- What will be the fixed unit prices (and standing charges) from October 1?
- What practically will now change – will energy retailers suspend high quotes and contract offers and recalculate from October 1?
- Will those who have accepted hugely increased bills in recent weeks be able to renegotiate to bring their bills down to reasonable levels?
- As a small business normally gets quoted for at least 12 months, does that new quote include 6 months at a low rate and 6 months at a high uncapped rate? How does the energy retailer know who to quote extra support to, for the secondsix-month period?
Energy price news is good for business – but firms need details, and fast, says FSB
He said: “The statement leaves a lot of questions unanswered. It was a very high-level and sparse on detail so we will be working with the new Government to clarify what happens next. Small businesses’ instant reaction is that this is not enough information, yet, for them to plan.”
He said the unanswered questions included:
Revenue and profit growth continues at Gateley
Gateley, the legal and professional services group, has posted strong audited preliminary results for the year ended 30 April 2022 (FY22), which continue the firm’s pre and post IPO unbroken record of year-on-year revenue and profit growth, and out-performed market expectations set at the start of the year.
The company noted it has achieved significant organic growth and strengthened the business further through diversification and investment into new complementary service lines, while maintaining control on costs in the face of market specific and macro-economic headwinds.
It added that the balance sheet remains strong and the group has significant headroom in its banking facilities to invest in further organic and acquisitive growth opportunities.
During the year Gateley posted group revenue of £137.2m, up from £121.4m in the year prior.
Profit before tax meanwhile hit £18m, up from £16.3m.
Three earnings-enhancing acquisitions were completed in the period.
Rod Waldie, CEO of Gateley, said: “I am delighted with the group’s performance in FY22. We have delivered another set of strong revenue and profit growth figures whilst continuing to strengthen our balance sheet. Legal services generated solid organic revenue growth, comparing favourably with reported UK legal industry performance. Our consultancy service lines delivered impressive organic growth of 26.7% resulting in overall consolidated group organic revenue growth of 10.9%.
“I am particularly pleased that we completed three exciting consultancy acquisitions in the Period and achieved annualised consultancy revenue of over c.£32m as we continue to grow our complementary services, diversifying our offering and deepening our connections with our clients.
“I thank our ever-expanding client base for their trust and support throughout FY22 and for giving us the opportunity to work with them on high quality mandates. We remain committed to our purpose of delivering results that delight our clients, inspire our people and support our communities. We have a good pipeline of work and maintain our expectations for growth in FY23, despite the well-reported inflationary pressures. We look forward to continuing to grow the group, both organically and via acquisition.”
Leeds firm provides equity investment to support buyout
An equity investment from Leeds-based YFM Equity Partners has funded the buyout of Bedfordshire firm SOS Leak Detection.
David Wrench, YFM investment partner, said: “SOS Leak Detection has carved out a great position in the repair and restoration space, combining technology, exceptional training and industry-leading customer service levels to resolve escape of water issues efficiently, reducing waste and costs to insurers and property managers. As one of the only truly national providers, and with an extremely experienced MD at the helm, it is well placed to build on its strong foundations.”
The buyout was led by MD Jamie Nash, who will be supported by incoming chair Stuart Black and founders Nik Day and Brad Wilby, who will remain significant investors in the business and will continue to provide strategic and business development support.
SOS Leak Detection is headquartered in Wyboston Lakes, Bedfordshire, and has grown to a team of 35 including 25 specialist engineers. With significant experience in technology-led non destructive escape of water detection and associated remedial services, it mainly serves customers in the insurance sector including insurers, loss adjusters and property managers. , working across the UK. Its award-winning service within domestic and commercial settings has resulted in SOS Leak Detection resolving more than 15,000 escape of water instances over the last three years. This approach has led to an excellent track record of customer satisfaction via minimal on-site disruption and damage, ultimately improving the customer journey and reducing overall reinstatement costs for the insurer.
Number of unfilled vacancies is still too high, according to British Chambers of Commerce
Against the backdrop of spiralling costs, firms are struggling to fill vacancies, according to Jane Gratton, Head of Policy at the British Chambers of Commerce.
She said: “With firms doing their best to keep afloat during a period of spiralling costs, they are also facing an extremely tight labour market which is further impacting their ability to invest and grow.
“Despite a second month of a decrease in job vacancies, the overall number of vacancies in the labour market remains high. With more than 1.2 million unfilled jobs across the country, labour shortages have reached crisis levels for businesses across many sectors and regions.
“During a period of increasing inflation, and a stagnant economy, we cannot afford to let recruitment problems further dampen growth.
“The cost-of-doing-business crisis is intensifying the challenges present in the already tight labour market, as it is having a significant impact on firm’s abilities to invest in the workforce. As rising costs force businesses to put investment plans on hold, budgets for people training and development are taking a hit.
