Ward welcomes York scrap merchant into the family
Midlands-based metal recycling and waste management specialist, Ward, has welcomed York scrap merchant, L. Clancey & Sons into its extended family with the acquisition of its metal processing business in York.
Independent, fourth generation family run business, Ward, has completed a deal with L. Clancey & Sons for its 3.9-acre scrap metal site in York and the business as a going concern. The acquisition of the business will further enhance the nationwide capabilities of Ward, offering greater coverage in the North of England, while enabling the succession planning of Clancey’s, as two of its partners take retirement.
Clancey’s has a well-established reputation, developed over its 160 history and this successful operating model will be maintained, as will the business name. One of the sellers, Richard Clancey, a member of the founding family, will stay on as site operations manager, employed by Ward and all other staff are being retained.
Thomas Ward, commercial director at Ward, said: “This is a really exciting time for both our family businesses. Clancey’s have a solid reputation in metal recycling, they share our values, outlook and approach to customers. We hope they will become an extension of the Ward team operationally, while retaining its own identity.
“This new site gives us even more geographical reach for both businesses with good transport links to our Midlands, Immingham and Redcar sites.”
Richard Clancey, partner, at L. Clancey & Sons, said: “Both our businesses are strongly family orientated and we have very similar values, from the way we look after our teams to the way we support our customers. This will be a really positive step for us all. Both myself and my daughter are looking forward to working with Ward and seeing what we can achieve together.”
Ward was supported with legal advice from Square One Law (led by Charlie Fielding) and financial due diligence was provided by PKF Smith Cooper (led by David Nelson). Azets (led by Stephen Garbett) and Harrowells (led by Matthew Rowley) acted on behalf of L. Clancey & Sons.
Derby law firm acquires new office space to aid expansion
Derby-based law firm, Right Legal Group, has acquired an additional new office space adjacent to their current head office situated at Wyvern Business Park in Derby.
The new 5,000 sq ft office will provide much needed space to support the business as it continues to see exponential growth, and will house the central support services team.
The law firm, which specialises in providing tailor-made wills and probate services for people across the country via their RightWill service, has taken on the new premises to allow further expansion over the next five years – having reached full capacity at their current offices.
The business has been based in Derby since 2014, and the announcement follows an incredibly successful period for the firm, having recruited more than 50 staff in the last year – taking their total head count to 130.
Carrie Caladine, Managing Director at Right Legal Group, says: “I am incredibly proud of the team and all we have achieved as a firm in the last few years. We are very passionate about the services that we provide and the work that we do. We are committed to investment and enhancing the experience that clients have with us.
“Every time we help a client to preserve their inheritance is a real achievement for us. We discuss internally that our reason for getting out of bed every day is to give our clients a voice and make sure that voice is heard when they are no longer here – it really is our passion.
“In addition to our work, the number of people that have joined us at the start of their career and gone on to qualify as solicitors, run departments and excel at their professional goals is always a huge highlight for us.
“We are delighted to expand our head offices further in Derby, we provide services across the country via our branch offices and partner network so accessibility is key and Derby is perfectly positioned. We are very proud to be part of such a supportive business community here, and are committed to supporting talent and investment in the local area as we continue to train and recruit.”
International intelligence experts relocate to Space Park Leicester
An international company which uses space technology to uncover hidden and illegal activity around the world has relocated to Space Park Leicester.
Using its constellation of satellites and proprietary processing techniques, Kleos Space locates radio transmissions in key areas of interest around the globe, efficiently uncovering and exposing hidden activity on land and sea in the global fight against environmental, security and economic challenges.
Its UK team of experts has moved to the £100 million Midlands facility to work on a variety of the firm’s key technologies and innovations and to support their UK customer base.
Miles Ashcroft, Kleos Space chief innovation officer, said: “Space Park Leicester aligns well with Kleos’ strategic UK growth plans, improving our connections to the local and national space business and academic community, bringing the team within immediate reach of other significant players in our sector and increasing opportunities for collaboration and innovation.”
Space Park Leicester will be home to members of the Kleos global team including those working in Spacecraft Systems, IT, DevOps, Software, Innovation Finance and UK customer relationship development and support.
Professor Martin Barstow, director of strategic partnerships at Space Park Leicester, said: “Kleos Space is internationally respected for their work on detecting and geolocating radio frequency transmissions from space to identify hidden and illegal activity.
“They are yet another huge asset to the community at Space Park Leicester and we are incredibly proud to welcome them here.”
Buyout industry remains resilient despite headwinds
The UK’s private equity industry remained resilient in the first six months of 2022, despite significant macroeconomic headwinds, according to provisional half-yearly data from CMBOR, the Centre for Private Equity and MBO Research based at Nottingham University Business School and supported by Equistone Partners Europe.
