Orders, revenue, profit and cash flow improve at Rolls-Royce
Orders, revenue, profit and cash flow all improved at Rolls-Royce in 2022, according to full year results, though its new CEO has said the company is “capable of much more.”
The Derby firm hailed strong new order wins during the year in Civil Aerospace and Defence and a record order book in Power Systems.
Meanwhile the business posted an underlying operating profit of £652m, £238m higher than the prior year with the increase driven by Civil Aerospace and Power Systems, and underlying revenues of £12.7bn, up from £10.9bn.
The firm also highlighted free cash flow from continuing operations of £505m, £2bn higher than the prior year, led by engine flying hour recovery.
Furthermore, net debt of £3.3bn was down from £5.2bn at end 2021, due to disposals and improved cash flow.
Looking ahead, Rolls-Royce is focusing on a transformation programme to deliver further performance improvements from 2023.
Tufan Erginbilgic, CEO, said: “It is an honour to lead Rolls-Royce, one of the world’s most trusted brands and a business with strong positions in growing markets. Our people take tremendous pride in our innovation and engineering solutions. Together, we must now move at pace and harness that pride to create a high-performing, growing and competitive business.
“While our performance improved in 2022, we are capable of much more. Our transformation programme will improve our efficiency and commercial outcomes, and deliver a sustainable reduction in working capital. This will require a winning culture, underpinned by more effective performance management and a shared determination to deliver cash and reduce debt. Our success will enable us to reward investors for their support and invest in future growth.
“Our transformation programme is already underway and is moving at pace. It will include a strategic review so that we can prioritise our investment towards the most profitable opportunities. We will report the findings together with our medium-term goals in the second half of this year.”
Rail hub consultation is “incomplete and inadequate”
Hinckley & Bosworth Borough Council has submitted its first response after the application for the Hinckley National Rail Freight Interchange (HNFRI) was submitted.
The application, from developers Tritax Symmetry, was lodged with the Planning Inspectorate on 3 February 2023. The council had two weeks to comment on whether it believed consultation on the submission had been adequate.
The scheme, earmarked for 440 acres of land between the M69 and the Leicester to Birmingham railway line, is to the north-east of Hinckley – partially within the Hinckley and Bosworth Borough with the majority situated within the Blaby District – and would be based close to Junction 2 of the M69 to the north of Burbage Common.
Up to 268 hectares (equivalent to 662 acres) of land would be used for the construction of a rail terminal for the loading and unloading of freight trains under the proposals, providing 650,000 square metres of floorspace and up to 250,000 square metres of mezzanine space.
The council responded to the consultation on 21 February and advised the Planning Inspectorate:
- Time available for consultation was inadequate given the scale of the proposal and the information that had to be absorbed
- Some of the information available during consultation was incomplete, for example, highway modelling
- The baseline information used was incomplete in parts
- This rendered the consultation ineffective which falls short of the government guidance and case law on what constitutes effective consultation
Second phase of Unity Square office development approved
The next phase of Nottingham’s Unity Square office development is set to move ahead after securing approval from the council.
Peveril Securities and Sladen Estates are behind the major scheme on Queens Bridge Road, for which the original hybrid application was approved in January 2019.
Phase 1 of Unity Square is now complete and occupied by HM Revenue and Customs (HMRC).
Phase 2 would provide a 12 storey office development with 235,000 sq ft of space.
The reserved matters planning application was approved at a planning committee meeting yesterday.
Go ahead given to extend Nottingham building for student scheme
Plans to extend a Nottingham City Centre building to provide 104 student bedspaces have been approved.
Maven Property (Nottingham) LP are behind the proposals for the two storey building on Lower Parliament Street, whose ground floor is occupied by two retail units for Poundland and Bonmarche.
The plans for the site involve an upward extension of between one and three stories to create a building three to five stories in height.
The ground floor would be retained as retail use, with the upper floors used as 104 student bedspaces with a mixture of cluster and studio flats.
