Sharp rise in firms facing ‘significant financial distress'
The numbers of Cambridge firms in 'significant' financial distress jumped by 22 per cent in the second quarter over the period last year with some 1 400 businesses in the city facing some level of distress, according to a red flat alert from Begbies Traynor. Across Cambs, some 3,819 firms reported ‘significant' financial distress, up 30 per cent on the period last year. Firms in the construction, automotive and food & beverage sector saw some of the sharpest rises. Nationally, the numbers in significant financial distress rose 25 per cent to 329,834 firms, the sharpest rise for three years. Mary Currie-Smith, partner at Begbies Traynor's Cambridge office, said: “The rising levels of distress in the property and construction sectors indicate that these sectors are lacking strong foundations as they face headwinds from Brexit, the rising cost of imported goods and skills shortages which will drive further wage pressures. As we enter the second half of 2017, it is worrying that so many businesses and particularly SMEs are facing such high levels of financial distress."...Read more
Cambridge office space in demand although take-up below forecast
Demand for Grade A offices and laboratories in Cambridge remains strong with new space being snapped up quickly although take-up in the first half was below forecast levels, according to a survey from Bidwells. The consultancy saya that several new buildings put on the market recently have been snapped up quickly with the majority of the new space going under offer. Take-up was 274,600 sq ft across the office and laboratories market, with offices accounting for 79 per cent of total activity completing in the first half. Supply increased slightly but remains tight and more than 1.4m sq ft of requirements are still not met. Will Heigham, head of office agency at Bidwells, said: “Given the quick letting of new space when released onto the market, we expect the supply conditions in both the office and labs markets to tighten in the second half of the year, as the market remains active.” Prime office rents now stand at £38 per sq ft and prime open plan laboratory rents at £33.50 per sq ft; both new highs for Cambridge.
Logisitics firms set to drive strong demand for warehouses into 2018
Buoyant demand for warehouse distribution and depot-style ‘shed’ space looks set to stretch well into 2018 and beyond, says Barker Storey Matthews. The property agency has seen no let-up in occupier demand for modern industrial units, particularly from logistics companies and online suppliers seeking sites close to cities and towns and key road interchanges. The sector saw a lag following the financial crisis but Steve Hawkins, managing director, Barker Storey Matthews, said: "... supply is now coming on-stream to meet demand and it’s the biggest sheds and warehouses which are attracting the interest. There are a number of substantial warehouse developments available in our region including Gateway Peterborough, Alconbury Enterprise Campus and Suffolk Business Park. These three schemes offer brand new, high quality buildings meeting the criteria of occupiers who are looking for accommodation to suit immediate demand and serve future requirements in this growing sector."
Separately, Bidwells has advised Barwood Capital and its development partner Goya Developments on the forward sale of Buckingway Business Park (right) to M&G Real Estate for £22 million. The 155,000 sq ft asset is the largest speculative warehouse development built in Cambridge for 15 years and has changed hands for £22m. Bidwells’ Saul Western said: “To fund a speculative scheme highlights the level of investor demand for modern industrial investments in such a sought after location which has seen so little new space delivered in the last few years.” Buckingway's four warehouse units range from 25-50, 000 sq ft and the scheme is next to Cambridge Services on the A14 and should provide a boost to an area where there is a shortage of modern industrial units.
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New partner buys into Suffolk dental practice
A new partner at The Abbey Dental Practice in Suffolk, Dr Fredrik Andersson, has acquired shares in the practice, supported by funding from Royal Bank of Scotland. He has worked as an associate at the practice and the acquisition follows the retirement of Dr Stephen Little. With clinics at Angel Hill in Bury St Edmunds and an outlet in Woolpit, The Abbey Dental Practice is a mainly private practice offering dentistry services and a wide variety of cosmetic treatments as well as a small number of children on the NHS. Dr Andersson said: "...having worked here for the last seven years I knew that it was somewhere I wanted to make my position more permanent. I am now in the process of updating my surgery and will be fully refurbishing it with new furniture and the latest equipment. I am looking forward to meeting all of my new customers and helping to continue to run the practice to the high standard it already achieves."
