Bankruptcies rise 11%
One of the country’s leading insolvency practitioners warns more people are choosing to enter an insolvency process as the cost-of-living crisis bites hard.
The warning comes as latest monthly insolvency statistics for October 2022 reveal bankruptcies (up 11%) and Individual Voluntary Arrangements (IVAs, up 18%) both increased compared to the previous month.
Compared with two years ago, the number of IVAs in October was up 32% – an enormous increase as individuals continue to deal with the ever-growing debt crisis.
Jonathan Amor, Insolvency Partner at Azets in Yorkshire, the UK Top 10 firm, said:
“All forms of personal insolvency, where a debtor chooses to enter a process, increased in October. This is sad evidence that the cost-of-living crisis is starting to bite really hard, and individuals are feeling they have no alternative but to enter bankruptcy.
“Unfortunately, these numbers are likely to continue to increase as the living and tax burdens rise, companies continue to enter insolvency with the inevitable redundancies that follow and the sheer fatigue that comes with carrying a continual burden of debt.
“With Christmas approaching, it won’t be surprising if many families scale back their Christmas spending and have no option but to focus on essentials instead. “This will of course affect the high street and the ramifications of reduced consumer spending on non-essential items will ripple through to the retail sector. There is the potential for a spiral increasing debt to occur which families may struggle to recover from.”
50% revenue increase brings record £15m turnover for Kirklees retailer
‘Bricks and clicks’ bed retailer, Bedkingdom whose flagship showroom is based in Heckmondwike, has risen early from the economic pressures of the pandemic to record a 50% leap in year-on-year revenue, taking its turnover to more than £15m.
This huge increase over just 12 months, is another landmark in the company’s steep growth trajectory, which has seen its turnover inflate from just £2m only five years ago and keeps it well on track to achieve its ambition of a £20m turnover before the end of 2023.
Bed Kingdom is using this growth success to invest strongly in its people, both through recruitment and professional development. Over the last year the company has tripled its number of employees to 30, across all facets of the business. New internal promotions and staff hires brought on board are giving the retailer the boost it seeks to enable it to develop new, previously unexplored avenues.
Bed Kingdom founder and managing director, Ashley Hainsworth said: “We’re incredibly proud of the way our business is growing and developing and delighted to see families coming to small businesses like ours to rejuvenate and improve their home and give them a great night’s sleep.”
Record quarter as lender Bergen Finance gains momentum in maiden year
Secured lender Bergen Finance, which launched last December, is celebrating a record quarter on the back of a strong first half of the year – having lent £30m in its initial six months of trading, it has now almost doubled its deals value, lending £29m in Q3 2022 alone, including seeing the completion of its largest transaction so far. With transactions approved and in legals, Bergen have expectations to close over £100m in first year of trading.
The business, which has an offices in Leeds, as well as London and Manchester, provides real estate-backed loans to a diverse range of corporate borrowers across the UK. After completing 11 deals between January and June 2022, it has now lent £59m in 2022 to date in deals across the UK.
Having been established to fill a need for short-term real estate lends which may not fit the strict criteria of traditional high street lenders, Bergen Finance’s ability to provide businesses loans of between £500k and £50m, is proving an attractive proposition.
Managing director Andrew Ward, who has many years’ experience in the sector, says: “We are finding that there are many viable businesses out there requiring finance, whether for growth and acquisition opportunities or for short-term cash flow, who, despite having significant land and property assets, are struggling to secure funding from traditional lenders.
“As we are backed by Arrow Global, a leading European investor and alternative asset manager, we have substantial funds behind us and are able to be more flexible and agile. We have proved able to support SMEs across England and Scotland, particularly for loans of £5m plus. We are also receiving a large number of enquiries from Ireland and are currently looking at a number of deals there.”
Director Adrian Hogan adds: “The business has got off to a really strong start and we are very quickly establishing a name for ourselves as an independent lender that is able to respond swiftly, working across all sectors and areas of the UK and Ireland. Increasingly, we are seeing finance brokers and debt advisory businesses coming to us to introduce deals on behalf of clients in non-standard lending situations, knowing that we are not constrained by the rigid mandates of an outside funder.
