< Previous East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FINANCE NEWS Local businesses boosted with launch of Early Stage Angel Investment Fund ‘Early stage’ businesses based in Nottinghamshire and Derbyshire can now pitch to access new funding to support growth. The Early Stage Angel Investment Fund (ESAIF) was developed by the D2N2 Local Enterprise Partnership (D2N2 LEP) ahead of it becoming part of the East Midlands Combined County Authority (EMCCA) earlier this year. The Fund, which has been launched at events in Derby and Nottingham, aims to stimulate investment and growth in ‘early stage’ companies – those that have been trading between six and 24 months. D2N2 LEP/EMCCA are contributing £4 million to the fund, match-funded by ESAIF fund manager, Haatch. Over the longer term these funds will be re-invested in the programme, to catalyse investment and growth for more early-stage companies. Claire Ward, Mayor of the East Midlands, said: “I look forward to hearing all about the impact of this fund, how it supports our local businesses, and how it will help our regional economy thrive. I’m keen to see what we can achieve together through this significant investment and strong collaborative partnership.” Derbyshire firm make South Yorkshire acquisition Derbyshire accountancy and tax specialists Shorts has acquired South Yorkshire accountancy firm Hewson & Howson in a deal which sees all of the Hewson & Howson employees join the Shorts team. Formed by Ian Hewson and Andrew Howson in 1995, Hewson & Howson built a respected reputation throughout its 30-year history, specialising in providing a partner led service to owner managed businesses. Driven by the decision for both Ian Hewson and Andrew Howson to retire, transferring the business to an accounting firm with a similar culture and service ethic was a key priority for both outgoing partners. Andy Irvine, Managing Partner at Shorts, said: “Hewson & Howson have a long-standing reputation for providing their clients with high quality tax and accountancy service and we are delighted to now welcome their team and clients to Shorts. Their approach of providing a fully supportive and personal service, and building long standing relationships with their clients is very much in line with the culture here at Shorts and we are looking forward to working with their clients and team over the years to come.” Derby firm merges with accountancy group Derby-based accountancy firm Ashgates has announced a strategic merger with Stoke-on-Trent headquartered accountancy group, DJH. The merger springboards DJH group into the East Midlands, expanding its footprint alongside its existing 10 offices across the Midlands, North-West, and Yorkshire regions. The new partnership provides Ashgates clients with access to additional specialist in-house services offered across the DJH group, including enhanced R&D and capital allowances teams, commercial funding, dedicated corporate finance, estate planning, and HR. Directors Tony Lymn, David Newborough, Steve Martin, Ian Johnson, and Gavin Booth will continue to lead the Ashgates team and will all remain shareholders. Jonathon Williamson will also be promoted to Director, having developed his career with Ashgates. Jon Wolliter will continue to head up Ashgates IT, supporting clients with IT solutions. Ashgates will retain its name and brand, and its offices will remain at 5 Prospect Place, Pride Park. Internally, the partnership will give Ashgates more support in relation to its own HR, recruitment, and training and development. L-R: Ian Hewson, Andy Irvine and Andrew Howson The Nottingham launch eventFINANCE NEWS www.eastmidlandsbusinesslink.co.uk East Midlands Business Link Profit warnings issued by listed Midlands companies up 15% in first half of 2024 Listed companies in the Midlands issued 15 profit warnings in the first half of 2024, an increase of 15% on the same period in 2023, according to the latest EY- Parthenon Profit Warnings Report. Companies in the Midlands issued six warnings in Q2 2024, down by a quarter on Q2 2023 when eight warnings were issued. This is the region’s lowest quarterly total since Q1 2023, when five warnings were issued. Nationally, in Q2 2024, the number of profit warnings issued by UK listed companies fell 26% compared with Q2 2023, with 49 warnings issued – the lowest quarterly total since 2021. Despite a decrease in the number of quarterly profit warnings, the proportion of UK listed companies issuing a warning over the past year stands at 18.4%, exceeding the peak level observed immediately after the 2008 global financial crisis. This high level can be attributed to a significant number of ‘new’ companies issuing warnings for the first time within a 12-month period. Leading factors behind many Q2 profit warnings included contract issues and cost pressures. Aircraft robotics pioneer raises £1m to support business expansion A £1 million equity investment in True Position Robotics has become