East Midlands unemployment rate rises slightly – with economic warning from Chamber
Unemployment in the East Midlands has increased for the first time since the strictest Covid-19 restrictions were rolled back, new figures show.
The region’s unemployment rate rose from 4.1% for the three-month period between July and September to 4.2% between August and October, according to the Office for National Statistics’ (ONS) latest labour market report.
This rate had previously decreased between May to June, while it has now fallen into line with the national average having been lower every month since April.
Across the UK, the number of job vacancies in the three months to November soared to more than 1.2 million, another record and 419,000 more than the pre-pandemic period of January to March 2020.
East Midlands Chamber Chief Executive Scott Knowles said: “While the jobs market has been in a much better place than many people may have expected – and the East Midlands unemployment rate is far below the 5.9% peak we saw in the three months to December 2020 – we should be slightly concerned about it going in the wrong direction.
“This reflects the ongoing difficulties many businesses have faced in hiring people with the right skills. In the Chamber’s latest Quarterly Economic Survey for Q4 2021, two-thirds (64%) of East Midlands businesses attempted to recruit – but four in five (80%) of those faced problems in filling those vacancies.
“This meant that while a net 17% of our region’s organisations grew headcount in the previous three months, there was a slowdown compared to the previous quarter when a net 25% of businesses did so.
“Despite some predictions that the end of the furlough scheme in September would release workers back into the labour market, the latest ONS figures suggest this just isn’t the case and our issues are far more deep-rooted.
“We have skills gaps across the board that urgently need to be addressed. Many of these are longstanding but as Brexit and Covid have driven a more deep-seated decline in labour supply, they have come to the fore more prominently.
“The concern here is that an inability to address the skills gap and bolster productivity will dampen the economic recovery, which is now in a very delicate situation as UK output has stagnated – rising only 0.1% in the month ending October – and inflation rising fiercely to put a squeeze on finances.
“The reintroduction of Covid-19 restrictions to combat the Omicron variant could cause a further drag on confidence as many businesses may hold back from investing in recruitment while uncertainty reigns.
“So while the labour market data may not show the most alarming trend, it’s another warning light for the Government about the serious damage that could be caused to the economy if we continue this stop-start approach – particularly without the necessary financial support for businesses.”
Sills & Betteridge LLP complete another East Midlands corporate deal
Two of Lincoln’s largest property specialists, Brown & Co and JH Walter LLP, recently joined forces in a deal handled for JH Walter by Sills & Betteridge’s Lead Corporate Partner, Martin Walsh. The combined business which provides property, business, planning and energy services to corporate and private clients, will continue to operate from both JH Walter’s Lincoln city centre location and Brown & Co’s existing offices on Doddington Road Lincoln, and its other offices throughout East Anglia and the East Midlands. The new trading name of the Lincoln operation is Brown & Co JH Walter. John Elliot, Managing Partner of JH Walter, explained the firm’s decision to bring Martin on board to deal with the sale: “Having been approached by a number of interested parties with a view to merging our long-standing chartered surveying and property sales business, we needed an experienced senior corporate lawyer to assist us in the process. “We had no previous experience of combining with another business. Fortunately for us, the law firm Sills & Betteridge, with whom we have worked for a number of years, had such a lawyer, in Martin Walsh. “Throughout the whole process his experience shone through. He guided us through our preliminary discussions with various interested parties before we reached a conditional agreement with Brown &Co to combine our respective businesses. “During the process to give effect to the combination, Martin’s advice was commercial, practical, clear and concise. In addition, he worked calmly and tirelessly in making sure each issue was properly considered, negotiated and settled to meet the agreed deadline for completion of the combination of the business of JH Walter LLP with that of Brown & Co. “I know I speak for all of the partners in JH Walter in saying we have no hesitation in recommending Martin Walsh and the law firm Sills and Betteridge to anyone considering selling or buying a business as Martin made the process so much more manageable, leading to a successful outcome for all involved.” Martin Walsh added: “JHW have been a very long-standing client of the firm. I was delighted to be able to help JHW and its partners successfully transition their business to that of Brown &Co resulting in a larger complimentary client base and so increased business opportunities for the combined firm. I very much look forward to seeing the business continuing to thrive.”
