2023 Business Predictions: Andrew Macmillan, partner and office head of Gateley Nottingham
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Andrew Macmillan, partner and office head of Gateley Nottingham.
The predicted decline in the UK economy for 2023/2024 will mean minimal growth. This will lead to companies restructuring to ensure they remain cost effective, while many may enter administration, leading to redundancies.
If instability continues it will become harder for businesses to make decisions on investments and they will hold off until the economy improves.
Unless a solution is reached in Ukraine, fuel and energy costs will unlikely improve. This will place many businesses, particularly those in hospitality and retail, under pressure and unable to survive, leading to job losses and having to close. Many retailers are moving completely online, which is more bad news for the high street.
Remote working is continuing post-pandemic. Employees have got used to the flexibility hybrid working brings and some businesses may consider a purely remote workforce, removing the need for expensive office space rent, rates and utilities. This is not good news for town and city centres.
Another knock-on effect is technology developments and an increase in usage of AI. Many businesses will develop solutions to enable automation of manual and routine workloads. Additionally, businesses would be advised to ensure they are familiar with the latest GDPR regulations and that they have good protection against cyber-attacks.
Last but not least, the UK labour market is likely to remain very tight, resulting in low employment and rising job losses. Many companies are implementing freezes on recruitment and the minimum wage increase will impact on the potential for pay rises and bonuses for employees.
Green light for Colwick trade counter, urban logistics and industrial scheme
Developer Chancerygate’s plans to speculatively build 98,000 sq ft of trade counter, urban logistics and industrial space in Colwick, Nottingham, have been approved.
Called Colwick Gateway, the proposed scheme will be located on a 6.35-acre site in Colwick Industrial Estate and comprise 13 Grade A leasehold units ranging from 3,500 sq ft to 27,200 sq ft, and the erection of a building for use as a building merchants. The projected gross development value is around £25m.
The site, which was formerly a major fuel distribution centre for Total Petroleum and has been unused for a number of years, is located off Colwick Loop Road approximately five miles east of Nottingham city centre.
Chancerygate development manager, Mark Garrity, who is based in the company’s Birmingham office, previously said: “Our proposed plans at Colwick aim to satisfy the high demand for Grade A sustainable trade counter, urban logistics and industrial accommodation in the Nottingham area.
“The site is situated in a prime industrial area of Nottingham, meaning it is best placed to serve businesses operating within the city as well as across the wider East Midlands region.
“The proposed development will help support both the local and regional economy to stimulate further investment and job creation.”
Agents for Colwick Gateway are FHP and Gerald Eve.
Things to consider before expanding your business into Leicester
The Midlands have a lot of potential for running a business. You have major cities such as Birmingham, Nottingham, Wolverhampton and, of course, Leicester. Leicester may not be as big as Birmingham, but it offers a great chance to expand your business into a new area without busting your budget. However, you need to consider a few things before doing this, which we will explore below.
Where Will You Be Based?
One of the first things you should think about when expanding into Leicester is where exactly you will be based in Leicester. There are many lucrative opportunities within Leicester. Your business may suit being in the city centre, around Highcross, or it may be that a surrounding outside village could be better.
Areas such as Hinckley, Narborough and Oadby have the potential for business expansion. You may need to work hard to get your business’s name out there. This could involve you engaging in marketing copy. Overall, you need to ensure the place you are expanding to is aware of who you are and that they are even interested.
Is There Demand For Your Services?
Before bringing your new business over to the heights of Leicester, you should ensure that there is suitable demand for your services. This means you need to do some key market research to find out if there is anyone offering what you do or if it is something that people would be interested in if not.
You can conduct various surveys across the Leicester area so that you can gather as much information as possible. The more information you have regarding this, the better informed you will be to decide and plan forward.
You can use a polling platform such as Vevox that allows you to receive instant engagement and feedback. You can also use tools that allow you to create quizzes and run Q&A sessions. This can give you more insight into your customer base. This could also be done to your team, allowing you to find out what they think, and help prep everyone for the big expansion.
Will You Need To Hire Locally?
Once you’re aware of the demand in Leicester, then you will need to think about who you will need to employ potentially. Expanding your business to a new area such as Leicester will mean that you need local help.
While you may be able to bring your employees over from your current store or location, it will be in your best interest to hire locals. This will be more convenient and allow you to gain more useful and relevant information from potential local experts.
How Will You Source Funding?
It will likely be costly for you to expand your business into a new area such as Leicester. As such, you will need to work hard to source funding. This funding could come from you directly, or you could be looking for angel investors. Angel investors have money that they are looking to invest in growth opportunities and are a vital source of funding for many businesses.
