Cambridge spin-outs attracting investment and long term success
Life sciences spin-outs from the University of Cambridge attract the highest amount of equity per funding round on average and enjoy greater long-term business success than those elsewhere according to a new study. It shows Cambridge spinouts have secured 133 per cent more equity funding compared to comparable peer institutions. The study from accountancy firm Price Bailey looked at data from 584 university spinouts in life sciences, medtech, artificial intelligence, and genomics sectors that received equity funding between 2012 and 2022. The study also showed that university spin outs were significantly likely to achieve a ‘good’ exit, offering a beneficial entry route for entrepreneurs. It highlights an ‘Oxbridge premium’ with life science spinouts from the universities of Oxford and Cambridge securing £3.2m more capital. Oxford University spinouts receive the largest share of equity investment in the UK and lead in spinout creation. Despite a 79 per cent decline in UK spinouts since 2020, the overall number has doubled over the last decade. Chand Chudasama, partner at Price Bailey, said: “Our findings highlight an impressive £12.65m economic impact for every £1m of publicly funded research income that the University of Cambridge generates. This reflects the “multiplier effect” of university based research investment on economic growth, job creation and innovation.”
Separately, Price Bailey has merged with Peterborough accountants Stephenson Smart which it says will provide existing and new clients in the area with access to an enhanced range of services via Price Bailey’s specialist advisory teams. Stephenson Smart will continue to operate from its existing Lynchwood office and clients will be advised under the Price Bailey banner.
Food & drink makers increasingly optimistic despite challenges
Optimism across the food and drink industry – the region’s largest manufacturing sector – has jumped in the past year despite rising costs and pressure on consumer spending, says a new survey. Eight in ten (81 per cent ) leaders in the UK food and drink sector feel positive about the prospects of the industry over the coming year – up from 69 per cent a year ago – and over a third expect an increase in their gross profit margins, according to BDO’s annual Food & Drink report. A further quarter of firms are planning to make acquisitions. Manwhile, some 70 per cent felt positive about the future of their own business in the next 12 months (albeit down from 78 per cent last year) with new product development and expansion into non-EU markets seen as key drivers. But higher energy costs and weaker consumer spending will continue to test businesses’ resilience and the industry also faces skill shortages. Peter Harrup, partner at BDO, said: “…the long-term nature of many of the threats facing UK food and drink companies suggests that leaders will need to stay flexible and think strategically about the future of their businesses. Sticking-plaster measures from businesses or government will not suffice in an environment where a return to normality – whatever that is – remains elusive.”
Separately, the average value of agricultural land in England has plateaued following eight successive quarters of growth, according to Strutt & Parker. Its database shows that the average price of arable land sold so far during 2023 is £10,900/acre, slightly lower than the £11,100/acre reported in the first half of 2023 but the same as the 2022 average. The agent says the market outlook remains positive and is forecasting ‘a period of stabilisation in values’.
Manufacturers set for busy fourth quarter despite mixed outlook
Manufacturers in the East of England face a mixed picture as consumer spending slows and overseas markets weaken but look set for a busy year-end, according to a third quarter outlook survey from Make UK and BDO. Although output has slowed (-14 per cent) expectations for the final quarter in the region are very strong for output (+36 per cent) and order levels (+38 per cent) and well above the national average. Recruitment in the region, was strong in the last quarter but is weaker looking ahead to the final quarter. Investment intentions have also weakened significantly. John Gethen, corporate finance director at BDO in East Anglia, said: “…despite the challenging backdrop, the tone and sentiment of discussions between regional businesses paints a much more positive picture. While there are clear pressures being placed on capital expenditure, it’s reassuring to see that ESG remains a top priority across the board, regardless of decisions being made by government to delay the UK petrol-diesel ban until 2035….”
He added: “In the absence of an overarching industrial strategy from the Government, businesses will be tightening their purse strings, protecting margins and focusing on building operational efficiencies over the next few months, with expectations of slowing pressure on inflation helping to drive greater activity.”
Mid-Suffolk agricultural group acquires plant operator training business
Blacks of Bacton, a Mid-Suffolk-based farming business, has acquired Aurelia, a Newmarket-based plant operator training company. The deal combines two established family-owned businesses; Blacks of Bacton’ business is mainly farming and it also controls and lease a portfolio of commercial and residential properties whilst Aurelia has 25 years experience in plant operator training with wide specialist knowledge and a loyal customer base. Blacks of Bacton managing director James Black said: “…. This acquisition aligns with our long-term growth strategy and allows us to offer a new range of services to a wider audience. We are confident that, together, we will achieve new heights of success.”
Trevor Anderson, managing director of Aurelia, said: “… I’m happy to say that I will continue to be a part of the business for the immediate future and look forward to passing on my knowledge to a new generation of trainers.” Aurelia will continue to operate under its existing brand and from its current site in Kentford.
Photo (l-r): Tom Harris (trainer, Aurelia), Kevin Gotobed (trainer, Aurelia) and Trevor Anderson, managing director Aurelia with James Black managing director, Blacks of Bacton Group.
