Derby-based Watermark gets £250k loan to upgrade technology
Maven Capital Partners is to lend £250,000 to Derby-based water and waste solutions provider Watermark Systems to upgrade its technology and systems, and to buy materials.
With clients including Severn Water, Buxton Water, and Veolia, the company was founded in 1984 by Mike Roberts and Peter Swindell, and provides engineering solutions exclusively to the UK’s waste energy and water/sewage treatment sector. It provides customers with the latest in GPS scanning, 3D modelling and design, pipework installations and structural steel access equipment. The firm also supplies bespoke consultation services, with quality and health & safety considerations always a key priority.
Watermark works closely with digital design specialist Novum BIM to deliver CAD services, providing spatial design, fire strategy and pre-fabrication models for safety and viability review. This close relationship helps to increase efficiencies in Watermark’s installation times and reduces any need for potential rework, driving commercial sustainability and customer success.
Watermark MD Mike Roberts said:“There was great support from Graham Hall and the team at Maven. Their very thorough due diligence process enabled us to assess and confirm our financial requirements with confidence. Watermark’s ability to take advantage of an uplift in sales is greatly enhanced by our improved cash flow position. With turnover increasing, recruitment of new employees is now underway and our success thus far has us excited for the company’s future.”
Jonathan Lowe, Investment Director for Maven, said: “We are delighted to be able to help Mike and his team push forward with their critical growth plans through a MEIF Recovery Loan Scheme facility to close a working capital gap. Watermark is a major player in this environmentally important sector, which has a significant impact on both the local area and economy. It is a well-run and already successful SME and our fresh funding commitment will enable the firm to further enhance its service offering.”
Nottingham-based Roadgas ready to expand following acquisition
Mercuria Clean Energy Investments (MCEI), along with Pretoria Energy Group, have acquired Nottingham-based Roadgas.
Roadgas owns and operates several bio-CNG and bio-LNG stations in the UK and the acquisition will offer a new gas-fueling partner to fleet managers working to decarbonise operations. The business will continue to be known as Roadgas Limited.
Roadgas offers customers a fully integrated package to decarbonise their fleets, constructing bespoke, on-site fuelling solutions with UK-produced biomethane. The group plans to fuel more than 2,500 gas-fuelled trucks annually within five years, reducing the heavy goods vehicle sector emissions at a critical moment in the energy transition.
Roadgas has built 30 LNG, CNG, and LCNG fuelling stations in the UK and operates a number of truck and bus gas fuelling stations around the country. Roadgas’ build and operational capability will be bolstered by the financial and trading power of Mercuria and the certainty of supply of UK-produced waste-based biomethane from Pretoria.
“Pretoria is committed to producing a significant and rapid increase in wastebased biogas volumes by 2028 compared to 2021 as part of our growth strategy,” said Steve Ripley, MD. “This acquisition will advance our ability to deliver biomethane from our AD plants in the UK directly to haulage fleets in the UK, allowing fleet operators to follow their fuel supply from the field to their vehicle’s tank.”
“Mercuria is delighted to have acquired Roadgas together with Pretoria,” said James Cooper, Mercuria’s head of European Origination, Environmental Products.
“Decarbonisation of industry and transport is core to Mercuria’s commitment to global Energy Transition. The UK lacks scale in waste-based biomethane production and lags behind other European markets in the substitution of diesel for gas.
“Combining biomethane supply from Pretoria with Roadgas’ experience and reputation for design, engineering and operation of LNG and CNG refuelling stations will provide a much more transparent solution for UK truck and bus operators looking to follow their fuels’ journey from feedstock to pump.”
Roadgas MD David Rix said: “Working with Mercuria and Pretoria will allow us to fulfill the expansion plans we’ve had for the company since 2018. Through knowledge transfer and sharing of best practices, the newly expanded business will provide an end-to-end solution for fleet owners and managers.
“We look forward to a very successful partnership and to delivering more green gas refuelling infrastructure projects on behalf of our clients.”