“Government can help by reducing the upfront costs on business and providing training related tax breaks, increasing flexibility in the apprenticeship levy, and ensuring job seekers have access to rapid retraining opportunities.
“The Shortage Occupation List must also be reformed to include more jobs at more skill levels, to give firms breathing space to train and upskill their workforce.”
Chamber welcomes Government intervention on business energy bills
West & North Yorkshire Chamber of Commerce has welcomed government intervention by introducing a price cap for business energy bills.
Mark Casci, the organisation’s Head of Representation and Policy, said: “In introducing a six month freeze for all non-domestic energy users, businesses, charities and the public sector now have financial certainty heading into the winter.
“We further note the three-month review point and recognise that this will give firms time to factor in plans for the remainder of the cap.
“However, given that the freeze is only set to last for six months, and that firms are facing myriad challenges from the labour shortages, supply chain disruption and rising raw material costs, it is our view that business investment in the short term is likely to remain low.
“Businesses such as those in the hospitality sector will need further support in the longer term if they are to remain viable and retain staffing levels.
“More widely, a long-range plan will give companies the confidence they need in order to grow their bottom lines.”
Responding to the plans on future energy provision, Baroness Ruby McGregor-Smith, President of the British Chamber of Commerce, said: “We welcome the commitment from the Government to review the UK’s long term energy strategy. It is vital to give business confidence on the continuity of their power supplies and future price stability.
“We must not abandon our Net Zero targets and action must be taken to support business with the switch to more energy efficient technologies and practices.
“The UK is already a world leader in the development of wind power technology and the shift to a more diverse energy mix involving renewables and nuclear power must remain central to our plans.
“But this will not happen overnight and using the UK’s oil and gas reserves to ensure our energy resilience during the transition is a sensible path to take, provided this does not jeopardise our Net Zero targets.”
Manchester school lettings business acquires North Yorkshire counterpart
Manchester-headquartered Vivify has acquired fellow school lettings business Community Hire, based in North Yorkshire, in a move that allows Vivify to expand its work in assisting schools to hire out their spaces to local community groups outside of teaching hours.
Vivify now works with over 80 schools throughout the country, giving them a platform to generate additional income and leverage their facilities for the benefit of the wider community. Schools are facing increasing cost pressures, including rising energy costs, and the Vivify model provides a platform to create additional revenue with no incremental costs.
Community Hire was founded in 2020 by Jon Goodrick in Tadcaster. The platform has quickly grown to a team of 30 and currently works with 16 schools predominantly across Luton, London and Bristol.
These schools will now form part of the Vivify network, which is already enabling private clubs, groups and grassroots teams to access high-quality leisure facilities in their local area.
Russell Teale, CEO at Vivify, said: “Community Hire has achieved an impressive amount in such a short space of time. With the community lettings market so fragmented, this was a great opportunity to invest in a like-minded company to enable us to grow market share and help more schools and communities across the country.
“Our social purpose drives us every day as we continue to scale quickly. This acquisition is a great geographic fit for Vivify and will help us generate vital incremental revenue for schools across Luton, London and Bristol. With over 39% of sporting facilities locked behind school gates, we’re delighted to be opening more doors to local communities to provide access to facilities leading to a happier and healthier lifestyle.
“We already facilitate thousands of visits across our partner schools every year and we’re looking forward to working closely with the Community Hire team to continue that growth.”
Vivify’s growth follows a funding injection led by Arete earlier this year.
The Arete team, led by Simon Lord, Andy Critchley and Briony Fagan, who have been working closely with Vivify since first investing in the platform in 2020, said: “Platforms such as Vivify and Community Hire have already proven that there is a latent market for school facilities to be more easily accessible by external groups to unlock benefits for the wider community, especially during this financially challenging time.
“Vivify’s acquisition of Community Hire is a strategic step in the company’s growth plan and now with this expanded presence in schools in the south of the country, we’re looking forward to working with them to develop this further.”
The deal was led by Arete Capital Partners, Simon Lord, Andy Critchley, Briony Fagan with legal advice from Hill Dickinson, Matt Noon and Elan Iorweth and tax advice from Claritas, Matt Hodgson and Peter Hully.
Regional leaders make new offer for future of Doncaster Sheffield Airport
South Yorkshire’s Mayor Oliver Coppard, the Mayoral Combined Authority (MCA) and Doncaster Council have found a credible consortium interested in operating Doncaster Sheffield Airport (DSA).
The consortium, which is said to include parties with extensive aviation experience, is part of a new offer to airport owners Peel Group.
Crucially Mayor Coppard and the Mayor of Doncaster, Ros Jones have written to Peel Group, asking to commence a new process of several months which enables the parties to meaningfully undertake due diligence and continue negotiations. The authorities are also offering to provide financial assistance to maintain jobs and support operations during the due diligence period.
