46 made redundant as administrators appointed to Derbyshire construction firm
Howard Smith and Chris Pole from Interpath Advisory have been appointed joint administrators to Wildgoose Construction Limited.
Founded in Matlock, Derbyshire in 1896 and now based in Alfreton, the fourth-generation family-owned business is an award-winning building contractor, delivering large-scale projects for clients across a wide range of sectors including housing, education, health, commercial and social care.
Recent significant projects included Northampton Museum & Art Gallery, Brackley Medical Centre and Community Hospital, and the Matlock Spa Development.
The company had recently experienced significant margin pressure as a result of rising raw material prices, supply chain disruption and labour shortages, which resulted in many of its fixed-price contracts becoming loss-making.
The adverse impact of these loss-making contracts on the financial position of the company was further exacerbated by significant one-off costs, including the insolvency of a number of subcontractors and bad debts arising following the insolvency of a key client.
Following a detailed review of the financial position of the company and its trading projections in light of the challenges being faced, the directors took the decision to place the company into administration.
All work on live projects ceased prior to the appointment of the joint administrators, with clients being notified in advance to enable an orderly wind down and to give them appropriate notice to source alternative contractors.
46 members of staff have been made redundant, with a small number retained to assist the joint administrators with the wind-down of the business.
Howard Smith, Managing Director at Interpath Advisory and joint administrator, said: “These are extremely difficult times for companies across the construction sector, with recent surges in the price of raw materials, coupled with supply chain disruption, acute labour shortages and wage inflation putting businesses under significant pressure.
“Unfortunately for Wildgoose Construction, these issues ultimately resulted in a number of its fixed-cost contracts becoming unsustainably loss-making, and when combined with the other unexpected significant one-off costs and liabilities which had arisen, the directors had no alternatives other than to place the company into administration.
“Our immediate priority is to assist those members of staff who have been made redundant, providing them with the information and support they need to claim their statutory entitlements from the Redundancy Payments Office.”
Jonathan Wildgoose, chairman of Wildgoose Construction, said: “In light of the multiple challenges being faced by the business, our efforts since the commencement of the pandemic have focused on exploring all possible options in an effort to secure a solution which would have safeguarded the future viability of the business.
“It is with great sadness that we had no alternative but to cease to trade and take the necessary steps to place the company into administration. On behalf of all of the directors, I would like to place on record our thanks for the huge efforts of our employee base and all other stakeholders.”
Travis Perkins acquires stair, floor and door solutions company
Travis Perkins, the Northampton-based supplier of building materials and equipment, has fully acquired Staircraft; a company that provides integrated stair, floor and door solutions.
This development expands Travis Perkins’ customer proposition by adding digital component design, timber engineering and production capability to its portfolio.
Travis Perkins first acquired a minority share (15%) in Staircraft in 2015, and announced its intention to fully acquire the remaining share (85%) of the company at an investors update on 29 September.
“We have enjoyed a close working relationship with Staircraft for the past six years and believe this partnership has many more opportunities for further growth potential for both parties,” explained group COO, Frank Elkins.
“Staircraft is a very exciting business; technology-led and well known for innovation and quality, and for delivering engineering solutions that are developed offsite in factory based conditions.
“This means that their offering plays right into our future strategy of elevating our customer relationships by providing new areas of value-added products and services that deliver efficiency, quality, sustainability and innovation in design, engineering and production,” Frank continued.
“For us, being part of Travis Perkins plc will give us access to new markets, investment and growth opportunities. We also know that our businesses are a great match from a cultural and values driven perspective, and that this partnership will give our colleagues access to new and improved benefits and career and development prospects over time,” said Managing Director of Staircraft, Andy Hamilton, who will remain in post with his leadership team under the new ownership.
Staircraft dates back to 1986 and has 350 employees. The company is headquartered in Coventry and operates from three manufacturing sites across the UK.
Nottingham business in running for national Architectural Practice of the Year title
An architectural design firm based in Nottingham has been chosen as a finalist in the Architectural Practice of the Year category at this year’s National Building and Construction Awards.
The Practical Planning Company was launched in 2019 by Benjamin and Jodie Heginbotham in a bid to provide homeowners with the whole design and planning package for all home improvement projects, from extensions to new builds.
