- Manufacturing output growth picked up in the three months to May (balance of +30 from +19% in the three months to April), with output increasing at the fastest rate since the three months to July 2021. Although output growth is expected to ease in the three months to July (+23%), the pace of expansion will remain comfortably above the long-term average (+9).
- Total new orders were above normal to a greater extent than last month (+26% from +14% in April), matching the record high seen in March. Export order books were above normal to the greatest extent since January 2018 (+19% from -9% in April).
- Stock adequacy for finished goods deteriorated in May (-15% from -3%). 26% of manufacturers this month said stocks were inadequate, with 11% saying that stocks were more than adequate and 54% saying they were adequate.
- Expected domestic price growth for the three months ahead picked up slightly in May (+75% from +71% in April), moving closer to March’s survey record high (+80%).
- Confidence showed a further decline in the quarter to May (-30%), while investment plans for buildings (-6%) and plant and machinery (-2%) remained weak.
Manufacturing output growth accelerates, but confidence falls further
UK manufacturing output grew at its fastest pace in ten months over the quarter to May, according to the latest monthly CBI Industrial Trends Survey.
Output still failed to keep pace with demand, however, as the volume of stocks of finished goods became less adequate compared with last month.
The balance of firms expecting to raise selling prices in the three months ahead increased slightly, moving closer to March’s record high.
The survey, based on the responses of 249 manufacturers, found:
The Access Group commits further to Australia and New Zealand with new acquisition
The Access Group and Reckon have reached a $100m agreement for Loughborough-headquartered Access to acquire Reckon Accountants Group, including APS and Reckon Elite, in Australia and New Zealand.
The acquisition reinforces Access’ commitment to the region and to the accountant’s industry, signalling its intent to advance its tax and practice management offering for ANZ accounting firms.
Today’s announcement marks the 10th acquisition in three years for Access in the Asia Pacific region, building on the purchases of Attaché, Unleashed, Joyful, Volcanic, Sage Australia and Asia businesses, Definitiv, EziTracker, Fastrack360 and Vincere since 2019.
Reckon is a provider of practice software and business management solutions designed specifically for accounting firms.
The Access Group has gone from having no presence in the region to 2019, to today supporting more than 35,000 customers, with 900 colleagues, across five countries.
Kerry Agiasotis, president of The Access Group Asia Pacific, said: “The acquisition of Reckon Accountants Group further reinforces Access’ commitment to the accountant’s industry in Australia and New Zealand, which commenced with the purchase of HandiSoft as part of its acquisition of Sage’s Australia and Asia businesses in 2021. With this being our 10th acquisition in the region in just three years, it shows our strong commitment toward rapidly scaling Access Asia Pacific to best support our customers evolving needs.
“We are bringing together two businesses with a strong track record over more than 30 years delivering end-to-end solutions tailored to the specific needs of accounting firms in ANZ. With The Access Group and Reckon Accountants Groups combined industry experience, capabilities and resources, we are uniquely placed to continue to deliver the breadth and depth of software solutions that accounting firms require to adapt their practices to their clients’ rapidly changing needs.
“The combination of our expanded tax and practice management portfolio coupled with cloud technologies and the Access Workspace platform, come together to create an exciting set of new possibilities for our accounting customers. From hosting existing applications, integrating with new cloud point solutions or replacing with whole new cloud native application suites, our aim is to give our clients confidence that we will support them into the future at a pace that works for them.”
Reckon CEO Sam Allert said: “This partnership is good news for our customers, our employees and for the market. The proposed transaction agreement with The Access Group represents a compelling offer, which is also clearly in the best interests of our shareholders. The Board has always maintained that the sum of the company’s parts is worth more than what has been attributed to the whole, and this proposed transaction validates this.
“For our APS and Reckon Elite customers, we are thrilled to bring them the deep specialisation that Access boasts within the practice management market, and offer an extended portfolio of solutions that will deliver added value to our customers and theirs.
“We have spent more than 20 years imagining ways to create brave, new and progressive accounting firms. This acquisition is the natural next step to ensuring continued investment in our vision to simplify business for the benefit of all our customers.
“In joining with The Access Group our teams can broaden the service and solutions available to customers, build on the vision for growth we all share, and ultimately make this a reality for our growing client base.
“In addition, Reckon will be in a much stronger position to unlock further shareholder value through the growth and development of the remaining Business and Legal Groups not captured in this agreement. These divisions have represented approximately 70 per cent of the company’s revenue and a significant portion of EBITDA prior to the initiation of this agreement.
