Frasers Group to invest £600m in new distribution centre and offices
Frasers Group is looking to invest £600m in a new distribution centre and offices in Coventry over the next ten years, the retailer has revealed.
Subject to planning, the proposals are said to be in support of Frasers’ continued growth and ambition.
The Shirebrook-based company, which owns household names such as Sports Direct, House of Fraser, and Game, has recently purchased the site for this development, which follows its acquisition of Coventry Building Society Arena.
It comes after Frasers earlier this year announced major investment plans for a Global Headquarters Campus at Ansty in Rugby, Warwickshire, raising questions over the future of the firm’s current Shirebrook base.
Yesterday the businesses reported a “robust set of first half results,” with group revenue of £2.6bn, up from £2.3bn in same period last year, while reported profit before tax hit £284.6m, up 53% from £186m.
Autumn Statement changes to R&D tax reliefs – how do they affect SMEs and large companies? By Luke Prout, corporate tax partner at Streets Chartered Accountants
Luke Prout, corporate tax partner at Streets Chartered Accountants, offers a summary of the changes to Research and Development Tax Credits in the Autumn Statement.
The Autumn Statement included a number of changes to Research and Development Tax Credits, and in particular a significant scaling down for Small and Medium Sized Enterprises (SMEs) of the generous reliefs available for undertaking qualifying Research and Development (R&D).
Whilst R&D by larger companies has been significantly enhanced by the tax credits, the scheme’s application by SMEs has deemed to be less than effective or satisfactory, with in many cases it being misused, even abused, by those it seeks to support. As a result the Chancellor has reduced the level of relief available to SMEs for undertaking R&D.
The scaling down of the reliefs was perhaps to be expected based on the projection that without reform the cost of providing the relief could double to almost £9bn by 2027 and that such a financial commitment could perhaps not be supported or justified at a time when the Chancellor is seeking to address a £55bn black hole. It is also the case that earlier this year, Prime Minister Rishi Sunak promised reforms when he was Chancellor, saying that in spite of spending “huge and rapidly growing sums” on the scheme it was not doing enough to boost growth. In part this may have a large impact for smaller businesses, to allow them to receive cash funding for undertaking R&D.
In contrast the separate R&D tax relief scheme for large companies was actually enhanced in the Autumn statement to provide larger companies increased benefits. Perhaps this is the starting point for the two schemes to eventually be merged into a combined singular scheme, which means we probably have not seen the end of these changes and there may well be amendments in next year’s Budget and/or Autumn statement.
Summary of changes
SME Scheme
From April 2023, businesses classed as an SME will no longer receive an uplift of 130% for every £1 spent, instead this will reduce to 86% and for loss making companies that can sell (surrender) their losses to HMRC, the repayable credit will be reduced from 14.5% to 10%.
However, bear in mind, that the Corporation tax rate from April 2023 changes from 19% to 25%, so it would be expected that the repayable tax credit would be reduced based on previous changes in the rate of Corporation tax (albeit it has never been consistent).
For profit making SMEs this is a reduction of 11% and for loss making SMEs this is a reduction of around 15%.
Large Scheme
This is aimed at large companies, groups and certain SMEs that receive grants or are subcontracted to carry out R&D. The calculation is slightly different, and in general, there is a 4-5% increase in the benefit for large companies, and one would expect this to be increased further next year to eventually align the two schemes.
What should businesses be considering now?
If you are an SME facing a reduction in the level of R&D tax relief you will be able to receive post 6th April you may want to consider making a claim before March 31st 2023.
If you are classed as a large company and undertaking qualifying R&D you may want to defer submitting a claim until the start of the new financial year in April 2023 so ensuring you optimize the value of the relief received.
If you want advice and guidance about either your eligibility for making a claim and/or assistance in preparing and submitting a claim, we strongly advise you to contact a tax specialist who is experienced in R&D reliefs such as a corporate tax partner at a firm like Streets Chartered Accountants.
See this article in the December edition of East Midlands Business Link Magazine here.
2023 Business Predictions: Reshma Sheikh, chairperson, Octavian Security UK
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 Reshma Sheikh, chairperson at Octavian Security UK.
My key concerns (like many others) for the UK economy next year are: rising inflation, high interest rates and the threat of global recession.
