New Chair formally takes the reins at East Midlands Chamber
The new chair of East Midlands Chamber’s board of directors believes the region’s businesses will demonstrate their resilience despite the challenges 2023 will bring,
Kevin Harris, Leicester office managing partner at audit, tax and consulting services firm RSM UK, took over from Ian Morgan as chair at the beginning of this month – a role he’d been waiting for as Chair Elect since last June.
He was previously chair of the Leicester and Leicestershire Enterprise Partnership for four years, and is a former president of the chamber of commerce for Derbyshire, Leicestershire and Nottinghamshire.
He said: “Without doubt, this is going to be one of the most challenging years for East Midlands businesses. Many would be forgiven for being battle-weary as the cost-of-living crisis, and the impact of the pandemic and Ukraine war, are leaving deep imprints on the ability of local companies to survive and thrive.
“But I have a huge amount of optimism in our business community. Despite the difficulties, they are showing their mettle and resilience in the face of adversity and getting on with what they do best, which is running their businesses in local, national and international markets.
“However, they can’t do that in isolation, which is why taking up the mantle of chair for the Chamber in 2023 is a privilege with purpose.
“Our region’s businesses need an environment in which to flourish, to invest in skills and capital, and boost productivity.
“They are a vital part of the UK’s GDP and important for job and wealth creation. The levelling up and devolution agenda locally needs to remain high on the UK’s agenda, and my role will be to champion this and many other issues our local businesses need to succeed.”
Ian Morgan, who is also the chairman of Derbyshire County Cricket Club and deputy chairman of transport company Wellglade Group, said: “It has been an immense honour and privilege to chair East Midlands Chamber for the past four years. It is the leading business representation organisation with over 4,000 members and some 12,000 businesses affiliated to it in one way or another.
“Successfully guiding, advising and supporting the business community through Brexit, Covid-19 and the aftermath of both is the hallmark of the Chamber’s work, and I am proud to have played my part.
“It has a well-motivated, dedicated team led by chief executive Scott Knowles, and a first-class senior management group together with an outstanding board of directors with whom it has been a pleasure to work.
“In passing the baton on to Kevin Harris, I know the Chamber is in very good hands. Kevin is a long-standing board member, a recent past president and he is part of the organisation’s very DNA. The local business community could not have anyone more experienced or dedicated to the future of local business than Kevin and I wish him every success.”
Over half of businesses rate supply chains their top concern over next six months
Global and domestic supply chain pressures outrank access to labour, rising interest rates and mounting costs as the top concern facing over half (54%) of mid-sized businesses over the next six months, according to latest research from accountancy and business advisory firm BDO.
The bi-monthly survey – which looks at the challenges and opportunities facing mid-sized businesses – reveals the significant disruption UK businesses must confront, with a third (34%) experiencing delays due to complex customs regulations as a direct result of Brexit. The same number (34%) have seen the cost of goods sourced from the EU increase, while nearly a quarter (24%) have stopped sales to the EU completely. A rising number of COVID-19 cases and recent lockdowns in China have also caused delays for almost two in five businesses (37%).
While supply chain disruption is the biggest challenge facing firms, increasing costs are also a cause for concern. One in three (34%) report that raw materials and goods have become more expensive. The cost of importing or transporting materials and goods has also climbed for 31% of mid-sized businesses, rising to 40% in the property and construction industries. Most alarmingly, a quarter (25%) of firms are unable to source the goods and materials they need.
Faced with acute supply chain pressures and rising costs, businesses are taking action. Almost a quarter (23%) are onshoring their supply chain as they seek to reduce their dependence on importing goods or working with overseas suppliers. Even more (28%) are passing on rising costs to customers by increasing prices, with the same number planning to downsize their business to cut costs.
With access to labour ranked the second greatest challenge facing mid-sized businesses, skills and remuneration have become a top priority. One in three (32%) are investing in upskilling or retraining staff to tackle the skills gap and workforce shortages. 29% are introducing more flexible working and 33% will increase pay this year, with 8% doing so in line with or above inflation. Meanwhile, 12% are providing separate or one-off payments aimed at supporting employees through the cost-of-living crisis.
In the face of these challenges, businesses remain determined to drive growth. 36% are seeking new direct investment or equity financing for this reason, while nearly 39% expect to launch new products or services this year.
Ed Dwan, partner at BDO, said: “Medium-sized businesses are battling rising costs, supply chain problems and difficulty accessing labour amid a nationwide skills shortage. Whilst they are striving to remain resilient, existing resources can only go so far to help drive growth or investment in skills and innovation.
“These businesses are the engine of the UK’s economy and they should not be overlooked. Without the right support to help manage lingering labour and productivity challenges, they could see a knock-on impact on plans for improving productivity in the months ahead.”