“We are already well on our way to reaching our target of investing more than £100m in our inaugural year of trading, and we are now planning to grow the team to enable us to continue to deploy our funds to meet the rapid timescale needed by many businesses.”
Max Lewis of Arrow Global commented “Bergen Finance has gained real traction with borrowers. Bergen’s reliability and ability to finance more complex deals, is gaining increasing market traction, especially at a time where market conditions are volatile and other lenders are becoming increasingly unreliable”
Forgemasters help in pursuit of ‘holy grail’ of green energy production
Sheffield Forgemasters will make a trial forging to help in the the development of a pioneering green technology demonstration plant for fusion power – hailed as the holy grail of green energy generation.
The critical ring component, being made for Canada’s General Fusion, will confirm specifications for the next phase of the programme, to create a thick-walled fusion vessel designed to withstand the extreme high temperatures and compressive forces needed to create fusion energy.
The trial ring’s specifications match the 11 rings planned for the fusion demonstration machine. It will allow the engineering team to validate performance of the high-strength steel alloy, finalise the vessel design and confirm the manufacturing process for the fusion reactor.
David Bond, CEO at Sheffield Forgemasters, said: “Fusion is the holy grail of green energy sources and uses the same processes which power our sun, with the potential of virtually unlimited supplies of low-carbon energy.
“At Sheffield Forgemasters, we pride ourselves on our innovation, and have extensive knowledge and experience in establishing practical manufacturing solutions for disruptive technologies. We are thrilled to be a part of this project and actively working to bring fusion energy to the world.”
The fusion demonstration machine will create fusion conditions, including an internal temperature of 100 million degrees Celsius in a power-plant-relevant environment. Its results will provide the information needed to design and build a commercial pilot plant which could generate electricity at an affordable price.
Greg Twinney, Chief Executive Officer at General Fusion, said: “Sheffield Forgemasters brings to this project over 200 years of expertise creating complex steel components. Teaming up with world-leading specialists allows us to focus on our commercialisation plan and stay on pace to generate zero-carbon electricity by the early 2030s.”
To create the trial ring, a large steel ingot has been forged in the UK’s largest open-die press, forming the steel into a donut shape with a diameter of just over three metres. The ingot will subsequently be rolled and expanded into a larger, thinner ring, spanning 7.6 metres in diameter.
56 holes will be drilled into the 42-tonne ring, replicating holes that will transmit high-pressure gas from the compression drivers to a spinning interior rotor in the fusion demonstration machine. The pressure change will push smaller pistons to collapse General Fusion’s proprietary liquid metal liner around hydrogen plasma and create fusion.
York considers changing rules for city’s pavement cafes
York City Council is proposing changes to its licensing guidance and process for pavement cafes.
A review requested by Executive recognises the impact of pavement cafés on access across the city since the guidance on their operation was deregulated by the Government to support businesses during the pandemic.
Senior councillors will be asked to recommend a number of changes to the council’s licensing requirements. These would see pavement cafés in pedestrianised streets allowed on footways only if 1.5 metres remained for people to get past (width increased to 2 metres in high footfall areas, for example busy junctions, near bus stops, etc).
In addition, the recommended changes will also improve guidance on setting up a pavement café for businesses and the number of enforcement notices served before enforcement action is taken will go down from three to two letters.
A regular panel will be set up, where York groups and communities can feed back on their experience of pavement cafes. This would then inform any licence reviews, possible access improvements and enforcement action where required.
The updated licensing guidance also requires the licence holder to undertake counter terrorism training to build on work to protect everyone in the city centre.
Councillor Ashley Mason, Executive Member for Business and Strategic Planning, said: “Whilst pavement cafes are likely to remain for the long term, they are no longer part of an emergency response. A review of the guidance and conditions permitting them has been necessary to recognise and limit their impact on residents and visitors.
