Purpose Media Managing Director, Matt Wheatcroft, reflects on the impact of the interest rate rise and looks ahead with some useful insights for 2022.
When asked what they think about the current economic and political landscape there are no doubt plenty of business owners saying “it’s tough” – except most are probably using a much stronger expletive instead of ‘tough!’ The rise in mortgage interest rates is already leading to a more cautious approach from banks towards borrowing and credit limits which in turn will impact both commercial and personal customer spending. Couple this with the stresses of the employment market and the clouds of perfect storm are already forming. Problems getting staff for roles in retail, logistics, food and drink and healthcare have been repeatedly highlighted, but the same issues are happening within the marketing profession as businesses battle to retain customers and market share. The demand for people with specialist digital marketing skills and experience and the salaries being offered has gone sky high – in fact, it’s gone to another galaxy! Companies which had already embraced digital marketing strategies within their marketing toolkit wanted more – and those who previously thought them unnecessary realised that lockdowns, store closures and people working from home required radical changes to their marketing approach. Businesses have been forced to make changes in order to counteract the loss of in-store and face to face interactions and the brand profile lost from traditional sponsorship or advertising at empty venues. Those affected have simply had to embrace the use of websites to sell online or offer click and collect services, as well as use email marketing, social media and digital PR in order to communicate with customers. Consequently, the battle for talent to meet this demand means that not a day goes by when marketing agency bosses don’t hear reports of a team member getting a call from a head hunter. If the combination of these dynamics adds to the likelihood of inflation (which I think it will), I fear there is a risk is that employees who jumped ship for inflated salaries might find themselves the first casualty when their new employer looks to rationalise their overheads – regardless of industry sector. So my advice to those looking to jump ship is to really consider if the grass really is greener on the other side? Would it be a better long term option to show a little bit of loyalty and stand by your current employer – particularly if they’ve treated you fairly over two of the worse years you will probably ever have experienced. As a business our saving grace has been the fact Purpose Media did everything to protect the financial and mental well-being of our staff has strengthened employee and client relationships. Also, a key part of our recruitment strategy has been to develop and nurture a good proportion of our talent by offering apprenticeships. The fact we can offer a structured career path has helped create a great place to work and lots of loyalty and many apprentices progress to be part of the senior management team. Offering these opportunities also gives me a lot of personal satisfaction as it is this generation of learners who has been most impacted by the last two years.Digital marketing agency wins helicopter filming contract in Swiss Alps for refrigeration company
The video production team from Derbyshire-based full service digital marketing agency Purpose Media has won a contract to film and photograph the delivery by helicopter of a refrigerator to a remote location in the Swiss Alps on behalf of global commercial refrigeration company, True Manufacturing.
Over the last 4 years Purpose Media has been helping the company develop its UK and European marketing strategy and has successfully launched its new brand message and communication strategy to establish True’s ‘Passion for Cold™’.
Day one of the contract in Switzerland involved filming True products in use in a commercial bakery, a commercial kitchen and a busy restaurant. The final day of the project involved filming and photographing the delivery of a refrigerator by helicopter to a restaurant in a remote location in the Alps.
Olga Beck, Marketing Manager EMEA at True Refrigeration, said: “The team at Purpose Media went above and beyond for us and we cannot thank them enough for their hard work across two intensive days. They project managed their time perfectly to scope out the scene and plan each day’s filming. The finished film and photography is something quite extraordinary and has certainly helped to demonstrate True’s ‘going above and beyond’ brand values.”
Claudio Davanzo, Creative Director at Purpose Media, said: “This was an incredible experience for the team. We’ve gone from working next door to the Peak District to filming in the Swiss Alps. There were challenges with the weather, but the team managed to get the shots they needed, and I’m pleased to say the end product is a triumph. Our team have certainly shown their versatility on this project.”
Nottinghamshire funeral firm unveils £350,000 plan to transform Eastwood’s historic police station
A Nottinghamshire funeral firm will soon be able to host services in its own purpose-built chapel thanks to an ambitious £350,000 renovation scheme that will give a town’s 19th Century police station a brand-new purpose.
Gillotts Funeral Directors has unveiled its plans to create a 20-seat chapel alongside a number of other new facilities on the ground floor of the building in Eastwood, which was built to serve the town in 1878 but has stood empty for more than four years.
The company, which is based next door in Nottingham Road, bought the police station three years ago and was recently granted permission by Broxtowe Borough Council to carry out a conversion which will ensure the building continues to perform a community function.
