Cambridge leads ‘resurgence of UK economy' as growth spreads beyond knowledge sectors
Job creation in Greater Cambridge has outpaced the national economy with an 8.5 per cent growth in employment during 2022-23, according to the Centre for Business Research at the University of Cambridge. The robust performance is thanks to flourishing knowledge intensive (KI) sectors, including life sciences, IT and high-tech manufacturing - which saw 11 per cent employment growth in 2022-23 - which has now extended to other sectors. The life sciences and healthcare sector led the way with a 13 per cent growth, followed closely by the tech sector at 10 per cent. Other sectors such as retail and construction also contributed to the expansion. Dan Thorp, CEO of Cambridge Ahead, said:"Since the pandemic, it has been the KI sectors keeping our economy in overall positive employment growth, whilst non-KI was impacted more deeply. Now we see evidence of an important shift, almost all sectors are seeing positive growth and there is stronger whole-economy momentum building.” He urged local authorities to consider the new employment growth data when assessing infrastructure needs for growth in the area.
Elisa Meschini, a Greater Cambridge Partnership executive board member and county councillor, said: “The continued growth of the Greater Cambridge job market is a reflection of how strong we are as a place – leading the resurgence of the UK economy….The big challenge is clear – how do we sustain this growth and ensure that people have the homes, necessary transport and education opportunities to seize the roles which are being created..."
Part sale of Ipswich-based freight company saves jobs as firm goes into administration
Administrators for Ipswich-based freight services firm Magnus Group have agreed a part-sale with a local buyer - Hemisphere Freight Services - for its warehousing and forwarding operation, saving 25 jobs. Magnus went into administration on November 23rd. As part of the deal, HFS will also take over around 200,000 sq ft of warehousing space at Magnus’s Great Blakenham facility, where the team will remain for six months before moving to Suffolk Port One Logistics Park. Magnus’s haulage side has been wound down with 52 drivers losing their jobs earlier this month and a further 23 staff dismissed last week. Andrew Kelsall, joint administrator with Lee Green, both of Larking Gowen, said: "Logistics is a highly competitive sector and, unfortunately, Magnus had got into difficulties, including some debt which it has been unable to refinance. They had little option but to seek administration. We are currently working to achieve the best possible outcome for all stakeholders involved, and we are maintaining a dialogue with staff, customers and suppliers across the board."
Hemisphere Freight Services managing director Andy Perrin said: “It’s always hard to see a fellow family-run business go into administration, especially after decades of successful trading and becoming so well-respected within the local community....The priority for us is to minimise disruption on both sides and ensure that Magnus Group’s current client base is well informed and well taken care of throughout this process.” Founded in 1973, Magnus Group was known for its sponsorship of Ipswich Town FC and Suffolk Cricket.
Separately, M&A activity in the UK logistics and supply chain management sector has rebounded to 2021 levels with interest from international buyers and venture capital investors targeting early stage tech-enabled companies. But BDO's UK M&A Update Q3 2023 – Logistics and Supply Chain Management report also sounded a word of caution, with increased evidence of distress in the market including the administrations of Selazar and Glasgow Car Movers and more recently Mark Stewart. A recent logistics survey showed 40 per cent of firms responding were likely to make acquisitions over the next 12 months.
Anglian Water proposes £9 billion investment to tackle region’s climate ‘challenges’
Anglian Water is proposing a £9 billion investment plan over 2025-30 to tackle the region’s climate challenges including rising temperatures, falling rainfall and an influx of over 720,000 new residents. Together, these make the East of England the second ‘most-challenged’ region after London, says a report by the utility 'Thriving East'. In Suffolk, which faces a 6 per cent population increase by 2043 with higher temperatures and less rainfall, planned investments of £234 million include a £37 million pipeline connecting Gazeley to Great Horkesley and Rede to Boyton Hall. Peter Simpson, CEO of Anglian Water, said: "Our purpose is to bring environmental and social prosperity to the region we serve." The proposed investment aims to create 7,000 jobs across the East of England and ensure the environmental and social resilience of the region in the face of climate threats.
Separately, National Grid is delivering a £130 million project to refurbish and strengthen the existing overhead line network between Lincoln and Stevenage. The first phase from Lincoln to Peterborough was completed last year and a further 1,479km of line conductor has been installed so far this year in a second phase from Stamford to Stevenage. The final circuit from Cambridgeshire to Hertfordshire will complete the project in 2024.
Business groups respond positively response to Autumn Statement
Business groups and companies in the region responded generally positively to the tax changes introduced by the Chancellor in last week’s Autumn Statement. Richard Tunnicliffe, CBI East of England director, said: “With tough decisions to be made, the Chancellor was right to prioritise ‘game-changing’ interventions that will fire the economy. "
Steve Beel (photo, right) chief executive of Freeport East, said: "Freeport East welcomes the government's decision to extend the window for freeport tax reliefs to ten years, coupled with an additional £150 million in funding. This move underscores the crucial role of freeports in economic growth and job creation and unlocking opportunities for our coastal communities"
Peter Harrup, tax partner and head of BDO in East Anglia, said: “The 'giveaways for growth', such as extending full expensing on investments in IT, machinery and infrastructure, have responded to demand from businesses for a greater focus on creating economic certainty over the long-term. However, with a General Election looming, it remains to be seen whether today's announcements will be enough to create widespread confidence and incentivise business investment.
