Revenue rises, pre-tax profits fall and shareholders approve acquisition at Clinigen
Revenue is up, while pre-tax profits have dipped at Clinigen, the pharmaceuticals and services group, according to half year results for the six months ended 31 December 2021.
The Burton-based business posted net revenue of £238.1m, up from £215.7m in the same period of the year prior. Meanwhile profit before tax was £10.1m, down from £23.5m.
The news follows Clinigen’s shareholders voting to approve an increased all-cash acquisition of Clinigen by Triley Bidco Limited.
In December 2021, Clinigen announced an agreement on the terms of a recommended all-cash offer by Triley Bidco Limited (a company indirectly owned by Triton Investment Management Limited) for the entire issued and to be issued share capital of Clinigen. Under the terms of the original offer Clinigen shareholders would have been entitled to receive 883 pence for each Clinigen share.
On 17 January 2022 the terms of an increased and final recommended all-cash offer were announced at an increased value of 925 pence for each Clinigen share.
The increased final offer values the entire issued and to be issued ordinary share capital of Clinigen at approximately £1.3 billion on a fully diluted basis.
Shaun Chilton, Group Chief Executive Officer of Clinigen, said: “We have seen good delivery across all areas of the business during the first half of the year. Our EBITDA and net revenue growth despite the ongoing market challenges presented by COVID-19 demonstrates the benefits of our diverse and global lifecycle platform.
“Shareholders have voted to approve the increased all-cash acquisition of Clinigen by Triley Bidco Limited, which the Board has recommended, and we are excited about the next chapter of Clinigen’s growth as a private company. We will continue to focus on those areas of the business where we have sustainable competitive advantage and build out the platform to deliver more value for our pharmaceutical clients and healthcare professional customers globally.”
Major improvement plan that could create over 12,000 jobs published for A50/500 corridor
Regional transport body Midlands Connect has released a major report outlining a series of improvements to A50/A500 corridor. The upgrades are targeted at reducing congestion, supporting local businesses and promoting greener transport use – including the take up of electric vehicles.
The plans from Midlands Connect could create a £12 billion economic boost and help to unlock over 12,000 jobs. New research released alongside the report shows that drivers are losing over half an hour (37 minutes) every weekday due to congestion on this vital route.
The report, called Levelling-up Stoke, Staffordshire, Derby & Derbyshire: The road to success outlines a series of strategic recommendations for long-awaited upgrades, badly needed to alleviate bottlenecks along the 90km long A50/A500 corridor, which links Derby, Nottingham and Leicester to Stoke-on-Trent, Staffordshire and the North-West.
Large manufacturers such as JCB, Rolls-Royce, Toyota and Alstom rely on this key East-West route to keep supply chains moving and provide links to international markets – currently, traffic congestion on the A50/A500 threatens to stand in the way of business growth. The route sees between 60,000 to 90,000 vehicles passing along it every single day.
With deadlines to secure funding via the Department for Transport’s Road Investment Strategy (RIS) schemes fast approaching, Midlands Connect is working closely with local authorities and other partners to help turn its plans into reality. By putting together a phased, corridor wide approach, it is hoped that improvements can be brought forward and provide good value for money, something that has previously been a barrier to progress.
Suggested improvements on the corridor include:
On the corridor’s Western Section, running from Blythe Bridge, Staffordshire to M6 J15-16 (through Stoke-on-Trent):- Strategic improvements to M6 J15 to resolve congestion, to improve safety and facilitate better flow of traffic on M6 and A500
- Enhancements at Sideway to make traffic flow more smoothly, including strategic changes to the roundabout and lanes at the junction, as well as addressing the signalled junctions that cause traffic to build up on the route
- Technology-led improvements to improve the reliability and safety of the M6 between Junction 15 and 16
- Grade separation of the A50 and local roads at two locations in Uttoxeter, with associated slip roads to provide access and other potential enhancements to support growth and boost local active travel networks
- Enhancements to existing roundabouts at Sudbury and Blythe Bridge to increase capacity and reduce delays
- Improvements to A38/A50 Toyota junction to improve capacity, safety and general operation (recommended as immediate priority to be delivered through an appropriate source of funding).
- Widening of the A50 south of Derby, between Junction 2 for the A6 at Chellaston and Junction 3 for the A514 near Aston-on-Trent (recommended to be undertaken in RIS4).
- Building a new link road between the A50 (near junction 1) and A42 (near junction 14, Breedon-on-the-Hill). This is recommended as a long-term option to be considered for RIS5 or beyond.
Flooding hardship fund to support residents and businesses
A number of homes and businesses in Derbyshire were affected following heavy rain which fell over the weekend and into Monday, closing some roads and causing local disruption.