The 96 UK buyouts completed in H1 2022 were worth a cumulative £19.7bn, representing a fall from the 149 deals worth £26.6bn during the corresponding period last year, when pent-up demand drove a post-Covid bounceback in buyout activity to record post-2008 highs. However, cumulative deal value for the first half of 2022 was still the second highest H1 figure since 2007. This comes despite significant inflationary pressures, rising interest rates, ongoing global supply chain complexity and war in Ukraine.
As was the case six months ago, deal value was buoyed by the long-term upward trend in average deal size and the growing frequency of £1bn+ ‘mega-deals’. The rising tide of these transactions, which accounted for 77% of all deal value in the first half of the year, coincides with continued fundraising growth across the private equity industry, with GPs deploying record levels of capital into increasingly large deals. The seven £1bn+ buyouts completed this year means mega-deal volume is already the second highest on record after 2021, tied with the full-year figures for 2017 and 2019.
“It’s significant that the UK’s private equity industry has proved resilient in the face of considerable macro headwinds during the first half of the year,” said Christiian Marriott, head of Investor Relations at Equistone. “Many firms have remained active and deployed capital amid a challenging economic backdrop. These robust figures show investors’ continued faith in the ability of private equity to add value to companies with a long-term perspective that doesn’t simply depend on market tailwinds.”
That is not to say that private equity investors have been blind to the turbulent economic environment. The data from CMBOR also points to capital structures being more conservative than at any point in the last 10 years, with sponsors and lenders alike clearly cautious against a backdrop of rising interest rates and squeezed earnings. For structures above £100m, the average equity portion has risen from 37.3% in 2021 to more than 50% so far this year – meaning larger buyouts have been majority-funded by equity for the first time since 2012. In a corresponding move, the average debt portion has fallen to 47%, down from 62.7% last year.
London leads way as UK retains top spot for buyouts and exits
London and the South-East continued to lead the UK’s deal activity, with the capital and surrounding region accounting for 33 deals worth £8.7bn. The Midlands also performed strongly, with the mega-deal buyouts of Clinigen (£1.2bn) and Punch Pubs (£1bn) helping to drive £3.3bn in deal value across 21 transactions – already a higher cumulative value than all but two of the region’s top full-year figures since 2008.
The UK remains Europe’s largest private equity market by both volume and value, with its 96 deals equating to €23.3bn in activity. France ranked second in terms of volume, with 54 deals totalling €3.4bn, while Germany placed third in both volume and value, with 49 buyouts valued at €5.8bn. The Netherlands was second to the UK in value with €13.5bn from 22 deals, driven principally by 3G Capital’s €6.3bn buyout of Hunter Douglas and Apax Partners and Warbug Pincus’ €5.1bn acquisition of T-Mobile Netherlands.
The UK’s leading position and the skew towards larger deals were also in evidence with exit activity. While the 55 UK investments realised by buyout firms in H1 2022 represents a 30% year-on-year fall to a level equivalent to the Covid-disrupted H2 2020, the £15.7bn (€18.7bn) aggregate value of these transactions was the second-highest H1 figure since 2017, eclipsing both Germany (18 exits worth €7.0bn) and France (28 exits worth €6.1bn). This points again to the outsized impact of mega-deals, such as Bridgepoint’s £5bn sale of Element Material to Temasek.
“It’s perhaps unsurprising that we’ve seen the UK buyout market occupy its common position as the most active on among Europe’s major economies in this period,” adds Marriott. “The French presidential and parliamentary elections seem to have prompted a temporary slowdown in larger-cap deal activity. Meanwhile the DACH market is more proximate to the conflict in Ukraine and some sectors are heavily exposed to potential disruption in energy supply, causing both sponsors and businesses to exert more focus on navigating these challenges.”
Established sectors stay strong
Having accounted for more buyouts than any other sector in 2021, TMT continued to attract sizeable private equity investment, accounting for 20 UK deals worth £6.2bn in the first six months of the year. This figure, which is already close to exceeding 2021’s whole-year total of £7.2bn, was driven in large part by Permira’s £4.6bn acquisition of Mimecast. Healthcare has also continued to prove attractive, with 17 transactions worth £5bn, already the sector’s highest full-year deal value figure on record.
Professor Kevin Amess, director of CMBOR at Nottingham University Business School, said: “The UK buyout industry’s continued resilience is being driven by several key, high-growth sectors. The significant investment by private equity into TMT is a result of the sector having become absolutely core to the running of the global economy, while investment into healthcare continues to be powered by huge demand and significant public and private spending post-pandemic.”
