Corporate insolvencies hit ten year high

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A dramatic year-on-year increase in corporate insolvencies to their highest point in a decade suggests that many East Midlands directors are opting to close their businesses, with failing confidence in their ability to trade in the current economic climate.

This is according to the Midlands branch of insolvency and restructuring body R3 and follows latest government statistics for England and Wales which highlight an 81.3% year-on-year increase in corporate insolvencies in the second quarter of 2022, rising from 3,105 in the same period in 2021 to the current total of 5,629.

R3 Midlands chair Eddie Williams, a partner at PwC in the region, said: “These figures show the highest levels of corporate insolvency since 2012, driven by an increase in all forms of insolvency process. Creditors’ Voluntary Liquidations have reached their highest recorded figure of 4,908, indicating that many directors are opting to close their businesses due to increasing economic pressures.

“The steady rise in Compulsory Liquidations since the start of the year also suggests that creditors are now making use of their power to issue winding-up petitions to try and claw back monies they are owed.

“Despite May’s unexpectedly positive GDP figures, these government statistics show that now is not the time for complacency. The current economic headwinds are only likely to worsen before they improve, and this will lead to local companies having to overcome a tough second half of this year.

“With household disposable income dropping for the eighth consecutive month in June, consumers are having to prioritise household bills before they can think about spending their money elsewhere. This, coupled with soaring utility costs, supply chain issues, rising interest rates and a tight labour market, will mean an uphill battle for many businesses.

“The insolvency statistics should be a timely prompt for any company director struggling with cashflow. Objective advice should be sought from a qualified, professional source to decide the best path forward – and the earlier this is done, the better.

“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.”

Construction of Etiquette Park units completes

Eight months after breaking ground at Clowes Developments-owned Etiquette Park in Ilkeston, lead construction contractor TanRo has handed over the completed units to occupiers Catering24 and WELEDA. Construction of both units, totalling circa 50,000 sq ft, began in December 2021. Despite a host of challenges faced by the industry, namely supply and demand of materials and a shortage of skilled labour, TanRo has delivered the bespoke units for Clowes Developments’ clients on time and according to programme, just eight months on. On Monday 25th July, practical completion of Unit A was certified. Unit A is a 27,349 sq ft industrial unit which sits on the left-hand side of the business park. Family business owners, Charlie, Steve and Oliver were onsite to mark the occasion and commented: “This is an exciting new chapter for Catering24. Our growth over recent years has led us to this point but it’s been 30+years in the making. We are looking forward to having our own set of keys and start making the brand new, pristine unit feel like home for our staff.” The deal marks significant expansion for the food packaging distributor who have doubled their turnover in the past two years. Catering24 has the option to purchase the property within the first 2 years. Assuming the option is triggered this will represent a total investment in the warehouse, equipment, racking and IT software to the sum of £2.8m. Charlie Dean, Managing Director at Catering24, added: “My daughter has been tracking the progress of the build since January, we have been driving her down to have a sneak peek at the unit which she has loved. I cannot wait to bring her back and show her around. This really is a special moment for us as a local family business.” Sustainable health and beauty pioneer WELEDA will also be moving into Unit B at Etiquette Park which comprises of a warehouse and office facility totalling 24,207 sq ft. The modern facility sits adjacent to Catering24’s unit on the right-hand side as you enter the site. The company’s Customer Care and Warehousing teams are expected to migrate over to the brand-new facility from WELEDA’s manufacturing site at Ilkeston within the next few months, allowing additional breathing space at the Heanor Road headquarters for the expanding business. WELEDA’s supply chain & warehouse manager, Robert Wood, said: “We are really delighted that our move date is now in sight, and cannot wait to settle our team into their new offices and warehouse facility. The expansion will not only enable us to recalibrate systems and streamline our business, but the exciting new space will undoubtedly inspire and motivate our team as it will provide improved working conditions. A great new springboard for the business!” Having completed the construction of Etiquette Park, lead contractor, TanRo, will have a short period of time to complete any snagging list items identified during the final inspection prior to practical completion sign off. Within a matter of weeks, the construction team will depart from the site and get ready to go again at the next Clowes project, Fairham Business Park. Fairham Business Park (FBP) is being brought forward as part of the wider masterplan for the £800m Fairham development, south of Clifton in Nottingham. The brand-new neighbourhood is being delivered by a joint venture between Clowes Developments and Homes England, the government’s housing accelerator. Outline planning permission is in place for one million square feet of commercial space within the 50-acre Fairham Business Park. TanRo have recently been announced as the lead construction contractor and are getting ready to settle into life on site at Fairham.