“With this transaction, Reckon will be well placed to accelerate the strategy of delivering a complete suite of accounting & payroll cloud solutions to help small businesses turn ambition into accomplishment, building upon our 114,000 cloud customers, as well as pursue practice management opportunities in the legal market. Proceeds from the sale will also allow the company to reward shareholders with a special dividend, continuing our trend of providing a stable income stream,” Mr Allert said.
Kettering foiling services firm acquired by Gloucester business
Window Widgets has acquired Kettering-based Profoil Limited, a specialist of foil lamination for over 25 years, and have announced the formation of the Q19 Group.
Profoil provides foiling services to the fenestration and building materials markets in the UK and Republic of Ireland.
Gloucester-based Window Widgets began in 2000 and became the largest range of universal ancillaries for the fenestration market.
The deal was put together by the Q19 director team with advice from Cattaneo Corporate Finance and Legal Clarity, with financial support from Shawbrook Bank. The management of Profoil Limited were advised by Kingswood Business Sales, a division of Richmond Capital Partners.
Sarah Hitchings, sales and marketing director of Q19 Group, said: “I, along with the other directors of the business, are pleased to announce the strategic acquisition of Profoil, a key supplier to Window Widgets. We now have an opportunity to continue investing and realising the considerable potential of Profoil within our group.”
Visit APSS at the Lincolnshire Business Expo 2022
Commercial interior design and fit out company APSS is exhibiting at the Lincolnshire Business Expo 2022, helping businesses create the right working environment for staff to promote productivity and morale.
Hosted at the Lincolnshire Showground by CityX on Tuesday 24 May, expert staff will be on hand, ready to provide inspirational ideas to make your business stand out from competitors and streamline efficiency.
Stuart Marsland, sales director for APSS, said: “The way offices are used has changed drastically over the last two years. Whilst some have returned full time to the office, many companies have found the benefits of hybrid working. They want to adapt their workspace to a more communal meeting space. Companies are focusing on how to bring the home comforts into the office and moving away from the more traditional banks of desks.”
APSS works across a range of industries including commercial, industrial, retail, leisure, education and healthcare.
“We are here to help businesses find the right balance for their staff, helping to take their concept and make it a reality,” added Stuart. “Our team, who will be available to speak to on the stand ES6, can help provide ideas and inspiration for small changes, large-scale fit outs and refurbishments.”
From concept to completion, APSS provides personal service and creates a stunning work environment for all types of businesses. Get in touch to let them know you’re coming, book a slot to speak with them or just turn up on the day.
Nottingham City Council reports smallest pay gaps among Core City councils
Nottingham City Council is making “good progress” towards closing pay gaps between staff of different gender, ethnicity and disability.
The authority compares well with other councils and local public sector organisations – with data showing that across the whole organisation, it has the smallest average gender pay gap among Core City councils and lower than many local public sector organisations.
Across the council, the average female member of staff earns 97p for every pound earned by her male counterpart – a 2.9% pay gap – while for middle earners the gap is smaller still, at 0.5%. The discrepancies are down to more men being in higher-paid jobs and more women being in lower-paid jobs.
Meanwhile, disabled employees on average are paid slightly more than able-bodied colleagues – £1.01 for every £1, a gap of minus 1.1%. this rises to £1.10 for every £1, a gap of minus 10.4%, among middle earners, which is up from 5.8% in 2020. This is because disabled employees are very evenly spread throughout the organisation, with slightly higher representation in middle and higher ranked posts.
Among Black, Asian and Minority Ethnic (BAME) staff, most earn 94p for every £1 white colleagues earn – up slightly from 2020, with middle earners receiving 91p for every £1, or a 9.4% pay gap. The differences are likely to exist because White British employees are slightly overrepresented higher up in the organisation and slightly more BAME employees in lower paid roles.
The council says it is continually seeking ways to support and develop its staff, including embedding Equality, Diversity and Inclusion within the organisation’s culture and developing ongoing learning and resources to support leaders to work in an inclusive way. Measures include introducing programmes such as the Change Academy, which responds to calls from staff for more development opportunities and will help the council to “grow its own” to drive the transformation and improvement of the organisation.
Nottingham City Council’s Chief Executive, Mel Barrett, said: “We are headed in the right direction towards closing pay gaps, and compare favourably with Core City councils and local public sector organisations. We are not shying away from this issue and are taking active steps to bring about positive change. Despite the positive progress, we are not going to become complacent and will continue to ensure that there is equity of pay throughout the organisation.
