Shoe Zone hails “a very positive year”
Shoe Zone has experienced “a very positive year” with revenue and profits rising.
In audited results for the 52 weeks to 1 October 2022, the Leicester retailer posted revenue of £156.2m, up from £119.1m in the prior year. This saw store revenue grow to £129.8m from £88.6m, while digital revenue dipped to £26.4m from £30.5m.
Profit before tax sat at £13.6m, up from £9.5m.
Shoe Zone ended the period trading out of 360 stores, having closed 63 stores, opened 13 new stores and converted a further 11 existing stores to new formats.
Anthony Smith, Chief Executive, said in a statement: “Shoe Zone had a very positive year due to trading for the full 52 weeks, strong trading over our key back to school period and due to the incredible hard work from our teams. These increases are primarily due to the increased revenue and resultant gross profit generated in a normalised trading period post pandemic.”
Record half year sales performance for Games Workshop
Games Workshop has delivered another record half year sales performance. However, having set itself a higher sales growth goal, the record number, “isn’t where [it] wanted to be,” thanks in particular to flat sales in the US.
According to results for the 26 week period to 27 November 2022, revenue grew to £226.6m, up from £211.6m in the same period last year.
Profit before tax at the Nottingham firm meanwhile dipped to £83.6m from £88.2m.
Kevin Rountree, CEO of Games Workshop, said: “Games Workshop and the Warhammer hobby are in great shape.
“Another rewarding and successful period for the global team with core sales for the six months of over £200 million for the first time.
“We will continue to focus on making the best miniatures in the world, sign new licensing contracts with partners to exploit our IP outside of our core business and support our staff. I’m so proud of their considerable hard work and commitment, thank you all.”
2023 Business Predictions: David Santaney from WestBridge Group
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 David Santaney from WestBridge Group which provides specialist tax and SSAS administration services to business owners and professional advisers.
Most predict a bleak economic outlook for 2023 with help being sought from any quarter. One area of predicted growth however is within the Small Self-Administered Scheme (SSAS) pension arena.
SSAS has become the forgotten pension product in recent years following the rise in popularity of the better-known Self Invested Personal Pension (SIPP). The SSAS offers all of the same features in that it can acquire the premises from which a business trades (allowing the payment of rent into another pocket of the business owners wealth) but has one key advantage – it can lend money back to the founder employer.
With interest rates on the rise, obtaining or renegotiating borrowing terms from the high street lenders may become problematic. A SSAS can lend up to half of its value back to the business to assist cashflow or fund special projects. The interest rates should be commercial but usually there are no up-front arrangement fees and interest when paid is routed back into the pension fund rather than to a third-party lender.
A SSAS can also acquire the premises from which a business trades. The release of capital to the business might be opportune in the predicted environment and control of the premises is not lost as it becomes an asset of the SSAS.
Unlike SIPPs which are a regulated product of the pension provider, a SSAS is controlled by its trustees, almost always the scheme members themselves. With these features, the re-emergence of SSAS as the preferred pension vehicle of choice for business looks likely.
Plans submitted for £14m, 50 home development in South Normanton
Housebuilder Honey has submitted plans to deliver a £14m development comprising 50 new two, three and four-bedroom homes in the village of South Normanton, near Alfreton.
Called Amber and located on Lees Lane, if planning is granted the 4.5-acre development will be the Sheffield-based housebuilding company’s first in Derbyshire.
Amber will feature 14 housetypes which Honey says have all been specifically designed to combine “style, substance and sustainability” for the benefit of buyers. Prices will start from £184,950 for a two-bedroom mid-terrace home.
If given the go ahead by Bolsover District Council, work at Amber is anticipated to start in spring with the first residents expected to move into their new homes this December.
As well as providing new homes for the area, if planning is granted, Honey will also make a £160,000 contribution to initiatives that will benefit the local community.
Honey was founded by former Avant Homes CEO, Mark Mitchell. He said: “We have worked very hard to ensure all our homes will provide buyers with an ideal combination of style, substance and sustainability.
“We know there is strong demand for high quality, high specification new homes in South Normanton so we are pleased to submit our plans for consideration by Bolsover District Council.”
Furnley House make key new hire
Leicestershire independent financial adviser firm Furnley House have strengthened their Protection offering with the recruitment of Darren Bradbury.
Furnley House was founded in 2013 to provide high quality solutions to individuals, families, business owners, and corporate clients, helping them work towards and achieve their goals.
Darren has over 25 years of expertise in Financial Services and joins as a protection specialist.
Stefan Fura, Managing Director at Furnley House, said: “Darren coming on board supports Furnley House’s planned growth as well as our goal of helping clients in every stage of their life.
“His values really tie in with ours and we’re delighted to have him as part of our team going forwards.”
