Birmingham IT service provider acquires Northampton telecommunications business
Birmingham-headquartered IT service provider Intercity has acquired Northampton-based telecommunications business Chandler Communications.
The deal follows a successful period of organic growth for Intercity based on exceptional customer service across its Communications, Cloud & Security and Managed Services divisions. The purchase is part of the IT business’s strategy for supporting this organic growth with acquisitions.
Established in 1986 by Perry and Jo Chandler, Chandler Communications is a well-respected family-run business with over 350 customers across the UK. The company shares a people-first approach to business with Intercity, which is also family-owned, making the two organisations an ideal fit.
The deal sees Chandler Communications colleagues become part of Intercity with the business’s Northampton site also joining Intercity’s network of UK offices.
Andrew Jackson, CEO of Intercity, said: “We’re delighted to welcome Chandler Communications to the Intercity Group. Having seen how this well-managed business has grown over the last 30 years, and the care the team put into building long-term partnerships with customers, we recognised the huge synergies between our two organisations.
“We pride ourselves on our high levels of service and ensuring a positive customer experience within every aspect of the business, we measure this continually and will never rest in our pursuit of excellence and market leading customer satisfaction. Chandler is a great fit for Intercity and this deal is an important step in our long-term plan to grow through careful and considered acquisitions.”
Perry Chandler, director and co-founder of Chandler Communications, added: “After thoroughly enjoying the past 36 years, and for very personal reasons, it’s time to hand over the reins. I’ve looked for a company who hold the same important values at their core as I do and have found this in abundance at Intercity.
“It’s fantastic to see two family-owned Midlands businesses coming together but, more importantly, it’s also great news for our customers. They will continue to benefit from working with our experienced communications specialists alongside Intercity’s leading support team. In addition, and most significantly, they will also gain access to a full range of IT services and other products which Intercity offers within its portfolio.”
Intercity has reported strong organic growth with a 108% year-on-year increase in new customers since 2020.
Chandler concluded: “I would personally like to thank my team: James, Jo and Jo, and not forgetting Rachael. They are much valued, dedicated and loyal staff who have customer service at the forefront of their minds. Finally, thank you to my customers for their continued loyalty over the previous and future years.”
Midlands civil engineering firms coming under increasing cost pressures
Civil engineering firms in the Midlands are coming under increasing pressure when it comes to costs, according to a leading business group.
The Midlands branch of Civil Engineering Contractors Association (CECA) represents everyone from the biggest civil engineering and construction firms in the region through to smaller, niche contractors.
It says its members are reporting dramatic rises in fuel and material costs, as well as extended lead times for materials that can lead to hold-ups.
Its feedback from members backs up research that was recently carried out by the Construction Industry Training Board (CITB) that showed that 51 per cent of firms said that rising prices and materials was the biggest challenge facing the industry. It was only the second time since the CITB survey began in 2005 that this was raised as the number one issue.
CECA is now working with the Construction Leadership Council to inform Government of the impact that the Ukraine situation and inflation is having on industry. It will look to identify the hotspots of issues including material price rises and certain material shortages.
Lorraine Gregory, director of CECA Midlands, said: “I have been in post for just a matter of weeks and have been travelling across the region meeting civil engineering contractors of all sizes.
“These are the companies that are at the heart of construction projects across the region – whether its new roads, railways, infrastructure, homes or other buildings. They are, therefore, key to economic growth and to our very way of life.
“Nearly all of them have said the same thing – that costs are spiralling and that its taking longer and longer to be able to get hold of materials.
“It’s vitally important that these cost rises can be brought under control because it is simply unsustainable for them to keep on rising at the rate they are going up by.
“By definition, civil engineers are excellent at finding solutions to problems – it’s something they do every day – and through our network at CECA we are all working together to help one another overcome these issues.”
Jonathan Cummins is the purchasing manager at McCann, which has offices across the country, including Birmingham and its headquarters in Nottingham, employing more than 350 people.
He said communication through the supply chain is key to help mitigate the issues.
Jonathan said: “Lead times for some materials are running at double what they were just over six months ago. It’s now around 18 weeks.
“You have to manage this through the supply chain and maintain strong levels of communication to ensure it doesn’t cause delays to projects.
“Prices have rocketed – plastic is up by 25 per cent, steel is up by 40 per cent and aluminium is up by 25 per cent. It then becomes a balancing act of what you can pass on to the customer and what you can’t. This adds to the pressure of sustaining a profit margin.
“In some cases, project prices might be agreed for 18 to 24 months and it means short-term cost increases haven’t been factored in.
