Breedon hails record year

Breedon, the construction materials group, has hailed a “year of outstanding delivery” with record volumes, revenue and earnings, supplying more material to customers than ever before. According to audited annual results for the year ended 31 December 2021, the business posted revenue of £1.2bn, growing from £928.7m in 2020, with demand resilient, bouncing back strongly from the effects of the pandemic. Meanwhile the Leicestershire-based company made a pre-tax profit of £114.3m, up 138% from £48.1m in 2020, and a 21% change vs 2019.

Rob Wood, Chief Executive Officer, said: “2021 was a record year for Breedon. We navigated the second year of the pandemic successfully, supplied our customers with more materials than at any point in our history and fully integrated the Cemex assets. This excellent outcome was achieved at a time of constant change and the response from our colleagues, adjusting to the pandemic and the volatile economic backdrop, has been outstanding.

“Breedon is maturing. There are strong demand dynamics in our markets and we have many exciting opportunities ahead of us in the current year and beyond. Our GB Surfacing business is positioned for growth, the Cemex acquisition is integrated and poised to reap the benefits of our investment, and we see a number of bolt-on opportunities to in-fill our current footprint in GB and Ireland. Further afield, we have appointed a business development director in the US as we advance our plans for a third platform.

“Breedon has come a long way in the past decade and we have a consistent track record for profitable and cash generative expansion. Our experienced leadership team and committed workforce operate a well-invested portfolio of assets with significant opportunities for sustainable growth. We have a strong balance sheet and will continue to take a measured approach to deploying our capital, taking the time required to find the right businesses to extend our portfolio. The building blocks are in place for our next chapter of growth.”

Ibstock returns to profit

Ibstock, the manufacturer of clay bricks and concrete products, has delivered results ahead of expectations for 2021, despite market-wide challenges arising from cost inflation and supply chain pressure. According to results for the year ended 31 December 2021, revenue has grown to £409m, up from £316m in 2020. Meanwhile the Leicestershire company posted a pre-tax profit of £65m, recovering from a £24m loss in 2020.

Joe Hudson, Chief Executive Officer of Ibstock plc, said: “Our 2021 results reflect both continued robust demand across our markets and strong operational execution. Despite market-wide challenges arising from cost inflation and supply chain pressure, we have delivered a result ahead of the Board’s expectations, and are well positioned for future growth.

“Whilst we remain mindful of the broader macroeconomic uncertainties, particularly in light of the tragic conflict in Ukraine, we have made a good start to 2022, with a strong demand backdrop. This positive momentum, along with additional brick capacity coming on stream during 2022, provides us with a strong platform to deliver significant further financial and strategic progress.

“Today, we also set out a path for growth and value creation over the next five years, combining expansion of our core business with accelerated diversification into new, fast growing areas of the UK construction market. These strategic ambitions are underpinned by clear financial objectives and capital discipline, which are reflected in the new medium term financial targets. We expect to generate significant additional capital, in excess of our current commitments, over the next five years, which will support both further growth investments and additional shareholder returns.

“With the built environment accounting for around 40 per cent of carbon emissions globally, our industry has a vital role to play in delivering climate change solutions. With our plans to produce the UK’s first net-zero carbon bricks and brick slips well underway, we are supporting our customers in addressing their carbon reduction goals. Having achieved many of the environmental targets set in 2018 several years earlier than expected, we have now announced our new ESG strategic framework and targets, including our commitment to be a net zero carbon business by 2040.”

Charging charities at lower rates of VAT – Streets Chartered Accountants

There are special rules under which a VAT-registered business can sell certain goods and services to charities at the zero or reduced rate of VAT, as Streets Chartered Accountants details below. Before charging VAT at a lower rate, you must be able to show evidence that the charity is eligible. This is usually done by obtaining suitable evidence of the charity’s status and a written declaration or ‘certificate’ confirming they meet the conditions for a particular VAT relief. Charities are legally required to provide an eligibility certificate when you supply qualifying building or construction services to them at zero VAT. A declaration is not required for other supplies but is recommended to prove the charity is eligible for the relief. Completed declarations should be held for at least 4 years. The reduced VAT rate applies on the sale of fuel and power in certain circumstances to an eligible charity. The zero VAT rate applies on a wider range of supplies including the aforementioned construction supplies and items including certain medical and veterinary equipment, aids for disabled people, advertising and items for collecting donations, drugs and chemicals and equipment for making ‘talking’ books and newspapers.