Darren Bradbury said: “Having been self-employed for a few years, it would have taken an amazing opportunity to return to being employed, and that is exactly what Furnley House has offered me.
“Coming from Leicester myself, I am very excited to be joining a local company that shares so many of my values. Both mine and Furnley House’s focus is always on the client, and I’m looking forward to supporting more people with their protection needs.
“I was also attracted by Furnley House’s strong charitable ethos. They have helped and improved the lives of so many people over the years through the Furnley House Foundation and I’m looking forward to getting involved with this as well as continuing my own charity work.
“I am so thankful to everyone involved for the opportunity and cannot wait to get started!”
Government unveils new “Energy Bills Discount Scheme” for businesses, scaling back support
A new, scaled back, energy scheme for businesses, charities, and the public sector has been confirmed ahead of the current scheme ending in March. The new scheme will mean all eligible UK businesses and other non-domestic energy users will receive a discount on high energy bills until 31 March 2024, rather than costs being capped.
While some have welcomed the news, others critiqued the plan as being out of touch, a disappointment, and catastrophic.
Government says it will help businesses locked into contracts signed before recent falls in the wholesale price manage their costs and provide others with reassurance against the risk of prices rising again.
The government provided a package of support for non-domestic users through this winter, worth £18 billion per the figures certified by the OBR at the Autumn Statement. This is equivalent to the cost of an increase of around three pence on people’s income tax.
The new scheme has a cap set at £5.5 billion.
The Chancellor of the Exchequer, Jeremy Hunt, said: “My top priority is tackling the rising cost of living – something that both families and businesses are struggling with. That means taking difficult decisions to bring down inflation while giving as much support to families and business as we are able.
“Wholesale energy prices are falling and have now gone back to levels just before Putin’s invasion of Ukraine. But to provide reassurance against the risk of prices rising again we are launching the new Energy Bills Discount Scheme, giving businesses the certainty they need to plan ahead.
“Even though prices are falling, I am concerned this is not being passed on to businesses, so I’ve written to Ofgem asking for an update on whether further action is action is needed to make sure the market is working for businesses.”
From 1 April 2023 to 31 March 2024, eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill, except for those benefitting from lower energy prices.
A higher level of support will be provided to businesses in sectors identified as being the most energy and trade intensive – predominately manufacturing industries. A long standing category associated with higher energy usage; these firms are often less able to pass through cost to their customers due to international competition. Businesses in scope will receive a gas and electricity bill discount based on a supported price which will be capped by a maximum unit discount of £40.0/MWh for gas and £89.1/MWh for electricity.
East Midlands Chamber Chief Executive Scott Knowles said: “Businesses have been desperately seeking some certainty ahead of the new financial year, so the Government’s announcement of a two-year provides some clarity about the road ahead.
“Scaling back the support towards energy costs will be a blow for many firms, however, as the cost-of-doing-business crisis that has thwarted them over the past year has been driven predominantly by escalating energy prices that remain at sky-high levels.
“While it was anticipated that support would decrease, this will nevertheless squeeze many companies that are already fighting cost pressures from across the board – also including people, raw materials and fuel – and ultimately affect their ability to invest.
“This should be of great concern to Government given that our Quarterly Economic Survey showed investment intentions for both plant and machinery, and people, among East Midlands firms declined throughout 2022 as confidence nosedived.
“We know the energy crisis is predominantly the result of global headwinds but there is more Westminster can do to restore business confidence by looking at the barriers to business success that we can control.
“We need to ‘get the basics right’, as we have outlined in our regional Business Manifesto for Growth, A Centre of Trading Excellence, by cultivating a wider business ecosystem geared around supporting success.
“This should focus on incentives to invest in people, support certainty for firms by developing a long-term approach to business taxation and regulation, and ensure businesses and communities are digitally and physically connected locally and with the wider world.”
Tom Thackray, CBI director for Decarbonisation Policy, said: “The extension to the scheme will provide respite for many firms at the start of the year and help them plan ahead for the next 12 months with more certainty.
“It’s unrealistic to think the scheme could stay affordable in its current form, but some firms will undoubtedly still find the going hard. The Government has done much to protect businesses through the energy crisis. It must remain open, flexible and pragmatic in its approach to volatile wholesale energy markets as the year unfolds.
“Heavy energy users and those exposed to global trade are among some of the most impacted in the current crisis, so the additional support for these firms is a particularly welcome step.”
Martin McTague, national chair of the Federation of Small Businesses (FSB), said: “Today’s decision to all but eliminate help through the Energy Bill Relief Scheme (EBRS) is a huge disappointment for small businesses. For those struggling, the discount through the new version of the scheme is not material. Many small firms will not be able to survive on the pennies provided through the new version of the scheme.
