Record vacancies highlight the historic hiring crunch facing firms
Rising economic inactivity, a deteriorating economic outlook and the financial squeeze on businesses from soaring energy bills are but a few of the problems for East Midlands businesses. But record vacancies, due to a shrinking workforce, is also crippling many businesses.
As BCC Head of Economics, Suren Thiru, points out:“While payroll employment rose slightly and the unemployment rate continues to fall, the headline figures continued to be flattered by significant underlying factors, including a shrinking workforce.
“Increasing vacancies highlights the historic hiring crunch facing firms. With rising economic inactivity confirming that lots of workers have seemingly quit the jobs market completely, severe staff shortages may remain a persistent drag anchor on economic activity.
“Although there was a rise in earnings growth, with inflation soaring, wages are still comfortably lagging behind price increases. If this continues as expected, real household incomes will be damaged further, stifling consumer spending, a key driver of UK economic output.
“Weakening consumer confidence may limit households’ willingness to support spending by running down savings built-up during Covid to offset declines in real pay.
“The deteriorating economic outlook and the financial squeeze on businesses from soaring energy bills and the national insurance rise risks weakening labour market conditions by dampening recruitment and limiting firms’ ability to increase wages and invest in their staff.
“More must be done to help people access rapid retraining opportunities for in-demand jobs, including assisting older workers to turn to more sustainable jobs. Introducing a new skills tax credit to incentivise employers to invest in training for workers would help to revitalise employer-led training.”
New East Midlands Manufacturing Network holds first local meeting
North Nottinghamshire is the first local network to launch under the new peer-led East Midlands Manufacturing Network.
More than 30 manufacturers attended its inaugural meeting at the NTU University Centre, at Vision West Nottinghamshire College in Mansfield, on 12 April.
It follows a regional launch event in March that attracted about 100 manufacturing businesses, and signals the advent of other networks in the Derbyshire Dales and High Peak, Leicestershire and Derbyshire local authority areas.
The role of the new East Midlands Manufacturing Network is to secure the future success of manufacturing in the region by bringing together key knowledge and skills to form a dedicated, supportive peer network.
Manufacturers are being encouraged to join, in order to:
· Share best practices and experience in a trusted peer environment;
· Focus on issues and challenges that are a priority for them and other manufacturing businesses;
· Better understand the financial support on offer for their manufacturing business;
· Tap into specialist consultancy and advice on regulation and compliance;
· Identify collaboration opportunities; and
· Gain peer support and education.
The network is being led by East Midlands Chamber and delivered by Qinesis – The Business Growth Company. It builds on the success of the Nottinghamshire Manufacturing Network.
Mark Goldby DL, non-executive director and ambassador for Qinesis, said: “It was truly a privilege to help kick off the first meeting of the North Nottinghamshire Manufacturing Network. There was a great mix of businesses and great debate around the common challenges we need to address within the sector. It bodes well for the networks we’ve established in other areas of the East Midlands, which will have their own launch meetings in May.”
East Midlands Chamber Deputy Chief Executive Diane Beresford added: “My thanks go to all who were involved in the North Nottinghamshire event, and to all who contributed to the discussions with such passion.
“The East Midlands is, unquestionably, a region with a strong manufacturing heritage and with the potential to have an equally strong future. I would encourage any manufacturer looking for support to get involved, and to gain valuable insight into the new technologies, resources and information on offer.”
The next local launches will take place as follows: Derbyshire Dales and High Peak on 13 May; Leicestershire on 17 May; and Derbyshire on 24 May.
Melton fulfilment firm records £6m turnover as it marks milestone birthday
Melton-based fulfilment specialist Hallmark Consumer Services has reported a year-on-year increase in annual turnover of over 10 percent to £6m, in the wake of increased demand from online retailers for its flexible fulfilment services.
Celebrating its 30th anniversary this year, the family-owned fulfilment company employs 70 people and provides a range of outsourced services including bespoke fulfilment, contract packing, direct mail, and logistics solutions.
Hallmark purchased its 40,000 sq ft headquarters in Melton in 2013 and has since invested in further extending its premises and capacity, most recently by adding an enhanced storage and shipping facility and further locations for carton picks to enable the company to expand the range and size of goods it handles for clients.
To facilitate the demand for its services, the company has also taken on a second site in Grantham, set to officially open this summer.
Commenting on the growth, Hallmark Managing Director, Philip Hall, says: “We’ve overcome many challenges in the last two years as a result of the pandemic and Brexit, but have managed to come out of the other side successfully and having secured several new clients.
