Revenue and profit down at Eurocell

Tess Egginton
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Revenue and profit down at Eurocell

Revenue and profit have slipped at Eurocell, the manufacturer, distributor and recycler of window, door and roofline PVC products, according to half year results for the six months ending 30 June 2023.

Against a “challenging market backdrop, with particularly severe decline in new build housing,” first half profits were down “as expected.” Reported profit before tax sat at £3.5m, dropping from £15.7m in the first half of 2022.

Meanwhile the firm posted revenue of £184.4m, declining from £188.8m.

With further deterioration in market conditions, Eurocell’s full year performance is now anticipated to be below previous expectations.

Darren Waters, Chief Executive of Eurocell plc, said: “Market conditions in H1 2023 became more challenging than we had anticipated, on the back of a sluggish new build housing market and lower RMI activity, with the CPA July update forecasting declines of 19% and 11% respectively in these sectors. Against this backdrop and an exceptionally strong comparative period, we delivered some resilience in the Group’s sales performance in the first half, with volumes down 6%, and improved cash flow.

“As expected, H1 profits were down on the prior period. Lower market volumes have resulted in an increasingly competitive environment and margin pressure in the branch network. First half profits were further impacted by recycling feedstock prices, which were significantly higher than H1 2022.

“With the decline in market volumes and a tough outlook for the balance of 2023 and 2024, we acted quickly to lower operating costs and focused on efficient working capital management. In addition, we continue to seek operational efficiencies, for profit and cash flow improvement, the benefits of which we should start to see next year.

“We anticipate that profits in H2 will benefit from lower input prices as well as the operational cost savings already secured. However, with another base rate increase implemented and the prospect of more to come further impacting upon consumer confidence, market conditions have deteriorated since the beginning of August, meaning that we now anticipate full year performance will be below our previous expectations.

“On becoming CEO in May, I initiated a review of our strategy, including the future size and shape of the branch network, customer proposition and other business structures, and I expect this will identify more opportunities for growth and efficiencies. In addition, our pipeline for new fabricator account wins remains positive, supported by a net reduction in UK capacity following the announcement that Duraflex intends to exit the market in September.

“Looking further ahead, the UK construction market continues to have attractive medium and long-term growth prospects, driven by the structural deficit in new build housing and an ageing housing stock that requires increased repair and maintenance. Overall, I believe the actions we are now taking leave the business well positioned to benefit from a recovery in our markets which will, over the medium-term, drive sustainable growth in shareholder value.”

Derby social enterprise shortlisted for national award

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Derby social enterprise shortlisted for national award
Derby-based Nimbus Disability is a finalist in the UK Social Enterprise Awards, recognising it as one of the country’s most innovative and impactful businesses. Social enterprises are mission-led businesses that reinvest or donate their profits for social purposes. Nimbus Disability is a social enterprise that is run by disabled people for disabled people. Its work to improve the lives of disabled people includes the development of the Access Card, which has been recognised with The Queen’s Award for Innovation, and is held by hundreds of thousands of people in the UK and beyond who register their accessibility requirements. The Access Card is the first accessible scheme of its type in the world; offering a universal and consistent way of disabled people evidencing and communicating their access requirements to providers quickly and discreetly. Powered by ‘NOS’, a bespoke software, the system translates its holder’s disability/impairment or access requirements into symbols, which ultimately means that, when booking online, it informs providers quickly and discreetly about the access requirements that individuals need. It has realised a simplistic way for disabled people to book online and protect those reasonable adjustments for those who require them. The scheme has become a lifetime of opportunity for disabled people and a digital bridge to customers for business internationally – widely recognised at the majority of the UK’s leisure and tourism venues such as Buckingham Palace, the O2 Arena and Alton Towers as well as venues in the USA, Europe and New Zealand. Nimbus Disability beat stiff competition to make the shortlist for the UK Social Enterprise Awards this year, which attracted more than 400 entries from all over the country. Awards recognise sector-leading excellence and innovation across a diverse range of criteria, and Nimbus Disability is a finalist in the Tech for Good: Technology Social Enterprise of the Year category. Martin Austin MBE is Managing Director of Nimbus Disability. He said: “We are delighted that our work has been recognised in this way. “Our innovative Access Card scheme is improving the lives of thousands of disabled people across the UK and across the globe – opening up the opportunity for them to visit and engage with events and destinations and enabling them to play a more participative role in society.” Nimbus Disability will join other finalists and VIP guests at a prestigious awards ceremony in London’s iconic Roundhouse on Thursday 30 November, when the winners will be revealed.

