Foresight strengthens Midlands investment team with double hire
Foresight Group, a listed private equity and infrastructure investment manager, has strengthened its team in the Midlands with the appointment of two investment managers.
The new hires, Line Kristine Gauteplass and Irfan Ashfak, bring significant regional knowledge and insight to Foresight’s existing team.
Line has joined from Grant Thornton’s corporate finance division, where she spent five years advising mid-market companies across a wide range of sectors. Line has also worked for Mazars LLP and BNP Paribas.
Irfan previously worked for Midlands-based accountancy firm Magma, where he spent three years in its corporate finance team working on transactions in the recycling, engineering and software sectors.
Ray Harris, director at Foresight, said: “We are delighted to welcome Line and Irfan as we continue to support promising SMEs in the region. Foresight is committed to helping all economies thrive so it’s great to add extra ‘boots on the ground in the Midlands’.
“With experience in business investment, innovation and growth, Line and Irfan will provide tremendous value to business owners and management teams in the Midlands. We want to support SMEs to scale their companies, create high-quality, local jobs, achieve their ambitions and enable companies to help their local areas prosper.”
Line Kristine Gauteplass said: “I have worked in this region for six years and I know there are many small businesses with huge potential. I am delighted to have the opportunity to not only advise them but invest in and support them.”
Irfan Ashfak added: “Ray and the Foresight team have a great reputation for supporting entrepreneurial SMEs. I am excited to have joined them in the East Midlands and I am looking forward to working closely with local businesses and advisors in the region.”
As one of the most active SME investors in the UK – having made 82 SME investments so far in calendar year 2022 – Foresight has a strong presence in the East and South Midlands, where it is an appointed fund manager to MEIF, the Midlands Engine Investment Fund. Alongside this, since 2013, Foresight has managed a £39 million fund dedicated to Nottinghamshire and also makes VCT investments into the region; Foresight currently manages over £620 million in VCTs.
Since 2018, Foresight’s East & South East Midlands MEIF Equity Finance Fund has deployed more than £28 million into 28 ambitious small companies in the region.
Lincolnshire health and safety specialists acquired
PIB Group has acquired health and safety specialists Emprocom, who bring complementary services and expertise to the group’s risk management proposition.
Based in Lincolnshire and servicing clients further afield across the East Midlands, Emprocom will form part of the PIB Risk Management division.
The two businesses enjoy an existing relationship, which has led to the new collaboration. Carl Gryniewicz will continue in his role as director on completion of the deal, working closely with Adrian Robinson, Managing Director for PIB Risk Management.
Adrian Robinson said: “I have deep respect for Carl and his talented team, and I’m absolutely delighted to give them all a warm welcome to PIB Group. Their knowledge, expertise and passion for servicing clients will be a real credit to us.
“It’s very exciting to be able to join forces and work together along with our existing colleagues to continue building our market-leading risk management proposition.
“The team’s presence in the East Midlands will give an extra boost to our regional footprint and expand our client base, while providing them with access to an even broader range of products and services across our PIB Group family.”
Carl Gryniewicz, director for Emprocom, said: “This is an exciting step for Emprocom as we become part of PIB Group. Joining a like-minded organisation with a similar ethos and culture was an important characteristic in selecting a new home for our future.
“We were attracted to PIB because of their stability as well as a good alignment in long-term visions, customer focus and pride in achieving true satisfaction in helping clients. We look forward to the many opportunities ahead to leverage the expertise and scale of PIB, and also bringing our complementary skills to the ongoing success of the PIB Risk Management division.
“I’d like to say a big thank you to our loyal customer-base for their support, and we look forward to enjoying those relationships for many more years to come.”
IMA Architects makes senior promotions
IMA Architects (IMA), an architectural firm based on Lutterworth Road in Blaby, Leicester, has made changes to its management team that will see two longstanding members of staff promoted to senior positions within the company.
Former director, Anthony Day, has been promoted to Managing Director and Ben Hall, formerly an associate director, has been promoted to director. Ian McCann, who co-founded the practice in 1997 remains a senior member of the management team at IMA as a director.
Ian’s new role will see him focus on the marketing and business development functions of IMA with Anthony and Ben overseeing the successful delivery and management of client projects, alongside all other functions of the company.