Connect Derby gets the seal of approval from tenants in annual business community survey

Connect Derby, the city’s leading managed workspace provider, has published the results of its 2022 business community survey – and the statistics highlight the valuable role Connect Derby has played in helping tenants recover from the impact of the pandemic. The annual survey measures the levels of service Connect Derby provides across all areas of its operation – from the quality of its workspaces and IT services to security and operational communication. This year, the survey focused heavily on how Connect Derby has helped its 200 plus tenants get back on their feet again as they return to the office following the various local and national lockdowns in 2021. Connect Derby received an 82% response rate from office tenants surveyed across the seven diverse buildings in its portfolio – Friar Gate Studios, Kings Chambers, Sadler Bridge Studios, Marble Hall, Riverside Chambers, Shot Tower and the iHub innovation centre on Infinity Park. A massive 97% of respondents said Connect Derby meets or exceeds their expectations for the support it provides, an increase of 7% from last year. 96% of tenants reported that communications from the management team met or exceeded their expectations, an increase of 2% from last year. The management team maintained communication with tenants to provide support and guidance throughout the lockdowns and restrictions of 2021, assisting them with applications for Covid grants and loans, addressing queries and helping them stay open for business. Connect Derby staff also regularly checked on the health and wellbeing of tenants. 95% of tenants said Connect Derby meets or exceeds their expectations, with 91% saying they would recommend Connect Derby to other businesses looking for managed workspace in the city. Connect Derby has been supporting tenants return to the office by introducing new, flexible ways of working. In May 2021, furnished offices were introduced at flagship building, Friar Gate Studios in response to the changing working environment brought on by the pandemic. Offices reached 89% occupancy in less than two months. 92% of respondents said Connect Derby workspaces were clean, safe, and secure buildings to work in. Last year a bespoke COVID-19 induction programme was devised and implemented across all buildings. Connect Derby has continued to operate with some Covid measures in place such as hand-sanitising stations and social distancing signage.

Geldards strengthens property team after series of landmark deals for Nottingham

Law firm Geldards has added new talent to strengthen its commercial property team after advising on a series of landmark deals in Nottingham. The firm has promoted Stuart Walters to partner and has made four new appointments – two senior roles and two paralegals. Mr Walters specialises in landlord and tenant law and represents local, regional and national clients. These include high-profile retailers such as Boots UK, Eurocell group of companies and the Edinburgh Woollen Mill/Peacocks group of companies. The other appointments to the team are solicitor Kelly Lawton, legal executive Kelly Hammond, and paralegals Eleanor Taylor and Lily Chen. David Watson, Partner and Head of Commercial Property at Geldards’ Nottingham office said: “Stuart is a real asset to the commercial property team and I am pleased that his diligence and drive have been rewarded with this promotion. “Stuart’s appointment is the culmination of a substantial restructuring of our team. Our latest recruitments reflect the greater volume of complex transactions we are undertaking as well as our commitment to developing young talent. “We are now better prepared than ever to deliver high-quality legal services to our clients.” Geldards’ commercial property team has enjoyed notable success in recent years, having advised on several high-profile deals in Nottingham. It acted for Boots, the UK’s leading health and beauty retailer, on the sale of part of the Nottingham Enterprise Zone. It also advised on the acquisition of the life sciences incubator BioCity Group and the completion of the migration of Nottingham College from its Maid Marian Way campus to the new Skills Hub. Mr Watson said: “To have worked on three of the biggest deals in Nottingham in recent years is a huge honour for Geldards and a testament to the hard work and expertise of our real estate, corporate finance, commercial and construction teams. “The firm fully deserves its reputation as a trusted partner for some of the most significant organisations in and around Nottingham.” Geldards’ commercial property team predicts another busy year ahead, with property investors from individuals to retail chains reviewing and restructuring their portfolios to reflect growth areas of the market.

