Permanent placements in the Midlands rise at softer pace in December

Tess Egginton
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Permanent placements in the Midlands rise at softer pace in December

The latest KPMG and REC, UK Report on Jobs: Midlands highlighted a softer, yet still rapid increase in the number of permanent staff appointments at the end of 2021, despite sustained reports of a shortage of suitable candidates. Temporary billings meanwhile saw a quicker uplift in December.

At the same time, growth in demand for candidates remained at historically high levels, though the pace of increase in permanent vacancies eased for the fourth successive month. Finally, inflationary pay pressures were evident in the Midlands labour market as both permanent salaries and temporary pay rates rose at marked, albeit softer rates.

The report is compiled by IHS Markit from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.

Softer rise in permanent placements

The number of permanent staff appointments across the Midlands continued to increase at a marked rate in December. The rate of increase softened slightly from November, though remained among the highest the survey has ever recorded. Panel members often linked hiring to stronger market confidence and increased demand for permanent staff. At the regional level, the uptick in permanent placements in the Midlands was the second-fastest of all monitored English regions, behind the North of England.

Temporary billings in the Midlands rose for the eighteenth time in as many months during December. Moreover, the rate of the increase quickened from the previous survey period and was steep overall. Anecdotal evidence suggested that higher demand meant firms took on temporary staff where permanent roles could not be filled. Temp billings also increased at the UK level, while the upturn in the Midlands was the weakest of the four monitored regions.

December data highlighted a sustained increase in the number of permanent vacancies across the Midlands. Though marked overall, the rate of increase eased for the fourth successive month and was the softest of all monitored regions.

At the same time, demand for temporary staff continued to expand robustly. That said, the rate of increase eased to the softest since February. Moreover, the rise in the Midlands was the weakest of the four monitored English regions.

Permanent staff availability falls for ninth month running

Recruiters in the Midlands signalled a further reduction in the availability of permanent staff at the end of 2021. A lack of experienced candidates and elevated uncertainty surrounding the jobs market making staff unwilling to move between roles contributed to lower availability, according to panellists. While the rate of reduction was still marked, it was the softest recorded for seven months.

Temp staff availability across the Midlands fell for the tenth consecutive month during December. The rate of decline eased for the fourth month in a row to reach the softest since May. According to anecdotal evidence, there were widespread candidate shortages due to a lack of skilled workers looking for temporary work. The reduction in the Midlands was the second-softest of the four monitored regions, behind London.

Further rapid rise in permanent starting salaries

Salaries awarded to permanent new staff increased for the tenth month in a row in the latest survey period. The rate of the rise eased from November’s series record, yet remained rapid overall. Panellists attributed higher salaries to efforts to attract staff amid high demand for experienced candidates. Of the monitored regions, the Midlands recorded the second-slowest increase, ahead of London.

Recruiters across the Midlands reported a thirteenth consecutive monthly rise in average hourly pay rates for short-term staff during December. The rate of temp wage inflation eased from the record rise in November to the softest for six months, though remained robust overall. The rise in temporary pay rates was the second-slowest of the monitored regions, and slower than the national average.

Commenting on the latest survey results, Kate Holt, People Consulting Partner at KPMG, said: “The continued uptick in permanent placements and temporary billings reflects the strength of business confidence locally, which is encouraging for those looking for work in the Midlands. “However, the war for talent shows no signs of abating, and this is evidenced by wage inflation as businesses compete to attract candidates – particularly for permanent roles. “While 2021 was dubbed as ‘the great resignation’, the labour market is typically more fluid in January and with more businesses offering hybrid and flexible working options, it’s possible that the candidate supply issues we’ve seen for some time could start to ease in the coming months.” Neil Carberry, Chief Executive at the REC, said: “2022 will be the year we discover staff shortages will outlive the pandemic as an economic issue. This survey shows again how tight the labour market was at the end of last year. “Demand for staff is growing across every sector and region of the UK, and candidate availability is still falling. These trends have been slowing for the past few months, but that is not surprising considering the record pace of change earlier in the autumn of 2021. “Businesses need to make sure they are reacting to the long-term challenges of this market, thinking harder about their offer to staff and how to shape their future workforce. Recruiters are ideally positioned to help employers with this, and support governments across the UK on the skills, immigration and tax reforms that are needed to keep us competitive.”