Midlands sees slowest rise in permanent placements in 16 months
The latest KPMG and REC, UK Report on Jobs: Midlands survey highlighted a slower rise in the number of permanent placements in the region at the midpoint of 2022.
The rate of increase was the softest in the current 16-month sequence, albeit still strong overall. Meanwhile, temp billings saw the rate of increase decelerate steeply to only a modest pace.
Demand for permanent and temporary staff rose also rose at a softer pace, as growth in permanent vacancies was the softest for 15 months. At the same time, the downturn in staff availability intensified for both permanent and temp workers.
The KPMG and REC, UK Report on Jobs: Midlands is compiled by S&P Global from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.
Permanent placements rise at slower pace
The number of permanent staff appointments across the Midlands increased further in June. While strong overall, the latest expansion was the softest in the current 16-month sequence of rising placements. Survey members often linked hiring to additional capacity requirements as demand increased, although some recruiters commented on a lack of suitably skilled candidates.
The uptick in permanent placements in the Midlands was the joint-fastest of the four monitored regions.
Temporary billings across the Midlands continued to rise at the end of the second quarter, though the rate of increase slowed sharply from May. Despite rising consistently for two years, the latest increase was the softest in this period and only modest. According to panellists, temporary staff were taken on amid difficulty in sourcing permanent staff, however there was evidence that firms were cutting back on temps due to increased cost burdens. The Midlands saw temp billings rise at the softest pace of the four monitored English regions.
June data highlighted another robust increase in the number of permanent vacancies in the Midlands. The upturn slowed from the previous survey period however, and was the slowest for 15 months. Moreover, the Midlands noted the slowest rise of the four monitored regions.
Demand for temporary staff also rose at a softer pace. The rate of increase remained strong, yet eased to the slowest since February 2021.
Permanent staff availability falls at quicker pace
Recruiters across the Midlands signalled a reduction in the supply of permanent staff for the fifteenth consecutive month during June. The reduction was commonly attributed to candidate shortages and hesitancy to change roles amid cost of living increases. The pace of the decrease accelerated from May and was the quickest recorded for eight months. The fall in the Midlands was the second-weakest of the monitored regions, ahead of the North of England.
The availability of temporary staff in the Midlands decreased further in June. According to anecdotal evidence, some suitably skilled staff had taken on roles already, resulting in a lack of available contractors. The reduction was the sixteenth in as many months and the steepest since February.
At the regional level, the decrease in temp candidates was broad-based, with the Midlands seeing the second-slowest fall, behind London.
Substantial rise in permanent starting salaries
Latest data highlighted a sustained substantial rise in salaries awarded to new permanent joiners in the Midlands at the end of the second quarter. The rate of increase eased from May, yet remained considerably above the long-term average.
Across the four monitored regions, the Midlands recorded the strongest rise in permanent salaries.
Recruiters across the Midlands recorded a nineteenth consecutive monthly increase in hourly pay rates for short-term staff during June. The rate of temp wage inflation rose for the first time in three months and was rapid overall. At the regional level, the Midlands saw the second-slowest rise in temp pay, ahead of London.
Commenting on the latest survey results, Kate Holt, people consulting partner at KPMG UK, said: “Although the Midlands saw a further increase in the number of permanent job placements in June – its sixteenth consecutive monthly rise – demand for temporary workers in the region slowed sharply, a sign that economic pressures may be beginning to impact employers’ confidence to grow.
“As more candidates become hesitant to change roles amid the spiralling rise in cost-of-living, employers in the region face the prospect of needing to offer greater financial incentives to retain talent, thereby exacerbating wage inflation. All this suggests that, after a sustained period of growth, the Midlands jobs market is becoming increasingly fragile.”
Neil Carberry, Chief Executive of the REC, said: “The labour market is still strong, with demand for new staff high. That said, today’s data show that we are likely to be past the peak of the post-pandemic hiring spree. That pace of growth was always going to be temporary – the big question now is the effect that inflation has on pay and consumer demand over the course of the rest of the year. Whether we will see the market settle at close to normal levels, or see a slowdown, is unpredictable at this point.
“Part of the reason for unpredictability in the market is a slower economy accompanied by severe labour and skills shortages. These are already proving a constraint on growth in many firms. The government should be thinking about how to ensure all its departments enable greater labour market participation and encourage business investment funds to help address this.
“It is important to note that plenty of hiring is happening in this tight market – there are candidates out there for firms who get it right. Skilled recruitment professionals are at the heart of this, making a difference to opportunity and growth for companies and workers.”
