Inflation stays stable at Bank of England’s target
Inflation has held steady at the Bank of England’s 2% target, according to new figures from the Office for National Statistics (ONS).
Measured by the Consumer Prices Index (CPI), which rose by 2% in the 12 months to June 2024, the same rate as the 12 months to May 2024, it means prices in June increased at the same rate as May.
The largest upward contribution came from restaurants and hotels, where prices of hotels rose more than a year ago; the largest downward contribution came from clothing and footwear, with prices of garments falling this year having risen a year ago.
Core inflation, meanwhile, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, rose by 3.5% in the 12 months to June 2024, the same rate as in May.
Martin Sartorius, Principal Economist, CBI, said: “The fact that inflation is stable at the Bank of England’s target will be welcome news for many households as we start to see things return to normal after period of high price growth. However, it’s worth noting that many have yet to feel the benefit of lower inflation due to the high level of prices, particularly for food and energy bills.
“Today’s data paves the way for an interest rate cut next month, which would begin to provide some relief for firms and households that are struggling with high borrowing costs.
“Going forward, the Bank’s Monetary Policy Committee will be mindful of potential upside risks to inflation in the near-term as the domestic growth outlook improves. They are also likely to move carefully as they assess the impact of the first rate cut in four years.”
Greggs to create new National Distribution Centre in Kettering
Tritax Symmetry has announced plans for a new National Distribution Centre for Greggs plc at Symmetry Park, Kettering.
The planning application details proposals for 311,551 sq ft of logistics space on a 25.1-acre plot. The unit will be designed to a BREEAM ‘Very Good’ standard, achieving an EPC A rating and meeting Net Zero Carbon in Construction requirements.
The initiative is part of Greggs’ strategic growth plan, announced in 2021, which set out ambitious expansion targets requiring investment in significant supply chain capacity.
Greggs currently has 2,500 shops and its longer-term growth plans target an estate of significantly more than 3,000 shops in the UK. This investment will bolster its capacity to directly supply ambient and chilled products to a growing portfolio of shops.
Tritax Symmetry is also seeking planning permission for an additional 100,000 sq ft to enable Greggs to expand the site further. The centre will be a key part of Symmetry Park, Kettering, which extends to 136 acres in total and benefits from outline planning permission for 2,310,000 sq ft of logistics floor space overall.
Subject to planning, Greggs expects its National Distribution Centre on Symmetry Park, Kettering, to be operational in the first half of 2027.
Tritax Symmetry is being represented by BNP, Cushman and Wakefield, and DTRE. Wright Silverwood is representing Greggs.
Gateley continues revenue growth streak
Gateley has hailed a “good financial performance” in its audited results for the year ended 30 April 2024 (FY24), as the professional services group extends its unbroken record of revenue growth since IPO in 2015.
The business increased revenue by 6% to £172.5m, while delivering an underlying profit before tax of £23m (slipping from £25.1m in the previous year) after reinstating the payment of employee bonuses of £4.5m.
Gateley said this was “in recognition of our people’s contribution to a resilient outturn and our more positive outlook as we move into FY25.”
During the year, the company continued execution of its M&A strategy with the July 2023 acquisition of Richard Julian and Associates Limited (RJA).
Rod Waldie, CEO of Gateley, said: “I am pleased with our FY24 outturn given our cautious view of market conditions during the Period, particularly around the turn of the calendar year in H2. Our people have worked hard to deliver another year of growth via our increasingly diverse and resilient business model, combining complementary legal and consultancy services.
“During the Period we continued to make organic and acquisitive investments in both our legal and consultancy services and in related systems. RJA Consultants was acquired onto our Property Platform in July 2023, adding further expertise and capacity to our quantity surveying and project management offering. It is already performing ahead of the board’s expectation.
“Our legal services class actions team, established in May 2023, launched its first case in late February 2024. Our investment in this team is a high-profile example of the type of investment that we are looking to make to enhance our returns over the medium to longer-term.