“Our aspiration is for Nottingham to be an internationally successful and prosperous city that offers its residents the means and opportunities to realise their potential. Pay gap reporting helps us to identify inequalities that need to be addressed.”
Astorg not moving forward with offer for Ideagen
Astorg has backed out of bidding for Ideagen, the Nottinghamshire-based software firm.
It was revealed that the private equity firm had proposed a cash offer for the company at the start of May, as had Hg, coinciding with private equity firm Cinven confirming it did not intend to move forward with an offer for the business.
An announcement today reads: “Further to the announcements made by Ideagen on 5 May 2022 and 9 May 2022 in which Astorg was identified as a potential bidder for Ideagen, Astorg today confirms that funds represented by Astorg do not intend to make an offer for Ideagen.”
Meanwhile, Hg has put forward an offer to acquire Ideagen, valuing the business at £1.05bn.
Revealing this, Richard Longdon, non-executive chairman of Ideagen, said: “The Ideagen directors unanimously intend to recommend the offer to shareholders.
“The all-cash offer represents a compelling and attractive opportunity for shareholders to realise and crystallise their investment in Ideagen in the near term and also provides a significant premium to the prevailing share price notwithstanding the backdrop of the wider risks posed by the political and macro-economic environment.
“The offer reflects the quality, strength and long-term performance of Ideagen’s businesses and its future growth potential. We believe that Hg’s track-record and expertise in supporting and growing software businesses would provide a complementary partner for Ideagen’s stakeholders.”
Christopher Fielding, Joris Van Gool and Jean-Baptiste Brian, partners at Hg, said: “At Hg, we have spent over 20 years focused on the business-to-business software space. We have long admired how Ben and his highly motivated team have grown Ideagen into a leader in its sector.
“Our experience in the sector gives us strong conviction that Ideagen represents a high-quality platform, and we are committed to providing additional capital and resources that are required to further support and enhance Ideagen’s next phase of growth.
“Hg has a strong track record of investing in and growing UK-based software businesses. We recognise that Ideagen is a global organisation with stakeholders around the world, but with deep community ties and a strong local heritage. We strongly believe that the core of the business should be maintained in its Nottingham base, including its executive team and technological development centre.”
Viridis Building Services joins sponsor line up for the East Midlands Bricks Awards 2022
Viridis Building Services has joined the sponsor line up for the East Midlands Bricks Awards 2022, backing the Sustainable Development of the Year category.
Speaking with Business Link, Lee Marshall, Managing Director at Viridis Building Services, said: “We are delighted to sponsor Sustainable Development of the Year at the East Midlands Bricks Awards again this year. Being sustainable is one of our core values. We promote it within our business and to the businesses and practices we work with. It is something we are immensely proud of, strive to be leaders on, and we actively want to be involved in presenting awards and recognising developments that we feel are outstanding in this area.
“At Viridis, we understand how every single detail in the construction of a building can impact our environment. Working in partnership with architects, builders, project managers and their clients, we provide intelligent, innovative and, above all, sustainable building services to projects across a wide range of sectors.
“From designing in core sustainable principles at the earliest stages of projects, through to delivering low-carbon, low-cost lighting, water and energy systems, we are ensuring the East Midlands spearheads Sustainability and Environmental Design. We are excited to see this year’s entries to the East Midlands Bricks Awards and look forward to attending the ceremony to reveal the ultimate winner of Sustainable Development of the Year in September.”
The awards, which will take place on Thursday 15 September at the Trent Bridge Cricket Ground, celebrate the excellent work of those shaping the landscape of our region, recognising development projects and people in commercial and public building across the East Midlands – from offices, industrial and residential, through to community projects such as leisure schemes and schools.
Nominations are now OPEN for East Midlands Business Link’s annual Bricks Awards.
To submit a business or development, please click on a category link below or visit this page.
“At Viridis, we understand how every single detail in the construction of a building can impact our environment. Working in partnership with architects, builders, project managers and their clients, we provide intelligent, innovative and, above all, sustainable building services to projects across a wide range of sectors.
“From designing in core sustainable principles at the earliest stages of projects, through to delivering low-carbon, low-cost lighting, water and energy systems, we are ensuring the East Midlands spearheads Sustainability and Environmental Design. We are excited to see this year’s entries to the East Midlands Bricks Awards and look forward to attending the ceremony to reveal the ultimate winner of Sustainable Development of the Year in September.”
The awards, which will take place on Thursday 15 September at the Trent Bridge Cricket Ground, celebrate the excellent work of those shaping the landscape of our region, recognising development projects and people in commercial and public building across the East Midlands – from offices, industrial and residential, through to community projects such as leisure schemes and schools.
