Streets Chartered Accountants appoint Martyn Shakespear as head of banking & finance
Streets Chartered Accountants, a top 40 UK accountancy and advisory practice, have appointed experienced banking and advisory specialist, Martyn Shakespear, as its new head of banking & finance.
Martyn joins Streets with over 40 years’ experience of providing funding advice to SMEs and corporates.
During his career, Martyn has held senior roles in NatWest, Bank of Ireland and the Co-operative Bank followed by 7 years as national head of banking & finance within a top 10 UK accountancy firm and more recently as a director with BTG Advisory.
When asked about Martyn’s appointment and what it will mean to Streets and their clients, the firm’s chairman, Paul Tutin, said: “We are especially pleased to welcome Martyn to the firm.
“For a number of years we have provided clients with funding advice and we are keen to ensure we respond to the growing need for this by recruiting a dedicated specialist. We are therefore delighted to have been able to recruit Martyn, with his well-established track record and understanding of SME funding.
“In particular Martyn is experienced in raising finance, including working capital solutions, invoice finance and asset-based lending, commercial loans and mortgages, together with foreign exchange strategies
“This is a significant appointment for us as we pride ourselves on being more than just accountants. The specialist expertise that he brings will prove invaluable for our clients and colleagues, as clients are increasingly looking at their funding arrangements as we emerge from the pandemic.”
Commenting on his new role, Martyn said: “Streets are a well-respected, dynamic and forward-thinking firm. In recent times I have got to know a number of the partners, staff and clients and cannot wait to build the banking and finance service offering across the whole of practice as I am passionate about the value this will bring.”
In his new role Martyn will provide banking and funding advisory services on a firm wide basis, covering its 17 offices throughout the Midlands, East of England, Yorkshire, London and the South East.
Russia/Ukraine crisis likely to pause future M&A activity
New figures published by the Office of National Statistics have revealed a fall in both inward and outward deal values and volume in Q4 2021, with a slight increase in the value of domestic deals.
Outward M&A values saw the biggest fall to 3.4bn in Q4 from 32bn in Q3, which is largely due the 29.8bn acquisition of Alexion Pharmaceuticals INC by AstraZeneca in Q3. The inward M&A values decreased to 10.9bn in Q4 from 12.4bn in Q3; while domestic deal values increased to 2.9bn in Q4 from 2.3bn in Q2.
In total, there were 77 completed deals in December 2021, down from 150 in September 2021 and the lowest level since the height of the pandemic in May 2020 where only 58 deals were completed.
Kirsty Sandwell, partner and head of transactions at RSM said: ‘The M&A market has been in a bubble over the past year, and these figures suggest the bubble has finally burst. The consistent run of high M&A activity is unlikely to be sustainable, and it looks like the industry is taking a much-needed pause for breath.
‘Ultimately, the deal environment needs certainty in order to flourish. The uncertainty surrounding the Russia/Ukraine conflict and the rise in oil and gas prices, presents headwinds for the deal environment which means M&A activity is unlikely to rebound quickly.
‘As witnessed after the Brexit referendum, buyers tend to halt deal activity until potential implications become more apparent, so it’s likely companies will take a similar approach in the coming months. There are many investors and advisers that have never lived or worked against a backdrop of inflation and rising interest rates, which adds to the macroeconomic uncertainty. This will naturally breed some caution as the community gets to grips with the new normal.
‘It’s likely tech M&A activity will be relatively unaffected during the current crisis and will drive overall M&A figures. With oil and gas prices on the rise, this may even lead to a focus on renewables and related infrastructure
Construction gets underway on £15m manufacturing research centre
Construction of a 46,728 sq ft research facility for Infinity Park Derby’s (IPD) latest occupier is now underway, which will connect supply chain innovations in carbon zero technologies with UK industry.
The progress on the nuclear research centre, led by the Government-backed Nuclear Advanced Manufacturing Research Centre (NAMRC), Derby City Council, the University of Derby, and the site developer IPD LLP, establishes Infinity Park as a centre for innovation, advanced research and development.
