Confidence among East Midlands firms continues to decline as cost pressures – coupled with falling customer demand and access to cash – take a toll, new research reveals.
East Midlands Chamber’s Quarterly Economic Survey (QES), which is delivered in partnership with the University of Leicester School of Business and gauges the health of the region’s economy, found the proportion of businesses expecting to record improvements in profitability and turnover over the coming year has fallen by 21% and 17% respectively between the second and third quarters of 2022.
A lack of optimism on what lies ahead is being driven by a decline in UK and overseas sales, as well as advanced orders, alongside an 18% negative swing in cashflow quarter-on-quarter.
The tightening grip of the “cost-of-doing-business crisis” – led by rising costs for energy, people, raw materials and fuel – means almost six in 10 firms now expect they will be forced raise their own prices, while intentions to invest and recruit are now sliding.
East Midlands Chamber director of policy and external affairs Chris Hobson said: “These results paint a difficult picture for businesses. Many of the sentiment indicators of how the economy is performing – those relating to investment intentions and confidence levels – have been trending downwards for a few quarters now.
“However, for the first time, demand indicators – how busy businesses are in selling their goods and services – have also dropped, both internationally and here in the UK. This is a concern as it suggests the impacts of inflation, especially the increasing volatility in energy markets and subsequent interest rate rises, is starting to dull activity.
“Cashflow is now worsening for more businesses than it’s improving for and, when considered with the well-publicised price pressures that are now at a critical point for many firms, this all points to the need for immediate action to support businesses.
“We also need a longer-term strategy in order to instil confidence and give them the encouragement they need to start taking more strategic decisions around investment.”
East Midlands Chamber QES Q3 2022 data
Key findings from the Quarterly Economic Survey Q3 2022 for the East Midlands included:
· Sales dropped between the second and third quarters of the year – falling by 22% domestically and 12% overseas – while advanced orders also fell by 19% in the UK and 1% internationally
· While there was a 4% rise in businesses increasing their workforce between the quarters, future outlook is less optimistic with a 9% slide in the proportion of firms expecting to add to their headcount
· This comes as two-thirds (66%) of businesses attempted to recruit in Q3 but, of this cohort, 82% encountered problems with filling vacancies – across a relatively even split of professional, skilled manual, unskilled and clerical workers
· A net 58% of businesses expect they will be forced to raise prices (down from a net 62% in Q2) as they grapple with rising costs for utilities, people, raw materials and fuel
· Cashflow, having been up for a net 4% of firms in Q2, is now down for a net 14% of businesses, marking an 18% negative swing, while opportunities for growth are in short supply with four in 10 (39%) at full operating capacity
· A lack of room at the margins means investment intentions continue to trend downwards – falling by 6% quarter-on-quarter for both plant and machinery, and training
· Business confidence has nosedived, with the proportion of businesses expecting improvements in profitability dropping by 21% and those anticipating a higher turnover falling by 17% between the second and third quarters
Businesses debate future prospects
The Quarterly Economic Survey Q3 2022 results were unveiled at an Economic Performance and Prospects Review event held at the University of Leicester School of Business yesterday (13 October).
It marked the launch of a new strategic partnership between the two institutions focused on economic thought leadership via research, skills data visualisation, business support and an annual State of the Economy Conference.
A panel of business leaders – comprising the University of Leicester’s associate dean for business and civic engagement Professor Mohamed Shaban, Galliford Try head of business development Neus Garriock, Freeths’ Leicester managing partner Mukesh Patel, Assist Consultancy director Sonia Baigent and Highcross Leicester senior general manager Jo Tallack – discussed the survey findings, how the cost-of-doing-business crisis is affecting their sectors and how policy can support firms.
Professor Dan Ladley, dean of the University of Leicester School of Business, said: “I’m very pleased to be able to launch the partnership between the East Midlands Chamber and University of Leicester School of Business.
“The data show these are potentially difficult times for businesses with challenging headwinds to navigate. It’s important in these times that we continue to do everything we can to support the success of our regional businesses.”
