Strong sales see Next upgrade expectations
Enderby-based retailer Next has upgraded its expectations for the year following strong half year results.
In the half year ending July 2024, total group sales rose to more than £2.9bn, up from £2.7bn in the same period of 2023.
Meanwhile, Next Group profit before tax saw a 7.1% increase to £452m from £422m.
The business has also seen a robust start to its second half, with full price sales over the first six weeks materially exceeding expectations, being up 6.9%.
As a result, second half full price sales growth has been upgraded to be up 3.7% versus last year (previous guidance +2.5%), and full year, full price sales are now expected to be up 4.0%, with total Group sales (including subsidiaries) up 6.6%.
Furthermore, full year pre-tax profit guidance has been increased by £15m to £995m (up 8.4% on last year).
On upgrading its full year sales and profit guidance, Next said: “We are upgrading the profit guidance we issued on 1 August by +£15m to £995m. This is as a result of the strength of our full price sales over the last six weeks.
“We now estimate that full price sales in the second half will be up +3.7% (against our previous estimate of +2.5%). This represents an increase of £30m of full price sales which, after accounting for other anticipated changes in our cost base, is expected to deliver an additional £15m of profit.”
Rolls-Royce to sell Naval Propulsors & Handling business
Rolls-Royce has reached an agreement to sell its Naval Propulsors & Handling business to Fairbanks Morse Defense.
The sale comprises the naval propulsors units in Pascagoula, Mississippi and Walpole, Massachusetts, in the US, as well as the specialized naval handling systems unit in Peterborough, Ontario, Canada.
The Naval Propulsors & Handling business manufactures and supports a range of specialist propellers and waterjets for naval applications, as well as specialized handling systems that enable the deployment and recovery of manned and unmanned craft, and other cargo, from naval vessels.
Rolls-Royce will retain its Naval Gas Turbines and Generator Sets operations, which provide power dense solutions for naval propulsion and onboard power needs.
Adam Riddle, President – Defense and Chairman & CEO, Rolls-Royce North America, said: “Rolls-Royce Naval Propulsors & Handling is an industry leader and trusted supplier to navies around the world.
“We are pleased to collaborate with Fairbanks Morse Defense, who recognizes the value of this business and the outstanding opportunities for its strong future. We believe this transaction represents the best outcome for the business, its people and the military customers they serve.”
Greater Lincolnshire’s devolution deal gets the green light
Devolution for Greater Lincolnshire is to go ahead, bringing together North East Lincolnshire, North Lincolnshire, and Lincolnshire County Council together as the Greater Lincolnshire Combined County Authority.
It’s expected that devolution will progress through its final legislative stage to allow the forming of the new authority before the Mayoral election next May.
The Leader of North East Lincolnshire Council, Cllr Philip Jackson said: “I am sure I share the sentiments of the Leaders of Lincolnshire County Council and North Lincolnshire Council, when I say this is the best possible news we could have hoped for. Months and months of dedicated hard work and effort has been put into creating a vision for Greater Lincolnshire that will offer a cohesive approach – allowing this region to grow and prosper.
“Our deal was supported by the last Government with millions of pounds of funding agreed to be devolved down to our new Greater Lincolnshire Combined County Authority to ensure we would be able to truly invest in our key priority areas, which will underpin our positive way forward.
“I am therefore delighted that Greater Lincolnshire devolution continues to have the support of the country’s new Government and I now look forward to continuing our journey towards more local control with funding and powers handed to those who are closer to the communities they serve. We have a chance to make a real difference.”
Lincolnshire County Council Leader Martin Hill said: “This is great news and I’m pleased we are able to move forward with devolution to deliver growth in Greater Lincolnshire. We have always been clear that strengthening local decision-making where we consider the needs and wants of our communities, will give the best results for residents and businesses.
“It’s clear that having a Mayoral Combined Authority will give us the ability to liaise directly with the government about what is best for our residents and be able to achieve our ambitious plans more quickly. The decision to take this forward reflects our strong partnership work with North Lincolnshire and North East Lincolnshire councils, and the hard work we have all put in to making sure it’s the right deal for our area.”
Cllr Rob Waltham of North Lincolnshire Council, said: “Our £720m deal was supported by thousands of residents and has been on the table for years and negotiated earlier this year. At last, we can get to work on seizing this monumental opportunity – bringing better paid jobs to the area, boosting skills, expanding local infrastructure and enhancing our environment across Lincolnshire.
