- Business volumes grew rapidly in the quarter to March (+36%) after having fallen last quarter (-23% in December). Firms expect volumes to increase at an even quicker rate in the next three months (+50%).
- Optimism increased at a quick rate in the quarter to March (weighted balance of +29% from -3% in December).
- Average spreads declined in the quarter to March (-19% from -4% in December) but are expected to increase next quarter (+9%).
- The value of non-performing loans increased in the quarter to March (+11% from +3% in December) but is expected to fall next quarter (-7%).
- Profitability grew at a quick rate in the quarter to March (+37% from -3% in December). FS firms expect profitability to increase at a similarly fast pace next quarter (+38%).
- Headcount grew at a fast pace in the quarter to March (+40% from +46% in December). Firms expect headcount growth to accelerate slightly next quarter (+45%).
- Firms expect to increase investment in IT in the next 12 months (compared to the last 12). Capital expenditure on land & buildings is set to be unchanged, while firms expect to cut back on investment in vehicles, plant & machinery.
- Uncertainty about demand was the most commonly cited factor likely to limit investment in the next 12 months (53% from 53% in December).
Financial services activity sees strong rebound in first quarter
Financial services business volumes grew at a fast pace in the first quarter of 2024 after having fallen in the fourth quarter of 2023, according to the latest CBI Financial Services Survey. Firms expect volumes to increase at an even quicker rate over the next three months.
The quarterly survey, conducted between 1 and 19 March, also showed that FS firms’ optimism increased quickly over the quarter. Headcount in the sector grew at a fast pace for a fourth consecutive quarter, and firms anticipate that headcount growth will accelerate further in the next three months.
Key findings:
Leeds EV company reaches £1m turnover in first year of trading
Leeds-based specialist renewable energy and electric vehicle firm the E-Merge Group has reported turnover of £1 million since the start-up business was established just 12 months ago.
Set up in April 2023 by renewable energy experts Marc Haley and Charlotte Ward, the E-Merge Group has experienced unprecedented growth. Carrying out projects across multiple sectors and industries with the likes of the Ministry of Defence, Guest Truck and Van, First Bus and Bupa Healthcare, E-Merge Group was formed after Marc and Charlotte identified a gap in the market for a specialist, all encompassing renewable energy and EV company that provides the most cutting-edge, technologically-advanced renewable energy and EV solutions, at affordable price points.
The growth of the business has also been bolstered by the increase in funding grants and support available from the Government, encouraging UK businesses to ‘go green’ when it comes to energy usage, which the E-Merge Group team can help unlock for companies across multiple market sectors.
Providing solar PV systems, battery energy storage systems, power infrastructure, EV solutions, energy monitoring and onsite energy efficiency services, the business boasts three separate divisions – E-Merge Renewable Energy, E-Merge EV Solutions and E-Merge Power Infrastructure.
Marc said: “To turn over £1 million in our first year of operations is an absolutely fantastic achievement and something that both Charlotte and I are immensely proud of. We’re passionate about delivering viable, cost-effective renewable energy and EV solutions for each and every client, to revolutionise their sustainable and Environmental, Social and Governance (ESG) credentials and deliver ‘profit for purpose’ for firms within a range of sectors across the UK.
“We have a number of really exciting projects in the pipeline, including the unveiling of a new, customer-facing software platform and the roll out of EV infrastructure technology that’s exclusive to the UK. We’re really excited about the future of E-Merge Group and we’re just getting started!”
Another considerable milestone in E-Merge Group’s growth, and a move to grow the business nationally, has seen the team recently establish an office based in Northamptonshire.
This expansion reflects Marc and Charlotte’s commitment to growth and dedication to better serving clients across the UK. Speaking about the new offices, Charlotte Ward, co-founder and director at E-Merge Group, said: “This new location will enable us to create a geographical stronghold in multiple regions across the country, extending the reach of the business and providing even more comprehensive renewable energy support to valued clients.
“The E-Merge Group team is dedicated to helping businesses unlock their renewable energy and EV potential, helping them make the most of Government support and providing the most technologically-advanced solutions to help make their sustainability objectives become a reality, all the while helping them enhance their bottom line.
“We’re really excited about the opportunities this expansion brings and look forward to continuing to deliver exceptional service and innovative solutions to our clients.”
