Record-breaking year for Yü Group
Yü Group, the Nottingham-headquartered utilities supplier, has reported a record-breaking performance for 2022, exceeding management expectations.
Full year revenue has skyrocketed, to exceed £275m, an increase of over 76% on FY21 (£155m).
The company’s adjusted EBITDA margin for the year, meanwhile, is anticipated to be significantly ahead of current market expectations.
The firm also hailed record-breaking annualised contracts.
Yü Group is anticipating its growth to continue in to FY23 and over the medium term.
Bobby Kalar, CEO of Yü Group, said: “I’m thrilled to report a fantastic, record-breaking performance for FY22. While the Board modelled a strong outcome for FY22 we may have underestimated the accelerated contribution our strengthened business would have on the Group’s FY financial metrics.
“Record breaking organic revenues, profitability and forward contracted revenues have all exceeded management expectations. We are now in the fast lane of growth and expect to exceed current guidance that had already been upgraded in March, July, September and November 2022.
“Our balance sheet is very strong, with excellent cash conversion and I’m very pleased to report a fourth consecutive year of EBITDA improvement. Cash has also far exceeded management expectations, more than doubling from FY21. Net customer contribution (being gross margin less bad debt) is being managed as we grow. Adjusted EBITDA margin has also dwarfed the 2.1% achieved in H122 (FY21: 1.1%) and as such we have clear visibility of our stated £500m revenue at 4%+ target.
“As a consequence of our strong cash generation, management intends to make a modest shareholder distribution in respect of the financial performance achieved in FY22, details of which will be announced alongside publication of the Company’s audited results for FY22. In considering the level of dividend management will ensure it does not constrain or hinder our growth ambitions or abilities to take advantage of corporate and other growth opportunities as they arise.
“The impact of our ‘digital by default’ transformation has exceeded management expectations in terms of its contribution to margin and efficiency. Our single platform seamless onboarding has created operational leverage alongside opening up additional profitable sales streams. The full impact will become materially beneficial in 2023 and beyond.
“I’m pleased to welcome the Yü Smart team to our family, after completing the purchase from Magnum Utilities in May 2022 using cash from our balance sheet. The management have worked hard to achieve, from a standing start, full industry accreditation and the necessary licences to install and maintain metering infrastructure.
“Yü Smart installed its first SMETs meter in August 2022 and by year end was achieving hundreds of installs a month. As Yü Smart gains national coverage and full operational scale in 2023 it will complement our retail business in contributing significant Group profitability.
“As always delivering such positive results takes a huge team effort and I would like to thank all of my team for trusting the Board and believing management’s vision. The hard yards continue to bear fruit.”
2023 Business Predictions: Bev Wakefield, owner of Vibrant Accountancy
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 Bev Wakefield, owner of Vibrant Accountancy.
Technology holds an important role in any business and, in 2023, it will become vital across all organisations and industries.
Vibrant Accountancy is a very tech-driven firm. Our clients are on cloud accounting software and we look at apps that we can use to help drive the slickness of their finance function even further. We also use a lot of tech to support us as a business, and I believe that many more businesses will be turning to innovative tech in the new year, too.
Human contact, though, will always be needed; people like to see a friendly face and feel supported.
We have all been through the mill over the last couple of years and a good support network as a business owner is essential.
Ask for help, talk to people who have been there before and remember why you set up in the first place. Ensure that you keep this in mind and do not let your business become a beast and take over!
2023 Business Predictions: Chris Wright, director of OMEETO
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 Chris Wright, director of commercial property consultants, OMEETO.
Despite a more challenging economic backdrop, I am confident that, overall, we will enter 2023 on a positive note – largely thanks to the diverse and robust nature of the East Midlands economy which continues to be reflected in the health of the commercial property market.
There are, of course, fundamental challenges, not least interest rate increases and spiralling energy costs. I sincerely hope that 2023 sees meaningful measures put in place to assist businesses with the latter.
As a commercial property agency practice, we rely on property transactions taking place. We are seeing continuing demand for neighbourhood retail, well fitted and flexible office accommodation and for industrial/warehousing space. In 2023 we are expecting occupier demand to continue in these sectors, particularly for good quality, well positioned properties.
