Firms enter 2025 with high hopes for boosting turnover and profits
Nearly three quarters of East of England businesses expect to see their turnover increase over the next year and 82 per cent are confident of greater profitability in the new year, according to a business barometer from Lloyds. Both figures are higher than in the same survey a year ago. The upbeat picture emerges despite a separate survey from Lloyds showing that business confidence in the East of England fell by 28 points to 20 per cent in December. Over 2025, more than a third of firms are expecting revenue growth of between six and ten per cent. Improving productivity, upskilling staff and enhancing productivity are seen as priorities. As well as higher wages, firms are planning to invest in energy efficiency and boosting their technology through automation or AI. Kirsty Sadler, regional director for the East of England at Lloyds, said: “It’s encouraging to see stronger turnover and profitability expectations from the East’s businesses. Our region’s firms are entering 2025 with clear and ambitious plans – whether that’s boosting productivity or boosting environmental sustainability.” The barometer surveys 1,200 businesses monthly and has been running since 2002.
Separately, more than a third of East Anglia mid-sized businesses see supply chain challenges amongst their top concerns over the year ahead. Rising operating costs such as energy bills and for new tech such as AI are also a challenge for firms in the region, according to BDO’s bi-monthly Economic Engine survey.
Deals team optimistic for 2025 after strong year
After a strong year of deal completions in 2024, a leading dealmaking team in the region is optimistic on the year ahead against a more stable economic background. Mike Tillson (right), partner, Grant Thornton UK, said the firm’s local team: “…has delivered a variety of deals for our clients this year, and we look forward to 2025 with confidence given a strong pipeline and ever-increasing confidence in the global M&A markets.”
Partner Stuart Davies added: “More stable economic conditions during the year has unlocked greater confidence in the marketplace and a willingness to transact.” Over the past year, the firm’s team has advised on a wide range of deals. Recent transactions include the investment into Signify Research by BGF, the sale of Essex car dealership group Glyn Hopkin to an employee ownership trust and the acquisition of eight sites for Peterborough building materials company PJ Thory. Grant Thornton was awarded corporate finance team of the year at the Central and East Dealmakers awards.
MBO completed at Essex-based HVAC services business
An MBO has been completed at Essex-based, Knight Controls where Forward Corporate Finance acted as lead advisor to the management team of Bart Janosz and Steve Hogben. They acquired the business from Barry Knight who founded the business in 2004. Knight Controls supplies heating, ventilating and air conditioning services to building operators across London and the South East. The company carries out large-scale building & energy management system install projects and contracted HVAC servicing & remedial works. Bart Janosz and Steve Hogben have over 22 years combined experience working for Barry Knight, and the MBO had been part of the founder’s exit plans for a number of years. Barry Knight said: “When I first met Rob Dukelow-Smith from Forward with my accountant Wayne Hockley, I could sense that he understood what I was trying to achieve with a handover of the business to my management team, and that collectively we would all be in safe hands for a successful outcome.” The MBO funding included a mixture of private cash injections made by the management team duo, a term loan provided by HSBC, and vendor financing from Barry Knight. Legal advice for the management team was provided by from Ellisons Solicitors.
See Profile Forward Corporate Finance
Corporate finance team advises expanding garden centre business on second acquisition
Scrutton Bland recently acted as lead advisers on the acquisition of Buckhatch Nursery and Garden Centre near by Chelmsford Perrywood. The deal, completed in late September, is the second acquisition where Scrutton Bland’s corporate finance team have supported Perrywood Group, following its purchase of Wyevale Garden Centre in Sudbury in 2018 where a site redevelopment is now underway. Perrywood is an award-winning independent, family-owned garden centre and nursery run by two generations of the Bourne family. Mark Smith, corporate finance director at Scrutton Bland said: “It was great to work with Perrywood on another transaction as the group continues to expand. Having such regular communication gives us a very clear steer on the key factors and motivations that drive the group’s decisions – an important factor when it comes to negotiations and being able to proactively drive the transaction forward”.
Hannah Powell, communications & HR director for Perrywood, said: “It was great to work with Mark and Luke on our acquisition. Their expertise was evident throughout the process, but what truly stood out was their proactive and hands-on approach.”
Photo: The Blackhatch team mark the deal
Brown Shipley, a Quintet Private Bank, shares 2025 investment outlook
Colin Manktelow (right), Executive Director at Brown Shipley in Cambridge, shares Brown Shipley’s annual forecast for the global economy, financial markets and key asset classes.
2024 was unpredictable. Despite earlier concerns, the US avoided a recession, the eurozone and UK experienced only mild downturns, and China picked up steam towards the end of the year. While there were occasional spikes in market volatility, the overall story of 2024 was one of growth – powered in no small part by structural themes, including the rapid rise of new technologies.
The transformative potential of artificial intelligence is one of the trends to watch in 2025. Brown Shipley believes the winners of tomorrow will likely be broader beneficiaries that deploy Artificial Intelligence to gain a competitive edge. Healthcare diagnostics, circular-economy supply chains that reuse resources and reduce waste, and infrastructure such as data centres and next-generation power grids are just a few examples of how long-term innovation will be driven by AI.
On the global investment outlook, Brown Shipley maintained its equity overweight, with a preference for US equities. European exposure has been adjusted to neutral, reflecting downside risks such as higher tariffs. Brown Shipley is likewise tactically neutral on emerging-market assets, including both equities and debt, due to similar apprehensions about China-US tensions as well as inflation and rate-hike concerns in Brazil.
Regarding fixed income, bonds – along with gold – can play a vital role in diversifying risks and, in some cases, appear attractively valued. Brown Shipley is increasing its exposure to gilts, with a continued preference for short-dated ones, and to US Treasuries, while remaining underweight on the latter given fiscal concerns.
The business is also reducing exposure to European and US investment-grade corporate credit as we do not believe valuations adequately compensate for risks. Finally, with US fiscal policies potentially turning more inflationary, the business is swapping shorter-dated US inflation-protected bonds for longer-dated ones.
On currency, the business expects the US dollar to remain strong in the near term versus the euro and pound sterling.
Conference and events bureau brings holiday cheer with toy collection
Meet Cambridge, the official conference and events bureau for the area, recently partnered with Westminster College and Star Radio to donate toys to the Grafton Giving Tree for underprivileged children in the city. At its recent agm Meet Cambridge and representatives from across its 50 member venues collected gifts for local charities in Cambridgeshire, including support for Ukrainian families in the area. Now in its 18th year, The Grafton Gifting Tree had a goal to collect 10,000 toys and gifts for children and young people who not otherwise receive anything at Christmas. Andrew Bell, head at Meet Cambridge, said: “Our annual general meeting – a functional business meeting really, gives us a great opportunity to demonstrate how a little effort from many, makes a big difference to a few, and it feels good.”
