2023 Business Predictions: Simon Rice, founder and Managing Director of HSG
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 Simon Rice, the founder and Managing Director of Derby-based washroom water conservation specialists HSG.
Environmental sustainability and the cost of living crisis continue to share the headlines so I hope that 2023 brings a greater acceptance of how businesses can embrace technology that has a positive impact on both the earth’s precious resources and the corporate balance sheet.
Most people are not aware that the majority of fresh drinking water that is used in a commercial premises goes through the urinals.
Most urinals flush four times per hour – so every 15 minutes, even at night when the building is empty, resulting in a mammoth 96 flushes per day.
Our Ureco water conservation system enables businesses to drastically reduce the amount of fresh drinking water flushed down the drain and saves them money on water and maintenance bills.
In addition to the water and cost savings, the patented Ureco technology stops unpleasant smells and blockages which, in turn, negates the need for harsh chemicals being poured in the drainage system and sewerage system.
It’s often the simplest ideas that have the greatest impact so I hope this is the year that business owners open their minds to the part they can play in reducing their carbon footprint for good of the environment and their own financial health.
Games Workshop appoints new chair
Games Workshop, the Nottingham-headquartered manufacturer and seller of fantasy miniatures, has appointed John Brewis as non-executive chair of the company.
John has been an independent non-executive director of the business since 2018, the senior independent director since 2021, chair of the Remuneration Committee since 2019 and a member of the Audit and Risk and Nomination Committees.
John takes over from Elaine O’Donnell, who steps down from the role of non-executive chair and non-executive director after serving as a director for nine years, and two as chair.
The company will be appointing a new senior independent director and chair of the Remuneration Committee as well as seeking a new non-executive director in due course.
The news came as Games Workshop released a half year trading update, in which it confirmed results are in line with expectations.
The Board’s estimate of the results for the six months to 27 November 2022 is core revenue of not less than £210 million (2021: £191.5 million) and licensing revenue of c. £14 million (2021: £20.1 million). Core operating profit is estimated at not less than £70 million (2021: £69.6 million) and licensing operating profit of c. £13 million (2021: £18.9 million). Profit before tax is estimated at not less than £83 million (2021: £88.2 million).
Major shareholder proposes removal of Topps Tiles chairman
A shareholder at Topps Tiles is pushing for the firm to remove a director of the company from office, as well as ejecting him from the position of non-executive chairman.
It is proposed by Lynchwood Nominees Limited, on behalf of MS Galleon (MSG), that Darren Shapland be replaced, while Lidia Wolfinger and Michael Bartusiak be appointed as non-executive directors of the company.
MSG currently holds approximately 29.9% of Topps Tiles’ voting share capital.
The Board however does not consider the proposals to be in the best interests of the Leicester-based company and its shareholders, saying it intends to recommend that shareholders vote again the Requisitioned Resolutions at the business’s AGM.
MSG owns Cersanit, a major European producer of tiles, in addition to having a range of home improvement and tile retailing interests, primarily in the Polish market.
Topps first received a notification of shareholding from MSG in May 2020, stating that MSG had a 4.1% beneficial interest in the voting share capital of Topps. By November 2020, MSG had built its shareholding to 20%. At this time, Cersanit was a minor supplier to Topps.
In 2021, MSG approached Topps regarding the potential appointment of an MSG representative to the Board, and proposed that Topps should purchase a greater proportion of its tiles from Cersanit. Topps rejected these plans.
Subsequently, MSG voted against the re-appointment of Darren Shapland as chairman of Topps at the 2022 annual general meeting. Since July 2022, MSG has increased its beneficial shareholding in Topps to 29.9% of the company’s voting share capital.
Darren Shapland, non-executive chairman of Topps, said: “The Board strongly rejects these proposals, which it believes expose a clear conflict of interest between MSG’s objectives for Cersanit and the interests of all Topps shareholders. The Board welcomes the support received from our other largest shareholders, who have confirmed their intention to vote against the Requisitioned Resolutions at the AGM.”
Keith Down, senior independent director of Topps, said: “The Board unanimously rejects these resolutions which it does not consider to be in the best interests of the company and its shareholders as a whole. In proposing a resolution to remove the chairman, who has led communications with MSG on behalf of the Board, MSG is seeking simply to strengthen its own position.”
Amazon brings Alexa Young Innovator Challenge to the East Midlands as new research reveals STEM gaps in local schools
New research from Amazon reveals a need to boost the STEM skills gap in schools in the East Midlands to help meet future demand for jobs in computer science and AI.
The research, which quizzed secondary school teachers in the East Midlands, is released as it’s also revealed that teaching Artificial Intelligence (AI) skills in secondary schools could help to fill increasing demand for computer science and AI related roles, supporting on average £71 billion of economic output annually to 2030 in the UK economy, according to a report published by Amazon and Capital Economics.
