“Monumental skills shortage” could now be deterring businesses from creating jobs, says East Midlands Chamber
The East Midlands’ unemployment rate has risen for the first time in 10 months – but remains far below the national average.
After hitting a record low of 2.4% for the period between April and June this year, the Office for National Statistics’ (ONS) regional figures for May to July show it rose to 2.8%. The UK unemployment rate during this time was 3.6%.
The region’s economic inactivity rate – which measures the number of working-age people who have dropped out of the labour market for reasons such as retirement, caring duties, long-term ill health or studying – remains at 21.9%. This is among its highest level for the past year and three percentage points above where it was pre-Covid (18.7% in January to March 2020).
East Midlands Chamber Chief Executive Scott Knowles said: “Our region’s firms continue to create plenty of jobs, but we’ve been saying for the past year how this could tip at any moment given the monumental skills shortage that is putting a lid on capacity for four in 10 East Midlands businesses.
“In our most recent Quarterly Economic Survey, two-thirds of our region’s companies attempted to recruit between April and June but 82% of them struggled to fill roles.
“This is clearly unsustainable and while our region’s unemployment rate remains at a near-record low, the fact the economic inactivity rate shows no sign of dropping suggests some firms are dropping plans to grow amid the dwindling labour pool and huge uncertainty in the economic landscape, which is driven by an escalating cost of doing business crisis.
“While new Prime Minister Liz Truss’ energy plan was welcomed, we need to see more details on what this means for businesses to provide long-term certainty. At the same time, her Government must not forget the other pressures facing firms and work in collaboration with the business community to seek long-term solutions to the various challenges we face.
“This includes reviewing and reforming the shortage occupations list to include more jobs at all skill levels, backing businesses to invest in training current and new staff, and removing barriers to international trade.”
New senior role filled at Nottingham recruitment specialist
Recruitment specialist Thorn Baker Group, headquartered in Nottingham, has promoted Rhian Newman to a newly created senior position within the business, head of offsite and professional lead. The new position will give Rhian responsibility for developing two new specialties within Thorn Baker’s construction brand – offsite and professional.
During her time with Thorn Baker, Rhian has made a significant impact, particularly in developing the group’s offering within the offsite sector. Also known as the modular building industry, the sector remained resilient throughout the pandemic and Rhian has used her extensive knowledge and wealth of contacts to develop this as a new service offering for Thorn Baker.
Starting from scratch with a team of one, Rhian has developed Thorn Baker Offsite into a nationally respected recruitment partner whose clients include Countryside Timber Frame, Premier Modular, Innovare & Donaldson Group, Balfour Beatty, Skanska, Crest Nicholson, Barratts and many more.
Whilst there is demand for workers across the construction industry at the moment, demand for professional staff is particularly high. Throughout her 15 years in the recruitment industry, Rhian has always recruited for professional roles and will now also take the lead in developing Thorn Baker’s presence in this area.
Speaking about her promotion, Rhian says: “This is a huge opportunity for me and something that I have been working towards for several years now. It is exciting for me personally, and for the future of the company. The new role will allow me to use my knowledge and experience to further strengthen Thorn Baker’s offering within construction recruitment and complements its existing specialties.
“Developing the company’s professional offering builds on 34 years’ experience within trades and labour, and means that we will be able to find quality candidates for our clients for the full range of roles required on construction projects and in the industrial sector.
“Similarly, the offsite sector is growing rapidly in the UK and there is a high demand for candidates with transferable skills – and our expertise within ‘traditional’ trades roles means we are able to find people who may want to transfer to another branch of the construction industry.
“I feel hugely supported by the Board and we have a clear understanding of what we want both teams to look like in the future. I want to make a success of both specialisms as I am sure they will become fundamental to the future of Thorn Baker and the success of our clients.”
Rob Ford, director at Thorn Baker, added: “Rhian is a fantastic asset to the Thorn Baker team and contributes so much across the business, not just in offsite and professional. She is a real people person and someone who clearly cares and demonstrates our values on a daily basis. This is clear to see by the relationships she has built with her team, her colleagues in other offices, myself, and the rest of the Board.
“Having been with us for less than a year when the pandemic struck, we all had to cope with the uncertainty that caused. And Rhian’s response to these challenges – recruiting her team and training them over Zoom – showcased her natural leadership qualities and admirable work ethic.
“Rhian is respected across the industry and has a natural flair for offsite and professional. We want to support her to develop these teams as it will benefit our growing client base and help more people find employment.”
East Midlands businesses hit by late payments
Latest research from the Midlands branch of national insolvency and restructuring trade body R3 reveals a steady rise in the number of East Midlands companies with invoices overdue for payment.
