Saturday, May 10, 2025

Budget fallout and rising costs force up company insolvencies

Tess Egginton
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Budget fallout and rising costs force up company insolvencies
Fallout from the Budget and rising overheads have driven up this month’s corporate insolvency figures, with struggling businesses set to face further challenges in 2025 when wage costs increase. This is according to the Midlands branch of insolvency and restructuring body R3 and follows latest statistics published by the Insolvency Service which show that corporate insolvencies in England and Wales increased by 12.8% in November, with numbers rising from 1,743 in October to 1,966 last month. R3 Midlands Chair Stephen Rome, a partner at law firm Penningtons Manches Cooper in the region, said: “These figures remain significantly higher than those seen both during the COVID-19 pandemic and between 2014 and 2019. “After years of rising outgoings and falling margins, businesses are facing further increases in wages as a result of the Budget, and this could be an expense too far for some firms. “R3 Midlands members are telling us that enquiries have increased over the last month, with business owners looking to restructure or have early conversations about their financial concerns or their insolvency options ahead of the new year. “This kind of activity won’t be reflected in the current set of insolvency statistics, but it provides an insight into the mood, challenges and concerns of the local business community as we come to the end of another difficult twelve months. “As we head towards 2025, we urge anyone who is worried about finances to seek advice as soon as they possibly can. Discussions with a qualified advisor at the earliest possible opportunity will provide more options for improving the situation and more time to take a decision about the next step. “Most R3 members will give prospective clients a free initial consultation so they can learn more about their circumstances and outline any potential solutions for improving them.”

White paper unveiled to drive £20bn green energy transformation in the Midlands

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White paper unveiled to drive £20bn green energy transformation in the Midlands
The Midlands Engine Partnership has launched the Midlands Energy Security White Paper, a  vision and roadmap for delivering secure, low-carbon energy and unlocking economic growth across the region. Home to a quarter of the UK’s fossil fuel generation capacity, a high concentration of energy-intensive industries and with England’s highest regional rate of fuel poverty, the Midlands epitomises both the challenges and opportunities of the clean energy transition. Drawing on the region’s energy innovation ecosystem, manufacturing expertise and cutting-edge research, the White Paper highlights how the Midlands is leading the UK’s journey to energy resilience. With £20bn of investment potential and the opportunity to create nearly 200,000 green jobs by 2041, the Midlands is central to achieving the Government’s ambition to become a clean energy superpower. The White Paper underscores the critical role of the Midlands in delivering the clean energy transition, decarbonising its industrial clusters, and leveraging its energy and advanced manufacturing expertise and research excellence to meet national net zero objectives. It sets out the opportunities for investment, job creation and innovation, building on the Midlands’ position as home to 21% of the UK’s electricity generation capacity. Key highlights include:
  • Innovative projects driving resilience: Projects such as Nottinghamshire’s STEP fusion programme, Coventry’s Greenpower Park and Humber 2030 Vision showcase the Midlands’ role in pioneering clean energy technologies, from fusion energy to battery innovation, carbon capture and hydrogen power.
  • Integrated energy system planning: The region is driving forward place-based,  ‘whole-system’ energy planning, developing Local Area Energy Plans and initiatives such as Project PRIDE. These efforts ensure energy supply and demand are better integrated, supporting businesses and communities.
  • A green jobs revolution: By 2041, the Midlands could achieve nearly 200,000 new green jobs, including in low carbon hydrogen, clean energy and smart energy systems clusters.
The White Paper emphasises how the Midlands is integrating local and national priorities, from industrial decarbonisation to community-led solutions. Projects across the region are demonstrating the diverse mix of solutions required including new financing mechanisms, including a Midlands Green Bond, and industry-led skills initiatives. Sir John Peace, Chairman of the Midlands Engine, said: “The Midlands has the ability, ambition and assets to drive the UK’s clean energy future. This White Paper showcases how our region can lead in creating secure, sustainable power while delivering economic growth and high-quality jobs. Together, we can honour the Midlands’ legacy of innovation and secure a brighter future for generations to come.” Lord Ravensdale, Chair of the Midlands Energy Security Taskforce, said: “Through collaboration, the Midlands will drive the UK’s clean energy transformation. This White Paper is a bold step towards building a sustainable energy system that benefits businesses, communities, and future generations.” Claire Ward, Mayor of the East Midlands, said: “The East Midlands is leading the way in the clean energy revolution, from STEP Fusion in West Burton to cutting-edge hydrogen and battery technology. This White Paper sets out a bold vision to harness our region’s innovation and industrial strength, creating well-paid green jobs and sustainable growth.”

