Revenue grows at Mattioli Woods
Revenue has risen at Mattioli Woods, the specialist wealth and asset management business, in the first six months of its financial year, despite a challenging macroeconomic backdrop.
In a trading update in advance of its interim results for the six months ended 30 November 2023, the Leicester business said it “has performed well in complex markets,” with revenue up 8% to £59.1m, growing from £54.9m in the same period last year.
The company also saw 374 new client wins with an asset value of £82.2m. Total client assets of the group remained stable at £15.2bn, though down slightly on last year’s £15.3bn, with reduction in assets driven by £155m downward market movements.
Ian Mattioli MBE, Chief Executive, says: “I am pleased to report revenue growth in the first six months of this financial year, despite the challenging macroeconomic backdrop that continues to affect client sentiment and market value of clients’ assets.
“Revenues were 8% higher and the group delivered organic revenue growth of 4%, reflecting the resilient nature of our revenue model combining fee-based revenues for specialist advice and administration with ad-valorem investment management revenues linked to the value of clients’ assets, despite a slight fall in the value of client assets under advice and administration during the period.
“We enjoyed particularly strong growth within our core pension consultancy and employee benefits business segments, with the proposed changes to pension and tax rules announced in the Chancellor’s recent Autumn Statement driving strong demand for advice.
“We continue to focus on the integration of recently acquired businesses, with realisation of revenue synergies across the group remaining a priority. We also completed a detailed review of our current investment offering for clients during the period which has identified opportunities for enhancing group revenues whilst reducing clients’ costs.
“Our focus will now shift to implementing these strategic changes for the benefit of both our clients and shareholders.”
Leicester online electrical retailer issues profit warning
Marks Electrical Group, the Leicester-based online electrical retailer, has hailed strong revenue growth, but warned of gross product margin not increasing to levels expected, impacting full year profit guidance.
According to a trading update for the nine months ended 31 December 2023, the firm saw revenue growth of 22% to £88.9m, up from £72.9m in the same period last year, and increased market share in the Major Domestic Appliances and Consumer Electronics markets.
In a challenging trading environment where consumers remain highly price-conscious, however, Marks said: “gross product margin did not increase to the levels we expected, and despite proactive action on other controllable costs, the impact of this in the peak trading period has had a material impact on our full year profit guidance.”
As a result, the business now expects full year revenue to be in the range of £115-118m with EBITDA in the range of £5-6m. Marks added: “Going forward, we expect to see continued revenue growth in-line with our expectations, but remain cautious on the speed of recovery in consumer buying patterns, which we expect to temporarily impact the recovery of our gross product margin.”
Mark Smithson, Chief Executive Officer, said: “I continue to remain proud of the entire team at Marks Electrical for delivering a record peak trading period whilst gaining market share and maintaining our industry leading Trustpilot score of 4.8. This further demonstrates the strength and attractiveness of our market-leading customer offering and as brand awareness improves, we continue to see a strong repeat customer rate.
“Whilst I am personally frustrated about our expected margin progression in the second half, I remain confident about our long-term growth prospects and continue to be impressed by our ability to deliver market share gains profitably, against a fiercely competitive backdrop, whilst maintaining the highest levels of customer service standards in the industry.
“As we work tirelessly as a team to enhance our gross product margin in the remaining months of FY24 and into FY25, I also know from 37 years of trading that margin fluctuations are inevitable, they present us with an opportunity to learn, and will ultimately enable the Group to deliver long-term value creation and position us as the UK’s leading premium electrical retailer.”
Property groups reveal merger plans to create business worth £214m
Grantham-based Belvoir Group, the property, mortgage and franchise group, has unveiled merger plans with The Property Franchise Group (TPFG), with the aim of creating a leading property franchise business worth approximately £214.4m.
The combined group will benefit from increased scale with more than 930 property franchise locations, managing approximately 152,000 tenanted properties across the UK and will be expected to sell more than 28,000 properties per annum.
For the financial year ended 31 December 2022, TPFG and Belvoir together generated in excess of £60 million in combined revenue, with management service fees of approximately £27 million and adjusted EBITDA of approximately £22.5 million.
The combined group board will comprise, among others, Gareth Samples (TPFG Chief Executive Officer), David Raggett (TPFG Chief Financial Officer) and Michelle Brook (Belvoir executive director), with Paul Latham (TPFG chair) as the combined group’s chair.
Upon completion of the merger, Belvoir shareholders will hold approximately 48.25% and TPFG shareholders will hold approximately 51.75%.
