Insolvencies set to ‘rise significantly’ in 2024
An unexpected monthly fall in corporate insolvencies in England and Wales does not reflect current tough trading conditions and the number of businesses becoming insolvent in the region is likely to ‘rise significantly’ through 2024, according to the Eastern branch of the sector’s trade body R3. Corporate insolvencies totalled 2,002 in December, down by 19 per cent on November’s figure but up slightly on the month a year ago and 79% higher than in the pre-pandemic figure in December 2019. R3 Eastern chair Hayley Watson, associate director at McTear Williams & Wood, said: “These new figures are the highest for December in four years and reflect the final month of a difficult year. December was tough for many local businesses as they faced additional expenses at a time when margins were already tight. These won’t have been helped by a slowdown in consumer spending and a rise in energy prices.” She added: “These extra costs could have been the final blow for many businesses and may have led to their directors turning to an insolvency process to resolve their firm’s financial issues. If the New Year trading period hasn’t improved on the one before Christmas, we could see insolvency numbers continue to rise, as businesses who had banked on a festive income boost to cover any financial shortfall turn to the profession for help.”
Corporate finance team set for ‘very busy 2024’
The largest corporate finance M&A team in the region, Grant Thornton, is anticipating having a ‘very busy 2024’. Mike Tillson, who was recently named the dealmaker of the year for 2023 for the Central and East region by Insider, said: “Our foot is still firmly on the accelerator as we launch into the new year, and we’re excited by what we’re looking to deliver in 2024.” Despite headwinds in the wider economy, Grant Thornton had a strong year in the region in 2023 – selling eight private companies and advising on the acquisition of three businesses. Mike Tillson (photo, right) joined Grant Thornton three years ago after a decade in Australia, where he was an M&A partner for one of the big 4 advisory firms. He said: “What we do drives value creation and liquidity for owners, which genuinely creates a step change in their family’s wealth. We also have a huge role in helping companies to achieve their growth objectives through finance raising or acquisitions, and when selling companies we can ensure a safe home with strong career opportunities for the staff.”
Law firm advises on £5.5 million seed round fundraising
Law firm Birketts has advised offsite construction software company KOPE AI on a £5.5m seed round fundraising. KOPE AI’s software is the only purpose-built platform for offsite construction and allows companies to seamlessly integrate prefabricated products into their projects. The seed funding will advance the development of its offsite construction platform. Caroline Nicholls, legal director, Birketts, who led the team advising the company, said: “KOPE AI is leading the charge in the shift away from traditional construction and we’re looking forward to seeing this funding take them to the next level.” The funding round was led by Socii Captial, with Autodesk, Saint-Gobain, Barton Malow Ventures, Halking Private Capital and Luck Investment. Meanwhile, Birketts has also advised global facilities service provider OCS, which has a UK base in Bury St Edmunds, on its acquisition of Profile Security, one of the largest independently-owned providers of security services in the UK.
Separately, Birketts has appointed Nicola Curle (right) as a partner in its Norwich housebuilder team. She joins from a regional firm and brings wide experience in residential development work. Chris Hoxley, partner and head of Birketts’ Norwich housebuilder team, said: “… Her experience speaks for itself and having worked on projects with Nicola before, I know she will be a tremendous asset to the firm and our clients.” Her arrival increases the number of partners in the firm’s Norwich commercial property department to seven, split across four teams: housebuilder, real estate investment, real estate finance and commercial property & strategic land.
Environment minister tours one of world’s largest vertical farms in Norfolk
Environment secretary Steve Barclay and others visited Fischer Farms’ new 25,000 sq m vertical farm near Norwich this week to learn about agricultural innovation in Norfolk and the role for vertical farming in safeguarding food security. The group toured the four-acre site which has the capacity to supply 6.5 tonnes of leaf salad, leafy herbs and other fresh produce daily. Tristan Fischer, founder and CEO of Fischer Farms, said: “The Norfolk area is a real hub for agricultural innovation, and we are extremely proud to be a part of this movement. The Norwich Food Enterprise Park is a game-changer for businesses like ours and is something that should be replicated in other areas of the UK.”
