Nottingham-headquartered Phenna Group has made its fifth acquisition of 2023 with Cansford Laboratories, cementing a strong start to the year whilst augmenting its rapidly developing Health Sciences platform and adding complementary services to existing offerings. Phenna aims to invest in and partner with selected niche, independent Testing, Inspection, Certification and Compliance (TICC) companies that serve a variety of sectors, ensuring customers’ peace of mind by delivering first class assurance & consultancy services. Formed in 2010 and accredited to ISO 17025:2017, Cansford Laboratories has established its position as a fast, reliable, and innovative leader in high quality drug, alcohol, and steroid testing. Its founders pioneered hair testing more than 30 years ago, dedicating their careers since to improving and expanding the possibilities of drug and alcohol testing. Today, its methods are used by laboratories across the globe. From a base in Cardiff, it offers a UK-wide testing service for individuals and organisations in family law, social care, criminal law, education, and the workplace. Cansford’s team of experts offer hair, oral fluid, nail, and dry blood spot testing with related services including collection and expert witness support. John Wicks, CEO of Cansford Laboratories, said: “We are thrilled to be partnering with  Phenna Group. Having been through acquisition processes in the past, I fully appreciate how challenging they can be. Since first meeting Paul and his team, they acted very professionally, ensuring a smooth and commercially focused process. “Our interactions have been very straight forward, and I’m convinced that Phenna will provide exactly the support we need to help us deliver our exciting future growth plans. Cansford Laboratory have a great team culture and securing a partner that valued that was paramount in our decision making. I look forward to working with the Phenna Group team into the future.” Paul Barry, Group CEO of Phenna Group, said: “Cansford Laboratories is a business that we’ve admired for a while, and I’m absolutely delighted that John and Lolita have decided to partner with us. From our early engagements, it was very obvious our values and cultures aligned and that together, we could continue to build on their already impressive track record. “This deal augments our developing health sciences division and I look forward to welcoming their talented team into our Group and to working with them all, to deliver continued success for the business.” Phenna Group were advised by RSM and Avonhurst. Cansford Laboratories were advised by Lexington Corporate Finance and Berry Smith LLP. Thomas Edwards, a director at Lexington Corporate Finance, said: “It came as no surprise to us that there was significant interest in Cansford from both trade and private equity buyers, considering the organisation’s impressive reputation as a leader in high quality drug, alcohol, and steroid testing. “The business has scaled up considerably since its formation in 2010, thanks to the leadership of John Wicks and Lolita Tsanaclis, so it needed a buyer that matched this ambition. From working with Cansford it became clear that Phenna was the ideal fit. “This transaction builds on Lexington’s strong credentials in the healthcare and TICC sectors, increasing the total value of deals Lexington has advised on in 2023 to almost £150 million.”

Linkline Transport Limited, a family led warehousing and logistics business based in Wellingborough who boast clients such as Primark and GXO, has been provided with a facility worth £12.5 million from Shawbrook to fund their ongoing growth. Founded in 1993, Linkline offers logistics, haulage, warehousing, and pallet network services across the UK. The business has grown exponentially in recent years under the leadership of Managing Director, James Bowes who assumed the position in 2021. Under James’ leadership the company expanded into the warehousing sector and is now looking to accelerate its growth and move into further sites.

Shawbrook’s hybrid funding package worth a total of £12.5 million, includes a £5 million Confidential Invoicing Finance loan to support working capital requirements. In addition, a structured cash flow facility to support expansion plans is included within the deal. The funding allows Linkline to enhance their current services as well as providing them the headroom needed to explore expansion into additional sites in the near future. Dave Hilton, partner at Mazars conducted the Debt Advisory process on the deal. Matt Ingram at Squire Patton Boggs acted for Shawbrook and Dave Easdown of Knights Legal acted for Linkline. The Financial Due Diligence was completed by Knights Transaction Services. James Bowes, Managing Director of Linkline Transport, said: “Linkline at its heart is a family-owned enterprise and having grown up with the company it is exciting to see the growth we have experienced. Shawbrook has been a fantastic partner throughout the process and ultimately offered us a package that could not be matched in its scope and flexibility. “I greatly look forward to continuing to drive the business forward, with a particular focus on our high-quality warehousing facilities and am pleased to be able to do so with the support of Shawbrook.” Dave Hilton, partner at Mazars, said: “I have had a great relationship with both Shawbrook and Linkline for some time and it was a real pleasure to bring these parties together to facilitate this deal. “Linkline is a promising enterprise that has seen an exceptional level of success in recent years. With the leadership of James being coupled with the funding from a proven lender like Shawbrook, I have no doubt the business will continue to go from strength to strength.” Daniel Martin, senior director at Shawbrook, said: “Linkline are a strong family led enterprise who have been growing at a phenomenal rate in the last few years and we believe this additional funding will help them build on the fantastic platform they already have. “James has been a driving force behind the incredible growth they have experienced. His leadership has taken the business from strength to strength, and we look forward to supporting him as the business continues to expand.”

