Mattioli Woods hails resilient first half trading performance
Mattioli Woods, the specialist wealth and asset management business, has hailed its “resilient trading performance” in interim results for the six months ended 30 November 2022.
Revenue was up 10% to £54.9m, growing from £49.9m in the same period of the year prior, with acquisitions made since January 2021 contributing £20.2m.
Meanwhile operating profit jumped 62.7% to £4.6m, up from £2.8m, and pre-tax profit increased 45.5% to £4.8m, up from £3.3m.
Ian Mattioli MBE, Chief Executive Officer, said: “The first six months of this financial year saw the group deliver a resilient trading performance against the challenging macroeconomic and geopolitical backdrop that persisted throughout calendar year 2022.
“During the period, we proactively balanced securing good financial outcomes for our clients with ensuring the long-term growth and sustainability of our business, remaining true to our purpose of putting clients first. We are pleased to report further progress towards our strategic medium-term goals, achieving continued revenue growth in the first half of this financial year.
“Revenue of £54.9m was 10% higher than the equivalent period last year (1H22: £49.9m) driven by positive performances in our pensions advice and administration, employee benefits, property management and private equity management operating segments.
“The success of our new business initiatives and the strength of existing client referrals resulted in organic revenue growth of over 2%, despite a 2% fall in the value of total client assets. Clients’ demand for advice and proactive communications by our advisers in such uncertain times resulted in an increase in advisory time, as well as the value of new clients on-boarded in the first half more than 10% higher than the equivalent period last year.
“The Group’s strong, integrated business model facilitates multiple engagement points in providing a holistic service to our clients and to generate multiple revenue streams to facilitate future revenue growth.
“The eight acquisitions completed since 1 January 2021, including our two largest acquisitions to date, Maven and Ludlow, contributed £20.2m (1H22: £19.4m) of revenue in the period and continue to deliver revenue synergies. The contributions of recent acquisitions, organic growth and continued cost management were offset by the impact of market movement on ad valorem revenues, resulting in adjusted EBITDA of £15.0m (1H22: £15.8m).
“Profit before tax was up 45.5% to £4.8m (1H22: £3.3m) due to reduced deferred consideration payments recognised as remuneration expense under IFRS 3 of £3.9m (1H22: £4.6m) and lower acquisition-related costs of £0.5m (1H22: £2.6m), while adjusted profit before tax of £13.5m was down 4.3% (1H22: £14.1m) after adding back acquisition-related costs, deferred consideration recognised as an expense and amortisation of acquired intangible assets of £3.9m (1H22: £3.3m).
“We believe the benefits of operating a responsibly integrated business allows us to secure great client outcomes, control clients’ costs while delivering strong, sustainable shareholder returns over the long-term. The Board remains committed to growing the dividend, while maintaining an appropriate level of dividend cover. Accordingly, the Board is pleased to announce an increased interim dividend of 8.8p per share (1H22: 8.3p) up 6.0%, demonstrating our desire to deliver value to shareholders and confidence in the financial outlook for our business.
“The first half of the financial year has seen the group deliver a resilient trading performance against a complex macroeconomic and geopolitical backdrop. We plan to build on this position, through investing in our people and our systems to advance our key strategic initiatives: new business generation, investing in our in-house training programmes, growth through the integration of strategic acquisitions, developing new products and services, reviewing our processes and investing in technology to deliver further operational efficiencies.
“Our trading outlook for the year remains in line with management’s expectations and we believe the group is well-positioned to secure further growth to the benefit of all our stakeholders, driving improvements in earnings, operating margin and shareholder returns.”
Small firms lead calls for £3,000 apprenticeship incentive for under 25s and SMEs
The Federation of Small Businesses (FSB) is leading calls to introduce the £3,000 apprenticeship incentive in England for under 25s and small businesses.
This comes as figures from the Department for Education (DfE) show the significant impact of the Government’s increased apprenticeship incentive during the pandemic.
The boost, from £2,000 for young apprentices and £1,500 for older apprentices, to £3,000 for all age groups, led to a 21% surge in apprenticeship starts during the Covid-19 crisis.
