James Pinchbeck, Partner Streets Chartered Accountants:
The government has been reprimanded for releasing details of Budgets and Statements in advance of their hearing in the House. It would seem then such advice was heeded in the case of the Spring Statement, delivered in the House on 23rd March 2022. Little was known of what we might hear in advance. Though perhaps some may feel there was nothing to release or leak?
At a time of rising inflation and living costs, for many younger workers and households, it is something they will not have experienced in their lifetime and many will have listened to the Chancellor with baited breath for measures and support to ease the burden.
Whilst many were urging the Chancellor to use the Spring Statement to axe the health and care national insurance increase due to come in this April, few probably really thought he would and he didn’t.
In terms of support for all households facing increased costs of living, he announced a 5p reduction per litre in the fuel duty levy from 6pm. This will no doubt be welcomed by those reliant on their car for work, particularly those living and working in rural areas where alternative lower cost travel options are not always available.
Whilst we head towards the warmer months, few though will take their minds off increasing energy costs with the price cap hike due to come in from April. The number of people who can benefit from the news of the removal of 5% VAT levied on the installation of renewable energy including heat pumps, solar and wind etc, will probably be limited and lagged in their benefit for most. The Chancellor also announced an increase in the Household Support Scheme with a further £500m of support being available to local authorities to target assistance to those affected by energy price increases.
When it comes to managing rising energy costs for businesses, again the measures announced were limited in that they failed to address the issues currently faced. Supply chain issues, labour shortages increasingly giving rise to price rises for consumers and energy price rises are all key contributors to overall price rises faced on goods, especially food and other key household items. His help with energy costs for businesses was limited to removing business rates due on a range of green technology used to decarbonise buildings, including solar panels and batteries, whilst eligible heat networks will also receive 100% relief.
So looking at how the Chancellor sought to balance managing the economy, public debt and borrowing whilst seeking to promote growth and to help those, if not all, affected by rising living costs, what were the key announcements? In the here and now, or at least to have a more immediate benefit was the announcement that the threshold at which National Insurance Contributions are levied will rise by £3,000 to £12,570 in line with the Income Tax Threshold. The Chancellor declared that this represents a £300 tax cut for those who will benefit from the change from July 22. This threshold increase is believed to benefit some 70% of the workforce and should help to mitigate the increase due to come with the new National Insurance health and care levy.
When it comes to help for businesses, the Chancellor served up a lukewarm helping of reheated announcements made previously with support around reductions in Business Rates, stating he would introduce reliefs a year earlier in April 22, through his Help to Grow initiatives and a continued focus around innovation through Research and Development tax reliefs. He did however offer support to employers, from the 6th April, through an increase in the Employment Allowance from £4,000 to £5,000. This allows smaller businesses to reduce their employers National Insurance contributions bills each year.
As his Statement came to an end, the Chancellor’s final announcement was on the proposed reduction in the basic rate of income tax from 20% to 19% before the end of this Parliament. Perhaps with a sense that this Statement was one based either on Government seemingly becoming a little jaded, running out of steam, or facing the challenges of dealing more and more with issues in the here and now as opposed taking a more longer-term perspective. With recent media coverage we might be forgiven for thinking that it was a statement that marks the start of a government laying the foundation and making preparations for a general election perhaps even as early as next year.
Further details on the announcements included in the Spring Statement 2022 along with tax changes for 2022/23 are included in Streets Chartered Accountants – Spring Statement report.
https://www.streetsweb.co.uk/resources/2022/mar/24/streets-guide-spring-statement-2022/
Robinson, the custom manufacturer of plastic and paperboard packaging, has slipped to a pre-tax loss after experiencing “very challenging conditions throughout 2021 across input price inflation, customer demand and the ongoing uncertainty resulting from the COVID-19 pandemic.”
According to audited results for the year ended 31 December 2021, revenue grew 24% to £46m, up from £37.2m in 2020. Despite this, the Chesterfield-headquartered company posted a loss before tax of £0.1m, in comparison to a £1.8m profit in 2020.
Robinson, whose origins date back to 1839, launched a “modest restructuring programme” in November, to deliver £0.3m of cost savings annually.
