< Previous10 Business Link www.blmforum.net COMMERCIAL PROPERTY Commercial property remains one of the strongest sectors and has aided the recovery of the region greatly. There’s reason to celebrate, but the success story has come at the cost of a skills shortage the industry will need to look at. L incolnshire and Yorkshire have much to celebrate in relation to commercial property, and that was a theme held at the Property & Business Investment Lincolnshire Expo last month. The event took place at the Bentley Hotel, Lincoln. The free expo, for which Business Link is a proud partner, is a well targeted event aimed at the Construction, Property, Business, Investment, Finance, Professional Services and related B2B markets and saw a busy turnout on the 27th April. This comes with good reason, as despite many sectors struggling to bounce back after lockdown, the property sector has been a shining light for the economy. In the south of Lincolnshire, the South Lincolnshire Food Enterprise Zone (FEZ) has secured its first business development, with AJS having purchased a plot covering just over 0.6 acres to build a two-storey office, research and development facility and workshop premises over 12,905 square feet. Cllr Colin Davie, executive councillor for economy at the county council, said: “This is the first of many businesses that will benefit from locating at this amazing, collaborative site. The South Lincolnshire FEZ offers so much for local, national and multi-national firms at the forefront of the agri-food and technology sector. We’re providing the infrastructure, collaboration opportunities and research capabilities that businesses need, but we’re also Busy times for Lincolnshire and Yorkshire Busy times for Lincolnshire and Yorkshire 10-13.qxp_Layout 1 04/05/2022 12:13 Page 1www.blmforum.net Business Link 11 COMMERCIAL PROPERTY 13 Á making it quicker and easier for them to locate here.” In South Kesteven, a major milestone in the development of St Martin’s Park, Stamford, has been met as demolition and clearance of the former Cummins factory commences. South Kesteven District Council and Burghley have appointed Contractor GF Tomlinson Group to undertake the work and they have now begun site set up, with welfare units placed on site. Demolition works will begin shortly and will continue for the remainder of the year. The 14.7-hectare St Martin’s Park will include a designated commercial area; mixed-use area; retirement village; range of residential properties, including © stock.adobe.com/SakhanPhotography affordable homes; and areas of green and open space. Kelham Cooke, Leader of South Kesteven District Council, said: “This high- quality, well-designed and sustainable development will preserve and enhance the setting of this part of Stamford. The important mixed-use development will bring significant benefits to the town and wider area, providing new employment opportunities and homes for the town and district. We are really pleased to have reached the next phase of this collaboration which supports our vision for the area and are proud to be creating a legacy for future generations, while protecting our strong heritage.” In Yorkshire, BNP Paribas Real Estate (BNPPRE) has acted for Marrico and Helios on the £300m joint venture of its Lisbon Street BTR scheme in Leeds, which has been acquired by US multifamily investor and operator Cortland Group. Through the new funding deal, the US multifamily specialist will own and operate the apartments. The joint venture between Marrico and Helios will deliver the £138m residential element of the Lisbon Street development, which comprises 629 apartments. It also includes 14,000 sq ft of amenity and commercial space. Also in Leeds, a major new residential development with more than 500 10-13.qxp_Layout 1 04/05/2022 12:13 Page 2Armstrong house Armstrong House, Armstrong Street, Grimsby, North East Lincolnshire DN31 2QE Tel: (01472) 310301 Email: s.fisher@blmgroup.co.uk Superb Location - - Close to the ports of Grimsby & Immingham - Great motorway links - Close to the town centre Secure off street parking High speed internet availability A range of affordable office sizes 3 3 3 3 Last remaining office suites Prime location in Grimsby Offering a prime position in Grimsby, Armstrong House on Armstrong Street is ideally located. Close to the ports of Grimsby and Immingham, motorway links and the town centre, off-street parking is also available for all staff and visitors, meaning it’s convenient too. Our spacious, welcoming offices are located on the ground floor and are both secure and CCTV-monitored, giving you the ultimate peace of mind. At Armstrong House, when it comes to affordability and with a range of office sizes there are opportunities for all types of business. If you require virtual office services, prices start from just £15 per month. For more information, or to discuss your office requirements call 01472 310301. 