Plans in for new public garden and entertainment space in Derby
Gleeds secures role on STEP fusion programme
Property and construction consultancy Gleeds has been commissioned via Perfect Circle to deliver procurement, commercial, and cost management services to the United Kingdom Atomic Energy Authority’s (UKAEA) ground-breaking Spherical Tokamak for Energy Production (STEP) programme.
Property, construction and infrastructure consultancy Perfect Circle was appointed to support STEP with the delivery of this ambitious programme which sets out to explore the options, challenges, and solutions for accelerating fusion delivery, by bringing on board partners who will engineer and construct the prototype fusion energy plant, capable of producing net electricity.
The plant will be located at the West Burton power station site in Nottinghamshire and will demonstrate that fusion energy can be used to deliver net electricity to the grid, paving the way for future commercial energy plants to be commissioned and constructed.
One of Perfect Circle’s founding partners, Gleeds will initially be responsible for providing comprehensive procurement services to support the selection and on-boarding of STEP’s whole plant partners through a complex procurement process.
Andy Ellis, global head of energy at Gleeds, said: “Gleeds is delighted to support the UKAEA STEP programme in delivering its prototype fusion energy plant. This is an incredibly exciting project; not only does it demonstrate viable net energy production, but it also represents an important opportunity for the UK to maintain its role as world leader in fusion technology.
“Fusion will play a hugely important role within the UK clean energy transition as we seek clean, sustainable, low-cost energy sources to replace fossil fuels, and has the potential to generate almost limitless clean energy for future generations. I am delighted that Gleeds’ extensive expertise in the energy sector has secured us a place on the team to support the procurement of future partners.”
Perfect Circle and Gleeds’ work on the project will be supported and accelerated forward through the SCAPE Consultancy framework, which helps to drive collaboration, efficiency, time and cost-savings.
Victoria Brambini, Managing Director of Perfect Circle, added: “I’m delighted that our founding partner Gleeds will be delivering this truly ambitious scheme for the UKAEA. The Government-backed STEP programme will bring the site of this former coal-fired power station back to life, creating thousands of jobs during construction and operation, and undoubtably attracting other high-tech industries to Nottinghamshire in the process.”
Mark Robinson, group Chief Executive at SCAPE, said: “We are proud to be collaborating with Perfect Circle and Gleeds on this ground-breaking project, helping to accelerate the scheme forward. As we move closer to the government’s net zero by 2050 target, projects like these are significant in demonstrating how clean power production can be delivered effectively and sustainably to support many future generations to come.”
Sarah Palmer, STEP strategic procurement manager, said: “We’re pleased to be working with Gleeds in support of the highly complex procurement of whole plant partners that will work with us through design and construction of the prototype plant.
“Fusion energy has great potential to deliver safe, sustainable, low carbon energy for generations to come. It is sometimes described as the ultimate energy source and is based on the same processes that power the sun and stars.”
This is Gleeds’ second win for the UKAEA, having been named one of just six organisations appointed to its existing Project Delivery Services Framework, which aims to bolster the range of expertise across the UK’s world-leading fusion energy programmes.
Nottingham contractor files for administration
A Nottingham-based contractor has filed for administration, ceasing trading on Monday.
According to Construction Enquirer, roughly 30 staff are expected to lose their jobs at DAKO Construction.
Established in 2018, the company expanded into London in 2021.
Quoting a letter to staff, Construction Enquirer highlights the firm’s founder and Managing Director Assan Hussain as saying that dealing with COVID-19, a recession and soaring material prices, as well as recent non payment from certain clients has made its situation untenable.
Strong trading momentum continues at Leicester online electrical retailer
Marks Electrical Group, the Leicester-based online electrical retailer, has seen continued strong trading momentum with improved profitability in the nine months ended 31 December 2022.
According to a trading update, revenue grew 22% to £72.9m, up from £59.8m in the same period of the prior year.
Strong performance was driven across product categories, according to the firm, but particularly in A-rated energy efficient laundry appliances, televisions, refrigeration and small domestic appliances.
Mark Smithson, Chief Executive Officer, said: “I am proud of the entire team at Marks Electrical for delivering a record quarterly performance, with year-on-year growth of 33.4% against a tough economic back-drop. This further demonstrates the resilience of our business model and the attractiveness of our market-leading customer offering, which more people are discovering up and down the country.
