Businesses optimistic on revenues but fear ‘missing out’ on investment zones
Businesses in the region are increasingly optimistic about their revenues and the economy in the second half but many executives fear they are missing out by the absence of any of the government’s investment zones in the East of England. According to Grant Thornton’s latest business outlook tracker, firms’ optimism is growing on their revenues (80 per cent) and the UK economy (84 per cent) over the next six months. Whilst investment zones – announced in last autumn’s mini-Budget – are seen as effective in encouraging levelling up, boosting skills and encouraging firms to stay within a region, over three quarters of business leaders in the East believe that there should be more zones located in other UK areas. James Brown, practice leader for Grant Thornton UK in the East of England, said: “It was a disappointment for our region when the East of England was not among the preferred locations for the government’s investment zone programme earlier this year. Our survey shows that businesses in the region are well aware of the benefits investment zones could bring – and how they could be key to unlocking the East of England’s full economic potential.” He added: “…While there’s no denying the economic strength of Cambridge, targeted support for our other innovation hotspots such as Norwich, Ipswich or Stevenage would allow our region to kick on and move closer to the economic performance of the South East.” He said Peterborough would also benefit from being part of an investment zone.
Essex-based labelling business sold to international group
Braintree-based Compliance Labelling Solutions has been sold to an international group in a deal where shareholders in the Essex-based business were advised by Forward Corporate Finance. CLS is a BRC and ISO-certified label and tag manufacturer with over 40 years’ experience serving clients across a range of different sectors. The firm has been acquired by Asteria, an international group that produces printed packaging materials such as labels, flexible packaging, and boxes. It has grown rapidly and currently has 33 production sites across Europe. CLS is Asteria’s third acquisition in the UK, following CS Labels and Berkshire Labels and the deal will allow it to consolidate its footprint both in the UK and in the food and beverage sector. After acquiring the company through an MBO in 2015, the shareholders of CLS were looking for the right partner to take the business forward, while providing stability for its employees and customers. CLS will continue to be led by its current management team, Matt Day and Geoff Nunn. “Right from developing a list of buyers, to preparing the information, leading the negotiations, and managing due diligence, Forward provided us with guidance and hands on support throughout,” said Matthew Day, director, CLS.
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Cambridge-based SME accountants acquired by national group
Cambridge-based Tyrrell Accountants has been acquired by Xeinadin Group, a national professional services groups. Founded by Craig Tyrrell in 1994, Tyrrell Accountants is a firm of business consultants and accountants with a team of 12 and which is focused on services for SMEs. The deal marks the fifth acquisition this year by Xeinadin Group, which has over 130 locations across the UK and Ireland. Derry Crowley, CEO, Xeinadin Group, said:“The team at Tyrrell are a great fit for Xeinadin, with a laser-eyed focus on helping SMEs embrace new technology to give them greater control over their business and provide the best, most informed advice.”
Craig Tyrrell said: “…The move will allow us to retain our identity and the invaluable relationships we have built over many years, but also enable us to confidently offer enhanced services and support. The synergies are clear in terms of our approach to digital and how we want to be seen by our clients, and I believe this is an important and highly positive step forward for the firm.”
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Inflation and interest rate concerns knock CFOs’ confidence
Concerns over inflation and rising interest rates are behind a dip in confidence among the finance leaders of the UK’s largest firms in the second quarter, according to Deloitte’s UK chief financial officer survey. A net -10 per cent of chief financial officers are more optimistic about their firm’s financial prospects now compared to three months ago, down from a net 25 per cent in the first quarter. It says CFOs are responding with a sharper focus on cost reduction and cash control, as the cost of credit hits a 14-year high. The survey also points to early signs of cooling in the labour market, with an easing in recruitment difficulties and a slowdown in wage growth expected. Paul Schofield, senior partner of Deloitte in Cambridge, said: “The Q2 CFO survey results reflect what we are hearing from many CFOs in the East of England. They are particularly concerned around the impacts of inflation, input prices and consumer spending. Cost reduction is a core focus now, although business confidence seems to vary by sector.”