Phenna Group strengthens cyber security offering with acquisition
Nottingham-headquartered Phenna Group, which aims to invest in and partner with selected niche, independent Testing, Inspection, Certification and Compliance (TICC) companies that serve a variety of sectors, has acquired PKI Solutions.
This acquisition adds new complementary services and strengthens Phenna’s Cyber Security offering, a key tenet of its future growth plans.
Formed in 2014 and based out of Portland Oregon, USA, PKI Solutions is the world’s foremost cybersecurity specialists providing public key infrastructure (PKI) products, services, and training to give organizations confidence in their identity and encryption systems.
PKI forms the basis of all modern authentication trust on the Internet and is a critical component underpinning security for the Internet of Things (IoT). For nearly a decade, PKI Solutions has partnered with organizations around the world to design, deploy, and operate their PKI.
Mark B. Cooper, Managing Director at PKI Solutions, said: “I am thrilled to be joining Phenna Group, who share my high growth ambitions for the business. The continued focus on customer success, world-class delivery of consulting services, and the expansion of PKI Spotlight throughout the enterprise market were critical when finding the right partner for us to move forward.
“Their unique, autonomous business model really resonated with me and from my first call with Paul and the Phenna team I was convinced they would be a great partner for PKI Solutions. I am excited and confident in the future opportunities as part of Phenna Group, to continue to expand our innovations, products, and services to our customers around the world.”
Paul Barry, Group CEO of Phenna Group, said: “I am delighted that PKI Solutions will be joining Phenna Group to strengthen our presence in the Cyber Security market and extend our international presence.
“Mark has been thoroughly professional to deal with throughout the process and I’m looking forward to welcoming him and his highly experienced team to Phenna Group. This deal adds new public key infrastructure (PKI) capability to our broader cyber offerings and gives us presence in the West Coast of the U.S., which I’m delighted about.”
Phenna Group were advised by RSM UK Corporate Finance LLP, Avonhurst and Davis Wright Tremaine LLP. PKI Solutions were advised by Paine Pacific LLC, Scarborough McNeese Oelke & Kilkenny PC, Stoel Rives LLP, and SNK Consulting PC.
Chesterfield firm advises banking regulator on sustainability
Chesterfield’s Green Arch Consulting is working alongside the Central Bank of Nigeria to help the organisation in its transition to a low carbon future.
The business’s founder, Emma Knight-Strong is a registered expert on sustainable finance and Green Transitions through the UK Government’s “Partnering for Accelerated Climate Transitions” programme (UK PACT).
Funded by the UK’s International Climate Finance, the UK PACT programme has provided funding for projects and skill-shares across three continents since 2018.
In 2022, Green Arch Consulting undertook a review for the Central Bank of Nigeria to help them evolve the Nigerian Sustainable Banking Principles, which are a set of principles designed to accelerate the transition to a lower carbon, climate resilient economy.
In January 2023, the business was commissioned to undertake further work to progress the update and evolution of these principles in line with international best practice.
Emma Knight-Strong, who lives and works in Chesterfield, will be carrying out a series of virtual workshops with the Central Bank as well as external stakeholders within the Nigerian financial space. The results of the workshops will be fed into, and Green Arch Consulting will be advising on, the redrafting of the principles.
Emma, founder of Green Arch Consulting, said: “Sustainability is increasingly an imperative for businesses to consider – this is driven by increasing regulations and policies driving in that direction, the very real physical impacts that climate change is having on businesses and their supply chains, as well as an overwhelming shift in public opinion on the topic.
“The financial world is increasingly heavily regulated in this area, resulting in significant pressures on the businesses and assets that they finance to consider sustainability and Environmental, Social and Governance (ESG) issues in a way never before seen.”
Administrators are ‘thrilled’ as Stanton Bikes Limited avoids closure after the business and assets are successfully sold
After entering administration on 11th November 2022, Derbyshire-based bicycle manufacturer and retailer Stanton Bikes Limited has sold its business and assets as a going concern to Stanton Bicycles Limited, a new company owned by Daniel Stanton.
Stanton Bikes Limited is well-regarded both nationally and internationally within the biking industry for designing, manufacturing, and selling hardtail and full-suspension bicycle frames.
The deal comes after Stanton Bikes Limited entered administration on 11th November 2022 after Dean Nelson and Nick Lee, Business Recovery and Insolvency Partners at PKF Smith Cooper, were appointed as Joint Administrators.
Speaking on the sale, Dean Nelson, Business Recovery and Insolvency Partner at PKF Smith Cooper, stated: “We are pleased to announce that the business and assets of Stanton Bikes Limited have been sold and will now continue to trade. Since it opened in 2011, Stanton Bikes has continued to establish a global presence in the biking world. However, recent financial difficulties have left the business in a perilous position.”
