Joules to simplify operations as first half impacted by severe inflationary cost environment
Group revenue has increased by 35% to £127.9m at Joules, the Market Harborough-based lifestyle brand. However with Group profitability impacted by factors including the severe inflationary cost environment, the company has said it will simplify operations.
The business has also been hit by global supply chain issues and labour shortages.
In interim results for the 26 weeks ended 28 November 2021 (H1 FY22), the group posted a pre-tax profit of £2.6m, decreasing from £3.7m in the same period of the year prior.
Meanwhile store revenue increased by more than 80% to £35.5m (H1 FY21: £19.7m), reflecting a strong recovery in retail demand to almost pre-pandemic levels.
Total e-commerce sales across the Group’s websites and third-party e-commerce partners increased by 14% against the prior period, and 53% on a two-year basis, driven by Garden Trading (acquired in February 2021) and strong performance through the Group’s digital partners.
Nick Jones, Chief Executive Officer, said: “Whilst the Group experienced strong levels of customer demand that resulted in good revenue growth against the prior two comparative periods, Group profitability in the first half was impacted by various factors, most notably the severe inflationary cost environment.
“We have a clear plan of action to simplify the business, enhance efficiencies and mitigate the cost pressures that will enable the Group to convert the strong levels of customer demand into sustainable, profitable growth.
“Whilst we acknowledge that there are areas within the business where we need to simplify our operations and improve profitability, we remain very excited in our long-term growth prospects.
“We have continued to see improvements in brand awareness and customer numbers, and we are confident that our broadened lifestyle proposition – which benefits from increased product and category diversification through Friends of Joules and Garden Trading – is more relevant than ever to consumers.”
First half performance sees Mattioli Woods “thrive”
Adjusted profit before tax is up 95.9% to £14.1m at Mattioli Woods, the specialist wealth and asset management business, according to interim results for the six months ended 30 November 2021.
Revenue meanwhile has increased by 69.1% to £49.9m, compared to £29.5m in the equivalent period of the year prior, driven by positive contribution from acquisitions, strong organic growth, and increased new client wins.
Ian Mattioli MBE, Chief Executive Officer, said: “The first six months of this financial year saw the Group build momentum, having shown resilience in spite of the economic and political complexities that persisted throughout 2021.
“During the period, we proactively balanced securing good financial outcomes for our clients with ensuring the long-term sustainability of our business, remaining true to our purpose of putting clients first in all that we do.
“We are pleased to report further material progress towards our strategic medium-term goals, with total client assets now up 24.4% to a record £15.1bn (31 May 2021: £12.1bn). This also sees the Group pass a significant milestone, delivering on one of our previous strategic goals to manage more than £15bn of client assets.
“Revenue of £49.9m was 69% higher than the equivalent period last year (1H21: £29.5m) driven by positive performances in our pensions consultancy and administration, and investment and asset management operating segments.
“Pleasingly, and in support of improved organic growth trends, the number of new clients on-boarded in the first half and net inflows into the Group’s investment and asset management services are ahead of the equivalent period last year. This renewed momentum reflects the success of new business initiatives and strength of existing client referrals, with organic revenue growth in excess of 11% for the period, our strongest performance since 2018. These initiatives, alongside our increasingly diversified service offering, have also generated an increased pipeline of new business enquiries.
“The eight acquisitions completed since 1 June 2020, including our two largest acquisitions to date: Maven and Ludlow, contributed £19.4m (1H21: £2.0m) of revenue in the period. The contributions from these recent acquisitions, organic growth and continued cost management resulted in adjusted EBITDA up 77% to £15.8m (1H21: £8.9m).
“Profit before tax of £3.3m (1H21 restated: £4.2m) was down 23% driven by increased acquisition-related costs of £2.6m (1H21: £0.1m), while adjusted profit before tax was up 96% to £14.1m (1H21 restated: £7.2m) after adding back acquisition-related costs, amortisation of acquired intangible assets of £3.3m (1H21: £1.3m) and deferred consideration on acquisitions recognised as an expense under IFRS 3 of £4.6m (1H21: £nil).
“We are pleased by our performance in the first half of the financial year, which has seen the Group thrive. We plan to build on this positive momentum, advancing our key strategic initiatives: new business generation, growth through the integration of strategic acquisitions, developing new products and services, reviewing our processes and investing in technology to deliver an improved digital client interface and further operational efficiencies.
