Shoe Zone sees “a very positive year”
Shoe Zone’s Chief Executive has hailed “a very positive year,” with Anthony Smith highlighting “strong and consistent results throughout the key trading periods, particularly in the second half, with strong peak summer and Back to School trading.”
According to audited results for the 52 weeks to 30 September 2023, the Leicester-based retailer saw revenue of £165.7m, growing from £156.2m in the year prior. This included store revenue of £134.8m (up from £129.8m), and digital revenue of £30.9m (up from £26.4m).
Pre-tax profits meanwhile reached £16.2m, increasing from £13.6m, primarily due to strong second half trading, including Shoe Zone’s key back to school period, strong peak summer sales and the benefit of lower container prices that started to be realised mid-year.
The year also saw 72 closures and 35 openings, leading to 37 fewer stores.
2024 Business Predictions: Larraine Boorman, Chief Executive, Optima UK
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 Larraine Boorman, Chief Executive of Leicester-headquartered Optima UK, the recruitment, training, and business advisory firm.
For some, 2023 was a year of getting back to normal after economic turmoil largely down to the COVID pandemic.
But, we have also seen a year that has been impacted by the war in Ukraine. Next year we will have a general election and no doubt that too will play its part.
That said, business deals are still being done, companies are still moving forward, people are being innovative and new revenue streams are being opened up. The future is bright for sectors such as manufacturing, engineering, and professional services.
There are a number of exciting things happening in the East Midlands and beyond, so we firmly believe that 2024 will be a year of growth for businesses.
Because of this, getting talented people on board will be a high priority but will continue to be one of the biggest challenges.
High-calibre candidates are in great demand, so an organisation needs to be able to offer a competitive salary and suitable benefits that attract the right people. It’s not always easy to get this absolutely right, particularly if, like many businesses of course, you have a million and one things to do on a daily basis, but looking internally and externally will be key.
Training, and wellbeing programmes, will be paramount in 2024 as more and more people recognise that getting these elements right will help them to achieve their goals.
People who are experts in their field, like our recruitment and training consultants, will be worth their weight in gold more than ever before.
6 reasons to hire a video production company in 2024
With video now being the most popular digital marketing tool, your company’s video content needs to be as professional as you want to appear – not only to impress customers and create sales, but also to keep up with your competitors.
There is a direct correlation between the quality of your video marketing and how well customers perceive your business. Video marketing is becoming more and more essential, so it’s important to do it well in 2024. Here are some big reasons why you should consider hiring a professional video production company to promote your company effectively.
Staying relevant
Over the last few years, there has been a 63% increase in the number of businesses that use video as their primary form of promotion.[1] If you aren’t keeping up with your competitors and staying relevant by posting slick, well-produced videos, your company is at a serious disadvantage.
Video is not only a great means to inform people about why they should buy your products or services, but you now actually need to be posting great videos to even get noticed amongst the competition. Don’t get left behind. To achieve the necessary level of high quality, you should really consider hiring a production company.
Cost benefit
It’s easy to assume that it isn’t worth the money to hire a professional video company, when you consider that filming on a phone doesn’t cost you anything. But it actually costs a lot more than you think.
Your ‘homemade’ looking videos are damaging your company’s image and reputation, ultimately affecting your bottom line when potential customers look elsewhere and buy from a competitor who seem more professional in their videos. Conversely, investing in high quality video marketing could be the trigger for big growth in your company this year.
Great return on investment
Your ROI for this form of marketing will be determined by the quality of your videos and how effectively your message is conveyed. In a survey, 86% of marketing professionals reported that they used video as a marketing tool – 78% of which considered videos to be responsible for a direct increase in sales.[2]
Let’s look at a representative example to illustrate the ROI you might achieve.
If the promoted product retails at £30 and the promotional video is seen by 50,000 potential customers, just a 1% conversion rate would create sales of £15,000.
Assuming that a professionally-produced marketing video might cost around £2,000 to create and promote, and you gross £8,000 on the £15,000 of sales, that leaves you with £6,000 that you wouldn’t otherwise have had.
Extrapolate this over a range of products/services, with higher retail prices, more video views, and/or a higher conversion rate, and this explains why so many marketers are hiring professional video production companies.
Boost your sales
Seeing your product in action, or a video about how your service works, makes potential customers much more likely to buy.
Video is naturally much more enticing and engaging for a viewer, as compared with still images.
Unsurprisingly, around 8 in every 10 professional marketing videos have a positive impact on conversion rates and sales figures.[3]
In fact, your website visitors are 85% more likely to buy after watching a high-quality sales video.[4]
Professional brand image
If you want your company to appear professional and win more sales through video marketing, there is absolutely no reason why you should be filming on a phone. Attempting to film on a phone leads to a ‘homemade’ and amateur look, especially if the person filming has little to no knowledge of professional videography. This in turn presents your company as amateur, small or unprofessional.
