Growth returns for UK economy

Tess Egginton
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Growth returns for UK economy
The UK economy returned to growth in January, according to new figures from the Office for National Statistics (ONS). UK GDP (gross domestic product), a key measure of economy growth, increased 0.2% in January, in line with expectations following a 0.1% fall in December. The increase was supported by a pick up in construction activity (growing 1.1% quarter-on-quarter) and a stronger month for the services sector (increasing 0.2% quarter-on-quarter and acting as the largest contributor to the rise in GDP). Production output, however, fell 0.2% quarter-on-quarter. The modest growth comes after the UK fell into a recession. Tina McKenzie, Policy Chair of the Federation of Small Businesses (FSB), said of the figures: “An increase in GDP is an encouraging start to the year, and one small firms will be relieved to see, as it raises hopes that we may be pulling out of the shallow recession declared following low levels of negative growth through the second half of 2023. “It’s too early to celebrate with any great level of vigour, however, as small firms are certainly finding the going tough at the moment. “The recent Budget contained some help for small firms, notably the raising of the VAT threshold from £85,000 to £90,000 and the cut to National Insurance contributions, but small firms hoped for more help with day-to-day costs. “This isn’t just about existing businesses starting to turn to growth in 2024; this is about creating the conditions for people to set up in business for the very first time, the next generation of start-ups who will make up the ground we lost during the Covid years when the UK small business population contracted by 500,000, losing one in 10 of them. “Our Small Business Index research has found particular cause for concern among hospitality and retail firms, which are trailing far behind the overall average in terms of confidence levels. Indeed, one in eight firms in the hospitality sector expect to close entirely in the next 12 months, nearly four times the rate for all businesses, which should be a huge wake-up call to the Government about the dangers facing many thousands of small businesses. “Small businesses contribute an enormous amount to the economy, and a sustainable recovery will be built on their success and growth. Today’s news must be built on if it is not to turn into another false dawn for small firms.”

Red flags for East Midlands businesses as government forecasts economic growth

Tess Egginton
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Red flags for East Midlands businesses as government forecasts economic growth

East Midlands businesses face a tough road ahead if they are to meet Britain’s 0.8% economic growth forecast for 2024, cited by Chancellor Jeremy Hunt this month (6/3/24) and based on latest projections from the Office for Budget Responsibility (OBR).

Although the forecast is higher than the 0.7% highlighted in the OBR’s previous outlook, published last November, new research from the Midlands branch of the UK’s insolvency and restructuring body R3 indicates the extent of the struggle facing the region’s companies as they attempt to fight back from a pandemic and a 2023 slump into recession.

Based on an analysis of data from business intelligence provider Creditsafe, the R3 Midlands figures show that East Midlands insolvency-related activity – which includes liquidator and administrator appointments as well as creditors’ meetings – increased by 27.03% last month compared to January, and by 2.17% against 12 months previously in February 2023.

A further ‘red flag’ for the East Midlands economy is raised through a decrease in the number of start-up businesses in the region, which has fallen by 8.68% from 2,995 in January to 2,735 in February.

Additionally, the number of East Midlands companies with late payments on their books has continued to rise, from 23,194 in January to 23,307 last month.

R3 Midlands chair Stephen Rome, a partner at law firm Penningtons Manches Cooper in the region, said: “There are a number of forces hindering economic recovery, not just in the East Midlands, but throughout the UK.

“Some of them are due directly to the pandemic and the subsequent withdrawal of monetary support, but other factors include the war in Ukraine and a tightening of monetary policy to control inflation and the cost of borrowing.

“The uncertainty this is creating in the local business sector is significant, and it appears to be impacting on entrepreneurial prospects in the region as well as on the health of more established companies.

“It’s therefore vitally important for business owners to be cautious and keep a very careful eye on cashflow as the economy continues to challenge. If difficulties arise, it’s crucial to take professional advice as soon as possible.

“There is much which can be done to support local business owners if they decide to seek help early enough.”

