Dormant companies place £600m drain on business purse, claims report

Stuart Pearcey
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Dormant companies place £600m drain on business purse, claims report
UK businesses are wasting more than £600m each year on keeping unused ‘dormant’ companies open, says audit, tax and advisory firm Mazars. There are currently 681,000 companies in the UK currently registered as ‘dormant’ with Companies House – meaning it is not currently trading or generating any income. Keeping a dormant company open costs at least £900 per year in audit, accounting and compliance costs. This figure would be even higher were the company required to file tax returns. Listed companies alone have 18,700 dormant UK subsidiaries, costing around £17m in fees to keep open each year. One major UK bank has 256 dormant subsidiary companies. Simon Chandler, Partner and Head of Restructuring Services at Mazars, explains that removing these unused companies can cost little more than keeping them open for a single year. This one-time cost can save many thousands of pounds in future audit, accounting and compliance costs. Mr Chandler adds that many corporates would benefit from undertaking ‘corporate simplification’ projects to close down these dormant companies and avoid wasting money. He says that for companies with a large number of dormant subsidiaries, the cost of closing them down in bulk can in fact be lower than the cost of keeping them open for another year. Closing down dormant companies can also be a useful way to control risks. There have been cases where historic legal claims have arisen against a dormant company, triggering even more avoidable costs for its corporate owner. Mr Chandler says: “There are businesses that are wasting hundreds of thousands of pounds each year on dormant companies. “The value they get from these companies is almost certainly zero – there is only a relatively small number of cases where a dormant company genuinely needs to remain open.” “Companies generally put off the exercise of removing companies no longer needed within their group to deal with more pressing matters but cleaning up unused companies should be a standard part of corporate ‘housekeeping’ for businesses. It’s a quick and low-impact way to save costs and reduce risk.”

New grant aid scheme aim to support farming sector

Stuart Pearcey
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New grant aid scheme aim to support farming sector

West Lindsey District Council has secured almost £3m of Government funding to invest in agriculture and rural communities, and hopes to be able to launch schemes by next spring.

This announcement comes hot on the heels of the submission of plans to support rural community infrastructure and connectivity and rural businesses through the investment of just under £800,000 as part of the Rural England Prosperity Fund.

The Council has been asked to identify activities that concurrently match the objectives of the fund and address local rural business and community challenges.

Four specific interventions have been selected for Government approval by the Council including:

  • Supporting non-agricultural farm diversification such as conversion of a redundant farm building into a holiday let;
  • Supporting the development of West Lindsey’s Agri-Tech sector e.g. procurement of a 3D printer to develop concept models;
  • Improved community broadband provision and rural connectivity e.g. installation or upgrade of WiFi in a village hall or pub; and;
  • Improving rural community infrastructure e.g procurement of equipment to deliver a community service.

Councillor Owen Bierley, Leader of West Lindsey District Council, said: “I am confident that our communities and businesses will soon start to see the benefits.

“REPF now provides us with an excellent, locally-led opportunity to build on the impact of the wider interventions proposed in our UKSPF Investment Plan, supporting specific activities that have often missed out on accessible funding historically. Like UKSPF, the interventions have been identified based on evidence of local need and following highly positive stakeholder engagement and we look forward to working with them on shaping delivery and launching the schemes next Spring.”

Director of Planning, Regeneration and Communities, Sally Grindrod-Smith said: ‘We have been working hard to ensure we are in a good position to contract with Government on the UKSPF so this week’s announcement is most welcome. We have taken our work on the UKSPF and further embraced the opportunity to submit plans for the REPF.

“Our proposals include support for the Agri-Tech sector in the District, which is a strategic signal from the Council that the emerging local cluster is an important element of future economic growth. Capital grant provision will be catalytic by supporting the creation of higher value jobs and new economic opportunities – helping to level-up and address economic under-performance in the West Lindsey economy.”

