< Previous10 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FINANCE NEWS Leicestershire flooring retailer set to grow with £8m boost BGF, the growth capital investor, has invested £8 million into Leicestershire-headquartered UK Flooring Direct to support its ongoing growth ambitions. UK Flooring Direct is an online retailer supplying own-brand wood, laminate, and vinyl flooring direct to consumers and trade. The business was set up by CEO Jason Ashby in 2005 with £299 to purchase a website that would form the original platform for the business. UK Flooring Direct went on to generate sales of £750,000 in its first year and now, 15 years later, expects revenue to top £50 million this year, having doubled sales over the last 24 months. On the back of exceptional growth, UK Flooring Direct expanded into a second site in Coventry last month with extended warehouse, office space and has plans to create 50 additional roles, taking its headcount to more than 200. BGF’s investment will be used to scale the brand and support significant range extensions in both existing and new product categories, as well as opening an office in China to support procurement and product development, and ongoing enhancements in customer experience. Keith Pacey is currently Chair at UK Flooring Direct and will continue in this role to support the ongoing growth of the business. The expansion of UK Flooring Direct’s partnerships and connections with the trade sector will also play a significant part in its growth post investment. Trade sales have increased 25 per cent year on year, with significant scope for further expansion. UK Flooring Direct will be looking to capitalise on ongoing demand, underpinned by the sector’s increasing move towards digital supply channels. Jason Ashby, CEO of UK Flooring Direct, said: “We recognised the importance of digital 15 years ago and have invested in building a market-leading technology platform that customers want to interact with and that provides convenient access to the products they’re looking for. “This has underpinned our growth to date, however, the pace of digital transformation we’ve all experienced this year has resulted in a surge in ecommerce sales that we have been perfectly positioned to address. “BGF’s backing will allow us to unlock further growth quickly, expand our market share and move into complementary markets. The scale of BGF’s portfolio, reach and influence, combined with a supportive local team in the Midlands made them the obvious partner.” MBO completes at Leicester knitwear supplier A management buyout has completed at the BHM group of companies, which includes BHM Knitwear Limited (BHM). BHM, which operates from a state of the art design and sampling facility in Fleckney, South Leicestershire, has supplied fashion knitwear to UK and European brands for over 40 years. The company has manufacturing sites in UK, Romania, Turkey, China, Bangladesh and Myanmar. Managing Director, Ben Littlejohn and Sales Director, Nick Barana, supported by industry investors, completed the acquisition. Despite Covid-19 restrictions the management team has managed to successfully grow the business, gaining support from external investors who are looking at the long-term opportunity for BHM. The investors advised by Team Emperia, who continue to advise the company going forward, were impressed by the “exciting youthful dynamism” of the management team and believe that the business has an opportunity to become an industry disruptor. Ben Littlejohn, Managing Director, said: “This deal provides a fantastic opportunity for myself, Nick, the investors and the rest of the team at BHM. With a perfect mix of enthusiasm, passion and a wealth of experience, the future of BHM looks incredibly exciting and I’d like to thank all of those involved in helping complete this deal.” Northampton-headquartered automotive specialist secures £750k CBILS support IN‘n’OUT Autocentres, a group of 27 car garages across the UK, has secured a £750,000 loan from HSBC UK through the Coronavirus Business Interruption Loan Scheme (CBILS). The company specialises in MOTs as well as a broad range of maintenance, repairs and servicing work for passenger and light commercial vehicles. Following the Government’s announcement of the MOT extension earlier this year as a result of the coronavirus outbreak, IN‘n’OUT took several steps to manage the impact, one of which was the application for a CBILS from HSBC UK. Furthermore, the company also reacted by promoting its services to NHS staff and key workers in a bid to keep them mobile during the pandemic. Following the end of the MOT extension in October, the business saw a significant increase in demand for its services and quickly returned to pre-Covid trading levels. IN‘n’OUT is using the six-figure loan from HSBC UK to mitigate the challenges faced this year as a result of the pandemic. Jon Morgan, CEO of IN‘n’OUT, said: “We had plans to continue our growth in 2020 with more new locations planned, however Covid put these plans on hold. As a result, we have used 2020 as an opportunity to refine our business model by extending one of our centres as well as relocating another, and we are already seeing the benefit of this increased capacity.” Ben Littlejohn and Nick Barana 06-15.qxp_Layout 1 03/12/2020 10:13 Page 5FINANCE NEWS Accrol Group has completed the £41.8m acquisition of Leicester Tissue Company (LTC), in a deal led by Zeus Capital. Zeus Capital