Located next to Rolls Royce and within 20 minutes’ drive of global manufacturers Toyota, Alstom and JCB, the decision to position the coveted Nuclear AMRC Midlands facility in the area reflects Derby’s unrivalled reputation in manufacturing.
The proximity of the Infinity Park facility to a new proposed junction, intended for completion in early 2025 within the South Derby Growth Zone, will also deliver sought after accessibility to major routes like the M1.
Arrival of the new research facility follows three years of success held by Nuclear AMRC Midlands at Connect Derby’s iHub; over five years of iHub tenure held by the University of Derby’s Institute for Innovation in Sustainable Engineering, and from the success of Enscite, a partnership between the University of Derby and Aston University supporting growth of SMEs in aerospace, rail, and automotive supply chains.
The iHub-based Nuclear AMRC is now home to fifteen engineers and support staff collaborating with Derbyshire and Nottinghamshire companies, supporting key local services for advanced manufacturing, and developing enhanced technological capabilities.
IPD’s partnership featuring Derby City Council, Wilson Bowden Developments, Peveril Securities, the Harpur Crewe Estate and Rolls Royce, with significant funding from D2N2, has propelled the status of Infinity Park to the manufacturing destination of choice for the high value sector.
Ralph Jones, Managing Director of Peveril Securities, development partner in IPD LLP, said: “Infinity Park Derby is a strategically placed centre for UK industry which benefits from Enterprise Zone status and Derby’s well-established industrial heritage. Arrival of NAMRC to the area will give Derby a voice in shaping UK manufacturing policy, and we are delighted to be part of that journey.”
Councillor Steve Hassall, Cabinet Member for Regeneration, Decarbonisation, Strategic Planning and Transport, Derby City Council, said: “Construction of the new research and development centre is yet another key milestone for this exciting project and great news for Derby’s SME businesses.
“Having this facility on our doorstep is a huge boost to the city and our economic recovery and helps cement our place as a national leader for innovation, manufacturing, and world-class research and development.”
Plans to drive Newark town centre vibrancy to be submitted to government
Plans to drive town centre regeneration and create an improved identity for Newark through an enhanced programme of events, activities and improvements to the public realm have been approved to be submitted to the Department of Levelling Up, Housing and Communities (DLUHC).
Newark and Sherwood District Council’s Policy and Finance Committee approved the submission of the outline business case for the ‘Cultural Heart of Newark’ project, one of nine priority projects as part of Newark’s Towns Fund Deal, in advance of the drawdown of funds and developing a full business case. In total, an allocation of £500,000 will be secured for 2022/23.
The next steps in the project, subject to the drawdown of funds, include establishing a Cultural Heart of Newark Project Delivery Board, led by Newark Town Council, expanding the current programme of town centre events and the recruitment of two new positions: Towns Centre Events Officer and Programme Development Officer. The Delivery Board will have a primary task of developing the Full Business Case during 2022.
Receipt of the funds will also allow for the implementation of a new annual events programme and the development of some key areas of the public realm, which may include the Market Place, Riverside Park and Newark Castle gardens and surrounding streets. In addition, more seating, greenery and an attractive entrance to the town centre will be considered for development.
The project will develop the vibrancy and cultural experience of Newark town centre while supporting growth in footfall, dwell time and consumer expenditure on retail, hospitality and other services in the town.
The project plans to:
- Enhance existing public spaces to provide spaces to dwell
- Explore wayfinding to facilitate better movement and accessibility within the town
- Explore street tree planting, where appropriate
- Encourage and promote events which align with the town’s aspirations
- Consider the use of art within the public realm
- Create a network of public spaces that can be used for events
- Ensure the spaces retain a sense of identity
270-acre organic farm let to new tenants
Specialist land development and property consultancy, Mather Jamie has advised on the lease of a 270-acre farm in Nanpantan, Leicester to new tenants.
Home Farm is located just outside of Loughborough and forms part of the historic Paget Estate. The farm is just shy of 270-acres and has been let by the estate owner, Joanna Herbert-Stepney, to Marie and Chris Bond.