You should also consider geographical sources of funding. As you will be looking to expand into Leicester, you could find business grants specific to this area. If you don’t look around and ask, then you won’t be able to find out. You may also partner with pre-existing businesses in Leicester that can help you gain a foothold.
Streets covers the closure of the Certificates of Tax Deposit scheme, the launch of Entrepreneurs Connect, and more in latest news bulletin
In its latest news bulletin, Streets Chartered Accountants covers the closure of the Certificates of Tax Deposit scheme, the benefits of an optimistic approach to business in 2023, the launch of the Entrepreneurs Connect initiative, and more.
Closure of Certificates of Tax Deposit scheme
The Certificates of Tax Deposit scheme had been available for many years. Under the scheme, a taxpayer could purchase a certificate from HMRC and subsequently use the certificate either to pay a tax liability or obtain a refund. They were often used where a liability was in dispute with HMRC, and a certificate was purchased to both put funds in place to pay the liability should HMRC win the dispute and also to mitigate the interest charge on the eventual payment of the liability…
The benefits of a more optimistic approach to business in 2023
It is widely recognised and reported that business confidence declined during 2022, with the start of 2023 perhaps seeing little in the way of renewed confidence. The continued conflict in Ukraine, the continued aftershock of Brexit and the rising costs of living impact in one way or another on business optimism. Perhaps then business leaders, more than ever, need to focus on the importance of optimism as a state of mind, and the impact it has on the realisation of strategy, performance and success…
Entrepreneurs Connect
Streets are delighted to invite all entrepreneurs to the launch of Entrepreneurs Connect, an initiative that we have co-founded with the University of Lincoln’s Research & Enterprise Department. This new network aims to provide a creative and interactive platform, in the form of dynamic quarterly events and workshops, to bring together Greater Lincolnshire’s entrepreneurs. Like-minded, forward-thinking business founders will be able to exchange knowledge and create a strong and inclusive network of enterprising minds…
Midlands Family Business Awards Launch 2023
Streets are delighted to continue to sponsor the Midlands Family Business Awards in 2023. The awards team have made some exciting changes, but the aim remains the same — to celebrate and shine a light on our region’s great family businesses. Streets would like to extend an invitation to members of family businesses to join them for lunch and be the first to find out about the changes that have been made and the 10 exciting Award categories for this year. The awards team will also detail the key dates and explain the 2023 entry and judging process…
SmartMoney – January/February 2023
SmartMoney is the bi-monthly magazine from Streets Financial Consulting plc, its independent financial planning arm, full of news and helpful information on personal financial planning…
Government must sort out EU trading relations amid Brexit problems for businesses, says Chamber
The East Midlands Chamber has called on Government to help firms trade more freely with overseas markets after research highlighted the Brexit trade deal is not delivering for them.
Ahead of the third anniversary of the UK formally leaving the European Union later this month, East Midlands Chamber wants to see red tape cut and barriers to trade with EU countries reduced, along with enhanced support for companies looking to enter new global markets.
A study by the British Chambers of Commerce, of which East Midlands Chamber is a member, found more than three-quarters (77%) of UK firms affected by the Trade and Co-operation Agreement (TCA) signed in December 2020 say it is not helping them to increase sales or grow their business.
More than half (56%) of the 1,168 business leaders surveyed said they have faced difficulties adapting to the new rules for trading goods, while four in five (80%) had reported increased costs of importing since January 2022.
As a result, 53% had seen their sales margins decrease, while 70% of manufacturers had experienced shortages of goods and services.
‘Honest dialogue’ needed between UK and EU leaders
East Midlands Chamber Chief Executive Scott Knowles said: “As a region of manufacturers, the East Midlands produces goods that are distributed around the world in industries ranging from automotive and aerospace to food and medical. “As we have stated in our Business Manifesto for Growth, there is a big opportunity to back us further as a Centre of Trading Excellence – a region that makes things, moving them and innovating in how we do this – to grow both the local and national economy. But the gridlock many firms have experienced at borders is having a significantly detrimental impact on trading relationships in Europe. “Businesses want our political leaders to move on from the debates of the past and find ways to trade more freely. This means having an honest dialogue with our EU counterparts about how we can improve our trading relationship. “We need to cut red tape and reduce barriers to trade with our neighbouring markets, but also make it easier to export to non-EU countries. “There should be enhanced financial support for businesses looking to enter new overseas markets, from initial exploration through to establishment. This should include funding an expanded trade mission and trade fairs programme, specifically targeted at SMEs and those looking to export for the first time. “With a recession looming, we must remove the shackles holding back our exporters so they can play their part in the UK’s economic recovery. If we don’t do this now then the long-term competitiveness of the UK could be seriously damaged.”Five recommendations on improving UK-EU trade
The British Chambers of Commerce has published the TCA Two Years On report, which sets out 24 recommendations to increase UK-EU trade. Its top five proposals for quick action are:- Create a supplementary deal with the EU that either eliminates or reduces the complexity of exporting food for SMEs
- Establish a supplementary deal, like Norway’s, that exempts smaller firms from the requirement to have a fiscal representative for VAT in the EU
- Allow CE-marked goods and components to continue to be used in Great Britain after 2024
- Make side deals with the EU and member states to allow UK firms to travel for longer and work in Europe
- Reach an agreement on the future of the protocol on Ireland/Northern Ireland with the European Commission in the early months of 2023, to stabilise our trading relationship.
