Acquisitive Yorkshire accountants snap up London firm
Chartered accountancy and business advisory firm, Hentons, has acquired London-based accountancy firm Clayton Stark & Co, for an undisclosed sum.
The acquisition of Clayton Stark & Co will see turnover at Hentons climb to £8.3m and staff numbers increase to 130.
The investment into the London office by Yorkshire-headquartered firm Hentons, reflects the firm’s strategy of increasing its national footprint and service offering to clients.
Managing Director at Hentons, Peter Watson, said: “Clayton Stark & Co has a particularly strong audit offering and the entire team will join and complement our colleagues in London, who provide a full-service offering including audit, accounts, financial planning, wealth management and taxation services.”
Jan Kariya, senior partner at Clayton Stark & Co, said: “We have been trading for over 66 years and have a loyal client base who will benefit from a number of enhanced service offerings through our partnership with Hentons.
“As well as accessing a larger audit team, clients can now take advantage of specialist financial planning, tax advisory, corporate finance and cloud-based accounting solutions. Hentons also has specialist payroll teams, which several of our clients are keen to use.”
Managing partner at Hentons, Nadeem Ahmed, added: “Last September, we created Hentons Corporate Finance via a joint venture with South Yorkshire based Mackenzie Spencer and with this latest acquisition, we now employ over 130 people across our offices in London, Leeds, Sheffield, York, and Thirsk.
“The acquisition underpins our commitment to our team and clients and firmly places us as a significant industry player, as well as one of the top 100 firms in the UK, specialising in advising SME businesses, family companies, entrepreneurs, and high net worth individuals.
“With ambitious acquisitive and organic growth plans for the future, we have seen that the growing demands on compliance, the need to invest in technology and the challenges of attracting the best talent in a competitive market place, has prompted many well established independent firms of accountants to consider the benefits of joining Hentons, as we are a proactive practice that can help unlock their potential.”
Funding fuels growth for Grimsby engineering specialist
A Grimsby-based manufacturing company is looking to create eight new jobs and target multi-million-pound growth after securing a loan from alternative lending provider Finance For Enterprise and the Northern Powerhouse Investment Fund (NPIF).
Operating from Grimsby’s Enterprise Village, Smartflow Couplings now specialises in manufacturing innovative hose couplings which are used to improve both safety and efficiency whilst transporting hazardous liquids.
The company recently secured support from Innovate UK to bring a number of new products to market. Throughout the COVID-19 pandemic, the company worked closely with the National Engineering Laboratory and National Physics Laboratory to rigorously test the company’s new designs before bringing them to market.
Since the company was established in 2016, Smartflow Couplings has enjoyed significant organic growth. Up until 2019, it produced just one type of coupling, which was used by businesses operating in the oil, gas and chemical industries.
After successfully developing ideas for its new product range, the company spent much of the COVID-19 pandemic undertaking extensive testing, enabling 20 new types of coupling systems to be brought to market. With the new range launching in 2021, Smartflow Couplings quickly found that demand for its products were outstripping the number it could supply to customers. In order to fulfil the growing numbers of orders, Gary and his team sought additional finance and contacted Finance For Enterprise for support.
Working with investment manager Jeremy Meadowcroft, the company was able to secure a six figure loan, jointly funded by Finance For Enterprise and NPIF – BEF & FFE Microfinance, which is managed by BEF & FFE and part of the Northern Powerhouse Investment Fund.
With funding in place, Smartflow Couplings has been able to successfully reduce lead times and meet the growing demand for its new range of products. As a direct result of the financial support provided by Finance For Enterprise and NPIF, the company is aiming to treble its workforce, as well as target an eight-fold increase in turnover within the next two years.
Gary Thompson, Managing Director of Smartflow Couplings, said: “Smartflow Couplings has performed well over the past five years and until now, we’ve been entirely self-funded. However, we recognised that to reduce lead times and increase production capacity, additional investment would be needed to help us reach the next stage of our growth journey. When we secured a grant from Innovate UK to help us increase the number of products in our range, we saw this as a catalyst to drive growth within the business.
