< Previous East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FINANCE NEWS Midlands businesses hit with highest level of late payments Latest monthly research from the local branch of national insolvency and restructuring trade body R3 reveals that the Midlands is the UK region with the highest number of companies with late payments outside Greater London. R3’s figures for September, which are based on an analysis of data from business intelligence provider Creditsafe, show that 78,601 Midlands companies had invoices on their books last month which were overdue for payment. R3 Midlands Chair Eddie Williams, a partner at PwC in the East Midlands, said: “This research indicates the negative impact of the current economic climate on local businesses. Trading conditions are proving to be extremely challenging, not least because we are heading into the winter with rising supply and energy costs on top of a market which is still recovering from the effects of the pandemic. “For those business owners with significant concerns about their situation, the sooner professional advice is sought, the more opportunities may be available for finding the best possible outcome. Many R3 members offer a free initial consultation to those who are looking for such help and want to explore their options.” Pendragon bucks trend with £14.7m pre- tax profit in 3rd quarter Nottingham-headquartered car retailer Pendragon has delivered a strong trading performance in Q3 2022 with robust margins and impressive new car sales, despite new vehicle volumes elsewhere continuing to be impacted by reduced supply. Pendragon appears to have outperformed the market with new units up 14.2% in the quarter and new margins also remaining strong, with gross profit per unit (“GPU”) of £2,597 up £743 compared to Q3 FY21. In airport to the London Stock Exchange, the listed company reported that aftersales revenue and gross margin were both higher than in the prior year, with revenue up 5.0%, margin rate up to 51.7% (Q3 FY21: 50.3%) and gross profit up 7.8% as a result. The strong performance in new cars and aftersales broadly offset the lower used car volume and anticipated decline in used car margins. Overall, underlying profit before tax was £14.7m (Q3 FY21: £25.1m). Bill Berman, Chief Executive of Pendragon PLC, comments: “We are pleased with the performance in Q3 FY22 and remain confident in delivering progress towards our long term goals. While we continue to expect both new and used vehicle supply shortfalls for the last quarter of FY22 and into 2023, the new car order bank remains well above historic normal levels at over 20,000 at the end of September. The economic backdrop remains challenging, however we continue to expect to deliver group underlying profit before tax in line with Board expectations for the current financial year.” PKF Smith Cooper expands its tax advisory division by enhancing Capital Allowances service line Midlands-based accountancy and advisory firm PKF Smith Cooper is expanding its tax division with an enhanced Capital Allowances service, which will help local businesses and commercial property investors maximise tax relief on their capital expenditure costs. The company has recruited a new Capital Allowances Consultant, Thomas Webb, to offer additional expertise and support in this service line. Thomas has over 10 years of local and international experience in providing capital allowances support to businesses and investors across a range of sectors including construction, agriculture, food processing, furnished holiday lets, manufacturing, engineering, retail and hospitality, student accommodation and commercial property investment. In previous roles at KPMG and Grant Thornton, Thomas has worked with a number of high profile clients including supporting Pret A Manger with fixed asset additions on expenditure across the UK, USA and Hong Kong, as well as working with Lego on cost estimation and cost re-build for its head office in Denmark and flagship store in London. He has also developed extensive experience in servicing Midlands-based investors and businesses. Thomas commented: “As a new and solely focussed Capital Allowances Consultant at PKF Smith Cooper, I’m looking forward to developing the service that the firm provides for the benefit of existing and future clients. This is a great opportunity to make a real impact while supporting local businesses and investors in claiming the tax relief they are entitled to. This is an area of tax that can have a real impact on managing the tax burden of clients through identifying and accessing allowances that are often overlooked and I expect this to be important over the next few years. Working alongside the rest of the tax team, my goal is to play a significant part in establishing PKF Smith Cooper as a leading provider of Capital Allowances consultancy services in the Midlands.” From its key offices in Derby, Nottingham and Birmingham, PKF Smith Cooper provides a range of accountancy services. The company’s tax division delivers comprehensive