The statistics, which are based on an analysis of data from business intelligence provider Creditsafe, show that over 26,800 East Midlands companies had overdue invoices in August, a figure which has risen steadily since April of this year.
The R3 report also indicates that monthly insolvency-related activities in the East Midlands have risen from 62 at the start of the year to 102 in August. These figures include liquidator and administrator appointments as well as creditors’ meetings, indicating the extent to which local companies may be struggling.
The region’s entrepreneurial spirit appears not to have been dampened, however, as there were 2,279 business start-ups in the East Midlands in August, an 8.0% increase on the July figure of 2,110 but a 7.2% decrease on the 2,457 at the beginning of the year.
R3 Midlands chair Eddie Williams, a partner at PwC in the East Midlands, said: “These statistics highlight the tremendous challenges facing local companies trading in this current economic climate. While the increasing number of start-ups in the region is positive, it is obvious that late payments are likely to be a significant threat as businesses deal with the significant inflationary challenges ahead.
“It is crucial for local business owners, whether in start-ups or established companies, to be on top of their invoice ledgers and tackle late payments and the impact of bad debts as soon as they become evident.
“For those businesses which are already struggling, or whose directors may be worried about its situation, the sooner professional advice is sought, the more opportunities may be available for finding the best possible outcome. Many R3 members offer a free consultation to those who are looking for such help and want to explore their options.”
Planning granted for new 160,800 sq ft warehouse on former Weetabix site
The construction of a new speculative 160,800 sq ft industrial warehouse on the site of the former Weetabix factory on the Earlstrees Industrial Estate in Corby has been given the green light by councillors.
Copley Point Capital – on behalf of its Block Industrial program and Pembury Real Estate Ltd – submitted a planning application to North Northamptonshire Council earlier this year having purchased the 8-acre site on one of the town’s prime industrial parks. This application has just been approved by local councillors at a planning committee meeting.
The demolition of the existing building is close to being completed and the construction of the new unit will commence shortly with a view to delivering a new best-in-class facility by Q3-2023. The unit will be BREEAM Very Good rated and will feature a 12.5m minimum clear eaves height, 16-dock and two-level access doors, together with a 50m yard.
Copley Point Capital director, Nimit Oberoi, said: “We’re very pleased to have obtained planning permission for ‘Earlstree160’ just seven months after our acquisition. This is a testament to the hard work of our team and the positive and pragmatic attitude of North Northamptonshire Council.
“The development is in an excellent location where there is very little supply of new, high-specification industrial units. Earlstree 160 is best placed to help satisfy the strong demand for Grade A urban logistics and industrial space that there is for businesses operating locally, regionally and nationally.”
Prop-Search, Cushman & Wakefield, and Potter Learoyd have been appointed as marketing agents and Richard Baker, a director of Prop-Search, added: “We are already encouraged by the level of enquiries we have received. The appetite for ‘A’ grade warehouse space in the region remains high and this development will further support local economic growth and offer new job opportunities.”
6,000 sq ft of office space in 17th Century barn conversions hits the market
Almost 6,000 sq ft of office space in a series of 17th Century barn conversions has been brought to the market by Chartered Surveyors and Property Consultants, Wells McFarlane.
At Dovecote Court in the southwest Leicestershire village of Potters Marston, Wells McFarlane is offering four converted office buildings to let, ranging in size from 643 sq ft – 1,982 sq ft.
“These exceptional rural premises at Dovecote Court have become available for the first time in almost two decades, as the business park’s former anchor tenant relocates to continue expansion,” explains Wells McFarlane’s director, Andrew McFarlane Holt.
“Set within the walled confines and grounds of Potters Marston Hall, each building offers a modern office environment, either open plan or cellular spaces with air conditioning, together with allocated parking, gated intercom entry and access to a unique rural setting including outdoor courtyard and uninterrupted views across the Leicestershire countryside.”
Andrew adds: “Dovecote Court is well-known and when office space becomes available here it doesn’t remain for long so we encourage those looking for new premises to arrange viewings quickly. Since the pandemic, rural premises have proven exceptionally popular as business owners look to secure environments which are easily commutable, have established communities and are more conducive to wellbeing. Dovecote Court is ideally suited for businesses of all sizes and we’re offering these six offices with flexible lease terms.”
Eurocell secures 60,000 sq ft Alfreton distribution facility
Eurocell Profiles Ltd has taken a recently refurbished 60,000 sq ft distribution facility at Garnham Close, Alfreton, Derbyshire.
