Firms delay green measures to focus on expansion, debt and digital projects
Many mid-sized firms in East Anglia are postponing green measures and are prioritising seeking funding to finance expansion, reduce debt and invest in digital projects over 2023, according to a survey by advisory firm BDO. The survey said sustainability isn’t a commercial focus for the region and the current backdrop has put a pause on those improving green credentials. Half of mid-sized businesses in East Anglia are delaying measures to address climate change and just 10 per cent are set to introduce enhanced ESG measures. Meanwhile, less than a fifth are hoping for government incentives to improve energy efficiency. Peter Harrup, head of BDO in East Anglia, said: “Businesses are more optimistic going into 2023 than they were this time last year and almost half (44%) expect inflationary pressures to ease in the second half of the year. This sets a positive tone, but some business priorities have been delayed because of the squeeze on costs.” Firms are also calling for more government support, particularly new trade agreements and new policies on recruitment and boosting skills. The survey said recruitment has been delayed in various areas such as digital supply chain and risk management talent and nearly a quarter of firms were postponing new measures to improve cyber security.
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Cambridge office and lab rents set to move higher despite lower take-up of space
The total take-up of office and lab space in Cambridge in 2022 fell by 35 per cent although supply remains tight and headline rents are likely to exceed £60 per sq ft for prime city centre space, according to Savills. Rents for fitted labs are also set to top 60 per sq ft on established science parks. The agent says take-up will remained constrained for at least another 12 months as Cambridge will not see any significant development until 2024, except for 88,000 sq ft of lab space at Unity Campus this year. Uncertainty over construction costs and investment yields could mean further delays into 2025. Demand is expectedto remain consistent with 2022 which saw around 1.76 million sq ft of requirements. Mark Taylor, head of commercial at Savills Cambridge, said: “2022 did see a drop in activity across Cambridge, but this can be attributed to the ongoing lack of supply. Occupationally, we are still seeing the global trend of a flight to quality, but with limited availability of premium space requirements are being left unsatisfied and in some cases businesses have had to compromise by taking lower grade stock.” Office take-up in Cambridge hit 185,564 sq ft in the fourth quarter, of which 151,00 sq ft was office space and just under 15,000 sq ft labs.
Photo: The Works building at Unity Campus, Cambridge developed by The Howard Group and now fully-let.
One thousand jobs on offer at Stansted Airport
London Stansted and operators at the airport are looking to recruit 1,000 new employees to ahead of what is expected to be a busy summer season. A jobs fair at the Radisson Blu Hotel on February 7 will showcase almost 200 different roles in areas such as airport security, customer service, engineering, and retail. Firms recruiting include Ryanair, Titan Airways, Border Force, Jet2.com, World Duty Free, HMS Host, National Express, Harrods Aviation, and the London Stansted Airport itself. Passenger number at Stansted have topped 90 per cent of 2019 levels by summer 2022 and into this winter and are expected to grow further through this year. Nathan Mullane, London Stansted’s employment & skills manager, said: “After a very successful recruitment campaign which we kicked-off early last year to get Stansted ready for summer 2022, we’re now looking forward to this summer, which is expected to be even busier as passenger number continue to increase.
Record year for Suffolk company start-ups
More new businesses were established in Suffolk during 2022 than in any previous year. A total of 6,749 new formations were registered in the county last year, an increase of 24 per cent on 2021’s total of 5,445 and which takes the number of registered companies in Suffolk to an all-time high of 45,867. The figures are taken from the Inform Direct Review of Company Formations, using data from Companies House and the ONS. Forest Heath saw the highest number of new businesses (1,886), followed by Ipswich (1,836) and Suffolk Coastal (695). John Korchak (photo, right), managing director at Inform Direct, said: “It is great that Suffolk can celebrate a record year for the number of new businesses established. The last few years have been turbulent for businesses, with inflation and a cautious economic outlook following the impact of the pandemic. However, in these figures we see evidence of the ambition, creativity and resilience of entrepreneurs in Suffolk, as well as the benefits from the county’s support for a range of enterprises. This positivity is mirrored in the overall picture for the UK which saw a record number of new companies established during 2022, exceeding 800,000 for the very first time.” For a more detailed picture of company formations in Suffolk visit: www.informdirect.co.uk/company-formations-2022/suffolk/ and see the full report at www.informdirect.co.uk/company-formations-2022/
Farmland values forecast to keep climbing after year of strong growth
Farmland values in the East of England are set to continue to grow steadily over the next five years after rising by 15 per cent in the past year, according to Savills. The agent predicts that farmland will remain in scarce supply and over the next five years prime arable land values will increase by an average of 2.5 per cent pa over inflation, while poorer quality pasture will climb by an average of six per cent. Land types in highest demand such as poorer quality grazing land popular with environmental investors and top quality Grade I farmland are expected to be the best-performers. Farmland in the East of England – including arable and pasture – now averages £9,679 an acre, the highest of any region and up 15.1 per cent on a year ago. Oliver Carr of Savills’ rural agency team said: “…we do expect more farmland to come to market this year – whether it be investors looking to cash out and release capital, farmers feeling the squeeze on incomes or those looking to retire. However, even then, it’s unlikely demand will be satisfied.” In all 21,419 acres of farmland were publicly marketed in the East last year – more than in any other region and a two thirds increase on the previous year. Key deals agreed by Savills in the East last year included the sale of the Exning Estate near Newmarket (photo, right), the Coldham Estate in Cambs, the Gawdy Hall Estate in Norfolk, Rectory Farm near Framlingham and the Hexton Estate in Herts.
