- Non-domestic customers on existing fixed price contracts will be eligible for support as long as the contract was agreed on or after 1 April 2022. Provided that the wholesale element of the price the customer is paying is above the Government Supported Price, their per unit energy costs will automatically be reduced by the relevant p/kWh for the duration of the Scheme. Customers entering new fixed price contracts after 1 October will receive support on the same basis.
- Those on default, deemed or variable tariffs will receive a per-unit discount on energy costs, up to a maximum of the difference between the Supported Price and the average expected wholesale price over the period of the Scheme. The amount of this Maximum Discount is likely to be around £405/MWh for electricity and £115/MWh for gas, subject to wholesale market developments. Non-domestic customers on default or variable tariffs will therefore pay reduced bills, but these will still change over time and may still be subject to price increases. This is why the Government says it is working with suppliers to ensure all their customers in England, Scotland and Wales are given the opportunity to switch to a fixed contract/tariff for the duration of the scheme if they wish, underpinned by the Government’s Energy Bill Relief Scheme support.
- For businesses on flexible purchase contracts, typically some of the largest energy-using businesses, the level of reduction offered will be calculated by suppliers according to the specifics of that company’s contract and will also be subject to the Maximum Discount.
Government outlines plans to help cut energy bills for UK businesses
New support for businesses facing rising energy bills has been unveiled by Business Secretary Jacob Rees-Mogg today (Wednesday 21 September), to support growth, prevent insolvencies and protect jobs.
Through a new Government Energy Bill Relief Scheme, the Government says it will provide a discount on wholesale gas and electricity prices for all non-domestic customers (including all UK businesses, the voluntary sector like charities and the public sector such as schools and hospitals) whose current gas and electricity prices have been significantly inflated in light of global energy prices. This support will be equivalent to the Energy Price Guarantee put in place for households.
It will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial six-month period for all non-domestic energy users. The savings will be first seen in October bills, which are typically received in November.
As with the Energy Price Guarantee for households, customers do not need to take action or apply to the scheme to access the support. Support (in the form of a p/kWh discount) will automatically be applied to bills.
To administer support, the Government has set a Supported Wholesale Price – expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter – which is a discounted price per unit of gas and electricity. This is equivalent to the wholesale element of the Energy Price Guarantee for households. It includes the removal of green levies paid by non-domestic customers who receive support under the scheme.
The level of price reduction for each business will vary depending on their contract type and circumstances:
Gateley appoints new partner in Nottingham
Legal and professional services group Gateley has appointed a new partner in Nottingham.
Phil Jelley joins as a partner in the pensions team, bringing with him more than 23 years of experience within the industry, and he will be based at Gateley’s office on The Ropewalk in the city centre.
Phil, who went to university and law school in Nottingham, joins from Dentons where he worked as Counsel, having previously spent 14 years at Norton Rose Fulbright, also as Counsel. Phil’s role as partner for Gateley will involve advising trustees and employers in connection with their legal obligations in running a variety of pension schemes, as well as on the pension aspects of corporate transactions, and pension litigation matters.
Phil Jelley said: “The work the team at Gateley carries out in the pensions space is very highly regarded across the sector, so this is a great opportunity to be part of its continued success. Having spent much of my career in London, I am looking forward to returning to Nottingham as a dedicated pensions lawyer for the East Midlands and supporting the pensions team nationally.”
Michael Collins, partner and head of Gateley’s pensions business, said: “We are excited to welcome Phil to Gateley. The wealth of experience he has in the pensions space means he will be a fantastic asset for us and equally for our clients.”
“Strong first half” for Pendragon
Pendragon, the Nottingham car retailer, has “made a really encouraging start to the year” with a “strong set of financial results,” according to the firm’s CEO.
Newly released half year results show that group revenue hit £1.84bn, up from £1.81bn in the same period of 2021.
Meanwhile underlying profit before tax dipped slightly to £33.5m from £35.1m, whereas reported profit before tax grew to £32.9m from £30.8m.
Bill Berman, Chief Executive Officer, said: “We have made a really encouraging start to the year which is reflected in a strong set of financial results and continued momentum across the business. Good progress has again been made in the delivery of our strategy, including the brand relaunch of our used car business and multiple technology releases by Pinewood.
“We have transformed our digital capabilities over the past two years and this, combined with significant improvements to our operations, means we are well placed to offer our customers the best possible experience.