“When we launched the product range at the end of 2021, I knew this would be transformative for the business, but there were also challenges we needed to overcome. For example, purchasing additional raw materials and recruiting staff to reduce lead times. I spoke to Jeremy and he talked through the different funding options available to us. He made the application process very straightforward, and kept me updated throughout the process.
“The funds Finance For Enterprise helped us to secure has enabled us to purchase the essential raw materials to produce our new valve range, and we’re also hoping to recruit new members of staff as the business grows. The result of the investment has also meant that we’re able to increase capacity in the business, helping our customers to benefit from lower lead times.”
Jeremy Meadowcroft, investment manager at Finance For Enterprise, said: “The Recovery Loan Scheme was created to help businesses prepare for future growth after being impacted by the COVID-19 pandemic. Having invested significant amounts of money in research and development to bring new products to market, Smartflow Coupling’s plans were impacted by the COVID-19 pandemic, due to the impact of sourcing raw materials.
“The support we were able to provide through the Northern Powerhouse Investment Fund and the Recovery Loan Scheme is likely to see the business enjoy significant future growth. Since launching the new product range the company has seen a significant rise in orders from across the world and with plans to treble its workforce, within the next two years, the innovative work Gary and his team are undertaking is having an immediate positive impact upon the local economy.
“Since providing Smartflow Couplings with the additional funds needed, the company is already recruiting members of staff, as well as providing the vital cashflow to overcome the challenges associated with the rising costs of raw materials.”
Wedding venue acquires a further 29 acres of estate land
The owners of Bawtry Hall Wedding Venue and the town’s Crown Hotel have acquired 29 acres of the former estate of Bawtry Hall.
This acquisition adds to the portfolio for Directors and Shareholders, Craig Dowie and Jason Cooper, who also own and operate the Bawtry Hall Wedding Venue and The Crown Hotel.
Craig Dowie said: “We are excited at the purchase of this woodland as our next phase of developments in Bawtry. We have two outstanding successful venues already with Bawtry Hall and The Crown, and this land has the perfect location to expand our leisure tourism operations in Bawtry. Work will soon begin making the woodland area and lake safe for our future plans and development.”
Jason Cooper added: “Acquisition of this important part of the former Bawtry Hall Estate not only allows us help to return Bawtry Hall to its former glory, but also continues our desire to make Bawtry a leading leisure destination for all.”
Fisher German completed the purchase.
British Steel sections support world-leading robotics facility in Scotland
Construction continues on a world-leading research facility for robotics and artificial intelligence, using about 350 tonnes of structural sections supplied by British Steel, which makes them at Scunthorpe and Teesside.
Based at Heriot-Watt University’s Edinburgh campus, the National Robotariumm is supported by £21 million from the UK Government, and £1.4 million from the Scottish Government as part of the Edinburgh and South East Scotland City Region Deal.
Expected to open in autumn this year, it will create innovative solutions to global challenges using cutting-edge research, product design and industry collaboration.
Bringing together academics and global companies, the facility will provide a catalyst for entrepreneurship and is expected to deliver sustainable economic benefit to Edinburgh, the UK and beyond. Key areas of research application will include hazardous environments, offshore energy, manufacturing, construction, healthcare, human-robot interaction, assisted living and agritech.
Innovative design means the cutting-edge resources will be matched by the building itself, with a focus on sustainability and energy efficiency. In winter, the intelligent façade will provide solar heat and recycle warm air. An ecological zone will integrate sustainable urban drainage systems, while a solar PV array will be installed on the roof. EV charging spaces will also be available. British Steel has supplied 350 tonnes of structural steel to fabricator BHC Limited for the facility, which will be the largest and most advanced of its type in the UK.
Apprentice star highlights T-Levels as route to employment
As many young people prepare to make life-changing decisions on their further education and career choices, East Midlands parents of 15 and 16-year-olds admit to having a bleak outlook on their child’s working future.
According to new research from the Gatsby Charitable Foundation over 93% of parents from the East Midlands think the job market will be concerning and uncertain when their child leaves education. However, businesses in England offer a contrasting outlook as 46% have experienced staff shortages in the last 12 months, and will be actively seeking new talent.
