Latest research from the Midlands branch of national insolvency and restructuring trade body R3 reveals a steady rise in the number of East Midlands companies with invoices overdue for payment.

The statistics, which are based on an analysis of data from business intelligence provider Creditsafe, show that over 26,800 East Midlands companies had overdue invoices in August, a figure which has risen steadily since April of this year.

The R3 report also indicates that monthly insolvency-related activities in the East Midlands have risen from 62 at the start of the year to 102 in August. These figures include liquidator and administrator appointments as well as creditors’ meetings, indicating the extent to which local companies may be struggling.

The region’s entrepreneurial spirit appears not to have been dampened, however, as there were 2,279 business start-ups in the East Midlands in August, an 8.0% increase on the July figure of 2,110 but a 7.2% decrease on the 2,457 at the beginning of the year.

R3 Midlands chair Eddie Williams, a partner at PwC in the East Midlands, said: “These statistics highlight the tremendous challenges facing local companies trading in this current economic climate. While the increasing number of start-ups in the region is positive, it is obvious that late payments are likely to be a significant threat as businesses deal with the significant inflationary challenges ahead.

“It is crucial for local business owners, whether in start-ups or established companies, to be on top of their invoice ledgers and tackle late payments and the impact of bad debts as soon as they become evident.

“For those businesses which are already struggling, or whose directors may be worried about its situation, the sooner professional advice is sought, the more opportunities may be available for finding the best possible outcome. Many R3 members offer a free consultation to those who are looking for such help and want to explore their options.”

Rcapital has completed the acquisition of Avonside Energy Limited, the insulation and solar PV service provider. Avonside Energy is a standalone division of the Avonside Group that entered insolvency proceedings last week. The transaction incorporates the Avonside Renewables business which has also been rescued by Rcapital as part of the deal. The acquisition has been a solvent deal and Avonside Energy is not part of the wider group insolvency. Headquartered in Leicester, Avonside Energy has a strong national presence with operations in the West Midlands, East Midlands, Glasgow, Leeds, Newcastle, Warrington and Stevenage. This transaction will ensure the preservation of over 100 jobs across the country. Avonside Energy will generate revenue of over £15 million this year and is profitable and cash generative. It employs over 100 skilled workers and is a key part of the new build supply chain, with major customers including Barratt Homes, Taylor Wimpey, Persimmon Homes, Redrow and Miller Homes. Rcapital is an experienced investor in the construction services sector, having previously owned Rock Roofing Contractors, Alsop Architects and Plowman Craven. This is Rcapital’s second construction services acquisition in the last two months. Rcapital has appointed experienced operator Nick Alexander as chairman to further strengthen the management team. Bill Rumble, Managing Director at Avonside Energy, said: “I’m delighted to confirm that agreement has been reached for Avonside Energy to be acquired by its management team with the support of Rcapital. This means it’s business as usual for Avonside Energy and the investment brought by Rcapital will mean we are in an even stronger position to make a major contribution towards the significant challenge our New Build customers face in satisfying the increased energy efficiency demands.” Chris Campbell, partner at Rcapital, said: “Avonside Energy is a profitable business and a significant employer across the country with an enviable blue-chip client base. We are delighted to be supporting Bill and his team and firmly believe that Avonside Energy will be integral to helping the UK achieve its decarbonisation strategy of net zero by 2050.” Kirstie Provan, partner at Begbies Traynor and joint administrator of Avonside Group Services Limited, said: “We are delighted to have completed the solvent rescue of the energy division of the Avonside Group, securing the preservation of a significant number of jobs and the future of the business. The purchase by Rcapital gives the business a solid platform from which to move forward, and we wish the management team every success.” Rcapital was advised by Browne Jacobson LLP. Begbies Traynor were advised by Pinsent Masons LLP.