“Our trading outlook for the year remains in line with management’s expectations and we believe the Group is well-positioned to grow, both organically and by acquisition. We are committed to delivering our ambitious growth strategy and in doing so create a business that remains responsibly integrated for the benefit of our clients and well-positioned to deliver sustainable shareholder returns.”
Former Norton Motorcycles owner admits pensions crimes
A former owner of Norton Motorcycles has admitted illegally investing money into the business from three pension schemes for which he was the sole trustee.
Stuart James Garner, of Park Lane, Castle Donington, pleaded guilty to three charges of breaching employer-related investment (ERI) rules by investing more than 5% of assets from each scheme into his business, Norton Motorcycle Holdings Ltd.
Derby Magistrates’ Court heard yesterday (Monday 7 February) how the offences were in relation to three defined contribution schemes: Dominator 2012, Commando 2012 and Donington MC which had a total of 227 scheme members. The investments, which were made in return for preference shares, were made between 2012 and 2013.
Nicola Parish, executive director of frontline regulation at The Pensions Regulator, said: “As a trustee, Stuart Garner failed to comply with restrictions on investments which are designed to protect the funds of pension schemes.
“Trustees have a vital role in protecting the benefits of members and we will take action where that responsibility is abused. Trustees should be clear on when a pension scheme can invest in its sponsoring employer.”
As set out in Regulation 12(2) of the Occupational Pension Schemes (Investment) Regulations 2005, subject to certain exceptions, it is a criminal offence to invest more than 5% of the current market value of scheme resources in ERIs.
Mr Garner is due to appear at 10am on 28 February at Derby Crown Court for sentencing.
Manufacturers call for unique sector approach on apprentice funding
Britain’s manufacturers are calling on Government to adopt a special approach to how the manufacturing sector can spend their companies’ left-over levy funds, currently expiring and going to waste.
They are asking to be able to spend those funds – which amounted to nearly £2bn last year – to pay the wages of new apprentices, a move which would allow a significant boost to new young recruits into the sector.
Manufacturing has already been officially recognised as a growth sector by Government, and the sector is ideally placed to help deliver the Prime Minister’s promise of more good jobs in those left-behind areas of the country where he has pledged to focus his levelling up agenda.
With a high proportion of manufacturing companies based in the so-called Red Wall areas of Britain, manufacturing can create more high wage, high-value job opportunities to help the UK level up. The sector already delivers wages higher than the rest of the economy with 2.7 million jobs countrywide. This sits alongside a £191 billion contribution to national output with massive growth potential and agility in the sector to expand.
In spite of last year’s pandemic, 47% of manufacturers still managed to recruit an engineering or manufacturing apprentice, but only 45% say they plan to do so in this coming year. There remains untapped potential with almost a fifth considering taking on apprentice in the next 12 months.
Jamie Carter, senior policy manager, Make UK, said: “With a bit of flex in the levy spending arrangements, manufacturers could do even more in terms of building the workforce of the future. Manufacturers are telling us they are keen to take on more apprentices to fill the skills gap which would in turn allow businesses to grow and help level up regions.
“During the pandemic manufacturers showed the amazing agility of the sector, with many switching production lines almost overnight to produce vital PPE products for the NHS and the sector is ripe for further expansion.
“Currently an average four year engineering apprenticeship can cost a business up to £120,000 to deliver, yet just £27,000 of that cost is currently claimable from levy funds. The system as it currently stands often leaves companies struggling to pay an apprentice, leaving their levy contribution unspent.
“Government has already recognised manufacturing as a growth sector, so allowing businesses to recruit an increased number of apprentices with the flexibility to support them financially by using their excess levy funds for wages. A special targeted approach to levy funds would go a long way to allowing manufacturers to deliver even more high-wage, high-value job opportunities across the UK.”
Construction gets underway on 43,000ft² warehouse in Leicester
Urban Logistics REIT and Wilson Bowden Developments have begun construction on a new speculative warehouse/distribution unit in Leicester that will be available by the end of April 2022.
The property sits directly off the A46 and Junction 21 of the M1 motorway.
The Grade A warehouse will offer 43,850ft² with 12 metre eaves and both dock and level access doors. The site will offer a self-contained securely fenced and gated service yard and car parking area.
Tim Gilbertson, director of FHP Property Consultants, said: “Leicester and its environs is a terrifically strong market and this new build unit of over 40,000ft² should go extremely well given the strength of demand in the marketplace and the number of enquiries we continue to receive.
“Credit to our clients here for ‘grasping the nettle’ and pressing on with speculative construction. I am very confident that we can have this building with a deal agreed in the coming months ready for an occupier to move into from practical completion in spring 2022.”
