Sheffield engineering company turns up the heat on future growth plans
A Sheffield-based engineering company, which is helping businesses recoup thousands of pounds in energy costs, is turning up the heat on its future growth plans after calling on help from Finance For Enterprise and the Northern Powerhouse Investment Fund.
Headquartered at Sheffield’s Century Park Industrial Estate, Saphex manufactures, designs and repairs a wide range of industrial heat exchange units, which are typically used to help businesses regulate temperature during the manufacturing process.
Recognising that the primary purpose of a heat exchange mechanism is to remove excess temperatures typically generated during the manufacturing process, Managing Director Wayne Nelson began exploring ways of helping businesses to repurpose this energy elsewhere within the business, helping companies to save money on their heating bills, as well as reducing carbon dioxide emissions.
The solution Wayne and the Saphex team have pioneered is called Clix. The modular system draws on their extensive knowledge of the heat exchange industry, which transfers excess heat generated to be transferred to another source. The process allows surplus energy to be recycled and used elsewhere in the business.
Although the innovative work has taken nearly 15 years to perfect, the results have proved to be dramatic. During trials of the system, the innovative work phase helped one business to make savings in excess of £280,000 during the past 12 months alone.
Recognising the impact of energy price increases facing businesses operating in many different sectors, Wayne and the Saphex team felt the time was right to bring their years of work to market. However, to fully harness the potential offered by the new system, Wayne realised that additional funding would be needed and reached out to Finance For Enterprise for investment.
Working with business lending manager Gurinder Mandir, Saphex successfully secured a £150,000 investment, funded by Finance For Enterprise and NPIF – BEF & FFE Microfinance, which is managed by Finance For Enterprise and BEF and part of the Northern Powerhouse Investment Fund. The loans also utilise the Government backed Recovery Loan Scheme.
With funds in place Saphex is now targeting six figure growth within the next 12 months and has embarked upon a three-year growth strategy, which aims to see the business double in size over the next three years. Central to Saphex’s growth plans, part of the funds will be used to invest in new software, which will be used to significantly reduce the amount of time taken to undertake the complex thermal calculations needed when designing heat recycling systems, ultimately helping to increase capacity within the business.
Wayne Nelson, Managing Director, Saphex, said: “There remains a great deal of uncertainty surrounding energy prices, and this is having a devastating impact on businesses of all sizes. Energy intensive industries such as food production, chemical manufacturing and traditional heavy industries have been particularly hard hit, and we felt that the time was right to bring a product we’ve been working on for over 15 years to market.”
Gurinder Mandir, senior business lending manager, Finance For Enterprise, said: “Saphex is a real success story for the British engineering industry. Although the work they have been producing has been quite a long time in the making, the launch of their Clix modular system is one that could prove to be a genuine gamechanger for energy-intensive businesses, which have seen their heating bills skyrocket in recent months.
“Wayne and his team were quick to recognise the enormous potential of their truly innovative work, but they recognised that to unlock the potential in their ideas meant devoting additional time and resources to the project. Like many businesses, the Saphex team needed to balance investing in new technology whilst continuing to meet the demand for their Sheffield-manufactured heat exchange mechanisms. The funds will help the business to fully exploit the innovative technology they have developed.
“Saphex was well placed to benefit from the Northern Powerhouse Investment Fund, giving Wayne and his team the opportunity to invest in the vital resources needed to capitalise on their innovative work, as well as helping the business to bring a unique product to market that will help companies working in many different sectors to mitigate rising energy costs, as well as making a positive contribution towards the environment.”
Workforce challenges outrank inflation and interest rates as a top concern for mid-sized businesses
Workforce challenges such as skills and labour shortages outrank rising costs and interest rates as one of the top concerns facing mid-sized businesses in the next six months, according to the latest research from accountancy and business advisory firm BDO. Nearly a third (32%) say it is one of the three biggest challenges they face, second only to supply chain pressures.
The bi-monthly survey – which looks at the challenges and opportunities facing mid-sized businesses – reveals that almost half (48%) are experiencing skills or labour shortages. Nearly two-thirds (61%) cannot recruit enough entry-level staff, with even more (73%) struggling to plug gaps at a lower-managerial level.
Two in five mid-sized businesses (42%) say it is too expensive to hire new staff because of costs including immigration bureaucracy, National Insurance contributions or higher salary expectations from candidates amid the cost of living crisis. A third of firms (35%) are struggling to recruit enough people due to immigration restrictions, rising to 43% of hospitality and leisure businesses. A further 41% are unable to replace staff who retired during the COVID-19 pandemic, with data from the ONS showing a mass exodus of over-50s from the workforce between March 2020 and November 2021.