“Communication is key and organisations such as CECA Midlands ensure that the industry is talking and that, as contractors, we all understand one another’s pressures.”
Midlands remains the UK’s number one hotspot for start ups
The Midlands remains the UK’s hotspot for early-stage startups, according to Clarity, a new data asset from business advisory firm Quantuma. In a new report on the Midlands economy the firm also reveals that the region is driven by a thriving manufacturing sector, which also leads in terms of growth prospects compared to any other UK region, along with strong performances for the construction and financial services sectors.
Quantuma’s Clarity data model has been created to inform and support the advisory and lending community in developing predictive insight into the health of UK SMEs. In addition to identifying opportunities for growth, Clarity also measures levels of distress amongst SMEs and their respective sectors to spot issues early and support advisers in taking action to resolve them.
A hub for startups but more support needed for maturing businesses
The report analyses the distress of SMEs by age distribution in the region, and reveals that the proportion of the most severely distressed SMEs in the 0-3 years age bracket is significantly lower than in the same category for the UK as a whole. In the Midlands those startup businesses account for only 2% of the total number of distressed businesses, compared with 8% across the UK.
This difference is offset in the 3-7 years age bracket, where SMEs in the Midlands account for 43% of the total compared to 38% in the UK as a whole.
A thriving sector – manufacturing
The UK is currently experiencing a boom in manufacturing, and this is especially apparent in the Midlands. According to data from Clarity, the manufacturing sector in the Midlands is performing well in comparison to all other regions in the UK. In addition, manufacturing SMEs in the region rank 17% higher than their London counterparts when it comes to growth prospects and financial stability. Construction and financial services SMEs also outperform UK SMEs on average, ranking higher on growth and financial stability than London and the UK average.
However, across other sectors in the region, the outlook is not as bright. SMEs in the leisure, utilities, healthcare, and transport and logistics sectors rank lower when it comes to financial stability and growth compared to London and several other regions in the UK.
Identifying distress and jobs at risk
Analysis from Clarity highlights that financial distress for SMEs in the Midlands has been broadly consistent with the rest of the UK. The report also highlights that there are differences within the region when it comes to jobs at risk. Clarity identifies that nearly twice as many jobs are at risk in the West Midlands region (9,000) compared to the East Midlands (5,000). Of those 9,000 jobs, 17 percent are in SMEs that sit in Clarity’s most severely distressed category (15 to 25 times more likely to fail), compared to just 6 per cent in the same category in the East Midlands.
Richard Easterby, director at Quantuma, said: “The Midlands boasts one of the UK’s most exciting places for entrepreneurs to set up their businesses. However, it is important to capitalise on the opportunities to spread growth and investment across the whole of the region, especially when it comes to supporting maturing businesses.“Clarity gives us the opportunity to work with businesses and other professional advisers across the region to plan by identifying the key sectors and individual businesses that need the most attention. Looking at job stability in the region, it is evident that policy makers need to address this uncertainty while also developing new paths to distributing growth opportunities across the Midlands as a whole.”
Work to start on Leicestershire housing development following land deal
Work is starting on a new housing development in a Leicestershire village, after housebuilder William Davis Homes agreed to purchase the site from a local family.
Outline planning permission had already been granted for the scheme in Burton on the Wolds near Loughborough, Leicestershire, in 2019. Detailed plans for the 12.3 acre site have now been approved by Charnwood Borough Council, allowing work to commence on the site, providing high-quality homes to help the authority meet its housing needs.
The development will have 70 homes, with forty per cent affordable housing. There will be a wide range of 1-5 bedroom properties, including houses, maisonettes and bungalows.
Open green space will form almost half of the site. Features will include a community orchard, a children’s play area, cycle paths and areas of wildflower planting for biodiversity.
Through a Section 106 agreement, the development will also contribute over half a million pounds towards local infrastructure, including sums made available for improvements to local schools, health care provision and the village playing fields.
Specialist land development and property consultants Mather Jamie, who are Loughborough based, handled the sale of the site on behalf of the landowners. The journey began in 2014 when William Davis successfully secured an Option Agreement on the site. Final terms for the sale were agreed this year in advance of detailed planning approval being granted.
Gary Kirk, director at Mather Jamie, said: “This is an exciting scheme which will bring a variety of much needed housing to the local area. William Davis have worked hard to deliver a great outcome for our client in a way that balances the need for housing, biodiversity and improvements to infrastructure.”
