Rolls-Royce has completed its sale of ITP Aero to a consortium of investors led by Bain Capital Private Equity, at an enterprise value of approximately €1.8 billion.
The completion of the transaction, which was announced on 27 September 2021, follows the announcement on 3 August 2022 of approval of the transaction from the Spanish government.
Sale proceeds were €1.6 billion. In addition a dividend of €0.1bn was paid shortly prior to completion. The proceeds will be used to reduce debt with the immediate repayment of Rolls-Royce’s £2 billion loan, which is supported by an 80% guarantee from UK Export Finance, helping to rebuild the Rolls-Royce balance sheet in support of its ambition to return to an investment grade credit profile in the medium term.
The sale of ITP Aero completes the disposal programme Rolls-Royce announced on 27 August 2020.
ITP Aero will remain a key strategic supplier and partner for Rolls-Royce across both Civil Aerospace and Defence programmes.
Bolsover District Council has announced that it will be taking over a number of building contracts after the contractor it used went into administration.
Woodhead Construction announced on Thursday 15 September 2022 that they were ceasing trading, putting contracts like the council’s Bolsover Homes scheme at risk.
However the council says it has stepped in and took the decision to continue to deliver both the live projects and any projects that are planned, without delay.
Bolsover District Council is currently investing £36m in building new council properties including current sites at Langwith and Shirebrook and is working in partnership with Elmton-with-Creswell Parish Council on the new Heritage and Wellbeing Centre and can confirm all projects will continue as planned.
Council leader, Steve Fritchley, said: “The key thing for me was to keep our building program going to ensure we deliver what we said we would. We have therefore employed the current site managers where appropriate and are talking to the sub-contractors to ensure they are fully engaged to make sure the projects continue.
“Once we learned the contractor was to cease trading we took swift and decisive action to ensure our assets were protected and we could continue to deliver what we had set out to do.
“I am a big believer in the council being in control of its own destiny so we are putting into place plans to ensure we have more control of our future residential and commercial projects.”
The NFU will hold a half-day conference on regenerative farming at the Midlands Machinery Show on 16 November.
The ‘mini conference’ is aimed at farmers who want to find out more about what regenerative farming is, beyond the buzz word. It will include sessions that outline regenerative farming practices; examine the impact of practices on businesses’ bottom lines; and talks from farmers already employing regenerative farming.
“I am delighted to be chairing the East Midlands NFU Conference this year,” says David Exwood, NFU vice president.
“The growth in interest from farmers about regenerative farming is clear to see and with this conference, our role will be to help members understand the principles and how it might fit into their businesses as food producers.”
Simon Fisher, NFU environment adviser, is organising the conference. “It is for farmers who see a lot of words about regenerative farming but wonder what it’s all about,” he explains. “Soil health is under the microscope at the moment, and that’s the foundation of regenerative agriculture – Henry Dimbleby’s National Food Strategy focused on it, as does the NFU’s own Foundation of Our Food report.
“We also know that Defra is putting together a soil health action plan, and there is generally a lot of interest in regenerative farming amongst farmers themselves – this conference will therefore help them make a bit more sense of it all.
“We know a lot of soils are depleted, and if we’re going to be a more sustainable industry going forward then we’ve got to start putting some of these things right – if nothing else for the next generation of farmers.”
Precision technology to minimise inputs and no-till drills can help with more sustainable farming, adds Mr Fisher. And there will be plenty of them to see and compare at the Show itself, along with farm business consultants offering advice on the various environmental and grant schemes available.
Survey will paint picture of regenerative farming in region
The NFU is also hoping to use the conference to run a survey about what regenerative farming practices farmers are already using in the region, says Mr Fisher.
“There are five regenerative farming principles, and a lot of farmers are probably already doing at least some of these, like cover cropping and min-till which plenty of people have been doing for about five to seven years now. It will be interesting to see who is doing what, and how many are engaged in the full regenerative farming spectrum.”
Octavian Security UK has appointed Rick Todd as its new armed forces champion.
Rick joined the army in 1985, and was born into a military family. His father was in the RAF.
Rick ceased his army career in 1999 with his final posting in Germany, as a full corporal before stepping into the security world and embarking on his new career path. He joined Octavian in July 2022 as its new operations manager.
The armed forces champion is the person who supports and works with HR to bring veterans, reservists and forces families into the company and assists them with their career path.
Reshma Sheikh, chairperson at Octavian Security UK, said: “We are proud of their Silver status through the MOD Employer Recognition Scheme, and our armed forces champion is the ‘go-to’ person for any staff seeking advice on a range of matters.”
Clowes Developments have appointed contractor TanRo to begin works at Beauchamp Business Park in Kibworth following planning consent being granted by Harborough District Council.