support to clients of all sizes in personal tax, employment tax, VAT & indirect tax and private client tax. The expert tax team behind the services continues to grow, with the addition of twelve new recruits and two promotions in the past year. 06-15.qxp_Layout 1 31/10/2022 10:37 Page 5FINANCE NEWS www.eastmidlandsbusinesslink.co.uk East Midlands Business Link The merger of two leading accountancy practices is a welcome boost to Colchester and the surrounding area Streets Chartered Accountants, a top 40 UK accountancy practice, is delighted to announce the founding of Streets Whittles Chartered Accountants. The announcement follows the merger of the Colchester and Mersea island practice of Whittles with Streets Chartered Accountants, a mid-tier multi regional practice. When asked about the merger, Rachel Skells the lead partner for Whittles, said: “This merger is a great match, both in terms of client focus and cultural fit and we are very much looking forward to working with, and getting to know, our new colleagues. “Myself and my fellow partners made the decision to merge the firm with Streets because we believe it is in the best interests for all concerned. In terms of size, a three-partner firm has the benefits of a boutique firm but also a number of underlying challenges. Now that Whittles is part of a wider thriving practice, we can confidently promise greater continuity of service to our clients and greatly improved career prospects for our team. “We also believe our clients may potentially benefit in that the combined firm will also be able to offer a wider range of services including areas of specialist corporate and private client tax planning, international advice and personal financial planning.” Rising costs and falling revenues causing worst small business pessimism outside lockdowns, new figures reveal Cost pressures, falling revenues and a growing reliance on debt to prop up cashflows are among the gloomy findings of the latest Small Business Index (SBI) from the Federation of Small Businesses (FSB). The quarterly temperature-taking survey reveals the greatest level of pessimism among small business owners outside of lockdowns, with a net confidence score of -35.9 in Q3 2022, down 11.2 points compared to the previous quarter. Almost half (43%) reported falling revenues over the three months to October, compared to less than a third (32%) reporting an increase. Over the coming three months, four in ten (41%) expect revenues to decrease. Rising costs continued to affect the vast majority of small firms (89%), with nearly two in five (38%) seeing costs increase by more than 10%. The primary cost factors are utilities (60% of respondents), fuel (57%), inputs (48%), and labour (43%). More than two thirds (68%) of small business employers have increased wages over the last year, with the average wage increase 4.5%. For the third consecutive quarter there has been a rise in the number applying for finance (13% in Q3, compared to 9% in Q1). Of those, nearly half (46%) have turned to finance to help manage cashflow, up from 35% in Q2. Only a quarter (25%) applied for finance to expand their business, down from 29% the previous quarter. One in five (20%) finance applicants failed to find an offer with an interest rate below 11%, while the majority of successful applicants (57%) were offered rates between five and 10%. FSB development manager, Natalie Gasson-McKinley, said: “Small business entrepreneurs are, by their nature, an optimistic, dynamic and innovative bunch, which is why it is all the more stark to see this plunge in confidence. They want to be driving growth and economic recovery, but the headwinds against them right now are gale-force. “Recent political and economic turmoil hasn’t helped, which is why it is vital the Government focuses on stability, including delivering on its promises to help with energy bills for small firms and to reverse the hike in National Insurance. That money must be in the pockets of small firms by next month, no ifs, no buts, followed by clarity on what will happen after the initial six-month period.” 06-15.qxp_Layout 1 31/10/2022 10:37 Page 6Manufacturers report fall in output, but remain optimistic for coming quarter UK manufacturers reported a further fall in output in the three months to October, but expect production to pick up in the coming quarter, according to the CBI’s latest quarterly Industrial Trends Survey. However, with costs growth remaining exceptionally strong and the share of firms citing worries about access to skilled labour reaching a 49-year high, business sentiment fell for a fourth consecutive quarter, and at the fastest rate since the early days of the covid pandemic. CBI Lead Economist Alpesh Paleja said:“It’s a tough time for manufacturers. Price pressures remain acute, availability of materials is still a big issue – and it is 49 years since manufacturing firms were this worried about being able to find workers with the skills they need. It’s really no surprise that sentiment has deteriorated further. “Action to