Midlands mid-market outperforms expectations but challenges persist
Midlands mid-sized businesses are reporting stronger-than-expected performance in 2025, fuelled by resilient customer demand, AI adoption and an improving skills outlook, according to the latest Economic Engine research from accounting and business advisory firm, BDO.
The survey of over 500 mid-sized business leaders shows more than three-quarters (76%) have already beaten growth targets set at the start of the year, with one-fifth (20%) saying they have significantly exceeded expectations.
Better-than-expected staff recruitment and retention (49%) and rising customer demand (47%) were key drivers of outperformance, supported by productivity gains from technology and AI (43%).
This positive trading picture is translating into continued capital commitment. Over half (51%) are holding investment steady, with more than a third (37)% stepping it up. Only one in 10 (11%) are delaying or scaling back UK investment. These figures suggest regional companies are backing their own pipelines and balance sheets, even as wider economic sentiment remains subdued.
Despite their strong performance, confidence in the UK as a place to grow remains limited for some Midlands businesses. Nearly two-fifths (39%) of mid-sized companies surveyed describe the UK as a “strong environment” for long-term business growth, while 61% say conditions have become more challenging. One in five (20%) are already shifting operations or investment overseas.
That caution reflects persistent structural pressures. On workforce issues, a third (33%) cite plugging skills gaps as their biggest challenge. Rising wage expectations are another significant pressure (17%), reflecting the ongoing effects of inflation and higher National Insurance contributions.
Operationally, managing supply chain disruption is one of the most pressing barriers to growth (24%). At the same time, while AI is seen as a driver of productivity, more than a quarter of Midlands companies (26%) cite adopting new technologies as a challenge, highlighting the uneven pace of digital transformation across the mid-market.
To fuel their growth, Midlands mid-sized businesses are looking to secure new investment or finance (53%) and investing in automation, technology or AI (51%). A further 36% are launching new products or services.
Kyla Bellingall, regional managing partner at BDO in the Midlands, said: “These findings highlight the strength of the Midland’s mid-market – businesses are delivering growth and continuing to invest despite challenging conditions. But they also carry a warning; confidence in the UK as a place to scale is not guaranteed.
“With mid-sized businesses continuing to contribute significantly to the regional economy, creating a wealth of additional jobs to boost the future outlook in the Midlands, the government will want to use the Autumn Budget to reassure this segment of the market and address persistent barriers around skills, costs and competitiveness. Only with the mid-market firmly and confidently anchored in the Midlands, will we see the growth the regional economy needs.”
G F Tomlinson secures position on NEUPC refurbishment framework for the Midlands
Midlands-based contractor, G F Tomlinson, has been appointed to the North Eastern Universities Purchasing Consortium (NEUPC) ‘Building Refurbishment Services’ framework for Lot 4C – Midlands region.
The contractor will be covering refurbishment projects valued between £4 million and £10 million across higher education and public sectors throughout the East and West Midlands as part of the framework, which will run for an initial four-year term from June 2025 to June 2029, with the potential for a two-year extension.
The NEUPC framework provides a procurement route for refurbishment works to a wide range of public sector institutions, including universities, further education colleges and schools, NHS Trusts, charities, and other public sector bodies that are members of the consortia.
G F Tomlinson is one of only two contractors appointed to the £4m – £10m Midlands Lot.
Works under the framework will cover all aspects of refurbishment typically required in university and education buildings. These include improvements to laboratories, lecture theatres, libraries, commercial kitchens, accommodation, meeting and conference rooms, and plant areas.
Adrian Grocock, managing director at G F Tomlinson, said: “We are delighted to have been successful in our bid for the new NEUPC Framework. Being appointed to Lot 4C in the Midlands reflects our continued commitment to quality, safety, and adding social value through our work.
“This framework opens the door to some of the region’s most respected educational and public sector clients, and we are proud to be part of a collaborative approach that supports sustainable, impactful refurbishment of vital educational infrastructure.
“This appointment builds on our extensive track record with clients such as the University of Nottingham, Nottingham Trent University, University of Lincoln, Keele University and Nottingham College.”