Property and construction firms have just 10 more days to showcase their achievements at the East Midlands Bricks Awards 2022

Providing a prime opportunity to shout about your business’s achievements, there are only 10 days left to enter the East Midlands Bricks Awards 2022! The annual event, organised by East Midlands Business Link Magazine, is an independent awards and publicity programme recognising development projects and people in commercial and public building across the region – from office, industrial and residential schemes, through to community projects such as leisure schemes and schools. The prestigious awards attract leaders from across the region and are the perfect way for businesses to promote themselves and those they work with. Indeed winning one of these awards will add considerably to a company’s or individual’s brand and enhance their commercial reach significantly. Award categories include: most active estate agent, commercial development of the year, responsible business of the year, residential development of the year, developer of the year, deal of the year, architects of the year, excellence in design, sustainable development of the year, contractor of the year, and overall winner. Winners will be revealed at a glittering awards ceremony on Thursday 15 September, at the Trent Bridge Cricket Ground – an evening that will also provide plenty of time to forge new contacts with property and construction professionals from across the region. Henry Brothers, winners of Commercial Development of the Year at the 2021 East Midlands Bricks Awards, reflected on the event: “Henry Brothers was absolutely thrilled to have won the Commercial Development of the Year award at the East Midlands Bricks for the delivery of the Medical Technologies Innovation Facility at Nottingham Trent University’s Clifton Campus. “The Henry Brothers story began in Northern Ireland in the 1970s and the company has grown to become a leading UK construction company. However, this award for Henry Brothers Midlands cements our position as a significant member of the East Midlands construction sector and we are very proud to have been recognised for our contribution. “We enjoyed the informal atmosphere of the East Midlands Bricks Awards ceremony and hope to nominate projects next year, as we’d very much like to be part of the event in 2022.” To submit a business or development for the East Midlands Bricks Awards 2022 before nominations close on Friday 19 August, please click on a category link below or visit this page.
The Overall Winner of the East Midlands Bricks Awards 2022 will also be awarded a year of marketing/publicity worth £20,000. Find out who last year’s winners were here.

Book your tickets now

Tickets can now be booked for the awards event – click here to secure yours. The special awards evening and networking event will be held on 15 September 2022 in the Derek Randall Suite at the Trent Bridge County Cricket Club from 4:30pm – 7:30pm. Connect with local decision makers over canapés and complimentary drinks while applauding the outstanding companies and projects in our region. The event will also welcome John Forkin MBE DL, Managing Director at award-winning investment promotion agency Marketing Derby, as keynote speaker, as well as award-winning mind reader, magician, and professional mentalist Looch, who will bewilder and astonish guests during the evening’s networking. Dress code is standard business attire.
Thanks to our sponsors:                                      

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Levelling up bid submitted to transform Worksop Town Centre

