2023 Business Predictions: Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking
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 Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking.
Businesses in the East Midlands have faced challenges this past year. Many have struggled with skills shortages and supply chain issues, on top of broader economic headwinds, which look likely to continue in early 2023.
But despite this, local firms are looking at the new year with positivity. Our latest Business Barometer recorded the highest confidence reading from firms in the East Midlands since February, marking a ten-month high for business confidence in the region. What’s more, businesses are optimistic about the economy too, with inflation appearing to have peaked.
The hope will be that this relatively more positive economic outlook continues into 2023, clearing a path for businesses to focus on investing in growth, and manoeuvre other hurdles coming their way. Three key things for firms to look out for in 2023 will be energy prices, cyberthreats and staffing shortages. However, with the right planning and support, businesses will be able to turn each of these into opportunities for growth.
Energy costs and inflation will likely remain at the forefront of business owners’ minds in 2023, especially during the winter months, and they are likely to have one eye on the looming deadline for the end of the Energy Bill Relief Scheme on the 31st March. However, investing in sustainability offers an opportunity to alleviate energy bill pressures. From small everyday changes such as switching halogen lightbulbs to LEDs to more significant measures like installing solar panels or investing in more sustainable machinery and equipment, businesses should look to unlock the opportunities making their operation more efficient can bring.
Businesses looking to become greener can access tailored lending through schemes such as our Clean Growth Finance Initiative (CGFI), which provides discounted funding to help businesses transition to a lower carbon, more sustainable future.
The threat of cyberattacks is another likely concern for businesses in 2023, especially for those in the region’s crucial manufacturing sector. According to our latest Business Barometer, firms are already mindful of this growing threat to operations, with a quarter (26%) saying they will be prioritising investing in new technology, such as AI, automation and digitalisation to combat cyberthreats, over the next six months. In order to handle these threats, firms need to ensure they’re employing the right talent, as well as upskilling their existing staff.
More than a third (37%) of East Midlands businesses said they will be focusing on increasing staffing levels over the next year according to our recent survey. However, all things point towards labour shortages continuing to disrupt hiring plans, especially in the manufacturing sector, according to Make UK latest manufacturing outlook survey1.
In 2023, we’ll be continuing to support manufacturing firms struggling with skills shortages through our sponsorship of the Midlands-based Advanced Manufacturing Training Centre (AMTC) with £1m per year until 2030.
The AMTC has already trained more than 2,500 engineers, graduates and apprentices during the past eight years of our partnership, and our continued support will help grow this figure to over 5,000 by 2030. This will help the region’s firms manage the current labour shortages and skills gap challenges they are experiencing, as well as providing them with the skills they need to support the implementation of advanced technologies and solutions to drive innovations in cybersecurity and sustainability.
While firms in the East Midlands will be faced with some tricky roads to navigate in 2023, those that remain optimistic and look to turn challenges into opportunities for upskilling, driving sustainability and investing in their technology, will thrive.
2023 Business Predictions: Elliot Cook, director at Simple Marketing Consultancy
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 Elliot Cook, director at Simple Marketing Consultancy.
Despite what the mainstream media may want to tell us, I’m predicting positive things for 2023. As a business community, so much has been thrown at us over the past two years that the supposed incoming “R” word just gives the feeling of déjà vu; we’ve been here before and come out the other side.
That is no reason not to be prepared for what lies ahead however. January is always the perfect time for businesses to take stock of the previous year’s trading, and put together a clear and robust marketing plan. If we are to learn anything from the pandemic era, it is those businesses that invested in their marketing programmes are the ones that survived and thrived. I predict those that adopt similar principles will be the ones that will navigate the murky waters of 2023.
Over the last couple of years, we’ve also seen a massive shift to towards digital marketing. Yes it is essential to ensure your business has a nailed down digital marketing strategy but at the same point whilst everything has gone online, I’m going to also go out on a limb here and say that we at Simple Marketing Consultancy are starting to see a resurgence in print marketing. Especially if it is tailored and uses sustainable materials.
BGF continues to power the Midlands growth economy in 2022
BGF, the growth capital investors, has delivered a series of strong exits in the Midlands in 2022, generating combined returns of £148 million and an average money multiple of more than 2.5x.
Last year saw BGF complete the stellar exit of Jola, the channel-only supplier of business communications specialising in mobile data SIMs, which was acquired by Wireless Logic – a global IoT connectivity platform provider.