Shoe Zone makes profit warning amidst “very challenging trading conditions”

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Shoe Zone makes profit warning amidst “very challenging trading conditions”

Shoe Zone has issued a profit warning following the first two months of its financial year and the first half of December, in which it says it has experienced “very challenging trading conditions.”

This includes weakening consumer confidence and unseasonal weather, both of which have decreased revenue and profit.

The company shared: “Consumer confidence has weakened further following the Government’s budget in October 2024, and as a result of this budget, the Company will also incur significant additional costs due to the increases in National Insurance and the National Living Wage. “These additional costs have resulted in the planned closure of a number of stores that have now become unviable. The combination of the above will have a significant impact on our full year figures.”

The business now expects adjusted profit before tax for the financial year ending 27 September 2025 to be not less than £5m, down from previous expectations of £10m.

Step forward for Buxton town centre regeneration

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Step forward for Buxton town centre regeneration

Plans to regenerate Buxton town centre have moved a significant step forward after High Peak Borough Council’s Executive agreed to appoint Capital&Centric as the development partner for Revitalising Buxton.

It means work can now start in earnest on the £100m plus scheme to redevelop The Springs shopping centre, Spring Gardens and Station Approach; a scheme that became possible after the Council received £6.6m of Future High Street Fund money from the Government that it used to buy the shopping centre in 2022. The Council has added £4m of its own funds to the scheme. Councillors made their decision following a rigorous selection process, and after hearing the results of a community engagement programme held earlier this year which showed a desire for a more resilient town centre with leisure, hospitality, public space, new venues and much-needed new homes. Capital&Centric plans to repurpose the 1980s indoor shopping centre into a vibrant mix of hundreds of new homes, workspaces and independent shops, bars and cafes. The vision is to give pedestrians easy access through the site from Spring Gardens up to the rail station, while also seeking to open up the River Wye, creating green public spaces for al fresco food, drinks and events. Capital&Centric will take forward the results of the community engagement and begin working up the scheme in advance of a planning application to be submitted in about 10 months’ time. The Manchester-based developer will oversee the development and construction phases subject to the application being approved. Leader of the Council, Councillor Anthony McKeown said: “Over the last few years we have gathered hundreds of ideas from the local community for the future of this part of the town. In order to move these ideas to reality we are thrilled to announce the next steps for this transformational project for Buxton by announcing a development partner. “Capital&Centric has presented a confident vision, aligned with our aspirations for this site. We now want everyone to have the opportunity to help shape the proposals through further consultation and engagement next year.” Councillor Damien Greenhalgh, Deputy Leader and Executive Councillor for Regeneration, Tourism and Leisure, said: “We promised to revitalise Buxton town centre and that’s what we’re doing. “As regeneration projects go, this is huge for Buxton and presents an enormous opportunity to diversify what we have in the town centre, whilst at the same time ensuring what is proposed compliments the great assets we already have here that are cherished by residents and visitors alike. “We look forward to working with our new development partner as we work together on this bold and exciting scheme we aim to have completed in 2029.” Capital&Centric’s recent projects include a new award-winning garden neighbourhood at Kampus in Manchester, the re-booting of Farnworth town centre in Bolton, and creating a new community at the Goods Yard in Stoke-on-Trent. Managing Director of Capital&Centric, John Moffat, said: “Surrounded by the Peak District National Park, Buxton’s a town with so much going for it – from its stunning Georgian and Victorian architecture, to its healing spa waters and buzzing food and drink scene. “The shopping centre is in an amazing location right in the heart of the town, with a huge opportunity to revitalise the spaces for shops, cafes and bars whilst bringing in new people to live here.” Engineering services company AtkinsRéalis is working with the Council on the project. Emma Davies, Project Director and UK Lead for Regeneration, AtkinsRéalis, said: “We have been advising High Peak Borough Council for over two years on Revitalising Buxton, where we have led the development of the Council’s vision for the centre of Buxton. “Through the use of our bespoke digital tools to generate data about the various uses of the town centre and its people, we have been able to connect the Council’s ambition and the needs of Buxton’s residents with a developer that understands what the regeneration project needs to achieve. “We are delighted the Council has chosen Capital&Centric as their partner and look forward to working with them both over the coming months.” Nearly 750 people responded to the community engagement over the summer and early autumn. Respondents called for more things for young people to do, shared community space, diverse options for housing, more public toilets, an increase in the variety of shops, and more greenery. All of the comments shared will enable the development partner and the Council to prepare more detailed proposals. These are expected to be out for consultation next spring.

