More than £8m generated for Leicester City Council last year by commercial land and property
More than £8m was generated for Leicester City Council last year by the industrial units, office space, shop units and other commercial land and property that it owns.
Gross income of £8.34m (£5.86m net) is the headline figure in a new Corporate Estate Annual Report, which sets out the performance of the council’s extensive investment portfolio over the last financial year.
The report shows that income from commercial land and property continues to boost the funds available for vital council services, representing 2% of the council’s net revenue budget in 2021-22.
Leicester’s varied portfolio is spread across a number of sectors and investment types, with security prioritised over yield to ensure risk is kept as low as possible, and with the city’s long-term economic prosperity a key strategic aim.
City Mayor Peter Soulsby said: “The city council has invested in land and property for generations – and that prudent investment and sound management of the corporate estate portfolio over the years continues to bring benefits to the city today.
“Last year, income from our corporate estate provided a much-needed boost of nearly £6million to the city’s general fund – which meets the cost of the city’s most valued council tax-funded services including street cleaning, refuse collection, parks, pothole repairs, libraries and community centres. As funding from elsewhere diminishes, the income generated by the council’s corporate estate portfolio will become increasingly important.
“Today, the council is still the largest land and property owner in the city and it will continue to invest in land and property as a means to generate sustainable income streams that support our local priorities, our local communities and the local economy.”
The annual report shows that the council’s corporate estate portfolio comprises 378 commercial sites in the city and county, with a total valuation of £123million. Its value was boosted in November 2021 by the purchase of the Haymarket Shopping Centre, whose value has since increased by 5%.
Gross income from the sites in 2021/2022 was £8.34million (£5.86m net) – a gross yield of 6.78% for the year ended March 2022. Although running costs have increased in line with the portfolio’s growth, this was a slight increase on 2021 (6.67%).
Of the council’s investment portfolio, the largest single sector by volume, value and income is the industrial sector – which includes sites such as the Boston Road units, the Willowbrook Workshops and Freemen’s Common Road. The industrial sector represents 33% of the portfolio, is valued at £41m and generated an income of £2.45million for the council in 2021/22.
The retail sector represents 30% of the portfolio, with a third of the shop units owned by the council located in neighbourhoods, while office space represents 21% of the corporate estate portfolio.
Areas outside these three core sectors – including farmland, grazing areas, car parks, advertising hoardings and even a former pub – represent 16% of the portfolio. Revenue from this sector was £2.1million in 2021/22.
Half-year revenue and profits up at Chesterfield packaging firm
Half-year revenue and profits are up at Robinson plc, the custom manufacturer of plastic and paperboard packaging based in Chesterfield.
According to interim results for the six months ended 30 June 2022, revenue at the business hit £25.4m, up 19.8% from £21.2m in the same period of 2021.
The firm meanwhile posted a profit before tax of £2.8m, growing from a loss of £0.6m.
Robinson completed on the sale of two properties in the period, selling surplus land and buildings in Chesterfield for £975,000 and an operational property in Sutton-in-Ashfield for £2,475,000. The proceeds have been used to reduce bank debt.
The company is expecting further sales of surplus property in Chesterfield to be achieved in the next 15 months.
Alan Raleigh, chairman, said: “We expect the substantial uncertainty and volatility experienced since the beginning of 2021 to continue throughout 2022. Sales volumes will be under further pressure in the second half due to: the effect of inflation, which averaged 11% in June, the cost-of-living crisis, the de-listing of some products by our customers and certain of our customers prioritising existing business over innovation projects during the pandemic. We are now starting to see more new business activity with our existing and potential customers, which provides opportunities for growth in 2023 and beyond. “Whilst resin prices have reduced over the summer from the peak seen during the initial phase of the Ukraine invasion, we have already experienced and expect to see further increases in energy and reduced availability of skilled labour. “We are taking actions to drive business performance and respond as necessary to events across our geographical locations. “Given the ongoing uncertainty, we expect profits in the 2022 financial year (excluding the uplift from the profits on disposal of properties) to be in line with market expectations and comfortably ahead of 2021. We remain committed in the medium-term to delivering above-market profitable growth and our target of 6-8% adjusted operating margin.”Just one week until the winners of the East Midlands Bricks Awards 2022 are revealed
With the East Midlands Bricks Awards 2022 set to take place next week (Thursday 15 September), there’s not long left to secure your seat at the prestigious event.
