Sparks of economic recovery as new business numbers rise in East Midlands
A steep rise in the number of East Midlands start-ups and a drop in insolvency-related activity are showing sparks of economic recovery in the region as local businesses head into the first quarter of 2025.
According to the Midlands branch of R3, the UK’s insolvency and restructuring trade body, there were 2,424 businesses set up in the East Midlands in January, which is over a third (36.56%) higher than the previous month (1,775) and is one of the highest monthly statistics of the past six months.
The figures, which are based on R3’s analysis of data from business intelligence provider Creditsafe, also highlight a January fall in insolvency-related activity in the East Midlands, which includes liquidator and administrator appointments as well as creditors’ meetings.
R3 Midlands Chair Stephen Rome, a partner at law firm Penningtons Manches Cooper in the region, said: “It’s good to see some positive growth statistics emerging, particularly as we are currently facing so much economic uncertainty.
“It is important to see the full picture, however, and R3’s analysis shows that a sizeable percentage of our region’s businesses continue to struggle – 24,298 East Midlands companies had late payments on their books in January, which is not only high, but is also a rise from the previous month.
“Going forward, there are reports that economic growth will accelerate this year, mainly due to a drop in interest rates and an increase in government spending, but significant hurdles remain for businesses to navigate.
“Key to capitalising on any improvements in the trading environment will be the ability and willingness of business owners to plan ahead and act on opportunities, as well as monitor their company’s finances carefully.
“If cash flow becomes a major challenge, it is crucial to seek professional advice as soon as possible. There is a significant amount which can be done to rescue and support East Midlands businesses if help is taken early enough.”
Leicester shopping centre snapped up
Evolve Estates, part of commercial property and investment collective M Core, has acquired Beaumont Leys, a community shopping centre in Leicester.
The 10-acre site is the dominant local retail offer within the area, serving a significant residential population of 670,000 people. The acquisition is a joint venture with M Core.
The shopping centre has recently benefitted from significant capital investment, including developing a drive-through Starbucks, further boosted by B&M committing to the former Wilko unit on a 10-year lease.
This community asset serves residents’ requirements for convenience shopping and Evolve will use its expertise in this sector to manage the asset, working the tenant mix while optimising the centre for the local community’s needs.
Beaumont Leys is anchored by Tesco Extra and Aldi, with key tenants B&M, McDonald’s, Poundland, and Boots. There are three car parks, which provide 1,500 free car parking spaces and 12 EV charging points.
Sebastian Mcdonald-Hall, Partner at Evolve, said: “The shopping centre is perfectly positioned for the local community; Beaumont Leys is a key district within Leicester and is home to several attractions that contribute to its vibrant life.
“Beaumont Leys is experiencing significant investment and residential development, and the area is a focal point for new housing projects that serve the wider Leicester area.
“Our team will build on the success, ensuring the asset continues to serve the local community with a variety of tenants that meet demand.”
The deal was brokered by Evolve on behalf of the purchaser L&C Investments Ltd and will be managed by Evolve.
James Stratton, Savills, and Tim Lloyd, Cited, acted for Evolve. Will Lund, Knight Frank, and Steven Lewis, Lewis and partners, acted for the vendor.
Streets’ to deliver annual update on issues affecting payroll management, HR and compliance
Whether you have just one employee or a large workforce, you do payroll in house or use a payroll bureau, have an HR team or not, Streets Chartered Accountants’ Annual Payroll & HR Update aims to keep you informed of the issues, regulations and changes affecting payroll management, HR and compliance.
Taking place from 11:00 – 12:00 on Wednesday 19th February, the virtual event will also look at the broader HR matters that may concern employers now and in the year ahead, along with the potential impact of changes to and the introduction of new employment legislation.
Payroll – a topical update and refresher
Theresa Waddingham, Partner, Streets Chartered Accountants
Theresa’s presentation will focus on the forthcoming changes affecting payroll as we start a new tax year, along with some useful hints and tips to make your life easier to ensure that those charged with payroll are on the right track. Her presentation will include the following:
- NLW and NMW changes and rates for 2025
- Statutory increases
- Working from home expenses
- Working from home when home is in another country
- Changes to the employment allowance
- Employment allowance and connected entities
- Employers NI changes
- What can be done to mitigate the NI increases
- What can we anticipate in the future
- What businesses need to do to demonstrate that they are taking measures to prevent sexual harassment following the amendment to the Equality Act that came in in October 2024 and the guidance issued by Equality and Human Rights Commission
- What will happen with the Government’s Employment Rights Bill in 2025
- Other legislation that will come into force in 2025 that businesses should be aware of
To register for the event click here.