Andy Hughes, deputy head of operational procurement and category manager at NEUPC, said: “We are pleased to award a long-term framework that is open to all members of the NEUPC, covering a diverse range of requirements in refurbishment works that we hope will provide savings as well as quality work for our members.”
CEO of Corby-based Cambridge Nutritional Foods announces retirement
The CEO of Cambridge Nutritional Foods (CNF), Chris McDermott, is to retire after 22 years with the business.
McDermott is set to retire from the Corby-based, employee-owned business in January 2026 and will be succeeded by Ashley Farmer, the current chief commercial officer.
CNF has experienced significant growth under McDermott’s leadership, by expanding its brand portfolio from The 1:1 Diet (formerly Cambridge Weight Plan) to include the launch of women’s wellbeing brand Serenova and food product development & manufacturing provider Food Nutrition Partners.
McDermott joined the business as PR manager for The 1:1 Diet in 2003, working his way up to business development director in 2012 before becoming CEO in 2015 – heading up CNF for the last 10 years.
He said: “Working at CNF has been the most extraordinary adventure of my life, and it has been the greatest privilege to lead this business. Its most important element to me has always been its people, and I am grateful to all those I have met and the achievements we have made together.
“I wanted to create the best possible environment to make this decision, knowing that the business would be in the best position to move on to the next level.
“Ashley has made a significant difference to the business and has brought a huge amount of drive, energy and financial rigour to all of our commercial functions. With his strong leadership in place and an exciting new strategy, I am confident in this exciting next chapter in the history of CNF as he takes the business to new heights.”
Farmer joined CNF in 2023, with more than 10 years’ experience in direct selling businesses, to unify sales, marketing, product, and the digital functions of the company.
He said: “Chris has steered the business through some pivotal moments, and I know that his passion, drive, and skill has delivered so much to our customers and stakeholders, and I would like to thank him personally for that.
“We are entering a new chapter with a bold vision to shape a future of lasting growth and success, so I am extremely proud to be taking on the role of CEO as we continue to grow from one brand into multiple businesses.
“I am excited to get started, accelerate progress to deliver success, and build an exciting new future for CNF.”
Invicta Holdings acquires Spaldings Group
Invicta Holdings Limited, listed on the JSE, has completed the purchase of UK distributor Spaldings Limited for R282.2 million through its subsidiary, Invicta Global Holdings Limited. The acquisition took effect on 1 September 2025.
Spaldings, established in 1954 and based in Lincoln, Lincolnshire, supplies agricultural and ground care replacement parts and machinery. The company reported a net profit of £526,838 for the year ending 31 December 2024. Annual profits for 2025 are projected between £1.4 million and £1.6 million, with a net asset value of £4.5 million at the end of 2024.
The deal aligns with Invicta’s plan to expand internationally in markets where it has sector experience and management capacity. The acquisition is expected to support growth in Invicta’s global replacement parts and engineering business, enhance procurement efficiency, and broaden the product range. Funding will come from Invicta’s existing cash reserves.
The transaction is classified as a category 2 acquisition under JSE Listings Requirements and does not require shareholder approval.
David Fox, non-executive chair at Spaldings, said: “In Invicta Holdings, we have found a like-minded business that has significant expertise in our core markets – individuals who have shown great desire to support Spaldings in the next phase of our growth journey, while backing the existing management team to achieve those ambitions.” Law firm Mills & Reeve advised on the sale of the holding company of the Spaldings Group to Invicta Holdings. The Mills & Reeve team acted for the sellers, Inspirit Capital and the management shareholders of the Lincoln-based company. The team was led by corporate partner and head of international Tom Pickthorn and principal associate Hayley Simonds, with support from Ashley Kerr. Hayley Simonds said: “Spaldings is a company with a rich heritage and strong footprint – not only in the East Midlands, but also in the agricultural sector. This deal is not only a significant milestone in the company’s growth journey, but also demonstrates the ongoing appeal of high performing regional businesses to acquisitive overseas buyers.”Currys posts sales growth and announces £50m share buyback
Currys has reported a strong start to its financial year, with growth across the UK, Ireland and Nordic markets. Like-for-like revenue in the UK and Ireland rose three per cent during the 17 weeks to 30 August, supported by double-digit increases in categories such as gaming, AI computing and large domestic appliances. Sales of cooling products and coffee machines remained steady, while demand for televisions, tablets and air fryers declined.
