- 8 out of 10 have a negative impression of the Budget
- Half plan to reduce recruitment
- 4 out of 10 expect to reduce their staff number
- 6 out of 10 expect profitability to decrease
- 44% plan to reduce investment plans over the next 12 months
- 4 out of 10 expect sales to increase. 2 out of 10 expect sales to fall
East Midlands businesses expect a decrease in employment, profitability and investment following Autumn Budget
Half of East Midlands businesses plan to revise their recruitment intentions, 6 out of 10 anticipate a drop in profit and just under half are likely to lower investment plans – these are key findings from a snap survey carried out by East Midlands Chamber into the impact of measures announced in the Chancellor’s Autumn Budget on 30th October.
Most respondents – 8 out 10 – expressed a negative overall impression of the Autumn Budget, citing significant concerns over increased costs and a lack of targeted support for small and medium enterprises (SMEs).
239 businesses across Nottinghamshire, Derbyshire and Leicestershire participated in the research, which sought to discover sentiment, growth projections and overall confidence level among firms across the East Midlands following the Budget.
Sectors that participated in the survey included manufacturing, construction, retail, hospitality, transport & logistics, professional services, and the public sector through health and education.
The findings have been presented to political leaders at both regional and national level.
Summary of findings from the Chamber’s snap survey on the impact of the Autumn Budget in the East Midlands:
Local hero Mo Walker brings Mo-mentum to Leicester schools
Leicester’s very own basketball legend, Mo Walker, has been inspiring the next generation through the Mo-mentum initiative, a program proudly supported by local firm WBR Group.
As a former star of the Leicester Riders, Mo has made an impact by visiting local schools to share his journey from the courts to the community, and motivating students to chase their dreams and engage in positive behaviours.
The Mo-mentum program was more than just a series of talks; it was an interactive experience where Mo Walker used his personal story of perseverance and success to connect with students on a deeper level.
Through dynamic presentations and engaging activities, Mo aimed to ignite a spark in young minds, showing them that with hard work and determination, anything is possible.
He was at South Wigston High School one day a week for 5 weeks, spending an hour with the pupils.
Mo Walker, Ambassador and Community Liaison at WBR Group, said: “Living and playing in Leicester for the past 5 seasons, I know the challenges these kids face. I want to give them the momentum to push forward, make positive choices, and realise their full potential.”
Hussein Khan, the Partnership Development Manager at Learning South Leicestershire Schools Sports Partnership, said: “Mo delivered sessions that engage children who struggle to make the right choices in school. His messages and the journey he shared were inspiring to both staff and pupils.
“Mo is a brilliant role model and his programme has had a meaningful impact on the young people who participate in South Leicestershire. We would like to say a huge thank you to Mo and the WBR Group for their support. We look forward to working with Mo to inspire more young people to make positive lifestyle choices.”
WBR Group was thrilled to support Mo in this endeavour, believing that the Mo-mentum program can make a lasting impact on the community. Plans are underway to expand the initiative to more schools across Leicester, with hopes of involving other local athletes and community leaders.
This initiative follows Mo’s appointment as WBR Group’s Ambassador and Community Liaison earlier this year, where he actively engages with the Leicester community and collaborates with charitable organisations.
Derby vehicle retailer returns to profitability
Motorpoint Group, the independent omnichannel vehicle retailer, has hailed a return to profitability in unaudited interim results for the six months ended 30 September 2024 (H1 FY25).
The Derby-based business saw pre-tax profit rise to £2m in comparison to a £3.7m loss in the same period of the year prior, which the firm says was driven by strong growth in retail volumes in the period of 17.4% with 30.3k retail vehicles sold (up from 25.8k). Revenue, however, decreased to £563.1m from £607.2m, reflecting a more affordable vehicle mix and price deflation.Mark Carpenter, Chief Executive Officer of Motorpoint Group PLC, said: “I am pleased with our solid performance in the first half of FY25, which was marked by a return to profitability following several years of considerable headwinds that have impacted our industry.
