Derby fabrication and precision machining business snapped up
Mersey Industries has acquired Derby-based MCE Engineering, a fabrication and precision machining business.
Off the back of a record year for the business, this acquisition forms part of an ambitious journey for Mersey Industries to build a group of engineering companies in the UK, with an impetus on serving the defence, nuclear and aerospace sectors.
The acquisition of MCE Engineering marks the second acquisition for Mersey Industries as it expands its footprint in the Midlands, and, in turn, the operational capabilities across the group.
Established in 1996, MCE Engineering operates from a 12,000 sq ft manufacturing facility in Derby and delivers specialist metal machining and fabrication solutions to blue chip market leaders such as Rolls Royce and Bombardier. The business has a team of over 35 staff who play a key role in the ongoing success of the business.
Jeremy Rowson, director of Mersey Industries, said: “We’ve been on the lookout for a high quality and well-run precision engineering company to enhance and extend our capabilities and MCE Engineering ticked all the right boxes for us. We are delighted to welcome the MCE team into the group and look forward to working with them.
“We are grateful to the team at Magma Corporate Finance for guiding us through the acquisition process. Shafwaan Bheda and Irfan Ashfak provided an excellent advisory service, and Jon Kicks delivered expertly put together tax due diligence and advice. Their experience and expertise were invaluable during the transaction.”
Shafwaan Bheda, senior manager at Magma Corporate Finance, said: “Mersey Industries has an extremely ambitious and dynamic management team, and this acquisition strengthens their presence and operational capabilities in their target sectors. We are extremely pleased to have advised Mersey Industries on the deal and look forward to working with the business moving forward.”
Jamie Lloyd and his team at Nexus Solicitors, Manchester, provided legal advice and legal due diligence to Mersey Industries.
Strike proposed at Nottingham bakery over pay rise that could leave staff “worse off”
A strike is on the cards at Nottingham’s Riverside Bakery – the producer of quiches, flans and savoury tarts for major retailers including Tesco, ASDA, Sainsbury’s, Aldi and Marks and Spencer – according to Unite.
The union says that a pay cut disguised as a rise offered to staff earning just above the minimum wage has resulted in a strike ballot.
More than 150 workers at Riverside Bakery are being balloted for strike action over the pay offer that would apparently leave staff worse off by reducing overtime and premium rates.
Unite general secretary Sharon Graham said: “This offer is a pay cut disguised as a rise. It would leave our members, who are already struggling with low pay and soaring inflation, worse off. I doubt customers will be impressed to learn that the quiches they buy in Sainsbury’s, Marks and Spencer and other supermarkets are being made by workers on the breadline.
“Riverside Bakery should be aware that if our members vote for strike action, Unite will have their backs with all the support they need.”
The ballot for strike action opens today (Tuesday 22 February) and closes on 8 March.
Unite said that the latest pay offer is a serious attack on its members’ premium rates.
Riverside Bakery is part of the Addo Food Group, which was bought by private equity firm PAI Partners in 2020. PAI is planning to merge Addo with another chilled food company it owns, Winterbotham Darby, to create a new company, The Compleat Food Group.
Unite regional officer Cheryl Pidgeon said: “Riverside Bakery and their new owners, PAI Partners, can well afford to ensure that their already low paid workers’ financial woes are not further increased.
“With the rising cost-of-living many will be plunged – if they are not there already – into in-work poverty under the current pay offer. Riverside Bakery need to put forward a deal our members can accept before this dispute escalates further.”
A spokesperson for The Compleat Food Group said: “After extensive talks, The Compleat Food Group made a very favourable offer of an increase to hourly rates for the colleagues at Riverside Bakery which was rejected by the Union.
“To enhance the previous offers, the final offer from the business included the fixing of overtime premiums at the 2021 rates. This was a move to further enhance hourly rates and increase differentials in advance of the forthcoming increase to the national minimum wage.”
