Resilience of Midlands’ mid-market businesses boosts BDO revenues by 11%
BDO has posted an 11% increase in revenues to £809m for the financial year 2021/22 with growth across all three of its service lines of audit, tax and advisory.
Announcing its results, BDO cited the reasons for growth as being the resilience of its core market of entrepreneurial, high-growth and mid-sized businesses in the face of difficult economic circumstances and the hard work of its people.
The firm has made significant investments in the business after BDO partners made the strategic choice, at the start of the year, to raise levels of investment.
In the Midlands, this includes moving to a prominent office building in the centre of Nottingham, cementing its commitment to the East Midlands market, a focus on improving audit quality, recruiting an additional 111 experienced people, promoting over 100 employees, committing to the recruitment of 48 trainees to start in the 2022/23 financial year, increasing salaries and investing in quality, new technology and digital applications.
Overall, an additional £70m was invested in people, quality and technology across the entire firm.
The decision to invest in additional people – taking the firm from 6,000 to 7,000 – was designed not only to deal with the increased demand for services but to also promote a healthier work-life balance by spreading workloads across more people.
As a result of the investments and the return to pre-COVID levels of costs, profit before tax was down 8% to £187m. While these high levels of investment mean a planned reduction in FY21/22 profit and partner pay, BDO believes that the focus on longer-term sustainable growth is the right decision.
Kyla Bellingall, Midlands regional managing partner at BDO LLP, said: “Our strong growth this year is down to the resilience of our core market of high-growth, entrepreneurial businesses, combined with the hard work and ability of our people. During such uncertain economic times, businesses like ours need to invest in skills to stimulate growth and, ultimately, the economy. We’re using the proceeds of growth to invest in our people, for the long-term, with an additional emphasis on wellbeing, work-life balance, quality and innovation.
“This is particularly so in the Midlands, where we have created a truly unique and inclusive space in our newly opened Nottingham hub in the heart of the city.
“We have also made a significant investment in senior talent with partner and director appointments, across areas such as VAT, forensic accounting, business tax, transaction services and business outsourcing. We remain 100% committed to rewarding those within our business who continue to deliver high-quality services to our clients and audited entities day in, day out.”
All three areas of the overall business – audit, tax and advisory – performed as expected in the 2021/22 financial year.
The national audit business posted revenues of £324m, up 17% on the previous year; with the firm-wide tax practice generating revenues of £199m – an increase of 3%; while BDO’s national advisory revenues grew by 10% to £286m.
Bellingall added: “The overriding theme of this and future financial results is the strong focus on the wellbeing of our people and the quality of our work to deliver controlled and responsible growth. That principle forms the basis of how we design, and invest in, our culture and governance.
“The global economy continues to be in a state of upheaval with extreme levels of uncertainty and volatility. Despite these conditions, our business has proven resilient and strong. We’re confident in our future, and firmly believe our investment will consolidate our market position and embed the highest standards of quality ahead of our next stage of growth.”
Joules on the cusp of rescue deal
The administrators of Market Harborough retailer Joules are on the cusp of a rescue deal with The Foschini Group, according to reports from Sky News.
The South African group, which owns brands such as Phase Eight and Hobbs, is said to be in advanced talks to take on three-quarters of Joules’ shops.
Hundreds of jobs, however, could be lost with the closure of the remaining stores.
The news comes after reports earlier this month indicated The Foschini Group had been in discussions with Joules for several weeks – ahead of it appointing administrators – with an offer of investing in the business in return for a substantial stake.
Will Wright, Ryan Grant and Chris Pole from Interpath Advisory were on Wednesday 16 November named joint administrators of Joules Group plc and Joules Limited.
At the same time, Will Wright and Ryan Grant were appointed joint administrators of Joules Developments Limited and The Garden Trading Company Limited.
Joules is one of the UK’s best-known retail brands, renowned for its premium, colourful clothing and homewear products, inspired by country living. Headquartered in Market Harborough, the group currently operates a total of 132 stores across the UK, employing over 1,600 people.
