Region’s mid-market businesses confident they can ‘weather economic downturn’
Mid-market businesses are confident they can weather the economic downturn as optimism in the East of England has rebounded across all indicators in Grant Thornton UK’s latest business outlook tracker. Since October, revenue growth expectations have risen +37 percentage points, economic optimism has risen +35pp and profit growth expectations are up +17pp. Optimism on firms’ funding position has also improved and over half of businesses are confident they have enough working capital to manage a recession for six months are more. Most firms are planning to increase pay in line with or above inflation and are revieing employee benefits. Most mid-market firms are also reducing their reliance on people with more use of automation and digital. The top concerns are winter blackouts, geopolitical tensions and rising taxes. James Brown, partner and practice leader at Grant Thornton UK in the East of England, said: “Having seen first-hand how our region responded to the challenges of recent years with determination, flexibility, enterprise and innovation, I am confident that businesses in the East of England will find a way to survive and thrive during the months ahead. Given the encouragingly high optimism levels, it would seem that the local market shares this confidence.”
More firms planning to recruit and invest in training
More firms in the region are planning to recruit over the year ahead; the net balance of businesses in the East expecting to increase staff levels rose to 18 per cent in January, up ten points on December, according to a business barometer from Lloyds Bank Commercial Banking. Ahead of National Apprenticeship Week, some 41 per cent of firms in the East also plan to invest in training and development. Dene Jones, regional director for the East of England at Lloyds Bank Commercial Banking, said: “After the busy festive period, early January tends to see businesses regrouping and shaping plans for the year ahead and it’s clear that talent is top of our region’s firms’ minds.” Meanwhile, the barometer showed UK business confidence reached a six-month high in January at 22 per cent with twice as many businesses optimistic about the economy than in December. In the East of England, firms maintained their optimism on the national economy but were less confident on their own prospects, taking overall confidence in the region down slightly by 3 per cent to 15 per cent.
Growth capital group plans £300 million investment in businesses in the region
Growth investor BGF is planning to invest £300 million in early-stage and fast growth businesses across the Central and Eastern areas of England over the next five years. Its three investors Mark Nunny, Nathan Heath and Elena Kovalikhina, based in Cambridge, will be targeting investments in scaleups throughout Beds, Bucks, Herts, Northants and across East Anglia. Mark Nunny (centre, photo, with team) who leads the BGF Central and East growth team, said: “Cambridge has become a hub of activity for BGF in both the growth and early-stage markets. As the UK’s most active growth capital investor, we are unique in our approach as a provider of long-term capital and minority partnerships. This enables businesses to seek the funding they need to scale while also remaining in control. Since 2011, BGF has already invested close to £240 million in the region and we’re looking to significantly boost this figure in the months and years to come.” BGF makes initial investments of £1-20 million for a minority equity stake, partnering with founders and management teams to help them realise growth strategies. It recently completed an exit of Cornwall Insight, a Norwich-based provider of information to the energy sector.
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Profit warnings double at quoted companies in the region
The number of profit warnings by publicly quoted companies in the East of England doubled last year to 12, according to EY-Parthenon’s Profit Warnings report. Four quoted firms in the region issued profit warnings in the fourth quarter. Nationally, the number of profit warnings issued by UK-listed companies during 2022 increased by 50 per cent to 305, with around half due to rising costs. Retailers issued the highest number of warnings, followed by travel & leisure companies and software and computer services firms. Stuart Wilkinson, EY’s managing partner for the East of England, said:“Resilience will be key for businesses in 2023 as the cost pressures pass further along the supply chain, impacting new sectors and industries. Forecasting and planning for the year ahead will be challenging but remain vital. Thorough analysis could lead to the identification of potential opportunities, providing new ways for businesses to adapt and meet rising pressures….”
Foodservice supplier sold to acquisitive group
Suffolk-based Thomas Ridley Foodservice has been sold to Bidcorp UK, an acquisitive group which earlier this month bought another business in the sector, Harvest Fine Foods. BDO’s corporate finance team advised the directors and shareholders of Bury-based Thomas Ridley Foodservice on the sale. Founded in 1808, Thomas Ridley Foodservice has over 2, 000 customers across a wide range of sectors. As part of the deal, Thomas Ridley Foodservice will join the Caterfood Buying Group – Bidcorp UK’s growing network of businesses which has become one of the main buying groups in the foodservice wholesale sector. John Gethen, corporate finance director, M&A at BDO, said: “Thomas Ridley Foodservice is a longstanding, independently owned business, which is a real success story in the region….This is an exciting deal for the regional M&A market and demonstrates the strength and depth of high quality businesses that continue to attract the attention of national and international players.”