G&H Group wins Bradford College project
Tilbury Douglas has appointed G&H Group to provide all mechanical and electrical design and build services for Bradford College’s Garden Mills Refurbishment Project.
Bradford College was awarded £5.8m from The Office for Students Higher Education Capital Fund to transform a derelict building into a state-of-the-art STEM training and education facility to benefit students studying digital, science and allied health subjects.
G&H Group was appointed to support main contractor Tilbury Douglas, a leading UK building, infrastructure, engineering and fit-out company, following a successful tender submission.
A 20-strong team, including four apprentices, will deliver a complete mechanical and electrical design and build for the new, cutting-edge higher education facility including lighting, power, heating, domestic services, gas and ventilation.
To support the requirements of Part L of the building regulation and the college’s sustainability commitments, G&H Group has designed the heating system to facilitate the future installation of air source heat pump technology, ensuring that all installed emitters and pipework can operate at lower system temperatures.
On planned completion in August, ahead of the start of the new academic year, the renovated mill will boast cutting-edge dental facilities including a specialist dentistry suite, a prep room, six higher education digital IT labs, an ophthalmic dispensing suite, a real-life work environment with consulting and testing booths, a clinical suite, and academic teaching spaces. Forming part of Bradford College’s ambitious estates strategy, these new facilities will nurture pioneering careers in sectors that support regional economic growth.
David Davis, director, G&H Group said: “We have extensive experience delivering MEP projects for the education sector and collaborating with Tilbury Douglas. Helping transform the derelict Garden Mills Building into an innovative higher education college will hugely benefit the students and support their future careers.”
Paul Ellenor, regional director for Tilbury Douglas, said: “We’re delighted to be teaming up once again with G&H Group to deliver this refurbishment project for Bradford College, providing dedicated specialist facilities to support higher-level STEM teaching and provide an enhanced student experience.” Christopher Malish, Bradford College vice principal Finance & Corporate Services, added: “This is a huge boost for the College but is also a transformative investment in Bradford city centre that also supports the wider city centre development. These new facilities will allow the delivery of curricula designed to address big societal challenges, enrich our local workforce, and showcase a range of inspiring careers.”
Steel fabricator to cease trading with all jobs lost
A Sherburn-in-Elmet-based business which designed, manufactured and installed complex steel structures is set to cease trading with the loss of all jobs.
Andrew Mackenzie and Louise Longley of Begbies Traynor were appointed as joint administrators of SH Structures Limited on 4 April 2024.
SH Structures suffered from losses on various contracts and a gap in production scheduling due to projects being delayed.
Despite the multi-award winning company’s reputation, it has not proved possible to find a purchaser for the business. SH Structures will cease trading with the loss of all jobs.
The business was established over 30 years ago and employed approximately 70 staff.Begbies Traynor is managing an orderly wind down of the business and seeking the best return for creditors.
Specialist PPC marketing agency doubles space at Leeds office building
Specialist PPC marketing agency Circus PPC has doubled its space at Tailors Corner, the central Leeds building which was originally the home of Hepworth Tailors.
Circus now occupies 3,600 sq ft in the 25,000 sq ft building, which features flexible Grade A office space.
Tailors Corner, formerly known as Wellington Park House, was bought by property developers Boultbee Brooks in 2018. It is situated on the corner of Wellington Street and Thirsk Row.
Victoria Harris of global property consultancy Knight Frank in Leeds, who are marketing Tailors Corner, said: “Tailors Corner has led the way in terms of providing prime office space which has found the perfect balance between creative and corporate, creating an environment that appealed to the market and corporate occupiers at the beginning of the flight to quality movement.
“This movement aims to bring staff back to a new office environment they will enjoy working in, which will help attraction and retention. The roof terrace is a perfect example of added building amenities that play a key role in occupier considerations and its design and style has set a new standard of expectation within Leeds.
“This new deal, which sees Circus PPC doubling its space within Tailors Corners, is a resounding endorsement of Boultbee Brooks’ substantial investment in this very special building.”
Rick Tobin, Managing Director of Circus PPC, said: “Since we moved into Tailors Corner back in 2022, we’ve seen huge growth in the agency, but we love the office building for its fantastic facilities, working spaces, and location.
“We’re in a prime position in Leeds city centre that we know our team love, and has helped us to recruit further, so taking over a larger space just a couple of floors down made total sense.
“We’re looking forward to putting our stamp on the new office and creating another exciting space that we love to work from and that can assist in facilitating further agency growth ambitions.”