“To continue our focus on growing brand awareness, we further invested in highly targeted television, radio and out-of-home campaigns over the Black Friday and Christmas sales peaks. This led to increased website traffic and broad-based revenue growth across the UK, but with particularly strong improvements year-on-year in London, South East England and the East Midlands.
“We’ve worked closely with our suppliers throughout the quarter, enhancing our position as a growing, but agile, national retail partner of choice. As supply has stabilised during the last 12 months, we have been able to capitalise on our strong net cash position to enhance our inventory range and product availability, further improving our offering for customers.
“After an improvement in profitability in the third quarter, we look forward to maintaining our performance management discipline on revenue, profit and cash in order to achieve our full year targets and continue to demonstrate our differentiated proposition.”
Shoe Zone hails “a very positive year”
Shoe Zone has experienced “a very positive year” with revenue and profits rising.
In audited results for the 52 weeks to 1 October 2022, the Leicester retailer posted revenue of £156.2m, up from £119.1m in the prior year. This saw store revenue grow to £129.8m from £88.6m, while digital revenue dipped to £26.4m from £30.5m.
Profit before tax sat at £13.6m, up from £9.5m.
Shoe Zone ended the period trading out of 360 stores, having closed 63 stores, opened 13 new stores and converted a further 11 existing stores to new formats.
Anthony Smith, Chief Executive, said in a statement: “Shoe Zone had a very positive year due to trading for the full 52 weeks, strong trading over our key back to school period and due to the incredible hard work from our teams. These increases are primarily due to the increased revenue and resultant gross profit generated in a normalised trading period post pandemic.”
Record half year sales performance for Games Workshop
Games Workshop has delivered another record half year sales performance. However, having set itself a higher sales growth goal, the record number, “isn’t where [it] wanted to be,” thanks in particular to flat sales in the US.
According to results for the 26 week period to 27 November 2022, revenue grew to £226.6m, up from £211.6m in the same period last year.
Profit before tax at the Nottingham firm meanwhile dipped to £83.6m from £88.2m.
Kevin Rountree, CEO of Games Workshop, said: “Games Workshop and the Warhammer hobby are in great shape.
“Another rewarding and successful period for the global team with core sales for the six months of over £200 million for the first time.
“We will continue to focus on making the best miniatures in the world, sign new licensing contracts with partners to exploit our IP outside of our core business and support our staff. I’m so proud of their considerable hard work and commitment, thank you all.”
2023 Business Predictions: David Santaney from WestBridge Group
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to David Santaney from WestBridge Group which provides specialist tax and SSAS administration services to business owners and professional advisers.
Most predict a bleak economic outlook for 2023 with help being sought from any quarter. One area of predicted growth however is within the Small Self-Administered Scheme (SSAS) pension arena.
SSAS has become the forgotten pension product in recent years following the rise in popularity of the better-known Self Invested Personal Pension (SIPP). The SSAS offers all of the same features in that it can acquire the premises from which a business trades (allowing the payment of rent into another pocket of the business owners wealth) but has one key advantage – it can lend money back to the founder employer.
With interest rates on the rise, obtaining or renegotiating borrowing terms from the high street lenders may become problematic. A SSAS can lend up to half of its value back to the business to assist cashflow or fund special projects. The interest rates should be commercial but usually there are no up-front arrangement fees and interest when paid is routed back into the pension fund rather than to a third-party lender.
A SSAS can also acquire the premises from which a business trades. The release of capital to the business might be opportune in the predicted environment and control of the premises is not lost as it becomes an asset of the SSAS.
Unlike SIPPs which are a regulated product of the pension provider, a SSAS is controlled by its trustees, almost always the scheme members themselves. With these features, the re-emergence of SSAS as the preferred pension vehicle of choice for business looks likely.
Plans submitted for £14m, 50 home development in South Normanton
Housebuilder Honey has submitted plans to deliver a £14m development comprising 50 new two, three and four-bedroom homes in the village of South Normanton, near Alfreton.
Called Amber and located on Lees Lane, if planning is granted the 4.5-acre development will be the Sheffield-based housebuilding company’s first in Derbyshire.