Like many other sectors, the security industry is also dealing with a post-Brexit recruitment crisis. According to latest research more than 20,000 officers have been lost due to retirement and departures following Brexit and Covid-19.
The British Security Industry Association reports the security industry will need to recruit, train and license more than 62,000 new security officers in the next 12 months to meet the growing demand for security services.
That said, I’m hopeful that the industry will survive these challenging times.
Security services are sometimes considered a necessary evil, required by insurance companies. However, the risks posed have increased due to opportunists, as well as sophisticated networks of criminals gangs targeting assets on sites and high value personal goods. We have seen a growing demand for our services. The need to keep assets and people safe has grown.
I believe that, in 2023, the industry will evolve and the historic perception of security guards will change. There will also be greater diversity – which can only be welcomed.
Transatlantic exchange proves big success for local accountancy firm
Nottingham-based accountancy firm Page Kirk recently welcomed American accountant Alexandra Baron for a three-month secondment, as part of a work exchange programme.
While she swapped the sunny beaches of California for the East Midlands, her counterpart Tom Johnson flew out to San Jose to experience life with firm Wheeler Accountants.
The transatlantic trips were all part of a scheme made possible by Accelerate and CPAmerica, a community of accountancy firms with international coverage through Crowe Global. They provide an opportunity for qualified accountants to widen their experience and knowledge and gain valuable new perspectives on the work they do for clients.
Tom graduated in 2017 with a first-class degree in Accountancy & Finance from Nottingham Trent University. Having joined Page Kirk, he was due to be part of the exchange back in 2020, after he successfully completed the firm’s graduate programme, but the trip was postponed due to Covid travel restrictions.
He says: “The US secondment has been a once-in-a-lifetime experience and something I’m extremely grateful to Page Kirk for arranging it. Being part of a foreign work culture has allowed me to develop professionally and personally. I will be able to integrate the techniques and tips I learned out there into my day-to-day work now I’m back in the UK.
“Furthermore, the professional connections I have made across the Atlantic can only be a positive for my career. I had high expectations before I left for California, but I can say the whole experience has definitely exceeded them!”
Tom saw sites including Yosemite, Monterey, and Santa Cruz on his travels. An avid sports fan, he also jumped at the opportunity to take in Sharks ice hockey, 49ers football, Giants baseball, along with Warriors and Clippers basketball games.
After working at Wheeler Accountants, he took advantage of being in America and travelled for a couple of weeks and saw San Francisco, Los Angeles and Las Vegas.
Graduate of California State University Monterey Bay, Alexandra Baron, says: “The work exchange programme has been a great experience. Before coming to Page Kirk, I didn’t know what to expect. I was excited to be visiting the UK for the first time and kept my mind open to the possibilities. I have made great connections, learned how another firm runs, and have many ideas to bring back home.”
Alexandra is planning on travelling round Europe after she finishes working at Page Kirk and then returning home to California just before Christmas.
James Haywood, partner at Page Kirk, says: “As a firm, we are delighted with the positive outcome of the exchange programme. I was part in the exchange in 2017 where I worked and lived in Boston, Massachusetts for three months. It was once-in-a-lifetime experience and it helped me develop as a person and a business leader.
“It has been great having Alexandra here for the last three months. She has been eager to learn, got to know people, both professionally and socially, and been an asset to the Page Kirk team.
“It has also been a fantastic experience for Tom, who has come back with ideas from his experience, as well as strengthening his knowledge and understanding of multi-national groups and US GAAP accounting standards.
“It helps us stand out among independent East Midlands accountancy firms and creates a positive atmosphere in the office. It’s certainly a talking point among younger members of the team and when we come to recruit new graduates.
“I also see this as a means of extending our team’s international audit experience to support our clients with international connections. We look forward to working with Wheeler Accountants in the future.”
Page Kirk’s graduate scheme is now open for applications. Find out more here: https://www.pagekirk.co.uk/about-us/recruitment/graduate-scheme
National building consultancy relocates Nottingham office
National building consultancy company CPW has let the second floor at The Imperial Buildings in Nottingham.
The offices had been previously occupied by a local architect’s practice for a number of years and therefore required a full modernisation programme.
FHP Property Consultants advised its clients to undertake a comprehensive refurbishment of the space that would be suitable for the needs of occupiers going forwards post-pandemic.