Yü Group takes on customers of duo of bust energy suppliers
Nottingham’s Yü Group, the independent supplier of gas, electricity and water to the UK corporate sector, has been appointed by Ofgem as Supplier of Last Resort (SOLR) for Whoop Energy and Xcel Power Ltd (Xcel) and agreed to take on their electricity and gas customer books with immediate effect.
Whoop Energy supplied gas and electricity to 262 customer accounts, of which 212 were non-domestic SME customers and 50 domestic customers, across 401 meter points. Xcel supplied gas to 274 non-domestic customers.
Under Ofgem’s SOLR process, business customers transfer to a new supplier on a flexible, “deemed,” basis with a variable tariff reflective of current market conditions. The total contribution to Group revenues is expected to be approximately £150,000 per month.
In line with previous integrations, Yü Group will integrate these new customers on to the Group’s scalable platform; and certain industry processes will continue in the coming days to complete the transfer.
Bobby Kalar, Group Chief Executive Officer, said: “I am very pleased to welcome customers of Whoop Energy and Xcel to Yü Group. We have already commenced migration onto our scalable operating platform ensuring the smoothest transition possible.
“The award from Ofgem is further testament to the strength of our business with our strong foundations, proven platform and robust hedging strategy. This follows the award and subsequent seamless integration of Ampower in November 2021 and we are proud to be working with Ofgem to ensure a stable supply of energy for UK businesses.”
Business insolvencies double within 12 months
A dramatic year-on-year increase in the number of corporate insolvencies is highlighting the enormous challenges faced by Midlands businesses as they continue to battle the economic shockwaves of the pandemic.
Latest Government insolvency statistics for England and Wales show that corporate insolvencies increased by 105% in January 2022 to a total of 1,560 compared to January 2021’s figure of 758.
According to the Midlands branch of insolvency and restructuring body R3, the doubling in corporate insolvencies suggests that creditors are now starting to take action over unpaid debt, having been legally prevented from doing so since the start of the pandemic.
R3 Midlands chair Eddie Williams, a partner at PwC in the East Midlands, said: “The substantial increase in company failures is being driven by a rise in compulsory liquidations, which are 131.4% higher than this time last year.
“Numbers of Creditors’ Voluntary Liquidations have remained similar compared to this time last month, which suggests that many company directors are continuing to choose to close their businesses rather than attempting to carry on trading in the current climate.
“These Insolvency Service figures indicate the toll the current climate is taking on local firms. Over the last two months, Midlands businesses have had to trade through a perfect storm of issues, including spiralling inflation and transport costs, new COVID measures and steep increases in energy prices.
“Against a backdrop of continued pandemic-related uncertainty, there is likely to be a significant number of directors who are doubtful that their business can survive much longer. In such cases, the sooner advice is sought from a qualified and reputable source, the more potential there is for a solution.
“Many R3 members offer a free consultation to those who are looking for help with their business’s finances and want to explore their options.”
Rate of store closures slowing in the Midlands, but chain operators not replacing vacant units
Over 10,000 chain store branches disappeared from Great Britain’s retail locations in 2021. In total, 7,160 shops opened, compared to 17,219 closures, a net decline of 10,059, according to PwC research compiled by the Local Data Company (LDC).
Although the net change has worsened since 2020, the number of closures per day has remained stable, 47 in 2021, compared to 48 in 2020. A decline was expected with the ongoing impact of the pandemic and as large retailers, that were on the brink of closure at the end of 2020, exited the market for good. Meanwhile, Government support for chain retailers was mostly phased out in July 2021 adding pressure to those retailers reliant on grants.
The East Midlands saw 528 store openings and 1,146 closures, a net change of 618. In the West Midlands, there were 641 openings and 1,676 closures, a net change of 1,035 over 2021.
The overall number of openings has declined 26% since 2019, the last year pre-pandemic. So, although there were over 7,000 new openings in 2021, many of these were the natural churn and re-siting of existing stores. Apart from takeaways, at +81, and government job centres, +33, no other category saw more than 20 net openings in 2021.
