Prospects brighten for region’s manufacturers as new orders pick up
The outlook for new orders, jobs and investment at East of England manufacturers has brightened as domestic and global markets have improved and fears of a significant recession this year have eased. A second quarter manufacturing outlook from Make UK/BDO suggests orders are set to rise in the next quarter to a balance of +22%, well above long-term averages. The region is benefitting from a strong upturn in the food and drink sector. Both UK and export orders are strong and job prospects are improving with a balance of +17% of companies planning to recruit in the next three months. Meanwhile, a balance of +22% of firms in the East of England are planning to increase investment, well ahead of the national average. Although Make UK and BDO are forecasting overall output will still shrink fractionally this year, but by far less than -3.3% contraction it expected at the start of this year. Charlotte Horobin, East of England region director at Make UK, said: “… companies are at least seeing a relative period of stability after the political and economic turmoil of the last few years when they have spent most of their time firefighting. Substantial challenges still remain and so long as there is an absence of an overarching industrial strategy growth prospects will remain anaemic at best.”
Keith Ferguson, head of manufacturing at BDO in the East of England, said: “Despite the first half of the year seeing some pressures easing for local manufacturers – and the short-term prospects looking healthier for it – there are longer-term systemic challenges in the UK market, with built-in inefficiencies that need to be addressed urgently in order for manufacturers to effectively plan and invest.”
Majority stake in Cambs-based fire rescue equipment firm sold to tech group
Shareholders in Cambs-based Supply Plus, a market leader in fire rescue and fuel delivery equipment, have been advised by PEM Corporate Finance on the sale of 80 per cent of their share equity to a value-creating tech group, Lagercrantz. Based at Papworth Everard, Supply Plus produces safety and fuel delivery equipment under the AS Fire & Safety, Bayley and Collins Youldon names for use by fire and rescue, police military services and OEM partners. The UK accounts for 60 per cent of sales and it sells to more than 40 countries and the business attracted interest from both the UK and overseas. Lagercrantz is a tech group that offers technology, using either propriety products or those from leading suppliers and consists of some 70 companies in nine countries in northern Europe, China, India and the USA. Derek Gotts will continue as managing director of Supply Plus and will retain 15 per cent of the shares. He said: “We were delighted to work with PEMCF who found a buyer, unknown to us, in the Lagercrantz Group that we believe will truly have the long-term interests of the business and our people here at the centre of their focus.”
Philip Olagunju, head of PEM Corporate Finance, added: “Supply Plus has grown to become very well-known for developing market-leading products in its core areas. Lagercrantz is the ideal partner for the business, and we look forward to following the next chapter in the business’ evolution.” Philip Olagunju and James Lewin acted as lead advisors throughout the process and Michael Godfrey from PEM provided business tax advice.
Photo (l-r): Philip Olagunju, Derek Gotts, Patrick Holt, Karen Hull, Mike Corbishley and James Lewin
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Firms urged to be ‘vigilant’ for signs of corporate distress after insolvencies surge
More companies are expected to turn to an insolvency process over coming months to help resolve their financial issues after an increase of over a half in corporate insolvencies in England and Wales in May, according to the Eastern branch of the sector’s trade body R3. Insolvency Service figures show that corporate insolvencies jumped by 51.2 per cent in May 2023 to a total of 2,552 compared to April’s total of 1,688, and by 40 per cent against May last year. R3 Eastern chair Alistair Bacon, founding principal at AMB Law in the region, said: “These corporate insolvency figures are the highest we’ve seen since January 2019, as the fallout from battling the effects of the pandemic – coupled with rising costs, increased creditor pressure, and high inflation – is causing more businesses to turn to an insolvency process….Firms are operating in a market where consumers are spending cautiously, costs are increasing and suppliers are chasing debts in an attempt to manage their own cashflow challenges. This is creating a tough climate for businesses of all sizes at a time when they need an injection of cash.” He added:“Directors need to remain vigilant to signs of corporate distress and seek advice if they start to see stock levels increase, cashflow become an issue, or if there are issues paying rent, staff or bills.”
