East Midlands housebuilder welcomes new Managing Director
An East Midlands housebuilder has made a key senior appointment.
Redrow East Midlands, based in Castle Donington, has appointed Michael Coker as Manager Director. He brings more than 30 years’ industry experience to the role.
Michael is trained as a chartered builder and has a first-class degree in Construction Management from the University of Leeds. His new role will see him take responsibility for driving the division forward, by securing land opportunities, launching new developments and overseeing the progression of a large team.
Michael said: “My father was in the business from the mid-seventies and as such I have always been around housebuilding. The varied and complex nature of the industry makes it interesting but also at times challenging and I love a challenge. The industry is full of fantastic people and some amazing characters.
“I am thrilled to be working for Redrow in my new role. The brand was built by an individual passionate about our industry, our product, and our people, and that is still true of the business today. I am most looking forward to seeing our team develop in their roles and continue to progress at Redrow – it is a fantastic industry, and we need to do more to attract the next wave of housebuilders.
“The greatest challenge will be keeping everyone focussed on what is important in a tougher marketplace, both in terms of production and sales. The industry is under pressure to deliver more new homes in a more sustainable manner than ever before.”
Previously chief operating office for Kier Living/Tilia Homes, Michael worked with a large team of people to deliver the sale and transfer of Kier Living from the Kier Group and into the Terra Firma owned Tilia Homes.
Commenting on this achievement Michael said: “My greatest achievement so far in my career was actually a team achievement and that was delivering the sale of Kier Living. I worked with some superb people and a fantastic CEO to deliver 500 people to a new owner and a new future.”
Michael finished by saying: “There is no single most satisfying part to the role. The challenge is what gets me out of bed in the morning and the ability for people to sometimes deliver the impossible allows me to go home satisfied. I’m thrilled to be taking the helm of Redrow East Midlands and can’t wait to see what we achieve in the coming years.”
BDO exceeds a deal a week in Midlands and East Anglia in 2022
Accountancy and business advisory firm, BDO LLP, advised on in excess of 50 deals in 2022 across the Midlands and East Anglia.
Among these deals, a significant proportion of transactions involved private equity, with cross-border deals also featuring strongly.
Deals spanned a range of sectors, including consumer, technology, manufacturing, financial services, transport and logistics, healthcare and life sciences, as well as automotive and support services.
Roger Buckley, corporate finance partner, M&A, said: “When you consider the economic headwinds that have been blowing strongly against businesses in 2022, the regional deals market over the last 12 months has been extraordinarily resilient.
“Deals are still getting done across all sectors, particularly those where long-term macro-economic and social tailwinds are supporting long-term growth. Specifically, deal volumes in manufacturing, TMT and healthcare remain strong, as the adoption of technology continues at pace.”
Highlights of transactions in the Midlands and East Anglia include: advising on the sale of Dorsey Construction Material to Röko; acting as reporting accountant on one of only a handful of IPOs in the region in 2022 – the AIM listing of Aurrigo International plc; advising on the sale of LTC Trading Holdings Limited and its subsidiary Lodge Tyre Company to Halfords Group plc; acting for Nottingham-based Albumedix Limited on its sale to Sartorius Stedim Biotech GmbH; advising on the acquisition of Norwich-based Lifeline 24 by Appello; as well as acting for Ipswich-based Woodward Markwell Insurance Brokers on its sale to insurance broking giants GRP.
Vinny Patel, partner, transaction services, said: “Consistently, we see fantastic management teams in great businesses, and business owners who have faced the most enormous struggles in recent years, who have taken everything in their stride and thrived. When you also consider the quality of businesses we have in the region, then there are so many reasons to be optimistic for 2023.
“The good news is that many corporates continue to see M&A as a core part of their growth strategy and investors have abundant capital. M&A drivers remain strong, as acquirers pursue cost efficiencies, digital transformation, green transition, new technologies, new growth markets and scaling up to become more competitive. As valuations have also softened from the giddy days of 2021, companies and investors understand there will be opportunities to seize.”
