Business optimism blooms as revival in activity gathers pace
Business activity in the region picked up in April as the rate of growth in new work speeded up and optimism – particularly amongst services’ firms – rose to its highest level in over a year, according to a key survey of purchasing managers. The NatWest East of England PMI business activity index rose to 53.1 in April from 50.0 in March as firms reported a revival in new work, increased capacity and new products. Growth in new business accelerated to a 13-month high although new manufacturing orders fell slightly. Companies were the most optimistic since February last year 2022, helped by signs that inflation had peaked and market stability had returned. Job creation also accelerated and private sector employment in the region rose for the third month running in April, led by recruitment at services’ firms. Although cost inflation picked up in April, driven by wages, energy, IT and food prices, it was well down on levels seen in 2022. Rashel Chowdhury, NatWest Midlands and East regional board, said: “There were definite signs of economic recovery in the East of England at the start of the second quarter after an extended period of weakness….Companies were increasingly confident about the future despite the ongoing cost of living crisis and stubbornly high inflation, reporting the strongest output expectations since February 2022, before the Russian invasion of Ukraine.”
Norfolk-based green services firm acquired by larger group
A Norfolk-based grounds maintenance and environmental services business CGM Group has been acquired by an acquisitive Surrey-based group in the sector, Nurture Landscapes Group, which is backed by a private capital fund. Downham Market-based CGM employs nearly 200 staff and has a reputation for grounds maintenance, arboriculture, and environmental services for clients which include Amey Defence Systems and the Canals and Rivers Trust. Founded by husband-and-wife team Tim and Julie Glover 38 years ago as Country Ground Maintenance, CGM Group (East Anglia) has a turnover set to exceed £15m this year. The founders will be stepping away from the business whilst their son, operations director Marcus Glover, becomes regional director. The deal is Nurture Group’s eighth in the past twelve months and follows a £57 million investment in the business by All Seas Capital. Peter Fane, Nurture Group founder and executive chairman, said : “This is a crucial acquisition for us for many reasons, and one that we are all really excited about. In particular it gives us considerably more presence in the East of England, and allows us to build upon the skills that CGM has, which we currently do not offer as part of our portfolio. Likewise, it paves the way for us to introduce new services to the region, such as winter gritting, pest control and internal and external plant displays.”
Separately, Sovereign Capital Partners, a private equity firm, has acquired a majority stake in LB Group, a Colchester-based chartered accountancy services firm with offices in London, Ipswich and Chelmsford. Since 2020, LB Group has increased staff numbers from 100 to around 140 to meet demand and invested significantly in its technology and office infrastructure.
New £3.5 million storage and business centre facility set to open in Stowmarket
A new £3.5 million complex which will provide domestic and commercial storage facilities along with a business centre for more than 100 small firms is taking shape at Atex Business Park in Stowmarket, ahead of its official opening in July. Local MP Jo Churchill was recently given a tour of the new 32,000 sq ft facility which is being launched by Warwickshire-based Sqab Storage. It provides storage for companies and individuals and also acts as a hub for companies in a range of sectors, offering workspace on flexible leases. Jo Churchill said: “Squab is making a significant investment in Stowmarket, and this facility will supply safe and secure storage options for customers and also provide businesses across the area with professional, flexible work spaces that can be adapted to meet their needs and will also support growth.” She also saw the main building which is being fitted-out. Squab has centres in Leamington, Evesham and Rubery in the West Midlands and is home to more than 200 businesses across the three sites.
Photo (l-r): Emma Banks and StJohn Tyrwhitt, of Squab, Bury MP Jo Churchill and Alex Henney of Squab.
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Region’s firms planning to invest more in ‘international growth’
International growth high on their agenda at firms across the East, according to Grant Thornton’s latest business outlook tracker survey. It showed 72 per cent of respondents in the East of England said they would invest either more or the same in international growth over the next six months. Meanwhile, just over half of business leaders in the East said that ‘Brand Britain’ is helpful to UK firms when trading internationally and the majority also believe the country’s ability to host large events with global audiences -such as Eurovision – helps in international markets. The survey, also showed that most also believe that the region East has an effective and consistent strategy to attract global investments, reflecting the region’s status as an R&D powerhouse. James Brown, managing partner in the East & Central region at Grant Thornton UK, said: “The appeal of Brand Britain has always been strong and it’s great to see that over half of East of England business leaders recognise it as a strong card they can play to achieve international growth.”
See Profile Grant Thornton
Expanding property agency expands presence in the East
Property consultancy Eddisons has acquired Lincoln-based Banks Long & Co in a deal which it says will boost its presence in the East of England & the East Midlands. Established in 1989, Banks Long & Co is a multi-disciplinary firm of consultants & surveyors with a headcount of 38 and which will now integrate with Leeds-based Eddisons’ existing network of 25 UK offices. Eddisons employs 400 nationally and its offices include Cambridge, Huntingdon, Bury St Edmunds, Peterborough, Kettering & Northampton. The group acquired East Midlands-based firm Budworth Hardcastle last year and East of England agency Barker Storey Matthews before the pandemic. Banks Long & Co director Tim Bradford said: “We are excited to be joining the Eddisons team as there is a natural overlap with the services we offer and an opportunity to work with like-minded individuals.
Photo (l-r): James Foster (Eddisons), Simon Bridge, James Butcher & Tim Bradford (formerly Banks Long & Co).
Healthy work culture ‘key to winning war on talent’
The key to winning the war on talent is to ‘build a healthy work culture’, businesses were told by a specialist online job advertiser and recruitment specialist at a recent Suffolk Chamber event. Michelle Pollard, managing director of Spider and polkadotfrog said: “The pace of recruitment has changed, and candidates now have access to a wider range of opportunities than ever. It’s not enough now for a company to advertise a role with a list of responsibilities. Candidates are looking for roles with purpose, and businesses who can tell the story of why they are a good company to work for will have the inside track on attracting talented staff.”
Fellow speaker Emma Ratzer, who has built local charity Access Community Trust into a Sunday Times Top 100 employer, said that by investing in a healthy work culture you can improve your company’s performance, and make it more competitive.
Photo (l-r): Amanda Ankin, Suffolk Chamber; Emma Ratzer, Access Community Trust; Franstine Jones, Aspire Black Suffolk; Michelle Pollard, Spider
New solar panels to generate electricity surplus at Norfolk Showground
The Norfolk Showground is set to generate more than 100% of the electricity it needs each year after collaborating on one of the county’s largest solar panel projects with a Norwich-based energy consultancy, Indigo Swan. The consultancy provided a comprehensive package involving the panels, their appearance and returns and worked with Power Different who installed the panels on the south side of the Norfolk Events Centre roof, spanning the length of the building. Fearn Ainsworth, commercial development manager at the RNAA and Norfolk Showground, said: “The whole process has been fantastic, right through from contract negotiations, to selling the electricity back to the grid, it’s just been great.”
Oliver Denison, head of sustainability at Indigo Swan, who oversaw the project, said: “It’s been fantastic to work on a project with the Showground, an extremely well-known name in the region, and because of the lovely work that they do.” The panels are expected to generate around 102% of the electricity the Showground needs each year – around 210,000kW hours – and the point at which they create a return on investment has been reduced from five to three years.
Fearn Ainsworth, RNAA Commercial Development Manager and Oliver Denison, Head of Sustainability at Indigo Swan with one of the solar panels at the Norfolk Events Centre.