Whilst employers seek the technically trained people they need to fill roles, a huge 95% of parents from the East Midlands admit to worrying about their teenagers’ working future with the top concerns including that they will go into a job they dislike or hate (54%), they won’t be able to find a job (47%) and they won’t have enough work experience to get the job they want (31%).
Despite these concerns and 98% of parents from the East Midlands, many are unaware of T-levels – a new qualification focused on the real world of work.
Designed with employers across multiple industries, T Levels offer young people aged 16-19 an ideal first step into their future career. Combining classroom study with a 45-day industry placement, young people can put learnt skills, attitudes and knowledge into action, while also getting exposure to potential employers. The two-year T-level course offers a wide range of subject choices including Healthcare Science, Education and Childcare, Accounting, Digital Support Services, Legal Services, Management and Administration and many more. After a T-level young people may go onto employment, an apprenticeship, a higher technical course, or a degree as their next career step.
In the East Midlands, 29 schools and colleges already deliver T-level courses including Derby College, Leicester College, Loughborough College and University Academy Holbeach, with more to follow.
Apprentice star and father-of-two Tim Campbell said: “This term is a crucial time for young people to make their future choices, whether they decide to go into further education, or enter the working world. While many parents feel clued-up on some of the pathways their children can take, such as A-levels, this campaign aims to fill in any knowledge gaps when it comes to the recently introduced T-level.
“T-levels offer children the opportunity to develop a deep knowledge and understanding in a subject they are passionate about, then take their knowledge, attitude and practical skills to the next level through an industry placement. After a T-level your child could step into employment, an apprenticeship, a higher technical course, or a university degree.
“As both a businessman and parent, I can see the unique benefits T-levels present to both parents and employers. Parents can be reassured that their children are finding out more about the career opportunities open to them, while building their confidence and life skills. At the same time employers recognise that T-levels cover the key knowledge and skills areas of the most in-demand and growing sectors in the country, helping to address the skills gaps businesses are reporting.”
New Chilean export market reckoned to be worth £20m over five years for pork producers
UK pork producers will be able to export to Chile for the first time, in a move estimated to be worth £20m in the first five years of trade.
The new market creates new export opportunities for the pig industry as the Government, the UK Export Certification Partnership and Agriculture and Horticulture Development Board continue working to develop market access opportunities as part of work to support the sector.
This builds on measures including the launch of an immediate review of fairness in supply chains in the pig sector, using powers under the Agriculture Act 2020.
Farming Minister Victoria Prentis has held various roundtables with farmers and industry representatives and spoken to the agricultural leads at the major banks to ensure that they are showing pig farmers as much flexibility as possible. The Government has additionally introduced a Private Storage Aid Scheme, Slaughter Incentive Payment Scheme, and a bespoke temporary visa scheme for pork butchers.
The UK exported £339m of pork in 2021, with over two thirds going to non-EU destinations, demonstrating the value of new markets. Chilean authorities have now opened up their market to 27 firms across the UK.
Farming Minister Victoria Prentis said: “The pig sector is facing a range of challenges and we must make use of all levers available to us. That includes new export markets, and it is great to see the Chilean market open its doors to our pig producers. This will be worth £20m over the next five years and will build on other measures we have introduced to bolster the industry.”
Scotch and salmon lead bounce back in food exports
Recovery in sales of scotch and salmon to non-EU countries are leading a bounce back in exports, according to the latest figures from the Food and Drink Federation.
Sales to non-EU countries grew over 8% compared to 2020, driven by a strong recovery in exports of whisky (+18.7%) and salmon (+20.6%), and with breakfast cereals and soft drinks back above pre-pandemic levels.
Exports to East Asia are recovering faster than in most other regions, with exports to China of food and drink worth over £800m and close to overtaking imports. The boom has been aided by a new UK-Japan trade agreement entering into force in 2021.
Israel is an important trade partner for UK food and drink companies, with potential to expand UK trade with Israel through the renegotiation of the existing preferential trade agreement. We have seen growth in both exports (+26%) and imports (+22%) with the country since 2020.