the first deal from the Midlands Engine Investment Fund II, facilitated by fund manager Mercia Ventures. True Position Robotics (TPR) is a Nottingham-based company whose industrial robots could revolutionise aircraft production and slash the cost of new planes. The investment comes as demand for new planes has surged due to a rise in passenger numbers and a drive by airlines to replace ageing fleets with more modern, fuel- efficient craft. The equity investment will enable the business to scale up operations and continue its research and development. Roger Holden, CEO, True Position Robotics, said: “Unlike vehicle assembly, where processes are repeatable, with aircraft the need for lightweight components and high precision means that no two operations are the same. For this reason automation has so far proved too difficult or too costly. Our robot guidance systems overcome these challenges. “The investment from the Midlands Engine Investment Fund II will enable us to consolidate our position and start work on the next generation of products to ensure we maintain our position as thought leaders in the industry.” © stock.adobe.com/ntinai Nottingham recruitment company secures multi-million-pound investment Specialist recruitment company Metric Search has secured a multi-million-pound investment from BGF, the growth capital investors. Founded in 2019 by Joe Jani, with headquarters in Nottingham, the business has offices in New York, London and Florida to service its growing US customer base. The funding from BGF will allow Metric to further extend its footprint in the US recruitment market, which is worth an estimated $216 billion, by expanding its offering into dedicated exec search, contract recruitment and further niche specialisms. The deal was led by Adam Huckerby, Sam Giurani and Seb Saywood, investors in BGF’s Midlands team. Andy McCrae – part of BGF’s Talent Network – is joining as non-executive chair (NXC). He brings a wealth of industry experience from the likes of Phaidon International, Oliver James and SR Group, having previously worked with a range of PE-backed businesses and entrepreneurs. In addition, John-Joe Walker has been appointed as chief commercial officer to ensure the company continues to offer the best level of client care across its global office base, alongside continued support from Zac Flint as finance director. © stock.adobe.com/lexiconimages L-R: Hannah Tapsell Chapman, Mercia Ventures, Roger Holden, True Position Robotics, David Tindall, British Business Bank L-R: Sam Giurani (BGF investor), Andy McCrae (non- executive chair), Joe Jani (Metric founder and CEO), Zac Flint (financial director), Adam Huckerby (BGF investor), and John-Joe Walker (chief commercial officer)Manufacturing output expectations strongest since 2022 Optimism among manufacturers fell slightly in July, after rising in April for the first time in nearly three years, according to the CBI’s latest quarterly Industrial Trends Survey. Output volumes were broadly unchanged in the quarter to July, following a similar result in the three months to June, and under- performed expectations for modest growth. However, manufacturers continue to expect output to increase over the next three months, with growth expectations the strongest since March 2022. Total new orders fell in the quarter to July but are expected to be broadly stable over the next three months. Inventory building is expected to provide some support to output in the months ahead. Stocks of work in progress are expected to rise at the fastest pace in over two years, with stocks of raw materials and finished goods also set to increase. Average cost growth accelerated compared with April and remained elevated compared to historical norms. Cost growth is expected to slow in the quarter to October, while remaining historically strong. Domestic and export price inflation also accelerated but are both expected to slow in the next three months. East Midlands Business Link www.eastmidlandsbusinesslink.co.uk MANUFACTURING NEWS East Midlands manufacturer completes £1.6m contract for major residential scheme in Leeds Mansfield-based Deanestor, the furniture and fitout specialists, has delivered a £1.6m contract to provide more than 300 high specification kitchens for a major new co-living scheme in Leeds, developed by Caddick Developments. Mercer West and Madison East are two adjoining apartment buildings near the River Aire in Leeds’ vibrant cultural quarter, which were built by Caddick Construction. This build-to-rent development is part of SOYO Leeds – a new neighbourhood in the heart of the city. Deanestor provided bespoke, contemporary kitchens for 331 apartments in a range of configurations to suit each apartment layout. This involved the manufacture and installation of around 4,500 items of furniture including base and wall cabinets, drawers, tall fridge unit, oven housing and solid white quartz worktops. Eugene Cannon, Senior Quantity Surveyor at Caddick