Almost 3 in 4 financial services firms see staff training as top business priority
With businesses across the economy struggling to access people and skills, the majority of FS firms are putting upskilling and retraining staff (73%) at the forefront of future business strategy and transformation plans, according to the latest CBI/PwC Financial Services Survey.
Advances in technology & business transformation (69%) and achieving operational resilience (68%) were second and third most common priorities, respectively, for future strategy and transformation plans.
The survey of 78 financial services firms – conducted between 30 May and 17 June – found that 74% of firms are looking to upskill their existing workforce in response to disruption.
Regulation (71%), changes in customer preferences and behaviours (62%), acceleration in digital technologies (55%), and skills shortages (52%) were the top four trends said to be driving disruption in the year ahead.
Meanwhile, sentiment across the sector remained poor in the quarter to June – falling at broadly the same quick pace as the previous three months – despite business conditions remaining relatively positive and profitability growth accelerating (although business volumes were flat). Furthermore, headcount grew at its fastest rate since December 2019.
Looking ahead to the next quarter, FS firms expect business volumes to return to modest growth, while profitability growth is expected to slow. Numbers employed are expected to be broadly unchanged in the three months to September.
There was a modest improvement in investment intentions for the next 12 months (compared to the previous 12). Land & buildings and vehicles, plant & machinery investment intentions both firmed on the previous three months, while IT capital expenditure plans remain strong. Uncertainty about demand was the most common factor cited as likely to limit future investment.
Nearly half (48%) of all FS firms have initiatives to support consumer and/or commercial clients with the cost of living / cost of doing business. A further fifth (21%) of businesses said they were planning to set up initiatives in the future.
Rain Newton-Smith, CBI chief economist, said: “The erosion of business confidence seen in the last financial services survey has pulled through to this quarter, likely reflecting concerns about the impact of high inflation on the economy. With pressure expected to persist throughout the year, there’s a real need for government to press ahead with confidence-boosting measures now.
“Implementing a permanent successor to the highly successful super-deduction would help to crank-up investment levels and set the country on a path back to higher growth.
“One of the bright spots from the survey was FS firms’ commitment to upskilling and retraining. It’s encouraging to see so many firms put staff development at the heart of their business strategies – and that is sure to reap rewards in terms of recruitment and retention later down the line.
“It’s also welcome to see so many firms taking steps to support customers and business clients through the cost-of-living crisis. From improving access to finance and better financial education, FS firms have a range of tools to help households cope with rising costs.”
Isabelle Jenkins, leader of Financial Services at PwC UK, said: “With a fierce war for talent impacting the financial services sector, it makes sense that firms are putting retaining experienced staff at the top of their to-do list.
“That plus the 12 percent growth in employment, the fastest uptick since December 2019, proves that for CEO’s, building and maintaining their workforce is critical.
“In fact, our research with the Financial Services Skills Council from earlier this year showed that, reskilling, once seen as perhaps a nice to have, can create cost savings of up to £49,100 per employee compared to recruiting or making a role redundant, a significant sum, especially in light of the increasing headwinds due to inflation.
“So the business case is clear, however with half of the firms we spoke to admitting that time remains a barrier in delivering training, there remains a crucial shift that some businesses will need to embark on.
“What we are seeing through today’s results show that financial services firms are aware that the fundamentals have been reset, and the breadth of competition for well trained staff means that firms will need to ensure that they can offer the kind of culture, environment and purpose that will attract and keep the very best.”
Specialist cleaning company makes major acquisition
A business finance broker has helped fund a major deal in the specialist cleaning sector by providing a seven-figure structured finance package.
PMD Business Finance’s structured finance division has provided part of the funding which has allowed React Group Plc to complete its £8.5m acquisition of LaddersFree Ltd – an established business specialising in commercial window, gutter and cladding cleaning.
The deal enables Derbyshire-headquartered React Group to broaden its customer base and achieve further nationwide growth.
The AIM-listed company provides a wide range of specialist nationwide services including deep cleaning, decontamination, and hazardous waste removal for sectors including prisons, emergency services, industrial, highways, transport, technology, and hospitality.
