Derby doughnut firm sets sights on York

York city centre is set to become the first location in the UK to welcome doughnut firm Project D’s launch into the high street retail market. Derby-based Project D will be opening its first retail store in Parliament Street, York, in September. The bakery selected York as its first ‘bricks and mortar’ location due to the popularity of its online sales and attendance at its previous pop-up events in and around the city. Project D’s marketing director and co-founder Max Poynton also said he held a soft spot for York, having spent many holidays in the area as a child and, more recently, as an adult. “York is such a great fit for our brand,” said Max. “It’s such a cool place to visit, and we’ve always had massive success at the many pop-up events we’ve done there. I love going back there as often as I can, having fallen in love with the city as a young child. “Whenever we’ve visited more recently, people have often asked us when we’re going to open up a permanent retail store there. Well, it’s coming very soon – and we are so excited. We are confident that our doughnuts are second-to-none. Their premium quality is the perfect match for a premium city like York.” The new 500 sq ft Project D shop is currently being fitted-out at the former Carphone Warehouse store, at 10 Parliament Street, between HSBC and Vision Express. The company’s bright pink branding, which mirrors its best-selling ‘Homer’ doughnut – inspired by cartoon character Homer Simpson – will make the store difficult to miss. The firm is expecting to open at least three stores this year, one of which will be at Meadowhall Shopping Centre, in Sheffield. Further new stores are set to follow next year. The retail expansion is part of a long-term plan to build a large-scale presence in UK high streets and out-of-town retail centres, continuing a vision that was delayed by the outbreak of the Covid-19 pandemic. “This is the future of Project D,” added Max. “And we are massively fired-up by the prospect.” Max co-founded Project D in 2018 alongside his former school friends Matt Bond and Jacob Watts. The firm operates from a purpose-built, 11,000 sq ft bakery that currently makes about two million doughnuts per year but has capacity to manufacture up to 17 million. Project D has already partnered with major brands including Brewdog, British Airways, Love Island, Coca-Cola, Greene King and Amazon.

New report shines light on East Midlands’ fastest growing firms

Grant Thornton UK LLP has unveiled the 2023 East Midlands 200 report, which identifies and champions the region’s 200 fastest-growing private limited companies, showcasing the region’s entrepreneurial spirit.  

This is the eighth edition of the report and the first since the pandemic. It features the highest ever level of new entrants but is also populated by familiar names who continue to bring economic stability to the region. 

Covering the period from just before the Covid-19 pandemic until September 2022 the report reflects how companies achieved overall growth within this timeframe while navigating some of the challenges created by the pandemic. 

Bobby’s Foods – registered in Loughborough – was the fastest growing business in the region, followed by fellow Leicestershire firms Specialist Car Holdings and C.J Upton Holdings (Upton Steel), meaning the county secured the accolade of being home to the region’s three fastest growing firms.  

Overall, Nottinghamshire based firms dominate the list with 67 firms, with the county demonstrating its strength in industrials.  

Leicestershire had 49 companies on the list and its companies experienced the highest growth in profitability (59.8%) combined with the lowest growth in headcount (2.2%), reflecting the area’s strength in productivity.  

Elsewhere, Derbyshire and Lincolnshire experienced the highest growth in headcount with 13.9% and 12.5% respectively. 

The report revealed the region’s continued strengths in the industrials and retail and leisure sectors, with 67 and 57 companies featuring respectively.  

Nick Gillott, head of Midlands corporate finance at Grant Thornton UK LLP, saidOur report reveals the entrepreneurial nature of the region and the truly impressive resilience these exceptional businesses have shown in the face of many challenges, including Covid-19, supply chain issues and inflation.  

“EM200 is designed to celebrate the many strengths in the region. While industrials dominate in the East Midlands, firms across all sectors have shown they have the know-how and entrepreneurial spirit to build strong businesses that leave tangible economic benefits and build prosperity in their local communities.” 

East Midlands companies must not be lulled into false sense of security by latest research figures

Back-to-back months of falling numbers of East Midlands companies with late payments, as well as a drop in insolvency-related activity in the region, should not lull business owners into a false sense of security.