Derbyshire County Council has reinstated our Derbyshire Floods Hardship Funds for residents and businesses, which were first established following floods in 2019.
Residents directly affected by flooding, where water has entered their homes, can access financial help of up to £104 via a fast-track application process.
Businesses of 50 employees or less whose premises were flooded will be eligible to apply for a one-off payment of £500.
The initial pot of £20,000 could be extended if needed. Areas affected and eligible will be listed online.
Derbyshire County Council Leader Councillor Barry Lewis said: “Residents and businesses are already facing a number of financial challenges and if they are affected by the recent flooding we know this will be devastating and could have a huge impact on them.
“We realise the importance of acting immediately to help where we can, which is why we are offering this support which is available now.”
Professional services firm announces plans to acquire financial planning business
Leeds-based multi-disciplinary professional services firm, Progeny, has announced plans to acquire Chartered financial planning firm, RU Group.
The deal, subject to FCA approval, will increase Progeny’s total assets under management to over £3bn and allow the business to expand its presence in South Yorkshire and the East Midlands.
RU Group are wealth management and retirement experts with a team of 48 employees based across three offices, in Nottingham, Derby and Sheffield.
Becoming part of the Progeny business will give RU Group’s clients access to an additional range of legal, financial and professional services via Progeny’s multi-disciplinary offering.
The RU Group were established in their current form in 2003 but the origins of the business date back over 100 years.
Andy Dyke, chairman, RU Group, said: “This is a momentous milestone in the RU Group’s history, securing the future for our clients, and we’re delighted to become part of the Progeny business.
“We have built a well-established firm that is also well positioned for continued future growth, with Chartered status, a strong client-first ethos and a belief in the importance of embracing technology in the future of financial advice.
“What’s more, we are committed to creating long-term prosperity for our clients, placing them at the centre of our decision-making. For all these reasons, Progeny and RU Group are an obvious fit.”
Neil Moles, CEO of Progeny, said: “We’re very happy to welcome a firm with the prestige and heritage of RU Group into the Progeny fold.
“As a locally owned and managed company, RU Group are embedded in the communities in which they operate. They have demonstrated consistent entrepreneurial organic growth in AUM and profitability, supported by a highly qualified and well-developed team with excellent potential for the future.
“We look forward to welcoming RU Group’s clients to Progeny and offering them the chance to benefit from a vast range of additional professional services to meet all their legal and financial requirements.
“Our acquisition strategy is driven by our commitment to providing a high-quality multi-disciplinary service to clients, and our acquisition of RU Group is the next step in this strategy. We have a clear philosophy for growth, and clients – existing and future – will always be at the heart of this.
“This is a highly significant acquisition, in size and status, and we’re excited about what we can achieve together going forward.”
As a result of the deal, Ian Browne, head of advice at RU Group, will become chief of advisory services at Progeny.
On Ian’s appointment, Neil added: “Ian comes with a breadth of experience having managed large teams and worked in the industry for many years, both at Standard Life and most recently in his role at RU Group. The chief of advisory services position will be fundamental to the next stage of our growth and we are looking forward to welcoming the experience and energy that Ian will bring to the business.”
A team from Progeny’s corporate legal department acted as legal adviser to Progeny on the transaction.
RU Group were supported by their legal adviser, Ed Foulkes of Clarke Wilmott, together with Roderic Rennison and John Chapman of Catalyst Partners Ltd.
Corby redevelopment projects showcased to Government
North Northamptonshire Council projects that are spearheading further redevelopment in Corby town centre were showcased during a Government visit last week.
Minister for Levelling Up, Neil O’Brien, was taken on a tour of the sites which will benefit from a £19.9million cash injection as part of the Town Fund.
The Minister visited Chisholm House in Queen’s Square, which will be repurposed and developed into a sixth form college before touring Corby train station, which is part of a scheme to form a better connection with the town centre through active travel.
Cllr Jason Smithers, Leader of North Northamptonshire Council, said: “I’m delighted that Minister O’Brien visited North Northants to see first-hand the projects that are being developed in Corby town centre.
“The Town Fund has provided a huge cash boost to the town and these schemes will act as a catalyst for economic growth. Creating the conditions to bring prosperity is one of the key ambitions of the council and I look forward to seeing the projects take shape over the coming months.”
Minister for Levelling Up, Neil O’Brien, said: “I am truly excited by the regeneration of Chisholm House into a modern, new, carbon-neutral Sixth Form. With backing from Corby’s £19.9 million Town Deal, the Sixth Form will give hundreds of young people across Northamptonshire the opportunity to achieve their true potential.
“It was also fantastic to tour Corby station and discuss government-funded plans to improve both pedestrian and cycle links from the town centre to the station. Encouraging active travel, reducing emissions and improving safety is how we create healthy, sustainable and thriving communities across the nation.”
