2024 Business Predictions: Emma Tice, head of HR & Employment Law at Precept
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 Emma Tice, head of HR & Employment Law at Precept.
Keeping on top of changes in HR & Employment Law will be the biggest challenge for businesses in 2024 – and it will make sure that companies such as Precept are kept extremely busy over the next 12 months.
Some of these changes have already happened; the UK government has introduced new regulations that take effect in January 2024 affecting how holiday pay is calculated with rolled up holiday pay now allowed for irregular hours or part-time workers, as well as amending harassment protections in the workplace and flexible working arrangements.
The new year will see an increase in the National Living Wage for workers over the age of 23, an overhaul to the statutory flexible working regime and protections for family-friendly rights on the cards.
It is going to be vital that organisations are properly informed and armed with knowledge because some of these changes are pretty important – and you can bet your bottom dollar that your staff are going to be keenly aware of what’s going on, as that’s a trend we’ve seen since the dreaded days of the pandemic. Employees are much more attuned to what their rights are and they’re also far more willing to take steps to enforce those rights.
Next year could also see a new government at the helm and, should this happen, then there may well be even more changes to HR & Employment Law.
The Labour party has indicated that it will make significant changes to the ‘Employment Rights Bill’ within its first 100 days in office to include better sick pay, the creation of new and extended legal rights for trade unions, a ban on zero-hour contracts and a proposal to make fire and re-hire tactics unlawful.
Any major policy reforms, though, will take several months to be introduced and implemented, but it’s important to be aware that these changes could be on the horizon.
Next sees strong Christmas
Leicestershire retailer Next has enjoyed strong Christmas trading, with full price sales during November and December better than anticipated.
According to a new trading statement, in the nine weeks to 30 December, full price sales were up 5.7% versus last year – £38m better than Next’s previous guidance of +2% for the period.
In turn the business has increased its full year profit before tax guidance by £20m to £905m, up 4% versus last year. Of the £20m increase, £17m comes from the sales beat to date and £3m comes from an upgraded forecast for full price sales in January.
Meanwhile, Next has issued full year guidance for the FY25 financial year, in which it expects total sales to rise by 6% and profit before tax to grow 5%.
Shirebrook giant swoops for luxury retailer
Shirebrook-based Frasers Group has acquired the MATCHES business from MF Intermediate Limited, a subsidiary of funds advised by Apax Partners, by way of the purchase of 100% of the shares of a group of six companies and the acquisition of the senior and junior debt owed by those companies.
MATCHES is a destination in online luxury for men and women, which offers a modern edit of more than 450 established and next-generation designers and generates the majority of its revenue internationally, with the business delivering to 150 countries outside the UK.
The consideration totals approximately £52 million and will be settled in cash at completion from Frasers’ existing cash reserves and facilities.
The MATCHES business has been loss making in recent years.
Frasers says the acquisition is an opportunity to further develop its Elevation Strategy and strengthen its luxury offering.
Nick Beighton, Chief Executive Officer of MATCHES, will work with the Frasers team to develop a strategy to build on the underlying strength of the business whilst unlocking synergies with Frasers.
Michael Murray, Chief Executive Officer of Frasers, said: “MATCHES has always been a leader in online luxury retail and has incredible relationships with its brand partners. This acquisition will strengthen Frasers’ luxury offering, further deepening our relationships and accelerating our mission to provide consumers with access to the world’s best brands.
“Whilst the global luxury environment is softer, we are confident that, by leveraging our industry-leading ecosystem, we will unlock synergies and drive profitable growth for MATCHES.”
Nick Beighton, Chief Executive Officer of MATCHES, added: “Since I joined MATCHES last year, we have made good progress, sharpening our brand and product curation and improving the day-to-day operations of the business.
“As a result, we have seen a resilient trading performance despite the challenging economic backdrop. Being part of Frasers, with their utter commitment to luxury, will give this business access to greater scale, best-in-class retail expertise and the financial stability it needs to more effectively deliver for our brand partners and our customers.”