According to Sky News, a deal could be struck as soon as Wednesday.
Liquidators appointed to Nottingham Castle Trust
Following the recent announcement by Nottingham Castle Trust (‘the Trust’) that it was taking steps to place the Trust into liquidation, Tim Bateson and Chris Pole from Interpath Advisory were formally appointed as joint liquidators to the Trust on 29 November 2022.
The Trust is an independent not-for-profit charitable trust which managed and operated Nottingham Castle on behalf of Nottingham City Council. The popular tourist attraction in the heart of Nottingham city centre comprised historic caves, museum and exhibition galleries, welcoming over 100,000 visitors through its doors in the period since Summer 2021.
The Castle had recently undergone a programme of significant renovation and refurbishment works, and while visitor numbers were rebounding steadily following reopening in the summer of 2021, volumes were still below forecasts, which placed pressure on cashflow.
While the Trust was in active discussions with stakeholders to secure additional funding, these discussions were ultimately unsuccessful. After considering their options, the Trustees took the decision to seek the appointment of the joint liquidators. The Castle closed its gates to the public on 20 November 2022.
In addition, on 28 November 2022, Tim Bateson and Chris Pole were appointed joint liquidators to Nottingham Castle Services Limited, the 100% subsidiary of the Trust which undertook all non-charitable activities including retail and catering operations.
As a separate legal entity which solely operated in the grounds of the Castle, the Directors of Nottingham Castle Services Limited concluded that following the closure of the Castle to visitors, there was no viable alternative to liquidation and made an equally difficult decision to take the necessary steps to appoint joint liquidators.
The majority of the employees of the Trust were made redundant in advance of the appointment of the liquidators, and all remaining staff have been made redundant with effect from today.
Tim Bateson, director at Interpath Advisory and joint liquidator, said: “Dating back to the time of William the Conqueror, Nottingham Castle has been at the heart of the city for centuries, bearing witness to civil wars, royal coups, fires and floods. As a modern-day museum, it has helped to preserve the cultural heritage of Nottingham, hosting tours, exhibitions and supporting local schools and community projects.
“Immediately following our appointment over the Trust, we disclaimed the various leases and operating agreements back to Nottingham City Council. Whilst the Castle is now back under the control of the Council, we will be working proactively with them over the coming weeks to ensure that there is a smooth handover to give them the best possible chance of being able to reopen the Castle at the appropriate time.
“We will also be providing support and assistance to the employees to enable them to claim any outstanding statutory entitlements which they are due, as well as working to realise the remaining assets.”
No refunds are able to be made in relation to advance tickets, annual passes or booked events, but individuals in this position should notify the liquidators of any amounts that they are owed by writing to nottinghamcastletrust@interpathadvisory.com.
Leicester office property sold for £2.8m
Custodian REIT has disposed of a 16,941 sq ft office property in Leicester for £2.8m, in line with its most recent valuation.
Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Leicester-based company’s external fund manager), said: “This asset was acquired as part of the company’s IPO portfolio in 2014.
“It has been fully let since, delivering an average yield of 9% per annum but has seen no rental or valuation growth over our period of ownership and this trend is expected to continue.
“We expect to invest the sale proceeds in the company’s remaining assets which have greater prospects for income and capital growth, better supporting the Board’s objective of increasing dividends in a sustainable way and enhancing the portfolio’s environmental credentials.”
Training provider for Construction Skills Hub appointed
Chesterfield College and the University of Derby have been appointed as the training provider for the new Construction Skills Hub in Mastin Moor, which is set to provide specialist training for thousands of learners as part of the Staveley Town Deal.
The innovative Construction Skills Hub will provide a practical platform for construction training, careers activity and work experience on a live construction site in Mastin Moor.
Over ten years, the hub aims to provide training, careers insights, and work experience for over 5,000 learners.