address the skills challenge is critical for the sector’s future prospects. Urgent reform to add flexibility to the Apprenticeship Levy would be an important first step for the new Prime Minister, which can rebuild confidence for manufacturers and restore momentum to their investment and growth ambitions.” East Midlands Business Link www.eastmidlandsbusinesslink.co.uk MANUFACTURING NEWS Trading ahead of expectations at Ibstock Ibstock, the manufacturer of clay bricks and concrete products, has hailed a “strong trading performance” in an update for its third quarter, ended 30 September 2022. Trading is ahead of the Leicestershire-based firm’s expectations, which it says has been supported by robust demand and a resilient business model. Ibstock’s board now expects FY22 performance to be above its previous expectations. The company said: “Whilst remaining mindful of the uncertain macroeconomic environment, the resilience of our business model and the strength of our performance in the third quarter of the year give us confidence in the outlook for the full year. Accordingly, we now expect performance for the 2022 year to be above our previous expectations.” Joe Hudson, Chief Executive Officer, said: “Our strong trading in the first half of the year continued through the third quarter, supported by robust demand across our end markets. We remain focused on serving our customers, through providing high quality, sustainable products and solutions to create much-needed homes and spaces across the UK. “We are making good progress in line with the strategy set out in March, and have continued to invest in areas that support our plans to capture growth opportunities across both our existing markets and new, fast growth segments of the construction sector. “Whilst we remain mindful of the elevated macroeconomic uncertainty, we now anticipate performance for the 2022 year to be above our previous expectations.” R&D investment plunges to new lows says new report The UK’s share of global research and development (R&D) investment has fallen by a fifth since 2014, according to new analysis of the most recent data by IPPR. The drop, from 4.2 per cent to 3.4 per cent, has occurred despite consecutive prime ministers talking up science and innovation as a core part of their growth strategies – from David Cameron’s ‘jewel in the crown’ to Boris Johnson’s ‘science superpower’. The UK only places 11th in the OECD in terms of total R&D investment as a percentage of GDP, well behind countries like Austria, Switzerland and the USA. Had the UK’s 2014 share of global R&D investment been maintained, it would have been £18 billion – or 26 per cent – higher in 2019. According to IPPR research, the UK would need to invest an additional £62bn this year – from public and private sectors – to overtake Israel as the leaders in R&D spend. Additional modelling by IPPR indicates that state investment fuels private sector investment. For example, if the UK government invested a further £1bn in R&D, private sector investors would contribute an extra £1.36bn over 10 years. The UK is currently 34th out of 36 in the OECD for attracting inward private investment. 06-15.qxp_Layout 1 31/10/2022 10:37 Page 7Multi-million pound engineering group created as CBE+ completes merger with NiTEC UK Chesterfield-based engineering supply chain solution provider CBE+ has completed a merger with Electroless Nickel Plating company NiTEC UK, creating a multi-million pound turnover business. The joining of the two businesses began in 2017 when Cooper Brown Enterprises (now CBE+) acquired NiTEC UK. The legal merger completes the integration of the two businesses and consolidates the CBE+ group’s capabilities to include Electroless Nickel Plating (ENP) alongside precision engineering, gear cutting, assembly and test facilities. It takes the headcount at the 70,000 sq ft site in Chesterfield from 65 to 88. The merger is the final stage in realising the vision of CBE+ founders Marie Cooper and Chris Brown to deliver an integrated supply chain solution. CEO Marie Cooper says: “This is the day we have been working towards for the last five years. Customers can now access all of our services from a single location and a single approved supplier, reducing transport costs and eliminating the inconvenience of approving multiple suppliers. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link MANUFACTURING NEWS Rolls-Royce and Alder Fuels join forces to fuel the race to net zero Rolls-Royce has signed a Memorandum of Understanding (MOU) with Alder Fuels, a clean tech developer and greencrude producer, to further test Sustainable Aviation Fuel (SAF) as it makes the next step on its journey to commercial scalability. The SAF, which has been produced based on Alder Fuels’ proprietary greencrude technology, is being readied for global rollout as a drop-in replacement to petroleum-based jet fuel and will be a critical tool for decarbonising the skies. The testing, which will include flight tests on a Rolls-Royce Pearl engine, will evaluate the energy efficiency, emissions criteria, and low-carbon credentials of the SAF produced from Alder Greencrude (AGC) and is part of Rolls-Royce’s ambition to play a fundamental role in enabling the sectors in which it operates to achieve net zero carbon by 2050. Frank Moesta, SVP Strategy & Future Programmes – Business Aviation, Rolls-Royce, said: “The use of Sustainable Aviation Fuel as a low-emission solution and its global commercial deployment are essential to the decarbonisation of medium to long-haul air travel. While we are also working on electrification, hybrid-electric and hydrogen technologies as long-term alternatives, rapid decarbonisation is within reach through this critical pathway. Through our partnership with Alder Fuels, we are taking the next steps on our journey to net zero and are committed supporters of the UN Race to Zero goal of 10% SAF use across aviation by 2030.” “At Alder, we are on a path to transform energy on the global stage and partnership is key to our vision. As a pioneer in both industrial technology and sustainable aviation, Rolls-Royce will play a leading role in decarbonizing the aerospace industry. Their name is synonymous with the best of engineering,” said Bryan Sherbacow, president and CEO of Alder Fuels. “Our hope is that this collaboration will not only mark an important milestone for the decarbonisation of aviation, but that it will send a strong global signal to the market that the future of sustainable flight is here and the time to transition is now.” © stock.adobe.com/ Pcess609 © stock.adobe.com/ Stefan_E 06-15.qxp_Layout 1 31/10/2022 10:37 Page 8PROPERTY NEWS Chesterfield’s industry experts analyse town’s growth potential at local roundtable Chesterfield has a unique offering and continued collaboration between the public and private sectors is critical in ensuring growth does not stop, according to a panel of industry experts. Speaking at national contractor Willmott Dixon’s second ‘Towns of the Future’ roundtable – hosted at Tapton Park Innovation Centre – the 10- person panel discussed topics including the current building stock, skills, talent retention and investment. It was agreed that identifying challenges in regeneration projects and collaborative working by the public and private sector can unlock potential hurdles. The panel agreed conversations taking place are very encouraging – something, which is especially important at a time when regeneration projects amounting to a value of more than £1 billion are in progress. Jerry Major, regional framework manager at Willmott Dixon, said: “Chesterfield has great potential and, because local authorities now understand what the private sector can offer more than ever before, the opportunity to make the most of different areas and create mixed-use developments is being unlocked.” Nottingham modern slavery experts to advise UK construction industry Modern slavery experts at the University of Nottingham are part of a new partnership to promote ethical labour in the UK construction industry. The ‘Alliance against Exploitation’ brings together the University’s Rights Lab; SCAPE, one of the UK’s leading public sector procurement authorities; the Gangmasters and Labour Abuse Authority; modern slavery charity Unseen; and Achilles, a leader in supply chain risk and performance management. The partnership has been formed to eradicate modern slavery and labour exploitation across the construction sector by sharing intelligence, identifying emerging trends and committing to robust auditing procedures. In interviews with 1,200 UK construction workers, almost half said they had not received written terms and conditions of employment while almost one in three admitted using non- standard evidence of right to work documentation to gain employment. East Midlands Business Link www.eastmidlandsbusinesslink.co.uk Midlands construction industry’s wellbeing drive to save lives Senior professionals in the construction sector in the Midlands will be given practical tips on how to improve wellbeing in the workplace at a workshop next month. The Midlands branch of the Civil Engineering Contractors Association (CECA) is holding an online wellbeing workshop for its members from across the region on Tuesday, November 1. It comes at a time when every single working day in the UK sees two construction workers taking their own life – according to the Lighthouse Construction Industry Charity. The session will be delivered by national renowned performance coach Gail Biddulph and will look at the practicalities of how employees’ wellbeing – both at home and at work – impacts them as individuals and the business as a whole. It will also look at ways of keeping people happy and motivated as well as how to spot tell-tale signs of wellbeing issues and if any interventions are needed. There will also be a focus on bosses too and how they can avoid burn- out. The workshop is part of CECA Midlands’ drive to help improve wellbeing in the industry and to keep the conversation about health and wellbeing high on the agenda. CECA Midlands continually aims to raise the awareness of mental health having delivered Mental Health First Aid training to over 35 individuals in the last 12 months with more courses to follow in the new year. The organisation is also a supporter of the charity Mates In Mind, which provides clear information to employers on the support and guidance available on mental health and wellbeing. 