acted as Nominated Adviser and Joint Bookrunner on the transaction, which included an oversubscribed placing and open offer of c. £45m. Accrol Group, based in Lancashire, is a tissue converter and supplier of toilet tissues, kitchen rolls and facial tissues, as well as other tissue products, to major discounters and grocery retailers throughout the UK. Founded in 2014, LTC is a fast growing, independent tissue conversion business, supplying private label and branded toilet roll and kitchen towel to UK customers, including major supermarket multiples and value retailers. LTC has delivered a revenue compound annual growth rate of c.70 per cent between FY17 and FY19. In the unaudited year ended 30 September 2020, LTC generated revenues of £28.0m and adjusted EBITDA of £4.5m. The acquisition will increase Accrol’s share of the total UK retail tissue market to approximately 16 per cent of the £1.7bn UK industry and consolidate its position in the private label retail tissue market. Gareth Jenkins, Chief Executive Officer of Accrol Group, said: “The acquisition of LTC is fully aligned with our “Brand Killers” growth strategy, adds significant capacity to our existing business and is a major step change that will enable the enlarged organisation to continue to grow ahead of the market. “We look forward to demonstrating the significant benefits the acquisition will have for the Accrol group.” Dan Bate, Head of PLC Advisory at Zeus Capital, said: “The fact that both the placing and the open offer were significantly oversubscribed highlights that investors recognise the outstanding job that the Accrol management team has done in restructuring the business, despite ongoing economic uncertainties. “The enlarged group now has a huge opportunity to maximise growth over the coming months, and we look forward to supporting Gareth, Dan Wright and the rest of the management team in the next phase.” Accrol was advised by a national, multi-disciplinary Deloitte team led by the Manchester Advisory Corporate Finance team (Andy Westbrook, Ben Wood and Jarek Steadman) with support from the Equity Capital Markets (Chris Nicholls and Craig Lukins) and Transaction Services teams (Jodi Birkett, Anika Keys and Steven Ringrose). www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 11 Northampton’s Panther Logistics acquired by US firm Northampton-based Panther Logistics has been acquired by US-based AIT Worldwide Logistics, a global transportation management leader. The acquisition follows a year in which Panther has seen an exponential increase in online shopping leading to an expanded team as well as several new partnerships with customers wishing to take advantage of the company’s offering. Panther specialises in the retail and ecommerce sectors, and its customers include Wayfair, Silentnight, Dunelm, Maze, Decathlon and Habitat. AIT Worldwide Logistics already has a significant presence in the US in the white glove home delivery and e- fulfilment sectors with the two businesses sharing a number of synergies. The acquisition will see AIT supporting Panther’s continued growth, further reinforcing its position in specialist two-man delivery, while extending AIT’s presence in the UK market. For Panther it will be business as usual with the existing management team remaining in place. At the helm Commercial Director Gary McKelvey will take the reins as Managing Director. He will be supported in his new role by Colin McCarthy to ensure a seamless transition. Colin McCarthy said: “Becoming part of AIT’s expansive global network provides a springboard for further growth and investment. It is a hugely exciting development in Panther’s journey and one which will mark a new era for the business for the benefit both our customers and employees alike. “With the growth in online shopping continuing to escalate at unprecedented levels, the quality of delivery has become a key differentiator for many retailers and a major driver for consumers. Customer experience is therefore vital. Everything we do is designed with the end customer in mind and we aim to make delivery as easy and convenient as possible.” © Shutterstock /Studio Light and Shade Jason Ashby Accrol completes £41.8m acquisition of Leicester Tissue Company 06-15.qxp_Layout 1 03/12/2020 10:13 Page 6Derby-based manufacturer enters space sector Pentaxia, a Derby-based manufacturer of advanced composites, has been selected by Moog Inc. to design and manufacture complex tooling and subsequent composite components for the Small Launch Orbital Manoeuvring Vehicle (SL-OMV) project. The SL-OMV is designed to deploy CubeSat constellations and guide small satellites to their final orbit. The first SL-OMV will be supplied by Moog Inc. to Lockheed Martin as part of the UK Spaceflight Programme, supported by the UK Space Agency. The lightweight vehicle is a propulsive device to be used on rockets dedicated to the launch of small satellites. Pentaxia’s Sales Director, Tim Ollier, said: “Pentaxia is delighted to be chosen by Moog Inc. to develop and manufacture critical structures for this exciting Space project. This is Pentaxia’s first major step into the Space sector and the tooling and component requirements are extremely challenging. “Nonetheless, it demonstrates our expertise, reputation and “can-do” attitude in the global composite industry. Our team are truly world-class in their respective fields from tooling design and composite material knowledge, right through to