Throughout 2022 the commercial property market was generally starved of freehold stock, with strong competitive demand across all sectors. As a result of the availability and cost of borrowing, the number of proceedable purchasers has reduced. We expect there may be an increase of freehold supply in the New Year. This might be a welcome relief for some and I am aware of quite a number of businesses who have not been able to achieve their owner occupier goals. An increase in freehold supply could also create investor opportunities. The key is being well positioned and confident to take those opportunities.
Elevate secures £23.4m for new build schemes
Paragon Bank’s Development Finance division has provided a £23.4 million funding package for two Midlands-based new build projects for Elevate Property Group.
The funding includes an £11.5 million finance package for the company’s development of 60 new build apartments on Homer Road, Solihull.
In addition, Paragon has provided an £11.9m funding package for the Phase II development of the company’s Trent Bridge Quays project in Nottingham.
Both deals were led on behalf of Paragon by relationship director Toby Burgess and portfolio manager Joshua Mann. The funding represents the third and fourth deal between Paragon and Elevate, following their funding of Priory House in Birmingham and Phase I of the Trent Bridge Quays project.
The fresh finance comes as Elevates completes payment on the funding provided for its Priory House scheme in the centre of Birmingham. The £13.3 million development loan supported the purchase and redevelopment of the former Birmingham forensic science laboratory, located in the popular Southside, to create 79 luxury apartments. The development is over 90% sold, with residents already moving in.
Imperial House on Homer Road will consist of a mix of one, two and three-bedroom apartments in the heart of Solihull, and within walking distance to the town’s train station, offering links to Birmingham and London. Construction has commenced and is due to complete in Autumn this year. Elevate has appointed Kavannagh Construction as the main contractor, their second deal with Kavannagh after Heaton House in Birmingham.
The Muller Yard will be a mix of 44 new build apartments and 14 townhouses, plus two commercial units, on the banks of the River Trent. Construction started in April and is due to complete in July this year. Elevate has selected Bode Contracting for the project, the company it has worked with on the Priory House development.
Steve Dodd, Managing Director of Elevate Property Group, said: “We’re excited about these two schemes. Trent Bridge Quays has been a great success and we look forward to bringing Phase II to market shortly. Meanwhile, Imperial House will be a fantastic addition to Solihull, benefitting those who work in the town, or who commute to Birmingham or London.”
He added: “We have developed an excellent relationship with Paragon and particularly Toby and Josh. They have been a supportive partner on the schemes on which we have previously worked together and I’m delighted they have backed these two exciting developments.”
Toby Burgess said: “Buyers like Elevate Property Group developments because they offer well-designed spaces with a much higher specification than is commonly seen. Both Imperial House and The Muller Yard are developments we are looking forward to seeing progressing, working with Steve and the team to deliver a great result.
“We’re also delighted to have been involved in the Priory House scheme, which has brought a landmark building back into use in the heart of a vibrant and up and coming part of the city. This was a great project to kick-off our relationship with Elevate and they have been hugely successful in delivering the scheme quickly despite the challenges in the construction market post-Covid and then achieving impressive sales allowing them to repay our facility in less than 21 months. A real success story.”
Late payments improve for East Midlands businesses, but number of start-ups falls significantly
Latest research from the Midlands branch of the UK’s insolvency and restructuring trade body R3 reveals increased caution among East Midlands entrepreneurs with a significant fall in the number of newly-formed companies in the region.
R3’s monthly figures, which are based on an analysis of data from business intelligence provider Creditsafe, show that the total number of East Midlands start-ups decreased by over a quarter (25.32%) at the end of 2022, falling from 2,235 in November to 1,669 in December.
Growing caution amid fears of recession could also be behind a fall in the number of the region’s companies with late payments, with business owners tightening up their cashflow procedures as economic pressures threaten. The figures show that the total number of East Midlands companies with invoices past their settlement date dropped from 27,077 in October to 24,315 in December, a sizeable decrease of 10.2%.
R3 Midlands chair Eddie Williams, a partner at PwC in the region, said: “Notwithstanding news that the UK economy grew by 0.1% (ONS) in November – boosted by Christmas spending and the men’s football World Cup – this research indicates that trading conditions remain extremely challenging.
