Revenue and profit rise at Watches of Switzerland
Revenue and profit are on the rise at Leicester-based Watches of Switzerland Group, according to half year results for the 26 weeks to 30 October 2022.
Group revenue stood at £765 million, growing from £586 million in the same period of the year prior, as the business saw continued strong demand for luxury watches and jewellery, with growth driven by increases in average selling price and volume.
Statutory profit before tax in the firm’s first half meanwhile jumped to £83m, up from £65m.
Brian Duffy, Chief Executive Officer, said: “I am pleased with our strong performance in the first half of the financial year which reflects our leadership position and the strength of our longstanding brand partnerships as we continue to take market share.
“Our proven business model, international scale, bold marketing and dedication to client service truly sets us apart, and our client registration lists continue to extend as we continue to attract new clients as well as retain a loyal base of existing ones.
“We continue to expand our retail network, opening a total of 20 showrooms across the UK, US and Europe in the first half of FY23, and to invest in elevating the luxury experience for our clients through showroom refurbishments. We have an exciting and growing pipeline of new projects, and I am delighted to announce our third Watches of Switzerland multi-brand showroom in Manhattan at One Vanderbilt anchored by OMEGA and Cartier due to open in 2023.
“Trading in the Holiday period so far has been in line with our expectations and our guidance for FY23 remains unchanged. We look ahead with confidence as we continue to deliver on our Long Range Plan objectives of maintaining our leadership position in the UK, becoming the clear leader in the US, and capitalising on the growth potential in Europe.”
2023 Business Predictions: Daniel Collins, director, PolkeyCollins
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Daniel Collins, director at Lincolnshire-based architecture practice, PolkeyCollins.
With the ever-changing market at the moment, it is going to be difficult to predict with any confidence where the UK will be heading through 2023. However, it is clear that there will be caution across the construction industry. Unfortunately, I do feel there will continue to be a turbulence felt across the industry, with processes and client commitment taking longer than ever. The result, for various reasons, will affect quality and efficiencies, which in turn costs the client and threatens viability.
We have all seen and are still seeing the impacts of the last five years affecting businesses and their employees in various ways. Following the division of Brexit, widespread impact and challenges of Covid, then the current political turmoil, it is difficult to get a semblance of what normal is. In addition to this, the construction industry is about to face another challenging time with new legislation coming into force such as the fire safety bill, building regulations amendments and enhanced sustainability targets. It is evident that the industry is going to feel further pressure, before truly establishing a ‘new normal’.
For PolkeyCollins, we have been impacted significantly by the above. However, as we are coming up to 10 years of trading, 50% of this has been through these challenging times. Therefore, I feel the formulative years of the practice have enabled us to embrace these challenges and work slightly differently in the industry. Through a cross-sector approach, modern working practices with a repeat client base and truly embracing the concept to completion approach, we have built a strong foundation for the practice to grow sustainably and continue to succeed.
Looking ahead, I believe 2023 will be a challenging year, where companies and individuals are striving to reclaim the normality and establish some stability, whilst looking to balance and recover some of the lost time. How this happens will be interesting with many possible solutions, where there is no definitive right or wrong.
162 jobs to be cut at Derby City Council as it proposes balanced budget
162 jobs are set to be cut at Derby City Council as it proposes a balanced budget for the next financial year in the face of a ‘perfect storm’ of rising costs and inflation.
Just as household budgets have been hit by increasing costs, councils across the country have also been affected as demand grows for services, particularly for the most vulnerable children and elderly people.
Through a mixture of additional Government funding for Social Care, management of demand, savings and an increase in Council Tax, the Council plans to consult on a balanced budget for 2023/24. The proposals will go to public consultation after the Council’s Cabinet review them on Wednesday 21 December.
In addition to the Council having to find unprecedented savings for next year in a very short space of time, it is forecasting the need for a further similar amount by 2025/26 without local government funding reforms.
Derby City Council is proposing to increase its Council Tax by the maximum allowed without a separate referendum in order to protect its most vital services. This would mean increasing council tax by 4.99%, with 2% of this ringfenced for adult social care – a key pressure for councils across the country. A household living in a Band D property would be likely to see their bill increase by £78.74 a year.
Elsewhere residents are likely to see a reduction in some services, changes in the way others are delivered, and an increase in fees and charges in some areas.