Based in Exeter, LaddersFree has a network of over 300 service partners and counts established brands like Costa Coffee, Next, Lidl, Holiday Inn Express and Marriot hotels among its customers.
PMD Business Finance provided a £2.5m structured finance package to support the cash and shares deal. The deal team at PMD was led by structured finance directors Callum Bull and John Platt.
Commenting on the deal, Callum Bull, structured finance director at PMD Business Finance, said: “We’re proud to have supported this significant acquisition that will allow React Group to further diversify its service offering in the specialist cleaning market.
“LaddersFree has a highly scalable business model and can look forward to further significant growth through the additional investment and resources provided by React Group.”
Mark Braund, chairman of React Group, said: “This is our second major acquisition and one that represents our ambition to build a profitable, industry leading business through both organic growth and strategic acquisitions.
“LaddersFree has an established customer base and generates significant recurring business, which complements the highly specialist reactive cleaning service we already provide. We’re delighted to welcome the company and its excellent team to the group.
“We’re also incredibly thankful to Callum and John in the structured finance team at PMD Business Finance for their invaluable support. It’s been refreshing to deal with an intermediary that has such a clear understanding of the market and was able to guide us carefully through the deal process.”
Stars of cricket and business form new batting partnership
Two Nottingham stars of sport and software have announced a new partnership, as local business Ideagen becomes the official sponsor of Trent Rockets and England all-rounder Natalie Sciver.
Speaking about the new relationship, Ideagen CEO, Ben Dorks, said: “Nat perfectly personifies Ideagen as a business – she’s an innovator, she’s widely regarded as one of the best in the world and is a superb all-rounder who has achieved things no-one has ever done before.
“The clarity of strategic thinking and tremendous quality of execution displayed by Nat absolutely aligns with Ideagen as a business. We’re immensely proud that our name will be on her bat this season and can’t wait to see her in action for Trent Rockets and England.”
The Ideagen branded bat has already had a successful first outing with Nat scoring her maiden test century in against South Africa in Taunton last week.
Speaking about the deal Nat said: “I’m really excited for the year ahead and delighted to have Ideagen on board. They’re a global company but have really strong community focus and are active supporters of youth and women’s sport.”
Currently at the height of her game, Nat is the top all-rounder in the International Cricket Council’s One Day International (ODI) rankings and second in its batting rankings, closely behind Australia’s Alyssa Healy.
Similarly, Nat is classed as second top all-rounder and the highest placed England player in the batting rankings for Twenty20 (T20). Her excellent maiden test-match century also secured her a nomination for the ICC Women’s Player of the Month for June 2022.
Nat is also one of the faces of BBC Sport’s “We Know Our Place” campaign, which champions female talent in sport, showcasing the phenomenal progress made in recent years to challenge outdated perceptions.
She was the first cricketer for England to take a hat-trick in a Women’s T20 International match and has a shot “The Natmeg” – named after her when she hit a cricket ball through her legs during a game.
Ben continued: “Ideagen provides software solutions that protect organisations, where safety, quality and compliance are important. Like Nat, we are reliable, consistent and can be trusted to deliver. We truly share Nat’s innate drive to keep improving and evolving, achieving new levels of success while having a positive impact on the world around us.”
Beyond its software solutions, Ideagen has a commitment to community, having launched its Think Big initiative in November last year. Working with young people in education, the programme is designed to boost career prospects in technology and to help bridge the digital skills gap. Ideagen is also a sponsor of Nottingham Forest’s academy and Forest Women’s development squad.
Ben added: “We have plans to roll out Think Big globally and it would be fantastic to get a role model like Nat involved – cricket calendar allowing!”
East Midlands marketer welcomes Business Gateway campaign on neurodiversity
A Loughborough-based marketing manager has lent his support to a campaign to highlight the benefits of employing people who are neurodivergent.
Barry Aldridge, who is himself neurodivergent, works at Flotec Industrial where he uses his condition to create new ideas, bring a different perspective and energise his workplace.
Barry has shared his story with the Business Gateway as part of their campaign to highlight the fact that people with a neurodivergent condition such as dyslexia, dyspraxia, attention deficit hyperactivity disorder (ADHD) and autism can be valuable assets to a business, particularly when challenging times mean different types of thinking are needed.
