2022 Business Predictions: Ann Bhatti, head of Connect Derby
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Ann Bhatti, head of the Connect Derby managed workspace scheme.
2021 was another challenging year for businesses, with the pandemic still having a significant impact on employers and employees. After the two lockdowns earlier in the year, many businesses returned to their workplaces in some form, which brought back a sense of normality.
I believe the managed workspace sector will continue to thrive and expect many businesses to maintain a hybrid working model throughout 2022. Hybrid working offers people more balance and control over the quality of their personal and professional life, which I hope will result in a happier and potentially more productive staff.
We are about to launch a new hybrid office offer at Connect Derby workspaces, which will enable business to have an office base for up to three days a week.
Although hybrid working is definitely here to stay, I believe the need for traditional offices will always exist and we have seen a continued demand for these spaces during the pandemic.
For the period from April – December 2021 Connect Derby let 24 offices to new businesses and a further 12 offices are under negotiation. Six existing tenants have relocated to larger offices.
The pandemic has been a catalyst for new innovations, forcing businesses to think and work smarter and develop new products and services to meet the changing needs of their customers.
Businesses are starting to realise the reason they had offices in the first place was to have their team all physically in one place to bounce ideas off each other, meet other likeminded businesses, improve communication and productivity. It is only a matter of time before they start to miss this and venture back out.
In the coming year, businesses will need to increase their efforts to monitor the health and welling of staff, especially those who have worked remotely for a significant period.
2022 Business Predictions: Chris Lowe, Managing Director at Kimberley – The Caravan and Motorhome People
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Chris Lowe, Managing Director at Kimberley – The Caravan and Motorhome People.
During the past 12 months the pandemic has definitely brought to light the holiday opportunities and escapism offered by caravans and motorhomes. The alternatives to foreign travel has amplified the necessity for the holiday industry to offer up extra camping and caravanning opportunities in and around the UK, with pop-up campsites in particular becoming a go to for young families needing an affordable getaway.
With the ability to explore the outdoors and get back to leisure activities, bookings for outdoor holidays have increased by as much as 273 per cent compared to two years ago.
The new market size for leisure vehicles has grown significantly since the UK lockdown ended. The current prediction is around 16,000 new units produced, up from 14,000 18 months ago, which is a 15 per cent increase. However, without the current supply chain issues and manufacturer production capabilities, it is expected that this figure would have been even higher.
With a new variant of the coronavirus at the fore, many consumers will be considering what this means for spring-time pursuits, whether they are retirees looking to travel, or parents hoping to entertain the kids during half-term and Easter.
Therefore, my first prediction is that the ability ‘self-contained’ caravanning units bring will continue to be ever pertinent in 2022 for both the older generation (who have been especially cautious due to the increased risk that the virus poses to them) and for families hesitant that they no longer wish to travel overseas and potentially lose money if more restrictions could be enforced early on in the year.
Likewise, a motorhome symbolises retirement with the freedom to go wherever you like, whenever you like. The coronavirus has pushed forward many people’s desire to retire, and we expect an increase in the desire for one vehicle such as a motorhome or campervan rather than a car and caravan combination because they are easier to drive and quicker to move from a pitch.
With a planned retirement pot of 25 per cent allowed to be taken tax-free once you’re 55 years old and current interest rates being so low, this has provided a good sum for people to consider investing into a vehicle that will provide years freedom to explore areas of the UK and Europe that may previously have been out of reach.
Social media is amplifying the freedom and cost savings that DIY van conversions are bringing, while younger generations and couples have been attracted to compact vehicles that bring a community feel. A smaller vehicle also means these are most financially viable as they can be used as commuters for the everyday trips we make. You only need to look at Instagram to see the small camping communities forming. There are over 286,000 posts tagged with #camperconversion alone, and I predict this will continue to rise in 2022.
Finally, there is no question that relaxation through hobbies and vacation will better support our mental health. Google’s ‘A Year in Trends’ recently reported that ‘how to maintain mental health’ was searched more globally than ever before and often a van conversion or any compact motorhome can facilitate the ability to getaway for our own mental wellbeing. With this in mind, it is predicted that more buyers will choose these types of vacations moving during 2022 as it will benefit their agenda to explore new surroundings and presents the opportunity to experience new lifestyles, such as rambling, golf, fishing and cycling much more easily.