“We will continue to strengthen ties across our great historic county – I am incredibly proud to have been born, educated and lived and worked in Lincolnshire for most of my life and to have 10 generations of my family living throughout Lincolnshire. We are a great county full of inspirational people who deserve the best opportunities for them and their families as we seek to level up Lincolnshire to deliver a better quality of life for local residents.”
The financial Deal remains the same as finalised between the three lead authorities and the previous Government, with a total investment fund of three-quarters of a billion pounds over the next 30 years. This includes an annual £24m Mayoral Investment Fund to invest in priority areas of jobs and skills; housing & highways, transport, the environment and nature, net zero, digital improvements, and innovation and trade. There is also an initial capital funding pot of £28m including brownfield funding for individual schemes across Greater Lincolnshire.
Leicester College breaks ground on new Aeronautical and Space Engineering Technology Centre
Leicester College has officially broken ground on the construction of it’s new, state-of-the-art Aeronautical and Space Engineering Technology Centre at the Abbey Park Campus.
The new facility, which is scheduled for completion by May 2025, will deliver Level 4 and 5 technical skills, and will provide crucial support for the aeronautical and aerospace industries.
The new 800-square-metre building will be home to workshops, propulsion, aerodynamic, avionic and instrumentations laboratories, and collaborative working spaces. It is designed to support the growing need for skilled professionals in the aerospace industry, which is projected to require over 10,000 additional aerospace engineers in England by 2033.
Leicester College is working with main contractor, Wilten Construction, on the new facility.
Shabir Ismail, Deputy Principal at Leicester College, said: “We are so excited to break ground on our new facility, set to enhance technical skills in the aeronautical and aerospace industries. This facility is not just a building; it’s a demonstration of our commitment to supporting our regional network of employers and stakeholders and building a skilled workforce for the future.
“As the demand for aerospace engineers continues to grow, this project will play a crucial role in addressing that need. We’re excited about welcoming students to the new building next year and look forward to the positive impact it will have on the industry and beyond.”
Phoebe Dawson, Director of Business and Skills at LLBSP, added: “It’s a really exciting time for the college and the city. The UK space sector is worth more than £18.9 billion and growing twice as fast as the UK economy, and it currently employes 52,000 people.
“But staff recruitment is frequently referenced as the biggest constraint to growth and this facility will provide a clear pathway in a broad range of subjects and deliver a talent pipeline for those organisations in that sector locally.
“As a business and skills partnership, we are determined to close the gap between the roles and jobs of the future, and the skills that will be required. This facility is going to go some way to supporting that.”
Number of firms offering 60-day payment terms more than doubles post pandemic
One in six B2B suppliers are offering their business customers over two months to pay their invoices as a route to securing sales – twice as many who offered such terms in 2020.
That’s the finding in a new joint report from economic consultancy Cebr and lender iwoca, which reveals the number of suppliers offering repayment terms over 60 days to customers has surged from just 7% of suppliers in 2020 to 17% this year.
This comes as more businesses are asking for payment flexibility from their suppliers, says the report. More than eight in 10 suppliers say they have to adjust payment terms for business customers, nearly twice the rate four years ago.
Changes are having to be made to secure sales, as two in three B2B sellers report that offering trade credit increased their number of sales. Three out of four (75%) suppliers offer longer repayment terms for loyal or large customers, or for bigger orders.
On the other side of the deal, nearly half of surveyed business customers reported avoiding using a supplier, or considering doing so, due to short or non-existent payment terms.
The report, called Credit Where It’s Due, says the change is a welcome trend for buyers, outstanding payments in 2024 are more common than they were at the height of the pandemic. Nearly half of UK suppliers serving business customers are now owed in excess of £10,000 from their trade customers, up 13pp from 2020 levels. A third of suppliers are very confident that their invoices will be repaid, but fewer than one in three (29%) are ‘very confident’ in assessing customers’ creditworthiness.
iwocaPay co-Lead Lara Gilman said: “The sector has always talked about payment terms in the context of big corporations trampling over small ones. But since the pandemic it’s clear that across the board, firms – including SMEs – are now calling for flexibility from their suppliers to keep business moving.”