These mid-sized businesses – defined by BDO as firms with revenues between £10m and £300m that are privately owned, backed by private equity or listed on the AIM market – employ eight million people and provided a quarter of UK jobs as of March 2023, according to further research.
In the face of labour shortages, more than a quarter (26%) are offering existing staff opportunities to retrain, while a third (32%) plan to invest in upskilling over the next five years. A similar number (30%) will use more freelancers to access particular areas of expertise.
In a bid to expand their access to talent, businesses are exploring new hiring methods. One in five (23%) are recruiting more staff through trainee schemes or apprenticeships, while over a quarter (27%) are offering specific incentives to attract more diverse hires, including childcare vouchers or health and wellness support.
One-fifth (20%) are removing academic criteria from job adverts to broaden their candidate pool and 25% are exploring new working patterns such as four-day weeks. A quarter (25%) also expect to see an increase over the next five years in the number of workers aged over 50, as firms prioritise upskilling and retention.
With workforce challenges adding to existing economic pressures, businesses are turning their attention to artificial intelligence and other technological solutions. A fifth (21%) plan to trial or allocate budget for automation and new technologies over the next six months in order to increase efficiency, while more than a third (36%) plan to increase spending on AI in the next five years.
Against this backdrop, businesses are looking to the Government for fresh support. As firms struggle to hire and momentum grows around AI, over a quarter (26%) would like to see investment from the Government in automation to help businesses increase efficiency and cut costs.
A fifth (20%) are calling for immigration policy changes, such as faster processing and additions to the Shortage Occupation List, to plug skills and labour gaps. A similar number (21%) want to see the Government broaden the variety of post-16 education options, while a further fifth (20%) hope to see tax cuts for companies in areas where the regional economy is performing less well.
Ed Dwan, partner at BDO, said: “Workforce issues have the potential to be a real drag on UK productivity. While it’s heartening to see mid-sized firms invest in more diverse hiring and upskilling existing staff, these challenges clearly aren’t going to go away overnight.
“Skills gaps and worker shortages have a real impact on firms’ productivity, output and morale, and could cause a slump in business confidence over the long term. Businesses need a helping hand from Government if they’re to overcome this and achieve the growth we know they’re capable of driving as the UK’s economic engine.
“More investment in areas such as high-quality apprenticeships, or incentives for people to train in areas where skills shortages are most severe, could have a huge impact.”
How green is your business? Yorkshire Growth Hub highlights the rules about what to say
laiming your business, product or service is sustainable is a big win today – but before you make your claims, you need to make sure you’re saying the right thing, says the York and North Yorkshire Growth Hub.
In a post on its web site the organisation says consumers are becoming increasingly conscious of how their buying habits impact the planet and are looking for greener alternatives. Businesses, too, are looking to reduce their impact on the environment by making greener choices and producing more sustainable products and services.
These are positive things, and every business and individual should be striving to become more sustainable. However, we need to be careful with the claims we make, especially when it comes to sustainability, otherwise we could be confronted with claims of ‘greenwashing’.
Greenwashing refers to making false or exaggerated claims that a product or service is in some way good for the planet, or that it is environmentally friendly without providing actual evidence. This can include vague claims about sustainability on websites, using green buzzwords like ‘eco-friendly’ without explanations, or using nature-inspired imagery on packaging without evidence to back up your sustainability claims.
Not only are consumers becoming more interested in buying sustainable options, but they’re also becoming shrewder. If a claim isn’t adding up, it won’t just be your customer base that has something to say. Businesses have been hit with fines, had advertising pulled, and have had lawsuits and formal complaints filed against them because of greenwashing claims.
Sustainability is becoming serious business, and if you want to avoid financial, legal or reputational repercussions, you need to avoid greenwashing and be careful with the claims you make. However, sometimes it can be hard to know what you’re allowed to say about your products in your marketing. After all, what qualifies a product as ‘sustainable’?
The 2021 Green Claims Code aims to help companies understand where the boundaries lie and reduce greenwashing to help consumers make an informed decision.
The Green Claims Code applies whether you’re selling B2B or B2C, and has six key elements:
1. Claims must be truthful and accurate
Simply, you can’t claim a benefit that doesn’t exist, claim to be carrying out sustainability work if you aren’t or exaggerate action you are taking. For example, if you’re making the claim “we only use renewable energy”, but this only applies to your UK operations, you must say so.