The awards recognise and celebrate those behind the changing landscape of our region – the very best companies, teams, individuals and projects.
They also present an ideal opportunity to network with the leaders of property and construction businesses from across the East Midlands.
Attend the glittering awards ceremony at Trent Bridge Cricket Ground to see who takes home the title of Contractor of the Year, Developer of the Year, Commercial Development of the Year, Residential Development of the Year, Sustainable Development of the Year, Deal of the Year, Most Active Agents of the Year, Architects of the Year, Excellence in Design, Responsible Business and of course Overall Winner.
Thanks to our sponsors:
Tickets can be booked here.
The event, which will begin at 4:30pm and continue until 7:30pm, will also feature John Forkin MBE DL, Managing Director at award-winning investment promotion agency Marketing Derby, as keynote speaker, as well as award-winning mind reader, magician, and professional mentalist Looch, who will bewilder and astonish guests during the evening’s networking. Complementary drinks and canapés will be served on arrival. Dress code is standard business dress.Shortlist for the East Midlands Bricks Awards 2022
Most Active Agent – sponsored by Blueprint Interiors Mather Jamie OMEETO BB&J Commercial Commercial Development of the Year – sponsored by Frank Key Broad Marsh Bus Station and Car Park – Galliford Try Construction Etiquette Park – Clowes Developments Nottinghamshire Police and Nottinghamshire Fire & Rescue Service joint HQ – Henry Brothers Responsible Business of the Year – sponsored by Press for Attention PR Cawarden Arc Partnership Phoenix Brickwork Residential Development of the Year – sponsored by Sterling Commercial Finance The Rise, Southwell – Stagfield Group Glenvale Park – Glenvale Park LLP Hindle House – KMRE Group Deal of the Year – sponsored by Blythin & Brown Insurance Brokers St James Securities – Phase Two of the Becketwell regeneration scheme in Derby – 3,500 capacity Becketwell performance venue with ASM Global Wells McFarlane, APB and Newton LDP – sale of 460 acres of land in North Leicestershire, making way for a new garden village Morgan Industrial Properties Limited – acquisition of the former Ewart Chain site in Shaftesbury Street, Derby Developer of the Year – sponsored by Ward Hockley Developments St James Securities HBD Architects of the Year – sponsored by OMS Swain Architecture Rayner Davies Architects CPMG Architects Excellence in Design – sponsored by Cawarden St. Peter’s Gate renovation – CPMG Architects Health and Allied Professions Centre at Nottingham Trent University – Pick Everard Brookside Farm – Chevin Homes Sustainable Development of the Year – sponsored by Viridis Building Services Refurbished HQ for LKAB Minerals – Scenariio Northern Gateway Enterprise Centre – Chesterfield Borough Council, Whittam Cox Architects, Robert Woodhead Group Broad Marsh Bus Station and Car Park – Galliford Try Construction Contractor of the Year – sponsored by RammSanderson Galliford Try Construction Cawarden Enrok Construction The Overall Winner, sponsored by Streets Chartered Accountants, will also be announced at the ceremony, who will be awarded a year of marketing/publicity worth £20,000.
To be held at:
Isosceles proves the perfect fit for Dains Accountants
Dains Accountants has acquired Isosceles Finance – the fast-growing accounting outsourcing, HR consultancy, and interim FD provider.
Founded in 2001, Isosceles has a network of 4 offices across the UK.
Richard McNeilly, CEO of Dains, said: “Isosceles adds breadth to our service proposition and has developed a compelling offering for their clients. Managing Director, Mike O’Connell has built a strong team and I am delighted that he and Greg Eaton are remaining in the business as we work together to build it to even greater heights. They are a shining example of a modern, tech enabled business with high customer focus.”
Mike O’Connell said: “We are enormously excited to join the Dains’ group of businesses because of our shared hunger for client success. Our businesses are a great fit and this development provides a platform for future growth and development of our fantastic team.”
Luke Kingston, partner at Horizon Capital, said: “We are delighted to have supported Dains on their second acquisition this year and welcome Isosceles to the group. Both businesses have a lot in common with a shared focus on client success, quality, and innovation, and we are excited about the combined opportunities for growth going forward across the Group.”
Dains were advised by Sentio and Forward Corporate Finance (Financial Due Diligence), and CMS (Legal). Isosceles were advised by Kreston Reeves (Tax) and Russell Cooke (Legal).