The development also includes communal lounges, a gym, a laundry room and cycle store with two small roof gardens.
The development would be three stories at the northern end facing Lower Parliament Street, stepping up to five stories facing Thurland Street.
Derby businesses go flat out to win flipping fantastic fundraising pancake race
Businesses across Derby went head-to-head in an annual Shrove Tuesday pancake race raising money for city children in the process.
Public relations agency Penguin PR battered the competition to lift the trophy, beating teams from doughnut makers Project D, sportswear giant HUUB and digital marketeers Alphageek.
The annual event was organised by staff at carbon composite company Pentaxia, in Alfreton Road, and was designed to raise money for YMCA Derbyshire’s new nursery provision, Derwent Stepping Stones.
Each firm taking part donated to the registered charity which will allow nursery staff to purchase a new water wall for the children’s outdoor play area, replacing a broken one.
Penguin PR director Sarah Newton said: “We’ve taken part in a few fundraising activities for the YMCA including the annual sleep easy event and the community meal; it’s such a brilliant cause.“We thoroughly enjoyed the race and, even though the combined age of our team was significantly higher than most of the others, it was flipping brilliant to win.”
It is the fourth time the annual race has taken place and other businesses taking part included Natwest, two teams from Pentaxia and a team from YMCA Derbyshire.The 25m relay was held over three heats, with each team member required to flip the pancake at the start, the middle and the end.
The winners received a carbon trophy and medals, while every competitor received a pot of honey made by Pentaxia’s own bees, who live in five hives at the Alfreton Road site.
Pentaxia Managing Director Tim Ollier said: “As a company we are very keen to give back to the local community and if we can have some fun and rope in some other local businesses then all the better.
“This year’s pancake day challenge was absolutely brilliant, and we’d like to thank everyone involved. We can’t wait for next year to try and win the trophy back.”
New report reveals recommendations to manufacture a digital future for industry
A major new report that seeks to future-proof the UK’s manufacturing sector, helping it adapt to, and benefit from, digital technologies has been published.
The Digital World 2050 report marks the conclusion of a six-year study funded by Connected Everything – an ESPRC-funded network led by the University of Nottingham comprising circular economists, digital manufacturing experts, and more. It has identified five key recommendations that will support the longevity of UK manufacturing.
Co-authored by researchers from the Universities of Nottingham, Exeter, Liverpool, and Cambridge, the study draws together evidence from a plethora of areas, such as policy literature and government documents, as well as conversations with leaders from academia, industry and policy that took the form of conferences, surveys and roundtables.
Dr Oliver Fisher, co-author and former research fellow at the University of Nottingham’s Faculty of Engineering, said: “When we started this horizon scanning work, imagining what manufacturing in 2050 would look like was a daunting prospect. But by bringing together of expertise from across disciplines we were able to gain new insights and perspectives on the challenges and opportunities that may emerge as digital technologies are embedded within manufacturing processes and workforces.
“I hope the knowledge generated within this report will help accelerate the transition towards a sustainable manufacturing future.”
To establish the recommendations, researchers identified four themes: industrial digital technologies in 2050; digitisation and the manufacturing workforce of the future; digital support for achieving net zero by 2050; and digitally enabled manufacturing excellence – from which five recommendations emerged strongly:
- Connect technology to manufacturers: To create opportunities, increase productivity and solve industry challenges.
- Reduce digital manufacturing knowledge barriers: To make solutions simple and intuitive for all users.
- Consolidate digital manufacturing guidance: So that manufacturers can access the relevant expertise to implement solutions.
- Support employee wellbeing during transition: To help them engage with digital transformation and not be left behind.
- Transparency of value chain data: To greater understand environmental and social impacts of manufacturing decisions and drive more sustainable choices.
Locally-owned franchise expands into London
A franchise has secured a key expansion just months after it was bought by Long Eaton entrepreneur Liam Hobbs.
Mr Hobbs bought the More Than Loft Ladders franchise last October – nine years after he became a franchise holder with the company and built up his business across Derbyshire, Nottinghamshire and South Yorkshire – operating from his base in Long Eaton.
