Pendragon motor and leasing businesses to be sold to one of the largest automotive retailers in North America

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Nottingham-based Pendragon and Lithia Motors, one of the largest automotive retailers in North America, have agreed the terms of a proposed sale by Pendragon Group Holdings Limited (PGHL) of the entire issued share capital of Pendragon NewCo 2 Limited (Pendragon NewCo) which will hold, either directly or indirectly through its wholly-owned subsidiaries, the company’s entire UK motor business and leasing business, to Lithia UK Holding Limited (Lithia), a wholly-owned subsidiary of Lithia Motors, Inc. for a gross aggregate consideration of £250 million.

Pendragon and Lithia Motors, Inc. have also agreed the terms of a strategic partnership with Lithia, including the rollout of Pinewood, the company’s dealer management software (DMS) business, to Lithia’s existing 50 UK sites and the creation of a joint venture to accelerate Pinewood’s entry into the highly attractive North American DMS market.

As part of the transaction, Pendragon’s Pinewood division, which operates the company’s proprietary DMS business, will become a standalone entity, retaining Pendragon’s existing listing on the London Stock Exchange and creating a pure play Software as a Service (SaaS) business with an accelerated growth plan.

The transaction is the conclusion of the strategic review announced by Pendragon last year and the Board believes that it will deliver an attractive cash dividend to shareholders of c.£240 million.

Ian Filby, non-executive chairman of Pendragon, said: Pendragon has made strong progress executing its strategy in recent years and the business has been repositioned successfully as a digitally-enabled automotive retailer. Today’s announcement follows an extensive strategic review undertaken by the Board of Pendragon to maximise value for our stakeholders.

“The proposed transaction provides shareholders with an immediate dividend close to the company’s undisturbed market capitalisation as well as ongoing ownership in an exciting technology company with improved growth prospects.”

Bill Berman, Chief Executive of Pendragon, said: “Pendragon has built one of the UK’s leading automotive retailing businesses, underpinned by a market leading dealer management system, the quality of our people, long-standing relationships with OEMs and excellent execution for customers.

“The Pendragon Board considers Lithia to be perfectly placed to build on this progress. The launch of Pinewood as a standalone company is a unique and exciting opportunity to create a best-in-class product for customers, which we can market globally and drive substantial value for our shareholders and in Lithia we have the perfect partner to help accelerate Pinewood’s push into the hugely attractive North American DMS market.”

Bryan DeBoer, Chief Executive of Lithia, said: “The strategic partnership with Pinewood Technologies and acquisition of Pendragon’s UK motor and vehicle management divisions is a massive step in delivering on our longer-term growth strategy. We are excited about the great potential in Pinewood’s offering and envision our strategic partnership to further expand this SaaS business globally.

“Additionally, the proposed acquisition presents a highly synergistic growth opportunity with our existing UK presence with Jardine Motors Group; provides a new adjacency with PVM; and expands our brand and geographic footprint while serving to further strengthen our existing OEM relationships.”

