Hopes of interest rates peaking gives business confidence a boost
Business confidence re-bounded sharply in the East of England in August as the economic outlook recovered on hopes that interest rates have peaked and inflation is coming under control. Optimism amongst businesses in the region on the economy rose sharply, by 21 points to 28 per cent, according to a business barometer from Lloyds Bank Commercial Banking. Meanwhile, companies’ faith in their own business prospects remained strong, rising one point to 44 per cent. Overall, the survey showed confidence rising 11 points to 36 in August. However recruitment intentions eased although a net balance of 32 per cent of businesses in the region still expect to increase staff levels over the next year. The upturn reflected a brighter outlook nationally with business confidence rising to highest its since February 2022 and an improving mood across the construction, retail and service sectors. Dene Jones, regional director for the East of England at Lloyds Bank Commercial Banking, said: “It’s encouraging to see firms in the East of England report high levels of business confidence, which is testament to their resilience. However, I’ve no doubt the question on every business’ mind is what the Bank of England will do next with interest rates. It’s a tricky environment in which to plan ahead, but those that seek opportunities to invest in their business will no doubt benefit in the long term.”
Hann-Ju Ho, senior economist at the bank, said:“…Our analysis shows that businesses felt relief that interest rates may be reaching their peak, alongside hopes that measures to tackle inflation are having an impact.”
Majority of region’s firms stuck in long-running tax disputes
Two thirds of East Anglia businesses say they are currently involved in a tax dispute with HMRC which has lasted more than one year, according to a survey from advisory firm BDO. The delays reflect concerns around HMRC’s resources and its ability to swiftly respond to and resolve taxpayer queries. Formal legal disputes with HMRC are also taking longer. HMRC’s latest annual report shows there were 39,500 tax tribunal appeals ongoing on 31 March 2023, an eight per cent rise on the previous year. For large businesses subject to an HMRC enquiry, the average length of time taken to settle an enquiry – including those in litigation – is 36 months. Alternative dispute resolution routes to resolving tax issue remain relatively low. Phil Hall, BDO tax partner in East Anglia, said: “The UK’s tax system can be very complex and difficult to navigate, so it’s no surprise that this can result in business tax disputes. Simplifying and modernising the system would certainly help to reduce these difficulties.”
Surprise fall in corporate insolvencies a ‘red herring’
A surprise fall in the number of corporate insolvencies in England and Wales in July disguises current tough trading conditions with the number of struggling businesses in the region likely to rise significantly over the next year, says the Eastern branch of insolvency and restructuring trade body R3. Insolvency Service figures show corporate insolvencies fell by a fifth in July to 1,727 compared to June and were down six per cent on the month a year ago. R3 Eastern chair Alistair Bacon, founding principal at AMB Law in the region, said: “Care needs to be taken that the monthly fall in corporate insolvencies does not send out the wrong message. Numbers are still well above pre-pandemic levels with a raft of economic issues continuing to bite down hard on businesses.…As we move towards the end of the summer – a period of time which is traditionally quiet for many companies – we urge directors to be vigilant to the signs of financial distress and act swiftly if any present themselves.”
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Picture framing firm boosts capacity with £8m investment
A Cambs-based supplier of picture framing materials, Centrado, has invested £8 million to boost capacity with a new purpose-built warehouse and hq at Fenstanton near Huntingdon with support from Lloyds Bank. The firm sells frame mouldings, glass and picture backings wholesale and is the largest business of its kind in the UK. Lloyds Bank provided a £4 million loan – through its Clean Growth Financing Initiative, which offers discounted lending on sustainable investments – to build the premises. The new 100,000 sq ft facility has enabled the business to increase its capacity five-fold, consolidate operations and boost efficiency. It plans to significantly grow its turnover and add another five staff to its 110-strong workforce this year. James Middleton, finance director at Centrado, said: “The new facility is testament to our last ten years of growth, but also our ambition to growth further still.”
Norwich-based print company expands to meet growing demand for signage
Norwich-based print company CIM Signs and Graphics is significantly expanding its premises to boost its capacity and capabilities in response to the growing signage market across East Anglia. Managing director Mark Baker said:”After Covid, we had a natural spike in sales due to people returning to workspaces, public places, and leisure facilities so were bracing ourselves for a quieter year this year. But it has been quite the opposite – we have seen a sustained increase in our services – especially for vehicle wraps, event exhibition display materials, and sustainable display options. As a result, we have acquired the unit next door to our current facility, which will effectively double our workspace and ability to meet demand.” He added: “…We now employ over 20 people. With a growing order book, we now need the space to match.”The company is based at Rackheath Industrial Centre where it has been operating for over 23 years and will continue to develop its range of environmentally- friendly practices within its expanded facility.
Mark Baker (left) managing director and Tony Burch (right) head of design team mark the expansion.
