Investment means TEK Seating is a cut above the competition
Leicestershire-based TEK Seating has invested £125,000 in new machinery to satisfy rising demand and take additional control of its production process.
Increased competition for the vehicle seat manufacturer was also a driver to expanding its in-house capabilities for further growth. The investment has been supported with a grant* of £25,000 from the LLEP Business Gateway Growth Hub.
TEK Seating, part of TEK Group with TEK Military Seating and SitSmart, is the UK’s biggest independent supplier of vehicle seats based in Rearsby, Charnwood. The business began in 1972 and makes seating for commercial transport such as HGVs, taxis, buses and trains.
The 15,000 sq ft site includes an R&D department to create its own seat designs and work on trim development. There’s another site in Tunbridge Wells, though manufacturing is all done at Rearsby which also includes orthopaedic office and military seating as well as high-end seat trims for Morgan cars and Ultima sports cars, to name but a few.
Instead of outsourcing for their large volume work, TEK Seating’s new automated cutting machine now means it can all be done in-house.
Sean Magee, operations director, explained: “We were subcontracting out elements of production – the cutting of leather hides or other material – together with the laminating process where foam is added to the back.
“We’d buy the hides and have them sent to us. We’d have to check them, send them to a third party, have them cut and laminated. They would be sent back to us, checked again and then we’d be able to build the seats. This was a fairly time-consuming part of the manufacturing process.”
Apart from the saving in transport costs and reduction in its carbon footprint, which is significant, it means its manual cutting technicians don’t have to work on large volume jobs anymore, which took a long time. Thanks to the new machinery, their time will be better spent on higher-skilled, lower-volume cutting. The new machine also means cutting is now 30 times faster, saving around 10 days in the whole process improving efficiency, productiveness and competitiveness.
Sean added: “We’ve also invested in a laminating machine. We can keep it all in-house, so we can manage the quality, lead times and production much better. Crucially this investment means we’ve safeguarded two jobs and created two more.
“Using the Business Gateway was a straightforward process. We were guided through everything by our Business Adviser Juan Pardo, who was professional and knowledgeable. The Business Gateway provided all the support we could have hoped for.”
TEK Seating is on an upward trajectory and plans to expand the current premises by another 12,000 sq ft in the year ahead.
To find out more about support from the Business Gateway visit www.bizgateway.org.uk, call 0116 366 8487 or email growthhub@bizgateway.org.uk
The Business Gateway Growth Hub service is part-funded by the European Regional Development Fund and delivered by a partnership that includes Leicester City Council, Leicestershire County Council, East Midlands Chamber (Derbyshire, Nottinghamshire, Leicestershire) and the Leicester and Leicestershire Enterprise Partnership Limited (LLEP).
*grant is now closed for applications, free business advice still available.
Housebuilder completes construction at Waltham on the Wolds development
Construction work is now complete at Bellway’s Waltham Heights development in Waltham on the Wolds, where all the homes have been sold.
Bellway East Midlands has built 60 homes at the site off Melton Road, comprising 38 properties for private sale and 22 affordable homes for local people through rent or as starter homes.
The housebuilder has delivered a range of one to five-bedroom houses and a collection of two-bedroom bungalows on the seven-acre site.
Kenny Lattimore, Sales Manager for Bellway East Midlands, said: “We’re happy to have completed construction at Waltham Heights and pleased to have created a brand-new development which has turned into a fantastic new community.
“We have received lots of excellent reviews from housebuyers who are happy with the quality of their new home and delighted with the service they have received from Bellway. This is testament to all the hard work that the site team has put in over more than three years to create this lovely new neighbourhood.
“Bellway is very proud to have delivered 60 much-needed new homes to the village, more than a third of which are affordable properties for local people who want to stay in the area but who cannot afford to buy their own house.
“The legacy we are leaving in the village is not restricted to new housing but also includes an investment of more than £1 million in local services and infrastructure. As part of the planning agreement for the development, we are making a series of payments including £781,000 towards primary education, over £185,000 for secondary education and £26,400 for local healthcare.”
Develop Training invests £500k to upgrade Derby centre
Develop Training, the accredited providers of compliance, technical and safety training, is to invest £500k to fully refurbish its Derby training centre.
The centre, which is located in the heart of Derby with good transport links to the M1 and A38, is currently undergoing a major refurbishment, which will see the complete refresh of all of its classrooms to include state-of-the-art technology as well as a full overhaul of all offices, communal facilities such as reception, toilets, café and breakout area, and some of the practical training areas.