Seafood industry boosted by Lincolnshire organisations’ research

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Two Lincolnshire-based organisations have joined forces to identify a fresh and sustainable approach to the freeze/thaw process of seafood produce, which could transform the global seafood industry. The University of Lincoln, UK, has partnered with New England Seafood International (NESI), through a Knowledge Transfer Partnership (KTP). Designed to link forward-thinking businesses with the expertise of academics, KTPs provide schemes to help organisations innovate and grow. This KTP project will research and develop a brand-new fish thawing process, combining ecological, environmental and sustainable business outputs. The UK seafood industry relies on a large quantity of frozen and raw ingredients as part of the food manufacturing process. Currently, seafood thawing remains an under-researched area of the food chain, bringing many costly processes relating to timescales, cost efficiencies and retention of produce quality. In addition to identifying new and sustainable practice in the seafood industry, the initiative will also aim to tackle the skills shortage gap. The project will be based at NESI’s North East Lincolnshire facility in Grimsby, and the team at NESI will have access to a team of the University’s industry experts at the National Centre for Food Manufacturing (NCFM), who will assist on the project and impart their knowledge and expertise. The KTP will use a blended approach across manufacturing and scientific disciplines, in which they will challenge established industry practise, advancing the understanding of the freeze/thaw process and creating opportunity for wider industry adoption. Martin Davies, Group Operations Improvement Manager at NESI, said: “New England Seafood are delighted to have the opportunity to work alongside the University of Lincoln to improve one of the most complex and critical manufacturing process steps. “The academic expertise the University will provide, combined with many years of seafood industry experience in New England Seafood, a recipe to optimise this process for the long-term in a balanced way, across people ergonomics, food hygiene, environmental, and operational efficiency factors.” Janey Bellamy, Associate Professor in Food Robotics and Process Automation at NCFM, said: “This is a great opportunity to challenge established industry practices and to advance the understanding of the freeze/thaw process with clear and validated data. This work will have a positive transformational impact on the food supply chain across multiple sectors.” The project is funded by Innovate UK and will last for 2 years.

Cawarden becomes Derbyshire FA’s 140th year headline sponsor

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Derby-based Specialist Contractor, Cawarden, continues to support grassroots football in Derbyshire. Cawarden is no stranger to supporting grassroots football in the county. Just last season, they sponsored the highly successful Derbyshire County Cups competitions, as they returned after a 3-year hiatus caused by the COVID-19 pandemic. This season, Cawarden continues to offer their support to Derbyshire FA, reconfirming themselves as the Derbyshire County Cups sponsor for the second season running, as well as becoming the new official partner of Derbyshire FA’s 140th year. This new partnership means that Cawarden will be the headline sponsor for all Derbyshire FA events for the duration of the 2023/24 season – the County FA’s 140th year in operation. This partnership will launch at the Derbyshire FA Grassroots Football Awards Night 2023, hosted at Pride Park Stadium on Friday 15th September 2023. Ricky Stevenson, Chief Executive Officer at Derbyshire FA, said: “It’s fantastic to have Cawarden on board again this season. We are two Derbyshire-based businesses with aligned values, and this partnership really enables us to excel in the delivery of our mission to change lives through football in our county. “This year is an extremely important one for us here at Derbyshire FA, and we’re immensely proud to be entering our 140th year since our inception all the way back in 1883. It’s something we really want to celebrate, and with Cawarden’s support, the sky is the limit. “It’s also brilliant that Cawarden will continue to sponsor the Derbyshire County Cups this season. Last year, the return of prestigious County Cups went down really well, and we can’t wait to make them even better this time around with the support of Cawarden.” William Crooks, Managing Director of Cawarden, said: “We are thrilled to announce our continued commitment to supporting grassroots football, following the great success of our sponsorship deal for the Derbyshire FA County Cups during the 2022/23 season. “Our support will not only extend to the 2023/24 County Cups, but we are also excited to reveal that Cawarden will take on the role of Headline Partner, in honour of Derbyshire FA’s 140th year. “This is a very special year, and we are proud to align ourselves with an organisation that shares our values of supporting local communities. Football is an integral part of community life, and we are delighted to continue our support for Derbyshire football. “There are many exciting plans in store for this celebratory year, and we look forward to an exciting season ahead!”