In a continuation of a long term trend, store closures peaked in 2020 in the height of the pandemic. The rate of closures has been growing since the mid-2010s, as more retail and service categories have shifted online. This had previously been offset by the rapid rollout of leisure operators, such as coffee shops, food-to-go and restaurants. However, such openings have slowed down rapidly since the mid 2010s.
In better news, the number of closures is now expected to slow down through 2022. The last two years have seen a shake out of some large fashion and department store chains who were on the brink of collapse. With these stores now closed, future store closures should begin to level off. Moreover, bigger chain retailers are more likely to be proactively negotiating with landlords, so the end of the rent moratorium in March 2022 is less likely to affect them.
Flight from cities
Since the pandemic, city centres and London postcodes have seen an acceleration in net closures as more people work from home or adopt hybrid working patterns. London is again the worst performing region by some margin. Similarly, the underperformance of Birmingham has caused the West Midlands to perform worse than the East Midlands, with towns in the East Midlands more sheltered from the surge of Covid closures. Many will be hoping that hosting the Commonwealth Games in the summer will see a reversal of fortune for Birmingham.
Location matters above all else
Consumer behaviour is continuing to drive the most change and the choice of shopping location is impacting the number of closures. Retail parks and standalone sites are more insulated from closures. In 2021, retail parks saw the smallest net change of any location (593), compared to high streets (4,287) and shopping centres (1,690). In percentage terms retail parks saw net closures of -4% compared to high streets at -5% and shopping centres at -7%. Fast becoming a trend, retail parks have consistently outperformed shopping centres and high streets for the past 6 years. At the same time, shopping centres have gone from the second best performing locations, in 2015, to the worst performing locations in 2020 and 2021.
Undeniably, Covid exacerbated the popularity of retail parks but even since restrictions were lifted, footfall recovery has been much faster in out of town retail parks which benefit from easy access and good parking and bolstered by car travel recovering more quickly than public transport. Moreover, shopping centres have been hit particularly hard by closures of fashion retailers, department stores and casual dining restaurant chains – and therefore less attractive destinations in their own right.
Sarah Phillips, Midlands retail & consumer markets leader at PwC, said: “The last two years have been tumultuous for retailers but the closures we’ve seen are an acceleration of what was happening before the pandemic. Changes in consumer behaviour, changing patterns of working and the shift to online is impacting on both retail and service chain operators.
“Location matters most to consumers and whilst city centres and shopping centres falter as we have seen in Birmingham, retail parks and standalone operators have broad appeal. However, this summer’s Commonwealth Games will see a reversal of fortune for Birmingham. Multiple operators are taking note of this changing consumer behaviour and are relocating stores to where their customers need them to be.
“Many of the CVAs and administrations that took place in early 2021 have now been captured, including department stores, fashion retailers and hospitality operators that have left gaps in city and shopping centre locations. There is a pressing need to radically reshape and even repurpose towns and city centres plagued by these empty units and shopfronts. To regain lost footfall, high streets must understand why retail parks are so attractive to consumers or look for ways to better serve local needs, encouraging independent retailers and entrepreneurs to take this opportunity to grow into the gaps that are emerging.”
Categories almost all driven by acceleration online
On a sector by sector basis the growth seen in a small number of categories is nowhere near enough to offset the declines in other categories. Leisure dominates growth, with takeaway chains buoyed by a rise in delivery as well as walk-in demand. Smaller chains and franchise operators, such as cake shops and amusement arcades, have also been able to take advantage of lower rents and vacant units to expand their footprints.
The big net declines in many other categories reveal the impact of major shifts in how consumers buy and transact. The shift to online, accelerated by consumer behaviour during Covid lockdowns, continues to be the biggest common denominator for closures in both retail and services.