Under the plans, Gillotts will create multi-purpose spaces, including three chapels of rest, one of which will be large enough to hold intimate funeral ceremonies when only a small number of attendees are expected. There will also be facilities for families to prepare their loved ones for burial or cremation themselves, which is an important requirement of certain faiths.
An existing vehicle entrance between Gillotts’ current premises and the police station will be filled in and converted into a reception area, and the existing funeral home will be renovated to include two family rooms and more office space.
The expansion of the Eastwood site is also necessary because of its role as the headquarters for the wider Gillotts group, which also operates funeral homes in Kimberley, Selston, Heanor and Stapleford. Clients from any of its funeral homes will be able to make use of the new facilities.
Joanne Hutsby, a partner in Gillotts, says that the police station conversion is three years in the making and will follow other ambitious schemes to convert community buildings that the company has undertaken.
This includes a successful £300,000 renovation of the ground floor of the former United Methodist Free Church chapel in Main Street, Kimberley, which was turned into a funeral home six years ago, and the conversion of Selston’s former police station five years ago.
She said: “Eastwood Police station is a part of the history of the town and so we’re really pleased to be able to announce plans which will ensure that it will soon have a role in the lives of the community again.
“Changing trends and the lockdown has meant that many families prefer to have smaller, intimate funeral gatherings and our plans for a larger multi-purpose chapel will give them somewhere they can hold a service before their loved one is taken to be buried or cremated.
“It’s a first for Gillotts, but it’s another sign of how we are adding new facilities to keep up with what families are looking for when they set about planning their loved ones’ funerals.”
The police station, which has a more modern extension stretching around the corner into Oxford Street, was replaced in 2018 by a new station co-located with Eastwood Town Council just 150 yards away, on the site of the former Post Office.
Logistics REIT acquires duo of East Midlands properties
Urban Logistics, the specialist UK logistics REIT which recently completed a £250 million equity raise and moved to the Main Market in December, has acquired four assets, using proceeds raised, for a total consideration of £28.6 million.
The value accretive assets include three immediately income-producing properties and the forward funding of a development project.
Two of the properties are in the East Midlands, including a distribution depot at Elland Road, Leicester. The 27,115 sq ft site is a parcel delivery hub let to the Royal Mail Group. The purchase price paid was £3,180,000 at a NIY of 5.0%.
A warehouse at Caswell Road, Northampton was also acquired. The 22,783 sq ft unit is let to Tuffnells Parcel Express until 2031. The purchase price paid was £5,600,000 at a NIY of 5.7%.
The company further snapped up a warehouse facility of 117,031 sq ft near the airport in Dundee, occupied by Hermes Parcelnet, and entered into an agreement to forward fund the development of a new logistics unit in Sheffield. The agreement is subject to planning, and the development is expected to complete in November 2022, and will comprise a warehouse of 131,500 sq ft.
Richard Moffitt, Chief Executive, said: “We’re pleased to confirm our continued deployment of capital following the close of our recent oversubscribed equity raise. This is testament to our team’s ability to act swiftly and reliably on deal execution.
“As previously stated, we have an excellent pipeline of “last mile / last touch” logistics assets to acquire and the team will be working hard over the coming months, investing in those quality assets that will be accretive to shareholder value, with further acquisitions expected before the end of the year.
“Our strategy of acquiring mid-box last mile logistics assets, in key locations, with excellent transport links has not altered since inception in 2016. We acquire properties which are key to our tenants’ operations, and we continue to create additional performance through active asset management and improved environmental performance.”
Morris Homes agreed as development partner for latest phase at Ashton Green
A housing developer has been appointed to deliver the next phase of building at a landmark regeneration site in the north of Leicester.
Leicester City Council has selected Morris Homes as its development partner for the next parcel of housing development at Ashton Green – major project to create a new neighbourhood of up to 3,000 homes, along with community facilities, green space and retail.
Morris Homes is one of the largest independently-owned house builders in the country and will deliver a new village centre with around 380 new homes, including 114 affordable homes, a supermarket, some smaller shops and attractive open space.
The city council has agreed to sell to Morris Homes 46-acres of land across two plots bordering Ashton Green Road.
This will be the third parcel of land developed for new housing at Ashton Green. Morris Homes was also the council’s development partner for the first phase of building, completing the construction of 100 new homes in late 2020. All these homes are now occupied.
The new homes will be contemporary in style, similar to the first phase, and will include a mix of three, four and five-bedroom family homes and two-bedroom apartments. The homes will meet the environmental standards for Ashton Green and will also incorporate well-designed landscaping with high ecological value and sustainable urban drainage.