Dice appointed a Framework Agreement Supplier by NHS Shared Business Services

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A Nottingham consultancy has been appointed a Framework Agreement Supplier by the NHS Shared Business Services. Dice Consulting Engineers has been named as a supplier on NHS Shared Business Services’ Healthcare Planning, Construction Consultancy and Ancillary Services (HPCCAS) framework agreement. The consultancy has been named on Lot 3, Civil & Structural Engineering, and will be offering civil and structural engineering services. They’ll also be able to provide the public sector with their in-house pre-planning services which covers areas including flood risk, geotechnical investigations, air quality, and acoustics. The framework runs from the 14th August 2023 until the 13th August 2027 and is open to local authorities, emergency services, higher education, NHS, and the wider public sector. NHS Shared Business Services (NHS SBS) was created in 2004 to deliver corporate services to the NHS and ease the pressure on NHS employees, patients, and suppliers while providing taxpayers with value for money. They manage over 40 framework agreements which cover a wide range of clinical and corporate goods and services. Commenting on the agreement, director, Wayne Oakes said: “This has been a primary target for the business. We revisited our entire business strategy at the start of 2022 to shift our focus away from private developer led projects and focus more towards public sector opportunities. “We identified this NHS SBS Framework as our number one priority to enable us to secure public sector projects in our own right. A large amount of work was undertaken behind the scenes to acquire various industry recognised accreditations in order to enable us to meet the requirements of the SQ stage of the bid. “As part of this process we also set about to complete our ISO 9001 and 14001 integrated management systems accreditations and recently achieved our Stage 1 assessment, with the Stage 2 assessment scheduled to be undertaken in December.” Director Jon Svikis believes the framework will help the consultancy develop pre-existing relationships and generate new opportunities and work streams through direct appointments with end clients, local authorities, NHS Trusts, and Higher Education providers. Jon said: “The team at Dice have successfully delivered a wide range of healthcare projects previously through the existing NHS SBS framework agreement, which includes backlog maintenance schemes, new hospital extensions, and Emergency departments just to name a few. The team also has extensive experience in the refurbishment of existing healthcare estates. “Some of the clients our team members have worked with include University Hospitals of Leicester NHS Trust, Barnsley Hospital NHS Foundation Trust, North Lincolnshire and Goole NHS Trust, Kier Construction, Vinci Construction, Sheffield Teaching Hospitals NHS Trust. Our team has also delivered numerous projects with higher education providers using the framework. “The framework will help us get access to more healthcare projects. Dice currently works with various local authorities delivering numerous projects across the education, commercial, and leisure sectors.” Director and co-founder Raj Somal said: “This framework win is of huge importance to the business as it will enable us to continue with our sector diversification strategy. “We are eager to extend our engagement within the public sector due to the strategic advantages it offers for our business resilience and sector diversification.” He continues: “The public sector projects often provide a stable and predictable stream of work, which can act as a buffer during economic fluctuations and uncertainties in the private sector. This steady flow of projects enhances our overall business stability and minimises potential revenue volatility. “By establishing a stronger presence in the public sector, we not only fortify our business but also position ourselves for long-term growth and sustainability in a broader range of construction endeavours.”

Location confirmed for £100m innovation and technology park

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The development of a new £100m innovation and technology park in Ashfield has moved a step closer after Ashfield District Council confirmed a preferred location for the project. The site on Lowmoor Road, Sutton in Ashfield, opposite Sutton Parkway is the proposed site for the development which will include the construction of the Automated Distribution and Manufacturing Centre (ADMC). The location was chosen due to its size, strategic location, transport links, proximity to Vision West Notts College technology campus and neighbouring industrial clusters in the area. Ashfield District Council has agreed in principle to purchase the land from Nottinghamshire County Council. Funding has been secured from Ashfield District Council’s Towns Fund Deal, as a part of the investment to create nationally and internationally recognised centres, mirroring UK’s existing Catapult Centres. The whole site will be a £100m+ development attracting inward investment and create higher economic growth opportunities for the residents of Ashfield. The £30m ADMC is a circa 4000m2 purpose-built, multi-function centre, with space allocated for research and development, new product development and testing, education and skills development, technology showcasing, networking, collaboration, and event hosting. It will encompass technical experts, engineers and researchers who will be able to assist businesses of any size from across the East Midlands to understand and adopt automation technologies and to train their staff up into these higher skilled jobs. The ADMC is ideally located in Ashfield because of its central location in the county, great transport links and a strong manufacturing base in the area. The site is well placed to support distribution companies in the region and the new Free Port coming to East Midlands Airport. Market engagement has shown significant potential for benefits to local businesses. The location is close to the A38 and M1 and near major cities. Executive Lead Member for Growth, Regeneration and Local Planning at Ashfield District Council, Cllr Matthew Relf said: “The development of the innovation and technology park and Automated Distribution and Manufacturing Centre will play a key role in bringing economic growth and new investment opportunities that will benefit businesses and residents of Ashfield and create higher paid jobs and education and learning opportunities. “These developments are part of our broad range of regeneration projects that we secured funding for that are changing the face of the local area. These projects are central to achieving the Council’s ambition of making Ashfield a great place to live, work, study, play and visit.” Councillor Keith Girling, Cabinet Member for Economic Development and Asset Management said: “I am delighted that we have been able to support the ADMC Board in this Towns Fund initiative, as part of the Government’s Levelling Up agenda. This will help to bring high skill job opportunities into areas where such opportunities have not always been available. “As the cabinet member for economic development I was in an ideal position to combine the economic benefit with the land we owned at Lowmoor Road, and I am delighted that we have been able to come to a fair conclusion which is a win, win for both councils. I look forward to continuing to support the ADMC Board so that we can maximise the full potential of the site.” The construction of ADMC is due to start in 2024.