Construction, said: “The Deanestor team excelled commercially and in the design phase for this complex and large-scale co-living scheme. They were helpful at each stage and had a common-sense approach to any challenges, such as the need to upgrade appliances.” BRUSH Group opens multi-million- pound transformer test cell facility in Loughborough Energy engineering solutions provider BRUSH Group has opened a multi-million-pound world-class transformer test cell facility at its transformer manufacturing facility in Loughborough. The facility, housed in a huge former workshop at the firm’s Falcon Works in the Leicestershire town, will put newly built power transformers through their paces before being shipped out to BRUSH customers. Key customer representatives joined BRUSH employees for the official opening of the test cell which features a high-voltage acoustic test area with 12-metre-high doors. From this new testing facility, BRUSH has the capability to conduct a comprehensive range of tests on its transformers. With dedicated storage for up to four of BRUSH’s biggest transformer units, the facility allows the company to significantly increase its production capacity to meet the UK’s fast- growing demand for power transformers as the country gears up for decarbonisation. Image courtesy of Caddick Developments © stock.adobe.com/GorodenkoffBuyer sought as Lincolnshire manufacturer falls into administration A Lincolnshire manufacturer has fallen into administration, with a buyer being sought for the business. Gareth Harris and Deviesh Raikundalia of RSM UK Restructuring Advisory LLP were appointed as Joint Administrators of MTAG Composites Ltd, MTAG (Holdings) Ltd and Electric Future Group Ltd on Friday 12 July 2024. Based in Coningsby, MTAG Composites is the trading company in the group and is a manufacturer of moulded composite parts for the rail, aerospace, automotive, construction and leisure sectors, producing items such as train interiors, aircraft seating and boats. Whilst viable options were being considered, the administrators took the decision to temporarily cease day-to-day operations immediately upon their appointment. Following an accelerated and detailed review of the financial position, the administrators have decided to recommence day-to-day operations on a limited basis to align with the timetable for an accelerated sales process. Thus far, the administrators have made minimal redundancies but have retained all of the operational and production staff on a ‘lay-off’ basis. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link MANUFACTURING NEWS Nottinghamshire cable firm secures £340,000 funding deal to acquire manufacturing HQ A Nottinghamshire-based manufacturer and global supplier of cables and controls is eyeing further growth and safeguarding the future of its locally skilled workforce, after securing a major funding deal to help purchase a £550,000 industrial unit and business headquarters. Cable-Tec, which also operates a site in Liverpool, has guaranteed its long term future in the region by utilising the £340,000 facility provided by Reward Finance Group to help purchase its existing rented commercial property in Sutton-in-Ashfield. The company manufactures and supplies cables and controls to meet a diverse range of business applications and industry sectors, including agriculture, marine, construction and even motorsports. Cable-Tec was established in 1988, with current owner and managing director Kevin Whincup purchasing the business in 2019. Recognising the need to seize the opportunity to purchase the manufacturing facility within a short timeframe, he turned to alternative finance lender Reward, which specialises in providing property investors and SMEs with tailored business finance loans and asset based solutions of up to £5m. Upperton Pharma Solutions marks significant achievement at 50,000 sq ft facility Upperton Pharma Solutions, a contract development and manufacturing organisation (CDMO), has announced the successful completion of a Medicines and Healthcare products Regulatory Agency (MHRA) inspection at its newly commissioned 50,000 sq ft development and GMP manufacturing facility in Nottingham. This milestone inspection, conducted by the UK Government’s regulatory authority, marks a significant achievement for Upperton Pharma Solutions following the completion of the build, commissioning, validation and approval of the facility in just 18 months. With the successful MHRA inspection approval, Upperton Pharma Solutions has further enhanced its offering, supporting the development of oral, nasal, and pulmonary drug products underpinned by the capability to provide Phase I, II, and III clinical supplies. Nikki Whitfield, CEO of Upperton Pharma Solutions, said: “We are absolutely delighted to achieve this milestone. “We have been conducting manufacturing scale-up activities since the start of the year following the installation of the larger-scale solid oral dosage form process