This presentation will be recorded and available on demand for those not able to join live. Simply register to receive a link to watch on demand.Record first half performance for sustainable building products firm Alumasc
Alumasc, the Northamptonshire-headquartered sustainable building products, systems and solutions group, has seen a record first half performance, with revenue and profit on the rise.
According to results for the six months ended 31 December 2024, group revenue increased by 20% to £57.4m, with organic growth in all three divisions.
Underlying profit before tax, meanwhile, grew strongly, up 19% to a record £7.5m.
Statutory profit before tax rose to £6.5m from £5.6m in the same period of the prior year.
Paul Hooper, Chief Executive of Alumasc, said: “We are pleased to report a record first half, driven by both organic and inorganic growth. Group revenue grew by 20% compared to the prior period, which is a particularly impressive result given the challenging market environment.
“All three divisions have demonstrated continued growth in revenue, highlighting the resilience of our business model. This performance reflects execution of, and focus on, our four strategic pillars: accelerating organic revenue growth; enhancing efficiency and margins; advancing sustainable products; and making value-enhancing investments.
“We’ve also made significant progress in expanding our presence in export markets, which should benefit future periods’ revenues and profits. We are particularly excited about the performance of ARP Group, who have exceeded expectations since joining the Group in December 2023. We are confident that we will continue to see synergies and efficiencies come through in the second half.
“We remain confident in both the quality of our businesses and in our capacity to deliver our ambitious growth plans, supported by our strong positions in higher growth sustainability-driven markets, and have a clear line of sight to delivery of significant shareholder value.”
Rolls-Royce welcomes strategic co-operation with Hungary over SMRs
Rolls-Royce SMR has welcomed the announcement by Hungarian Foreign Minister Péter Szijjártó of growing strategic cooperation with the UK on nuclear energy, including a specific focus on small modular reactors.
Rolls-Royce SMR’s Director of Strategy and Business Development, Alan Woods, said: “The announcement on cooperation between the UK and Hungary, which specifically mentioned SMRs and described Rolls-Royce SMR as a leader in the development and deployment of this technology, is exciting.
“Hungary is an experienced and credible nuclear nation and our work in Central Europe – including our strategic partnership with Czech utility, CEZ – means there is a huge opportunity in the region.”
Each ‘factory-built’ Rolls-Royce SMR nuclear power station will provide enough low-carbon electricity to power a million homes for more than 60 years, and will create thousands of long-term, high-skilled jobs.
Games Workshop appoints LEGO regional president to board
Games Workshop, the Nottingham-based manufacturer of miniature wargames, has appointed Eric Maugein to the board as non-executive director of the company.
Eric will also become a member of the Audit and Risk, Remuneration and Nomination Committees.
Eric has more than 35 years of experience in the consumer goods sector and spent 20 years of his career at The LEGO Group. Most recently, Eric was regional president at The LEGO Group Asia Pacific.
Eric has considerable experience in building and leading successful strategies for new markets in the Middle East, Europe and Asia, defining and implementing expansions in markets such as China and India.
New Hydrogen Propulsion Lab at University of Nottingham gets the go-ahead
Planning permission has been granted for the construction of a new state-of-the-art hydrogen propulsion lab on the University of Nottingham’s Jubilee Campus, in partnership with Research England and industry partners.
YMD Boon is the architect, lead designer and principal designer (building regulations) for this facility, which will advance research in sustainable transport technologies and play a key role in shaping the future of zero-carbon propulsion.
With a shared commitment to sustainability and innovation, the team has developed a facility that meets the complex requirements of hydrogen research while prioritising safety and efficiency.
Strategically integrated with the adjacent Power Electronics and Machines Centre (PEMC), the Hydrogen Propulsion Lab will provide an advanced environment for high-power propulsion system testing.
The lab will feature cutting-edge cryogenic test capabilities, environmental chambers for altitude simulation, and testing areas for gaseous hydrogen, ammonia, and other green fuels.
These capabilities will enable the university’s world-leading researchers to push the boundaries of propulsion technology in a controlled and secure setting, supporting industries such as aerospace, automotive, marine, and power generation in their transition to clean energy solutions.
The Hydrogen Propulsion Lab is part of a wider initiative to establish Jubilee Campus as a hub for zero-carbon innovation. In parallel, the university is launching a new Zero Carbon Innovation Centre, funded by East Midlands Freeport, in partnership with Loughborough University.
Shari Setayesh, Director of YMD Boon, said: “We are thrilled to be leading the design of this groundbreaking facility, which will drive innovation in sustainable propulsion technologies.
“Collaborating closely with the University of Nottingham and key stakeholders, we are creating a space that not only meets the complex demands of hydrogen research but also supports the transition to a cleaner, greener future. We are proud to continue our partnership with the University and look forward to the development of this project.”