The new fit out included exposed services, feature drop down LED lighting, brand new heating/cooling system, a full refurbishment of the WC’s/shower facilities with a strip out of the partitioning to return to open plan and redecoration/new flooring finishes.
CPW have now improved on this further, installing an internal glazed meeting space and large kitchen/break-out area – providing them with a modern working environment within a period building in the heart of the City Centre.
Thomas Szymkiw, associate director at FHP Property Consultants, said: “It’s been a pleasure to assist CPW with their requirement for a new Nottingham office and I am delighted that they have chosen the Imperial Buildings as their new home – after visiting them post moving in there sure is a real buzz about the place and I wish them all the best of luck for the future.”
Nottingham financial advisers make fourth acquisition of 2022
Nottingham’s Wren Sterling Group has acquired Morfitt & Turnbull, which boasts around £270m of client assets.
Its Managing Director, Gareth Shaw, and his six-strong team will work from Wren Sterling’s new North-West office in Wilmslow.
Concurrently, the financial planning group has now received authorisation from the FCA to complete a deal announced earlier this year to acquire Mutual Financial Management LLP.
This has given Wren Sterling a North-West office and discretionary fund management (DFM) permissions, gained through the acquisition of Mutual Financial Management’s related company, MFDM LLP.
Former Mutual Financial Management managing partner, Austin Hutchinson, will become Wren Sterling’s new regional director, reporting to James Twining, Wren Sterling’s Chief Executive Officer.
In recent weeks, the Wren Sterling Group has also appointed Rory McPherson as chief investment officer, primarily to oversee the development of Wren Sterling Group’s new DFM. McPherson was previously at Punter Southall Wealth, where he was head of investment strategy, and before that, Russell Investments.
Earlier this year, Wren Sterling acquired Critchleys Financial Planning LLP in Oxford and agreed a deal for HB&O Financial Services, creating Wren Sterling offices in Oxford and Leamington Spa. It is developing its national footprint outside of its existing locations, while supporting those firms that become regional hubs with additional clients and assets through a “hub” and “spoke” strategy.
James Twining, Wren Sterling’s CEO, said: “The past few weeks have been busy as we have continued to deliver on our acquisitions strategy, alongside our investments in improving our brand and proposition and simplifying our business.
“Our goals are to build our national presence, which our new North-West hub will do now that we have received change of control approval, as well as acquire high quality IFA firms to bolster those offices, which we have been able to do with Morfitt & Turnbull.
“I am also delighted to formally welcome Rory McPherson to the Group. Rory brings a unique skillset to the business and in the brief time he has been here, our team and our clients have already benefited from his insight.
“Rory has a key role to play in developing the DFM capability the Group has through our acquisition of MFDM and ensuring that it delivers value for clients, and we are excited about the opportunity that this presents.”
Pre-pack sale of retail business secured saving over 260 jobs
The business and assets of Shuropody have been sold following the appointment of Gareth Harris and Lee Lockwood of RSM UK Restructuring Advisory LLP as joint administrators.
The specialist shoe and podiatry retailer went into administration on 7 December 2022 and was immediately sold to a subsidiary of Baaj Capital LLP, a special situations investor which holds a number of other retail investments.
The deal has saved over 260 jobs and all of the company’s 39 stores across the UK, including in Derby, Leicester, and Nottingham, remain open and are continuing to trade under new ownership.
Gareth Harris, joint administrator and restructuring partner at RSM, said: “Securing this pre-pack sale will ensure customers who have bought treatment plans will have continuity of service and safeguard the jobs of the vast majority of the Shuropody team.
“It is unfortunate that Shuropody has had to go through an administration process, but the legacy of the last couple of Covid years is still proving challenging to navigate for many businesses, including this one.
“Given the current economic climate the high street is seeing many retailers struggle so it is particularly pleasing to help save this business, and ensure employees will be paid as we run into the Christmas period.”
The joint administrators were advised by Matthew Brown, Liz Russell and Niall Crossley of Gateley Legal.
Derby apprentice scoops top award for inspiring next generation of engineers
Ali Amin’s dedication to helping others start their own apprenticeship journey has landed him a coveted national apprenticeship award.