2. Claims must be clear and unambiguous
Your consumer needs the full information to make their decision, and it is your duty to provide that. If your compostable packaging is only compostable under industrial conditions, you must state so clearly.
3. Claims must not omit or hide important information
Using partial statistics, overstating the benefits of certain technologies or materials, and omitting information can all make your company’s operations or products look better for the planet than they are, and skew a buyer’s decision. If you say you’re a zero-waste company, be prepared to publish your waste statistics.
4. Comparisons must be fair and meaningful
If you’re comparing products or services in order to claim that one is more sustainable than the other, you must compare like-for-like, with up-to-date and objective information. For example, if you’re claiming that a competitor’s packaging is heavier than yours, the unpackaged weight of the goods must be the same in order to create a fair comparison.
5. In making the claim, you must consider the life cycle of the product
This means not just looking at what it took to manufacture your product, but what resources were originally needed to create it and its packaging, how it was transported, and what will happen when it is disposed of. This is where single-use plastics can be tricky – although they are very light and easy to transport, which gives them a low carbon footprint on one element of the life cycle, the issues associated with their natural resource (oil), and their disposal give them a high environmental impact overall.
6. Claims must be substantiated
You need to be able to back up any claims you’re making – and the information used must be reliable, up-to-date, and from an unbiased source, such as a scientific paper or independent report. This is where being specific can help – saying “we’ve reduced our waste output by 20% in the last year” is much easier to prove than a generic claim such as “we’re a sustainable company”.
There’s a lot of support and guidance out there around net zero business practices, including our free Growth Hub resources.
If you’re just getting started or need more clarity, you can download the Hub’s free Glossary of Climate Change Terms for Businesses. It contains definitions and breakdowns of all the key, relevant terms businesses need to know, helping to make net zero conversations and support more accessible.
When navigating sustainable business practices and marketing, being familiar with the terms in the glossary will help you make those specific and measurable claims that can give you a marketing boost, whilst keeping you on the right side of the Green Claims Code.
Further guidance around the Green Claims Code, including a checklist for your business, can be found on the GOV.UK webpage.
Gainsborough firms asked how they’d like the town’s green spaces to look
Everyone living and working in Gainsborough has been invited to offer their opinions to help West Lindsey District Council understand how they want the new town centre green spaces to look and feel.
This includes the design elements for Whitton Gardens and the former Baltic Mill site where Caskgate Street meets Silver Street and Bridge Street, with a separate survey for each.
Sally Grindrod-Smith, Director of Planning, Regeneration and Communities encourages all residents to have their say. She said: “We are working with Project Centre to improve the high-quality green spaces that are Whitton Gardens and Baltic Mill. We encourage all residents of Gainsborough to help us identify what you want in these areas in order to move forward with this exciting project.”
The council has already secured £10m from Central Government in 2021 as part of the 20 year ‘Levelling up’ Programme, to regenerate the town and help create a ‘Thriving Gainsborough’.
The project has been co-produced with our communities, politicians, local businesses and third-party investors. It develops the momentum created by previous interventions and implements further visibly impactful and transformational change.
The Council’s aim is to create an enhanced network of green spaces and embrace green technologies while addressing the most pressing systemic challenges and market failures that currently impact the town and community.
The survey will close at 9am on 9 May, where the results will be evaluated and fed into the regeneration of both sites. To take part in the survey, visit here.
Lecturers helped with research for yesterday’s nationwide mobile phone alert
Yesterday’s nationwide trial of the new public safety and emergency response alert involved two lecturers from the University of Hull being key players in the research leading up to it.
Dr Robert Thomas, Senior Research Fellow in Geomorphology and Flood Risk, and Dr Kate Smith, then working as a Researcher in the Flood Innovation Centre, collaborated with the Environment Agency before launching an on-campus trial in November of 2019.The ‘Emergency Alerts’ system will alert mobile phones with a sound and vibration whenever there’s a life-threatening emergency nearby, such as severe flooding, fire or extreme weather. The first national alert will be sent as a trial over the weekend.
Dr Smith said: “We worked with colleagues from the Environment Agency, as well as technical experts from Fujitsu and EE to develop the trial. This involved testing public responses to cell broadcast messages sent to mobile handsets. “The trial showed that these kinds of messages are a really effective way of alerting people to imminent danger, and the research we presented to DEFRA and the Cabinet Office was instrumental in the government’s decision to commission a national cell broadcast service for delivering emergency messaging. “We are delighted that our work supported this important step in improving public safety in the UK, and look forward to the success of the forthcoming mobile alerting service.”University of Hull prepares to recognise businesses at Innovate North Awards
The University of Hull will celebrate local businesses with the new ‘Innovate North Awards’ on Tuesday 9 May, following on from four EU-funded innovation programmes that have enabled small businesses to develop and thrive.