Cost pressures and weather take toll on garden centre group
Higher inflation and rising energy costs along with poor weather have taken toll on Suffolk-based garden centre group Notcutts. The group’s like-for-like turnover at £73.5m was 7.7 per cent down on the previous year. Total turnover was £75.6m. Lower sales, a reduction in some margins cost pressures meant that operating profits fell to £0.5m in 2022/23. Chief executive Nick Burrows said: “Our horticultural heritage and foundations are strong and we continue to provide an expanding, attractive gardening and leisure proposition that our customers rate highly – as seen with our highest ever customer satisfaction (NPS) scores in the year. We expect trading to rebound well as economic conditions improve.” Notcutts acquired the freehold of Brampton Garden Centre near Huntingdon in August last year taking the number of garden centres in the group to 19. The firm’s plans include next phases of redevelopment projects in Oxford and Woodbridge and new investment in renewable energy.
Photo:Notcutts Brampton Garden Centre official opening
Dynamic life sciences companies thriving in the region as trends for outsourcing grows
The presence of global leaders in life sciences in the East such as AstraZeneca or Bayer, combined with a thriving ecosystem, means that there is a real opportunity for smaller firms looking to scale within the life sciences supply chain, according to Grant Thornton. While these outsourcing and consolidating are not new, there is a growing recognition of their importance to firms in the region. Big pharma is increasingly reliant on the outsourcing of some aspects of their operations, allowing them to tap into specialist expertise and Contract Research Organisations (CROS) to streamline processes, reduce costs and free up resource to focus on core competencies. This shift has created opportunities for specialised service providers in the East of England, such as MAP Patient Access, which offers support services to large pharmaceutical companies. Grant Thornton recently advised on a management buyout of MAP, supported by investment from Kester Capital. This is a notable example of how dynamic companies are thriving as a result of the growing outsourcing trend. Elsewhere, an increasing number of consolidators – companies such as Lucid, Fishawack Health, and Syneos – are offering services covering niche areas of expertise that big pharma is keen to outsource. The aim for these service providers is to become a one-stop-shop for specialised expertise and resources.
See here for a fuller version of How East of England life science innovators are finding a niche in a complex market – and flourishingby Doug Bentley, partner and Toby Hare, associate director – Corporate Finance, Grant Thornton UK LLP.
Cambridge-based life sciences research firm in $5.7 billion deal
Cambridge-based Abcam, a global leader in the supply of life science research tools whose shares are quoted on Nasdaq, has agreed a $24 a share offer from US group Danaher Corporation valuing the business at $5.7 billion. Founded in 1998, Abcam is seen as one of the UK’s leading biotech businesses. It provides scientists validated antibodies, reagents, biomarkers and assays to address targets in biological pathways that are critical for advancing drug discovery, life sciences research, and diagnostics. The company’s technologies are used by around 750,000 researchers. Abcam is expected to operate as a standalone operating company and brand within Danaher’s life sciences segment. Peter Allen, chairman of Abcam, said: “Following a rigorous process, I’m confident this combination with Danaher maximizes value for shareholders while delivering an excellent outcome for our employees and customers.”
Agency appointed to let Ipswich Waterfront hq building
Property agency Penn Commercial has been appointed as exclusive agent to market Ipswich’s Waterfront House to let on the town’s historic Wet Dock at Wherry Quay. The 21,061 sq ft building has six floors of high-quality office space and was formerly the long-term hq of Ashtons Solicitors. Penn Commercial managing director Vanessa Penn said: “…This landmark building was the catalyst for the important transition that has taken place on the River Orwell since the 1980s, from commercial dock to a thriving marina and leisure district. With Ipswich Borough Council’s ambitious plans for the further development of the Stoke Bridge end of the Waterfront, and the increasing footfall generated by the promotion of Ipswich Town Football Club, we are confident that there will be strong demand for flexible office space in this signature building.”
Separately, Penn Commercial has marked its first year as a major sponsor of The Suffolk Punch Trust with a donation of £1,000 at its site at Hollesley, outside Woodbridge. Under a sponsorship deal, signed in July last year, Penn supports The Trust as its corporate charity for 12 months, donating £15 for every commercial property transaction carried out during that time.
Developer wins appeal for open storage site on former abbatoir site
Developer Jaynic has won a planning appeal for open storage on a former abattoir site at Little Wratting in Suffolk between Haverhill and Bury St Edmunds. The appeal was against a refusal by West Suffolk Council for change of use from B2 general industrial use to B8 open storage use on the 5.4 acre former Karro abattoir site on the A143. The appeal was allowed subject to several planning conditions. Paul Sutton, planning director at Jaynic, said: “We are pleased to have won the appeal and are discussing with several parties about taking a lease on the open storage space. Over the longer term Jaynic will be exploring options for the development of the site for employment purposes in line with the existing local plan allocation. We are also discussing with the council the possibility of extending the allocation to the south to create a larger employment site, but this would be done through the emerging West Suffolk Local Plan,” he added.