Interior design consultancy appointed to design and refurbish Mortgage Advice Bureau HQ
Mortgage Advice Bureau (MAB), the mortgage intermediary brand, has appointed interior design consultancy Office Principles North to design and refurbish its headquarters in Derby.
More than 13,000 sq ft of office space will be redeveloped at the three storey Capital House in Pride Place, creating a more modernised, eco-friendly workplace to accommodate a variety of working needs.
The project will see the complete strip out of the existing building back to shell, paving the way for a new collaborative working environment that will cater for hybrid working and deliver a range of work settings for up to 300 employees.
Office Principles North will create a series of open plan workplace ‘neighbourhoods’, complemented by new meeting rooms, breakout spaces and a large ground floor space for socialising and town hall gatherings. These bespoke working environments will offer colleagues flexibility in how they work, enabling them to thrive and perform at their very best.
Employees will be able to choose from a range of desk and seating options, with fixed desking and agile seating available across a number of collaborative areas and spaces. Access to the latest AV technology to support video conferencing will also be available.
Aesthetically, the workplace will be marked by high quality finishes and a neutral palette, with exposed ceilings, acoustic baffles and crittall glazing, as well as feature pendant lighting. The space will also promote employee wellbeing through an extensive use of planting, as well as a dedicated area for prayer, nursing parents or meditation.
Visitors will be greeted by an enhanced arrival experience, including a new main entrance to the building and a refurbished façade, as well as LED lighting, timber cladding and new external signage.Office Principles North has used expert research techniques to inform the new modern design and maximise the available office space.Gary Tailby, joint Managing Director of Office Principles North, said: “Many businesses are facing the challenge of delivering workplaces that are capable of retaining and attracting staff post-Covid.“MAB recognises that its people want to work in a modern office environment that offers a greater choice in how and where they work and socialise, and provides a more attractive alternative to working from home. We’re proud to be delivering a headquarters building that makes the very best use of available space and allows people to maximise their day.”Claire Smith, people and culture director, MAB, said: “Diversity, equality and inclusion remain a significant focus for MAB, and have been fully incorporated within our state-of-the-art office refurbishment. We understand that all our employees have different needs in terms of their wellbeing and how they work, which is why the new office includes a variety of spaces such as focus areas, pods, and a dedicated wellness room.
“We’re delighted with the design that Office Principles North has created to completely transform and optimise the space, and we look forward to seeing our colleagues thrive, connect and collaborate in their new office.”
The new workplace is expected to be operational in Q1 2023.
East Midlands Chamber launches Generation Next Awards 2023 to recognise region’s young talent
The best of young business talent across the East Midlands will once again be celebrated at the Generation Next Awards – as a refreshed look is revealed for 2023.
Launching yesterday (11 January), the awards are the showpiece programme of the Generation Next network for young professionals and entrepreneurs aged between 18 and 35, which is run by East Midlands Chamber in conjunction with headline partner the University of Derby.
It features 11 categories, ranging from a Start-up Award and Customer Service Award through to Innovation and Technology Award and the Generation Next Future Leader.
The programme includes a new addition that recognises “rising stars” who show ongoing growth and development, as well as refreshed guidelines for prizes recognising outstanding contributions in diversity and inclusion, creativity, corporate social responsibility and sustainability.
The application process of each category award has also been streamlined for a “one form fits all” method involving a reduced number of questions.
Lucy Robinson, East Midlands Chamber’s director of resources and Generation Next lead, said: “The Generation Next Awards are a celebration of the amazing young talent within the East Midlands, and our diverse programme recognises the next generation of business who make outstanding contributions to their communities.
“We want to encourage young professionals from across the region to tell their story and celebrate their successes. There is an award to suit everyone at each stage of their career.”
Last July, Generation Next held its first in-person awards celebration at Bustler Market in Derby, and recognised young talent such as apprentice Ruby Birks, who works for South Normanton-based marketing agency Purpose Media, and the three entrepreneurs behind Derby-based digital marketing and web development agency Alphageek.