Barry explained: “From an early age I could tell that my classmates considered me to be different. I always had a sense of humour and my comedy routines always made people laugh. But I could also draw and design to a very high standard and that’s something that I still use in my marketing role today.
“When I was younger, I absorbed myself in reading and very often felt far too shy to join in conversations. It felt confusing. I enjoyed being the centre of attention but was also enclosed and introverted. When reflecting on my school life, I don’t think that conditions such as autism, ADHD, dyslexia, or dyspraxia were at all recognised.
“In adult life, I have found coping mechanisms and know which social situations I enjoy, and which ones are best to avoid. I have had to overcome negative comments in my career, but on the flipside, a colleague once told me that I am special, unique and have a wonderful mind. At Flotec I’m appreciated for my energy, ideas and creativity.”
Chloe Smith, purchasing executive for Flotec Industrial Limited, added: “Barry’s neurodivergent way of thinking brings really creative ideas to life which not only promotes our company and its products but humanises us as a team where Barry communicates our stories and successes to the world.
“One great example is the recent #sharetocare campaign where Barry invited employees to raise awareness about charities and good causes which are important to them and provided a marketing platform and voice for us to raise awareness to an external audience.”
Rachel York, manager of the Business Gateway, concluded: “This year we have a special focus on neurodivergence and disability in terms of the benefits they can have on Leicestershire’s business community when it starts to understand more about these issues.
“The so-called ‘purple pound’ (the spending power of the UK’s disabled community) is worth £249 billion each year so we want to help businesses get a share of that. Neurodivergent people bring ideas, creativity and a different perspective which is what we need now more than ever. Our own team includes a person with ADHD and we’re encouraging other businesses to appreciate neurodivergent people for the benefits they can bring.”
You can read Barry’s blog at the Business Gateway website: www.bizgateway.org.uk/news
If you are a neurodivergent person working in Leicestershire and would like to share your story, please contact the Business Gateway team: peter.allen@bizgateway.org.uk
Barclays Eagle Lab to open at DMU
Ambitious entrepreneurs and SMEs will be able to access advice and support to scale up and innovate thanks to a new partnership between De Montfort University Leicester (DMU) and Barclays Eagle Labs.
A new Eagle Lab will open in DMU’s Innovation Centre on campus later this year, offering co-working spaces, mentors, business advice and events. It will be the first Barclays Eagle Lab in the East Midlands.
The Barclays Eagle Lab network is one of the largest co-working and incubator networks for start-ups and scale-ups in the UK. They aim to help entrepreneurs and businesses collaborate, innovate and grow.
Today (Wednesday July 6) DMU and Barclays are set to host a VIP networking event to welcome key players from Leicester’s entrepreneurial networks to find out more about the Eagle Lab and how it will link up with the city’s current offers for businesses.
Last year, Leicester was named one of the most popular cities in the UK to be an entrepreneur after figures showed there were some 5,345 new businesses registered in the city – a rise of 72% on the previous year.
Vice-chancellor Katie Normington said: “We are proud to have the region’s first Eagle Lab here at De Montfort University. We know there is so much entrepreneurial talent in Leicester who will benefit from the expertise of the Barclays team as they scale up their businesses.
“At DMU we are committed to driving forward a culture of collaborative innovation and we are excited to see this addition to Leicester’s thriving entrepreneurial ecosystem.”
John Corbett, head of SME for Central England at Barclays, said: “We are excited to be partnering with De Montfort University to extend the support offered by Barclays Eagle Labs to entrepreneurs in Leicester and the surrounding East Midlands area. Barclays Eagle Labs is committed to supporting entrepreneurs and has a mission to inspire and educate ambitious founders and start-ups across the UK to help them succeed.”
Businesses will be able to access banking experts, a network of co-working spaces, mentors and learning tools, as well as events and growth programmes for ambitious entrepreneurs and businesses.
It will operate alongside DMU’s existing Innovation Centre, which is home to tenants, a co-working space and The Crucible, the university’s business incubation programme for final-year students, alumni and SMEs which offers masterclasses and training.