Once the 16-week project is completed, Develop Training will be able to deliver more courses for local and nationwide businesses covering a range of compliance and safety training across a number of industries including utilities and construction, defence, healthcare, facilities management and telecommunication.
Matt Gray, operations manager at Develop Training, said: “We’re thrilled to be undertaking this ambitious project to update our centre in Derby. We look forward to being able to deliver more courses from these enhanced facilities to better serve the needs of our valued clients in the coming years.
“The level of investment in our Derby centre demonstrates our commitment to delivering quality training to our regional customers for many years to come.”
Listed Midlands companies record five profit warnings in Q1 2023 – the lowest number since 2021
Listed companies in the Midlands issued five profit warnings in Q1 2023, nine less than Q4 2022 – a decrease of 64% – and the lowest number of warnings since Q2 2021, according to the latest EY-Parthenon Profit Warnings Report.
Nationally, profit warnings issued by UK-listed companies between January and March 2023 reached their highest first quarter total since the early stages of the pandemic in 2020, with 75 warnings issued.
The report reveals that the number of warnings issued in the first quarter of 2023 exceeded the 72 issued in Q1 2022 and that quarterly profit warnings have remained above the 10-year quarterly average, excluding 2020, for five consecutive quarters. The highest number of Q1 warnings was in 2020, when 305 were issued.
Persistent economic uncertainty has played a significant role in many of these profit warnings. More than a third (35%) of profit warnings cited delayed, reviewed, or cancelled contracts, up from 21% in the same period in 2022, as customers paused or cut spending amid volatile and unreliable demand.
The report found that since the start of 2022, 98 companies have issued at least two profit warnings, while a significant cohort of UK companies have faced particularly challenging conditions after entering the three warning ‘danger zone’. Of the 31 companies that have issued three warnings since the start of 2022, 29% have since delisted or are in the process of being sold. This marks a greater-than-average market dropout rate, as typically just one-in-five companies delist within a year of their third warning, most due to insolvency.
Dan Hurd, a partner at EY-Parthenon in the Midlands, said: “While the Midlands has seen a fall in the number of profit warnings this quarter, uncertainty remains across industries. Inflationary pressures in energy, labour and other input costs continue to have an impact across the supply chain. Businesses that took on increased borrowing during the pandemic may now find themselves particularly vulnerable to higher interest rates.”
Jo Robinson, EY-Parthenon partner and UK&I turnaround and restructuring strategy leader, said: “Economic forecasts may have seen some improvement in recent months, however the extraordinary strength of headwinds over the last two years has left some businesses facing recession-like conditions. This has taken its toll on business confidence and, as pressures move through the supply chain, we’ve seen a higher number of companies warning of delayed or cancelled contracts in comparison to the last quarter. “This economic uncertainty risks prolonging recovery, even as forecasts improve. Many companies may struggle to build momentum as they contend with increased working capital demands and finance costs. “We would normally expect to see insolvency activity peak nine to twelve months after a profit warning peak, so the coming year will be crucial. While the UK economy appears to be turning a corner, recovery is not guaranteed. Businesses should continue scenario planning and building solid operational and financial foundations to withstand further shocks and capitalise on growth.”Technology and Telecoms warnings at a three-year high as sector faces volatility
One-in-five (22%) of Q1 profit warnings were issued by UK-listed companies in the technology and telecommunications sectors with warnings almost tripling year-on-year to 16 in total.
FTSE Software and Computer Services companies issued nine profit warnings in total, the sector’s highest level of warnings since Q2 2020, while warnings from telecoms sectors were the highest since 2018. These sectors have been particularly vulnerable to cost-cutting and uncertain demand, with contract issues cited in over two-thirds (69%) of technology and telecommunications sector warnings.
Many technology companies have also faced difficulties in accessing capital, as increased interest rates, recent turbulence in the global banking markets and other external headwinds create a challenging fundraising environment.
A reprieve for retail but challenging times ahead
Remaining sectors with the most warnings in Q1 2023 were FTSE Retailers (5), FTSE Travel & Leisure, and FTSE Electronic & Electrical Equipment, FTSE Pharmaceuticals & Biotechnology, and FTSE Media (all with 4).
The five warnings from FTSE Retailers marks a decrease from the nine issued in both Q4 2022 and Q1 2022, representing the sector’s lowest quarterly total since Q4 2020. However, persistent inflation, high interest rates and tightening consumer spending will challenge an already delicate sector.