J.C. Balls & Sons have commenced earthworks which has seen plateaus, infrastructure and landscaping beginning to take shape just a short while since works began on site.
The commercial development comprises a circa 11acre allocated site located on the outskirts of Kibworth between Leicester and Market Harborough on the A6. Clowes will deliver a range of high-quality industrial units ranging in size from 1,270 sq ft to 10,085 sq ft available on a freehold or leasehold basis.
Left to right: Robin Orgill – TanRo, Dominic Jackson – Clowes Developments, Anthony Jamison – Postins Project Services Ltd, Dan Barker – TanRo, Mark Tynan – TanRo
Robin Orgill, director at TanRo, said: “It’s great to get this development under way. There’s a hive of activity around the site as we team up with J.C. Balls & Sons to begin preparing the site for construction. Storm water drainage has been installed at the main entrance and footings are being laid, an attenuation pond has been dug out and the rest of the ground is being levelled off in readiness for the next phase of development.”
Agents Phillips Sutton and TDBRE have been working closely with interested parties during the planning process which has seen Beauchamp Business Park “receive unprecedented interest from day one.”
A landmark address in Nottingham’s Professional Services Quarter has been sold in a deal brokered by property specialists NG Chartered Surveyors.
The former Actons Solicitors offices at 20 Regent Street in the city have been sold by a private pension fund to the J&R Group & Clarendon Land & Development of Nottingham.
Ross Jackson, Director of Clarendon Land and Development, said: “We are excited to enter the next chapter unfolding from our new premises on Regent Street. The location within the professional hub of Nottingham is perfect for welcoming clients and colleagues, whilst the property also allows us ample flexibility for the onward expansion of our business.”
Richard Sutton, Managing Director of NG, said: “This elegant Victorian building certainly attracted a lot of interest as it offered a rare opportunity to purchase a property on Regent Street.
“We arranged block viewings which generated a huge amount of interest and competitive bidding was strong. I have advised the pension fund owners for many years and advised that the time to sell was perfect. They are incredibly pleased with the outcome – as are we – and I’d like to thank Ross Whiting at Innes England for the important part he played with his client.”
Ross Whiting, Associate Director at Innes England acted for the new owner of the building. He said: “I am very pleased to have acquired this property on behalf of my retained clients following a competitive best bids situation. It was a pleasure to work with Richard Sutton of NG and I am glad we have been able to get this deal over the line as my clients now have an office to call their own in a prominent location.”
Russell Thompson at Massers acted for the pension fund in documenting the sale. Vik Moothia of Landsmiths acted for the purchasers.
Fairstone Wealth Management, which has offices in Leicester, has completed the acquisition of PAX Financial, marking its entry to the Irish market.
Based in Dublin, Irish financial planning firm PAX has 66 staff and advisers, offering a range of financial services for over 7,700 clients. Additionally, the acquisition secures funds under management of €200m.
PAX is also behind the well-established and hugely successful brand ‘AskPaul’, which offers jargon-free financial advice to consumers via social media channels. The service has been a unique player on the Irish landscape, combining expert insight with an innate understanding of digital trends to serve its target market.
Commenting on the deal, Lee Hartley, CEO of Fairstone, said: “We are delighted to welcome PAX into the Fairstone family. We have been looking to expand into the Irish market and in PAX, we have found the perfect partners to deliver this growth.
“The combination of Fairstone’s extensive experience in the UK sector with PAX’s management team, presence and local market knowledge, makes for a powerful partnership and opens many exciting opportunities.
“We both share the same values around ambition, growth and delivering first-class client outcomes and I believe that with Paul, Ian, Conor and the management team at PAX, we have found long-term business partners who will play a key role in the next part of our journey. Together we want to shape the future of financial advice in the Irish market.”
PAX CEO Paul Merriman, who will now take on responsibility for Fairstone in Ireland as CEO, said that the Fairstone proposition appealed as it is a proven and highly successful model in the UK which offers huge potential for the Republic of Ireland, a market which is on the cusp of expected regulatory change and consolidation.
Paul Merriman said: “The decision by Fairstone to acquire PAX is a measure of confidence in the Irish market and represents an exciting opportunity for the Irish consumer.
“Thanks to the hardworking team at PAX, we have spent over a decade developing our business and reach in order to facilitate a move such as this. The relationship with and support of Fairstone will further accelerate this growth in the months and years ahead.
“I would also like to welcome Fairstone into our home and look forward to continuing to work with the PAX team as we deliver on our collective promise to preserve, plan and protect the financial future of our clients.”
Earlier this year Fairstone celebrated three major milestones: securing it’s 50th acquisition, notching up 10 years of M&A activity and exceeding £100m of revenues.
The UK labour market is set to see an end to its 10-month streak in positive hiring intentions following a dip in productivity and growing recessionary fears according to the latest Business Trends report from accountancy and business advisory firm, BDO.