manufacturing finished structures. “The SL-OMV project is a great opportunity to showcase this expertise and anticipate it to be the first of many future projects working closely with Moog.” Pentaxia will design and manufacture all tooling and composite activities in-house, offering a turn-key deliverable solution to Moog Inc. 12 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk MANUFACTURING NEWS Digital skills investment powering UK manufacturing through COVID crisis British manufacturing companies moved at speed towards digitalisation when the pandemic struck, with nearly half switching to digital working practices within two weeks of lockdown, according to new research, ‘Digital Skills for a Digital Manufacturing Future’, published by Make UK, the manufacturers’ organisation, and Sage. With just a fortnight’s digital installation and planning, 94% of companies said they had staff working successfully from home in industries often associated with manual tasks and a high proportion of production-based work. Some 91% of those manufacturers benefitted from adopting new digital technologies during the crisis. And eight out of ten companies said they would continue to adopt new working practices having seen the quick benefits. A quarter of companies polled found utilising new digital technologies had boosted productivity and 12% said it had increased production levels. Some 87% of manufacturers said investing in digital training gave them a competitive advantage, and nearly two-thirds (64%) had undertaken training to improve digital skills in the last 12 months. Interestingly, it was the very smallest and largest companies which were more likely to have taken on such training – 83% of companies with up to 9 employees and 94% employing more than 1,000 staff. In the past few months, it is those new skills which enabled the quick adoption of digital to deliver the remote production and monitoring systems which kept vital lines working effectively, virtual trade exhibitions and the use of 3D avatars for sustainable sampling and virtual commissioning. The use of digital was also found to accelerate innovation plans. While digital skills were paramount in keeping Britain’s manufacturers open for business and enabling the switch in production to vital PPE equipment and ventilators for the NHS, this acceleration must continue at pace to promote continued growth as the sector rebuilds. It is good news that 45% of companies said they had already changed their skills training and strategies in the light of COVID 19. But cost pressures and the need to socially distance has meant that two thirds of companies have put some or all of their training on hold. Manufacturers looking to ‘reshore’ activity to UK against backdrop of COVID-19 caution A significant proportion of manufacturers are looking to ‘reshore’ activity to the UK against a backdrop of COVID-19 uncertainty and a shift in investor priorities, according to EY’s latest UK Attractiveness Survey, which tracks the UK’s appeal as a destination for foreign direct investment (FDI). Nearly a third (32%) of the manufacturing businesses surveyed said they would be looking to ‘reshore’ activity to the UK. The figures are the latest evidence of the economic impact of the COVID-19 pandemic, which has created uncertainty around business investment and prompted a re-think of investor priorities. The survey of 220 non-UK investment decision makers also found that 43% of respondents are continuing with the UK investments they planned before the pandemic, down from 72% in April. According to EY’s analysis, these figures would mean 30-45% fewer FDI projects in the UK in 2020 than the 1,109 projects recorded in 2019 – equivalent to a fall of between 333 and 499 projects. As well as businesses sharing their intention to reshore, a further 32% of respondents from the manufacturing sector said they intended to invest in the UK over the next 12 months. This is good news for the Midlands economy, where manufacturing is a key driver for the local economy. The research shows the shifts are being driven by major changes in supply chain strategies, which have become more pressing as a result of the pandemic. Sixty- six percent of all respondents – and 98% of manufacturing respondents – say they plan to remodel their supply chains in the future. A move to ‘regional’ supply chains is on the agenda for 32% of all respondents and 40% of manufacturing respondents. Thirty percent of respondents intend to reduce their reliance on a single source country, a figure which rises to 42% among manufacturers. Simon O’Neill, Office Managing Partner at EY in the Midlands, says: “An updated industrial strategy should identify the UK’s support for manufacturing and supply chain onshoring, which has the potential to have a positive impact on Midlands-based manufacturers. COVID-19 may actually have stimulated investment activity in the manufacturing sector by accelerating technology adoption and supply chain redesign.” © Shutterstock /NicoElNino © Simon Hadley Photography Simon O’Neill 06-15.qxp_Layout 1 03/12/2020 10:13 Page 7www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 13 MANUFACTURING NEWS University of Nottingham supports Rolls-Royce project to accelerate future aerospace technologies University of Nottingham researchers have joined a new, three-year Rolls-Royce-led project – backed by the ATI Programme – to make future aerospace servicing technologies a reality. Under