Bassetlaw District Council have submitted plans to government in an effort to secure £20 million in funding to transform Worksop Town Centre. The District Council, working in partnership with the Levelling Up Board, has applied for a grant through round two of the UK government’s Levelling Up Fund (LUF). If successful the District Council will redevelop the Priory Shopping Centre delivering a brand new family orientated leisure facility in the heart of the town centre. This will be complemented by a new towpath and moorings along the Chesterfield Canal, a new bridge linking to the north of the town and a focus on town centre living, with under used space being turned into apartments and town houses. A new multi-function market area and food court will also be created in addition to a new cycle hub, with café, changing rooms and lockers. The bid, shaped by the Levelling Up Board including Bassetlaw MP, Brendan Clarke-Smith, and chaired by Andria Birch, Chief Executive of BCVS, will:
  • Redevelop the Priory Centre including the development of a brand new leisure facility focused on family orientated activities such as tenpin bowling, indoor soft play facility, Trampoline Park and a café. Redevelopment will retain existing occupiers and bring in new tenants for current empty units.
  • Deliver a new green footpath/towpath link along the Chesterfield Canal along with new moorings capitalising on canal boat traffic, whilst improving a green corridor through the town centre.
  • Create a footbridge over the Chesterfield Canal resulting in improved connectivity to the main town centre from the residential areas to the north of the town which is one of the most deprived areas within Bassetlaw.
  • Enable the redevelopment of the area for new town centre living, bringing two sites forward for development and encouraging underutilised space to be made into apartments and town houses.
  • Create a multi-functional market area with a new food court.
  • Create a new cycle hub that includes a cafe with changing facilities and bike lockers.
  • Improve the existing road surfacing to ensure there is a defined access into the shopping centre.
The bid is designed to encourage people into the town centre and give visitors a reason to stay longer by offering activities and interests that currently do not exist in Worksop. It will also make better usage of the canal and waterways within the town. A successful bid will kick start the improvements required to encourage new investments and create a new sense of confidence for Worksop Town Centre. Cllr Simon Greaves, leader of Bassetlaw District Council, said: “Levelling Up Funding is crucial to the long term future of Worksop Town Centre. This bid complements developments like the new Bridge Skills Hub and will provide a catalyst to unlock investment, to give people a purpose not just to come into town, but to stay longer in town. “We need to create a shift from surviving to thriving. We have strong support from our MP and the County Council and look forward to the Government delivering on their promise to Level Up forgotten areas like Worksop.” Brendan Clarke Smith, Member of Parliament for Bassetlaw, said: “The ‘Levelling Up Fund’ provides Worksop with an opportunity to start the process of regenerating our town centre, to bring new life into empty units and to restore pride in a once thriving high street. “This will build upon the £17.6m for a new A&E village at Bassetlaw Hospital, which will allow overnight treatment for children to return; the £3.5m funding for the Skills Hub, giving people the opportunity to retrain and reskill; the extra per pupil funding provided to our schools, giving our children the best start in life; the Safer Streets Funding, that provided new CCTV in our town centre to assist the police in making the high street safer and also the support to small businesses during the pandemic with grants, loans and the furlough scheme. “I am delighted that we have been able to work together in partnership with other stakeholders, including the District Council, to produce a bid we feel gives us the best chance of securing this extra funding and once again delivering a town centre we can be proud of. I would like to thank everybody involved for their hard work in putting this proposal together.” Chair of the LUF Board, Andria Birch, Chief Executive of BCVS, said: “Bassetlaw CVS has been pleased to support development of the Worksop Levelling Up bid submission. The strong and diverse partnership approach has kept community voice at the heart of proposals as they have developed. Levelling Up funding will provide a critical stimulus for the creation of a Better Bassetlaw for everyone. We now look forward to next steps and building on the great work to date once funding is secured.”

Nottingham group bookings firm acquires Canadian ticketing provider

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Groubook, the Nottingham-based platform dedicated to group bookings, has acquired StudentSphere, the student ticketing provider in Canada, for an undisclosed sum.

The acquisition is a strategic move for Groubook as they continue to expand into new regions with a high priority on their student business. The acquisition is teased to see Groubook move into the UK ticketing market whilst expanding the reputation that StudentSphere have in Canada.

Groubook CEO Bradley Gough said: “StudentSphere have culminated a great reputation in the Canadian market for being a no-fuss, cost effective and easy to use platform for event organisers.

“Groubook similarly has a reputation amongst organisers and the acquisition not only allows us to move into the Canadian market which has over 1.5m students, but affords us the technology of potentially offering our partners ticketed events for promoters and clubs in the UK as well as bolstering our own platform. “I’d like to place my sincere thanks on record to Andrew, Allan & Sebastien for the opportunity for Groubook to acquire StudentSphere.”

Andrew Lockhead, co-founder of StudentSphere, said: “The company was created by students for students, we couldn’t be happier to ‘pass the torch’ to a group of people who share the same passion and vision for the students market. StudentSphere will be in great hands and be able to accomplish so much more with the help of the Groubook team.”

Macmillan advised Groubook on the deal.