Strong first half in the region for growth capital investor
Growth capital investor BGF has reported a strong first half in the Central and Eastern regions, investing £38 million across a range of sectors including technology, life sciences, healthcare and digital transformation. In the first half, BGF announced early stage deals in health tech company Tidal Sense, semiconductor business Forefront RF and biotech company Maxxion Therapeutics. BGF’s Cambridge office is home to growth and early stage teams. Tim Rea, head of early stage investments at BGF, said: “… The central and eastern areas of England are a hotbed of entrepreneurial innovation and talent and we’re proud to be partnering with so many ground-breaking businesses, providing them with the capital and strategic support they need to scale and compete on a global stage.”
Separately, the UK reported a 16 per cent rise in deal volumes for the first half of this year – totalling 160 deals and a 10-year high – but deal value more than halved to £4.7bn, from £11.5bn in the period last year, according to a report from EY. Claire Trachet of business advisory firm, Trachet, is expecting a significant increase in M&A deals in the fourth quarter of 2023 as inflationary pressures decrease over the next 6-12 months. She highlights the need for founders to get deal-ready before the end of the year to secure a potential M&A deal once investors decide to begin deploying capital on a larger scale.
Region’s commercial property sector deemed a ‘sustainability powerhouse’
The East of England is a ‘sustainability powerhouse’ in the commercial property sector – second only to Yorkshire – according todata from EG. It shows that 65 per cent of listed deals in the region last year featured commercial premises with high EPC A or B ratings, reflecting the growing emphasis on energy efficient space in the region. Only 12 per cent of listed properties in the East fell short of an EPC rating of C – the minimum needed by 2027. Anna Reed, data director at EG, said: “There are significant opportunities for investors and developers to benefit from bringing premises up to scratch and interest from the likes of British Land [developer of the Cambridge Biomedical Campus] which makes the East of England an area to be keenly watched throughout 2023 and 2024.”
Consultancy secures sustainability accreditation at creative centre
Colchester-based property and construction consultancy Ingleton Wood has achieved an official ‘Excellent’ sustainability accreditation for Roundhouse Works, a new £8 million creative centre for young people at the venue in Camden, north London. The new state-of-the-art facility in the Roundhouse site will increase capacity to support 15,000 young people annually in the creative sector. Ingleton Wood was appointed to provide BREEAM (Building Research Establishment Environmental Assessment Method) sustainability services, as well as building services design. It achieved the BREEAM ‘Excellent’ accreditation following the design and installation of solar panels, electric vehicle charging points, LED lighting, automatic lighting controls, and other energy efficiency elements. Wes Henderson, director of engineering at Ingleton Wood, said: “We are helping to pioneer sustainable developments across the UK and not only will generations of young people benefit from new skills and confidence in this amazing creative space, but they will do so in a building that has sustainability at its heart….Our collaborative design teams worked incredibly hard to ensure everything from conception to completion was meticulously implemented within the timescales and budget.”
Photo: Sir Keir Starmer, the local MP for Holborn & St Pancras, officially opened the Roundhouse Works and took a tour of the site and met young people who will benefit from the facility.
Home furnishings group invests in new website
Glasswells Home Furnishings Stores has launched a new and improved website offering a wide variety of high-quality furnishings, home accessories and services to its customers, presenting the same efficient customer service in-store and online. Customers can book free measure for curtains, blinds and flooring online, retrieve quotes and make use of the free click and collect service. Managing director Paul Glasswell said: “You can buy furniture sets and beds online, however many still prefer the ‘try before you buy’ philosophy. The main objective was to create a website that showcased our huge range of home furnishings to encourage customers to come and visit one of our wonderful stores. For those wanting to shop online, the new site is much faster and easy-to-shop and we are pleased with the end result. This investment is one of many we have made to provide the very best shopping experience to our special customers and we look forward to what is next for Glasswells.”