“Brilliant Basics, our right sizing and margin improvement programme, delivered what it needed to in FY24, ensuring foundations for future growth. As well as strong year on year volume growth and market outperformance, margins strengthened, and stock turn improved to an industry-leading 41 days in stock.
“Following the challenges faced in recent times, we remain cautious as supply slowly improves and macroeconomic pressures continue to ease, while demonstrating our return to profitability, as we plan courses of action to accelerate this growth.
“In response to higher demand for Motorpoint cars, we have bolstered our team and have the firepower to restart investment in our estate, including the opening of new stores. I am very excited by our plans to unlock further profitable growth, and we are in a strong position to continue increasing our share of the used car market.”
Results slump at tile specialist
Revenue has declined and profits have slumped at Topps Tiles, the tile specialist, with 2024 a challenging year for RMI (repairs, maintenance and improvement).
According to unaudited consolidated annual financial results for the 52 weeks ended 28 September 2024, group revenue decreased to £251.8 million at Topps Tiles, down from £262.7 million.
Meanwhile, the Leicester business posted a loss before tax of £16.2 million, in comparison to a £6.8 million profit in the year prior. Topps Tiles noted this to be a result of a £19.4 million non-cash impairment, primarily of right-of-use assets, and a £3.1 million expense relating to the purchase of remaining Pro Tiler shares. Rob Parker, Chief Executive, said: “2024 has been a challenging year for RMI (repairs, maintenance and improvement) and especially bigger ticket spend.“In the tile market, volumes remain well below pre-pandemic levels. Whilst Topps Group is not immune to these pressures, our growth strategy has served us well and we have continued to outperform the wider tile market.
“The start of the new financial year has seen a return to modest sales growth for the Group, helped by weaker prior year comparatives and the continued strength of our trade offer.
“Whilst pleasing, the forward macro indicators for our market remain mixed, in particular weaker consumer confidence, and we need to see a sustained improvement in these metrics before we can be confident of a consumer recovery.
“‘Mission 365’, which sets ambitious revenue and profit medium-term goals, has focused the business around key areas of growth and we have delivered good progress against these over the second half – notably our trade digital offer, our plans to significantly expand our addressable market into hard surface coverings, trade business to business opportunities with the acquisition of CTD Tiles and the strong growth in online pureplay.
“The robust strategic progress being made now to position the business for the future leaves us well-placed for a recovery in market volumes and underpins our confidence in the medium term outlook.”
Salloway Property Consultants makes director promotion
Salloway Property Consultants has appointed Chris Keogh as a director of the firm.
Chris, a Chartered Surveyor, is in his second spell at Salloways having rejoined the firm in 2020.
Stephen Salloway, managing director of Salloways, said of Chris: “He has demonstrated an extraordinary work ethic, consistently achieving outstanding results.
“He actively fosters a spirit of teamwork both with colleagues in the office and in the development of business relationships. This approach results in a high standard of service delivery to our clients which fully reflects the core values of our organisation.
“What stands out the most is his exceptional ability to manage both people and projects while at the same time grasping the broader corporate perspective which contributes to the company’s overall success.
“He is an outstanding ambassador for the company and genuinely deserves his promotion.”
East Midlands construction consultancy appointed to national framework
Construction consultancy Bentley has been appointed to Procure Partnerships’ Professional Services Framework, covering six regions throughout the country.
The public sector specialist has been placed on two separate national frameworks, Project Management and Quantity Surveying, covering the North West, Yorkshire, West Midlands, East Midlands, East of England and South East.
Mark Collins, executive director and framework lead for Bentley, said: “Our appointment to the Procure Partnerships Professional Services Framework is a reflection of our substantial recent growth and our expertise within the public sector.
“Here at Bentley we specialise in the delivery of complex, strategic infrastructure and regeneration projects, and also have an extensive cost management team who are well versed with managing public spend. This framework will allow us to access projects where we can really make a difference and help the UK meet its crucial deadlines for housing and infrastructure.
“The last few years have seen us expand our service offering across the UK and as such we have experience within the regions this framework covers. This experience and understanding will allow us to provide an industry-leading service to public sector organisations utilising the framework.”