Logistics developer to invest £46.5m in Derby
St. Modwen Logistics, a logistics developer and manager, is set to deliver its most sustainable high-quality warehouse space to date that could create up to 1,250 new jobs, boosting the local Derby economy and transforming a 67-acre brownfield site.
The initial phase will comprise investment of £46.5 million to acquire land from joint venture partner Network Rail and deliver the first four logistics units. Phase 2 is expected to follow within the next two years and will deliver the remaining 550,000 sq ft of warehouse space, completing the transformation of the site.
The announcement is the culmination of seven years’ work between St. Modwen Logistics, Derby City Council and Network Rail, to bring forward the land for regeneration which previously formed part of industrial railway sidings.
As part of the first phase of development, St. Modwen will speculatively build four high-quality industrial and logistics units of 39,000 sq ft, 54,000 sq ft, 79,000 sq ft, and 131,000 sq ft. Totalling 303,000 sq ft; Phase 1 is due to be completed and ready for occupation in September 2022.
St. Modwen Park Derby will showcase the St Modwen Swan Standard – a set of sustainable development guidelines, with a focus on responsible building practices and the needs of its customers and employees.
The Park will target BREEAM Excellent standard. Each unit is to come complete with a photovoltaic (PV) system, and combined with enhanced building fabric, building services and on-site generation, is expected to achieve over 50% carbon reduction compared with energy requirements set out in the UK Building Regulations (Part L).
The Park will feature a number of health and wellbeing enhancements such as a fitness trim trail, landscaped areas with outdoor seating for customers’ employees, riverside walks, and a cycle path. Biodiversity and sustainable environments will also be integrated into the Park, which is bordered by The Sanctuary Bird and Wildlife Reserve.
Polly Troughton, Managing Director at St. Modwen Logistics, said: “St. Modwen Logistics is committed to investing in regeneration projects with the aim of supporting local economic growth and generating jobs for local communities.
“Through the development of this high-quality warehouse space, underpinned by our ESG commitments and the needs of our customers, we hope to welcome new and existing businesses to St. Modwen Park Derby and look forward to seeing them grow and thrive here.”
Gary Walsh, route director at Network Rail East Midlands, said: “We have been working closely with St. Modwen Logistics over recent years to bring this brownfield site forward for redevelopment. We’re delighted to have concluded the sale of the land to St. Modwen and look forward to seeing our joint vision come to fruition over the coming year.”
Councillor Steve Hassall, Cabinet Member for Regeneration, Decarbonisation & Strategic Planning & Transport, Derby City Council, added: “Following on from the recent completion of the A52 Wyvern Improvement Scheme, we are delighted to see St. Modwen bring forward this key employment site to the city.
“The land has been sitting empty for some time and will soon undoubtedly provide a very attractive option for businesses in the region, with easy access to Derby city centre, as well as the A50 and M1.
“This is yet another excellent example of investment confidence in our fantastic city and demonstrates that Derby is not only open for business, but is fast becoming the go-to location for businesses who can see the huge potential of operating from here.”
Lincolnshire medical centre acquired for £6.8m
Primary Health Properties (PHP), one of the UK’s leading investors in modern primary healthcare facilities, has acquired the Parkside Medical Centre in Boston, Lincolnshire for a total consideration of £6.8 million.
The property is fully let to a substantial GP practice and a pharmacy. The two leases, with a weighted average unexpired lease term (“WAULT”) of 13.5 years, are accretive to the portfolio WAULT and provide for a substantial proportion of government backed income.
This acquisition will increase PHP’s portfolio to a total of 520 assets, of which 20 are in Ireland, with a contracted rent roll of over £139 million.