Slowdown in businesses adopting green growth strategies amid cost pressures

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Slowdown in businesses adopting green growth strategies amid cost pressures
Green growth activity in the East Midlands has fallen over the past year amid a cost-of-doing-business crisis – but has still more than doubled since 2015, new research shows. A joint annual study by East Midlands Chamber and Derby Business School at the University of Derby found the proportion of businesses across Derbyshire, Leicestershire and Nottinghamshire that have made any income from environmentally-friendly goods and services dropped from 45% in 2022 to 36% in 2023. Despite the drop, this still represents a significant increase on the 16% that reported they derived turnover from goods such as energy efficiency, waste recovery, and eco-food and drink products in 2015, as the business community has increasingly identified opportunities in the UK’s race to net zero. In the face of conflicting messages from central Government about the net zero agenda, there was also a decline in the number of businesses that believe the policy environment is conducive to engagement in the green agenda – falling from 17% to 13% over the past 12 months. Other key findings in the Green Growth Trends in the East Midlands 2023 study were a major distinction between large and micro businesses in pursuing green growth opportunities and investing in decarbonisation, while four in 10 businesses are not engaged at all in the low-carbon agenda. The unique research provides the evidence base that informs East Midlands Chamber’s Sustainable East Midlands initiative, which was launched in 2020 to support businesses in engaging with the green agenda. East Midlands Chamber director of policy and insight Chris Hobson said: “The drop-off in green growth engagement among East Midlands businesses over the past year can in part be attributed to the ongoing cost-of-doing-business crisis, in which firms have been hit by once-in-a-generation cost pressures across energy, fuel, raw materials and people. “But this year’s findings have also identified that fewer companies believe the current policy landscape allows them to fully engage with green growth, perhaps the result of mixed messaging from different parts of Government over recent months around the importance of net zero policy. “The big picture direction of travel, though, is clear. As net zero increasingly forms the bedrock of our national economic strategy the nearer we get to 2050, the more businesses will identify opportunities for growth that has a positive, rather than detrimental, impact on our environment. “This is why we called on the Government to ‘grow our competitiveness the right way’ as one of the three overarching themes in our regional economic blueprint, A Centre of Trading Excellence: A Business Manifesto for Growth in the East Midlands and Beyond. “Many barriers to engagement remain, however, so it is imperative our politicians understand that now is not the time to row back on the net zero and sustainability commitments we have made as a country. “Long-term planning allows firms to grow sustainably and create opportunities for the UK to be world leaders in the products and processes that will drive global growth for decades to come.” Other key findings from the research, which was based on responses from 368 businesses in Derbyshire, Leicestershire and Nottinghamshire as part of the Chamber’s Quarterly Economic Survey for Q2 2023, included: · 68% of large businesses report they are actively pursuing green growth opportunities, compared with 31% of micro, 51% of small and 50% of medium-sized companies · More than a third of organisations invested in decarbonisation initiatives over the past 12 months – increasing to seven in 10 among large companies, which lead the trend · Manufacturers are investing 1.5-times more in decarbonisation initiatives than services companies · There has been a three-fold increase in firms reporting up to half of their turnover is made from supplying green goods or services since 2015 · Four in 10 businesses have no turnover generated from green goods and services, a 5% increase from 2022 · The information gap is widening, with the proportion of respondents saying they did not feel well-informed about the support available for green growth rising from 33% to 36% in the past year · The largest demands for skills development are in the areas of energy efficiency, business strategy, resource efficiency, environmental strategy and waste management. Dr Polina Baranova, associate professor of strategy and sustainability at Derby Business School, co-authored the report with Dr Fred Paterson, the university’s lead for sustainable business and clean growth. She said: “This analysis could indicate that the green gains we experienced during the pandemic are starting to fizzle out and businesses are reverting to the conventional, non-green operations and strategies. “It illustrates the fragility of green growth in the face of economic adversities and how companies of different sizes and sectors are affected differently. “Net zero does not just make environmental sense, but good business sense, and we now need to see leadership from Government to reverse the slowdown in progress if the UK is to be at the forefront globally of the new green economy.”