The need to boost AI learning in schools in the East Midlands is supported by new YouGov research –commissioned by Amazon – among secondary school teachers and parents. The research shows:
- 63% 107 of secondary school teachers surveyed in the East Midlands agree that AI should be part of their school’s syllabus, while 82% 43 of teachers in the East Midlands surveyed believe access to free AI and computer science learning resources linked with the curriculum would help students better engage in computer science.
- Among teachers surveyed in the East Midlands, almost two thirds (62%) 61 have limited access to computer science resources, rising to three quarters (76%) 70 when focused exclusively on AI.
- While two thirds (67%) 125 of secondary school teachers surveyed in the East Midlands believe that education in computer science better prepares students for future careers in all sectors, less than one in three (31%) 152 say AI learning is only part of an opt-in or extra paid-for club and not part of the syllabus.
- Two thirds (66%) 198 of secondary school teachers surveyed in the East Midlands say children don’t have enough information to understand future career opportunities that involve computer science and AI.
- Three quarters (74%) 92 of secondary school teachers surveyed in the East Midlands who think schools should be making an active effort to increase education and resources around AI and CS, say that without increased STEM education and resources, there will be long-term skill gaps
Mansfield secures £2.95m investment for businesses and communities from Government
Nearly three million pounds has been confirmed by the government for projects to support Mansfield’s businesses and communities.
Mansfield District Council has been allocated £2.955m from the UK Shared Prosperity Fund (UKSPF) for over three years. The funds will be used for community projects, business support, and to promote new skills and employment opportunities.
It will also help to deliver the aspirations in the Making Mansfield strategy, which sets out council aims and ambitions between now and 2030.
Elected Mayor Andy Abrahams said: “I am thrilled we have been successful in securing these resources to bring more opportunity and investment to Mansfield.
“The £2.955m will help support long-term fundamental change, growth and regeneration across the district and open up more opportunities across Mansfield bringing new jobs and skills opportunities.
“The creation of a dedicated community grant will also have a huge impact, and I believe it is a core and innovative feature of our approach. Local community groups know best what their communities need, and will now be able to make a difference on the ground. I look forward to seeing this roll-out begin in the New Year.”
The Mansfield Community Grant Fund will offer a maximum of £15,000 in grant for community and voluntary groups to apply for projects that will make a difference in their local neighbourhoods. The council will work collaboratively with Mansfield Community and Voluntary Service. It is expected it will be open to applications shortly.
There will also be an opportunity for direct bidding for projects over £15,000 that must demonstrate that they contribute to the council’s communities and place ambitions. Applications will be invited directly from Mansfield District Council.
The plan will see the council deliver some of the projects itself, some via partners and commissioning, and others through grass-roots activity, targeted towards priority areas and themes and carried out in collaboration with community groups and partners. Plans for business support projects and skills related activity will follow in future financial years.
Councils in England have drawn up the plans with a wide range of local partners that deliver for people in their areas. The authorities have chosen to spend the money on a range of initiatives, such as supporting people into jobs, helping local businesses to grow and fighting anti-social behaviour, and can now begin to deliver these.
The Mansfield submission reflected on local opportunities and challenges to ensure the programme reflected local needs.
The UKSPF marks the first availability of funding to replace EU funding streams previously available and was approved by Government on 5 December.
Levelling Up Minister Dehenna Davison added: “We are taking full advantage of being outside the European Union and unlocking billions of pounds of investment to help level up communities and spread opportunity across the UK.
“The UK Shared Prosperity Fund will have tangible benefits for people up and down the country, from a young entrepreneur in need of a helping hand or those who want to gain the skills they need to secure a decent, well-paid job.
“The UK government has worked closely with local leaders across England, Wales, Scotland and Northern Ireland, giving them a greater say in how this money is spent and ensuring funding is directed to where it is most needed.”
The Government’s approach also means that councils and local partners will have the opportunity to adapt each plan to reflect new economic priorities over the period to 2025.
Elected Mayor Andy Abrahams added: “We have looked to work closely with our partners on the submission, not least via the Place Board and we are pleased to have had their support. We look forward to continuing this relationship as the programme develops.”
Auctioneer celebrates record year
Nottingham-headquartered auction house, John Pye & Sons Ltd, is celebrating business success having exceeded £33 million turnover for its last financial year. The firm improved on the previous year’s turnover of £26.4 million by over 28 per cent, as it continues to realise its ambitious plans for growth.
Despite the impact of the pandemic, John Pye says it has enjoyed a consistent period of year-on-year growth thanks to its focus on innovation and ability to quickly implement changes. Over the past two years, the auction house has invested heavily in improving its 1 million square feet of auction sales space, implementing new technology and adapting its policies and procedures to mitigate the challenges of the pandemic, which have helped drive the whole business forward.