The suite within Tailors Corner that Circus PPC relocated from is already under offer.
Yorkshire law firm hires senior employment and HR solicitor
Law firm Gordons has appointed a senior lawyer within its employment and HR practice.
Mike Patterson joins from law firm Berwins where he worked for almost 12 years as head of employment. He has particular expertise in advising clients within the food manufacturing, digital and technology and professional services sectors.
With almost 20 years’ experience in employment law, Mike has also worked inhouse for the Department of Health and food manufacturer Northern Foods plc which is now 2 Sisters Food Group.
He advises on all aspects of employment and HR issues, regularly represents clients at employment tribunals and provides bespoke training sessions.
Commenting on his appointment, Mike said: “Gordons’ employment and HR team is highly regarded and has a well-established client base in sectors that I have a great deal of experience in.
“It’s also a firm known for having personable lawyers who are straightforward to deal with and that give practical commercial advice. I share those same values, so I am looking forward to further growing the employment and HR practice with likeminded colleagues.”
Gordons’ employment and HR clients include retailers AO, Wren Kitchens and Ocado Retail alongside temperature controlled food distribution business Reed Boardall and motor retailer JCT600.
Welcoming Mike to the firm, Gordons managing partner, Victoria Davey, said: “Mike is a great hire for Gordons due to his sector experience, professional capability and approachable personality.
“We have a strong employment and HR service offer and have every confidence that Mike will play a pivotal role in its continued expansion.”
Gordons has offices in Leeds and Bradford and employs 170 people.
James Reckitt Properties sells nine new homes to city council
Hull City Council is to buy nine brand new homes from James Reckitt Properties Limited at its Brambles Development in east Hull, which will be for rent from the council.
The council will fund the acquisition via the Housing Revenue Account, the Council’s Landlord Service, and grant from Homes England’s Affordable Homes Programme.
Cllr Paul Drake-Davis, Hull City Council’s Portfolio Holder for Regeneration and Housing said: “We have an acute shortage of affordable housing in relation to current demand. We have 1,400 people who have been awarded urgent priority status for rehousing, which is twice the number of people as in 2020, yet only 1,400 homes became available to let in the last 12 months.
“The acquisition of more homes should help ease the pressure. Hull City Council gives preference to its existing tenants for new build houses, giving those with good tenancy histories a better chance of securing a new home. This in turn frees up other council properties for those who need them.”
Hull is said to be currently experiencing an unprecedented demand for affordable housing. The latest Local Needs Assessment identified a net need for 242 affordable homes to be built every year until 2039. General house building and affordable housing developed as part of that is unlikely to deliver sufficient affordable homes on its own, therefore turn-key opportunities such as at the Brambles are important additions to the council’s housing stock.
Clare’s team supports 40 West Lindsey businesses with wide-ranging advice
West Lindsey District Council has been offering fully funded one-to-one support to more than 40 businesses in its area for a year, made possible thanks to the UK Shared Prosperity Fund.
The Council commissioned Clare Bailey, Founder of the Retail Champion, and her dedicated team to support business on a range of topics including marketing, graphic design, social media, book keeping and accounts, finance and business improvement and wellbeing.
Businesses supported so far include bed and breakfasts, an outdoor adventure park, a distillery, and an arts centre. Clare Bailey said: “I’ve had the pleasure of taking the first call from a whole host of different businesses across West Lindsey. I always complete the introduction and initial diagnostic, agreeing priorities / focus areas and introducing the right members of the team to complete the delivery for the client.
“In some cases, I complete part of the work myself, in many cases the client will get to meet 3 or 4 members of the team, each with their own unique expertise and skills, who can support them in a diverse range of business areas.”
Book Keeping and Accounts Specialist Catherine Smith is working with a distillery and a new performance arts centre to help them manage their ongoing accounting needs. She said: “From start-ups needing guidance to keep paperwork in line and deadlines met, to advising the best practises to making your money work for you. Sometimes all that’s needed is a friendly face that tells you ‘everything is OK’, we just need to tweak this particular area and we have got it.
“Accountancy can be overwhelming when you’re starting out and is often the first thing people put on the back-burner, I aim to make it less of a burden and a panic, meaning the clients can focus their energy on growing the business.”