Details of the opening date and events will be announced nearer the time.
Northamptonshire firm acquired by international manufacturer of customised electronics
discoverIE Group, an international designer and manufacturer of customised electronics for industrial applications, has acquired Northamptonshire-based CDT group.
CDT, which is a designer and manufacturer of customised plastic enclosures for circuit boards, membrane keypads and associated electronics components, has been acquired for a total cash consideration of £5m on a debt free, cash free basis, before expenses, funded from the group’s existing debt facilities.
CDT will be integrated with the group’s Contour business cluster within the Sensing & Connectivity division, whilst retaining its distinct brand identity. The acquisition will enhance the cluster’s engineering capabilities, further integrating custom electronic designs with their enclosures, enabling more highly differentiated opportunities. Its main markets are medical, renewables, emergency vehicles and industrial companies.
The business, which was resilient through COVID, reported revenues for the year ended 31 December 2021 of £2.9m generating an underlying operating profit of £0.8m and an underlying operating margin of 28%.
Nick Jefferies, group Chief Executive of discoverIE, said: “The acquisition of the CDT group continues our strategy of building a high quality, higher margin international group that designs and manufactures customised electronics.
“CDT will be integrated with our existing Contour business enabling more complex and integrated designs as well as providing CDT with access to our wider base of customers and with it, new sales opportunities. We are delighted to welcome CDT and its employees into the group.
“With a clear strategy focused on long-term, high quality growth markets, a diversified customer base, a strong pipeline of acquisition opportunities, the group is well positioned to make further progress on its key priorities.”
Cawarden snaps up final sponsor spot at the East Midlands Bricks Awards 2022
Cawarden has completed the sponsor line up for the East Midlands Bricks Awards 2022, supporting the Excellence in Design category.
Speaking with Business Link, William Crooks, Managing Director of Cawarden, said: “Cawarden was crowned the Contractor of the Year at the 2021 East Midlands Bricks Awards and we are excited to be returning as a category sponsor. We are backing the Excellence in Design award – helping to recognise others for their hard work over the last 12 months.
“As a specialist demolition engineering contractor, we work closely with developers to clear the way for new schemes. It’s great to be able to play our part in regeneration projects throughout the UK, not least in our home city of Derby. Whilst we enjoy demolishing buildings, we also love to see new buildings going up, breathing new life into places and meeting the needs of the communities that use them.
“The Bricks is a real showcase for the regional property and construction sector. We thoroughly enjoyed last year’s event which provided an opportunity to catch up with some familiar faces as well as meet new ones with the wonderful Trent Bridge Cricket Ground as a backdrop.
“This award is an exciting opportunity to recognise the developers who have shown originality in design excellence.”
The awards, which will take place on Thursday 15 September at the Trent Bridge Cricket Ground, celebrate the outstanding work of those shaping the landscape of our region, recognising development projects and people in commercial and public building across the East Midlands – from offices, industrial and residential, through to community projects such as leisure schemes and schools.
Nominations are now OPEN for East Midlands Business Link’s annual Bricks Awards.
To submit a business or development, please click on a category link below or visit this page.
“The Bricks is a real showcase for the regional property and construction sector. We thoroughly enjoyed last year’s event which provided an opportunity to catch up with some familiar faces as well as meet new ones with the wonderful Trent Bridge Cricket Ground as a backdrop.
“This award is an exciting opportunity to recognise the developers who have shown originality in design excellence.”
The awards, which will take place on Thursday 15 September at the Trent Bridge Cricket Ground, celebrate the outstanding work of those shaping the landscape of our region, recognising development projects and people in commercial and public building across the East Midlands – from offices, industrial and residential, through to community projects such as leisure schemes and schools.
Nominations are now OPEN for East Midlands Business Link’s annual Bricks Awards.
To submit a business or development, please click on a category link below or visit this page.
Award categories include:
- Most active estate agent
- Commercial development of the year
- Responsible business of the year
- Residential development of the year
- Developer of the year
- Deal of the year
- Architects of the year
- Excellence in design
- Sustainable development of the year
- Contractor of the year
- Overall winner
Find out who last year’s winners were here.
