In its latest Business Outlook Tracker survey, Grant Thornton found that 17% of mid-market firms in the East Midlands have already raised their prices, with a further 38% intending to do so in the future.
More than half (56%) of these businesses expect a price increase to remain in place for at least 12 months, though only 19% anticipate that this will be permanent. The research also found that amid rising costs, wage inflation and energy bills, confidence in the mid-market has dipped. Just 50% of respondents in the East Midlands are optimistic about the outlook of the UK economy, a -12 percentage point (pp) decrease compared to February (62%). The latest Tracker also recorded a significant fall in respondents reporting revenue growth optimism – dropping down to just 40% of respondents indicating they were confident compared to February’s total of 76%. These challenges have also led to changes in investment priorities, as investment expectations for the next six months have dropped significantly across all areas monitored by the Tracker. The most significant drop in the East Midlands (-33pp compared to the last Tracker) is seen in R&D. This is followed by skills development (-29pp), technology (-13pp) and growing in international markets (-7pp). Sue Knight, partner and practice leader at Grant Thornton UK LLP in the Midlands, said: “With inflation running at 9% and predicted to rise even further, the mid-market in the East Midlands is bracing itself for another challenging period. If they haven’t done so already, many are seriously considering when they need to increase prices in order to maintain acceptable profitability and cashflow levels. “Acting quickly and decisively to manage rising inflation rates could mean passing on increased prices to the consumer, but management teams also need to be looking at every aspect of their business to identify potential savings. “Due to the current situation, there’s been a real shift in the mid-market’s priorities, with the increasing uncertainty stalling investment expectations. This is likely because many businesses are facing a double squeeze, with almost every cost increasing alongside rising concern from the potential of slowing consumer demand.”East Midlands’ mid-market businesses poised to raise prices
Mid-sized businesses in the East Midlands are preparing to raise their prices in response to spiralling inflationary pressures, according to new research from Grant Thornton UK LLP.
M-EC launches CPD training sessions to prepare for new building regulations
Leicestershire-based development technical consultants, M-EC, has created a continuous professional development (CPD) session to equip members of the residential development community with the knowledge around new building regulations, coming into effect in June 2022.
Approved Document O (AD-O) is a new building regulation that makes it a requirement to take overheating into consideration with all new residential developments. It is intended to future proof homes against hotter summers in England, as well as avoid overheating which is becoming a cause for concern. It also considers night-time noise levels in bedrooms.
M-EC director, Alex Bennett, comments on what it will mean for the building industry: “These changes are some of the biggest in Building Regulations for a long time. It will mean an increased workload to show compliance and developers on residential projects will need to adopt different design strategies to remove excess heat and limit solar gains from properties. Overheating and noise will now need to be considered together.
“It’s only appropriate to help our clients through these changes when the response from the government has been so limited. Most companies that work in construction aren’t aware of the significant implications of these new regulations and it’s important we highlight this to our clients so there are no surprises at planning or later stages.”
The regulations apply to any dwelling where someone can sleep, so includes houses, student accommodation and care homes, yet not hotels.
Alex adds: “Although it’s a building control matter, it is advised to consider this early to ensure mitigation measures don’t affect planning permission. For developments with planning, providing work starts on site pre 15th June 2023 no compliance is needed.”
M-EC is offering CPD sessions which include an overview of AD-O and its proposed methodology for implementing it into new residential projects.
Adam Walker, acoustic consultant at M-EC, will be undertaking the sessions, he explains: “Significantly onerous ‘simple’ criteria are going to be difficult to meet for many businesses and so thermal modelling is going to become commonplace in residential design for certain building types. Our team is trained in thermal modelling to provide acoustic advice on the implications of overheating strategies.”
M-EC has invested in software which models virtual environments. Adam adds: “Essentially, we are able to draw in a layout provided by the client, including the internal floor plans to ultimately create an accurate 3D model of how a development will sit once it has been completed.
“Using weather files in accordance with the necessary guidance, we can then simulate the thermal conditions over a year which allows us to assess whether there is a risk of overheating in each of the dwellings. As part of the calculations/analysis, the model also considers things like thermal constructions, occupancy of the rooms and window and door openings. Thermal modelling ties in closely to the acoustics work that we do for our clients and can be carried out in a single assessment.”
