- Two in five backed businesses secured follow-on funding estimated to reach around £65m to fuel further growth
- Three quarters (74%) launched new products or services contributing to a £73m regional boost from sales
- 59% of businesses supported by the Midlands Engine Investment Fund say it helped them avoid closure in challenging time
- MEIF has helped create more than 2,370 jobs in the region since 2017
Midlands Engine Investment Fund has helped create more than 2,370 jobs in the region, fuelling growth and innovation
Corby warehouse sold
Eddisons has sold a 96,000 sq ft industrial / warehouse unit in Corby – 5 Macadam Road.
Offers were invited for the freehold investment in the region of £7.25m.
The building has been purchased on a sale and leaseback from the owner occupier, by a business investor seeking to diversify their income.
The vendor, a furniture wholesaler, has signed a new 10-year lease at £540,000 per annum.
Located on Earlstrees Industrial Estate, an established employment district in the heart of Corby, the premises comprises a high bay warehouse, two showrooms, recently refurbished office accommodation and loading areas.
Eddisons agent Simon Parsons said: “This warehouse unit offered an excellent opportunity for potential investors looking to invest into both a strong commercial property market and a well-established business.
“Eddisons provided investment advice and whilst the market was slowing, secured good interest, which resulted in the sale of the property.”
Eddisons acted on behalf of the owner occupier.
2023 Business Predictions: Grace Golden, head of client growth at Purpose Media
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 Grace Golden, head of client growth at full service digital marketing agency Purpose Media.
Without being too pessimistic, as I really hope the hype turns out to be more painful than the bite, I think most businesses will be addressing the threat of recession and reviewing their strategic plans.
As has been proven from past recessions, and indeed during Covid, those that treated their marketing budget as an investment rather than an overhead reaped the benefits – as long as the activity is focused and delivers a return on investment.
Bricks and mortar businesses that are proactive in implementing a digital marketing strategy will continue to lead their competitors, and I see no let-up in the demand for expertise in areas such as website content and SEO, social media, email marketing, video and PR as these are highly targeted activities that can be tracked and tweaked to get the desired results.
As businesses start to reach wider audiences using digital marketing strategies, they shouldn’t dismiss the opportunity for international trading. For those that take up the support and funding available for UK businesses trading overseas they can gain exposure, growth and diversify their business.
By following this constructive attitude these businesses should be able to thrive and not just survive, but I also think this approach sends positive vibes to clients and supply chain partners who will remain confident in their ability to continue to supply products and services.
So, whilst I think things will remain highly volatile, especially for high street businesses and larger businesses that might find it hard to react quickly, perhaps due to restrictive property leases etc, I think as long as most UK businesses continue to market themselves effectively they should be able to make the necessary adjustments to overheads simply because they can be more agile.
Finally, I think the energy crisis will continue to hit hard and we will see many businesses switch towards renewable energy and recycling to save the environment and reduce costs.
The benefits of a more optimistic approach to business in 2023: By James Pinchbeck, partner at Streets Chartered Accountants
James Pinchbeck, partner at Streets Chartered Accountants, considers the importance of optimism for businesses.
It is widely recognised and reported that business confidence declined during 2022, with the start of 2023 perhaps seeing little in the way of renewed confidence. The continued conflict in Ukraine, the continued aftershock of Brexit and the rising costs of living impact in one way or another on business optimism.
Perhaps then business leaders, more than ever, need to focus on the importance of optimism as a state of mind, and the impact it has on the realisation of strategy, performance and success. Whilst not the most typical starting point for strategic planning or a key management approach, thought ought to be given to the impact of understanding what a sense of optimism has on your business and not least your workforce and should not be underestimated.
In essence optimism is an inclination to hopefulness and confidence, and the future success of something or something being better.
All this probably sounds rather intangible, something difficult to really grasp or manage. Where would one start in terms of being optimistic and creating a sense of optimism?
Well, it might be that you take time out to ascertain the level of optimism for and within your business. Such an approach should at least enable you to benchmark where you are on the optimism scale and help you to identify areas that you may need to address. This may include consideration of the overall future success and prospects for the business as well as the roles of individuals. It is not always the case that the two are necessarily aligned. For example, whilst someone might feel optimistic about the prospects for the business, they may feel less optimistic about their personal role, and vice versa. Ideally both need to be favourably aligned.
With an understanding and appreciation of your organisation’s sense of optimism you can then look to working on those areas that will improve or enhance the optimism. This could include a number of things such as a more positive leadership style, clearer and better defined and better communicated business objectives, the provision of new working practices, staff training, addressing hard to fill roles, job security, career prospects and progression for individual staff. The key though will be to ensure a level of optimism that does not drop, in fact if anything it increases. There will therefore be a need to monitor performance and adapt and react to changing circumstances. Undoubtedly this will draw on your own resolve, energy and motivation.
