Video game label to acquire German firm in £83m deal
Indie video game label, Team17, which has offices in Nottingham, Manchester, and Wakefield, has entered into a definitive agreement to acquire astragon Entertainment GmbH (astragon), a developer, publisher and distributor of sophisticated ‘working’ simulation games based in Germany, for a maximum cash consideration of £83 million.
The initial cash consideration payable is £63 million, with a further consideration of up to £20 million payable in cash on the delivery of EBITDA performance targets for the financial years ending December 2021 and 2022.
In addition, a Management Incentive Plan of up to £6.25 million has been established for the existing management and employees of astragon linked to the delivery of EBITDA performance targets.
The acquisition is not subject to regulatory approval and is expected to complete mid-January 2022. The vendors of astragon are André Franzmann, Dirk Walner and FFF – Beteiligungs GmbH.
Debbie Bestwick MBE, CEO of Team17, said: “We are delighted to welcome the astragon team into Team17, and believe we are joining forces with one of the leading experts in the simulation games space. They have decades of game creation and publishing experience, have built an outstanding and highly devoted community and have developed an outstanding portfolio of owned IP across this genre.
“At Team17, we have always strived to build, develop and publish great content for the widest audience possible. With the addition of StoryToys and the expansion of our Games Label, which includes the recently acquired USA based ‘The Label’ and now astragon, we have significantly expanded Team17’s appeal to the widest ever cross section of gamers, spanning multiple genres and age groups.
“We look forward to working closely with astragon’s joint CEOs Julia and Tim and their whole team who share our ambitions to grow their own IP titles on the path to developing a leading global simulation portfolio brand as part of the Team17 family.”
Julia Pfiffer and Tim Schmitz, CEOs of astragon, said: “Team17 is the perfect home for astragon as we enter into this exciting new chapter. From the first day we felt that Team17 shares the same vision for our games and understands our target group.
“Our goal is to become the number one brand in the field of ‘working’ simulation games. Collaborating with Team17 will enable and help astragon to evolve and focus on this strategy. We look forward to the possibilities that are opened up by working with what we believe to be a great partner to deliver our ambitions.”
Bumper pay increases set for professionals as companies grapple to hold onto top talent
Salaries for white collar professionals will increase by as much as 25% in the first quarter of 2022, as companies bouncing back after the Omicron-slowdown fight to hold onto their best staff.
According to the findings from the Robert Walters 2022 UK Salary Guide, professional services firms are planning to increase their budget for pay raises by 10-15% this year – the largest increase seen since 2008 and almost 3x the inflation rate.
Whilst the biggest pay rises will be reserved for new starters – at least 5% of the increase in payroll budgets will be reserved for existing employees in 2022. These pay raises are expected to be for workers across all seniority levels – from entry-level workers and temporary staff right through to management level and executives.
Pay rises for retention
Almost half of companies (43%) from the Robert Walters survey said they’re planning salary increases for current employees to keep pace with higher pay they’ve awarded new hires.
This will come as a relief to professionals who have stayed with their employer throughout the pandemic, with over half (54%) of workers stating that they are expecting a pay rise this year following a two-year salary freeze.
In fact, two thirds stated that they will leave their job if they are not rewarded fairly, with 75% feeling ‘very confident’ about job opportunities in their sector this year.
Wage compression hits
In the past year wages for new starters grew by 6-8%, and for those professionals who moved into ‘hero industries’ such as technology or health care saw pay hikes as high as +15-20%.
Chris Poole, Managing Director at Robert Walters UK, says: “Wage increases above market value for in-demand hires was a recurring theme of the past year. As a result, we saw new starter salaries outstrip those of existing employees.
“The consequences of this will result in ‘wage compression’ – where existing employees feel their additional experience at the company (over new starters) is no longer valued or has not grown in value over the past two years.
“Looking at the year ahead we will see more companies raise the pay of their existing employees to sit in line with new starter salaries.”