Key appointment to the Family Law Team at Ringrose Law

Ringrose Law welcomes Nick Aspley, family solicitor to the firm. Nick was appointed on 1 March and is the new head of the Family Law team based at the firm’s Lincoln Office. Nick has nearly 30 years of experience in family law and acts for both private individuals as well as business owners. Much of his work comes from recommendation including having acted for the other party in previous court proceedings. He adopts a constructive and collaborative approach to cases including, where appropriate, suggesting a range of dispute resolution options for clients. However, where court proceedings are necessary, he will not hesitate to make any appropriate application to the court, including in cases of urgency and need. He also advises clients in protecting their position and/assets prior to, or during, any relationship with the aim of limiting any difficulties should the relationship break down and reducing likely future costs of litigation. Nick has a network of other experts to help clients in family law disputes including in court proceedings. Nick is particularly looking forward to growing the Family Law department across Lincolnshire and Newark. Nick says: “I am looking forward to the challenge that lies ahead and the opportunity to build on the strong platform for growth established by the firm. Next month we see the introduction of the new no-fault divorce law one of the biggest changes to family law in the last 50 years. It’s the beginning of a new era for Family Law.” John Knight, senior director at Ringrose Law, says: “Nick brings with him a wealth of experience in dealing with family, divorce and financial matters, coupled with his existing relationships and reputation in the Region, Nick is a welcome addition to the Family Law team at Ringrose Law.” Nick is a Resolution Accredited Specialist (Advocacy Financial Remedy Proceedings and Children Law Private) and a Law Society Advanced Family Law Panel (Financial Remedy and Private Law Children). He is also a previous Member of Law Society Family Law Committee. Nick and his team offer a range of help and advice for all family matters including Divorce proceedings, Separation, Finances, Civil Partnerships, Child Residence, Childcare and Adoption. To find out more get in touch with Nick on nick.aspley@ringroselaw.co.uk or call 01522 561020.

Plans to boost town centre to be put under the spotlight at Celebrate Chesterfield

After securing nearly £20m of Levelling Up funding, plans to boost the town centre and enhance its cultural offering are set to be unveiled at the annual Celebrate Chesterfield event at the Winding Wheel on Wednesday 23 March. At the event, Neil Johnson, Director of Economic Growth at Chesterfield Borough Council, will unveil Chesterfield Borough Council’s plans for the modernisation and further development of the town centre as part of its journey to become a go-to destination for residents, retailers, and visitors. A new Inward Investment Campaign for Chesterfield, focussed on attracting further investment to the town, will also be launched at the event. Now in its twelfth year Celebrate Chesterfield, which is organised by Destination Chesterfield in association with The University of Derby and sponsored by CT and Markham Vale, attracts around 250 delegates. This year, the event will also host the Derbyshire Festival of Business Exhibition, designed to showcase Derbyshire’s extensive business offer and capabilities. Fully booked every year, businesses are being urged to book their tickets now to the free in-person event which is being held at the Winding Wheel from 7.30am – 11.00am. Mr Johnson will be joined at the popular event by Dr Huw Bowen, Chief Executive of Chesterfield Borough Council and Professor Warren Manning, Provost Innovation and Research at the University of Derby. In addition to plans for the town centre, the conference speakers will also address progress on the town’s multi-million pound commercial and residential developments, office space and the Digital High Street programme. Last year the Celebrate Chesterfield event was held online. Peter Swallow, Chair of Destination Chesterfield, said: “Chesterfield’s business community demonstrated resilience through the pandemic and continued to make significant progress in all areas. I am pleased we can finally come together in person and celebrate all that we have achieved in such testing times. It’s also important we look to the future and capitalise on the progress we have made to ensure the town remains a place where people want to live, work and invest.” Councillor Tricia Gilby, leader of Chesterfield Borough Council, added: “Celebrate Chesterfield is a fantastic opportunity for our business community to come together to hear and discuss the significant investments that the council and its partners are making across our town and borough. We need a strong business community to maximise the opportunities created by these investments and to contribute to our aims of making Chesterfield a thriving borough and improving the quality of life for local people.” Dr Peter Dewhurst, Director, Strategic Projects at the University of Derby, said: “The University is once again proud to be the headline sponsor of the Celebrate Chesterfield event, which we see as presenting an excellent opportunity to bring together and showcase the talent that is helping Chesterfield recover from the challenges of recent times. What’s more, this year’s event is being promoted as part of the inaugural Derbyshire Festival of Business that is being used to elevate our fabulous county as a great place to launch and grow a successful business.” Ian Snow, Managing Director of CT, said: “CT is delighted to sponsor this event and continue our support to promote Chesterfield as a great business destination. We are proud that our roots are in Chesterfield. The fantastic central location, together with the investment into Chesterfield to build a town people want to both live and work in, is supporting the growth of our business to offer a nationwide IT service. We are lucky to be in good company, surrounded by exceptional businesses from the legal, manufacturing and engineering sectors and we look forward to meeting everyone at this great event later this month.” Anthony Clitheroe, Director at HBD, which is jointly developing Markham Vale in partnership with Derbyshire County Council, said: “Markham Vale is at the heart of the business community, so we’re pleased to be able to support Celebrate Chesterfield and the launch of the Derbyshire Festival of Business – there’s no better advert for Derbyshire as a place to do business than the ambitious, growing companies based at Markham Vale. Benefiting from excellent connectivity and a great local skills base, they continue to create new jobs and attract investment into the region.”