The firm’s shortlisting in the national awards programme comes after two years of helping more than 200 homeowners with their home improvement projects – work which has already earned the team recognition in other awards including The Small Awards and the National Business Women’s Awards.
“Being named a finalist in the National Building and Construction Awards has been a dream of ours since we started our business,” says Jodie. “We’ve worked so hard to offer a service which makes homeowners feel safe and secure when designing and building their dream home and we’re so thankful that this has been recognised. To win the award for ‘Architectural Practice of the Year’ would be the perfect reward for all our efforts.”
As part of the submission, Benjamin and Jodie had to highlight a project which has given them the most satisfaction in terms of creativity, client satisfaction and both personal and professional development. They chose to focus on a chapel extension recently completed in Thurlaston, Leicestershire.
“This project is a favourite of ours for many reasons,” explains Benjamin. “We were tasked with designing an extension that not only provided the chapel’s congregation with a functional space, but also enhanced the area and showcased the original property, its history and character – including that of the graveyard!
“The main feature of the design was the addition of a glass gable end and large glass panels to frame the outdoor space, highlighting the graveyard and creating a better connection between the Chapel and its outside space.
“It’s a project we’re incredibly proud of and to be able to include it as part of our entry was a real honour.”
The National Building and Construction Awards celebrate the achievements of industrious, hardworking and enterprising building and construction businesses. Judged by a national panel of judges, the winners of all categories will be announced at a black-tie ceremony in London on 18 November 2021.
Construction begins on 18-unit Rutland industrial development
Tungsten Properties, the mid-box industrial and warehouse developers, has started construction of its 18-unit industrial and trade counter site in Oakham, Rutland, Leicestershire.
The 3.79-acre (1.53-hectare) site at Panniers Way in Oakham to the east of Leicester was granted planning consent in May by Rutland County Council.
Tungsten Properties will provide 18 high specification industrial and trade counter units between 1,000 sq ft and 9,000 sq ft and include a small amount of retail and fast food uses.
The site sits within a wider masterplan of development to include new residential development and commercial uses including BP/M&S Petrol Filling Station, Aldi Supermarket, McDonald’s restaurant, and a Marstons’ pub.
Construction has been celebrated with a ground breaking ceremony with representatives of Wilten Construction, Tungsten Properties and Phillips Sutton.
The new units are due to be available from early Spring 2022.
Jenny Clarke, associate development director, Tungsten Properties, said: “Oakham has a strong market with high demand, so we’re excited to get started to build these new high spec units for local and national businesses.
“Already, more than 60% of units are under offer to companies to let them, showing the strength of demand out there from businesses. We look forward to announcing the news as soon as we can.”
Reid Commercial Property and Phillips Sutton are joint letting agents. Wilten Construction is the appointed contractor.
New town centre community hub set for Mansfield
Mansfield District Council has started working towards establishing a town centre community hub.
The scheme – Mansfield Connect – would be an ambitious, new, multi-occupancy premises housing a variety of public services along with spaces for private sector occupiers, too, such as food and drink outlets.
The project, which is being led by the council, will form a central part of its bid to round two of the government’s Levelling Up Fund (LUF).
The Department for Work and Pensions, Nottinghamshire County Council, West Nottinghamshire College, Nottingham Trent University, health partners, and volunteering co-ordinator the CVS have been invited to be involved in the hub.
The scheme would see the council relocating from the Civic Centre to a site in the town centre and the Civic Centre being redeveloped.
As well as improving the delivery of public services by providing a range of agencies accessible in one core area, it is envisaged that the new hub would generate extra footfall in the town centre which would benefit existing retailers and help drive regeneration by boosting investor confidence.
The scheme would also align with the aims of the council’s emerging Town Centre Masterplan and broader council strategies in relation to its Growth objectives alongside priorities for Aspiration, Wellbeing and Place.
Cllr Stuart Richardson, Portfolio Holder for Regeneration and Growth, said: “Moving the council to the town centre and joining forces with other authorities and public sector agencies makes a lot of sense for a variety of reasons.
“Bringing services together will make them more joined up, accessible and work better for the public. And it will enable our customers to kill two birds with one stone, so as well as conducting any business they may have in the Hub, being in the town centre means they may stay a while, too, and perhaps visit the bank, or do some shopping, or meet friends for lunch, for instance. This increase in town centre footfall would be a win-win all round.”