Soft perks growing stale
According to the 2022 UK Salary Guide, it is excellent compensation & benefits (65%), a desirable bonus scheme (53%), and job security (40%) which are the top three values of a post-pandemic professional.
In fact, flexi-hours (29%), remote working (22%), and holiday entitlement (20%) all rank much lower in importance for professionals – perhaps because over half of white-collar workers (53%) stated that they “wouldn’t bother” asking about flexi-working in a job interview in the coming year because they naturally assume “it is a given now.”
Gym discounts, company cars, and voucher schemes have all been traded in for the hope of “inspiring colleagues and company culture” – with over a third of workers (37%) stating this is an important factor in staying on or taking on a new role.
Inflation plays a role
Over a third of businesses (39%) said they’re increasing pay to keep up with rising inflation, but recruiter Robert Walters warns that companies may find themselves in a ‘wage-price’ spiral in the coming year – whereby higher prices and rising pay feed into each other and accelerate even more.
Chris Poole adds: “Many companies decided on their 2022 raises a few months ago before we had a clear picture of how much rising wages for new hires, as well as inflation, would impact the labour market.
“There is little point in companies offering a pay rise as a morale booster if the impact of that increase isn’t really felt in the real world – and so we are increasingly seeing more companies consider the cost-of-living when determining the average pay rise an individual gets.
“Businesses will have to decide how much to raise their salaries to keep their employees, whilst also deciding how much to pass on those costs to their clients and consumers.”
Overseas investors swoop for £2m Derby retail unit
FHP Property Consultants have agreed the investment sale of 7A-12 Albion Street, which is let to TK Maxx and situated in Derby City Centre.
The property is well positioned on Albion Street close to the entrance of the Derbion Shopping Centre and comprises three retail units that have now been combined to create 34,464 sq ft of retail accommodation over three floors.
TK Maxx have occupied the property since 2017 by way of a lease expiring in 2032.
The sale has been agreed to private investors just under the quoting price of £2.25m which represented a net initial yield of 8.56%.
Darran Severn of FHP Property Consultants said: “I am pleased to have been involved in this sale and this has truly been a great result for all parties. The property has been sold to overseas investors who own several other assets that are let to TK Maxx.
“Albion Street has suffered in recent years but many of the shops on this street have changed ownership within the last 12 months and I believe this area will only get better.
“There is good interest at present for investment opportunities where yields are anywhere between 8% and 10% and as a result I have three further sales under offer totalling in excess of £3 million.”
Ooh, I do LOVE a January audit – let’s find out what the press thinks about you: By Greg Simpson, founder of Press for Attention PR
Greg Simpson, founder of Press for Attention PR and the PR and Communications Ambassador for the IoD in Nottinghamshire and Derbyshire, helps you get your PR pumping for 2022.
Right, January’s here and admit it, you’ve already broken half your resolutions around your personal health – bread is sooo moreish though isn’t it? I forgive you.
So, that means you’ve got room for another goal, or even a whole host of them, all designed to get your PR pumping in 2022.
You see, as with anything worth doing or aiming for, we need targets or good old ‘goals’ if you prefer and crucially, we need to know where we are starting from.
This should be the case with your PR efforts too. You may have a resolution to make a more strategic effort with your PR campaign or perhaps you want to rekindle a campaign that spluttered out a little last year? Perish the thought but maybe you didn’t do ANY PR in 2021 whatsoever. It has been known.
As we all know, what gets measured gets managed. So, what might you measure with regards your PR efforts this year and against what benchmarks?
You might look at how many stories you published and issued and how many got used. This is what we call your ‘hit-rate’. How well did you do? For some, the figures will be reassuringly high.
I pride myself on a 100 percent hit rate for my clients but that’s my job and I will only release stories I know will get covered and make a difference for my client. You may have different pressures.