Thanks to our sponsors:
Book your tickets now
Tickets can now be booked for the awards event – click here to secure yours. The special awards evening and networking event will be held on 15 September 2022 in the Derek Randall Suite at the Trent Bridge County Cricket Club from 4:30pm – 7:30pm. Connect with local decision makers over canapés and complimentary drinks while applauding the outstanding companies and projects in our region. The event will also welcome John Forkin MBE DL, Managing Director at award-winning investment promotion agency Marketing Derby, as keynote speaker. Dress code is standard business attire.
To be held at:
Trading “encouraging” at Topps Tiles despite continuing headwinds
Group sales are up at Topps Tiles, the Leicester-based tile specialist, according to a trading update for the 13-week period ended 2 July 2022.
The business’s third quarter has seen group sales rise 9.2% year on year, which includes the benefit of a full quarter of trading from Pro Tiler Tools.
The company said that it has continued to perform well in the third quarter, with like-for-like sales up 2.9% over the period. However, in the most recent eleven weeks, where the comparative period in FY21 was not impacted by trading restrictions, like-for-like sales were 0.9% lower when compared to a “very strong” period of trading last year.
Sales, margins and operating costs remain in line with Topps Tiles’ expectations.
Rob Parker, CEO, said: “Despite the continuing headwinds from lower consumer confidence, supply chain challenges and high inflation, trading remained encouraging and in line with our expectations in the third quarter, with Group sales up 9.2%.
“Sales per store in Topps Tiles remain significantly ahead of our pre-pandemic performance, Commercial and Pro Tiler Tools are growing well year on year, and we have successfully launched our newest brand, Tile Warehouse.
“Whilst we are mindful of the current economic pressures and their impact on the outlook for consumers, we are confident that our successful strategy, multiple growth drivers and strong balance sheet leave us well-positioned to deliver medium term growth and our 20% market share goal of ‘1 in 5 by 2025’.”
£5m Low Carbon Innovation Hub to transform green charging and testing at MIRA Technology Park
Plans have been approved for a £5m green infrastructure project linked to a Low Carbon Innovation Hub that will support tech companies as they focus on developing low carbon technologies.
Funding has been agreed which will transform an existing building at MIRA Technology Park into a low carbon research centre, bringing with it transformational charging and testing infrastructure for electric and hydrogen vehicles.
The investment will be made through a partnership between the Leicester and Leicestershire Enterprise Partnership (LLEP), Hinckley and Bosworth Borough Council (HBBC) and site owner MIRA Technology Park.
The new Low Carbon Innovation Hub will entail the £2.5m refurbishment by HORIBA MIRA of the existing technology building, which fronts the A5.
This will be supported by a £2.5m investment from the LLEP and HBBC in the installation of significant electrical vehicle (EV) and hydrogen infrastructure to aid safe testing and handling of EV and related systems at the Leicestershire Enterprise Zone site.
The charging infrastructure will help engineers and scientists on the site to further research and development around battery development, hydrogen fuel cells and other low carbon and alternative fuel technologies.
The £2.5m LLEP investment in the low carbon infrastructure leverages the delivery of the Innovation Hub, thereby attracting a growing number of players in the transport sector which are developing low-carbon technologies.
LLEP Interim Chair Andy Reed OBE said: “The Low Carbon Innovation Hub supports the LLEP’s goal for coming years of supporting economic growth through sustainability and innovation.
“The site offers world-class facilities to the mobility sector. Projects such as this will help it continue bringing in employers and creating quality jobs while also supporting wider low carbon testing and development.”
A planning application for the project has now been approved by HBBC.
Derby shortlisted to become the new home of Great British Railways
Derby has taken a step closer in its bid to becoming the new home of Great British Railways (GBR).
The city is one of 6 to be shortlisted from 42 expressions of interest from towns and cities across the nation keen to be the HQ location for the new organisation created to deliver a simpler, better railway for everyone in Britain. The other shortlisted cities are Birmingham, Crewe, Doncaster, Newcastle and York.
Great British Railways will be the new public body responsible for running Britain’s railways. It aims to deliver the most ambitious changes to our railways in a generation, working with the Government, across the rail sector and beyond.