A recent report on the scheme to the Mansfield Place Board detailed the aims of the LUF, which focuses on capital investment in local infrastructure and investment in regeneration and growth in places of low productivity and connectivity. Bids can be for up to £20m.
The first round of bids to the Fund closed in June and the council chose not to enter that bidding round due to its tight time frames and other work being done on bids to the government’s Towns Fund and Community Renewal Fund.
Instead, it is planning to submit a proposal for round two of the funding bids to the LUF. Further information has been requested by the council from government about the deadlines for the next round and it is awaiting clarification.
Bids must focus on how they deliver transport improvements, cultural investment and town centre regeneration, such as upgrading eyesore buildings and dated infrastructure, and repurposing brownfield sites.
They have to demonstrate how the investment could be used to reduce crime and bring public services and safe community spaces into town and city centres.
The LUF is designed to target places with the most significant need and Mansfield has been ranked at level one out of three, putting it among those areas with the highest need.
As such it has qualified for £125,000 in funding to help it draw up its bid to improve its chances of success in the bidding process. Among the aspects that a bid to the LUF has to demonstrate is value for money and an ability to deliver its schemes within a specific time frame.
The council has engaged the services of project management specialists ARC Partnership to support the development of the project feasibility, costings and design options.
They will be working closely with consultants Allies & Morrison who are working with the council on the emerging Town Centre Masterplan.
In the meantime, the council has set up a Steering Group to guide development of Mansfield Connect and in securing commitment from partners for their operational requirements within the new hub. This information will be used to help build the case for the LUF bid.
Nottinghamshire County Council has shown support for the idea of a new civic hub in Mansfield with the plan aligning with the county council’s wider aim of reducing its carbon footprint. With more staff working from home and hybrid working, it is reducing its offices from 17 to nine.
Chairman of its Economic Development and Asset Management Committee, Cllr Keith Girling, said: “We are looking into potential plans to move some council services in Mansfield into a potential public services hub, planned by Mansfield District Council as it looks to move into the town centre.
“It is early days, but this approach makes sense as we look to share resources and make council building more multi-functional and include things like conference facilities and, potentially, libraries.”
Opus Trust Communications acquires Adare SEC
Opus Trust Communications, the omnichannel communications specialist headquartered in Leicester, will become a £110m turnover business as it acquires Adare SEC for an undisclosed sum from its private equity owners, Endless LLP.
With sites in Huddersfield, Redditch and Nottingham, Adare SEC is an integrated communications provider specialising in very similar sectors to Opus Trust.
The deal will take the headcount at Opus Trust Communications from 180 to 530, exemplifying the size and scale of the agreement.
Following the strategic acquisition of Critiqom in 2019 and DocCentrics in 2020, the company will once again strengthen its capabilities and geographic footprint within the transactional communications market.
Chief Executive of Opus Trust Communications, Tony Strong, says: “This acquisition is a significant moment in our story, and we look forward to welcoming both colleagues and clients from Adare SEC to the Opus Trust Group.
“While the market is contracting, we are investing to allow us to grow at scale and pace. We made the commitment to become a £100m business within five years and have achieved that in under three.
“With complementary specialisms, we are now a much larger and more resilient business, but we don’t want to lose sight of our values or our wider ambitions. Our focus is to become the largest and best transactional communications partner in the UK market.
“As an acquisitive organisation we are already looking at further opportunities, however the relationships we have with our customers and the way we work so closely with them will remain our point of difference.”
Rachael Nevins, CEO of Adare SEC, says: “When we began the sale process of Adare SEC, we wanted to ensure that the business found the right new ownership. We are delighted that Opus Trust is that new partner who shares our vision of the future of the industry, our culture and our values.”
As part of the sale, Ms Nevins will be stepping down from her role as CEO.
She continues: “It has been an honour to lead Adare SEC and its fantastic workforce over the last four years. All of our colleagues had to go the extra mile in recent times, dealing with impact of the pandemic, and I am humbled to have had the opportunity to represent them all.”