trains and this gives the green light for our GMP facility to support clients right through to late-phase clinical manufacture and product registration.” © stock.adobe.com/Daenin Steph Brown (Reward Finance Group), Kevin Whincup (Cable-Tec) and Becky Hayward (Reward Finance Group)PROPERTY NEWS Contractor appointed to build new £15m health services hub for Belper Contractor Henry Brothers Construction has been appointed to build a new £15m centre for community health services in Belper, Derbyshire. The modern facilities will be built on the site of the former Belper Clinic, as part of the Babington Hospital site on Derby Road. Derbyshire Community Health Services NHS Foundation Trust has commissioned Midlands-based contractor Henry Brothers to deliver the new building. It will include environmentally sustainable features such as photo-voltaic panels on the roof to harness the power of the sun, with pledges to use local and recycled material from demolished buildings in the build where possible, along with timber from certified sources. The health hub will feature 15 consulting rooms, six treatment rooms, a health education group room and other facilities, and will provide a range of services including community nursing, midwifery clinics, podiatry services, speech and language therapy, physiotherapy, continence advisory service, wound care and phlebotomy. Designed by architects Race Cottam Associates, it will accommodate all existing outpatient and clinical services provided at Babington Hospital. Work completes on £16.5m low carbon innovation hub in Leicester Brackley Property Developments (BPD) has completed construction of a new £16.5 million low carbon innovation hub in Leicester, on behalf of Leicester City Council. The Dock extension project has created three new buildings which deliver c.65,000 sq ft of purpose-built accommodation for hi-tech industries in an area of Space City formerly known as Pioneer Park, within Leicester’s Science and Innovation Enterprise Zone. Known as Docks, 3, 4 and 5, the new buildings include two new offices that cater for up to 45 businesses across c.43,000 sq ft. A terrace of nine manufacturing units provides more than 21,500 sq ft for innovative start-ups and established businesses seeking grow-on space. The new buildings are net carbon zero in operation and require no gas heating. They house a range of environmentally sustainable features, such as low energy LED lighting, roof-mounted photovoltaic panels on the offices, air source heat pumps, and super-thick insulation. Externally there is cycle storage and 12 electric vehicle charging points in a new parking area. East Midlands Business Link www.eastmidlandsbusinesslink.co.uk Construction starts on site of 280 new homes in Nottinghamshire Midlands-based homebuilder Spitfire Homes has commenced work on the construction of 280 new properties in Radcliffe-on-Trent, Nottinghamshire. The collection will include a range of detached, semi-detached and terraced properties ranging from one- to five-bedrooms. The delivery of new properties also includes community contributions totalling over £2 million, including a commitment of nearly £450,000 intended for local highway infrastructure and public transport improvements. Over £870,000 is also set to go towards enhancing and expanding Radcliffe- on-Trent Infant and Nursery, and Radcliffe-on-Trent Junior School, so they can offer more places to local children. Matt Vincent, Operations Director at Spitfire Homes, said: “We are excited to have started on site at this new location, with Radcliffe-on-Trent marking Spitfire’s debut collection of homes in Nottinghamshire. “We are committed to meeting the continued demand in the market for high-quality, design-led homes and strengthening our pipeline following a portfolio of successful schemes in Warwickshire, Northamptonshire and the Cotswolds.” Photo courtesy of Race Cottam AssociatesPROPERTY NEWS Land sold for affordable housing scheme in Rothley Specialist land development and property consultancy Mather Jamie has negotiated the sale of land on Cossington Lane in Rothley for development as an affordable housing scheme. Mather Jamie were instructed by a private landowner to seek developer interest in a consented development site in Rothley which had been successfully self-promoted by the landowner who obtained Outline Planning Permission for 40 dwellings. The land has been purchased by housing provider Longhurst Group, which owns and manages more than 24,000 homes across the Midlands and East of England. Marcus Keys, Executive Director of Growth, Development and Assets at Longhurst Group, said: “We’re committed to providing the homes people want, where they’re needed most and so this opportunity to build much-needed affordable housing in this part of Leicestershire is an exciting one for the Group. “We’ve been working closely with our partners to make this deal happen and develop our reserved matters planning application. “I’m looking