Kim Hulse – Marketing and ecommerce expert has been supporting business owners of bed and breakfasts with brand positioning and marketing messages. She has been helping them showcase not just what they have to offer, but the attractiveness of the local area too. She said: “The strategies developed have helped those with great programmes for local residents and visitors to enjoy, reposition how they present themselves on their websites and on social media.
“I have worked with a number of retail businesses too on sales and marketing strategies, focused on generating online sales. Other service-based businesses now have customer profiles and a marketing plan to reach more customers. Overall, it’s been about helping businesses understand their marketing objectives, their customers and their key marketing messages and helping these businesses to communicate these messages effectively.”
Social Media Specialist Frances Brown has helped businesses explore effective social media strategies to reach new audiences. She said: “Working with West Lindsey based small businesses has allowed me to support so many people with social media – an area which is often overwhelming to business owners. We go into more detail than just what does this button on Instagram do exploring what holds them back from being visible and into how to tap into the psychology of the audience to create content that will stop them in their tracks rather than continue to scroll.”
Access to finance gets harder for SMEs, says BCC
Getting finance is becoming more difficult for a large number of SMEs, according to new data from the British Chambers of Commerce Insights Unit.
About half of business surveyed who accessed finance felt that getting funding had become more challenging over the past three years. Only 13% said it was getting easier.
The BCC’s latest survey of business conditions also reveals that three-quarters of the 553 firms surveyed – mainly SMEs – have not accessed finance from an external provider in the past twelve months.
As businesses continue to struggle with a series of economic headwinds, half of respondents who sought finance said cash flow was the main reason.
Jonny Haseldine, Policy Manager at the BCC said: “As SMEs across the UK continue to deal with ongoing economic pressures, accessing crucial finance is really tough. For many SMEs it’s a hurdle too large to even try and tackle.
“In evidence to the Treasury Select Committee last September, we called for urgent action to help SMEs seeking finance. We need to see measures to improve accessibility to finance, better awareness of alternative funding options, and greater competition in banking options.
“Scaling up businesses in the UK is already challenging. The problems are multiplied for female or minority ethnic led firms. Many business owners are forced to dip into their own savings to grow their companies.
“SMEs are the backbone of the UK economy. Giving firms easier and more competitive access to finance is crucial to getting the economic growth we all want to see.”
New rules mean special treatment for pregnant mums and new parents when redundancy looms
Pregnant women and new parents will now receive special treatment in a redundancy situation, as a suite of new laws are introduced at the weekend.
New laws will protect workers by strengthening existing redundancy protections to cover pregnancy and a period of time after parents return to work.
The Government-backed package of Acts will also boost support to vulnerable workers offering greater flexibility and confidence to workers and businesses – to help galvanise productivity, help grow the economy and tackle inactivity.
Families today receive new employment protections, including redundancy protections for pregnant women and new parents and a new leave entitlement for unpaid carers. In addition, there will be new flexible paternity leave and pay for parents of babies due on or after 6 April.
Against a backdrop of skills and labour shortages, these measures will help businesses to attract and retain talented staff. The measures also support groups more likely to fall out of the workforce, such as parents and disabled people, enabling them to thrive in the workplace.
This comes alongside measures to make work pay – cutting taxes by £900 a year for the average worker, increasing the National Living Wage from £10.42 an hour to £11.44, and introducing free childcare for working parents, worth £6,900 a year.
Business Minister Kevin Hollinrake said: “Whether you’re a new parent trying to juggle work commitments with a newborn or a pregnant woman balancing the pressures of work and life, or looking after a disabled or elderly family member while working, these new laws will give families greater security and flexibility.
“From childcare commitments to hospital appointments, the measures coming in today means more flexibility over where and when you work, supporting workers across the UK.
“These measures are good business sense too, helping firms to attract more talent, increase retention and improve workforce diversity.
Protecting and enhancing workers’ rights whilst supporting businesses to grow remains a priority for this government and a dynamic labour helps to drive up wages, employment and economic growth.”
This runs alongside new laws that give workers across Britain more flexibility over where and when they work, unless there are business reasons not to, as the Employment Relations (Flexible Working) Act comes into force. This means employees now have the right to request reasonable flexible working from their first day of employment, with those requests subject to business approval, and delivers on a 2019 Manifesto commitment to encourage flexible working. In addition, new measures require employers to consult with their employee before rejecting a request for flexible working. The employee will have the right to two requests a year – with employers needing to respond within two months, down from three.