It was an awards ceremony with a twist, featuring street food, a live DJ and arcade games. More than 220 people attended, marking it as a new milestone in the Chamber’s events calendar. This year’s ceremony will be held on 13 July, and the venue will be confirmed in the coming months.
Entries are open for the 2023 awards from now until Monday 6 March. They can be submitted either by individuals within the 18 to 35 age bracket or on their behalf by a colleague or line manager.
Energy support package leaves UK steelmakers at a financial disadvantage, says trade association
The Government’s Energy Bill Discount Scheme offers less for UK steel producers than for competitor countries, according to Gareth Stace, Director General of UK Steel.
Although welcoming the scheme for its certainty and stability, Stace points out that there are concerns that the newly-announced support falls short of that of competitor countries, including Germany, since it significantly narrows the help Government will provide, with a maximum discount of £89/MWh, which stops delivering once those prices go beyond a ceiling of £274/MWh.
He said: “The Government is betting on a calm and stable 2023 energy market, in a climate of unstable global markets, with the scheme no longer protecting against extremely volatile prices. The German Government guarantees an electricity price of €130/MWh for the whole of 2023, ensuring German industry can continue to operate competitively within Europe and beyond. In contrast, the reformed EBDS provides a discount for electricity prices above £185/MWh, leaving UK steel producers paying an estimated 63% more for power than German steel producers this year. This situation will maintain a long-standing competitive disadvantage for UK producers, resulting in higher production costs and a reduced ability to compete this year.
“Given the disparity in relief provided in the UK and competitor countries, it is essential that the Government now delivers on its Energy Security Strategy and addresses the outstanding disproportionate costs UK steel producers face in electricity bills, including high renewable levies and network costs. Years of paying more for these elements of electricity costs have placed UK industry at a competitive disadvantage against its European and global competitors.
“Steel demand and prices are falling in the UK and across Europe, while key input costs remain persistently high, leading to reduced production, shrinking market share, and increased imports for the UK. Whilst we are grateful and pleased to see that Government has acted to extend the scheme, there remains a vital gap in that delivery. We urge Government to take the next step and look to match what is provided in Germany for the most energy intensive industries.”
Housebuilder acquires land for third phase of development in Newark
Homebuilder Bellway has acquired more land to enable the start of work on phase three of its The Foresters at Middlebeck development in Newark on Trent.
The company exchanged contracts subject to planning in January with Urban and Civic – the Master Developer of the wider Middlebeck project – and detailed plans for the site were approved by Newark and Sherwood District Council in September.
The third phase will include 104 two, three and four-bedroom houses on land to the north of Flaxley Lane, including four affordable properties for local people.
The first properties are expected to be released for sale this month.
Tim Pyne, senior land manager at Bellway East Midlands, said: “Our land, planning and technical teams have worked hard on this project and with the land acquired and planning permission in place we are now able to take this development to the next stage.
“The Foresters at Middlebeck has been one of the division’s most popular schemes and we are expecting the next phase to be equally sought after. Its location, with easy links to Newark town centre and the A1 and A46, makes it a site that works for the way people want to live, in a setting that has the infrastructure they need.
“The phased acquisition allows for the first 57 dwellings across the scheme to be developed with the balance anticipated later this year.
“This deal, even with the current UK economy, demonstrates the continued strength of demand for new housing and highlights Bellway’s commitment by getting the deal done.”
The development is part of a much wider consortium project that is ultimately planned to deliver approximately 3,000 homes on the southern edge of Newark on Trent.
Bellway East Midlands has been working at The Foresters at Middlebeck since February 2018, creating 138 properties within the first two phases.
Locals celebrate London win!
One of Lincoln’s best-loved venues has been honoured with national recognition at the ‘Oscars’ of the events and venues industry.
The Blue Room, on Union Road in Lincoln, was presented with the Bronze award for the UK’s Best Unusual Venue at the M&IT Awards in London. To celebrate the achievement, a special Wedding and Events Showcase will be held at The Blue Room on 26th February to give visitors the chance to see what makes the venue so special.
The Blue Room is housed in the 200-year-old, Grade II listed Lawn building, set in lavish grounds and is a unique venue which was originally purpose-built as a Victorian ballroom. It has been lovingly refurbished and boasts amazing period features including an eye-catching stained-glass, arched window for a stunning backdrop to any occasion.
Karis Hildred, Events Manager at The Lawn said: “We’re absolutely delighted that our special and unique venue has received such national recognition. I’m really looking forward to welcoming visitors to our special showcase event so they can see what makes our venue and services award-winning.