Growing frozen food business moves to food innovation park outside Norwich
A growing Norwich-based hand-made frozen meals business, Farmyard Frozen, is moving to new premises at the Broadland Food Innovation Centre outside the city to secure more production space to meet increasing demand. Launched during Covid, Farmyard Frozen is the idea of chef Andrew Jones and his wife Hannah Springham (photo), culinary figures behind the Farmyard restaurant in Norwich and The Dial House in Reepham. It provides refined, chef-prepared, frozen meals made with quality, seasonal and locally-sourced ingredients which are also stocked in delis, farmshops and independent retailers and via an online shop. The business won awards for retail innovation and best dessert at the recent British Frozen Food Federation Awards. The state-of-the-art units at the £11.4m Food Innovation Centre at the Food Enterprise Park off the A47 outside Norwich opened last September and other tenants include Prep King and Old Rectory Preserves. Hannah Springham said: “When we heard about the food production units at the Broadland Food Innovation Centre it sounded exactly what we were looking for because the facilities are first class. It’s also exciting that we will be at the heart of a supportive community of innovative food and drink businesses.”
Build to rent portfolio opens with housing site in Cambs
Savills Investment Management has acquired two single-family build to rent (BTR) housing sites for around £50 million including one at Alconbury Weald in Cambridgeshire for 49 new homes. The development is a mix of single-family and flats and is part of a broader scheme set to deliver 6,500 new homes alongside parks, play areas and over 200 acres of woodland and green space. A separate site at Houlton near Rugby involves 149 homes. Both sites will be developed by Urban & Civic and mark the first acquisitions in Savills Investment Management’s build to rent portfolio following its acquisition of Pitmore, a sector specialist last August. Jon Crossfield, head of living at Savills IM, said: “The schemes at Rugby and Alconbury will form a high-quality core of our build-to-rent portfolio, with strong demand fundamentals, providing resilience against market downturns due to the defensive nature of the sector.”
Offices let at new Stowmarket business park
Property agent Penn Commercial has arranged the letting of two new office buildings at Stowmarket’s Suffolk Central Business Park to Aaron Services, acting for client RLMH Commercial. The two ground and first floor offices, units 5 & 6, are 2,500 sq ft each and benefit from 26 car parking spaces between them. Suffolk Central is a new business park west of Stowmarket and offers a total of 20 office units, plus a retail premises, across three phases. Robin Cousins, associate at Penn Commercial, said: “The office market has changed significantly since Covid and those staff going into the office are looking for a flexible, well-designed environment, with high-quality facilities and a convenient, easily accessible location. Suffolk Central Business Park satisfies all of these criteria.”
New private client tax partner appointed
Financial services firm Scrutton Bland has appointed an experienced chartered accountant and chartered tax adviser Paul Harris as a private client tax partner. Based at the expanding firm’s new office in Bury St Edmunds, he specialises in providing advice on capital taxes and wealth management for high-net-worth individuals and their families, together with their related entities such as businesses and trusts. His particular area of expertise, built up over several decades, is agriculture and landed estates. Paul Harris (photo, right) said: “What I most enjoy is taking the time to get to know a client’s individual circumstances and needs, and then working with them to help preserve their wealth, mitigate their tax exposure and manage their succession planning.”
Managing partner Jason Fayers added: “Paul’s proven track record in developing tailored tax strategies, combined with his passion for delivering exceptional client service, make him an excellent addition to the Scrutton Bland team….”
Cambridge company marks International Women In Engineering Day
Cambridge company Domino Printing is marking this year’s International Women in Engineering Day this Friday by recognising some of its female employees working in key technical roles. As part of its commitment to diversity and inclusion, Domino also welcomes the annual awareness campaign by the Women’s Engineering Society which highlights the range of rewarding careers open to everyone in the STEM subjects. Emily Johnson, product compliance specialist, is responsible for ensuring that Domino’s fluid products meet the requirements of industrial legislation. She said: “I considered law, but studying science won. As it has turned out, product compliance is a nice hybrid between the two as you need to hold a strong argument and convey a case succinctly, leading with evidence. I would absolutely encourage anyone to consider studying for a career in STEM, as there are so many interesting roles out there.”
Photo: Domino marks International Women In Engineering Day (l-r): Rachael Wood, UK local subject matter expert for the enterprise resource planning project; Emily Johnson, product compliance specialist; Kayleigh Bennett, senior test technician and Rachael Satchwell, UK head of sales for coding & marking.