Shortlist revealed for the East Midlands Bricks Awards 2023

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Business Link can now reveal the shortlist for this year’s highly anticipated East Midlands Bricks Awards – THE event for Property & Construction in 2023. Showcasing the outstanding work of those behind the changing landscape of our region, the Bricks Awards features a diverse range of categories and a glittering awards ceremony that will host many of the region’s industry leaders. This event is also an ideal opportunity to celebrate and network with the very best in the business. The awards ceremony announcing the winners will take place on Thursday 28th September, at the famous Trent Bridge Cricket Ground. Book your place at the awards now to avoid disappointment! The event will begin at 4:30pm and continue until 7:30pm, with plenty of time for networking and celebrating. The occasion will additionally feature Mike Denby, Director of Inward Investment and Place Marketing at Leicester City Council, as keynote speaker. Complementary drinks and canapés will be served on arrival, sponsored by Nicholas Associates. Dress code is standard business dress.  

Shortlist for the East Midlands Bricks Awards 2023

Most Active Estate Agent – sponsored by OMS

BB&J Commercial

Mather Jamie

FHP   Commercial Development of the Year – sponsored by MKM

HBD – Power Park, Nottingham

Henry Brothers Construction – SportPark Pavilion 4, Loughborough

Bolsterstone Group Plc, Chesterfield Borough Council – One Waterside Place, Chesterfield   Responsible Business of the Year – sponsored by Press for Attention PR Cawarden G F Tomlinson Aspbury Planning Limited   Residential Development of the Year – sponsored by Sterling Commercial Finance

Phoenix Brickwork UK Ltd – St Marks student accommodation, Lincoln

Elms Developments – Elms Phase Two Ltd

St James Securities, Grainger – The Condor, Derby

  Deal of the Year – sponsored by Mather Jamie

Rushton Hickman Limited – Branston Locks deal

Bassi Group Nottingham Ltd – Job saving Pizza Hut takeover

Rigby & Co – Aida Factory deal

  Developer of the Year – sponsored by Ward

Chevin Homes

Clowes Developments

Brackley Property Developments

  Architects of the Year – sponsored by Blueprint Interiors

IMA Architects

Matthew Montague Architects

Influence Landscape Planning and Design

  Excellence in Design – sponsored by Cawarden

Chevin Homes – Amber Farm

Marchini Curran Associates – Phoenix cinema and art centre

Trident Construction Services – Lark Hill Retirement Village refurbishment

  Sustainable Development of the Year – sponsored by Viridis Building Services Ltd

HBD – Power Park, Nottingham

Henry Brothers Construction – SportPark Pavilion 4, Loughborough

Elms Developments – Elms Phase Two ltd

  Contractor of the Year – sponsored by RammSanderson Cawarden

EE Smith Contracts

Bowmer + Kirkland

  The Overall Winner, sponsored by Streets Chartered Accountants, will also be announced at the ceremony, who will be awarded a year of marketing/publicity worth £20,000.
East Midlands Bricks Awards 2023 When: Thursday 28 September 2023, 4:30pm – 7:30pm Where: The Derek Randall Suite, Trent Bridge Cricket Ground Keynote speaker: Mike Denby, Director of Inward Investment and Place Marketing at Leicester City Council Dress code: Standard business attire Tickets: Available here Thanks to our sponsors:                                                             To be held at:
 