Jobs secured after physical entertainment distributor sold to Hinckley firm

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Jobs secured after physical entertainment distributor sold to Hinckley firm

Hinckley-based supply chain solutions provider, DP World Logistics UK Limited (DP World) has bought the business and assets of physical entertainment distributor Utopia Distribution Services Limited (UDS).

It follows the appointment of Mark Supperstone and Ben Woodthorpe of Evelyn Partners as joint administrators of the business on 13 December.
UDS operates out of a 25,000 square metre, state-of-the-art facility in Bicester UK. The warehouse ships more than 30 million units (including CDs/DVDs/vinyl) annually and distributes more than 60% of the UK’s physical entertainment products for a number of high-profile record labels and retailers. Several assets were acquired in the transaction, including IT systems, and it is expected that all UDS employees will transfer to DP World via TUPE. The transaction follows bankruptcy proceedings being initiated against UDS’ Swiss parent, Proper Group AG (formerly Utopia Music AG) in September 2024. Mark Supperstone, Joint Administrator of UDS and Partner at Evelyn Partners, said: “It is unfortunate to see a business such as UDS that benefits from high-quality facilities and prominent clients in the music industry encounter these difficulties. “However we are encouraged that the business is expected to operate as usual following the sale to DP World, with all jobs saved.” A DP World spokesperson said: “We are pleased to confirm that we are taking on responsibility for full day-to-day operation of our distribution centre at Bicester, following our recent purchase of the business and assets of Utopia Distribution Services out of administration. We look forward to working closely with our entertainment partners in this expanded role. “This facility has now been open for more than a year and is proving to be an outstanding success, supplying physical music and home entertainment to the growing UK market. Our reliable and competitive service, which includes state-of-the-art technology across the centre, enables our customers to distribute to the whole of the UK from a single site. “DP World is committed to playing its part in ensuring the continued success and growth of the physical music and home entertainment sectors in the UK.”

Self-storage company expands footprint with Grimsby site

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Self-storage company expands footprint with Grimsby site
A self-storage company is building its presence across the country with a new site in Grimsby. Kangaroo Self Storage has purchased a large former retail warehouse on M Park Alexandra, the retail park in Grimsby. The site was previously occupied by home improvement retailer, Wickes. The large format building occupies a prime site on the Retail Park and already has B8 consent, enabling the site to operate as self-storage with immediate effect. The store will deliver a net floor space of 80,000 sq ft, trading over three levels. When fully fitted, the Grimsby store will be one of the storage company’s largest stores. Gareth Dougherty, Acquisitions Manager at Kangaroo Self Storage, said: “M Park Alexandra is the perfect location for trialing our new retail park presence. It’s a very visible and convenient site with easy access and ample parking. “As the need for storage becomes more lifestyle-driven, a site like this supports our ambition to bring storage directly to our customer base. We are delighted that M Park Alexandra landlords have been flexible and forward thinking – considering the current and future uses of sites like this.”
Chris Stevens, CEO at Kangaroo Self Storage, said: “Strategically, we see this as a significant transaction in the future repurposing of retail into other use classes. We expect to do more transactions like this as Kangaroo continues to expand its presence in the UK.” The transaction was led by George Kearney at LCP, part of M Core, the owners of M Park Alexandra. Their advisers were Henry Phipps of Edgeley Simpson Howe and Osborne Clarke. George Kearney, Senior Asset Manager at LCP, said: “We are thrilled to support Kangaroo Self Storage in developing their retail park presence at M Park Alexandra. With its prime location and excellent infrastructure, this site is perfectly positioned to serve the Grimsby community’s growing need for flexible and accessible storage solutions.” Kangaroo Self Storage was advised by MBM Commercial, Temple Bright and JLL.

