Speed of downturn eases but firms braced for slow recovery

The pace at which private sector activity fell in the region slowed dramatically last month although confidence remains subdued and firms are expecting a slow recovery as lockdown restrictions are relaxed, according to a key survey of purchasing managers. The NatWest East of England business activity index rose from a record low of 16.2 in April to 33.4 in May, although any figure below 50 still signals a fall in output. Firms in the East saw a further sharp reduction in new business during May – and despite easing markedly from April - the decline was still among the fastest on record. Order book volumes also fell and backlogs of work among both manufacturers and services firms fell steeply. Business expectations on future activity wakened slightly although firms still expect growth over the next 12 months. Headcounts were reduced, reflecting a rise in spare capacity. Despite slowing from April's record fall, the reduction was the second-quickest on record and whilst job cuts tended to involve redundancies the East saw a slower drop in employment than the UK average. John Maude, NatWest Midlands & East regional board, said: “Overall, May survey data pointed to a significant downturn in the East of England’s private sector. Despite the prospect of further easing of Covid-19 related restrictions, weak demand may hinder any recovery in the coming months.”

New strategic water pipeline alliance aims to boost region’s resilience to drought

Anglian Water has named four contractors who it will form a new strategic pipeline alliance with as part of a £350 million infrastructure contract to move water more freely from surplus areas in north Lincs to where it is scarcer in the south and east of the region. After a competitive tender, the utility will work with Costain, Farrans, Jacobs and Mott MacDonald Bentley to complete what it says is one of the largest strategic water infrastructure projects the UK has ever seen. It involves the creation of up to 500km of interconnecting pipes and pumping equipment and upgrading existing infrastructure to allow water transfer across Anglian Water's region and make the East resilient to the risks of drought. It forms a key part of Anglian's 25 year water resources management plan. Strategic pipeline alliance director James Crompton said: "The challenges of population growth and a changing climate are felt nowhere more keenly than here in the East of England, which is one of the driest parts of the UK. Starting this project is a significant part of our planned investment in the region over the next five years, which will begin to tackle those challenges and secure customer supplies well into the future."

London Southend Airport plans to invest to keep passengers moving

London Southend Airport’s owner Stobart Group is planning to invest tens of millions over coming years in an ‘enhanced passenger experience’ with measures to maintain passenger flows and avoid bottlenecks and human touchpoints in a post-Covid era. The plans follow a recent £140 million fund-raising exercise by Stobart. The airport’s already-fast security queues are set to get better following an investment in scanning equipment that means passengers will not have to take electronic devices or liquids out of their bags. Passengers should also benefit from plenty of personal space. Warwick Brady, CEO of Stobart Group said: “At London Southend Airport we will specifically design and implement an improved passenger experience for post-Covid 19 travel, making use of significant unutilised space and technology to enhance passenger confidence, while providing a cost-efficient base of operation to airlines.”

Suffolk firms more optimistic but cashflow worries persist

Suffolk Chamber’s latest survey points to an increase in activity and optimism amongst members as more firms implement phased return-to-work plans but most remain worried about cashflow. The survey on 27 May showed that 51 per cent of firms will require no notice to re-open their businesses, and a further 23 per cent will require less than a week to re-open. Fewer firms are having supply chain problems and with staff availability than in the previous week only 22 per cent  say they could possibly cease trading, the lowest figure since the start of lockdown. But nearly nine out of ten respondents are anxious about their immediate cashflow. Paul Simon, Suffolk Chamber’s head of communications & campaigns, said: “….there are still too many accounts of businesses unable to access any support whatsoever and Suffolk Chamber will continue to voice their concerns to government and to local councils to ensure that they are best able to continue trading in the months ahead.”

Peterborough-based firm receives funding through business interruption scheme

Peterborough-based Rap Industries, which manufactures office partititions and exhibition displays, has secured funding from Barclays through the government-backed coronavirus business interruption loan scheme to trade through the crisis and fulfil potential contracts. Director Caroline Johnson (right) said: “Our year was going incredibly well, however overnight our exhibition side of the business disappeared and things came to a stop. We’ve got a good grounding and foundations, which we’ve worked hard over 40 years to grow, so we were able to withstand for so long. However, when the other side of our business that manufactures office screening and partitioning started being impacted – due to customers stopping any capital expenditure – we had real concerns over operating and decided to pause the business.” The interruption loan scheme funding helped the business to support its 25 staff and hit the ground running when the lockdown is lifted.

Geoff McDonald, Barclays relationship manager who put together the funding package for the deal, added: "The CBIL funding will enable them to continue to grow the business at pace and we’re delighted to be able to support a valued customer through these challenging times."

Separately, nominations are open for Barclays Entrepreneur Awards 2020. The awards, now in their fifth year, will highlight the game-changing entrepreneurs and businesses who have made a positive impact to their communities and the wider UK economy, despite the pandemic.  There are eight award categories and nominations can be submitted at https://events.barclays.com/entrepreneurawards2020 up to 3 July.

