustained growth in recent years, and we will help them to be even more ambitious in the firms and talent they reach out to.
“This professional expertise will be vital in the next few years as the UK upgrades its infrastructure and brings its building stock up to net zero standards. The winners in this market should be the consultants who have the trust of their clients and a track record of maintaining the highest standards throughout their businesses.”
Regional entrepreneurs join Star Trust as patrons
East Midlands charity, Star Trust, has welcomed several new business leaders and entrepreneurs as patrons and trustees.
Star Trust is run by local business owners and entrepreneurs. Since its launch more than ten years ago it has donated more than £777,000 and awarded grants to 100 East Midlands-based charities.
Kavita Oberoi OBE and Tony Hillary have joined as patrons of the charity.
Mrs Oberoi is the founder and Managing Director of two Derby businesses – Oberoi Consulting, one of the UK’s leading suppliers of IT and clinical support services to the NHS and pharmaceutical industry, and Oberoi Business Hub in Pride Park, which provides serviced office accommodation and back-office support services.
Tony Hillary is the founder of Hillary’s Blinds which, since its launch from his converted garage at home in Nottingham in 1971, has grown to become one of the UK’s leading window dressing specialists. Tony sold the business in 2001 and has become a successful investor in various sectors under Hillary’s Investments.
Both will be working alongside established patron Tim Storer – joint Managing Director of his family business, Pukka Pies Ltd – to champion the charity, help decide where money should be donated and participate in fundraising activities.
Two new volunteer board members have also joined Star Trust – Lincolnshire-based and award-winning entrepreneur Sarah Louise Fairburn and David Ryley, head of David Ryley Wealth in Nottinghamshire.
Star Trust founder Steve Hampson said: “We are delighted to welcome our new patrons and board members who join a loyal and committed team of volunteers with the sole focus of supporting local charities.
“We organise up to three high profile events a year – the most recent of which was a motoring day which raised more than £45,000.
“All the money raised is then granted to small charities across the East Midlands region who apply for funding and both our patrons and board members have an important role in ensuring that the money is allocated for maximum benefit to local communities.”
Kavita Oberoi added: “I am honoured to be working alongside such like-minded entrepreneurs from across the region who share my ethos to improve the lives of vulnerable people in our local communities.
“Our Derby Breakfast Club continues to be a huge success – ensuring children start the day with a healthy meal and Oberoi Consulting now has its own foundation to support charities and organisations across the world with a focus on women and girls.
“I regard this role as patron of Star Trust working well in tandem with this existing work and I look forward to playing an active role in this very successful charity.”
£1m boutique apartment hotel boost for Chesterfield
Empty Grade II listed office and shop units in Chesterfield town centre could be transformed into a nine-apartment boutique hotel through a £1.02 million investment by Voeberg Hospitality.
The Sheffield-based company has submitted a change of use planning application to Chesterfield Borough Council to convert two former offices at 39 and 39A Holywell Street, and the neighbouring former hairdressers at 41 Holywell Street into apartments for holiday lets and use by business travellers.
The Grade II listed Georgian buildings – opposite the Holywell Cross car park and Northern Gateway Enterprise Centre – would be sensitively converted into one two-bedroom and eight one-bedroom apartments for use as short-stay accommodation and be called Holywell Hotel.
Emily Smith, director of Voeberg Hospitality, said: “The Holywell Hotel development offers an opportunity to bring a high-quality boutique apartment hotel to an area of Chesterfield town centre that needs investment to bring historic empty buildings back into everyday use.
“The location of the Northern Gateway, with its good links to Chesterfield railway station, offers the opportunity to attract visitors and business travellers wanting to visit the Crooked Spire in Chesterfield, as well as the Peak District National Park and South Yorkshire.
“While Chesterfield has existing hotels and B&Bs we believe there is an unmet need in the local market for a boutique apartment hotel of this type. We intend to work with other local businesses to create cross-promotional opportunities for the benefit of our guests.”
The plans submitted to Chesterfield Borough Council seek permission to make some minor structural alterations while predominantly keeping the overall layout of the three buildings. There will be considerable investment to repair the buildings, including restoring the sash windows, renovating the doors and conserving all the listed features.
Working alongside Covest Architecture and Planning and Design Group, each property would be converted to provide three self-serviced apartments, with a bedroom, kitchen, dining and bathroom facilities.
There will be access to an outdoor amenity space, cycle storage and laundry facilities.
Instead of having a traditional reception desk the properties will operate as a ‘smart hotel’ with self-check-ins, keyless entry and a digital portal which will provide guests with relevant information about their stay.
Emily added: “My husband, Ryan, and I began investing in property in Scotland five years ago. Last year, we took the decision to move our family and business to this area and have continued to invest and develop residential properties in Chesterfield.
“We chose to invest in Chesterfield because it is a growing and forward-looking place, while also being a historic market town. The people of Chesterfield have a very open and welcoming approach and seem keen to assist businesses that support the sustainability of the town centre.
“We look forward to making a contribution to that growth by bringing another part of the town centre back into active use through the development of Holywell Hotel.”
Image Scan reports return to first half profits
First half pre-tax profits have returned at Image Scan, the specialists in X-ray imaging for the security and industrial inspection markets.