Student accommodation manager acquires Nottingham development site
Unite Students, the owner, manager and developer of student accommodation, has acquired a consented 270-bed development site in Nottingham city centre.
Total development costs for the scheme, which will open for the 2024/25 academic year, are estimated to be £34 million.
Unite already owns and manages c.1,900 student accommodation beds in Nottingham with a further 970 beds to be added in the city across the new city centre site and the company’s 700-bed consented development at Derby Road, due for delivery in 2023.
The development will increase Unite’s presence in Nottingham city centre, adding to Curzon House, which was acquired as part of the Liberty Living portfolio in 2019.
The newly acquired site is on Lower Parliament Street in the heart of the city centre, close to Nottingham Trent University’s campus as well as the University of Nottingham’s planned city centre campus development for final-year and postgraduate students.
Nick Hayes, group property director of Unite Students, said: “Through this opportunity we are able to cater for the increased number of students wanting to attend the University of Nottingham and Nottingham Trent University, both located in a growing regional city.
“This commitment increases our secured pipeline to over £800 million, its highest ever level, and we continue to see opportunities to add further schemes in London and prime regional markets at attractive returns.”
Record number of listed companies cite supply chain and rising costs in profit warnings in 2021
The number of profit warnings issued by East Midlands-based listed companies decreased by 45% in 2021 compared to 2020, although supply chain disruptions and rising costs are set to continue to challenge businesses in the region, according to EY-Parthenon’s latest Profit Warnings report.
In total, East Midlands listed businesses issued 17 profit warnings in 2021, compared to 31 in 2020, with a 40% decrease in warnings issued in Q4 2021, compared to Q3.
Nationally, however, profit warnings issued by UK listed companies increased by 19% year-on-year in Q4 2021. In the final quarter of 2021, UK listed companies issued 70 warnings, up 19 from the 51 issued in Q3, with a record 44% blaming supply chain disruption (compared to just 2% between 2009 and 2019), and a further 27% citing rising cost pressures.
In total, 203 profit warnings were issued in 2021, down from the record-breaking 583 warnings witnessed in 2020 and the second lowest by number since EY began tracking warnings in 1999. The low total is due to the strong post-lockdown rebound and exceptionally low levels of profit warnings in the first half of the year, which gave way to extensive supply chain disruption and rising costs in the second.
Dan Hurd, EY Parthenon UK&I Turnaround and Restructuring in the Midlands, said: “Sporadic growth made it a difficult year for many companies to navigate, despite healthy headline figures. By the second half of the year, an increasing number of companies nationwide were issuing profit warnings as forecasting and earnings challenges evolved and multiplied.
“After a challenging time in 2020, listed businesses located in the East Midlands saw a reduction in the number of profit warnings issued. The retail, construction and materials, and industrial support services sectors continued to be among the most severely affected by the global pandemic and Brexit uncertainty.
“Regional business faced new challenges, including supply chain disruptions and changes to labour market conditions. These affected business resilience and investor decision-making throughout the year, albeit at a lesser rate than 2020’s challenges.
“In the next 12 months, businesses may choose to continue to delay and alter their investment decisions and preserve cash. They could also look again at internal structures and further business transformation projects.”
EY-Parthenon’s report found that one-in-five listed consumer-facing companies issued a warning over the last year. The most affected sectors were FTSE Aerospace & Defense with 57% of companies issuing a warning in 2021, followed by FTSE Personal Care, Drug & Grocery Stores (39%) and FTSE Retailers (34%), all of which were all affected by supply chain headwinds in the second half of the year.
However, not all profit warnings were due to supply chain issues. The FTSE Software & Computer Services sector issued 11 warnings in H2, the joint highest for any sector along with FTSE Retailers.
Dan Hurd continued: “Nationally, the biggest driver of warnings in 2022 is likely to be the rise in inflationary pressures and its impact on disposable incomes and margins. We have already recorded profit warnings relating to rising energy prices. Labour shortages and wage increases are also beginning to feature more in company concerns, especially in logistics, hospitality and healthcare – including care homes.”