Both Marie and Chris grew up locally and Marie, the lead tenant, has spent most of her life working on farms. Home Farm is an organic mixed farm which rears Longhorn cattle, Polled Forest and Lleyn Sheep. Chris also runs a local agricultural service, including fencing, hedge laying and paddock maintenance.
Amy Biddell from Mather Jamie, who manages the Paget Estate, said: “Chris and Marie have great ideas for the future of Home Farm so it’s great to welcome such forward thinking young organic tenants to the Paget Estate. We wish them well in their new farming venture.”
Marie Bond said: “Home Farm is such a special place and I feel extremely lucky to have been given such a great opportunity. We feel very so grateful to have a landlord that cares so much and encourages and champions organic farming.”
Estate owner Joanna Herbert-Stepney added: “Home Farm is in beautiful countryside, but it’s not an easy terrain to run. Maire’s doing a great job – it’s organic and full of animals and life. I’m proud to have her as a tenant.”
Marie and Chris have exciting plans for the farm including selling natural crafts such as a new soap line, which will be organic, CPD certified, and sold on the Home Farm website, in local businesses and at the pop-up farm shop during open days. In addition, an outbuilding is in the process of being renovated into a multi-functioning space for hire for a wide range of activities, from crafting to corporate meetings and events.
There are also plans to recommence beekeeping courses as well as taster sessions for people wanting to give it a try. Marie is also looking into the possibility of rearing goats for meat and milk and is considering planting an orchard for meat birds. Loughborough Naturalists are also in the process of conducting a 3-year study of the native flora and forna. It is hoped the study will help to document and raise awareness of the local wildlife, to help understand the diverse landscape and how this is changing over time.
SMEs lose an average of almost £21,000 each over Covid
A new report reveals the cost of Covid-19 to small businesses now sits at £109.6 billion, two years on from the UK’s first national lockdown – with one in six believing they will never recover financially from the pandemic.
The study by small business insurance specialist Simply Business reveals that 87% of small business owners have lost money over the last two years, averaging £20,981 each in total, with many still suffering financially. With one in six small business owners believing they will never financially recover from the pandemic, this represents almost one million UK small businesses in total.
While others are more confident of eventually recovering financially, the outlook remains bleak, with 43% of owners saying it will take at least another year. What’s more, one in five (21%) don’t expect to ever return to pre-pandemic trading levels.
Despite one in six (16%) believing that their business is now better prepared for the future following the events of the last two years, small business owners are now facing a unique set of challenges as we continue to emerge from the pandemic.
While Boris Johnson’s lifting of Covid restrictions earlier this year was predicted to give business a boost, 31% believe things have in fact got harder since the restrictions ended – with 63% believing that the government hasn’t offered enough financial support, consultation or communication in the period since.
Furthermore, as Covid cases rise again in the UK, two in five (38%) small business owners are concerned about another lockdown and tighter restrictions, which would impact trade exponentially for a third consecutive year. Two fifths (40%) say they are ‘not at all confident’ about their preparedness for a further lockdown or tightening of restrictions, and what’s more, a worrying 42% predict the temporary or permanent closure of their business should the UK enter another lockdown. There is however, a glimmer of hope amongst nearly a quarter (23%) of SMEs who have strong faith in their ability to weather another lockdown.
Alan Thomas, UK CEO at Simply Business, said: “Two years on from the UK’s first national lockdown, the continued impact of Covid-19 on small businesses is clearer than ever. With owners losing almost £21,000 each on average, one in six believe they will never recover financially from the pandemic.
“For small businesses, there’s no doubt that it’s been a period of incredible difficulty. But it’s also been a period of resilience, innovation, and creativity, where the unique spirit of the UK’s self-employed community has once again been clear to see.
“Accounting for over 99% of all UK businesses and contributing trillions of pounds in turnover every year, small businesses sit at the heart of our communities and are vital to our economy. As the types of challenges facing small businesses evolve, it’s essential that we all play a role in supporting their revival over the coming months and years.