But with the reduction back to £1,000 for under 19s and care leavers only, apprenticeship starts plummeted by 12%.
FSB Policy Chair Tina McKenzie said: “Empowering small employers to attract and retain top talent is a crucial step towards unlocking the full potential of small businesses, leading to improved productivity and sustainable growth.
“Apprenticeships offer a fantastic opportunity to empower young people, but success is contingent on the right support.
“The Government’s increase of the apprenticeship incentive was a welcome effort in supporting young talent during the pandemic, but that funding was temporary, and it has been disheartening to see that commitment fall away.
“The correlation between the drop in apprenticeship starts and the reduction in financial incentives is plain to see.
“As the Chancellor looks to use his March budget to boost labour market participation and growth, he could start in no better place than by using National Apprenticeship Week to announce that he will introduce £3,000 for under 25s and SMEs, which could help unlock long-term, economic benefits for generations to come.
“With FSB figures showing that a third of small businesses recognise skills shortages as a significant hindrance to their growth, the Government must prioritise upskilling the next generation who currently face a very daunting job market.
“As National Apprenticeship Week shines a spotlight on the UK’s young workforce, it is a prime opportunity for the Government to revisit its policies by creating a £3,000 apprenticeship incentive that we know made such a difference.”
Derbyshire staircase manufacturer steps into employee ownership
Derbyshire-based staircase manufacturer TwoTwenty has announced its sale to an employee ownership trust (EOT).
The transition of TwoTwenty, along with its holding company Elephant Holdings, to a business that is 100 per cent employee-owned is believed to be the first such deal in the UK timber engineering sector and secures the jobs of 40 staff.
TwoTwenty Ltd was incorporated in May 2005 and has a purpose-built factory and HQ in Foston, Derbyshire and another manufacturing centre in Kirby Lonsdale, Cumbria.
No funding or contributions have been required from any employee to fund the purchase of the business by the EOT, and under the terms of the deal, all staff are expected to benefit from significant tax-free bonuses in future years as well as deciding the company’s future strategy and growth plans.
All the existing senior leadership team will remain closely involved in the business as trustee directors, including TwoTwenty’s current Managing Director Scott Peden, commercial director Jason Stain, Jason Ward, and Lisa Richards of Dains accountants, which has advised on the sale of the business and creation of the EOT.
Ali Wright, founder of TwoTwenty, will also become chair of the EOT. He says: “We passionately believe that our colleagues are the thing that make TwoTwenty successful, so becoming an EOT secures the perfect future for this business.
“As a small business, in reality we only have a few options for the next phase of growth. We did not want to pursue a trade sale as that does not secure the long-term future for our staff. We did not want to pursue an external investor or management buy-out because of the huge pressure and obligation it brings on future performance.
“We could not simply share the ongoing profits of TwoTwenty with our employees as that would make us unsaleable, and I certainly couldn’t imagine exiting by just closing down such a strong and vibrant company.”
Jason Stain, commercial director at TwoTwenty, said: “In effect, we are a family business whose employees are not related, so to create an EOT resonates with every value we have ever aspired to. It creates a legacy for us, provides security for all the staff, and allows us to handsomely reward every employee for the hard work and effort they put in.”
Within the next couple of months, a new Employee Council will be established at TwoTwenty to guide and inform trustees’ decision making. This will involve employee representatives from different parts of the business, including those on the shop floor.
Steve Chapman, director at TwoTwenty, said: “The EOT allows Ali and me to leave the business in the future knowing that we have shown our appreciation for the fantastic team in TwoTwenty, some of whom have been with us from the start. They regularly go above and beyond to provide a great product and service for our customers, so this deal gives financial recognition for that commitment and hard work.
“The Employee Council will be the thing that really makes the magic happen. The engagement and ongoing buy-in of our staff will transform the ability of TwoTwenty to capitalise on the huge opportunities ahead.
“It also allows us to make a 10 per cent pay rise for everyone and to introduce a new scheme that facilitates a minimum of 22.5 per cent higher pension contributions for each employee. These commitments can genuinely change the lives of our employees and their families.”