Paul Latham, non-executive chairman of TPFG, said: “I am delighted to confirm that we have reached an agreement with the Belvoir board and major Belvoir shareholders on the merger with Belvoir. We believe that the merger represents a compelling opportunity for all shareholders.
“Belvoir brings further breadth through its nationwide network and a financial services business which will be complementary to our current offering. The merger will enable us to continue to grow in the sector and, ultimately, deliver greater value to shareholders of the combined group.”
Jon Di-Stefano, non-executive chairman of Belvoir, said: “The merger of Belvoir and TPFG combines two businesses with much in common, each supporting a network of entrepreneurial franchises, and will create one of the UK’s largest multi-brand lettings and estate agency groups combined with a growing financial services business.
“With their complementary geographic footprints providing both scale and diversification across a variety of high street and hybrid brands combined with high levels of recurring revenue, we feel sure that the combined group will provide a robust platform from which to grow.”
2024 Business Predictions: Mark Jennison, Director of Marketing and Business Development at Cosy Garden Rooms
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 Mark Jennison, Director of Marketing and Business Development at Cosy Garden Rooms.
At the end of 2022, moving towards 2023, we were predicting a business target to survive what we thought was going to be a volatile year. There was little talk of growth, what with the economic climate due to the continuing conflict that had already driven fuel prices up and consequently increased interest rates. Those predictions were correct and 2023 saw many companies fall by the wayside, a consequence of the consumer feeling the pinch and tightening their belts.
And here we are again, making predictions for 2024 and, on the whole, it is much the same but with increased optimism. In 2023, at Cosy Garden Rooms, we used our business agility to keep running costs low to combat the higher raw material prices and still offer great value to our customers. There are signs that as we enter the new year, those material prices will start to return to where we would expect them to be. There are also more companies offering a range of new products on the market and this competition is good for those in construction and for the consumer who is looking for innovative and sustainable designs for their garden rooms.
It was also notable that towards the end 2023, more consumers were asking about finance in order to enable them to either purchase their garden room or maybe get something a little better than they would otherwise be able to afford. This is a great sign that the market is feeling more confident in the future and looking to invest in their property. This trend of investing in what you have has been buoyed by the falling house prices and a reluctance to move. This includes people asking about and building small garden room annexes for a relative to live in or a garden office, to free up that much needed spare room in the house. This is where a good quality garden room that can be used all year round really matters.
We also predict that 2024 will see an increase in alternative markets such as schools and universities that find the demands on their existing spaces easily solved by the addition of outbuilding built on site. Adding a bespoke building is quick, affordable and designed to meet the needs of the establishment, including accessibility for all.
In general, the feeling for 2024 is that business will grow and we will see that companies such as Cosy Garden Rooms, that offer innovative quality products and services, will not just survive, but thrive. 2023 was a wake up call for many, and the end for others. 2024 will see those that have adapted start to benefit from their hard work.
Major updates at Derby Museums – supported by Glowfrog
Derby Museums is making significant updates to one of its cherished sites, Pickford’s House. A Grade I listed building erected in 1770 by prominent architect Joseph Pickford, the museum has been a living testament to Georgian life and fashion since 1988.
With thanks to funding awarded by the Department for Culture, Media & Sport (DCMS) and The Wolfson Foundation through the DCMS/Wolfson Museums and Galleries Improvement Fund, Pickford’s House will undergo a comprehensive facelift from spring 2024, with each room receiving new interpretation, displays, and more immersive layout exhibits.
These enhancements aim to elevate the visitor experience and offer a fresh perspective on the rich history encapsulated within the walls of this architectural gem.
Among the notable updates to the project, Glowfrog Video Production (www.glowfrogvideo.com) have offered their services pro-bono to create a captivating welcome video for the museum.
This video will provide an engaging overview of the house’s history and cater to disabled visitors who may face accessibility challenges, ensuring an inclusive experience for all.
Matt Middleton, Director at Glowfrog Video Production, expressed his enthusiasm for the project, stating: “Offering our services pro-bono for Pickford’s House aligns with our core values of supporting local community, and I’m particularly excited about this project given that Pickford’s is a site I’ve visited countless times over the last thirty years or so.
“It will be fantastic to provide a welcome video for all visitors to the museum, offering a deeper insight into its history and local significance.”
Jennifer Cuadrado, Director of Development at Derby Museums, emphasised the importance of these updates, saying: “These updates represent a significant stride in our mission to make history come alive for our diverse audience.