“Our M&A and lateral hire pipeline remains encouraging and we are committed to further enhancing each of our Platforms as suitable opportunities arise, aided by our net cash position and ample headroom in our banking facilities.
“Looking forward, we are encouraged by strengthening transactional activity levels, which began in Q4 FY24. Our immediate outlook is best characterised as cautiously optimistic. Our resilient and financially robust foundation, allied to our unbroken track-record of growth, underpins our confidence to continue our long-term strategy of investment in people and systems.
“This strategy has worked well for us since IPO in 2015 and through disciplined application of it, we ensure that the Group remains well-positioned for further growth and enhanced returns for all stakeholders.”
Duo of solar projects get go-ahead in Lincolnshire
Plans for two new solar projects are set to go ahead in Lincolnshire, despite local opposition.
The Gate Burton Energy Park application and Mallard Pass Solar Project application have been granted development consent by the Secretary of State for Energy Security and Net Zero.
Boston company closed down after Insolvency Service reveals loan misconduct
An eel protection business based at Boston in Lincolnshire has been closed down after investigations by the Insolvency Service revealed two cases of government loan misconduct.
The Eel Screen Company Ltd, based on Dolphin Road in Boston, was wound up at the High Court in Manchester. The company provided inaccurate and inconsistent information when it applied for a £50,000 Bounce Back Loan in 2020 and a £225,000 Recovery Loan Scheme payment in 2022.
David Hope, Chief Investigator at the Insolvency Service, said: “Our investigations revealed concerns that The Eel Screen Company was being used as a vehicle to fraudulently obtain significant, government-backed loans during the pandemic.
“Bounce Back Loans in particular were made available for trading businesses adversely affected by Covid and were issued based on what should have been accurate financial statements.
“The Insolvency Service will not hesitate to apply to have companies wound-up in the public interest in such cases.”
Insolvency Service investigations into The Eel Screen Company began in August 2023. One of the former directors of the company told investigators that the business was involved in the installation of screens to protect eels in rivers. A second director of The Eel Screen Company said it had since moved into drainage and most recently the construction business. The Eel Screen Company obtained a £50,000 Covid Bounce Back Loan in May 2020, claiming an annual turnover of £320,000 for 2019. Analysis of the company’s bank account showed a turnover of just over £49,000 for that year, with no loan repayments made despite this being a condition of the scheme. The Eel Screen Company followed this misconduct up with a £225,000 application in January 2022 under the Recovery Loan Scheme, which supports SMEs to access the finance they need to grow and invest. Insolvency Service investigators found inconsistencies in the accounts and VAT returns submitted as part of the application as well as bank statements that appeared not to be genuine. Of the £225,000 The Eel Screen Company received, £148,000 was withdrawn as cash. The company made one repayment under the loan agreement to date, with £213,750 plus £30,726 in interest outstanding. Current and former directors of The Eel Screen Company also failed to produce accounting records on request to the Insolvency Service. The Official Receiver has been appointed as liquidator of the company.Business park expansion ready for take off
Plans to continue the development of Airfield Business Park in Market Harborough have been approved.
Leicestershire County Council’s Airfield Business Park, located next to the roundabout on the B6047 Harborough Road, has been fully let out to businesses since the first companies moved in during December 2019.
The next phase of the development will boost the local economy as well as generate income for the authority.
An application for 11 business units and two drive-thru food & drink units was approved by Leicestershire County Council’s Development control and regulatory board at their most recent meeting on Thursday (11 July).
As with the other phases of Airfield Business Park, commercial units range in size to cater for a variety of business needs.
Four businesses have already expressed their interest in occupying the units, including a Costa Coffee at one of the drive-thru units and three of the commercial units.
One of the commercial units is set to be leased to Bramble Foods, a fine foods manufacturer and distributor employing more than 150 people in Market Harborough. They currently lease a unit on Airfield Business Park and will take occupation at a 67,000 sq ft unit to expand their growing business.