Nationally, BGF invested a total of £443 million in 2022, continuing its commitment to providing patient minority-only capital to help ambitious growth companies achieve their full potential. BGF exited 40 companies across the UK, with an accumulative value of over £675 million and a combined money multiple of 2x.
In the Midlands £42.5 million was invested into the local growth economy. Notable deals included an £11 million investment into MyZone, a global manufacturer of wearable fitness tracking technology, and a £3.5 million investment into Nottingham-headquartered energy storage start-up, Cheesecake Energy.
BGF also provided follow-on funding for its existing Midlands portfolio, including £2.4 million for Environmental Essentials to drive its acquisitive growth strategy.
At the same time, BGF continued to invest in its Midlands team with new hires, including investors Adam Huckerby and Sam Giurani.
Neil Inskip, head of BGF in the Midlands and North West, said: “BGF was set up to back businesses in challenging times, and 2022 has shown us the potential and opportunity that exists in this region. As such, our aim in the coming 12 months is to continue building strong relationships with fast-growth and entrepreneurial-led businesses looking for a non-controlling, supportive equity partner.”
BGF’s portfolio has looked towards the Midlands for growth in 2022 with several entrepreneurial businesses expanding into the region. BGF-backed Apprentify acquired West Midlands-headquartered Netcom Training following a £5 million investment from BGF. Operam Education in Yorkshire expanded to the Midlands with the acquisition of First for Education, and bar operator Mission Mars opened new sites for its Albert’s Schloss and Rudy’s Pizza brands in Nottingham and Birmingham.
Seb Saywood, investor in BGF’s Nottingham office, added: “As with any challenging economy, strong, well-capitalised businesses in resilient sectors will find opportunities to seize market share, particularly from less nimble, over leveraged rivals. The success of our portfolio in 2022 is testament to this strength and agility.”
The year was rounded off by the launch of the BGF Foundation, with a commitment of at least £1.5 million from BGF and the portfolio over the next three years. BGF will provide funding and practical support to help small and mid-sized charities, focused on alleviating social disadvantage, to scale up their impact across the UK. Neil Inskip is a trustee of the Foundation.
Corporate insolvencies continue to soar
Corporate insolvencies are continuing to hit a year-on-year high, with a perfect storm of economic turmoil and increasing numbers of creditors pursuing debts pressurising company directors into closing their businesses voluntarily.
This is according to the Midlands branch of insolvency and restructuring body R3 and follows monthly statistics published this week by the Insolvency Service which show that corporate insolvencies in England and Wales increased by 32% last month (December 2022) to 1,964 compared to December 2021 (1,489), and by 76% in comparison to December 2019 (1,119), prior to the outbreak of the pandemic.
R3 Midlands chair Eddie Williams, a partner at PwC in the East Midlands, said: “The monthly corporate insolvency figures have increased compared to last year and three years ago due to rises in Creditor Voluntary Liquidations and Compulsory Liquidations.
“This means that many company directors are choosing to close their businesses, no longer willing to combat insurmountable economic challenges such as low consumer confidence, rising costs and requests for increased wages. Changes to legislation have also given greater powers to creditors to recover monies owed to them, contributing to a rise in the number of companies in compulsory liquidation.
“The beginning of the year is a critical period for many companies, and R3 urges anyone who is anxious about their business or personal finances to seek advice as soon as possible. While it is incredibly hard to voice financial fears, having that conversation with a qualified advisor as soon as problems arise could lead to better outcomes than waiting until they become more severe.
“Most R3 members will give an hour’s free consultation to potential clients to enable them to understand more about the circumstances of the business, and to outline the options available to help them improve their situation.”
Nottingham software company makes first acquisition of 2023
Global software company Ideagen has expanded its solutions for food quality and safety with its first acquisition of 2023, welcoming supply chain mapping company Qadex into the Ideagen family.
The solution – which brings together every aspect of food safety, from quality management to supply chain tracking and approval – will become Ideagen Qadex.
Speaking about the acquisition CEO, Ben Dorks, said: “Ideagen support the safe hands and quiet voices that protect the world – and if there’s one thing the whole world needs to have confidence in, it’s the safety of our food supply chain.