Steve Barclay said: “We have some of the world’s leading agri-tech innovators here in the UK and I’m a firm believer in the potential of technology to help us grow food in a more efficient and sustainable way. Fischer Farms are a brilliant example of this – it was fascinating to visit their vertical farm today and see this cutting-edge technology in action.”
Photo: Steve Barclay (left) and Tristan Fischer.
Non-farmers buy more than half of farms and estates
More than half of the farms and estates sold on the open market in England in 2023, were sold to non-farmers last year. Figures from Strutt & Parker showed that farmers accounted for only 44 per cent of open market transactions in 2023, compared to 50-60 per cent traditionally. Non-farmer buyers tend to buy larger farms and they bought a larger area of land than farmers too. Matthew Sudlow, head of estates & farm agency for Strutt & Parker, said: “What we have seen over the past 12 months is that farmers have understandably become more cautious because of a combination of higher interest rates, falling support payments, cost pressures and the impact of some horrendous weather conditions. Meanwhile, investors and lifestyle buyers continue to see farmland as an attractive and safe long-term investment.” Private investors were involved in 28 per cent of transactions, institutional investors in 13 per cent – up 10 per cent on 2022 levels – and lifestyle buyers in 16 per cent. Meanwhile, the average price of arable land in England rose by 4 per cent in 2022, with an average price paid of £11,300/acre.
Work starts on new Suffolk hq building for articulated loader company
Construction of a new 32,000 sq ft hq building for Avant Tecno UK is underway at Suffolk Business Park, Bury St Edmunds. Avant Tecno UK supplies articulated loaders for the construction, agricultural and other sectors and is set to relocate from its base near Thetford in Norfolk to the new premises this summer. Developer Churchmanor Estates’ masterplan for the park sees four business zones; Avant Tecno’s is on the one for industrial occupiers. Matt Cloke, develoment director at Churchmanor Estates, said: “Avant Tecno are the acknowledged market leader in their sector, and so we are delighted to be asked to work with them to bring their vision for a new bespoke UK HQ, warehouse and showroom. This is an important investment not just for Suffolk Business Park but for West Suffolk as well, and we’re looking forward to seeing the project progress over the next nine months.” Eddisons, which has recently been named as the most active property agent operating in the East of England by EG Radius – acted as the sole agent for Churchmanor Estates in helping secure the deal.
Water company invests £3 million to upgrade recycling facilities
Anglian Water has begun work on a £3 million upgrade of its water recycling centre at Great Waldingfield, near Sudbury in Suffolk installing new equipment which will remove phosphorous from wastewater to improve nearby river water quality. Phosphorous is widely used in soaps and cleaning products but can harm wildlife in rivers and other watercourses. Regan Harris, spokesperson for Anglian Water, said: “We know how important rivers and the wider environment are to our customers and local communities. That’s why we’ve committed through our Get River Positive programme that our water recycling processes will not harm rivers.” The scheme follows similar recent investments by the utility company at water recycling centres at nearby Sudbury worth £1.9 million and Steeple Bumpstead worth more than £1 million, both designed to protect the River Stour.
Ipswich-based yacht broker re-launches under new owners
An Ipswich-based yacht broker, Fox’s Yacht Sales, has re-launched under new ownership. Based at Fox’s Marina on the River Orwell, which is one of the largest yacht service marinas in the UK, the business sells a full range of new Beneteau yachts and motorboats and offers a brokerage service of selected pre-owned sailing and motor yachts. Fox’s Yacht Sales’ new owner and director, Tim Long, said: “We are absolutely delighted to have been re-appointed to represent Beneteau for its industry-leading range of yachts and to have the opportunity to build on that successful relationship.”
Photo: Owners Tim and Sarah Long outside the company’s offices at Fox’s Marina, Ipswich.