Even the greatest phone camera will struggle to compete with professional filming equipment. Unsteady shots, badly faked shallow depth, wrong frame rates, visual noise, uncontrolled focus shifting, terrible lighting, poor quality audio. These are just some of the many issues that top gear and knowledge can overcome – meaning your videos will be more effective and pleasing for customers to watch.
Another often underestimated factor in producing professional videos is the amount of time and expertise required for editing. Post production often takes a lot longer than the filming itself and requires years of practice to become highly skilled at. The video is ultimately a representation of your company, so the editing needs to be superb. You can see, therefore, how hiring a video company is a must if you want to achieve more sales and the correct brand image.
Effective time management
We’ve only covered a few aspects in this article but you can already get the sense that a lot of time goes into producing great video marketing content.
With time at such a premium in our fast moving business world, just the fact that you can save so much of it is a fundamental reason why you should hire a video production company. You can free yourself to focus on other aspects of your business, while professionals deal with your video marketing.
Which video production company should I choose?
There are many to choose from, but it’s wise to hire a video production company that specialises in video marketing and corporate videography, such as Glowfrog. This way, you know they have the skills necessary to do an effective job for your business.
Sources: 1. WyzOwl.com 2. TheSocialShepherd.com 3. G2.com 4. Wix.com
Falling consumer spending a key concern for Midlands businesses, as companies brace for challenging first quarter
A fall in consumer numbers and spending remains a top concern for Midlands businesses, as companies brace themselves for a challenging first quarter of 2024, according to accountancy and business advisory firm, BDO.
BDO LLP’s latest bi-monthly Economic Engine survey of 500 mid-market businesses, revealed that 44% of regional businesses rank dwindling customer numbers and a reduction in spending as one of the biggest challenges facing their business over the next six months, as inflation and the high cost of living continue to hit customer pockets.
The regional trend is also mirrored in the retail sector, with more than a third (37%) of retailers placing this as their number one concern.
It follows the latest BDO High Street Tracker that shows total like-for-like retail sales were negative in the last three months of 2023, the so-called ‘Golden Quarter’, pulled down by poor store and non-store fashion sales, as customers held back on their discretionary spend.
The survey of mid-sized businesses also showed that supply chain pressure, exacerbated by geopolitical events and staff and skills shortages, is still proving to be a thorn in the side of Midlands businesses, with more than half of regional companies (54%) admitting it will be their biggest challenge in the first half of 2024.
A quarter (25%) ranked difficulty accessing capital, such as bank loans and venture capital, as one of their top concerns.
Kyla Bellingall, regional managing partner of BDO in the Midlands, said: “There are a number of enduring themes that continue to blight Midlands businesses, centring predominantly reduced customer spending, supply chains, and the cost of doing business.
“While these will remain a cause for concern in the coming months, in the longer-term it is the crippling costs of borrowing that will significantly hamper growth. Unsurprisingly, high monthly loan repayments are proving to be a significant concern for Midlands businesses, with many calling on the Government for greater support.
“The Government should ensure it focuses on regulatory changes to tackle difficulty accessing capital, as well as providing greater financial incentives that are specifically targeted at mid-sized businesses, whose growth will play a key role in the overall economic recovery of the UK.”
Despite the ongoing pressures facing Midlands businesses, almost all (84%) of regional companies said they had achieved forecasted growth in 2023. When asked what steps they intended to take to help drive growth in 2024, more than a quarter (28%) of regional businesses said they plan to reduce the physical footprint of their business, with 26% intending to seek new funding to refinance or pay down debt. A quarter (25%) have set their sights on investing in retraining or reskilling employees.
Bellingall added: “While the outlook is beginning to improve, with inflation heading in the right direction, there is still a huge amount of uncertainty on the horizon. 2024 will throw up its own challenges, in the form of potential political change and more economic volatility.
“As such, businesses in the region must clearly define their priorities in the coming months, while continuing to address ongoing challenges.”
Financial services volumes dip in fourth quarter
The fourth quarter of 2023 saw financial services business volumes contract for the first time since June 2020, according to the latest CBI Financial Services Survey. Volumes are expected to be broadly flat over the next three months.
The quarterly survey, conducted between 21 November and 15 December, also showed that optimism and profitability were both flat across the quarter, with profitability set to fall in the three months to March. Headcount growth accelerated over the quarter and is expected to remain quick in the months ahead.