M-EC will be running the CPD sessions with an overview of Approved Document O throughout May and June 2022. For more information or to book onto a CPD session contact 01530 264753 or email group@m-ec.co.uk.
New instruction proves a safe bet
Derby College Group chosen to support future cycling stars
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£950 million fund launched to support SMEs across East Midlands
HSBC UK has launched a £15bn lending fund today for small and medium sized businesses with £950m ring-fenced to support local economies, employment opportunities and drive growth across the East Midlands.
Whilst concerns about the broader market remain, HSBC’s customers are thinking about growth via investment, acquisitions and capital expenditure. Businesses have told us that they are ready to invest for growth and are confident about the prospects for their own businesses. They point to the biggest areas of opportunity are in sustainability (12%) and digitisation (11%)*.
The Fund is a key part of HSBC’s commitment to help British businesses to innovate, thrive and grow in the UK and internationally. SMEs are vital to the UK economy and account for three fifths of the employment and around half of turnover in the UK private sector according to the FSB. The Fund, which includes specific regional and locally focussed allocations, will seek to ensure that companies throughout the country can benefit.
This year’s fund also includes ring-fenced funding for businesses trading internationally (£2 billion), in the agriculture sector (£1.2 billion) the tech sector (£500m) and franchise businesses (£500m).
It is also aligned with the Green SME Fund (£500m) for businesses of all sizes to transition and thrive in a low carbon economy and the new Growth Lending Fund (£250m) for high growth tech businesses to support well-equitised, high growth, loss-making scale ups early in their growth journey.
Since launching the SME Fund in 2014, HSBC has lent more than £90 billion helping businesses to make the most of their money, now and into the future and opening up a world of opportunity for our customers.
In 2021, the HSBC UK SME Fund supported Little Eaton car and van repair centre, Panel Match, with a five-figure package. The support allowed the company to open a new unit, which has increased operating space by 50 per cent and enabled the company to meet increasing customer demand for its body repair and paint services.
Small Business Minister, Paul Scully said: “This new fund puts HSBC on course to have lent more than £100 billion to UK small businesses within a decade, which is a great milestone for HSBC and even better for the communities across the country being helped to thrive.
“This extra funding builds on the support available through government schemes like Help to Grow and Start Up Loans to help small businesses grow and reach their full potential.”
Small Business Commissioner, Liz Barclay, said: “The challenges facing small businesses are beyond imagination. The problems caused by poor payment practices such as late or delayed payments, and extended payment terms pile pressure on cash flow. Small firms are the lifeblood of the economy, and they must be paid fast and fair, and if they are to have the confidence to invest and build the resilience, they’ll need to weather the storms ahead and they will need the support of funds like this more than ever”.
Peter McIntyre, Head of Business Banking at HSBC UK, said: “SMEs are vital to the UK economy, and our customers have told us they are ready to invest for growth. The £15 billion fund will help businesses to expand internationally, as well as here in the UK, supporting key sectors and driving investment across the regions.
“We want to make a significant contribution to economies across the country, driving employment, local wealth and growth by providing funding, when and where it’s needed most. We know our customers are innovating and adapting at pace and British businesses need their bank to be flexible, supporting future growth opportunities.”
Seven figure funding deal for retail motoring business
A group of Motor Retail Companies operating across the East Midlands and North West areas of England has received a seven figure funding package from Barclays to support their expansion plans with the refinance of existing term and working capital facilities alongside funding to help finance the group’s growth strategy.
RJTK Investments, was established in 1998 as an independent, family run business with a single Vauxhall site and has since grown to employ over 330 people across the East Midlands and North West. The company now boasts 10 sites in locations including: Louth, Boston, Grantham, Scunthorpe, Grimsby, and Bolton, with another 2 locations due to go live between now and the end of 2023. The group currently represents a range of leading brands including Vauxhall, Kia, Suzuki and Maxus.
Tom Wilson, Commercial Director, RJTK Group, said: “Through our initial discussions with Joe and his team, it immediately became clear that Barclays would be the perfect partner for the group as they were aligned with and supportive of our future growth strategy. The motor industry has experienced rapid change over the last two years and our agile structure has meant we have been able to adapt quickly whilst growing the business with existing and new manufacturer partners. Our new relationship with Barclays will allow us to continue this growth and capitalise on opportunities that fit within our business model.”
