‘Resilient’ mid-market businesses set to invest and rebuild margins
Mid market businesses are showing ‘remarkable resilience’ by investing in people and productivity to rebuild profit margins, according to an economic index which focuses on the sector. A middle market business index from audit, tax and consulting firm RSM, has risen to 131.4 in the first quarter, up 16 points, and the largest rise since the index began. It shows businesses are more positive about the outlook with 39 per cent saying the economy has already improved, and 54 per cent expecting it to improve over the next quarter. Almost half of businesses say their net profits are already up compared to last quarter, while 60per cent said they expect net profits to increase over the next six months. Laragh Jeanroy, office managing partner in Cambridge and Bury St Edmunds at RSM UK, said: “The rise in businesses expecting the economy to improve suggests renewed positivity, but we are not out of the woods yet. East Anglian business leaders should plan for another drop in economic growth, and working capital management is key to weathering the storm. Leaders in the region should also focus on the recovery in the second half of the year, as businesses that invest in their people and productivity now will be best placed to benefit from the upswing when it arrives.” Over half (59 per cent) of middle market businesses plan to increase capital expenditure and investment over the next six months, and a similar share expect to increase turnover.
Record take-up of industrial space in the region points to further rent increases
The take-up of large industrial and logistics warehouse units in the region reached record levels last year and continuing healthy demand from businesses means rents are likely to rise further this year. Occupiers took up 3.1million sq ft of warehouse space in larger units over 100,000 sq ft, a 67 per cent increase on the previous year according to a report Industrial & Logistics Market Pulse from agents Colliers.Meanwhile average rents for industrial space rose by 13 per cent to £8.00 -8.25 psf. With no speculative space underway, further rises are expected this year. Tim Harding, director in the industrial & logistics team at Colliers, said: “Sites in the East of England region usually offer greater affordability than London and the South East, whilst still providing excellent connectivity to those regions as well as the Midlands. What’s more, with the freeport benefits available at locations like Felixstowe and Harwich, the region is well located to capitalise on healthy occupier demand.” He added: “Speculatively built projects have performed well, and the plentiful supply of labour in the local markets further increases the appetite from occupiers, developers and investors alike.” Most larger units leased last year were new stock and although supply increased in 2022 to 686,000 sq ft, it was still below a five-year annual average.
Separately, Landmann, a manufacturer of gas and charcoal BBQs, has agreed to a new five-year lease for four warehouse units totalling 31,512 sq ft at St Peters Industrial Park in Huntingdon. Edward Gee at Savills Peterborough said: “The units on Tower Close provided the occupier with the opportunity to combine the space to create a sizeable base situated just four miles from the A14 and A1(M), making it the ideal location for Landmann to run its regional operations.” Savills acted for Industrial REIT.
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Call for local investment alongside large infrastructure projects
Large infrastructure projects which are the focus of the UK government’s levelling up agenda and include support for business start-ups, should also offer sustainable, local investment in deprived communities, according to new research led by the University of East Anglia. It recommends small business training and employment support over a longer time frame for lasting local impacts. Supporting people to return to communities, increasing social cohesion, boosting digital literacy and enabling net zero jobs are also likely to play a role and are goals which can be supported by housing associations and other groups. Zografia Bika, professor of entrepreneurship at UEA’s Norwich Business School and lead author of the report, said: “While much of the policy work on ‘levelling up’ has focused on smaller, regional cities in the hope that they can experience some of the gains seen in London and Paris, there remains much work to be done to improve the prospects of those in small, often deprived towns and communities.” The study was conducted as part of the Increase Valorisation Sociale (INCREASE VS) project.
Faster broadband arrives for nine Suffolk villages
Thousands of rural homes and businesses across nine Suffolk villages are set to receive fast broadband speeds of up to 1,000 Mbps as Essex-based County Broadband starts construction of its new full fibre networks. Having seen high levels of demand from local homes and businesses for its service, County Broadband is working with partners AB Installs and Highway Workforce to deliver new infrastructure in nine villages in the rollout: Bentley, Brantham, Capel St. Mary, Copdock, Washbrook, Layham, Nayland-with-Wissington, Raydon, and Stratford St. Mary.