Revenue has skyrocketed at Mattioli Woods, the wealth and asset management business, according to final audited results for the year ended 31 May 2022. The year saw revenue increase 72.8% to £108.2m, up from £62.6m in 2021. Alongside strong organic revenue growth, acquisitions made a positive contribution of £46.1m. Meanwhile profit before tax was up 56.9% to £8m, from £5.1m in the year prior. Ian Mattioli MBE, Chief Executive Officer, said: “The last financial year was another turbulent period for clients, which served to reinforce our commitment to putting clients first, developing our service offering and building a business that is sustainable and resilient over the long-term. “I am pleased to report this approach delivered strong revenue growth of 72.8% to £108.2m (2021: £62.6m) reflecting the positive contribution of recent acquisitions combined with 10.0% organic growth in our core business and increased levels of new business offsetting the impact of negative market movements on the value of clients’ assets. Adjusted EBITDA was up 88.4% to £32.6m (2021: £17.3m) and adjusted EBITDA margin increased to 30.1% (2021: 27.7%) representing meaningful progress towards our strategic goals.” He continued: “We plan to maintain this positive momentum, advancing our strategic initiatives: new business generation, growth through the integration of acquisitions, developing new products and services, reviewing our processes and investing in technology to deliver an improved client experience and further operational efficiencies. “Investment markets are likely to remain volatile for some time, although the spectre of rising inflation typically creates significant advice opportunities given our diverse revenue streams and for further investment inflows as existing and prospective clients consider appropriately investing surplus cash to avoid suffering an erosion in value of savings in real terms. “We will continue to seek to understand our clients’ needs and provide quality solutions, maintaining our focus on client service and continuing to adapt our business model to the changing market, integrating asset management and financial planning. “We further plan to build on our track record of successful acquisitions by continuing to assess and progress opportunities that meet our strict criteria. Consolidation within wealth management, asset management and SIPP administration is expected to continue for the foreseeable future, with many more opportunities coming to market. “I sincerely thank and remain humbled by the continued professionalism, commitment, endeavour and agility that our people have shown in managing our clients’ affairs throughout another challenging year. “The outlook for the new financial year remains positive, notwithstanding the continuing challenging macroeconomic conditions, and we continue to trade in line with expectations. As previously disclosed, cost inflation and progressing our strategic initiatives including investment in people and technology are expected to impact margins in the short term but will position us to secure future growth in revenue and profits. This will also provide opportunities to deliver future growth and sustainable shareholder returns as a business that is here for the long term.”

Gateley, the legal and professional services group, has posted strong audited preliminary results for the year ended 30 April 2022 (FY22), which continue the firm’s pre and post IPO unbroken record of year-on-year revenue and profit growth, and out-performed market expectations set at the start of the year. The company noted it has achieved significant organic growth and strengthened the business further through diversification and investment into new complementary service lines, while maintaining control on costs in the face of market specific and macro-economic headwinds. It added that the balance sheet remains strong and the group has significant headroom in its banking facilities to invest in further organic and acquisitive growth opportunities. During the year Gateley posted group revenue of £137.2m, up from £121.4m in the year prior. Profit before tax meanwhile hit £18m, up from £16.3m. Three earnings-enhancing acquisitions were completed in the period. Rod Waldie, CEO of Gateley, said: “I am delighted with the group’s performance in FY22. We have delivered another set of strong revenue and profit growth figures whilst continuing to strengthen our balance sheet. Legal services generated solid organic revenue growth, comparing favourably with reported UK legal industry performance. Our consultancy service lines delivered impressive organic growth of 26.7% resulting in overall consolidated group organic revenue growth of 10.9%. “I am particularly pleased that we completed three exciting consultancy acquisitions in the Period and achieved annualised consultancy revenue of over c.£32m as we continue to grow our complementary services, diversifying our offering and deepening our connections with our clients. “I thank our ever-expanding client base for their trust and support throughout FY22 and for giving us the opportunity to work with them on high quality mandates. We remain committed to our purpose of delivering results that delight our clients, inspire our people and support our communities. We have a good pipeline of work and maintain our expectations for growth in FY23, despite the well-reported inflationary pressures. We look forward to continuing to grow the group, both organically and via acquisition.”

Team17 group, the video games label with offices in Nottingham, Manchester, and Wakefield, has reported another solid performance in unaudited results for the six months ended 30 June 2022 (H1 2022). During the period, revenues grew 33% to a record £53.2m, up from £40.1m in the same period of 2021. Profit before tax meanwhile decreased to £11.2m from £14m. The business completed a number of “high quality acquisitions,” focused on broadening the group’s geographical footprint and operational reach, alongside adding high quality first party IP.

Debbie Bestwick, Chief Executive Officer of Team17 group plc, said: “We are pleased with the group’s first half performance, trading in line with our expectations. Our new acquisitions, led by our talented and committed management teams, have worked incredibly well together across all parts of the group, and we are all looking forward to a busy and productive second half.

“The group now has more evergreen first party IP’s than ever before, alongside a phenomenal back catalogue portfolio, and in StoryToys, a growing subscription revenue model. New releases include additions to many established franchises and licensed global brands as well as exciting new original IP’s that are tracking well. 

“Complementing our first half performance, we have made an encouraging start to the second half of FY 2022 and we remain confident about the group’s prospects going forwards.”