Scott Peden, Managing Director at TwoTwenty, said: “I am extremely excited for the future, to move forward with the Employee Council, EOT trustees and the whole amazing team to build on the legacy founded by Ali and Steve, ensuring the TwoTwenty ethos, which has contributed to our current success, remains at the very heart of this company.”
Jason Ward, area sales manager at TwoTwenty, added: “Our colleagues will now have a true sense of ownership, creating job security and demonstrating how their daily activities make a direct impact on the business. I don’t know of any companies within our industry that have chosen this exit route, which has made us want to do it even more.”
Green light given for £8.6m education centre in Mansfield
Mansfield District Council has given the go-ahead for £4.3m to be allocated from its £12.3m Towns Fund pot to a major education, skills and business development project in the district.
The Future Tech Skills and Knowledge Exchange will create new teaching and innovation space at the Chesterfield Road Campus of West Nottinghamshire College which aims to address high-value employment opportunities in priority sectors.
This state-of-the-art education facility will deliver qualifications at level 3 and above, with a strong focus on innovation and STEM (science, technology, engineering and maths) subjects, offering local people the opportunity to meet future labour market needs and ultimately helping to create well-paid jobs in Mansfield and the wider district.
Executive Mayor Andy Abrahams said: “This partnership with the college will see one of the biggest expansions in educational and skills provision in the district for decades.
“It will aim to address a consistent labour shortage issue that local employers have in this area – finding workers with the right level and type of technological skills required in the 21st Century.
“Additionally, it will encourage new employers to start up or come to Mansfield, knowing that high level, industry-relevant skills are being developed right here.
“This forms a key part of the council Aspiration’s priorities for the district which are centred on our ambition for Mansfield to be a place where people can achieve and succeed.
“We want students to gain the kind of qualifications in Mansfield that enable them to gain good, well paid jobs here, and not feel that they have to leave the area in order to do well in life.
“I’d also stress that this project is seeking the active involvement of local businesses. The world of business is constantly changing and evolving.
“The new facility will facilitate collaboration between high-achieving students, aspirational local businesses and the expertise within our further and higher education partners.”
Funding from the council was given the green light on 9 January 2023, followed by the Mansfield Place Board’s endorsement at its meeting on the 24 January.
Andrew Cropley, principal and Chief Executive of West Nottinghamshire College and chair of the Place Board, said: “I am delighted we’ve reached this important milestone of securing the remaining funding needed to progress with this exciting scheme.
“The Future Tech Skills and Knowledge Exchange will be hugely important in creating a highly-skilled workforce in priority sectors by increasing the number of people qualified at level 3 and above in STEM-related subjects.
“It will provide a space where education and business can work together on projects that maximise the benefits of the emerging technologies that will be so critical to Mansfield’s economic prosperity.
“Crucially, it will enable students to gain the skills and knowledge to secure well-paid employment while helping businesses to grow their talent pool and adopt the new technology that will make them more competitive and profitable.
“We have engaged positively with the planning authority and have finalised the design for the building. I am really looking forward to the project taking shape and moving a step closer to this bold ambition becoming reality.”
The Future Tech Skills and Knowledge Exchange will offer opportunities for businesses to benefit from the technological expertise of both the college and Nottingham Trent University (NTU), and their networks of industrial partnerships.
It will also provide a space where students of the college and NTU will work collaboratively with businesses on projects to support greater use of evolving technology.
The centre will be a focal delivery point for T-Levels – new qualifications developed in collaboration with employers – being introduced by the college in September 2024, and will incorporate facilities to support construction, engineering and digital technologies.
It will also serve as a knowledge-exchange between the college and NTU and employers – giving businesses a greater understanding of future trends and the opportunities technology will bring, plus support with product and process innovation.
The centre will allow students to gain significant work experience with local businesses on technology-driven projects, giving them a valuable insight into how businesses work and support their progression to higher education or employment.
Meanwhile, businesses will gain access to support and a future workforce, helping them improve their competitiveness and efficiency through the use of new technology.
In addition to collaboration between students from the college and NTU on employer-based projects, the centre will promote the adoption of new technologies through a number of business engagement events.