The Recruitment Group expands into Yorkshire with eighth acquisition

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Derbyshire-headquartered The Recruitment Group has completed its eighth acquisition – of MYNT Recruitment, expanding its footprint into Yorkshire. Established in 2004, MYNT has offices in York, Hull and Rotherham and specialise in recruiting for the Commercial, Industrial, Professional and Technical sectors. The Recruitment Group’s group Managing Director, Paul Hipkiss, said: “This is a great milestone for us, as it signifies the next stage of our growth and another great business joining our family. Mynt and The Recruitment Group have a lot in common. Both companies share the same values and are dedicated to providing industry-leading service. Our combined expertise will bring loads of new job opportunities to Yorkshire.” Martin Shaw, Managing Director of MYNT, added: “When we were looking for a buyer for our business, we needed to find a company that shared our values, focus on customer service and who had the vision matched with the expertise to take MYNT Recruitment to the next stage of our development. I can’t wait to see how our business and employees develop in the future. It’s certainly exciting times and my team and I can’t wait to see where this journey takes us.” MYNT founder, John Stanton, is now leaving the business to retire. He said: “As I enter retirement, I am really pleased that Martin and I found a buyer who shares those exact same values and the ethos on which I formed this business back 2004 and I know that whilst we have had great success, that The Recruitment Group will take our team to that next level.”​

The deal is set to take The Recruitment Group’s headcount to nearly 150 and increase its footprint to 15 locations nationwide.

Next in discussions with Joules over equity investment

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Joules, the Market Harborough-based lifestyle group, has confirmed that it is in talks with Next about a potential equity investment. Raising proceeds for Joules of £15 million, Next would become a strategic minority shareholder. Joules has also revealed that it is in discussions with Next over adopting its Total Platform services to support its long term growth plans. In a statement Joules said: “Joules confirms it is in discussions with Next about a potential equity investment raising proceeds for Joules of c.£15 million at no less than Joules’ current market price, which would result in Next becoming a strategic minority shareholder in the Group. The equity investment would be subject to approval by Joules’ shareholders. “There can be no certainty these discussions will lead to any agreement. A further announcement will be made if and when appropriate.”

Only 11 days remain until nominations close for the East Midlands Bricks Awards 2022

With nominations set to close on Friday 19 August for the prestigious East Midlands Bricks Awards 2022, time is running out to make your submissions. Celebrating the outstanding work of those shaping the landscape of our region, the Bricks provide a prime opportunity to put property and construction businesses, professionals and projects in the spotlight while networking with local decision makers over canapés and complimentary drinks. To make an entry for the East Midlands Bricks Awards 2022, please click on a category link below or visit this page.
The Overall Winner of the East Midlands Bricks Awards 2022 will also be awarded a year of marketing/publicity worth £20,000.
This year’s must-attend awards ceremony, revealing winners, will take place on Thursday 15 September at the Trent Bridge Cricket Ground, and will hear from John Forkin MBE DL, Managing Director at award-winning investment promotion agency Marketing Derby – the evening’s keynote speaker.
Find out who last year’s winners were here.

Book your tickets now

Tickets can now be booked for the East Midlands Bricks Awards 2022 – click here to secure yours. The special awards event will be held on 15 September 2022 in the Derek Randall Suite at the Trent Bridge County Cricket Club from 4:30pm – 7:30pm. The occasion will also welcome award-winning mind reader, magician, and professional mentalist Looch, who will bewilder and astonish guests during the evening’s networking. Dress code is standard business attire.
Thanks to our sponsors:                                      

To be held at:

Revenue up while pre-tax losses widen at Light Science Technologies

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Revenue has risen while pre-tax losses have widened at Derbyshire-based Light Science Technologies, the controlled environment agriculture (CEA) technology and contract electronics manufacturing (CEM) group. According to results for the six months ended 31 May 2022, revenue grew by 4.2% to £3.6m from £3.4m in the same period of last year. Meanwhile the company posted a loss before tax of £1.3m, compared to a £0.9m loss last year, which Light Science Technologies says is due primarily to the CEA division’s continued investment in both product research and development and marketing of the company’s products and services. Simon Deacon, Chief Executive Officer of Light Science Technologies, said: “With group revenue increasing by 4.2% for the six months to 31 May 2022, alongside our forward order book and contracts worth £18 million, we have seen an increase in our pipeline of quoted business due to a demand for reshoring manufacturing to the UK, as customers look to increase product security and reduce risk. “As much as the macro trends are challenging in the short term, we are confident that the medium and long-term outlook for the group is promising, as the market continues to grow. With our experienced team, our technologies and energy saving products feeding into the growing pipeline, we are in a strong position to take advantage of the opportunities and achieve our objectives. We remain confident in our ability to achieve our revised forecasts as announced on 10 June 2022.”