The retailer’s recurring services continued to expand, with customer credit adoption reaching 23.3 per cent and iD Mobile subscribers growing 22 per cent year-on-year to 2.3 million. Margins in the UK stayed stable despite ongoing cost pressures, with higher sales volumes providing operating leverage.
Currys also announced a £50 million share buyback alongside a £25 million dividend, raising total shareholder returns to £75 million. The company reported a reduced pension deficit, down from £403 million in 2022 to £134 million, with contributions expected to fall significantly from 2026.
The update comes amid a challenging high street environment. The retailer experienced a website outage following extended maintenance, while shares have dropped roughly 12 per cent since July, though they remain around 20 per cent higher year-to-date. Analysts have warned that slowing wage growth could weigh on retailers in the coming months, but Currys maintains a positive outlook.
Grantham outlet development set to begin in 2026
Construction on a £100m designer outlet near Grantham is scheduled to start in 2026, with completion expected by 2028. The development will feature 137 retail units and is projected to create more than 1,200 jobs, including roles in retail and hospitality.
Planning permission for the Grantham Designer Outlet Village was granted by South Kesteven District Council in 2017. The project experienced multiple delays, attributed to factors such as the Covid-19 pandemic, supply chain disruption linked to the Ukraine conflict, and rising inflation.
The site is strategically located on the A1, providing strong transport links for visitors and logistics. Developers plan to include additional services, such as hotels, to complement the retail offering and support local employment.
Local council representatives have highlighted a need for industrial and high-tech business space in the area, noting that the site could alternatively support business growth and advanced manufacturing facilities.
The development is expected to become a regional attraction, providing economic benefits to Grantham and the wider Lincolnshire area, while contributing to the local jobs market and commercial infrastructure.
Autopack hits the acquisition trail with deal to buy Nottingham namesake
Independent integrator of packaging lines Autopack has bought Nottingham-based Autopak Machinery, a designer and manufacturer of bespoke bag filling and handling equipment.
The move furthers Autopack’s capabilities in the flexible packaging market and continues to build its wider offer in processing and packaging lines for businesses across the UK.
Autopak Machinery will be rebranded as APM and the move follows the retirement of the company’s founder Aubrey Davies. The management team will remain in place and Autopack’s strategy is to invest in new product development.
“This acquisition of APM is another piece in our strategy to become a one-stop-shop for our customers,” said Autopack Managing Director Wayne Kedward. “Keeping in place the current management team is central to our plan to grow the business and maintain the promise to our customers; we give quality advice with quality machinery.”
With its headquarters in Hereford, Autopack is an independent supplier of packaging and processing machinery to the food, drink, chemical, cleaning and personal care sectors. The deal with APM is its third acquisition and brings the total turnover of the group to £17m. In 2020, it bought Spanish flexible packaging equipment specialists Postpack. This was followed by the addition of Gainsborough-based engineering business Technosys.
“Every packaging line that we deliver is underpinned by our approach to building lasting partnerships with our customers,” added Wayne Kedward. “This drives our success, and our team bring their invaluable knowledge to each and every project that they work on.
“The addition of the APM team not only brings the number of employees across the group up to 58, but it also further enhances our extensive technical knowledge, ensuring that we remain the UK’s leading independent integrator of packaging and processing lines.”
“Autopack’s strategy and immense experience bodes well for the future of APM,” added Aubrey Davies. “I’m delighted that our management team will be on hand to work on a wide range of projects. It’s also a huge boost that investment will be at the heart of Autopack’s strategy as the business focuses on delivering for a growing range of flexible and rigid packaging customers.”
Burton industrial property sold to local investor
Rushton Hickman has sold a vacant industrial property to a local investor.
The warehouse premises consists of 7,402 sq ft of space with an external yard area of 0.26 acres and is situated in a prominent position on the B5017 (Shobnall Road), which allows access to Burton upon Trent town centre and is within two miles of the A38 trunk road.
The property was originally home to a multi-disciplinary contractor, but since it became vacant, the owner was advised on how to proceed, allowing for maximum return without capital expenditure.