Over the last six years, the University has provided innovation support to 675 businesses across the Humber, North Yorkshire and beyond. This has resulted in:- 170 new products
- 400 tonnes of carbon emissions reduced
- 195 jobs created
- £85m SME increased sales
CBI suspends all policy and membership activity until June following fresh allegations
The CBI (Confederation of British Industry) has suspended all policy and membership activity until an Extraordinary General Meeting (EGM) in June as dozens of companies, including Rolls Royce, are leaving the organisation or pausing their memberships following allegations of rape and sexual assault.
It follows reports in the Guardian that a second woman had made a rape allegation against two CBI workers, and comes after a series of historic misconduct claims over recent weeks.
A statement from the CBI board said that it “shares the shock and revulsion at the events that have taken place in [the] organisation, and at past failures that allowed these events to happen,” with the organisation planning to put forward proposals for a refocused CBI at the June EGM for its membership to decide on its future role and purpose.
The CBI said: “We are deeply sorry and express our profound regret to the women who have endured these horrific experiences.
“We have listened carefully to what our colleagues, members and stakeholders have said over recent days and weeks. We have heard loud and clear a demand for far reaching change.
“We want to properly understand from our colleagues, members, experts and stakeholders how they envisage our future role and purpose. As a result, we have taken the difficult but necessary decision to suspend all policy and membership activity until an Extraordinary General Meeting (EGM) in June.
“At the EGM we will put forward proposals for a refocused CBI to our membership for them to decide on the future role and purpose of the organisation. This work and the cultural reform will be the entire and urgent focus of the organisation over the coming weeks.
“Our members have told us in recent days and weeks that they believe in the importance of a collective voice to inform national policy and the unique role that an organisation like the CBI can play in public life. But much needs to change if we are to win back their trust so we may continue to represent business at this critical time for the country.
“We are taking steps to address our failings but recognise these are not yet sufficient to sustain the confidence of our colleagues, members and of the broader business community. We know it will take time to rebuild trust in our purpose and culture. And to give our team and former colleagues the space to heal.”
A number of business leaders have called for the CBI to disband.
New Chair launches Humber Business Week
Humber Business Week has ben launched at an event hosted by the incoming chair for 2024 – Pat Coyle.
The event traditionally announces a number of key events confirmed for this year’s ‘Festival of Business’, and acts as a rallying call for other businesses to confirm the details of their own events and ensure they are part of the programme between June 5-9th.
Following the announcement that Kath Lavery is stepping down as chair after her 14th and final year at the helm this summer, it has today been confirmed that highly experienced marketing specialist Mrs Coyle is to take over in 2024.
The Rollits Director of Marketing and Client Relations has been part of the volunteer steering group which brings together Business Week each year for more than a decade, supporting Mrs Lavery in that time.
She has been involved in many of Business Week’s most successful events, including a number organised through her role on the senior management team at Hull law firm Rollits.
In her previous role as chair of the Institute of Directors in East Yorkshire, she attracted high-profile speakers including Midge Ure and Kevin Keegan to an annual Humber Luncheon as part of the week.
That event is to return in 2023, this time organised by a group of local companies, but again under Mrs Coyle’s leadership.
That will include a guest speaker appearance from Carl Leighton-Pope, who during a career in the music business lasting over 55 years, has acted as agent for the likes of Patti Smith, The Motors, Dire Straits, Simple Minds, UFO, Bryan Adams, Van Morrison, Bonnie Tyler, Michael Bublé, Billy Ocean, and Chris Rea.
“Stepping into Kath Lavery’s shoes as the Chair of Humber Business Week is both a privilege and a challenge,” said Mrs Coyle.
“It’s a daunting task, but with determination, innovation, and collaboration, I look forward to building on the great work that has been done by Kath and the Steering Group to build on the event’s legacy and ensure a platform from 2024 onwards for businesses to connect, learn, and grow.
“Humber Business Week is an important event for our region, and I am committed to ensuring that it continues to be a success.”
Quickline’s rural broadband boost changes brewery business for the better
East Yorkshire’s award-winning Great Newsome micro-brewery has adapted its sales model and diversified thanks to enhanced internet connection, switching online sales from just 2% of its business rot 90%.
Its broadband provider is now Quickline Communications, and the collaboration has allowed the brewery, in Winestead, Holderness, to capitalise on its new brewery by adapting to a rapidly-changing marketplace.