Tough decisions have had to be proposed to balance the budget which impact across all Council services. Proposed reductions include:
- A review of the Council’s Early Help offer to focus on the most vulnerable children and families in need
- Reviewing Adult Social Care packages to focus on the most critical needs of the most vulnerable people living in the community
- Ending the Council’s subsidy of Community Managed Libraries from the end of the financial year, effectively ending the service, and including the premises in a Council review of all community buildings
- Exploring options for the Council’s leisure services, to consider outsourcing to an operating partner
- Reducing the frequency and service offer for ‘street scene’ services, including grounds and highways maintenance and street cleansing
- New ways of working in locality teams by even greater partnership working to support the most vulnerable
- Reviewing Council House opening hours
- Focused work with partners to encourage further support from developers, investors and government to promote and deliver regeneration in City Centre schemes
Timms Solicitors support local charities with care conference donations
Law firm Timms Solicitors has presented cheques to two local charities following its annual childcare conference for fellow professionals which focused on the impact of the pandemic on families and young people.
Timms is recognised as a leading Family Law firm with an experienced childcare team working across its offices in Derby, Burton-upon-Trent and Swadlincote.
The firm organised its eighth annual conference recently in Derby which was attended by more than 60 delegates from across the East Midlands representing the legal, local authority and Children and Family Court Advisory and Support Service (CAFCASS) professions.
Guest speakers included Tracy Harrison, CEO of Derbyshire’s specialist child exploitation charity Safe and Sound, which has received £250 from donations at the conference. The same amount was also presented to Derby County Community Trust as part of Timms’ long-standing support for the charity’s wide-reaching community programme.
Timms Solicitors managing partner Fiona Moffat explained: “In this, our 130th anniversary year, we were delighted to be able to reintroduce the in-person annual childcare conference.
“Each event is focused on a different aspect of law relating to children and are designed to share key topical knowledge across the profession, giving advice and understanding to help everyone in their day to day jobs.
“It was particularly relevant this year to hear from a wide range of speakers who highlighted the widespread impact that the pandemic, particularly periods of lockdown, have had on the health, wellbeing and safety of young people and their families.
“This insight is helping a wide range of professionals shape their approach to contact with families and gain a better understanding of the support available to them.
“Timms always donate to a charity as part of this event and we were delighted to again support Safe and Sound and DCCT who both have a very important role to play in supporting young people and families in our local communities.”
Lincolnshire dairy farm secures funding to invest in carbon efficient cowshed
Lincolnshire-based dairy farm, White House Farm, has significantly increased its productivity after investing in a new carbon-efficient cowshed, using £1.05 million of funding from Lloyds Bank.
Located in Bourne, the fourth-generation, 800-hectare dairy and arable farm is owned by the Dorrington family and its herd of nearly 300 cows produces milk exclusively for Arla.
The seven-figure loan from Lloyds Bank has supported the construction of a new 2,700-metre square cowshed and will significantly improve the farm’s natural slurry filtration by using deep channels to move liquid manure below ground quickly and without the need for electric pumps.
The large, open-plan pitched-roof building uses natural ventilation and LED lighting in a further boost for the farm’s net-zero credentials, while its passages are wide enough for an electric robot slurry scraper to operate, helping to further improve cow welfare by reducing the number of mastitis cases and the need for antibiotics treatment.
Investing in the new state-of-the-art cowshed supports Dorrington Farm’s long-term sustainability commitment on both the dairy and arable side of the business. The shed’s new slurry separator has allowed the farm to move separated manure away more efficiently and use it to reduce the artificial fertiliser needed to grow the crops, with fields of maize grown entirely from slurry and solid manure applications this year.
Zara Dorrington, who’s great-grandparents moved to White House Farm in 1924, runs the business along with her father Ross and uncle Simon. Commenting on the investment in the new cowshed, she said: “Slurry management was a key area we wanted to improve when designing the new shed. We knew it was where we could significantly strengthen our sustainability agenda, turning what was historically a waste product into a useable asset with many benefits.
“With Lloyds Bank’s support, we’ve taken great lengths to make sure its design and build is as carbon-efficient as possible, whilst also providing a comfortable and nurturing environment for our herd.”
The finance package comes via Lloyds Bank’s Clean Growth Finance Initiative, which provides discounted funding to help businesses transition to a lower-carbon, more sustainable future.
Steven Withers, agricultural relationship manager at Lloyds Bank, added: “Every industry is under pressure to improve sustainable practices, and with agricultural land making up 70 per cent of the UK’s land area, farming has a particularly crucial role to play.
“Our Clean Growth Finance Initiative is designed to support businesses with their environmental and sustainability goals, and so the build of the new cowshed at White House Farm will not only improve efficiency and production levels, but allow Zara and her family to operate more sustainably. We will continue to be by the side of land-based businesses like this to help them thrive in the most carbon-efficient way.”