To finish on a level of optimism, the benefits of creating a heightened level of optimism for and within your business can contribute to improved productivity, an enhanced ability to deal with challenges and great resilience and wellbeing, along with improved staff retention and recruitment. Who therefore wouldn’t make 2023 the year to focus on improving the level of optimism within their organisation?
See this piece in the January issue of East Midlands Business Link Magazine here.
Sentiment recovers, but outlook remains gloomy for financial services firms
Sentiment among financial services recovered in the three months to December (+10% from -55% in September), despite gloomy expectations for activity in the quarter ahead, according to the latest CBI/PwC Financial Services Survey.
The quarterly survey, conducted between 22 November and 9 December 2022 with 95 respondents, found that business volumes grew at a solid rate in the quarter to December (+24% from +31% in September). Employment growth recovered to a firm pace (+23% from -8% in September), while profitability was flat (-1% from +24% in September).
Looking ahead to the next three months, FS firms expect business volumes (-28%) and profitability (-26%) to decline. Headcount is anticipated to be unchanged (0%).
The outlook for investment over the next year is mixed. While IT investment is set to grow over the next 12 months (compared to the previous 12), capital expenditures on land & buildings and vehicles, plant & machinery are anticipated to decline.
Uncertainty about demand was the key factor weighing on investment intentions in the year ahead (34% of firms from 17% in September).
Over 2023, the key trends driving disruption for firms are expected to be changes in regulation (85% of firms), high inflation (79%), and accelerations in digital technologies (70%). With the cost-of-living crisis spilling into the new year, the survey found that over two-thirds (70%) of financial service firms have initiatives to support consumer and/or commercial clients with inflation.
Rain Newton-Smith, CBI chief economist, said: “It’s good to see optimism return to financial services in Q4. Unfortunately, this may prove to be short-lived as FS firms’ predictions look bleaker going forward, with business volumes and profitability set to fall over the next quarter.
“All eyes are now on the upcoming Spring Budget to see if the Chancellor can build on the stability provided by the Autumn Statement and deliver a concrete plan for growth.
“A fit and firing financial services sector is vital to the UK’s long-term economic success – that’s why we need business and government working together to safeguard the industry’s global competitiveness.”
Isabelle Jenkins, leader of Financial Services at PwC UK, said: “Despite the uptick in sentiment, it seems that this quarter’s results reflect the gloomy forecasts we’ve been seeing, with firms mindful of the ongoing impact of the cost-of-living crisis especially as our research showed that the total amount of unsecured debt now exceeds £16,000 per household.
“However, the Edinburgh Reforms announcement has brought increased clarity for the sector on the UK’s regulatory agenda and the Government’s focus on green finance, technology and removing unnecessary regulatory burdens will no doubt be welcomed.
“As we go into 2023 following a period of relative stability for the industry, the focus will now be on ensuring that while economic conditions remain challenging, firms will continue to support both customers and employees through what may be another difficult year.”
Key findings:
- Sentiment increased in the quarter to December (+10%) following a quick decline last quarter (-55% in September).
- Business volumes grew at a solid rate in the quarter to December (+24% from +31% in September). However, financial service firms expect volumes to decline next quarter (-28%).
- Average spreads were broadly unchanged in the three months to December (+2% from -31% in September) but are expected to fall again next quarter (-20%).
- The value of non-performing loans was flat for the second quarter in a row (0% from 0% in September) but is anticipated to grow next quarter (+23%).
- Profitability was broadly unchanged in the quarter to December (-1% from +24% in September). Firms expect profitability to decline in the next three months (-26%).
- Employment growth recovered following last quarter’s decline (+23% from -8% in September). Numbers employed are anticipated to be unchanged next quarter (0%).
- Firms expect to increase investment in IT over the next 12 months (compared to the last 12), while capital expenditure on land & buildings and vehicles, plant & machinery is anticipated to decline.
- The most common factor likely to limit investment next year is uncertainty about demand (34% from 17% in September).
Disruption
The key trends driving disruption for FS firms over the coming year are changes in regulation (85% of companies), high inflation (79%), and accelerations in digital technologies (70%).
Firms are responding to disruption from employing new technology or adapting tech capabilities within their business (89% of companies), upskilling the existing workforce (84%), and reducing costs (60%).
The most common priorities for future business strategy and transformation plans are achieving operational resilience (86% of companies), upskilling or reskilling the workforce (78%), and advances in technology and business transformation (69%).
Technology
Almost 8 in 10 (79%) financial service firms are in the “transition” stage (i.e. the process of modernising technology and IT architecture) of realising the benefits made from investment in IT and technology.
65% of FS firms think the most value to be gained from advances in AI and analytics is through understanding customers and their behaviours/preferences (65%).