ION Science acquires Analox Group

Tess Egginton
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ION Science acquires Analox Group
ION Science, the developer and manufacturer of PID gas sensors and instruments, has acquired Analox Group, a gas sensing and analysis manufacturer based in Stokesley, North Yorkshire. “This is a major step on our strategic growth journey,” explains ION Science Group Managing Director, Duncan Johns. “With strong brands in global markets, ION and Analox will continue to operate separately. However, both companies invest heavily in research and development, so by working together, we are really excited by the opportunities this acquisition presents for accelerating future growth. “Importantly, both companies share a common focus on customers’ needs, and especially product quality and reliability. We also both supply OEM sensors and engineered solutions, so customers can expect a broader range of solutions in the future. “From an ION Science perspective, this move will expand the range of measurement technologies that we will be able to offer, which means that in addition to VOCs, we will also offer detection and measurement solutions for a wide range of other gases.” Analox Managing Director, Emma Harbottle says: “Over the last 40 years we have designed and developed innovative gas sensing solutions that truly solve our customers’ challenges. We are extremely proud of the reputation we have built, especially in the defence, beverage & hospitality and laboratory sectors. “By working closely with ION we can continue to build on the success of both companies and I am excited to see what the future holds.”

CBRE appoints northern region head of office agency

Tess Egginton
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CBRE appoints northern region head of office agency
CBRE has appointed Joe Rigby as head of office agency for the northern region to continue delivering on strategies for its investor and occupier clients. Rigby has been with CBRE since 2014 and took over as the northern region’s head of occupier services in 2019, utilising his global expertise to advise occupiers on their real estate strategy and direction. The division has been key to assisting clients navigating the pandemic and changes to the workplace, delivering on regional workplace strategy and transactions for several multinational corporations. The team has also secured international mandates for clients.

Frankie Isherwood and Charles Parkinson will continue to drive the northern Occupier business whilst colleagues across the Manchester, Liverpool and Leeds offices will service the broad spectrum of investor clients. CBRE’s senior director Neil Mort will be transferring his extensive expertise within the office sector into the firm’s Property Management team as the business looks set for strategic growth, and team lead Jenny Smith will take on a UK-wide remit. The new roles will take effect from January 01, 2023.

John Ogden, MD of CBRE’s Northern Business, said: “The Occupier Services division has been an invaluable asset to our regional and international clients during turbulent market conditions and Joe has expertly led the team to huge acclaim. “To transition to head of office agency for our northern region is a natural step for Joe and our fantastic team will further prosper under his leadership. We are also delighted to announce the appointment of Neil Mort to our Property Management team as his unrivalled experience will bring a new viewpoint to the division and provide superb insight to our clients.” Joe Rigby said: “To be taking the helm of the northern Office Agency team is incredibly exciting and I am looking forward to working across our whole client portfolio to bring strategic advice and vision to projects and organisations.” Neil Mort said: “It’s an honour to be taking over the northern Property Management team.  I’m looking forward to working with the team to bring a best in class service to our clients and achieve our future growth plans.”

Barnsley firm secures funding to help food manufacturers cut plastic waste

Tess Egginton
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Barnsley firm secures funding to help food manufacturers cut plastic waste

A Barnsley-based manufacturer is hoping to grab an extra slice of the packaging market after securing support from the South Yorkshire Business Productivity Programme to build a new lab facility.

Flexpak UK has used the match funded grant to help it pioneer an ultra-thin form of recyclable plastic film that is half the thickness of a human hair. The groundbreaking work will help to reduce the amount of plastic packing used to preserve the life of fresh produce, as well as preventing single-use plastics from being sent to landfill sites.

Responsible for manufacturing over 20 million bread bags each month, as well as supplying packaging to the catering and pharmaceutical industries, the Wombwell-based business recognised that the development of a thinner film could not only reduce the amount of plastic used in the manufacturing process but could also result in significant cost savings for its customers.

To bring the new product to market, Flexpak realised that it needed to upgrade key equipment within its testing facility, allowing the strength, friction and durability of the new film to be accurately analysed. However, it quickly realised that the outdated machinery and software the company relied upon could not produce the accurate test results the company needed.