Pre-Covid, the family-run business was doing only minimal online trading, but tanks to the new broadband capability moved to focus on online trading to survive when the country was forced into lockdown.
Great Newsome, which uses barley from its own fields to produce its beer, now also operates a firewood sales business and offers glamping and holiday home retreats on its farm – all of which have been made possible by its improved internet service. Matthew Hodgson of Great Newsome Brewery said: “When Covid hit and we went into lockdown, everything changed and the only way we could survive during that period was to deliver straight to our customers. “Thankfully, we’d switched to Quickline to give us fast, reliable internet. Previously, it had been very patchy at best, and we wouldn’t have survived without the improved service. “Now, it’s essential to our business. Our software is all Cloud-based and we need broadband for everything from taking orders online, telephone sales and taking payments, to things like social media to promote our businesses. It’s also meant we’ve been able to expand to launch our firewood business and glamping and holiday home breaks. “It really shows the crucial importance of broadband in rural communities like ours.” Quickline, which has already passed more than 300,000 premises with its existing next-generation fixed wireless broadband network in Yorkshire and Lincolnshire, is blending that with full fibre to create the UK’s only gigabit hybrid network. Quickline CEO Sean Royce said: “I’ve known about Great Newsome Brewery for some time and am a fan of their beer, so I’m delighted we’ve been able to support their business. “Covid changed everything and showed how important fast and reliable broadband is for everyone, in all communities, and for businesses to survive and thrive. “The recent FSB report highlights how rural communities have been neglected by major broadband providers for years, which is why we’re on a mission to reach these areas. “At Quickline, we don’t just sell broadband and build networks, we change people’s lives, and Great Newsome Brewery is a prime example of that.”Tabletop gaming retailer secures funding to support growth
A six-figure investment is helping The Outpost, a Sheffield-based independent tabletop and miniature wargaming specialist retailer, to grow its presence in Yorkshire.
Funding from NPIF – FW Capital Debt Finance, which is managed by FW Capital and is part of the Northern Powerhouse Investment Fund (NPIF), will create two new jobs, increasing The Outpost’s team to seven people. The cash injection is also supporting the increase of its stock holdings to meet rising consumer demand for tabletop games.
The Outpost was started in 2008 by Managing Director Chris Murdoch, working from his home selling tabletop games products via eBay. Today the business is a successful independent gaming online and store retailer of tabletop games. The Outpost has a strong focus on miniature wargaming including the popular Warhammer 40,000 as well as stocking specific board and card games including Star Wars and Marvel.
The Outpost has a Sheffield store located in Neepsend which stocks a wide variety of products from the leading brands in tabletop gaming and some lesser known ranges too. It can also host gaming events and tournaments during store opening hours, with capacity of up to 64 players.
Alex Gent, senior investment executive, facilitated the investment funding for The Outpost and was introduced to the business by Patrick Abel from Corporate Finance firm Hart Shaw, who supported the business during the investment process.
Chris Murdoch, Managing Director, Outpost, said: “It’s fantastic that FW Capital has seen the value in what we’re building here at The Outpost and helped us to secure the finance needed to support our growth ambitions. Tabletop wargaming is increasing in popularity and having access to working capital is helping us to expand the range of products we stock and services available in our Sheffield store and online.
“We’ve enjoyed significant growth since the business was first launched and our success continued during the pandemic thanks to our online sales. Our desire to help however we could during lockdown and the drive of our team was a real testament to their dedication. The continued popularity of tabletop wargaming has seen demand rise across our retail platforms and we were seeking funding to support our next stage of growth.
“The opportunity to springboard our business to the next stage was something we had been seeking and when we were introduced to FW Capital it seemed like a dream come true. Alex Gent at FW Capital has been exceptional. She was always on hand when I needed to talk to her and had the best interests of The Outpost at heart to help ensure we secured the right investment to support our expansion.”
Alex Gent, senior investment executive at FW Capital, said: “We’ve some fantastic businesses in this region and The Outpost is a great example of how having access to the right finance can make a real difference. Chris has worked hard to build The Outpost, and its growth is a real testament to that. The Outpost operates in an exciting, niche market and is focused on expanding its presence across Yorkshire. The capital in place will help to drive this, creating new jobs and strengthening its stock holdings to better meet the needs of its customers.”
Patrick Abel, corporate finance partner at Hart Shaw, said: “We’re delighted to be able to support The Outpost in securing the funding necessary to meet their growth ambitions. As always, we’ve enjoyed working with Alex and the team at FW Capital who ensured the smooth completion of the funding.”