Economic outlook to dampen companies’ festive cheer this Christmas as hiring and growth decline
Weaker hiring intentions and recessionary pressures suggest a challenging winter ahead for UK businesses, according to the Business Trends report from accounting and business advisory firm BDO. November saw all four indices across employment, inflation, output and optimism fall for the second time in the last three months.
The latest figures show BDO’s Employment Index contracted by 1.20 points in November, as it fell for the third month in a row to 111.85. While the Index remains above 95, considered the watershed between growth and contraction, it now sits at its lowest point since February 2022. This decline has been caused by weaker hiring intentions across the services sector.
BDO’s Inflation Index declined for the second time in the past three months, falling to 118.43, although still remains historically elevated. This represents a sizeable contraction of 2.24 points – the largest fall the index has seen since May 2020. The lower reading was driven in part by a drop in the value of sterling improved following market volatility attributed to government measures announced in September’s mini-Budget.
Indications of a recession have put downward pressure on productivity growth among businesses. BDO’s Output Index recorded a steep drop of 2.43 points to 90.56 in November, registering its weakest reading since the third national lockdown at the start of 2021. This suggests that overall economic output is contracting, with further sub-95 values expected until at least Q2 2023.
BDO’s Optimism Index plunged to a record two-year low of 91.64 in November, as recessionary pressures and the expectation of further headwinds caused a drop in confidence.
The services sector has seen the largest fall in optimism, having been particularly exposed to inflationary pressures and a decline in output, as supply chain disruption and soaring living costs impacted consumers and businesses alike.
Entering the Christmas run-up, waning confidence among businesses reflects falls across the Employment and Output Indices, while there are still significant pressures on the Inflation Index.
Kyla Bellingall, regional managing partner at BDO LLP in the Midlands, said: “This time last year, businesses faced an uphill battle after months of on-going COVID-19 restrictions and the pandemic still impacting economic activity. While the challenges may be different this year, the outlook remains concerning, as the latest figures suggest the economy is on the verge of contraction.
“Rising costs, continued supply chain challenges and historically low spending power are just some of the challenges businesses and their customers face at a time of year when activity should be reaching its peak.
“As another interest rate decision is due, and with a tough macroeconomic environment to battle, firms need the right support and reassurance from the Government to provide confidence ahead of an uncertain winter.”
Two Senior Associates joins Knights in Leicester
Knights’ Plot Sales team in Leicester has been bolstered with the arrival of two new Senior Associates.
Diane Price and Rachael Hillam both joined legal and professional services business Knights this week, based in the firm’s office in Leicester city centre.
Both have more than 30 years’ experience across commercial and property law – bolstering Knights’ team of specialist new build property specialists across the Midlands.
Diane and Rachael specialise in work alongside new build property developers, PLCs, landowners, and public sector bodies – at a regional and national level – as well as negotiating agreements and deeds for new developments.
Diane Price, Senior Associate at Knights, said: “It is an honour to be part of such an amazing team who are clearly passionate about what they do.
“There is a saying – do what you love and you’ll never have a problem with Mondays.”
Rachael Hillam, Senior Associate at Knights, said: “I am very proud to take on this new and exciting opportunity at Knights.”
Sarah Perry, Client Services Director at Knights, said: “It’s great news that Diane and Rachael have joined our growing team here in Leicester.
“Their experience and vast knowledge will complement the skills of the rest of our talented Plot Sales team. We can’t wait for them to get started.”
Knights is one of the fastest-growing legal and professional services businesses in the UK – ranked within the top 50 UK law firms by revenue, with specialists in all key areas of corporate and commercial law.
Major new multi-million regeneration scheme in motion at city’s former Abbey Lane bus depot
Construction work has started on a multi-million development by Jessup Partnerships to transform Leicester’s iconic former bus depot on Abbey Lane into 117 homes for housing association Midland Heart.
The site which has sat empty since 2007, will be the biggest residential scheme in the city and will be made up of a mix of 103 semi-detached and terraced houses, ranging from two, three, and four bedrooms, as well as 14 maisonettes.
The Edwardian depot building itself opened in 1904 and construction work is to be completed by winter 2024. All the homes will be timber-framed as part of Jessup’s commitment to adopting sustainable business methods, while it continues to develop on its strong ESG credentials.
Leicester-based RG+P Architects has designed the new homes, which will include 29 two-bedroom houses, 70 three-bedroom houses, and four four-bedroom houses as well as 12 one-bedroom maisonettes and two-bedroom maisonettes.