10-13.qxp_Layout 1 04/05/2022 12:13 Page 3www.blmforum.net Business Link 13 COMMERCIAL PROPERTY affordable homes will be built on brownfield land west of Leeds city centre, after plans were approved by the council. Latimer, the development arm of Clarion Housing Group, has been given the green light to transform the vacant 13-acre riverside plot on Kirkstall Road and deliver a landmark 1,437-home scheme offering a range of housing options to local people. The not-for-profit developer acquired the site in 2020 and will provide a total of 503 affordable homes – representing over a third of all the new homes built and exceeding the minimum requirements set in the city! While the quantity and quality of works being undertaken remains consistent, one aspect that casts a pall on the industry remains that of skilled worker shortages. This is a problem not just in Yorkshire and Lincolnshire, but nationally and represents a growing concern for construction companies. Some projects have stalled as a result, and the matter has gotten so severe that the Mayor of London has called for temporary visas for construction workers – a scheme which is sure to draw some controversy with the country’s views on Brexit. While more can and likely does need to be done closer to home to make people aware of the opportunities in construction – and to fight the stigma of it being an unskilled or low-paying career – the construction sector is not the only one facing this issue. That puts the sector at odds and in competition with other industries also fighting to influence students to pick degrees or courses in those directions. What can and should be done is up for debate, and every governing body, association and university have had their say. Degrees, apprenticeships, specialised schools – there is much to offer in terms of opportunities to study, but the real difficulty seems to be in generating interest in them. It might be time for construction companies to start approaching the next generation directly, either in person or through social media, to try and glam up the industry and make sure there are enough skilled workers to keep all these projects going. © stock.adobe.com/shintartanya © Matthew Jones Photography - www.matthewjonesphotography.co.uk © Matthew Jones Photography - www.matthewjonesphotography.co.uk 10-13.qxp_Layout 1 04/05/2022 12:13 Page 414 Business Link www.blmforum.net CORPORATE FINANCE M any financial issues have been heightened in the wake of the pandemic, the effects of which are continuing to be felt even into 2022. These are leading businesses to secure finance to fill the shortfall and take measures such as redundancies to improve cashflow. There are many challenges and potential pitfalls to overcome for businesses now that Government support has ended and the economy is expected to stand back on its own two feet, especially given Sunak’s less than impactful spring statement. One of the biggest threats for many companies is that cashflow is weak as outstanding and uncollected invoices build-up and there’s a halt in the movement of products and services. Since lockdown, many businesses have been more cautious and have made cost saving measures – such as searching for cheaper suppliers or letting go of some suppliers altogether. Elsewhere, companies have lost contracts and longstanding clients as other companies seek to reduce overheads or have been forced to shutter their operations in the wake of the outbreak. On its own, this weaker cashflow would be a major hindrance, but it comes amidst an already established culture of late payments that has pervaded the corporate world for years. A study from the Federation of Small Businesses (FSB) shows that sixty-two per cent of small businesses have been subject to late or frozen payments. Only ten per cent of those firms surveyed have agreed to payment terms with clients, meaning most of this fresh wave of poor practice has not been formally signed-off by creditors or debtors. Indeed, late payments contribute to 50,000 insolvencies every year, costing the economy £2.5 billion. If it was an issue that businesses were contending with before the outbreak, it’s only been heightened since. However, there are ways in which a company can secure funding to cover the gap in cashflow posed by late invoices. Chief among these is invoice finance. This is the simplest means of releasing cash tied up in a business’s outstanding invoice. It sees a business sell its invoices to a third party who will advance some of the funds it is worth up front for a cut. Thousands of businesses already rely on this kind of financing to maintain a healthy cash Flagging finance After lockdown, and now with an uncertain stock market due to the war in Ukraine, securing finance has become difficult. We look at some of the measures and methods involved. 