92% of FS firms think customer experience is one of the areas most likely to be impacted by automation, standardisation, and FinTech.
Cyber security
Firms expect to increase investment in cyber security in the next 12 months (compared to the previous 12) to a greater degree than last quarter (+46% from +5% in September).
The most common priorities for improving cyber resilience and reducing tech risk are placing a greater focus on how to respond to new/emerging threats (85% of firms) and improving the reporting and mitigation of a cyber risk (75%).
Upskilling/reskilling
Firms’ key workforce priorities for the year ahead include supporting employee financial wellbeing (59% of firms), maintaining/achieving high levels of employee engagement (55%), and reskilling the workforce (53%).
The most common objectives from reskilling are improved workforce agility (76% of firms), increased staff retention (61%), and cost savings instead of making staff redundant (50%).
ESG
The most common climate change priorities over the next three months are planning practical steps towards achieving net zero goals (57% of firms) and accelerating green financing options and products (47%).
D&I
The most common priorities for D&I over the next 6-12 months are improving ethnic equality (67% of firms), improving inclusivity (49%), and supporting health & wellbeing (49%).
Cost of living
A combined 70% of financial service firms have initiatives to support consumer and/or commercial clients with the cost of living / cost of doing business.
Financial wellbeing
76% of firms think that organisations in their sector can support consumers through early identification and support for customers facing hardship.
95 staff at risk of redundancy at Wilko
Staff at Nottinghamshire-headquartered Wilko are at risk of being made redundant with the retailer looking to outsource its customer services.
95 employees are anticipated to be affected in Worksop, with a consultation process underway.
Wilko is looking to improve aftercare for customers with the expertise of a third party provider. It comes as part of the firm’s omnichannel journey.
The news follows the privately owned, everyday household and garden retailer agreeing a £40m two-year revolving credit facility with Hilco last week, to allow it to significantly increase financial flexibility as it accelerates plans for turnaround.
This backstop facility is in addition to the recently announced injection of £48m from the sale and leaseback of its Worksop distribution centre and ongoing re-gearing negotiation successes with landlords.
200 Degrees promotes Stephen Fern to Managing Director
200 Degrees Coffee has promoted Stephen Fern to Managing Director.
Having held the position of financial director with the coffee roaster since 2019, Stephen takes on the Managing Director role from co-owner and CEO of the business, Rob Darby.
The Nottingham-based roaster has experienced a continued period of growth across the business, and as Managing Director, Stephen will oversee the company’s operations, growth, team and customer experience.
200 Degrees marked a number of significant milestones last year, celebrating its 10th year in business, reaching 200 team members and opening its 18th coffee shop.
The roaster continues to expand its team in its shops, roast house and central team as well as driving forward its barista school network, home subscription, ecommerce and wholesale offering.
Stephen said: “I am incredibly honoured to be trusted with this position, at a company with such a fantastic culture and ethos for delivering great products and services to our customers, as well as its support of not-for-profit, grass root causes.
“I will continue to learn from co-owners Rob and his business partner Tom Vincent, while also building the culture and driving continuous improvements across the business.
“We have fantastic teams across 200 Degrees and my aim will be to help facilitate each and every employee in achieving their personal goals, that in turn will allow 200 Degrees to achieve our growth and community-focussed ambitions.”
Rob Darby, CEO of 200 Degrees, said: As we continue to expand the business, I want to ensure that we are doing everything we can to guarantee all employees at 200 Degrees and our customers, have the same great experience.
“Stephen has a deep understanding of 200 Degrees and has spent much time working in our shops and across all arms of the business. He has embedded himself not only in our operations but our culture too and is the right person to move into the Managing Director role, as we deliver our next stage of expansion.
“We couldn’t have found someone better suited both strategically and culturally, and I am hugely excited and proud to have such a great guy with so much passion in the role. Congrats Stephen.”
Rob and Tom founded 200 Degrees in 2012, after setting up its roastery on Meadow Lane, opposite Notts County Football Stadium. Since then, they have expanded its footprint across England and Wales.
Mazars appoints private client partner
Mazars, the international audit, tax and advisory firm, has appointed Hina Desai as partner in its private client team within the group’s East Midlands operation. The appointment reflects the firm’s commitment to continuing the expansion of Mazars’ East Midlands client service capacity across its key service lines.
Hina joins from abrdn where she was Managing Director for the company’s wealth advisory team in the North and Midlands region. She brings with her over 25 years of experience in client advisory services, including 16 years of regional experience, having previously worked at national accountancy firms across the North and Midlands.
She will be responsible for growing Mazars’ private client team and services in the East Midlands region with a focus on broadening the firm’s offering in the area and playing a key role in supporting private clients across a range of services.