North Warwickshire and South Leicestershire College (NWSLC) is pleased to welcome a new member to its executive team. Colin Butler will join the college later this month as Executive Director People and Culture with a brief to lead on workforce and organisational development.
Colin, who has a strong background in working within the further education sector, most recently for Loughborough College, is currently employed in a senior private sector HR role for Parking Facilities, part of Hill & Smith Holdings plc which manufactures sustainable infrastructure for transport applications.
He said, “I am excited to be joining NWSLC and welcome the opportunity to support the team across all its campuses to deliver the best possible experience for students. In my experience, this depends on building an ethos where employees are well-supported, enjoy coming to work and feel valued.”
With a background in retail management and more than 12 years in the logistics sector, Colin led the HR division of DHL Aviation in the UK and Europe, gaining industry plaudits for his work to develop maths and English skills in the workplace. In addition, Colin spent time teaching on a master’s level HR programme at De Montfort University in Leicester.
Colin has also worked for the Shakespeare Birthplace Trust where he relished the opportunity to help employees deliver a high quality and memorable experience at this unique visitor attraction. From there, Colin moved on to become Vice Principal for People and Planning at Loughborough College in which role he led teams delivering HR, marketing, and student recruitment. He was Acting Principal in 2017 during Ofsted’s inspection of the college which recorded a ‘Good’ outcome with aspects of provision rated as outstanding.
Colin added, “I have worked in a range of industries, but my heart lies in education, so I am glad to be returning to a sector that I love. Further education makes such an important impact on the life chances and social mobility of young people and adults, and I am pleased to be able to work with NWSLC to ensure that individuals continue to benefit from a skilled and fulfilled college workforce.”
Marion Plant, OBE FCGI, Principal and Chief Executive said, “We are looking forward to welcoming Colin Butler to the role of Executive Director People and Culture. I am sure that Colin will bring a wealth of knowledge from his previous experiences in further education and beyond.
“Our college relies on the energy and commitment of our dedicated staff and this appointment will help to ensure that we continue to support them in the best possible way so that our team can continue to deliver a fantastic learning experience for all our students.”
Leicester manufacturing firm Clements Limited has entered administration, after appointing Midlands-based advisory and accountancy firm PKF Smith Cooper to lead the process. Dean Nelson and Nick Lee, Business Recovery and Insolvency Partners at PKF Smith Cooper, were appointed as joint administrators on 4th October 2022.
Based in Leicester, Clements designed, manufactured and installed luxury retail interiors, as well as providing marketing, brand and logistical support to global manufacturers. The company experienced significant financial losses in 2020 and 2021 as a result of reduced demand, project delays and customer bad debt caused by the COVID-19 pandemic. Ultimately Clements was unable to recover and PKF Smith Cooper was appointed to deal with the business and its assets.
Dean Nelson, Business Recovery and Insolvency Partner at PKF Smith Cooper, commented: “Creditors have been provided with the relevant information regarding the administration process, to enable them to partake in proceedings. We are in the process of dealing with all enquiries and working to assist the affected employees with processing their claims for statutory entitlements at this difficult time. We will strive to achieve the best outcome for everyone involved.”
Partner Caroline Bowler joins Rotheras’ dispute resolution team where she will specialise in equine law including disputes relating to the sale and purchase of horses and co-ownership of horses in addition to negligence claims predominantly involving the veterinary profession.
Caroline also has considerable experience in commercial litigation and property litigation matters. Her practice in property litigation has focused on disputes relating to rights of way and adverse possession. In the context of commercial litigation, she is regularly instructed on contractual disputes, partnership disputes and professional negligence claims against surveyors, solicitors and other professionals. In recent years she has been instructed on a number of high-profile matters related to peer-to-peer lending.
Caroline was previously a director and head of dispute resolution at Actons and has 15 years’ experience in litigation.