“We’ll treat our guests to delicious canapes, prosecco and offer advice on planning the perfect wedding or event. They’ll also get to meet some of our trusted experts who arrange every detail for all occasions, including room dressing, lighting, menus and more. I’ll be pleased to arrange personal tours of our building too.
“The Blue Room was up against stiff competition and some of the biggest names in the industry. The team and I are thrilled.
“The Wedding & Event showcase on 26th February is the perfect opportunity to discover more about our range of services and spaces. I’m proud of my team who work tirelessly to ensure that every event and performance we host, from weddings and business functions, to sell-out theatrical shows are uniquely memorable, delivered seamlessly so our guests come back time and again.”
The Blue Room is just one of the spaces at The Lawn building which also offers office space rental, wedding ceremonies, life celebrations and business functions. The Wedding & Event Showcase on 26th February from 10am to 3pm is set to be the perfect opportunity for anyone planning a wedding, event or business function. Places can be booked now by registering here: Wedding & Events Showcase | The Lawn (lawnlincoln.com)
Step forward for Ashbourne relief road proposals
Proposals to build a relief road in Ashbourne have taken a step forward after Derbyshire County Council submitted a pre-planning application for the development.
The proposals have been put together following a public consultation to choose a preferred route for the road, designed to help tackle congestion in the town
This stage of the project is to have an initial discussion with the council’s planning department about the feasibility of building a road along the preferred route stretching from the A52 Mayfield Road to the A515 Buxton Road close to Sandybrook Hall. The process, which is taking place along with initial ecology surveys in the area around the preferred route, will also highlight any issues which may need to be overcome before a full planning application can be submitted.
Councillor Carolyn Renwick, Cabinet Member for Infrastructure and Environment, said: “Traffic surveys found up to 12,000 vehicles using main routes in Ashbourne each day with almost half of the traffic using the A515 found to be through traffic, with somewhere other than Ashbourne as its end destination.
“We know residents and businesses in Ashbourne have been calling for a new road for a long time to ease traffic congestion and delays which independent consultants estimated to be worth £1.5 million in 2017.
“I’m pleased this project is progressing to the next stage to show exactly what issues we need to overcome before we can submit a planning application, giving us a more accurate estimate of costs so that options for funding can be investigated in the future.”
The proposals are for a single carriageway road with separate provision for pedestrians and cyclists and a further public consultation about the plans would need to be carried out in the run-up to submitting the planning application.
Midlands Engine Investment Fund has helped create more than 2,370 jobs in the region, fuelling growth and innovation
- Two in five backed businesses secured follow-on funding estimated to reach around £65m to fuel further growth
- Three quarters (74%) launched new products or services contributing to a £73m regional boost from sales
- 59% of businesses supported by the Midlands Engine Investment Fund say it helped them avoid closure in challenging time
- MEIF has helped create more than 2,370 jobs in the region since 2017
Corby warehouse sold
Eddisons has sold a 96,000 sq ft industrial / warehouse unit in Corby – 5 Macadam Road.
Offers were invited for the freehold investment in the region of £7.25m.
The building has been purchased on a sale and leaseback from the owner occupier, by a business investor seeking to diversify their income.
The vendor, a furniture wholesaler, has signed a new 10-year lease at £540,000 per annum.
Located on Earlstrees Industrial Estate, an established employment district in the heart of Corby, the premises comprises a high bay warehouse, two showrooms, recently refurbished office accommodation and loading areas.
Eddisons agent Simon Parsons said: “This warehouse unit offered an excellent opportunity for potential investors looking to invest into both a strong commercial property market and a well-established business.
“Eddisons provided investment advice and whilst the market was slowing, secured good interest, which resulted in the sale of the property.”
Eddisons acted on behalf of the owner occupier.
2023 Business Predictions: Grace Golden, head of client growth at Purpose Media
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Grace Golden, head of client growth at full service digital marketing agency Purpose Media.
Without being too pessimistic, as I really hope the hype turns out to be more painful than the bite, I think most businesses will be addressing the threat of recession and reviewing their strategic plans.
As has been proven from past recessions, and indeed during Covid, those that treated their marketing budget as an investment rather than an overhead reaped the benefits – as long as the activity is focused and delivers a return on investment.
Bricks and mortar businesses that are proactive in implementing a digital marketing strategy will continue to lead their competitors, and I see no let-up in the demand for expertise in areas such as website content and SEO, social media, email marketing, video and PR as these are highly targeted activities that can be tracked and tweaked to get the desired results.
As businesses start to reach wider audiences using digital marketing strategies, they shouldn’t dismiss the opportunity for international trading. For those that take up the support and funding available for UK businesses trading overseas they can gain exposure, growth and diversify their business.