Almost a third of listed retailers (30%) have issued two or more profit warnings since the start of 2022, well above the 8% all-sector total. Of the consumer sector companies that moved into the ‘three warning’ danger area since the start of 2022, 30% have gone into administration or have been put up for sale.
Seven units on Northampton industrial park acquired by £150m urban logistics investment fund
A portfolio of seven fully-let units totalling 55,780 sq ft on Crow Lane Industrial Park in Northampton has been acquired by a £150m multi-let urban logistics investment fund.
Managed by property investment company JR Capital and asset manager Chancerygate, the fund has acquired the industrial estate from asset management company Columbia Threadneedle Investments. All values relating to the transaction are undisclosed.
Crow Lane Industrial Park is situated three miles east of Northampton town centre on Hartburn Close and benefits from quick links to the A45 dual carriageway, M1 and A14 (A1/M1 link).
The seven units range from 3,225 sq ft to 28,665 sq ft. Current occupiers include building materials supplier Wolseley UK, independent electrical wholesaler Midshires Electrical and Lighting and frozen and chilled food same day delivery service Route 1 Fulfilment.
Commenting on the acquisition, Chancerygate asset management director, George Jerram, said: “Our investment in Northampton is indicative of the confidence we have in the local market for urban logistics property. It is an excellent fit for our investment and asset management strategy.
“Demand for urban logistics accommodation remains strong both regionally and nationally. Crow Lane presented us with a great opportunity to enhance the geographical spread of our portfolio with an established asset in an excellent location.
“We are active asset managers and will be looking to further enhance the site for the benefit of our occupiers and investors.”
JR Capital and Chancerygate’s £150m fund has a five-year life and is targeting industrial, warehousing and urban logistics investments across the UK in lot sizes of £5m to £15m.
The partners’ first fund, which totalled £100m, secured 18 assets ranging from Dundee to Exeter over a two-year period. The assets comprised 150 units totalling more than one million sq ft.
JR Capital’s head of investment, Michael Ferris said: “We are pleased to have completed on the second acquisition for the new fund.
“Crow Lane Industrial Park is well located in Northampton and will provide the fund with a well-diversified income stream and opportunities to add value in the near term.
“We remain extremely bullish on the UK multi-let industrial sector due to the favourable macroeconomic fundamentals and the recent adjustments to pricing has created a buying opportunity for us.
“We expect to be active over the course of this year as we continue to scale our platform with Chancerygate to more than £200m.”
Allsop acted on behalf of Chancerygate and JR Capital, while Collingwood Rigby acted for Columbia Threadneedle Investments.
Workforce challenges outrank inflation and interest rates as a top concern for mid-sized businesses
Workforce challenges such as skills and labour shortages outrank rising costs and interest rates as one of the top concerns facing mid-sized businesses in the next six months, according to the latest research from accountancy and business advisory firm BDO. Nearly a third (32%) say it is one of the three biggest challenges they face, second only to supply chain pressures.
The bi-monthly survey – which looks at the challenges and opportunities facing mid-sized businesses – reveals that almost half (48%) are experiencing skills or labour shortages. Nearly two-thirds (61%) cannot recruit enough entry-level staff, with even more (73%) struggling to plug gaps at a lower-managerial level.
Two in five mid-sized businesses (42%) say it is too expensive to hire new staff because of costs including immigration bureaucracy, National Insurance contributions or higher salary expectations from candidates amid the cost of living crisis. A third of firms (35%) are struggling to recruit enough people due to immigration restrictions, rising to 43% of hospitality and leisure businesses. A further 41% are unable to replace staff who retired during the COVID-19 pandemic, with data from the ONS showing a mass exodus of over-50s from the workforce between March 2020 and November 2021.
These mid-sized businesses – defined by BDO as firms with revenues between £10m and £300m that are privately owned, backed by private equity or listed on the AIM market – employ eight million people and provided a quarter of UK jobs as of March 2023, according to further research.
In the face of labour shortages, more than a quarter (26%) are offering existing staff opportunities to retrain, while a third (32%) plan to invest in upskilling over the next five years. A similar number (30%) will use more freelancers to access particular areas of expertise.
In a bid to expand their access to talent, businesses are exploring new hiring methods. One in five (23%) are recruiting more staff through trainee schemes or apprenticeships, while over a quarter (27%) are offering specific incentives to attract more diverse hires, including childcare vouchers or health and wellness support.
