East Midlands economy toughens as latest figures indicate significant downturn
A rise in companies with late payments on their books, as well as a steep fall in the number of new businesses being set up in the region, is indicating a further toughening of the local economy.
This is according to the Midlands branch of national insolvency and restructuring trade body R3 and is based on an analysis of data from business intelligence provider Creditsafe.
R3’s figures show that the number of East Midlands companies with invoices overdue for payment increased from a sizeable 23,194 at the start of the year to 24,258 last month.
Over the same period, the number of invoices which had gone past their payment date in the region shot up from 204,216 to 216,533.
The tightening up of the local economy is also indicated by a dampening of entrepreneurial spirit, with the number of East Midlands start-ups falling by 25.68% from 2,995 in January to 2,226 in August.
R3 Midlands Chair Stephen Rome, a partner at Penningtons Manches Cooper in the region, said: “There will be very few local companies finding the current trading conditions favourable, and these latest research figures back this up.
“While we have seen some economic improvements in recent months, driven mainly by a successful summer of sport and increased political stability following the General Election, doing business remains tough.
“There is a glimmer of positivity on the horizon, however, with the Bank of England expected to cut interest rates later this year and potential for further growth in GDP, but continuing economic uncertainty could overshadow these opportunities.
“R3 would urge any local businesses struggling financially to seek advice as soon as possible. Most R3 members offer a free initial consultation to explore potential solutions for any significant financial issues.”
Local businesses benefit from more than £375,000 in grant funding
With the support of Newark and Sherwood District Council, businesses throughout the district are making big developments expanding their commercial ventures. They’ve gained access to vital grant funding opportunities via the UK Shared Prosperity Fund (UKSPF) and Rural England Prosperity Fund (REPF), giving them the boost they need to grow and thrive.
Over 70 local businesses have collectively received more than £375,000 in grant funding from the UK Shared Prosperity Fund and the Rural England Prosperity Fund throughout 2023 and 2024 to help their businesses to take the next step, diversify or improve their environmental impact and sustainability.
In addition to the grant funding awarded, a further £1m is committed through UKSPF and REPF under the theme of supporting local businesses and the visitor economy, including providing local enterprises with fully funded specialised training, access to one-on-one advisory services, workshops, as well as investment in town centre regeneration and enterprise infrastructure.
Grants to businesses were awarded following various themed competitive rounds, including grants that specifically support rural economic growth through projects such as farm diversification and tourism creation, improving business sustainability and reducing carbon, and encouraging productivity and the scale up of small and micro businesses.
The funding has supported a variety of projects for businesses, such as capital grants for expansion of event venues, leisure and hospitality sites, funding to purchase key production and manufacturing equipment, solar panel and energy efficiency solutions, and purchases to help businesses improve processes or enhance productivity.
The successful grant recipients include The Sherwood Food and Drink Company, Hockerton, which received funding through REPF towards the purchase of key manufacturing and production equipment to support the scale up of their local oat-based milkshake business, Devoated. The project safeguarded two jobs, supported the future recruitment of one job, introduced new products to market, and introduced new processes to the firm to help significantly grow the business.
The owner of Devoated, Oliver Christy, said: “The Rural England Prosperity grant funding has been instrumental and essential in enabling us scale up our operations and support our business plan…we have been able to fit out our unit and purchase equipment much quicker than we would have otherwise been able to do.”
The UKSPF and REPF are Government funds available until March 2025. Businesses received funding through competitive rounds, and all current funds have now been distributed.
Commitment to people recognised as Nottingham Venues shortlisted for business awards
Nottingham Venues has been named as a finalist in the Commitment to People Development Category at the 2024 East Midlands Chamber of Commerce Nottingham Business Awards.
Part of the East Midlands Business Awards, covering Derbyshire, Nottinghamshire and Leicestershire, the awards celebrate the region’s world-class business community across 14 different categories.