A time for fortitude for family businesses: by James Pinchbeck, partner at Streets Chartered Accountants

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James Pinchbeck, partner at Streets Chartered Accountants, considers the importance of family businesses focusing on fortitude. One of the key characteristics of many family businesses is their often-exceptional resilience to cope with the challenges faced. Whilst in the past such challenges may have included one-off situations, even a crisis, we now seem to have moved to a time where we appear to have a number of challenges affecting or impacting businesses. Whilst typically the quality or mindset of resilience might have served them in good stead in the past, perhaps it’s time now for family and owner managed businesses to focus more on fortitude. Being resilient, that is bouncing back or persevering, might be good in the short term, but perhaps fortitude, having the motivation, drive and determination to succeed might be better in the longer term. All businesses, including family ones, have and are dealing with the impact of recent and current events, be it Brexit, the pandemic or the conflict in Ukraine. We should really take into greater account and consideration the growing impact that environmental changes are having in terms of extreme weather conditions, floods and fires, which previously were rare and uncommon to now being more typically the norm and sadly an everyday occurrence. In light of these events businesses, like all of us, are seeing rising costs, pressures on cash and the cost of finance. Whilst household incomes are being squeezed, so too are business margins and working capital. Like many families, family businesses will no doubt be focusing on the finances, cutting their cloth accordingly and looking after the pennies, even make do and mend. A focus on maintaining margins, safeguarding working capital, effective debt collection is also bound to be given greater importance.  So too is any decision around any capital investment or new or re-financing. Perhaps though the area not being focused on is developing the motivational mindset, drive and determination not only to work through the situation but to come out of it stronger. A lack of focus could be down to too great a focus on the here and now, more the operational day to day challenges as opposed the medium to longer term strategy. Whilst a work ethic is commendable and can be often harnessed and shared by all, employees, managers and directors alike also need, even crave, a sense of direction and purpose along with a game plan. Such a plan need not be a long-winded business plan, it could and perhaps more ideally needs to be short with a clearly and easily communicated direction of travel to include strategic intent and vision along with measurable outcomes – even rewards. Ideally such a plan should inspire, even excite those charged with making it happen, creating goals and aspirations. As ever and not least in challenging times effective business communication is often key to success. This should not just be for the family members engaged in the business, it should include the wider workforce. Certainly, in times of uncertainty or change, there is a real danger communication becomes less or less effective. Given the challenges faced, perhaps it might be worth as a family business reviewing how the running of the business and decision-making affects or impacts you and the wider family. With growing pressures, it might be good to review individuals’ roles and responsibilities, when, where and how you consider or discuss the business. You may also want to consider the need for and benefit of seeking external advice, or taking on a Non-Exec Board member or Chair to draw on their knowledge and experience. Whilst previous generations may have weathered the storm and have been resilient, the pace of change along with the impact of more global events outside our control really do seem to point to family business owners needing to draw on their fortitude.   See this column in the September edition of East Midlands Business Link Magazine here.

