Confidences surges after new business picks up in March
Business confidence strengthened and new orders at private sector firms across the East rose at a solid pace in March driven by stronger demand and successful advertising campaigns, according to a key survey of purchasing managers. Companies in the region increased workforce numbers for the second month running as expectations of future output improved at both services firms and particularly, manufacturers. Although the NatWest East of England PMI business activity index dipped to 50.0 in March from 52.0 in February – partly as output growth was hampered by materials shortages – the level of positive sentiment rose to its strongest since February 2022 and was greater than the UK average. Firms in the region were encouraged by new product launches and by hopes of further growth in client demand. Although firms continued to face higher wages and materials costs, the rate of input cost inflation was the lowest in two years. Whilst selling prices rose, this was also at a slower pace. Rashel Chowdhury, NatWest Midlands and East regional board, said: “Companies in the East of England saw new business rise further in March, as client demand continued to pick up…. Supporting the upturn in employment were more upbeat expectations for the year-ahead outlook, as optimism reached the highest in over a year.”
Firms set to invest in artificial intelligence as outlook brightens
Sentiment among finance leaders at the UK’s largest companies has improved significantly since the start of the year and most firms expect to see a significant growth in capital spending on artificial intelligence (AI) over coming years, according to Deloitte’s UK CFO first quarter survey. A net 25 per cent of chief financial officers are more optimistic about the financial prospects of their business than they were three months ago. CFOs report a slight rise in the cost of credit and a marginal improvement in credit availability in the first quarter. But despite a brighter outlook, Deloitte said corporates remain in defensive mode and CFO risk appetite was subdued. Meanwhile, a net two thirds of CFOs believe the adoption and application of AI will help raise UK productivity but were divided on whether it will involve more or fewer jobs. Paul Schofield, senior partner at Deloitte in Cambridge, said: “The latest CFO survey reflects the returning optimism we are hearing from the businesses we work with. Although the CFOs are seemingly still in defensive mode, we are seeing many corporates that are now investing further in transformation and strategic priorities.”
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Majority stake in Cambridge-based life sciences consultancy sold to private equity firm
Shareholders in MAP Patient Access, a Cambridge-based provider of market access consulting services to the pharmaceutical and biotech sectors, have sold a majority stake to private equity investor Kester Capital. Grant Thornton UK’s corporate finance team in Cambridge advised MAP on the sale, which is Kester’s fifth in the life sciences sector and which will be used to accelerate the growth of the MAP Platform. Founded by Christian and Dawn Hill, MAP has an integrated approach that blends consulting with membership including a proprietary digital platform, MAP Online, which provides market access intelligence to clients. Doug Bentley, partner at Grant Thornton UK, said: “MAP is a high-quality consultancy with deep expertise across orphan and ultra orphan diseases and cell and gene therapies. The strong cultural and strategic alignment with Kester will help the business to deliver its ambitious growth plans.” Last year Grant Thornton UK ’s East of England corporate finance team ranked as the second most active dealmaker in the Experian’s M&A adviser league table, completing 31 deals.
Full fibre broadband connections pass milestone
The number of UK homes with access to full fibre broadband connection has reached 50 per cent and is set to 80 per cent over the next two years according to Ofcom. Full fibre broadband delivers fibre optic cables directly to the door to achieve speeds of up to 1,000 Mbps, 11 faster than existing superfast networks which rely on copper cables. The 50 per cent figure compares with only six per cent of homes having access to full fibre broadband five years ago. James Salmon, director of sales and new territories at Essex-based County Broadband, said: “This is an important milestone in futureproofing the region’s connectivity but we mustn’t take our foot off the accelerator.” County Broadband is building new full fibre networks in rural communities across the East as part of a £146m private investment from Aviva Investors and has committed to connect half a million premises to its network by 2027.
Separately, CityFibre has completed the primary-build of its full fibre network in Yaxley, near Peterborough; a £2 million construction project started in June 2022 which involved 3,600 homes being connected. The new network brings the total footprint in the area to over 70,000 homes and businesses.
Partner for start up loans programme appointed
The government-based British Bank has appointed Norfolk and Waveney Enterprise Services (Nwes), a not-for-profit enterprise agency, as the new regional business support partner for small businesses in the East of England. Nwes will work with the Start Up Loans programme to deliver funding and support for small businesses in the region over the next two years. Over the past 10 years, the firm has provided funding at a fixed interest rate of 6 per cent along with mentoring to recipients in their first year and has made over 7,200 loans worth more than £69 million to businesses in the region.