Dean added: “As the Joint Administrators, we always sought to sell the business as a going concern, so we are thrilled with this outcome protecting the brand, goodwill and employment. I am sure the revival of a household name like Stanton Bikes will be welcomed in Derbyshire and beyond.”
Phenna Group invests in RammSanderson
RammSanderson has announced a strategic investment partnership with Phenna Group to help it achieve its next phase of growth.
Since establishing in 2014 directors Oliver Ramm, Nick Sanderson and Anthony Mellor have grown the business to have over 50 staff and become a market leader in Ecology, Arboriculture and Flood Risk Assessments. Its client base is a range of public and private sector clients, including national infrastructure and large-scale housing and commercial developments.
Headquartered in Nottingham, Phenna Group’s aim is to invest in and partner with selected niche, independent Testing, Inspection, Certification and Compliance (TICC), and Environment, Social & Governance (ESG) companies that serve a variety of sectors, ensuring customers’ peace of mind by delivering first class assurance & consultancy services.
This acquisition augments RammSanderson’s market-leading Built Environment and Infrastructure platforms and adds geographic and complementary services to its extensive service offering, whilst strengthening and adding greater organisational capacity to its wide range of environmental and consultancy services.
Oliver, Nick and Anthony are excited to see the next growth phase of the business be realised with its new partner. “We’ve come a long way since establishing and are incredibly proud of and thankful for our team and reputation amongst our clients and peers. We have an exciting business plan for the next 5 years and have selected Phenna Group to partner with in order to support the three of us to spearhead this plan.”
Paul Barry, CEO of Phenna Group, stated: “Since my first meeting with Oliver, Nick and Anthony, I’ve been very impressed with their ambitions for their business and I’m really excited the RammSanderson team will be joining Phenna Group. They are a very experienced group, and their range of services will be highly complementary to those currently offered from our Infrastructure Division. I’m really looking forward to working with Oliver, Nick, Anthony and the wider team.”
Oliver, Anthony and Nick commented: “We are delighted to be joining Phenna Group and selected them as our partner due to their unique approach whereby our autonomy and identity are retained, whilst being a vehicle for our continued growth.
“We have been talking to Paul and the Phenna team for some time and whilst this has been a big decision for us, we are very confident we have selected a great partner to support us in the next stages of our growth and development. They have been easy to deal with throughout the process, always acting with integrity and transparency.
“Their operating model and culture will be a great fit for us and we are very excited about them supporting our growth journey. Our decision to partner with Phenna Group provides the Company and all of our team with exciting new opportunities for growth and development, whilst the company realises its full potential yet retains its identity, ethos and spirit.”
Phenna Group were advised by Johnston Carmichael and Avonhurst. RammSanderson were advised by Smith Partnership and Cedar and Co.
Integrated services group acquires majority shareholding in Northants firm
South Staffordshire Plc (SSPlc), an integrated services group that operates two regulated water companies and a range of complementary non-regulated businesses that serve essential services markets, has acquired a majority 92.5% shareholding in Infrastructure Gateway Ltd (IGL), with an option to acquire the remaining 7.5% in 2026.
Backed by its shareholder, funds managed by Arjun Infrastructure Partners, this acquisition for SSPlc marks a key milestone in the growth of its clean energy business, which already includes electric vehicle charging infrastructure and turnkey ground source and district heating services, to further support its customers’ decarbonisation goals.
Based in Kettering, Infrastructure Gateway Ltd, the independent multi utility infrastructure provider, currently serves residential housebuilders and commercial developers across the East of England.
One of a select group of UK companies accredited under the Lloyds Register, and holding Multi Utility Registration Status, IGL is also one of the UK’s top three providers of water connections to Ofwat appointed NAVs (New Appointments and Variations).
Phil Newland, CEO of South Staffordshire Plc, said: “This acquisition brings a highly complementary capability to our existing services, helping us to further strengthen our energy infrastructure and decarbonisation offerings.
“The expertise and passion of the IGL team has meant the business has already achieved a market leading position, and we’re excited to welcome the IGL team to our Group and to support the next chapter of their development as part of our overall growth strategy.”
Steven Draper, Managing Director of Infrastructure Gateway Limited, added: “We are delighted to join SSPlc and look forward to our future as part of the Group. We already have a strong regional client base, and SSPlc is the perfect fit to help us drive further growth opportunities; expanding our services nationwide and into next generation essential infrastructure markets.”
Dan Walker, Alex Odlin and Gregg Pendlington of Dow Schofield Watts’ corporate finance team advised SSPlc while James Killing and Tom Rowe from the transaction services team provided financial due diligence to the company.
Andrew Smith and Gweni Rees-Evans of Shakespeare Martineau provided legal advice to SSplc.
Bowmer + Kirkland awarded places on two national frameworks
Derbyshire-headquartered Bowmer + Kirkland has been awarded places on two further national frameworks, enabling it to bid for more public sector projects.