Alan Raleigh, chairman, said: “The Robinson business has experienced very challenging conditions throughout 2021 across input price inflation, customer demand and the ongoing uncertainty resulting from the COVID-19 pandemic.
“The substantial uncertainty and volatility experienced in 2021 is likely to continue through 2022, with further inflation in input costs anticipated.
“As a result of the inflation already experienced in 2021, we are seeking substantial price increases from all customers, which will support the improvement of margins in 2022. Given the ongoing pressure on input prices the board will continue to prioritise the management of fixed costs in 2022.
“It is likely that the consequences of the Russian invasion of Ukraine will remain for some time. Whilst we cannot foresee or fully quantify the impact, we are closely monitoring the situation, we will drive profitability, conserve cash and respond as necessary across our geographical locations.
“Despite the ongoing uncertainty, profits in the 2022 financial year are expected to be ahead of 2021 and we remain committed in the medium-term to delivering above-market profitable growth and our target of 6-8% adjusted operating margin.”
Leicestershire-based Ventola Projects, a leading provider of experiential, visual and lighting solutions, has been commissioned to complete another exciting new project with an FEC facility based in New York.
Deer Park New York is the home of one of many Monster Mini Golf facilities across the United States, and like any other of its facilities, it provides nothing short of a memorable experience for families during their visit.
This project comes off the back of many other successful projects completed by Ventola Projects, through its US based distributor KOOL Amusements for the Monster Mini Golf franchise – a testament to Ventola’s continued success rates and ability to work with such facilities to deliver optimal results.
The Ventola team started production on 11 March, with finished results expected to be seen in May.
The final product will encompass many of Ventola’s trademark products, including the advanced VAvR LED lighting system, as well as engaging effective colour changing mood lighting to further enhance the facility’s offering.
Speaking to Mick Ventola, founder and managing director of Ventola Projects, he said, “It’s an honour and a delight to be working with the Monster Mini Golf management team once again.”
“Their facilities are always great fun to work on and they provide us with so much opportunity to not only bring the facility to life but to really showcase our products, too.”
We’re looking forward to finding out more about the project and seeing the installation come to fruition!
More than three quarters of SMEs predicted their turnover is set to increase over the next 12 months, according to the latest survey from a Kettering-headquartered HR consultancy.
The second annual SME Survey, which HR Solutions launched last year during the pandemic, showed that despite a second year of COVID-19 related restrictions, many businesses diversified and strengthened their offering, standing them in good stead for 2022.
The report, which was produced in collaboration with Nordens and Essential Safety, highlighted a number of key themes from respondents including potential recruitment challenges in light of the ‘great resignation’, 77% of SMEs predicted their turnover would increase over the next 12 months; and many expect to diversify their offering to secure new business.
Half of the SMEs questioned stated recruitment could be a major challenge for them during 2022, whilst 37% anticipated difficulties with employee retention.
The pandemic has led many employees to re-evaluate their careers, demanding increased flexibility or choosing to take a completely different path in their working lives.
Similarly, employers themselves have had to diversify and consider new ways to reach their audience due to the Covid restrictions enforced during 2021. 40% of participants stated that they will aim to diversify their offerings and routes to market this year as 44% are concerned about securing new business in the current climate.
However, of the companies surveyed, 27% believe a business restructure is likely to take place, showing that businesses are also looking internally at ways to increase profit and become more dynamic.
HR Solutions is also recommending that businesses look at staff retention, company policies and company culture in order to improve recruitment, as well as considering a financial review of costs and reintroducing training and networking opportunities to help stay competitive.
To support SMEs in the midst of ‘the great resignation’ and potential economic challenges, HR Solutions will be hosting a series of webinars with experts in finance, marketing, HR and health and safety.
HR Solutions CEO Greg Guilford said: “2022 looks set to be an interesting year, with clear themes in the survey indicating that this will be a year for change. These key themes – recruitment, profitability and securing new business – show SMEs need a strong team in place to secure new opportunities and increase the bottom line.