Morris Homes aim to secure planning approval next year and will begin work on site in 2023, with the first of the new homes expected to be completed later that year.
City Mayor Peter Soulsby said: “Morris Homes were the first to commit to developing at Ashton Green. Their appointment to deliver a third phase of new house building, with much-needed affordable homes, will help maintain the momentum of this vital regeneration project.
“Appointing a development partner to deliver another 380 homes is an important milestone and represents significant further investment in our growing city.
“The ambitious programme of house building at Ashton Green is already making a valuable contribution to the number of new homes that are needed in Leicester – and it will ultimately contribute greatly to the economic prosperity of the city.
“Over the next five years, we expect to see developers invest an additional £150million at Ashton Green, and deliver more than 1,000 additional new and affordable homes.”
Mike Gaskell, Chief Executive of Morris Homes, said: “We at Morris are delighted to be partnering with the city council on this important next phase at Ashton Green which will provide much needed houses and facilities to the local community. We have an excellent working relationship with the council and our shared aim is to provide an exemplar development,”
Leicester City Council is the principal landowner and promoter of the Ashton Green development. It has already delivered substantial highway infrastructure improvements including new walking and cycling routes, traffic calming measures, new bus facilities at Beaumont Shopping Centre and major road building schemes.
Most recently, the city council led on the delivery of a series of new spine roads to help unlock a further 40 hectares of future housing development land at Ashton Green, backed by £10million of government funding from Homes England.
Construction of another 307 houses is already underway by Tilia Homes, which began work earlier this year.
Some 3,000 new homes are planned in total as part of the overall development of Ashton Green, and it is expected that 30 per cent of these will be affordable homes for rent or shared ownership.
Derbyshire company staff write letters of festive cheer to people lonely at Christmas
Employees at a Derbyshire company have given a huge boost to a campaign designed to lift people’s spirits by sending them personalised letters.
The Give … a Few Words campaign was set up during the Covid pandemic in 2020 to try to reach out to isolated people by matching them up with volunteer writers who would send them a letter with a personal touch. Letter recipients were initially from care homes but the campaign has now expanded to include those who are isolated in other settings, as well as families going through a tough time who may appreciate the boost a letter can bring.
Lubrizol, a company with branches all over the world including at Hazelwood near Belper, has given the campaign huge support with more than 40 employees signed up to write letters to people they have never met, including writers from Mexico and the USA.
The campaign has recently launched a festive #Letters for Christmas drive to reach out to people who may be alone, or otherwise struggling, during the festive period – and a team of Lubrizol employees have been taking part.
One of them is Jagienka Harrison, from Allestree, who knows a thing or two about the importance of letter writing. When she arrived in the UK from her native Poland aged 19, Jagienka relied on letters to keep in touch with her family.
Jagienka said: “When I first moved to England in 1999, the Internet wasn’t a thing and I used to write letters to people. I used to try and ring my mum every now and then but it cost a lot more in those days. Letters were great and I used to receive a lot of them.”
When writers take part in the Give … a few words scheme, they are given some details about the interests of the person receiving the letter, which may range from handicrafts to sport, history or even a love of jokes! The writer then crafts a personal letter which is sent to the charity’s post box in Huddersfield where it is then forwarded to the recipient – and only positive content is allowed! They are also able to write an email – the idea is just to communicate personal positive messages through the power of the written word.
Jagienka, an HR administrator for Lubrizol, said: “I think it’s a great scheme. It pushes you a little bit! What I always think about, especially over Christmas last year, is that although my grandmother is no longer alive, if she had been, she would have felt very lonely in Covid times on her own, I’m sure, and she would have loved to receive a letter from somebody.
“I just think that it doesn’t cost anything apart from a piece of paper and a stamp but you might just make somebody’s day.”
The idea of the Give … a few words campaign is that it is not intended to be a long-running pen pal scheme, which may make participants feel the pressure of long-term commitment, but rather, a one-off letter.
Founder Sharron Wilkinson, of Huddersfield, has now set up the campaign as a community interest company.
She said: “Some people receiving these letters have been in tears. They are overwhelmed. There is something really, really special about receiving a gift of something and there is nothing expected in return.
“Care homes have had such a tough time. Residents have had a tough time. A letter gives everybody a lift.”
Sharron said Lubrizol’s support for their campaign had been “amazing”, with letter writers from its branches overseas having got involved outside the festive season too.
She said: “Lubrizol has really, really embraced this. They have been involved from really early on. We are highly appreciative of their support and kindness.
“Some people are on their own, that’s the reality. Or they might be having a tough time. It’s just a really nice thing to be able to do to give some people a bit of a lift, and a bit of a smile.”
