Cloud hosting specialist ramps up growth plans following acquisition by private equity firm

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A cloud hosting, disaster recovery and cyber resilience technology company is ramping up its growth plans following its acquisition by private equity firm MonacoSol. virtualDCS, based in Leeds, is the latest addition to tech and software-focused MonacoSol’s portfolio. Manchester-headquartered MonacoSol has taken a majority stake in virtualDCS for an undisclosed sum. The co-founders of virtualDCS – Richard May, John Murray and Dan Nichols – will remain with the business for the next phase of its journey. Following the deal, virtualDCS has moved its headquarters from The Waterscape in Kirkstall to larger offices at Wellington Place, a modern development in Leeds city centre. The new base will enable virtualDCS to accommodate a growing team in line with its expansion strategy. It currently has 22 staff, including developers, system analysts, network engineers and cyber security specialists, and expects its workforce to grow by around a dozen over the next 12 months backed by MonacoSol’s investment, with recruitment plans focused on expanding its commercial and technical teams. The business, which was founded in 2008 and turns over £2.8m, works directly with customers as well as through a variety of channel partners, including Phoenix Software, CCS Media and Vapour Cloud, that deliver its cloud services to their own client base. Customers of virtualDCS span sectors ranging from retailing, local government, hospitality, food wholesaling, healthcare, IT support and fuel supplies to research outfits and professional bodies. Clients include B&M Retail, The Rix Group and its diverse portfolio of businesses, and Achilles, a supply chain risk management software provider. The company delivers a range of cloud services, including a host of purpose-built Software as a Service (SaaS) products which enable companies to protect their data and enhance their cyber resilience and security. Richard May said: “This acquisition is a key moment in virtualDCS’s journey. By joining forces with MonacoSol, we’re gaining the resources and expertise needed to accelerate our growth and enhance what we offer to our customers. “It’s very much business as usual for our clients and, with the added firepower of MonacoSol, we’re in an even stronger position to innovate, expand our capabilities and deliver exceptional solutions. “I’m confident this partnership will drive the business to new heights while continuing to provide the level of service to which our customers are accustomed.” MonacoSol is the family office of technology and software entrepreneur Richard Beaton, who is its chairman. His sons Ollie and Eddie are its chief executive and chief financial officer respectively. In October, MonacoSol announced a war chest of £40m to power its acquisition strategy. It takes majority stakes in B2B software and technology businesses and provides them with capital to help them grow. The other companies in MonacoSol’s portfolio are Open ECX, an AP automation software provider, recruitment vendor management platform Hiring Hub and graduate sales and training recruitment provider Furza, which are all based in the north. Ollie said: “We are extremely excited by the acquisition of virtualDCS. It’s an innovative cloud business with a knowledgeable team and a loyal customer base, and we are thrilled to be involved. “Alongside the financial investment, the MonacoSol team has a great deal of experience in the cloud technology industry to help support the virtualDCS team to accelerate the next phase of growth for the company.” MonacoSol was advised on the acquisition by Rebecca Grisewood at law firm Gateley, Colin Smyth and Jake Hodgson at RSM UK and David Taylor at Harts Chartered Accountants. Cathy Cook and Brad Stewart at Yorkshire firm LCF Law provided legal advice to virtualDCS on the transaction.