Caroline said: “I am delighted to be joining Rotheras. The firm has a reputation for providing an excellent service. Having known a good number of individuals from the firm for a number of years I have first-hand knowledge of the quality and calibre of their work. I am also aware that they are a down to earth and friendly bunch of people. I am excited to introduce my specialism of equine law into the firm in addition to bolstering the already strong dispute resolution team.”
Christina Yardley, CEO at Rotheras, said: “We are thrilled to welcome Caroline to the firm. Caroline has an outstanding reputation in the area of equine law as well as being an extremely talented commercial litigator and combines excellent technical experience whilst being approachable and thoroughly down to earth. A winning combination in my view.”
Staff members at an online flooring retailer based in Leicestershire did some DIY tasks of their own for the benefit of young residents at a local homeless charity.
Through its Employer Supported Volunteering (ESV) programme, UK Flooring Direct employees made a visit to Hinckley Homeless Group, which provides accommodation and other forms of support for homeless young people between the ages of 16 and 25.
Ashleigh McKenna, HR advisor, and Maya Choto, buying admin assistant, did a four-and-a-half-hour decorating stint with Louise Adams and the Hinckley Homeless team in the corridors and stairways of Lawrence House, which is used by residents throughout the day and into the night.
The day was a success, with both important tasks completed during their time at Hinckley Homeless, which is based in Wood Street in Hinckley.
The Employer Supported Volunteering (ESV) programme ensures every member of the UK Flooring Direct team is given a fully-paid day to offer their services to a charity or good cause.
As part of the scheme, UK Flooring Direct has partnered with Hinckley Homeless Group, RSPCA Coventry and District Branch, Shine A Light and Make Good Grow.
Ashleigh McKenna, HR advisor at UK Flooring Direct, said: “Both myself and Maya had a really enjoyable time joining Louise and the Hinckley Homeless staff for the day, and are pleased that our hard work has gone a long way towards the upkeep of Lawrence House, a place that provides shelter and warmth for young people throughout the year.
“We were kept really busy, and were motivated to do something good for fellow members of the Hinckley community who are facing challenging circumstances and to also support Hinckley Homeless and their incredible work in the local area.
“Through our ESV programme, we are keen to support all four other organisations that we’re working with as part of the scheme as much as we can, and are already discussing new opportunities for the coming months.”
Louise Adams, project manager at Hinckley Homeless Group, said: “Given our day-to-day responsibilities to our residents, it’s easy for practical DIY tasks to be forgotten about, so we’re grateful to both Ashleigh and Maya for helping us with some much-needed renovation work.
“I was really impressed by the speed in which they worked and their commitment to the jobs at hand – which even included Maya getting covered in paint at one point!
“Some of our previous residents and the 12 young people that are currently in our care are understandably nervous and anxious so we really want to make Lawrence House as homely and friendly as possible.
“The positive and helpful relationship we are developing with UK Flooring Direct is encouraging, and we are keen to collaborate again and support our residents in any way we can as we all start to turn our attention towards the autumn.”
Hinckley Homeless Group welcome young people from across the Hinckley and Bosworth area, as well as individuals in need from Nuneaton, Blaby and areas of north west Leicestershire.
To find out more about Hinckley Homeless Group, including how to donate and the application process for a place at Lawrence House, visit www.hinckleyhomeless.com.
In a month’s time, on Monday 14 November 2022, the free to attend East Midlands Expo will return!
Taking place at the East Midlands Conference Centre, Nottingham, the established event of over 20 years has everything you require for a great day of business generation, with the chance to meet more potential clients in one amazing cost effective day, than it would take months out on the road.
A well targeted exhibition and networking opportunity, aimed at the construction, property, business, investment, finance, professional services and related B2B markets, register to attend the event for free here.
The day, for which Business Link is a proud partner, will begin with exhibitor breakfast networking, with the exhibition opening to attendees at 9am.
A seminar will take place between 10:45am and noon with BSP Consulting’s directors Mark Rayers and Tony Goddard lined up to present ‘Sustainability and how engineering plays its part’.