Long serving team member retires after 39 years at Norfolk-based solicitors
One of Rogers & Norton Solicitors longest-serving team members who has left an enduring mark on the firm’s growth and development, is retiring after over 40 years in the legal profession and 39 years service. Richard Etheridge (photo,right) qualified as a solicitor in 1981 and joined Norfolk-based Rogers & Norton in 1984 from Mills & Reeve as a partner, subsequently becoming a director and shareholder of the company and more recently a consultant. One of his most significant contributions has been the training of numerous young lawyers. Notably, he has recently guided the careers of Jack Crosthwaite and Chloe Tooley, who have both become accomplished commercial solicitors within the firm. Managing director Bruce Faulkner said: ‘‘I would personally like to thank Richard for the support he has given me and for everything he has done for the company as a partner and director over the past 39 years.’’
Richard Etheridge said: ‘‘Rogers & Norton has always strived to be client-focused company and over the years the business has gone from strength to strength. That is not to say that there has not been challenges, but I feel confident now, as I look towards my retirement, that I leave the company in very good hands.’’
See here for fuller background on Richard Etheridge’s retirement
Cambridge-based accountants records record trainee numbers
PEM, Cambridge-based accountants, tax and business advisers, has recruited a record 24 trainees to its student training programme taking its total employee numbers to nearly 250. The trainees includes a mix of A-level students and graduates who will sit within audit and tax teams at the firm’s central Cambridge office and VFO AAT trainees in its Milton office. The students will spend the next three years training and studying to qualify as professional accountants (AAT and ACA) and specialist tax advisers (ATT). Toni Munro, head of HR at PEM, said: “The trainees will study professional qualifications in their chosen field of specialism, whether it is audit, accountancy or taxation and we are delighted they have chosen PEM as their employer of choice. Whilst they all have study programmes ahead of them, they also have a vibrant, collegiate and supportive team to grow and develop within….”
Photo (l-r) – Back row: David Shanahan, Harry Green, Joshua Cornwell, Sayed Abdul, Tom Fox, William White, Harry Vincent-West, Oscar Rule. Middle row: Emilie Levell, Rory Gillham, Amar Bansel, Hugo Blondel. Ellen Lloyd, Amber Griffith, Rhianna Lawson, Andie Foster, William Gawthorp. Front row: Thomas Stanley, Isobel Geo, Danh Hoang, Joshua Pyle, Tom McCarthy, Yammin Billah, Fraser Clark.
Partnership housing developer hands affordable homes in Norfolk
Partnership housing developer, Lovell has completed and handed over 47 affordable homes to Clarion Housing Group at its St Edmund’s Park development in Acle in Norfolk. Lovell, in association with Repton Homes, a housing development company owned by Norfolk County Council, is building 68 affordable units at St Edmund’s Park of which 42 are affordable rented and the remaining 26 are shared ownership properties. Simon Medler, managing director, Lovell in East Anglia, said: “The provision of social housing is extremely important, so we are very happy to have completed and handed over these much-needed new homes to Clarion. St Edmund’s Park has been a very successful development for us and being able to provide great quality social homes is vital.”
Photo at a handover ceremony St Edmund’s Park in Acle. (l-r): Wendy Lane, Carion; Kirsten Wildman, Clarion; Simon Medler, Lovell Partnerships in East Anglia; Cllr Jane James, Norfolk County Council/Repton; Cllr Greg Peck, Norfolk County Council/chair of the board of Repton; Dan Read, Clarion; Jeremy Turnbull, Clarion, at St Edmund’s Park, Lovell’s development in Acle.
Separately,The Hill Group has acquired a 17-acre site for development in Fulbourn, Cambs where it plans to build 110 new homes for the local area in a scheme which will include linear and meadow parks.
Broadband provider launches charity to support good causes
Rural broadband provider County Broadband has launched a new charity, The Hypercharged Foundation, with thousands of pounds available in grant funding to support organisations making a positive impact in rural communities across the East of England. Organisations in County Broadband’s rollout areas are invited to apply for grants through the foundation’s website. Hypercharged Foundation trustee, Craig Larter (photo, left) said: “Our mission is to award grants to community-centric good causes who are making a real difference in the community. Whether you’re fundraising to improve your sports club or village hall, or you’re struggling with transportation for older people or those living with disabilities – we want to hear from you!” One of the first charities to secure funding from the foundation is Great Paxton Recreation Ground in Cambridgeshire which has received £2,500 to support the upkeep of the ground’s five acres of land. To apply for grant funding, visit www.hypercharged.co.uk.
Separately, County Broadband has donated £10,000 worth of computer equipment to tackle ‘digital exclusion’. The company has partnered with Digital Essex to support its Laptop Recycling Scheme under which unused laptops under seven years old are digitally wiped and recycled. The money raised is then used to buy new laptops for individuals and families who are seen as ‘digitally excluded’.