The Town Fund projects are:
Sixth Form College at Chisholm House – Chisholm House will be re-purposed and renovated to be a carbon neutral building using the latest innovative technologies to bring this ground-breaking and modern building to the heart of the town centre. It will attract 16 to 18-year-old, young adults from the surrounding area.
Corby Station to town centre – This project will look to improve the public realm on Oakley Road for cyclists and pedestrian usage. This main road will look to update these important links in Corby from the train station, Tresham College and the town centre, with a focus on promoting active travel along this key route.
Smart and Connected Corby – This project seeks to establish Corby as a smart and green town centre through harnessing connected and clean technologies. Using the latest connected and smart technology will enable the council to monitor flows of pedestrians, cyclists, motorists, shoppers, and visitors to understand the present and predict the future.
Multi-Purpose building – This project aims to provide permanent new accommodation for a modern Arts and Community Centre in a multi-use facility, located in a central location in Corby’s town centre.
Sharpest manufacturing price growth since 1976
UK manufacturing output growth picked up in the three months to February, but the balance of manufacturers expecting price rises in the next three months was at its highest since December 1976.
That’s according to the latest monthly CBI Industrial Trends Survey, based on responses from 224 manufacturing firms.
- The balance of manufacturers who expect price rises in the next three months rose to the highest since December 1976 (+77% in February 2022, +78% in December 1976).
- Growth in output volumes accelerated in the three months to February compared with the same period one month earlier (+26% from +14%). Output increased in 13 out of 17 sectors, with growth driven by the chemicals and food, drink and tobacco sub-sectors.
- Total order books were strong in February (+20%, from +24% in January), while export order books improved slightly and remained above their long run average (-7%, from -10% in January; average of -19%).
- Stocks of finished goods were seen as inadequate again in February, but with some improvement shown for the second consecutive month (-14% from -17%).
Training provider transforms former newspaper offices into digital HUB
An East Midlands training and apprenticeship provider has invested £75,000 to give Derby’s former newspaper offices a new lease of life – as a state-of-the-art digital HUB.
EMA Training has created three floors of collaborative working space, break-out areas, exam suites and networking facilities inside its new Siddals Road headquarters, which was home to the Derby Telegraph until last year.
It has taken just two months for EMA Training to renovate the offices, which cover almost 9,000 sq ft, ahead of a big push to promote apprenticeships and staff training as a vital component of the city’s post-pandemic economic recovery.
EMA Training Chief Executive Officer, Tracey Mosley, said: “The expansion into this building is extremely exciting for us. The city has so much to offer our learners and we want to keep local talent in Derby.
“The support we have had from the employers we work with; our external stakeholders and our team has been incredible. Our people are the core of everything we do, and it has been great to see their involvement in each phase come to life.
“All the local businesses who helped renovate the previously empty office have done a fantastic job, in a really quick time. Together we have turned the building into a collaborative, innovative working space that supports the new hybrid way of working.”
The move into the new office, which is due to be officially opened by businesswomen Eileen Richards MBE, comes after EMA Training expanded from 10 members of staff to 30 in the last two years.
Mrs Mosley added: “This is such an exciting time for EMA Training and our new prominent position in the heart of the city means we will be able to bring our ground-breaking and exceptional expertise to even more young people and employers.
“EMA training has gone from strength to strength in the last three years and as the city builds back better we hope that we will be an important part of this recovery.”
Eileen Richards said: “I am delighted to have been given the honour to officially open EMA’s new training hub.
“The East Midlands is renowned for their entrepreneurial and business spirit which is why it is fantastic that EMA are providing a place for emerging and existing talent to be upskilled through apprenticeships and training programmes to continue to add value and expertise within our region.”
East Midlands housebuilder secures £6.5m finance facility for Northamptonshire scheme
East Midlands housebuilder Barry Howard Homes has secured a £6.5 million finance facility from Paragon Development Finance to support a 28 new build home scheme in Weedon, Northamptonshire.
The ‘Grand Union Way’ canal-side development, located on Dodford Wharf Farm, consists of three, four and five-bedroom homes and is due to be complete in the summer. It is located close to the High Street of the popular Weedon village.
A further 19 affordable units are also being delivered as part of the scheme in conjunction with a housing association.
The deal was led on behalf of Paragon by relationship director Adrian Reeves and portfolio manager Bonnie McCloskey. It was introduced to Paragon by Matthew Cleave from MPC Estates.
Barry Howard, founder of Barry Howard Homes, said: “This scheme benefits from a vibrant village life, but also has close links to Daventry, Northampton and Rugby, which of course have fantastic transport links to London and Birmingham. We have designed these family homes to enhance the village, offering good quality housing in a desirable location.”