Nominations are now OPEN for East Midlands Business Link’s annual Bricks Awards.
To submit a business or development, please click on a category link below or visit this page.
Award categories include:
- Most active estate agent
- Commercial development of the year
- Responsible business of the year
- Residential development of the year
- Developer of the year
- Deal of the year
- Architects of the year
- Excellence in design
- Sustainable development of the year
- Contractor of the year
- Overall winner
Find out who last year’s winners were here.
Thanks to our sponsors:
Book your tickets now
Tickets can now be booked for the awards event – click here to secure yours. The special awards evening and networking event will be held on 15 September 2022 in the Derek Randall Suite at the Trent Bridge County Cricket Club from 4:30pm – 7:30pm. Connect with local decision makers over canapés and complimentary drinks while applauding the outstanding companies and projects in our region. The event will also welcome John Forkin MBE DL, Managing Director at award-winning investment promotion agency Marketing Derby, as keynote speaker. Dress code is standard business attire.
To be held at:
Major housing and employment development area to bring tens of millions of pounds of community benefits to Lutterworth
A major housing and employment development area in Lutterworth will bring tens of millions of pounds in community benefits, affordable homes and much-needed infrastructure.
Plans for 2,750 new homes, community facilities and employment space to the east of Lutterworth were approved in July 2020. Approximately 1,260 of the new homes are expected to be built by 2031 and the rest after 2031.
The 550-acre development – known as the Lutterworth East Strategic Development Area (SDA) – was identified in the Harborough Local Plan as a key area to accommodate new housing in the district. It will include over 100 hectares of green space – approximately half of the site – two new primary schools and employment space to create around 2,500 jobs.
The development could attract as much as £1billion of investment to support the local economy.
A new spine road, also being created as part of the scheme, is expected to significantly reduce the amount of traffic travelling through Lutterworth town centre.
Harborough District Council issued the decision notice on the scheme this week having agreed substantial community benefits, through a Section 106 agreement, with developers contributing millions of pounds towards facilities for residents in the area.
Cllr Phil King, leader of Harborough District Council, said: “This development will provide a much-needed investment boost to the local economy, with job and training opportunities during construction. As well as providing vast amounts of open space, it will also provide homes to benefit many local families and, with 40 per cent of homes being affordable, help those struggling to afford their own home, a place to live.”
The scheme will provide:
- A Community Park, playing fields, allotments, woodland, trees and hedgerows and new ecological habitats
- Land for a potential new leisure centre in the future
- Foot and cycle paths – connecting with Lutterworth town centre
- 23 hectares of retail and business space – creating up to 2,500 jobs
- Two new primary schools and special education unit
- Improvements to main roads and junctions to increase capacity, a new M1 bridge, and a new spine road
- A community hub – with the potential for shops, restaurants, cafes, community hall and other local facilities
- Approximately 1,260 of the new homes are expected to be built by 2031 and the rest after 2031
Pall-Ex builds focus on international expansion with appointment of division lead
Leicester-based Pall-Ex has cemented its commitment to the global logistics marketplace following the appointment of Sue Buchanan to international network director.
Promoted internally from her previous role of UK network director, Sue will be focusing on developing cross border growth, strengthening relationships with existing partners, and key for international expansion, onboarding new territories.
With an established career in the logistics sector, Sue has worked at Pall-Ex for seven and a half years, successfully driving member recruitment, member relationship management, member volume growth and compliance in her previous position.
International expansion is a growth area for Pall-Ex, and Sue is joined by an additional general manager within the division as part of its commitment to growing a team of cross-border specialists.
Commenting on the new role, Sue said: “I am delighted to be helping Pall-Ex drive growth internationally. With the initial challenges of Brexit subsiding and travel now starting to open up, we can really build our presence with partners across the globe.
“The knowledge I bring in logistics from the UK is invaluable when looking at developing and nurturing new global markets. My aim is to increase shareholder value through our knowledge, marketing support and IT, such as the MyNexus platform, globally.”
Mark Steel, Pall-Ex’s Managing Director – international business units, is optimistic about the opportunities overseas, saying: “We have a proven business model in Europe and have already enjoyed wider growth internationally. Sue’s promotion will help take the business into the next development phase, kick starting growth within new, international areas.”
The international expansion includes two new Pall-Ex signings: a master licensee in Czechia / Slovakia in early autumn last year, and an additional new agreement to cover Ireland.
