Administrators appointed to construction company

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Administrators appointed to construction company
Tim Bateson and Ryan Grant from Interpath Advisory have been appointed Joint Administrators of Enrok Construction Limited. The company is a family-run business specialising in the design, build and project management of residential and commercial developments. Its has offices in the East and West Midlands. Over recent months, the company has faced several challenges including the insolvency of a key supplier along with delays to key contracts that has led to increasing cashflow pressure. In view of this, the directors concluded that insolvency was unavoidable and as such, took the decision to seek the appointment of administrators. With the company no longer able to trade, the joint administrators made seven of the eight company employees redundant immediately following their appointment. Tim Bateson, director at Interpath Advisory and joint administrator, said: “The building and construction sector continues to face a number of headwinds, including persistent cost inflation and material shortages which have had the effect of eroding the thin margins that are so often seen in competitive fixed price contracts.” He continued: “Our intention is to assist the employees that have unfortunately been made redundant whilst we seek to realise the assets of the company, including exploring any interest in the company’s live contracts.”

Manufacturers cut back investment as output and orders weaken

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Manufacturers cut back investment as output and orders weaken
Sentiment within the manufacturing sector stagnated in the three months to January, as output volumes fell unexpectedly, according to the CBI’s latest quarterly Industrial Trends Survey. Output is expected to rise slightly in the three months ahead, but the share of firms citing weak orders or sales as a constraint on production rose to its highest in three years, with total new orders falling at their fastest pace since July 2020. Growth in average costs accelerated in the quarter to January, putting pressure on margins. The pace of growth in domestic selling price inflation was unchanged, but export selling prices rose over the quarter. Investment in tangible assets (buildings, machinery, equipment) is expected to fall sharply in the year ahead, with investment in innovation also expected to weaken. However, manufacturers expect to increase spending on training & retraining amid lingering concerns over shortages of labour. The survey, based on the responses of 246 manufacturing firms, found:
  • Output volumes fell in the quarter to January, after being unchanged in December (balance of -10% from 0% in the three months to December). Firms expect volumes to rise marginally in the next three months (+7%).
  • Total new orders fell at their fastest pace since July 2020 (balance of -13% from +2% in October) and manufacturers expect orders to remain unchanged over the next three months (-1%).
  • Growth in average costs per unit of output accelerated in the quarter to January, with the pace of costs growth standing well above average (balance of +43%, from +29% in October, long run average of +18%). Cost growth is expected to remain elevated in the quarter to April (+43%).
  • Domestic selling prices were reported as broadly stable over the three months to January (balance of +2%, from +5% in October), the weakest balance in over three years and matching the long-term average. Export price inflation accelerated from October (+14%, from +10%) and stands above the long-term average (-4%). Domestic price growth is expected to pick up in the next three months (+9%), while export price growth is expected to ease (+6%).
  • Investment intentions for the year ahead were mixed. Manufacturers expect to raise spending on training & retraining (+6% from +5% in October). Investment in product & process innovation is expected to fall (-5%, from +6%, the weakest since the quarter to January 2021). Investment in tangibles is expected to fall rapidly, including buildings (-29% from -31%) and plant & machinery (-15% from -11%, also the weakest since January 2021).
  • The main constraint on investment was uncertainty about demand (cited by 58% of manufacturers, the highest since January 2021). Other factors include: inadequate net return (40%, the highest since July 2020); the cost of finance (22%, the highest since January 1991 – excluding the pandemic period) and labour shortages (20%, down from a record 37% two years earlier – excluding the pandemic period – but still above the long-term average of 11%).
Anna Leach, CBI deputy chief economist, said: “Conditions in the manufacturing sector deteriorated unexpectedly at the start of the year, with output falling and order books at their weakest since the depths of the COVID-19 pandemic. Uncertainty about demand looks set to weigh on investment in the year ahead. “Manufacturers are also facing potential disruption to their global supply chains in the near-term because of the diversion of commercial shipping away from the Red Sea – concerns that access to materials and components could limit output in the quarter ahead remain elevated relative to the long-run average. This is likely to push up the price of some imported inputs at a time when firms are still absorbing the costs of higher energy bills and a still tight labour market. “The Spring budget represents an opportunity to look beyond these short-term challenges and strengthen the foundations for sustainable economic growth. Full capital expensing was an exciting first step in this direction, but the government must go further to instill confidence in manufacturers to invest through a programme of measures around innovation, skills and decarbonisation, which the CBI will outline in its upcoming Budget submission.”