Private equity firm invests in Nottingham-based business messaging provider

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Private equity firm invests in Nottingham-based business messaging provider
ECI Partners, the growth-focused mid-market private equity firm, has invested in Commify, the Nottingham business messaging solutions firm. The deal, valued at €300 million, provides a full realisation for Hg, an investor in European and transatlantic software and services businesses, that has backed Commify’s transformation since 2016. Commify’s integrated solutions enable over 45,000 customers to communicate with their customers and staff, sending over 5 billion messages per year, covering a range of business critical use cases from appointment confirmations to emergency alerts, via a range of channels including SMS, WhatsApp, RCS, email and voice. The business is a long-established leader in the European Local Enterprise segment, complemented by fast-growing operations in the US and Australia. It operates at global scale, taken to market locally in each country via both its global solutions brand Esendex and local self-serve brands. Commify has completed 16 complementary acquisitions in the last decade, and the investment from ECI will support further acquisitions across both existing and new countries, as well as to accelerate future platform and product development. Richard Hanscott, CEO, Commify, said: “With Hg’s backing in recent years we have built a highly differentiated market-leading business, with material investment in both M&A and our business messaging platform. ECI’s ownership will allow us to accelerate our investment in new products and services, including our growing range of messaging channels such as WhatsApp. “Alongside this we are excited to continue to drive expansion through further acquisitions in both existing and new geographies. Commify is perfectly positioned to continue to deliver high quality, sustainable growth. This is a very exciting time for Commify, our customers and our employees as we look forward to further strong growth supported by ECI’s significant investment.” Paul McCreadie, partner at ECI, said: “Commify has built a differentiated position in an exciting global market, and with messaging becoming the number one customer engagement channel, there is a clear and compelling growth opportunity across Europe, the US and Australia. We’re delighted to be partnering with Richard and the Commify team to support them on further organic and acquisitive growth for the next stage of their journey.” Nick Jordan, partner at Hg, said: “The investment from ECI is a big milestone for the management and staff at Commify. We have been incredibly proud to support the business as it expanded into multiple new European geographies and the US, more than doubling the size of business in doing so. We wish the team well for the future, in partnership with ECI.”

New ‘green’ school gets the go-ahead

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New ‘green’ school gets the go-ahead
Plans to build Leicestershire’s second carbon-neutral primary school have been given the green light. The £9.3m primary will provide school places for children living in the new 924 home Airfield Farm development in Market Harborough. The eco-friendly 210-place school will include teaching spaces for pupils with special educational needs, a multi-use play area, nature areas and parking and drop-off spaces. Bat and bird boxes will be installed to encourage wildlife. The school is being built on behalf of Leicestershire County Council by contractor Willmott Dixon with what’s known as section 106 funding from developers William Davis and Taylor Wimpey and money from the Government’s Basic Need Funding for schools Technology such as air source heat pumps and photovoltaic panels to provide power, as well as careful consideration of building materials, will help the school become ‘zero-carbon’. Councillor Deborah Taylor, cabinet member for children and families, said: “This is great news! This school will be a welcome addition to this new community, providing much-needed school places and a lovely setting for learning. “We are committed to addressing climate change and it’s schemes like these that will support Leicestershire becoming a net zero county by 2045. We look forward to seeing this new school taking shape.” The school has been built in such a way that it could be extended to take up to 420 pupils in the future if needed. An academy trust to run it is due to be announced this autumn and a phased opening is planned from 2024 starting with reception children, with the school reaching capacity by 2030. The build is hot on the heels of the council’s first ‘zero-carbon’ school, Hollycroft Primary in Normandy Way, Hinckley, which is set to welcome its first pupils this autumn. Also built by Willmott Dixon, it will be run by the OWLS Academy Trust.