the REINSTATE project, engineers will work on 20 technologies that will reduce disruption for airlines and lessen their environmental impact by repairing components rather than scrapping them. University of Nottingham researchers will support the development of the following technologies: snake robots which travel inside jet engines to access complex parts, enabling repairs which are not possible with today’s tools; inspection and analysis tools to inspect parts buried deep within engines while they are being repaired; advanced automated repair technologies targeting parts which cannot currently be repaired, meaning they do not need to be scrapped. Miniature maintenance and inspection tools as well as new repair technologies will be used on Rolls-Royce existing engines such as the Trent XWB, while engineers will explore how to repair and maintain aerospace materials and components for future low-carbon engines, including electric technology. They will work on inspection and repair solutions for composite fan technology, which reduces the weight of a jet engine and will be used in Rolls-Royce’s next- generation engine design, UltraFan®. The new technologies have the potential to avoid substantial amounts of CO2 every year by: increasing the time engines are available to fly, avoiding unnecessary maintenance; reducing scrappage by repairing more components, rather than replacing them; reducing the movement of people and parts by using more digital inspection techniques and key-hole surgery for engines. Manufacturing demand slumps as activity remains weak Manufacturing output volumes in the three months to November fell at their slowest pace since September 2019, but the pipeline for activity – including output expectations and order books – weakened in October. That’s according to the latest CBI monthly Industrial Trends Survey. The survey of 277 manufacturers found that output volumes declined in 9 of 17 sub-sectors, with the headline drop in output driven by the aerospace manufacturing sub-sector. Total and export order books both weakened in October, remaining substantially weaker than their long-run averages. Looking ahead, firms anticipate that output will decline at a slightly faster pace over the next three months. This marks a worsening in expectations compared to last month’s survey. Manufacturers also expect output prices to fall over the next three months. Anna Leach, CBI Deputy Chief Economist, said: “Output volumes have declined at their slowest pace in over a year in our November survey. But order books have softened again as global demand has been hit by intensified lockdowns, and manufacturers have trimmed their expectations. “Firms have done all they can to adapt their operations to the current conditions, but pressure remains intense. The extension of government support – notably the Job Retention Scheme – is very welcome. “Key to stabilising trading conditions for manufacturing firms will be getting the pandemic under control through further investment in mass testing, ensuring a seamless test and trace system, and an efficient vaccine rollout.” Tom Crotty, Group Director at INEOS and Chair of the CBI Manufacturing Council, said: “These results show what we already know – that manufacturers up and down the country are continuing to face very difficult circumstances as we move into the winter. “Looking ahead, manufacturers have a crucial role to play in working with the government to build its green industrial revolution, improve productivity and level-up regions. Government support for the sector has therefore been – and will continue to be – vital in keeping firms going through the crisis.” © Shutterstock /Zapp2Photo © Shutterstock /Andrey Armyagov 06-15.qxp_Layout 1 03/12/2020 10:13 Page 8PROPERTY NEWS BAM starts work on three new East Midlands schools BAM Construction has commenced work on three new schools in the East Midlands, having been appointed to the schemes by the Department for Education under its national education framework, with a combined value of around £65 million. The three schools are Castle Mead Academy and Avanti Fields School, both in Leicester, plus Derby Cathedral School. They are being developed and delivered mainly via a ‘one BAM’ approach – combining several of BAM’s companies, and in particular, BAM Design. Derby Cathedral School is a 1,200-place 6FE School with 6th form located on the industrial railway siding adjacent to the Great Northern Road. The site is set out with a bespoke new three- storey, predominantly brick-built building with a separate sports block arranged around an entrance plaza. Internally the building develops the existing school’s five-house approach. Views of the Cathedral are captured within an ecclesiastical picture window set over two floors. Castle Mead Academy in Leicester is a 1,200-place 8FE new academy, adding to the successful run of schools for the Mead Educational Trust. Created on a brown-field site that was the former Kirby and West Dairy, the picturesque site is along the River Soar and of heritage interest, with Friars Mill on the other side of the river. This three-storey building was developed with enhanced, vertical standing-seam panel facades to complement the river elevation. To enhance the compact site extensive landscaping was developed to give variety to the student experience. Office development takes step forward in Castle Donington Clowes Developments’ Paul Shanley has achieved a detailed