Law firm head appointed as DCG chair
A prominent member of Derby’s business community has been appointed chair of governors of Derby College Group (DCG).
Andrew Cochrane is chairman and senior partner of top 200 law firm Flint Bishop Solicitors. He has been a governor at DCG since 2019 and takes over the chair from former headteacher Phil Dover.
Andrew was educated in Matlock before attending the University of Aberdeen where he graduated with a Master of Arts Degree in Politics and International Relations before attending the College of Law, Chester, and joining Flint Bishop in 1990.
With a background in Litigation and Employment Law he now specialises in Licensing – acting on behalf of a number of national and regional pub, club, hotel and restaurant operators.
Andrew serves as deputy lieutenant of Derbyshire and under sheriff of Derbyshire. He is also a trustee of the Hubbub Theatre Company, a member of Foundation Derbyshire and part of the organising committee of the Derbyshire Brain Game. He is a past president of the Derby and District Law Society.
He said: “Derby College Group is a significant community asset and its continued good performance is key to providing young people with the tools they need to find secure, well paid jobs.
“I am committed to ensuring that DCG continues to meet the skills requirements of the local economy and therefore, by doing so, delivers secure and well paid employment opportunities for the young people in our area.
“Furthermore, with economic clouds gathering, the potential impact on the jobs market means that colleges such as ours will have an increasingly important role in re-skilling people for new careers.”
Midlands store closures at their lowest rate since 2018
Net store closures in the Midlands are at their lowest rate since 2018, according to new data from PwC and the Local Data Company.
In the first half of the year, 266 shops opened across the West Midlands, compared to 516 closures, creating a net decline of 250, down from 566 in H1 2021. The East Midlands saw 223 openings, with 359 closures, creating a net closure of 136.
With the overall reduction at -1.4%, the West Midlands closure rate has improved and is in line with other regions in the UK, with the spread of closures across Great Britain at its lowest for over seven years.
A boost for leisure
One segment that has seen an improvement has been leisure, with operators making up three of the four fastest growing categories in GB.
Takeaways have been boosted by the growth of home delivery and their ability to operate throughout lockdowns and the pandemic. While restaurants have been one of the worst performers in the past three years, new chains have been able to expand quickly into empty spaces and take advantage of lower rents and pent-up demand post-lockdown.
While not categorised as leisure, DIY shops have taken advantage of home improvement trends formed during lockdowns.
Elsewhere, banks and financial services have continued to decline and have featured in the top 10 fastest declining outlets for the past seven years, except in 2020. With more consumers opting to use online banking and digital services, it is likely we will see this trend continue.
Other declining segments are charity shops and betting shops.
Sarah Phillips, PwC partner and consumer markets leader for the Midlands, said: “While the annual reduction of stores across the Midlands continues, the rate of decline is stabilising in the region, as it is across Great Britain.
“Following the challenges of the pandemic, it is pleasing to see operators in the leisure sector, such as restaurants, become some of the fastest growing categories within our analysis, and outlets like DIY stores and takeaways were able to respond positively to the changes in consumer behaviour brought on by the pandemic.
“Highstreets and shopping centres in the Midlands, and in Birmingham in particular, have seen many changes and some high-profile closures in the past few years. High streets across the UK have been battling against the rise in online shopping and digital experiences for some time, and this is reflected in retail footfall rates that remain at an average 10-15% below pre-pandemic levels.
“However, this summer’s Birmingham 2022 Commonwealth Games brought over a million people to the region and put a global spotlight on us. The impact of this has yet to be formally captured, but anecdotally retailers and leisure operators felt a positive impact. The region now has the opportunity to innovate and reshape its towns and city centres, to maximise on the momentum created by the Games.
“That said, as we move into the second half of the year against the backdrop of the cost of living crisis, there is no doubt that retailers and leisure operators will come under pressure again as consumers’ ability to spend decreases and operating costs increase. With the new Prime Minister now in place, many operators will be looking toward Government support to see them through the rest of the year and ensure the viability of many businesses moving forward.”
Azets Midlands adds to senior management team
Azets, the regional accountancy firm and business advisor to SMEs, has demonstrated its commitment to grow its network with two appointments, seven senior promotions, 34 internal promotions and 28 trainees joining the Midlands team.
This follows the announcement of a national recruitment drive that will see Azets adding 900 roles across the UK business over the next 12 months.