“Despite the current economic turmoil and its negative effect on start-up totals, it is encouraging to see a fall in the number of East Midlands companies with late payments. At R3 Midlands, we can see how hard so many local businesses work to maintain cashflow, demonstrating their creativity and crisis management skills in their relationships with suppliers, creditors and funders, as well as reaching out for professional help.
“For those business owners with significant concerns about their situation, the sooner professional advice is sought, the more opportunities may be available for finding the best possible outcome. Many R3 members offer a free initial consultation to those who are looking for such help and want to explore their options.”
Pagabo appoints G F Tomlinson for £1bn national framework
Midlands-based contractor, G F Tomlinson, has been announced as a successful partner for Pagabo’s National Framework for Medium Works, which launched this month.
Running from January 2023 until January 2027, the next-generation framework is one of Pagabo’s most popular and active construction procurement routes for clients, with 148 projects having completed to date.
As part of the partnership, G F Tomlinson has been appointed to deliver projects from £500,000 up to £10m, throughout Yorkshire, and the East and West Midlands.
G F Tomlinson will deliver public sector projects across the education, healthcare, civic, leisure, housing, blue light, highways and infrastructure sectors.
In order to be successful, G F Tomlinson’s bid demonstrated relevant experience, financial stability and a strong commitment to social value and the carbon reduction agenda. As well as providing value for money for clients, delivering quality builds on time and on budget, and managing supply chain to a high standard.
Since 2020, G F Tomlinson has partnered with Pagabo on several frameworks including the Major Works Framework, the Framework for Refit and Refurbishment Solutions, and the previous Medium Works Framework, which the new iteration now supersedes.
Under these frameworks, the contractor recently delivered the £3.7m extension and remodelling of Cardinal Newman Catholic School to provide an additional 200 school placements, alongside a £2.4m urgent treatment centre at Lincoln Hospital, which expanded the facility’s existing accident and emergency department.
They are currently on site constructing the £15.4m new Air and Space Institute (ASI) at Newark for the Lincoln College Group, which will provide a unique opportunity for school leavers 16 -18 to train for pilot, engineers and ground-crew roles in airlines, the military, airports and logistics companies in a state-of-the-art college facility.
The company also has other projects in the pipeline procured via Pagabo, to the value of circa £35m still to come to site.
Chris Flint, Managing Director at G F Tomlinson, said: “We are delighted to have been appointed to the National Framework for Medium Works, which is our fifth framework agreement with Pagabo.
“G F Tomlinson has delivered in excess of £500m projects through public sector frameworks to date and with our expertise, commitment to delivering high-quality projects and our passion to enhance social value for local communities, we are best placed to serve public sector clients on all their project requirements.
“We look forward to constructing and delivering significant developments through this framework, that will support the regeneration of local communities across the Midlands and North, over the next three to four years.”
Tom Retallick, framework manager at Pagabo, said: “Congratulations to G F Tomlinson on securing their place on the second iteration of our Medium Works Framework. Pagabo have formed a close working relationship with them over the years, delivering 14 projects worth a combined value of £45m across our various construction frameworks, and so we’re excited to be continuing this through the duration of the framework.”
Freeths continues period of record growth with new Leicester office space
Law firm Freeths has opened a new office space at Colton Square in Leicester, continuing its period of record growth.
Located in the heart of city centre, Colton Square offers close transport links and networking and event space amenities which aims to accommodate Freeths’ continued expansion across the UK as well as enhance the experience for both staff and clients.
The relocation follows year-on-year prosperity for the firm with ongoing increased employee retention, new lateral hires, and heightened client portfolios.
Managing partner of Freeths Leicester, Mukesh Patel, said: “With a focus on talent and our offering for both long-standing, new and prospective clients, the Leicester relocation to No 2 Colton Square opens up a pool of possibilities to broaden our services lines nationally.
“New equipment, working flexibly in ‘neighbourhoods’, café and social areas, new meeting room technology, quiet pods and breakout areas, helps offer a far more modern environment that’s well suited to our hybrid ways of working.
“This move is just one of many across our national offices and a result of a culmination of continued national success over the last few years.”
Nottinghamshire outdoor clothing and equipment company secures £1.5m
A Nottinghamshire-based outdoor clothing and equipment company has secured funding from the Midlands Engine Investment Fund (MEIF), provided by The FSE Group Debt Finance Fund and backed by the Recovery Loan Scheme.