planning consent for a 10,000 sq ft two storey office block at EMDC, Castle Donington. The build will allow for either entire or split occupancy across the two floors at 5,000 sq ft each on either a Leasehold or freehold basis. The standalone plot of 0.6 acres sits directly opposite Redrow Homes’ head office with a design which will mirror the external aesthetics. With many businesses re-evaluating their future requirements for office space, this build could allow a business to down size to accommodate fewer staff working from the office environment on a day to day basis whilst still providing a facility for meetings, staff welfare, flexible working arrangements and convenience. The unit also presents an option for investors who are seeking an opportunity to be part of an already successful business park. With the 2m sq ft M&S distribution centre, Redrow homes Regional head office, Moran logistics and many more making EMDC their home, this building would make a quality investment for the smaller Pension Fund or SIPP. Paul Shanley, Director at Clowes Developments, said: “With excellent links to the UK’s main arterial motorway (M1), close proximity to the East Midlands Airport for commercial passenger and logistical flights, and a stone’s throw away from the newly developed East Midlands Parkway railway station, EMDC is an excellent spot for businesses looking to relocate. “This combined with our experience of building quality developments across the UK makes this particular build ideal for occupiers looking for a prestigious office and investors looking for a small pension fund opportunity.” With a planning consent obtained, the offices can be built for occupation by the end of 2021. 14 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk Modular housing company secures 227-home development site in Grantham Modular housing company ilke Homes has secured a 14.6-acre site in Grantham which will be transformed into the company’s largest scheme to date. The site, which is located on Dysart Road, benefits from detailed planning consent for 227 homes granted by South Keveston District Council. Enabling works have already been undertaken by the former landowner, Anderson Group. ilke Homes worked closely with the Anderson Group and CBRE to agree the deal which will help unlock the site and deliver much-needed family housing in Grantham. The deal with Anderson Group follows recent news that ilke Homes has been selected as a developer by Nottinghamshire County Council to regenerate a brownfield site in Arnold, Nottingham which will see the delivery of 140 factory-built homes. All of the homes will be manufactured offsite at ilke Homes’ 250,000 sq. ft factory in Knaresborough, North Yorkshire, before being delivered to Dysart Road. By manufacturing offsite, disruptions to the local community will be kept to a minimum and huge energy savings will also be achieved – both during the manufacturing stage and when the homes are operational. Precision- engineering techniques means that the homes being delivered will be some of the most energy-efficient in the country. 06-15.qxp_Layout 1 03/12/2020 10:13 Page 9PROPERTY NEWS Double deal at Leicestershire business park Specialist Property Consultant and Chartered Surveyor, Wells McFarlane has completed two transactions at Arkwright Hill Farm Business Park, Leicestershire, representing more than 12,000 sq ft industrial space. Multi-utility solutions specialist, Granemore Group has taken a 7,799 sq ft industrial unit, marking the company’s fifth UK office. Neil Henderson at Granemore Group explains the decision behind the move: “The business has been growing rapidly since we joined the UK’s ultrafast broadband initiative and began specialising in building fibre networks some six years ago. “Having recently been awarded a five year contract to provide circa 180,000 Leicestershire homes with ultrafast broadband, it was obvious additional local premises would be needed to fulfil this order. “Arkwright Hill Farm is easily accessible and the unit ticked all the boxes – separate warehouse and yard, office space, private parking and excellent security features. It will enable us to not only complete the contract but also continue our growth across the East Midlands.” The second transaction completed by Wells McFarlane will see vitamin supplement specialist, Lifeplan Products Ltd take a 4,507 sq ft unit. Chairman of Lifeplan Products Ltd, Melvyn Sadofsky said: “Our business has been growing so much that we required additional storage facilities nearby our existing premises. Arkwright Hill Farm sits just 4.5 miles north so presented the ideal solution.” Housebuilder acquires 16-acre land parcel at Nottinghamshire development Harworth Group plc, a regenerator of land and property for development and investment, has sold a 16-acre parcel of land to Barratt David Wilson (David Wilson Homes) at its Thoresby Vale development in Nottinghamshire at a price in line with its December 2019 book value. David Wilson Homes has made its first purchase of Harworth land to build 219 new homes, including 16 affordable homes, as part of Thoresby Vale’s second phase which forms part of the gateway into the wider site. The current proposals include providing a comprehensive range of house-types, from one bed apartments up to four bed family detached homes, a central greenspace with a children’s play area, footpath links and a link road to serve Thoresby Vale’s new primary school, which