“This year represents a fresh start for many businesses, after a turbulent few years due to Brexit and the COVID-19 pandemic.”
ADC Infrastructure, a Nottingham based consultancy service to the property development sector in Transport Planning, Infrastructure Design, and Water Management, have expanded their offices within the city by taking the final floor available within the City Buildings on Carrington Street close to Nottingham Train Station.
The property was substantially refurbished by Shoby Properties following their acquisition of property to provide some of the very best quality offices which Nottingham has to offer retaining many of the property’s original features while making the space suitable for the requirements of modern day office occupiers with high quality finishes, full air conditioning as well as on site bicycle storage and repair facilities, showers and changing rooms.
Mark Tomlinson of FHP who acted on behalf of the landlords, Shoby Properties, in securing the deal commented: “We are seeing a continued trend amongst office occupiers seeking to increase the quality of their working environments and secure premium office spaces within the city and City Buildings delivers just that. We are seeing strong uptake of prime offices across the city and ADC Infrastructure are a fantastic tenant to have secured for the final floor within this building. I’m sure that they will enjoy the quality of the space and the facilities”.
David Cummins, Director of ADC Infrastructure commented: “Our current offices are to be redeveloped, so the opportunity arose to find new offices. We wanted to remain in the city centre, as our staff travel by bike, bus, tram and train. We wanted more space for growth, as we seek to double our numbers to around 60 in the coming years. And importantly, we wanted a quality environment that would encourage everyone to work in the office. The area around Carrington Street is an exciting place to be and the City Buildings felt right from our first visit. This is our fourth move since the company began in 2013, and FHP have again been very helpful at showing us the options. We look forward to working with them for many years to come as they are also the managing agents.”
Start-ups, consolidation and inward investment has resulted in 310 more businesses being established in Chesterfield post pandemic than prior to March 2020.
“We’ve come through the pandemic in pretty good shape and demand for commercial space has gone through the roof,” said Dr Huw Bowen, Chief Executive of Chesterfield Borough Council, who was speaking at the town’s annual Celebrate Chesterfield event on 23 March.
“However, the Levelling Up funding is important to getting our high street back to where we want it to be. We need to work together like never before post pandemic,” he added.
Chesterfield has received nearly £20 million of Levelling Up funding to transform Chesterfield Town Centre. The funding, which is being matched by £6 million of investment from Chesterfield Borough Council will underpin the Revitalising the Heart of Chesterfield improvement plan.
The delivery of the improvement plan is expected to increase land value in the town centre by 16% and shop occupancy levels to more than 90%, resulting in increased spending which will support the creation of around 100 new jobs in the town centre.
“We’re immensely grateful for the Levelling Up funding. It will make a big difference to the town centre to support our growth ambitions,” said Dr Bowen.
The Revitalising the Heart of Chesterfield programme will see key spaces in the town centre regenerated and reimagined, including Market Place, New Square, Burlington Street and Packers Row, Corporation Street and the George Stephenson Memorial Hall.
The refurbishment and remodelling of the George Stephenson Memorial Hall will bring together a theatre, cinema, bar, café and exhibition space in one asset to allow greater cultural inclusion and participation.
In addition to the creation of new outdoor dwelling and entertainment space, the town centre will have a new lighting strategy and greater data connectivity to enable digital way finding, smart street lighting, predictive maintenance, environmental monitoring.
Dr Bowen added: “We want to celebrate the town’s identity and spaces and seating for people and events in the public realm that will encourage people to stay and dwell longer and spend more in the town.”
Revitalising the Heart of Chesterfield complements Chesterfield Borough Council’s Masterplan for Chesterfield Train Station. At the event it was revealed that construction on a new southern link road into Chesterfield Train Station will begin later this year as part of the council’s commitment to create ‘a sense of arrival’ in the town.
Construction of the new road follows the relocation of Jewson builders’ merchants to a new purpose-built site on Sheffield Road from its current position on Spa Lane next to Chesterfield Train Station. Demolition of the Chesterfield Hotel will also commence later this year.
