Senior team completes management buy out at Leeds packaging firm
Leeds-based Fenton Packaging Solutions has been sold by way of a management buy out (MBO). Ownership of the company has passed from former Managing Director Bob Clarke to sales development director Chris Warren, supply chain director David Wilson, and finance director Sharon Dakin – who are now joint managing partners.
“Over the last 18 months, Bob Clarke had very much stepped back from the day to day running of the company with a view to considering a number of options regarding the sale of the business and to plan for his semi-retirement,” says finance director Sharon Dakin. “After considering a number of selling options, the MBO option was viewed by Bob as the preferred route for his exit from the company.
“As an MBO team we are very pleased to assume responsibility and ownership of the company as we feel that our continued involvement provides both a balanced and stable management platform to support the business moving forward. We are also a known, committed and visible management team and as such have been able to positively contribute to the improvement of the company over the last two years.”
Last year, the company relocated to a 65,000 sq ft site in Leeds and rebranded as Fenton Packaging Solutions. The company had invested over £1 million to streamline its operations, and put a new fleet on the road. A year later, the company has continued to expand and is now investing in the future.
“We recognise that the most important element of any business is its people,” says David Wilson. “We currently employ just over 40 full-time staff members, and we are now introducing a graduate program.
“We have also begun the process of becoming an accredited Investors in People organisation. In addition, we are actively investing in the latest and most advanced software systems to better manage the business, and that will also help us attract young talent, which will help secure Fenton’s future.”
The company is also planning to expand into international markets.
“Fenton Packaging began over 75 years ago, so together, the MBO, relocation, and rebranding – coupled with major investment in systems and people – represents a very exciting step in our long history,” concludes Sharon Dakin. “As managing partners, David, Chris and I are excited about the future and feel sincerely that that MBO solution is the best possible outcome for the business in the long-term.”
KCOM boss urges business conference to run event in Hull
Hull-based KCOM is backing the city as the ideal place for investment as a major national business conference.
Speaking at The UK’s Real Estate Investment & Infrastructure Forum in Leeds, company CEO Tim Shaw Mr Shaw said: “As a company with deep roots in the region we know what a fantastic place it is to for businesses to invest and thrive. With a supportive local authority, our world leading full fibre infrastructure, a great pipeline of tech-savvy talent coming through from local colleges, affordable housing and high standard of living, I’d urge all investors to take a closer look at Hull.” Hull City Council welcomed KCOM’s participation in the event saying the broadband provider’s commitment to the region showed how private investment in the region could flourish. Alex Codd, Hull City Council’s assistant director for economic development and regeneration, said: “We’re really looking forward to attending UKREiiF next week. It’s a fantastic opportunity to showcase what we have in Hull and what we have to offer for potential investors. “One of our unique selling points is being the first fully connected city and that was made possible by KCOM building a world-class full fibre broadband network in Hull.” The three-day event, which is being held at the Royal Armouries in Leeds, is attended by 6,000 delegates including 1,500 investors and developers. The Forum is supported by a high number of regional combined authorities, local councils and Government departments – as well as the largest developers and investors from across the UK and internationally. This event aims to gather all the key players, influencers and decision makers within the investment and real estate sectors to highlight investment and development opportunities in cities such as Hull, while creating new relationships to drive economic growth through development and regeneration. Founded in 1904, KCOM is one of Hull’s largest local employers and has invested around £200m in the area’s full fibre broadband network in the past decade and continues to play a leading role in the local community.Record number of companies raising money through Enterprise Investment Scheme
New figures published by HMRC show that the number of companies raising money through the Enterprise Investment Scheme (EIS) grew to a record high of 4,480 in 2021/22, a 19% rise compared to the previous year, with funding increasing to £2,305m, up by 39% over the same period.
The figures show that usage of the EIS bounced back following the pandemic and even surpassed the levels prior to the pandemic. In 2019 to 2020, 4,215 companies raised a total of £1,905 million of funds under the EIS scheme.