According to interim results for the six months ended 31 March 2023, the firm achieved a profit before tax of £16,000, in comparison to a £345,000 loss in the same period last year.
Revenue at the Leicestershire-based company, meanwhile, was 85% higher at £1.4m, growing from £790,000.
Vince Deery, Chief Executive Officer of Image Scan, said: “We are pleased with the financial results for the first half of the year.
“The half year performance demonstrates a substantial improvement over the same period last year with the higher levels of activity reported at the commencement of the financial period successfully converted into contracts and delivery of product to customers.
“With careful cost management and continued improved market activity and product innovation we hope to maintain the momentum to deliver a full year in line with market expectations.”
The news comes as, as part of the Board’s succession plan, Dr Richard Leaver has stated his intention to resign as vice chairman, leaving the Board at the end of the financial year.
Mattioli Woods invests in Lincoln mortgage advisor
Mattioli Woods, the specialist wealth and asset management business, has acquired 50.1% of the issued share capital of White Mortgages Limited in a £425,000 deal.
The Leicester-based company has also entered into an option agreement with directors Steven White, Mark Sutton, and Robert White which entitles Mattioli Woods to acquire the remaining 49.9% of the firm, which would increase the deal value up to £2.625 million.
Founded in 2011, Lincoln-based White Mortgages specialises in providing independent mortgage advice, whilst also offering bespoke protection advice, and employs nine staff, all of whom will remain with Mattioli Woods following completion.
In the year ended 31 March 2023, White Mortgages generated revenues of £680,000 with a profit before taxation of £350,000.
Michael Wright, Group Managing Director of Mattioli Woods, said: “Our investment in White Mortgages is an exciting extension to our existing client proposition and is another step forward for Mattioli Woods as we continue to expand our operations.
“Over the past six-months we have seen significant changes in the economy, none more so than immediately after the Government’s mini-budget last September and the impact it had on the mortgage market, with a leap in mortgage interest rates, the withdrawal of many mortgage products and a rapid tightening in lenders’ underwriting criteria.
“By bringing Steve and his team into the group, we are better positioned to help those clients looking to finance a new property purchase or re-finance existing lending.”
Steven White, director of White Mortgages, added: “We are very excited to partner with a like-minded management team with high growth ambitions.
“The sale will help accelerate our growth plan by broadening our proposition with the support of Mattioli Woods. We will continue to place integrity; reliability and a commitment to excellence at the heart of our business.”
Derby City Lab secures lease extension
Derby City Lab, a space created to engage, inform and inspire people about plans to shape the city going forward, is set to continue after Clowes Developments, which owns the building, agreed a lease extension.
The venue, based in St James Street, first opened its doors back in July last year.
It is based on the concept of ‘urban rooms’, which have appeared in various cities around the world to help local communities better understand the evolution of their place and engage them in shaping its future.
Since opening, Derby City Lab has played host to a rolling programme of exhibitions focused on future pipeline projects and ideas, as well as events.
After its opening exhibition, which showcased plans by Down to Earth Derby for a nature-led regeneration of the city centre, the lab has hosted exhibitions by a range of organisations and businesses, including the University of Derby, Derby City Council and Culture Derby.
The lab has been made possible thanks to a partnership between Marketing Derby, the university, the city council, Lathams and Clowes Developments.
Amy Burton, inward investment executive at Marketing Derby and Derby City Lab lead, said: “We’re so thrilled to be able to continue the City Lab in its current home on St James’s Street in the heart of Derby city centre, to engage the people of Derby with its future.”
Kevin McFarlane, associate director at Clowes Developments, said: “As a long-standing landlord of properties in Derby city centre, we are pleased to be able to support the recent push to occupy empty premises by backing initiatives like this.”
Hortons’ Estate snaps up Joules’ Corby distribution centre
Hortons’ Estate Ltd has completed its second acquisition in a matter of weeks after securing a multi-million pound deal for the Northamptonshire distribution centre of retailer, Joules.The independent property company has acquired a 19.8 acre site on Oakley Hay Industrial Estate, Saxon Way West in Corby.The site comprises two distribution warehouse buildings totalling c.275,000 sq ft which are let to Joules. Additionally, there are c.3.2 acres of open storage land with development potential, which is currently let to TUTS (UK) Limited.James Slater of Hortons said that once the current leases come to an end, the company intends to significantly improve the existing buildings and develop further high-quality industrial/warehouse accommodation.Oakley Hay Industrial Estate is located in an established distribution area, just four miles south west of Corby town centre and benefits from road accessibility via the A43, with links to the A14 and M1 motorway.The acquisition follows Hortons’ recent multi-million pound purchase of Sinfin Commercial Park, an industrial and logistics estate near Derby city centre.James Slater said: “This is an excellent site in a strategic East Midlands location. It offers the prospect of future rental growth as well as being extremely well positioned for future development.“Over the next 24 months we will be carrying out a series of improvements to the existing buildings that will provide occupiers with grade A accommodation with enhanced sustainability, through the reuse of the main building elements. Our hope is that the site will retain existing distribution jobs in Corby and create new employment opportunities.“We are continuing to expand our investment and development portfolio in the Midlands, with a particular focus on high-quality industrial and logistics locations with development potential.”Hortons was advised by Antony Leech of TT&G Partners.