“We have delivered these results in the face of challenging trading conditions in our sector due to supply constraints on both new and used vehicles and the impacts of inflationary pressures.
“We expect the environment to remain challenging in the second half of the year, however we take confidence from how we have performed in the last six months and expect to make further positive progress towards our long-term goals this year.”
LDC further expands East Midlands team
Mid-market private equity firm LDC has grown its team in the East Midlands and East of England with the appointment of Simon Peacock as investment director and Mikayil Salahov as investment manager.
Simon joins LDC following more than 15 years at Alantra, an investment banking and asset management firm focusing on the mid-market. As a partner there, he advised companies on both a regional and sector basis, including consumer, industrials and business services, to help ensure the smooth completion of M&A transactions.
He also has extensive experience within the food industry, as director of food & drink at Catalyst, prior to its acquisition by Alantra, following eight years as a finance manager at United Biscuits.
As an investment director, Simon will be responsible for identifying potential investment opportunities, leading transactions and supporting the management teams of LDC’s portfolio businesses as they pursue their growth ambitions.
Mikayil joins LDC as an investment manager from PwC’s Transaction Services practice in Reading, where he focused on large cap and mid-market transactions. His experience spans several sectors, including technology media and telecoms, business services and retail.
Simon and Mikayil are the second and third additions to LDC’s East Midlands and East of England team – led by partner David Bains – during the last six months, following the appointment of investment manager Nicole Wong in April. All three are supporting LDC’s commitment to increase its activity and support of mid-market businesses across the region.
David Bains, partner and head of LDC in the East Midlands and East of England, said: “Our East Midlands and East team has always been an important part of LDC investing more than £500m over a sustained period of time to help management teams grow their businesses. In a further sign of commitment to the region, we now have the largest team we’ve had here, and its collective enthusiasm, expertise and local insight will help us to support more ambitious mid-market business leaders than ever. “Simon and Mikayil bring with them a wealth of experience in building thriving relationships and supporting businesses across a wide variety of sectors, which will add a lot of value to the management teams we back.”
Simon Peacock, investment director at LDC, added: “LDC’s track record of supporting companies to realise their potential and grow at scale speaks for itself. Coming from an advisor background, I’m looking forward to having more of a role in the decision-making process and, as a long-term Nottingham resident myself, am excited to play a part in helping local management teams to achieve their ambitions.”
Sneak peak: Behind the scenes with East Midland’s no.1 video production company
Glowfrog Video Production won the 2022 Best Business award from ThreeBestRated and are considered the very best video production company in the East Midlands, both for production quality and value.
Having just launched this year’s showreel advert, Glowfrog have now released a sneak peak behind the scenes video, offering an interesting insight into how they film with businesses across the region.
This particular video shows their set-up for producing YouTube videos on behalf of their Derby client, Create Finance.
Check it out and see what goes into making your business look top quality on video. If you’re interested you can find more of their work at www.glowfrogvideo.com.
Majority share in payment solutions provider snapped up
Manx Financial Group has acquired a 50.1% stake in Melton Mowbray-based Payment Assist Limited in a £4.2m deal.
Payment Assist was set up by Neil Jeffery and Colin Ellard in 2013 to capitalise on the opportunity in the automotive sector to improve garage customer retention rates by providing a user-friendly method of enabling customers to spread their payments over time. Payment Assist was granted its FCA permission in October 2014.
Following the acquisition, Neil Jeffery and Colin Ellard will remain as directors of Payment Assist, whilst Douglas Grant, Denham Eke and James Smeed will join the board with immediate effect.
Douglas Grant, CEO of the group, said: “We have worked with Payment Assist for over seven years through our banking subsidiary, Conister Bank Limited. During that time, we have developed an ever-closer relationship, so a joint venture was the natural next step to support Payment Assist achieve their growth ambitions.
“Their customer focused, short-term lending products, were in great demand during the pandemic and are equally as relevant today during these uncertain economic times. This is a major acquisition for the group, not only in terms of deploying our liquidity safely, but also in continuing to progress our growth strategy.”
Neil Jeffery, Chief Executive Officer of Payment Assist, said: “We are delighted to have completed this transaction and to embark upon this exciting new chapter. Having worked with Conister Bank for a number of years, we are confident that this partnership will enable Payment Assist to continue to grow as one of the leading point-of-sale lenders in the United Kingdom.”