“The changes in guidance mostly revert to principles which existed prior to COVID, whilst enabling qualifying businesses to gain licenses quicker and cheaper. When adopted, the new guidance will be used to review applications to renew short-term licences issued for next year. We are committed to continue supporting business, but it must be done with access in mind to ensure the city centre is safe, thriving and accessible for all.”
New wagon fleet will reduce transport emissions for Drax power station
A new fleet of British-made rail wagons will enable Drax to strengthen its supply chain and reduce emissions from transport.
The Selby-based organisation is expanding its rail fleet by investing in 30 new rail wagons to deliver the biomass it needs to generate enough renewable power for four million UK homes at its North Yorkshire power station. The upgraded high-capacity wagons built by British firm WH Davis will help to further reduce Drax’s carbon emissions and make its biomass supply chain more resilient and efficient. Drax’s fleet of 225 rail wagons, the first of their kind in the world, were designed and developed by Lloyd’s Register Rail (now Ricardo Rail) and Mansfield-based WH Davis – the UK’s last independent freight wagon manufacturer. The new wagons have a 30% higher capacity, allowing them to carry 71.6 tonnes of biomass each, reducing the number of rail journeys required and reducing supply chain emissions. The first of the new wagons is expected to come off the production line early next year and go into operation delivering biomass from the Port of Tyne to Drax, reducing emissions on this route by over 25%. Bruce Heppenstall, Drax Plant Director, said: “Our biomass trains deliver up to 30,000 tonnes of biomass to the power station each day, enabling Drax to power millions of homes and businesses across the UK with reliable, renewable electricity and support energy security. “It’s therefore vital that we have a robust supply chain and investing in these new wagons will further increase our resilience and cut carbon emissions on our Tyne to Drax rail route by more than a quarter, whilst continuing to support thousands of jobs across the North, including at WH Davis and Davis Wagon Services’ facilities.”Catch-up on Business Lincolnshire’s Fit for Business podcast with CDI Alliance
The successful ‘Fit for Business’ podcast will be wrapping up this month, so now’s the time to catch-up on all previous episodes to help your local business thrive in today’s economy!
Having launched in July this year, the fortnightly ‘Fit for Business’ podcast series is coming to an end for 2022, but with all episodes available to stream anytime, there’s no reason why businesses can’t catch-up on all the latest, expert business advice whenever they want.
Designed to support both current business owners and those who are thinking about starting their own company, the podcast series has helped a number of businesses flourish in our local economy, becoming a vital asset for entrepreneurs across Greater Lincolnshire and Rutland wanting to successfully grow their enterprise.
Hosted by business expert Guy Lewis, co-director at the CDI Alliance, the 20-minute episodes have covered various topics including legal structures, health and safety practices, sustainability goals and more.
Over the last six months, the podcast has welcomed guests including health and safety expert, Anna Maxwell, sustainability expert, David Knight, and business coach and consultant at Stuart McFarlane Associates, Stuart Mcfarlane-Bedford, all offering their own unique insights and specialist advice.
Guy Lewis, host of the podcast, said: “We’ve had a great run on this podcast series, and it’s been so great to see its success grow over the last six months. We carefully selected topics that we feel are important to businesses to help them thrive, grow, and ultimately make them more profitable.
“The subjects we’ve discussed so far have been really useful for new and existing SMEs, and we hope we’ve answered some of those tricky questions that many business owners are afraid to ask or unsure of who to go to when they’re first starting out. We created this podcast to allow people to access this information at a time that suits them – whether this is during a coffee break at work, an early morning dog walk, or even during a drive back from the office.
“We’re so passionate about helping businesses grow and flourish in our local economy, and I hope our expert advice has gone some way in eliminating those barriers that new businesses may come across.”
You can catch up on Business Lincolnshire’s Fit for Business podcast on all major streaming platforms or online here: businesslincolnshire.podbean.com
You can find out more about the Lincolnshire Business Growth Hub online here: www.businesslincolnshire.com/start-and-grow-my-business/grant-and-support-finder/growth-lincolnshire-gllep/
Castleford Peugeot dealership transitions to employee ownership
Castleford-based Peugeot dealership Peter Ambrose (Castleford) Limited has transitioned to become an employee-owned business after Peter Ambrose, founder and joint shareholder, sold the firm to the newly formed Peter Ambrose (Castleford) Limited Employee Ownership Trust.