- Fashion is the fastest declining category with almost 4 net closures a day. Several fashion and department store closures chains were acquired by online operators with no ambition to operate stores
- Banks have accelerated their closure programmes during the pandemic, following several years of slowing down closures; banks have been either the number one or two top closing categories in five of the past six years
- The move to online has even impacted the charity sector, which saw a net decline of 557 in 2021
- However, restaurants and pubs have fallen out of the top 10 fastest declining categories, revealing their overcapacity in the mid-2010s is now beginning to even out, resulting in fewer closures
Loram UK lands seven-figure agreement to keep Network Rail’s Flying Banana moving
Loram UK, the rail and rolling stock maintenance specialists, has agreed a major partnership with Network Rail to service its New Measurement Train (NMT).
The seven-figure agreement will see Derby-based Loram UK conduct a major mid-life overhaul of the NMT, known affectionately as the Flying Banana because of its yellow livery and high-speed operation.
The NMT monitors and records track condition information at speeds up to 125mph, helping identify faults before they become a safety issue or affect line performance. It also helps to prevent unnecessary maintenance work. Network Rail said the train was the “most technically advanced train of its type in the world.”
The agreement is the latest between Loram UK and Network Rail and Andrew Watson, Loram UK’s international business development director, said the programme would be vital to extending the life and performance of the Flying Banana.
He said: “There is only one in the UK so the work it does is vital in measuring rail infrastructure to allow maintenance to take place and keep high-speed rail going.
“When you consider how important high-speed rail is to the UK, whether it is moving people or goods, the importance of the NMT cannot be understated and we are very proud to be working on it.”
The train, converted from an Intercity train, is equipped with high-tech measurement systems, track scanners, and high-resolution cameras, measuring the condition of the tracks and overhead line equipment at high speed. It records data points, which are then passed to the relevant infrastructure managers to assess.
Mr Watson said: “Without it and the monitoring work it does, high speed trains would not run at high speed. What we will be doing is essentially amid-life extension programme for the next 12-14 months.
“We are delighted to be continuing to grow our trusted partner relationship with Network Rail to provide maintenance and service work for them.”
Nottingham CRO goes for growth with senior business development hire
Nottingham-based contract research organisation (CRO) Cellomatics Biosciences has made a key business development appointment in support of its ambitious growth plans.
Haroon Allybacus joins Cellomatics as senior business development manager. With more than 20 years’ experience in the pharmaceutical, contract research and ‘omics’ industries, Haroon has held numerous business development roles, most recently as European account manager at Human Metabolome Technologies, the global provider of next generation metabolomics.
With a Chemistry with Management Science BSc Hons and an MBA in International Business, Haroon began his career in big pharma, working for Pfizer and Astra Zeneca, before moving into CROs and biotechs.
Based at BioCity Nottingham, Cellomatics is a specialist preclinical CRO with expertise in five main therapeutic areas: oncology, immuno-oncology, immunology, inflammation and respiratory. Last year, the company reported year-on-year organic growth of 30 percent since its inception in 2015, following a hike in demand for its bespoke preclinical and early discovery phase laboratory services and expertise.
At Cellomatics, Haroon, who has worked in international business development for over ten years, will use his extensive experience at preclinical and clinical CROs and in pharmaceutical sales to develop the company’s global client base.
“I am truly passionate about the life sciences industry and believe there is nothing more rewarding than supporting companies with the development of new therapies for diseases with unmet treatment needs,” Haroon says. “The role Cellomatics plays in this process is key, and I am excited to be supporting the growth of its pipeline of business opportunities, as well as managing its strong and loyal customer base.
“By applying my specialist expertise in the ‘omics’ industry, as well as my knowledge of the Nordic life sciences territories, I hope to drive further, diversified growth for Cellomatics and ensure more businesses, from early start-ups to medium-sized biotechs, can access our bespoke, innovative and practical solutions to advance their drug development programmes.”
Shailendra Singh, CEO of Cellomatics, says: “Haroon is a top-performing and highly experienced business development expert, with a proven track record of success, having consistently exceeded sales and growth targets for successive companies.