Forterra “well positioned to withstand continuing uncertainty” after “strong 2022 result”
Forterra, the manufacturer of clay and concrete building products, says it is “well positioned to withstand continuing uncertainty” after a “strong 2022 result.”
According to a trading update for the year ended 31 December 2022, results are expected to be slightly ahead of management’s expectations and also above pre-pandemic comparators.
Full year revenue of £450m is anticipated, 21% ahead of 2021 (£370.4m).
Stephen Harrison, Chief Executive of Northampton-based Forterra, said: “We are pleased with our strong performance in 2022 against a backdrop of severe cost inflation.
“There is considerable uncertainty as to the outlook for the UK housing market and accordingly demand for our products in the coming year. We did see signs of softening demand towards the end of 2022 and we are waiting to see how our customers’ spring new house selling season develops as the outcome of this is likely to be a key determinant of demand for our products during 2023.
“We remain confident that Forterra is well positioned to face this more challenging environment. The UK brick industry is ideally placed to displace imported products should demand fall, and with our new Desford factory we expect to benefit from the industry-leading efficiency this will offer. Alongside this, we retain a strong balance sheet with minimal debt.
“In the medium term we continue to expect to benefit from the attractive long-term UK market fundamentals of population growth, housing undersupply, a shortage of domestically-produced bricks and an increasing focus on the quality of housing stock.”
Sales increase at Eurocell while firm preps for weaker 2023
2022 saw sales increase at Eurocell, the manufacturer, recycler and distributor of window, door and roofline PVC products, though weaker markets are expected in 2023.
According to an update for the year ended 31 December 2022, group sales were £384 million, up 12% compared to 2021. The firm said that price was the key driver of sales growth.
The company noted that following a strong first six months of the year, new build, large contract and RMI project work continued to be robust throughout the second half of 2022. This was offset, however, by the impact of a cyber incident and a slowdown in smaller discretionary RMI work experienced by Eurocell’s branch network and trade fabricators in H2.
After a period of very strong demand, the Alfreton-based business believes the market is now returning to pre-pandemic norms.
In anticipation of weaker markets in 2023, Eurocell completed a restructuring programme in Q4 2022, which along with other cost saving measures, will reduce operating costs by approximately £5 million per annum from the start of 2023.
The firm also intends to temporarily pause its branch opening programme until the economic outlook is clearer.
Buyer steps in to acquire Scunthorpe United
Former Ilkeston Town chairman David Hilton has been appointed as chairman and owner of Scunthorpe United with immediate effect.
Hilton replaces outgoing owner Peter Swann, who had a ten-year period at the helm of the Iron.
Mr Hilton said: “I’m pleased to say the takeover has now been completed, and the deal includes the football club, stadium and surrounding land.
“The first job I’ve got to do over the next 48 hours is settle the winding up petition with the HMRC, which will help us get out of the transfer embargo we’re under, so we can bring some bodies in and strengthen the squad.
“Any remaining debts will be eradicated in due course and we’ll be looking to put the football club on a sustainable model as quickly as possible, while remaining competitive in whichever division we’re in.
“I can also add, if there is to be any development in and around Glanford Park, it will be purely for the benefit of the football club and to help it move forward, not for personal gain.
“It’s all been done very quickly, so there’s a lot I need to digest but I fully intend to interact with supporters. I just need a little bit of time for the dust to settle so I can understand the business fully.”
2023 Business Predictions: Sarah Parkin, director at Hollybeck
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Sarah Parkin, director at Hollybeck.
What a 2022 it has been! In my 20 years in the mortgage industry, never have I seen such turbulence and chaos than that of the latter part of 2022.
And I believe that with interest rates continuing to rise, and property prices set to decline, 2023 will continue to have its challenges.