Councillor Tricia Gilby, leader of Chesterfield Borough Council, said: “2022 is already proving to be a landmark year for Chesterfield with the construction of the Enterprise Centre and One Waterside Place, both symbols throughout the pandemic that Chesterfield is always open and ready to do business.
“Alongside regeneration projects and new developments, Chesterfield Borough Council is invested in supporting the future of young people and local residents. We want better jobs and more jobs for local people. Our local labour clauses in contracts have created more than 800 local jobs in the last year alone with many of them being apprenticeships.
“We are fortunate to have both Chesterfield College and a University of Derby campus in the town centre which, together, are supporting more than 10,000 students and apprentices helping us have a skilled work force to attract further businesses to invest in the borough of Chesterfield.”
Now in its twelfth year, Celebrate Chesterfield is organised by Destination Chesterfield in association with The University of Derby and sponsored by Central Technology and Markham Vale. This year the event welcomed around 250 delegates to the Winding Wheel.
Dom Stevens, Destination Chesterfield manager, who led the event, said: “Once again Celebrate was truly that – a celebration of all that is happening right now in Chesterfield and in the future. We continue to prove that we are a town punching above our weight and that reflects in the levels of funding we are attracting as well as the many new businesses that are choosing to make the town their home.”
As well as Dr Huw Bowen, speakers at the event included Professor Warren Manning – Provost Innovation and Research at the University of Derby, Stephen Wenlock – Joint Growth Unit Manager, Chesterfield Borough Council and representatives from two town centre businesses, Emma Stevenson from M’s Gallery and Andy Jupp from Paperstarlights, who have benefitted from the Digital High Street initiative.
The total value of UK listed companies taken private by private equity firms increased from £4bn to £29.3bn in the last 12 months.
The number of deals has also increased to 19 in 2021 compared to just five in 2020
Consistent recovery of deal volumes expected if stock market valuations come under further pressure
The total value of UK listed companies taken private by private equity firms increased from £4bn to £29.3bn in the last 12 months, shows research by accountancy and business advisory firm BDO LLP.
The research also shows the number of UK listed companies being taken private has increased from just five in 2020 to 19 in 2021.
While 2021 may prove a high watermark for ‘take private’ deals following a pandemic-shaped lull in 2020, BDO says a more consistent recovery of deal volumes could take place if stock market valuations remain under pressure, coupled with exacerbated investor uncertainty following the invasion of Ukraine.
BDO explains that the growing valuation gap between UK listed companies and their US peers in the last decade, for example, has made take private deals more attractive to US funds.
The finite of number of private companies, of size, that are ‘available’ for purchase means that PE firms are seeking listed opportunities as the private equity asset class continues to grow. BDO adds that listed companies are also becoming more receptive to bids from PE houses.
PE funds are sitting on record amounts of cash that they are under pressure from their investors to deploy. Data from S&P towards the end of 2021 showed that private equity firms globally have been sitting on a record $2.3tn in ‘dry powder’ or money that has been committed by investors but not allocated. This was up from just under $2tn in December 2020 and $1.6tn in December 2019.
John Stephan, Partner and Head of Global M&A at BDO, said: “Many UK listed company directors continue to be frustrated by the low valuations put on their shares. That makes them more receptive to takeovers from PE houses. The reputation of PE firms amongst FTSE directors has dramatically improved over the last 20 years, so going private no longer seems such an unusual move.
“Private equity firms can often also offer more generous share-based incentives to directors than they might expect if the company remained listed and subject to different corporate governance rules.”
It is often argued that taking a company private can cut the high costs that maintaining a public listing entails and free management from the pressure of short-term earnings targets or having to explain a volatile share performance to multiple institutional investors.
Adds John Stephan: “The most popular targets for PE houses will be the companies that have been swept up by the stock market sell-off, but still have good underlying fundamentals and are less affected by macroeconomic or geopolitical events.
“There is always an ongoing assessment among listed companies about whether they want to remain listed. If valuations don’t improve in the UK any time soon, there are likely to be some boards who may think, ‘let’s do something that will crystallise value for our shareholders’.”
Having already successfully marketed the majority of development plots on Phase I of the FEZ, Pygott & Crone have been appointed as the commercial agent for The Hub building.