There was a mixed picture for investment intentions, with firms expecting to increase investment in IT and vehicles, plant & machinery, while cutting back on capital expenditure in land & buildings. Notably, this was the first survey since December 2014 in which FS firms expect to increase investment in vehicles, plant & machinery.
Key findings:
- Business volumes fell at a quick pace in the quarter to December (weighted balance of -23% from +27% in the quarter to September). Firms expect volumes to be broadly flat next quarter (-3%).
- Optimism was broadly unchanged in the quarter to December (-3%).
- Average spreads declined slightly in the quarter to December (-4% from +5% in September). Firms anticipate that spreads will fall at a quicker pace next quarter (-23%).
- The value of non-performing loans was broadly unchanged in the quarter to December (+3% from +8% in September) but is expected to grow marginally next quarter (+4%).
- Profitability was broadly flat in the quarter to December (-3% from +13% in September) but is set to fall next quarter (-19%).
- Headcount grew at a fast rate in the quarter to December (+46% from +34% in September). Firms expect headcount growth to ease next quarter, while remaining quick overall (+32%).
- Firms expect to increase investment in IT and vehicles, plant & machinery in the next 12 months (compared to the last 12). Capital expenditure on land & buildings is set to be cut back.
- Uncertainty about demand was the most commonly cited factor likely to limit investment in the next 12 months (53% from 47% in September).
- The share of firms citing cost of finance as a potential limiting factor for future investment declined noticeably from last quarter (9% from 28% in September).
Aggregate Industries swoops for Eco Readymix
Leicestershire business Aggregate Industries, a member of the Holcim Group, has swooped for Eco Readymix Ltd, a producer of mortar and concrete in the north-west.
The acquisition will reinforce Aggregate Industries’ position in the north-west market and also help establish its place in the UK mortar market.
Eco Readymix was established in 2004 and has sites in Wrexham and Ellesmere Port with a third site due to open in the Midlands. It produces Ready to Use mortar and Dry Silo Mortar and serves national house builders, groundworkers and civil engineering firms alongside the domestic market.
It also produces ready mix concrete, liquid and traditional screed, concrete masonry blocks and aggregates. The company has strong sustainable credentials. Its Wrexham site is almost entirely powered via a biomass system alongside both wind and solar power. It employs 52 people across its sites.
Dragan Maksimovic, Chief Executive Officer of Aggregate Industries UK, said: “We are delighted to be able to announce the acquisition of Eco Readymix and welcome them to Aggregate Industries.
“As a business, it has clear sustainable values very much in line with our own, and will strategically add to our strong footprint in the north-west.
“This also marks our entry into the UK mortar market with a knowledgeable and ambitious management that has multiple synergies with our own. The acquisition supports our long-term strategy to continue to grow our business in order to become the UK’s leading supplier of sustainable construction materials and solutions.”
Gary Billington, Managing Director of Eco Readymix, said: “We’re really looking forward to taking the business forward with Aggregate Industries. This allows us to continue our ambitious growth plans and to develop our offering.
“It is really beneficial to be part of a leading UK company which has a clear vision for sustainability and to be able to have access to their networks and expertise.”
G F Tomlinson partners with Aortic Dissection Charitable Trust
Midlands contractor, G F Tomlinson, has named the Aortic Dissection Charitable Trust as its chosen charity for 2024.
Aortic Dissection is a serious heart condition caused by a partial tear in the wall of the aorta, which prevents blood supply and can lead to the rupturing of organs. Seventy people are diagnosed with the condition each week in the UK and Ireland with only an average survival rate of 50%.
The Aortic Dissection Charitable Trust aims to help raise awareness and funding for research into early detection, supporting prevention, treatment, and cures for the condition, which if diagnosed and treated in time, has an 80% survival rate.
Having received a letter from Pauline Latham, OBE MP who has been writing to local businesses in Derbyshire asking them to support the charity following the sad loss of her son, Ben, in 2018 from the condition, Group Chairman, Andy Sewards was keen to pledge G F Tomlinson’s support as their chosen charity for 2024.
As part of its commitment to the charity, the contractor will be hosting a variety of fundraising events from January through to December to help towards prevention and treatment of the condition, in the hope that it will save many more lives.
Andy Sewards said: “We are honoured to be supporting such a worthy charity for 2024. Aortic Dissection is a serious condition and it’s vital that we work together to raise awareness for its diagnosis and treatment, to prevent unnecessary fatalities.
“In line with our social value ethics and support for local charities, we will be planning multiple fundraising events throughout 2024 to ensure that we help the trust continue with its incredible work for next year and beyond.”