EIS investment in 2021/22 was largely concentrated in the Information and Communication sector which accounted for £785m of investment (34% of all EIS investment).
The Enterprise Investment Scheme (EIS) offers tax reliefs to individuals who subscribe for new shares in a qualifying company. This allows EIS companies to raise up to £5m each year to grow their business, up to a maximum of £12m over a company’s lifetime.
There are a number of qualifying rules for EIS. For example, the scheme applies only to companies that have a permanent establishment in the UK, are not listed on the stock exchange and do not have gross assets worth more than £15m before the EIS shares are issued (and not more than £16m immediately afterwards). The relief also only applies to new or relatively new companies, as EIS investment can only be received if it’s within seven years (10 years for knowledge intensive companies) of a company’s first commercial sale.
The new data also shows a similar trend with respect to start-up companies raising funds under the Seed Enterprise Investment Scheme (SEIS). The number of companies raising money through the SEIS also grew to a record high of 2,270 in 2021/22, an 8% rise versus the previous year, with funding increasing by 16% over the same period.
The Seed Enterprise Investment Scheme recently received a boost with increased limits from 6 April 2023. Under the SEIS, companies up to three years old (previously two years old) can receive a maximum of £250,000 (previously £150,000) of investment. Companies wishing to benefit from the SEIS must not have gross assets over £350,000 (previously £200,000) when the shares are issued and have fewer than 25 full-time employees. SEIS funds raised in 2023/24 are therefore expected to increase still further to provide valuable support for start-ups and young companies.
Commenting on the new figures, David Brookes, tax partner at accountancy and business advisory firm BDO, said: “The latest figures show an encouraging rebound in the numbers of companies benefitting from the Enterprise Investment and Seed Enterprise Investment Schemes. Both offer valuable funding opportunities for new and growing businesses, particularly in the tech space, which are so crucial in helping to drive economic growth.
“However, there are growing numbers of advance assurance applications for both EIS and SEIS that are being rejected which is a cause for concern. While it’s absolutely right that the tax authorities are alert to any attempt from parties to benefit from tax reliefs they are not entitled to, there is a growing sense that officials are being a little over-zealous in their interpretation of the rules which is hindering spin outs and follow-on funding for older companies.
“The complexity of both schemes and their qualifying criteria are also barriers to greater take-up, and there is a strong case for reform. For example, although the gross asset limit for SEIS companies has increased from 6 April 2023, the gross asset test for EIS qualifying companies remains at £15m. This was a figure first introduced 25 years ago. Raising this threshold to take account of inflation could provide an important source of EIS funding for ambitious and growing mid-market businesses that are currently unable to access growth capital.”
UK steelmake slumps to lowest level since the Great Depression
UK Steel, the trade association for the UK steel industry, says that high energy prices and weak demand are taking an enormous toll on UK steel production, with the amount of steel made in the UK during 2022 dropping to its lowest level since the Great Depression.
Production fell by 17% on the year to 6 million tonnes, says UK Steel, and efforts to boost the sector’s competitiveness need accelerating.
Steel trade activity reduced both in the UK and globally as supply chains were disrupted and demand has reduced. In 2022, UK market demand for steel fell by 15% to 8.9mt, only slightly higher than 8.6mt in 2020 during Covid, raw material costs remained at historically high levels and energy prices soared.
Gareth Stace, Director General of UK Steel, said: “High costs are hard to swallow and force production levels down. This February, Government announced policy plans for renewable levies, capacity charges and network costs to alleviate energy cost burdens for steel producers and improve competitiveness, but regulations may not all take effect until 2025.
“Government needs to back British-made steel now more than ever. The already challenging demand environment is only worsened by elevated energy prices. Steel companies in the UK are footing electricity bills of 60% more than our direct competitors in Germany.
“Statistics show the stark reality of how UK steel is suffering. British-made steel plays a key role within supply security against conflict and political sanctions. This is exactly why we are asking Government to implement its highly welcomed energy policy measures by April 2024.”