The Nottingham Venues team has been shortlisted in the Commitment to People Development category, which recognises organisations demonstrating a firm commitment to people development and the implementation and promotion of a learning and development culture. It also considers how employee wellbeing is supported and how this culture contributes to the business’s overall success.
Stephanie Moss-Pearce, Director of Marketing at Nottingham Venues, said: “This is a fantastic result for our team. Our people reflect us, as a business, and the value we place on them.
“Over the past three years, our commitment to our people has created a happy, engaged, positive workforce and this has been the biggest factor in driving our business success. Our people create our organisational culture which impacts on the atmosphere we create for our guests. Having satisfied guests brings repeat business and our teams’ excellent service builds our reputation, creating positive reviews, which drive our success.
“We’re thrilled that our initiatives for people development have been recognised. The past year has been our best yet, both financially and in terms of business growth and internal promotions, staff engagement and positive guest feedback, all thanks to our dedicated team.”
Designed for connecting, championing and supporting local businesses, organisations and communities, the annual awards provide an opportunity for sponsors, finalists and other Chamber members to come together and celebrate the amazing work that organisations in Nottinghamshire undertake every day.
The finalists for each county’s awards were selected by a panel of judges made up of sponsors and Chamber senior management. They were revealed at The President’s Summer Celebration event, hosted by Chamber President, Stuart Dawkins.
Mr Dawkins said: “When I look at the people and organisations that have entered or been fortunate enough to become finalists for this year’s awards I’m blown away by the calibre and talent.
“The quality of entries was exceptionally high and I’m sure the judging panels had some tough decisions to make as the shortlist was compiled.”
The winners will be announced at the awards dinner on Friday 1st November at Nottingham Belfry, Nottingham, NG8 6PY
Leicester City Council signs up to protect staff from violence at work
Leicester City Council has shown its commitment to keeping all staff safe at work by signing up to a trades union charter to end violence at work.
The UNISON charter aims to encourage organisations to protect employees working in public services from acts of abuse, assault, and threatening behaviour.
Organisations wishing to sign must provide evidence for how they meet ten important standards for protecting staff against violent incidents. These include a clear incident-reporting and investigation procedure, continually collecting and monitoring data on violent incidents, and providing training to ensure staff know how to deal with threatening situations appropriately.
UNISON Branch Secretary Janet McKenna said: “I am delighted that Leicester City Council staff know that their employer has a high standard of policy, procedure, accountability, and support when it comes to issues of violence at work. Other employers should follow the council’s example.”
Leicester City Council’s Chief Operating Officer, Alison Greenhill said: “I was pleased to sign this charter on behalf of the council. We want all of our staff to be safe when working to provide services for the people who live, visit and work in our city. Violence against our staff in any form is completely unacceptable.
“We have procedures in place to control exposure to violence and aggression, and these are monitored to ensure they’re being implemented effectively. We share our findings with trades union colleagues, and together we are committed to improving processes where we can, so that everyone who works at the council goes home safe and well at the end of the day.”
Northampton mechanical handling solutions provider secures £440k to fuel growth
Stantone Mechanical Handling Ltd, a provider in the hire, sale and maintenance of forklifts and access platforms, has secured £440,000 loan funding from NatWest to facilitate the purchase of additional premises. This strategic expansion will support the Northampton-based firm’s growth and create new jobs.
Established in 1961, Stantone was bought over by Director Nigel Martin and his co-Director, wife Lisa, who had been working in the business prior to the acquisition.
Under their leadership, Stantone has experienced continuous, sustainable growth, consistently meeting rising demand by expanding their team and diversifying their offerings, including the introduction of utility vehicles to their product range.
The new premises, funded by NatWest, will include electric vehicle charging stations, reflecting Stantone’s commitment to sustainability and modernising their infrastructure. This expansion aligns with Nigel’s vision for sustainable growth and enhances the company’s capability to meet and exceed its customers’ needs more effectively.
Ian Mccormack, Relationship Manager at NatWest, said: “We are delighted to be supporting Stantone with their expansion plans. This loan will enable Stantone to enhance their facilities and create new job opportunities, further solidifying their position as a leader in the mechanical handling industry.