£12.1m loan agreed to finance construction of 47 new homes in the Peak District

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The development lender Atelier is to provide a £12.1m loan facility to the Chesterfield-based developer Stancliffe Homes to enable it to build 47 new homes on the southern edge of the Peak District. The finance will be provided alongside an investment from Housing Growth Partnership, an equity investor that’s part of Lloyds Banking Group and has supported the construction of more than 7,500 new homes across the UK since 2016. It has injected £17.7m of funding into some the Midlands’ most successful housebuilders this year alone. Stancliffe Homes is a family-run business with a track record of building desirable homes across Derbyshire and Nottinghamshire. Its new development, Bentley Walk, is in the village of Tansley near Matlock. Bentley Walk will include a full range of home types, including bungalows, semis and detached houses with up to five bedrooms as well as six affordable homes. In this, its first collaboration with Housing Growth Partnership, Atelier has structured the finance for the scheme to give Stancliffe maximum flexibility and help it to best meet the project’s specific requirements. The 27-month, 66% LTV ‘peak debt’ facility will enable the developer to complete and sell some of the 47 homes while others are still under construction, boosting its cashflow while also reducing both debt and interest. George Seabrook, lending manager at Atelier, said: “The combination of Stancliffe Homes and Housing Growth Partnership is a powerful one. Both have an impressive record of delivering attractive, highly saleable homes in this stunning part of the UK. “That’s why we worked with them to provide a bespoke funding solution that will support the phased construction, completion and sale of the homes in Bentley Walk. Our peak debt facility will enable Stancliffe to run sales of completed units alongside the construction of later phases, providing optimum funding efficiency and keeping down finance costs.” Sam Jones, director of Stancliffe Homes, said: “We’re delighted that the team at Atelier has chosen to support our latest scheme of high-quality new homes on the edge of the Peak District. “Their unique approach to development finance for housebuilders has been a breath of fresh air. Having met many of the team throughout the deal process, we are convinced they will be a steadfast and highly supportive partner for us moving forward.” Mike Murphy, HGP investment director of the Midlands and Wales region, added: “We’re proud to be continuing our partnership with Stancliffe Homes to help deliver their latest scheme in Tansley, which marks HGP’s second investment alongside the highly regarded housebuilder. “We’re excited to be working with Atelier on our first transaction together, and hope this will be the first of many opportunities for HGP and Atelier to work together in the Midlands and Wales.”

Trading ahead of expectations at Games Workshop

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Trading is ahead of expectations at Games Workshop, the miniature wargames manufacturer, according to a new update for the three months to 27 August 2023. The quarter saw core revenue of around £121 million (2022/23: £106 million) and licensing revenue of around £6 million (2022/23: £3 million). Profit before tax, meanwhile, is estimated to be £57 million (2022/23: £39 million). “This has been driven by healthy growth across all channels,” the Nottingham company said. It added: “The Board recognises that this performance is better than the prior year but is also aware that it is still early in the financial year.” Games Workshop’s Board has also declared a dividend of 50 pence per share taking dividends declared so far in 2023/24 to £1.95 per share (2022/23: £1.20 per share) – in line with the business’s policy to distribute truly surplus cash.

BlueSkeye AI wins another national technology award

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Nottingham-based AI startup Blueskeye AI, which is developing software to help pregnant women monitor and improve their mental health, has won a national technology award for its work. The company was named “Best AI Startup,” at a ceremony at the Cog X Festival in London on Tuesday evening, 12 September. The Award recognises products and people who bring AI to life and who are using technology to provide a revolutionary approach to solve real world problems. BlueSkeye, a spin-out from the University of Nottingham, uses AI to analyse minute changes to people’s face and voice over time which can reveal the early tell tale signs of depression. The technology has developed from 18 years of research by founding CEO professor Michel Valstar. The technology has been used by 250,000 mums so far and the company runs clinical trials with Nottinghamshire NHS Trusts. Collecting the award for BlueSkeye AI professor Valstar said: “We’re absolutely thrilled and delighted for BlueSkeye AI to be recognised for its innovative use of machine learning to help clinicians, patients, their friends and families assess, treat and monitor mental health. “Global Mental Health is in crisis, affecting nearly a billion people worldwide and we can help. “The impact of our technology goes beyond mental health to encompass other conditions which may be diagnosed through changes in the behaviour of the face. We’re working on technology that could diagnose Dementia earlier, helping sufferers take more control of their condition and access treatment earlier.” The CogX Awards, which are in their sixth year, celebrate innovators and change makers who are having an impact across the world.