Fearing that the company would miss out on a golden opportunity to grow, Flexpak approached the South Yorkshire Business Productivity Programme to help secure the vital funds to purchase the  equipment needed to accurately assess the strength, durability and friction of the film, allowing the product to be seamlessly integrated into the manufacturing process.

Working with key account manager Paul Johnson, the company successfully secured a match funded grant, allowing the business to put its plans into practice.

As a direct result of the funds received, Flexpak has successfully pioneered a plastic film that is just 25 microns thick – the equivalent of a human skin cell. The film is capable of holding up to 10kg in weight and is already helping its customers to make significant cost savings.

Tom Rich, technical support manager, Flexpak UK said: “Developing a lab facility in Barnsley was central to our future growth plans. We’ve worked closely with Enterprising Barnsley for a number of years, and when we told Paul about our future plans, he advised us that our business may be eligible to receive help through the South Yorkshire Business Productivity Programme. We decided to apply, and the funding we’ve received has already made a significant impact upon our business.

“The equipment we purchased will enable us to bring new products to market more quickly, whilst also helping us to have a positive impact on the environment. Without the help we’ve received from the Business Productivity Programme, it’s likely that it would have taken us several years to perfect the new range. As a direct result of the investment we’ve received, we’re hoping to see our workforce in Barnsley increase to 15 members of staff, as well as reducing the amount of plastic being used by as much as 20%.”

Paul Johnson, key account manager, Enterprising Barnsley said: “Innovation is the lifeblood of many businesses, and Flexpak realised that to bring its ultra-thin film range to market, it was essential to ensure that it could match the performance of existing products available.  To achieve this, the accuracy of the testing results was vital.

“The funds provided by the Business Productivity Programme will help Flexpak to bring its products to market more quickly. The lab facility will also help the business to continue undertaking vital research and development work in bringing new and innovative products to market in the future, showcasing to the world the truly innovative work that is being pioneered in Barnsley.”

ABP names consultancy firm to support manufacturing programme

Stuart Pearcey
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ABP names consultancy firm to support manufacturing programme
Associated British Ports has appointed Turner & Townsend as project and commercial manager to provide consultancy support to its Port-Centric Manufacturing programme. The group owns over 950 acres of port-based development land across the UK and is advancing a series of development projects within its estate on sites which are considered suitable for manufacturing and distribution uses. The Port-Centric Manufacturing programme brings forward several sites to support the UK’s supply chain, manufacturing, and renewable energy sectors – in line with ABP’s vision of Keeping Britain Trading and supporting its role at the heart of the UK’s economy. Several sites have already been through a rigorous initial review to examine the scale of opportunity and market demand, and to assess the activities and works needed to bring the sites to market. Turner & Townsend will join other leading specialists to advance ABP’s preferred sites through the next stages of the development process, including detailed cost planning, implementation of masterplanning strategies, design development and site de-risking. Huw Turner – ABP Group Head of Property, said: “The appointment of Turner & Townsend on the Port-Centric Manufacturing programme reflects ABP’s determination to invest in our ports and create opportunities for growing jobs, levelling up communities and making the UK economy more resilient.” Steve Perkins, Director at Turner & Townsend, said: “Our appointment to ABP’s Port-Centric Manufacturing programme demonstrates the strength and depth of our experience in working with clients to unlock development sites with latent potential, utilising our knowledge and understanding of the UK’s manufacturing, distribution, and logistics sectors. “Our contribution to the programme will support both local and national economic growth, help create jobs, and make efficient use of land in highly accessible locations close to UK markets and with excellent sea routes to Europe and beyond. We are delighted to be a part of ABP’s team in taking these sites forward.”