Investments have included the introduction of a delivery service across its entire UK network and a new client reporting and operations audit system. In addition, the auctioneer has introduced an app for internal stock management and inventory tracking, as well as a cutting-edge trade sales platform for bulk sales and converted all payments to online.
John Pye has also invested in its staff, expanding its team by over 20 per cent in the last year. Currently, around 720 staff are employed across more than 60 auction rooms throughout the auctioneer’s UK network. Last year, in recognition of the firm’s strong period of success, employees were rewarded with £1 million in bonuses, amounting to 40 per cent of the year’s profits. The same profit share is planned again this year – working out as £1.3 million to be paid before the end of the year.
Adam Pye, Managing Director at John Pye & Sons, says: “Reaching this momentous milestone is a huge success story for our business. We’ve invested heavily in our people and procedures over the past two years and to have this investment rewarded in such a significant way is incredibly humbling.
“Despite a fast-moving and transient business landscape, we are fully focused on expansion. Our next major milestone is meeting client needs in Europe, driven by our newly owned facility in Zaragoza, Spain. The launch of our in-house bespoke auction bidding platform will see a big movement in client reporting and customer bidding activity, while our new website will greatly enhance the customer journey.
“It’s an incredibly exciting time for the business and we look forward to building on this success to deliver an exceptional retail experience to every client across our growing network. I would like to say a huge thank you to our clients which have supported us over the last few years.”
Nottingham becomes one of five English cities to enter partnership bolstering healthcare technology sector
Nottingham has become a partner city with the Association of British HealthTech Industries (ABHI), making it one of just five in England, following the signing of a new agreement with the University of Nottingham and Nottingham Trent University.
With the highest number of HealthTech companies in any region of the UK, the Midlands boasts several world class universities and centres of excellence, with Nottingham alone being home to the NIHR Nottingham Biomedical Research Centre and NIHR Nottingham Clinical Research Facility, the Sir Peter Mansfield Imaging Centre and the Medical Technologies Innovation Facility (MTIF), making it a thriving hub for HealthTech.
As leaders in the development and implementation of healthcare technologies, Nottingham’s universities and their civic partners will provide access to university facilities, support the ABHI in its national policy work and international engagement, and facilitate collaborations between ABHI member companies and regional stakeholders.
Professor Sir Jonathan Van-Tam MBE, pro-vice chancellor for Medicine and Health Sciences at the University of Nottingham, said: “We’re delighted to have entered this new, exciting partnership with ABHI. This builds on our existing industry partnerships to establish a framework that will enable us to work closely together for the mutual benefit of the Nottinghamshire region, industry and, crucially, patients here, across the UK and the world.”
The partnership forms part of the shared commitments under the Universities for Nottingham Civic Agreement, a collaboration between Nottingham’s two world-class universities and eight key anchor institutions; the agreement sets out partners’ commitments to working across Nottingham and Nottinghamshire for the benefit of the local community, its people and place.
One of the key ambitions of the agreement is to establish a Nottinghamshire MedTech innovation cluster, building on the combined expertise and world-class facilities of the two universities.
Professor Van-Tam continued: “We’ve already made progress forging strong relationships in the industry, thanks to our existing collaboration with Medilink Midlands, and firmly believe that this new partnership with the ABHI will help bring our ambitions even closer to reality, making Nottinghamshire into a leading destination to invest in, or establish, new health and life sciences businesses both nationally and internationally.”
Dr Robert Reisel, Managing Director of the Medical Technologies Innovation Facility at Nottingham Trent University, said: “This extremely exciting strategic partnership creates a platform to promote our shared vision, to make good use of the region’s world-leading expertise, innovation and manufacturing facilities as well as strong ties with local communities and MedTech and HealthTech industries.
“The partnership will further support the acceleration and commercialisation of innovations aiming to reduce the cost of care while most importantly improving the lives of people needing care and treatments, and consequently strengthen the region’s aim to become the most desirable MedTech and HealthTech location for investors, innovators and industry nationally and internationally.”
As part of its commitment to Nottingham, the ABHI will provide developers of medical technology with advice, market and regulatory intelligence and networking opportunities to further their areas of research.
Peter Ellingworth, Chief Executive at the ABHI, said: “By bringing in ABHI’s long-standing expertise in areas like regulation, and our deep connections within the NHS, UK government and the wider HealthTech industry, this partnership allows us to provide focussed support for companies, and the broader HealthTech network, in Nottingham.
“The East Midlands has a compelling offer, and we look forward to collaborating to further strengthen this ecosystem, to benefit patients and stimulate growth of the HealthTech sector.”
Platelet Services celebrates record year
Nottingham-based pre-clinical contract research organisation, Platelet Services, has reported another successful year as it celebrates its fourth anniversary.
