Nottingham’s Yü Group, the independent supplier of gas, electricity and water to the UK corporate sector, has been appointed by Ofgem as Supplier of Last Resort (SOLR) for Ampoweruk Ltd (Ampower) and agreed to take on their electricity and gas customer book from Sunday 7 November. Ampower supplied 8,158 predominantly electricity business sites, increasing the group’s meter portfolio by 38%. Group revenues are forecasted to immediately increase by over £7.5 million per month. Earnings will be enhanced immediately. Under Ofgem’s SOLR process, business customers transfer to a new supplier on a flexible, “deemed”, basis with a variable tariff reflective of current market conditions. Yü Group said it is “confident in its ability to retain a significant proportion of the Ampower business customer book, leading to substantial increase in forward contracted revenue.” Ampower ceased trading on 6 November 2021. Bobby Kalar, Group Chief Executive Officer, said: “I’m very pleased to have been awarded the Ampower customer book. In recognition of our strong systems and experienced team these customers have already been migrated onto our scalable operating platform seamlessly over the weekend with negligible impact on resource or capacity. “Our experience and track record means we are confident the customer transition will be seamless, quick and well communicated. “Our robust hedging strategy and strength of balance sheet are underpinned by a proven business model and a solid and scalable platform. This gives the Board confidence that we are well positioned to deliver a good blended mix of both organic and inorganic growth and we are proud to be in a strong position to allow us to play a part in supporting the industry. “We remain well disciplined, selective and focussed on achieving good profitable growth. I would like to thank my team for their phenomenal performance and unwavering support.”

Confidence amongst small firms in the East Midlands has fallen significantly, according to the latest survey by the Federation of Small Businesses (FSB). The business group’s quarterly Small Business Index shows confidence has fallen to 0 per cent in the region for Q3, following a strong start to 2021, with both Q1 and Q2 confidence indexes at 50 per cent. This fall in confidence is the first time a more negative sentiment has begun to creep back into the region, where close to a third of small businesses are now less confident about their prospects in the coming months (a sharp increase of 19% vs. Q2). While most regions in the UK have seen a decline in confidence, particularly compared to the same time last year, positivity in the East Midlands has dropped below other UK counterparts, with London (38%) the most confident and the East of England most pessimistic (-1%). The UK average for Q3 is 16 per cent. During the quarter, one in ten small firms (11%) had reduced their staffing numbers, and six per cent increased theirs. At the end of Q2, only four per cent had anticipated cutting staff levels. However, wage growth in the East Midlands remains fairly stable as almost half of small firms in the region (48%) increased the average salary awarded across their business over the last 12 months, with 43 per cent increasing wages by two per cent or more. This represents only a slight fall from the amount of businesses increasing salaries in Q2, where 52% reported wage growth. A drop in confidence also appears to be hampering growth intentions. The survey shows 38 per cent of small businesses in the East Midlands said that their growth aspirations in the next 12 months were to grow either rapidly (increase turnover/sales by over 20%) or moderately (up to 20%). This represents a significant fall from Q2 where 58% reported aspirations to grow their company. The coming winter months and beyond look tough for businesses with many citing the domestic economy (59%), consumer demands (48%) and access to appropriately skilled staff (30%) as the greatest perceived barriers to growth over the next 12 months. Nationally, Treasury’s plans to increase Class IV and Employer NICs as well as dividend taxation by 1.25 percentage points in the Spring will add inflationary pressures, causing firms to put the brakes on hiring and discourage investment, the research finds. Clare Elsby, FSB’s East Midlands Policy Representative, said: “This quarter’s Small Business Index (SBI) is a stark reminder the road to recovery is a fragile one and that small businesses in the East Midlands are still facing significant challenges. “A startling drop from steady confidence levels in Q1 and Q2, that were well above the national average, to levels far below it must be taken as a warning that regional investment and strong local leadership are of utmost importance. “As an organisation we voiced our concerns that the removal of some of the support measures brought in to hold off the worst effects of the pandemic on businesses would be tough for many to navigate and potentially present a dangerous moment. “Unfortunately, this seems to be the case and was made worse by rising Covid-19 cases, the pingdemic and consumer demand not bouncing back as quickly as predicted. “Here at FSB we have made a commitment to work hard with our members and stakeholders to understand why our region, more than others, has faced such a dent in confidence. I would ask that all our valuable partners work with us to unravel the localised barriers that our small businesses face.”