Councillor Amanda Serjeant, Deputy Leader of Chesterfield Borough Council, said: “It’s fantastic to be able to announce that the college and university will be working together to support this project. As well as providing support for trade skills, this partnership provides the opportunity to progress to a university level and develop the skills needed for roles like quantity surveyor or estimator, ensuring that everyone in Staveley can start, stay, and grow in the town.
“I look forward to working with them and our partners the Devonshire Group to progress the development of the Hub and start welcoming learners in Autumn 2023.”
A site has already been identified for the Construction Skills Hub in collaboration with the Devonshire Group, which will be bringing forward a new housing development in Mastin Moor. This will allow trainees to develop their skills on a live housing site, and in time there will also be opportunities to gain experience on other Staveley Town Deal construction projects.
Andrew Byrne, Property Development Director for Devonshire Group, said: “When I first saw the concept of a Construction Skills Hub and was asked if we could help deliver one for Chesterfield, my resounding response was yes, and I know just where.
“Devonshire Group are deeply committed to offering opportunities for learning and skills development, and to making a real difference to the lives and employment prospects of those in our communities, so we are delighted to be able to assist the Council in providing a home for the Skills Hub. Supporting the next generation of people who will help create our built environment is something to be truly proud of.”
Initially the Skills Hub will provide training in site and bench joinery, brickwork, ground works and electrical installation but in time the offer will expand to include training in retrofit and green technologies. It will be open to school leavers and other residents seeking to train or retrain.
Gavin Varley, Director of Advanced Engineering, Building Technologies and Construction at The Chesterfield College Group, explains: “We make a commitment to our students to not only provide them with the skills and qualifications they need, they are just the start, but with the work experience and industry knowledge that gives them the clarity of how and where to progress their career for years to come. We’re delighted to be a partner of this project as it comprehensively addresses this wider student experience, we commit to providing for all.”
Professor Chris Bussell, Pro Vice-Chancellor Dean of the College of Science and Engineering at the University of Derby, said: “We are delighted to have been appointed the training provider, alongside Chesterfield College, for the new Construction Skills Hub, which will provide real-world learning opportunities to thousands of people looking to embark on a career in the construction industry or develop their skills so they can progress onto new roles.
“The Hub will enhance the existing construction training offer by providing the opportunity for local learners to develop their skills in a live on-site centre. Our ambition is for this to be ground-breaking, delivering a model that builds on the innovative approach of other such centres, and we are looking forward to developing our relationship with Chesterfield College as well as working with prominent private sector companies on this exciting project.
“As a Civic University, we are committed to supporting the city and county’s long-term economic growth and prosperity, improving the life chances of people, developing a pipeline of talent that choose to live and work in the area, and addressing the skills gap through our involvement in initiatives such as the Construction Skills Hub.”
Working on a live construction site will not only allow learners to develop the skills they need, but it will also provide practical experience and help provide a link to construction companies where they could find permanent roles.
Staveley is set to benefit from £25.2 million of investment through the Town Deal with the aim to create a town where everyone can start, stay and grow. This investment will support eleven different projects across the town and provide a once in a lifetime opportunity to help shape the future by improving transport links, creating new housing, providing skills for local people, enhancing community facilities, and regenerating the town centre.
East Midlands business confidence rises in November
Business confidence in the East Midlands rose three points during November to 12%, according to the latest Business Barometer from Lloyds Bank Commercial Banking – conducted between 1st-15th November, before the Chancellor’s Autumn Statement announcement on Thursday the 17th November.
Companies in the region reported lower confidence in their own business prospects month-on-month, down three points at 19%. When taken alongside their optimism in the economy, up 10 points to 5%, this gives a headline confidence reading of 12%.
East Midlands businesses identified their top target areas for growth in the next six months as evolving their offering (38%), investing in sustainability (35%) and investing in their teams (35%).
The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
A net balance of 22% of East Midlands businesses expect to increase staff levels over the next year, up six points on last month.