He added: “We expect to see more restructuring activity in 2022 as the last government support measures fall away and businesses feel the full force of, not only economic and structural pressures, but the increasing focus on Environmental, Social, and Governance (ESG) metrics, as funders increase their focus on supporting ‘sustainable’ businesses. The ability to demonstrate purpose and long-term value has never been so vital.”
Retail sales rebound but challenges ahead
The reopening of the economy post-lockdown led to a rebound in sales for FTSE Retailers but also created significant cost and supply chain issues in the run up to Christmas. In what is traditionally known as the ‘golden quarter’, all seven FTSE Retailers’ warnings cited these pressures. In total, 34% of FTSE Retailers issued a warning in 2021 (21 warnings in total) with over 70% of sector warnings in H2 2021 coming from online retailers.
Despite this, most retailers still experienced a successful Christmas trading period – data from the British Retail Consortium shows that non-food sales in December 2021 were 2.2% higher than 2019. However, the predicted consumer income squeeze in 2022, the rebalancing of spending from goods back to services, and the constant need to adapt to changing consumer behaviour will pose new challenges.
Silvia Rindone, EY UK&I Retail Lead, said: “Whilst supply chain issues are likely to continue this year, the biggest unknown for the retail sector in 2022 is how much consumers will spend and what they’ll spend it on. EY’s latest Future Consumer Index, which has been tracking consumer behaviour since the start of the pandemic, revealed the increasing desire of consumers to find a balance between sustainability and affordability. Consumers now rank planet and cost equally in terms of priority. These factors combined will make 2022 a tough year to navigate. To be successful, retailers will need clear strategic direction paired with strong operational and financial agility.”
Silvia added: “We have yet to see any major wave of retail restructurings, but there are certainly retailers that would have failed in the last two years without government assistance – even in the absence of COVID-19. The end of the rent moratorium in March removes the final layer of government support and it will be interesting to see how the arbitration process plays out – and how other stakeholders react to any increase in sector distress.”
Elsewhere, travel and hospitality sectors faced another challenging year, starting with a lockdown and ending with the Covid-19 Omicron variant. The hospitality sector also faced continued staffing problems, compounded by Brexit’s impact on the labour market. However, despite these challenges, just 16% of FTSE Travel & Leisure companies issued a warning in 2021 reflecting the positive impact of government support, as well as the sector’s management of its operations and investor expectations.
Looking ahead, pent-up demand for summer holidays together with record levels of personal savings make for a positive outlook for the sector. However, pressure on consumer incomes, the slower return of international business travel and the impact of cost rises could hinder the sector’s recovery in 2022.
North Notts site back in the running to host ‘world’s first’ fusion power station
An existing coal-fired power station has been brought off a reserve list to make it into the final five sites in the running to host what is hoped to be the world’s first commercial fusion power station.
The ambitious project – Spherical Tokamak for Energy Production – known as STEP, is being led by the UK Atomic Energy Authority (UKAEA).
Reacting to today’s government decision that West Burton A, near Retford will now replace Ratcliffe-on-Soar power station on UKAEA’s shortlist of potential sites to host STEP, Nottinghamshire County Council leader Ben Bradley MP said: “While we would have loved to have two local sites on the shortlist, the future of the Ratcliffe-on-Soar site as a whole is still looking very bright.
“It is earmarked as one of the three main sites for attracting investment and growth under ambitious plans led by the East Midlands Development Company. The vision is for it to become a hub for technology, advanced manufacturing and energy.
“So all-in-all this is still a positive result for Nottinghamshire having West Burton A now included in the final five.
“We have a proud heritage of producing energy – especially in the north of the county – which helped power the industrial revolution, but looking to the future, we want to be at the heart of the UK green energy revolution.
“As global energy demand continues to grow, this technology is expected to play a crucial role in helping to achieve net zero emissions – in a safe and sustainable way.”
Councillor Keith Girling, chairman of the county council’s Economic Development and Asset Management Committee, added: “Achieving STEP would be a massive achievement and bring more growth and investment, particularly to the north of the county.
“It would create thousands of new skilled jobs and lucrative opportunities for local suppliers.”
Nottinghamshire County Council coordinated this nomination process for the county working with several partners, including the landowners of these sites as well as Rushcliffe Borough Council and Bassetlaw District Council.
Henry Brothers hands over new police and fire service headquarters
Contractor Henry Brothers has delivered a new joint headquarters for Nottinghamshire Police and Nottinghamshire Fire and Rescue Service.