South Yorkshire’s Mayor Oliver Coppard said: “Since Peel announced the review into DSA our biggest fear was that they were running down the clock while undermining confidence in the airport.
“So we launched our own search for potential operators and investors in the site, and we’ve found a strong and credible proposition which requires serious consideration. This is no guarantee but it is a significant step forward.
“We promised to explore all options; we’ve worked tirelessly to find a group which meets the criteria set out by Peel Group. It now falls to Peel to step up, and work with Doncaster Council and the consortium to find a solution that protects our region.”
Peel Group announced they were carrying out a 6-week review into the viability of the airport in July. The review period was extended until 16th September.
Since then, the MCA and Doncaster Council have engaged in active negotiations with Peel Group and have drawn together task groups consisting of MPs, Doncaster Chamber of Commerce and officials from the Department for Transport.
Yorkshire environmental waste business enters administration
Gareth Harris and Lee Lockwood of RSM Restructuring Advisory LLP have been appointed joint administrators of Harpers Environmental Limited.
The company was an industrial services and waste management business delivering a wide range of projects from its York and Teeside sites, with contracts predominantly in Yorkshire and the North East.
The company was working on several sites and employed circa 80 staff directly, alongside a number of sub-contractors. All work has ceased and employees have been informed that they are redundant.
Gareth Harris, RSM Restructuring Advisory partner and joint administrator, said: “Harpers Environmental Limited has been successfully trading for over 65 years and despite recently signing some large profitable contracts has been unable to address historic losses due to the pandemic and collect the cash required to continue trading.
“Whilst we have sought a buyer for the business in a limited timeframe it has not proved possible to secure a going concern sale and sadly the directors have had no option but to shut the business down and appoint the joint administrators. As joint administrators, we remain keen to discuss a sale of assets with any potential interested parties.
“The joint administrators and the directors are currently trying to work with customers to ensure a smooth handover of contracts to alternative providers.”
Transformation of Harrogate retail unit into mixed use development competes
A two-year project to transform a vacant retail unit on one of Harrogate’s most prominent streets has completed.
The boarded-up shop on Cambridge Street was purchased by Broadland Properties in 2020 and the 25,000 sq ft former Topshop store has now been reconfigured into a mixed-use retail and leisure development.
Construction firm JP Wild was the main contractor and Leeds property consultancy GV&Co has project managed the development over the last 24 months.
Associate director, Matt Harriman, from GV&Co’s building surveying project management team, said: “It’s great to see this scheme come to such a successful conclusion, with an impressive line-up of new retail and leisure tenants taking their place on this busy Harrogate high street.
“The unit had been vacant since 2017 and we managed the extensive enabling works to divide the property into separate units, with new services and several structural changes to suit the revised layouts, as well as external refurbishments over three phases. These included new windows, stone cleaning, and stonework repairs.
“Now fully let and brought back to life with Sainsbury’s, Cosy Club and Skipton Building Society all in place, we have thoroughly enjoyed working with a big project team that included engineers, GGP, architects, DLA, RGP building control specialists, Ball and Berry letting agent, Robinson Webster managing agent, Ryden, Brentwood Consulting Engineers, and contractor JP Wild for Broadland Properties.”
Leeds remortgage processing firm acquired by Australian group
Australian group, PEXA has agreed to acquire remortgage processing firm Optima Legal from Capita.
Optima Legal is a high-volume remortgage processing firm headquartered in Leeds that provides legal services in the UK remortgage market. It is one of the largest mortgage processing firms in the UK, with approximately 22% share of the remortgage market and direct relationships with six of the UK’s top eight lenders.
The acquisition supports PEXA’s growth plans in the UK digital conveyancing market.
PEXA Group Managing Director and CEO, Glenn King, said: “The acquisition of Optima Legal presents a fantastic opportunity to facilitate the roll-out of digital property settlements in the UK.
“In Australia the market understands and has already largely embraced the benefits of a digital property settlement solution, so we look forward to demonstrating that value to a new audience. A recent consumer survey conducted by PEXA concluded that as many as one in five UK mortgage borrowers looking to remortgage in the past 24 months abandoned the process altogether.
“A digital settlement solution will deliver improved accuracy and efficiency while reducing costs. Given the significant volume of remortgaging activity in the UK market – and with volumes expected to increase as interest rates continue to rise – more streamlined systems are urgently needed for the benefit of conveyancers, lenders and, ultimately, borrowers.”
The acquisition of Optima Legal will be funded from PEXA’s existing cash reserves and is subject to customary transaction conditions and approvals, including from the Solicitors Regulatory Authority of England and Wales, and is expected to complete before the end of the calendar year.