Amber will feature 14 housetypes which Honey says have all been specifically designed to combine “style, substance and sustainability” for the benefit of buyers. Prices will start from £184,950 for a two-bedroom mid-terrace home.
If given the go ahead by Bolsover District Council, work at Amber is anticipated to start in spring with the first residents expected to move into their new homes this December.
As well as providing new homes for the area, if planning is granted, Honey will also make a £160,000 contribution to initiatives that will benefit the local community.
Honey was founded by former Avant Homes CEO, Mark Mitchell. He said: “We have worked very hard to ensure all our homes will provide buyers with an ideal combination of style, substance and sustainability.
“We know there is strong demand for high quality, high specification new homes in South Normanton so we are pleased to submit our plans for consideration by Bolsover District Council.”
Furnley House make key new hire
Leicestershire independent financial adviser firm Furnley House have strengthened their Protection offering with the recruitment of Darren Bradbury.
Furnley House was founded in 2013 to provide high quality solutions to individuals, families, business owners, and corporate clients, helping them work towards and achieve their goals.
Darren has over 25 years of expertise in Financial Services and joins as a protection specialist.
Stefan Fura, Managing Director at Furnley House, said: “Darren coming on board supports Furnley House’s planned growth as well as our goal of helping clients in every stage of their life.
“His values really tie in with ours and we’re delighted to have him as part of our team going forwards.”
Darren Bradbury said: “Having been self-employed for a few years, it would have taken an amazing opportunity to return to being employed, and that is exactly what Furnley House has offered me.
“Coming from Leicester myself, I am very excited to be joining a local company that shares so many of my values. Both mine and Furnley House’s focus is always on the client, and I’m looking forward to supporting more people with their protection needs.
“I was also attracted by Furnley House’s strong charitable ethos. They have helped and improved the lives of so many people over the years through the Furnley House Foundation and I’m looking forward to getting involved with this as well as continuing my own charity work.
“I am so thankful to everyone involved for the opportunity and cannot wait to get started!”
Government unveils new “Energy Bills Discount Scheme” for businesses, scaling back support
A new, scaled back, energy scheme for businesses, charities, and the public sector has been confirmed ahead of the current scheme ending in March. The new scheme will mean all eligible UK businesses and other non-domestic energy users will receive a discount on high energy bills until 31 March 2024, rather than costs being capped.
While some have welcomed the news, others critiqued the plan as being out of touch, a disappointment, and catastrophic.
Government says it will help businesses locked into contracts signed before recent falls in the wholesale price manage their costs and provide others with reassurance against the risk of prices rising again.
The government provided a package of support for non-domestic users through this winter, worth £18 billion per the figures certified by the OBR at the Autumn Statement. This is equivalent to the cost of an increase of around three pence on people’s income tax.
The new scheme has a cap set at £5.5 billion.
The Chancellor of the Exchequer, Jeremy Hunt, said: “My top priority is tackling the rising cost of living – something that both families and businesses are struggling with. That means taking difficult decisions to bring down inflation while giving as much support to families and business as we are able.
“Wholesale energy prices are falling and have now gone back to levels just before Putin’s invasion of Ukraine. But to provide reassurance against the risk of prices rising again we are launching the new Energy Bills Discount Scheme, giving businesses the certainty they need to plan ahead.
“Even though prices are falling, I am concerned this is not being passed on to businesses, so I’ve written to Ofgem asking for an update on whether further action is action is needed to make sure the market is working for businesses.”
From 1 April 2023 to 31 March 2024, eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill, except for those benefitting from lower energy prices.
A higher level of support will be provided to businesses in sectors identified as being the most energy and trade intensive – predominately manufacturing industries. A long standing category associated with higher energy usage; these firms are often less able to pass through cost to their customers due to international competition. Businesses in scope will receive a gas and electricity bill discount based on a supported price which will be capped by a maximum unit discount of £40.0/MWh for gas and £89.1/MWh for electricity.
East Midlands Chamber Chief Executive Scott Knowles said: “Businesses have been desperately seeking some certainty ahead of the new financial year, so the Government’s announcement of a two-year provides some clarity about the road ahead.