The first new franchisee to join More Than Loft Ladders since the acquisition are London-based entrepreneurs Indika Wanigaratne and Krish Hapugoda who will be operating in Edgeware, Harrow, Uxbridge, Watford and Wembley.
Both have run several businesses in the South East – most recently a restaurant near Watford.
Mr Wanigaratne explained: “I first became aware of the business potential for loft conversions when I needed to do work on my own house to create additional storage space. I contacted local and national companies and was shocked by some of the standard of services on offer.
“Having supported the trades people who I eventually hired for the job, I started to look into diversifying my own business interests into this field and came across More Than Loft Ladders.
“Liam’s experience as a franchise holder himself and the comprehensive help and support he provides for everyone in the franchise is amazing and we are very much looking forward to building our business in this geographical area. Krish and I will be recruiting fitters so that we can concentrate on sales, marketing and customer service.
“More Than Loft Ladders is a growing business which operates in a competitive industry but, with the support of Liam and his team and the fantastic reputation that the company already has in other parts of the country, I am confident that we will make a success of our new venture.”
Liam Hobbs continued: “We already have seven franchise holders who cover a wide area from Liverpool to Northampton and are delighted to have Indika and Krish on board in this important patch around London so soon after acquiring the franchise.
“We have been working hard to cement the support package available to new and existing franchisees which ranges from a full training programme and customer finance packages. Having been a franchisee myself, I know how important it is to be part of a network with support, advice and additional services.
“This is a growing market – particularly in the current economic climate. Homeowners recognise that, rather than taking on more mortgage debt with a larger home, they can maximise the storage or living space in their current homes by converting the loft.
“Upgrading insulation at the same time also makes perfect sense in both the shorter and longer terms with heating bills continuing to rise at such an eye-watering rate.
“With a solid reputation and growing customer demand, I am confident that our growth plans will be achieved, and I look forward to providing personal and practical support to many more franchise holders in the coming months.”
New images reveal how Leicester railway station will look after radical overhaul
New images showing how Leicester’s railway station will look following a proposed multi-million-pound transformation have been shared by the city council.
Leicester City Council is planning to restore the historic station building back to its Victorian glory, relocating its main entrance so that it opens onto Station Street and directly faces the city centre.
The city council has already successfully secured £17.6million from the Government’s Levelling Up Fund to help realise the ambitious plans to revitalise the landmark building and create a more attractive and accessible gateway into the city.
Now, the city council, Network Rail and East Midlands Railway (EMR) are working in partnership to bring forward the ambitious proposals, with the support of key industry stakeholders.
City Mayor Peter Soulsby said: “Leicester’s railway station is a beautiful building but is in need of a radical overhaul to help it meet the needs of a modern city the size of Leicester.
“We have been working closely with rail industry partners to develop ambitious plans to revamp and revitalise the station. It is a major project that will make a huge difference to the city. It will help transform the area into a vibrant gateway and make a vital contribution to Leicester’s future growth and prosperity.
“We also have the chance to restore this historic, landmark building back to its Victorian glory.
“The award of over £17million from the Government’s Levelling Up Fund is a tremendous endorsement of the importance of this project. Since then, we have been carrying out detailed design work and we’re very excited to share new images that show how the station will look following its ambitious redevelopment.”
Will Rogers, Managing Director for East Midlands Railway, said: “We’re delighted the investment at Leicester railway station has been approved and we’re excited to work alongside Leicester City Council and Network Rail to significantly improve the facilities for our customers.
“The investment will see the iconic Leicester railway station restored back to its Victorian glory. The development will transform Leicester, as the gateway to the city, by encouraging integration with the surrounding community and offering an improved customer experience to all station visitors.”
Gavin Crook, Principal Programme Sponsor for Network Rail’s East Midlands route, said: “The new images show just how far this project will transform Leicester station entrance, bringing better facilities and creating a fitting gateway to the city.