“We are really excited to see how this investment builds on their success, driving growth for the future.”
Nigel Martin, Director of Stantone Mechanical Handling Ltd, said: “This funding package from NatWest is instrumental in helping us to achieve our growth ambitions. The new premises will not only allow us to better serve our clients but also to demonstrate our commitment to sustainability with the addition of electric vehicle charging stations.
“Working with NatWest has been great, they clearly understand our ambition and have supported us throughout this journey. We’re grateful for NatWest’s support and look forward to our bright future.”
Flint Bishop prepares for further growth with strategic appointment of new Chief Information Officer
Law firm Flint Bishop, with offices in Birmingham, Derby and Leeds, has appointed Paul Tennant as its new Chief Information Officer (CIO), as it looks to make further significant investment in innovation and technology to enhance the delivery of its services, support clients’ objectives and disrupt the market in its quest to become a leading scaled provider of legal services in the UK.
Tennant has held several senior technology positions within the financial services and legal sectors, including C-suite and director roles at Simply Conveyancing Group and My Home Move Ltd (now Simplify), the UK’s largest conveyancing firm with over 1,100 employees across the UK and India. He brings over two decades of experience in driving significant growth through innovation, transformation, and the design and delivery of strategically aligned information technology solutions.
In his new role, Tennant will be responsible for developing and executing the firm’s innovation and technology strategy, ensuring the successful delivery of transformational projects across all areas of the business. He will work alongside the broader team to advance the company’s data and technology strategy, keeping it at the forefront of new tools and advancements, including AI, to support both internal processes and client services.
Qamer Ghafoor, Chief Executive of Flint Bishop, said: “I am delighted to welcome Paul to the firm. His extensive experience—particularly in designing and executing technology roadmaps, innovation, managing large-scale IT projects, and leading teams through significant growth and change, together with onboarding several legal businesses through acquisitions—makes him an exceptional addition to our leadership team.
“In today’s rapidly evolving legal landscape, law firms must embrace efficiency, innovation, and diversity to meet client demands. Flint Bishop is firmly on course to adopt client-centric, diversity-focused, and innovative solutions poised for success. I am confident that Paul’s knowledge and expertise will help us continue to innovate and strengthen our position in the market.”
The appointment follows the recent addition of a Chief Operating Officer to Flint Bishop’s senior leadership team earlier this year, further solidifying the firm’s commitment to driving innovation and excellence in the legal sector.
East Midlands Mayor names team for coming year
The Board of the East Midlands Combined County Authority (EMCCA) is set to discuss nominations for key political leadership roles for the East Midlands region at its next meeting.
Portfolio leads at EMCCA will each be responsible for leading a number of key priority areas for the region, working with the Mayor and their Board colleagues to make the region more prosperous, sustainable and fairer, helping people and businesses to create and seize opportunities.
Mayor Claire has also selected Cllr Nadine Peatfield, Leader of Derby City Council, as her Deputy Mayor. Cllr Peatfield will take up the role following Board and will receive no salary for the role.
Portfolio nominations are:
- Transport and Digital Connectivity: Cllr Ben Bradley and Cllr Anthony McKeown (deputy)
- Skills and Employment: Cllr Paul Hezelgrave and Cllr Milan Radulovic (deputy)
- Investment: Cllr Neghat Khan and Cllr Simon Spencer (deputy)
- Farming and Rural Affairs: Cllr Barry Lewis and Cllr Paul Peacock (deputy)
Deal completed to deliver 146 new homes in Wellingborough
Vistry Group, the provider of affordable mixed-tenure homes, has completed a deal to build 146 houses and apartments in Wellingborough in partnership with global investment manager Man Group’s Community Housing team.
The development at Glenvale Park is set to become a community of one and two-bedroom maisonettes, and two, three and four-bedroom homes. The 146 homes will provide a range of tenures. The first 75 homes delivered will offer social rent and shared ownership homes, supported by Homes England.