Record year for Leicestershire finance provider with £318m funding for SMEs

Tess Egginton
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Record year for Leicestershire finance provider with £318m funding for SMEs
ThinCats, the Ashby-De-La-Zouch-based alternative finance provider, provided a record £318 million of funding to support mid-sized SMEs during 2021. In total, ThinCats has lent more than £1.2 billion to businesses across the UK. Amany Attia, CEO, ThinCats, said: “As Covid restrictions lifted and business confidence strengthened during 2021, borrower demand switched from the short-term liquidity needs of 2020 to funding strategic growth plans, both organic and through acquisitions. Using a combination of the CBILS and RLS government-backed schemes and business as usual lending, we were delighted to provide a record amount of funding to existing and new borrowers. “An important milestone during 2021 was a £160 million investment commitment from Wafra Capital Partners which will enable us to lend more than £2 billion over the next few years of which £600 million is ready to deploy now. We also made good progress in our established healthcare and leisure specialist lending products where we passed through £200 million funding in aggregate. Funding M&A transactions was another busy area for us, particularly those involving private equity sponsors. “The economic outlook remains uncertain given the emergence of the Omicron variant of Covid on top of already rising energy and input costs, ongoing supply chain disruption and staff shortages. It is unclear how long these challenges may persist, which is why businesses continue to need access to flexible funding solutions. Given such a fast-changing environment, I am really pleased that we have been able to respond quickly to the opportunities and challenges faced by our borrowers in 2021 and this will remain our top priority for 2022.”

Prime location secured for student scheme in Nottingham City Centre

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Prime location secured for student scheme in Nottingham City Centre
Property consultants, Box Property, has secured the strategic purchase of 7 Mansfield Road, Nottingham on behalf of long-term client Megaclose Properties to expand its portfolio and significant ownership within this part of the city centre. The prominent 21,000 sq ft multi-storey office property, built in the late 1960s, is arranged over six floors and is less than 250 metres from the city centre campus of Nottingham Trent University. Currently accommodation for multi-let offices, the property has been purchased and planning has been granted for conversion from its former office use into an 88-bed student accommodation scheme with a ground floor retail unit. Redevelopment works are expected to start imminently. Frankie Labbate, co-founder and director at Box Property, said: “The Mansfield Road property acquisition fits in perfectly with the client’s existing portfolio and its ethos to provide quality student accommodation within half a mile of Nottingham’s universities. “As specialists in buying and selling prime city centre sites with a variety of uses, we’ve worked closely with Megaclose since we set up our practice to consistently bring them off-market, prime residential opportunities to help them grow their city centre presence.” Located in Nottingham city centre on the corner of Mansfield Road and Peachey Street, it is within walking distance to Victoria Centre bus station as well as the leisure and retail facilities nearby including the Corner House and Trinity Square. It is also less than 200m from the proposed Guildhall development which is expected to include a premium hotel and student accommodation. The news comes on the back of another recent purchase by Box Property of a retail unit on Goosegate in Hockley on behalf of Megaclose. The student accommodation specialist has plans to turn the upper floors into a 27-bed development.