Manufacturing output contracts in the quarter to March

Manufacturing output volumes fell in the three months to March, at a slightly steeper pace than in the three months to February, according to the CBI’s latest monthly Industrial Trends Survey (ITS). Looking ahead, manufacturers expect output volumes to be broadly unchanged in the quarter to June. The volume of total order books in March was stable relative to last month, while export order books improved slightly. Both total and export order books are still well below their long-run averages. Firms reported that stock adequacy picked up compared with February, with the balance returning above the long-run average. Expectations for selling price inflation over the quarter ahead were largely unchanged relative to February, remaining above the long-run average. The survey, based on the responses of 344 manufacturers, found:
  • Output volumes fell in the three months to March at a steeper pace than last month (weighted balance of -18%, from -12% in the quarter to February). Manufacturers expect output volumes will be broadly unchanged in the three months to June (-2%).
    • Output decreased in 14 out of 17 sub-sectors in the three months to March, with the decline driven by the glass & ceramics, building materials and electrical goods sub-sectors.
  • Total order books were reported as below “normal” in March (-29% from -28%). The level of order books remained far below the long-run average (-13%).
  • Export order books were reported as below “normal” but improved relative to last month (-29% from -36%). This was still below the long-run average (-18%).
  • Expectations for average selling price inflation were broadly unchanged in March (+22% from +19% in February). Expectations remain above the long-run average (+7%)
  • Stocks of finished goods were reported as more than “adequate” in March (+16% from +4% in February), with stock adequacy now standing above the long-run average (+12%).
Ben Jones, CBI Lead Economist, said: “Conditions in the UK’s manufacturing sector remain subdued. Although there are some pockets of strength, notably in the aerospace and defence sectors, many firms continue to report that their order books remain weak. “Manufacturers responding to the survey reported that customers are generally nervous about proceeding with capital investments and are conserving funds ahead of upcoming increases to National Insurance and minimum wages, leading orders to be cancelled or at least delayed until later in the year. “While output expectations are not as gloomy as at the turn of the year, the sector looks set to remain in a holding pattern in the short-term. “Next week’s Spring Statement and continuing challenges to the public finances means a lot of the growth the country needs will have to come from the private sector. But businesses need a reason to grow and invest in uncertain times. “A number of measures could help boost confidence – setting an ambitious R&D spending target so the government can position the UK as a world leader for innovation or ensuring that the Apprenticeships Levy is fully flexible to allow companies to invest in a range of employee training, will go some way to delivering the sustainable growth the country needs.”

Arriva seeks approval for expanded rail services in Yorkshire and the Humber

Arriva Group has submitted an open access application to the Office of Rail and Road (ORR) to introduce direct rail services between Cleethorpes, Grimsby, and London. The plan would extend Grand Central’s open access route to Doncaster, addressing a 30-year gap in direct rail links from Cleethorpes to the capital.

The service will add four daily return journeys if approved, providing 775,000 additional seats annually. A Greater Lincolnshire Local Enterprise Partnership study estimates the Cleethorpes-London connection could generate up to £30.1 million per year for the regional economy.

Arriva’s open access model aims to improve connectivity without government funding by using underutilised network capacity. The company has also applied for additional Bradford-London and York-London services and is seeking to extend its track access rights until 2038. Arriva is the only UK rail operator managing national rail contracts, concessionary services, and open access routes.

Businesses in York and North Yorkshire cut jobs ahead of National Insurance hike

According to Sir Alec Shelbrooke, MP for Wetherby and Easingwold, small businesses in York and North Yorkshire are already reducing staff and freezing recruitment in response to rising employer National Insurance (NI) contributions.

From April, employer NI contributions will increase from 13.8% to 15%, while the threshold for employee salaries subject to the tax will drop from £9,100 to £5,000. Public sector organisations will receive grants to offset the cost, but businesses will bear the full impact.

Shelbrooke warned that many small businesses have acted preemptively, making redundancies or halting hiring plans to manage the additional costs. Larger firms in York, Harrogate, and Leeds are freezing pay for senior roles to cover higher wages for lower-paid staff on the National Living Wage.

He also raised concerns about removing Agricultural Property Relief from inheritance tax, which could force multi-generational farming families to reconsider their operations, impacting local food supply chains and rural economies.

This week, the issue will be discussed at North Yorkshire Council’s Thirsk and Malton area committee.

Lincolnshire solar farm approved despite land use concerns

A new 28MW solar farm near Bourne, Lincolnshire, has received approval from South Kesteven District Council. The project at Home Farm, Dyke Drove, will operate for 40 years and generate enough electricity to power 13,661 homes annually, reducing carbon emissions by 8,200 tonnes per year.

Landowner William Ash stated that the development will cover 6% of his landholding, with the rest remaining in food production. He emphasised the need for diversification due to financial pressures in the farming sector.

Developer Enray Power Ltd assured that construction will be brief, with minimal HGV traffic and no routes through Dyke. Once operational, the site will be unmanned except for maintenance visits.

Councillor Zoe Lane opposed the plan, highlighting that the land is among the most productive for agriculture. She warned that a 40-year energy project could lead to permanent industrial land use.

Lincolnshire County Councillor Sue Woolley noted two formal complaints from residents but acknowledged the landowner’s right to manage his property. She stated that any disruption from construction would be temporary.

Legal challenge halts landlord licensing scheme in Scunthorpe

A legal challenge has delayed the rollout of North Lincolnshire Council’s selective licensing scheme for private landlords in parts of Scunthorpe.