What about the amount of stories you started but honestly, never finished? Maybe time got the better of you or the moment passed? Perhaps you lacked a decent picture or couldn’t herd the cats into place before the news angle fizzled out? This happens a lot, don’t worry.
You might measure how often your pictures got used, whether your quotes were included or check out how many brand mentions you managed to squeeze in.
Many people like to consider the cost/value ratio of advertising v editorial. Essentially how much you ‘paid’ in editorial resource via an agency or in-house v how much that same space would cost if bought as an advert.
I do not do this, it is pretty much taboo now in PR for various reasons I won’t bore you with but it might help as ONE metric to consider.
Rather than this, I’d measure the tone of the coverage. Go for quality over quantity. Does it portray your business as you would wish? Also, was the coverage in the right place?
You can compare all sorts of things and even compare versus your competitors but the key thing is to go for something you can measure fairly easily that makes a difference to you and preferably you can check quarterly. That way you can address problems or embrace opportunities in a far more timely and effective manner.
Finally, do you know what your target media thinks about you? Do they know you? Do they know exactly what you do? Come to think of it, do you know them? Their deadlines? Subjects? Needs? That research is incredibly powerful and will all make a huge difference if you’re planning on getting to grips with PR in the new year.
Here’s to audits!
A former business journalist, Greg Simpson is the author of The Small Business Guide to PR and has been recognised as one of the UK’s top 5 PR consultants, having set up Press for Attention PR in 2008.
He has worked for FTSE 100 firms, charities and start-ups and conducted press conferences with Sir Richard Branson and James Caan. His background ensures a deep understanding of every facet of a successful PR campaign – from a journalist’s, client’s, and consultant’s perspective.
2022 Business Predictions: Tom Moore, Director at WestBridge Group
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Tom Moore, Director at WestBridge Group.
We are often asked – usually ahead of the Chancellor’s Budget – what changes we expect to see in UK tax law. It is notoriously difficult to predict changes to the tax system, but a forecast for the year ahead may be aided by understanding the main factors that drive tax policy.
Whoever is the Chancellor is also an elected politician and the political effect of any tax changes will be a heavy factor in decision making.
The Chancellor, however, also bears the burden of ensuring the country’s long-term economic prosperity and does not work alone. They lead the government department – HM Treasury – that employs the custodians of the UK economy. In Civil Service terms, this is an elite Praetorian Guard that carries out its responsibilities with a resolute determination to protect the nation’s economic interests, whichever party is in power. Their expert and steadying influence is a major driver of decisions on tax.
There can be a tension between decisions that are politically popular and ones which are economically sage – but not always. In some circumstances, a well-judged tax cut can help economic growth and increase tax receipts.
Finally, in fiscal policy, the UK is not an island. International comparisons can give a clue to the direction of travel in tax policy.
After the havoc wreaked on national finances by the pandemic, it would reasonable to expect some revenue raising measure in 2022, especially since there will be time for political wounds to heal before the next General Election. However, much-discussed increases to Capital Gains Tax (CGT) are unlikely (beyond some minor changes). This is a view supported by The Treasury’s cool response to changes suggested by the Office for Tax Simplification. Increases to CGT, counter-intuitively, can decrease overall tax take. The rules apply, predominantly, to the fiscally-mobile who may be attracted to more favourable tax regimes. Rates are already relatively high by international comparison.
More likely are changes to taxes on dividends and perhaps National Insurance. The base of these taxes is much broader (and so the revenue effect is greater) and the Government has already made small increases in rates, without significant political fallout.
The other likely area for change will be VAT which is broadly regarded as a “fairer” tax and produces high yields. It would also not be too surprising to see some form of wealth tax introduced. This could produce significant income and would fit with the government’s ‘levelling up’ agenda.
Additional funding secured for Newark totals nearly £50m
The amount of additional funding secured by Newark and Sherwood District Council for Newark’s economic recovery and future growth totaled nearly £50m in 2021.