The 20-year-old from Derby was named England’s Advanced Apprentice of the Year at the 19th National Apprenticeship Awards, which were held in London.
The former Derby College student was praised by judges for dedicating his time to mentoring apprentices and encouraging local schools and colleges to get involved in engineering.
He’s currently completing a Higher Degree Electro-Mechanical Engineering Apprenticeship at the University of Nottingham, working at Shawpak – a Derby-based manufacturer of a range of medical device packaging machinery.
Ali said: “I feel very thankful to have been recognised in this way. So many people have given me their time and passed on their knowledge throughout my apprenticeship so this award is for them too.
“I’m excited to continue my apprenticeship journey at Shawpak. I love working for a company which designs products that directly help people.”
Ali can’t speak highly enough of apprenticeships, adding: “The experience I’ve gained so far has been invaluable. The fact I get to earn while I learn is a massive benefit too. I’d definitely recommend an apprenticeship in engineering.”
He has now decided to join the East Midlands Apprenticeship Ambassador Network (EMAAN), which will see him further encourage other young people to consider an apprenticeship.
Angela Borman, chair of EMAAN, said: “I’m thrilled to see Ali, an apprentice from right here in the East Midlands, receive such a prestigious award. I’m also delighted that he’s now decided to join our network as an ambassador – a very important role.
“Having worked in the delivery of apprenticeships for the whole of my career, I passionately believe they are a great opportunity. These awards showcase how they can help people thrive.
“We’ve got some amazing employers who work hard to ensure that the delivery of apprenticeships here in the East Midlands is first class. I am proud to be working with them to continue this success.”
Lincolnshire online retailer selling outdoor accessories enters administration
Northcore, an outdoor accessories and lifestyle online retailer based in Lincolnshire, has entered administration.
Graham Bushby, Nick Edwards and Matthew Haw of RSM UK Restructuring Advisory LLP were appointed as Joint Administrators of Louth-based Northcore Limited, as well as Shade Limited, on 30 November 2022.
Shade Limited, trading as Shade Station, is an online retailer of sunglasses, glasses and watches.
The businesses were taken over by Internet Fusion Group (IFG) last year.
The Joint Administrators say they are currently reviewing the financial position of both companies to ascertain the prospect of continuing to trade the businesses, and the viability to sell them as a going concern.
Keepmoat appoints new land and partnerships director to support business growth
Matt Barker has been appointed as Keepmoat’s newest land and partnerships director and will be using his 24-year industry expertise to oversee land opportunities to regenerate communities in the Yorkshire East and East Midlands regions.
To align with Keepmoat’s plans for regional growth, Matt, who was previously land and planning director at Persimmon Homes, Linden Homes and Redrow Homes, has been appointed to support the existing land teams in the housebuilder’s East Midlands and Yorkshire East regions.
Based in Lincoln, Matt will be looking to fill gaps within the business’s development portfolio, and secure land opportunities to align with the homebuilder’s growth plans. His main focus will be to expand Keepmoat’s operations into the Lincolnshire area, covering towns such as Scunthorpe, Grimsby, Stamford, Grantham, and others, with a view to delivering much needed, energy-efficient homes that are fit for the future.
When asked about his ambitions for the region, Matt Barker said: “The East of the country, most specifically Lincolnshire and the East Riding, are areas of great potential for housebuilding, with some booming industries adding to the appeal, such as large-scale agriculture, engineering, and manufacturing.
“The region is also fantastically placed with towns such as York, Grantham, Newark and Retford having convenient rail and motorway connections, and there are some exciting developments proposed in North and North East Lincolnshire, which is also driving housing growth in the area.
“I am keen to continue Keepmoat’s previous success of providing regenerated sites and thriving communities through our relationships with landowners, local authorities, land agents, and partners such as Homes England.
“Key to my role will be identifying and securing opportunities in the eastern corridor to push Keepmoat’s operational boundaries into Lincolnshire and strengthen its presence in East Yorkshire.”
Keepmoat is one of the UK’s leading partnership homebuilders and a leading brownfield builder. To align with the housebuilder’s aims, Matt will be leading on the negotiation and application for new land to regenerate into new communities. Together with local authorities and housing associations, he will continue to work towards the delivery of affordable, high-quality housing, as well as homes available for first-time buyers.