Toby Wilson of Urban Logistics REIT added: “Leicester continues to experience robust demand with limited new build Grade A options. This is a well located high specification unit with excellent sustainability credentials and a good surrounding labour supply, situated in an established and successful warehouse location offering easy access to both the A46 and M1.
“The lack of stock in the area for sub-50,000ft² buildings is generating good levels of initial interest pre-completion in April of this year.”
John Barker of Urban Logistics REIT said: “Leicester is a fantastic market which like most Midlands locations benefits from great road links and a market which is hugely under supplied in terms of available stock with demand continuing unabated.
“The building will be ready for occupation by the end of April this year and we do hope that the initial strong interest generated by our agents will see a deal completed well before completion of the building.”
Regeneration scheme to bridge the skills gap in Worksop
Bassetlaw District Council and the RNN Group will be bridging the skills gap in North Nottinghamshire with a new partnership that will deliver better futures for local people.
The RNN Group confirmed this week that they will be the first education provider to deliver opportunities at ‘The Bridge – Skills Hub’, the Council’s flagship regeneration project that is currently taking shape at Bridge Court in Worksop (formerly badged as the Worksop Access to Skills Hub).
Creation of ‘The Bridge’ has been supported by the D2N2 Local Enterprise Partnership with funding of £3.5million from their allocation of the Government’s Getting Building Fund.
The Bridge will welcome students, businesses and learners in April this year through courses that will provide access to Higher Education and meet the emerging needs of local and regional employers.
As well as initially offering opportunities across a range of subjects including Health and Social Care and Leadership and Management, it is anticipated that more diverse subjects in the fields of digital transformation; green technologies and low carbon and construction will be offered as the provision of skills providers is expanded.
‘The Bridge’ will create 50 jobs and support 300 learners, following a 12-month build project that has seen a long-term vacant building at the gateway to the town centre transformed into a state of the art skills hub. More announcements are expected as the project develops.
Cllr Jo White, Cabinet Member for Regeneration at Bassetlaw District Council, said: “The focus of The Bridge Skills Hub is to change lives, provide new opportunities, raise aspirations and increase local prosperity.
“This state-of-the-art skills hub is being created with modern high-class facilities for its future students to develop and I welcome the RNN Group taking the lead and using The Bridge to increase their range of courses for local people.
“Worksop town centre is desperate for a place like The Bridge; a catalyst that will increase the number of visitors to our high street, support local businesses, shops and cafes, which is really needed in these current, difficult times.”
Will Morlidge, Interim Chief Executive at D2N2, said: “I’m delighted with the progress of this project and the impact our funding is having to increase skills and career opportunities within Worksop and North Nottinghamshire.
“This transformational regeneration scheme will provide a range of opportunities for learners who might never have considered Higher or Further Education, helping to address skills shortages and meet new and emerging needs within the local community.”
Timber transportation company sold to German group
TTS Shipping, a Leicestershire-based timber transportation and logistics company established in 1988, has been sold to Navalis Group, a renowned family-owned German ship-owner.
The two firms have successfully traded together for over twenty years, both specialists in the forest product trade in the North and Baltic Sea, and the acquisition represents a vertical integration into the supply chain for the Navalis Group.
Dougie Bryce, director of TTS Shipping, said: “The acquisition by Navalis heralds the start of an exciting new chapter for TTS. The support of the Navalis management with their history of owning and operating specialised, ice-class, timber fitted vessels will take TTS’ long-established timber lines to another level and at the same time create a secure future for the business, our clients and our suppliers.”
Bryce will stay on as director of TTS for a limited time to enable a smooth transition period for the integration of TTS Shipping in the Navalis Group.
Law firm Geldards advised the shareholders of TTS Shipping Ltd, led by corporate partner Peter Seary with support from colleagues Caroline Findlay (Property) and Andrew Evans (Tax).
Peter Seary, corporate partner, Geldards, said: “We have worked with Dougie Bryce and TTS Shipping for a very long time and were delighted to advise them on this transaction. The meshing of the two companies’ specialist shipping expertise and knowledge promises a bright future for the shipping sector.”
Corporate finance advice for the sellers was given by Dean Curtis and Caroline Monk of Beever and Struthers in Manchester. Navalis was represented by Alex Kyriakoulis and Amy Gyngell of HFW solicitors.
M-EC helps to ‘Build the Future’ with its 2022 Apprenticeship Programme
Based in Leicester and Brighton, operating nationwide, M-EC is a quality driven firm of technical development consultants, providing engineering consultancy for a range of industries and sectors.