Not to be missed, a special networking lunch (for which tickets can be purchased here) will then take place between 12:15pm and 2:15pm, and the exhibition will close at 3:30pm.
For more information on exhibiting at the event click here.
To register to attend the event for free click here.
To secure tickets for the networking lunch click here.
From property agents to developers, architects, contractors, investors, PR firms, and more, see the list of current exhibitors here.
Multi-sector HR firm, Breedon Consulting, has announced the launch of its franchise packages in the UK, as it reaches year on year growth.
With two franchises currently operating in Northamptonshire and North Buckinghamshire, interest and uptake in Breedon Consulting’s franchise model has since gathered pace, motivating the launch of the firm’s new franchise packages, targeting HR professionals and individuals looking to set up on their own.
Research suggests that 64% of the UK’s workforce want to start a business with the primary reasons of being their own boss and to improve their earnings, according to SME Loans. Becoming a franchisee gives individuals the benefit of being their own boss without the risk of starting their own independent business from scratch.
Located in the heart of Ashby-de-la-Zouch, Leicestershire, Breedon Consulting has seen a record success of retaining long term clients alongside welcoming new clients via referrals, with a 30% increase during the first year of the pandemic.
The franchise package will include a five-year renewable franchise agreement, a comprehensive operational manual and intranet, a geographic territory of over 11,000 SME limited company businesses alongside smaller sole trader businesses and academic institutions.
Other incentives involve full business administration and set up support, integrated CRM, finance and business planning systems, full ongoing IT support, holiday cover, coaching and drop-in sessions to work with franchisees on an ongoing basis.
On the business’s franchise launch, Managing Director of Breedon Consulting, Nicki Robson, said: “We are thrilled to announce the launch of our franchise packages and look forward to seeing the fantastic reputation we have built locally mirrored nationwide.
“Expanding the franchise network gives Breedon Consulting the ability to grow geographically, allowing a nationwide team of HR specialists to confidently build their own business with a fantastic brand, providing exceptional professional support to SMEs.”
Wendy Slater, Northants Branch franchisee, said: “I was originally a client of Breedon Consulting and they provided much needed support for our business, which was tailored to our specific needs. It was such a refreshingly commercial form of HR support that when they said they wanted to open more branches nationwide I jumped at the chance to join them!
“As well as providing excellent training, you get access to all their systems which are intuitive and integrate with each other. There is a full bank of templates and collateral which means there is little you have to create yourself, just tailor for your client. The most important element is the breadth of offer from Breedon which covers all of the HR support a client could need. We also have access to the Head Office team, if you need any help or support.”
The consultancy looks to set up a franchise per quarter over the next three years.
IMA Architects (IMA), based in Blaby, Leicester has welcomed two new team members.
Tasawar Rahim joins the company as a Part 2 architectural assistant and Jessica Moody as an architectural assistant.
The two new appointments come as a result of consistent business growth and new contract wins, including a £6m project in Saudi Arabia and numerous projects with Clowes Developments, one of the UK’s largest privately owned property investment and development companies.
Originally from Bangladesh, Tasawar has previously worked in Iraq where he has worked on a range of small and large residential projects. Tasawar has a Master of Architecture (March/RIBA Part 2) from the Manchester School of Architecture and a BA (Hons) Architecture (RIBA Part 1) from the Kent School of Architecture.
Speaking on the new role, Tasawar said: “Having been exposed to different cultures and environments I’ve learnt how to produce diverse concepts – and this is something I hope to enhance further. At IMA, I will get the opportunity to work on projects that have different scales and typologies, and I can’t wait to get stuck in.”
A recent graduate, Jessica joins the team fresh out of University with a BSc (Hons) Architecture degree from the Welsh School of Architecture in Cardiff. She has also successfully completed the RIBA Future Architects Student Mentoring programme.
Jessica Moody
In their roles at IMA, Tasawar and Jessica will be responsible for the Design and Development of large-scale industrial projects as part of a wider team.