Rechenda Smith, managing director of Norwich-based Nurture Marketing, said: “...it was encouraging to see key industries in East Anglia set to see a boost include tourism and hospitality, retail, manufacturing and engineering, and clean energy. The less tax they pay, the more money they have available to invest in marketing, innovation, development and growth."
Ross Cracknell (photo, right) managing director of Ipswich-based print specialists Evolve Business Solutions, said: “The budget changes outlined in the Autumn statement today is great news for businesses. It was particularly good to hear that the government is encouraging businesses to continually invest in infrastructure that will help them grow, including IT equipment and machinery...."
See here for full responses to the Autumn Statement from across the region
Essex-based builders merchant acquires timber products group
Chandler Material Supplies, a third generation family-owned builders' merchant based in Chelmsford, has acquired Essex Timber & Plywood in a deal where Forward Corporate Finance advised the buyer. The acquisition of Essex Timber & Plywood, based in Eastwood, Southend-on-Sea, gives Chandler a second site, bolsters its team and brings high-quality timber products including panels, softwoods, hardwoods and fencing materials sourced from around the world, to the group. The acquisition enables Raife Clarke, former majority shareholder of Essex Timber & Plywood, to start winding down towards retirement whilst providing the team a new opportunity as part of the wider Chandler family. Both businesses will continue to operate from the same locations. Ben Chandler, finance director of Chandler Material Supplies, led the deal and said: “The acquisition of Essex Timber & Plywood made sense for both businesses, helping Raife with his retirement and providing our group with a second location and a timber specialism to add to our successful builders’ merchant”.
Rob Dukelow-Smith of Forward Corporate Finance advised Ben Chandler, taking the concept of the acquisition from initial conversation, through to completion. He said: “I thoroughly enjoyed working with Ben, an extremely driven individual who was laser focussed from the outset to deliver the deal. I’m certain the combined business will flourish under Ben’s and the Chandler board’s guidance”.
Ben Chandler added: “Rob provided excellent support to me throughout the acquisition process. From the outset Rob gave clarity to us and the vendors and was always on hand to provide solutions to challenges we faced as the deal unfolded.”
See Profile Forward Corporate Finance
Experienced corporate partner appointed to accountancy practice
East Anglian chartered accountancy practice Ensors has appointed experienced corporate partner Keith Ferguson to the practice from a longstanding position at a top five firm. With substantial experience in both corporate finance and audit & assurance, he will be based at the firm’s Ipswich office on Princes Street in the town centre and provide authoritative guidance for current and new clients. His position will enhance the firm’s corporate offering and play a pivotal role in delivering strategic financial solutions for local businesses. Having served in key financial leadership roles in a top five firm, Keith Ferguson (photo, right) has provided tailored advisory services to a diverse client base and has a deep understanding of financial management and evolving compliance regulations and industry standards.
Corporate partner Barry Gostling said: “We’re thrilled to strengthen our growing corporate services offering with an experienced partner joining the firm. Keith’s position within the partnership propels our passion for growth across the firm, we have an exciting journey ahead”. The appointment comes at a time of dynamic growth for the firm with a new regional office also on the horizon.
See Profile Ensors Chartered Accountants
Major logistics unit for retailer unveiled at new Stowmarket business park
A major new warehouse which will be a distribution centre for garden and leisure retailer The Range was last week unveiled at Gateway 14, the new business, innovation, and logistics park near the A14 at Stowmarket. The 1.17 million sq ft building was completed by Gateway 14 - a subsidiary of Mid Suffolk District Council - with development partner Jaynic and contractor Winvic Construction. Gateway 14 chair Sir Christopher Haworth, said: “This is a great day for Stowmarket and the surrounding region. Not only does it bring over 1,600 jobs to this prime location, but it also delivers the first building on the new highly sustainable, mixed-use Gateway 14 development, set in an attractive parkland setting. We already have further strong interest in the park and expect to be able to identify new occupiers in the near future.”
Ben Oughton, development director of Jaynic, said: “We have worked closely with The Range to bring forward a highly sustainable building that will be the benchmark for future buildings moving forward.” Gateway 14 is part of Freeport East, with benefits that include various tax reliefs and simplified customs arrangements.
Photo (l-r, with keys): Chris Haworth, Gateway 14, Cllr Andrew Mellen, Mid Suffolk DC, Tony George, The Range
New board members at conference and meetings bureau
Meet Cambridge, the conference and meetings bureau for the city and surrounding area, has appointed experienced new board members following recent retirements and after reporting record results for 2023, its 25th anniversary year. Chair is Gavin Flynn, senior bursar at Downing College, who has a background in the travel and hospitality sector and wide experience in finance and strategy. He was a senior executive with the InterContinental Hotels Group for more than 15 years. Rebecca Barnes is conference & sales manager at Madingley Hall where she has worked for the last 13 years and has previously been a member of the Meet Cambridge marketing advisory group. Martin Spooner, director of college services at Christ’s College, has wide-ranging experience in operational support including change management, process analysis and people development. Rob Preston is domestic bursar at St. Edmund’s College, an operational role which involves people-focused leadership and effective management of change. Gavin Flynn said: “We are delighted to welcome our highly-experienced new directors who have in-depth and exacting skillsets in the academic sphere which cross over into the business events sector. Together with Judith Sloane, managing director, their wise counsel and sound judgement will ensure we continue to meet the changing needs of our 50-plus venues.”
Caption The new Meet Cambridge board (l-r): Rebecca Barnes, Martin Spooner, Judith Sloane, Gavin Flynn (chair), Rob Preston.
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