Midlands private equity activity falls significantly in 2023 from two year high
Buyout activity across the Midlands private equity industry dropped markedly in 2023, with the pendulum swinging back from the record activity levels seen in the aftermath of the post-COVID period, according to provisional full-year data (up to 1st December) from CMBOR, the Centre for Private Equity and MBO Research based at Nottingham University Business School and supported by Equistone Partners Europe.
The 28 buyouts completed in 2023, with a cumulative value of £1.2bn, represent a dramatic fall from the two highest annual values of the post-2008 period, with deals worth £5.9bn completed in 2022 and deals worth £6.1bn in 2021. This sense of an industry-wide pause is underlined by cumulative deal value not surpassing £2bn for only the third time in the last ten years and is a similar theme to that seen across the UK and Europe.
The decline in deal activity started in H2-2022, following a record 18-month period, and continued into H1-2023, where just £0.1bn worth of deals were completed in the first six months of the year. The downward trend reversed in H2-2023 with £1.1bn worth of deals completing, providing some encouragement for the year ahead.
Dealmaking within traditional sectors such as Business Services and Industrials has held comparatively steady as firms seek value and stability in an otherwise difficult market. However, TMT and Healthcare, two sectors which experienced a remarkable pandemic-era boom, have experienced major corrections, with valuations and volumes both falling notably in the region.
Will Copeland, from Equistone’s Midlands office, said: “The full extent of the decrease in Midlands buyouts was not anticipated, but we are seeing green shoots with a rise in activity in the second half of the year. There has not been a shortage of opportunities to do deals in 2023. However, transactions have faced a number of challenges which have often resulted in the timing not being right.
“Despite this, at Equistone, we’ve experienced a record year for exits in 2023, including the divestments of Acuity Knowledge Partners and Bulgin. We have a number of assets in the pipeline to exit and anticipate new investment activity will pick up across the first two quarters of 2024.
“Looking ahead to 2024, this sentiment is echoed with Corporate Finance advisors having healthy lists of Midlands mandates, and the slowdown in private equity and debt deployment over the last 12-18 months could cycle to an increased urge for new investment and exit activity, potentially at reset valuation expectations compared to the post-covid boom.”
National Space Centre appoints new chair of trustees
The National Space Centre has welcomed a new chair of trustees, Stuart Martin.
Having worked in the space industry from University, including being Chief Executive of the Satellite Applications Catapult for ten years, he is taking over as chair from Prof Sir Martin Sweeting, who began retirement at the end of 2023.
In an interview for the Space Centre’s blog, Stuart said: “I have been aware of the charity from its early days as a Millenium Project, and visited many times. So I already knew something of its mission and purpose.
“But after speaking with Chas Bishop (the Space Centre’s Chief Executive) and Prof Sir Martin Sweeting (the previous chair of trustees), I realised just how much the values and objectives of the National Space Centre aligned with my own and it made me very excited to have the opportunity to be part of the team.
“It’s great to see how the National Space Centre has become such a vibrant and important institution, both to the Leicester region and nationally. I have huge respect for Sir Martin, and am very excited to carry on his work.”
Looking forward, he is hoping to focus on increasing the scope of the centre’s charitable objectives, including the IGNITE! Project and community outreach efforts, as well as creating a systematic funding programme to ensure the future needs of the centre are met.
Green light for residential scheme in Derwent Valley Mills UNESCO World Heritage Site
Wavensmere Homes has received the green light from Amber Valley Borough Council for its revised plans for the redevelopment of Milford Mills, which overlooks the River Derwent, located between Belper and Duffield in north Derbyshire.
69 new homes will now be delivered on the historic site, which is within the Derwent Valley Mills UNESCO World Heritage Site.
Accessed off Derby Road (A6) in the centre of Milford village, the redevelopment of former commercial premises will feature 42 two- and three-bedroom houses and 27 one- and two-bedroom apartments, within a four-storey building overlooking the River and Mill Lade.
Wavensmere Homes has already spent over £250,000 on archaeological investigations on site throughout 2023, while amending the original planning application to enable the 4.7-acre development to be gas free and fully compliant with new building regulations. The houses will be installed with air source heat pumps, while the apartments will have electric heating, with solar PV panels fitted to the roof of the building to generate renewable energy.