The three-storey building at Sherwood Lodge in Arnold, Nottingham, contains shared office space, conference rooms, a new multi-agency strategic and tactical control room, a new police control room, new training classrooms, a sports hall, gymnasium and canteen.
Other key features include the completion of a new circular access road, the installation of an outdoor exercise trail for staff and a joint memorial garden dedicated to the memory of staff from both organisations who have died in service.
The building was constructed on time and on budget by lead contractor Henry Brothers Limited – despite all the work taking place during the pandemic.
Senior officers from both services welcomed a small number of guests to the site to mark the key handover of the new build and the formal adoption of the wider site.
Managing Director of contractor Henry Brothers Midlands, Ian Taylor, said: “We are very pleased to have handed over this new joint headquarters building for Nottinghamshire Police and Nottinghamshire Fire and Rescue Service.
“The Henry Brothers’ team was incredibly proud to have been selected to build this facility for our emergency services – supporting many local jobs on the site and in the wider local supply chain. We are delighted to have completed a project which will play such an important role in supporting the Nottinghamshire community in the future.”
Guests were given a tour of the new complex and treated to refreshments from Pulp Friction, a Nottinghamshire-based social enterprise which will run the site’s new purpose-built café.
Chief Constable Craig Guildford, speaking from the newly completed parade square at the front of the new building, said: “This is a really significant day in the history of both organisations, and I am delighted with what has been achieved.
“This collaborative project represents a long-term commitment to partnership and joint working between two organisations with proud histories of public service. This is very good news for the public purse, all of our staff and the communities we serve across Nottinghamshire.”
Headquarters staff from Nottinghamshire Fire and Rescue Service will be moving over to the new site gradually until summer 2022.
Chief Fire Officer John Buckley said: “I am thrilled to see the completion of our joint headquarters, after many months of hard work from both organisations.
“We already work closely with Nottinghamshire Police in a number of ways, so this is a fantastic opportunity to share knowledge and resources, and to become more efficient as Services in creating safer communities.”
Toby Neal, Vice Chair of Nottinghamshire and City of Nottingham Fire and Rescue Authority, said: “It’s an impressive building with impressive working space, that is going to bring closer working between Nottinghamshire Police and Nottinghamshire Fire and Rescue Service.
“The benefits will be closer working, but also better use of finances and resources. The organisations work closely to protect the public, and that’s the most important thing. Anything that improves their working together is good.”
Nottinghamshire Police and Crime Commissioner Caroline Henry said: “Our HQ is the newest tool in our arsenal as we combat crime across the county and will enable us to deliver 21st Century policing in Nottinghamshire. The unveiling of our new headquarters is also a testament to our partnership working with the fire service, enabling us to better serve the public and save money.”
Nottingham-based Henry Brothers Midlands began work on site during summer 2020. Other members of the construction team on the joint headquarters project for the emergency services included Gleeds for project management, cost consultancy and M&E services, YMD Boon as architect, and civil and structural engineering firm HWA.
Henry Brothers Midlands, based at Priory Court, Derby Road, Beeston, is part of The Henry Group, which comprises a number of manufacturing and construction sector companies, ranging from external construction through to interiors fit-out.
ONS data “a stark warning for high street businesses without an online presence,” says Purpose Media
Today (Friday 21st January 2022), the Office for National Statistics (ONS) released data showing internet sales as a percentage of total retail sales.
The results show that having reached an all-time high in November 2021 of 37%, driven by Black Friday and cyber Monday offers, the ratio slumped back to 27.7% in December 2021 as shoppers returned to the high street in search of inspiration for Christmas gifts.
However, the ten year trend is still rising. Back in November 2012 internet sales accounted for only 9.4% of sales and over the last two years this trend has accelerated further from 21.6% to 27.7%.
The Coronavirus pandemic has severely impacted high street footfall and retail sales, underlining the importance for businesses to have a robust digital marketing strategy to bring in online revenue. Failure to be present online risks businesses becoming isolated, as customers seek online convenience – particularly during uncertain economic and social climates.