“We want to trust that the food we put on the table, to feed our families is safe to eat and has been handled with care at every step of its production – how its raw ingredients are farmed, how it’s stored, how it’s transported, how it’s processed. Qadex play an important role in that reassurance.
“We are incredibly pleased and proud to be bringing them into the Ideagen family, their software supports over 16,000 food producers to evidence the integrity of their entire supply chain – from field to fork.”
Ideagen has a strong pedigree in quality management software and auditable collaboration with a number of well-known consumer goods brands, such as Diageo and Greggs, already using their solutions to support their quality and safety.
Ideagen Qadex will perfectly complement the existing portfolio and widen Ideagen’s footprint in the fast-moving consumer goods market, bringing together food safety, quality management, compliance, supplier approval and enhanced supply chain mapping, providing visibility for retailers, restaurants and food producers on the source of each ingredient.
Qadex founder, Stephen Whyte, said: “Joining Ideagen creates great opportunities for our amazing people and customers. Deploying Qadex software across the Ideagen global footprint has the potential to transform the safety of our food supply chain.”
Headquartered in Leicestershire, just 12 miles from Ideagen’s Nottingham HQ, Qadex boast a large number of global household names among its existing customer base.
Ben added: “Qadex is another example of a great technology businesses with roots in the Midlands. I have already had the opportunity to meet the Qadex team in person and welcome them into the Ideagen family.”
Work starts on brand new Bulwell Bus Station
Work has begun on an ambitious project to replace the existing Bulwell Bus Station with a brand new and improved version.
Thanks to Transforming Cities funding that Nottingham City Council bid for and secured from central Government, the new bus station at Bulwell will make travelling by public transport easier.
The scheme will have several benefits:
- Safer, energy efficient passenger waiting facilities
- Improved accessibility for wheelchairs
- Multiple seating options for people with different mobility needs
- Improved efficiency for bus operators
- A more welcoming feel and overall environment
- The bus station will also become more environmentally friendly and sustainable through solar powered bus shelter lighting, and new greenery introduced in planters along the footpaths to increase biodiversity.
Broad Marsh and wider city regeneration to continue despite Government funding failure
The leader of Nottingham City Council has vowed that the regeneration of Nottingham will continue despite the big disappointment of the Government failing to back the city’s bids for Levelling Up funding for Broad Marsh, Bulwell and the Island Quarter.
Nottingham had submitted three bids to the Government’s Levelling Up Fund, but heard today that none had been successful despite strong cases being made for national funding.
- The £20m Broad Marsh bid was focussed on a key element of the vision, to prepare the Frame of the derelict shopping centre to be retained and reimagined as a unique space for play, performance and food, providing a catalyst for private sector partners to invest in the wider project.
- The £20m Bulwell town centre bid was to create a new Bulwell Promenade through substantial enhancements of green space and public realm alongside the River Leen. It also included improvements to the market place and urban greening; the restoration of heritage buildings and easier access and better connectivity between Bulwell Bogs, the tram stop, bus station, the market place and high streets.
- The £17m Island Quarter bid, submitted on behalf of developers Conygar, focused on renovating three heritage warehouse buildings at the heart of the 36-acre site near to Nottingham Station. It would have brought the buildings back into productive use providing a community open theatre, creative and digital studio space as well as improving access for pedestrians, cyclists and vehicle users with an upgraded junction connecting the site to the Sneinton community.
Topps Tiles chairman survives major shareholder’s bid for removal
The chairman of Topps Tiles, the Leiceser-based tile specialist, has survived a major shareholder’s bid to oust him at the company’s AGM.
In December MS Galleon GmbH (MSG) pushed for the firm to remove Darren Shapland, a director of the company, from office, as well as eject him from the position of non-executive chairman.
It was proposed that Shapland be replaced, while Lidia Wolfinger and Michael Bartusiak (both employees of companies owned by MSG) be appointed as non-executive directors of the company. The installation of Wolfinger and Bartusiak failed at the AGM.
Darren Shapland said: “The Board would like to thank shareholders for the support received at today’s meeting. We were pleased that shareholders supported the Board’s recommendations, with an average of 99.3 per cent of shareholders who voted, other than MSG, opposing the Requisitioned Resolutions.
“While we have always sought to maintain constructive engagement with MSG, the Board has also been clear that its responsibility is to act in the best interests of Topps shareholders as a whole. We believe strongly that MSG’s proposals exposed Topps shareholders to a number of serious conflicts of interest between MSG’s role as a significant shareholder, supplier and potential competitor to Topps.