The county council-led development will continue to be built with sustainability in mind, with this phase of the development featuring sustainable construction methods such as the use of solar panels, electric car charging points, insulation and the use of best practice construction methods.
Councillor Lee Breckon, cabinet member for corporate resources, said: “Airfield Park has been an incredibly successful development already and we’re excited to move onto our third and final phase.
“Based on the interest we’ve already had we know more businesses are ready to make the move to Airfield Business Park and into Market Harborough, which will continue to bring benefits to the local economy and local jobs.”
Upperton Pharma Solutions marks significant achievement at newly commissioned 50,000 sq ft facility in Nottingham
Upperton Pharma Solutions, a contract development and manufacturing organisation (CDMO), has announced the successful completion of a Medicines and Healthcare products Regulatory Agency (MHRA) inspection at its newly commissioned 50,000 sq ft development and GMP manufacturing facility in Nottingham.
This milestone inspection, conducted by the UK Government’s regulatory authority, marks a significant achievement for Upperton Pharma Solutions following the completion of the build, commissioning, validation and approval of the facility in just 18 months.
With the successful MHRA inspection approval, Upperton Pharma Solutions has further enhanced its offering, supporting the development of oral, nasal, and pulmonary drug products underpinned by the capability to provide Phase I, II, and III clinical supplies.
Nikki Whitfield, CEO of Upperton Pharma Solutions, said: “We are absolutely delighted to achieve this milestone.
“We have been conducting manufacturing scale-up activities since the start of the year following the installation of the larger-scale solid oral dosage form process trains and this gives the green light for our GMP facility to support clients right through to late-phase clinical manufacture and product registration.”
The successful MHRA inspection enables Upperton Pharma Solutions to transition from research and development (R&D) to GMP manufacturing and commercialisation on one site, following recent investment in large-scale process equipment including a Gerteis Mini-Pactor ®, GEA Post Hoist Blender, O’Hara M50 Tablet Coating System and a ZANASI 40 Capsule Filler.
Paul Kelsall, Director of Clinical Manufacturing, said: “This is a dedication to the tremendous hard work our colleagues have put in to achieve the targets and aspirations of our business.
“We are looking forward to working with our clients and offering services from early-stage development through to late-stage clinical manufacture and Product Registration. These are exciting times for Upperton as we continue to move forward and expand our capabilities.”
Land sold for affordable housing scheme in Rothley
Specialist land development and property consultancy Mather Jamie has negotiated the sale of land on Cossington Lane in Rothley for development as an affordable housing scheme.
Mather Jamie were instructed by a private landowner to seek developer interest in a consented development site in Rothley which had been successfully self-promoted by the landowner who obtained Outline Planning Permission for 40 dwellings.
The land has been purchased by housing provider Longhurst Group, which owns and manages more than 24,000 homes across the Midlands and East of England.
Marcus Keys, Executive Director of Growth, Development and Assets at Longhurst Group, said: “We’re committed to providing the homes people want, where they’re needed most and so this opportunity to build much-needed affordable housing in this part of Leicestershire is an exciting one for the Group.
“We’ve been working closely with our partners to make this deal happen and develop our reserved matters planning application.
“I’m looking forward to the next stage of this process and seeing our plans become a reality as we enable more local people to take their first step onto the property ladder.”
The land sale was facilitated through MyPad, an established residential developer based in Beeston, which specialises in land, design, and build packages, partnering with Registered Providers. MyPad will be delivering the site as main contractor with construction expected to start in July 2025 with the first units ready for occupancy by January 2026.
John Turner, Land and Partnerships Director at MyPad, said: “We are thrilled to have secured the delivery of this new development. The opportunity aligns with the growth ambitions of our business and our commitment to addressing the acute need for affordable housing in the area.
“We extend our gratitude to Mather Jamie, the landowner’s agent, and Longhurst, our Registered Provider Partner, for their professionalism and pragmatic approach throughout the negotiations.
“We intend to build on our positive early engagement with Charnwood Borough Council to ensure our proposals address specific affordable housing need and make a positive impact on the local community.”