The building adds to its expanding portfolio of premises and depots across the UK and close to its headquarters, also based in Alfreton.
The recent refurbishment of the property included a new roof and cladding, enhanced loading provision and substantially extended surfacing to create large yards to front and rear.
Eurocell operates a nationwide network of more than 210 branches supplying a complete range of PVC-U roofline, conservatory roof, window trim and door products, as well as fixings, sealants and tools required for plastics-based jobs. It manufactures and stocks around 4,000 product lines and employs more than 1,000 staff across its network.
Commercial Property Partners (CPP), in conjunction with joint agents FHP Property Consultants, negotiated terms and subsequently leased the premises to Eurocell.
Sean Bremner, director at CPP, said: “The property underwent a substantial refurbishment and attracted a great deal of attention before we agreed terms with Eurocell Profiles. A key USP of the site is its low site density setting, creating a large yard for external storage which formed a key part of Eurocell’s requirements. We were delighted to be able to work with Eurocell to agree a final specification to create a facility to aid their expansion in Alfreton.”
Tim Gilbertson from FHP said: “It’s great that we managed to secure such a strong covenant in Eurocell, our joint marketing created interest from any number of parties and we had to disappoint quite a few, which shows the strength of local demand and the lack of space available. We wish Eurocell well in their new home which we are sure will prove to be absolutely ideal for them.”
Leicester solar PV service provider rescued
Rcapital has completed the acquisition of Avonside Energy Limited, the insulation and solar PV service provider.
Avonside Energy is a standalone division of the Avonside Group that entered insolvency proceedings last week. The transaction incorporates the Avonside Renewables business which has also been rescued by Rcapital as part of the deal. The acquisition has been a solvent deal and Avonside Energy is not part of the wider group insolvency.
Headquartered in Leicester, Avonside Energy has a strong national presence with operations in the West Midlands, East Midlands, Glasgow, Leeds, Newcastle, Warrington and Stevenage. This transaction will ensure the preservation of over 100 jobs across the country.
Avonside Energy will generate revenue of over £15 million this year and is profitable and cash generative. It employs over 100 skilled workers and is a key part of the new build supply chain, with major customers including Barratt Homes, Taylor Wimpey, Persimmon Homes, Redrow and Miller Homes.
Rcapital is an experienced investor in the construction services sector, having previously owned Rock Roofing Contractors, Alsop Architects and Plowman Craven. This is Rcapital’s second construction services acquisition in the last two months. Rcapital has appointed experienced operator Nick Alexander as chairman to further strengthen the management team.
Bill Rumble, Managing Director at Avonside Energy, said: “I’m delighted to confirm that agreement has been reached for Avonside Energy to be acquired by its management team with the support of Rcapital. This means it’s business as usual for Avonside Energy and the investment brought by Rcapital will mean we are in an even stronger position to make a major contribution towards the significant challenge our New Build customers face in satisfying the increased energy efficiency demands.”
Chris Campbell, partner at Rcapital, said: “Avonside Energy is a profitable business and a significant employer across the country with an enviable blue-chip client base. We are delighted to be supporting Bill and his team and firmly believe that Avonside Energy will be integral to helping the UK achieve its decarbonisation strategy of net zero by 2050.”
Kirstie Provan, partner at Begbies Traynor and joint administrator of Avonside Group Services Limited, said: “We are delighted to have completed the solvent rescue of the energy division of the Avonside Group, securing the preservation of a significant number of jobs and the future of the business. The purchase by Rcapital gives the business a solid platform from which to move forward, and we wish the management team every success.”
Rcapital was advised by Browne Jacobson LLP. Begbies Traynor were advised by Pinsent Masons LLP.
Strong year for Mattioli Woods
Revenue has skyrocketed at Mattioli Woods, the wealth and asset management business, according to final audited results for the year ended 31 May 2022.
The year saw revenue increase 72.8% to £108.2m, up from £62.6m in 2021. Alongside strong organic revenue growth, acquisitions made a positive contribution of £46.1m.
Meanwhile profit before tax was up 56.9% to £8m, from £5.1m in the year prior.
Ian Mattioli MBE, Chief Executive Officer, said: “The last financial year was another turbulent period for clients, which served to reinforce our commitment to putting clients first, developing our service offering and building a business that is sustainable and resilient over the long-term.
“I am pleased to report this approach delivered strong revenue growth of 72.8% to £108.2m (2021: £62.6m) reflecting the positive contribution of recent acquisitions combined with 10.0% organic growth in our core business and increased levels of new business offsetting the impact of negative market movements on the value of clients’ assets. Adjusted EBITDA was up 88.4% to £32.6m (2021: £17.3m) and adjusted EBITDA margin increased to 30.1% (2021: 27.7%) representing meaningful progress towards our strategic goals.”