David Saunders, Ben Sheldon and Francesca Hutcheson have been appointed as partner, whilst Matt Walker joins as private client senior manager. Sarah Connolly and Benjamin Barnett have been promoted to associate director, as well as Matthew Allen who is now senior manager. Joel Fentem takes on the role of senior manager in the audit team, whilst Jaden Reynolds has been promoted to manager within the forensic accountancy team.
David joined Azets in 2017. He is an FCCA qualified accountant with many years’ experience supporting SMEs in the Midlands in a range of industry sectors. David works within the accounting & business advisory service line advising owner-managed businesses on a range of accounting and general advisory matters.
Ben joined Azets in 2019 from a big 4 firm where he worked in their private business team. As a partner in the audit team, Ben works on private limited companies, ranging from small single entities to large international groups.
With over 20 years’ experience, Francesca joins Azets’ Central Tax Advisory team. She advises on all aspects of tax advisory work throughout the owner managed business lifecycle, including research & development, capital allowances claims, exit and succession planning for family businesses, merger & acquisition tax transaction support and employee rewards.
On the promotions and appointments, Paul Clifford, regional CEO at Azets UK, said: “We are actively recruiting at all levels, with our investment in hybrid working creating more opportunities for existing staff and removing traditional barriers around location and flexibility.
“As well as this, we truly recognise the importance in harnessing and growing talent from within the business, and these promotions are proof of this. Each promotion is incredibly well deserved and we look forward to maintaining and growing our team, in line with our strategic plan.”
LLEP introduces new co-chairing arrangement
The Leicester and Leicestershire Enterprise Partnership (LLEP) will be jointly-chaired as it continues to work with partners on proposed devolution while simultaneously managing internal process and governance.
Andy Reed OBE, who has been serving as interim chair since Kevin Harris announced his decision to stand down in April, will continue to focus on shaping the future of the LLEP.
Mr Reed has been meeting with a host of partners across local and national government in recent months against the backdrop of a proposed County Deal or other devolution arrangement.
He will continue to lead on external strategy, supported by new co-chair Anil Majithia.
Mr Majithia has served on the LLEP Board for four years and will focus on day-to-day business activities and internal governance.
Mr Reed said: “We’ve been talking regularly with our partners and other stakeholders about proposed devolution since the start of the year now.
“It’s good that Anil will be joining me as co-chair to support our Board and leadership team on our business-as-usual activities as I focus on engaging with local political leaders as they work to find the best devolution solution for Leicester and Leicestershire.”
Mr Majithia said: “I’m delighted to partner with Andy as co-chair and am looking forward to working with Board members and teams to ensure that appropriate board level oversight and assurances are in place to support good corporate governance of our day-to-day operations.”
Mr Reed will continue to chair LLEP Board meetings and the forthcoming AGM, with Mr Majithia chairing in his absence.
The vacancy came after Mr Harris, Leicester managing partner and regional accounting head for RSM UK, stood down from the role in April.
Mr Reed, is the director of a specialist strategic consultancy and served as Member of Parliament for Loughborough from 1997 to 2010.
Mr Majithia has various non-executive leadership roles across the public and non-profit sectors, as well as more than 30 years of global business experience.
Meanwhile, a separate recruitment process has been conducted over the summer to find new directors to sit on the LLEP Board, working with the co-chairs and the LLEP’s Leadership Management Team.
Three new directors have been offered positions as a result of the recruitment exercise and will be introduced to the Board at the LLEP’s AGM on 28 September.
Diesel power is disappearing from Cawarden sites
Derby-based Specialist Contractor Cawarden has made substantial strides in reducing its carbon emissions – achieving a 67% reduction overall so far.
The reduction has been achieved in just ten months following an emissions audit and the successful trial of a new eco fuel, Green D + HVO (Hydrotreated Vegetable Oil). The fossil-free, paraffinic fuel made from 100% renewable raw materials is made from waste fats and vegetable oils, making it a more sustainable and environmentally friendly alternative to diesel.
Based on the success of the initial trial last year, a phased transition and roll-out of HVO across Cawarden’s extensive fleet of industry-leading excavators and site machinery has been taking place.
HVO has the potential to eliminate up to 90% of net carbon dioxide compared to diesel and without any modifications to existing engines.
It also significantly reduces nitrogen oxide, particulate matter, and carbon monoxide emissions.