Construction work begins on the final phase of SEGRO Park Kettering

The final phase of construction has started at SEGRO Park Kettering which will see the creation of almost 875,000 sq ft of space across three buildings. A 102,500 sq ft speculatively built facility will become the last available unit on the development and will be available to occupy from September 2022. It will combine warehousing, offices and a secure yard, as well as incorporating a range of sustainability features including rainwater harvesting, solar thermal heating, intelligent low energy lighting and EV charging points. A separate 150,000 sq ft warehouse will be constructed which has been pre-let to Bunzl, the FTSE-100 specialist international distribution and services group. It will be Bunzl’s second facility at SEGRO Park Kettering and will complement its existing 230,000 sq ft unit. SEGRO will deliver these units in parallel with a 622,000 sq ft freehold facility for beverage packaging manufacturer Ball Corporation, which will become its third aluminium can manufacturing facility in the UK and the largest ever constructed in Europe. Andrew Pilsworth, Managing Director, National Logistics at SEGRO, said: “SEGRO Park Kettering provides high quality industrial and warehouse facilities to meet a mix of customer requirements, supported by the right infrastructure and with excellent connectivity. “Occupier demand in the East Midlands remains very strong and we look to delivering these three buildings at pace in the coming months, bringing further employment opportunities into the region.” Helen Cockerham, Retail and Healthcare Managing Director at Bunzl, said: “We are pleased to be working with SEGRO again on this development and look forward to seeing our additional warehouse capacity becoming operational later this year.” Planning consent was secured at SEGRO Park Kettering to deliver a total of 1.2 million sq ft of industrial and warehouse space. The site, located at Junction 10 of the A14, is adjacent to Latimer Business Park, home to a range of market leading brands including Morrisons, DS Smith and Alpro, and Hanwood Park – the 5,500-house urban extension to the east of Kettering. Its proximity to major transport arteries means customers will be able to reach over 90% of the UK population within four hours.

Rapid deal sees 27,000ft² unit let in Kirkby in Ashfield

A unit of just under 28,000ft² has been let on Julias Way just off the A38 at Junction 28 of the M1. Acting on behalf of investor clients, Tim Gilbertson, director of FHP Property Consultants, concluded the deal to growing local business, We Are CCM Group, to facilitate their onward development. Director of the company, Richard Ardis, said: “Since launching We Are Fulfilment we’ve been overwhelmed at the interest that successful, national businesses and brand new, start-up retailers have taken in our new fulfilment service. We’ve outgrown our current warehouse facility within twelve months and are excited to invest in a new location to help expand our offering and help our growing base of clients take their businesses to the next level.” Tim Gilbertson said: “It was a pleasure dealing with We Are CCM Group and achieving completion of the lease within 28 days of instruction of solicitors and agreement of terms really was a great result for all concerned. “This is a cracking building, a big car park to the front elevation and a further large yard, in a great spot just off the A38, so it’s no surprise that a deal was done so swiftly. “My clients deserve credit as we gave the advice to completely refurbish the building and present it immaculately, which they certainly achieved and as a result, they have been rewarded by a strong deal that suits both our investor clients and the new occupier alike. “We wish both parties well for the future and as ever, I must reiterate that the market continues to go from strength to strength and more space is needed for buyers and tenants across the board in terms of size and location as demand continues to far outweigh supply.”