BDO’s Employment Index has seen an increase each month since October 2021, increasing 0.53 points to 115.33 in August. This was driven by record payroll numbers and has been reflected by the ONS unemployment figure which sank to 3.6 percent in the three months to July, its lowest point since 1974.
The labour market now sits at a turning point, however, with recessionary fears expected to put downward pressure on employment as businesses exercise caution in the coming months. Official data has started to reflect this with hiring intentions falling for the first time since August 2020.
Whilst employment continues to show resilience, BDO’s Inflation Index soared to an all-time high of 119.05 in August, its highest reading since the first Business Trends survey was first published in 1992. This was driven by a 1.15-point rise in the Consumer Inflation Index to 117.41, following a drastic rise in energy prices.
A combination of these soaring energy costs and inflationary pressures, coupled with input shortages, have led to a decline in business output and productivity. BDO’s Output Index fell to its lowest level since the third national lockdown to 95.66. Further pressure on the index is expected to take the reading below the 95-point mark – regarded as the point of contraction – signalling a recession on the horizon as production slumps and the threat of recession looms.
Mounting economic headwinds and the drop in productivity have driven a decline in business confidence with BDO’s Optimism Index falling for its fifth consecutive month to 100.80. This fall has been caused by a drop in the Services Optimism Index which, following a slump in consumer demand, now sits just above the point of contraction at 95.76.
However, the overall economic environment in the face of a recession, is expected to remain far stronger than during previous downturns. The unemployment rate is predicted to rise to 4.1% by the end of this year before peaking at 4.6% in Q2 2023 – much lower than the 7.9% recorded in the period¹ immediately after the global financial crisis.
Kaley Crossthwaite, Partner at BDO LLP, says:“We’re already seeing the impact of a challenging environment, with many businesses forced to make cuts and – in some cases – consider whether the business will continue to be viable.
“Soaring energy costs and inflationary pressures are headwinds we can expect to become more severe in the coming months, exacerbating the economic and political uncertainty both firms and consumers feel this winter – particularly as we await the first signs of a fall in employment figures and a recession approaches.”
Small firms need details about energy arrangements in order to plan for winter says FSB National Chair of the Federation of Small Businesses Martin McTague.
He said: “The statement leaves a lot of questions unanswered. It was a very high-level and sparse on detail so we will be working with the new Government to clarify what happens next. Small businesses’ instant reaction is that this is not enough information, yet, for them to plan.”
He said the unanswered questions included:
What will be the fixed unit prices (and standing charges) from October 1?
What practically will now change – will energy retailers suspend high quotes and contract offers and recalculate from October 1?
Will those who have accepted hugely increased bills in recent weeks be able to renegotiate to bring their bills down to reasonable levels?
As a small business normally gets quoted for at least 12 months, does that new quote include 6 months at a low rate and 6 months at a high uncapped rate? How does the energy retailer know who to quote extra support to, for the secondsix-month period?
He added: “This must not result in a cliff-edge after six months, with the withdrawal of support to all but ‘vulnerable’ targeted industries, sectors or types of business. The definition of who falls in and out of that support will need to be looked at carefully at the three-month review.
“Our work on vulnerability of small businesses to energy costs has revealed huge bills causing damage in virtually any sector that uses energy in any meaningful way, just like most households. Any future definition of ‘vulnerable industries’ will need to be broad, realistic and fair.
“The Government should also make good on its commitment for comprehensive help for all small businesses affected. If any have energy circumstances such that, in practice, they turn out not be covered by the measures announced today, the Government must keep an open mind and ensure policy decisions do not create another group of disenfranchised or excluded small businesses without support, just like it did on income support during COVID.”
The rise in Consumer Prices Index inflation by 9.9% confirms the sustained pressure businesses and consumers have been facing over the past year, according to Alex Veitch, Director of Policy and Public Affairs at the British Chambers of Commerce.
He said: “This is also reflected in the squeeze on businesses’ operating costs as Producer Price Inflation figures remain at record highs of 20.5% in the year to August 2022.
“While the rate of growth has eased slightly, this has been driven by a fall in motor fuel costs – other goods continue to rise.
“There is a limit to how long any firm can sustain these rising costs before something has to give. We know from our research that two thirds of businesses plan to increase their own prices.
“The size of last week’s Government intervention on energy prices should have a dampening effect on inflation when it is enacted.
“But the lack of detail on exactly how much help any individual business will get, and for how long, means very few will be planning to invest any time soon.
“There are also a whole host of other issues ranging from transport and shipping costs, raw material prices, energy sector regulation and the tight labour market that must be addressed.
“It is imperative the Government’s forthcoming ‘fiscal intervention’ provides business with confidence that there is a cohesive plan to take the economy forward.”
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