The scheme, approved in September 2023, was set to take effect on 20 March 2024. It required landlords in Crosby, Park, and Town Wards to obtain a licence, costing £955 for five years, and comply with regulations on safety measures and anti-social behaviour management.

The Crosby Landlords’ Association has filed for a judicial review, questioning whether the council followed proper procedures in approving the scheme. As a result, the council has suspended applications and will provide further updates on its website.

The delay leaves uncertainty for landlords and tenants, as the scheme aimed to improve housing standards. North Lincolnshire Council has yet to comment on the challenge.

£400m digital and film hub planned for Doncaster Waterfront

City of Doncaster Council is working with a developer on a £400 million transformation of the Doncaster Waterfront, aiming to establish a digital and creative hub. The proposed “Digital Cluster” includes a digital arena, film studio, hotel, multistorey car park, and around 300 residential units, including senior living accommodation.

The project is part of Doncaster’s 25-year City Centre Strategy, which the council recently approved. The development is expected to attract investment, create jobs, and support Doncaster’s goal of becoming a centre for digital technology. Remediation work on the brownfield site is already underway, funded by the UK Government and South Yorkshire Mayoral Combined Authority (SYMCA).

Sheffield and UK universities drive start-up surge and job growth

The number of start-ups launched with university support has risen sharply over the past decade, with higher education institutions playing an increasing role in business incubation and entrepreneurship training.

Data from the Higher Education Statistics Agency (HESA) shows a 70% increase in university-backed start-ups between 2014-15 and 2022-23, averaging more than 4,300 new businesses annually. A total of 38,750 companies have been established through university support since 2014.

Financially, student start-up turnover across the sector has surged by over 750% in the past decade, reaching nearly £5 billion. External investment in these ventures has also grown significantly, rising from £303 million to £1.35 billion—an increase of almost 350%.

These start-ups contribute to job creation, employing 64,384 people in 2022-23—up 177% over the past decade. With continued growth, Universities UK (UUK) estimates that around 27,000 new start-ups could be established through university support over the next three years.

Universities facilitate this growth through business mentorship, workspace provision, investor connections, and networking events. Three-quarters of UK institutions now offer enterprise-focused modules to equip students with entrepreneurial skills.

Universities UK has launched the “Unis Start Up the UK” initiative to highlight the role of university-supported businesses in economic development. Case studies include Bullion, a Sheffield-based bean-to-bar chocolate company founded by a Sheffield Hallam University graduate with the university’s enterprise team’s backing.

Ripple Energy faces collapse, putting 20,000 customers at risk

Ripple Energy has filed a notice to appoint administrators, raising concerns for its 20,000 customers. The company, which allows customers to co-own wind and solar projects to lower energy costs, is working with Begbies Traynor on restructuring.

Founded in 2017 by CEO Sarah Merrick, Ripple Energy secured a £21.8 million loan from Virgin Money last year to develop the 42MW Derril Water Solar Park in Devon. The project also received £20 million from institutional investors and is scheduled to be operational by 2025.

Ripple’s financial difficulties highlight alternative energy firms’ challenges despite growing demand for renewable solutions. The UK government and industry stakeholders are monitoring the situation as concerns mount over the stability of small-scale renewable energy providers.

Sheffield’s One Health Group begins trading on AIM

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One Health Group, a Sheffield-based provider of NHS-funded medical procedures, has begun trading on AIM, a market operated by the London Stock Exchange. Alongside the admission to AIM, the company has completed a successful capital raising of approximately £7.8 million. This will be used primarily to fund the firm’s first owned surgical hub. The surgical hub is expected to be operational within one year of construction starting and deliver between £6 million to £9 million of revenue per annum. Adam Binns, Chief Executive Officer of One Health, said: “I am delighted to announce One Health’s admission to AIM. This is a pivotal step in advancing our mission to provide NHS-aligned healthcare through patient choice and our scalable surgical hubs and patient centric service. “This milestone, bolstered by a successful capital raising and strong institutional investor confidence, will enable strategic expansion while maintaining our commitment to reducing patient waiting times and delivering clinical excellence with sustainable growth. “I extend my gratitude to our team, advisers, and shareholders for their support as we commence our next chapter supported by our listing on AIM. “I am excited about the prospects for the business, particularly our inaugural surgical hub, which will integrate operational excellence and technological innovation to benefit NHS patients and the broader healthcare system.”