“With the pandemic forcing retail companies to sell more of their products online, we saw demand for our services rocket. Fortunately, our business model and IT infrastructure are such that we can quickly scale our fulfilment services up or down in response to customer demand. It is this flexibility that our clients appreciate.”
Of Hallmark’s 30th anniversary, Chief Executive Chris Hall says: “When we first started out, I ran the business from my garage and focused on promotional sales fulfilment, before evolving into direct mail.
“We quickly expanded and over the years have taken on more and more units at the industrial estate where we are based in Melton. As E-commerce started to take off, our clients moved from printed catalogues to online shops, and this was the key driver for our growth.
“As a company, we have won numerous awards in recognition of our high level of customer service and innovation. But the biggest thrill for us is having such longstanding clients. We feel honoured that one of our clients has been with us for over 20 years.”
Philip adds: “We’re proud of the growth and development of our team and the fact we’re now one of the largest employers in the Melton Mowbray area. It means a lot to be able to contribute to the local economy and create jobs for people living locally.
“We’re looking forward to expanding our current site as well as launching our new facility in Grantham and continuing to enhance our service offering to help our clients to grow their businesses.”
22 East Midlands businesses revealed as winners in 2022 Queen’s Awards for Enterprise
More than 200 British businesses are celebrated today (21 April), as the winners of the 2022 Queen’s Awards for Enterprise have been revealed.
Businesses representing every part of the United Kingdom and a range of sectors have been recognised by Her Majesty The Queen on her birthday as among the best in the country. This includes 22 firms in the East Midlands.
Awards have been won in the categories of International Trade, Innovation, Sustainable Development and Promoting Opportunity.
The winners in our region include: For Innovation- Elcom Ltd
- Flexeserve, a trading name and brand of The Alan Nuttall Partnership Ltd
- Imagesound Limited
- NIMBUS: THE DISABILITY CONSULTANCY SERVICE LTD
- Peak NDT Limited
- Oncimmune Holdings plc
- Qdos Broker & Underwriting Services Limited trading as Qdos Contractor
- Ampetronic Limited
- Cellomatics Biosciences Limited
- DEA Aviation Ltd
- Diamond Hard Surfaces Ltd
- Donald Ward Limited T/A Ward
- Flair Flooring Group Ltd
- Imagesound Limited
- Logi-tek (UK) Limited
- Peak NDT Limited
- PR Marriott Drilling Limited
- Unimed Procurement Services Limited
- URBAN APOTHECARY LIMITED
- Plum Products Ltd
Thomas Ward, commercial director at Ward, said: “Winning the Queen’s Award for Enterprise for International Trade is a huge honour for the Ward team. Our core business, which represents around 80% of turnover, is the buying, selling, processing and recycling of ferrous and non-ferrous metals from a variety of sources, including end-of-life vehicles and arisings demolition projects.
“Over the three years to March 2019, thanks to significant investment in deep sea dock facilities and ongoing hard work of our dedicated teams, our overseas sales grew by 84%, a growth rate of 36% per annum. We were able to expand our export capabilities to service larger customers in Turkey, Egypt, India and Pakistan.”
Plum Products’ Managing Director, Paul Schaffer said that he was “extremely proud and honoured to receive the prestigious Queen’s Award.” He added: “From launching our first toy over 30 years ago to now, selling to more than 50 countries, it’s been quite a journey!
“Plum Play was set up to offer children toys that look great, are super safe and have that all-important fun factor. This award is a recognition of all our hard work and will increase opportunities for us to break into new markets and raise further awareness of the brand.”
Cellomatics’ CEO and founder, Dr Shailendra Singh, said: “It is an absolute honour to be recognised with the prestigious Queen’s Award for Enterprise and for our excellence in international trade, particularly on the year of the Queen’s Platinum Jubilee. “Cellomatics has continuously moved from strength to strength since our inception over six years ago. We’re proud to have successfully completed over 200 projects in collaboration with approximately 70 clients in the last six years, with between 10 and 15 new clients secured each year, and around half of our clients placing repeat business. This has translated into strong revenue growth from an expanding international and diversified customer base. “None of this would be possible without the dedication of our skilled team of scientists and our shared focus, vision, and ambition to constantly improve and deliver quality results for our growing network of clients. We’re also proud to be located at the heart of the UK in the East Midlands which is a hub for thriving life sciences businesses and CROs driving innovation on an international and global scale.” For Sustainable Development- Bambino Mio
- Collaborate and Innovate Ltd – trading as Cosy
Small Business Minister Paul Scully said of Bambino Mio’s win: “Companies like Bambino Mio are outstanding examples of the entrepreneurial spirit this country is renowned for. Today, we’re recognising the contributions they make to the East Midlands and the wider community by championing sustainable development.