Photo: Tracy Westly, senior relationship manager, Royal Bank of Scotland with Dr Frederik Andersson.
Pet supplies firm on acquisition trail
Jo Wise, managing director of Royston-based Monkfield Nutrition has acquired ‘Arcadia Reptile’, the reptile and bird elements of Arcadia Products Plc. The acquisition in March adds a market-leading brand and cements Monkfield Nutrition’s position as a one-stop-shop for reptile pet supplies. Monkfield Nutrition acquired the stock,fixed assets and staff of Arcadia’s reptile retail arm in addition to rights to the whole of the Arcadia pet product ranges. “The addition of ‘Arcadia Reptile’ including the full bird and zoological range adds an exciting and purposeful new dimension into the Monkfield business. We as a team will carry on with the excellent work and brand ethics of ‘Arcadia Reptile’ and are confident that the brand will continue to show good growth both in the UK and worldwide,” said Jo Wise.
Lake Falconer, partner at PEMCF, who advised on the deal, said: "This acquisition adds a market leading range of branded products to the Monkfield offering and further confirms their number one position in the reptile pet market." Legal advice was provided by Katherine Brown of Howes Percival LLP.
New licensing deal for Cambridge firm
Cambridge-based Isogenica, a leader in synthetic antibody libraries, has agreed a new licensing deal with Takeda Pharmaceutical Company. Adam Collier, Isogenica’s director of commercial development, said: “This is another very significant deal for Isogenica, which again validates and endorses the company’s family of synthetic camelid single-domain antibody (VHH) libraries as an excellent starting point for therapeutic antibody discovery.We look forward to enabling existing and new partners to find novel, developable therapeutic candidates quickly and efficiently”. Isogenica has granted Takeda licences to its family of llamdA™ VHH single-domain antibody libraries for the discovery, development and commercialisation of therapeutic products derived from these libraries. Isogenica is entitled to an upfront and annual licence payments. If antibodies are advanced into development, Isogenica is entitled to further licence fees, milestones and royalties.
Council signs loan facility for infrastructure at business park
The St Edmundsbury Borough Council has signed a £3 million loan facility agreement with Jaynic Suffolk Park the promoter of the 114-acre commercial scheme in Bury St Edmunds alongside the A14. It means Jaynic can borrow up to £3m towards infrastructure costs to attract business. Jaynic can use the loan facility for up to two years, repayable in full, towards the main estate road together with two spur roads, drainage, distribution of mains services, internet provision and landscaping. The loan agreement is part of a joint public and private sector initiative to boost the local economy. Simon Wilson, project director of Jaynic, said:“The loan facility together with the monies realised from selling 10 acres to Treatt PLC, means that the infrastructure for the whole site, covering the current and all future phases is now fully funded.”
Bank manager joins Colchester business agency board
Royal Bank of Scotland bank manager, James Dimbleby has joined the board at the Colchester Business Enterprise Agency (Colbea), supporting the delivery of services to new and young businesses in the Colchester area. He said: “We know that Colchester has a vibrant business community, with businesses starting and growing at a rapid rate. We aim to shape our service to enable these busy professionals, starting with a dedicated business team in-branch, local telephone support, and a 24-hour support service. It’s a huge frustration for business owners not to be able to access banking support when they need it, and we’re proud of the personal service we can provide.”
Work opportunities for local students at Ipswich-based manufacturer
Ransomes Jacobsen, the Ipswich-based turf equipment manufacturer, recently hosted 15 pupils from local secondary schools for a week of work experience. After an overview of the company’s history back to 1789 and a tour of its manufacturing facility, the students worked in departments including operations, engineering, marketing, IT, customer care, sales and HR to learn the processes involved in running a global business. Senior director Alan Prickett said: “Ransomes Jacobsen has been a pillar of the Ipswich business community for over 200 years….It is important to us to continue to serve the community and provide employment and educational opportunities to as many people as we possibly can. The feedback from students and staff members has been very encouraging.” The company has been approached by two further local secondary schools to host work experience for students in 2018.
Separately, Ransomes Jacobsen was presented with a Gold Medal Award at the 2017 RoSPA Health and Safety Awards at ExCel in June. It has now won five consecutive golds.
