£93m refinancing package enables management buy-out at evo

Tess Egginton
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£93m refinancing package enables management buy-out at evo
Andrew Gale, CEO of the business supplies distributor evo, has lead a management buy-out, enabled by a refinancing package through the business’s existing lending syndicate of Leumi ABL (Leumi) and Close Invoice Finance Limited (Close Brothers). The deal facilitates a successful exit for funds managed by Endless LLP, evo’s long-standing PE shareholder. Headquartered in Normanton, the evo group has grown significantly under Endless’s ownership and is now made up of six different brands, generating in excess of £500m of sales and employing 2,000 people. It provides sourcing, storage, specialist and value-added fulfilment services to resellers, consumers, large public sector bodies and corporate organisations and offers the full range of business-critical supplies from everyday essentials, facility supplies, paper, furniture and technology. Andrew will continue as Chief Executive supported by Jon Maxted, evo CFO, and the evo Trading Board and team. With evo continuing its journey with both Leumi and Close Brothers, the refinancing marks evo’s third deal with Leumi and second with Close Brothers. The facilities provided are an £80m invoice finance facility and £13m in term loans. Commenting on the MBO and refinancing, Andrew Gale, evo CEO, said: “From Day 1 as Chief Executive the goal was to materially transform the trading results of evo and to enable an exit for Endless. Over the last two years as CEO, EBITDA has doubled with record EBTIDA results delivered in both FY24 and FY25, which has now enabled an exit for Endless to be delivered. “Endless have been a fantastic investor in evo over the past 16 years and together we have navigated this period with the support of some high-quality individuals. One constant has been the steady and resolute support of Garry Wilson, Endless Group Managing Partner. We thank Garry for his counsel over the years and the skill and expertise of the Endless team. “Peter Yendell, Andy Ross, Mathew Deering, James Woolley all deserve a mention. In the last couple of years, the results have improved under the watch of David Isaacs, Endless Director, who deserves great credit for both challenging and supporting me. With a 16-year Endless training course behind me, I’m now much better equipped to lead evo – so thank you. “The evo business has made major strides over the last couple of years and we are excited about the opportunities in front of us. This refinancing and transaction unlock the opportunity for evo to take on fresh investment to support our ambitions in terms of product and geographical expansion, all within a balanced multi-sales channel model.” David Isaacs, Endless Director, said: “It has been a pleasure working with evo in recent years and to see the business go from strength to strength. There have been improvements in all areas of the business with record EBITDA being delivered, the product offering constantly evolving and an extension of its route to markets. “In addition, we have supported evo with several successful acquisitions over the years, which in culmination have embedded evo as a recognised market leader and positioned the business well for its next phase of growth. “Under Andrew’s excellent stewardship, we strongly believe that the business will continue on its positive trajectory and create wider opportunities for growth and investment. We wish the whole management team all the best for the future.” John Walsh, Regional Sales Director (Leeds and North-East), Leumi, said: “We are very pleased to be continuing to work with Andrew and the evo team. “We have a shared ‘no nonsense’ approach to business and we are pleased to be able to Lead the Club funding to enable the MBO to take place and we are looking forward to working with the evo business and Close Brothers in the years to come. Our ability to provide a flexible range of ABL facilities was key to enabling this transaction to be completed.” Andrew Metcalfe, Head of Corporate Sales, Close Brothers, said: “We are delighted to support Andrew and the evo team with the transaction. “The new facilities provided will support the MBO and provide the liquidity for the continued growth trajectory of the business. We look forward to a long-term partnership with the management team and our lending partner Leumi ABL.” Endless were advised by Walker Morris LLP. Leumi and Close were advised by DLA. Andrew Gale was advised by Peter Considine, Finance Eagle Limited and BDO.

Arla in talks over Settle creamery closure

April Lara
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Arla in talks over Settle creamery closure

Arla Foods has discussed with local stakeholders the proposed closure of its Settle creamery in North Yorkshire. The meeting, hosted by Skipton MP Sir Julian Smith, included representatives from the GMB Union, North Yorkshire Council, and local councillors.

Discussions focused on potential land options for Arla’s operations, employee support, and alternative business strategies. Arla is currently consulting with affected employees and engaging with the GMB Union and local authorities.

Further meetings are planned as stakeholders assess all possible options for the site and impacted workers.