“We welcome the strong support for the Board’s position received today from other shareholders and the Board will continue to engage with, and seek constructive dialogue with, all shareholders.“
Keith Down, senior independent director of Topps, said: “The Board has been unanimous in its rejection of the Requisitioned Resolutions. We are pleased to have secured strong backing from other investors at today’s meeting and, in particular, we note the significant vote of support received for the chairman. We thank shareholders for their engagement and support around the AGM and over the year.“
Derelict former swimming pool in Oadby to be sold in regeneration opportunity
A derelict former swimming pool in Oadby is to be sold, regenerating a prominent key site and bringing in funds ringfenced to improve community facilities in the town.
Oadby & Wigston Borough Council is planning a major refurbishment of the bowls pavilion next to the site which would make it the primary multi-use community facility in the town, as well as potentially using funds raised from the pool sale to improve Ellis Park as well.
Oadby pool became redundant in 2014 when the brand new replacement at Parklands Leisure Centre opened in Washbrook Lane.
The borough’s Local Plan already allocates most of the land, which includes the former pool and car parking at the front, as a prime opportunity for residential development, and this is the area that is now on the market for sale along with the tennis courts to the rear. All types of development offers though are being welcomed with any future use subject to gaining the relevant consents.
The adjacent land on which Ellis Park, the bowling green and the pavilion stand are not included in the sale, with these areas set for potential improvement using the money raised from the sale of the neighbouring land.
After a sale is agreed, the borough council will consult with local residents and groups to establish how a revamped community facility on the site of the current pavilion might look and what it could be used for. Regardless of how any revamped community facility shapes up, it will also remain available for use by the bowls club currently based there as well as other community groups. Improvements to Ellis Park itself will also form part of future consultation.
In the long term the council also expects to dispose of the Walter Charles Centre, the aging community building currently to the south of the town centre, which will be replaced by the larger, modern pavilion revamped as part of this project. This would only happen once the new community facility is nearing completion.
Councillor John Boyce, leader of Oadby & Wigston Borough Council, said: “Regeneration is key to maintaining a thriving local community and economy, and this land sale presents a huge opportunity for Oadby.
“It’s time for a developer to unlock the site’s potential. The money raised is ringfenced for community benefit – all of the proceeds will go towards creating a far superior community facility for the town as well as possible improvements to Ellis Park.
“We’re looking forward to talking to local residents, community groups and other key stakeholders to ensure the way the money is spent maximises the community offer in the town. Local voices are absolutely key to this project and people in Oadby can expect to hear much more about this in the coming months.”
Council awarded £2.58m to enhance North East Derbyshire
North East Derbyshire District Council has been awarded £2.5 million UK Shared Prosperity funding to spend on initiatives to improve the District’s parks, play areas, shop fronts, tourism offer and business support amongst other improvements over the coming years.
The funding will be used to level up across North East Derbyshire (along with the wider UK initiative), addressing geographical inequalities, and build pride in place across the whole district.
The Council will deliver initiatives across the District that meet the UKSPF programme investment priorities of Communities and Place, Local Business and People and Skills.
Over the next two years, the Council will invest in projects to make improvements to the public realm, shop fronts, parks, play areas, routeways, village halls and community hubs.
It will also promote the local tourism offer, provide support for businesses, social and financial inclusion activities, green skills training for local workers, and youth activities to address antisocial behaviour. Initiatives will include grant schemes, commissioned activities and focused financial support.
North East Derbyshire District Council cabinet member for leisure and communications, Cllr Alan Powell, said: “We are delighted to have received this money which we will use to make a visible difference to our district.
“We have already launched the first round of our Quality Parks and Play Areas grant scheme and we are now pleased to launch the second round as well as the Village Halls and Community Venues and Inclusive Communities schemes.”
North East Derbyshire District Council cabinet member for economy, transformation and climate, Cllr Jeremy Kenyon, said: “Other initiatives, including the Shop Front Enhancement grant scheme, will be announced over the coming months that will have a positive impact on our local communities and will include enhancements to shops and facilities and support to businesses and residents through access to advice and training.
“These activities support our vision of a district that is clean and attractive, where people are proud to live and work, where they will prosper and feel safe, happy and healthy and we look forward to reaping the benefits of our investment.”