forward to the next stage of this process and seeing our plans become a reality as we enable more local people to take their first step onto the property ladder.” Lomond continues aggressive growth strategy with acquisition of East Midlands estate agent Lomond has further expanded within the East Midlands region, with its 58th acquisition of Acquire Sales and Lettings, an agent with a presence in Derby, Burton and Chesterfield. The East Midlands property market has performed strongly in recent years, with house prices climbing by 15.1% in the last three years, outperforming the UK benchmark in the process, while rental values have also climbed by 20%. Such is the strength of the region’s property market that it has become a key area of focus for Lomond, as the firm continues to execute an aggressive growth strategy that has already seen four acquisitions complete within the East Midlands region. Lomond previously acquired the Nottingham and Derby lettings book of Royston and Lund, swiftly followed by the significant rental portfolio of Centrick and Nottingham based agent Tassi Sales and Lettings. Its latest acquisition of Acquire Sales and Lettings brings further investment to the East Midlands region and will add some 700 properties under management to Lomond’s John Shepherd brand. Scolmore Group has secured 51,000 sq ft at IM Properties’ Mercia Park scheme at junction 11, M42, significantly increasing the size of its warehouse space to accommodate its future growth. Scolmore Group is a manufacturer of electrical accessories, lighting, home automation, security and cable accessory products. It incorporates Click wiring accessories, Ovia lighting and lighting controls, Unicrimp cable accessories, ESP fire protection and security solutions, and Sangamo heating controls and time switches. The family-owned business, founded in 1989 in Tamworth and employing more than 350 people, will use the new state-of-the-art logistics centre to house the extensive and growing collection of lighting products from its Ovia lighting division. The Mercia 51 building, which is Net Zero Ready, BREEAM Excellent, with an EPC A rating will assist Scolmore Group in managing its own sustainability targets. The facility, which is scheduled to open in September, includes 10 active EV charging spaces, with passive infrastructure for another 30 and storage for up to 12 cycles. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 51,000 sq ft warehouse snapped up at Mercia Park © stock.adobe.com/Naypong Studio East Midlands Business Link www.eastmidlandsbusinesslink.co.uk COMMERCIAL PROPERTY Sitting within the ‘golden triangle’, the East Midlands continues to be a hotspot for industrial and logistics property. T he past month has continued to bolster the East Midlands’ reputation as a powerhouse for industrial and logistics property, with plans for new schemes receiving the green light and being submitted, site deals, and fresh lettings. In Derbyshire, for instance, Harworth Group has secured a resolution to grant outline planning consent from Amber Valley Borough Council for the development of 1.5 million sq ft of Grade A Industrial & Logistics space, as well as up to 300 new homes, at its Cinderhill development. Harworth owns or controls the majority of the site through a combination of freehold ownership and under a Planning Promotion and Marketing Agreement and is the first developer to unlock this complex site since taking control of it in 2018. The Cinderhill property has a long history of industrial uses including an iron foundry and opencast coal extraction. The new proposal includes land remediation, site servicing and installation of high-quality infrastructure to facilitate the construction of Grade A commercial units. The regeneration of this site once complete is expected to create over 1,000 new jobs. At an earlier stage of the planning process, Trebor Developments and Hillwood have submitted a detailed Trebor Developments and Hillwood’s industrial development in Northampton Golden plans www.eastmidlandsbusinesslink.co.uk East Midlands Business Link COMMERCIAL PROPERTY planning application for a major industrial scheme in Northampton. The application has been lodged for a single B8 industrial unit of 330,000 sq ft to be developed to BREEAM Excellent and EPC “A” rating. The building could be available for occupation in 2026 on a build-to-suit or speculative basis and is available on both a leasehold and rare freehold basis. James Drew, Trebor’s development director, said: “We are delighted to have reached the next key stage of delivery for this major, golden triangle, development. The building is expected to deliver over 350 direct full- time jobs, an ecological net gain of over 10% and generate a total economic benefit of £890m over the life of the scheme.” With eyes on creating further new industrial space in the region, Clowes Developments have purchased a 31-acre site at Harrier Park, Hucknall from Rolls- Royce via their