Expressions of interest are open for a capital grant scheme which will help rural businesses in North Kesteven invest in sustainable growth. The Rural Business Grant is specifically aimed at supporting new and existing rural businesses to develop products, services and facilities of wider benefit to the local economy. Possible examples include farm businesses looking to diversify income streams, growth in the visitor economy including visitor accommodation, and investments in power or energy efficiency which will make a positive contribution to the District reaching net zero. The grant is being delivered by North Kesteven District Council for DEFRA, under the Rural England Prosperity Fund. The first window for Expressions of Interest is open from now until Thursday 1 June. Digital Expression of Interest forms can be found online at www.businessnk.co.uk There’ll then be a first call for full applications, and this will take place when the Expressions of Interest window has closed. North Kesteven District Council Economic Development Manager Alan Gray said: “We’re inviting rural businesses in North Kesteven to register their interest now in the Rural Business Grant, if they have a project they think may be eligible. “These early indications will allow our grants team to make initial assessments of eligibility and provide help where needed from the start, including ensuring applicants are given the time and support necessary to refine and develop investments in line with the objectives of the Rural England Prosperity Fund and meet the various requirements for evidence. “It will also help ensure that proper consideration is given to projects that may require planning permission, or any additional funding or legal matters which need to be concluded within the time frame set out for the delivery of projects.” The minimum grant available through the Rural Business Grant is £5,000, and depending on the project and investment needed applicants may be required to provide match funding. The Rural Business Grant will run until all funds have been awarded, and all projects must be deliverable before 31 March 2025. Full details on eligibility criteria are available with the Expressions of Interest form online. North Kesteven’s Rural England Prosperity Fund allocation is an addendum to the UK Shared Prosperity Fund, to help support rural areas in England and the two Levelling Up Fund missions of improving living standards and growing pride of place. The Rural Business Grant has received £450,000 from the UK Government through the UK Shared Prosperity Fund.

Chris Pole and Ryan Grant from Interpath Advisory have been appointed joint administrators of Alliance Transport Technologies Limited. Operating from two sites in Clowne (Derbyshire) and Featherstone (West Yorkshire), the company specialises in the remanufacture of electronic components, providing a complete aftermarket solution to the commercial vehicle, bus and coach markets. In recent months, the company has faced a number of challenges, including delays to the launch of its new ESS product. The impact of these factors on trading meant that the company required additional investment to support the business moving forward. After exploring their options, the directors took the decision to seek the appointment of administrators. The joint administrators have retained the majority of the company’s 51 employees to enable operations to continue for a short period while they explore the possibility of a sale of the business and assets. Unfortunately, however, 15 members of staff have been made redundant. The joint administrators will be providing support to those impacted as a matter of priority. Chris Pole, Managing Director at Interpath Advisory, said: “Alliance Transport Technologies has been operating for 30 years, and in recent times, has pioneered the use of remanufacturing electronic components to allow commercial vehicle operators to decarbonise the maintenance of their fleets. “Our focus in the coming days will be to explore the potential sale of the business and its assets, and would invite any interested parties to contact us as soon as possible.”

Light Science Technologies Holdings plc, the controlled environment agriculture (CEA) technology and contract electronics manufacturing (CEM) group, is looking ahead “with a certain degree of confidence” after “a challenging period” for the business. Newly released audited results for the year ended 30 November 2022 show that revenue  grew by 10.5% to £8.17m, from £7.39m in the year prior. However the company posted a loss before tax of £2.72m. The results come after (post-period) Light Science Technologies raised £1.59m gross proceeds, via a placing, subscription and retail offer, which is to be utilised for group working capital purposes and continued product development and intellectual property protection within the CEA division.

Simon Deacon, CEO of Light Science Technologies Holdings plc, said: “There’s no doubting that this was a challenging period for the company. However the progress made during the year, as we expanded our routes to market across both divisions, means that we can look forward with a certain degree of confidence.

“We have a strong and growing product range providing solutions for a variety of customers and a very healthy pipeline of opportunities. We remain innovative and at the forefront of the sector and are excited about the significant market opportunities. 

“We believe that our energy saving products range will drive new business while the continued food shortages will enable us to showcase our solutions, offering extended season growing.

“Importantly, global trends continue to drive the need to improve food security and, as such, we aim to harness demand and accelerate growth and profitability. Furthermore, as producers seek to navigate the changing landscape, indoor farming is likely to be a key component in tackling ongoing challenges and boosting homegrown food supply. 

“We are reassured by the continued support from existing and new shareholders who participated in the post-period fundraise. The funds raised will help us build on the strong momentum in our target markets. We very much look forward to further extending our reach as we invest in the business – and we believe this will result in increased revenue and margin growth. 

“We see demand trends as a validation of our vision and very much look forward to working with existing and new clients as we position ourselves at the forefront of Agri-tech solutions.”