Ilkeston furniture manufacturer receives £7.5m investment

Tess Egginton
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Ilkeston furniture manufacturer receives £7.5m investment
Ilkeston-based The Belfield Group, manufacturers of upholstered furniture and home furnishings, has received a £7.5m investment from its principal stakeholders, NorthEdge LLP and Virgin Money. The investment comes as part of a wider package of measures designed to support the business in completing its transformation plans for Westbridge, Tetrad, Belfield Home & Leisure and Clinchplain. It will enable further investment in plant, equipment and system upgrades, modernisation of facilities and a faster roll-out of its people-first plans. Tom Prestwich, Group MD, said: “This investment from NorthEdge and Virgin Money is great news for the Group, and for everyone at our Westbridge, Tetrad, Belfield Home & Leisure, and Clinchplain operations. We are proud of our heritage in design-led innovation and in the quality and craftmanship of our products. “We have brilliant and talented people at the Group who have worked tirelessly through challenging market conditions to enhance the Group’s status as a people-first, customer experience-driven, design-led business and I can’t wait to work with them to deliver our future. Special thanks to NorthEdge and to Virgin Money for showing their support and confidence in us to deliver on our plans.” Nicola McQuaid, Investment Director for NorthEdge LLP, said: “We are delighted to be investing in the Group at this time. The Group’s plans are very exciting and will deliver substantial strategic value to all stakeholders. “Tom and his wider team have done a magnificent job to reposition the Group as a resilient business in a challenging market and we look forward to working with him and his team.” Tracey Bailey, Senior Director, Virgin Money, said: “Virgin Money has enjoyed a long and successful relationship with the Belfield Group, and we are delighted to play our part in supporting the business at this exciting time.”

Plans submitted for 18-storey residential development in Nottingham

Tess Egginton
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Plans submitted for 18-storey residential development in Nottingham
Plans for a new residential building, reaching to 18 storeys, on Queens Road in Nottingham City Centre have been submitted. MRP Nottingham Ltd are behind the proposals, which represent Phase 2 of the wider redevelopment of the former 1-4 Queen’s Road site. Phase 1 comprises a 406 bed student accommodation building currently under construction.
The new plans are for a hybrid residential development, comprising Build to Rent (BtR) and shared apartments. The building will be positioned to the south of the brownfield site, forming a central courtyard to be shared by both the Phase 1 student accommodation building and the proposed Phase 2 residential building. The development would contain 274 dwellings (a mix of build-to-rent studios, 1 bed, 2 bed, and 3 bed apartments, and shared 4 and 5 bed apartments) as well as a range of amenity spaces, including co-working space, meeting rooms, a cafe, landscaped roof terrace, and sky lounges. A planning statement submitted to Nottingham City Council says the scheme “will redevelop an underutilised site for residential use and add to the choice of housing available in the city centre. The proposed development will preserve and enhance the character and appearance of the Station Conservation Area and improve the wider street scene.”

Innovation Awards finalists meet competition sponsors

Stuart Pearcey
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Innovation Awards finalists meet competition sponsors
This year’s Leicestershire Innovation Awards shortlisted businesses have joined sponsors and other guests at De Montfort University for a pre-awards event. The awards are this year being led by the LLEP Business Gateway Growth Hub for the first time. Dr Nik Kotecha OBE DL, Chair of the LLEP Innovation Board, congratulated entrants for reaching the final shortlist. He said: “Everyone reaching the shortlist has, in fact, already succeeded. The standard of entries has been so high this year – competition has been incredibly strong.
“Our finalists have all demonstrated exceptional achievement, commercial impact, technical excellence, and creativity – all underpinned by an innovative mindset. “Our entrepreneurial community throughout Leicestershire is driving growth through innovation, creating jobs and strengthening our economy – we have much to celebrate together.” Phoebe Dawson, Chief Exec of the Leicester and Leicestershire Economic Partnership noted that innovative thinking was required from the Growth Hub itself as it took the lead on the awards for the first time late last year. She said: “We worked with partners and sponsors to secure the event for 2024, build a whole new nomination platform, and secure a record haul of nominees. The finalists from those nominees are here tonight and it’s great to meet face-to-face.” Phoebe described the Business Gateway Growth Hub’s work in supporting innovative small businesses over recent years, with gains in productivity made across a host of sectors. “The Growth Hub will continue joining up the dots for local businesses needing support as the LLEP transitions into a new structure over coming months.”