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Norwich-based touring theatre company secures support from resilience fund

Curious directive, a Norwich-based international touring theatre company, has benefited from  New Anglia LEP’s business resilience & recovery scheme with money for a scheme to transform a medieval church on the city’s Elm Hill into a venue for creating theatre projects. Launched in 2008, curious directive’s shows explore life through the lens of science and have been performed in more than 100 venues across the world, playing to over 150,000 people. Jack Lowe, artistic director of curious directive, said: “Like all business and industry, the arts are experiencing an incredibly difficult time. Theatre will be one of the last services to re-open its doors. Our successful application to this scheme has enabled us to stabilise our income streams, with the creation of a digital laboratory in our creation space, a significant improvement on our accessibility facilities and a series of new income streams, including a new outdoor pop-up bar starting in July 2020.”

Photo: From the finale of a curious directive production

Business advice podcast explains Covid-19 guidance

Business advisers Mark Curtis and James Lay, partners at MHA Larking Gowen, have created a podcast series explaining in more detail the guidance being offered from the government on Covid-19. The series also offers business advice to help you through uncertain times.  Click here to listen to the first three episodes - To Furlough and Beyond, Pricing in a Pandemic and The Office is Dead, Long Live the Office! 

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Institute of Dirctors seeks new regional chair

The Institute of Directors is seeking a new regional chair to represent the interests of its members in the East of England. The successful candidate will oversee a region with over 2 600 members and branches in Essex, Herts, Cambs, Norfolk and Suffolk and will help drive membership growth while implementing and supporting IoD policies. Outgoing chair David Sales (right), an entrepreneur who has held the role for more than six years, said: “This is an opportunity to make a genuine difference in an important institute, with the benefit of leaving a legacy. It is an exciting time of change and a renewed focus on membership experience locally. Like every organisation we must deliver more impact with less resources.”

Simone Robinson, IoD regional director for the East said:“The successful candidate will take on this challenging and rewarding role at a time of great change for organisations across the world, and most crucially for those responsible for leading them." The deadline for applications is 22 June with virtual interviews on 29 June. To find out more visit https://www.iod.com/events-community/regions/east-of-england/news/details/iod-east-region-searches-for-experienced-innovative-new-regional-chair

Meanwhile, business debt will slow the economic recovery from coronavirus unless steps are taken to make the burden more manageable for SMEs, according to the IoD. In a poll of 720 company directors, half said that debt their firms had taken on during the crisis would have a negative impact on their recovery, while even more 57 per cent said it would hold back their investment plans over the next two years. The IoD has proposed that small firms should be able to convert government-backed loans with repayments kicking in once the business has turned a profit, along the same lines as student loans.

Law firm appoints new technology specialist

Law firm Birketts has appointed Andrew Priest, a commercial lawyer and intellectual property specialist with over thirty years' legal experience, as a partner in its corporate and commercial team. He has experience advising a range of private and public sector clients across commercial law firms in Cambridge, London, Edinburgh, Glasgow and Brussels. With an MBA from Manchester Business School, he is well-placed to offer advice on commercial and technology-related arrangements, projects and deals. He has wide experience in the ICT, cleantech and life sciences sectors, specialising in technology and business process outsourcing, technology transfer and licensing, and telecoms projects, both nationally and internationally. Adrian Seagers, partner and head of corporate services, said: “As knowledge based industries continue to grow, a wide variety of legal issues concerning intellectual property, and technology development, protection and exploitation, become increasingly important. Birketts is excited to further expand our offering in this exciting area, and I have no doubt that Andrew’s appointment will prove to be a significant step towards this goal.”

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Fourth appointment at law firm during lockdown

Law firm Fisher Jones Greenwood has appointed Priya Patel, a solicitor specialising in litigation, to its dispute resolution team and who becomes the firm's fourth new recruitment during the lockdown period. She joins FJG from a Suffolk firm having qualified as a solicitor in 2017 and advises on a broad range of contentious civil and commercial litigation matters. She will focus on the full range of company and partnership related disputes, regulatory disputes, debt recovery, contract and negligence cases, landlord and tenant matters and other property related disputes.

Bushra Elzubeir, partner and head of dispute resolution, said: “...We are looking forward to realising the tangible benefit of having such a diverse and talented team, I am sure Priya will be a great asset to our growing department and to the firm as a whole.”

Paula Cameron, managing partner at FJG, added: “Even in these unprecedented times; FJG’s ambition to grow doesn’t falter. I am delighted to have welcomed four new legal experts over the last three months and I look forward to the future with a positive air.”

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Co-op shortlisted for national award for local sourcing initiative

The East of England Co-op has been named as a finalist in The Grocer Gold Awards 2020 for its support for local food and drink producers. The regional retailer has been nominated in the supply chain initiative of the year category, following its ‘sourced locally’ initiative which it set up in 2007 and which aims to bring local produce to its shelves. Today, the East of England Co-op has over 110 local suppliers across Norfolk, Suffolk and Essex, supplying 2,000 product lines. A new supply chain introduced in April 2019 after talks with Bury-based Thomas Ridley Foodservice has helped achieve a significant increase in local produce sales and lowered local suppliers’ food miles. Roger Grosvenor, joint chief executive of the East of England Co-op, said: “In collaboration with Thomas Ridley Foodservice and our local suppliers, we’ve worked hard to simplify our operations, to allow us to minimise deliveries, administration, distribution mileage and costs. The end result is a much more efficient way of working for everyone.”