One-fifth (20%) are removing academic criteria from job adverts to broaden their candidate pool and 25% are exploring new working patterns such as four-day weeks. A quarter (25%) also expect to see an increase over the next five years in the number of workers aged over 50, as firms prioritise upskilling and retention.
With workforce challenges adding to existing economic pressures, businesses are turning their attention to artificial intelligence and other technological solutions. A fifth (21%) plan to trial or allocate budget for automation and new technologies over the next six months in order to increase efficiency, while more than a third (36%) plan to increase spending on AI in the next five years.
Against this backdrop, businesses are looking to the Government for fresh support. As firms struggle to hire and momentum grows around AI, over a quarter (26%) would like to see investment from the Government in automation to help businesses increase efficiency and cut costs.
A fifth (20%) are calling for immigration policy changes, such as faster processing and additions to the Shortage Occupation List, to plug skills and labour gaps. A similar number (21%) want to see the Government broaden the variety of post-16 education options, while a further fifth (20%) hope to see tax cuts for companies in areas where the regional economy is performing less well.
Ed Dwan, partner at BDO, said: “Workforce issues have the potential to be a real drag on UK productivity. While it’s heartening to see mid-sized firms invest in more diverse hiring and upskilling existing staff, these challenges clearly aren’t going to go away overnight.
“Skills gaps and worker shortages have a real impact on firms’ productivity, output and morale, and could cause a slump in business confidence over the long term. Businesses need a helping hand from Government if they’re to overcome this and achieve the growth we know they’re capable of driving as the UK’s economic engine.
“More investment in areas such as high-quality apprenticeships, or incentives for people to train in areas where skills shortages are most severe, could have a huge impact.”
CBI suspends all policy and membership activity until June following fresh allegations
The CBI (Confederation of British Industry) has suspended all policy and membership activity until an Extraordinary General Meeting (EGM) in June as dozens of companies, including Rolls Royce, are leaving the organisation or pausing their memberships following allegations of rape and sexual assault.
It follows reports in the Guardian that a second woman had made a rape allegation against two CBI workers, and comes after a series of historic misconduct claims over recent weeks.
A statement from the CBI board said that it “shares the shock and revulsion at the events that have taken place in [the] organisation, and at past failures that allowed these events to happen,” with the organisation planning to put forward proposals for a refocused CBI at the June EGM for its membership to decide on its future role and purpose.
The CBI said: “We are deeply sorry and express our profound regret to the women who have endured these horrific experiences.
“We have listened carefully to what our colleagues, members and stakeholders have said over recent days and weeks. We have heard loud and clear a demand for far reaching change.
“We want to properly understand from our colleagues, members, experts and stakeholders how they envisage our future role and purpose. As a result, we have taken the difficult but necessary decision to suspend all policy and membership activity until an Extraordinary General Meeting (EGM) in June.
“At the EGM we will put forward proposals for a refocused CBI to our membership for them to decide on the future role and purpose of the organisation. This work and the cultural reform will be the entire and urgent focus of the organisation over the coming weeks.
“Our members have told us in recent days and weeks that they believe in the importance of a collective voice to inform national policy and the unique role that an organisation like the CBI can play in public life. But much needs to change if we are to win back their trust so we may continue to represent business at this critical time for the country.
“We are taking steps to address our failings but recognise these are not yet sufficient to sustain the confidence of our colleagues, members and of the broader business community. We know it will take time to rebuild trust in our purpose and culture. And to give our team and former colleagues the space to heal.”
Some business leaders have called for the CBI to disband.
“The Awards are a fantastic boost for businesses” – MKM joins sponsor line up for the East Midlands Bricks Awards 2023
MKM has joined the sponsor line up for the East Midlands Bricks Awards 2023, backing the Commercial Development of the Year category.
Speaking with Business Link, Gavin Moody, Branch Director at MKM Nottingham, said: “MKM are proud to be sponsoring the Commercial Development of the Year category at the annual East Midlands Brick Awards. It is important to us that we celebrate the construction industry’s achievements and highlight local business development in this way. East Midlands Business Link do a great job with these awards, shining a light on the area and bringing businesses together.”
Sam Shipman, also Branch Director at MKM Nottingham, added: “Each MKM branch takes great pride in supporting its local construction community, helping to ensure these commercial developments are brought to life with the highest standards.
“The Awards are a fantastic boost for businesses and so easy to enter. It is a great opportunity for companies in the area to celebrate the amazing work that they have been doing and share their successes with the wider industry.”