Experts predict a 5-7% reduction in property prices for 2023. This will stabilise a bullish property market and put the buyer back onto some equal footing after some serious bidding wars! After an increase of over 12% during 2022 for the East Midlands*, this is a welcome calming of the property market for first time buyers and those moving up the ladder.
Whilst the mortgage figures for house purchases will reduce in 2023, we expect a big increase in the ‘remortgage’ numbers. With around four million people set to come off fixed rates in 2023, it’ll be another busy year for mortgage brokers. People will be worried about their future interest rate and, as we have seen these past few months, more and more people will turn to brokers for advice.
Mortgage affordability is under pressure due to the cost of living and interest rates, with many mortgage lenders reviewing their affordability models. Customers will find that they cannot borrow as much as they could because of tighter affordability and so we expect to see higher numbers of customers sticking with their current lender, as no affordability checks are made when switching to a new rate. Lenders have shown us that they intend to reward customer loyalty with lower interest rates, which is great news for customers.
As an industry we’ve weathered many storms. There is no doubt that 2023 is going to be a tough year – our clients will be affected by many of the global issues affecting all families. We’ll keep a positive attitude, have a clear plan and work hard to come out of the other side stronger than ever.
*Source: Nationwide House Price Indicator.
2023 Business Predictions: Russell Rigby, director of Rigby & Co
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Russell Rigby, director of commercial property specialists Rigby & Co.
Faced with a cost of living crisis, rocketing energy bills and further economic instability, it is going to be difficult to offer any cast iron predictions around any emerging trends in the commercial property market this year.
The only sector where I believe we will see spectacular growth is the flexible office space market. During 2022, more and more companies adopted hybrid working policies which drove demand in the flex workspace market, and companies using serviced offices hit a record level.
Demand for this type of space in the UK has increased by a staggering 25% in the last 12 months alone and shows no signs of slowing down.
Flex office space is no longer just the domain of start-ups and tech companies and big businesses are now rethinking their property strategies to support flexibility to help retain and attract talent.
Further economic-driven uncertainty will continue to influence office businesses keen to incorporate flex space into their workplace strategy as more and more occupiers move to a more agile dynamic way of working and I predict that this market will be the strongest performing sector in 2023.
I expect to see more and more office occupiers, aware of the tough times ahead, placing greater emphasis on team cohesion and productivity. High quality managed workspaces such as Cubo and Connect Derby create an environment and spaces that encourage staff interaction and collaboration and will continue to attract an enticing mix of businesses.
The introduction of new Government regulations this year will also see a scheme’s ECG credentials become an increasingly important factor for office occupiers.
Nottingham recruitment firm appoints non-executive director to support three-year business plans
Following a successful and record year in business, recruitment consultancy Prescient Group has announced its growth and expansion plans for the next three years.
As 2022 saw the business increase its turnover by 107% – with plans to grow this by another 96% this year – seasoned recruiters Joel Fletcher, Charlotte Churm and Ed Robinson have appointed Paul Jacobs as non-executive director to support the delivery of their strategic goals and fast growth plans.
Co-founder and director of Jump Advisory Group, Paul has more than 40 years’ experience working within the recruitment industry – successfully accelerating growth for multiple businesses – having held previous positions as Managing Director of Office Angels and LoveWorkLife Recruitment.
Within the last month the Prescient team has grown from eight recruitment professionals to 11 – with the additional of Paul and consultants Alex Payne and Craig Catley joining the Manchester office. The firm plans to expand by a further nine employees this year and is currently recruiting for three Nottingham roles – including a temps consultant, resource and delivery consultant and an internal digital marketing manager.
To accommodate the team growth, the Nottingham office has moved to a bigger space within Bridlesmith Walk – which is their third move since 2020 – and the Manchester office is also moving for a third time within Spinningfields.
Having built up a portfolio of 80 UK and international clients, Prescient Group grew its client base by 86% in 2022, in comparison to 2021. As part of its three-year plans, the company will look to expand its services across the software solutions, law, transport, financial, banking and accountancy, property, digital marketing services and energy sectors.