In Central and South America, the sector saw exports increase by 62% since 2020 – above pre-pandemic levels.
Food and Drink Federation Chief Executive Karen Betts said: “These figures are encouraging, with rises in UK food and drink exports across the Americas and in Asia. Less good was our export performance in established markets in Europe and Australasia. But we have a good base to build on, and the FDF is committed to working closely with the UK government and devolved administrations to ensure that their weight is fully behind further building exports in great British food and drink.
“With the UK Government rightly determined to improve the performance of food and drink on the global stage, we anticipate further new opportunities for UK exporters to emerge overseas over the coming years. However, a key priority for our sector remains improving the implementation of the UK-EU trade agreement. Sales to the EU fell by 12% compared to 2020, with much of the drop in the first quarter of 2021 when many UK businesses paused movements and supplied customers with stockpiled goods. The FDF’s research shows there were significant improvements towards the middle and end of the year.
“One unknown is the impact of the war in Ukraine. Already we are seeing the conflict push up energy prices and impact on supplies of certain key ingredients, including vegetable oils, cereals and white fish, all of which are vital for many of our importers.”
John Whitehead, Director of the Food & Drink Exporters Association said: “We are pleased to see that exports are recovering in certain regions and in selected product categories. Finding customers in new markets is particularly challenging at a time when supply chain issues, shipping costs and inflation are impacting pricing, and our members continue to report major issues with bureaucracy as they strive to retain sales and win new business. With travel now opening up, our team is rebuilding its programme of UK groups at international trade shows to connect UK exporters with potential partners across the US, Europe, Japan and ASEAN countries all of which have great potential. We urge Government to increase its support for trade shows, a vital tool in accelerating international growth.”
Streets cover Making Tax Digital, cyber risk in light of the Ukraine conflict, year end tax planning and more in latest business support update
In its latest Business Support Update, Streets Chartered Accountants dives into Making Tax Digital, the opening of its new Birmingham office, cyber risk in light of the Ukraine conflict, year end tax planning, and more.
Making Tax Digital applies to all VAT registered businesses from April 2022. Are you ready?
Since April 2019 most VAT registered businesses with a turnover over £85,000 have been within Making Tax Digital (MTD) for VAT. This means that they have had to keep digital records and submit their tax returns via MTD compatible software. From April 2022 MTD for VAT is being extended to all VAT registered businesses. In practical terms this means that they will no longer be able to submit their VAT returns via the old HMRC portal.
New Birmingham office sees Streets become a truly pan regional assurance and advisory firm
Streets have opened a new office in Birmingham as part of its firm wide growth strategy. The new office, located at the Birmingham Business Park, along with well-established offices across the Midlands – including Lincoln, Luton and Northampton – mean Streets are now a pan regional player covering the East, West and South East Midlands.
Streets appoint Martyn Shakespear as head of banking & finance
Streets have announced the appointment of experienced banking and advisory specialist, Martyn Shakespear, as head of banking & finance. Martyn joins Streets with over 40 years’ experience of providing funding advice to SMEs and corporates.
The Streets Sessions Podcast – Do businesses face an increased cyber risk in light of the Ukrainian conflict?
In this session, cyber security specialists Rick Jones, CEO of DigitalXRaid, and Oliver Pinson-Roxborough, CEO of Bulletproof, discuss the heightened level of cyber threats faced by businesses in light of the Ukrainian conflict. In discussion they also provide practical guidance and advice to businesses about managing cyber threats and ensuring cyber security.
What does 2022/23 look like for payroll?
As we head into the final few weeks of the 2021/22 tax year, and following last year’s Autumn Budget announcements and the news of the National Insurance rise that preceded it, what do those charged with payroll need to know to start preparing for the new tax year on 6th April?
Year End Tax Planning Guide 2021/22
With the end of the tax year fast approaching, now is a good time to review your business and personal finances to ensure that they are as tax-efficient as possible. As your accountants, Streets can work with you to make sure your business and personal finances are in a strong position to weather whatever lies ahead. This includes planning to make the most of the tax-saving opportunities available to you, particularly ahead of the tax year end.