Over 100 attend agriculture sector conference
An annual farming conference on navigating change in the sector delivered by professional services firm Scrutton Bland attracted over 100 attendees last week. Nick Banks (photo, right), business advisory partner and lead partner for the firm’s farm and estates advisory team, who led the online event, said: “The theme of the conference this year was Navigating Change – Seeking Opportunity, which I think neatly encapsulates the way that we need to think about our industry post-Brexit, with subsidy reductions and transition to ELMs, extreme weather, bird flu, the conflict in Ukraine and rising inflation to deal with”. Expert speakers included Kerriann McLackland from Environment Bank who explained Biodiversity Net Gains and the risks and rewards for farmers and landowners who participate in habitat banks. Gavin Birchall, tax advisory partner at Scrutton Bland, explained some of the key tax considerations for farmers and landowners thinking about embarking on Biodiversity Net Gain Agreements, Woodland Carbon Units, and coming changes to Basis Period Reform which will affect any business with a tax year-end that isn’t the same as the government’s tax year (6 April – 5 April). Scrutton Bland made a donation to the rural mental health charity YANA (You Are Not Alone) which covered the cost of breakfasts which delegates would have had at an in-person event.
Experienced solicitor appointed to private client advisory team
Law firm Birketts has appointed experienced solicitor Alex Hunt (right) to its cross-office international private client advisory team as a legal director based in the firm’s Cambridge office. He qualified in 2011 and has spent 12 years advising clients in domestic and international tax planning and wealth management, onshore and offshore trusts both in London and Cambridge. He will focus on his chosen area of practice, international private client, adding senior support and expertise to team leader Deborah Carrivick. Alex Hunt has been named as “one to watch” in the Private Client Global Elite Directory as well as a “rising star” in the Legal 500 rankings and an “associate to watch” in Chambers High Net Worth Guide. Deborah Carrivick, partner and head of Birketts’ international private client advisory team, said: “Alex’s appointment adds further experience and quality to the team, which will help us to continue to grow the practice in Cambridge, London and overseas. The future is very exciting!”
Strong start to 2023 at resort after record year
Wyboston Lakes Resort, west of Cambridge has made an outstanding start to 2023 following a year of record results in 2022. The venue has contracted bookings for more than 50 per cent of its 2023 budget and greater than all of 2018. Bookings and prospects for 2024 and 2025 are also very strong, helped by high levels of repeat business and guest satisfaction. Last year, the resort’s Woodlands Event Centre and Willows Training Centre generated their best conference and training performances with sales up 49 per cent on 2019 and up 79 per cent on 2018. Profit was also well ahead of the 2019 total, despite a slow start to 2022 when Covid regulations still applied. Meanwhile, its Landing Pad brand providing flexible office space performed well, with serviced office occupancy at more than 95 per cent and Branded Space revenues increasing. These are expected to grow strongly again in 2023. Wyboston Venue Management, a new management consultancy arm, also got off to a good start and further growth is expected in 2023. Managing director Steve Jones (photo, right) said: “We started turning this business around in 2019, first gaining clarity on the direction we were taking, then we set about delivering on this with ambitious plans to invest in our assets and a laser focus on the well-being and welfare of our team….Looking at 2023 and beyond is an exciting prospect. We have further plans for our facilities and plan to extend the support we have been offering others via our consultancy and management contract business ‘Wyboston Venue Management’; and, as always, it’s inspiring to see what new levels our team can reach, as a collective and as individuals.”
Suffolk construction firm secures place on £1 billion national framework
Suffolk construction firm SHE French has secured a place on a £1 billion national framework to deliver projects across the public sector. The Ipswich-based firm is among 94 companies included in Pagabo’s Medium Works Framework to deliver projects worth from £50k to£10 million. The company was also included on the initial framework launched in 2019, before being named in the second instalment launched this month. Simon Girling, director at SEH French, said: “The new year is off to a fantastic start already and we look forward to seeing the opportunities this news brings.” Pagabo helps public sector organisations to connect with suppliers to deliver a full range of works, services and goods through framework agreements. The Medium Works Framework will run for four years until 2027. SEH French also works on frameworks led by Suffolk County Council, Essex County Council and Wellcome Genome Campus.