Silverstone clean-tech business to upcycle bin lorries to electric power

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Silverstone clean-tech business to upcycle bin lorries to electric power
Silverstone Park clean-tech business Lunaz has been appointed to ‘upcycle’ bin lorries to electric power for national operator Biffa as well as Buckinghamshire Council. The first truck converted from diesel to electric inside Lunaz’s 200,000 sq ft Silverstone Park premises will be delivered to the Buckinghamshire authority this autumn ahead of its wider fleet undergoing conversion in 2024. Lunaz’s founder and CEO David Lorenz said: “Lunaz is proud to unlock the power of up-cycling to provide local authorities and waste management companies with electric refuse trucks that represent a dramatically better outcome for both the planet and the taxpayer. “As a Silverstone based technology company, we are delighted to announce the first phase of our large-scale volume commitment to supplying the UK’s local authorities with clean-air and up-cycled refuse trucks.” Gareth Williams, Buckinghamshire Council’s Cabinet Member for Climate Change and Environment, said: “This is a very exciting moment for Buckinghamshire Council and a big milestone in our journey to cutting our carbon emissions and meeting our climate change strategy ambitions. “It marks the first step in our desire to run a more sustainable fleet of vehicles by using a renewable energy source and has multiple additional benefits. These include improving air quality and saving money both in terms of cheaper daily running costs, plus the retention of more than 80 per cent of the embedded carbon versus scrapping an existing vehicle and replacing with new. “In this regard, our partnership with Lunaz represents the best possible outcome for both the planet and the taxpayer. It also reflects our commitment as a council to supporting local business and employment in the area.” Meanwhile, Lunaz has committed to supporting the transition of Biffa’s existing diesel refuse trucks over an initial seven-year period to clean-air electric powertrains through its proprietary upcycling and electrification process and technology. Together the companies are working together to create an innovative solution for the transition of large vehicles to EV to reduce emissions and tackle global climate change. This multi-year production programme is expected to result in growing numbers of vehicles delivered to Biffa over the mid-term, starting later this year. It is estimated that an initial order of up to ten 26-tonne upcycled electric vehicle (UEV) refuse trucks will save up to 210 tonnes in embedded carbon. Biffa’s Maxine Mayhew, Chief Operating Officer, Collection and Specialist Services, said: “As the UK’s leading sustainable waste management company we are committed to enabling the circular economy while reducing emissions and carbon expenditure in every aspect of our business. “This long-term partnership with Lunaz is a major pillar in our collective effort to achieve our 2030 commitments. “We are proud to work with an innovative UK company to realise the transformational power of upcycling to save thousands of tonnes of embedded carbon in our transition to clean-air refuse truck fleets.” David Lorenz added: “Biffa has led from the front in pioneering more sustainable waste management practices here in the UK. We are proud to assist in delivering Biffa’s sustained commitment to leading the waste management industry’s transition to net zero. “By finding new life for diesel-emitting vehicles, we are delighted to stand together with a leading UK company in creating the potential to reduce global emissions at scale.”

Housing Growth Partnership invests £18m of equity to fund 557 new Midlands homes

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Housing Growth Partnership invests £18m of equity to fund 557 new Midlands homes
Housing Growth Partnership (HGP), the Lloyds-backed equity investor in the UK Living sector, has invested £17.7 million of equity across seven housing schemes in the Midlands since the start of 2023. HGP’s investment, alongside a diverse mix of established, local housebuilders, will enable the accelerated delivery of 557 much-needed for-sale and for-rent apartments and houses across the undersupplied Midlands region. The schemes, which are scheduled to complete between Q3 2024 and Q4 2025, comprise:
  • A sustainability-led retrofitting of the former St. Mary’s Hospital in Melton Mowbray, Leicestershire, to deliver 41 houses and four apartments, alongside Snowdown Homes
  • 37 and 166 apartments respectively in Birmingham city centre, with Rainier Developments and 10M
  • In Leicester city centre, 171 Build-to-Rent apartments, alongside Monk Estates
  • 21 homes in Sutton, Bedfordshire, representing a second transaction with Cora Homes. The scheme will be partly delivered using Modern Methods of Construction, reducing carbon emissions and accelerating construction
  • 47 new homes in Tansley Gardens, alongside Stancliffe Homes
  • Land purchase for 70 new homes in Derbyshire, in partnership with Cora Homes
The Midlands is a key region for HGP, where it has been partnering with SME housebuilders since 2016. To date is has provided c. £37 million of equity funding across 20 schemes in both the East and West Midlands, of which over £26 million has been invested over the last two years. Mike Murphy, investment director for the Midlands at HGP, said: “Against a restrictive debt financing backdrop, the requirement from regional UK developers for funding solutions that enable them to grow their businesses and accelerate housing delivery has never been more acute. “We have significant ambitions in the Midlands to continue expanding into different tenures. At the same time, these investments are aligned with our commitment to funding schemes which are delivering demonstrable environmental and social value.”