The Access Group makes appointments to lead on customer experience, people and sustainability

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The Access Group makes appointments to lead on customer experience, people and sustainability
Loughborough’s The Access Group, providers of business management software for small and mid-sized organisations, has made three new senior hires. Caroline Fanning has been announced as chief employee success officer, replacing Claire Scott who has retired from the business after more than six years leading the people function. Before joining The Access Group, Caroline was chief people officer at Avanade, where she delivered a successful growth-orientated people strategy to support the company’s expansion, elevating employee experiences to attract, develop, reward and retain skilled talent. Caroline joined Avanade in 2016 as Europe HR lead. In 2018, she assumed responsibility for global business HR, working with teams on initiatives such as using predictive analytics to manage attrition, organisational effectiveness and developing a consistent employee experience. Mark Billingham has been appointed as chief customer experience officer. Mark previously held the position of managing director for Capita Experience UK where he looked after Capita UK’s portfolio of customers focused on CX transformation and providing positive outcomes for major blue-chip companies across multiple industries. A six-month stint as interim CEO saw him successfully support the restructuring of the business and drive growth. Mark’s previous roles include executive leadership roles at retailer Very, British Gas and Vodafone. While he was CX leader at Very, it was recognised as industry leading, culminating in being recognised as “Best in Europe” at the European Customer Service Awards in 2021. Leading on delivering The Access Group’s sustainability agenda, Carla Matthews joins in a newly created role as director of sustainability. Carla has more than 15 years of experience in leading change and embedding sustainability into core operations across technology, professional services and manufacturing sectors.

Working across various countries, she has helped firms identify opportunities and mitigate risks, improve cost-cutting programmes and influence buy-ins across multidisciplinary global teams.

She most recently worked at RWS Holdings plc where she led a three-year framework with four ESG pillars. The strategy included setting up a system to capture carbon emissions data and a carbon reduction plan in line with science-based targets, and client and investor expectations.

Welcoming all three new leaders to the business, The Access Group CEO Chris Bayne said: “These new hires each bring with them an impressive array of experience and track record of success that will be pivotal in supporting our teams as they continue to develop as we grow.

“We are committed to employee wellbeing, exceptional customer experience and sustainable practices across The Access Group. I am confident that Caroline, Mark and Carla will each play a vital role in delivering this as we start the new year.”

Over £475,000 set to be invested in Burbage and local area as part of new homes development

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Over £475,000 set to be invested in Burbage and local area as part of new homes development
Davidsons Homes is set to invest over £475,000 to enhance the community facilities in Burbage and the surrounding area, as part of its new Sunloch Meadows development off Lutterworth Road. As well as a whole host of improvements planned for healthcare and education provisions, the Leicestershire-based housebuilder has also pledged to retain sections of the ‘ridge and furrow’ earthworks – archaeological remnants of medieval ploughing – and to provide most of the 135 homes with charging points for electric vehicles. Not only that, but Sunloch Meadows will also include a play area, footpaths and areas of green open space for the whole community to enjoy. Simon Tyler, Sales Director for Davidsons South, said: “As part of our planning process, we were very keen to create homes in Burbage that will not only fit into their local surroundings, but will enhance them. “With Georgian and Victorian-style homes being built, lovely areas of green open space for families to stroll through, a play area for children to enjoy and plenty of footpaths to walk the dog along, this development is going to offer a wonderful mixture of countryside and village living. “Protecting the ‘ridge and furrow’ earthworks also constitutes a key part of our plans – we very much want to preserve links to the past and Burbage’s rich heritage. “Alongside that, we are investing over £475,000 in the local area as part of our S106 obligations, which will improve facilities not just for our homebuyers, but the whole community.” Over £84,000 is set to be paid to Hinckley and Bosworth Borough Council for an offsite area of open space, offering people even more places to enjoy walking and spending time in the fresh air, with another £74,000 to be paid to maintain that space. Local healthcare facilities will be boosted by over £83,500 and over £93,000 will be invested into education. Nearly £5,000 will be given to support the local library and £118,000 will be spent on travel packs, lessening the burden on nearby roads and encouraging the use of public transport.