Women in biotech come together for inspiring event
Over 70 women working in biotech came together for an energising and inspiring event: ‘Empowering Women in Biotech’ which was held in Loughborough, on 18 April.
The event set out to help women, wherever they are in the career path, realise their future goals and generate a wide network of individuals working in biotech.
Co-hosted by Charnwood Molecular and Charnwood Campus, like-minded individuals working in the biotech and life science sector, and those looking to pursue a career in this industry, were brought together to share their own experiences.
A heartfelt and inspiring keynote address by Gosia Khrais, commercial and marketing director of Charnwood Campus, set the tone for the day. This was followed by an insightful discussion with Isabel Webb, head of technology strategy at the Department for Science, Innovation and Technology. Isabel outlined her route from lab bench to government including her motivations for having scientists at the heart of policy development.
The event also included a full programme of panels and networking, covering topics such as ‘Female Powerhouse Establishment’, ‘Diversity in The Workplace: The Importance of Having A Diverse Workplace’ and ‘Unlocking Investment Opportunities’.
“We were delighted to be involved and have facilitated such an insightful and well-attended event at our site,” said Shona Farmer, marketing manager of Charnwood Molecular. “The day was both inspirational and educational, bringing together so many talented individuals in Biotech. We were able to share our experiences and find incredible inspiration from all those involved,” she added.
The event was a collaborative effort organised in partnership with Bionow, IBioIC, Potter Clarkson, SynBioBeta and WiSB (Women in Synthetic Biology).
HMRC move to dip into crypto and digital wallets to pay tax bills
The government is considering granting HMRC new powers to recover unpaid tax directly from digital wallets.
The proposal is one of a number of measures that are being considered as part of plans to modernise tax debt collection from non-paying businesses.
While the overwhelming majority of people and businesses in the UK pay their tax on time, the latest figures from HMRC show that there is around £48bn in tax owed to HMRC but remaining unpaid. According to HMRC, the vast majority of this tax debt is owed by small and medium sized businesses.
Part of the challenge facing HMRC is the recent growth in e-commerce models which makes it harder to collect taxes from businesses that don’t conduct their business in the UK or don’t have a presence or physical assets here. The enforcement officer or bailiff turning up ‘on the doorstep’ is not an option for many virtual offices or digital only businesses.
The government intends to focus an initial consultation on the following 4 proposals:
- extending Taking Control of Goods powers to those with no UK assets or no assets at a principal place of business, so that HMRC can seize assets at other premises where their trade is not conducted such as third party warehouses.
- extending Taking Control of Goods powers to in-house leasing
- extending Direct Recovery of Debt powers to include Digital Wallets
- security deposits from businesses who are repeatedly, intentionally non-paying
“Good start to 2023” for Ibstock
Ibstock, the manufacturer of clay bricks and concrete products and solutions, says its has made “a good start to 2023 despite a subdued demand environment in both the residential new build and RMI markets.”
According to a trading update for the first quarter of 2023, EBITDA was marginally ahead of the Leicestershire-based company’s expectations, which Ibstock says reflects “disciplined management of capacity and cost, combined with good commercial execution.”
Meanwhile, Ibstock’s growth initiatives – the Atlas, Aldridge and Nostell capital investment projects – are all “progressing well.” Ibstock Futures also continues to build its market offering, with growth during the first quarter in line with expectations.
Joe Hudson, Chief Executive Officer, said: “We’ve made a good start to 2023, with EBITDA marginally ahead of our expectations, underpinned by strong operational discipline and good commercial execution. Market conditions were subdued through the early months of 2023, although we expect this to improve as the year progresses.
“Our major organic growth investments remain on track, with our pathfinder factory at Atlas expected to deliver the UK’s first carbon neutral verified bricks by the end of the year, and Ibstock Futures continuing to build capability and scale.
“We remain confident in our ability to respond effectively to trading conditions, and to deliver a full year performance in line with market expectations.”