Newark and Sherwood District Council, working alongside a range of partners, has been committed to maximising any opportunity or grant scheme available to help deliver its objectives.
The funding is in addition to the £50 million in grants that was paid to support local businesses in Newark and Sherwood during the Coronavirus pandemic in 2021.
Councillor David Lloyd, Leader of Newark and Sherwood District Council, said: “District Council staff, Councillors, and our partners have worked tirelessly in order to put a number of complex bids in to secure investment for Newark and the wider district.
“We are thrilled to have been successful for nearly 50 million pounds in 2021, ranging from developing underutilised land and buildings, to transport infrastructure, to programmes that will create new educational provisions, routes into employment and training schemes.
“We remain, with others, committed to transforming Newark into a vibrant place for people to live, work and visit. Some projects are complete, some are well underway, and others will follow over the next three to five years. I look forward to seeing our plans come to life during the next few years.
“We won’t just stop here though, this is a start not an end. 2022 will see us continue to work with others, to be agile and able to apply for as much additional funding as possible to support residents and businesses all over the district. An up to £25m Levelling Up Fund submission will be prepared for the Sherwood area by the District Council.
“This will sit alongside Nottinghamshire County Council’s submission, supported by the District Council, for the reopening and extension of the Robin Hood line and associated new stations at Edwinstowe and Ollerton. It is only through the ambition and passion of the District Council and its partners to create the best opportunities for businesses and residents that this additional funding has been secured.
“Without this drive, the district would not have this additional £50m allocated. I am incredibly proud of the hard working team responsible for securing this additional investment.”
During 2021, funding was secured for projects including preparatory works for the redevelopment of the former Marks and Spencer site on Stodman Street (£284,000) and the Yorke Drive regeneration project (£1,050,000) via the government’s Brownfield Land Release Fund, which has allocated approximately £58m to local authorities to deliver housing on under-utilised public sector land.
Funding was also granted to the District Council, after a successful application, to launch various projects as part of the UK Community Renewal Fund (CRF), which supports areas to pilot programmes and new approaches that will better support people and communities.
As part of the CRF, just over £1.2m has been allocated specifically to Newark and Sherwood for employment and training support for local people and businesses that will be delivered via four different programmes. These include:
- The East Midlands Accelerator Programme (£578,368) to support businesses to increase their local carbon intelligence, help retail and hospitality businesses to develop their e-commerce, provide finance to help start-up businesses, provide work-based training and mentoring to convert Kickstart and graduate programmes into a sustained job and grants to help businesses with resilience and growth
- The Good Work programme (£135,673) to support people who have complex mental or physical health needs into employment
- The Newstart programme (£402,396) to support people into employment, new business or develop new skills
- Volunteer it Yourself (£153,000) for young people aged 16 to 24 to regenerate community spaces while learning new vocational skills and gaining Entry Level City and Guilds trade skills accreditations and qualifications.
Stapleford Town Centre Recovery Fund opens
Applications are now open for businesses to apply for the Stapleford Town Centre Recovery Fund.
As part of the successful development of the Stapleford Town Deal Programme, a total of £1million has been allocated for the Town Centre Recovery Fund project.
The overall fund will offer grant support to high street businesses in Stapleford Town Centre, and will be split into two grants to support different aspects of business recovery:
The Business Continuity Grant (BCG) aims to support business resilience and growth over the long term, sustaining occupancy levels within Stapleford Town Centre. This grant will support existing businesses looking to expand the way they distribute their services. It is anticipated a maximum of £200,000 will be spent on this portion of the wider Town Centre Recovery Fund.
Under the BCG, eligible businesses will be able to apply for and receive up to a maximum of £10,000, although this higher amount does require match funding.
The Building Development Fund (BDF) is to create buildings of the future; improving accessibility, energy efficiency and the look and feel of Stapleford Town Centre. It is anticipated a maximum of £800,000 will be issued through this part of the fund.