Leeds-based VR games studio acquires counterpart
Leeds-based VR games studio XR Games has acquired VR pioneers Fierce Kaiju for an undisclosed sum.
Founded by Dan Roberts and Paul Colls in July 2014 after working on some of the biggest titles in the global games industry — including Grand Theft Auto, Red Dead Redemption and Call of Duty — Fierce Kaiju’s team and IP will join the XR Games family immediately, as the Leeds-based studio continues its period of growth. This acquisition also sees industry veteran Dan Roberts join XR Games as art director.
Following an illustrious 11-year career at Rockstar Games working on the record-breaking Grand Theft Auto series, Dan went on to join Activision Blizzard studio The Blast Furnace in 2011, working on titles such as Call of Duty and Pitfall! before founding Fierce Kaiju in 2014.
Fierce Kaiju was set up to bring the expertise honed from years of working with some of the world’s biggest developers and publishers on triple-A titles to exciting new arenas, with a focus on developing for the growing Virtual Reality market.
In 2014, Fierce Kaiju developed Viral for the first Oculus store, a VR shooter that launched with Samsung’s GearVR headset, before going on to develop and publish Viral Quarantine and Viral EX.
In addition to developing and publishing its own games, Fierce Kaiju also worked as a full-service studio to help game makers build projects from the ground up, as well as supporting other development requirements.
Fierce Kaiju has built a robust reputation for industry-leading work: a reputation that originally caught the attention of Yorkshire-based gaming entrepreneur Bobby Thandi.
“From the first time I met Bobby and the team, I knew there was a shared vision,” says Dan Roberts, Fierce Kaiju co-founder. “At Fierce Kaiju we love experimenting with new and disruptive technology and turning it into something immediate, accessible and fun, and it’s clear that Bobby and the team at XR Games share the same values.
“There’s a tangible sense of excitement and energy when you enter the XR Games studio after their huge success with ‘Zombieland: Headshot Fever’ in 2021, and we knew we wanted to be a part of that.”
XR Games founder and CEO, Bobby Thandi said: “For our first acquisition, we knew we wanted to bring in a team that shared the same vision as XR Games. The experience that Fierce Kaiju brings from working at places such as Rockstar Games and Activision Blizzard will be invaluable when it comes to supporting XR Games’ trajectory.
“As the studio grows in size and takes on multiple projects with larger budgets, this expansion will ensure we can scale safely and effectively. We’re fiercely proud of our roots, and while we’re still based in Leeds, our titles are sold around the world, so with Fierce Kaiju joining the family, we’re confident that our reach will grow even further as we continue developing exciting new gaming experiences for years to come.”
Investing in manufacturing skills, jobs and technology to be key part of Brighouse Deal
Building on Brighouse’s manufacturing heritage will be one of the key parts of The Brighouse Deal – the £19 million plan to improve the town for the future for residents, businesses and visitors.
The investment will be used to develop skills, fund apprenticeships and allow local businesses to see how Industry 4.0 technology can support business productivity and efficiency.
It will be a pilot to test out the best working models and practices businesses can use to help them grow, and encourage other businesses to consider setting up in the town that continues to have one in six workers employed in the manufacturing sector.
Brighouse has a strong history of being an innovator in industry dating back to the 18th century when the River Calder provided the power for the flour milling industry and textile mills. But, like many industrial towns in England, manufacturing prospects declined steeply after World War One.
The area has been successful at replacing the jobs of the first industrial revolution with the advanced manufacturing that will characterise the current fourth industrial revolution.
The team behind The Brighouse Deal want to capitalise on this and use it as a catalyst for driving future growth across the area which is why developing industry and skills is a key part of the investment secured from government.
The money will be used to:
- Increase capacity for apprentices with an ambition to secure 70 additional roles across the town.
- Develop a new Brighouse Industrial Hub which will showcase new advanced manufacturing methods and how data analysis of processes can be used to help increase productivity and efficiency.
- Invest in innovation by encouraging more research and development in existing firms and attracting knowledge intensive businesses to the area.