Overall UK business confidence fell five points during November, but remained positive at 10%. Firms’ outlook on their future trading prospects was down two points to 25%, and their optimism in the wider economy dropped four points to -2%. Despite a seven-point dip, UK businesses remained positive about hiring intentions with 14% of firms aiming to create new jobs in the next 12 months.
All UK regions and nations, apart from the South East, reported a positive confidence reading in November, with seven recording a month-on-month increase in confidence. Of those recording an increase in confidence, Scotland (up 19 points to 24%), Wales (up 12 points to 17%) and the South West (up nine points to 5%) saw the largest monthly changes, with Scotland now the most optimistic overall.
Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “It’s great to see confidence among East Midlands firms back on the rise this month, despite the many challenges they continue to face, not least with ongoing supply chain issues and difficultly accessing the skills they need.
“As businesses look ahead to the New Year, many are primed to invest in sustainability to drive growth, with more than a third in the region listing this as one of their top priorities for the coming months. We’re here to help as businesses look to unlock the opportunities that Net Zero can bring.”
Business confidence in retail increased to 15% (up from 9%), perhaps reflecting a renewed confidence in trading prospects ahead of the festive season. However, business confidence in the manufacturing sector fell for the sixth month in a row, to 4%, down 9 points, the lowest confidence level since early 2021. The construction sector held gains made in October, remaining unchanged at 20%, although this level still remains weaker than in the first half of the year.
Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “Given the recent political and economic landscape, it comes as little surprise that economic optimism and business confidence have fallen this month. Pay growth expectations remain high by historical standards, which could signal ongoing difficulties ahead for businesses to fill vacancies. Looking ahead, it will be interesting to see if the clearer policy picture provided by the Autumn Statement will lead to business confidence moving in a more positive direction as we go into 2023.”
Local businesses give seal of approval for proposed improvements to rail route
Local businesses employing over 32,000 workers across the region have given a seal of approval for proposed improvements to the Coventry-Leicester-Nottingham rail route.
Midlands Connect conducted a business survey last month that showed staff at 70% of the local businesses surveyed mostly travel to work by car, with staff at a further 17% mostly commuting to work via train. However, 66% of local businesses surveyed said if the train line between Coventry, Leicester, and Nottingham is reconnected, employees would use it more.
Businesses thought the proposed improvements would benefit their operations, with 82% of firms saying it would make it easier to recruit, 73% expecting it would allow them to meet new customers, and 61% believing it would help their business to grow.
Of the businesses surveyed, 93% stated they and their employees would benefit from Coventry, Leicester and Nottingham being more closely connected, and 95% said reconnecting the rail line and improving local train service would support the Government’s Levelling Up agenda.
Midlands Connect’s plans would reinstate direct rail services between Coventry, Leicester and Nottingham for the first time in two decades, creating over 2 million extra seats on the region’s rail network every year.
The improvements would introduce two new trains each hour, also calling at Loughborough and East Midlands Parkway, alongside plans to improve line speed along the route, making journeys faster.
Currently, passengers travelling along the corridor have to get off one train at Nuneaton station, change platforms and board another, culminating in a slow, inconvenient service. Because of this, just 3% of trips between Coventry and Leicester are made by rail, compared to 30% of trips between Coventry and Birmingham, which enjoys a regular, fast and direct rail connection.
Commenting on the survey, Andy Clark, senior rail programme manager at Midlands Connect, said: “The results are overwhelming and show that businesses in Coventry, Leicester & Nottingham want to see improved rail services. They see this investment as an example of levelling up their area and helping their economy to grow.
“What the survey also showed is faster and more frequent trains will save businesses money, allow them to recruit more people and grow.
“We will use these results as part of our strategic case for investment in the corridor and I want to thank all the firms and organisations who took part in the survey.”
Sir Peter Soulsby, Leicester’s City Mayor, welcomes this enormous show of support from the business sector for direct trains again linking Coventry with Leicester. He added: “The survey results add to the already overwhelming case to reconnect the railway between these two major cities and help to reduce the reliance on the car.