Loughborough tech enabled confectionery distributor and wholesaler sold
Browne Jacobson’s corporate dealmakers have acted for the shareholders of World of Sweets and Bobby’s (IBG) on the sale of its majority stake to A&M Capital Europe (AMCE) – a move which will support the group’s growth ambitions and further its digital strategy.
IBG which is headquartered in Loughborough, is a leading brand owner and tech-enabled distributor of confectionery, baked goods and savoury snacks and also the portfolio company of Sculptor Capital Management Inc. The group supplies its products to clients in the convenience retail, speciality, wholesale and grocery channel space. It offers a multichannel and tech enabled distribution operation and works with a customer base of over 60,000 and has a brand portfolio comprising World of Sweets Bobby’s, Bonds of London, Kingsway, Crazy Candy Factory and Candy Realms. It is also internationally partnered with Pez, Nerds and Tootsie. AMCE is a pan-European, London-headquartered middle private equity investment firm. It specialises in providing financial, strategic and operational support and advice to its client portfolio of growing European businesses. Browne Jacobson’s Nottingham-based corporate partner Nigel Blackwell led on the deal, alongside senior associate Sam Sharp and associate Shania Sood. Partner Sandra Wong advised on the private equity elements whilst partner Paul Hill and senior associate James Busby gave banking advice and partner Andrew Noble advised on the tax side of the transaction. Nigel Blackwell said: “IBG’s has a strong offering in the confectionery and snacking distribution and wholesale market, a diverse client base spanning the UK and overseas and a clear and robust strategy to further grow their award winning and popular brand portfolio and digital distribution capabilities, so it is evident why AMCE wanted to partner with them. “We are pleased to have supported them in this move and are excited to see Wayne and the business push on with its strategic growth plans with AMCE’s backing through a series of key bolt on acquisitions which will further strengthen the group’s market position.” Wayne Beedle, IBG CEO, added: “We are all incredibly excited about the next phase of our growth journey. Sculptor has been hugely supportive over the last five years, enabling the business to focus on serving our customers’ needs. “As the largest distributor, importer and wholesaler of confectionery in the UK, we take pride in being great partners for our suppliers and customers. With AMCE as our new equity partner, we will further invest in our award-winning brands and by supercharging our digital capability, we will serve our customers as they want to be served. “We were pleased to have had Browne Jacobson work with us on this transaction. Not only are they specialists in the private equity space but they really know their stuff around the confectionery food and drink industries which was essential to the successful close of this deal.”Games developer makes German acquisition
astragon, a subsidiary of Team17, the games developer with offices in Nottingham, has acquired German development studio, Independent Arts.
Independent Arts has been a trusted third-party development partner of astragon for a number of years and has a strong existing relationship with the business. The acquisition brings a team of experienced ‘working simulation’ developers in-house to support current owned IP development and accelerate new IP that will launch in future years.
Supported by the wider studio knowledge within Team17, this is the first 100% owned studio acquisition by astragon.
Debbie Bestwick MBE, Chief Executive Officer of Team17, said: “This adds further conviction to our belief in astragon, showing they were a key part of our group’s performance in the first year within Team17 following its acquisition in 2022 and will prove to be an equally important part of our growth journey over the coming years.
“Led by Julia and Tim, they are an exceptional team and one of the world’s best when it comes to producing original, highly creative IP in the hobbyist ‘working simulations’ sector of the games market, as evidenced by their successful Fire, Police, Bus and Construction simulation titles.
“This is an important opportunity for the astragon team to accelerate its pipeline of new IP and add experienced, fully owned development capability to its operational footprint.”
Underfloor heating company gets cosy in new home
Commercial property agency Rushton Hickman have completed the sale of a modern two-storey office building on Granary Wharf Business Park in Burton on Trent.
Granary Wharf Business Park is an established commercial location situated on Wetmore Road. The semi-detached premises comprised 2,500 sq ft over two floors and included six parking spaces.
The purchaser, TUS Holdings Ltd, who trade as Trade Underfloor Supplies, specialise in the design and supply of underfloor heating and renewable energy heating systems for new and existing homes. The company’s systems have featured on Channel 4’s Grand Designs and Restoration Man. TUS Holdings Ltd are focused on the environmental benefits and offer free training courses for installers and developers.