Lawyers take on ‘World’s Toughest Row’ to raise £150,000 for Yorkshire charities

Tess Egginton
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Lawyers take on ‘World’s Toughest Row’ to raise £150,000 for Yorkshire charities
A pair of Yorkshire lawyers taking on the ‘World’s Toughest Row’ across the Atlantic gathered with sponsors and their supported charities at Alwoodley Golf Club, to toast the duo’s progress as they head towards their £150,000 fundraising target. David Knaggs and Richard Larking, who will set off to row their seven-metre boat ‘Brizo’ across the Atlantic from La Gomera in the Canary Islands to Antigua in December this year as Team GREENS2BLUE, have already received sponsorship topping £50,000. The duo hatched the plan to take part in the race while golfing together at the Alwoodley Golf Club and are raising funds for charities Maggie’s, which supports people with cancer, their families and friends, and Friends of Alfie Martin, which raises funds for neonatal equipment at the Leeds teaching hospitals. Aged 60 and 59 when the race kicks off, the pair will be two of the oldest participants in a gruelling transatlantic voyage that will see them celebrate Christmas and New Year thousands of miles from their families, facing 40ft waves and hazards including shipping traffic, whales and potential marlin strikes. David said: “It feels great to mark the progress we’ve made towards our fundraising target with the help of our supporters. With a charity ball and golf day still to come in the summer, we’re confident that we can make it all the way by the time we head to the race start in December. “We’re both training really hard as the day draws ever closer and the challenge of more than possibly fifty days at sea becomes more and more real, so this gathering is a little light relief from our diet and exercise regimes.” “The support we’ve had from businesses, friends and well-wishers at the golf club where we first had the idea to take on this challenge has been fantastic, and we’re grateful for everything people are doing to help us towards our target,” added Richard. The pair have secured sponsorship from regional and local businesses since they announced their participation in the race last year. In addition to headline sponsor, independent business rescue and recovery specialist Begbies Traynor, they now have 12 other corporate supporters including Ginetta; Happy Drains; Optivet Referrals; Cellular Pathology Services; Macintosh James & Partners Wealth Management; El Gato Negro Tapas; Middleton Law; Richard Fahey Racing; Springfield Healthcare, Waterer’s Services Limited; Walker Morris and SBFM Ltd. As well as sponsorship, the two charities will benefit from the proceeds of fundraising events including a golf day at Alwoodley Golf Club on 29 May and a black-tie Midsummer Night ball at the Pavilions of Harrogate on 21 June. Julian Pitts, regional managing partner for Begbies Traynor’s 10 offices across Yorkshire, Humberside and the North East, adds: “It’s remarkable to see the progress that Richard and David are making towards their targets, and the physical and mental preparation they are undertaking to make sure they are properly equipped for the weeks of isolation and exertion they have ahead of them once they depart from the Canary Islands in December. “To have already received the sponsorship and donations that they have towards their ambitious fundraising target is a great achievement and hopefully more sponsors and supporters will join the effort in the run up to the race start.” Further opportunities to support the pair in their fundraising, including details of the fundraising events, can be found on www.greens2blue.co.uk

Investec backs student housing portfolio with £86.5m refinancing

April Lara
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Investec backs student housing portfolio with £86.5m refinancing

Investec Bank has provided an £86.5 million refinancing loan for a five-property purpose-built student accommodation (PBSA) portfolio across London, Nottingham, Newcastle, Sheffield, and Lincoln. The assets, managed by Global Student Accommodation’s (GSA) operating partner Yugo, include 1,460 student beds.

The refinancing includes upgrades to two properties, enhancing bedrooms and communal spaces. This marks the second deal between Investec and GSA, with the bank having financed over £1.15 billion in PBSA projects since 2011, supporting more than 22,000 student beds across 62 developments in 26 UK cities.

Despite economic challenges, Investec continues to prioritise PBSA, citing strong demand and the sector’s resilience. The deal aligns with the bank’s strategy to expand its lending portfolio through larger financing agreements.

Inflation sees February fall

Tess Egginton
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Inflation sees February fall
UK inflation dropped in February, according to new figures from the Office for National Statistics (ONS). Measured by the Consumer Prices Index (CPI), inflation came in at 2.8% in the 12 months to February 2025, down from 3% reported in January, and below forecasts of 2.9%. The largest downward contribution to the change came from clothing. Core inflation, meanwhile, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, stood at 3.5% in the 12 months to February, down from 3.7% in January. Martin Sartorius, Principal Economist, CBI, said: “Inflation remained firm in February, broadly in line with the Bank of England’s expectations. Looking ahead, price pressures are set to rise again in April, driven by higher energy costs, regulated price increases, and the passthrough of Autumn Budget measures. “We continue to expect that the Monetary Policy Committee will cut interest rates at a quarterly pace over 2025, in line with its ‘gradual and careful’ forward guidance. This should help ease the strain of high borrowing costs on businesses and households.”

Retailers boost wages as competition for workers intensifies

April Lara
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Retailers boost wages as competition for workers intensifies

Major UK retailers have increased pay rates in 2025 to attract and retain staff amid rising living costs. Aldi, Lidl, Tesco, and John Lewis offer higher wages for store employees.

Aldi raised its minimum hourly rate to £12.75 nationally and £14.05 within the M25 in March, with further increases to £12.85 and £14.16 set for September. Lidl matched Aldi’s £12.75 national rate and pays £14.00 within the M25, with longer-serving staff earning up to £13.65 nationally and £14.35 in London.

Tesco has invested £180 million in wage increases, setting hourly pay at £12.45 to £12.64 nationally and up to £13.85 in London. John Lewis and Waitrose opted to reinvest £114 million into employee wages instead of offering partner bonuses, setting new shop floor rates at £12.40 nationally and £13.85 in London.

Other retailers making notable pay increases include B&Q (£12.71 nationally, £14.05 in London), Sainsbury’s (£12.45–£12.60 nationally, £13.70–£13.85 in London), and Marks & Spencer (£12.60 nationally, £13.85 in London).