Funding for the £8.86m facility is being met by the following contributions: £4.3m from Mansfield’s Towns Fund allocation, £3.827m from the Education and Skills Funding Agency as part of the second phase of its Further Education Capital Transformation Fund, and £734,000 from the college and NTU.
It is hoped on-site works will commence in July 2023, ready for a planned opening date of September 2024.
The Future Tech Skills and Knowledge Exchange centre is the final scheme to be given the green light of the six projects included in the council’s £12.3m Towns Fund allocation.
The others, which have already been approved by Mansfield Place Board, are:
– Warsop Health Hub. This £8.2m project (with £3m from the Towns Fund) will see a 15m x 8m swimming pool, a changing village, fitness suite, a multi-purpose hall and a new and improved multi-use games area created in the community and is now at the planning application stage.
– Berry Hill Park – a £3.27m plan (of which £2.94m is from the Towns Fund) to redevelop the park and make it more accessible, including a new visitor centre, café, new adventure play area and event performance space along with improvements to paths. Designers have now been appointed.
– Mansfield Woodhouse Station Gateway scheme. This is a £506,000 project to build 290 sqm of commercial floor space in three business units on a brownfield site adjacent to the railway station. Works are expected to be begin in spring 2023.
– Destination Mansfield, a £715,000 project (of which £500,000 is from the Towns Fund) to redefine and rebrand the district as a place of choice in which to live, work and visit. The new strategy will see improved event and cultural activities over three years including recreational trails and festivals to celebrate the history and heritage of the town. The extra £215,000 needed will come from Mansfield District Council. Work has commenced on procuring a Place strategy.
– Smart Mansfield, a £1m scheme to install a Long Range Wide Area Network, enabling Mansfield to become a pioneering community on the “Internet of Things” supporting efficiencies and new service delivery for residents and business across a range of partners. One of the early projects being developed is a Smart Parking solution, offering users better access to parking facilities, improved ticketing that is easy to use, making best use of modern technology. It will be key in increasing access to the town for work, shopping, leisure and tourism. Procurement has begun for this project.
McLaren Construction appointed to industry-leading £1bn public sector framework
McLaren Construction has been appointed to Pagabo’s National Framework for Medium Works, as part of a select collaboration of contractors working towards improving the future of the UK construction industry.
Valued at a total of £1billion, the new iteration of the framework, which is the second instalment of the original framework launched by Pagabo in 2019, will run from January 2023 until January 2027 – bringing together 94 contractors across the country.
The Medium Works Framework is a compliant and collaborative route to market for the public sector, which has seen over 160 projects procured through it to date.
Aligned with all of the gold standard principles of procurement, the framework ensures suppliers work to the highest standard of industry practice for all built environment projects.
As part of the partnership, McLaren Construction will deliver works ranging from £5million to £10million as part of Lot 4, in the regions of the Midlands, North East and Yorkshire, North West, East Anglia, London and the South East.
Using the latest measurement software created by the UK’s leading social value business – Loop, for every project procured through the Pagabo framework, McLaren Construction will be able to demonstrate and report back on the social value generated through its activity.
In order to be successful, McLaren needed to demonstrate the firm’s commitment to social value, providing evidence of value for money and delivering quality builds on time and to budget, alongside the digitalisation of its practices with the adoption of new technologies.
Gary Cramp, Managing Director of McLaren Construction Midlands and North, said: “While nationally, we have delivered many public sector works, our appointment to such an industry-leading framework is a prestigious win for McLaren, and a testament to our expertise and commitment to delivering high-quality works that maximise social value within the communities in which we operate.
“The next generation framework is at the forefront of the construction sector, in terms of collaborative procurement and as a provider of innovative industry technologies, we are looking forward to playing a pivotal role in supporting the significant regeneration of communities, not just in the Midlands, but across the rest of the UK too.”
Public sector schemes recently completed by the McLaren Group include the West Midlands Ambulance Service site – home of the UK’s first electric ambulance fleet in Brierley Hill, Castle Quay Waterfront CQ2 development in Banbury – a mixed-use leisure, entertainment and retail development, delivered on behalf of Cherwill District Council, and Crown House – an affordable housing scheme in Barking, delivered through the Be First London Development Framework.