“We’ll continue to work closely with Leicester City Council and East Midlands Railway to deliver these ambitious, major improvements for passengers.”
Under the plans, the area outside the entrance will be remodelled with a ramp and steps leading up to the main entrance to the main concourse and ticket hall. The ticket hall itself will be re-configured and opened up to provide more space for passengers. New skylights will be installed in place of the existing suspended ceiling to further enhance the sense of space and let more natural light into this part of the building.
A new secure cycle store will be created close to the new entrance.
Station Street will be closed to traffic and replaced with an attractive new pedestrianised open space, with trees and landscaping, that will link directly to the Granby Street super crossing and into the city centre.
Taxis will be relocated from inside the existing covered main entrance hall – or porte-cochere – to a new purpose-built looped taxi rank area off Fox Street, immediately adjacent to the new entrance. This will free up the glass-roofed porte-cochere to be revamped as an attractive new plaza for cafes, bars or retail.
The original Station Street façade of the Grade II-listed station building will also be revealed and carefully restored.
The proposed transformation will require the demolition of the Parcel Yard pub building and the next-door taxi office. The owners have been informed of the plans and negotiations are ongoing.
Planning and listed building consent will also be required before work can start on site. If given the go-ahead, work is expected to start on-site later this year.
Before then, people will be invited to have their say on the proposals when an online consultation and digital walkthrough of the plans launches next month.
Strongest year to date for Midlands deal activity
Deal activity in the Midlands marked its strongest year to date in 2022, with 1,068 transactions up by 2.3% year on year and a total value of £26.8bn, up by 22.6%, according to Experian’s M&A review.
The Midlands was the UK’s busiest region for deal making outside of London and the South East, with an involvement in 12% of total value and 15% of the total volume of all UK deals.
Value analysis shows that Midlands mega deals valued at over £1bn were up by 20% to six transactions, while there was also a strong upturn in the smaller deal segment.
Experian suggests that 2022 was a period for big ticket exits and less private equity investment, with six acquisitions and only three IBOs, and four deals with an exit. Overall IBO and SBOs were down by 20% compared to 2021 and the volume of deals funded by venture capital fell by 11% to 135 transactions, bucking the national trend.
There was a significant cross-border element to Midlands deal making and 2022 was the busiest ever year for Midlands outbound investment in terms of deal volume, with 54 deals – up 35% year on year.
Meanwhile, inward deals were up by 20%, with 91 deals representing the highest figure for overseas M&A into Midlands-based companies since 2007.
By industry, the volume of transactions in the Midlands’ manufacturing sector remained consistent from 2021 to 2022 retaining the top spot in terms of both volume and value, up by just over 1% for each year on year.
Despite wholesale and retail volumes also remaining stable as the second most active sector in the Midlands with 257 transactions the value of these dropped around 50% compared to the previous year.
Most sectors have seen a positive improvement in the volume and value of deals, in line with the overall increase in transactions for the region. However, there were some notable exceptions with professional services dropping by 8% to 222 deals during 2022 and infocomms, which fell by 3.6% to 188 deals.
Experian’s research further shows a decline in the volume of private equity funded transactions in the Midlands, but the volume of deals funded by the first and second most active investors in the region, Midlands Engine Investment Fund and Business Growth Fund increased from 12 and ten in 2021 to 13 and 12 last year, respectively – suggesting that the core investors are still finding deals in the region.
In contrast the volume of debt funded deals has increased in the Midlands by both volume and value up by 6% and 34% on the last year results.
The two most prolific debt providers were HSBC with 12 (totalling £49m) and Shawbrook Bank with nine deals, while SME Capital and Thincats both provided debt for eight transactions each.
Notts green hydrogen pioneer backed with £36m investment
Nottinghamshire-based green hydrogen pioneer GeoPura has received £36m investment from global industry leaders, with the round led by GM Ventures, the investment arm of General Motors, and co-led by Barclays Sustainable Impact Capital with participation from SWEN CP and Siemens Energy Ventures to scale its green hydrogen business, which is replacing diesel-fuelled generators and enabling zero-emissions energy across the board to create a more sustainable world.