Harry Hyman, CEO of Primary Health Properties, said: “We are delighted to be making this acquisition of a modern, purpose-built facility in Boston. Originally constructed in 2009, the property was extended in 2013/14 in order to provide the range of medical services required by the local community, which has allowed the patient list to grow significantly.
“We have a strong pipeline of opportunities in the UK and Ireland and are well positioned to continue to grow our portfolio and to support the healthcare systems in these markets through the provision of modern, primary care infrastructure.”
Northamptonshire Chamber welcomes its first female president
An organisation which supports around 1,000 businesses from across Northamptonshire has welcomed its first female board president.
Award-winning personal insurance expert Robyn Allen, of Robyn Allen Solutions Ltd, became the first woman president in the Chamber’s 104-year history at the end of its annual general meeting today.
Robyn, who at 33 is also the organisation’s youngest ever president, had been an active member of the Chamber board for two years prior to taking up her new role.
She said: “I originally joined the Chamber board because I felt it was important that we have a diverse collection of voices to represent our wide range of members. There’s a bit of a weight on my shoulders because I’m the first female president but I’m very excited about my new role.
“I love the Chamber and what it stands for. It gives organisations so many opportunities to raise their profile as well as access to a wide range of fantastic support services. My focus will be on the needs of the Chamber membership so that together we can ensure the Chamber continues to lead the way, grow and move forward.
“I’m already looking forward to next year’s Northamptonshire Business Awards and to seeing how we can help Northamptonshire Chamber’s Women With Vision network and Next Generation Chamber to further develop and grow.
“I’m also excited about the Chamber’s first exhibition next year – I know their team is already working on great plans for it involving the Women With Vision network and it promises to be a fantastic event.”
Robyn also paid tribute to the Chamber’s outgoing president, Kevin Rogers of Wilson Browne Solicitors, adding: “Kevin has been a fantastic example of what being a good president looks like and I hope he will mentor me as I take on this new role. He’s an incredible human being.”
In her spare time Robyn is a trustee at HomeStart Kettering, a governor at Montsaye Academy in Rothwell, mentors new start-up businesses and is a trained mentor to teenagers.
Construction consultancy donates more than 100 Christmas hampers to food bank
Staff at a construction consultancy have donated thousands of items to create more than 100 Christmas hampers for Northamptonshire’s needy.
The team at Bhangals Construction Consultants collected both essentials and luxuries from their own pocket to fill each of the 107 parcels for SCCYC Food Aid.
Hampers included essentials such as pasta, teabags, tins, cereal, coffee, juice, shampoo, conditioner, shower gel and toothpaste, as well as treats such as mince pies, chocolates and biscuits.
They also put gifts such as colouring books and puzzles inside.
SCCYC Food Aid, in St James Mill Road, Northampton, provide much-needed food and supplies to families living in poverty, and in crisis.
Beneficiaries consist of people facing complex issues and vulnerabilities who require critical support and vital resources.
Bhangals Construction Consultants operations manager, Katie Newman, said: “We know, for many people, this time of year is very difficult both emotionally and financially. After the last few years we have had, we really wanted to put together these hampers to make Christmas just that little bit easier for those who might be finding things tough.
“For a lot of us, we take for granted just having food and essentials, but for others it’s a massive struggle. If us doing this just takes some pressure off, it means a lot. We’re so glad to be able to help.”
Ten new tenants secured at Vesuvius Worksop
Property investment and management company CEG has secured 10 new tenants to its multi-million speculative Vesuvius development in Worksop.
The new tenants include gym and fitness training company Crossfit Worksop and Endeavour Martial Arts, as well as retailers such as Kitchen Craft, Escape Hot Tubs and Rother Valley Optics.
It has also become a hub for auto companies from Just Tyres, DV Autos Ltd, Epic Detail and electric vehicle charging specialist Powerpoint to Shark Eye’s research and design centre.
Burger King has taken the first of three flexible food and beverage units at the site.