The Ministry of Justice (MoJ) Construction Services Framework covers projects up to £30 million and will include new build, refurbishment and minor works for the MoJ, HM Courts and Tribunals Services, HM Prison and Probation Service, the Legal Aid Agency and the Home Office.
The Crown Commercial Services Offsite Framework will provide a four-year stream of work with a value of £10 billion. It aims to support the public sector to innovate, drive efficiency and continue to work towards Net Zero Carbon targets. The focus will be on health, housing, education, justice and defence.
Bowmer + Kirkland’s success means that its construction division is now a supplier on 15 Frameworks.
Main Board Director responsible for Frameworks, Chris Arno, said: “Once again our success is down to the hard work of many people. We have proved our worth as a successful framework contractor through our work with the Department for Education. Bowmer + Kirkland is now well established as a public sector contractor alongside our extensive experience for private clients.”
Government recognises progress at Nottingham City Council with decision not to appoint commissioners
Nottingham City Council has welcomed the Government’s decision to continue with the current arrangements in place for overseeing ongoing improvements at the authority rather than appoint commissioners.
The decision means that the Improvement and Assurance Board chaired by Sir Tony Redmond will remain in place to support the council in implementing its ‘Together for Nottingham’ improvement plan.
Council leader, Cllr David Mellen, said: “We very much welcome the Government’s decision which reflects that the current arrangements in place are working.
“The council has already made many of the improvements expected of us by the Improvement and Assurance Board and the Government. In particular, we had agreed a balanced budget and medium term financial plan prior to the soaring inflation and energy costs that have affected the finances of households and councils up and down the country – and we are well on the way to balancing the budget for a second year.
“We recognise there is much more work to do to increase the pace of the changes and to put the council on a solid financial footing despite the huge budget pressures we and all councils are facing currently.”
The council’s Chief Executive, Mel Barrett, said: “We have previously said that our strong preference was to continue working with the Improvement and Assurance Board, with its balance of support and challenge, but that we were committed to working effectively with whatever arrangements Government put in place so that the intervention can be as successful as possible in as short a time as possible.
“We very much welcome the continued involvement of Sir Tony Redmond as chair of the Improvement and Assurance Board. We are committed to working together to address the need to reduce the council’s cost base whilst ensuring that we are providing economic, efficient and effective Best Value services to the people of Nottingham.”
The significant progress on improvements made over the last two years has included:
- Initially agreeing a balanced budget for the current year and Medium-Term Financial Plan for the next four years, prior to the huge increases in inflation and energy costs seen over the last few months. Plans have been fully worked up to do this again in March
- Reducing debt levels and increasing the disposal of property assets to fund council projects and priorities
- Identifying and responding to issues with unlawful HRA misallocation – commissioning and implementing recommendations from two independent reports
- Carrying out a review of council-owned companies including bringing Enviroenergy in-house; selling Thomas Bow and transferring housing services and revenue and benefits back to the council
- Working with bodies such as the Local Government Association and the Chartered Institute of Public Finance and Accountancy on implementing best practices at the council
- Investing in staff through leadership development programmes and best practice transformational change programmes, alongside leading private sector partners. This has provided significant opportunities for under-represented groups, reflecting the diversity of Nottingham as a city.
Private equity investor sells Nottingham’s Red Box
Livingbridge, the mid-market private equity investors, has sold its Nottingham-based investee, Red Box Recorders Group Limited to US firm Uniphore Technologies Inc.
The combination brings together Red Box, the dedicated voice specialist with over 30 years’ experience in empowering organizations to capture, secure and unlock the value of enterprise-wide voice, with Uniphore, the global leader in conversational artificial intelligence (AI) and automation.
Red Box will continue to operate from its base in Nottingham.
Livingbridge partner, Adam Holloway, said: “This has been another successful technology investment for us, building Red Box from a UK compliance specialist into a global business with a leading proposition for enterprises seeking sovereignty over their data and access to a new world of AI and automation solutions.
“The combination with Uniphore brings clear strategic benefits, accelerating value for the group’s customers in a dynamic and fast developing market. We are hugely thankful to the leadership team and skilled employees of Red Box and wish them every success in the future.”
Richard Stevenson, Red Box CEO, said: “The support from Livingbridge to invest in our latest platform, Conversa, has been instrumental in Red Box’s transformation, allowing us to respond to and exploit new opportunities and service global enterprise customers.
“They have been strong and value-added partners for the business throughout. We are excited about the next chapter as part of Uniphore as AI and automation becomes increasingly embedded in the way businesses operate and grow.”
Livingbridge and Red Box were advised by James Clark and Gordon Beveridge of Obair Partners (Corporate Finance) and Amie Norris of Pinsent Masons (Legal).