Corporate finance firm advises on acquisiton of bespoke glazing specialist
Cambridge-based PEM Corporate Finance has provided buy-side advice to the directors at AJGE on its acquisition of Bournemouth Glass Company, a provider of bespoke double glazing to commercial and residential properties, mainly in the South West. The directors at AJGE, who have a long-standing relationship with PEM, identified an opportunity to buy a growing business in the commercial glass installation sector. PEMCF was appointed by AJGE to provide buy-side corporate finance advice. Philip Olagunju, Simon Kinsella, and James Lewin undertook financial due diligence for the acquirer and provided input on negotiations, working capital analysis, and the commercial aspects of the SPA drafting. Simon Kinsella, assistant director at PEMCF, said: “PEM Corporate Finance are proud to have recently supported a wide range of clients with financial due diligence and buyside advice and we look forward to assisting many more in the coming months.”
Growing law firm expands with acquisition in east Suffolk
Atkins Dellow, a law firm formed in 2020 in Suffolk, has expanded in the east of the county with the acquisition of Halesworth and Framlingham-based, Cross Ram & Co. In three years, Atkins Dillow has grown to five offices including Bury St Edmunds, Sudbury and London and over 430 clients. Partner Robert Dellow said: “We are looking forward to working with the great team from Cross Ram & Co and integrate them into our family of employees. It’s also exciting to think that we can now offer our services more locally to the people living in the east of Suffolk”. The firm offers services in employment law, family & relationship law, business law, residential conveyancing, wills, trusts & probate, powers of attorney and commercial property.
Law firm expands team with new appointments
Barker Gotelee Solicitors has appointed a new head of family law, Sue Wardropper, who qualified in 2004 and has 30 years’ experience in family law. Based mainly in Suffolk, she has excellent local knowledge and a good working relationship with other local professionals including accountants, pension experts and financial advisers. Two newly-qualified lawyers have also officially joined the firm. Anabel Attwell and Emel Dag Kilickaya (photo, right) both completed their training contracts at Barker Gotelee, spending time in each department, before qualifying in September. Annabel Attwell joins the corporate law team within the business services department, specialising in a wide variety of commercial law. Emel Dag Kilickaya is also joining the firm’s business services team, playing a key role in building its new immigration law service which will work with individuals and businesses to help them navigate the complex UK immigration system.
Experienced banking lawyer joins law firm
Ellisons Solicitors, has appointed an experienced banking lawyer, Phillip Slater (right)as legal director and head of banking. He joins with more than 25 years’ experience with City firms and says there is a significant opportunity to meet the already established and rapidly increasing regional requirement for legal provision in banking and finance. He said:“Joining Ellisons’ established platform in East Anglia and complementing its corporate & commercial and commercial property practices with an increased breadth and depth of experience in banking & finance presents a very exciting opportunity. It will offer clients a regional alternative for corporate banking advice in circumstances where they might otherwise have gravitated towards larger legal centres such as Cambridge or London….”
Recruitment drive at company secretarial software company
Inform Direct, the Ipswich-based creator of company secretarial software, has launched a recruitment drive to expand its team to meet growing client demand. The award-winning company is currently looking to fill four key roles: software business analyst, business development manager, customer support executive and senior software tester. Managing director John Korchak said: “Recently we were delighted to pass the 300,000 milestone of companies using our platform and are looking to expand our team to enable us to continue to offer the highest levels of customer service. As holders of a platinum Feefo rating for the fourth time, we know it’s important that our software is backed up with support from our skilled and knowledgeable team.” He added: “Join us and you can enjoy a wide range of benefits – competitive remuneration with some additional bonuses such as birthdays off and an early Friday finish, a sociable workplace and the opportunity to play a role in the future success of the business. We are interested in hearing from people with the skillsets we need so we can tell them more.” https://www.informdirect.co.uk/about/careers/
Photo: The Inform Direct team.
Cambs company expands global reach with Indonesian subsidiary
Cambs-based Domino Printing Sciences has officially opened a new subsidiary to provide complete coding and marking solutions for Indonesia. Headquartered in Jakarta, Domino Printing Indonesia will become the first global coding and marking provider with a direct presence in the Indonesian market. Regional offices will be established in Bandung and Surabaya, with further plans to open offices across Sumatra, Java, and Sulawesi. The new subsidiary is a ‘one stop shop’ for businesses of all sizes and in key market sectors, including pharmaceuticals, building and construction and food and beverage. General manager Shaun Chan said: “Domino has a long history in Indonesia having worked with distribution partners in the country for the last 23 years. Our new subsidiary will retain all the Domino experience it has built up over this time and will include the talented professionals from incumbent distributors so that our customers in the region will continue to be served by their existing service engineers.”
Ben Rock, strategic development director, adds: “Being a resource-rich country, rather than exporting those valuable resources overseas, the Indonesian government is focused on adding value for the local market. With increased foreign direct investment, market demand for coding and marking will increase. Domino will now be well-placed to respond and deliver the demand and service levels that customers expect.”