David Dodge, development director for William Davis Homes, said: “Our team has worked extremely hard to very tight deadlines to negotiate both the land purchase and planning consent on this scheme.
“I am delighted that we have agreed the deal with Mather Jamie and to start work on this exclusive development in a sought-after location. I look forward to seeing the show homes open early next year.
“We have been proud to be part of Charnwood’s development landscape since 1935 and this is another example of our commitment to provide award winning high-quality local housing, and to support the local economy through our apprenticeship scheme, our direct employment of local tradesman and our commitment to a local supply chain.”
Boston Borough Council reveals ambitious plans for £20m Government bid
Boston Borough Council has announced exciting plans to submit a bid to transform and revitalise an undervalued and under-utilised part of the town centre.
The bid, which is expected to be up to £20million, would be made as part of the second round of the Government’s Levelling Up Fund, which is designed to secure capital investment in infrastructure that has the potential to improve lives and give people pride in their communities.
The ambitious plans seek to regenerate and reinvigorate this large brownfield opportunity (known as ‘PE21’) in the heart of the town, through the bringing forward of a number of strategic interventions which will collectively increase activity, footfall, and improve the image and vitality of the area. At its heart is a significant investment in public realm, along with the re-development of adjacent sites for a variety of commercial, residential and other uses. The proposal is intended to be high-quality and high-impact making a visible positive difference for the short and longer-term.
Collectively this project seeks to use Government funding as a catalyst for change – bringing together public and private sector investment, which seeks to improve the quality of the area and sense of place; increase economic, social and environmental factors; and deliver outcomes which will benefit current and future residents and visitors to the town.
The Council is currently working alongside a range of partners to prepare its submission for the town, ahead of the Government’s deadline in early July.
Councillor Nigel Welton, Boston Borough Council deputy leader and portfolio holder for economic growth, said: “This bid is all about delivering long lasting and meaningful change for our town centre. The PE21 ambition aligns with Governments Levelling Up ambition, with the proposals designed to help ensure that our town centre is transformed and revitalised making it sustainable, vibrant, and attractive.
“Whilst part of a competitive process which will see us competing with other areas up and down the country, I’m delighted this bid is being put together as we want to ensure that Boston is a prosperous place to live, work and visit and this bid can help us do exactly that – creating a town centre that is set for the future and attractive to residents, visitors, and business alike.”
The Borough Council anticipate hearing the outcome of their bid from Government in the Autumn.
Private sector activity expected to flatline over next three months
Private sector activity is expected to be broadly flat in the three months to August (+1%), marking the lowest expectations for private sector growth since February 2021. That’s according to the CBI’s latest Growth Indicator.
Within this, manufacturing output growth is expected to remain solid (+23%). Business & professional services activity (-1%) and distribution sales (+3%) are expected to be broadly flat, while consumer services activity is expected to fall (-23%).
CBI’s latest business surveys also show a sharp deterioration in optimism over the three months to May, across all key sectors. The fall in confidence among manufacturers (-31%) and business and professional services (-21%) was the sharpest since mid-2020.
Expectations for the next three months contrast with reported growth in the three months to May, which picked up slightly to a six-month high (+23%, from +19% in April).
Both business & professional services activity (+28% from +22%) and manufacturing output (+30%, from +19%) saw faster rates of growth. Distribution volumes grew at a similarly solid pace to last month (+23%, from +25%), whilst consumer services output remained broadly flat (0%, from +3%).
Alpesh Paleja, CBI lead economist, said: “It’s worrying that expectations for private sector activity have worsened, but unsurprising given that headwinds continue to intensify. With the cost-of-living crisis front of mind, consumer services firms will particularly be feeling the squeeze in the coming months and beyond.
“The Chancellor’s new targeted support package for low-income households is the right thing to do and will help people facing real hardship. But addressing faltering business confidence will require more action.
“Amid a worsening economic outlook, the Government must work with business on a genuine plan for increasing business investment and get growth going again, particularly as costs continue to soar.”
A supplementary question this month asked what actions, if any, businesses were taking and/or planning to take to strengthen supply chain resilience in response to ongoing global supply disruption. The most common response was holding higher levels of inventories temporarily, which a majority of manufacturers (68%) and distribution firms (59%) are doing or planning to do, while around a quarter (23% and 24% respectively) were doing so on a permanent basis.
The second most cited option was to diversity supply chains (48% and 36%). By comparison, onshoring (11% and 5%) or nearshoring (8% and 5%) part or all of operations were the least popular options.