Work to begin on Granby Street gateway revamp

Eleonora Gallina
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Work to begin on Granby Street gateway revamp
 A busy shopping street and main gateway between Leicester city centre and the railway station is set for a revamp, with work due to begin later this week. Leicester City Council will begin work to pedestrianise and improve a stretch of Granby Street between its junctions with Northampton Street and the inner ring road at St George’s Way. The aim is to create a more welcoming gateway into the city centre and help make the busy route safer and more attractive for pedestrians and cyclists. The pedestrianised area will be reconstructed to create a level surface, finished in red asphalt and a continuation of the existing high-quality block paving. Automated bollards will be installed at the entry and exit points and changes will be made to the existing contraflow cycle lane between Dover Street and the inner ring road to improve the route for cyclists. Improvements are also planned for Northampton Street, where the existing footpaths will be widened and two new loading bays created, New tree planting and cycle parking are also planned, and the installation of a new docking station as part of the city’s Santander Cycles Leicester e-bike hire scheme. An earlier proposal to close the Dover Street junction with Granby Street will be amended following feedback from consultation carried out in spring 2021. Deputy city mayor Cllr Adam Clarke, who leads on environment and transportation, said: “This part of Granby Street is a major gateway into the city centre for people arriving in Leicester by train and is a busy shopping street in its own right. It links directly to the super crossing on St George’s Way and is an important route for anyone walking or cycling into the city centre. “These improvements will make the route more welcoming and safer for pedestrians and cyclists, while having minimal impact on motorists. It’s over a decade since the underpass that ran beneath the ring road was removed and now is a good time to revisit the area and improve it further.” Work is due to get underway from Monday 10 January and will take around seven months to complete. A partial road closure of Northampton Street, from Charles Street to Newport Place, will be required from Sunday 16 January for up to 11 weeks. Work will then move further along Northampton Street, from its junctions with Newport Place to Granby Street. Well-signed diversions will be in place. Work will move onto Granby Street from spring 2022. The scheme will cost around £900,000 and will be supported through the Getting Building Fund, a pot of government funding awarded to the Leicester and Leicestershire Enterprise Partnership (LLEP) for shovel-ready infrastructure projects to create jobs and support economic recovery. Kevin Harris is chair of the LLEP Board of Directors. He said: “Granby Street is an important gateway to Leicester city centre and often the first port of call for visitors to our city. These improvements will help prioritise visitors that make the journey via public transport and help us meet our ambitious targets for sustainable transport and carbon reduction. “These improvements to Leicester’s public realm will result in a better quality of life for Leicester’s residents, increased economic opportunity for local businesses and better links to the St George’s and Cultural Quarter areas, which are vibrant parts of the city centre and key to the local economy.” Granby Street also forms part of the new High Street Heritage Action Zone. The scheme will offer grant funding to support heritage-led improvements and repairs to historic properties in the area and help bring commercial units back into use. The scheme is due to launch this summer. For more information email LeicesterHAZ@leicester.gov.uk

One of the UK’s largest food wholesalers acquired by investment firm

Tess Egginton
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One of the UK’s largest food wholesalers acquired by investment firm
London-based investment firm RDCP Group has acquired SOS Wholesale, one of the largest food wholesalers in the UK for an undisclosed sum. RDCP has acquired Derby-based SOS Wholesale, a family run business founded in 1996 by Norman Beckett and his two sons Mark and Steven. The business is one of the UK’s largest wholesalers of foods and beverages, employing 120 staff from its 70,000 sq ft warehouse and distribution centre in Derby and sales office in Barnsley. Its product range extends across 4,500 lines, selling top brands including Mars Bars, Walkers Crisps, Heinz, Nescafe, Colgate, and Fairy, delivering its products range in the UK, and exporting worldwide. The existing management team led by Mark Beckett and Vipin Patara will work closely with RDCP founders, Sameer Rizvi and Iryna Dubylovska, on SOS Wholesale’s future growth strategy. This latest deal is RDCP’s eighth acquisition in the last 18 months, following its most recent takeover of Intelling in October 2021. RDCP now controls $400 million of investments across multiple sectors in the UK. Sameer Rizvi, founder & CEO of RDCP Group, said: “This is a major milestone for us at RDCP because the four acquisitions we completed last year combined with the organic growth of our existing portfolio companies has increased RDCP Group’s assets under management to $400 million. “We were extremely impressed by SOS Wholesale and their track record of success and varied customer base which includes major national retailers as well as independents. We look forward to working closely with Mark, Vipin and their team to grow the business further and have plans to expand SOS Wholesale both organically via increased sales channels, but also by bringing bolt-on acquisitions of smaller competitors.” Iryna Dubylovska, founder & chief strategy officer of RDCP Group, said: “This acquisition reflects our strong appetite to expand our presence across different sectors and I could not be prouder of our team and our advisors. “We have ambitious plans to grow our assets under management to $1 billion by 2025 and will continue to invest our growing balance sheet capital into promising British businesses that have a consistent and profitable trading history, committed and ambitious management teams and a defendable and dominant market position within their respective sectors.” Mark Beckett, Managing Director of SOS Wholesale, said: “Steven and I are proud to be a part of one of the UK’s fastest growing private conglomerates, RDCP Group. I am looking forward to continuing to work with Vipin Patara and our management team to grow the business further, whilst retaining the family values that have made us what we are today. “It is very much business as usual for our staff, customers and suppliers. We have worked hard to build an excellent reputation of delivering exceptional service and this will continue to be a focus for SOS Wholesale moving forward.” Vipin Patara, trading director of SOS Wholesale, said: “Over the past five years working with Mark and Steven, their passion and drive to grow the business has been contagious. It is a testimony to both Mark, Steven, and the SOS team to where the business has grown to today. “The future potential is exciting for both organic growth as well as new opportunities. I am really looking forward to working collaboratively with Sameer, Iryna, Mark and the entire SOS team to take SOS Wholesale to the next level.” Roy Farmer, corporate finance partner at Dains, added: “Having built a very successful business over the past 20 years, Mark and Steven decided approximately two years ago to create a succession plan in order to facilitate their retirement. Their goal was to realise the value that they had created to date and to ensure that the business was left in the hands of a buyer who would continue to further develop the business. “We worked closely with Mark and Steven to develop their exit plan, and as part of this process spent a considerable amount of time identifying an appropriate purchaser. Having received strong interest in the SOS Wholesale business from both trade and financial investors alike, we were attracted to RDCP as a buyer for a number of reasons. “RDCP’s model of being longer-term investors in businesses, backing strong incumbent management teams and retaining the stability and culture that is embedded within a business made them stand out from the more traditional private equity model, and we quickly realised the benefits of choosing RDCP as the long-term investor in SOS Wholesale. “I am delighted with the outcome we have achieved for Mark and Steven, which allows Steven to retire immediately and Mark to work alongside Vipin for a period of time. I am confident that SOS Wholesale, under the leadership of Mark and Vipin and the ownership of RDCP, will go from strength to strength.”