By following this constructive attitude these businesses should be able to thrive and not just survive, but I also think this approach sends positive vibes to clients and supply chain partners who will remain confident in their ability to continue to supply products and services.
So, whilst I think things will remain highly volatile, especially for high street businesses and larger businesses that might find it hard to react quickly, perhaps due to restrictive property leases etc, I think as long as most UK businesses continue to market themselves effectively they should be able to make the necessary adjustments to overheads simply because they can be more agile.
Finally, I think the energy crisis will continue to hit hard and we will see many businesses switch towards renewable energy and recycling to save the environment and reduce costs.
The benefits of a more optimistic approach to business in 2023: By James Pinchbeck, partner at Streets Chartered Accountants
James Pinchbeck, partner at Streets Chartered Accountants, considers the importance of optimism for businesses.
It is widely recognised and reported that business confidence declined during 2022, with the start of 2023 perhaps seeing little in the way of renewed confidence. The continued conflict in Ukraine, the continued aftershock of Brexit and the rising costs of living impact in one way or another on business optimism.
Perhaps then business leaders, more than ever, need to focus on the importance of optimism as a state of mind, and the impact it has on the realisation of strategy, performance and success. Whilst not the most typical starting point for strategic planning or a key management approach, thought ought to be given to the impact of understanding what a sense of optimism has on your business and not least your workforce and should not be underestimated.
In essence optimism is an inclination to hopefulness and confidence, and the future success of something or something being better.
All this probably sounds rather intangible, something difficult to really grasp or manage. Where would one start in terms of being optimistic and creating a sense of optimism?
Well, it might be that you take time out to ascertain the level of optimism for and within your business. Such an approach should at least enable you to benchmark where you are on the optimism scale and help you to identify areas that you may need to address. This may include consideration of the overall future success and prospects for the business as well as the roles of individuals. It is not always the case that the two are necessarily aligned. For example, whilst someone might feel optimistic about the prospects for the business, they may feel less optimistic about their personal role, and vice versa. Ideally both need to be favourably aligned.
With an understanding and appreciation of your organisation’s sense of optimism you can then look to working on those areas that will improve or enhance the optimism. This could include a number of things such as a more positive leadership style, clearer and better defined and better communicated business objectives, the provision of new working practices, staff training, addressing hard to fill roles, job security, career prospects and progression for individual staff. The key though will be to ensure a level of optimism that does not drop, in fact if anything it increases. There will therefore be a need to monitor performance and adapt and react to changing circumstances. Undoubtedly this will draw on your own resolve, energy and motivation.
To finish on a level of optimism, the benefits of creating a heightened level of optimism for and within your business can contribute to improved productivity, an enhanced ability to deal with challenges and great resilience and wellbeing, along with improved staff retention and recruitment. Who therefore wouldn’t make 2023 the year to focus on improving the level of optimism within their organisation?
See this piece in the January issue of East Midlands Business Link Magazine here.
Sentiment recovers, but outlook remains gloomy for financial services firms
Sentiment among financial services recovered in the three months to December (+10% from -55% in September), despite gloomy expectations for activity in the quarter ahead, according to the latest CBI/PwC Financial Services Survey.
The quarterly survey, conducted between 22 November and 9 December 2022 with 95 respondents, found that business volumes grew at a solid rate in the quarter to December (+24% from +31% in September). Employment growth recovered to a firm pace (+23% from -8% in September), while profitability was flat (-1% from +24% in September).
Looking ahead to the next three months, FS firms expect business volumes (-28%) and profitability (-26%) to decline. Headcount is anticipated to be unchanged (0%).
The outlook for investment over the next year is mixed. While IT investment is set to grow over the next 12 months (compared to the previous 12), capital expenditures on land & buildings and vehicles, plant & machinery are anticipated to decline.
Uncertainty about demand was the key factor weighing on investment intentions in the year ahead (34% of firms from 17% in September).
Over 2023, the key trends driving disruption for firms are expected to be changes in regulation (85% of firms), high inflation (79%), and accelerations in digital technologies (70%). With the cost-of-living crisis spilling into the new year, the survey found that over two-thirds (70%) of financial service firms have initiatives to support consumer and/or commercial clients with inflation.
Rain Newton-Smith, CBI chief economist, said: “It’s good to see optimism return to financial services in Q4. Unfortunately, this may prove to be short-lived as FS firms’ predictions look bleaker going forward, with business volumes and profitability set to fall over the next quarter.
“All eyes are now on the upcoming Spring Budget to see if the Chancellor can build on the stability provided by the Autumn Statement and deliver a concrete plan for growth.