“This project is important to both the local and regional economies and the Government is urged to press on with project development work as a priority within their rail programme.”
Wilko in the red as COVID-19 hits annual results
Sales have dropped at Wilko, while the firm has slipped to a pre-tax loss in its latest financial year, ended January 29 2022, as the pandemic continued to hit the Nottinghamshire retailer.
Sales reduced by £42m to £1.2bn, while profit before tax declined by £44.2m from £5.5m in the year prior to a loss of £38.7m.
Wilko noted that is has faced continued challenges to its trading environment, with the COVID-19 pandemic leading to a national lockdown in the first quarter of the financial year and the emergence of the Omicron variant during the final quarter of the year, meaning footfall was significantly impacted during its peak trading period.
The company says it was also hit by the severe and widespread disruption to supply chains globally, and resource shortages at its distribution centres.
With a difficult backdrop, Wilko’s directors are said to be satisfied with the results.
The annual results follow reports in The Times that the business is in talks to land an emergency loan as cost pressures grow for retailers as we approach Christmas, and Wilko agreeing a sale and leaseback deal with DHL at its Nottinghamshire distribution centre to unlock £48 million.
Stapleford affordable homes scheme completes
A development of 15 new homes for local people to rent or on a shared ownership basis has been completed on time and within budget by specialist affordable housing developers, MyPad.
Working on behalf of Futures Housing Group, MyPad has officially handed over the £2.5 million development on the corner of Nottingham Road and Cemetery Road in Stapleford.
Tom Spinks, director of MyPad, which is based in Beeston, explained: “This development has seen the transformation of a long-time vacant builders’ yard in Stapleford into affordable housing for the benefit of local people in the Broxtowe area.
“The demand for good quality affordable housing continues to grow and this is the latest development in our workstream to provide a complete service for registered providers and local authorities from land acquisition right through to the build.
“We are delighted to have handed over the development on time and within budget and look forward to seeing local families settle into their new homes in the near future.”
The mixture of two and three bedroom homes will be made available for people on Broxtowe Borough Council’s waiting list for council housing.
Ryan Dawson, Head of Planning and Economic Development at Broxtowe Borough Council, concluded: “Broxtowe Borough Council’s Planning department is pleased to finally see that this site has been brought forward for housing after years of trying to mediate its development.”
Upperton Pharma Solutions appoints T-SQUARED for build of new development and manufacturing facility in Nottingham
Upperton Pharma Solutions, a contract development and manufacturing organisation (CDMO), has appointed T-SQUARED as the Principal Design and Build contractor for its new Development and GMP Manufacturing headquarters in Nottingham.
The new site will be built at the recently opened Trent Gateway Business Park in Beeston, situated less than two miles from Upperton’s current headquarters in Albert Einstein Centre, Nottingham Science Park. The 50,000 ft² facility marks a significant expansion for the company and will incorporate ten new GMP manufacturing suites, Quality Control laboratories and dedicated Analytical and Formulation Development laboratories including Pilot Plant facilities.
The appointment of T-SQUARED as the principal contractor is a hugely important milestone for the new site development project, which is expected to complete towards the end of 2023.
Upperton CEO, Nikki Whitfield, said: “Our new state-of-the-art facility is being built to satisfy our increasing customer demand to extend our service offering further along the drug development pathway.
“The design and build of a site that can meet our clients’ requirements from a complexity, scale and potency perspective, whilst meeting all the necessary regulatory requirements, is an exciting but significant project therefore we are delighted we have been able to appoint industry leader T-SQUARED to partner with us on this task.’’
The Trent Gateway site will have the capability to develop and manufacture a range of dosage forms including oral solid dosage forms, liquids, semi-solids, nasal and inhaled products, allowing it to support early formulation development and provide clinical trial supplies from Phase 1 to Phase 3. The GMP facility layout, equipment and containment capabilities have also been designed to align with larger scale process trains, supporting batch scales of up to 250kg.