Law firm opens new London office
Essex-based law firm Birkett Long has opened new premises in London in Devonshire Place, a short walk from Liverpool Street station. With a strong presence throughout Essex and beyond, the firm says its commercial and private client teams are now better-able to serve current clients as well as growing their portfolio. Tracey Dickens, partner and head of the firm’s commercial department, said: “We have the expertise and experience to advise businesses in a cost-effective way compared to other entirely London-based or regional firms. We have a lot to offer and cannot wait to work with more businesses in London and beyond.”
Law firm appoints solicitors on completion of training contracts
Ashtons Legal has appointed three solicitors who have qualified with the firm following completion of training contracts which saw them move around the firm’s offices, working in a number of disciplines. On qualifying, all three have accepted roles in their chosen fields – Tom Beattie has joined the employment law department, Nathalie Fearnley the family team and Luke Evans the French property team. Ashtons Legal CEO James Tarling said: “As an ambitious growing firm, investing in and training the next generation of lawyers is key to us. I am therefore delighted that Tom, Nathalie and Luke have completed their training and chosen to stay at Ashtons Legal. We run a variety of training programmes for our future lawyers including both those with and without university degrees to ensure that we are able to attract the best people regardless of background.”
Photo (l-r): Tom Beattie, Nathalie Fearnley and Luke Evans.
New partners at accountancy firm
Two new partners have been appointed at regional accountancy firm Larking Gowen whilst tax advisory specialist partner, Richard Proctor, is retiring. Martin Bugg, who has been a member of the firm’s business team for nearly 20 years, will lead the digital focus for the firm’s business sector. Laurie Hill joins the partner team, advising the farms and landed estates sector. He joined the firm in 2019 and has a continued involvement in a family farm, based at Bradenham, in Norfolk. Managing partner Julie Grimmer said: “The partners at Larking Gowen congratulate both Laurie and Martin on their promotions and wish Richard a fond farewell, with our thanks for his contribution to the firm.”
Photo (l-r): Richard Proctor, Martin Bugg and Laurie Hill.
College dining hall named Cambridge’s best new building
The University of Cambridge’s Homerton Dining Hall has been named Cambridge’s best new building (over £2m cost) at the Greater Cambridge Design and Construction Awards. The hall also secured a joint win for the craftmanship award and a commendation in the David Mackay Engineering and Sustainability category, with judges praising its bold, environmentally-conscious design. Cambridge-based property and construction consultancy Ingleton Wood was project manager for the procurement of the building, which was completed in summer 2022. Nick Bryant, project manager at Ingleton Wood, said: “Homerton College has been a client of ours for many years, and these wins are testament to the strength of the team behind it….The hall has been designed and detailed robustly for a minimum 100-year lifespan, applying a set of sustainability standards that exceed best practice. It is all-electric and passively ventilated, featuring a ground source heat pump and sustainably sourced wood throughout the interior.” Feilden Fowles was the architect, Structure Workshop the structural engineer and Barnes Construction the contractor.
Meet Cambridge partners with hospice charity
Meet Cambridge, the meetings and convention bureau, is working with the Arthur Rank Hospice Charity in helping it to attract events which bring in income to fund patient care. Since 2017, the bureau has been providing complimentary support to the charity as a member venue and has helped it to achieve AIM accreditation with the Meeting Industry Association. Its education and conference centre is a modern and accessible meeting space equipped with AV and suitable for ten to 80 people, on the outskirts of Cambridge, next to the Babraham park and ride. Judith Sloane, head of Meet Cambridge, said: “It has been a privilege to work closely with Arthur Rank Hospice Charity over the last six years and assist it to attract external events that bring much-needed revenue. This means it can continue to deliver services free of charge to patients and their families in Cambridgeshire.”
Photo (l-r) : Clive Jones and Louise Higgins both Arthur Rank Hospice Charity; Judith Sloane, head of Meet Cambridge; Rosemary Hall, Arthur Rank Hospice Charity; and Sarah Maycock, Meet Cambridge.