New Managing Director Anthony Day joined IMA Architects in 2006 and was promoted to director in 2017. In 2013, Anthony achieved Chartered Status with the Chartered Institute of Architectural Technologists. With extensive experience across a broad range of projects, most significantly within the commercial and industrial sectors, Anthony has been instrumental in the recent growth of IMA, successfully securing and developing new clients for the company.
Commenting on his promotion, Anthony Day said: “I am very proud to be Managing Director of IMA Architects at what is an exciting time for the business. With numerous high profile client projects underway and the development of our own, UK first, technology with the IMA Digital Pods, I am looking forward to growing the company further and ensure that IMA is one of the best architectural companies in the UK.”
Director Ben Hall joined IMA in 2007 and graduated with a First Class BSc (Hons) Degree in Architectural Design, Technology and Production from De Montfort University in 2013. In 2015 Ben achieved Chartered Status with the Chartered Institute of Architectural Technologists. Over recent years, Ben has played a significant role in the development of new technologies within IMA, particularly Building Information Modelling (BIM) and has managed a number of high-profile client projects using BIM.
Ben Hall comments: “We are seeing an increasing number of our clients want to develop projects using BIM and this is certainly a growth area for us. I am delighted to now be a director of IMA and I am looking forward to further developing our expertise in BIM for the benefit of our clients and IMA as a whole.
“Both Anthony and I would like to thank Ian McCann for his continued support and guidance over the 31 years that we have been with the company. We are both looking forward to continuing to work along side Ian to drive the growth of IMA in the coming years.”
Resilience of Midlands’ mid-market businesses boosts BDO revenues by 11%
BDO has posted an 11% increase in revenues to £809m for the financial year 2021/22 with growth across all three of its service lines of audit, tax and advisory.
Announcing its results, BDO cited the reasons for growth as being the resilience of its core market of entrepreneurial, high-growth and mid-sized businesses in the face of difficult economic circumstances and the hard work of its people.
The firm has made significant investments in the business after BDO partners made the strategic choice, at the start of the year, to raise levels of investment.
In the Midlands, this includes moving to a prominent office building in the centre of Nottingham, cementing its commitment to the East Midlands market, a focus on improving audit quality, recruiting an additional 111 experienced people, promoting over 100 employees, committing to the recruitment of 48 trainees to start in the 2022/23 financial year, increasing salaries and investing in quality, new technology and digital applications.
Overall, an additional £70m was invested in people, quality and technology across the entire firm.
The decision to invest in additional people – taking the firm from 6,000 to 7,000 – was designed not only to deal with the increased demand for services but to also promote a healthier work-life balance by spreading workloads across more people.
As a result of the investments and the return to pre-COVID levels of costs, profit before tax was down 8% to £187m. While these high levels of investment mean a planned reduction in FY21/22 profit and partner pay, BDO believes that the focus on longer-term sustainable growth is the right decision.
Kyla Bellingall, Midlands regional managing partner at BDO LLP, said: “Our strong growth this year is down to the resilience of our core market of high-growth, entrepreneurial businesses, combined with the hard work and ability of our people. During such uncertain economic times, businesses like ours need to invest in skills to stimulate growth and, ultimately, the economy. We’re using the proceeds of growth to invest in our people, for the long-term, with an additional emphasis on wellbeing, work-life balance, quality and innovation.
“This is particularly so in the Midlands, where we have created a truly unique and inclusive space in our newly opened Nottingham hub in the heart of the city.
“We have also made a significant investment in senior talent with partner and director appointments, across areas such as VAT, forensic accounting, business tax, transaction services and business outsourcing. We remain 100% committed to rewarding those within our business who continue to deliver high-quality services to our clients and audited entities day in, day out.”
All three areas of the overall business – audit, tax and advisory – performed as expected in the 2021/22 financial year.
The national audit business posted revenues of £324m, up 17% on the previous year; with the firm-wide tax practice generating revenues of £199m – an increase of 3%; while BDO’s national advisory revenues grew by 10% to £286m.
Bellingall added: “The overriding theme of this and future financial results is the strong focus on the wellbeing of our people and the quality of our work to deliver controlled and responsible growth. That principle forms the basis of how we design, and invest in, our culture and governance.
“The global economy continues to be in a state of upheaval with extreme levels of uncertainty and volatility. Despite these conditions, our business has proven resilient and strong. We’re confident in our future, and firmly believe our investment will consolidate our market position and embed the highest standards of quality ahead of our next stage of growth.”