Under the BDF, eligible businesses will be able to apply for and receive up to a maximum of £100,000, although this higher amount does require match funding.
Derby hotel sold to growing hospitality group
Specialist business property advisor, Christie & Co, has sold Best Western The Stuart Hotel in Derby.
This 100-bedroom city centre hotel with bar, restaurant and conferencing facilities has been purchased by growing hospitality group, AG Hotels.
Launched to the market at a guide price of £4.95 million, the sale underscores the demand for such freehold properties across the UK’s regional hotel market, from a whole host of active investors.
Christie & Co acted for the private vendors in the sale of the hotel, who owned and operated the business for approaching 20 years.
Girish Grover, CEO of new owner group, AG Hotels, says: “We are delighted with our acquisition of Best Western The Stuart Hotel and have exciting plans to invest in and refurbish the property in due course.”
Gavin Webb, associate director – hospitality at Christie & Co, says: “Christie & Co are pleased to be able to announce the sale of this substantial central Derby hotel. Initial interest in the hotel was strong with competitive bidding.
“This latest sale to AG Hotels is evidence of their continued ambition to keep growing and become a major player in the hospitality arena. We wish them well with the operation of this long-established hotel.”
Views sought on Hinckley National Rail Freight Interchange
The public consultation for Tritax Symmetry’s Hinckley National Rail Freight Interchange, which could see up to 850,000 m2 of buildings for logistics use created, has begun.
The proposed site is to the north-east of Hinckley – partially within the Hinckley and Bosworth Borough with the majority situated within the Blaby District – and would be based close to Junction 2 of the M69 to the north of Burbage Common.
The Hinckley National Rail Freight Interchange (HNRFI) is proposed to include:
- New rail infrastructure off the Leicester to Hinckley railway
- A rail port capable of accommodating up to 16 trains per day
- Up to 850,000 m2 of buildings for logistics use
- Lorry park with welfare facilities and HGV fuelling facilities
- Provision of south facing slip roads on to Junction 2 of the M69
- A new link road from the modified M69 Junction 2 to the B4668/A47 Leicester Road
- Improvements to existing highway junctions in the area around the site
- Landscaping including footpath and cycle links
£4.5m sheltered housing scheme completes in Market Bosworth
A new sheltered housing scheme, Ambion Court, in Market Bosworth has been officially handed back to Hinckley & Bosworth Borough Council following a 15-month building programme.
The 24 one-bedroomed, self-contained apartments scheme was designed by Pelham Architects and built by GEDA Construction. Each flat has been purpose-built to accommodate the needs of tenants aged 60 and over.
The cost of the project, approximately £4.5million, was paid for by the Borough Council with a grant of £1.2 million from Homes England.
Unlike the previous scheme, which was demolished to make way for the new development, all units boast private wet room facilities plus a balcony or patio offering direct outdoor access. The scheme also offers a communal lounge, kitchen, dining area, library, hair salon, laundry, offices and storage suitable for mobility scooters as well as a car park.
Executive Member for Housing at the Borough Council, Councillor Michael Mullaney, said: “It is fantastic news that, despite the impact of Covid-19, we have been able to complete this scheme and tenants will be moving in shortly.
“This has been a major project for the council, and I would like to take this opportunity to thank everyone involved. I have visited the site on many occasions, but I am delighted that today we have been able to tour the development and see the very high level of standard it has been completed to.
“Returning residents will see a huge improvement in their properties and potential new residents will be delighted with the high standard of accommodation, fixtures and fittings. Ambion Court is a great example of modern quality housing for tenants.”
Colm McVeigh, commercial manager from GEDA Construction, said: “We are delighted to be handing over Ambion Court. We have worked closely with the council and Pelham Architects to ensure we delivered a scheme that met the needs of the residents and the aspirations of the council.
“Once occupied this development will offer a modern and comfortable living environment. This development will have a positive impact on the local area offering much needed secure and affordable accommodation for the local residents for years to come.”