In Poland, a new central hub has also been opened. The new facility in Łódź, means that the Pall-Ex Polish central hub is now in the centre of the country.
Customers pay the price as volatile supply chains pressure mid-market
Research from Grant Thornton UK LLP’s latest Business Outlook Tracker research, which looks specifically at 370 leaders of businesses with a supply chain, shows that over half (52%) are finding it harder to operate their business today, compared to 12 months ago.
To manage cost pressures, 61% of respondents said that their suppliers have agreed to more flexible (longer) payment terms, and 55% said increasing costs in their supply chain are being passed onto their customers through higher prices for their products/services.
42% of the respondents had already increased their prices, with a further 51% planning or expecting to raise prices this year. This increasingly challenging operating environment has been fuelled by headwinds such as commodity prices, increased trade administration, energy costs and political uncertainty.
Building a resilient and agile supply chain is now a top priority for 57% of respondents, with around 48% saying that their business did not have a good enough understanding of their business’s supply chain to be able to respond quickly to disruption over the last 12 months. The top risks to mid-market supply chains were identified by business leaders as cyber security, Brexit disruption, ethical breaches by suppliers and rising inflation.
Sue Knight, is a partner and practice leader at Grant Thornton UK LLP in the Midlands. She says business leaders should keep action simple and practical, first creating a risk benefit analysis and then finding opportunities that have the most buy in and can be actioned quickly.
She says: “Businesses in the Midlands need to take a risk and profitability-based approach to their supply chain as changes that affect businesses are happening constantly, whether you are prepared or not. Business leaders should take time to identify the most likely and damaging risks to identify improvements that can help build resilience, increase supply chain predictability and reduce supplier risk. They should then add analysis of profitability to the picture, which will help to identify the most resilient products and customers.
“It will likely take 18-24 months for organisations to make any meaningful changes to their supply chains, and this timeline will depend on the maturity of the supply chain approach. The Midlands’ businesses should plan for 12 months at least to put systems in place. Look for simple steps that you can action right away, such as measuring and mapping, as many improvements do not need large investments.
“Finding the opportunities that have the most ‘buy-in’ and investment from the business is also vital. For example, if your internal ESG strategy isn’t in order, then your supply chain will be a long way off. Identify which initiatives bring business benefit and are either established, or will be supported in your own business, and focus on those initially.”
Five actions businesses can take to build sustainable supply chains
Use data as much as possible
You should use relevant data to identify risk, map the supply chain and identify existing profitability by product, country or customer. This will help you to make and prioritise decisions in the supply chain – whilst knowing the cost impact of the decisions.
Identify your ESG priorities
All supply chain activity is underpinned by the growing ESG agenda. Often, prominent ESG risks are in line with general supply chain risks, such as location of suppliers. Also, lenders and other stakeholders are more likely to support businesses with strong ESG cultures – for example by offering lower lending rates. Lenders and other stakeholders will increasingly look to ESG reporting and adherence to regulation, so having data ready, even before they ask, will be key. In addition, your supply chain partners need to be able to provide you with assurance that they are operating in line, not just with regulations, but with your standards, and in an objectively ethical manner.
Get visibility of tax and reporting policy
Tax and reporting policies are designed to raise revenue and change behaviours of businesses. You need to keep on top of the direction of travel in the key territories in your supply chain. More taxes are likely to be introduced relating to sustainability – such as plastic packaging taxes and, most significantly, carbon taxes and pricing mechanisms. These taxes will add significant costs into your supply chains that you may not yet be aware of or have planned for.
Understand how tax and reporting sensitivity scenarios can be built into the data you are already collecting and ensure your suppliers are doing the same
You will start to feel pressure from larger customers to adhere to their reporting requirements, perhaps even internationally. TCFD and EU initiatives will play a bigger role – many businesses are not compliant today and need to do more. If you feel you are behind, that is ok, as there is time to catch up. Start by reviewing the data you are already collecting and identify the gaps in terms of supply chain and ESG. You also need to ensure that all the suppliers and partners involved in your supply chain, from start to finish, are transparent, that they’re adhering to legislation and that you get early visibility of potential cost increases.
Educate your business on emissions
Findings from the Business Outlook Tracker around COP26 last year showed that 1 in 3 mid-market businesses in the UK had not calculated their carbon emissions for the year, and half (49%) had not set a net zero strategy. It is vital that all parts of your business understand emissions (internal and external) and their impact on the environment. If you haven’t already, you should begin by measuring your impact in terms of Scope 1, 2 and 3 emissions.