Director Joel Fletcher said: “Last year was a record year in business for us and as we reflect on our plans for 2023 and beyond, it’s amazing to see all that we have achieved in such a short time.
“To help us accelerate our strategy, business goals and ambitious growth plans we have appointed Paul, who has a successful track record in developing strategies to enable businesses to scale up at a fast pace.
“We set out to create and be known as a highly respected and ethical recruitment consultancy and myself, Charlotte and Ed are very proud of not only our success, but the brand and team we have built. We’re looking forward to seeing more of our vision and plans come to life this year.”
Mercia invests over £17m into Midlands businesses in 2022
Mercia Asset Management – the capital providers to SMEs – invested over £120m in 159 companies during 2022, with 79% going to businesses outside London.
Mercia, which is based in Henley-in-Arden, invested £17.4m in 24 Midlands businesses during the year. They included Leicester-based HR tech StaffCircle, Loughborough-based rebate management platform e-bate and Marriott Drilling Group of Chesterfield.
Dr Mark Payton, CEO of Mercia, said: “Approximately 60% of the capital we manage is in venture focussed on young businesses with significant growth potential. Venture capital plays an important role in developing the industries of the future but with the majority of funding focused on London, the remaining regions of the UK continue to be underserved. Through our Venture funds and teams operating across the UK, we aim to address that gap.
“Despite the near term economic headwinds as a nation we face, we passionately believe in continuing to support new businesses and our existing portfolio. While many other funders have become more risk averse, Mercia will continue to invest throughout 2023 and we look forward to supporting many more businesses, through our national network of offices across the UK, in the year ahead.”
In 2022 Mercia also successfully exited some of its earlier investments including Sheffield-based Faradion, a world leader in sodium-ion battery technology, which was acquired for £100m by Indian conglomerate Reliance Industries.
During the year Mercia acquired Birmingham-based SME lender Frontier Development Capital (FDC) in a deal that took its assets under management to circa £1.4bn. It also opened new offices in Bristol and Hull.
East Midlands Freeport appoints CEO
East Midlands Freeport (EMF), the UK’s only inland Freeport, has appointed Tom Newman-Taylor as CEO.
Tom is an experienced senior leader in Government having latterly held positions in the Department for Levelling Up, Communities and Housing (DLUHC) and Department for Transport. He has a strong track record in delivering major commercial and strategic projects across the transport, energy and housing sectors, within and outside Government.
As a Deputy Director in the Maritime Directorate he established and ran the cross-Government Critical Freight Taskforce, preventing a catastrophic failure of international and domestic freight networks during COVID-19. This included implementing a multi-million subsidy regime for the international freight sector.
He has developed strategies for Government across housing and transport, including a long-term environmental strategy for the maritime sector as part of the Government’s Maritime 2050 Strategy. Earlier in his career he also helped deliver billion-pound Government investments into train and railway improvements.
He spent a period in industry as Commercial Projects Lead with Associated British Ports where he was responsible for establishing ABP’s port master planning programme, delivering long-term commercial and geospatial plans for ports across the country.
In announcing the appointment, EMF Chair, Nora Senior CBE, said: “We are delighted to have attracted an individual of the calibre and with the experience that Tom brings. His knowledge of Government departments and policies will be a significant advantage in allowing the Freeport to access and build on trade and innovation opportunities to the benefit of prospective occupiers on the site.”
Tom Newman-Taylor added: “I am hugely excited by the potential which EMF offers to bring growth to a strategically significant part of the UK. A successful Freeport will bring lasting benefits to the East Midlands by attracting significant new investment and creating high quality jobs for the communities who live around our sites. I cannot wait to help realise this ambition and help bring together local public and private sector partners on behalf of the East Midlands and the UK.”
Tom starts his position with EMF in March.