Full-service marketing agency, Purpose Media, which specialises in ecommerce websites and digital marketing, has been supporting businesses during the pandemic, notably as a digital partner of Chesterfield Borough Council’s Digital High Street Scheme. They will also be supporting Derby City Council’s Business Resilience Programme in 2022, and both programmes offer high street business owners free support to move their companies online.
Purpose Media’s Managing Director, Matt Wheatcroft, is also urging traditional bricks and mortar businesses to wake up to the recent ONS data and move their business online, or risk getting left behind.
However, he doesn’t think this spells the end for the high street altogether. He said: “The ONS’ data is a stark warning for high street businesses without an online presence. It has been an extremely difficult few years for UK businesses, but it’s promising to see many are adapting to change.
“The slump back in December proves that customers want to visit city centres, traditional high streets and retail parks, as being able to see products up close is still a desirable experience. However, businesses need to offer a blend of in-store and online click and collect to cater to all of their customers. Some customers won’t be comfortable shopping in busy stores, for example.
“My advice for businesses is to seek expert advice and build an online strategy across an ecommerce website and accompanying social media platforms. The way we speak to our customers has changed considerably in recent times, and business owners need to wake up to the change. Using online digital platforms can be a great way to attract shoppers to special in-store events.”
Eurocell hails “positive finish to 2021”
Eurocell, the manufacturer, recycler and distributor of window, door and roofline PVC products, has praised a positive finish to 2021.
In a trading update for the year ended 31 December 2021, the Alfreton-based company said the strong sales performance previously announced for the ten months to 31 October continued through to the end of the year, supported by good underlying demand in its markets.
The business added that it has taken “effective action to mitigate ongoing cost inflation and supply chain pressures.” As a result, it now believes profit before tax for the full year will be slightly ahead of current market expectations.
Group sales for the six months to 31 December were up 23% compared to 2019 and 7% compared to 2020, with the latter reflecting a very strong second half in that year. For the year ended 31 December 2021, sales were £343 million, up 23% compared to 2019 and 33% compared to 2020.
How to build a great e-commerce website
Simply put, the internet has a strong impact on our lives. After all, we use it for socializing, researching, and working. It has even presented itself as a platform where we can use it to buy different products and services. Now, there’s a complete generation of adults who are well aware of the internet and know nothing about how life operated without it.
In simple words, retailers cannot stay offline, otherwise, they will lose valuable customers easily. E-commerce websites empower customers to acquire a unique user experience of shopping online. So if you want to start an ecommerce business, the basic idea will be, begin with, a stellar-looking website. You can either choose to build one yourself or hire a web developer. Here, we will shed light on how you can build a good e-commerce website:
- Consider the E-Commerce Platform
- Website Performance
- Website Should be Optimized For Mobile
- Create an Interesting Domain Name
2022 Business Predictions: Donald Ward, Operations Director at WARD
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Donald Ward, Operations Director at Midlands-based metal recycling and waste management specialist, WARD.
We can’t escape the fact that COVID will continue to play its part in bringing ongoing uncertainty to business and present further trading challenges at a local, regional and national level. However, Midlands businesses have shown incredible resilience and are becoming increasingly used to adapting to uncertainty.
Adaptation will also be a key theme to progress the sustainability agenda. To deliver on the COP 26 outcomes and shift to a circular economy focus, adaptation, mitigation, finance and collaboration will be essential to reduce carbon emissions. We need to deliver investment in climate goals and encourage working together to achieve real impact and change.
As a business, we are well on the way with our sustainability road map to 2030, the Ward Way. Since 2019 we have already realised a 28% carbon reduction across our operations and as part of the Pledge to Net Zero we have evidence-based targets to achieve around energy efficiency, delivering social value, developing economic and environmental sustainability in the year ahead.
Unfortunately, the first half of 2022 is likely to present more tough trading conditions. Realistically, there will be ongoing issues with logistics and shipments, which we expect for at least another six months. However, we are finding alternative ways to move materials and have made provision for this in our plans for 2022, such as moving to rail. We’ve also been looking ahead and have invested in and secured the plant and equipment we need to support our plans for the growth of our bulk metal recycling operations in 2023 and beyond.
This will be a year where the wellbeing of all staff both physical and mental is even more paramount to beating the daily issues we face from the changing world. We should have a greater sense of empathy and compassion, stay connected, be aware of and be kind to each other both inside and outside of work.