White Rose Rail Station takes shape as Spencer Group delivers for partners
Rail infrastructure specialist Spencer Group is making significant progress on the construction of a £26.5 million station in South Leeds.
Situated between Morley and Cottingley, the White Rose Rail Station will be located on the main trans-Pennine route to Manchester via Huddersfield.
It will be a two-platform station providing improved access to the adjacent White Rose office park, shopping centre and bus interchange.
The fully accessible station will include cycle storage next to the White Rose Park, along with improved walking and cycling routes between Cottingley, Churwell and Millshaw, and the White Rose Shopping Centre and bus interchange.
Hull-based Spencer Group is delivering the project for White Rose owner Munroe K in conjunction with Network Rail, the West Yorkshire Combined Authority, Leeds City Council and the Department for Transport.
Construction of the new station, which will replace Cottingley Rail Station, is scheduled to be completed later this year and is expected to open in early 2024.
Joe Bennett, Operations Director at Spencer Group, said: “We’ve been working closely with key stakeholders to bring the White Rose Rail Station to fruition and, as a local contractor, are pleased to play our part in helping our infrastructure in the North.
“Over the coming months, the commitment and hard work the partnership and key stakeholders have demonstrated in getting the scheme to this point will be rewarded with significant physical progress on the site.
“The erection of the lift cores and link bridge walkways, connecting the platform works already undertaken, will transform the look of the project and enable people to see the facility for the first time. It’s an exciting time for all involved.”
Mayor of West Yorkshire, Tracey Brabin, visited the site to see the progress being made on the project.
The visit included a first look at the steel frames for the new station buildings, which will house two lifts and the stairs to the station platforms. This work follows the installation of the station platforms on the railway line embankment.
Ms Brabin said: “We’re determined to create a stronger, fairer and better-connected region so that everybody has the same opportunity to get on in life. Investing in transport that supports economic growth is absolutely vital.
“I’m proud that together we’re investing £26.5 million in a new White Rose Rail Station.
“This investment will bring new opportunities for people in Cottingley, Churwell, Millshaw, Morley and beyond by boosting transport links and local regeneration, including housing and job growth.”
The scheme has received funding from the Leeds City Region Transforming Cities Fund, the Leeds Public Transport Investment Programme and £5 million from the Department for Transport’s New Stations Fund, alongside contributions from Munroe K.
David Aspin, CEO of Munroe K, said: “For a long time now I’ve had the ambition to bring a fully accessible new station to White Rose Park and to see it nearing completion is immensely rewarding.
“Delivering the UK’s very first railway station through public and private sector partnership has been a real testament to everyone involved.
“The new station can be the catalyst to unlock real economic development in this area of south Leeds, providing our local communities with better links to education and employment opportunities. Its location at the White Rose Park makes it accessible to many more people living in the area and beyond.”
Students from nearby Elliot Hudson College have taken part in work experience with Spencer Group at the site to learn more about the project and careers in the industry.
Rosie Quashie, Vice Principal at the college, said: “Work experience placements such as those our students have been able to access at the White Rose Rail Station construction site are so important.
“Working with the staff at Spencer Group has provided our students with a wide range of transferable employability skills and enabled them to gain invaluable experience of the scheme and the different career opportunities in engineering and construction, and this has really supported them in deciding their career destinations after leaving Elliot Hudson College.
“Many of our students rely on public transport and will benefit from the new station when it opens next year.”
BCC Director General urges Government to take more action to support business
Director General of the British Chambers of Commerce Shevaun Haviland has urged the Government to reconnect with business as firms see no progress on the barriers to growth.
At this week’s British Chambers of Commerce Global Annual Conference she urged Government to put business at the heart of its plans to revive the UK economy.
And with a General Election less than 18 months away she set out the keys issues that matter most to firms, and that only by addressing these could business confidence be regained after being battered and bruised by the pandemic, the fallout from the war in Ukraine, and last year’s political chaos.
she said: “As we move forward into an increasingly digital age, it’s vital that we answer the crucial questions that firms are asking.