“I congratulate all of this year’s winners for their hard work and commitment to producing innovative products and services and wish them every success in their future endeavours.”
Winners’ awards are valid for 5 years. Winners are permitted to fly The Queen’s Awards flag at their main office and use the emblem on their marketing materials. Winners are also given a Grant of Appointment (an official certificate) and a commemorative crystal trophy. Her Majesty’s Lord Lieutenants will be presenting the Awards to businesses locally throughout the year. Eligible businesses are free to apply for one or more categories. The winners pass a robust assessment process, judged by senior officials in Whitehall and experts from industry, academia and the third sector. On that basis, the winners of The Queen’s Awards for Enterprise are recommended by the Prime Minister to Her Majesty The Queen. Applications for the 2023 Queen’s Awards for Enterprise will open on 1 May 2022 and businesses are encouraged to apply.Metal recycling and waste management specialist wins Queen’s Award for Enterprise in International Trade
The Midlands’ largest independent metal recycling and waste management specialist has been honoured with a Queen’s Award for Enterprise for International Trade.
Donald Ward Ltd, trading as Ward, is one of 225 organisations nationally to be recognised with a prestigious Queen’s Award for Enterprise. Announced today (Thursday 21 April), Ward has been recognised for its excellence in International Trade.
Headquartered in Ilkeston, Derbyshire, Donald Ward Limited was incorporated in December 1976, although the business commenced trading circa 1940 at Woodville in Derbyshire. A fourth generation, independently owned family business, Ward now employs close to 400 people across its sites nationwide.
The company collects and processes around a million tonnes of materials annually; recycling products such as metals, plastics, glass, cardboard, wood, textiles, soils, and hardcore to ensure its customers fulfil environmental regulations and commitments.
It aims to divert 100% of the waste it processes from landfill and uses sophisticated metal sorting equipment to extract every last scrap of metal from end-of-life vehicles, as well as other waste electronic and electrical items.
Thomas Ward, commercial director at Ward, said: “Winning the Queen’s Award for Enterprise for International Trade is a huge honour for the Ward team. Our core business, which represents around 80% of turnover, is the buying, selling, processing and recycling of ferrous and non-ferrous metals from a variety of sources, including end-of-life vehicles and arisings demolition projects.
“Over the three years to March 2019, thanks to significant investment in deep sea dock facilities and ongoing hard work of our dedicated teams, our overseas sales grew by 84%, a growth rate of 36% per annum. We were able to expand our export capabilities to service larger customers in Turkey, Egypt, India and Pakistan.”
The company wins the Queen’s Award for International Trade for Outstanding Short Term Growth in overseas sales over the last three years.
Thomas continues: “We are planning sustainable growth with significant future investment into our people, processes, equipment and infrastructure. We are excited about the potential opportunities that winning the Queen’s Award could bring to help us achieve our long term ambitions.”
Now in its 56th year, the Queen’s Awards for Enterprise are the most prestigious business awards in the country, with winning businesses able to use the esteemed Queen’s Awards Emblem for the next five years.
Applications for Queen’s Awards for Enterprise 2023 open on the 1st May 2022.
When does creative accounting become fraud?
Creative accounting refers to accounting rules being bent, or questionable accounting judgements being applied in the preparation of financial statements. The term is used as an innuendo for poor accounting behaviour in organisations of all sizes.
Shareholders, managers and wider civil society as a whole are all users of financial statements – they use them to be informed about the activity of an organisation. The tax authority would like to see a company’s profit before tax, a labour union would be interested in the total wage cost of the firm compared to the prior year, and potential investors would like to track growth in revenues.
When creative accounting is applied, this can distort the picture shown to users of the accounts and can be considered financial statement fraud. False accounting is actually a criminal offence, as defined in the Theft Act 1968.
Why do people account creatively?
Accountants rarely employ creative accounting for the thrill or enjoyment of exercising power and control over the financial reporting of an institution. It is usually driven by pressure exerted on the accountants by senior management who wish to hit a specific financial target (or to not exceed a previous target by too much margin).
This pressure can be explicit or exerted indirectly on the accounting team, resulting in the accountants looking for any levers within their grasp that they could use to impact a reported result. This might include reassessing the valuation of large, judgemental provisions, or failing to accrue for a cost that has yet to be presented to the organisation as an invoice, but which has certainly been incurred.
When does creative accounting become fraudulent?
Creative accounting becomes fraudulent the moment it has a material impact on the financial statements. Given that creative accounting is used purposefully to impact the result, in practice, creative accounting is virtually always fraudulent. If it had no material effect then why would an accountant bother to employ it in the first place?