Justin Godfrey, managing director of Thomas Ridley, said: “The business has been run by my family for over 200 years, so it was important that we joined a company that shares the same customer focussed DNA; making food delivery one less thing to worry about.”
Long term plan agreed to develop Peterborough business park
A long term agreement to develop a business park on a 127 acre site at Red Brick Farm in Peterborough has been made by Trebor Developments and Hillwood together with landowner the Church Commissioners for England. The scheme, ‘Flagship Park’ has outline planning permission for 1.36 million sq ft of employment space. Infrastructure and phase one works will start this year on industrial space in units ranging from 20,000- 800,000 sq ft units, to be built either speculatively or pre-let/sold. Trebor managing partner Bob Tattrie said: “This major new site is exciting and will provide the opportunity to deliver a wide range of quality industrial units in the Peterborough and wider Eastern region.”
Joanna Loxton, head of strategic land for the Church Commissioners for England, added: “We are pleased to see this important step forward at Flagship Park, which will bring new opportunities, investment and jobs to the city of Peterborough.” Marketing has started and Trebor and Hillwood are represented by Savills (Peterborough office) and Bidwells.
Planning consent granted for warehouses at Bury business park
Developer Jaynic has been granted reserved matters planning consent from West Suffolk Council for two warehouses totalling over 200,000 sq ft at Suffolk Park in Bury St Edmunds. The warehouses – one of 128,000 sq ft and another of 77,000 sq ft – will be on Suffolk Park’s final northern plot and are available on a pre-let or pre-sale basis. They mark the fourth and final phase of warehouses at the site. Ben Oughton, development director at Jaynic, said: “With the reserved matters consent having been granted we are now able to deliver these two final buildings within a rapid timescale on either a freehold or leasehold basis. This follows a strong 2022 with Evri, Greene King and Dellonda taking space on the park.”
Separately, construction of a distribution unit for retailer The Range is underway at the new Gateway 14 business, innovation and logistics park at Stowmarket. Winvic Construction is delivering the 1.17million sq ft high spec distribution centre, which is the first building at Gateway 14 and is set to open over the next 12 months. It is part of The Range’s plans to create 1,650 jobs in the region.
Record bookings for 2023 events at Suffolk Chamber
Suffolk Chamber is seeing record events bookings for its calendar of networking and business-to-business events for 2023, ahead of its 140th anniversary next year. The chamber plans to put on over 80 events and business gatherings in 2023, including networking sessions, thought leadership meetings, meet the buyer events, business leaders’ dinners, business tours to thematic group think tank meetings, along with meetings with the Bank of England and MPs. The chamber’s popular Safari networking and the Brunch n’ Business sessions are quickly selling out. At an event launch, John Dugmore, chief executive of Suffolk Chamber of Commerce, said: “We were delighted to see so many businesses signing up to our first events of the year. It’s a reflection of the resilience of our local business community as they adapt to the local business environment and make the most of the opportunities available to them.”
Events manager Ami Birrell-Delves added: “Businesses who want to know more about our events can go to the events page on our Suffolk Chamber website where we will soon be releasing even more event dates.” The chamber has also seen a spike in interest for sponsoring events.
Professional services firm launches Cambridge partnership to support employees’ mental wellbeing
KPMG has launched a new five-year partnership with the University of Cambridge on the ‘Future of Work’, to look at key issues affecting the modern workforce and offer practical, research-backed solutions for employers to support employees’ mental wellbeing. The researchers will assess the effectiveness of the mental wellbeing initiatives the firm currently offers to its UK employees and gather evidence base of what works and how new support measures can be developed. KPMG UK reported a 16 per cent per cent rise in revenue from £2.35bn to £2.72bn, with profit before tax increasing from £436m to £449m. KPMG’s practices in both Cambridge and Norwich have seen growth across all service lines as clients sought advice on navigating a challenging economic climate. More than 20 staff at the firm’s East of England practice were promoted, including a new consulting partner and two directors in audit and corporate finance and the firm hired more than 30 graduates and apprentices. Senior partner for KPMG in the East of England Kelly Dunn (photo, right) said: “We have delivered another year of strong performance thanks to the hard work and dedication of our people and are growing in a way that enables us to invest for the future, meet client demand, strengthen our multi-disciplinary services and recognise our people.”