16 Á 14-17.qxp_Layout 1 04/05/2022 12:14 Page 1www.blmforum.net Business Link 15 CORPORATE FINANCE © stock.adobe.com/mnirat 14-17.qxp_Layout 1 04/05/2022 12:14 Page 216 Business Link www.blmforum.net CORPORATE FINANCE position, whilst others use it to take back control of cashflow issues that arise from late and unpaid invoices. Perhaps the biggest draw is that businesses can be paid most of an invoice within forty-eight hours instead of the typical thirty-day period specified on most invoices. Of course, this is far from the only finance solution businesses can draw from. Asset- based finance is a specialised method of providing companies with working capital and term loans that use accounts receivable, inventory, machinery, equipment and real estate as capital – essentially, any loan to a company is secured by one of that company’s assets. This option is commonly used to pay for expenses when there are gaps in a company’s cashflow, but it is also frequently used for start-up financing as well as refinancing existing loans, financing growth, mergers and acquisitions, as well as management buyouts and management buy-ins. Although it’s not suited to meet every business requirement, it can prove useful for those that have stretched their credit limits with vendors and reached lending capacity at the bank. Companies can also take out loans to fill the gap and bolster cashflow, though some companies may already be at their limit with their banks or otherwise don’t meet the requirements for securing loans with traditional lenders. In these situations, companies can turn towards alternative lenders and finance providers. Private equity, for example, is where investors provide long-term equity capital investment in a company in return for either shares, a percentage stake in the business and/or, sometimes, a seat on the board. Although many businesses might be loath to dilute their ownership, private equity does offer a good option of raising capital for businesses that aren’t 14-17.qxp_Layout 1 04/05/2022 12:14 Page 3www.blmforum.net Business Link 17 CORPORATE FINANCE ready to list on the stock exchange. Another form of private finance is an angel investor – a high net worth individual who makes use of their own personal disposable finance and makes their own decision about making an investment. Angels would normally take an equity stake in a business in return for providing equity funds. As well as capital, angels can also provide their experience, knowledge and contracts, making them especially attractive to early-stage businesses. This might be of particular interest given that the stock market has been unpredictable since Russia declared war on Ukraine, leaving many investors looking for avenues to invest their money. Every investor is different and will therefore provide differing amounts, but typical investments range from between £10,000 and £500,000, though deals of up to £2 million are becoming more commonplace as angels group together in syndicates. Although angels are one of the most significant investors in start-ups, that shouldn’t deter more established firms from making enquiries. It’s important to keep in mind that securing an angel can be a difficult and protracted process, as well as being harder to research and contact compared with a private equity firm. Ultimately, it comes down to the persuasiveness of business leaders and the profitability of a company. Though no one wishes to consider it, if a company is in a weak position and is not attractive to investors, equity groups or the bank for a loan, then it might be time to take a good look at the fundamental values and viability of the business itself and see whether it is something worth keeping afloat, or if there might be more difficult conversations that need to be had. © stock.adobe.com/Andrey Popov 14-17.qxp_Layout 1 04/05/2022 12:14 Page 418 Business Link www.blmforum.net STOKES TEA & COFFEE Q&A 2022 brings with it soaring costs and huge challenges for SMEs. British independent businesses are the backbone of Britain, and the UK hospitality sector makes up a large chunk. It employs 2.9 million people, generates £130bn in economic activity and pays £38bn in taxation. It’s also the third largest private sector employer in the UK. The ongoing reduction in non-essential spending by consumers as living costs skyrocket means hospitality business owners are having to work harder to win their share. The sector has been grappling with staff and skills shortages too, all at a time when getting service and quality right consistently could be the deciding factor in a firm’s fortunes. Lincoln-based, family-run, Stokes Tea & Coffee has been brewing up exceptionally fresh roasted beans and blends for both retail and wholesale customers for 120 years. The company has a long history of supplying wholesale