Strong performance sees record quarter for Dunelm

Tess Egginton
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Strong performance sees record quarter for Dunelm
Dunelm, the Leicestershire-based homewares retailer, has reported a record quarter for the 13-week period ended 25 December 2021. Total sales of £407m in the second quarter were up £46m compared to FY21 and £84m compared to FY20. The company said that this “excellent performance included particularly encouraging growth from [its] stores.” Meanwhile digital sales have doubled since the pre-Covid Q2 comparative period in FY20. As a result of strong sales Dunelm now expects profit before tax for the first half to be approximately £140m (H1 FY21: £112m, H1 FY20: £84m). Nick Wilkinson, Chief Executive Officer, said: “We are delighted with our ongoing strong performance, which demonstrates the growing appeal of our homewares offer and includes some standout contributions from our furniture and seasonal categories. I would like to thank our fantastic colleagues and supplier partners for their ongoing commitment to serving our customers in the face of continued Covid challenges and industry-wide supply chain disruption. “Our integrated physical and digital shopping experience has transformed since we launched our new digital platform in October 2019. These advances have enabled us to reach more customers with our brand and specialist homewares product range, whilst also providing a much improved customer experience. Our digital platform and capabilities also give us more confidence and ambition for the future. “Whilst there are several macro uncertainties to be navigated, we feel well placed to continue to deliver profitable growth across all channels and grow market share as the 1st choice for home for UK homelovers.”

New Leicester City Centre residential scheme secures £8.7m

Tess Egginton
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New Leicester City Centre residential scheme secures £8.7m
Funds advised by Hilltop Credit Partners, a specialist funding partner for SME residential developers, have completed an £8.7m loan to Mitchian Alliance Limited for the development of 69 residential units in central Leicester. The project will deliver 53 one-bed and 16 two-bed flats and a small ground-floor retail unit next to the Waterside regeneration project, just 10 minutes from the city centre and less than a mile to Leicester train station. All residential units feature bedrooms with Juliet Balconies and are priced within the government’s regional Help To Buy limits. As part of the regeneration of the local area, which is expected to benefit from c. £80m of new investment, Leicester City Council is strictly controlling the provision of newbuild housing, creating what Hilltop believes to be a favourable supply/demand dynamic for the development. The average price of flats in Leicester has increased by c. 13% over the last 18 months, while the supply of properties for sale in the area is low. The project sponsor team is comprised of a local developer/contractor and a project manager with 40 years’ experience across multiple industries and areas, including the completion of a £13m residential scheme in Leicester city centre. Philip Mitchell of Mitchian Alliance said: “The team at Hilltop has understood our requirements from the get-go, addressed every stage of the development cycle and simplified the funding process. Their model is perfect for us as we embark upon a period of scaling our business.” Paul Oberschneider, founder and CEO of Hilltop Credit Partners, said: “A vibrant university city with great connectivity, strong employment credentials and comparatively affordable housing makes Leicester an attractive location for development. Within the city centre, the limited supply of residential property adds to a compelling proposition.”