Platelet Services offers an array of standard and customised platelet testing assays to determine the effect of compounds on platelet function. Working with both small drug discovery companies and large pharmaceutical corporations, Platelet Services offers comprehensive expertise and support in drug discovery and development where platelet function testing is required.
Founded in 2018, Platelet Services has seen year-on-year growth as global demand rises for the company’s core platelet function testing offering, reporting a 60% increase in turnover over the past twelve months.
Earlier this year, the company doubled its lab space at BioCity in Nottingham, in response to the increase in client projects. The space continues to provide the team with greater capacity and flexibility and has helped to drive greater efficiencies including a reduction in the cycle time from agreeing a package of work with a client to the delivery of results.
The company also bolstered the team with the appointment of Dr Paul Cato as senior research scientist back in March.
Natalia Dovlatova, CEO, says: “The company has come a long way over the past four years. During 2022, we have focused on consolidating the team and our core services and are now in a good place to expand our offering both in terms of capacity and flexibility.
“We have been tapping into an ever-improving understanding of client types and needs, and team capabilities, which is helping us to expand what we can offer in terms of capacity, flexibility and new assays.
“Looking ahead to 2023, we are anticipating more of the same and have a strong pipeline, with increased demand from overseas. Our focus is also to provide thought leadership and highlight the importance of platelet function testing in drug discovery projects and target safety assessment.”
Center Parcs settle discrimination claim after amputee denied use of activity slide
CenterParcs UK has settled a discrimination claim following a case where a visitor to their Sherwood Forest Village was denied use of an activity slide due to having a prosthetic leg.
The claim was submitted by Chattertons Solicitors on behalf of Andrew Shaw who was on holiday with his family in November 2021.
During the holiday, Mr Shaw had approached the entrance to one of the activity slides and was stopped by a member of staff who stated that he was not allowed on the slides due to his prosthetic leg and asked him to remove the prosthetic before going on the slide.
Mr Shaw stated that he was unable to do this as he was unsafe without it. The staff member then refused to allow him on the slide. Following further discussion, it was later confirmed that it was Centre Parcs company policy and that he wouldn’t be allowed to use the slides unless he removed it.
Carrie Clewes, head of Chattertons’ Equality team, said: “Acting on behalf of Mr Shaw we wrote to Center Parcs to point out that in providing an activity centre and accommodation service, Center Parcs are providing a service within the meaning of Section 29 of the Equality Act 2010 and are therefore, obliged to comply with the provisions of Section 29.
“This includes the obligation to make reasonable adjustments. By refusing to allow Mr Shaw to partake in the activities, it was alleged that they had discriminated against him and treated him unfavourably because of something arising directly in relation to his disability – his prosthetic.”
In agreeing the settlement, Center Parcs responded by confirming that it was not their intention to discriminate against Mr Shaw and apologised for any inconvenience, embarrassment and upset caused.
They confirmed that they have now amended their internal policy and safety information, to remove any restrictions in relation to guests wearing a prosthetic and ensured that all staff are appropriately trained on the new policy. They further submitted a written apology to Mr Shaw and made a compensatory payment to reflect his injury to feelings, they further covered his legal fees.
2023 Business Predictions: Seb Saywood, investor at BGF
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 Seb Saywood, an investor at the growth capital investor, BGF.
Despite predictions that the UK is facing a protracted recession, indicators are pointing towards a softer landing than previously feared.
The price of gas is already much less than at its peak, with inflation, dare we say it, also probably having already reached its highest point. However, there’s no doubt that it will remain a tough environment for discretionary consumer spending, particularly in the mid-market.
While in the medium term spending is likely to hold up, thanks to savings generated during the COVID-19 pandemic, in certain demographics consumers may choose to trade down, resulting in wins for the likes of fast food versus casual dining.
From an East Midlands perspective, the region has a strong reputation in sectors like healthcare, biosciences and more generally in business services, with a growing digital economy too. These sectors are less exposed and will hopefully remain resilient. The good news is that employment also remains high. That, combined with high historical saving levels, will hopefully result in a more benign environment compared to previous recessions.
Whilst energy costs will be painful, rising interest rates may have less of an impact on home owners than initially feared, as the majority of mortgages are on longer-term fixed deals. A steady recovery in the value of sterling will also be very helpful. As with any difficult economy, strong, well-capitalised businesses in resilient sectors will find opportunities to seize market share, particularly from less nimble, over leveraged rivals. I expect to see increased consolidation which could drive fund raising activity.
In terms of the M&A landscape, a more cautious view on valuations is starting to come through for certain types of buyers in some sectors, particularly where leverage is involved. However, valuations for the best, most scarce assets, are likely to hold up. This valuation pressure, which is driven by several macro factors, will affect the timing of exits and might result in an increase in minority deals in 2023. Owner managers looking to sell may be disappointed with headline valuations compared to historical expectations. This will encourage some to retain more equity to maximise the upside.