“These enhancements, including the welcome video offered by Glowfrog, not only preserve the architectural and cultural legacy of Pickford’s House but also align with our broader mission of making history accessible to diverse audiences.”
Laura Phillips, Head of Interpretation and Display at Derby Museums, added: “The meticulous curation of each room at Pickford’s House reflects our commitment to preserving and presenting history in an engaging manner.
“Glowfrog’s offer to create an inclusive experience through the welcome video resonates with our vision of making the museum accessible to all.”
As a gesture of appreciation and recognition, Derby Museums encourages local businesses to explore Glowfrog Video Production’s website at www.glowfrogvideo.com for more information about their award-winning video production services.
About Glowfrog Video Production:
Glowfrog Video Production is a leading video production company based in Derby, known for its innovative and high-quality services. With a commitment to community involvement, Glowfrog takes pride in supporting local initiatives and contributing to the cultural enrichment of the region. If your business is looking for award-winning videography services, visit www.glowfrogvideo.com.
About Derby Museums:
Founded in 2012, Derby Museums is an independent charitable trust that manages three museums in the city, the Museum and Art Gallery, Pickford’s House and the new Museum of Making at Derby Silk Mill and holds and curates all the art and collections within them, including the world’s largest collection of paintings by Joseph Wright of Derby.
Derby Museums inspires all generations to be makers, artists and thinkers. It aims to bring as many of the objects and treasures in the collections into the public domain as possible and to present them in ways that delight and inspire via education and learning programmes, events and exhibitions, in order to share knowledge and inspire creativity and making amongst the people of Derby.
As a charitable trust, Derby Museums relies on funding and grants from organisations, as well as donations from businesses and the general public, all of which is gratefully received in order to ensure that admission to the museums remains free for all. It is also a National Portfolio Organisation supported by Arts Council England.
Last year, Derby Museums’ Museum of Making was selected as one of five finalists for Art Fund Museum of the Year Award 2022, the world’s largest museum prize. www.artfund.org/museum-of-the-year
derbymuseums.org
About the DCMS/Wolfson Museums and Galleries Improvement Fund:
The DCMS/Wolfson Museums and Galleries Improvement Fund provides capital funding for museums and galleries across England to improve displays, protect collections and make exhibitions more accessible to visitors. In 2022-24, DCMS and the Wolfson Foundation each contribute £2 million to the Fund, which has benefitted more than 400 projects in its 20-year history.
About the Wolfson Foundation:
The Wolfson Foundation is an independent charity with a focus on research and education. Its aim is to support civil society by investing in excellent projects in science, health, heritage, humanities and the arts.
Since it was established in 1955, some £1 billion (£2 billion in real terms) has been awarded to more than 12,000 projects throughout the UK, all on the basis of expert review.
Jennifer Cuadrado, Director of Development at Derby Museums, emphasised the importance of these updates, saying: “These updates represent a significant stride in our mission to make history come alive for our diverse audience.
“These enhancements, including the welcome video offered by Glowfrog, not only preserve the architectural and cultural legacy of Pickford’s House but also align with our broader mission of making history accessible to diverse audiences.”
Laura Phillips, Head of Interpretation and Display at Derby Museums, added: “The meticulous curation of each room at Pickford’s House reflects our commitment to preserving and presenting history in an engaging manner.
“Glowfrog’s offer to create an inclusive experience through the welcome video resonates with our vision of making the museum accessible to all.”
As a gesture of appreciation and recognition, Derby Museums encourages local businesses to explore Glowfrog Video Production’s website at www.glowfrogvideo.com for more information about their award-winning video production services.
About Glowfrog Video Production:
Glowfrog Video Production is a leading video production company based in Derby, known for its innovative and high-quality services. With a commitment to community involvement, Glowfrog takes pride in supporting local initiatives and contributing to the cultural enrichment of the region. If your business is looking for award-winning videography services, visit www.glowfrogvideo.com.
About Derby Museums:
Founded in 2012, Derby Museums is an independent charitable trust that manages three museums in the city, the Museum and Art Gallery, Pickford’s House and the new Museum of Making at Derby Silk Mill and holds and curates all the art and collections within them, including the world’s largest collection of paintings by Joseph Wright of Derby.
Derby Museums inspires all generations to be makers, artists and thinkers. It aims to bring as many of the objects and treasures in the collections into the public domain as possible and to present them in ways that delight and inspire via education and learning programmes, events and exhibitions, in order to share knowledge and inspire creativity and making amongst the people of Derby.