East Midlands Accelerator helps 340 businesses with net zero plans
More than 340 businesses across the East Midlands have so far been supported in the development of their sustainability plans, as a result of the net zero strand of the East Midlands Accelerator project.
East Midlands Chamber, together with a project consortium of the region’s universities and business support agencies, is delivering the Net Zero Accelerator project, which helps organisations with changes such as reducing their carbon footprint, switching to electric vehicles and creating sustainability action plans.
Throughout the spring and summer, the project, which is part-funded by the UK Government through the UK Community Renewal Fund and led by the local authority in each region, has offered grant funding, growth vouchers and fully-subsidised training to businesses in the eligible areas of Derbyshire Dales, High Peak, Mansfield, Bassetlaw, Newark and Sherwood, Nottingham city and Leicester city.
East Midlands Chamber deputy chief executive Diane Beresford said: “A key condition for a business receiving grant funding through the East Midlands Accelerator project is that it must commit to starting its sustainability journey. The Chamber has supported this process by enabling businesses to access the valuable support on offer from the region’s universities and other partners.
“Businesses recognise that greener practices make business sense – not just because of the long-term efficiency gains, but because presenting a clear sustainability strategy is becoming increasingly important when it comes to winning new contracts and customers.
”Once businesses have a top-level sustainability plan in place, they will need capital funding to change their infrastructure accordingly, as well as ongoing training. I’m hoping that local authorities will address this as part of their Shared Prosperity Fund plans.”
Net Zero Accelerator support has been wide-ranging, and includes:
- Support on making the switch to electric vehicles through the University of Derby’s Cenex Electric Fleet Transformation scheme.
- Support on carbon reduction and environmental management from the region’s universities. Carbon and environmental management consultancy and training have enabled businesses to work towards carbon literacy accreditation and the bronze level of the Investors in the Environment standard.
- Net zero student placements and sustainability audits in partnership with the three Leicestershire universities, giving businesses firm plans on where they might take action.
- Support from the Zellar sustainability platform, with East Midlands Chamber investing in 400 annual software licences to give SMEs the opportunity to track, measure and promote their sustainability activities, whether that be, for example, the appointment of a green champion, an audit of travel emissions, or the installation of LED lighting. So far, 336 businesses have registered their interest.
- Specialist sector support from two of the project’s partners. Food and Drink Forum experts offer decarbonisation and sustainability support to help food producers assess how they can reduce environmental impact by making changes to their production space and processes. Marketing Peak District and Derbyshire offers specialist one-to-one business support to help visitor economy businesses reduce their carbon footprint and achieve “clean, green growth”.
New HR lead sails into Nottingham Venues to spearhead drive for talent
Nottingham Venues, the new name bringing meetings, events, hotel stays and a collection of venues across the University of Nottingham’s campuses under one brand, has appointed a new director of human resources.
Suzie Adams joins the organisation, which has close to 250 employees across its various sites, after a career spent with some of the world’s biggest cruise line companies, including the Ritz-Carlton Yacht Collection.
It was there where she was headhunted to establish best practice and policies for its people management as it sought to become the best in the industry, which is a similar mission to her new one with Nottingham Venues, as general manager Tom Waldron-Lynch, explains: “We are on a journey of growth and independence where we talk about being ‘One Destination with Endless Possibilities’.
“A major part of that journey requires the best possible talent to join us as we strive to lead the field in our offering to guests and employees.
“Attracting someone of the calibre of Suzie is a big part of that, as she has incredible experience in both moulding and creating outstanding career experiences in the hospitality industry. We know that we have a superb guest experience across our venues and we want to create that same experience for our staff. Suzie will be invaluable in doing just that.”
After a career on the ocean before returning to dry land to establish the HR department at the Ritz-Carlton Yacht Collection, Suzie will now help Nottingham Venues to attract, retain, train and inspire its growing team.
Suzie says: “This is a wonderful opportunity to come into an organisation that is in a transitional phase from its previous corporate structure to a more independent approach. We all know that the pandemic presented the hospitality industry with a wide-ranging set of challenges and staffing is certainly one of them and remains so.