Loughborough expertise to help tackle problems in UK fruit production industry

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Loughborough expertise to help tackle problems in UK fruit production industry

Developments at Loughborough University are helping tackle problems at the heart of the UK’s fruit production industry.

Labour shortages, environmental impact and efficiency of output are all areas that will look to be improved as a result of work being undertaken by academics within the University’s School of Aeronautical and Automotive Engineering. Experts at the University have now implemented a specialised navigation system which will be used to assist in two projects focused on improving the country’s horticultural landscape. Both projects, which have a total funding pot of £6million behind them, are focused on using cutting edge technology to improve the efficiency of fruit production in the UK – whether that be through fruit-picking robots or the creation of digital orchards. The £4.5millon Precision Orchard Management for the Environment (POME) project is a four-year venture led by Hutchinsons alongside external stakeholders – including project partner NIAB. Funded by commercial partners, DEFRA and Innovate UK, the work will digitally examine and scan fruit trees in fine detail to generate precision dosing maps for blossom, fruit thinning, fertiliser application, growth regulators, pest controls and fungicides – whilst creating a more accurate yield forecast for growers. The Area-H project, launched in collaboration with Antobot and other external stakeholders, sees the University developed navigation system being implemented to assist with the creation and support of agricultural autonomous robots in the field. The three-year undertaking received a total £1.5million funding from DEFRA and Innovate UK. Speaking on the POME project, Senior Lecturer in Autonomous Vehicles, Matt Coombes said: “If UK horticulture is to survive the effects of climate change and labour shortages brought about by Brexit, we need to innovate quickly. This project aims to develop precision agricultural techniques to increase efficiency and decrease pesticide use. “First, we will combine data from drones and ground robots to give a tree level accurate digital twin of an orchard. This data can then be used to assist a high precision autonomous spraying platform exactly, putting the spray only where it is needed based on the digital twin.” Professor of Robotics and Autonomous Systems, Cunjia Liu said: “The involvement in these two innovative horticulture projects funded by the UKRI Farming Innovation Programme presents us with a unique opportunity to transfer our years of fundamental research in robotics and AI to address the pressing challenges of the UK horticulture industry. “Our aim is to further develop our understanding and elevate the technology readiness level through close collaboration with key stakeholders in both projects. This synergy is not just about immediate solutions; it’s about generating a lasting research impact that paves the way for a more sustainable and resilient future in agriculture.”

Sales dip at Eurocell against challenging market backdrop

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Sales dip at Eurocell against challenging market backdrop
Sales have dipped at Eurocell plc, the manufacturer, recycler and distributor of window, door and roofline PVC products. According to a trading update for the year ended 31 December 2023, at £365 million sales were down 4% on an “exceptionally strong 2022 comparative period.” Eurocell noted: “Trends reported at our half year results in September continued for the remainder of 2023, with some further modest weakening in our key markets. Repair, maintenance and improvement (RMI) activity continues to be impacted by low consumer confidence and higher costs of living. “The ongoing steep decline in new build activity reflects successive interest rate rises and falling house prices, with house builders reducing build rates in anticipation of falling sales. “Against the challenging market backdrop, we have delivered some resilience in the Group’s sales performance for the year. We continue to focus on closely managing cost and cash flow and, as expected, have seen some easing of input cost pricing in H2.” Despite these challenges, the business anticipates underlying profit before tax to be in line with market expectations.

NAHL in “robust position” following “year of solid progress”

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NAHL in “robust position” following “year of solid progress”

NAHL, the marketing and services business focused on the UK consumer legal market, is in a “robust position with cause to be optimistic for the future,” following a “strong financial performance” in 2023.

In an update on trading for the financial year ended 31 December 2023, the Kettering-based business revealed that revenues for the period are expected to be £42.2m, 2% ahead of the prior year. 

Meanwhile, profit before tax is anticipated to be in line with market expectations at £0.6m, holding steady with the same figure in 2022.