The pay hikes reflect ongoing competition in the retail sector to offer competitive wages and retain workers in a tight labour market.

CityFibre expands UK footprint with Connexin acquisition

April Lara
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CityFibre expands UK footprint with Connexin acquisition

CityFibre has acquired Connexin’s full-fibre infrastructure, expanding its presence in Hull and East Riding and adding up to 185,000 premises to its network. The financial details of the deal have not been disclosed.

The acquisition includes Connexin’s existing network, which covers more than 80,000 premises, with plans for an additional 20,000. CityFibre will also take over Connexin’s Project Gigabit contract, delivering gigabit-capable broadband to over 34,000 hard-to-reach premises in Nottinghamshire and West Lincolnshire.

Connexin’s XGS-PON network will be integrated into CityFibre’s wholesale services, with full integration expected later this year. This move aligns with CityFibre’s broader strategy to reach at least eight million premises across the UK.

This acquisition follows CityFibre’s purchase of Lit Fibre in May 2024 and previous deals, including FibreNation from TalkTalk in 2020 and national network assets from KCOM and Redcentric.

Founded in 2011, CityFibre is a fibre-only provider competing with Openreach and Virgin Media O2. The company sees market consolidation as essential for the UK’s fibre rollout.

AI investment key to UK’s economic recovery, says Bank of England chief

April Lara
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AI investment key to UK’s economic recovery, says Bank of England chief

Bank of England Governor Andrew Bailey has identified artificial intelligence as a potential driver of long-term economic growth, comparing its impact to past technological shifts like electricity. Speaking at the University of Leicester, Bailey suggested AI could improve national income and help reverse the UK’s sluggish productivity growth.

Between 2010 and 2019, UK productivity increased by just 0.3% annually, far below the pre-2008 financial crisis average of 2%. This has strained public finances, with expected government spending cuts adding further pressure. Bailey emphasised that maximising AI’s benefits will require investment in workforce skills and infrastructure.

His comments come as businesses watch for signals on interest rate policy. The Bank of England has held rates at a 16-year high of 5.25%, despite inflation falling from 11.1% in October 2022 to 3.4% in February 2025. Lower borrowing costs could provide short-term economic relief, but the Bank remains cautious about premature rate cuts.

AI adoption is expected to reshape industries by automating tasks, improving efficiency, and cutting costs. A 2023 PwC report estimates AI could contribute up to £232bn to the UK economy by 2030, boosting GDP by 10.3%. However, concerns remain over its impact on employment and wage distribution.

Yorkshire mid-market businesses remain confident despite rising costs

April Lara
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Yorkshire mid-market businesses remain confident despite rising costs

Mid-sized businesses in Yorkshire are showing increased confidence despite rising employment costs, according to Grant Thornton UK LLP’s latest Business Outlook Tracker.

The survey found that 75% of mid-market firms in the region plan to pass higher employment costs onto customers, up from 71% in December. Many businesses also adjust compensation strategies, including limiting pay rises, reducing bonuses, and reviewing employee benefits.

Despite these cost pressures, 83% of Yorkshire’s mid-sized firms are optimistic about their funding position for the next six months, up from 79% at the end of 2024. This contrasts with large UK corporates, which have reported declining confidence in revenue growth, funding, and overall economic outlook.

Grant Thornton’s Yorkshire and North East Partner, Dan Dickinson, attributes this resilience to the region’s diverse economic landscape and adaptability. He notes that local firms make strategic decisions to sustain growth and remain competitive, positioning them well for future challenges.

Kirklees Council appoints development partner for new housing development

Tess Egginton
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Kirklees Council appoints development partner for new housing development
Kirklees Council has appointed a development partner to purchase, design, and deliver a new housing development in Almondbury. The Fenay Lane site was identified as part of the council’s housing growth strategy and has undergone a competitive land sale process. Vistry Group has now been confirmed as the development partner to build around 150 new market and affordable homes. Once constructed, the affordable housing will be owned and managed by Yorkshire Housing. Councillor Graham Turner, Cabinet Member for Finance and Regeneration, said: “When selecting a development partner, we always work on the basis that they should share our values and have the best interests of local people and communities at heart. From their bid, we can be confident that Vistry will bring a quality development to Almondbury, delivering the right mix of housing to meet the needs of our residents. “By partnering with trusted developers, we can work towards achieving our housing needs without ongoing financial input from us as a council. We are currently in the process of updating our Local Plan and Housing Growth Strategy, but it is clear that to address the local and national housing shortage, we will need to increase the number of houses built in Kirklees while also meeting our climate goals.” Andrew Poyner, Managing Director of Vistry West Yorkshire, said: “We’re excited to have been selected by Kirklees Council and share its vision for the Fenay Lane site. Our purpose as a responsible developer is to work in partnership to deliver sustainable homes, communities and social value, leaving a lasting legacy of places people love.” Vistry will begin to undertake design work on the scheme and are expected to submit a planning application during winter 25/26. It is hoped construction will start on site in late summer 2026.
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