Firms’ growth plans hampered by struggle to raise funds
Difficulties in raising funds is hampering growth plans at businesses in the region and a third of firms are either making redundancies or scaling back operations, according to BDO’s bi-monthly survey of mid-market companies. Some 88 percent of companies admit that difficulty in accessing capital is impacting their business whilst inflation is continuing to take a heavy toll on firms. More than a quarter of firms are unable to increase salaries as they’ve done in the past to cover promotions and annual reviews and 15 per cent admit that a shortage of funding means they’re struggling to finance expansion plans. Higher overheads and increased operating costs are the prime concern at more than a third of firms in the region and improving cash flow and generating new sources of revenue is a priority for many. Peter Harrup, regional managing partner at BDO in East Anglia, said: “As a result of the tough economic conditions that continue to hamper regional businesses, companies are facing a real and immediate need to raise funds within the next 12 months, in order to kick-start their growth plans.” He added: “Against a challenging backdrop, East Anglia businesses are having to explore every option when it comes to raising additional finance, with many struggling to access the capital they need. For nearly a third, the equity capital markets are the most appealing source of funding, with bank loans and venture capital also high up on the list.”
Major Suffolk food & drink producers highlight need for new long term water supplies
A number of major Suffolk food and drink producers have warned that if additional water supplies are not secured over the long-term they may have to consider relocating some or all of their operations to other parts of the country. At a recent Suffolk ‘business water summit’ hosted by Suffolk Chamber of Commerce and involving Anglian Water, Essex & Suffolk Water and the Environment Agency, manufacturers highlighted the challenges they are facing in delivering growth plans whilst also being significant users of water. They included large employers such as Adnams, Cranswick Country Foods, Euroapi, Greene King, Konings and Poundfield Products. The meeting heard of a company outside Suffolk which had plans for a major expansion only to find that it could not go ahead as no new abstraction licences are currently being granted. “It was just this type of scenario that we want to avoid in Suffolk” said Paul Simon, Suffolk Chamber’s head of public affairs. “The water summit was a good first step in ensuring that the realities facing the water and manufacturing sectors are mutually understood in order to improve how we can all adapt to the increasing scarcity of water.” The key message from the summit was: “Don’t stifle our growth and job creation plans – and help us better adapt to climate change.” All the organisations involved in the summit emphasised that they were looking to work better with businesses to help reduce water usage, in line with a tighter regime being put in place by the Environment Agency.
Photo: The Suffolk Chamber water summit. Credit: Suffolk Chamber of Commerce
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Sharp rise in business start-ups shows there is “still scope for growth”
Business start-ups in East Anglia rose in May at the fastest rate of any UK region outside London. According to the Eastern branch of insolvency and restructuring trade body R3, new start-ups in the region rose by 19 per cent to 8471 in May, up from 7094 in April. Meanwhile the number of East Anglian companies with late payments on their books fell over the same period. R3 Eastern chair Alistair Bacon, founding principal at AMB Law, said: “These are encouraging statistics for our region and show that there is still scope for growth in the current environment. The fall in businesses with late payments is further positive news, particularly as the local economy is still facing the challenges of stubbornly high inflation, rising costs of materials and wages as well as a squeeze on consumer spending.”
Norfolk garden centre for sale at £1.45 million plus
Peter Beales Garden Centre in Attleborough in Norfolk and an online rose business have been put up for sale at a guide price of £1,450,000 plus stock. The garden centre and online platform is an independently-run business which trades from a 10-acre freehold site. It has seen significant recent renovations, including a large extension to its Rosarium Restaurant. The sale also includes a detached bungalow on the site. Tom Glanvill, director in Christie & Co’s garden centre team, who is handling the sale, said: “With a combined turnover in excess of £2,300,000 per annum and huge scope for further growth, this business is one of the most exciting opportunities to come to the market in recent years.”
Small firms gather at House of Lords to mark completion of mentoring course
Small companies recently came together at the House of Lords to mark their completion of a course designed to help grow their business with advice and mentoring from a Cambs-based partnership. A six-week Small & Mighty Enterprise Programme – run by Small Business Britain in partnership with ARU Peterborough and small business platform Xero – aims to boost the growth prospects of the UK’s 5.2 million micro businesses that aren’t suited to or eligible for other forms of support. More than 700 businesses have taken part in the course since September; many of which attended the Westminster event. ARU Peterborough is a partnership between Anglia Ruskin University, Peterborough City Council and the Cambridgeshire and Peterborough Combined Authority. The next Small & Mighty Enterprise Programme begins next September. Dr Tom Williamson, assistant principal at ARU Peterborough, said: “It was a privilege to join Small Business Britain to celebrate our partnership and the successful completion of two cohorts of the Small & Mighty Enterprise Programme.”
Separately, nine companies across Norfolk, Suffolk and Essex are taking part in a ‘technology accelerator’ programme to pioneer new offshore renewable products and services. Launching in Norwich this week, it is the first time the Offshore Renewable Energy Catapult has run its launch academy programme in the East of England – one of the country’s largest offshore renewable energy hubs. Imogen Stevenson, innovation manager at ORE Catapult, said:“It’s fantastic to see the huge amount of talent and innovation emerging from the East of England, which could play a vital role in supporting the significant offshore wind industry in the region and beyond.
Photo (l-r): At the House of Lords – Dr Tom Williamson, Michelle Ovens, Small Business Britain; Kevin Hollinrake MP, minister for enterprise, markets and small business; and Alexander von Schirmeister, Xero.
Expansion into the Midlands at property and construction consultancy
Property and construction consultancy Ingleton Wood is expanding in the Midlands with a new office in Nottingham, adding to its existing offices in Cambridge, Colchester, Norwich, Oxford, London and Billericay. The Nottingham office will be the practice’s seventh and will bolster its geographic reach from the East of England, South East and London. It will initially focus on the public and secure infrastructure sectors. Ingleton Wood, has a workforce of around 250 and trusted relationships with public sector departments and contractors, both in the UK and US. Secure infrastructure sector expert Ben Bettle has been appointed senior associate to head up and develop the practice’s multi-disciplinary services and will bring his own dedicated team of five infrastructure specialists to the new Nottingham office. He previously worked at Nottingham-based architectural firm CBP Architects. Ben Bettle said: “Ingleton Wood has developed a strong presence in the public sector and secure infrastructure sector and has a reputation for really taking care of its clients, so being offered the chance to join and help grow a company that shares the same values and goals as myself was too good to turn down.”
Photo: From left, back row Ben Bettle, Jonathan Fairbairn, Darren Fowler, Nicola Worth; front row Heather Wilcox, David Cresswell, Dean Jeffries.
Resort shortlisted for sustainability initiatives award at industry event
Wyboston Lakes Resort, west of Cambridge, has been named as a finalist in the best sustainable initiative category at the Meetings & Incentive Travel Awards, the oldest established awards in the industry. The finalists are chosen based on the nominations of readers of M&IT magazine and verified by a consultative committee. Louisa Watson, director of marketing, said: “This is wonderful testimony to continuing commitment of our team to driving innovations and implementing our policy of ‘More Sustainable, No Apology’ wholeheartedly.” In June 2022 the resort introduced Room2Grow. Since then, more than 20,000 eco-conscious guests staying more than one night at Wyboston Lakes Resort have chosen to have a tree planted on the resort instead of having their room cleaned. This saves energy used on cleaning and laundry and the resort’s team have been involved in planting the trees. Last year the resort also launched a four-year Green Energy Roadmap as the foundation for a plan to become self-sufficient by producing its own green energy using natural resources at the resort.
Photo: Wyboston Lakes Resort Event Centre Rosewood
