Fifth of SME owners plan to sell all or part of their business, survey discovers

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A fifth of SME owners plan to sell part or all their business within the next two years,  according to a study conducted on behalf of Handelsbanken Wealth & Asset Management.

A further one in ten expect to downsize their businesses over the same period. Of these, a third blame rising costs, 18% cite performance-related issues, and a further one in six need to release liquidity to deal with the cost-of-living crisis.

But while rising costs and profitability were among some of the catalysts for selling up or making a change, the research also shows that many owners are motivated to sell all or part of their business for positive reasons. 40% plan to release liquidity to invest in other business ventures, for example. Just six percent said they are planning to sell their entire business within the next two years, with 20% citing retirement as the driving factor, and a further 20% having to do so due to an absence of family succession options.

Despite the multiple challenges faced by many SMEs, half have no plans to change their firm’s size or ownership status.  Furthermore, one in six is considering scaling up operations within the next two years, indicating a welcome degree of optimism among this business segment.

Christine Ross, Head of Private Office (North) and Client Director at Handelsbanken Wealth & Asset Management said: “Making changes to your business – whether you’re expanding, downsizing, selling or starting something new – can be a very exciting time, but it can also be very stressful. If you’re releasing money from your business by selling all or part of it, it can feel like a big weight off your mind when the process is finally concluded. However, there’s also the question of what to do with the proceeds of a business sale, as you enter the next chapter of your life.

“This is a good time to take stock of your situation, and focus on your goals for the future. It’s important to remember that many of the tax advantages you enjoyed as a business owner may no longer be available to you, so consider taking professional advice as early as possible to help work out the best options for you.

“For example, setting up a family trust prior to your business sale could make use of inheritance tax reliefs, if this meets your financial and estate planning objectives. You might also want to make the most of allowances around ‘gifting’ money to help the next generation, if it suits your personal situation, or invest in financial markets an effort to protect the value of your capital against inflation. Whatever you choose to do next, make sure you understand the risks and potential rewards involved.”

Arco maintains place amongst top ten apprentice employers

Arco has been named as one of the top 10 family businesses in the UK for employing apprentices for a second year running. The Hull-based company’s contribution to employing apprentices and its investment in the next generation saw the company listed by Family Business United – the global voice of the family business community. The company features in the 2023 report that examines the number of apprentices in the sector, the creation of new apprenticeships and the number of apprentices completing and graduating from apprenticeship programmes alongside the likes of Bagnalls and Hodgkinson Builders, with JCB also included. Over the past six years, Arco has built upon its Future Experts programme as part of an ongoing commitment to developing the next generation of industry talent. Darren Ford, head of organisational development and learning and development at Arco, said: “We are incredibly proud to be recognised for a second year in the Family Business United list of top family business apprentice employers. Helping to nurture future talent and further develop the knowledge and skills of our colleagues plays an important role in the aspirations of the business and will support our ambitions for growth. “We’re seeing a greater uptake from a broader range of business areas now and this year we have committed to creating eight dedicated apprenticeship opportunities across the organisation, with a plan in place to increase this to 16 next year. I’m very excited to see both our internal and external apprentice numbers grow over these coming months.” Arco’s Future Experts programme has seen over 42 apprentices graduate and currently has 23 apprenticeships ongoing. Apprentices have the opportunity to work in a variety of areas across Arco, including finance, digital, customer services and safety, health and environment.

Drop in session heralds Sisk starting work on York Station Gateway Project

With the appointment of John Sisk & Son as main contractor for the first phase of the £7.8 million York Station Gateway project, businesses are invited to a drop-in event as work starts.

Contractors are setting up in York Station car park this week, and before main work starts on Monday 16 October, businesses are invited to a drop-in to find out more about the project on Thursday 12 October between 4pm and 6pm at York RI gym, Queen Street. The project includes removal of Queen Street bridge, realignment of Queen Street, creation of the new Station Square, improvements to the cycle and pedestrian routes and an enhanced interchange for buses. The scheme is being delivered in partnership with the West Yorkshire Combined Authority, London North Eastern Railway (LNER) and Network Rail. Kevin Wilcock, Project Manager for John Sisk & Son, said: “The York Station Gateway project is vital for the benefits it will bring long-term to transport around the station, and the spaces that will be created for the community. This will help to improve the area in the vicinity of the iconic York Railway Station and the city walls. “We are working with local residents to minimise disruption to locals, businesses, and the travelling public. Our team look forward to discussing more about the project with the local community during our first drop-in session.” Steve Wilson, Deputy Head of Stations at LNER, said: “It’s great to see the York Station Gateway project gaining momentum and we’re delighted to be working in partnership with colleagues at City of York Council, West Yorkshire Combined Authority and Network Rail to deliver this key scheme to make York Station even more welcoming. “This project will significantly improve access to the station for everyone and create a much-improved gateway for visitors to the beautiful and historic city.” Councillor Pete Kilbane, Deputy Leader of the Council and Executive Member for Transport and the Economy said: “This is another step forward for the project which will create a fitting gateway to our historic railway station. “The project will deliver significant transport improvements as well as welcoming public spaces that will bring major economic and social benefits, alongside the development of York Central. “We are working closely with our partners to keep people informed and also to minimise disruption. I hope people can attend the first drop-in session with the contractor and project team to find out more.”  