The awards, which will take place on Thursday 28 September at the Trent Bridge Cricket Ground, celebrate the outstanding work of those shaping the landscape of our region, recognising development projects and people in commercial and public building across the East Midlands – from offices, industrial and residential, through to community projects such as leisure schemes and schools.
Nominations are now OPEN for East Midlands Business Link’s annual Bricks Awards.
To nominate your (or another) business/development for one of our awards, please click on a category link below or visit this page.
To be held at:
Sam Shipman, also Branch Director at MKM Nottingham, added: “Each MKM branch takes great pride in supporting its local construction community, helping to ensure these commercial developments are brought to life with the highest standards.
“The Awards are a fantastic boost for businesses and so easy to enter. It is a great opportunity for companies in the area to celebrate the amazing work that they have been doing and share their successes with the wider industry.”
The awards, which will take place on Thursday 28 September at the Trent Bridge Cricket Ground, celebrate the outstanding work of those shaping the landscape of our region, recognising development projects and people in commercial and public building across the East Midlands – from offices, industrial and residential, through to community projects such as leisure schemes and schools.
Nominations are now OPEN for East Midlands Business Link’s annual Bricks Awards.
To nominate your (or another) business/development for one of our awards, please click on a category link below or visit this page.
Award categories include:
- Most active estate agent
- Commercial development of the year
- Responsible business of the year
- Residential development of the year
- Developer of the year
- Deal of the year
- Architects of the year
- Excellence in design
- Sustainable development of the year
- Contractor of the year
- Overall winner
Book your tickets now
Tickets can now be booked for the awards event – click here to secure yours. The special awards evening and networking event will be held on Thursday 28 September 2023 in the Derek Randall Suite at the Trent Bridge County Cricket Club from 4:30pm – 7:30pm. Connect with local decision makers over canapés and complimentary drinks while applauding the outstanding companies and projects in our region, and hear from Mike Denby, Director of Inward Investment and Place Marketing at Leicester City Council, our keynote speaker. Dress code is standard business attire. Thanks to our sponsors:
To be held at:
Asbestos trade association welcomes Kriss Akabusi to host awards event
In July the UK Asbestos Training Association, based at the Markham Vale Environment Centre near Chesterfield, will welcome former athlete Kriss Akabusi to host its 15th Anniversary Awards ceremony on Friday 7 July 2023 at the Radisson Blu Hotel, East Midlands Airport.
The UKATA 15th Anniversary Awards ceremony will recognise and celebrate the achievements of individuals and organisations in the asbestos industry.
Awards will be presented in a range of categories, including:
- Contribution to the Community Award
- Customer Service Excellence Award
- Commitment to People/Workforce Development Award
- Excellence in Innovation
- Rising Star Award
- Industry Associate of the Year
Water company gives charity £9,000 to support families after the loss of a child
Severn Trent’s Community Fund has awarded a £9,000 grant to Nottingham-based charity Zephyr’s to provide nature-based play and well-being sessions for families dealing with the loss of a baby or child.
The grant has enabled Zephyr’s to work in partnership with Boots & Brambles Forest School to run monthly sessions throughout 2023 for people of all ages. So far the sessions have welcomed almost 20 different families, with more attending on each occasion.
The ‘Into the Woods’ sessions see children, parents and grandparents gather outside and take part in gentle activities to remember their children who have died. The sessions have also seen children and adults who have been through similar experiences, enabling them to make friends and build a network of support that can also grow away from the monthly activities that Zephyr’s provide.
Alongside the outdoor sessions, Zephyr’s offers bereavement counselling, peer support and creative activities. the organisation’s founder and MD Carly Williams said: “Just as parents might struggle to navigate a life after the loss of a precious child, children can also find it tough. A child learning to cope with the loss of a brother or sister might feel very lonely and confused. Our sessions in the woods are really relaxed, playful and fun, and everyone knows that they’re taking part in activities with a circle of people who understand what they’re going through.
“Not all therapeutic support takes the form of talking therapies so we’re extremely grateful to Severn Trent for this funding that has already opened up our services to many people who hadn’t seen what we do before.”
Severn Trent Community Fund Officer Sue Heyes said: “Making a positive difference to the local community is at the heart of everything we do at Severn Trent so we’re delighted to be able to help fund what will be life-changing sessions provided by Zephyr’s and Boots & Brambles Forest School.
“It is evident what need there is in the local community for these sessions – everyone knows how devastating the loss of a family member can be, and it is wonderful that children and families in the area now have access to these vital activities.”