2025 Business Predictions: Victoria Templeton, Knowledge Manager at HR Solutions

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2025 Business Predictions: Victoria Templeton, Knowledge Manager at HR Solutions
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.  It has become something of a tradition, given that we’ve been doing this now for over 30 years. Here we speak to Victoria Templeton, Knowledge Manager at HR Solutions. With significant developments on the horizon, now is the time to consider how HR must evolve to be ready to protect businesses in 2025 and beyond. With the Employment Rights Bill, and the upcoming Equality (Race and Disability) Bill, we’re expecting 28 different reforms to worker rights and protections, which, collectively, will bring the most significant developments in employment law in decades. Other Bills which will also have an impact on employment are the Children’s Wellbeing Bill and the Digital Information & Smart Data Bill, which is expected to incorporate rules and standards for AI. HR must embrace this technology to stay ahead of any competitors. There’s never been a more important time to keep up with employment legislation. With this comes training needs. Not just for managers and employees, but for your HR team, since they advise the business on how to remain compliant. Data analytics is also a must so that HR practitioners can gain insights needed to make informed decisions that will go on to shape both the people and business strategy. A clearly defined people plan is vital to ensure the right structure, resource and skills to support the delivery of business goals and objectives.

Private equity investor backs Mansfield battery power specialist

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Private equity investor backs Mansfield battery power specialist
LDC, the private equity investor which is part of Lloyds Banking Group, has made a significant investment in battery power specialist Power Saving Solutions to support its organic growth strategy. Mansfield-based Power Saving Solutions provides high performance battery storage units and hybrid power systems for commercial use. Its Hussh Pod units work in conjunction with a variety of power sources, including diesel generators, renewable energy and on-grid sources, to give customers a hybrid power solution that maximises site efficiency, reduces emissions, reduces noise pollution and cuts costs for fuel and maintenance. Power Saving Solutions has a strong track record of growth, driven by rising demand from sectors including construction, transport and utilities for products that support the transition to more cost-efficient clean energy sources. It operates both a rental, sales and service model and has increased revenues by 34% in the year ending 31 December 2023. During 2024, it has doubled its manufacturing and technical labour force to increase capacity and support further R&D. LDC is backing the business’s management team, led by Andy Richardson, Tom Cummins and Graeme Maxwell. The firm’s support will help Power Savings Solutions to cement its position in the growing battery storage industry and deliver a growth strategy underpinned by product development and diversification into new end markets. The investment was led by LDC’s East Midlands and East of England team, including Partner David Bains, Investment Manager Nicole Wong and Investment Director Simon Peacock, with David and Nicole joining the board as Non-Executive Directors. As part of the transaction, Gary Jacobson will join the business’s board as Non-Executive Chairman, bringing with him more than 20 years of sector experience from his time with Bifold Group and Rhino Products. Mike Marrison, formerly of LDC-backed equipment-as-a-service provider SRL Traffic Systems, also joins as a Non-Executive Director. Andy Richardson, CEO at Power Saving Solutions, said: “The last few years have been transformative. The investments we’ve made in our products and people have put us at the forefront of a growing market that is making the nationwide transition to cleaner energy sources possible. “When choosing an investment partner, I was immediately impressed by LDC’s commitment to the transition to net zero, as demonstrated by their partnerships with other ESG-focused businesses. With LDC’s assistance we believe there is a fantastic opportunity to continue to grow and take advantage of increasing demand for our products and services.” David Bains, Partner and Head of the East Midlands and East of England at LDC, added: “Battery storage has an essential role to play if the UK is to decarbonise its energy system by 2035. “Power Saving Solutions has established itself as a market leader, with a product set that enables customers to balance their existing generation with cleaner, more cost-effective options. We’re excited to support Andy and his team as they continue to grow across the UK.” LDC was advised by Gateley (legal), Grant Thornton (corporate finance), BDO (financial due diligence), CIL (commercial due diligence), BFY Group (energy), KPMG (tax) and Better Faster Growth (sales). Power Saving Solutions was advised by FRP Corporate Finance (corporate finance) and Jamieson Alexander (legal).