James Saralis, CEO of NAHL, said: “2023 represented another year of solid progress and I am delighted to be reporting a strong financial performance for NAHL. 

“Whilst the personal injury market remained subdued, we have successfully completed our transformation into an integrated law firm with improved cash generation and NAL increased cash from settlements by 73% to £6.0m. Critical Care has delivered a strong financial and operational performance and there is an exciting opportunity to deliver further market share growth. 

“The Group continued to generate high levels of cash and this led to a 27% reduction in net debt to £9.7m, which was well ahead of market expectations. The steps we have taken in recent years to enhance the Group have borne fruit and NAHL ended its financial year in a robust position with cause to be optimistic for the future.”

Revenue slips at Van Elle

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Revenue slips at Van Elle

Revenue has slipped at Van Elle, the Nottinghamshire ground engineering contractor, according to interim results for the six months ended 31 October 2023.

At £68.2m, revenue was 16% below the same period of the prior year (£80.8m), with the comparative period benefitting from stronger housing, construction and infrastructure markets. Meanwhile pre-tax profits dipped to £2.5m, from £3.5m.

Mark Cutler, Chief Executive, said: “These results represent a resilient performance in the face of expected challenging market conditions throughout FY2024, reflecting the benefits of the Group’s diversified end-market exposure.

“Despite the anticipated lower revenues, operating margin has been maintained at FY2023 levels, our balance sheet is stronger, and our future prospects are more compelling. We are very pleased with the acquisition of Rock & Alluvium shortly after the Period end.

“The Group is developing a strong market position in the energy and water sectors and is well placed to benefit from a recovery in activity levels in housing, construction, rail and highways in FY2025.”

Revenue drops at Forterra

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Revenue drops at Forterra

Revenue has dropped at Forterra, the manufacturer of clay and concrete building products, according to a trading update for the year ended 31 December 2023.

With weak demand, full year revenue totalled £345m, down from £455m in 2022.

Despite challenging market conditions, however, the business does expect to report full year adjusted EBITDA slightly ahead of expectations.

During the year, faced with increasing inventory levels, Forterra made reductions to production, with the mothballing of factories, shift reductions and production breaks. The business has also looked to deliver savings through restructuring commercial and back-office functions. Such management actions during the year are set to deliver annualised fixed costs savings of over £20m. 

Looking ahead Forterra said: “The outlook for our industry remains subject to considerable uncertainty and, with a general election expected in 2024, demand is anticipated to remain subdued in the near term. 

“However, with the long term under supply of housing in the UK continuing to worsen, and UK brick despatches now running at levels last seen in 2009, the Board remains confident in the Group’s ability to benefit as our key markets recover.

“Recent reductions in mortgage interest rates will improve the affordability of new homes, thus increasing demand for our products.“

New tenant confirmed for building previously occupied by Wilko on Hucknall High Street

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New tenant confirmed for building previously occupied by Wilko on Hucknall High Street
National home and leisure retailer, The Range, has been confirmed as the new tenant in the building previously occupied by Wilko on Hucknall High Street. Ashfield District Council says the building will be renovated over the coming weeks ahead of a grand opening on 15 March 2024. The Range currently have over 200 stores across the UK and stock more than 140,000 products from homewares and furniture to DIY and art supplies. The opening of the new store marks another milestone in Ashfield District Council’s regeneration of Hucknall town centre. Over the next few months the Council will be working with local businesses to develop plans to improve Central Walk – the covered walkway and paved area connecting the High Street to Piggins Croft car park with works due to start later in 2024. Leader of Ashfield District Council, Cllr Jason Zadrozny said: “I am delighted to be able to announce that The Range is set to open in Hucknall in March. As a Council we look forward to a positive relationship with another major retailer which can only be good news for Hucknall town centre and our local residents.” Cllr Lee Waters, who represents Hucknall Central, said: “We are looking forward to welcoming The Range to Hucknall. When Wilko went into administration, Hucknall councillors tasked the council’s leadership with finding a new anchor partner. “Councillor John Wilmott has personally led on this and we are grateful for his and others’ efforts. We look forward to the start of a great relationship with The Range that will provide jobs and prosperity in our town.” The opening of the new store is expected to create up to 90 jobs with applications now open for local residents.
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