Peter Ambrose established the business in 1999. Over the past 23 years it has grown to become one of Yorkshire’s leading dealerships thanks to its range of new and used cars and commercial vehicles. On average it sells 1300 vehicles each year and has an annual turnover of c£25m.
Creating an employee ownership trust (EOT) provides a great way for business owners to sell a controlling stake in their company to realise their value whilst passing the company into long-term employee ownership. The EOT is operated by trustees, and the beneficiaries are the employees of the company at any given time.
Peter Ambrose said: “It’s a very exciting time for the company with lots of opportunities as we move into a new age that will be more and more dominated by electric and hydrogen vehicles. I knew I was going to sell the business one day, but I wanted the structure to be right and the option of creating an EOT really appealed to me.
“We’ve always put our people at the heart of our operations so this option felt like a natural transition as the business will remain in the hands of those who have made it what it is.”
Peter added: “I originally bought the company from Peugeot 22 years ago under a management buyout scheme so it feels like we’re coming full circle as the employees will have a similar opportunity to further grow the business for the benefit of our customers as well as current and future staff.
“I will continue to work closely with the management team, supporting them to ensure we continue to develop and maintain our philosophy of putting the ‘Customer First’ in all our transactions.”
Lawyers from Muckle’s corporate and private client teams supported the transition. Adam Rayner, partner in Muckle’s corporate team led on the main legal aspects of the deal including the establishment of the EOT as well as advising the Ambrose family on the sale of the business to the trust. He was supported by Julie Garbutt, partner in the private client team, and Hayden Richards, corporate solicitor.
Adam said: “We were delighted to act for Peter and help with the continuation of the successful business in its new chapter under employee ownership. This is a fantastic step for the company, and I look forward to witnessing its continued growth. We wish Peter, the business and all its employees every success in the future.”
Bury-based PM+M, provided tax and transaction advice to the company, the shareholders and the trustees of the new EOT. Brabners provided additional legal advice for the Trustees, whilst Tony Tinker of TT Business Services Ltd delivered accounting support.
Business looking to put Hebden Bridge back on the map as ‘Trouser Town’ secures £125,000 loan
Two friends who set out to put Hebden Bridge back on the map as ‘Trouser Town’ have secured a £125,000 loan from NPIF – Mercia Debt Finance, which is managed by Mercia and is part of the Northern Powerhouse Investment Fund (NPIF), to help expand their menswear business.
Brant Richards and Ed Oxley established HebTroCo in 2016 to supply high-quality products from British manufacturers. The idea arose from a conversation in a local pub about the history of Hebden Bridge, which in its heyday made 20,000 pairs of trousers a week.
The two men set up a crowdfunding campaign to sell 176 pairs – a week’s production from the town’s last remaining trouser factory. After the entire batch sold in five hours, they quit their jobs to set up their clothing business.
Brant, a former head designer with Planet X bike company, and Ed, a former massage therapist, didgeridoo instructor and mountain bike guide, now design and commission products from factories throughout the UK.
The range includes Yorkshire wool jumpers, blankets woven in Huddersfield, jeans and jackets made in Lancashire and Leicestershire, socks from Aberdeenshire, T-shirts and sweatshirts from Greater Manchester and shirts and shorts from Greater London.
Where possible, the company also sources raw materials from the UK. It supports local charities and uses only recycled, plastic-free packaging, with goods dispatched to the local Post Office on electric bikes.
HebTroCo has established a loyal customer base, with around 50% of all sales coming from returning clients. Customers include TV presenter and author Adrian Chiles. The company has had a four-fold increase in turnover during the past two years to reach £1.2m in the year to the end of January. It is on course to achieve a further 20% increase in the current financial year.
Having recently moved to larger premises on the Topland Country Business Park, the funding will enable it to create three new jobs, buy additional stock and further expand its product range.