Midlands’ permanent placement growth slows to 17-month low in July

The latest KPMG and REC, UK Report on Jobs: Midlands survey highlighted a further expansion in permanent placements and temporary billings in July. That said, the rates of increase slowed to the softest in the respective 17 and 25-month sequences of growth. The rise in permanent salaries eased for the second month running to the slowest since June 2021, while inflation of hourly pay rates for temporary staff also eased. Finally, skilled staff shortages contributed to a further marked reduction in permanent candidate availability, albeit one that was the least marked since May 2021. The KPMG and REC, UK Report on Jobs: Midlands is compiled by S&P Global from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands. Softest rise in permanent placements in 17 months The rate of growth in permanent placements across the Midlands slowed at the start of the third quarter. The increase was solid overall but the softest seen in the current 17-month sequence of growth. Recruitment consultancies indicated that while demand for staff remained high, there were several reports that job offers were turned downed in favour of other opportunities amid candidate shortages. The increase in the Midlands was the fastest of the four monitored English regions. July data pointed to a continued increase in temporary billings in the Midlands. That said, the rate of expansion was much slower than seen earlier in the year and was only marginal. Respondents suggested that clients were increasingly making existing temporary staff permanent or not renewing temporary contracts. Growth in temp billings in the Midlands was the weakest of the monitored regions and well below the national level. Permanent vacancies increased at a marked pace in the Midlands during July. The rate of increase softened for the second successive month and led to the slowest rise in permanent vacancies for 17 months. The rise in the Midlands was also the slowest of the four monitored English regions. Demand for temporary staff also rose steeply in the latest survey period. The pace of expansion eased from June to the softest since February 2021 and was weaker than the national average. Softer decline in permanent candidate numbers The Midlands saw a further reduction in the supply of permanent candidates during July. The rate of decrease remained marked, yet eased considerably to the slowest since May 2021. Anecdotal evidence suggested that people were reluctant to move at present due to economic headwinds and the cost of living crisis. At the national level, the reduction in the availability of permanent staff was quicker than that seen in the Midlands. Recruitment consultancies indicated that temporary candidate numbers decreased at a robust pace in July. That said, the pace of reduction slowed from June to reach the softest for 16 months. A number of respondents indicated that skills shortages had contributed to the lack of available staff for temp roles. The reduction in temp staff availability in the Midlands was the second-slowest of the four monitored regions, behind the South of England. Permanent salary growth eases to 13-month low Salaries for permanent new joiners in the Midlands increased for the seventeenth month in a row in July. While historically elevated, the rate of inflation eased to the softest since June 2021. Recruiters noted a lack of suitable candidates and pressure to increase salaries to entice staff were behind the rise in permanent salaries. The increase in permanent salaries in the Midlands was the slowest of the four English regions covered, however. Hourly pay rates for temporary staff rose markedly during July. The rate of inflation eased from that seen in June and was the second-softest recorded in the past 14 months. Recruitment consultancies indicated that candidate supply shortages had been a leading factor behind higher pay rates. On a regional basis, the increase in the Midlands was the slowest of the four monitored regions. Commenting on the latest survey results, Kate Holt, people consulting partner at KPMG UK, said: “The trend of uncertainty in the UK jobs market of the last few months continues, as overall hiring activity saw another slowdown in July. Given the challenging economic outlook, employers are rightly hesitant about their hiring plans. But to compound this, a lack of suitable candidates and an overall skills shortage in most sectors are keeping starting salaries high. “As the cost-of-living crisis continues to bite – alongside rising inflation – some workers may well choose to stay where they are rather than risk job security by moving now. However, it’s important to note that it is still very much a candidate’s market – and so, businesses should not only be offering competitive salaries, but additional opportunities for development and upskilling to ensure that they are attracting the talent they need.” Kate Shoesmith, deputy CEO of the REC, said: “The jobs market remains solid. Demand for staff continues to rise, as it has done since early 2021, rising in every sector. Starting salaries are still growing too, making this a good time for jobseekers to be looking for their next role. “However, growth in permanent hiring has softened in recent months. We’ve seen that rising fuel and energy prices, inflation and labour shortages are impacting employer confidence. Labour and skills shortages are also restricting opportunities for both the private and public sector to meet consumer demand. Our latest report shows that these constraints could cost the UK economy up to £39 billion a year if we don’t work to fix these issues now. “So it’s vital that both government and businesses start putting their people and their staffing strategies first. We know what needs to be done: there should be improved provision of skills training, increased employment from under-represented groups, and we need good transport, childcare and immigration systems.”