Revenue and profit rise at Belvoir Group

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Revenue and profit rise at Belvoir Group
Revenue and profit are on the rise at Belvoir Group, the property franchise and financial services group with its Central Office in Grantham. According to interim results for the six months ended 30 June 2023, revenue at the business increased by 3% to £15.9m. Meanwhile Belvoir posted a 10% increase in profit before tax to £4.4m. The period also saw the acquisition of BMA Bristol Ltd, a financial services business comprising 21 self-employed advisers and a lead-generating website. Dorian Gonsalves, Chief Executive Officer of Belvoir Group, said: “The outperformance of our business model continues to reflect the entrepreneurial nature of our franchisees and self-employed financial services advisers, who remain entirely focused on maximising the opportunities presented in all market conditions. “With 58% of their revenue derived from a strong recurring lettings market, our property franchisees have been able to offset the impact of the reduction in UK housing transactions. Meanwhile our financial advisers are mitigating the lower level of new purchase mortgages by servicing demand for remortgages and other related products from their substantial client banks. “Our resilient business model and our proven growth strategy underpin the ongoing success of the group’s performance and consequently, the Board confirms that the group is trading comfortably in line with management’s expectations for the year ending 31 December 2023.” Belvoir Group acquired MAB (South West) Ltd, a financial services business, last week.

City’s Public Health Chief leaves to take up work at University

Stuart Pearcey
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City’s Public Health Chief leaves to take up work at University
Professor Ivan Browne has left his role as Director of Public Health at Leicester City Council, to take on a new role as a Professor of Public Health at De Montfort University. Rob Howard gas taken over his role at Leicester City Council, moving consultancy in public health with work for the voluntary sector, NHS, civil service and local authorities on his CV. Having trained in the city, Rob was very keen to come back and took up the role of public health consultant in the city council in January 2020. He worked closely with Professor Browne throughout the pandemic, which saw the city dealing with the longest lockdown in the UK. He said: “Everyone involved in public health learned so much from our shared experience of the Covid pandemic – the way that the whole city pulled together was remarkable and really cemented my commitment to working for the people of Leicester. “Having worked with Ivan for many years, I know his are big boots to fill and hope my experience will stand me in good stead for this next step.” Professor Browne has accepted a role as Professor of Public Health and Social Determinants of Health at DMU and is set to join the university in the autumn.

About 150 organisations feature on list of finalists for business awards

Stuart Pearcey
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About 150 organisations feature on list of finalists for business awards
The finalists of this year’s East Midlands Chamber Business Awards have been revealed. About 150 organisations from across Derbyshire, Leicestershire and Nottinghamshire have been recognised in the 2023 edition of the annual awards, celebrating the region’s world-class business community and once again delivered in association with headline partner Mazars. The awards are split into three events for each county, and feature 14 categories, ranging from Community Impact and Excellence in Collaboration through to Excellence in Innovation and Commitment to People Development. Finalists now have a chance to state their case for winning at virtual judging panels next week. Panels will be made up of sponsors, a Chamber board member, and a representative from the Chamber’s senior leadership team. An overall Business of the Year is also selected for each county from all finalists by Mazars. Last year’s winners were Katapult (Derbyshire), Scope Construction (Leicestershire) and Copley Scientific (Nottinghamshire). East Midlands Chamber chief executive Scott Knowles said: “The resilience, ingenuity and hunger for growth within the East Midlands business community never ceases to amaze. “Our firms have faced some of the greatest challenges they will have ever encountered in recent times. Rather than become consumed by these, they have instead found new ways to succeed, whether that be through collaborating with other organisations, adopting new technologies to innovate, connecting with local communities, developing new export markets, or identifying opportunities for driving environmental and cost efficiencies. “These achievements are reflected across the line-up of this year’s Business Awards, along with individual honours that recognise the tremendous entrepreneurship existing in our region, as well as the future generation of talent among our outstanding apprentices.”
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