Harworth is scheduling for completion in time for the September 2023 school year. Thoresby Vale is the redevelopment of the 450-acre former Thoresby Colliery, the Midlands’ last deep mine to close in July 2015. Harworth secured a planning consent in October 2017 for the development of 800 homes, 250,000 sq ft of employment space, a retirement village, a new primary school and the restoration of the site’s 300-acre former spoil heap which sits adjacent to the Sherwood Forest. It has subsequently focused on preparing land, installing services and utilities and is close to completing the restoration of the spoil heap into a Country Park. Four nationwide operators have signed contracts to open new premises at a £30 million mixed-use scheme in Nottingham. Gedling Borough Council has granted planning permission for the creation of a 53,000 sq ft trade park and an industrial unit of 28,860 sq ft at Teal Park off the Colwick Loop Road in Netherfield. Warwick-based property company AC Lloyd Commercial and Nottingham and Birmingham-based Henry Davidson Developments (HDD) have joined forces to bring the development to the area. Deals have now been agreed with one of the UK’s private leading self- storage providers, Storage Giant, to open its 11th nationwide store on the prominent corner of Stoke Lane and Colwick Loop Road. Tool Station, Screwfix and Howdens have all been secured to move into new units of 4,000 sq ft, 5,000 sq ft and 6,000 sq ft respectively. Leeds-based Stainforth Construction has been awarded the building contract for the next phase which is due to start on-site imminently. Work is continuing at the 20-acre site to construct a state-of-the- art care home for people with residential and residential dementia care needs. The 66-bedroom development by LNT Care Developments which will include a cinema, garden room, library, hairdressing salon, coffee shop and tea shop is expected to open in spring next year. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 15 Four national businesses sign up to £30m mixed-use scheme 06-15.qxp_Layout 1 03/12/2020 10:14 Page 10Karen Bower-Brown, who heads up the firm’s Commercial Litigation Team, said that landlords had faced restrictions on taking action against tenants which have now been eased. “We are acting for a number of landlords of residential and commercial properties seeking to recover rent arrears and obtain possession of their properties. The stay on possession proceedings in relation to residential properties has ended. Courts are dealing with a significant backlog of cases, but with the widespread use of remote hearings, hopefully we will see Court proceedings move forward. While the ban on forfeiture of commercial premises remains for non-payment of rent, it is now possible to forfeit commercial leases for breach of covenant. While the Courts are behind in terms of processing paperwork relating to claims and fixing hearings, a number of which were vacated or adjourned in the early stages of the pandemic, we have also seen mediations taking place remotely. This is not a process many people had experience of prior to the Covid-19 outbreak, but we are finding that remote mediation can work just as successfully as it does face-to-face, potentially saving significant time and costs as compared to Court proceedings.” Whatever their size, type or sector, it is a period of uncertainty for businesses - the impact of the initial four month national lockdown is now becoming more measurable, notwithstanding new restrictions being imposed. The team at Sills & Betteridge are committed to proactively assisting clients to meet the challenges they face and their view is that businesses who respond and adapt quickly and practically to changes being imposed as a result of Covid-19 will be better placed to face the future. The firm has offices in 14 locations with over 300 partners and staff across the East Midlands, Lincolnshire and South Yorkshire. The firm’s Nottingham team have recently moved across town to 4 George Street, Hockley. For clients who prefer not to meet face to face, they are holding telephone or virtual meetings. James Conduit, a Partner in the firm’s Corporate Team explains how his team have been advising shareholders. “We’ve seen a real increase in the number of shareholder disputes in small and medium sized companies. For example, we recently dealt with a case where an employee/shareholder was not pulling their weight at a time when everyone else in the company was doing their utmost to navigate the storm caused by Covid. Fortunately, they had a shareholders’ agreement which provided a relatively straightforward solution, but where the parties don’t have a well drafted shareholders’ agreement often everyone loses out unless a resolution to the impasse can be found quickly.” Stephen Britton, the Head of the Firm’s Employment Team told us how employers are dealing with being unable to open for public health reasons, operating at a reduced capacity due to social distancing, and home-working. “Although redundancies are an inevitable consequence of the business response to the Covid 19 economic downturn many employers are also considering changes to terms and conditions that might avoid redundancies and/or better enable their businesses to survive in the Covid 19 era. The most obvious being pay reductions and other cost cutting measures in response to the loss of revenue. However, there are also many other contractual measures that