Faye Dolan, framework director at Procure Partnerships, said: “Procure Partnerships Framework is delighted to have Bentley join as a new consultant partner on the second iteration of the Procure Partnerships Professional Services Framework.
“Bentley has an impressive portfolio of public sector experience and we are really looking forward to working with the Bentley team over the next four years.”
Work starts to bring 393 new homes to Sleaford
Bellway East Midlands has started construction work on two new developments at Handley Chase in Sleaford.
Detailed plans for 393 homes within the new neighbourhood taking shape on the southern edge of the town were approved by North Kesteven District Council earlier this year.
Bellway is building 204 homes at Quarrington Edge at Handley Chase, while Ashberry Homes – part of the Bellway Group – is building 189 homes at neighbouring Daedalus Park at Handley Chase. 31 of the homes will be provided as affordable homes for local people, available through low-cost rent or shared ownership.
Steve Smith, Sales Director for Bellway East Midlands, said: “With work now underway on these two developments, which will bring nearly 400 much-needed new homes to Sleaford, we are looking forward to releasing the first homes for sale in March.
“The mix of two, three and four-bedroom homes across the two developments has been carefully designed to provide the types of properties needed within the local area, while the affordable housing will give local people the opportunity to secure a high-quality place to live within the local community.
“The new homes will be energy-efficient and feature solar PV panels and electric vehicle charging points. The properties will also benefit from Google Nest technology, with a smart thermostat to help people reduce their energy bills.”
The two developments are part of the wider Handley Chase neighbourhood. Outline plans for 1,450 homes, a primary school, care home, local centre, public open space, sports pitches and allotments were approved in 2015, with work already underway on other land parcels within the scheme.
Steve said: “We are proud to be part of the wider Handley Chase project which will not only deliver new homes to Sleaford but will also bring with it a host of new community facilities which will benefit the town as whole.
“Our two developments – which lie to the east of Stumps Cross Hill and comprise the southernmost parcels of the Handley Chase scheme – will also feature green landscaping designed to ensure they will blend in with the surrounding natural environment.
“We will retain existing trees and hedgerows wherever possible and carry out a new planting programme, creating ponds within the public open space and new habitats for local wildlife.”
Midlands Engine Investment Fund II invests over £17m into region’s businesses
The Midlands Engine Investment Fund II has committed over £17m in the Midlands in its first nine months, leveraging a further £10m from the private sector to help the region’s small and medium-sized businesses to start up, scale up or stay ahead.
A total of 70 businesses have received support through the Midlands Engine Investment Fund II since its launch in February 2024. The £400m Midlands Engine Investment Fund II covers the whole of the Midlands and provides debt finance from £25,000 to £2m and equity investment up to £5m to help small and medium sized businesses.
Five dedicated fund managers – First Enterprise – Enterprise Loans, BCRS Business Loans, Mercia Ventures, Frontier Development Capital (FDC), and Maven Capital Partners – manage separate parts of the £400m fund.
High street knitting and crafting retailer Knit Nottingham, and specialist tapes and adhesives manufacturer Advance Tapes, based in Leicestershire, are among those who have been supported by the fund.
Jody Tableporter, Director UK & Regional Funds, British Business Bank, said: “This funding milestone of £17m to 70 businesses, achieved in only nine months, indicates that Midlands businesses are ready to take on capital to help them achieve their ambitious growth plans.
“This demand from businesses across very different sectors, from manufacturing and technology to retail, logistics and renewable energy, showing the incredible diversity of the business base we have here in the Midlands.
“The Midlands Engine Investment Fund has also acted as a catalyst for private sector investment – helping to secure a further £10m, bringing the total investment into Midlands businesses to £27m. It is clear that this is just the beginning for the fund and the ambitious firms that access it.”
University of Nottingham spin-out Neupulse secured £500,000 in funding from the Midlands Engine Investment Fund II earlier this year, through appointed fund manager Mercia Ventures.