Other public sector projects which are currently in the construction phase include Industria – a multi-storey industrial development in the London Borough of Barking and Dagenham, also being delivered through the Be First framework, and Queen Elizabeth Hospital in Greenwich – where McLaren will be delivering vital mechanical and engineering upgrades on behalf of the Lewisham and Greenwich NHS Trust.
Tom Retallick, framework manager at Pagabo, said: “We’re delighted to welcome McLaren Construction and a further 93 suppliers to the newest iteration of our Medium Works Framework. It will provide a compliant and collaborative route to market for public sector clients on all of their medium-sized construction projects and we’re glad that McLaren Construction could be a part of this.”
Floodgates open as business insolvencies hit 13-year high
2022 was the year the corporate insolvency dam burst, with numbers of insolvent businesses hitting a 13-year high.
This is according to the Midlands branch of insolvency and restructuring body R3 and follows statistics published by the Insolvency Service which show that corporate insolvencies in England and Wales increased by 57.3% last year [2022] to 22,109 compared to 2021’s figure of 14,059, and by 75% in comparison to 12,632 in 2020. The statistics also show an increase of 28.8% on 2019’s pre-pandemic figure of 17,164.
R3 Midlands chair Eddie Williams, a partner at PwC in the East Midlands, said: “2022 was the year the business insolvency floodgates opened. After two years of being supressed by Government support programmes, annual corporate insolvency numbers hit a 13-year peak. This was mainly due to Creditors’ Voluntary Liquidations reaching their highest level in 62 years as more and more directors turned to this process to close down their businesses.
“After nearly three years of trading through a pandemic, and in the face of the end of Government support, rising costs and a cost-of-living crisis, many directors simply ran out of road last year and chose to close their businesses before the choice was taken away from them.
“Alongside this, the end of the Government’s temporary legislation on winding-up orders has left creditors free to pursue unpaid debts, which is why Compulsory Liquidation numbers are at their highest in three years.
“With the entire supply chain under pressure from increased costs, the debtor flexibility we saw from creditors during, and immediately after, the pandemic has disappeared. Many are now taking action to recover monies owed to them in an attempt to balance their own books.
“Inflation is still high, supply chains remain squeezed, and people are still worried about the cost of living, so it’s likely we’ll see insolvencies continue to rise this year, unless the trading climate takes a drastic turn for the better.
“We urge directors to be aware of signs that their business is financially distressed and act as soon as they see them. Rising stock, problems paying staff or suppliers and cashflow issues are all indications a business is struggling. Seeking advice as soon as they arise gives directors more options, more time to make a decision and a better outcome than if they’d waited until the situation had become more severe.”
Rolls-Royce shares in £113m Government cash to develop ‘guilt-free’ flying
A project by Rolls-Royce to develop the building blocks of a liquid hydrogen-fuelled jet engine capable of making flights free from carbon emissions has been given a boost thanks to funding of £113m from the Government.
The money is being shared amongst several producers to develop cutting edge new technologies that could enable electric flying taxis and hydrogen-powered aircraft.
Grazia Vittadini, Chief Technology Officer at Rolls-Royce plc, said: “Rolls-Royce welcomes this announcement from the UK government. Aerospace Technology Institute funding enables us and our partners to deliver these exciting projects that are critical to the delivery of the zero carbon element of our net zero road map, and will help position the UK as a leader on the pathway to more sustainable flight.
Business Secretary Grant Shapps said: “Guilt-free flying is within our reach, and we are backing the world-leading UK firms whose skills and ingenuity are going to make that dream a reality.
“As the whole world moves to greener forms of aviation, there is a massive opportunity for the UK’s aerospace industry to secure clean, green jobs and growth for decades to come. Together with the companies that share our ambitions, we are determined to seize this moment.”
Transport Secretary Mark Harper said: “The Jet Zero Council is helping to define the future of flying – one that’s more optimistic about the sector’s environmental impact while putting UK innovation at the forefront of international aviation.“As well as developing the next generation of aircraft, it’s also crucial we make the sector greener on the ground, and the call for evidence we’re launching today will help us gather evidence on how airports can reach zero emissions by 2040.”