For more on the Give … a few words campaign, see https://thegive.co.uk, phone 07498 818838 or email hello@thegive.co.uk
2022 Business Predictions: Andrew Mair, partner and head of BDO LLP in the East Midlands
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 Andrew Mair, partner and head of BDO LLP in the East Midlands.
There’s little doubt that the last 12 months have continued to test the resilience of the East Midlands business community. Impacted by the emergence of a global pandemic in 2020 and its lingering presence, regional businesses have also had to contend with the fall-out from Brexit – adapting the way they operate to manage pressures on domestic and international supply chains, input price inflation, worker shortages and additional red tape and regulation.
The challenges have remained consistent throughout 2021, but the way businesses have dealt with those issues has evolved. East Midlands businesses have remained optimistic about the rate of recovery, have committed to delivering on growth strategies and have stayed focused on critical business issues that transcend COVID-19, such as ESG.
The recent emergence of a new variant has reminded us all that the pandemic is an ever-present threat to businesses and the way in which they operate. According to our latest Rethinking the Economy survey of 500 medium-sized businesses, leaders in the East Midlands fear supply chain disruption will affect their ability to offer the usual range of products and services, impacting end of year trading. Nearly half of companies in the region are planning to increase the prices of their goods and services as a result.
Despite these pressures, more than a quarter (27%) of companies in the region expect to see their revenues return to pre-pandemic levels within three to six months. That sense of optimism translates into plans for 2022, with nearly a quarter (23%) of East Midlands companies surveyed prioritising investment in international expansion, with one in five Midlands businesses looking to drive growth into the US next year.
M&A opportunities have continued to rank highly in terms of investment priorities in 2021, and we expect this trend to continue into next year. It’s fair to say that the regional marketplace has rebounded from a turbulent 2020, with the uplift in activity leading to eager and cash-rich investors willing to pay over the odds for businesses, skewing valuations.
Reassuringly, the fundamental market dynamics remain steadfast, with the appetite of corporate acquirers, private equity, alternative investors and open debt markets showing no signs of abating. The key is finding a good home for the ‘wall of money’ that’s currently available in the regional market.
Sectors to watch in 2022 are technology, which will remain at the forefront of activity, biotech, pharmaceuticals, life sciences and telecoms. The good news for the East Midlands is the re-emergence of ‘forgotten’ sectors, such as automotive and aerospace, as well as hospitality and leisure, which have all suffered at the hands of the pandemic.
One thing is certain in 2022 and that’s the ongoing debate about the threat of climate change, the environment, the depletion of natural resources and the role that businesses have to play in helping to achieve the stated aims of our own and other nations. As a region that has a rich heritage in manufacturing and exports across the world, the East Midlands has a real part to play in the ESG movement – whether that’s by prioritising the green agenda or focusing on achieving net-zero emissions. The efforts to combat climate change will create real changes to business models, operational costs and regulation – and corporate strategies will have to evolve to manage the shifting landscape.
There’s much to digest from 2021 and much to consider for 2022, no more so than the growing emergence of modern, collaborative working, and the transition for many to an agile-workforce. For now, businesses will have to balance the pressures of supply chain disruptions, geopolitical risks, the continuing fall out from Brexit, price inflation, and labour shortages – factors that have and will continue to influence day-to-day operations.
Qatar to invest £85m in Rolls-Royce’s new low carbon nuclear power business
Rolls-Royce has reached agreement with Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar, to invest £85 million in Rolls-Royce SMR Limited.
Rolls-Royce SMR is building a new technology solution to deliver affordable, low carbon, nuclear power. A single power station will occupy around one tenth of the size of a conventional nuclear generation site and power approximately one million homes.
QIA will join Rolls-Royce Group, BNF Resources UK Ltd and Exelon Generation Ltd as shareholders in Rolls-Royce SMR, taking a 10% share of the equity.
Mr Mansoor bin Ebrahim Al-Mahmoud, Chief Executive Officer of QIA, said: “QIA is investing in the energy transition and funding the technologies that enable low carbon electricity generation. We will continue to seek out investments that align with our mandate to deliver long-term value for future generations through responsible sustainable investments.”
Warren East, CEO, Rolls-Royce Group, said: “I am tremendously pleased to announce that we have further strengthened our relationship with Qatar, through QIA’s investment in the Rolls-Royce SMR business. We have successfully raised the capital we need to establish Rolls-Royce SMR and it is encouraging to confirm that the business is now set up to succeed.”