UK manufacturing growth slows as output, new orders and employment rise at weaker rates
Growth in the UK manufacturing sector eased during May, as rates of expansion in output, new orders and employment all decelerated. The slowdown was driven by weaker growth of domestic demand, lower intakes of new export work and ongoing disruption caused by stretched supply chains, rising cost pressures and the war in Ukraine.
The seasonally adjusted S&P Global / CIPS UK Manufacturing Purchasing Managers’ Index® (PMI®) posted 54.6 in May, unchanged from the earlier flash estimate and down from 55.8 in April. The PMI – which is calculated from five subindices – has remained above the neutral 50.0 mark for 24 months.
Manufacturing output increased at the slowest pace since October 2021. The performance of the consumer goods industry was especially weak, with production falling for the first time in 15 months. Growth slowed at intermediate goods producers, but accelerated in the investment goods category.
May saw the weakest increase in new work received during the current 16-month sequence of expansion. Supply chain issues, subdued client confidence, signs of economic slowdown and reduced export order intakes all stymied new order growth.
New orders declined in both the consumer and intermediate goods sectors. The downturn in the former also reflected the impact on consumer demand of the current cost of living
crisis. Investment goods producers saw new work intakes rise at a quicker pace.
May saw new export orders decline for the eighth time in the past nine months. Companies attributed lower inflows of new work from overseas to Brexit difficulties, transportation delays, shipping disruptions and the loss of orders due to the war in Ukraine.
Weaker growth of new orders led to reduced backlogs of work and increased holdings of finished goods inventory. Stock levels rose due to intentional replenishment and delays in
the despatch of finished goods to clients.
Stretched global supply chains and the associated scarcity of certain inputs also contributed to input price increases and rising levels of purchasing to build-up safety stocks.
Input cost inflation stayed substantial in May, easing from April’s near-survey record high. Chemicals, energy, food, freight, fuels, gas, metals, oil, plastics, polymers, timber, and
transportation (air, land and sea) were all reported as being up in price. China lockdowns, exchange rate factors, sanctions on Russia, the war in Ukraine, supply chain disruption and
raw material scarcity also drove up purchasing costs.
Part of the increase in input costs was passed on to clients in May. Selling prices rose at a rate close to April’s surveyrecord high. The increase was linked to inflationary pressures,
material shortages and rising labour and energy costs.
Input buying activity rose for the sixteenth consecutive month in May, while stocks of purchased goods rose at the quickest pace in three months. Rising demand for materials
combined with stretched global supply chains led to longer delivery times from vendors. That said, lead times increased to the weakest extent in over a year-and-a-half, suggesting
that the pressure on supply chains was past its peak.
UK manufacturing employment rose for the seventeenth successive month in May, albeit at the slowest pace since last October. The outlook for the sector remained positive, with 55% of manufacturers expecting output to rise over the coming year. However, confidence slipped to a 17-month low, amid fears of a possible global recession, rising cost pressures and stretched world supply chains.
Commenting on the latest survey results, Rob Dobson, director at S&P Global Market Intelligence, said: “The rate of expansion in UK manufacturing output eased to a seven-month low in May as companies face a barrage of headwinds. Factories are reporting a slowdown in domestic demand, falling exports, shortages of inputs and staff, rising cost pressures and heightened concern about the outlook given geopolitical uncertainties.
“The consumer goods sector was especially hard hit, as household demand slumped in response to the ongoing cost of living crisis. With both input costs and selling prices rising at rates close to April’s peaks, the surveys suggest that there is no sign of the inflationary surge abating any time soon. Manufacturers continue to report issues getting the right materials, at the right time for the right price, and energy prices remain a major concern.
“Forward-looking indicators from the survey suggest that a further slowdown may be in the offing. Business optimism dipped to a 17-month low and weaker demand growth led to surplus production, meaning warehouse stock levels are rising. Any reversal of this stock-building trend could reinforce the drag of other headwinds and add to downside risks to the outlook.”
Duncan Brock, group director at the Chartered Institute of Procurement & Supply, said: “A softening in overall output growth amongst manufacturing companies in May revealed the slowest rate of expansion since October as supply chain managers pointed to war disruptions and unrelenting price hikes as reasons for this unwelcome trend.
“Though new order levels rose for the sixteenth month they were noticeably softer and driven largely by the domestic market. Export levels fell, hindered by Brexit customs controls and general global disruption. This was especially evident in the consumer goods sector which suffered a sharp fall in overall output as nervous consumers concerned about rising food and energy costs reined back their spending.