Joules on the cusp of rescue deal
The administrators of Market Harborough retailer Joules are on the cusp of a rescue deal with The Foschini Group, according to reports from Sky News.
The South African group, which owns brands such as Phase Eight and Hobbs, is said to be in advanced talks to take on three-quarters of Joules’ shops.
Hundreds of jobs, however, could be lost with the closure of the remaining stores.
The news comes after reports earlier this month indicated The Foschini Group had been in discussions with Joules for several weeks – ahead of it appointing administrators – with an offer of investing in the business in return for a substantial stake.
Will Wright, Ryan Grant and Chris Pole from Interpath Advisory were on Wednesday 16 November named joint administrators of Joules Group plc and Joules Limited.
At the same time, Will Wright and Ryan Grant were appointed joint administrators of Joules Developments Limited and The Garden Trading Company Limited.
Joules is one of the UK’s best-known retail brands, renowned for its premium, colourful clothing and homewear products, inspired by country living. Headquartered in Market Harborough, the group currently operates a total of 132 stores across the UK, employing over 1,600 people.
According to Sky News, a deal could be struck as soon as Wednesday.
Liquidators appointed to Nottingham Castle Trust
Following the recent announcement by Nottingham Castle Trust (‘the Trust’) that it was taking steps to place the Trust into liquidation, Tim Bateson and Chris Pole from Interpath Advisory were formally appointed as joint liquidators to the Trust on 29 November 2022.
The Trust is an independent not-for-profit charitable trust which managed and operated Nottingham Castle on behalf of Nottingham City Council. The popular tourist attraction in the heart of Nottingham city centre comprised historic caves, museum and exhibition galleries, welcoming over 100,000 visitors through its doors in the period since Summer 2021.
The Castle had recently undergone a programme of significant renovation and refurbishment works, and while visitor numbers were rebounding steadily following reopening in the summer of 2021, volumes were still below forecasts, which placed pressure on cashflow.
While the Trust was in active discussions with stakeholders to secure additional funding, these discussions were ultimately unsuccessful. After considering their options, the Trustees took the decision to seek the appointment of the joint liquidators. The Castle closed its gates to the public on 20 November 2022.
In addition, on 28 November 2022, Tim Bateson and Chris Pole were appointed joint liquidators to Nottingham Castle Services Limited, the 100% subsidiary of the Trust which undertook all non-charitable activities including retail and catering operations.
As a separate legal entity which solely operated in the grounds of the Castle, the Directors of Nottingham Castle Services Limited concluded that following the closure of the Castle to visitors, there was no viable alternative to liquidation and made an equally difficult decision to take the necessary steps to appoint joint liquidators.
The majority of the employees of the Trust were made redundant in advance of the appointment of the liquidators, and all remaining staff have been made redundant with effect from today.
Tim Bateson, director at Interpath Advisory and joint liquidator, said: “Dating back to the time of William the Conqueror, Nottingham Castle has been at the heart of the city for centuries, bearing witness to civil wars, royal coups, fires and floods. As a modern-day museum, it has helped to preserve the cultural heritage of Nottingham, hosting tours, exhibitions and supporting local schools and community projects.
“Immediately following our appointment over the Trust, we disclaimed the various leases and operating agreements back to Nottingham City Council. Whilst the Castle is now back under the control of the Council, we will be working proactively with them over the coming weeks to ensure that there is a smooth handover to give them the best possible chance of being able to reopen the Castle at the appropriate time.
“We will also be providing support and assistance to the employees to enable them to claim any outstanding statutory entitlements which they are due, as well as working to realise the remaining assets.”
No refunds are able to be made in relation to advance tickets, annual passes or booked events, but individuals in this position should notify the liquidators of any amounts that they are owed by writing to nottinghamcastletrust@interpathadvisory.com.
Leicester office property sold for £2.8m
Custodian REIT has disposed of a 16,941 sq ft office property in Leicester for £2.8m, in line with its most recent valuation.
Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Leicester-based company’s external fund manager), said: “This asset was acquired as part of the company’s IPO portfolio in 2014.
“It has been fully let since, delivering an average yield of 9% per annum but has seen no rental or valuation growth over our period of ownership and this trend is expected to continue.