What should you do if you see creative accounting?
The correct thing to do in these cases is to report the fraudulent accounting to your line manager or in some cases the Board of Directors or an independent whistleblowing hotline. You should be afforded some protection as a whistleblower within an organisation but this has not been the case in reality. Some companies behave in a hostile manner towards whistleblowers.
As Withers Worldwide’s Meriel Schindler and Amarjit Kaur stated in a recent article, the “US Securities Exchange Commission offers whistleblowers money for reporting information that leads to a prosecution. More than $700 million has been paid to more than 100 individuals since the programme began in 2012.”
The concept behind the US initiative was to provide an attractive financial incentive to report fraudulent financial reporting, to encourage employees to not worry about retaliation from their employer. The money would provide financial security to the individual if they felt they had no choice but to change jobs to improve their working environment after the news broke.
Ultimately the act of reporting creative accounting is a matter of ethics, and all chartered accountants in the UK have subscribed to the ethics statement of their professional body stating that they will act professionally and ethically at all times.
806,000 sq ft of speculative logistics space let in Northampton to iForce and Hotel Chocolat
Panattoni, the logistics real estate developer, has fully let its 1.7 million sq ft logistics park in Northampton after signing lease agreements for the last two units with iForce and Hotel Chocolat.
iForce, the UK’s fastest growing e-fulfilment, carriage management and returns recovery provider, has signed a 10-year lease for a 376,915 sq ft facility at Panattoni Park Northampton and Hotel Chocolat, the premium British chocolatier and cacao grower, has signed a 10-year lease for a 429,107 sq ft facility.
These two lettings follow that to 4PX Express, the global logistics company, which signed a 15-year lease for a 250,000 sq ft facility in November last year, and the success of the first phase of 625,000 sq ft, which was pre-let to Eddie Stobart Logistics, owned by Culina Group.
All three buildings in the second phase were speculatively developed to a BREEAM rating of ‘Excellent’ and an EPC ‘A’ rating.
Oliver Bertram, development director at Panattoni, said: “Letting over 1 million sq ft to three different companies in just five months reflects the importance of Northampton as a logistics location and the attraction of the park to occupiers.
“We are experiencing high occupier demand for immediately available logistics space, which justifies our commitment to a major speculative development programme in the UK.”
Paul Thirkell, Managing Director of iForce, said: “iForce is absolutely delighted to have secured a new facility at Panattoni Park Northampton, which will help to facilitate the significant growth the business is experiencing.
“The location is of strategic importance within our network and located next to three other Culina Group warehouses, creating significant synergies across the group companies.”
Letting agents for Panattoni were Savills and Burbage Realty. iForce was advised by Roebuck and Hotel Chocolat was advised by Bidwells.
MBO set for UK’s largest family-owned bicycle distributor
Derbyshire bicycle supplier and distributor Moore Large has received an eight-figure funding package from HSBC UK to support the company’s growth.
The funding will contribute to a management buyout, which will see four members of the senior management team, to include Andrew Walker, Dale Vanderplank, Adam Biggs and Adam Garner, take over the running of the business after 50 years of ownership by the Moore family.
The move comes as chairman and Managing Director Nigel Moore begins his retirement after over 40 years at the helm.
The buyout will see the company enter its next phase of growth following a surge in demand for bicycles since the pandemic started. This has given Moore Large a kickstart as it looks to grow the business by 40 per cent over the next four years by focusing on developing its house brands, which include ‘ETC’ and ‘Forme’.
Nigel Moore, chairman and Managing Director at Moore Large, said: “After over 40 years leading the company, I’m excited to be retiring and entering a new phase in my life. The last few years at Moore Large have been particularly successful and now feels like the right time for me to hand over the company to the senior management team.”
Andrew Walker, commercial director at Moore Large, added: “The demand for bikes continues to increase and as our long-term financial partner, the funding from HSBC UK will greatly help to support the future development of Moore Large as the new board gears up for major growth.
“I’d also like to extend my thanks to David Nelson at PKF Smith Cooper, who has helped to facilitate the deal between the management and vendor.”
Graham Brown, relationship director at HSBC UK, said: “The demand for sustainable travel has increased heavily in the last few years, with cycling also offering many health benefits. We’re proud to be supporting the UK’s largest family-owned bicycle distributor with this buyout and its growth plans to drive demand for bikes around the country and help people make the switch to cycling.”
New jobs set for Nottingham as KAM Project Consultants opens office
KAM Project Consultants is further expanding as they move into Nottingham.
The new location will allow KAM to expand on its existing portfolio in the East Midlands where they are currently working on several high-profile projects.