The world-renowned investors will also act as strategic partners for GeoPura as it scales its hydrogen power generation technology.
GeoPura currently provides hydrogen power to Balfour Beatty, HS2, National Grid and the BBC among other sustainability-driven customers, replacing traditional diesel generators with its Hydrogen Power Unit (HPU) technology.
The HPUs are used for temporary, supplementary, off grid and backup power. GeoPura plans to grow the use of hydrogen into other hard-to-decarbonise areas of our energy system, such as EV charging and supplementary grid power, as economies continue to electrify.
With hubs in Nottingham and Newcastle upon Tyne in the UK, the £36m investment will enable GeoPura to mass manufacture HPUs alongside partner Siemens Energy, increase the production of green hydrogen to fuel the units and drive green skills in the North East and throughout the UK, while supporting the global deployment of the technology.
GeoPura plans to deploy a fleet of over 3,600 HPUs by 2033, providing clean, low-cost reliable power, and displacing more than six million tonnes of CO2 emissions through their operation over their life.
In response to customer demand, the company aims to bring a number of new products to market, addressing smaller and larger power requirements. The company will work closely with its new strategic partners to advance the technology needed to enable the mass electrification that underpins decarbonisation.
Andrew Cunningham, CEO of GeoPura, said: “Green hydrogen is too often seen as a technology that will happen in the future, but GeoPura and our partners are delivering a commercially viable technology, today. The world can’t afford to wait a decade for green fuels to scale – we must act now.
“This investment allows us to build on our installed base of HPUs and hydrogen production infrastructure to stimulate the green hydrogen economy, and then expand the use of clean fuels into other hard-to-decarbonise areas of our energy system.
“We have secured the right mix of investors, forming strategic partnerships that not only provide the funds to enable us to scale rapidly, but also the skills and resources to accelerate the transition to zero emission fuels. With the support of our investors we can help turn the market on its head and build a green hydrogen economy this decade, not next.”
“The need for green hydrogen energy solutions is expanding as a wide range of customers move toward replacing diesel-powered sources,” said Wade Sheffer, Managing Director, GM Ventures. “Our investment in GeoPura demonstrates our focus on scaling breakthrough innovations that can advance sustainability, while supporting GM’s progress toward an all-electric, zero-emissions future. GeoPura’s HPUs and GM’s HYDROTEC fuel cell expertise have the potential to provide better energy solutions across industries.”
James Ferrier, Director, Principal Investments, Barclays Sustainable Impact Capital, said: “Building low-carbon capacity and capability in our energy supply is key for a timely transition to net-zero. Whilst most of the focus in the UK is rightly on ‘greening’ our energy grid, industries which are reliant on fossil-fuel powered generators – such as construction, film production and events – should not be forgotten.
“Establishing tailored methods of off-grid green energy generation such as GeoPura’s Hydrogen Power Unit technology will be crucial for the decarbonisation of these industries, and we are excited to support GeoPura as they begin to scale.”
François Pasquier, Investment Director at SWEN CP, said: “SWEN CP, through its impact strategy dedicated to renewable gas infrastructures in Europe, is proud to support the growth of GeoPura and to enable carbon emission reductions in hard to abate sectors. We believe that the quality of the team, the robustness of the technology and the strategic partnership with Siemens Energy are the perfect ingredients to make GeoPura a successful solution to tackle climate change.”
Kendra Rauschenberger, General Partner at Siemens Energy Ventures, said: “Having worked alongside GeoPura from the early days, it has been incredible to see the development of this business as more customers turn to utilizing green hydrogen for their sustainable energy needs and commitments.
“At Siemens Energy Ventures, our focus is on building, investing in and scaling up start-ups that can make a real difference to the complex energy transition our world is facing. Our strategic investment, alongside the investments from all partners, make GeoPura ready for its next phase of rapid growth. We look forward to being part of the journey.”