“Increasingly, pharmaceutical companies are relying on the robust infrastructure and clinical expertise of CROs, and as specialty drugs become a larger portion of the market, we anticipate significant growth in the EU market, especially in the immuno-oncology and immunology spaces that we specialise in.
“Haroon’s in-depth experience and knowledge mean he can hit the ground running and help us tap into this growth, as we seek to become the CRO of choice for our growing global client base seeking expert support with the development of bespoke bioassays.”
New state of the art surgery proposed for Beeston town centre
The relocation of The Manor Surgery, currently located on Middle Street in Beeston town centre, has moved a step nearer following the submission of detailed plans to Broxtowe Borough Council which, if approved, will see the Practice relocate to a site close by on Chilwell Road.
The existing GP Surgery has outgrown the property following the population growth in and around Beeston, the closure of other surgery facilities in the town and the continuing move from the NHS to provide more clinical services within GP surgery premises.
The new building will be constructed on a site opposite Beeston Parish Church, adjacent to the town centre shopping and leisure facilities and next to the main public transport hub a few metres from the main bus and train stops.
The existing Manor Surgery provides around 445 sq m of floor space – the new surgery will provide 970 sq m which will be purpose built to the most up to date standards for surgery accommodation, capable of delivering a wide range of clinical services to the population of Beeston.
The surgery has been future proofed to allow for the projected growth in patient numbers – currently the surgery has a patient list size of 13,000, which is expected to grow to around 18,000 patients by 2025.
In addition, the new design provides space for a new Pharmacy unit and 265 sq m of additional clinical accommodation which will provide complimentary services alongside the main surgery function, creating new employment opportunities in the centre of the town.
Louis Mok, GP Partner at Manor Surgery, said: “The Partners and staff at Manor Surgery are really excited to see the plans submitted for the new surgery on Chilwell Road. The location is ideal, prominent, easy to find and accessible by public transport. We have been keen to ensure the new building is designed to the best possible standards.
“The property will benefit from Air Source Heat Pumps and a range of other energy saving facilities which will future proof the property for years to come and reduce our carbon footprint. This development will allow us to provide the best possible clinical care to the ever-growing patients in Beeston within top quality surgical premises.”
Lynne Sharp, associate director of estates at NHS Nottingham and Nottinghamshire CCG, said: “We are pleased that plans for the new premises for Manor Surgery are progressing and that the practice will be able to deliver patient care in a modern and fit for purpose building for many years to come.”
If the plans are approved, it is proposed to start construction in mid 2022 with completion of the new much needed community clinical facility delivered by early Summer 2023.
New board member for Octavian Security UK
Octavian Security UK, the Nottingham-based security provider, has revealed a new face on its board.
Emily James steps up as operations director less than two years after joining the company from Bretherton Solicitors, where she spent 27 years. Emily was previously the business and compliance manager at Octavian.
Reshma Sheikh, Managing Director of Octavian, said: “Emily joined us during the first lockdown period of the pandemic, and over the last two years has shone brightly. This difficult time for everyone has brought to the fore some truly talented people, and Emily’s promotion to the board is well-deserved. She will be a huge asset, bringing her vast experience and knowledge to the table and I’m looking forward to working closely with her as we look forward to the post-pandemic era.”
Emily said: “I’m extremely proud of this promotion and would like to thank Reshma and the other directors for the opportunity. It has been an extremely busy time at Octavian since I joined in March 2020 and the challenges have been great, but the team has shown time and time again that we can bring solutions to our clients. I am now looking forward to using these experiences as we look to grow in 2022 and beyond.”
Derby City Council shines a spotlight on apprentices
The work of Derby’s apprentices and employers was celebrated as part of the 15th National Apprenticeships week (7-13 February).
Apprenticeships are a great way to develop yourself and learn new knowledge and skills while working on the job. However, apprenticeships also allow for you to take the first steps towards a new career, all while being paid and gaining vital workplace experience.