James Woolley, partner at Endless, added: “The sale to Opus Trust represents the culmination of five years of work to transform the business into a leading digital and integrated communications company in this industry. It has been a pleasure to work with Rachael and her executive team and I wish them, and all of our colleagues at Adare SEC, a bright future as part of the Opus Trust Group.”
Lincolnshire housebuilder acquired by global investment management firm
A Lincolnshire housebuilder has been purchased by a global investment management firm.
Current owners Karl and Helen Hick have sold the home building activities of the company to the funds managed by PIMCO.
John Anderson, the current Chief Executive Officer of Larkfleet Group, and Alastair Gordon Stewart, current Chief Financial Officer, will stay on to lead the company under the new ownership.
PIMCO’s decision to purchase the company reflects the heritage of the brand that Karl and Helen have built over twenty years, creating the platform for significant further growth, and the strength and experience of the senior management team.
The sale covers all the house building activities of Larkfleet Group. The new company will continue to trade under the brand names Larkfleet Homes and Allison Homes.
PIMCO will back the existing management team with significant investment to help deliver the business’s ambitious strategy to deliver over 2,000 homes a year within the next five years, maintaining a focus on the delivery of high-quality developments using innovative technology and construction methods.
Karl is to remain as an advisor to the new company to help the transition. Karl will also retain a financial interest in major existing housing projects.
Karl and Helen will retain all the non-home building interests of the Larkfleet Group and will continue their work supporting community and charitable projects, particularly the recently formed Karl and Helen Hick Charitable Trust.
New ownership for Leicester property management business
Bellrock Property & Facilities Management Limited, a provider of specialist risk focused workplace & property management solutions in the UK, has, after a successful partnership with Horizon Capital, secured new ownership and backing from Sun European Partners, LLP to accelerate its potential for future growth.
Sun European is a private investment advisory firm that focuses on defensible businesses in growing markets with tangible improvement opportunities. Sun European’s focus on leading well performing businesses with strong management teams and good prospects will secure future growth for Bellrock. This new partnership will enable Bellrock to capitalise on their unique and differentiated business model through its proprietary and integrated technology platform Concerto.
During Horizon Capital’s ownership, Bellrock has seen its revenues quadruple to over £160m. In addition to organic growth, the acquisition of 11 add-on companies has built scale, depth in new sectors and geographic reach while broadening Bellrock’s capability set and adding strength to its technology offering. The transformation has been underpinned by continuous investment in Concerto, putting Bellrock in a position to capitalise on estate digitisation and future trends in the FM and property market.
David Smith, Chief Executive Officer, Bellrock Property & Facilities Management, said: “We are very excited to be partnering with Sun European Partners, giving us the opportunity to accelerate growth, focusing on key market challenges around sustainability and carbon net zero, whilst continuing our investment in disruptive technologies such as advanced automation and data analytics.
“Sun European Partners has an excellent track record of driving growth within its portfolio companies, leveraging its operational experience to support defensible businesses which makes them the ideal partner for us.
“I would like to thank Horizon Capital, who through our journey together, have helped us deliver, expand, and evolve Bellrock into the market-leader it is today. We are proud to offer the FM market a differentiated proposition challenging the traditional low service FM delivery model. Our management team are fully committed and excited about the next stage of our journey and working with Sun Capital to realise the full potential of the business.”
Gerry Higgins, chairman, Bellrock Property & Facilities Management, said: “Witnessing Bellrock’s growth from a small retail focused Facilities Management provider into its present position as the UK’s leading holistic FM and property services business has been one of the highlights of my business career.
“With technology at its core and customer service firmly established in its DNA, the company is now uniquely positioned to benefit from the opportunities provided through this exciting partnership with Sun European Partners.
“Clear strategic insight coupled with supportive capital investment from Horizon Capital has enabled David and his team to build an innovative, market disrupter in the traditional property and FM sector. I would like to thank our advisors Rothschild & Co, Travers Smith, Graph Strategy and KPMG for their support in helping make this transaction possible.”
Paul Daccus, Managing Director, Sun European Partners, said: “We are very excited to be partnering with Bellrock and continue its excellent track record of organic growth as well as its buy and build strategy.
“They have a highly experienced management team with a proven track record of integrating acquisitions and gaining market share through their proprietary software offering. We look forward to partnering with the team as they transition to their next phase of growth.”