2022 Business Predictions: Claudio Davanzo, creative director, Purpose Media

Tess Egginton
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2022 Business Predictions: Claudio Davanzo, creative director, Purpose Media
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 Claudio Davanzo, creative director at web design, creative, digital marketing and video agency, Purpose Media to get his predictions for the year ahead and what developments we are likely to see in graphic design and how brands will be evolving their marketing toolkit. The events of the last two years has led many business owners to reflect and adapt how they operate and I think this constant refinement will continue as brands take more care over their choices as to how to go to market and what to say in their promotional advertising. I believe 2022 will be a year in which motion design will gain more traction due to the exponential growth in online audiences. New digital platforms will keep being developed so organisations and their brands will evolve their online experience by creating content in animated, video, or GIF format. The use of moving image enables marketing communications to be much more engaging. By adding these additional creative layers and motion it takes the visual experience to a new dimension. With movement it is much easier to tell a story and convey key messaging that also adds personality and enables brands to differentiate themselves even further. Also, after years of minimalistic, clean and flat designs driven by digital requirements and limitations, the long period of depression caused by the pandemic is the catalyst for change creating a push for indulgence in design. Brands will begin to adopt bolder and vibrant colour palettes, gradients and more unpredictable graphic systems. Even typography will become a lot more experimental. From a social aspect, I think we will continue to see an increase in people building their online profile. People who would have previously built their network of contacts at face to face events will increasingly seek online platforms as a substitute for not being able to meet at in person events. Finally, remote working means it’s easier for talent to work from anywhere so I predict that brands and their work culture will continue to change because people have reflected on what’s important in their lives. In order to retain and attract the best talent, employers will need to evolve the workplace culture to offer a work balance that positively impacts well-being and mental health. I think we will find that flexible working that enables people to choose when to spend time with family, friends and being able to enjoy personal hobbies will be a high priority.

Investment firms come together for multibillion pound Boots bid

Tess Egginton
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Investment firms come together for multibillion pound Boots bid
A duo of major investment firms have come together to form a multibillion pound takeover bid for Boots. According to Sky News, Bain Capital and CVC Capital Partners have set their sights on the Nottingham-based retail giant and are being advised by bankers at Lazard. One of CVC’s team of managing partners, Dominic Murphy, was an architect of the £11 billion takeover of Alliance Boots by private equity firm KKR, who he worked for previously. A director of Boots’ parent company, Walgreens Boots Alliance, Sky News says that Murphy is expected to need to recuse himself from boardroom discussions on the sale of Boots due to his interest in the process at CVC. It was reported in December that Boots’ parent company was considering a sale of the business, which would see it valued at over £5bn, lining up Goldman Sachs to advise it on a review of options that could see new owners for the retailer. Sky News noted that the process would be exploratory, and may not lead to an ownership change, with a floatation being considered also. A pharmacy-led health and beauty chain, Boots has over 2,000 stores and a team of over 50,000 colleagues.

Octopus Energy plugs in at Nottingham offices

Tess Egginton
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Octopus Energy plugs in at Nottingham offices
Octopus Energy Ltd has let the first floor offices at The Queens Offices on Arkwright Street to house their Nottingham-based sales and acquisition team. The building is situated opposite Nottingham Station and has recently been refurbished to provide high quality office space benefiting from a modern internal fit out that includes LED lighting and heating/cooling systems with substantial car parking facility to the rear. The building also retains some attractive architectural features from its beginnings as a 19th century hotel and sits in a prominent position facing Carrington Street. FHP Property Consultants completed the letting on behalf of retained clients. Thomas Szymkiw, of FHP’s Office Department, said: “The Queens Offices are a landmark building that has recently been saved from disrepair to offer some well needed good quality refurbished office space to the market. “After several viewings of options with Octopus Energy it was apparent that The Queens Offices ticked all the boxes in terms of location and specification to house their Nottingham-based sales and acquisition team. “I am therefore pleased that we have managed to accommodate them in the city – as I understand they were considering other locations as they hadn’t been able to find what they were looking for. “We now only have the second floor of the property available.”
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