Chris Timmins, Managing Director at Jessup, which opened an office at Meridian earlier this year said: “This is an iconic site and we understand its importance to the city. We are honoured to have the opportunity alongside our partners Midland Heart to transform this derelict site which has stood disused for so long into new homes for families and first-time home buyers in Leicester.
Midland Heart Executive Director of Finance and Growth, Joe Reeves, said: “We are delighted to be working with Jessup on this project.
“The Abbey Lane Bus Depot site has been derelict for some years and it’s great to be able to use our joint expertise to regenerate it into homes for affordable rent and shared ownership. Not only will this project transform a disused brownfield site but provide much needed affordable housing in the city.”
The development is situated right across the road from Abbey Park which hosts sprawling 32-acre grounds, with a river and flower displays set on top of Augustinian monastery ruins. The site also has great transport routes being just two miles from Leicester City Centre and on bus route 54A.
The site is also just a four-minute drive from Ross Walk Nature Reserve which is perfect for any canine companions and is just a five-minute drive to Cossington Recreation Ground which boasts a floodlit outdoor ball court, a 30-meter indoor swimming pool, sauna facilities, and a gym.
Enrok expands with new West Midlands office
Enrok Construction has opened a new office in the West Midlands as part of its continued expansion plans.
The company, which has seen strong growth in 2022, has opened a new office in Stafford so that it can meet increased client demand in the West Midlands and give its staff a central hub in which to work and collaborate. The office is in addition to its head office in Ednaston, Derbyshire.
Enrok is currently delivering 51 residential units in the West Midlands, including its most recent contract win which will see the development of 19 new build affordable homes for Citizen on Wellington Road in Handsworth. The company is also delivering a new £4m medical centre in Hartshill, Nuneaton which is expected to open its doors in 2023.
Jordan Mallisch, Managing Director of Enrok Construction, says: “In addition to our projects in London and Nottingham, we are seeing increased demand in the West Midlands and have therefore taken the decision to open our second office in Stafford.
“In addition to giving Enrok a physical presence in the area, the new office is helping our growing West Midlands-based team to reduce commuting time and gives us a high-quality environment in which to work.
“As our presence in the West Midlands continues to grow, we will be creating further employment opportunities in the area and have therefore taken on the additional office as part of our future expansion plans.”
Enrok Construction is a privately owned construction company, operating across the UK from its headquarters in Derbyshire.
East Midlands unemployment rate drops but research suggests it could soon rise again
After three months of climbing, the proportion of people out of work in the East Midlands has dropped from 3.5% to 3.3%.
The region’s unemployment rate remained below the UK average of 3.7% for the period between August and October this year, according to the latest regional labour market data from the Office for National Statistics.
After hitting a record low of 2.4% between April and June, the East Midlands rate had been steadily rising until this point.
The region’s economic inactivity rate – which measures the number of working-age people who have dropped out of the labour market for reasons such as retirement, caring duties, long-term ill health or studying – dropped slightly from 22.6% to 22.4% but this remains near record highs.
East Midlands Chamber Chief Executive Scott Knowles said: “After a sharp upwards trajectory in the level of unemployment over recent months – although against a context of still being within historically low levels – it is reassuring to see a reversal of a worrying trend.
“Despite this, our own research suggests unemployment levels may not remain so low in the future. Our final Quarterly Economic Survey of the year, which ran throughout November, found there was an 8% decline from quarter to quarter in the proportion of East Midlands businesses that added to their workforce in the previous three months, while there was a similar drop-off in recruitment prospects over the coming three months.
“Clearly, the cost-of-doing-business crisis – led by rising costs in energy, interest rates, raw materials, people and fuel – has deeply affected business confidence to invest, and a lack of available skills in the labour market is now impacting significantly on firms’ ability to grow.
“While the slight decrease in the proportion of those people who have opted out of the workforce for various reasons is welcomed, this remains at a very high level and has helped to create the tightest labour market in years.
“This poses a major concern for the road ahead as our economy continues to stagnate but there are measures the Government can take to support businesses to develop a skills base fit for 21st century industry.
“In our Business Manifesto for Growth launched in Parliament last month, we propose a series of reforms around how businesses invest in their people.
“These include flexible incentives for business investment in staff training, expanding the use of the apprenticeship levy, bringing forward the introduction of the lifelong loan entitlement to support retraining and the retainment of an older workforce, and a comprehensive reform of the shortage occupation list to allow sectors facing urgent demand for skills to get what they need.
“In other words, this is about ‘getting the basics right’ – removing the day-to-day barriers for businesses and ensuring the basic building blocks of economic success are in place.”