Detailed plans in for 426,000 sq ft Nottingham industrial scheme
HBD has submitted detailed planning for its 426,000 sq ft New Horizon industrial scheme following a £53.8m forward funding deal with Oxenwood Real Estate, announced in September.
New Horizon is a landmark 28-acre site, part of the former Imperial Tobacco plant. The redevelopment will see the delivery of seven new industrial buildings up to 145,000 sq ft, all of which will be developed on a speculative basis.
The development secured outline planning consent in 2019. Now, detailed plans have been submitted to Nottingham City Council for permission for go-ahead at the site.
HBD is aiming to start on site early next year, with completion expected in Q1 2023 following the earlier demolition of the Imperial Tobacco factory.
The developer has repurposed or recycled more than 90% of the original structure throughout the redevelopment of the brownfield site. The team has used various techniques to reduce the scheme’s environmental impact, such as the crushing and reuse of concrete from the old building.
Justin Sheldon, director and head of region at HBD, said: “This is a major scheme for Nottingham – it will not only bring a disused brownfield site back into use, but could create up to 1,000 new jobs.
“New Horizon is a very well-located scheme and the new units will help to meet established demand for industrial stock in the Midlands, which remains in very short supply.”
Lorraine Baggs, head of inward investment at Invest in Nottingham, said: “Developments like New Horizon play a vital role in ensuring that Nottingham has the right space to attract businesses into the city, while also regenerating and restoring life to our old industrial sites and creating much-needed new jobs. This is a fantastic scheme and we look forward to seeing it take shape early next year.”
Foresight exits eCommerce fulfilment specialist, returning 3.4x in less than two years
Equity investment firm Foresight Group and other minority investors, have successfully exited Castle Donington-based Selazar, a logistics management software platform, after the firm sealed a multi-million pound investment from an unnamed investor.
Based in Castle Donington, Belfast and London, Selazar is an end-to-end eCommerce fulfilment platform which aims to simplify and reduce the costs of fulfilling ecommerce sales orders for retailers and logistics providers.
Selazar connects the four major components of ecommerce order fulfilment: product suppliers, fulfilment centres, couriers and retailers. Retailers are able to readily view and manage their stock, sales orders and returns through a single, unified platform.
Foresight has taken a proactive approach alongside the management team to strengthen the business. Since the investment round in November 2019 led by Foresight, Selazar has fully launched its proprietary software platform and opened a base in Castle Donington, Leicestershire, strategically positioned in an area with a strong logistics presence.
This also gave the company access to the large SME retailer market and its fulfilment partners, which has supported material growth in the company’s customer base. To meet this demand, Selazar has grown its team, with 30 jobs created.
Selazar’s new investment partner will provide £20m of further growth capital to support expansion across Europe, the US and Latin America with total headcount projected to quadruple over the next year.
The sale represents a return of 3.4x to Foresight with an IRR of 135% after less than two years and the first successful exit for the Foresight Midlands Engine Investment Fund. This is also the seventh exit completed by Foresight’s Private Equity team in the last 12 months.
Jack Williams, CEO of Selazar, said: “Foresight’s support over the last two years has been invaluable in helping us establish our business, launch our innovative platform to market and deliver those initial, critical phases of growth. Through the support of Foresight and other investors, we have been able to attract our new investment partner, which will help us achieve our next phase of global growth.”
Adam Huckerby, senior investment manager at Foresight, added: “It has been a pleasure to work with Jack and the whole Selazar team over the last two years. This is an excellent example of how emerging businesses can benefit from regional funding initiatives such as the Midlands Engine Investment Fund to support their growth plans and as a bridge to a larger investor. We wish the team all the best in the next chapter of their exciting journey.”
Kevin Harris, chair of the LLEP Board of Directors, said: “It’s great news to see a Leicestershire business receive investment through the Midlands Engine Investment Fund and move to the next stage of growth. This success story has also created 30 local jobs in LLEP priority sectors of tech and advanced logistics, with more to come as the business continues to grow.
“The Midland Engine Investment Fund was set up to support businesses to grow and create jobs across the region and I am delighted to see another Leicestershire business benefit from the fund. I wish Salazar every success for the future.”
Foresight and the other shareholders were advised by Browne Jacobson, Tughans and PwC.