06-15.qxp_Layout 1 31/10/2022 10:37 Page 9PROPERTY NEWS BDO moves into prominent office location to cement commitment to East Midlands market Accountancy and business advisory firm BDO LLP has moved into a prominent office building in the centre of Nottingham, cementing its commitment to the East Midlands market. The circa 90-strong East Midlands team represents all key service lines across Audit, Advisory and Tax and the new location supports the continued growth strategy of BDO in the region. The new East Midlands hub – 3,500 sq ft of commercial space at Water Court on Canal Street – will see BDO join the likes of global law firm Eversheds Sutherland at the high-profile city centre location, which is in close proximity to the Broadmarsh regeneration development – a green, pedestrian-friendly public space. A comprehensive fit out of the former Victorian warehouse provides BDO with a modern, collaborative working space, consistent with the firm’s commitment to its agile working approach. Luxury Derbyshire housebuilder announces new eco development Woodall Homes has announced a gated development of nine luxury homes in Derbyshire. Nine two and three-bedroom detached bungalows will be available at the development on Newbold Road, boasting fully-fitted kitchens, luxury bathroom suites, landscaped gardens and all powered by Wondrwall, a world-leading intelligent home automation and heating system coupled with renewable energy generating solar panels and battery storage. As well as allowing users to control all aspects of the homes heating, lighting and security through the Wondrwall app, this complete home energy management system also utilises artificial intelligence and self-learning technology to adapt to the occupant’s daily routine and preferences. Automatically minimising energy bills and the environmental impact of the home by reducing demand and only using the energy that is required at its lowest possible cost and carbon intensity. David Wood, Managing Director at Woodall Homes, said: “We are delighted to announce our new development, The Shrubberies, complete with Wondrwall technology in each home. Work starts on site to provide 148 new homes in Wellingborough Work has started on national housing association Stonewater’s development of 148 new homes at Glenvale Park in Wellingborough, forming part of a larger urban extension of around 3,000 new homes to the north-west of the town. Of Stonewater’s 148 new affordable homes, 74 will be available for social and affordable rent. There will also be 35 new homes available for shared ownership, and 39 being offered through the Rent to Buy scheme, allowing customers to rent a home at 80 per cent of the market rent, whilst they save towards a deposit and after five years, buy their own home. Glenvale Park is a brand new neighbourhood for Wellingborough. It brings together six housebuilders who will each develop a parcel of land. Plans also include two new primary schools, a community hub, local shops, and green spaces for new residents and the local community. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link © stock.adobe.com/ Hoda Bogdan 06-15.qxp_Layout 1 31/10/2022 10:37 Page 10 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk COMMERCIAL PROPERTY It may be approaching the end of the year but that does not mean the property market has slowed any in the East Midlands. In Leicestershire, the city council intends to purchase the Zip Building, on Rydal Street – close to the city centre, for around £5.55m. The three- story building consists of 58 flats and bedsits which will be added to the council’s own stock of affordable housing. The purchase will be part-funded by £2.4m of cash from the sale of council properties under the Government’s Right to Buy scheme. This is the maximum allowed under the current rules. The remainder will be through permitted prudential borrowing, which is common for investments of this type, and allowable debt. Cllr Elly Cutkelvin, assistant city mayor for housing, said: “There is a desperate need for more affordable housing in the city.” Meanwhile, the University of Leicester has unveiled the city’s newest multi- million pound neighbourhood. The landmark regeneration project has seen derelict halls of residence and an open air car park transformed into a high-tech centre for teaching, working and living. At its heart is the four-storey Sir Bob Burgess Building, named after the University’s former late Vice-Chancellor, which comprises two large lecture theatres, flexible teaching spaces and a state of the art space for staff to work, meet and relax. The building is a fitting tribute to Sir Bob, who presided over one of the