“This is so out of touch. Two pence off a kWh of electricity and half a pence off gas is totally insignificant for small businesses, despite costing billions to the taxpayer. The Government will inevitably have to come back.
“The current EBRS scheme provides certainty for a small business owner over their rates, and has made a material difference to the survival of many small businesses. The replacement scheme will do neither.
“While the New Year should be a time of optimism and excitement, 2023 looks like the beginning of the end for tens of thousands of small businesses, which have been relying on the government energy support to survive this winter.
“In addition to the withdrawal of the vast majority of support to cope with high energy prices, this decision also risks stoking inflation as small businesses bills rise, but their prices will rise at the same time. The EBRS original scheme suppressed inflation by 5% points, but this has been cancelled, today. Slashing support will drive higher inflation, just as we enter a recession.
“Our latest research shows one in four small firms anticipate either closing, downsizing, or radically changing their business model when the Government reduces energy support after March. Five days after the Prime Minister’s pledges to restore optimism and hope and grow the economy, small firms will feel let down by the Prime Minister’s decision to call in the scheme decision planned for December, and cutting back the scheme to such a minimal state.
“What’s certain from this catastrophic move is there’ll be a cliff edge after March. The small fish and chip around the corner, your local pub, and the family-run independent laundrette – all will see much higher bills. That’s on the Government.
“Gambling that wholesale energy prices will continue to fall this year is transferring the risk of further energy price shocks to small businesses. Think of the children’s nursery in East Sussex which saw its energy prices reduce from £1,200 to £600 per month by the EBRS and the small engineering company in Leicester which is facing a 500% increase in gas bills – they will have no way to mitigate a sharp jump in energy costs.
“Dividing the scheme into two tiers is sensible, but not so that the tier of support for any small businesses lighting or heating premises, or using freezers or ovens, has been set so low as to mean support diluted to such a feeble level. It would have been better value for money for small firms if the £2bn cost of their element of the scheme had been used to improve energy efficiency, to reduce the need for energy from the grid.
“The Government said that taxpayers cannot prop up failing or unproductive firms, which is insulting to many small business owners struggling this winter.
“Since the onset of Covid, we’ve lost half a million small firms. Allowing more well-run businesses to go under would be a false economy. But with this absurd degraded Energy Bills Discount Scheme, it looks like we’re getting there.”
Accountancy firm becomes climate positive
An accountancy firm is rooting for environmental change after joining forces with a global tree-planting and footprint reduction initiative.
Dains, which has offices across the Midlands, is working to reduce its carbon footprint after joining forces with the innovative sustainability business Play It Green.
Since signing up for the green scheme in August 2022, Dains has taken measures to understand and lower its net emissions by completing a carbon footprint report, mapped out the long-term net zero plan and sent weekly footprint reduction tips and discounts to all staff to reward, educate and strengthen the positive sustainability culture within the business. Whilst on the journey to net zero Dains wish to make an ongoing environmental and social impact and to date had 17,360 trees planted in a dedicated forest garden and passed vital funds to child bereavement charity Edwards Trust.
These trees support employment and communities in impoverished nations, helping meet ten of the United Nations Sustainable Development Goals and within six years will absorb 2,676.3 tonnes of CO2 emissions. This is the equivalent of taking 1911 cars off the road, 18,132 people cancelling their short-haul flight, or saving the energy use of 824 homes.
The firm pays Play It Green a monthly fee to plant 13 trees for each member of its growing workforce and benefit from its footprint reductions support. Dains recently embarked on a recruitment drive to add to its nearly 300-strong team and with the recent acquisition of William Duncan + Co will now be nearly 400-strong.
The forest gardens are managed by Eden Reforestation Projects, which fund projects to restore healthy forests for the benefit of local communities in developing countries including Madagascar, Haiti, Nepal, Indonesia, Mozambique, Kenya, Honduras, and Nicaragua.
Play It Green wants businesses to make changes towards a net-zero future by becoming climate positive, while at the same time contributing to the community.
Founders Richard Dickson, one of the entrepreneurs behind Carbon Free Dining, and Chris Thair, a former CEO of Wales Rugby League, believe private companies can make a social impact to help a net-zero future, which is the state at which global warming stops.
Dains has signed up to be a Climate Positive Workforce and says it is working to reduce its carbon footprint while it seeks out help from Play It Green’s network of sustainability experts to do so.
Richard Dickson, co-founder of Play It Green, said: “It’s so exciting to be on this journey with Dains and to see our ideas come to life and change happening. Dains have embraced this and are eager to look at all the ways they can make a difference to reduce their current carbon footprint and historical one.
“We are all imperfect environmentalists, and it is only through the collective efforts of the many that real change will come. We are delighted Dains believe in our three-step solution to climate change of reducing carbon footprints and making an ongoing positive environmental and social impact whilst on the journey to net zero. Our services help Dains build upon the fantastic work already taking place at the company.”