The team is passionate about learning and development and has been offering apprenticeships across its different engineering and environmental disciplines since 2012.
Dedicated to supporting individuals to succeed and achieve their ambitions, during National Apprenticeship Week 2022 (7th to 13th February), M-EC will be launching its next intake of apprentices. There are opportunities available for eager and enthusiastic school leavers and A level graduates in civil engineering and geotechnical drilling.
M-EC’s head of people, Joanna Stevens, said: “Growing our business while supporting the local community with training and development opportunities is important to us and sits well alongside this year’s National Apprenticeship Week theme of ‘Build the Future’.
“We have excellent opportunities available this year including Level 3 and Level 6 Civil Engineering apprenticeships, suitable for a passionate and ambitious GCSE school leavers and A level graduates. There will be opportunities to work on a range of projects and learn about civils, structures and flood risk by joining M-EC as Civil Engineering Technicians.
“In addition, we are teaming up with the British Drilling Association to offer the opportunity for a Trainee Geotechnical Driller apprentice to be trained as a ‘second man’ assistant driller on our drilling rig.”
This is the tenth year of offering apprentice opportunities and M-EC is keen to find new trainees to join the team in delivering engineering consultancy services for both private and public sector projects including residential, commercial, industrial, retail, leisure, education and healthcare.
Last chance to win a free office design
Entries close tonight at midnight for a chance to win a free office design as part of the 25th anniversary celebrations for Lincolnshire commercial office design and refurbishment company APSS.
As businesses across the UK have been forced to adapt to a post-COVID working life, many companies have been forever changed.
“The way offices are used has changed, and businesses need to ensure they reflect the new way of working,” explained Stuart Marsland, sales director for APSS. “When an office is designed to specifically meet the needs of the business, there is a significant increase in staff morale, as well as productivity. You will find the business flows better and becomes more efficient.
“In addition to celebrating our 25th anniversary, we want to help those businesses who may not have considered bringing in a professional company to redesign their office before. If we can help them to better understand the flow of how their business could work going forward, it will make a huge difference to that company.”
Established in Lincoln in 1997, APSS has evolved from a partitions and storage solution company to providing clients with a full design and fit out service.
APSS specialises in creating offices which showcase a company’s brand, personality and help boost staff morale, productivity, and efficiency using inspirational designs and natural light.
Entries close at midnight on February 7th, 2022. To enter, submit an online form and answer four questions about what both the company and its staff want included in their office environment. The winner will be chosen by a panel of judges and will receive computer-generated images and a video walkthrough of the design to show what potential the office has.
In the last 25 years APSS has completed over 10,000 orders for customers across the country. The company’s first-ever customer was Siemens. Since then, it has designed and refurbished offices and retail spaces for Wren Kitchens, Slimming World, Octopus Energy, Loughborough University, University of Sheffield and Bakkavor to name just a few.
For all terms and conditions of the competition, please visit the APSS website.
Stations on Barton-on-Humber line to receive £400k upgrade
East Midlands Railway (EMR) is to spend more than £400,000 upgrading and refreshing 12 stations along the Barton-on-Humber line.
The works, which aim to improve the overall station environment and travelling experience for customers, include the installation of passenger electronic help points – which allow customers to contact EMR’s customer service centre for information or the emergency services for assistance when required.
The stations will also have benches, signage and platform information replaced and refreshed – as well as new grit bins installed.
Metal fencing will be repainted, timber fences will be stained, while other structures, such as brick shelters and columns, will also be painted – helping to improve the appearance of the stations for customers up and down the route.
Specifically at Thornton Abbey and New Clee replacement fencing will also be erected.
EMR expect the work to be finished by late Spring.
Lisa Angus, Transition and Projects Director at East Midlands Railway, said: “We understand how important these stations are to the rural communities they serve and we hope these improvements will help to enhance the experience for customers who use the line for commuting, to visit loved ones or enjoy the lines scenic tourist locations like Thornton Abbey.
“The improvements are real boost to the line and will provide better signage, seating and information at every station on the route.”
Gill Simpson, Community Rail Officer at Barton Cleethorpes Community Rail Partnership, said: “Station improvements are always a high priority for the BCCRP and every year our members campaign for large scale improvements and fund smaller projects, so this news from East Midlands Railway is most welcome.
“With the high growth of employment opportunities in North and North East Lincolnshire, this is just another excellent reason for people to come to live and work here, and enjoy all the things this area of the country has to offer. The improvements also enhance the station experience for existing residents and casual visitors.”