Adrian Reeves said: “We pleased to have been able to support Barry Howard Homes with this latest development. The company has built a fantastic reputation for delivering top quality homes over the past 30 years and this scheme will further cement that.”
MPC Estates’ Matthew Cleave said: “Having worked successfully with Barry on a number of his transactions over the past few years, I knew that a relationship with Paragon would be very beneficial for the delivery of this scheme. As always, Paragon have proven to be a reliable partner in securing the funding with the help of Adrian and Bonnie and I am sure there will be many more opportunities for similar projects in the future.”
Council sets out budget to protect vital public services as financial pressures mount
Budget plans intended to protect essential council services in Leicestershire are to be discussed tomorrow.
Leicestershire county councillors will meet on Wednesday (23) to address the challenging financial position facing the authority.
The council’s proposed medium term financial strategy (MTFS) looks to manage the rising costs of caring for vulnerable children and adults while finding ways to deal with increasing inflationary costs across services and on key multi-million pound capital projects needed to support the county’s growing population and economy.
The authority is proposing to increase its share of the council tax bill by three per cent from April – a two per cent rise in the basic levy and one per cent ringfenced to contribute towards adult social care.
This rise is below the current rate of inflation and the lowest increase in recent years.
The precept rise will also help fund other key services including children’s social care, public health, transport, education, planning, road maintenance, libraries, waste management and trading standards.
Cabinet lead member for resources councillor Lee Breckon said: “The money we will receive from the Government in the coming financial year was better than anticipated but significant risks remain.
“Our proposed budget will balance the books next year but we still face a gap between our income and what we will need to spend of £39 million by 2026.
“Our financial strategy is prudent and deliverable though we will still need to make significant savings and that will require difficult decisions.”
Cllr Lee Breckon, Cabeniet member for resources said: “It is recognised many residents will be having a hard time with the rising cost of living.
“We ask for more council tax with great reluctance and we will need to repay residents by delivering those essential services efficiently and effectively.
The pressure on the council to fund both children’s and adult social care remains considerable with rising demand in the number of vulnerable older and young people who need looking after – and the costs of the care they need rising.
Overall social care costs are expected to rise by £88 million over the next four years with a significant part of that needed to pay the national minimum wage.
There is also large deficit of £63 million predicted by 2026 in paying for the education of children with special educational needs and disabilities (SEND).
More than half a billion pounds is also to be spent on major capital schemes between now and 2026 to provide for essential infrastructure – such as new roads and schools – to meet the demands of the county’s growing population and economy.
The popular Shire Grants scheme is being boosted with an additional £150,000 to make up a £600,000 pot available annually to communities to bid in to for projects that will make a real difference for Leicestershire’s residents.
The council remains committed to its target of helping to plant 700,000 trees across the county – one for every resident – and the MTFS contributes £100,000 developing a tree nursery to grow saplings towards this target, helping to make our county cleaner and greener.
The MTFS also provides £50,000 to enable the cost of road closures to be waived for communities and groups planning street parties to celebrate HM The Queens’s Platinum Jubilee in June.
Cllr Breckon said: “This budget will provide protection for vulnerable children and adults, builds on the Covid support we’ve provided over the past years and will continue to support.
“It delivers the lowest rise in the precept in recent years.
“Although we can balance the books this year, we will continue our campaign to get a better funding deal from government- and this includes working with the cross-party F20 group of the lowest funded councils in England to achieve this aim.” Rolls-Royce signs sustainable fuel global declaration
Rolls-Royce has signed a global declaration, committing to promote the acceleration of the development, production and consumption of Sustainable Aviation Fuel (SAF).
The engineering giant, which has its civil aerospace and defence divisions in Derby, joined with other key players within the aviation industry – Airbus, Safran and Singapore Airlines – to sign the declaration at the Singapore Air Show.
The aviation industry plays a part in achieving the Paris Agreement targets, with SAF being one of the key decarbonisation levers in the sector.
The Global SAF Declaration calls on industry partners from the aerospace, aviation, and fuel value chains to embrace SAF as an important part of decarbonisation with the ambition to ensure a steady ramp up over the next 10 years.
The declaration is open to all airlines, as well as aviation and aerospace organisations, as a complement to their sustainability commitments.
Grazia Vittadini, chief technology and strategy officer at Rolls-Royce, said: “Signing the declaration is an important milestone for the aerospace industry.
“We welcome the opportunity to push for more SAF use by coming together across the value chain.
“It is important that we combine our efforts and focus into building the momentum required to drive this forward.
“We are all big advocates for the development of alternative propulsion solutions including hydrogen, hybrid-electric and electric and we also recognise that SAFs are a key building block to set us on our path towards achieving our long-term decarbonisation goals.”