Law firm marks 10th anniversary in Colchester offices
Law firm Thompson Smith and Puxon recently marked 10 years at its offices at Stable 6 in Colchester with a drinks reception for staff past and present along with friends, contacts and neighbours. Reflecting on the move to Stable 6 back in 2013, head of corporate and commercial Mary Anne Fedeyko said: “We are extremely lucky to work in such a superb office. The building itself originally housed the Royal Artillery more than 130 years ago and still retains many of its original features, but has also been elegantly renovated and modernised. In that respect it reflects who we are as a firm – we’ve combined the traditional values of our firm with a modern and commercial way of working”. The firm can be traced back to 1879 when founding partner Edward Thompson Smith started the practice and was joined by Peter Puxon some years later. Originally housed at 4 North Hill, the firm moved in 2013, having outgrown the property and various other offices it was by then occupying. Since the move ten years ago, the firm has doubled in size – with 12 partners and 65 employees – and now more than fills the space at Stable 6. Thompson Smith and Puxon also has an office in Clacton-on-Sea and both offices provide bases for servicing clients in Colchester, Clacton, across Essex, Suffolk and East Anglia.
See Profile Thompson Smith and Puxon
Double recognition for resort at sustainability awards
Louisa Watson
(right), director of marketing at Wyboston Lakes Resort and sustainability director of beam, has been recognised as Sustainability Industry Champion at the Greengage Sustainability Awards. She said: “I’m completely overwhelmed. This was a marvellous surprise and a wonderful honour for me and for Wyboston Lakes Resort. I’d like to thank Greengage for the tremendous recognition and also all my colleagues and the beam action group who have helped and supported me in my work.”
Andrew Perolls, founder and CEO of Greengage, which provides independent advice on sustainability to the travel and events sector said that Louisa: “tirelessly campaigns for sustainability in events and venues and is a great supporter of sustainability accreditation. She is always happy to help those who haven’t reached so far on their sustainability journey and frequently shares her experience through industry association events and panel sessions.” Wyboston Lakes Resort was highly commended for Sustainability Initiative of the Year – accommodation and meetings venues. It comes after winning the Sustainability Award in the Meetings Industry Association’s miaList 2022 and recently being named as a finalist for Best Sustainable Initiative at the forthcoming M&IT Awards.
New innovation lead appointed at Freeport East
Freeport East has appointed Steven Wilson as its new head of innovation tolead the initiative’s engagement with universities, colleges, R&D centres, large and small businesses and public and private funders and investors. A fellow of the Institute of Economic Development, Steven Wilson’s previous roles include head of innovation for both the East of England Development Agency and Cambridge and Peterborough Combined Authority and latterly as interim head of business growth & inward investment for the Dorset LEP. He has also worked in the private sector and was a non-executive director of Cambridge-based Med Tech Accelerator. Earlier this month Freeport East received final government approval and the release of £25m of seed capital to support early development. Innovation is a key part of the Freeport East proposals with the universities of Essex and Suffolk, Adastral Park, Knowledge Gateway and Hutchison Ports among its partners. Plans include new centres of innovation at Gateway 14 and Harwich and greater support for business innovation along the Freeport East coast.
Separately, BT Group is planning to recruit 84 apprentices and graduates in Suffolk as part of its September 2023 intake in areas such as cyber security, network engineering and data analysis to support the digital sectors and to build and extend its 5G network. The 42 graduate roles and 42 apprenticeships will be mainly based at BT’s Adastral Park base in Martlesham, home to its research and development labs.
Five south Cambs villages join network as full-fibre rollout accelaerats
Five more villages in South Cambs with around 2,000 premises have joined County Broadband’s full-fibre network as part of plans to accelerate its £146 million rollout across the East of England. The alt-net provider is taking full-fibre broadband infrastructure with speeds of up to 1,000 Mbps to half a million premises in rural areas across the East of England by 2027 after securing £146 million of investment from Aviva Investors. The five villages are: Abington Pigotts, Bassingbourn-cum-Kneesworth, Litlington, Longstowe, and Toft. James Salmon, Director of Sales and New Territories at County Broadband, said: “Cambridgeshire is a thriving county but needs world-class digital connectivity to boost economic growth and attract investment – and rural and hard-to-reach communities cannot be left behind. That’s why we’ve been working hard since we started this ambitious project, collaborating with local residents, businesses, leaders and stakeholders to find innovative solutions and overcome the unavoidable challenges and complexities to deliver full-fibre broadband infrastructure in rural areas.”