Agency surveyor Taylor Millington said: “The team at Rushton Hickman are delighted to have recently sold Unit 21 Granary Wharf to Trade Underfloor Supplies who are looking to expand their office space in Burton on Trent.”
Graham Bancroft, director at Rushton Hickman, said: “Despite the ongoing uncertainty surrounding the office market in general, this disposal shows that there is still strong demand for good quality space in well established locations such as this.”
East Midlands business confidence rises to second highest in UK
Business confidence in the East Midlands rose 18 points during April to 41%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the region reported higher confidence in their own business prospects month-on-month, up ten points at 46%. When taken alongside their optimism in the economy, up 27 points to 36%, this gives a headline confidence reading of 41%.
East Midlands businesses identified their top target areas for growth in the next six months as evolving their offer (42%), diversifying into new markets (42%) and introducing new technology (39%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.A net balance of 28% of businesses in the region expect to increase staff levels over the next year, down five points on last month.
Overall, UK business confidence climbed one point to 33% in April. Every UK nation and region reported a positive confidence reading and six out of 11 regions recorded a higher reading than last month. London reported the highest levels of business confidence at 47% (up nine points month-on-month), followed by East Midlands (up 18 points) and North East (up three points), both at 41%.
Firms’ outlook on their own trading prospects remained strong at 39% for the second consecutive month, and a net balance of 27% of businesses reported plans to increase their staff levels, up two points from March.
Ahead of the three Bank Holidays in May, firms’ optimism in the overall economy increased five points to 28% – the highest reading since June last year.
Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “It’s fantastic to see the region’s businesses mark a third consecutive month of rising confidence, and to see so many firms planning to invest in new technology and explore new markets. Investments in these areas will contribute to driving growth and help give businesses the edge they need to differentiate themselves.
“For those businesses focused on growth, reviewing working capital needs, and unlocking finances tied up in inventory or stock with asset or invoice finance, can be helpful for freeing up money to invest back into the business.”
Business confidence in the service sector rose to 36% this month, the highest since May 2022, with sentiment particularly upbeat in hospitality and financial services. While the other sectors saw slight decreases, construction remained strong at 43% while manufacturing and retail remain above last year’s lowest levels.
Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “The recent increases in business confidence indicate that the economy entered the second quarter of 2023 with positive momentum.
“The revival in the demand for labour, which improved for the fifth consecutive month, may account for the modest uptick in wage expectations for the next twelve months.
“While firms’ concerns on overall cost pressures have eased, there is little evidence that pricing expectations have declined which may impact wider pricing decisions for the remainder of 2023.”
Streets Chartered Accountants covers directors remuneration and more in new news roundup
Streets Chartered Accountants covers directors remuneration, its podcast with the co-founders of Cognito, provides useful tax information, and more in its new news roundup.
Directors remuneration – salary versus dividend, food for thought for 2023/24For many years, director shareholders in limited companies have often been advised to take a small salary, at a rate to retain access to state pension credits and other benefits, and then supplement their income using dividends. Looking at the individual and the company together, this is a very tax effective route.
Podcast: Sisters with more than a thought when it comes to an enterprising ideaThis episode of The Streets Sessions features sisters Ellie and Zara Pickles, co-founders of Cognito, a contemporary Sushi and Japanese restaurant and bar. It explores what led them to open Cognito, the challenges they’ve faced, the role and support of the wider family and their exciting vision for the future.
Tax Rates and Allowances 2023/24Streets’ handy format Tax Rates and Allowances card is now available as a PDF online. For a printed copy please email info@streetsweb.co.uk
Tax Return Checklist 2023Download Streets’ tax return checklist which, whilst not exhaustive, does include the majority of the information required in connection with the completion of your tax return.
SmartMoney – March/April 2023
SmartMoney is the bi-monthly magazine from Streets Financial Consulting plc, Streets Chartered Accountants’ independent financial planning arm, full of news and helpful information on personal financial planning.