The largest speculative development of this scale and quality in Worksop, 16 light industrial units offer flexible space from 1,200 to 5,000 sq ft. Only five units remain available, with two under offer. CEG is also set to deliver subsequent phases offering larger employment units including design and build development.
Lawrence Escott, investment manager from CEG, said: “The development has proved incredibly successful. We only completed in August and already have ten new tenants in occupation and strong interest in the remaining five units.
“Construction is also underway with the new Nottinghamshire Fire and Rescue Station and a Travis Perkins. With such a shortage of supply of well located, flexible accommodation, we expect to announce more deals imminently.”
In 2019, supported by D2N2 Local Enterprise Partnership (LEP), CEG delivered a £5.5million package of works to create a new roundabout and access road opening up the site and making it easily accessible to the A60, A57, Worksop and its surrounds. As part of this work, the land was remediated to pave the way for redevelopment.
D2N2 LEP Interim CEO, Will Morlidge, said: “It’s great to see this transformational project moving from strength to strength with ten new tenants. The regeneration of the former Vesuvius Brickworks into a thriving retail and business park is a landmark development for Worksop and the wider area, creating new jobs and supporting our collective ambitions to rebuild and grow our economy.”
Ultimately, the 425,000 sq ft of industrial development at the site will help to address identified latent and future demand for space. The comprehensive development of the site is expected to create almost 1,000 new jobs and contribute £23 million p.a. in GVA. Wider local benefits include apprenticeships, training and skills development and inward investment opportunities.
Nottingham networking group raises £4,000 for Operation Orphan
Propertyface2face, a Nottingham networking group for property and finance professionals, has raised £4,000 for Beeston-based children’s charity Operation Orphan thanks to its annual Christmas lunch held at the Motorpoint Arena.
A total of 90 guests gathered for a Paris themed Christmas networking lunch on Friday 3 December 2021. The MC for the day was well-known ex Nottingham Forest star, turned property professional, Nigel Jemson and the event was hosted once again by David Stewart, Managing Director, In Residence Estates.
Brad Moore, Managing Director and co-founder, Operation Orhan, says: “On behalf of the children I want to say a massive thank you to everyone for the very generous donation raised at the 2021 Christmas lunch. This substantial gift will help us to continue making a positive impact in the most vulnerable children’s lives. Thank you, David, Sasha and the team for making this a reality.”
David Stewart, In Residence, Managing Director, said: “This was our 11th Christmas networking lunch event, we’re very pleased to have raised a large sum despite the challenging time many local firms face during the on-going pandemic. Peter Simon Financial Services alone raised £2,500 to help kick things off.”
Pre-tax profits to be below expectations despite “good revenue growth” at Joules
Joules, the Market Harborough-based lifestyle group, has “achieved good revenue growth,” according to a pre-close trading update in respect of the 26-week period ended 28 November 2021 (the first half of the group’s financial year ending 29 May 2022), yet is expecting full year profit before tax to be below current market expectations.
Customer demand for the group’s products remained strong during the period resulting in group revenue increasing by 35% to approximately £128m (FY21: £95m). Joules said this performance reflects continued growth in active customers to 1.9m alongside the strength of the group’s flexible model which offers customers multiple channels to engage with and shop the Joules brand.
Joules’ stores delivered a strong revenue performance, up 80% against the prior year. Store revenue was just 3% behind the comparable pre-pandemic period two years ago despite lower high-street footfall. The company noted that this performance reflects the “attractive locations of the Joules store estate” as well as the opening during the second half of FY21 of five Centre Parcs locations, which have performed particularly well.
E-commerce grew 14% and 54% on a two-year basis. This performance benefitted from the acquisition of Garden Trading and the performance of third-party e-commerce partners. Gross platform demand across Joules’ websites increased by 2% against a transformational prior year supported by continued growth within the Friends of Joules marketplace.
Garden Trading revenues increased 4% year-on-year and 77% on a two-year basis despite global supply chain disruption.