In October last year, the Secretary of State for Transport Grant Shapps announced a competition to find a location for the GBR headquarters outside of London.
Historical ties with railways and good train connectivity to other places were among the criteria used to decide the shortlist. As the centre of Europe’s largest rail cluster, Derby is a front runner in the competition.
There will now be ministerial visits to all the locations on the shortlist followed by a non-binding but influential public vote to measure the level of public support for each location. The public vote closes on 15 August, 2022. The result will be considered as part of final decision making and the winner will be announced later this year.
Councillor Chris Poulter, leader of Derby City Council, said: “We’re absolutely delighted that Derby has been shortlisted to become the new home of Great British railways. This shortlisting is a testament to the hard work of our team, alongside our key rail partners based across the city – we couldn’t have done it without them.
“As well as having a long 180-year plus rail history, what sets us apart is we remain home to a thriving rail ecosystem – Europe’s largest rail cluster.
“I’m thrilled that Derby’s rail credentials are being recognised by the Government.”
GBR will integrate the railways across the country, owning the infrastructure, collecting fare revenue, running and planning the network, and setting most fares and timetables.
Derby’s bid already has the support of councils across the East Midlands including Derby, Derbyshire, Nottinghamshire, Nottingham, Leicester and Leicestershire, representing over three million people from across the region.
Dozens of businesses from within the rail sector and beyond are also backing Derby’s bid to be the home of Great British Railways. East Midlands Airport, East Midlands Railways, Sperry Europe, Costain, Deutsche Bahn ESG, Toyota, Loram, Serco, Derby College Group, Resonate, Train FX, Alstom and the University of Derby are just a few of the East Midlands organisations that have endorsed Derby’s bid.
Will Rogers, Managing Director, East Midlands Railway, said: “We are proud to support Derby’s bid to become the new home of Great British Railways and welcome their inclusion in the national shortlist. Derby is our home, an historic centre of railway excellence and well located in the heart of the Midlands, providing excellent transport links to towns and cities across the country. We look forward to the public vote, formal visit and the opportunity to showcase why Derby would make an excellent home for Great British Railways.”
Kate Martin is deputy principal at Derby College Group (DCG) whose estate includes the iconic Roundhouse in Pride Park – part of the former loco works. She said: “The shortlist announcement is great news for Derby. As the city’s FE college with strong employer and curriculum links to the rail industry, we are fully behind Derby’s bid to bring the headquarters of Great British Railways to the city. This will create high quality jobs for many, including our alumni, and act as a catalyst to further inward investment.”
Richard Kelly, Managing Director at Loram, said: “Loram is delighted to back Derby’s bid for the new headquarters of Great British Railways. Our US parent company made a conscious decision to base Loram UK in Derby, which is at the heart of the railway. With unrivalled access to a dynamic and diverse supply chain, as well as a highly skilled talent pool, it makes perfect sense to base GBR in this City.”
Justin Stroud, Managing Director, Europe at Sperry Rail said: “Derby is the location of Sperry’s European Headquarters because of its connectivity. After 20+ years of conducting very successful business from Derby, I would personally say GBR would be mad not to use the centre of the United Kingdom as the location to grow the Great British Railway.”
Professor Kathryn Mitchell CBE DL, vice-chancellor at the University of Derby, said: “It is fantastic news that Derby has made the shortlist and we are delighted that the University of Derby is a partner in this important bid. Through our Rail Research and Innovation Centre we support collaborative research and innovation projects, helping to modernise the railway through digital and low carbon solutions. We are also ideally placed to provide the key skills needed to support the anchor employers and supply chain, as well as business support dedicated to the rail and transport sector that will enable growth and create more jobs in the region.”
Michael Hulme, site engineering director at Alstom, said: “As the UK’s leading designer, builder and maintainer of trains, we’re proud to call Derby home. The city has been building trains for Britain and the world since 1839 and continues to do so today. We’re delighted to support the city’s bid.”
Councillor Chris Poulter continued: “This is a fantastic boost for Derby, and we urge all residents, businesses and stakeholders from across the whole of the East Midlands to take the time to back the bid and vote for Derby.”
You can vote for Derby online.