Pauline Latham said: “I am so grateful to G F Tomlinson for their wholehearted support for Aortic Dissection. Many people don’t know anything about it until their family is devastated by it. The more we can do to prevent unnecessary deaths the better.
“We need better outcomes for patients and G F Tomlinson’s support will really help the charity’s ability to fund research into this little-known condition. I want to thank them for all they will be doing over this year.”
Edwin James Group snaps up Automated Control Solutions
Edwin James Group has acquired Automated Control Solutions Holdings Limited and its subsidiaries Automated Control Solutions Limited and ACS Electrical Engineering Limited, together trading as ACS.
The deal will expand the Group’s digitalisation offering, growing its systems integration and OT automation capacity. All staff will be retained, including the leadership team, who will work closely with group CEO Christopher Kehoe and EJ Peak Technology Solutions executive director Michael Thomas to integrate the business.
The strategic acquisition strengthens Edwin James’ process engineering capabilities and provides additional capacity to support customers’ sustainability, digital and energy transitions. As part of the company’s buy-and-build strategy, it positions the Group for further growth.
Established in 1998, Burton-based ACS is a control systems integration services provider that delivers services across two divisions: Systems Integration and Electrical Engineering. The business specialises in software and electrical-based control solutions for the manufacturing sector and focuses on working with large corporate customers in the food and beverage, brewing and liquid processing industries.
Christopher Kehoe, CEO at Edwin James Group, said: “ACS is a business we have known and admired for some time, and we believe their blend of skills, knowledge and specialist experience is a perfect complementary fit for our business.
“With shared customers and a highly skilled team, ACS will enhance our existing industrial digital skillset. Following our successful funding round with Aliter Capital in February last year, we have been executing our buy-and-build growth strategy. ACS is a testament to our commitment to strategic expansion.”
Mr Kehoe continued: “ACS is a well-run business and I’m looking forward to working with Paul and the team to integrate ACS into the Group.”
Paul Cantrill, Managing Director at ACS, said: “It’s really exciting to be joining the Edwin James Group. Our two businesses share a number of customers and the same values including a commitment to high-quality service.
“Edwin James is going from strength to strength and being part of a national organisation will provide structure and greater scope for growth for ACS and its employees.”
New light industrial scheme to be built in Nottinghamshire
Nottingham developer Decorum Estates has been given the go-ahead to begin work on a new light industrial park in the Nottinghamshire town of Cotgrave.11 units will be built at Decorum Park in the town on a site bought by Decorum last year from Wilson Bowden/Homes England, who were represented on the deal by Mark Tomlinson at FHP. NG acted for Decorum Estates on the deal.Thomas Szymkiw, head of agency at NG and his colleague Charlotte Steggles, associate director, are marketing the project.Thomas said: “It’s great news that Decorum Park has been granted planning permission. From day one we’ve received particularly strong interest in this site. Decorum is a high quality developer and this new scheme will bring forward some of the finest light industrial units in the East Midlands.“Cotgrave is an up-and-coming town and its excellent transport links and local amenities mean that these units are perfect for ambitious companies looking to make a real statement with their next property move.”Charlotte added: “It’s so rare that units like this are built to be sold as opposed to let. They are perfect for small businesses or SIPP investors, and the quality of this project will be ahead of anything else in the Rushcliffe area.”Chris Carlisle, director at Decorum Estates, added: “We are delighted to have secured planning and bring the scheme forward. Decorum Park offers a unique opportunity to purchase quality business units in this part of Nottinghamshire.”
High volume dispensing pharmacy sold to Lincolnshire operator
Specialist business property adviser, Christie & Co, has sold D L Ogle Pharmacy in Worcester to a Lincolnshire operator.
D L Ogle is a standard hours community pharmacy that dispenses an average of 12,000 items per month and is located in the Worcester city suburb of St Johns.
The business has been owned by David Ogle and his family for more than 30 years and was brought to market in 2023 to enable family members to either retire or pursue different business interests.
Following a confidential sales process with Carl Steer at Christie & Co, it has been purchased by brothers Ali and Mohammed Talib, Tapiwa Masamha and Chikondi Mlia, who also own Gohil’s Pharmacy and Whistlers Pharmacy in Lincolnshire, the latter also being sold by Christie & Co.
Carl Steer, director – Pharmacy at Christie & Co, says: “The sale was confidentially marketed but, within just a few days, interest was achieved from multiple parties, and we were able to present our client with an acceptable offer – this was a truly remarkable achievement but one that the long-standing business deserved.
“The buyers own two sizeable pharmacies in the East Midlands and now add this well-performing profitable pharmacy to their portfolio. It was a pleasure to deal with everyone on the deal.”
D L Ogle Pharmacy was sold freehold for an undisclosed price.