On joining the team, Jessica commented: “I am really happy to be joining the IMA team and look forward to applying my new qualifications – and my curiosity – to the creation and development of architecture. And I look forward to embarking on new challenges with a reputable company.”
Ian McCann, IMA’s Managing Director, added: “We are delighted to welcome Tasawar and Jessica to IMA, adding two new strings to the company’s bow and supporting new talent into the industry. Today, our team – which has grown by 66% in the last 24-months – has over 100 years’ experience in the industry and, with significant growth across all business areas, there are no plans to slow down.
“A strong and diverse staff base is key to our continued business success. We employ talented architects, designers and technologists ranging from graduate staff to Chartered personnel, and we’re targeting a further 20% growth by 2024.”
Nottingham-based wealth manager Fiscal Engineers has named KPMG’s Anthony Hambleton as its new CEO.
Hambleton will succeed Wayne Cox, who will retire from the role at the end of 2022 after seven highly successful years with the company.
Cox will retain an advisory position and will also work alongside Hambleton during a carefully planned handover period.
The pair were previously colleagues at KPMG, where Hambleton has served as a partner and led the firm’s Audit practice in the East Midlands.
Hambleton said: “I’m extremely excited by this move, because everyone in our profession is aware of Fiscal Engineers’ outstanding reputation. I’ve also known Wayne and other members of the team for many years, so I really feel like I’m joining a family I’ve been close to for a long time.”
Hambleton added: “Wayne has done an amazing job, and I know I have a tough act to follow. The fact that we’re going to be able to work side by side while I settle in will ensure a seamless transition, which is what our clients would expect.”
Shane Mullins, Fiscal Engineers’ founder and executive chairman, said: “We’ve had time to think about how to make this process work to best effect. We’re very fortunate to have such a flexible arrangement, with Wayne and Anthony sharing knowledge and expertise during the handover period.
“We’re confident this collaborative approach will help Anthony maintain the extremely high standards Wayne has set during his time as CEO. We pride ourselves on helping our clients navigate periods of transition, and we’re sure they’ll find this transition a smooth and effective one.”
Cox added: “I said when I arrived at Fiscal Engineers that I was attracted to the idea of a people organisation very much built around relationships. I know Anthony recognises those same qualities, and I’ve no doubt he’ll make sure we continue to stand apart from the crowd in that respect.”
Nationwide independent financial advice and fund management firm One Four Nine Group has made its sixth acquisition with the purchase of Nottingham-based HFL Financial Advisers Ltd.
The purchase, completed less than one year since One Four Nine’s inception, means the group now has 80 team members managing over £1 billion assets on behalf of 3,000 clients across the UK.
HFL Financial Advisers Ltd (HFL) was established in 2013 by Peter Haigh, Peter Frogson and Nic Lewis, who collectively boast more than 100 years of experience in financial services. The team have spent almost a decade building their client base across the East Midlands offering advice on pensions, investments, mortgages and financial protection.
Matthew Bugden, Chief Executive Officer, One Four Nine, said: “I have personally known the senior team at HFL for many years, therefore it is incredibly rewarding to be able to welcome them to the One Four Nine family and bring their considerable expertise to our team.
“Having a firm of HFL’s quality choose One Four Nine as their home is an excellent endorsement of our leadership team, company values and culture – a collaborative environment where financial advisers and their teams are supported with market leading technology and infrastructure.”
Gabrielle Beaumont, Managing Director, One Four Nine, said: “The acquisition of HFL marks a significant moment in the evolution of One Four Nine – coming within one year of the group’s launch and brings us to a milestone £1 billion of client assets – a target our team has worked exceptionally hard to achieve.
“With an expanding team across Scotland, the East Midlands, the North and the South-East, we have carefully grown our senior leadership capability and built the foundation needed to integrate new and existing team members, creating a sense of unified purpose and brand identity. With all that has been achieved in our first year, and further quality adviser firms to bring into the One Four Nine fold, we are hugely excited about what our second year will bring.”
By continuing to use the site, you agree to the use of cookies. more information
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.