employers might consider in response to the pandemic and the resulting economic downturn. Our Employment Team are assisting employers to relocate and/or redeploy existing staff, introduce flexible working arrangements and, in some cases, they are reducing working hours.” Why businesses are seeking legal advice as they respond to Covid-19 0800 542 4245 info@sillslegal.co.uk sillslegal.co.uk Following its recent ranking as a Top Scoring firm for Client Service in the East Midlands by The Legal 500, we interviewed the Corporate & Commercial team at Sills & Betteridge LLP to understand how they have been helping local business owners face the risks and opportunities caused by the pandemic as they re-strategise for the future. These have included businesses that are downsizing and need advice on redundancy programmes, companies experiencing disagreements at senior management level and property disputes - as well as companies who have experienced an unprecedented opportunity for growth and need to raise funding, relocate and restructure. 16.qxp_Layout 1 03/12/2020 10:16 Page 1There’s no two ways about, Derby is a county that has a long and proven pedigree for engineering and manufacturing. That reputation is only set to increase in the years to come, especially after the city’s £15 million nuclear research facility recently took an important step closer. In November, Cabinet approved plans to deliver the new facility with its partners Nuclear AMRC, University of Derby and IPD. The new Manufacturing Research Centre (MRC) at Infinity Park Derby is expected to create up to seventy high value jobs. It will be operated by the Nuclear Advanced Manufacturing Research Centre (Nuclear AMRC), part of the national High Value Manufacturing Catapult, which helps companies develop new techniques and processes to win work in the nuclear sector and tackle manufacturing challenges in automotive, rail, aerospace renewable energy and other high-value sectors. The decision has given Derby City Council and its partners the green light to progress plans for the £15 million initiative. The next stage will see a planning application submitted in February next year, with work on site expected to begin in August 2021. Upon completion, the facility will create a permanent base for Nuclear AMRC in the innovation Focus on www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 17 COMMERCIAL PROPERTY 18 Á The East Midlands is a region synonymous with excellence in innovation, so this month we’re highlighting the new builds and plans that prioritise research and development. 17-19.qxp_Layout 1 03/12/2020 10:17 Page 1City Centre and raise the profile of Infinity Park Derby. The move follows a successful pilot project run over the past 18 months and is expected to see an exciting new partnership formed to help businesses in the region boost employment through innovation. It will also become a base for the University of Derby’s Institute of Innovation in Sustainable Engineering, which has developed an international reputation for innovation in design, manufacturing, product lifecycle management and application of new and smart materials. Once built and occupied, the facility is expected to add £52 million to the local Derby economy (GVA) across a five-year period, supporting SMEs in the area to grow by creating opportunities for research and development. But the real benefits of the new centre lie in the growth and increased resilience of manufacturers in the Midland supply chain. Based on existing experience, it is anticipated that the facility will engage with one-hundred businesses leading to fifty medium term interventions and then around thirty-five significant collaborations over the next five years. The new facility has been in principle allocated just over £9 million of funding by the D2N2 Local Enterprise Partnership, including £6.85 million from its Getting Building Fund and £2.2 million from its Growing Places Fund. The Getting Building Fund is investing in shovel-ready infrastructure projects to create jobs and support economic recovery across the country. Moving over to neighbouring Nottingham, where building work has recently completed on the College’s new £58.5 million City Hub campus. Builders and main contractors, Wates, have now formally handed over the building and work has begun to relocate more than 2,000 students and 200 staff into the building. The handover marks over two years of build works, and many more on planning, to re-purpose the former brownfield site next to the Broadmarsh. The £58.5 million state-of-the-art City Hub will provide new learning and community facilities and future employment opportunities to thousands. With the new building fully functional and operational by the New Year, the College will say goodbye to its Clarendon and Maid Marian Way campuses and say hello to its new City Hub, along with a newly renovated Adams Building. The City Hub development is a partnership effort, receiving a £30 million grant from the D2N2 Local Enterprise Partnership and additional funding support from the City Council. Sajeeda Rose, Chief Executive of the D2N2 LEP, said: “The Nottingham City Hub will change the face of skills provision in our area, playing a key part in the pathway towards rebuilding and growing our economy by creating career paths and providing our businesses with the talent they need to thrive and grow.” Lastly this issue, we take a look at Loughborough, where a new £22 million