The headline NatWest East Midlands Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – registered 52.6 in October, up slightly from 52.4 in September, to signal a modest expansion in business activity across the East Midlands private sector. The upturn in output was attributed to greater new order inflows and stronger demand. The rate of growth was slower than the UK average, however, and was the third-softest of the 12 monitored UK areas (quicker than only the North East and Northern Ireland). Private sector firms in the East Midlands signalled a quicker upturn in new business during October. The rate of growth accelerated to the fastest for three months and was sharper than the series trend. The pace of increase was, however, slower than the UK average. In fact, of the 11 monitored UK areas that registered growth, the East Midlands recorded the second-slowest upturn (quicker than only the North East). October data signalled broadly upbeat expectations regarding the outlook for output over the coming year among East Midlands private sector firms. Optimism was often linked to hopes of a pick-up in client demand and an end to COVID-19 uncertainty. That said, the degree of confidence dropped to the lowest since January as firms noted concerns regarding supply chain issues and material shortages. Private sector firms in the East Midlands signalled a strong expansion in workforce numbers at the start of the fourth quarter. Where an increase in staffing numbers was recorded, firms linked this to faster new order growth and greater business requirements. The rate of job creation was the fastest for four months but was among the slowest of the 12 monitored UK areas. The level of outstanding business across the East Midlands private sector rose steeply in October, with the rate of expansion reaching a fresh series record. The pace of increase was quicker than that seen across the UK as a whole. Companies stated that backlogs of work were driven up by solid sales growth and severe supply chain disruption which exacerbated pressure on capacity further. Companies in the East Midlands registered the fastest increase in cost burdens since data collection began in January 1997 at the start of the fourth quarter. The rise in input prices was commonly attributed to severe raw material shortages, higher transportation surcharges and increased wage bills. The rate of cost inflation was quicker than the UK average. In line with the trend for input costs, East Midlands private sector firms indicated the steepest rise in output charges in the series history. The increase in output prices was also faster than that seen across the UK as a whole. Anecdotal evidence suggested the uptick in charges was due to the pass-through of higher costs to clients. John Maude, NatWest Midlands & East Regional Board, said: “October data signalled a stronger upturn in business activity across the East Midlands private sector, as greater client demand spurred a faster rise in new orders. “Pressure on capacity led firms to expand their workforce numbers at a sharper pace, however ongoing material shortages resulted in a continuous record rise in backlogs of work. Severe supplier delays and uncertainty regarding rising COVID-19 cases hampered business confidence, which dipped to the lowest since January. “At the same time, supply chain disruptions and labour shortages pushed up cost burdens to the greatest extent in almost 25 years of data collection. Firms were able to partially pass-through higher costs to clients, as charges rose at the sharpest pace on record.”

Derby-based Light Science Technologies, the controlled environment agriculture (CEA) technology and contract electronics manufacturing (CEM) group, has secured a contract with Zenith Nurseries with a total potential value of up to £13.84 million. The project involves a consortium (Light Science Technologies Ltd, Zenith Nurseries and Morrish Engineering Limited) developing a cloche lighting and sensor technology system. This product seeks to bring lighting and sensor technology to the controlled environment technology market for growers in polytunnel and glasshouse environments. The solution is intended to extend the use of the company’s nurturGROW Sensor to new market applications, such as agriculture fields. The cloche lighting and sensor technology system is expected to be the first retrofittable, all-in-one lighting-sensing-automation rig providing year-round harvests for the grower across multiple plant varieties. With an initial potential UK market of 4,000 industrial growers, producing over 300 types of field-scale and protected vegetable and salad crops, and tree and berry fruits, the solution will aim to improve productivity by increasing yields. It will look to help growers by providing a possible solution to labour shortages and reduce the need for import substitution by extending the harvest window. Meanwhile the UK Circuits and Electronics division has received new orders from Rentokil Initial plc totalling £580,900 which are expected to be delivered through the first half of FY 2022. The forward order book for UK Circuits and Electronics Ltd currently stands at approximately £5 million. Simon Deacon, CEO of Light Science Technologies Holdings plc, said: “The development of the LED grow lighting cloche/rig solution is an exciting progression in our product portfolio. “We are delighted to be working with growers in the development of tailored supplementary hybrid lighting (LED and natural light) system providing targeted, actionable data insights of the nine cardinals of plant life and soil health, based upon the data collected. “We already have good levels of visibility across both our divisions which provides a solid platform for growth. Importantly, we have a growing number of routes to increased commercialisation and believe that we are well placed to scale up rapidly.”