Bury warehouse extension doubles pallet storage capacity
Glasswells Storage and Distribution Centre in Bury St Edmunds is extending its storage capacity by an extra 2000 pallet spaces, almost doubling the existing area. The expansion, opening this month, will provide a total of over 100,000 sq. ft. of storage accommodation for business customers. The facility has been helping customers store and distribute goods for over 75 years, with customers including GXO, Azpects and Curve Motion. Commercial storage manager Carl Lewis said: “With pallet storage continuing to be in high-demand, this development will offer over 40 per cent more capacity to meet client needs and enable us to welcome new customers to Glasswells.” The facility provides business storage from £2 per pallet per week and is located just off the A14 and 40 miles from the Port of Felixstowe.
Managing director Paul Glasswell added : “We offer a simple and competitive solution for any business needing to store goods on pallets, from short-term storage to full pick, pack and distribution services. This extension will enable us to continue to meet customer demands.”
Experienced appointment at franchise consultancy
Nick Williams, who has solidified Ashtons Franchise Consulting’s position as one of the sector leaders in the country over the past eight years, is stepping back and retiring as a managing consultant of the business to be succeeded by Phil Mowat. Phil Mowat (right) joined AFC in 2019 as a consultant and brings wide experience in the sector including as a continuing director of Beauty Call franchise, head of UK operations for Local Appliance Rentals and UK country director for Expense Reduction Analysts. He is a qualified business coach and held the position of National Strategic Partnership Manager for ActionCOACH UK. Nick Williams, will continue with AFC on part time basis. Phil Mowat said: “While I wish Nick all the happiness he deserves in his well-earned retirement, I look forward to continuing to benefit from his invaluable experience and expertise into the future. With great enthusiasm, I look forward to contributing to the continued growth and success of Ashtons and our clients, building on its strong reputation for excellence and quality.”
Partners retire from independent Cambridge finance firm
Derek Carr and Lake Falconer, two partners at PEM, Cambridge’s largest independent firm of accountants, tax and business advisers, have retired after being at the firm for a combined 40 years. Derek Carr joined PEM in April 2002 and has held the position of tax partner and chairman since 2004, leading both business and employment tax teams. Matthew Eady now leads the employment tax team, with Jan Fachot leading the business tax team. Derek Carr (photo, left) said: “…It has been especially rewarding to work alongside some amazing people to provide services that are valued by our clients. I will miss PEM as it is a truly unique place to work, and I am sure it will continue to be the most successful independent accountancy practice in Cambridge.”
Lake Falconer (right) joined the firm to establish PEM Corporate Finance (PEMCF) in 2004 and led the team until 2022. Philip Olagunju now heads up PEM Corporate Finance. He said: “After 18 years at PEM I’m proud to have been a part of it’s success in a period during which the firm more than doubled in size and truly become THE Cambridge accountancy firm…. I’ll miss the great people, culture and client focus that makes the place special, but I’m delighted to see the corporate finance business and the firm as a whole in such great shape for continued success.”
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Global learning initiative at Cambridge company hits
the mark
Cambridge company Domino Printing recently launched an initiative to encourage learning across its global network which has resulted in employees completing more than 4,000 activities over four weeks. The company rolled out its Global Learning Month to inspire employees to take ownership of their own continuous improvement journey and to reach their personal potential. Subjects ranged from learning more about Domino as a business and its technologies through to sharing recipes as part of an ‘individual’ strand, which resulted in the ‘Domino World Cuisine Book’. Sessions were delivered in-person and also virtually and over the month, a total of 3,000 employees globally took part, with India, Korea, Mexico and the UK coming out as top learners. Emma Payne, head of leadership & talent development at Domino, said: “This was our first Global Learning Month and we were thrilled to see how well it was received throughout the business. The mix of activities engaged everyone and reinforced the importance of continuing to learn, whatever stage you are in your career.”
Resort wins international award for sustainability initiatives
Wyboston Lakes Resort, west of Cambridge, has returned from North Carolina having beaten off strong competition from 10 other finalists to win an International Association of Conference Centres (IACC) Americas Innovation Award for its sustainability initiatives. The team’s winning entry highlighted the resort’s approach to food waste, in particular its People’s Pantry initiative with chefs encouraging colleagues to take home surplus freshly made food that would otherwise go to waste. It also featured a new biodigester turns food waste into material for fertiliser on Wyboston’s 380 acre site. The judges said that they liked the resort’s overall approach, how it encompassed a full circle practice to remove food waste. Steve Jones, managing director of Wyboston Lakes Resort who attended the conference and received the award, said: “To win a major international award for our sustainability initiatives is tremendous and puts the continually innovative efforts of our team into a new global perspective.” The award was presented at the International Association of Conference Centres (IACC) Americas Knowledge Exchange Conference held at Durham, North Carolina.