Dating back to 1780, Milford Mills is a former cotton mill which housed some of the world’s first mechanised industrial spinning factories. The highly unique project will see the retention and restoration of numerous historic features from the former cotton mill, including the Mill Lade that now feeds a hydroelectric power plant downstream, the wheel pit and tail race that historically connected the mill to the River Derwent, along with the repair of all original stone boundary walls.
The site will be further complemented by two acres of public open space and the recent restoration of the Grade II listed Dye House by Chevin Homes to form a 4,500 sq ft commercial premises.
James Dickens, Managing Director of Wavensmere Homes, said: “Milford is one of the most sought-after villages in north Derbyshire, with the area’s historical importance reflected in the UNESCO World Heritage status.
“We are pleased to have received the go-ahead to amend the extant plans and move forward with this important £22m redevelopment project to provide much-needed quality new homes. During the planning process, we have already been approached by over 600 local people keen to secure a house or apartment here, with 21 having first refusal of their choice of plot.
“Milford Mills will have a clear focus on sustainability and renewable energy, while delivering natural stone facades that reflects the traditional architecture of this village and the nearby market town of Belper. Our team will now progress with pre-construction preparations and we look forward to being able to start construction for the 69 riverside houses and apartments in the coming months.”
Smart move for water efficiency and sustainability specialists
Acting on behalf of Private Landlord clients, Salloway Property Consultants have let a modern business unit located at the heart of the Parker Centre, off Mansfield Road, within Derby.
The property, which provides recently refurbished hybrid office and workshop accommodation totalling approximately 4,050 sq ft, has been let to new tenant H2OiQ Limited.
The water efficiency and sustainability specialists (which incorporates both H2OiQ and HVACiQ) have relocated from Worcestershire to the new property in Derby in order to aid expansion and cope with increasing demand.
Richard Butler, director at H2OiQ Limited, said: “This is a wonderful property with plenty of office space, which was a huge factor for taking on this commercial building. It is absolutely ideal for us – it was also crucial to be located within the ‘centre of the universe’, Derby!”
Hugo Beresford, associate director at Salloway, said: “I am delighted that I was able to secure a high quality occupier for my client and at the same time line up the tenant with the space that they needed to enable their impressive growth plans.
“H2OiQ Limited are an innovative and rapidly expanding business whose range of products and services are at the cutting edge of water and energy sustainability – they were a pleasure to deal with throughout the transaction process and I wish them the very best in their new premises.”
East Midlands firms choose productivity, growth and investment as top New Year’s resolutions
New research from Lloyds Bank has found that two fifths (40%) of East Midlands businesses are making New Year’s resolutions to improve their productivity, as businesses signal confidence in more positive macroeconomic conditions ahead.
This optimism about the future comes after 2023 being a tough year for businesses, as they faced into high inflation and a sluggish economy.
The data revealed the top three areas where firms are focusing their attention as they head into the new year, with two fifths (39%) concentrating on developing their business, a third (32%) focusing on staff training, and another third (32%) looking to hire more staff.
As businesses take stock of 2023, many are reporting they are looking at ways to ensure they have a healthy cashflow, with more than a third (35%) of firms planning to keep a closer eye on costs over the next 12 months.
The data also shows that businesses are setting themselves up for growth, by building teams to support new opportunities, with over half (58%) expecting to hire more staff in the New Year.
With the expectation of inflation continuing to fall, more than two thirds (67%) of firms are confident that they will see their business become more profitable in 2024 compared to 2023.
Almost three fifths (57%) expect their turnover to increase in 2024. Of those expecting an increase in turnover, a fifth (22%) anticipate growth of 5%-10% and almost one in ten (6%) have eyes on growth of 11%-20%.
Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “It’s fantastic to see so many East Midlands businesses readying themselves for a strong year. Buoyed by a busy festive season, the country’s thriving hospitality and leisure sectors will be hoping to lay the foundations to keep momentum going as we enter 2024.“While firms will rightly be mindful of costs and where their business will benefit most from investment, it’s encouraging to see a focus on hiring new staff and developing those already onboard as routes to growth. “Having financial flexibility will be key for businesses as they expand their offering, and we will be here to help them maintain the healthy cashflow needed to unlock new opportunities.”122 affordable homes set for Sleaford brownfield site
Countryside Partnerships, the provider of multi-tenure, affordable homes, has exchanged contracts with Tesco Stores Ltd on a 12.8-acre brownfield site in Sleaford, Lincolnshire with a view to building 122 new affordable homes, 5 First Homes and a 66-bed care home.
They will also be providing a new county standard bowls green and club house to replace the ageing facilities currently on site.
The regeneration project will transform the former industrial site, previously used for seed processing, into much-needed housing with a mix of two-, three- and four-bedroom family homes for the area. The First Homes are market-sale properties discounted by at least 30% and available to first-time buyers meeting certain eligibility criteria.
The land is allocated for mixed-use and residential development in the Lincolnshire Local Plan, adopted in April 2023. Countryside now expects to submit a Reserved Matters planning application in the first half of 2024 with a view to starting work later in the year.
Lee Parry, Managing Director, Countryside Partnerships North East Midlands, said: “Redeveloping brownfield sites such as this one in Sleaford is hugely important in helping to tackle the crippling shortage of affordable homes across the UK.
“Our planning team cannot wait to get into the finer planning details with a view to transforming this former industrial site into an attractive and welcoming place to live for the local community.”
G F Tomlinson continues support of Arena Church with refuge centre renovations
Following the delivery of sanitation facilities for Arena Church in Nottingham, Midlands contractor, G F Tomlinson has transformed another disused space to help vulnerable city residents who need it most.
As part of the company’s commitment to delivering social value in the region and building on its long-standing relationship with the church, the contractor has provided ventilation upgrades and enhancement works for the basement area of the central city shelter in Western Street, Hockley.
The contractor partnered with Amptron Electrical Services to provide upgraded ventilation systems which allow mechanical air change movements, to help with the lack of natural air flow, due to the location within the building. The G F Tomlinson Client Care team also carried out redecoration works to the space.
These enhancements have enabled the basement area to become a more comfortable space within the church, providing vulnerable Nottingham residents with shelter, sanitation facilities and hot refreshments.
New bollards were also installed to car parking bays, enabling the church to rent out the spaces to local businesses in the city centre, providing much needed revenue for the shelter. A drone survey was also completed of the building’s roof, to assist Arena Church with assessing repair and maintenance needs.
In February, G F Tomlinson worked with local sub-contractors alongside Pastor, Jono Kirk, from Arena Community, to convert previously unused space into a shower and washer / dryer facility for vulnerable Nottingham residents to use who lack access to basic sanitation facilities.
In 2023, the contractor provided a total of £67,782 worth of social value-added opportunities for Arena Church, and the vital additions will act as an extension of the church’s mission to ‘Go, Grow, Love and Serve’ in Nottingham City, with facilities and spaces on hand ready for the church’s ‘Care for a Coffee’ initiative, which launches early next year.
‘Care for a Coffee’ will provide warm, safe spaces for vulnerable people to get a weekly hot meal, with an option to clean and dry clothes and make the most of a ‘shower hour.’
Stephen Green, project manager at G F Tomlinson, said: “It has been a pleasure to return to the Arena Church and to build on the great work we did previously, providing further necessary renovations to this community asset and provide help and facilities where most needed, especially in the wintertime.
“As a company, we are strong advocates of the incredible work that Arena Church does for the local area, and it’s a privilege that the team have again been involved in further enhancing spaces to provide refuge for vulnerable people in Nottingham.”
Jono Kirk, Pastor at Arena Church, said: “We’re very grateful for our relationship with G F Tomlinson and other subcontractors who have helped us on our journey to improve support services for city residents who need our help.
“Our community can now access vital facilities and safe, comfortable spaces which they wouldn’t have been had without the help of this partnership. Thank you to everyone involved.”