He continued: “We plan to maintain this positive momentum, advancing our strategic initiatives: new business generation, growth through the integration of acquisitions, developing new products and services, reviewing our processes and investing in technology to deliver an improved client experience and further operational efficiencies.
“Investment markets are likely to remain volatile for some time, although the spectre of rising inflation typically creates significant advice opportunities given our diverse revenue streams and for further investment inflows as existing and prospective clients consider appropriately investing surplus cash to avoid suffering an erosion in value of savings in real terms.
“We will continue to seek to understand our clients’ needs and provide quality solutions, maintaining our focus on client service and continuing to adapt our business model to the changing market, integrating asset management and financial planning.
“We further plan to build on our track record of successful acquisitions by continuing to assess and progress opportunities that meet our strict criteria. Consolidation within wealth management, asset management and SIPP administration is expected to continue for the foreseeable future, with many more opportunities coming to market.
“I sincerely thank and remain humbled by the continued professionalism, commitment, endeavour and agility that our people have shown in managing our clients’ affairs throughout another challenging year.
“The outlook for the new financial year remains positive, notwithstanding the continuing challenging macroeconomic conditions, and we continue to trade in line with expectations. As previously disclosed, cost inflation and progressing our strategic initiatives including investment in people and technology are expected to impact margins in the short term but will position us to secure future growth in revenue and profits. This will also provide opportunities to deliver future growth and sustainable shareholder returns as a business that is here for the long term.”
Revenue and profit growth continues at Gateley
Gateley, the legal and professional services group, has posted strong audited preliminary results for the year ended 30 April 2022 (FY22), which continue the firm’s pre and post IPO unbroken record of year-on-year revenue and profit growth, and out-performed market expectations set at the start of the year.
The company noted it has achieved significant organic growth and strengthened the business further through diversification and investment into new complementary service lines, while maintaining control on costs in the face of market specific and macro-economic headwinds.
It added that the balance sheet remains strong and the group has significant headroom in its banking facilities to invest in further organic and acquisitive growth opportunities.
During the year Gateley posted group revenue of £137.2m, up from £121.4m in the year prior.
Profit before tax meanwhile hit £18m, up from £16.3m.
Three earnings-enhancing acquisitions were completed in the period.
Rod Waldie, CEO of Gateley, said: “I am delighted with the group’s performance in FY22. We have delivered another set of strong revenue and profit growth figures whilst continuing to strengthen our balance sheet. Legal services generated solid organic revenue growth, comparing favourably with reported UK legal industry performance. Our consultancy service lines delivered impressive organic growth of 26.7% resulting in overall consolidated group organic revenue growth of 10.9%.
“I am particularly pleased that we completed three exciting consultancy acquisitions in the Period and achieved annualised consultancy revenue of over c.£32m as we continue to grow our complementary services, diversifying our offering and deepening our connections with our clients.
“I thank our ever-expanding client base for their trust and support throughout FY22 and for giving us the opportunity to work with them on high quality mandates. We remain committed to our purpose of delivering results that delight our clients, inspire our people and support our communities. We have a good pipeline of work and maintain our expectations for growth in FY23, despite the well-reported inflationary pressures. We look forward to continuing to grow the group, both organically and via acquisition.”
Record first half revenues for Team17
Team17 group, the video games label with offices in Nottingham, Manchester, and Wakefield, has reported another solid performance in unaudited results for the six months ended 30 June 2022 (H1 2022).
During the period, revenues grew 33% to a record £53.2m, up from £40.1m in the same period of 2021.
Profit before tax meanwhile decreased to £11.2m from £14m.
The business completed a number of “high quality acquisitions,” focused on broadening the group’s geographical footprint and operational reach, alongside adding high quality first party IP.
Debbie Bestwick, Chief Executive Officer of Team17 group plc, said: “We are pleased with the group’s first half performance, trading in line with our expectations. Our new acquisitions, led by our talented and committed management teams, have worked incredibly well together across all parts of the group, and we are all looking forward to a busy and productive second half.
“The group now has more evergreen first party IP’s than ever before, alongside a phenomenal back catalogue portfolio, and in StoryToys, a growing subscription revenue model. New releases include additions to many established franchises and licensed global brands as well as exciting new original IP’s that are tracking well.
“Complementing our first half performance, we have made an encouraging start to the second half of FY 2022 and we remain confident about the group’s prospects going forwards.”