Professor Chris Gerada, Professor of Electrical Machines and lead for strategic research and innovation initiatives at the University of Nottingham, said: “A new hydrogen lab for the East Midlands is a leap forward in establishing the region’s leadership in zero carbon innovation on the world stage.
“It is this region that has the right place, the right people, and the right technologies that industries need to achieve their decarbonisation ambitions.”
Construction of the Hydrogen Propulsion Lab is set to be completed by mid-2026. The facility is designed in collaboration with Turner and Townsend, GF Tomlinson, CPW, Derry Building Services, and Price & Myers.
Calls for Government to take a lead in strengthening cyber security
The British Chambers of Commerce is warning that businesses face increased cyber security risks without stronger engagement with government.
In a new report published today, the BCC is calling for ministers to:
- Carry out a cyber security awareness programme for businesses, particularly smaller firms
- Update the National Cyber Strategy
- Reform cyber security insurance to provide firms with better protection
- Address the shortage of UK cyber security professionals and support more training in all workplaces
- Engage directly with businesses to strengthen confidence in the UK’s digital infrastructure
Transformation of former bus depot into new neighbourhood gets funding boost
Proposals to transform a vacant former bus depot into a vibrant new neighbourhood are set to take a step forward as West Northamptonshire Council (WNC) is awarded vital funding to deliver the regeneration scheme.
WNC has been awarded £1.37m from the Government’s Brownfield Land Release Fund to develop Northampton’s St James Depot, a project which would provide more than 70 homes.
West Northamptonshire Council’s Cabinet will meet on 11 February to discuss the next phase of plans to breathe new life into this vacant site.
Built in the early 1900s, the 4.5 acre site was the home of Northampton’s tram and bus depot until its closure in 2013. Church’s bought the depot a year later so it could expand its operations, but it remained vacant and was bought by the Council in November 2023.
The Council has identified a need for quality housing in the area, but developing this site poses a range of challenges.
Asbestos and ground contamination, the flooding risk, and structural deterioration all need to be tackled before construction work can start, while any development must also retain the Grade II listed Transport Office, built in the 1930s. The funding requirements as part of the Brownfield Release Fund outline that the contract for these remedial works must be in place by 31 March.
Cllr Dan Lister, Cabinet Member for Local Economy, Culture and Leisure, said: “This redevelopment is a fantastic opportunity to transform a gateway site into Northampton Town Centre and it will complement the wider regeneration of our town.
“By revitalising the St James Depot site, we are not only preserving the historical significance of the Transport Office but also creating much-needed housing and boosting the local economy. We are committed to overcoming the challenges and delivering a project that benefits our residents and the wider community.”
If cabinet approve the proposals, the next steps will include:
- Transport Offices: The Grade II listed building will undergo a light strip out of fixtures and fittings, with asbestos removal where it does not impact listed features.
- Original Section of Tram Depot: The front and rear facades of the original building will be retained. Works will include an internal strip out and asbestos removal. Roof coverings will be removed, but the roof structure and internal walls will remain to support the facades.
- Bus Depot Extension: The mid to late 20th-century extension will be demolished. Hoarding will be reinstated to secure the site post-demolition.
Three banned for misleading investors over Derby development
Three people have been banned as company directors after they misled investors who paid more than £4m into a Derby city centre student accommodation development.
Fraser MacDonald was a director of Prosperity Cathedral View Development Ltd which was behind The Croft development on Cathedral Road before the company went into administration in 2020.
The 53-year-old was also a director of Prosperity Cathedral View NMPI Ltd, a company used as a fundraising vehicle to attract investors for the development.
In his role as Investor Relations Director, MacDonald allowed 42 investors to be misled when they entered into loan agreements with Prosperity Cathedral View NMPI worth a combined £4.13 million.
They thought their money would go into the Derby development, but instead more than £2 million was transferred to a connected company.
MacDonald, of Walkdale Brow, Glossop, Derbyshire, has been disqualified as a company director for seven years, until February 2032. The companies’ Chief Exec Gavin Barry, 49, and COO Edward Fowkes, 52, were both also disqualified as directors in 2021 for their roles in causing or allowing the investors to be misled in 2019.
Ann Oliver, Chief Investigator at the Insolvency Service, said: “Fraser MacDonald, Gavin Barry and Edward Fowkes allowed the continued promotion of an investment offer which was misleading to investors.
“Significant sums of money were invested by people who thought they had more security over their investments than they actually did.
“We also uncovered evidence that the three directors did not use all the funds borrowed for financing the development at The Croft development as they had promised.”
MacDonald has now been removed from the corporate arena until January 2032 and joins Barry and Fowkes in being barred from running, managing or promoting a company without permission of the court.
A total of 44 investments were made by 42 high net worth investors in the Derby scheme between January and July 2019. The highest individual investment during that period was £504,000.