Brant Richards said: “Over the last six years we’ve grown the business and have proved there is a huge appetite for well-made British clothing. This funding will let us expand the depth and breadth of our product offering, growing our business, employing people locally and also supporting jobs in our supplier factories all over the UK too.”
David Wright of Mercia added: “Ed and Brant have built a great business that showcases British design and puts sustainability at the heart of its operation. HebTroCo has been growing steadily but has now reached the stage where it needs external funding to continue its growth. It is great to see this loan supporting growth as the business expands its range and sells more British-made products.”
Work completes on £14m extra care housing scheme in Brighouse
Work has officially completed on a £14m extra care housing scheme that is set to benefit older people across Brighouse.
Equans has collaborated with housing provider Home Group and Calderdale Council to construct the complex, which encourages independent living.
The extra care scheme, named Railway Bridge View, contains 65 one and two-bedroom apartments for over 55s, which are available for both affordable rent and shared ownership.
The project was supported by funding through the Homes England Shared Ownership Affordable Homes Programme.
Extra care developments such as this one enable people to continue living independently for as long as possible whilst having the constant reassurance of a 24-hour care and support provider on site.
Located on Bramston Street, the new development has been built in accordance with the Government’s Housing our Ageing Population Panel for Innovation (HAPPI) report. HAPPI was commissioned by Homes England on behalf of the Department for Levelling Up, Housing and Communities and the Department of Health and Social Care, to consider how best to address the challenge of providing homes that meet the needs and aspirations of older people of the future.
As a result of this, a range of amenities and multi-purpose spaces have been incorporated into the complex to encourage residents to come together, with facilities such as a hair salon, café, winter garden and various outdoor leisure areas.
The whole scheme is dementia-friendly and 10 of the flats have been thoughtfully designed to increase the quality of living for those with dementia. Clever incorporations of colour, texture and an open-plan layout help to reduce over-stimulation and create a safer, more accessible environment for residents to enjoy.
Jon Mangham, regional director for major projects at Equans, said: “Our partnership with Home Group has been a real success and the completion of this scheme is a very proud moment for us all.
“Railway Bridge View provides an alternative housing option for older people that focuses on encouraging independence whilst providing the reassurance of a 24-hour care system.
“This will make a huge difference to the health and wellbeing of residents who will not only be able to enjoy their free time in the various facilities across the complex, but can also be assured that as their needs change, support will be available.”
This latest development is one of five similar projects Home Group is delivering across Yorkshire. It is currently working in partnership with Leeds City Council to provide four developments as part of the council’s plan to create 1,000 spaces like Railway Bridge View across the city. One property is already occupied with a second close to competition, ground broke on a third and a fourth in the planning process.
Sally Parsons, director of housing and support at Home Group, said: “We see these developments as a real opportunity to support older residents in Yorkshire and provide homes which offer them the support they need while keeping their independence. We’ve worked with partners and residents to ensure our ‘extra care’ homes keep residents active and engaged with the community.
“We have a long running partnership with Equans, who understands the type of high quality provision and design we require, which you can see at Railway Bridge View.”
Cllr Scott Patient, Calderdale Council’s cabinet member for climate change and resilience, said: “It’s fantastic to see the ambitious Railway Bridge View scheme complete. The high-quality facilities support people’s housing and care needs and showcase the power of great partnership working.
“The complex is close to Brighouse town centre with good transport links, supporting our commitment to see Calderdale’s towns thrive and to help residents of all ages and backgrounds to contribute to the local economy and reach their full potential.”
Cllr Josh Fenton-Glynn, the Council’s cabinet member for adult services and wellbeing, added: “These are homes rather than a clinical looking care setting. We are determined that people aging well are able to live a full but supported life.
“Railway Bridge View is a brilliant example of our Age Friendly Calderdale commitment in action. It will support people to live a full and healthy later life by helping them to remain independent and active at the heart of their community.
“This is the only dementia-focused extra care scheme in Calderdale and one of few in the North. We’re really proud of this innovative scheme, which will act as a benchmark in how to integrate dementia-friendly apartments into a wider complex. It will be a platform to deliver future developments to meet the needs of people living with dementia.”