The £1.5m investment from the MEIF will help create 16 new roles, fund seasonal stock purchase, product development in footwear and e-bike lines and enable the UK to take over the bike frame painting function from China.
Alpkit designs, manufactures and sells a range of specialist outdoor apparel, equipment and bicycles suitable for challenging environments and extreme activities at a significantly lower price point than large, high-end competitors.
The company is also a certified B Corp, committed to the highest standards of social and environmental impact. The company’s registered charity, Alpkit Foundation, supports sustainability focused community projects.
David Hanney, Alpkit CEO, said: “With a buoyant outdoor market and strong brand positioning we have built a business with £12m+ turnover that has great potential for further growth.
“With challenging exchange markets and supply chain issues dominating trading conditions for many businesses in recent months, we are delighted to receive this MEIF funding, which gives us the ability to expand our employee base and seize the opportunities available to us.”
Chris Bailey, investment manager at The FSE Group, said: “Apkit’s knowledgeable and experienced management team has established a strong revenue stream that is capable of further acceleration, thanks to a viable expansion strategy that includes increasing physical stores in the UK as well as their international online presence.
“Alpkit’s growth momentum has remained resilient, despite wider economic factors impacting businesses currently, and we are happy to be supporting them on their growth journey.”
Planning permission granted for Stacey West Stand development
Planning permission has been granted for Lincoln City Football Club’s development of the Stacey West Stand at the LNER Stadium.
This project will provide a range of infrastructure improvements to the LNER Stadium, including new power and mains water supplies as well as a pitch water recycling system.
Working closely with the Sports Grounds Safety Authority, the club have also submitted an application to trial safe-standing in a small section of the Stacey West Stand – with the intention of installing rail seats throughout the entire stand and into the GBM Stand should the trial be successful.
The project will create vital space for Lincoln City Foundation by providing a new Community Skills and Education Hub based at the stadium.
Building a new Community Skills and Education Hub will help tackle the growing skills gap in the city by providing the Foundation with a fit-for-purpose facility from which it can champion the delivery of education and employability skills, all under the brand of the football club.
Martin Hickerton, Chief Executive at the Foundation, said: “This is fantastic news for everyone connected with the Foundation – the work we do in Lincoln and the surrounding area has never been more important.
“This will help us unlock the real potential of the Foundation and we cannot wait to watch the new building take shape.”
The contemporary new-build will offer community space, offices and dedicated classrooms, enabling the club to increase its social impact value and improve the quality of life of local residents through its wide range of educational, health and wellbeing initiatives.
Funding for the development has come from the Be Lincoln Town Deal board as well as significant investment via the Stacey West Investment Bond.
The Be Lincoln Town Deal board are building on Lincoln’s strength as a centre for learning and research to promote and enable a tech-friendly environment to support the growth of the digital sector.
Charlotte Goy, Town Deal Board member and Chief Executive of Visit Lincoln, added: “The plans we have all been looking at over the last 18 months as Town Deal Board members are starting to come to life and we can begin to realise the positive impact they will make to Lincoln. We are delighted that the pledges included in the Town Deal original investment plan will be delivered for the benefit of the local community.”
EY grows Midlands Private team with new director appointment
EY has strengthened its Private team in the Midlands with the appointment of new director, Anisha Patel.
Anisha will originate and build relationships with both new and existing clients in the privately-owned business market, connecting clients with expertise from across all areas within the firm, including tax and corporate finance.
Anisha has over eight years’ experience working in mergers and acquisitions and growth capital markets. She joins from BGF, a growth capital investor where she was responsible for leading on origination across Central and East of England.
Tom Addyman, EY’s head of Private in the Midlands, said: “As EY celebrates three years of record growth, our work in Private has been at the heart of this. Anisha’s appointment and the growth of our Midlands Private team aligns with the investments we are making across the rest of the country.
“We are seeing an increased demand for privately owned businesses seeking relationships with partners who understand their needs. I’m looking forward to working with Anisha and developing these client relationships further.”
Anisha said: “I’m delighted to have joined EY at such an important time. The sheer breadth of services provided allows EY to support businesses in navigating the challenges they may be facing. I’m excited to be working at a company that can offer the full suite of services as a way of assisting clients with their own growth journey and I am looking forward to working closely with growing businesses in the region.”