Wholesale revenue, excluding Garden Trading, increased 16% year-on-year reflecting the reopening of the group’s wholesale partners in the UK and internationally. However, revenue remained significantly down on a two-year basis, in part due to supply chain challenges. The board anticipates strong H2 wholesale performance benefitting from despatches delayed from H1 as well as a stronger orderbook for Spring/Summer 22.
The well-documented global supply chain issues have resulted in some higher costs and stock delays during the period. In addition, labour shortages in Joules’ third-party operated distribution centre (DC) have resulted in extended product delivery times to online customers, stores and wholesale partners. These factors were particularly acute in November, including the Black Friday period, which alongside weaker year on year online traffic contributed to performance during this month being below expectations.
Group profit before tax and adjusting items for the period is anticipated to be in the range of £2.0m – £2.5m (FY21: £3.7m). Global supply chain challenges are expected to remain during at least the second half of the group’s financial year and there is increased consumer uncertainty as a result of the emergence of the Omicron coronavirus variant.
Supported by a strong stock position and wholesale orderbook, the business said that with actions taken to improve productivity at the DC, and the ongoing strong customer demand for the group’s products, the board is confident that the group will achieve continued strong revenue growth in H2 and an improved profit performance.
Nevertheless, full year profit before tax and adjusting items is now expected to be below current market expectations and in the region of £9m to £12m notwithstanding any further significant Covid restrictions.
Nick Jones, Chief Executive Officer of Joules, said: “Joules has achieved good revenue growth against the prior two comparative periods reflecting the strength of the group’s flexible model and despite a challenging external trading environment. Alongside the strong appeal of our core Joules brand, the group continues to benefit from its increased diversification through Friends of Joules and Garden Trading, both of which continue to give customers even more reasons to shop with us.
“While we have not been immune to certain industry-wide pressures including supply chain disruption and cost inflation, we remain focused on delivering the group’s long-term growth strategy. We have continued to invest in the business to support our plans and, despite the high levels of near-term consumer uncertainty, we remain very confident in achieving the group’s exciting future potential.”
Collaboration – the pros and cons: Fiona Duncan-Steer, founder of RSViP Business Networking Agency
Fiona Duncan-Steer, founder of RSViP Business Networking Agency, considers the pros and cons of collaboration.
Now more than ever, businesses are embarking on collaborations, whether it be through strategic partnerships, joint ventures, projects, or simply to help one another out.
The past eighteen months in business has shown us that whilst some industries have thrived, others have fallen, and a compromise to what could potentially be a fatal end to what may have once been a lucrative business could well be – collaboration.
One of my favourite African Proverbs, reads: “If you want to go fast go alone. If you want to go far, go together.” This is certainly true of many aspects in life, in particular post pandemic as we gradually pick up the pieces as the world reopens.
Considering a collaborative approach to business is most definitely worth your time, even if at very least you focus on building a network of like-minded individuals and surround yourself with them regularly, through perhaps a peer group, networking, or indeed your in-house dream team. This will open up new possibilities and opportunities you may well not have thought of yourself and this in itself is a collaborative approach to business.
Opening yourself up to new perspectives and the ideas of others is an innovative way to run business and how many successful industry leaders manage their strategies. Plus, as we all know, networking can offer so many collaborative opportunities aside from the generation of business itself, so whether you choose to network online or in the room, this is a must.
So, here I list an example of pros and cons to the concept of ‘collaboration’…
Pros
- New business can potentially be generated at a quicker speed.
- The opportunity of the sharing of knowledge and training.
- A strengthened brand identity and raise of your business/personal profile.
- An increase/improvement in your team, providing you with a stronger infrastructure.
- Access to more useful resources.
- Increased support of your operations.
- Access to new and useful suppliers who in turn may save you money.
- An opportunity to make a difference in the world.
- New friendships formed and you may also enjoy it!
- It may all go wrong, but you won’t know until you try – right?