This is according to the Midlands branch of R3, the UK’s insolvency and restructuring trade body, and follows an analysis of data from business intelligence provider Creditsafe.

The statistics indicate that the monthly total of East Midlands businesses with late payments has fallen consistently since the 2023 high in February but, despite the drops, the figures remain high, with June registering 23,551 local companies with overdue customer invoices.

While there have been monthly fluctuations throughout 2023 in the region’s insolvency-related activity – which includes liquidator and administrator appointments as well as creditors’ meetings – the figures show a fall of 15% in the East Midlands between May and June and of 32% since the end of the first quarter of 2023 in March.

R3 Midlands chair Stephen Rome said: “These statistics may be somewhat encouraging for local companies, but we have to be realistic and stay focused on the fact that we are continuing to operate in a very testing economic environment.

“We have the significant economic hurdles of higher inflation and an increase in the cost of finance to overcome, as well as a sizeable squeeze on consumer spend. These enormous challenges will not be going away anytime soon.

“Furthermore, overall corporate insolvency levels are above those reached before the pandemic, and Creditors’ Voluntary Liquidations are persistently high, meaning that many local business owners have felt they have had no option but to close down operations before the decision was taken away from them.

“Key advice for all company directors and sole traders, therefore, is that if significant cash flow difficulties arise, it’s crucial to ask for professional support as soon as possible. There is a significant amount which can be done to rescue a business, beyond traditional insolvency solutions, if help is taken early enough.”

Proposed investment will see 1,500 new affordable homes for Leicester

Proposals have been set out for spending £150 million over the next four years to create hundreds more affordable homes in Leicester. The city council has outlined an approach involving more council house building, acquiring vacant properties, and working with partners involved in bringing forward Extra Care and supported living schemes as a way to create much-needed housing. It also looks at potential development sites for inclusion in future local plans. The work is part of the council’s commitment to deliver 1,500 new council, social and extra care homes by 2027. The report detailing the work goes to the council’s housing scrutiny committee at the end of this month. Work is already underway on a number of schemes to create desperately-needed housing stock, to meet the city’s growing need for decent-quality homes. The first phase of house-building work has already seen sites redeveloped in the Crown Hills, Humberstone, Netherhall, Abbey and Beaumont Leys areas. More than 270 further newbuild homes are already in the pipeline by 2025/6 at sites including the former Saffron Lane velodrome, Stocking Farm, Lanesborough Road, the former school site at the Newry in Southfields and the site of the former Forest Lodge Education Centre in New Parks. Hundreds of existing homes could also be acquired to provide quality affordable homes and social housing between now and 2026/7, using a combination of funding methods, including Right to Buy Receipts, Home England funding and bids for cash from the Government’s Levelling Up programme. One such scheme is the Zip Building, in Rydal Street, West End, which will transform the former student accommodation block into 58 one-bedroomed flats. It is hoped that the former bus depot at Abbey Park Road and a site at Loughborough Road will both be redeveloped as housing, while additional Extra Care and supported living homes are due to be developed at sites including former Exchange at Eyres Monsell. Some of the proposed developments outlined in the report are dependent on the adoption of the latest Local Plan, which sets out the council’s vision and objectives for growth of the city over the coming years. If the proposals were to all be delivered they would enable the creation of around 1,500 much-needed affordable homes. Leicester assistant city mayor for housing and neighbourhoods, Cllr Elly Cutkelvin, said: “We’ve set out an ambitious programme of creating new housing in order to try to meet the city’s urgent housing needs. “Building new council houses to replace those lost to the Right to Buy scheme over the last few decades is an essential part of that, as well as bringing other existing buildings into use as accommodation. “New homes have already been completed at some sites and work is underway at others. The opportunities presented in the latest local plan would enable us to meet our commitment to creating additional homes. “This report sets out what we think can be achieved over the next four years, how it will be funded and also how we can work with other partners who are bringing forward their own supported living and Extra Care homes, to ensure we are creating a range of suitable, good-quality affordable housing which we desperately need.”