office building has reached completion at the Loughborough University Science and Enterprise Park (LUSEP). Designed by architectural practice Stephen George + Partners (SGP) and funded by Leicestershire County Council, the 109,000 square foot office development is to become the new HQ for software developer The Access Group. At the time of signing the contracts, it was the largest single let office deal in the county this century. The new office building is the first development to complete in the Enterprise Zone at LUSEP, which aims to promote economic growth focused on the University and create 2-3,000 new jobs by providing high-quality space to 18 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk COMMERCIAL PROPERTY 17-19.qxp_Layout 1 03/12/2020 10:17 Page 2Good things ahead for the office market? Another lockdown over with and, with further news of vaccines coming to the fore, there is certainly good reason for a positive outlook in 2021 and especially for most of the office market. 2020 has taught a number of larger organisations in how they can operate quite efficiently in smaller offices, with staff working from home and – as I mentioned in my previous article – some major financial companies already identified a significant increase in productivity. 2020 has brought a new attitude to working environments and is already showing a greater shift in companies relocating and downsizing their office accommodation. The area that this will particular benefit is the small to medium office market and the more cost-effective office space around the country. We are currently marketing the Genesis centre in Alfreton, Derbyshire and Langton Suites in Pinxton, Nottinghamshire. There, we have already noticed a spike in office enquiries, lining up for the new year. This is not limited, however. During October/November office enquiries increased by 35% and despite lockdowns, we still completed 3 lettings during the period. The advantage for office space in these type of centres is they offer a flexible and can be a more cost effective approach for businesses and the smaller space allows companies to have greater flexibility with their staff. The office market for the East Midlands should be concentrating on the office space below 1,500 square feet, with more flexible space available and being refurbished and with the potential return to normality early in the New Year, we can see lots of changes. If you need help in office relocation, advice on your exit costs, reducing dilapidations liabilities or even entering new premises and saving money on future exit costs, please do not hesitate to contact us at daniel@cpa-a.co.uk or k.brown@cpa-a.co.uk CPA & Associates and Broadwalk Property Management would like to take this opportunity to wish you all a happy and healthy new year and look forward to working with you all in 2021. We are working throughout lockdown and if you need any help or advice, please contact me daniel@cpa-a.co.uk © Shutterstock /ImageFlow www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 19 COMMERCIAL PROPERTY attract new companies. The development has been made possible thanks to a partnership between Leicestershire County Council and Loughborough University. Investment in the new office space by the County Council will see the creation of over 500 new jobs and £1.6 million a year for vital frontline county council services. “LUSEP is a flagship scheme which is a great example of how the County Council’s Corporate Asset Investment Fund generates money which it can then plough into front-line services such as maintaining our roads and supporting vulnerable people,” said Jon Bennett, Head of Strategic Property Services at Leicestershire County Council. “It is an ambitious project that not only showcases the collaborative partnership between the County Council and Loughborough University, but the new office HQ will also be a great asset to the Science and Enterprise Park, help to create hundreds of jobs and boost the economy.” As ever, this feature barely scrapes the surface of the innovative developments that continue to keep our region ahead of the rest. So be sure to regularly check in with the property pages on our website (www.eastmidlandsbusinesslink.co.uk). Educational resource provider’s new Hucknall HQ reaches completion The new 195,644 sq ft national HQ for educational resource provider, RM Resources, at Harrier Park, Hucknall has completed, with partners from urban regenerator, Muse Developments, Rolls-Royce and contractor GMI Construction, joining together safely to celebrate the milestone. RM Resources is part of RM plc, a supplier of technology and resources to the education sector, supporting schools, teachers and pupils across the globe – from pre-school to higher education – including examination boards, central governments and other professional institutions. The 70-acre, Harrier Park, is part of a long-term joint venture between Rolls-Royce and urban regeneration specialist, Muse Developments, that will bring nearly one million sq ft of employment space, alongside hundreds of new homes and community facilities built on surplus land alongside the Rolls-Royce Aerospace supply chain plant off Watnall Road. Dan Needham, Development Director at Muse Developments, said: “We’re delighted to hand over the keys to one of our latest distribution hubs to RM Resources, and we hope they’re happy in their new home.” 17-19.qxp_Layout 1 03/12/2020 10:17 Page 3Next >