Final unit sold at Glenfield business start-up development
The final unit in a development of seven commercial buildings within Glenborough Court, Glenfield, Leicester has been sold by specialist land development and property consultancy Mather Jamie on behalf of Lagan Homes.
The units have been designed and marketed as suitable for new business start-ups in order to meet a gap in the market for small, high quality owner occupier investment opportunities. Occupation of the seven units has also created several new employment opportunities in Glenfield.
The site was originally occupied by Glenborough Engineering. When this business closed, having built an adjacent business park, Cawrey Homes purchased the land and self-funded part of the build. Construction was completed in 2021 and Cawrey Homes was subsequently acquired by Lagan Homes.
The seven two storey units vary in size from 1,238 sq ft to 1,560 sq ft and the businesses occupying the units include professional advisers, electricians, distributors and a wholesales trading business, whilst one of the units is being fitted out to let as an office.
Adrian Regan, land director, Lagan Homes, said: “The units have been expertly marketed over the past year with strong demand from buyers who want to purchase property as an investment within their pension portfolio. Working together as a team we have achieved a great outcome on this exciting new development which complements other business start-up units we have available on Pear Tree Office Park in Ratby.”
Alex Reid, head of commercial, Mather Jamie, said: “High quality units of this size and location are highly sought after and we have worked hard to create the right interest and ensure each sale has completed quickly so that our client can continue to re-invest and create other similar developments.”
Other advisers on the deal included Emma Ali from Shakepeare Martineau who provided legal advice to Lagan Homes.
Fibre infrastructure installation business enters administration
Nottingham-headquartered Light Source Design Limited has entered administration.
Founded 20 years ago, the company provides installation services for Fibre to the Premises infrastructures for a number of blue chip communication companies including Openreach, Virgin Media, UPP and KCOMM.
Turnover had grown to £48.5m in the latest finalised accounts period, with the company employing 220 people as of the appointment of Tom Straw and Chris Lewis of RSM UK Restructuring Advisory LLP as joint administrators on 31 January 2023.
The business was impacted by delays in payment from customers and challenges in converting work in progress. The position further deteriorated due to a large bad debt, adverse customer credit terms and a reduction in customer budget spend, leading to further cash flow pressures which meant that the company was unable to meet its liabilities as they fell due, resulting in the appointment of administrators.
Trading has been suspended whilst the administrators are seeking to sell the business and its assets in order to try and protect jobs and achieve an orderly handover of contracts to maximise realisations for the benefit of creditors.
Tom Straw, partner at RSM UK and joint administrator, said: “Cash flow issues meant that despite working with stakeholders to look to find an alternative solution, the company became the subject of a winding-up petition, culminating in the appointment of administrators. The administrators are exploring all options including a sale of the business in an accelerated timeframe.”
Digital workflow specialist expands the team at Intoware
A Nottingham-based workflow automation firm has expanded its team with the appointment of a new senior software engineer from Ukraine.
Intoware, which is headquartered at The University of Nottingham’s Innovation Lab, has appointed Vasyl Solovei to the role.
Vasyl currently lives in Birmingham and will be working remotely to further enhance Intoware’s flagship product – WorkfloPlus – developing new microservices, web dashboards and web features.
Vasyl said: “I’m very excited to be starting as senior software engineer with Intoware, working on WorkfloPlus to further enhance the software and in turn, help our clients get the most out of their digital workflow experience. I’m looking forward to a new challenge and to furthering my professional growth within the team.”
WorkfloPlus is a mobile technology platform created by Intoware to enable businesses to digitise processes and tasks across industrial operations, converting them from paper to be accessible via mobile, wearable technology and desktop devices.
Keith Tilley, CEO at Intoware, said: “We’re thrilled to welcome Vasyl on board. As more and more companies around the globe take advantage of our technology, our team continues to grow.
“We look forward to continuing our success with WorkfloPlus and Vasyl’s role will help us to stay ahead of the curve and keep flourishing in our target markets.”
Based in Nottingham, Intoware, which operates a hybrid-working model, currently employs 20 people across the UK.