“How can we use AI to revolutionise the way we operate? What policies could help us embrace its benefits? And how can we safeguard against negative consequences and ensure no one is left behind in this new digital age?
“At the Chambers, we’re led by one of Britain’s true digital pioneers. Our President, Martha Lane Fox has been at the heart of digital innovation. [We must] harness the transformative power of technology, tackle the challenges ahead and redesign our future.”
Emphasising the importance of international trade in growing the UK economy, she said: “Post-Brexit, the UK is figuring out its economic role in the world. Both exports and inward investment are facing growing competition.
“But it’s a problem we are well placed to help solve. We know how to find opportunities and partners all over the world and give businesses the tools to break into new markets.
“We are working to ensure that the UK continues to be a great place to invest.
“So that when global investors are deciding where to put their money, they see in the UK the conditions, talent, and access to finance that make it one of the best places in the world to invest.”
She went on: “The UK is a leader in green innovation but with the lack of direction by government, we are seeing the US and the EU moving ahead, and fast becoming a far more attractive opportunity for those businesses.
“This is a huge economic opportunity for UK Plc. New global markets for low carbon products and services are worth an estimated £1trn to the UK by 2030. Let’s not turn our back on that.”
Are you due a tax refund? HMRC would like to help you get it
HM Revenue and Customs is reminding employed workers they can claim a refund on work-related expenses directly through GOV.UK.
More than 800,000 taxpayers claimed tax refunds for work expenses during the 2021 to 2022 tax year, but while the average claim was £125, more than 70% of claimants missed out on getting the full amount they were due because they used an agent to make their claim instead of claiming directly with HMRC.
It is quick and easy to claim a tax refund directly through HMRC’s online portal on GOV.UK, and the only way to guarantee receiving 100% of the repayment – with no small print and no middlemen taking a cut.
Victoria Atkins, Financial Secretary to The Treasury said: “Nobody should miss out on the full claim of a tax rebate – and by going straight to HMRC people can avoid being left out of pocket because of unscrupulous repayments agents.
“Thanks to our Spring Budget reforms if someone no longer wants an agent involved in their claim, they’ll be able to cancel it so any future rebates will go to the taxpayer in full.”
Jonathan Athow, HMRC’s Director General for Customer Strategy and Tax Design, said: “Every penny counts and we want to make sure employed workers are getting what they deserve – their hard-earned cash straight back into their pockets. To make a claim just search ‘employee tax relief’ on GOV.UK. It is the quickest way of getting a tax refund on your work-related expenses and ensures you get 100% of the money back.” Submitting a claim through HMRC’s online portal itakes about 15 minutes. Customers can use the handy online tool to check eligibility and a full list of work expenses they can claim including:- uniforms and work clothing
- buying work-related equipment
- professional fees, union memberships, and subscriptions
- using their own vehicle for work travel (excluding journey from home to work)
CMA gets involved in Medivet acquisition of Barton vet practice
The Competition and Markets Authority has outlined preliminary concerns that the purchase of a dozen independent veterinary businesses by the Medivet Group, including Barton Companion Animal Services at Barton on Humber, could lead to worse quality, a more limited range of services or higher prices for pet owners in affected areas across England and Northern Ireland.
The CMA opened its investigation into Medivet’s purchase of seventeen independent veterinary businesses in March this year. Medivet is a large multinational veterinary group with over 400 veterinary centres across the UK that offer veterinary services primarily to small animals, including at 24-hour centres.
This is the fourth CMA investigation into acquisitions in the veterinary sector in the last two years and comes against a backdrop of an increasing number of transactions in which corporate groups purchase small, independent veterinary services across the UK.
Medivet’s purchases took place between September 2021 and September 2022. Medivet did not sufficiently publicise the purchases and chose not to notify the CMA at that time. The CMA identified potential concerns as part of its ongoing monitoring of mergers and acquisitions and opened initial investigations in March 2023.