Turnover for the business is expected to exceed £140million for the current year and further growth is expected in 2023.
Joe Reid, Barclays Business Development Director, and Jag Singh, Barclays Relationship Director put together funding for the deal and said: “RJTK is an excellent business, underpinned by an experienced, established management team that have grown the business to be one of the region’s top performers. We have been impressed with the market knowledge and ambition of the business since our first meeting and are delighted to have been able to support Tom and the Management Teams’ exciting growth plans. We look forward to a long and successful relationship supporting their continued success.”
Top international award for Derby entrepreneur
The entrepreneur behind Derby-headquartered global IT firm, Bam Boom Cloud, has scooped a prestigious international award.
At the recent Women in Cloud Awards, presented at the Ingram Micro Cloud Summit in Miami Beach, Florida, Vicky Critchley, chief executive of Ban Boom, won the MVP Woman of the Year Award.
The awards celebrate the achievements of individuals and businesses within Ingram Micro Cloud’s ecosystem on their efforts to support women in the community.
This year’s winners were all high-achieving individuals and partners who had displayed high levels of innovation, leadership, and advocacy for Women in Cloud in 2021.
The Woman of the Year Award category recognises one individual female seen as the most valuable player, providing inspiration to her team and organisation.
Vicky was recognised for helping Bam Boom Cloud develop a reputation not only for customer excellence, but also as an inclusive and progressive workplace.
Under her leadership, the percentage of women in Bam Boom’s global team has grown to 33%, with over half of senior management positions held by women.
She said: “I am honoured to be awarded the Women in Cloud MVP Woman of the Year 2022 award.
“Ingram has always been a fantastic supporter of women in the tech industry and this Women in Cloud category showcases some of the most brilliant and dynamic female leaders in the world, so to be recognised as one of these is incredible.
“I am so proud to be part of an amazing global crew of super women at Bam Boom Cloud who demonstrate that there is so much interest and passion from women to be a part of our industry.”
Andrea Mullens, vice-president of human resources at Ingram Micro Cloud, said: “We are proud to recognise the hard work of our partners as they continue to drive industry-leading initiatives in which a diverse workplace can thrive and succeed.
“This distinguished group of channel partners and individuals are paving the way in leadership, innovation, influence, and a commitment to continuously deliver an environment that promotes and celebrates the talents of women.”
Double hire at luxury car firm
Independent luxury and supercar dealer Baytree has strengthened its team with a brace of new appointments.
Due to growth achieved over the last three years, the firm has appointed Adam Le’Gallienne as sales executive alongside Steve Patterson who takes on the senior sales executive role.
Steve, who has spent almost 50 years working in the motor trade, said: “Having spent the last 15 years with BMW, I am really looking forward to working with the prestige and supercar brands within Baytree’s portfolio, and, of course, building client relationships.”
Adam, said: “The prospect of dealing with high-end performance cars and helping Baytree build on its successful track record really excites me.”
The appointments mark an exciting period for Baytree as it celebrates its 15th anniversary – and prepares to open new showroom facilities at its Chequers Lane site, following an investment of £250,000.
The works, which are expected to be completed in June, will allow Baytree to stock around 120 prestige and performance cars.
Derby law Firm advise on compliance firm sale to UK listed company
Derby law Firm Flint Bishop has advised on a major deal involving the sale of a compliance consultancy business to a UK listed company.
The law firm advised the shareholders of The Compliance Office on its sale to listed firm Marlowe plc, one of the UK’s leaders in business-critical services and software.
Founded by Andy Donovan in 2014, The Compliance Office has a dedicated team of specialist consultants supporting over 100 law firms.
The deal will see Compliance Office operating closely with compliance technology company VinciWorks, which was bought by Marlowe in 2021, to develop new creative and dynamic compliance offerings.
Martyn Brierley, head of corporate & finance at Flint Bishop, said: “It was a pleasure to support and advise the shareholders on this successful sale. “The technological knowledge of Marlowe and VinciWorks and the compliance expertise of Compliance Office will be a powerful combination and I wish them all the very best in their strategic partnership going forwards.”