“Though the strain on vendor performance eased there is little in this month’s figures to encourage the manufacturing sector and optimism fell to a 17-month low. Suffering a potent cocktail of more disruptions, rising cost pressures and a go-slow UK economy, businesses will be on a knife edge that any business decisions will be the right ones for
the coming months.”
Lincolnshire homebuilder’s new developments to bring boost of over 480 jobs
David Wilson Homes North Midlands has announced that its new developments in Lincolnshire will underpin approximately 486 jobs for local people.
Off Len Pick Way in Bourne, David Wilson Homes is set to deliver a total of 141 new homes at The Willows, where workers in the area will also benefit from the jobs throughout the development process.
The housebuilders predominately employ local sub-contractors and tradesmen, including apprentices, so local businesses and people will benefit directly from the jobs.
Mark Cotes, Managing Director at David Wilson Homes North Midlands, said: “Our new developments in Bourne will provide much needed housing in the Lincolnshire area. This is also great news for the local economy with the jobs that will be underpinned whilst we’re building the new homes.
“We aim to support local sub-contractors and tradesmen where possible to ensure the areas in which we build benefit directly from our developments.
“Our dedicated team at David Wilson Homes is very much looking forward to helping people find the right homes for them, with the great variety of homes available across the two new developments.”
10,000ft² office let on Pride Park, Derby
Pride Park continues to be a popular choice for office occupiers and that is apparent in a recent deal concluded by FHP Property Consultants.
Edward Lloyd House which is situated on Pinnacle Way, Pride Park has been let to Alten Group, a multinational technology consulting and engineering company.
Edward Lloyd House is a detached office building extending to approximately 9,700ft². The self-contained office premises benefits from open plan accommodation and good on-site parking facilities.
The office has been let on new lease terms for a period of 8 years at a rent which breaks back to £16.50ft².
Darran Severn of FHP Property Consultants says: “I am delighted to have let Edward Lloyd House to Alten Group. This is an excellent building being one of the most recent offices built on Pride Park and the property offers excellent headquarters accommodation.
“As a result we have achieved a rent of £16.50ft² which is an excellent result for our client. There are currently few sizeable detached offices available on Pride Park particularly in the 7,500ft² to 15,000ft² bracket and we may start to see businesses looking further afield at some of Derby’s high profile multi let office buildings such as Cardinal Square and Pentagon House.”
Two new acquisitions for Nottingham laboratory equipment supplier
Nottingham-based Scientific Laboratory Supplies (SLS) has snapped up two businesses, Gem Scientific and Northern Balance, to expand its product and service offerings.
Both companies will continue to operate as independent entities and retain all employees, whilst harnessing SLS’s business support and infrastructure to benefit all parties, stakeholders and customers.
Gem Scientific is a laboratory equipment distributor based in West Yorkshire, supplying high quality products – including hygiene testing devices and consumables – to sectors such as the food and beverage industry. This acquisition will help to strengthen both brands in this field, giving customers greater access to a wider range of products. Becoming part of the SLS family will also reinforce and supplement Gem Scientific’s supply chain and provide the company with additional operational support to encourage further growth.
Northern Balance is a provider of weighing solutions focusing on calibration, servicing and maintenance. Based in Gateshead in North-East England, the company has a team of highly experienced, customer-facing engineers. This provides an opportunity for SLS to develop a designated service business to enhance its current operations with even more expertise and resources.
These acquisitions signal the start of a long-term growth period for SLS, which plans further acquisitions and recruitment to broaden its portfolio into a wider geographical area, including the UK, Ireland, East Africa and beyond.
Justin Welton, Managing Director at Gem Scientific, said: “We are committed to providing clients with high quality and innovative products, backed by first-class service and support. The new partnership with SLS will help to accelerate our growth, enhance our capabilities and expand our product portfolio. This is truly a great outcome for all our employees, partners and valued customers.”
Daniel Egan-Sheath, Managing Director at Northern Balance, added: “We share a similar mission with SLS, and have closely tied values, focusing on delivering high quality products with the best possible customer service. This new working relationship with SLS will help us expand our capabilities and national footprint to provide a more thorough service to our customers.”
Ian Roulstone, Managing Director at SLS, said: “These new additions to the SLS Group provide further opportunity to serve more customers with a broader range of products and first-class service.
“The move also secures the roles of all existing personnel and will provide further development and recruitment opportunities within a growing organisation that is completely customer focused.
“This is an important milestone for the SLS Group, and keeping the customer at the centre of our strategy will continue to drive us forward as we increase our product offerings and expand into new markets and geographies.”