Multi-million pound order for Worksop manufacturer bound for Brazil

Worksop-based wire rope manufacturer Brunton Shaw is celebrating the successful departure of a multi-million pound order, as two 3.5 kilometre, 329 tonne Ocean Max cables are shipped to Brazil. Manufactured at the Sandy Lane factory in Worksop, the Ocean Max cables are a best in class steel wire rope that will be used on pipe laying supply vessels in the Atlantic Ocean, off the coast of Brazil. Transported on purpose built spools, standing over 4.7 metres high, the production of the Ocean Max cables is a true international trade collaboration. The raw material steel wire is delivered from a partner factory in India and manufactured in a purpose built, half a kilometre long winding shed in Worksop, taking advantage of Brunton Shaw’s 130 years of industry experience. The finished products are then shipped to market from the Port at Goole. Somnath Saha, Managing Director at Brunton Shaw UK, said: “We are delighted to see the successful departure of this multi-million pound order to Brazil, highlighting an international trade partnership spanning three continents. “I am incredibly proud of the roots Brunton Shaw has in the local community and that best in class, British manufacturing is taking place here in Worksop, for a global market. We are grateful for the support of our local partners, including Bassetlaw District Council and look forward to fulfilling many more orders from our Worksop factory.” Cllr James Naish, leader of Bassetlaw District Council, said: “Bassetlaw is home to world leading industry and this latest export from Brunton Shaw is building on the international trade that takes place in our district. “Bassetlaw is a place that likes to do business and we are proud that companies like Brunton Shaw are able to expand their operations and deliver world class products that are part of multi-national collaborations. “This is another example of the positive growth that is taking place across our district with other multinational investments including the flagship Fusion project at West Burton.” Marco Longhi MP, Prime Minister’s Trade Envoy for Brazil, said: “I am delighted to see these exports to Brazil as the Prime Minister’s Trade envoy to the country. There are huge opportunities there that we do not immediately think about, but Brazil is 35 times the size of the U.K. and three of its States have a GDP to qualify for G20 status. “My focus has been to remove market access barriers and the recent announcement of a Double Taxation Agreement is a very big achievement so that companies will only be taxed in one country.” Brendan Clarke Smith, Member of Parliament for Bassetlaw, said: “It’s great to see British companies taking full advantage of the new opportunities that have arisen for trade outside of Europe and I’m particularly proud to see a local company from Bassetlaw doing exactly this. The market in Brazil is a particularly exciting one, which has huge potential for further investment and growth.”

Alumasc to acquire ARP Group

Alumasc, the Kettering-based sustainable building products, systems and solutions group, has agreed to acquire Leicester-based ARP Group, a manufacturer and distributor of specialist metal rainwater and architectural aluminium goods. The deal, worth up to £10m, comprises an initial £8.5m, with additional consideration, capped at £1.5m, payable subject to ARP’s performance over the two years ending November 2024. ARP marks the first acquisition by Alumasc since 2018 and demonstrates the group’s strategy to supplement organic growth through earnings accretive acquisitions. ARP was established in 1987, and operates from four facilities totalling over 47,000 square feet, with a team of over 70 experienced staff. ARP’s consolidated unaudited results for the year ended February 2023 showed revenue of £10.8m and adjusted EBITDA of £1.3m. Consolidated net assets were £4.5m. Paul Hooper, Chief Executive of Alumasc, said: “We are delighted to welcome ARP, along with all our new colleagues to the Alumasc Group. This acquisition aligns with our strategy of accelerating our organic growth with complementary bolt-on acquisitions. ARP will broaden the group’s existing product offerings, and augment the routes to market for both businesses.”

Yü Group accelerates strong trading momentum

Yü Group, the independent supplier of gas, electricity, meter asset owner and installer of smart meters to the UK corporate sector, is expecting to report results substantially ahead of current market expectations following a strong first half. In a trading update for the six months ended 30 June 2023, the company hailed accelerating revenue growth and record monthly bookings of £51.3m, up 109% on 2022.

Bobby Kalar, Chief Executive Officer, said: “We are delighted to have accelerated our strong trading momentum and our growth continues to surpass expectations. We continue to deliver strong financial performance as more customers lock in the benefit of a softening commodity market.

“Alongside this growth and underpinned by our ‘Digital by Default’ platform and Smart Meter installation business we see revenue and profitability growth in FY 23 and beyond. We are as excited as ever about the future of Yü Group and remain focussed on exceeding our previously stated £500m revenue target and increased 5% EBITDA margin.”