Derbyshire nutritional supplements business acquired by US company
A family business which is one of the UK’s leading online retailers of nutritional supplements has been acquired by a Californian company for an undisclosed sum.
Nutri Advanced, which is based in Whaley Bridge, High Peak, has been sold to Metagenics Inc, which is backed by US-based private equity firm Gryphon Investors. Dow Schofield Watts advised Nutri Advanced on the deal.
Nutri Advanced was set up in 1981 by naturopath Norman Eddie and his son Ken to bring specialist nutritional supplements into the UK. The company, which now employs 40 staff, develops and supplies a range of nutritional supplements, primarily through its own ecommerce website, to consumers and practitioners in the UK and Ireland. It is renowned for its innovative products, education and training offering. The acquisition will provide an exit for Ken Eddie, who now owns the business.
Ken Eddie, founder and Managing Director of Nutri Advanced, said: “I feel extremely lucky to have spent the last 40 years working on my passion, which is to enable people to improve their health and lifestyle through nutrition and education. Over those years we have built a great business with an enviable reputation for product quality and become the number one brand in the professional nutrition market in the UK.
“In more recent years, expansion of our online B2C marketplace has transformed the business growth and attracted many new users. We have worked closely with Metagenics for over 30 years and so I’m very pleased that they will now take Nutri Advanced to the next level of growth and take forward the legacy that I started with my family.”
The Dow Schofield Watts team consisted of Dan Walker, Alex Odlin and Philip Price. Dan Walker said: “Nutri Advanced and Metagenics have a long history of working together, particularly in product development. It was clear from the start that Metagenics would be a great home for the business, and one where it could continue to flourish in a world where the demand for proactive health and wellbeing solutions has never been higher.”
Stijn Oste, vice president Metagenics EMEA, said: “For Metagenics the acquisition is part of a strategy to have a direct presence in all major EMEA countries, and to exploit the synergies of a pan-European activity in nutrition-based products and concepts for helping people to lead a healthier, happier life.”
Piers Dryden and Shaun Little of Beyond Corporate Law provided legal advice to the shareholders.
Rolls-Royce secures funding to build Direct Air Capture demonstrator in Derby
Rolls-Royce has secured £3m from the UK Government to build a demonstrator Direct Air Capture (DAC) system, which could play a vital role in keeping global temperature rises to below 1.5C by removing CO2 from the atmosphere.
The demonstrator funding comes from the Net Zero Innovation Portfolio (NZIP) through the Department for Business, Energy and Industrial Strategy (BEIS) and helps deliver on the UK Government’s 10 Point Plan for a Green Industrial Revolution. It follows initial Phase 1 funding of £250,000 awarded in 2021, that allowed Rolls-Royce to design the demonstrator in partnership with the Commonwealth Scientific and Industrial Research Organisation (CSIRO).
The demonstrator, to be built in Derby, will be operational during 2023 and be capable of removing more than 100 tonnes of CO2 per year from the atmosphere. CO2 removed from the atmosphere by such systems can be stored ensuring that it no longer contributes to global warming. It can also be recycled to make fuel for hard to decarbonise sectors such as aviation, enabling the more rapid phase out of fossil fuels.
A full-scale version of this plant could remove 1 million tonnes per year. The UK’s target is to remove 25 million tons of CO2 per year by 2030; and the International Energy Agency (IEA) forecasts that 980 million tonnes a year will need to be removed globally to limit global warming to 1.5C.
Jess Poole, Direct Air Capture lead for Rolls-Royce, said: “Every credible climate change model requires us to decarbonise today’s emissions, as well as removing CO2 already in the atmosphere via carbon negative technologies such as DAC. Our system combines our expertise in moving large quantities of air efficiently and integrating complex systems, which have been gained from designing world-leading jet engines, with novel DAC technology developed by CSIRO.
“Together the system works like a giant lung, sucking in air, absorbing the CO2, and releasing what is not wanted. We use a water-based liquid to wash around 50% of the CO2 from the captured air. Our technology is distinctive because very little water is used, and the liquid is recycled at low temperatures, making it energy efficient. Other technologies consume a lot of water and require substantial amounts of energy to generate heat for the separation of the CO2.
“This funding is great news for the team, and we’re excited about the future potential of this technology to help fight climate change.”
The demonstrator system will be built and operated by an in-house team at Rolls-Royce in an existing aerospace test facility, called Test Bed 52, on its Derby campus. This facility was previously used to test jet engines and is built for drawing in air and measuring how well new technologies perform.
Plans approved for Extra Care scheme in Northamptonshire
Planning permission has been secured for Housing 21 to provide 65 new affordable homes in Oundle.