Here’s what some of the Council’s apprentices say about their experience:
Accounts Receivable Business Admin Apprentice Ella Duhaney 18 said: “You get an understanding of what it’s like in the working world, with the training a job provides, while earning a wage at the same time.”
School Organisation and Provision Business Admin Apprentice Michael Smra 21 said: “It is very useful to know that we have support outside of the team that we work with, if we need it.”
Apprenticeships are not just for school leavers. We offer various levels of apprenticeships up to the equivalent of a degree. Within the Council, we have lots of different apprenticeship opportunities available to take advantage of, regardless of your age or background. The full list of apprenticeships we offer can be viewed on our apprenticeships page. We work with the best local training providers to ensure the best possible learning for our apprentices all while allowing you to gain on the job skills within your team.
Sarah Webster was recently crowned the College of Business, Law and Social Science Apprentice of the Year. She joined Derby City Council’s Park Team in 2004 and was inspired to take an apprenticeship in Strategic Leadership after conversations with colleagues.
Sarah says: “I had always been particularly interested in undertaking a MSc Degree. The apprenticeship has provided me with a brilliant opportunity to expand my skills, interests and knowledge and apply it to my everyday work.
“A requirement of the apprenticeship scheme was to have the support of a Senior Leader mentor within the organisation, who helped to challenge the academic learning, bring it in to a real-world context and this provide guidance and support throughout the apprenticeship.
“There is no typical day within the Parks Team; it is very varied and can alter from one minute to the next. I deal with anything from an issue on a park, to leading volunteer tasks, working alongside and support one of the 26 Friends groups and stakeholders within the city, to dealing with strategic decisions linked to parks development and management plans for Local Nature Reserves and anything in between. You can’t make it up in this business and keeps you on your toes.
“I hope to continue to work within the field of conservation, environment, and community engagement, continuing to tackle and bring about change to help address and respond to the many challenges that face the city and wider in relation to climate crisis and loss of biodiversity. By bringing the knowledge and experiences that I have gained through the apprenticeship to my area of work.
“The apprenticeship programme has been a great opportunity for me to meet others, both internal to the City Council, as well as external organisations such as Derby University, NHS, and private sector to discuss, challenge and pass on experience around the different theories, challenge the way things are done and gain an insight into new areas of the business. I have found it challenging at times fitting it all in especially during the pandemic, but it has been a really worthwhile, enjoyable and interesting experience that I would totally recommend to others.”
Cllr Evonne Williams, Cabinet Member for Children, Young People and Skills at Derby City Council said:
“The apprentices are a vital part of Derby City Council and the services we provide for the city. Apprenticeships are a great opportunity for anyone, whether you’re looking to start your career or re-train into something different and can very often lead into permanent positions afterwards.”
As part of the National Apprenticeships Week campaign, our apprenticeships team hosted a question-and-answer session on our social media channels to see what future apprentices wanted to know about the process. These frequently asked questions from this session can be viewed online.
Although National Apprenticeships Week was a great opportunity to showcase our apprentices and the current vacancies we have, we offer support and training all year round. We are currently working with various local employers as part of the Derby Jobs Live events to showcase the opportunities in the city, most recently with rail giant Alstom which is recruiting for 30 graduates and apprentices
Our support doesn’t end there, as we also always aim to support employers recruiting new staff as apprentices. Derby City Council joined forces with the University of Derby, the Department of Work and Pensions, and the Derby College Group to host the Get On Board With Apprenticeships event for employers. Around 10 local employers attended the two-hour information-based event to learn about the benefits of hiring apprentices and how they could apply for additional funding from the Council’s Apprenticeship Levy Transfer Fund to offset the costs of training and assessment
Eligible businesses must have a head office within the Derby City Council area boundary and are able to meet the requirements of the Education and Skills Funding Agency for transfer. Further information about the requirements can be found online.
Alternatively, if you’d like to find out more about the current vacancies available at Derby City Council.