Christopher Breen, Head of Economic Insight at Cebr said: “Trade credit continues to be an important tool in B2B transactions, offering buyers the flexibility to purchase now and pay later. However, it presents challenges for suppliers, such as late payments and the potential accumulation of bad debt. “Despite these risks, an overwhelming majority of B2B suppliers offer some form of payment terms, recognising the importance of trade credit in securing sales. The already widespread use of trade credit systems presents an opportunity for them to be modernised by the use of digital solutions, which could help both suppliers and customers to navigate these financial pressures effectively.”Financial advisory firm triples headcount
Independent financial advisory firm, Dow Schofield Watts (DSW), has tripled the headcount of its Midlands Corporate Finance team, from three to nine, just one year since its launch in September 2023.
In its first year, the Midlands DSW Corporate Finance team has established itself as a key player in the region’s corporate finance market, advising on multiple mid-market deals. Its growth has also led to a recent move into a larger office at The Dock in Leicester’s Space City Enterprise Zone to accommodate its expanding operations.
The team has already completed several notable transactions. In May 2024, the team advised on Bakkavor’s acquisition of Moorish, a well-known premium humous brand, which now sits alongside household names such as Pizza Express, The Delicious Dessert Company, The Pizza Company and Pinch in the FTSE 250 listed business’s portfolio. Notably, this was the team’s first deal.
In July 2024, the team supported Brand K Group, a major UK supplier of radiators and bathroom equipment, on its acquisition of Paladin Radiators, marking the seventh time Harry Walker and Brand K had worked together.
Harry Walker, founding partner of the Midlands DSW Corporate Finance team, said: “Since joining Dow Schofield Watts a year ago, we’ve seen tremendous growth, expanding our team with six new members, including three over the summer, and completing some exciting, high-profile deals with more in the works.
“Our new office in Leicester’s Space City gives us plenty of room for further growth and places us at the heart of a tech-led and innovative community of high growth businesses, reflecting our aim to bring a fresh and innovative approach to dealmaking in the Midlands.”
The office’s growth has been bolstered by the addition of several key hires. Launched by Harry Walker, Fahim Kassam, and Daniel Choucino – who all joined from FRP Corporate Finance – the team has since welcomed Shaf Bheda (partner), Ryan Shields (partner) and most recently Ishan Sharda (executive), Zain Mahmood (manager), and Gurpreet Poonia (manager). The team has also been supported by summer intern Manvir Goutam from Leicester University and executive assistant Nancy Benn.
Shaf Bheda, founding partner of the Midlands DSW Corporate Finance team, added: “We’re thrilled with the success of our first year, firmly establishing DSW as a key player in Midlands dealmaking. Our commitment to the market is clear through significant investments in people, and office move. With a strong pipeline ahead, we’re excited to share more completions soon.
“We’re grateful to everyone who has been part of our journey so far and look forward to building on this momentum as we continue to grow.”
Freeths named Law Firm of the Year
Law firm Freeths, which has offices in Derby, Leicester and Nottingham, has won the coveted title of Law Firm of the Year at this year’s esteemed Legal Business Awards.
Hailed as the ‘most prestigious event in the legal calendar’, the 27th annual Legal Business Awards celebrates the very best in the legal profession. Legal Business is the team behind the Legal 500.
As one of the fastest growing firms in the UK, Freeths’ 2024 Law Firm of the Year success follows consistent double-digit annual revenue growth since 2015. Freeths was recognised by judges for its outstanding organic expansion with six of the firm’s 13 offices achieving annual revenues of more than £10 million.
Commenting on the firm’s success, Karl Jansen, National Managing Partner of Freeths, said: “As a firm, we’re incredibly honoured and proud of this prestigious recognition which certainly reflects the hard work and sheer dedication demonstrated by colleagues across our business over a number of years and not just the last 12 months.
“It’s an incredible achievement for Freeths and truly humbling to be named Law Firm of the Year, and I would like to personally extend a huge thank you to all of our colleagues, and also for the support we’ve received from our clients.”
Leicester and Leicestershire Business Board meets for first time
The newly-formed Leicester and Leicestershire Business Board has held its inaugural meeting.
Senior leaders came together at City Hall on Monday to represent local authorities, business, education, and the third sector.
Board members were welcomed by Chair Andy Reed OBE and Leicester City Mayor Sir Peter Soulsby.
Attendees also received a summary of the role of the Board and its relationship with the Leicester & Leicestershire Business and Skills Partnership (LLBSP).
