Risk appetite among finance leaders on the rise following election
Risk appetite among chief finance officers at the largest firms has seen its biggest rise in more than four years amidst growing business optimism following the election, according to Deloitte’s latest CFO survey. Sentiment rose for the fourth quarter running with a net 23 per cent of finance chiefs more positive about prospects for their businesses than they were previously. A net 36 pc of finance chiefs reporting said that now is a good time to take greater risk onto their balance sheets and almost two thirds expect UK corporates’ revenues to increase over the next 12 months. Deloitte chief economist Ian Stewart said: “A more predictable business environment has boosted the spirits of the corporate sector, and shows that the worries around Brexit, Covid-19, inflation and politics that have weighed on corporate spirit for much of the last eight years are clearing.”
Julian Rae, Cambridge office senior partner, said: “The results of our most recent CFO survey are encouraging, and reflect the conversations we have been having with businesses in the East of England in recent weeks.” CFOs saw the election as having a mildly positive effect and the top economic priorities for the new government were seen to be industrial strategy followed by planning reform. Finance leaders have also reported an improvement in credit conditions.
Commercial property market in ‘early stage of recovery’
Confidence in the commercial property market remained flat in the second quarter and the gap between prime and secondary property and between London and the rest of the country has continued to widen, according to the latest RICS UK commercial property monitor. But it also showed that the largest share of surveyors responding (41 per cent) believe that the market is in an early recovery-stage, whilst 34 per cent believe it has reached the bottom. Tenant demand across all sectors remained flat (+4pc net balance) but with industrial property and offices outperforming retail, where tenant demand has seen a slight fall. Gordon Ellis of Merrifields in Bury said: “The market in the Eastern region is very resilient, good property ready to move in to is easier to let, shortage of freeholds means owner occupiers are paying premium prices.”
Meanwhile, Sam Kingston of Roche Chartered Surveyors in Norwich, said: “There has been a marked slowdown in occupier demand for larger properties. Whether this is political or economical, only time will tell. Continued lack of freeholds is keeping values high.”
Law firm advises on electric cargo bike fundraising
The corporate team at law firm Birketts has advised Zedify, the UK’s largest electric cargo bike delivery network, on its latest investment round. An additional £4m investment has been secured from Barclays Sustainable Impact Capital, Mercia Ventures and Green Angel Ventures. The funding will enable Zedify to expand into more UK cities including a planned launch of a new Midlands hub in October. It also plans to triple its turnover in the year ahead with enhanced technology, and expanded teams of riders, sales, and customer care staff – creating 80 new jobs. The business currently operates from nine UK locations including Cambridge and Norwich. It follows an earlier £5 million investment in 2023, where Birketts also advised. The Birketts team was led by partner Ed Savory (corporate), supported by Macauley Alsford (corporate), Harry Close (corporate), Lorraine Porter (corporate), and Ben Green. Ed Savory said: “…. Since the previous fundraise in March of last year, the company has almost doubled the size of its team and signed up a selection of notable national brands. We’re looking forward to seeing what developments this latest investment will bring in the company’s upward growth trajectory.”
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Insolvencies soar but scope for business rescues improves
Monthly company insolvencies in England and Wales jumped in June after a surprise fall in May but government figures point to a growing number of businesses able to be rescued rather than wound up, says the Eastern branch of R3. Corporate insolvencies rose to 2361 in June, up 17 per cent on the month last year. R3 Eastern chair Hayley Watson, of McTear Williams Wood, said: “…there are some positive signs in these figures for local businesses. Company voluntary arrangement and administration numbers have increased compared to last month, and administration numbers are higher than this time last year and in June 2019, indicating an increasing number of businesses for which this is an option, and which have secured creditors willing to support rescue proposals.”
New industrial development set to boost jobs in Colchester and Harwich
The new Centurion Park development (right) in the Freeport East zone between Colchester and Harwich is due for completion by the year-end with the first business occupiers set to move in shortly afterwards. Being built by Tungsten Properties with McLaren Construction, the 29 acre site next to the A120 will provide 11 industrial and distribution units ranging from 11-70,500 sq ft. Following a recent visit, Steve Beel, chief executive of Freeport East, said: “With close proximity to Harwich International Port and the growing logistics and manufacturing opportunities arising through Freeport East, Centurion Park offers a fantastic and largely unique option for commercial occupiers. Combined with our wider programme of work in and around Harwich and the Tendring area, these types of new developments are a critical part of supporting economic growth and job creation.”
Separately, Freeport East is highlighting the Bathside Bay port expansion project in Harwich as a priority for the government to deliver on its 2030 objectives for clean power and offshore wind. The freeport and Hutchison Ports are in talks to secure government support for anticipated private sector investments in the port and associated facilities.
Cambridge stays among top ten cities for foreign direct investment
Cambridge has retained its position in the top ten UK cities for foreign direct investment (FDI) attractiveness, according to a new study. An index compiled for law firm Irwin Mitchell showed that Cambridge remains in 10th place although its overall attractiveness score of 33.9 is 9.4 points down on last year. The fall was in line with all but one of the other 50 cities analysed and was mainly due to lower predicted gross value added growth in 2024. Bryan Bletso, partner and head of international at Irwin Mitchell, said: “Cambridge’s strong performance is a testament to its local infrastructure, fuelled by its strong road network and significant increases in online connectivity from last year. Like Oxford, a large proportion of Cambridge’s population also have high qualification levels, benefiting from proximity to the leading university and boosting local skill levels.”
Separately, PwC is to sponsor Cambridge Tech Week on 9-13th September for the second year running. PwC is also delivering a keynote speech on artificial intelligence (AI), joining a climate tech panel, hosting a fringe event on ESG, and showcasing in the scale-up exhibition.
Ipswich-based printer invests £170k in low carbon tech
Ipswich-based Healeys Printers has bought 95kW of solar panels for its factory roof which will generate around 40 per cent and save up to £30,000 a year on its energy bills. The business has also installed LED lighting throughout its two factories, cutting energy use by three quarter and invested in an electric fleet of company cars. Last year Healeys became the first UK SME printing business to implement science based target initiatives, setting a carbon reduction target of 42 per cent which it met within the year. The firm’s ‘road to net zero’ included investing in solar panels, efficient equipment and a new machine (the Konica Minolta, right) to broaden its capabilities, backed by a £170k funding package from Lloyds Bank. Philip Dodd, managing director at Healeys Printers, said: “In a constantly evolving industry like printing, it’s important to innovate and look at ways you can prepare for the future, for us, this includes broadening our services with a new machine for UV varnish and foiling, as well as investing in our sustainability offering.”
Decade of support for theatre from accountancy firm
Accountancy and business advisory firm Larking Gowen is celebrating its 10th anniversary as a sponsor of The New Wolsey Theatre in Ipswich. “All of us at the New Wolsey Theatre are thrilled to be entering a 10th year of collaboration with our friends at Larking Gowen. We are incredibly grateful for their committed and long-standing support,” said David Watson, executive director at the theatre. He added: “We were delighted to win Positive Impact in the Community and Suffolk Business of the Year awards at the recent EADT Suffolk Business Awards. This recognition is especially meaningful in light of the financial challenges posed by recent funding cuts and is proof of what can still be achieved with the help of dedicated local businesses such as Larking Gowen.”
Relationship officer Ellis Northrop added: “Their contribution has been vital over the years, especially for the important work we do with young people and our local communities”
Photo (l-r): David Watson, Ellis Northrop, Becky Ames, Ian Fitch, Graham Mummery