As a charitable trust, Derby Museums relies on funding and grants from organisations, as well as donations from businesses and the general public, all of which is gratefully received in order to ensure that admission to the museums remains free for all. It is also a National Portfolio Organisation supported by Arts Council England.
Last year, Derby Museums’ Museum of Making was selected as one of five finalists for Art Fund Museum of the Year Award 2022, the world’s largest museum prize. www.artfund.org/museum-of-the-year
derbymuseums.org
About the DCMS/Wolfson Museums and Galleries Improvement Fund:
The DCMS/Wolfson Museums and Galleries Improvement Fund provides capital funding for museums and galleries across England to improve displays, protect collections and make exhibitions more accessible to visitors. In 2022-24, DCMS and the Wolfson Foundation each contribute £2 million to the Fund, which has benefitted more than 400 projects in its 20-year history.
About the Wolfson Foundation:
The Wolfson Foundation is an independent charity with a focus on research and education. Its aim is to support civil society by investing in excellent projects in science, health, heritage, humanities and the arts.
Since it was established in 1955, some £1 billion (£2 billion in real terms) has been awarded to more than 12,000 projects throughout the UK, all on the basis of expert review.
Construction consultancy relocates in Northampton
A construction consultancy has relocated to a newly refurbished two-storey office space in Northampton.
Bhangals Construction Consultants has spent months planning and designing the new office, in Grange Park, which offers open plan working, as well as dedicated meeting rooms, a kitchen and staff breakout areas.
All the desks have been purpose built to fit the space, and the renovations have been completed to enable the best possible working environment for staff.
A yet to be opened upstairs space will soon also provide a versatile events area for both Bhangals staff and the wider business community. The entire space totals 7,500 square feet.
The move, which has rehoused the company’s 30-strong workforce, will allow for further growth as Managing Director Parm Bhangal adds to the team. It comes just five years after the company doubled the size of its previous office space by taking over the office next door.
Parm said: “I am very proud and excited to finally share our new office space with everyone. This has been in the works for over a year, and after months of meticulous planning and renovations, it’s great to see the team settled into their new home.
“I had a very specific vision in mind – an office space that not only fosters collaborative working but also stands out in a way people haven’t seen before.
“It’s been a massive project, and I won’t deny there were moments of stress, however, the outcome is truly worth it, and I take pride in the modern and inviting atmosphere we’ve created. We really thought about our team and our clients throughout the entire process.
“Their needs and expectations were at the forefront of our decisions so, it’s really satisfying to see them settle into their new office space and bring their enthusiasm into the workspace. We thank our team for their continued support and hard work and look forward to continuing our growth.
“I can’t wait to see what our incredible team achieves in this space. Welcoming our clients here adds another dimension to our ability to serve and collaborate effectively. The new office is not just a physical space; it’s a vibrant home for our collective success and growth.”
Freeths’ strengthens East Midlands planning practice with senior hire
Law firm Freeths has continued to expand its planning and environment group with the appointment of Chris May as partner in the East Midlands. Chris joins from Howes Percival.
With over 15 years’ experience, Chris advises both private and public sector clients on complex planning matters.
His experience covers all aspects of town and country planning law with a particular focus on the project management of large scale and contentious development proposals including student accommodation and residential development at regeneration brownfield sites both at application and appeal stage.
Chris also regularly advises on planning obligations, compulsory purchase, community infrastructure liability, enforcement, judicial review and environmental impact assessment.
At Freeths, Chris’ will take the lead in growing the legal practice in the East Midlands whilst working closely with partner and national head of planning and environment Paul Brailsford to strengthen the wider planning practice across the UK.
Paul Brailsford said: “We are excited to welcome Chris to the planning and environment group. He is passionate about planning and brings a significant breadth of experience which will strengthen our practice in the East Midlands and contribute towards our growth ambitions nationally.”
Chris Freeston, partner and managing partner of Freeths Nottingham, continued: “Chris will be a strong addition to Freeths at a time of continued record growth. We look forward to expanding our sector capabilities both regionally and nationally.”
Chris May added: “I am delighted to be joining Freeths and its leading planning team. I have been incredibly impressed with the culture and aspirations of the firm and look forward to contributing to the development and growth of the team to ensure that it continues to offer a great service to clients in the increasingly complicated and difficult planning and development world.”