“A fit and firing financial services sector is vital to the UK’s long-term economic success – that’s why we need business and government working together to safeguard the industry’s global competitiveness.”
Isabelle Jenkins, leader of Financial Services at PwC UK, said: “Despite the uptick in sentiment, it seems that this quarter’s results reflect the gloomy forecasts we’ve been seeing, with firms mindful of the ongoing impact of the cost-of-living crisis especially as our research showed that the total amount of unsecured debt now exceeds £16,000 per household.
“However, the Edinburgh Reforms announcement has brought increased clarity for the sector on the UK’s regulatory agenda and the Government’s focus on green finance, technology and removing unnecessary regulatory burdens will no doubt be welcomed.
“As we go into 2023 following a period of relative stability for the industry, the focus will now be on ensuring that while economic conditions remain challenging, firms will continue to support both customers and employees through what may be another difficult year.”
Key findings:
- Sentiment increased in the quarter to December (+10%) following a quick decline last quarter (-55% in September).
- Business volumes grew at a solid rate in the quarter to December (+24% from +31% in September). However, financial service firms expect volumes to decline next quarter (-28%).
- Average spreads were broadly unchanged in the three months to December (+2% from -31% in September) but are expected to fall again next quarter (-20%).
- The value of non-performing loans was flat for the second quarter in a row (0% from 0% in September) but is anticipated to grow next quarter (+23%).
- Profitability was broadly unchanged in the quarter to December (-1% from +24% in September). Firms expect profitability to decline in the next three months (-26%).
- Employment growth recovered following last quarter’s decline (+23% from -8% in September). Numbers employed are anticipated to be unchanged next quarter (0%).
- Firms expect to increase investment in IT over the next 12 months (compared to the last 12), while capital expenditure on land & buildings and vehicles, plant & machinery is anticipated to decline.
- The most common factor likely to limit investment next year is uncertainty about demand (34% from 17% in September).
Disruption
The key trends driving disruption for FS firms over the coming year are changes in regulation (85% of companies), high inflation (79%), and accelerations in digital technologies (70%).
Firms are responding to disruption from employing new technology or adapting tech capabilities within their business (89% of companies), upskilling the existing workforce (84%), and reducing costs (60%).
The most common priorities for future business strategy and transformation plans are achieving operational resilience (86% of companies), upskilling or reskilling the workforce (78%), and advances in technology and business transformation (69%).
Technology
Almost 8 in 10 (79%) financial service firms are in the “transition” stage (i.e. the process of modernising technology and IT architecture) of realising the benefits made from investment in IT and technology.
65% of FS firms think the most value to be gained from advances in AI and analytics is through understanding customers and their behaviours/preferences (65%).
92% of FS firms think customer experience is one of the areas most likely to be impacted by automation, standardisation, and FinTech.
Cyber security
Firms expect to increase investment in cyber security in the next 12 months (compared to the previous 12) to a greater degree than last quarter (+46% from +5% in September).
The most common priorities for improving cyber resilience and reducing tech risk are placing a greater focus on how to respond to new/emerging threats (85% of firms) and improving the reporting and mitigation of a cyber risk (75%).
Upskilling/reskilling
Firms’ key workforce priorities for the year ahead include supporting employee financial wellbeing (59% of firms), maintaining/achieving high levels of employee engagement (55%), and reskilling the workforce (53%).
The most common objectives from reskilling are improved workforce agility (76% of firms), increased staff retention (61%), and cost savings instead of making staff redundant (50%).
ESG
The most common climate change priorities over the next three months are planning practical steps towards achieving net zero goals (57% of firms) and accelerating green financing options and products (47%).
D&I
The most common priorities for D&I over the next 6-12 months are improving ethnic equality (67% of firms), improving inclusivity (49%), and supporting health & wellbeing (49%).
Cost of living
A combined 70% of financial service firms have initiatives to support consumer and/or commercial clients with the cost of living / cost of doing business.
Financial wellbeing
76% of firms think that organisations in their sector can support consumers through early identification and support for customers facing hardship.
95 staff at risk of redundancy at Wilko
Staff at Nottinghamshire-headquartered Wilko are at risk of being made redundant with the retailer looking to outsource its customer services.
95 employees are anticipated to be affected in Worksop, with a consultation process underway.
Wilko is looking to improve aftercare for customers with the expertise of a third party provider. It comes as part of the firm’s omnichannel journey.
The news follows the privately owned, everyday household and garden retailer agreeing a £40m two-year revolving credit facility with Hilco last week, to allow it to significantly increase financial flexibility as it accelerates plans for turnaround.
This backstop facility is in addition to the recently announced injection of £48m from the sale and leaseback of its Worksop distribution centre and ongoing re-gearing negotiation successes with landlords.