Their success on Phase I has resulted in 7 out of 11 plots under offer within the first year of being on the market.
Cllr Colin Davie, Executive Councillor for economy and place at the County Council, says: “With excellent progress being made on the building, I’m delighted that Pygott & Crone will soon be able to market the office space within the Hub.
“They have a great understanding of the ethos of the FEZ and what it will bring to Lincolnshire and our residents.
“The Hub building will be a great centre for smaller businesses to collaborate and benefit from brand new facilities, research and training opportunities.”
Sarah Louise Fairburn, Deputy Chair of the Greater Lincolnshire Local Enterprise Partnership and Chair of the LEP’s Food Board, adds:
“The Hub is an exciting development at the FEZ that will provide the connections and support for SME businesses in the agri-food tech sector to grow, innovate and collaborate.
“The LEP is pleased to have provided the £6.3m to enable construction of this extremely important building for knowledge transfer and business support within the UK food Valley.”
Tim Downing, Director at Pygott & Crone, said: “Our commercial team are really looking forward to marketing this innovative development which offers much needed space for food related business in the region.
“The hub will enable business in the food sector to collaborate with other like minded companies across the whole enterprise zone and will help cement Lincolnshire’s reputation as the centre of the UK food valley.
“Our UK wide network of offices have already received many positive enquiries.”
The Hub brand has also been revealed, designed by Bourne-based Green Trumpet, to sit alongside the existing branding of the FEZ.
Better workplaces, improved decision-making and increased innovation are among the benefits cited by East Midlands businesses that have an equality, diversity and inclusion (EDI) strategy, according to a new report.
Research by East Midlands Chamber, in partnership with housing association emh group, found that almost half (48%) of businesses in Derbyshire, Leicestershire and Nottinghamshire have a dedicated policy in place.
More than two-thirds (68%) consider EDI can contribute, at least to some degree, in the success of their business plans over the coming 12 months – while it was attributed as an important part of leadership strategy by 55% of firms.
When asked to give a score between one and 10 to how important consideration of EDI would be to the success of their organisation, the average score was 5.6 – suggesting that while it may not be integral to firms overall, it’s also not an insignificant consideration within business activity in the East Midlands. The research will be presented at the Chamber’s Celebration of Culture and Communities event, which will be held tonight (24 March) at Leicester Tigers’ Mattioli Woods Welford Road stadium – showcasing the region’s diverse mix of cultural backgrounds via music, dance and food.
East Midlands Chamber director of resources, Lucy Robinson, who is the business representation organisation’s diversity and inclusion champion, said: “It’s clear from these findings that equality, diversion and inclusion is increasingly becoming less of a ‘nice-to-have’ for organisations and more business-critical.
“The majority of East Midlands businesses recognise an important role for EDI within their planning and activity, and there’s clearly a need for further support in helping those that identify its value but are yet to have policies in place.
“A core of roughly one in 10 feel it doesn’t play any role in their success. When examining this figure further, these businesses are more likely to be micro in size, with a very small bias towards the manufacturing industry.
“Given that those actively engaged in the EDI agenda have illustrated some very real commercial benefits – ranging from a better workplace culture, recruitment and retention, through to supporting innovation and a diversity of thought in decision-making – we should now be looking at how to better showcase good examples of business success in this agenda.
“We will also explore further work that may quantify how progressive approaches to EDI can result in productivity gains – which is high on the business priority list as they seek to grow once more following the pandemic.”
Key findings in equality, diversity and inclusion research
The Chamber and emh group surveyed 341 East Midlands companies in November for the study – the first of its kind in the region – which found:
· 48% of businesses have a specific EDI-related policy, but four in 10 (40%) haven’t and 12% were unsure whether they did
· 68% felt having specific approaches to EDI would play a role in supporting the achievement of business plans for the next 12 months, with 26% believing this role would be significant and 11% saying it would play no part
· 55% of respondents felt EDI formed an important part of their leadership discussions and strategy, with 14% saying this was to a great extent and 12% believing there was no EDI focus at all
· When asked about the benefits of having an engaged approach to EDI, 61% said it can help create an inclusive working environment, 54% believed a “diversity of thought” could lead to better decision-making, 45% felt it supported innovation and creativity, 42% claimed it supported staff retention and recruitment, and 41% identified how it helped to better represent customers and clients – with just 17% seeing no real benefits
The research also highlighted some particular sectoral gaps across the East Midlands economy when it comes to embracing the EDI agenda.