Cawarden has been working collaboratively with commercial fuel and lubricant supplier, New Era Fuels, and was one of the first companies to sign a 12-month contract for the supply of 300,000 litres of fuel.
The initiative is all part of Cawarden’s de-carbonisation journey and supports clients in reducing the carbon footprint of their projects. It also matches guidance released in 2021 by the National Federation of Demolition Contractors (NFDC) which recommended its members switch to HVO fuel as a more sustainable and environmentally friendly solution to white diesel.
Cawarden is committed to reducing its impact and achieving its net-zero target – a commitment that has been cemented by joining the SME Climate Hub and signing up to The Climate Pledge – a formal commitment to reach net-zero by 2040, or 10 years ahead of the government’s target.
The Environment Agency, which introduced Cawarden to the De-Carbonisation Project partnership, was recently invited by Cawarden to visit one of their South Derbyshire demolition sites. It was an opportunity to learn more about the progress and achievements to date.
Jonathan Groves, Cawarden’s quality director, said: “To put it into context, we’ve saved the equivalent emissions of 94 single flights to Sydney, Australia, or 1,072 metric tonnes of carbon – so far. It’s enormous progress in such a short amount of time and it was great to invite the Environment Agency to site so they could see our machines in action – all powered by HVO.
“Reducing our impact on the environment is an ethos that has underpinned the business and the Cawarden Family has stood by it for almost four decades.
“Through our De-Carbonisation Project partnership with the University of Derby, Derby City and Derbyshire County Councils, which we joined in 2020, we have a clear road map, recording and monitoring regime for our net-zero journey. The roll-out of HVO and achievements in reducing our greenhouse gas emissions is a major step forward – and it will complement other initiatives we have in the pipeline to decarbonise the business.”
Victoria Prowse, regulated industry officer at the Environment Agency, said: “Cawarden has made a significant step forward in its de-carbonisation journey, and it was great to learn more about and see first-hand how they are decarbonising their day-to-day operations. We hope that through their work they inspire other firms to follow their lead. I would like to thank them for inviting us along to learn more about their initiative.”
While this is a positive step towards cleaner environmental ambitions, such a notable change also presents challenges – a major transition that needs to be planned and managed carefully.
Jonathan concluded: “HVO has been a great success in delivering positive change by reducing our emissions. We see this as part of the future for our Industry, linked with the development of cleaner engines by plant manufacturers. But we can only continue making strides in scaling up our HVO usage if the recent price increases in HVO return to being closer to white diesel. Currently, HVO receives the same duty and VAT as white diesel, so we look forward to the Government incentivising this greener fuel rather than making it a more expensive option.
“As a business, we’re keen to explore HVO alternatives and other innovations such as hydrogen or alternative powered plant and machinery, but we can only do so once they are available to our industry.”
Derbyshire agency to promote new sport enjoyed by David Beckham to build UK wide participation
‘We are Padel’ is a new sports brand being launched across the UK and Derbyshire-based full service marketing agency Purpose Media has been appointed to create the digital marketing strategy to grow audience participation and profile of the new brand.
Padel is also coming to a new centre in Derby at the former Powerleague centre in Pride Park and has been appointed to host the 16th European Championship Qualifier Event between Friday 30th Sept – Sunday 2nd October which will attract teams from all over Europe.
The Great Britain teams that will take on the best in Europe at these Championships was named recently and 17 male teams and 13 female teams will be competing in Derby, with British No.1 Tia Norton leading the British challenge.
Padel is a mix between tennis and squash: The aim is to play the ball over the net, but unlike tennis, players can use the walls surrounding the court to return the ball to their opponents. Purpose Media is inviting local businesses to attend a special event on Thursday 29 September so they can try the new sport and have a chance to learn more about how to play.
Commenting, Grace Golden, client service director at Purpose Media, said: “Padel is one of the fastest growing sports in the world enjoyed by David Beckham, Andy Murray and Lionel Messi, but there’s a chance many will not yet have heard of it and our aim is to change this by implementing co-ordinated social media, PR, and email marketing strategies.”
Rosco Muller, country manager from ‘We are Padel’, said: “Our focus is on fun and community. We are committed to creating the best setting for players to enjoy their matches, events and celebrations. We are looking for more suitable venues across the UK and expect interest to grow very quickly with the support from the team at Purpose Media and other partners that are helping us to increase the profile of this exciting new sport.”