“Scaling back the support towards energy costs will be a blow for many firms, however, as the cost-of-doing-business crisis that has thwarted them over the past year has been driven predominantly by escalating energy prices that remain at sky-high levels.
“While it was anticipated that support would decrease, this will nevertheless squeeze many companies that are already fighting cost pressures from across the board – also including people, raw materials and fuel – and ultimately affect their ability to invest.
“This should be of great concern to Government given that our Quarterly Economic Survey showed investment intentions for both plant and machinery, and people, among East Midlands firms declined throughout 2022 as confidence nosedived.
“We know the energy crisis is predominantly the result of global headwinds but there is more Westminster can do to restore business confidence by looking at the barriers to business success that we can control.
“We need to ‘get the basics right’, as we have outlined in our regional Business Manifesto for Growth, A Centre of Trading Excellence, by cultivating a wider business ecosystem geared around supporting success.
“This should focus on incentives to invest in people, support certainty for firms by developing a long-term approach to business taxation and regulation, and ensure businesses and communities are digitally and physically connected locally and with the wider world.”
Tom Thackray, CBI director for Decarbonisation Policy, said: “The extension to the scheme will provide respite for many firms at the start of the year and help them plan ahead for the next 12 months with more certainty.
“It’s unrealistic to think the scheme could stay affordable in its current form, but some firms will undoubtedly still find the going hard. The Government has done much to protect businesses through the energy crisis. It must remain open, flexible and pragmatic in its approach to volatile wholesale energy markets as the year unfolds.
“Heavy energy users and those exposed to global trade are among some of the most impacted in the current crisis, so the additional support for these firms is a particularly welcome step.”
Martin McTague, national chair of the Federation of Small Businesses (FSB), said: “Today’s decision to all but eliminate help through the Energy Bill Relief Scheme (EBRS) is a huge disappointment for small businesses. For those struggling, the discount through the new version of the scheme is not material. Many small firms will not be able to survive on the pennies provided through the new version of the scheme.
“This is so out of touch. Two pence off a kWh of electricity and half a pence off gas is totally insignificant for small businesses, despite costing billions to the taxpayer. The Government will inevitably have to come back.
“The current EBRS scheme provides certainty for a small business owner over their rates, and has made a material difference to the survival of many small businesses. The replacement scheme will do neither.
“While the New Year should be a time of optimism and excitement, 2023 looks like the beginning of the end for tens of thousands of small businesses, which have been relying on the government energy support to survive this winter.
“In addition to the withdrawal of the vast majority of support to cope with high energy prices, this decision also risks stoking inflation as small businesses bills rise, but their prices will rise at the same time. The EBRS original scheme suppressed inflation by 5% points, but this has been cancelled, today. Slashing support will drive higher inflation, just as we enter a recession.
“Our latest research shows one in four small firms anticipate either closing, downsizing, or radically changing their business model when the Government reduces energy support after March. Five days after the Prime Minister’s pledges to restore optimism and hope and grow the economy, small firms will feel let down by the Prime Minister’s decision to call in the scheme decision planned for December, and cutting back the scheme to such a minimal state.
“What’s certain from this catastrophic move is there’ll be a cliff edge after March. The small fish and chip around the corner, your local pub, and the family-run independent laundrette – all will see much higher bills. That’s on the Government.
“Gambling that wholesale energy prices will continue to fall this year is transferring the risk of further energy price shocks to small businesses. Think of the children’s nursery in East Sussex which saw its energy prices reduce from £1,200 to £600 per month by the EBRS and the small engineering company in Leicester which is facing a 500% increase in gas bills – they will have no way to mitigate a sharp jump in energy costs.
“Dividing the scheme into two tiers is sensible, but not so that the tier of support for any small businesses lighting or heating premises, or using freezers or ovens, has been set so low as to mean support diluted to such a feeble level. It would have been better value for money for small firms if the £2bn cost of their element of the scheme had been used to improve energy efficiency, to reduce the need for energy from the grid.
“The Government said that taxpayers cannot prop up failing or unproductive firms, which is insulting to many small business owners struggling this winter.
“Since the onset of Covid, we’ve lost half a million small firms. Allowing more well-run businesses to go under would be a false economy. But with this absurd degraded Energy Bills Discount Scheme, it looks like we’re getting there.”