LLBSP, which formed earlier this year, is led by Leicester City Council and Leicestershire County Council.
The Business Board will include delegates representing:
- Leicester City Council
- Leicestershire County Council
- Federation of Small Businesses
- Institute of Directors
- East Midlands Chamber
- Make UK
- Leicestershire Business Voice
- Voluntary, community, and social enterprise sector
- Higher education sector
- Further education sector
- Leicestershire district councils
- Rutland County Council.
MBO at East Midlands workplace consultancy Blueprint Interiors
The management team has completed a buyout at workplace consultancy and commercial interior design firm, Blueprint Interiors.
Rachel Biddles and Chloe Sproston have taken ownership of the business, which will see chairman and founder Rob Day take a step towards retirement and his passion for community-led projects for the company.
Operations director Rachel Biddles and creative director Chloe Sproston have been with Blueprint Interiors for 22 and 19 years respectively, having played a significant part in its innovation and growth over the years.
The new ownership marks a new chapter for the Ashby-based business – as it celebrates a record 12 months of trading and secures significant projects with household names in 2025.
Set up by Rob 23 years ago, Blueprint Interiors continue to shape the future of workplace design, meeting the evolving needs of employer and employee.
Rachel Biddles said: “This has been three years in the planning and it’s wonderful to be able to share the news with the industry. While it’s a strategic move, it has felt a natural transition with Chloe and me being in the business for such a long time.
“With a very busy order book and some big projects to announce in the coming months, there is plenty for Chloe and me to deliver and celebrate. This new ownership will enable us to continue to drive forward innovation and quality in workplace design, which is what Blueprint is known for.”
Chloe Sproston, said: “Rob has passionately created a vibrant company with strong ethics and values. His success is significant and he has been a fantastic mentor to Rachel and me.
“We have always had a clear sense of who we are at Blueprint, our expertise, and our desire to provide the best experience for our clients. We love this company and have always treated it as our own, so to now be a co-owner is incredibly rewarding.
“I want to thank Rob for putting his trust in us to take things forward, and the dedicated team who Rachel and I will be working alongside in this next phase of organic growth and expansion.”
Rob Day, said: “As we celebrate 23 years in business and a number of recent talent acquisitions, we now also celebrate this exciting new chapter for Blueprint.
“This has been a long time in the planning and I feel grateful and proud that Chloe and Rachel will now take the business forward. They have been instrumental in creating the company we have today so it couldn’t be in better hands.
“Their commitment to Blueprint along with their ambition, vision and sheer talent, ensure the ongoing success of the company, providing clients with our unique services and nurturing the best team in the business.
“Now is the perfect time to hand the reins over, whilst I’ll remain in my role as chairman and founder, as well as continuing to help drive our community and social value activities. There may also be some sailing on the horizon for me as I relish a little more free time! I wish Chloe, Rachel and the team the very best for the future and look forward to seeing their continued success.”
PKF Smith Cooper welcomes new private client manager
Oliver MacPhee, private client manager, joins the Nottingham branch of the PKF Smith Cooper tax team as the firm continues their expansion throughout 2024.
With the firm’s plan to double in size before the end of 2029, Oliver is one of 63 new hires the firm has seen this year, with the tax team welcoming 10 new members alone since January.
After obtaining a first-class degree in Accounting and Finance, Oliver completed the ATT in 2019 and went on to achieve the CTA in 2022. He has over seven years’ experience working with a wide range of clients, from directors and shareholders to high-net-worth individuals and trusts, advising them on how to pass on wealth in the most tax efficient manner.
He has a vast amount of experience in tax planning, specifically inheritance tax planning, trust planning and year-end tax planning, as well as HMRC enquiries, tax compliance and reporting.
On joining PKF Smith Cooper, Oliver MacPhee said: “I am excited to be joining PKF Smith Cooper as a private client tax manager within their tax advisory team. The team has already made me feel at home, and I am looking forward to partnering with our clients to address their tax needs with effective and tailored advisory services.
“My focus will be on building meaningful relationships and helping clients confidently manage their tax challenges by providing clear and practical solutions.”
Dean Castledine, private client director, said: “It is great to welcome Oliver to the firm’s growing tax team, and he will bring valuable knowledge and experience to the firm. I look forward to seeing how Oliver will strengthen our team and benefit our clients.”