coffee, tea, machines, servicing, and training as well as operating two of the busiest cafés in the city of Lincoln. With most of its trading associated with the hospitality sector, Stokes is well placed to give an insight into to what the ‘coal-face’ looks like for businesses. Nick Peel is the current MD and the 4th generation in the family to run Stokes, he talks about what’s being done to support the sector. What are the biggest challenges for your sector right now? “I think most businesses are feeling somewhat ‘punch-drunk’ from the breath-taking extent and speed of cost rises. Hospitality has seen its fair share of eye-watering challenges of late, with staffing shortages and the dramatic effects of the pandemic. Everyone, everywhere is feeling the pinch, meaning customer spending power is being weakened. The fight to win and keep customers is intensifying and only businesses that provide the highest levels of quality and service stand a realistic chance. We work closely with our customers to support them. It sounds like a cliché, but we really do understand that our success depends on theirs. It’s what we’ve always focused on and is front and 120 years with a trained eye on the future! Nick Peel MD at Stokes Tea & Coffee Family-run and Lincolnshire-based Stokes Tea & Coffee, has been brewing up our favourite drink for 120 years, now they’re sharing knowledge and magic with more people through a dedicated training academy – we sat down with Managing Director, Nick Peel for a cup of freshly roasted coffee to find out more. 18-19.qxp_Layout 1 12/05/2022 13:44 Page 1www.blmforum.net Business Link 19 STOKES TEA & COFFEE Q&A centre for us. Staffing and skills shortages have been an issue across the sector so it’s vital that our customers get the support and training they need to deliver the best product to keep and win their customers, that’s where our Accredited Training Academy really comes into its own. Tell us about the Stokes Training Academy Our purpose-built Barista Training Academy is located at our HQ, at the Lawn Building in Lincoln. It was one of the first of its kind in the area and is a dedicated facility right next to our coffee roastery. It is one of only fifty in the UK, accredited by the BSA (Beverage Standards Association). We provide everything from virtual experiences to corporate clients like Microsoft and Amazon, where they join our Training Academy Manager online for professional tasting experiences using our specially designed kits, which is a big hit for team building and corporate hospitality, right through to physical, in person City & Guilds courses for professional baristas and start up hospitality businesses. We also offer a wide range of training and experiences onsite including tours of our roastery to the general public and budding baristas everywhere! How is the Training Academy helping the hospitality sector? Coffee can make or break a business. We know that quality is the most important factor in coffee shop success. Keeping customers coming back depends on much more than using the best beans or the best machines. We’re helping our wholesale customers to train staff so they can keep standards high, and their customers coming back - it’s vital to ensure their businesses survive and thrive. We offer free training designed specially to help them avoid common mistakes and pitfalls by adopting simple steps to keep coffee consistently perfect and customers happy. We put a lot of love in to sourcing and roasting the best coffee beans so it’s also important that the quality flows right through to the final cup! How is Stokes helping to address the skills gap in hospitality? Our family business has been roasting coffee, blending tea and training baristas for well over a century! We’ve used our know-how to create a superb selection of experiences and courses so that literally everyone can explore the wonderful world of tea or coffee. As well as providing essential training for businesses, budding baristas, and experiences for the public with a keen interest in coffee, we also work with organisations to support skills and employment such as the Princes Trust, Lincoln College and even the DWP. It’s immensely rewarding to help equip people with skills and newfound confidence, and of course, it helps the industry because it’s providing much needed skills and newfound enthusiasm for hospitality too.” There’s no doubt that the prospects are challenging for all businesses now. But the willingness of some to share skills, know-how and work collaboratively may well be the factor that secures fortunes. Stokes is a company that is proud of its history and heritage. With further plans afoot, this great Lincolnshire business has an exciting future and is looking forward to its next 120 years! Stokes Master Roaster Mike Find out more at www.stokescoffee.com 18-19.qxp_Layout 1 12/05/2022 13:44 Page 2Next >