Work completes on £16.5m low carbon innovation hub in Leicester
Brackley Property Developments (BPD) has completed construction of a new £16.5 million low carbon innovation hub in Leicester, on behalf of Leicester City Council.
The Dock extension project has created three new buildings which deliver c.65,000 sq ft of purpose-built accommodation for hi-tech industries in an area of Space City formerly known as Pioneer Park, within Leicester’s Science and Innovation Enterprise Zone.
Known as Docks, 3, 4 and 5, the new buildings include two new offices that cater for up to 45 businesses across c.43,000 sq ft. A terrace of nine manufacturing units provides more than 21,500 sq ft for innovative start-ups and established businesses seeking grow-on space.
The new buildings are net carbon zero in operation and require no gas heating. They house a range of environmentally sustainable features, such as low energy LED lighting, roof-mounted photovoltaic panels on the offices, air source heat pumps, and super-thick insulation. Externally there is cycle storage and 12 electric vehicle charging points in a new parking area.
The Dock extension has been designed to complement the look and feel of the original Dock workspace buildings and is part of Space City Leicester, one of the largest Enterprise Zones for space-related activities in the UK.
Stephen Pedrick-Moyle, Managing Director of BPD, said: “We are very pleased to have delivered the expansion of the successful Dock managed workspace development for Leicester City Council.
“These three new energy efficient units deliver purpose-built space for exciting new businesses in a range of sectors. Extending the Dock innovation hub will undoubtedly support the attraction and retention of local talent and hi-tech entrepreneurs, ensuring Leicester continues to be a hub for research, production and manufacture in the space industry.”
Leicester City Mayor Sir Peter Soulsby said: “It’s fantastic to see the next chapter of our innovative workspace development for hi-tech businesses take shape.
“Space City Leicester is helping to put our city firmly on the map for research, production and manufacture in the space industry.
“We’re proud to contribute to that momentum by further expanding our Dock innovation hub with three new, low carbon buildings which will help meet demand from businesses keen to locate here from the UK and overseas. The new buildings will also provide valuable grow-on space and much-needed manufacturing facilities for our local talent and high-tech entrepreneurs.
“The new buildings are looking fantastic and I’m particularly pleased that we have been able to work with locally-based Brackley Property Developments as our development partner on this ambitious project.”
The development was supported by £12 million from the previous government’s Levelling Up Fund, with the Leicester and Leicestershire Enterprise Partnership providing £3.5 million from Enterprise Zone retained business rates.
Prominent Nottingham city centre investment with redevelopment potential hits market for £2.3m
Watling Real Estate has been appointed to sell a prominent, mixed-use, city centre investment in Nottingham.
Ben Holyhead and Toby O’Sullivan of Watling are seeking offers in excess of £2.3 million for Huntingdon House at 278-290 Huntingdon Street, Nottingham.
The 16,256 sq ft is currently 69% occupied, producing gross annual rental of £297,886, but the agents stress that the site has potential for change of use and redevelopment, subject to planning.
Huntingdon House is held long leasehold, on a 125 year lease from August 1977 at a peppercorn rent, however, the freehold is owned by Nottingham City Council which is understood to be open to discussions on the sale of the freehold.
The property comprises a three storey building, providing multi-let retail space and serviced office accommodation, with covered car parking with 14 spaces to the rear. This includes four self-contained shops at ground level, each overlooking Huntingdon Street with return frontages on to Rick Street and Kent Street.
The first and second floors provide a mix of open plan and cellular office accommodation, currently operated as a serviced business centre.
Ben Holyhead, associate in Watling Real Estate’s Birmingham office, said: “The immediate area comprises mixed-use property, but high demand for student and residential accommodation within Nottingham city centre is driving change of use development.
“Huntingdon House offers various asset management opportunities, via rental uplift, refurbishment or redevelopment, or potentially change of use to student, residential or co-living accommodation, subject to planning permission.”