“From local bakeries and greengrocers to contractors and tradespeople, if the UK is to recover from the effects of the pandemic, we need small businesses to bounce back.”
2021 an “exceptionally productive year for NEXT” as pre-tax profit and revenue rise
2021 was an “exceptionally productive year for NEXT,” according to its chairman, as the company “worked hard to adapt and develop [the] business to enable [it] to maximise the opportunities of an increasingly online world.”
According to results for the year ending January 2022, profit before tax grew to £823.1m, up from £748.5m in 2019/20 and £342.4m in 2020/21.
Meanwhile the business posted total group sales of £4.8bn, up from £4.3bn in the year to January 2020 and £3.6bn in the year to January 2021.
Looking ahead, following the closure of websites in Ukraine and Russia, and after moderating growth expectations in some other overseas territories, NEXT have lowered sales guidance for 2022/23 by £85m and profit guidance by £10m.
A statement from Michael Roney, chairman, says: “I am very proud to see how everyone within the business has embraced our challenges, opportunities and ambitions. I would like to thank them for this, and also for the continued commitment that they have shown over the past two years whilst having to deal with disruption to both their work and personal lives due to the pandemic.
“We enter 2022 with confidence in the outlook for our business and its ability to continue its successful evolution. The effects of the pandemic are ongoing and we remain mindful of macroeconomic and geopolitical risks, but our continued investment over many years in our people and our systems has generated strong and resilient results in the past year and we believe that it will continue to do so.”
Spring Statement, did it really create a sense of spring and sunnier days ahead?
James Pinchbeck, Partner Streets Chartered Accountants:
The government has been reprimanded for releasing details of Budgets and Statements in advance of their hearing in the House. It would seem then such advice was heeded in the case of the Spring Statement, delivered in the House on 23rd March 2022. Little was known of what we might hear in advance. Though perhaps some may feel there was nothing to release or leak?
At a time of rising inflation and living costs, for many younger workers and households, it is something they will not have experienced in their lifetime and many will have listened to the Chancellor with baited breath for measures and support to ease the burden.
Whilst many were urging the Chancellor to use the Spring Statement to axe the health and care national insurance increase due to come in this April, few probably really thought he would and he didn’t.
In terms of support for all households facing increased costs of living, he announced a 5p reduction per litre in the fuel duty levy from 6pm. This will no doubt be welcomed by those reliant on their car for work, particularly those living and working in rural areas where alternative lower cost travel options are not always available.
Whilst we head towards the warmer months, few though will take their minds off increasing energy costs with the price cap hike due to come in from April. The number of people who can benefit from the news of the removal of 5% VAT levied on the installation of renewable energy including heat pumps, solar and wind etc, will probably be limited and lagged in their benefit for most. The Chancellor also announced an increase in the Household Support Scheme with a further £500m of support being available to local authorities to target assistance to those affected by energy price increases.
When it comes to managing rising energy costs for businesses, again the measures announced were limited in that they failed to address the issues currently faced. Supply chain issues, labour shortages increasingly giving rise to price rises for consumers and energy price rises are all key contributors to overall price rises faced on goods, especially food and other key household items. His help with energy costs for businesses was limited to removing business rates due on a range of green technology used to decarbonise buildings, including solar panels and batteries, whilst eligible heat networks will also receive 100% relief.
So looking at how the Chancellor sought to balance managing the economy, public debt and borrowing whilst seeking to promote growth and to help those, if not all, affected by rising living costs, what were the key announcements? In the here and now, or at least to have a more immediate benefit was the announcement that the threshold at which National Insurance Contributions are levied will rise by £3,000 to £12,570 in line with the Income Tax Threshold. The Chancellor declared that this represents a £300 tax cut for those who will benefit from the change from July 22. This threshold increase is believed to benefit some 70% of the workforce and should help to mitigate the increase due to come with the new National Insurance health and care levy.