6 cash flow management tips to grow your business

While many business owners understand the value of sales and profit, they may not know the importance of cash flow management. Understanding operational cash flow is critical to reducing debt and improving business efficiency. For example, a high-profit margin business may still have low cash flow that may result in overspending and other financial issues. In simple terms, cash flow is the money that enters and leaves your business. But when properly structured, cash flow may help a company develop greatly. It can help the company save money and streamline its essential functions. Here are some tips for managing cash flow for business owners.
  1. Borrow Money 
Preventing cash flow issues is the best strategy. But changing market conditions can affect you at any time. Like a personal emergency fund, every business should have cash on hand to cover working capital shortfalls or unexpected expenses. Prepare a backup plan: borrow money before you need it. What if something happens that puts you in a cash flow crisis? A well-thought-out backup plan can give you peace of mind and a financial reserve in case of need. Moreover, opening a business credit line when your figures are good reduces the probability of future rejection. It will also provide you with resources to fall back on if you run into any financial issues. If you don’t have any credit cards yet and are having trouble receiving a loan, a small company credit card with an interest-free grace period may help. Credit cards can help you save, and many offer innovative reporting features to help business owners improve their cash flow. If you’re interested in getting a financial boost through lending, look at this.
  1. Maintain Strict Credit Policies
If you give credit to customers, stick to your policies to ensure you are paid on time. Try these ideas:
  • Keep track of late payers and impose a cash-on-delivery policy on repeat offenders.
  • Send bills punctually, confirm receipt, and follow up immediately on late payments.
  • All new customers should be subjected to a credit check before credit extension.
  1. Minimize Account Payables
When evaluating your cash flow statement, keep an eye out for spikes in accounts payable, often known as your bills. If you’re aware that your accounts payable has increased, but you don’t have enough cash on hand to pay for invoices, you must develop a strategy to address the issue before it destroys your organization. Rather than shortening the time it takes for customers to pay, you want to extend the timetable for accounts payable and keep money in the bank. Payment of your bills should be scheduled for the day before they are due. It is the standard set by professional organizations such as utilities and credit card firms. Your objective is to get paid as early as possible and maintain your funds for as long as possible without jeopardizing your credit or reputation. Not attempt to escape payment; avoid paying invoices a month early unless necessary.
  1. Use Cash Flow Management Software
Many software tools exist to manage, track, and forecast cash flow. You may already have the cash flow software you need if you use small business accounting software. Cash flow forecasting reports are built into cloud accounting software like QuickBooks. Others offer cash flow management add-ons. Many cash flow management, forecasting, and budgeting software products can directly interface with popular accounting software products.
  1. Liquidate Non-Performing Assets
Do you have any old equipment or inventory you no longer need or want? Consider turning them into cash by selling them. Inactive and non-working equipment wastes space and money. When the book value of long-held equipment exceeds the salvage value, a tax gain follows. The loss might be offset against other company profits if you sell below book value. Customer demands or advanced technologies may evolve, rendering surplus inventory unusable. Consider selling unused goods in the next 12 months unless keeping them is not costly.
  1. Forecast Expenses And Profit
Businessmen are usually pressured to be hyper-focused on the here-and-now issues, but they also have to prepare for the future. They should estimate payroll and other expenses, factor in the quantity and timing of invoices and bills that need on-time payment, and forecast earnings for three, six, and twelve months out. By planning, a business owner may be proactive in managing cash flow – achieving a balance between getting payments quickly and, if necessary, postponing payments to vendors. Conclusion  Cash is crucial in any business. Remember that cash outflow is never a problem; money will always flow out easily. The tricky part of managing cash flow is keeping it going consistently. Following the above advice will help you maintain a positive cash flow.