Taylor Millington, senior surveyor at Rushton Hickman, who brokered the deal, said: “Although the premises required a lot of internal and external works, this was a rare opportunity to acquire industrial space in Burton upon Trent.
“Upon marketing we received a lot of interest from investors and owner occupiers looking at the site for income and development purposes. The successful sale of this property highlights that the industrial market in Burton and the surrounding areas continues to be strong.”
The purchaser, Aden Woodward, director of Woodward Property (Midlands) Limited, said: “The property in now undergoing renovation and we will either use it for our Woodward Group HQ or look to lease the property. We will be sure to use the Rushton Hickman team to either lease our existing building or this new unit.”
Nottingham Building Society appoints new chief internal audit officer
Nottingham Building Society, the mortgages and savings mutual, has appointed Riaan Thiart as its new permanent chief internal audit officer.
Riaan initially joined the 176-year-old mutual in March 2025 as a strategic advisor in an interim capacity following Sally Gaudion’s move into the chief customer officer role. In his position, he is responsible for providing independent assurance to the board and executive team, ensuring a robust third line of defence on matters of corporate governance, risk management and internal control.
With over 28 years’ experience, Riaan has successfully led multi-national internal audit functions and implemented effective governance frameworks across complex financial services organisations. His career includes senior roles at Nationwide Building Society and Old Mutual PLC, as well as serving as managing director of Prelude Business Solutions Ltd, an advisory business focusing on assurance, programme management and process improvement.
A certified internal auditor and Prince II practitioner, he has also previously acted as interim group internal audit director at Old Mutual, chief internal auditor for the Skandia Group across the Nordics, Europe and Latin America, and acting chief internal auditor for the Nedbank Group, one of South Africa’s largest banks.
Sue Hayes, CEO at Nottingham Building Society, said: “Riaan has already made a significant impact during his interim role, providing valuable insight and assurance at a time of change for our Society. His depth of international experience, combined with his pragmatic and commercial approach, will be invaluable as we continue to strengthen our governance and risk frameworks. I’m delighted to welcome him permanently to the leadership team.”
Riaan Thiart added: “I am proud to be joining Nottingham Building Society on a permanent basis. The Society has a strong purpose-led culture and a clear ambition for the future, and I look forward to working with colleagues, the Executive and the Board to ensure our internal audit function continues to add value, provide assurance and support the Society in delivering for its members.”
Allscreens Nationwide to create jobs with new Leicester head office
Allscreens Nationwide Ltd, the windscreen repair and replacement company, has opened its new head office in Leicester in a move that will create 50 jobs.
The two-acre site in Thurmaston Lane was formerly owned by fashion company Boohoo, who announced the sale of the premises last year.
Allscreens Nationwide welcomed Andrew Edwards, relationship director commercial banking, Royal Bank of Scotland – East Midlands, to help officially open the new head office, with RBS having supported the business with the purchase of the new site.
The move gives Allscreens Nationwide the space to launch new departments including an ESG department, a customer liaison department, a network liaison department and a research and development department, creating up to 50 new jobs.
The company’s existing Repair, Replacement and Recalibration Centre in Coal Cart Road, Birstall, will now close, with all staff transferring to the new 28,000 sq ft headquarters. All four sites – warehouse, fitting centre, contact centre and training academy – will now be housed under one roof, with 100 team members working from the Thurmaston Lane base.
Daniel Sole, director at Allscreens Nationwide Ltd, said: “These are exciting times for Allscreens Nationwide, and we are especially delighted that our new head office means we are creating new jobs in Leicester, a city that has been our home for 32 years.
“The company has strong growth ambitions for 2025 and this move forms part of our plan to consolidate our operations in Leicester and bring our workforce under one roof in the city.
“We hope that this new state-of-the-art office space will not only further encourage our fantastic workplace culture, but also better support our customers in fleet and insurance, including Admiral Insurance, NFUM, Tesco, Novuna, BCA and Lex Vehicle Leasing. Our current repair and replacement rate is over 65,000 jobs per year.
“With low emission heating and electricity systems and a move away from running multiple sites across Leicester, we also hope to reduce our carbon footprint which is a key target for us as a business.”