University’s most successful periods between 1999 and 2014. The site also includes accommodation for 1,200 students, a social hub including a food outlet and bar and a 555-space multi- storey car park. The project has also seen the sensitive refurbishment and extension of the Grade II-listed Freemen’s Cottages as the centrepiece of the scheme. Derbyshire has seen its fair share of development as well. Markham Vale is set for further expansion, with detailed plans submitted for four buildings totalling 107,250 sq ft of industrial and warehousing space. Markham Vale is a 200-acre joint venture development between property developer HBD and Derbyshire County Council. It is one of the region’s flagship industrial schemes, attracting new businesses and creating thousands of new jobs. The development plans for Plot 6 will see the construction of four new units targeting BREEAM ‘Excellent’ standards alongside dedicated parking, electric vehicle charging bays and space for bicycles. In Derby itself, a public exhibition giving an insight into the multi-million- pound restoration of Derby’s historic Market Hall is now open. The Grade II- listed building is currently being turned into an attractive retail and leisure destination, which will host a wide range of community and commercial activities once it reopens in 2024. In August, Derby City Council announced that the first November it may be, but the commercial property market has not been slowing down for Christmas, and there are big moves across Nottingham, Derby, Leicester and further afield. 16-19.qxp_Layout 1 31/10/2022 10:41 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link COMMERCIAL PROPERTY © stock.adobe.com/allouphoto phase of work to transform the Victorian building, which first opened in 1866, was complete. The market has been no less active in Nottingham, where a Castle Quarter office building was snapped up by Family owned trading company, the RO. 37 Park Row is fully let to the undoubted covenants of Nottingham City Council and Thompsons Solicitors LLP. The office building comprises 26,513 sq ft across four floors and has 21 secure car parking spaces. The property is let off a low passing rent of £17.83 per sq ft with prime rents in Nottingham having now reached £25 per sq ft. Neighbouring occupiers include KPMG, Freeths, Eversheds and RBS. The property benefits from being adjacent to Mount Street NCP multi storey car park and is in close proximity to Nottingham’s principal retail pitch providing an extensive amenity offer. Commercial property specialists NG Chartered Surveyors have scored a double deal on the same property in an off-market deal in Nottingham city centre. Acting on behalf of the 19 Á 16-19.qxp_Layout 1 31/10/2022 10:41 Page 2Armstrong house Armstrong House, Armstrong Street, Grimsby, North East Lincolnshire DN31 2QE Tel: (01472) 310301 Email: s.fisher@blmgroup.co.uk Superb Location - - Close to the ports of Grimsby & Immingham - Great motorway links - Close to the town centre Secure off street parking High speed internet availability A range of affordable office sizes 3 3 3 3 Last remaining office suites Prime location in Grimsby Offering a prime position in Grimsby, Armstrong House on Armstrong Street is ideally located. Close to the ports of Grimsby and Immingham, motorway links and the town centre, off-street parking is also available for all staff and visitors, meaning it’s convenient too. Our spacious, welcoming offices are located on the ground floor and are both secure and CCTV-monitored, giving you the ultimate peace of mind. At Armstrong House, when it comes to affordability and with a range of office sizes there are opportunities for all types of business. If you require virtual office services, prices start from just £15 per month. For more information, or to discuss your office requirements call 01472 310301. 16-19.qxp_Layout 1 31/10/2022 10:41 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link COMMERCIAL PROPERTY vendor, NG has sold 3-7 Middle Pavement in Nottingham to new owner, DGH of FHP, while at the same time acting on behalf of the new owner to lease the ground floor of the same building to Mint Duck Clothing. 3-7 Middle Pavement is made up of the former Whistles clothing outlet on the ground floor, which will now be occupied by new tenant Mint Duck. Meanwhile, the upper floors consist of office space. The whole building totals some 5,880 sq ft. In addition, plans to transform a former lawn bowls club on Addison Street, Nottingham, have been approved. The proposals, from Unitech Plus Ltd, would see the construction of 29 one, two, and three-bed apartments. The development would predominantly form three buildings which would front Addison Street. The original three storey element of the pavilion will be retained and converted and two storey extensions added to the east and west. It is proposed that the area that currently makes up the bowling green would be used as a communal garden area for future residents. © stock.adobe.com/Duncan 16-19.qxp_Layout 1 31/10/2022 10:41 Page 4Next >