“We expect to invest the sale proceeds in the company’s remaining assets which have greater prospects for income and capital growth, better supporting the Board’s objective of increasing dividends in a sustainable way and enhancing the portfolio’s environmental credentials.”
Training provider for Construction Skills Hub appointed
Chesterfield College and the University of Derby have been appointed as the training provider for the new Construction Skills Hub in Mastin Moor, which is set to provide specialist training for thousands of learners as part of the Staveley Town Deal.
The innovative Construction Skills Hub will provide a practical platform for construction training, careers activity and work experience on a live construction site in Mastin Moor.
Over ten years, the hub aims to provide training, careers insights, and work experience for over 5,000 learners.
Councillor Amanda Serjeant, Deputy Leader of Chesterfield Borough Council, said: “It’s fantastic to be able to announce that the college and university will be working together to support this project. As well as providing support for trade skills, this partnership provides the opportunity to progress to a university level and develop the skills needed for roles like quantity surveyor or estimator, ensuring that everyone in Staveley can start, stay, and grow in the town.
“I look forward to working with them and our partners the Devonshire Group to progress the development of the Hub and start welcoming learners in Autumn 2023.”
A site has already been identified for the Construction Skills Hub in collaboration with the Devonshire Group, which will be bringing forward a new housing development in Mastin Moor. This will allow trainees to develop their skills on a live housing site, and in time there will also be opportunities to gain experience on other Staveley Town Deal construction projects.
Andrew Byrne, Property Development Director for Devonshire Group, said: “When I first saw the concept of a Construction Skills Hub and was asked if we could help deliver one for Chesterfield, my resounding response was yes, and I know just where.
“Devonshire Group are deeply committed to offering opportunities for learning and skills development, and to making a real difference to the lives and employment prospects of those in our communities, so we are delighted to be able to assist the Council in providing a home for the Skills Hub. Supporting the next generation of people who will help create our built environment is something to be truly proud of.”
Initially the Skills Hub will provide training in site and bench joinery, brickwork, ground works and electrical installation but in time the offer will expand to include training in retrofit and green technologies. It will be open to school leavers and other residents seeking to train or retrain.
Gavin Varley, Director of Advanced Engineering, Building Technologies and Construction at The Chesterfield College Group, explains: “We make a commitment to our students to not only provide them with the skills and qualifications they need, they are just the start, but with the work experience and industry knowledge that gives them the clarity of how and where to progress their career for years to come. We’re delighted to be a partner of this project as it comprehensively addresses this wider student experience, we commit to providing for all.”
Professor Chris Bussell, Pro Vice-Chancellor Dean of the College of Science and Engineering at the University of Derby, said: “We are delighted to have been appointed the training provider, alongside Chesterfield College, for the new Construction Skills Hub, which will provide real-world learning opportunities to thousands of people looking to embark on a career in the construction industry or develop their skills so they can progress onto new roles.
“The Hub will enhance the existing construction training offer by providing the opportunity for local learners to develop their skills in a live on-site centre. Our ambition is for this to be ground-breaking, delivering a model that builds on the innovative approach of other such centres, and we are looking forward to developing our relationship with Chesterfield College as well as working with prominent private sector companies on this exciting project.
“As a Civic University, we are committed to supporting the city and county’s long-term economic growth and prosperity, improving the life chances of people, developing a pipeline of talent that choose to live and work in the area, and addressing the skills gap through our involvement in initiatives such as the Construction Skills Hub.”
Working on a live construction site will not only allow learners to develop the skills they need, but it will also provide practical experience and help provide a link to construction companies where they could find permanent roles.
Staveley is set to benefit from £25.2 million of investment through the Town Deal with the aim to create a town where everyone can start, stay and grow. This investment will support eleven different projects across the town and provide a once in a lifetime opportunity to help shape the future by improving transport links, creating new housing, providing skills for local people, enhancing community facilities, and regenerating the town centre.
East Midlands business confidence rises in November
Business confidence in the East Midlands rose three points during November to 12%, according to the latest Business Barometer from Lloyds Bank Commercial Banking – conducted between 1st-15th November, before the Chancellor’s Autumn Statement announcement on Thursday the 17th November.
Companies in the region reported lower confidence in their own business prospects month-on-month, down three points at 19%. When taken alongside their optimism in the economy, up 10 points to 5%, this gives a headline confidence reading of 12%.