Business and Energy Secretary Kwasi Kwarteng said: “This investment is a clear vote of confidence in the UK’s global leadership in nuclear innovation and follows the £210 million of government investment in the development in Small Modular Reactors.
“It represents a huge step forward in our plan to deploy more home-grown, affordable clean energy – ensuring greater energy independence for the UK, highly skilled jobs and bringing cheaper, cleaner electricity to people’s homes.”
Minister for Investment, Lord Grimstone, said: “Although the COP26 Summit ended last month, the work to reach Net Zero and build back greener from the pandemic goes on.
“Investment will play an important role in this. By investing millions into innovative green tech, like Small Modular Reactors, not only are we working hard to end our contribution to climate change, but we are securing thousands of highly-skilled jobs.”
The Rolls-Royce SMR business is now fully funded, having secured £490 million through commercial equity and UK Research and Innovation (UKRI) grant funding. The development of SMRs is a core part of the UK Government’s 10-point plan for a green industrial revolution.
Packaging firm helps out the homeless and vulnerable with festive care packages
Staff at a packaging firm have once again played Santa – hand-delivering hundreds of hampers to the most vulnerable people of the area.
The elves at The Wilkins Group, based in Colwick, Nottinghamshire, have put together 250 festive care packages full of winter essentials to help users of local homeless shelters, and other vulnerable people, get through the winter months.
It follows a similar, successful charity drive last Christmas, in which The Wilkins Group delivered 344 festive hampers to local Covid-19 heroes and those most in need.
The latest packs contain a hat, gloves, thermal socks, toiletries including shower gel, toothpaste and a toothbrush, and snacks.
Among those set to benefit are users of Emmanuel House, Framework, The Friary, Men’s Complex Needs, Women’s Complex Needs, Hughendon Lodge, Nottingham Nightstop, The Arches and SOTA Sneinton Hermitage.
The donation comes after charities warned that they expect homelessness in Nottingham to increase past pre-Covid levels and that this winter could be the worst in a decade for rough sleepers.
A new kind of homelessness is presenting itself, with reasons including domestic issues, rather than substance misuse or mental health problems.
One recipient of a Wilkins care package, Sam, a service user at Emmanuel House support centre, in Goose Gate, said he had recently been released from a five-week prison term for a probation violation.
Sam said: “Last night I was on the Trent embankment in my sleeping bag.
“The toiletries will certainly come in handy. It’s very kind of The Wilkins Group to do something like this. It means a lot.”
Gill Barker, marketing and fundraising assistant at Emmanuel House, said: “The festive packages from The Wilkins Group are gratefully received by Emmanuel House support centre.
“The contents of the donations are amongst our most needed items and will be distributed to people using this service who are experiencing homelessness, in crisis, are rough-sleeping or at risk of homelessness.
“It will make a difference to the beneficiaries, who otherwise have no access to these basic supplies that many of us take for granted. This is particularly important at this time of year.”
Justin Wilkins, sales and marketing director at Wilkins Group, said: “There’s no doubt that it’s been another tough year for many. Now, as we’re in the depths of winter, we find ourselves thinking more and more of others, and what we might be able to do to help them.
“I had no idea how many charities there were that help the needy in our city and county – it shows how much they are needed. As a local company, we are committed to giving back to our local community, and if these packs can put a smile on just one person’s face, then it’s worth it.”
Bingham industrial unit sold to e-commerce fulfilment business
An e-commerce fulfilment business has snapped up a Bingham industrial unit.
Anthony Barrowcliffe of FHP Property Consultants has completed on the sale of 35 Moorbridge Road to Crocodile Stores.
The unit comprises of a semi-detached warehouse, of 5,588ft², with 4.5 metre eaves, located within an established industrial location.
Anthony Barrowcliffe of FHP Property Consultants said: “I realised quickly when I met Matt Kirby that he had a rapidly growing business working in the e-commerce sector which has seen huge growth, especially due to Covid-19.
“He was already operating three warehouses from Cotgrave so 35 Moorbridge Road worked brilliantly for this already established business due to it being located a short simple drive away on the A46.
“The warehouse consisted of simple storage space with only a small office to the front which suited Crocodile Stores operation perfectly. I hope to work with Matt Kirby again as I know he has already almost filled 35 Moorbridge Road and is still winning more and more business due to his brilliant operation/reputation.”
Matt Kirby of Crocodile Stores said: “Crocodile Stores offer e-commerce fulfilment services and Christmas is a key time of year so time was of the essence in getting the deal done in order to be ready for our peak season. Securing the additional space has allowed our business to service significant growth for our clients with order volumes doubling compared to Quarter 4 in 2020.”