“However, here at Nottingham Venues we have a chance to create something truly special and unique for our growing team and I cannot wait to be part of this. There are already fantastic initiatives in place, including the ‘real living wage’, free meals when on shift and the ‘Top Of The Tree’ employee recognition scheme. My goal now is to work with Tom and his teams to create an experience that is truly remarkable and that will make us as much of a destination for talent as we already are for our guests.”
Renewable energy distributor signs up to Leicester scheme
Joint venture partners, Graftongate and BlackRock have announced the arrival of one of the UK’s largest distributors of renewable energy systems at Leicester Distribution Park (LEDP).
Glasgow-based CCL Energy Group has completed a 10-year lease on Unit 6, a newly built distribution and logistics unit of 45,000 sq ft.
CCL Components Ltd is the largest independent distributor in the UK and is involved in the technical distribution of a wide range of renewable energy products worldwide.
It will jointly occupy the new unit with sister company LinQ Logistics Ltd, a third-party logistics and stock management company that services CCL Energy Group and other businesses.
Graftongate and BlackRock have delivered eight Grade A logistics units at LEDP during three phases of development, with a total combined area of 700,000 sq ft.
Four of the buildings were constructed in the final phase of development, each containing strong sustainability features being built to carbon neutral construction and operational standards. They include PV solar panels, EV charging points, rainwater harvesting, sustainable drainage systems and intelligent energy monitoring.
Unit 2, a 150,000 sq ft distribution and logistics building, is the final unit available for occupation at the scheme and is currently available.
Graftongate director, Colin Beasley said that LEDP’s location in the heart of the Golden Triangle had generated consistently high interest from prospective occupiers.
He said: “We’re very pleased to have completed the letting of Unit 6 to CCL Energy Group. Its arrival not only complements the high calibre of occupiers that have chosen to grow their businesses at LEDP but supports our decision to speculatively build out a mid-box scheme in Leicester.
“We are continuing to see an appetite for distribution and logistics accommodation of this quality in the region and are confident of letting the final available building shortly. It will mean that all four new units in the final phase of development have been let within six months of practical completion.”
Construction recruitment specialist set to grow following £2.5m funding package
Lincoln-based business Clements Young, which offers recruitment services for the construction and M&E sectors, has secured a £2.5m finance deal with NatWest.
The investment deal will enable Clements Young to explore opportunities to grow the business, including recruiting a number of new internal staff and expanding into regional locations across the UK.
Founded in 2018, Clements Young has supported more than 130 customers within the construction and building services industry, working closely with clients and candidates to build relationships, understand the business need and ensure a beneficial employment outcome for both parties.
Matthew Jones, Managing Director at Clements Young, said: “As the business grew organically over the last few years, it became increasingly important that we secured a new finance solution that matched our needs and future ambitions. This new funding line gives us the flexibility and freedom to explore new opportunities, which really puts us in control of our own destiny.
“The team at NatWest have been invaluable in terms of their advice and support in terms of helping us move from a previous provider. Throughout, I’ve been able to pick up the phone and speak to the team, so it’s felt like a seamless transition for us and this personal touch has been an added bonus to the deal.”
Ken Feast, business development director, Invoice Finance, at NatWest, said: “As well as flexible financing solutions, we work hard to remove barriers to enterprise, so that businesses can thrive.
“It’s been fantastic to work closely with Matthew and his team to not only provide them with an invoice finance package that suits their needs but also support them with the wider aspects of taking a business on to the next stage of their growth journey. I’m really excited to see what’s next for them.”
Invoice financing is a flexible way for businesses to borrow money against payments due from customers. This frees up finances and can help businesses reinvest in growth at an earlier stage.
Broker Fundinground Ltd advised on the deal, supported by NatWest broker relationship manager Ben Davey.
Lucy Painter, director at Fundinground Ltd, said: “The range of finance products and lenders for businesses is vast, and we find that clients can’t always identify or directly access the best product for their circumstances.
“Invoice finance is of huge benefit to a broad spectrum of business to support their cashflow requirements, particularly bearing in mind the economic environment we are currently in. However, identifying the right product and lender is critical to its success, and it’s more than just price. The service aspect delivered by the lender is crucial due to the longevity and closeness of the client/lender relationship, and we know how Ken and the wider invoice finance team at NatWest recognise and value this.
“We are delighted to have brokered this introduction and know that Clements Young are in excellent hands as they embark on the next stage of their growth.”