Fifty firms in the running to be Peoples’ Choice in Doncaster Business Awards

Voting has now opened for The People’s Choice at this year’s Doncaster Business Awards, with over 50 finalists in the running. The category gives Doncaster residents a chance to decide who they think ought to be crowned as Doncaster’s best overall company for 2023. While the rest of the accolades at the Business Awards all undergo a rigorous judging process, The People’s Choice will be determined through a public ballot. The competition sees major corporations going up against SMEs, innovative green organisations, new start-ups, education providers, sole traders and even charities. This is because the shortlist here is comprised of the accumulated finalists from every single other category at the Business Awards and, as such, there is an extremely diverse line-up to choose from. Businesses have until 11:59 p.m. on Sunday the 15th of October to cast their votes and can make an informed selection by looking at the nominees on the Doncaster Chamber website. Jade Dyer, Business Director at Doncaster Chamber, said: “The awards always prove to be a highlight in the local calendar, shining a spotlight on our city’s best and brightest. Yet we are always looking for new ways to grow and improve the ceremony. “Although we are very proud of the thoroughness and integrity of our existing judging process — and how it ensures that deserving winners are recognised year after year — we thought that it was only right that the business community itself gets to have a say in who takes home a trophy. That’s why we have decided to introduce The People’s Choice Award for 2023. “There are over 50 finalists in the running here and we are pleased that they epitomise the incredible diversity of our business community, with organisations of all different sizes and from across different sectors making up the shortlist. It’s important that we have a lot of votes coming in to ensure that the process is as democratic as possible, and that it truly represents what our local community thinks. I would therefore urge every business — regardless of whether they are in contention for any of the awards — to have a good look at the nominees and help us pick a winner.” As the headline sponsor for The Doncaster Business Awards as a whole, Yorkshire Wildlife Park will be presenting the People’s Trophy prize at the ceremony. CEO John Minio said: “This is a great initiative to involve the business community as part of the awards. I can’t wait to see who will be receiving the prize on the night as there as so many great businesses in Doncaster.”

National Living Wage to increase next April

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People on the National Living Wage are due to get a pay rise of more than £1,000 next April. That’s because the Chancellor says he’ll accept the Low Pay Commission’s recommendations – due to be announced in November. Based on the Commission’s latest forecasts, this would see the National Living Wage increase to more than £11 an hour from April 2024, and would mean the annual earnings of a full-time worker on the National Living Wage will increase by over £1,000 next year. People currently aged 23 and over are eligible for the National Living Wage, with over two million workers on low pay set to benefit from the increase, and will apply to more than 300,000 people in Yorkshire and the Humber. Each year, the independent Low Pay Commission produces recommendations to the Government on National Living Wage and National Minimum Wage rates. This year it is due to make recommendations for the rates that will take effect from April 2024, based on their remit which sets a target for the National Living Wage to reach two-thirds of median earnings by 2024 for workers aged 21 and over, taking economic conditions into account.