Games Workshop sees eighth year of sales and profit growth

Games Workshop has closed is financial year having delivered eight consecutive years of group sales and profit growth. According to the Nottingham-based company’s annual report for the 52 week period to 28 May 2023, revenue hit £470.8m, growing from £414.8m last year. Pre tax profits meanwhile reached £170.6m, up from £156.5m. Kevin Rountree, CEO of Games Workshop, said: “We finished the year having delivered eight consecutive years of group sales and profit growth – in the period we reported the highest level of sales and the most profit we have generated since flotation 29 years ago. Our international team has been sensational again, thanks to you all.”

Lincolnshire horticultural experts secure multi-million-pound refinancing package

Lincolnshire horticultural experts, Bridge Farm Group, is set to enter a new phase of growth after securing a multi-million-pound refinancing package. Bridge Farm, based in Spalding, produces ornamental plants and cut flowers. The business grows more than 70 million plants and flowers each year in 60-acres of low-carbon, water-efficient and biomass-heated glasshouses. The business sells to UK-wide supermarket and DIY retailers. In addition to its horticultural operations, Bridge Farm’s specialist bioscience division is a leader in plant research and development. The business’s team of experts are focused on the identification, cultivation, and extraction of high value functional and active molecules from plants. Established in 1988, Bridge Farm has an annual turnover of £30 million and has a workforce of 160 employees. To support Bridge Farm’s growth ambitions, the FRP Corporate Finance Debt Advisory team, led by partner Tom Cox and manager Rory Denison, ran a competitive debt raising process to identify a financing partner to support the next phase of its growth plans having recently completed investment in a new Bioscience facility. Having secured two fully credit backed offers to refinance the group, FRP subsequently supported management in the detailed negotiation of terms to completion of the financing. The multi-million-pound refinancing package will support Bridge Farm’s ongoing expansion and enable it to continue to consistently produce its range of plants and cut flowers at scale while also penetrating the market for plant-derived extracts and molecules. Tom Cox, partner at FRP Corporate Finance, said: “This refinancing facility provides much greater flexibility to Bridge Farm in its new financing arrangements and has reduced its cost of capital. “The transaction successfully delivers more favourable terms to the business, whilst also providing the group with additional capital to help deliver the ambitious growth plans within its bioscience operations.” Louise Motala, Managing Director at Bridge Farm Group, said: “This deal represents another key milestone for Bridge Farm as we continue to expand and build value in the business. “It is essential that we continue to invest to maintain our expertise in both horticulture and bioscience and this new facility affords us greater flexibility to explore wider routes to growth. “The advice and support we received from FRP’s Debt Advisory team was outstanding and their expertise ensured a smooth transaction from start to finish.”

New Institute of Technology to open in Derby

The East Midlands continues to advance as a Major UK Tech Learning Hub with the creation of new technological facilities at Derby College Group (DCG). The East Midlands Institute of Technology (EMIoT) is a partnership between Derby College Group, the University of Derby, Loughborough College, and Loughborough University, with the aim to deliver a world class, research orientated, employer-led learning factory, founded on clean growth and digital delivery. The EMIoT is working closely with global powerhouse employers, including Rolls-Royce, Uniper, Toyota, National Grid ESO, Alstom, Fujitsu, and Bloc Digital to ensure programmes deliver a workforce with the future ready skills. Supported by Department of Education funding, the East Midlands Institute of Technology will be open in September 2024, with a college community of 2,000 learners by academic year 2027.The new facility as part of the EMIoT will be located at the front of the Stephenson building on the Roundhouse site in Derby. Mandie Stravino OBE, CEO of Derby College Group (DCG), said: “By working together across the FE and HE sectors, the development of the IoT will broaden opportunities for both young people entering the world of work and adults looking to re-train or upskill mid-career. And the new facility at DCG will greatly aid this. “It will also open up more accessible routes to higher education for students who may not have previously considered this route to expand their immediate and future career options.” Planning has been secured and a workable budget has been supported subject to approval by the Department for Education.The works on site are scheduled to commence in August, subject to all approvals. This development is in addition to the recently announced new automative training facilities.