Hina is passionate about helping clients achieve their financial goals and planning for the future by working with their tax and legal advisers. She has a wealth of experience of advising individuals, trustees and business owners to understand their money and make it work harder for them and their families.
Ian Pickford, partner and head of financial planning and wealth management, said: “We are pleased to be welcoming Hina into our East Midlands offices. Mazars has experienced significant growth in the region and Hina’s extensive private client expertise and regional experience can help us ensure Mazars is well placed to deliver comprehensive services and advice tailored to personal circumstances. We look forward to working with her and seeing what she will achieve with our talented local team.”
Major mixed-use scheme tipped for approval in Nottingham
Plans to demolish existing buildings and erect purpose-built student accommodation and a new public food hall on land at Shakespeare Street, North Church Street, and South Sherwood Street, Nottingham, have been tipped for approval.
The major mixed-use development involves Nottingham’s Guildhall and its adjacent site.
The application proposes the demolition of existing former Police and Fire Station buildings and the redevelopment of the site with a range of buildings fronting onto Shakespeare Street, North Church Street and South Sherwood Street. A further central wing would extend to the rear within the site.
The proposed primary use of the buildings would be for purpose-built student accommodation, with associated amenity and communal facilities. There would be two formats to the proposed student accommodation, with one (Vita Student) comprising 512 studio bedspace accommodation and the other (House of Social) comprising 454 cluster apartment bedspaces.
It is also proposed that there would be a ground floor public food hall at the corner of Shakespeare Street and North Church Street.
Mark Oakes, chief commercial officer for Vita Group, previously said on the scheme: “A vastly underutilised redevelopment opportunity, Guildhall has the potential to be one of Nottingham’s major landmarks once again, bringing significant investment to the city and a historically important building back to life.
“The plans aim to create best-in-class student accommodation with outstanding amenities, whilst also easing pressures on local housing stock. The Market Food Hall will create a go-to destination for all the city to enjoy, providing the perfect backdrop for exciting new independent restauranteurs to bring their new ventures to people across the region.”
“I wouldn’t say I was the best PR manager in the business. But I was in the top 5”: By Greg Simpson, founder of Press for Attention PR
Greg Simpson, founder of Press for Attention PR, discusses awards and taking advantage of them even if you lose.
As the World Cup is now over (certainly by the time you read this) and with apologies to the greatest manager that the England football team never had, I thought I might provide a little update on the awards I was up for recently.
Which awards you may well ask (if you are not paying attention at the back).
They were the Enterprise Nation Awards, created to “celebrate the best and brightest advisers from across the UK and Ireland, whose support and expertise has shaped some of the most successful small businesses.”
They invited small business owners from across the UK to nominate their favourite advisers across 10 categories and by the end of November, I got a little note to say I’d made the final. The NATIONAL final.
Spoiler alert…I DIDN’T win!
Now why would I tell you that? Why would I “admit” that I lost? Because I know that there will be plenty of people reading this that would have hidden this “failure.” That’s how a lot of people see awards. It is a risk/reward question to some. Some won’t even blog about making a final or a shortlist ahead of the big event in case people “find out we didn’t win.”
Take a look at The East Midlands Bricks Awards this year. I was a judge of one of the categories so I always take a close interest in what the entrants get up to pre and post awards. Being harsh, most of them don’t get up to a lot! Why? Fear of failure? Lack of confidence? Lack of resource? All of the above?
NEWSFLASH
Most people don’t follow your every move and also…you made the final! Take a look at my case. There are thousands of PR consultants out there in the UK and I made the top 5. In the country. Does that mean there are people better than me? Yep. Does it mean I’m better than most? Yep!
On the way to the final, I posted on social media, blogged and ran webinars mentioning the fact that I was in the final. Do you think that some of that might have been noticed? You betcha.
I’m “confessing” to my failure here right now. More awareness of my loss. Am I a masochist? No, I’m a marketer. Often mistaken!
Now, will SOME people go “oh well, Greg’s only in the Top 5 in the UK, probably not worth speaking to.” Well, SOME might. In fact, you might (boo hiss!). Or, you and many more people might think “I’ve been meaning to speak to him” or “our PR is pants, this guy must be half decent.” So loathe as I am to say that it is the taking part that counts, sometimes, it is. So long as you do something with it.
Yours inconsolably better than most,
Top 5 PR consultant in the UK.
A former business journalist, Greg Simpson is the author of The Small Business Guide to PR and has been recognised as one of the UK’s top 5 PR consultants, having set up Press for Attention PR in 2008.
He has worked for FTSE 100 firms, charities and start-ups and conducted press conferences with Sir Richard Branson and James Caan. His background ensures a deep understanding of every facet of a successful PR campaign – from a journalist’s, client’s, and consultant’s perspective.
See this piece in the January issue of East Midlands Business Link Magazine here.