Lincoln tech business makes acquisition as part of growth strategy

Tess Egginton
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Lincoln tech business makes acquisition as part of growth strategy
Bluecube Cloud Services Limited has acquired Techbox Managed IT Services Limited as part of its business growth strategy as it evolves from a communications provider to MSP (managed service provider). Bluecube was founded 15 years ago, initially to provide mobile phone services for business, as well as broadband and telephony. The communications side of the business evolved and Bluecube became a key provider of hosted telephony, unified communications, mobile and internet connectivity services. Last year the business entered into the IT sector and the acquisition of Techbox Managed IT Services adds momentum to this growth. In a statement on the acquisition, Managing Director Paul Reames said: “We are absolutely thrilled to welcome the Techbox team and a diverse base of business and education sector clients to add to our growing customer base. “The merging of the Techbox and Bluecube skill sets demonstrates our commitment to bringing further new talent into the business as we strive to become a leading MSP.” Techbox was founded in 2018 by Andy Fellows, who becomes Head of IT Services at Bluecube as part of the acquisition deal. Andy and his team have more than 20 years of experience in the IT industry supporting clients in the education and SMB sectors. As part of the acquisition Bluecube has taken new and larger offices in Lincoln to make room for the new team.

Derby HR & employment company recruits new head of client services

Tess Egginton
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Derby HR & employment company recruits new head of client services

A HR & employment company has continued its growth by adding an experienced head of client services to its ranks.  

Derby-based Precept has welcomed Mark Honeybell to the team. Mark has previously worked for Flint Bishop, Knights and TDX Group, where he was client services excellence manager.  

His appointment brings the number of members at the Mansfield Road business – part of the Barron McCann group of companies – to seven.   

Mark, who is also commanding officer in a voluntary role with Derbyshire Army Cadets, said: “I am delighted to have joined the team at Precept. 

“I have been admiring them from afar for a while now and I like their ethos and what they stand for; they offer no-nonsense HR & Employment Law services and genuinely care about the people they work with.” 

Mark has known Precept director and co-owner Rob Tice for more than 10 years; the pair worked together at Flint Bishop in 2010.  

“The position I held at Flint Bishop was very similar to the one I’ll be doing at Precept,” said Mark. 

“My job at Flints was to grow the business and Rob trusted me to just get on with it; we worked well together, and it will be great to rekindle that relationship at Precept. 

“My job at Precept is to get to know the clients and to nurture the relationship. It’s a very important job and I’m looking forward to understanding more about Precept’s clients and what they’re about.” 

Mark spent more than five years in the Army. A former cadet himself, Mark looks after 950 young people as Commandant with Derbyshire Army Cadets.

It is a big commitment, but one that Mark relishes. He said: “I have a team of 160 people and we are governed and guided by the British Army.

“My main responsibilities include leading and overseeing the delivery of people activities across the organisation and attracting new volunteers.  

“We cover a huge area of Derbyshire and aim to give these young people – many whom are from disadvantaged backgrounds – opportunities to grow themselves during trips to incredible places. In the past, we’ve taken cadets to Cyprus and the base camp of Mount Everest. It’s hugely rewarding.”

Director and co-owner Rob Tice said: “We have gone through a huge period of growth over the last 18 months at Precept and we are delighted to welcome Mark to the team; we are now one of the largest HR & Employment Law teams in the East Midlands.

“Mark brings with him a wealth of experience and we are looking forward to another busy year at Precept.”

Rolls-Royce SMR welcomes international agreement between UK and Poland

Stuart Pearcey
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Rolls-Royce SMR welcomes international agreement between UK and Poland
Rolls-Royce SMR has welcomed the agreement between Polish industrial group Industria and UK-based Chiltern Vital Group to collaborate on international projects to deliver low-carbon energy using Rolls-Royce SMR technology. In 2023, after working with Rolls-Royce SMR for over two years, Industria selected Rolls-Royce Small Modular Reactor technology to fulfil the zero-emission energy goals of the Central Hydrogen Cluster in Poland and as part of their plans to produce 50,000 tonnes of low-carbon hydrogen every year. CVG, a leading UK multi-sector project developer, was recently confirmed as the preferred bidder for the acquisition of the Gloucester Science & Technology Park from South Gloucestershire & Stroud College. With its partners – including Western Gateway, SGSC, University of Bristol, Vital Energi and Rolls Royce SMR – CVG intends to create a world-first net zero and nuclear technologies campus. This will be the first step towards a ‘net zero super cluster’ investment zone, encouraging the roll out of Rolls- Royce SMRs alongside an array of net zero technologies. Alan Woods, Rolls-Royce SMR’s Director of Strategy and Business Development, said: “This is an extremely positive step forward for Rolls-Royce SMR and we are delighted to see two of our close partners agree to collaborate on their efforts to bring our technology to fruition. “This is an exciting development. Both CVG and Industria are highly capable organisations, able to deliver low-carbon energy projects powered by Rolls-Royce SMRs. This announcement further opens the opportunity for CVG to support and enable Great British Nuclear (GBN) to deliver innovative technology by the early to mid-2030s.” The site, next to the former Berkeley Magnox nuclear power station on the banks of the River Severn, was home to the Berkeley Laboratories and has been at the forefront of science and nuclear technology for over 40 years. Berkeley and nearby Oldbury were already amongst several prioritised sites across England and Wales which have the potential to host multiple Rolls-Royce SMR power plants. After being shortlisted at the end of 2023, Rolls-Royce SMR is committed to progressing through the GBN technology selection process. Being announced as a successful bidder, later this year, will allow immediate investment in the UK supply chain. Each Rolls-Royce SMR can power a million UK homes for 60 years – supplying clean, affordable electricity for generations to come while supporting thousands of long-term, highly skilled jobs. The Rolls-Royce SMR design is progressing well through the Generic Design Assessment process by the UK nuclear industry’s independent regulators and is two years ahead of any other SMR inEuropean regulatory assessment.