Situated to the north of Wellingborough, the 7.8-acre site forms part of the wider 3,000-home Glenvale Park sustainable urban extension scheme. This will include 675 affordable dwellings plus a 25,000m² business park which will incorporate a new local centre with retail amenities, new communal hub, two new primary schools, a nursery and extensive parkland.
The new homes have been designed to outperform current building regulation requirements and achieve a minimum rating of EPC B whilst maximising the use of sustainable timber during the manufacturing process.
Having taken over the site from Ilke, Vistry will convert the modular house designs into sustainable timber frame homes using modern methods of construction. The timber frame panels will be produced locally at the Vistry Works factory in Leicestershire and each home built using these panels will emit 14,460kg CO2e less than a traditional brick-and-block house.
Andy Reynolds, Managing Director of Vistry South East Midlands, said: “We are thrilled to be working with Man Group for the first time on this exciting project. Our use of modern methods of construction will reduce the carbon footprint of these homes whilst allowing them to be built at speed to meet the housing needs of the community.
“We’re excited to once again be a part of Wellingborough’s growth and to be entrusted with the build of these much-needed new homes which will create a thriving and sustainable community.”
Shamez Alibhai, Managing Director and Head of Community Housing at Man GPM, said: “Our aim is to help address the UK’s housing crisis by creating affordable, high-quality and sustainable homes. We are pleased to partner with Vistry to deliver on this ambition and develop 146 new homes in Wellingborough. By working together, we have the potential to deliver real social impact and provide environmentally sustainable communities.”
The site already has full planning permission and Vistry has commenced work.
Plans lodged to transform former Nottingham Central Library
Plans have been revealed to transform the former Nottingham Central Library on Angel Row.
The proposals would see the building become halls of residence for students, with the ground floor converted to provide three retail units, one of which is set to be a takeaway.
The halls of residence would offer a mix of cluster flats and one-bedroom studios, broken down to include 53 one-bedroom studios, six two-bedroom clusters, seven three-bedroom clusters, 11 four-bedroom clusters, one five-bedroom cluster, one six-bedroom cluster, and three eight-bedroom clusters.
A reception, meeting rooms, gym, spa, common room, games room, dinner party room, and cinema are also included in the plans, and a new entrace is to be formed on Mount Street.
Harington Students is behind the plans, having been awarded the purchase of the building from Nottingham City Council through a competitive tender. According to documents submitted for the application, other parties were proposing to demolish the existing building.
“Strong set of results” for Dunelm
The CEO of Dunelm has hailed a “strong set of results…in a period when consumers faced inflationary pressures and competing demands for their disposable income.”
According to preliminary results for the 52 weeks to 29 June 2024, the homewares retailer saw sales of £1.71bn, up 4.1% on the year prior (FY23: £1.64bn) despite the softer market.
Profit before tax, meanwhile, increased to £205m from £193m at the Leicestershire firm. Six new stores opened (including one relocation) during the year.Nick Wilkinson, Chief Executive Officer, said: “This strong set of results is testament to the hard work of our adaptable and committed colleagues. In a period when consumers faced inflationary pressures and competing demands for their disposable income, we have continued to raise the bar on the relevance and value we offer at Dunelm.
“The continued delivery of volume-driven sales growth and further share gains in this softer market underlines this, and the strength and resilience of our business model.
“We have made good progress with our growth plans, including the expansion of our store estate, building a faster and better digital experience for customers, and advancing our tech and data capabilities.
“As we evolve our strategic thinking in this changing environment, we are now even clearer on the areas which will help us to unlock our full potential as The Home of Homes.
“Whilst we are gradually seeing improvements to economic indicators, we are yet to see a meaningful change in consumer spending habits in our markets. Against this backdrop, and compared to a strong first quarter last year, we have made a solid start to FY25.
“Our plans give us a clear pathway to reaching our next milestone of 10% market share in the medium term, and we remain very confident in our ability to deliver long-term sustainable growth as a result.”