development manager Muse. The business park has been fully serviced by Muse and has planning permission for 500,000 sq ft of warehouse/industrial space across six buildings. The site has a wealth of industrial history and a legacy of innovative engineering. The land was formerly used as an aerodrome associated with the development of the Rolls-Royce Merlin engine during World War II followed by the world’s first successful vertical take-off in the 1950’s with technology which in turn led to the Harrier ‘Jump Jet’ being developed. Sarah Day, senior land manager at Clowes Developments, said: “There are a considerable number of off-market opportunities being presented to Clowes currently, we are running appraisals daily, occasionally we find a site that ticks all our boxes and Harrier Park certainly does that. The site has the potential to develop just over 500,000 sq ft of industrial use facilities in a prime location with great connections across the East Midlands. We look forward to working with the local planning authority, Ashfield District Council, to bring forward a business park which will enhance the economy and provide employment opportunities locally.” Moreover, logistics real estate developer Panattoni has acquired a 65- acre site on the Nottinghamshire/Yorkshire border with planning consent for over 1.2 million sq ft. The two-phase development has been acquired from Mulberry Developments in an off-market deal. Panattoni will commence construction of what it says Greggs’ new National Distribution Centre © Tritax Symmetry 18 Á East Midlands Business Link www.eastmidlandsbusinesslink.co.uk COMMERCIAL PROPERTY will be the largest-ever speculative logistics unit in the North of England, a building of 770,000 sq ft, in the autumn. Practical completion is expected in September 2025, with Winvic Construction appointed as the contractor. The remaining 27-acre plot, which already benefits from reserved matters planning consent for a 461,000 sq ft building, will initially be marketed on a build-to-suit basis. Illustrating the attractiveness of such units in the region, GLP has signed a new lease agreement with Bleckmann, a logistics provider for companies in the fashion and lifestyle industry, for its 587,662 sq ft MPC 3 unit at Magna Park Corby. MPC 3 is now the largest building in Bleckmann’s portfolio, and the third occupied building with GLP, with the first two in Magna Park Lutterworth, bringing the total occupied space with GLP to over 965,000 sq ft. James Atkinson, development director at GLP, said: “Magna Park Corby’s importance as a logistics hub is strengthened by this significant agreement with Bleckmann. Their decision to establish a presence at Magna Park Corby recognises the UK as being a crucial growth market for their business. We continue to see strong demand for modern best-in-class, sustainable logistics warehouses and are delighted to see Magna Park Corby continuing to grow.” Meanwhile, Prologis UK has leased DC4 Prologis Park Kettering to Mannol, a global lubricant supplier. The 10-year lease will support Mannol’s expanding UK operations. The 154,452 sq ft unit will provide the space required for Mannol’s future growth ambitions, with transport links to the M1, M6 and M11, as well as connections to coastal ports and rail hubs, for national and international distribution. Mannol will join household brands including CEVA, Argos and Specsavers at the Park. Tom Price, leasing director at Prologis UK, said: “DC4, and Prologis Park Kettering, was the perfect fit for Mannol’s expanding operations. Originally built in 2007, we upgraded DC4 to meet the same high- quality standards of our current generation buildings in order to match customer expectations. The refurbishment programme also allowed for additional future proofing, for example the option to add in additional EV charging points as needed. We look forward to welcoming Mannol and watching the business grow and take advantage of all that the location offers.” DC4 Prologis Park Ketteringwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link COMMERCIAL PROPERTY Finally, Tritax Symmetry has announced plans for a new National Distribution Centre for Greggs plc at Symmetry Park, Kettering. The application proposes 311,551 sq ft of logistics space on a 25.1-acre plot. The initiative is part of Greggs’ strategic growth plan, announced in 2021, which set out ambitious expansion targets requiring investment in significant supply chain capacity. Greggs currently has 2,500 shops and its longer-term growth plans target an estate of more than 3,000 shops in the UK. This investment will bolster its capacity to directly supply ambient and chilled products to a growing portfolio of shops. Tritax Symmetry is also seeking permission for an additional 100,000 sq ft to enable Greggs to expand the site further. Subject to planning, Greggs expects its National Distribution Centre on Symmetry Park, Kettering, to be operational in the first half of 2027.Next >