Government launches red tape review to ease burden on business

The Government is to review the activities of all 90 regulatory bodies in the UK, which 40% of firms say are holding them back. A 12-week call for evidence will seek views of businesses, consumers and regulators to establish areas that are working well as well as where regulators could improve. It comes as part of the wider Smarter Regulation Programme, which aims to bring about more effective and less burdensome regulations across the economy. The review will identify the changes to the regulatory landscape that will really make a difference to economic growth, as well as improving the outcomes for consumers and our environment. Businesses have made clear that burdensome regulations have hampered growth, which is behind the action, says Kemi Badenoch, Secretary of State for Business and Trade. “I want us to use our Brexit freedoms to scrap unnecessary regulations that hold back firms and hamper growth. It’s clear that the regulators that enforce the rules can also sometimes be a blocker to businesses, so our review will seek to root out the bad practices with the aim of making companies’ lives easier and reducing costs for consumers.” The principal focus of this call for evidence is to understand what works well and what could be improved in how regulators operate to deliver for the sectors they serve. Many businesses, consumer groups and other industry leaders have expressed their concern over the operation and enforcement of regulation by independent regulators. Broadly, these criticisms fall into three categories:
  • The regulatory landscape is a crowded space, with too many regulators having too many duties to trade-off against each other meaning consistency across regulators and a clear direction on what good looks like is essential.
  • Regulator behaviour, risk appetite and overall performance is not as it should be. Businesses/industry groups argue that regulators are overly risk averse and focus too heavily on process, and that this is at the expense of delivering the best outcomes.
  • Regulator powers and accountability have not moved in tandem, in part because of the increased decision-making power of some regulators now that decisions are taken at a UK- (not EU-) level.
This work is complementary to existing work in train, including the more specific review of Ofgem, Ofwat and Ofcom – which also forms part of the Smarter Regulation Programme.

Sixways Stadium to host the next Motor Source ESFL Finals

An exciting announcement has come from the Motor Source ESFL as the date and venue for 2023/24 season finals was confirmed as Sixways Stadium on Saturday 8th June 2024. The 2023/24 Emergency Services Football League season may only have just kicked off, but we’re already looking forward to celebrating the women’s, veterans and men’s open age competition finals in June next year. In a similar format to last season, all three finals will be played on the same day, making it a full, exciting day of football, with the change of venue from last season bringing the added benefit of a 4G pitch, match day announcer and stadium big screen to add to the atmosphere. Sixways stadium is mostly used for rugby union and association football matches and is the home of Premier 15s side University of Worcester Warriors and Hellenic League Premier Division football side Worcester Raiders. It was also the third Premiership Rugby venue to lay an artificial pitch, but the first to feature organic infill rather than rubber crumb. ESFL co-founder Pete Overton said “We are really excited to be working with the Sixways Stadium events team to organise our league finals. A personal note of thanks to both Tracy and Nicole who helped make this happen. The stadium and its facilities look first class. As the ESFL continues to go from strength to strength we are excited to once again be hosting the finals in such an impressive stadium.” Zoe Critchley from title sponsors Motor Source commented: “As title sponsors of the Motor Source ESFL, we thoroughly enjoy working with the teams throughout the season and hearing their triumphs, not just in the games they play but also in their professional careers and how the league helps them. “After last year’s enjoyable season and unforgettable finals day, we’re ready to raise the bar and make this year’s ESFL Finals truly epic!” Follow and support the teams and results throughout the season at https://www.esfl.co.uk/ where you’ll also be able to buy tickets for the final when they go on sale. If you work in the emergency services, armed forces or teaching, you could be eligible for Motor Source new car discounts for NHS, Police, Fire & Rescue Services, Prison Service, military and teachers. Find out more and see how much you can save at https://www.motorsourcegroup.com/

Quickline wins awards for rural broadband rollout

Quickline Communications has won two major national awards for rescuing isolated communities with its rollout of fast and reliable broadband.

The East Yorkshire-based provider has now been honoured for the rollout of both its full fibre and 5G fixed wireless internet connectivity. At the Adtran UK Fibre Awards 2023, hosted by global internet and communications equipment giants Adtran in London, Quickline claimed the Best Rural Innovation Award. The awards are held to shine a light on the innovative work of alternative network providers across the country. The accolade recognises the company’s dedication to bringing isolated communities up to speed through its full fibre network and was awarded to Quickline for “the most innovative use and combination of full fibre products and services to solve business challenges”. Quickline was also highly commended in the Rural Fibre Service category in the same awards for the positive impact it is having on the communities it serves. One of the judges said: “This is awarded for the significant impact fibre rollout has had on the rural communities they serve. Quickline have sought to reach these communities which have, until then, been underserved with full fibre connectivity and so created a positive impact in the rural community they serve.” As well as the Adtran UK Fibre award, Quickline won the Wireless Innovation Award in the Connected Britain Awards. The winning entry focused on Quickline’s successful deployment of the UK’s first 5G standalone fixed wireless network, providing an end-to-end solution to connect even the most remote communities. The Connected Britain Awards formed part of the Connected Britain show held at Excel London, which brought together more than 5,000 leaders shaping the country’s digital future. CEO Sean Royce and Chief Technology Officer Ian Smith also delivered sessions at the flagship event, engaging with audiences on how Quickline is tackling digital inequality and connecting hard-to-reach communities. Mr Royce said: “We’re very proud to win these two industry awards in recognition of the significant strides we’ve made in bridging the digital divide and providing rural communities with rapid and reliable internet access. “It’s especially pleasing that these awards recognise the rollout of both our full fibre and 5G fixed wireless technology. “Our sessions at the Connected Britain show also provided an excellent platform to share our story with leading industry professionals and other key stakeholders, and discuss some of the most pressing issues facing our industry including the important matter of bridging the digital divide and connecting hard to reach communities. “These awards are further endorsements of the transformational difference we’re making to rural communities across Yorkshire and Lincolnshire that would otherwise be denied the digital connectivity that is absolutely essential for so many aspects of daily life.”