New figures show ongoing impact of pandemic on NET as financial restructuring starts path to recovery
New figures have revealed the ongoing impact of the pandemic on Nottingham Express Transit (NET), with passenger volumes still 20% less than pre-pandemic levels.
However, following the recent successful financial restructuring project in partnership with the Department for Transport and Nottingham City Council, Tramlink Nottingham Limited, which operates the NET concession, believes the network is in a much more stable and robust position for the coming financial year.
The figures were published in the annual accounts for the year to 31 March 2023 which showed that the company had reported a loss as a result of the impacted passenger numbers and high energy costs.
The year to March 2023 saw passenger journeys recover to 14.4m, compared to 9.1m in the prior year. The company also made a gross profit of £7.65m compared to £4.90m in the previous year, before taking into account COVID relief grants from central government and exceptional fixed asset impairment charges.
Total losses before tax and including interest charges were £57.1m compared to £20.4m for the prior year. This is due to an impairment charge of £26.7m to reduce the carrying value of fixed assets in line with revised expected net present value future cashflows over the remainder of the concession in the post-COVID business environment.
Tim Hesketh, CEO of Tramlink, said: “Like many other public transport operators, there’s no denying that we’re still feeling the effects of the pandemic. It’s promising to see that post-pandemic passenger levels are well on their way to recovery, with figures showing they’re at 80% of what they were before COVID.
“However, we remain committed to doing all we can to ensure the network can continue to provide a sustainable and convenient option for the thousands of people who rely on it for travel in and around the city. That’s why we believe the restructure was essential for helping us make some key improvements to our operations.
“It will not only give us a much more secure financial position, but it will also allow us to make a raft of investments into areas such as new technology, updates to our ticket systems and the recruitment of additional revenue protection officers.”
As part of the recent financial restructuring project, which took two years to complete, Tramlink Nottingham Limited has successfully negotiated with its senior and junior lenders to revise the terms of it loans. This will ensure the business remains a going concern and can continue to provide a high level of service to the travelling public of Nottinghamshire.
Tim added: “It’s been a challenging few years and we’d like to thank the City Council and Department of Transport for all their support. Thanks to the restructure, we look forward to a brighter year ahead for the network and the wider city.”
The concession which allows Tramlink to run the NET tram system runs until 2034 and factors in losses in the earlier years due to investments in the system, including expanding the network in 2015 and buying new tram vehicles.
The loss reported during this year’s accounts is in line with financial expectations.
Boohoo considers closure of Leicester factory
Boohoo is considering shutting its ‘model’ factory on Leicester’s Thurmaston Lane.
According to reports from Drapers, the fashion group has confirmed that it entered a consultation last month, with under 100 employees effected.
A spokesperson for Boohoo Group told Drapers: “We opened Thurmaston Lane in January 2022 to support the group in several ways, including manufacturing, printing and training.”
They continued: “The role of our sites continues to evolve over time and, following significant investments at our Sheffield distribution centre and the opening of a new distribution centre in the USA, we must now take steps to continue to ensure we are a more efficient, productive and strengthened business.”
These factors have led the business to consider relocating some operations at Thurmaston Lane and consider the closure of the site. Boohoo is now in a period of consultation.
The company is planning to keep its quality assurance and ethical compliance staff.
The factory has been in the spotlight for controversy following a 2023 BBC Panorama investigation which indicated Boohoo’s failures to keep ethical production promises, and that some orders were being made by factories in Morocco and others in Leicester.
Boohoo has also been targeted over allegations of forced labour in factories, while previous investigations revealed unsafe conditions, a failure to pay minimum wage, and discount demands on suppliers.
New Food Innovation Centre bakes recipe for business success
A wider range of food and drink businesses from the whole supply chain will have access to specialist support and expertise with the new Food Innovation Centre.
The Food Innovation Centre at the University of Nottingham is being re-launched to extend its service across the UK, building on the work it has done with SMEs across the East Midlands over the past six years.
The Food Innovation Centre can provide a range of scientific and technical guidance to food and drink businesses, supporting the development of products and processes, from conception to consumption.
The new service is being run as a commercial consultancy and offers a range of services.
Dr Peter Noy, Food Innovation Centre steering group, said: “Expanding our remit will allow more food and drink manufacturers and producers to access the specialist support we offer. Combining academic expertise and state-of-the-art facilities with commercial knowledge we are able to help businesses to bring new products to market more quickly.”
Since its inception six years ago the Food Innovation Centre has supported over 270 local businesses and helped to bring 24 new products to market.