The Polish Club changes hands for first time in generations, breathing new life into the property

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The Polish Club changes hands for first time in generations, breathing new life into the property
The sale of The Polish Club has completed, breathing new life into a once thriving property. The 7,000 sq ft community building on Derby’s Kedleston Road is a property that many people will have visited over the years for parties, discos and all kinds of celebrations and get-togethers. Salloway Property Consultants were appointed by The Polish Catholic Mission to assist with selling the property with vacant possession. The premises, which comprise the former residential dwelling to the front and community hall to the rear, proved popular during the initial marketing period. “I am delighted that the sale has now completed,” said William Speed of Salloways. “As everyone will be aware, the property was under offer before to a special educational needs school. Sadly, planning permission was not forthcoming and the purchaser withdrew. “After approaching the under bidders, we quickly secured another purchaser to progress with the property, ensuring that as little time as possible was lost.” The Polish Catholic Mission were sad to see the property move on but were excited for what the future holds for the property. A representative said: “Whilst we are of course sad to say goodbye to a property that we have called our home for such a long time, we are excited for our next steps in Derby, a city we have called home for generations now.” Speed concluded: “There is still an acute shortage of good-sized lots on the market that are suitable for redevelopment for schools, nurseries, care homes, doctors’ surgeries or any other service providing occupiers. We would be delighted to hear from anyone considering selling similar sites.”

Leicester toy charity to make a difference this Christmas thanks to donation

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Leicester toy charity to make a difference this Christmas thanks to donation
Children in Leicestershire who don’t receive gifts at Christmas will now be able to enjoy some festive cheer, thanks to a donation to a local toy charity. Toys on the Table – which was set up 20 years ago – has been awarded the grant by Platform Housing Group. The donation was part of the social landlord’s yearly community kindness campaign, which will see it support 62 local specialist organisations, charities, food banks and events across its East Midlands communities, totalling £35,039.12. Overall the campaign will donate £82,135 this year. Bindya Mistry, Community Engagement Officer at Platform Housing Group, said: “We are so pleased to support the fabulous work undertaken by Toys on the Table, an organisation run purely by the goodwill of volunteers. “As a social housing provider, we have more than 3,300 homes across the city of Leicester and the wider county and it is very likely that many of these children will be receiving gifts from Toys on the Table. “It is heartwarming to think that our donation will ensure that those children who would otherwise have gone without this Christmas will wake up to a present on Christmas morning.” Toys on the Table was launched in the early 1980s, when Leicester Round Table established the project. In recent years it has become a separate independent registered charity, run by a Board of Trustees who represent community service organisations including Rotary International, Inner Wheel, the Society of Leicestershire and Rutland Golf Captains, together with workers and volunteers from both Leicester City Council and Leicestershire County Council Social Services. Last year the charity provided more than 3,500 presents. Referrals are made through a social worker or schools for children up to the age of 16 years. Mac Clarke, Chairman of Toys on the Table, said: “We are so grateful for the donation we have received from Platform Housing Group. The cost of living crisis has deeply affected families in Leicestershire and it is heartbreaking to think of children waking up on Christmas morning without a present. “As a charity we rely on donations and would like to say a heartfelt thank you to Platform for its support.” Other projects in Leicester and the wider county that have benefited from Platform’s Kindness Campaign include Zinthiya Trust, The Ark Warm Space Shelton, New Life Church Coalville Foodbank, The Bridge East Midlands and Leicester South Foodbank.
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