While 48% of all businesses have a specific policy in place, the proportion fell to 43% for manufacturers – although those unsure increased to 20%, suggesting slightly less understanding or communication of EDI activity within these businesses.
Chan Kataria OBE
Chan Kataria OBE, Chief Executive at emh group, said: “This research builds on our joint commitment to promoting diversity and inclusion within communities and organisations across the region. The findings provide a solid platform for exploring opportunities to enhance performance on EDI.
“We see this as a starting point for showcasing engagement on EDI issues and exploring some of the barriers within specific sectors and small businesses. We look forward to further discussions with Chamber members to consider and share good practice.”
How businesses can increase engagement with the EDI agenda
A set of recommendations were made as part of a discussion paper published by the Chamber and emh group, titled Understanding attitudes and approaches to Equality, Diversity and Inclusion in the East Midlands:
· Further support on developing EDI-specific polices can be offered to those businesses that view these as having a value but are yet to have policies in place
· Businesses that are active in this space should be encouraged to demonstrate their approaches and showcase best practice
· There is an opportunity for further work to quantify how progressive approaches to EDI can support a business’s success and productivity gains
Lincoln’s De Wint Court Extra Care facility in Boultham Moor has been officially opened, with residents set to move in next month.
The £12 million, 50 one-bed and 20 two-bed apartment extra care facility is the first such scheme to open its doors. Jointly funded between Lincolnshire County Council, City of Lincoln Council and Homes England, the facility has care provision available, non-resident management and support staff, a wellbeing suite, changing places facility, restaurant and salon.
Councillor Wendy Bowkett, Lincolnshire County Council’s executive member for Adult Care and Public Health, said: “This type of accommodation will be vital going forward with the forecast increase of older aged people and vulnerable adults in the county.
“It will provide quality accommodation for these groups who want to remain in their own homes but also gives them the option of on-site care.”
Residents can enjoy the benefits of renting a home, free from the worries of maintenance or gardening, along with like-minded over 55s. With access to care and support on-site 24 hours a day, together with additional communal facilities, De Wint Court offers the perfect place to make your home.
Cllr Donald Nannestad, Portfolio Holder for Quality Housing at City of Lincoln Council said: “These new apartments will enable residents to maintain independence in their own homes as their needs change with care providers arranged by the county council.
“De Wint will play a vital part in our commitment to provide quality homes, to meet the diverse housing need within the city, and I welcome our new residents to the development.”
Stuart Leslie, Divisional Director at Esh Construction added: “We are proud to have delivered this fantastic new extra care facility in Lincoln, providing high quality and much-needed new homes to enable people to live independently with onsite care and support.
“Throughout this scheme we worked hard to maximise the social and economic benefits for the local area. Through our commitment to employing locally, more than 70 operatives were Lincolnshire residents, and 24 new jobs were created for local people who were previously unemployed.”
Christine Seaton Senior Manager – Affordable Housing Growth at Homes England said: “This is a high-quality development of apartments for older people that will support independent living and contribute to their wellbeing and the wider community. I am pleased to see these homes completed and ready for new residents.
“Homes England recognises and supports homes that make a meaningful contribution to people’s lives and their community. We are pleased to work in partnership with the City of Lincoln and Lincolnshire County Council to make these homes happen.”
The county council is investing £12m to support the development of Extra Care Housing for older people and Community Supported Living options for adults with a disability.
Work is due to start on a Welton scheme in October in partnership with LACE Housing. Another scheme at the Hoplands site in Sleaford will begin next year, in partnership with North Kesteven District Council. These schemes will provide a fantastic opportunity for residents to remain in a home of their own, connected to their local community, where they can be supported and encouraged to live meaningful and independent lives.
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