Yorkshire charities can bank on support from S Harrison

Tess Egginton
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Yorkshire charities can bank on support from S Harrison
People in Leeds and York can bank on another year of support from property development company, S Harrison. The company has provided donations to two food banks that operate across York and Leeds and has been able to maximise its donation to Leeds South and East Foodbank and Bell Farm Foodbank by working with Tesco at Clifton Moor in York, who have helped to make up discounted consignments of food staples and Christmas treats. Ann Scott, Managing Director at S Harrison, said: “We are currently working on projects in both cities and as a business, we believe we have a real responsibility to contribute to the local communities in and around our developments. “It is not enough to simply provide the buildings and the spaces communities need to thrive. We are always pleased to help those who, often through no fault of their own, slip through the net and find themselves struggling. The foodbank movement is brilliant, and we want to help those who volunteer their time and resources to help others in need. Our donations will help those only-just-managing households to have a better Christmas. “The cost-of-living crisis, exacerbated by the fuel-price hike, has hit families hard.  Foodbanks are reporting an increase in demand for their services, often from those who in previous years have been donors themselves, and many of them are in work but barely managing. That’s why it is so important that those who can help do. “We are very grateful to Tesco’s community champion, Jacqueline May, and her colleagues for all their help in getting the most out of our financial donation and packaging everything up for us to deliver.” Leeds South and East Foodbank, which is part of the Trussell Trust, has five paid part time employees and 120 volunteers working in distribution centres across Leeds. Its development manager, Nathanya Lauerant, said: “This year things are tougher than ever.  We normally see donations double around this time but this year that looks unlikely to happen. People are really feeling the pinch. We depend on the generosity of individuals and businesses across the region, like S Harrison, to support the work we do.” The Bell Farm foodbank in York was set up in 2015 in response to the city’s flooding. Throughout the pandemic it was open seven days a week providing vital supplies to those in need, not just on the Bell Farm estate, but across the city. It is currently open six days a week and is part of a registered charity. The foodbank arm is run entirely by unpaid volunteers, and it requires no referrals before those in need can access support. As well as providing extra support at Christmas time, in school holidays the foodbank also runs a holiday hunger club to provide nourishing meals for schoolchildren who might otherwise go without. Hilary Platt, from Bell Farm Foodbank, said: “In the past couple of weeks we have seen a noticeable increase in demand with new people contacting us for help. We are near the hospital, and we even see hospital workers coming in for food parcels. “We are mostly funded through grants, but we always welcome donations from organisations like S Harrison, especially around Christmas. Last year, we provided Christmas dinner parcels with turkey, vegetables and all the trimmings for around 1,000 people.”

2023 Business Predictions: James Pinchbeck, partner, Streets Chartered Accountants

Tess Egginton
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2023 Business Predictions: James Pinchbeck, partner, Streets Chartered Accountants
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.  It has become something of a tradition, given that we’ve been doing this now for over 30 years. Here we speak to James Pinchbeck, partner at Streets Chartered Accountants. Looking to the new year ahead often comes with a mix of excitement and in trepidation as to what the next 12 months might have in store. Perhaps though in doing so it is useful to reflect on what one predicted for the last 12 months. Therein lies the rub, all too often and not least in a Vuca world (volatile, uncertain, complex and ambiguous) the predictions we have at the beginning of a period of time invariably don’t always turn out to be exactly as we thought. The one thing we have seen in recent years is there is little in the way of certainty. This aside, looking ahead to 2023, there is a real sense that the challenges around staffing and skills shortages will play an ever-important role on business performance and sadly customer experience and satisfaction. It is not unreasonable to think we will face further industrial action within the public sector, but also, we should be prepared for further workforce challenges within the private sector. This may be around not just pay, but also working arrangements along with mental health and wellbeing. In the belief that with adversity comes opportunity, we should more optimistically see greater heightened levels of innovation and enterprise. Certainly, as we all get to grips with the cost-of-living crisis we are likely to see the launch of new products and services that are born out of the problems and challenges we face. We should also expect to see much more in the news of start up and scale up businesses engaged in realising the potential of technology to improve productivity and people’s lives, whether this is using artificial intelligence, augmented and virtual reality, the internet of things, or the metaverse. As we continue to reflect on the pandemic and growing concerns about the impact of climate change, 2023 should see a greater appreciation of and focus on ESG (Environmental, Social and Governance) by not just corporate enterprises but also more and more businesses. Finally, 2023 is the Chinese zodiac year of the rabbit or to be precise the water rabbit. The sign of the Rabbit is a symbol of longevity, peace, and prosperity in Chinese culture. 2023 is predicted to be a year of hope. People born in a year of the Rabbit are called “Rabbits” and are believed to be vigilant, witty, quick-minded, and ingenious. Certainly such characteristics would be a real attribute for the year ahead.