200 Degrees promotes Stephen Fern to Managing Director
200 Degrees Coffee has promoted Stephen Fern to Managing Director.
Having held the position of financial director with the coffee roaster since 2019, Stephen takes on the Managing Director role from co-owner and CEO of the business, Rob Darby.
The Nottingham-based roaster has experienced a continued period of growth across the business, and as Managing Director, Stephen will oversee the company’s operations, growth, team and customer experience.
200 Degrees marked a number of significant milestones last year, celebrating its 10th year in business, reaching 200 team members and opening its 18th coffee shop.
The roaster continues to expand its team in its shops, roast house and central team as well as driving forward its barista school network, home subscription, ecommerce and wholesale offering.
Stephen said: “I am incredibly honoured to be trusted with this position, at a company with such a fantastic culture and ethos for delivering great products and services to our customers, as well as its support of not-for-profit, grass root causes.
“I will continue to learn from co-owners Rob and his business partner Tom Vincent, while also building the culture and driving continuous improvements across the business.
“We have fantastic teams across 200 Degrees and my aim will be to help facilitate each and every employee in achieving their personal goals, that in turn will allow 200 Degrees to achieve our growth and community-focussed ambitions.”
Rob Darby, CEO of 200 Degrees, said: As we continue to expand the business, I want to ensure that we are doing everything we can to guarantee all employees at 200 Degrees and our customers, have the same great experience.
“Stephen has a deep understanding of 200 Degrees and has spent much time working in our shops and across all arms of the business. He has embedded himself not only in our operations but our culture too and is the right person to move into the Managing Director role, as we deliver our next stage of expansion.
“We couldn’t have found someone better suited both strategically and culturally, and I am hugely excited and proud to have such a great guy with so much passion in the role. Congrats Stephen.”
Rob and Tom founded 200 Degrees in 2012, after setting up its roastery on Meadow Lane, opposite Notts County Football Stadium. Since then, they have expanded its footprint across England and Wales.
Mazars appoints private client partner
Mazars, the international audit, tax and advisory firm, has appointed Hina Desai as partner in its private client team within the group’s East Midlands operation. The appointment reflects the firm’s commitment to continuing the expansion of Mazars’ East Midlands client service capacity across its key service lines.
Hina joins from abrdn where she was Managing Director for the company’s wealth advisory team in the North and Midlands region. She brings with her over 25 years of experience in client advisory services, including 16 years of regional experience, having previously worked at national accountancy firms across the North and Midlands.
She will be responsible for growing Mazars’ private client team and services in the East Midlands region with a focus on broadening the firm’s offering in the area and playing a key role in supporting private clients across a range of services.
Hina is passionate about helping clients achieve their financial goals and planning for the future by working with their tax and legal advisers. She has a wealth of experience of advising individuals, trustees and business owners to understand their money and make it work harder for them and their families.
Ian Pickford, partner and head of financial planning and wealth management, said: “We are pleased to be welcoming Hina into our East Midlands offices. Mazars has experienced significant growth in the region and Hina’s extensive private client expertise and regional experience can help us ensure Mazars is well placed to deliver comprehensive services and advice tailored to personal circumstances. We look forward to working with her and seeing what she will achieve with our talented local team.”
Major mixed-use scheme tipped for approval in Nottingham
Plans to demolish existing buildings and erect purpose-built student accommodation and a new public food hall on land at Shakespeare Street, North Church Street, and South Sherwood Street, Nottingham, have been tipped for approval.
The major mixed-use development involves Nottingham’s Guildhall and its adjacent site.
The application proposes the demolition of existing former Police and Fire Station buildings and the redevelopment of the site with a range of buildings fronting onto Shakespeare Street, North Church Street and South Sherwood Street. A further central wing would extend to the rear within the site.
The proposed primary use of the buildings would be for purpose-built student accommodation, with associated amenity and communal facilities. There would be two formats to the proposed student accommodation, with one (Vita Student) comprising 512 studio bedspace accommodation and the other (House of Social) comprising 454 cluster apartment bedspaces.
It is also proposed that there would be a ground floor public food hall at the corner of Shakespeare Street and North Church Street.
Mark Oakes, chief commercial officer for Vita Group, previously said on the scheme: “A vastly underutilised redevelopment opportunity, Guildhall has the potential to be one of Nottingham’s major landmarks once again, bringing significant investment to the city and a historically important building back to life.
“The plans aim to create best-in-class student accommodation with outstanding amenities, whilst also easing pressures on local housing stock. The Market Food Hall will create a go-to destination for all the city to enjoy, providing the perfect backdrop for exciting new independent restauranteurs to bring their new ventures to people across the region.”