East Midlands businesses identified their top target areas for growth in the next six months as evolving their offering (38%), investing in sustainability (35%) and investing in their teams (35%).
The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
A net balance of 22% of East Midlands businesses expect to increase staff levels over the next year, up six points on last month.
Overall UK business confidence fell five points during November, but remained positive at 10%. Firms’ outlook on their future trading prospects was down two points to 25%, and their optimism in the wider economy dropped four points to -2%. Despite a seven-point dip, UK businesses remained positive about hiring intentions with 14% of firms aiming to create new jobs in the next 12 months.
All UK regions and nations, apart from the South East, reported a positive confidence reading in November, with seven recording a month-on-month increase in confidence. Of those recording an increase in confidence, Scotland (up 19 points to 24%), Wales (up 12 points to 17%) and the South West (up nine points to 5%) saw the largest monthly changes, with Scotland now the most optimistic overall.
Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “It’s great to see confidence among East Midlands firms back on the rise this month, despite the many challenges they continue to face, not least with ongoing supply chain issues and difficultly accessing the skills they need.
“As businesses look ahead to the New Year, many are primed to invest in sustainability to drive growth, with more than a third in the region listing this as one of their top priorities for the coming months. We’re here to help as businesses look to unlock the opportunities that Net Zero can bring.”
Business confidence in retail increased to 15% (up from 9%), perhaps reflecting a renewed confidence in trading prospects ahead of the festive season. However, business confidence in the manufacturing sector fell for the sixth month in a row, to 4%, down 9 points, the lowest confidence level since early 2021. The construction sector held gains made in October, remaining unchanged at 20%, although this level still remains weaker than in the first half of the year.
Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “Given the recent political and economic landscape, it comes as little surprise that economic optimism and business confidence have fallen this month. Pay growth expectations remain high by historical standards, which could signal ongoing difficulties ahead for businesses to fill vacancies. Looking ahead, it will be interesting to see if the clearer policy picture provided by the Autumn Statement will lead to business confidence moving in a more positive direction as we go into 2023.”
Local businesses give seal of approval for proposed improvements to rail route
Local businesses employing over 32,000 workers across the region have given a seal of approval for proposed improvements to the Coventry-Leicester-Nottingham rail route.
Midlands Connect conducted a business survey last month that showed staff at 70% of the local businesses surveyed mostly travel to work by car, with staff at a further 17% mostly commuting to work via train. However, 66% of local businesses surveyed said if the train line between Coventry, Leicester, and Nottingham is reconnected, employees would use it more.
Businesses thought the proposed improvements would benefit their operations, with 82% of firms saying it would make it easier to recruit, 73% expecting it would allow them to meet new customers, and 61% believing it would help their business to grow.
Of the businesses surveyed, 93% stated they and their employees would benefit from Coventry, Leicester and Nottingham being more closely connected, and 95% said reconnecting the rail line and improving local train service would support the Government’s Levelling Up agenda.
Midlands Connect’s plans would reinstate direct rail services between Coventry, Leicester and Nottingham for the first time in two decades, creating over 2 million extra seats on the region’s rail network every year.
The improvements would introduce two new trains each hour, also calling at Loughborough and East Midlands Parkway, alongside plans to improve line speed along the route, making journeys faster.
Currently, passengers travelling along the corridor have to get off one train at Nuneaton station, change platforms and board another, culminating in a slow, inconvenient service. Because of this, just 3% of trips between Coventry and Leicester are made by rail, compared to 30% of trips between Coventry and Birmingham, which enjoys a regular, fast and direct rail connection.
Commenting on the survey, Andy Clark, senior rail programme manager at Midlands Connect, said: “The results are overwhelming and show that businesses in Coventry, Leicester & Nottingham want to see improved rail services. They see this investment as an example of levelling up their area and helping their economy to grow.
“What the survey also showed is faster and more frequent trains will save businesses money, allow them to recruit more people and grow.
“We will use these results as part of our strategic case for investment in the corridor and I want to thank all the firms and organisations who took part in the survey.”
Sir Peter Soulsby, Leicester’s City Mayor, welcomes this enormous show of support from the business sector for direct trains again linking Coventry with Leicester. He added: “The survey results add to the already overwhelming case to reconnect the railway between these two major cities and help to reduce the reliance on the car.
“This project is important to both the local and regional economies and the Government is urged to press on with project development work as a priority within their rail programme.”