Grimsby haulage company acquired by large Latvian logistics business

Tess Egginton
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Grimsby haulage company acquired by large Latvian logistics business
Kreiss SIA, a Latvian-headquartered European transport and logistics group, has acquired C Neil Dowson Limited, a haulage and distribution business based in Immingham Docks. Kreiss provides transportation for goods, including pharmaceuticals and cosmetics, hazardous cargo, and frozen and perishable goods, across Europe. The business currently has offices in six different countries, a fleet of 2,000 trucks and trailers, and employs around 2,400 staff. A team from Weightmans LLP, led by Paul Raftery, provided legal advice to Kreiss on the acquisition, its first in the UK. Founded in 1990 by Neil and Julie Dowson, C Neil Dowson provides haulage services throughout the UK. The business boasts a fleet of tractor units, skeletal trailers, forklifts, and its own yard, located one mile from one of Europe’s largest ports, Immingham Docks in Lincolnshire, all of which will be acquired by Kreiss as part of the deal. The acquisition provides Kreiss with a new base in the UK, enabling the business to further expand its international operations. Sergejs Zalizko, board member of Kreiss, said: “We are delighted to welcome C Neil Dowson in to the Kreiss Group. This acquisition will help us build out our UK base to enhance our services for clients in the UK. C Neil Dowson have an excellent reputation in the market, and we are pleased to be working with them and their team to continue to deliver first-class haulage solutions to customers.” Neil Dowson, operations director of C Neil Dowson, said: “Over the past 32 years of trading, C Neil Dowson company has been recognised by its customers, staff and suppliers for its loyalty and reliability within the market. These principles can now be carried into the future with the support of Kreiss behind us. Becoming part of Kreiss Group marks a new chapter for C Neil Dowson and I am confident that it will be a positive move for the business and its customers.” Kreiss was advised on the deal by a team led by Paul Raftery at Weightmans LLP, Chasz Coulsting at Crowe UK LLP and Stuart Laight at SJL Advisory. Sell side, C Neil Dowson was advised by Mark Daubney at Bridge McFarland LLP and Mike Beckett at Forrester Boyd.

East Midlands law firm reappointed to legal advisor group

Stuart Pearcey
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East Midlands law firm reappointed to legal advisor group
East Midlands full-service law firm Shakespeare Martineau has been reappointed to Orbit Group’s panel of legal advisers after a competitive tender process. Running for five years with the possibility of a one-year extension, Shakespeare Martineau has secured one of eight available spots on the panel, slimmed down from 10 in 2019. The appointment will see the firm – which has worked with Orbit Group for more than a decade – continuing to advise on a full range of legal matters spanning multiple teams and legal disciplines. Rachel Gwynne, head of social housing at Shakespeare Martineau, said: “While our relationship has developed over many years, a formal re-appointment to Orbit Group’s panel will allow us to continue to work closely together on a broad range of legal issues over the coming years. “As a result of this appointment, numerous teams across the business will continue working alongside Orbit Group to provide forward-thinking and pragmatic legal advice that supports Orbit in achieving its goals and ambitions. “Furthermore, as our clients adapt to change, so do we, and we have been investing in both people and technology to remain aligned to our social housing clients and responsive to the new challenges ahead. Our core social housing team is complemented by a diverse range of specialists from across the business all focussed on the sector, including energy, Marrons Planning, legal planning, dispute resolution, commercial, corporate and governance, data protection, compliance and regulatory. “In particular, it is immensely rewarding to be able to support the group as it delivers its strategic plan to improve the quality of its homes, services and communities, and its ambitious build programme to provide more much-needed affordable housing.” Founded in 1967, Orbit Group is one of the leading providers of affordable housing to buy and rent, managing a portfolio of 46,500 properties and serving more than 100,000 people across the Midlands, East and South East.
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