Well known Chaddesden business under new ownership

Tess Egginton
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Well known Chaddesden business under new ownership

One of Chaddesden’s best known businesses is under new ownership after a member of staff bought the firm saving it from closure.

Carpenter Myles Hayhurst, 31, had been working for Castle Blinds, in Nottingham Road, for three years when its owners decided to put it up for sale after running the store for 26 years.

Myles, who previously worked as a precision carpenter making bespoke home furniture, has pledged to take the firm into its third decade by continuing to offer a wide range of tailormade blinds, shutters and curtains to homes and businesses in Derbyshire.He has retained all nine members of staff at the firm and already secured contracts with a number of big clients most recently replacing the blinds in the Lund Pavilion at Derbyshire County Cricket Club.

He said: “Castle Blinds has been a long-standing fixture in Chaddesden for decades and has sold and fitted thousands of blinds, most of which were made in our workshop.“Our products are really high standard and reasonably priced, so I know we have potential to be on the high street for another 26 years – there is potential to double our turnover in no time at all.

“My background in carpentry means I have an attention to detail that is deeply engrained – I measure everything to the millimetre and I’m swift of foot; all potential customers receive their quote within 24 hours.”

The firm has forged collaborations with Peveril Interiors and Floorcraft and has provided curtains and blinds for companies including Rolls-Royce, Bower and Kirkland, Mitie, JCB and Trent Barton.Most of the curtains and blinds are made on site at the shop, which is an Aladdin’s cave of fabrics, or in the purpose-built shed at the back of the store.

Myles, who attended Chellaston School, added: “I will be forever grateful to the previous owners Peter and Teresa for the opportunity they have given me and I fully intend to continue their hard work across the East Midlands.

“We have some customers who have been coming to the shop for years because they know we make everything on site and so can be really bespoke, plus we offer that personalised service.

“Olive and Karen in the shop have a combined experience of 24 years so they know our products really well. We ensure a perfect fit and believe we’re the best in the region at what we do.”

Melton Mowbray industrial investment sold

Tess Egginton
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Melton Mowbray industrial investment sold
FHP have completed the sale of four income producing industrial units in the centre of Melton Mowbray to Kindale Limited, who were represented by Toby Yates of Yates Real Estate Ltd. The industrial units, totalling 27,024 sq ft and let to a Signage Company, a Drama and Dance group and a Motorcycle Retailer and Repair Shop, were owned by Lidl who had acquired the property for possible expansion of their adjacent store some years ago. David Hargreaves, who acted for Lidl in the marketing and subsequent sale, said: “The 4 units provide 27,000 sq ft of accommodation and currently deliver an income of just £51,000 per annum. Two of the leases have expired with the tenant wanting a new lease and therefore there is scope to grow the income to £100,000+ per annum. “Industrial investments are in great demand and, as expected, we had strong interest resulting in a sale following ‘Best Bids’ to Bedfordshire based Kindale Limited at just over £1 million, showing an initial yield of circa 4.70% and a reversionary yield of circa 9.00%.” Kindale is a privately owned property company that specialise in acquiring hands-on asset management type properties with opportunities to add value, and so this parade of industrial units was ideal. Toby Yates of Yates Real Estate acted for Kindale with David Hargreaves of FHP acting for the vendor, Lidl.
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