When it comes to help for businesses, the Chancellor served up a lukewarm helping of reheated announcements made previously with support around reductions in Business Rates, stating he would introduce reliefs a year earlier in April 22, through his Help to Grow initiatives and a continued focus around innovation through Research and Development tax reliefs. He did however offer support to employers, from the 6th April, through an increase in the Employment Allowance from £4,000 to £5,000. This allows smaller businesses to reduce their employers National Insurance contributions bills each year.
As his Statement came to an end, the Chancellor’s final announcement was on the proposed reduction in the basic rate of income tax from 20% to 19% before the end of this Parliament. Perhaps with a sense that this Statement was one based either on Government seemingly becoming a little jaded, running out of steam, or facing the challenges of dealing more and more with issues in the here and now as opposed taking a more longer-term perspective. With recent media coverage we might be forgiven for thinking that it was a statement that marks the start of a government laying the foundation and making preparations for a general election perhaps even as early as next year.
Further details on the announcements included in the Spring Statement 2022 along with tax changes for 2022/23 are included in Streets Chartered Accountants – Spring Statement report.
https://www.streetsweb.co.uk/resources/2022/mar/24/streets-guide-spring-statement-2022/
Packaging manufacturer slips to pre-tax loss in “very challenging conditions”
Robinson, the custom manufacturer of plastic and paperboard packaging, has slipped to a pre-tax loss after experiencing “very challenging conditions throughout 2021 across input price inflation, customer demand and the ongoing uncertainty resulting from the COVID-19 pandemic.”
According to audited results for the year ended 31 December 2021, revenue grew 24% to £46m, up from £37.2m in 2020. Despite this, the Chesterfield-headquartered company posted a loss before tax of £0.1m, in comparison to a £1.8m profit in 2020.
Robinson, whose origins date back to 1839, launched a “modest restructuring programme” in November, to deliver £0.3m of cost savings annually.
Alan Raleigh, chairman, said: “The Robinson business has experienced very challenging conditions throughout 2021 across input price inflation, customer demand and the ongoing uncertainty resulting from the COVID-19 pandemic.
“The substantial uncertainty and volatility experienced in 2021 is likely to continue through 2022, with further inflation in input costs anticipated.
“As a result of the inflation already experienced in 2021, we are seeking substantial price increases from all customers, which will support the improvement of margins in 2022. Given the ongoing pressure on input prices the board will continue to prioritise the management of fixed costs in 2022.
“It is likely that the consequences of the Russian invasion of Ukraine will remain for some time. Whilst we cannot foresee or fully quantify the impact, we are closely monitoring the situation, we will drive profitability, conserve cash and respond as necessary across our geographical locations.
“Despite the ongoing uncertainty, profits in the 2022 financial year are expected to be ahead of 2021 and we remain committed in the medium-term to delivering above-market profitable growth and our target of 6-8% adjusted operating margin.”
Ventola Projects to commence exciting new works with Deer Park FEC in the spring
Leicestershire-based Ventola Projects, a leading provider of experiential, visual and lighting solutions, has been commissioned to complete another exciting new project with an FEC facility based in New York.
Deer Park New York is the home of one of many Monster Mini Golf facilities across the United States, and like any other of its facilities, it provides nothing short of a memorable experience for families during their visit.
This project comes off the back of many other successful projects completed by Ventola Projects, through its US based distributor KOOL Amusements for the Monster Mini Golf franchise – a testament to Ventola’s continued success rates and ability to work with such facilities to deliver optimal results.
The Ventola team started production on 11 March, with finished results expected to be seen in May.
The final product will encompass many of Ventola’s trademark products, including the advanced VAvR LED lighting system, as well as engaging effective colour changing mood lighting to further enhance the facility’s offering.
Speaking to Mick Ventola, founder and managing director of Ventola Projects, he said, “It’s an honour and a delight to be working with the Monster Mini Golf management team once again.”
“Their facilities are always great fun to work on and they provide us with so much opportunity to not only bring the facility to life but to really showcase our products, too.”
We’re looking forward to finding out more about the project and seeing the installation come to fruition!