In recent years Dains has adopted a number of green measures at its offices while encouraging staff to make climate positive changes.
Employees have access to affordable electric cars for a fixed monthly payment through a salary sacrifice scheme. Meanwhile, the firm’s IT system has plans in place to cut back on energy use to reduce the firm’s carbon footprint.
“All the trees we are planting can be tracked as they are added to our own forest garden. They replace lost ecosystems, and the trees are monitored and protected with 10 per cent of their cost going to a charity of our choice,” said Dains head of HR, Angela Millward.
“We are committed to reducing our carbon footprint, so we have partnered with Play It Green to improve our sustainability practices and have a positive impact on the planet. We want to make our business a climate-positive one by rebalancing our historical and company emissions to become carbon neutral.”
Dains has bases at Birmingham, Derby, Burton-on-Trent, Stoke and Lichfield.
Begbies Traynor makes senior promotion in Leicester
Begbies Traynor in Leicester has promoted Thomas Harris to director following a period of growth for the firm, which has seen it expand significantly since it opened its base in the city three years ago.
With almost 15 years’ experience in insolvency and business recovery, Thomas joined the Begbies Traynor team in 2020, having previously worked with partners Martin Buttriss and Carolynn Best.
His promotion sees him take on the role of appointment-taking director, supporting Martin and Carolynn in taking formal appointments and providing advice to companies in the region that require assistance if they find themselves in financial difficulty.
The promotion comes following the publication of Begbies Traynor’s most recent Red Flag Alert data, which shows that more than 8400 Leicestershire businesses found themselves in significant financial distress during Q3 2022, as companies face rising costs and fragile confidence.
Commenting on his appointment, Thomas said: “Now more than ever, businesses are facing really challenging times, so it is important that they can rely on us to provide high quality business recovery advice and consultancy services. We are here to help local businesses who may find themselves in financial difficulty and work with them to achieve the best possible outcome from their situation.”
Martin Buttriss, partner at Begbies Traynor in Leicester, added: “Tom’s promotion is thoroughly well-deserved and it comes at a time when businesses need our support to help them navigate an increasingly turbulent economic environment. He is quick to establish a warm rapport with clients and is a natural fit for our approachable and friendly culture at Begbies Traynor.
“Since Tom joined us, we have grown to a team of eight, with plans for further expansion in the coming year.”
Finch raises almost £14,000 for charity
Finch Consulting, an engineering and health and safety risk management company, celebrated their thirtieth year in business in 2022 and committed to raising much needed funds for their local branch of Mind to give something back to the community.
Over the year they completed a series of fundraising activities including bake sales, walking 1000 miles in a month, an indoor team skydive and the Derbyshire 3 Peaks. Dom Barraclough, the Managing Director, also took on the gruelling challenge of a west to east coast bike ride across England in just three days!
Marketing specialist Stephanie Dennis said: “We were really keen to do something positive as a company to celebrate our thirtieth year, and fundraising for a local branch of a national charity bought a lot of fulfilment to us and we thoroughly enjoyed all of the activities we completed to raise money.
“We chose Burton and District Mind as everyone has mental health to look after and mental health services are severely underfunded in comparison to services for physical conditions. We’re very proud to announce that the total sum raised is £13,848.04p to be exact.”
Burton and District Mind said: “We wanted to say a massive thank you to every single member of the Team at Finch Consulting, for all your fundraising achievements during 2022. You have all worked tirelessly and it’s very much appreciated by everyone at Burton and District Mind.”
Derelict Nottingham site sold in multi-million-pound deal
Plans to transform a derelict site near Nottingham train station are gathering pace following a multi-million-pound land sale.
The 0.62-acre site on Waterway Street has been purchased unconditionally by property firm Rainier Developments from Nottingham City Council.
The site has been vacant for the past five years, and will now see Rainier Developments bringing forward a detailed planning application this year that would see the site’s existing two-storey 1970s office block, Waterway House, demolished to make way for new homes.
The site also falls within one of the city’s strategic regeneration areas under Nottingham City Council’s Local Plan – known as the Canal Quarter.
Will Blacker, land director at Rainier Developments, said: “The area around Nottingham train station has been given a new lease of life in recent years via commercial, residential and student developments, and we are excited at the prospect of being able to add to this by helping to potentially transform an unused brownfield site.
“We will now use our extensive planning expertise to apply for planning permission for a modern redevelopment to support not only the wider regeneration of the area, but also the ongoing demand for homes.
“As a company we are keen in investing in sites that we know have the potential to enrich communities, such as this one in Nottingham, and we are actively seeking other sites nationally.”
HEB Property Consultants and Davisons Law acted for Rainier Developments on the site acquisition.