Neupulse has developed a Tourette’s therapy wristband, an innovative, non-invasive and non-medical treatment which has proved highly effective in trials. The funding is enabling Neupulse to finalise product trials and prepare it for market launch in the coming months.
Paul Cable, CEO of Neupulse, said: “The funding from Midlands Engine Investment Fund II has allowed us to take one step further towards our mission to roll out our device and give new hope to people with Tourette’s.
“Working with our fund manager partner over the past few months, they’ve supported us with expertise in product development and paths to new markets and helped us to deploy the funding effectively with great results.”
Jody Tableporter added: “Neupulse is an exceptional business that has secured funding to bring its vision and purpose to life. It is just one example of the incredible drive we’ve seen from entrepreneurs across the Midlands – and I look forward to seeing how we can support even more of them in the months to come.”
Leicestershire point of sale company celebrates double awards win
Melita POS, a family-run business based in Leicestershire, has been crowned winners across two of the four categories they were finalists in, after entering the East Midlands Chamber Awards for the first time.
The achievement marks a significant milestone for the company, further highlighting its dedication to excellence and innovation within the industry.
Melita POS is a winner in the Outstanding Growth and Small Business of the Year categories. They were also finalists in the International Trade category, and MD Dan Jacques was a finalist for Leicestershire Entrepreneur of the Year.
Dan Jacques, Managing Director at Melita POS, said: “We are incredibly proud, and a little overwhelmed, to have won these awards. To be finalists in four categories in our first year of entering is an honour in itself, but to win and take home two awards is something else entirely.
“This recognition is a testament to our business, our values, and most importantly, the dedication and hard work of our amazing team. We could not have achieved any of this without them.”
Melita POS, headquartered at Leicester’s Meridian Business Park, has been a leader in end-to-end Point of Sale (POS) and merchandising solutions for over 25 years. The company, which unites the diverse services of design, manufacturing, warehousing, merchandising and installation under one brand, is the result of the amalgamation of Display Logistics, DL Manufacturing, and KK Installations.
Despite these changes, Melita POS remains a family-owned and operated business. This strategic move marks the beginning of a new chapter for Melita POS, with an ambitious program of investment and growth being spearheaded by new Managing Director, Dan Jacques, alongside Company Director, Emily Havard, Operations Director, Rich Metcalf, Production Director, Glynn Parker, and Warehouse Director, Mark Jacques.
Originally established as Display Logistics in 1997 by Shivena and Steve Jacques, today Melita POS employs 35 workers with a turnover of over £6 million and has ambitious plans for international growth, while maintaining a strong commitment to supporting the economic success of its hometown of Leicester.
East Midlands Green Growth triples in 9 years
Green Growth activity – environmentally sustainable economic growth – from businesses in the East Midlands is three times higher than it was in 2015, according to joint research published by East Midlands Chamber and the University of Derby.
Green Growth Trends research published this week by the two organisations tracks and analyses awareness and engagement with green growth, decarbonisation, and the uptake of nature-based solutions (NBS), based on responses from businesses in the Chamber’s Quarterly Economic Survey.
Findings for 2024 reveal a 7% increase from 2023 in East Midlands businesses achieving turnover from the supply of green goods and services, while more than 45% businesses in the region invested in decarbonisation initiatives over the past 12 months, an increase of 6% since 2023.
The research highlights significant difference in Green Growth activity based on the size of a business. Three quarters of large businesses in the East Midlands pursue Green Growth activities but only half of small businesses do, while for micro businesses the figure drops to four out of ten.
Key findings from Green Growth Trends in the East Midlands 2024
- 7% more businesses derive turnover from the supply of Green Growth goods and services than in 2023
- 43% of businesses trade in environmentally friendly goods and services
- Three quarters of large businesses pursue Green Growth, half of small and four out of ten (39%) micro businesses
- More than 45% businesses invested in decarbonisation initiatives over the past 12 months, up 6% since 2023
- Seven out of ten large companies invest in decarbonisation
- Just over 30% of businesses have never engaged in nature-based solutions over the last 12 months
- Three in ten businesses have no turnover for green goods and services, 10% lower than in 2023