The Extra Care scheme, located on St. Christopher’s Drive, will provide much-needed one- and two-bedroom apartments for older people with the assurance of an on-site care team for residents if and when they need it. There will be an option to purchase through shared ownership or to rent.
Peter Smith, construction project manager at Housing 21, said: “We are very pleased that planning permission has been secured for this Extra Care scheme which will be Housing 21’s first in North Northamptonshire. The site on St. Christopher’s Drive is well-placed to serve the people of Oundle and beyond. We look forward to working with members of the community to create a development that meets their expectations.”
Michelle Jeffrey, land director at Persimmon East Midlands, said: “We are delighted to work with North Northamptonshire Council and Housing 21 to enable them to deliver this much-needed scheme.”
The apartments were designed by Saunders Boston Architects.
Residents will benefit from a range of communal facilities, including a resident’s lounge, activity room, guest suite and assisted bathing suite. Additional facilities will also be available for use by the wider local community including a café/bistro and hair salon.
It is hoped that construction will begin in early 2023 with the scheme scheduled to open in late 2024.
Showcase excellent work at the East Midlands Bricks Awards 2022
A key event in the business calendar, showcasing the excellent work of the region’s property and construction sector, the East Midlands Bricks Awards 2022 will return on Thursday 15 September, at the Trent Bridge Cricket Ground.
Nominations for the prestigious event are open, and now is the ideal time to make your submissions, ahead of next month’s deadline (August 19th).
Shine a light on your projects and team, reward their hard work, and boost morale.
To submit a business or development for the East Midlands Bricks Awards 2022, please click on a category link below or visit this page.
After winning an award at the 2021 event, Allan Joyce Architects said: “We are delighted to have won Architects of the Year at the East Midlands Bricks Awards. It is lovely for the whole team, who always work incredibly hard to create amazing designs, to be recognised in this way. It was wonderful to attend the event in person and to hear about all of the great projects happening in our region and the companies involved in them.”
Find out who last year’s winners were here.
Thanks to our sponsors:
- 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 (this award cannot be entered, the winner will be selected from those nominated)
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:
Funding boost to help with completion of Kettering’s flagship cultural quarter regeneration project
Progress on Kettering’s flagship cultural quarter regeneration project will be discussed at a meeting of North Northamptonshire Council’s Executive this week.
Cornerstone aims to revitalise and unify the town centre site which includes Alfred East Art Gallery, Kettering Library and Kettering Museum.
Once complete there will be significant improvements to the Alfred East Art Gallery and Kettering Library and a new two-storey extension to the rear of the Art Gallery.
Executive will consider a report that recommends a further boost of capital funds to ensure that the main building work will be completed this summer.
Since the last Executive report in March, as this important project has progressed, further details and challenges have had to be addressed, including supply of building materials and the co-ordination of their delivery, which is a challenge not just being faced in this project and is impacting construction projects nationally.
Because of the challenges, and the fact that the cost of materials has now increased, an additional £412,000 contingency is now needed to cover additional costs and ensure the summer deadline is met to prevent further costly delays.
Cllr Helen Howell, the council’s deputy leader and executive member for sport, leisure, culture and tourism, said: “It’s really positive that the project is progressing despite the challenges and we’re starting to see the many elements coming together. Once complete it will be a wonderful addition to the town and also to the wider North Northamptonshire area.
“It’s essential that now the main capital works are so near to completion that we get the project over the line and this new funding boost will make that a reality.”
Cllr Jason Smithers, leader of the Council, said: “It’s important that the building works are finished as soon as possible to avoid further costly delays.
“Cornerstone will bring many benefits to the wider community and attract visitors, helping boost the local economy. I’m really looking forward to seeing it complete.”
A total of £3million funding for the project has come from the Getting Building Fund, which is administered by South East Midlands Local Enterprise Partnership (SEMLEP), with the remainder from local authority funding.
Once complete, Cornerstone will provide:
- Flexible workspace and exhibition space supporting start-ups, with support provided by the British Library led Business and IP Centre (BIPC) Northamptonshire, providing the correct environment for creative and cultural businesses to start up and grow.
- Increased engagement with schools and educational institutions to deliver collaborative programmes, to build curiosity, develop creative and cultural talent, creating future user and visitor opportunities.
- Two new events / workshop spaces, café and external terrace and improved public gardens on the site, enabling a wider range of events and activities including commercial events and opportunities.
- External curtain glazing and roof lights installed
- Internal studwork within the new extension complete
- Gallery ceiling painting complete
- Lift installed
- Museum betterment works complete
- Ramp construction and brick work underway
- Hit and miss brickwork (design-type of bricks) over the new entrance underway
- Drainage connection complete