JCT600 donates a year’s supply of Chemo Ducks to two children’s hospitals in Yorkshire

Yorkshire-based family automotive retailer JCT600 is donating a year’s supply of Chemo Ducks to both the Leeds and Sheffield Children’s Hospitals in partnership with The Give A Duck Foundation, a UK-wide children’s cancer charity.

With dealerships in Leeds and Sheffield, JCT600 is supporting these local communities with a donation of 200 Chemo Ducks for children in Leeds and Sheffield Children’s Hospitals.

Fitted with medical lines and ports to mirror those of the child, Chemo Ducks are used by play leaders during play therapy to prepare children for their treatment, whether it’s an appointment with their consultant, administering chemotherapy or taking blood samples.

Chemo Ducks will also be on display at all 19 of JCT600’s dealerships in Leeds and Sheffield to raise awareness of the initiative and encourage customers to make a donation towards funding more ducks.

“We are proud to be playing our part in supporting this fantastic charity which is helping to improve the lives of children with cancer in Yorkshire,” says Andy Bateman of JCT600. “It’s a really innovative scheme and we hope that many of our customers as well as businesses in the region and across the country will help the charity to meet its goal of providing a Chemo Duck to every child diagnosed with cancer in the UK.”

Elaine Dunning of Give A Duck adds: “It’s great news that a well-known and trusted brand like JCT600 is supporting The Give A Duck Foundation.

“The charity aims to help children feel they can take back some control at a time when they may feel they have very little, as well as removing some of the fear by seeing Chemo Duck experiencing the treatment the children will go through, and providing a relaxed way to have discussions about what will happen to them in hospital.

“Many thanks to the JCT600 team for their support, and also to Blue Light Babies and Fleet Factors for creating the bespoke JCT600 duck outfits.”

The Give A Duck Foundation works with all 19 specialist childhood cancer centres in the UK and 34 shared care UK hospitals. By working with health care professionals about the many uses and roles Chemo Duck can play during treatment, Give A Duck can help make things a little easier at a really difficult time.

£31m Leeds urban industrial development on track for Autumn completion

The construction of nine industrial units at Velocity Point on Armley Road is on schedule for completion in November.

The new business park which is located on the 13 acre site previously occupied by Premier Farnell, is being developed by Tungsten Properties with forward funding by UBS Asset Management’s Real Estate & Private Markets business on behalf of its core UK diversified vehicle, Triton Property Fund LP.

Commenting on the development, Carter Towler’s Hazel Cooper said: “It’s exciting to see this much needed new industrial park taking shape. Tungsten Properties and MCS Construction Group are making great progress, the external structures have been completed and are now having their internal features installed.

“We are already receiving a lot of interest from potential occupiers and have placed 8,000 sq ft under offer, to an exciting business who are keen to take advantage of the great location and superb ESG provisions.”

Matt Ewin, associate director at Savills, added: “This is a true Urban Logistics location, positioned just on the edge of the city centre it provides lots of opportunities for strategic links with the universities, hospitals, retail sectors and last mile logistics operators, as well as being close to major arterial roads and the motorway network.”

Jonathan Ufton, investment manager at UBS Asset Management, added: “These units have been developed with a range of business uses in mind including logistics, warehousing and storage, manufacturing and engineering. Leeds has a very buoyant industrial market and it’s great to have this new industrial stock to offer.”

The nine units range from 3,500 – 108,500 sq ft and are being built to the highest building standards with the construction team aiming to achieve a Building Research Establishment Environmental Assessment Methodology (BREEAM) ‘excellent’ rating. The innovative design of the scheme includes features that ensure the units are eco-efficient, cost-effective to run and contribute positively to employee health and wellbeing.

Carter Towler, CBRE and Savills are joint marketing agents for Velocity Point.