The office will be headed by KAM co-founder and director, Mike Wilcock, and closely supported by senior associate, Mat Daley, and associate project manager, Nick Orton. Both colleagues are re-locating from KAM’s Leicester office, with a number of new colleagues joining in the coming months.
Mat Daley said: “The East Midlands industrial market has continued to thrive, with vast amounts of money going into new warehousing thanks to the region’s central position. The opening of the Nottingham office ensures KAM are best placed to support this growing demand and allow us to better serve both new and existing clients.
“With several of the Leicester team joining me on the move, I look forward to working alongside them to embrace new opportunities and strengthen KAM’s position as market leaders.”
Addressing the Nottingham opening, Mike Wilcock said: “We are delighted to be growing our presence and expanding our team of cost managers and project managers in the East Midlands.
“We have had great success over the last eight years delivering logistics, distribution and manufacturing facilities for both developers and customers across the UK and overseas. Opening an office in Nottingham is an exciting next step in KAM’s structured growth plan and we can’t wait to see what the road ahead brings.”
Former Freeths solicitor installed as new High Sheriff of Derbyshire
Derbyshire has a new High Sheriff who is promising to raise career aspirations of primary school pupils in the city and county.
Mike Copestake was recently installed during a ceremony at All Saints Church in Turnditch. The former corporate lawyer, who spent 26 years with solicitors Freeths, also wants to help charities that work with young people and support ex-offenders into work following their release from prison.
He said: “When I was vice-chairman of inward investment agency Marketing Derby, we would visit Cannes for the annual MIPIM; a major international property investment show. Most people thought it was a jolly but one of my proudest moments was when the Financial Times voted Derby – little old Derby – as having the best investment strategy in the world, ahead of Hong Kong and New York.
“But while this was an incredible honour, one of the biggest weaknesses in our city and in certain parts of the county is social mobility and a distinct lack of aspiration.
“The Enterprise for Education (E4E) scheme which was launched in 2014 by Derby City Council and of which I was chair until recently, does a brilliant job in helping inspire secondary school pupils with its mock interviews, career talks, and CV writing, led by manager Arshad Iqbal.
“However, through the E4E journey we came to realise that career aspirations start at primary school. The success of the London Challenge – a school improvement programme that went a long way in raising standards in the poorest areas in our capital – highlighted this and, starting with a visit to Cherry Tree Primary School in Chaddesden this month, I intend to visit as many primary schools as possible to hopefully inspire others.”
Mike hopes to visit 100 schools during his year as High Sheriff, where he will tell of a childhood ambition to become a firefighter and introduce youngsters to inspirational people from Derby and Derbyshire; people including Olympic gold medallist Hollie Webb – a former Turnditch Primary School pupil who also worked for HMRC – and ex-Alvaston Moor pupil Clive Lawrence, who grew up in a single-parent household and was awarded an OBE earlier this year for his services to education.
He has plans to become more involved with charities such as Safe and Sound, Enthusiasm and YMCA Derbyshire, who all work with young people, and the police youth engagement team. Mike is encouraging children and young people to enter the High Sheriff’s prestigious National Crimebeat Award for the most innovative and successful crime prevention projects carried out by young people.
Finalists will be invited to attend the National Crimebeat Awards Ceremony in London.
However, another passion for Mike is helping to transform the fortunes of others and following visits to Sudbury Prison in Ashbourne, he was inspired to help bridge the gap between ex-offenders leaving prison and finding employment.
According to the Centre for Mental Health, reoffending costs the economy somewhere in the region of £11 billion – but only 25% of men leave prison into some form of employment and the statistic for women in even lower at just 20%.
Mike, who is also a trustee for the Derbyshire Children’s Holiday Centre, said: “As a corporate lawyer, you get to talk to an awful lot of people. If you ask employers in Derby if they would take in a prisoner, most say yes they would.
“However, that doesn’t seem to be happening, so people leaving the likes of Sudbury and Foston struggle to find employment. I’d like to speak to more employers in the city and county – the likes of Trent Barton, Cosy and David Nieper have already agreed to help – about helping to unlock what it takes to get prisoners out of prison and into the working environment.”
It’s clear that Mike is on a mission to leave a lasting legacy following his year as High Sheriff; a role which has evolved over time and is a far cry from what it was initially intended to be.
Dating back to Saxon times, the role of the High Sheriff is to act as the sovereign’s representative in their county. The High Sheriff would previously wield extensive powers to maintain law and order, often demanding taxes from civilians.
Now, though, those taking up the voluntary role take an active role in making a difference. There are currently 55 High Sheriffs serving across England and Wales, who are also required to attend Royal visits to their county.