Following these investigations, the CMA found competition concerns in relation to 12 transactions regarding the supply of veterinary services for small animals (typically household pets) in 34 local areas across England and Northern Ireland. The CMA also found competition concerns in relation to two of these twelve transactions regarding the supply of out-of-hours veterinary services to small animals in five local areas in England.
In each of these deals, the CMA found that the combined businesses would account for a significant proportion of the veterinary services offered in each location of concern. The CMA found no competition concerns arising for three purchases (The Hollies, Canine Healthcare and Withy Grove) and in April found that two purchases (Monument Vets and Stanhope Park) did not meet the statutory requirements to be investigated further.
Sorcha O’Carroll, Senior Director of Mergers, at the CMA, said: “There are around 17 million pet-owning homes across the UK with consumers spending around £4 billion a year on vets and other services for pets. Particularly while household budgets are already stretched, it’s crucial that we ensure continued access to good quality pet care at a fair price.
“We continue to receive concerns that independent vet practices being bought out by a single company could lead to a loss of competition at a local level resulting in higher prices or lower quality services.
“We will continue to monitor the impact of these types of deals so we can take the necessary action to ensure reduced competition won’t reduce the overall availability and quality of local veterinary services.”
Medivet has five working days to offer legally binding proposals to the CMA to address the competition concerns identified. The CMA would then have a further 5 working days to consider whether to accept these instead of referring the cases to Phase 2 investigations.JCT600 scoops Retailer of the Year title from Mercedes
Family business JCT600 has been named as Retailer of the Year for 2022 by Mercedes- Benz as it recognises its best performing dealerships across the UK.
With Mercedes-Benz dealerships in Sheffield, Doncaster, Harrogate, York and Chesterfield, JCT600 won the coveted award based on its ‘outstanding performance in every area of the business, including new car sales, customer service, approved used car sales, workshop retail hours and customer retention’.
Gary Savage, chief exec and MD of Mercedes-Benz Cars UK, said: “JCT600 performed consistently strongly across all areas of the business and the team’s collaboration was nothing short of outstanding, with remarkable engagement and positivity.”
Michelle Caveney, Mercedes-Benz brand director for JCT600 said, “It is a fantastic achievement to be recognised in these prestigious awards which celebrate the very best of Mercedes-Benz’s partners throughout the UK.
“This accolade is testament to the hard work and passion of the 200-plus strong team across our five Mercedes-Benz dealerships in Derbyshire, South Yorkshire and North Yorkshire, demonstrating their customer-centric approach and continued ability to deliver exceptional service. Ensuring that customers have the very best experience when they visit us is at the heart of what we do – our thanks go to all of our colleagues who make this possible.”
JCT600 has grown from a single dealership into one of the largest privately-owned businesses in Yorkshire. With over 50 dealerships from Yorkshire and the North East to Derbyshire and Lincolnshire, the group represents 23 of the world’s leading car marques and has a team of 2,300 colleagues.
Rewards for efforts to make Lincolnshire apprenticeships work
Lincolnshire apprentices, trainers, and employers who have gone above and beyond to make apprenticeships a success, have been recognised at the Apprenticeship Champions Awards ceremony for 2023.
The overall winner of Apprentice of the Year was Declan Brown who has undertaken an apprenticeship at Scampton Church of England Primary School.
Headteacher Charlie Hebborn said, “The impact Declan has in the classroom helps children make good progress in areas such as reading, writing and maths. Pupils learn well because Declan inspires them and is a great role model.”
Apprentice Champions were also awarded in sector categories, with the winners being:
- Health and Care Apprentice Champion – Millie Brightman from Great Northern Physiotherapy Limited
- Education Apprentice Champion – Declan Brown from Scampton Church of England Primary School
- Government and Public Service Apprentice Champion – Abbie Beastall from West Lindsey District Council
- Food Manufacturing Apprentice Champion – Sophie Camm from Bakkavor
- Construction and Engineering Apprentice Champion – Ellie Wilds from Balfour Beatty
- Commercial Services Apprentice Champion – Leila Mae Hall from Masons (Louth) Ltd.
