info@business-money.com
+44 (0)1458 253536

My account

News

  1. Home
  2. News
January 24, 2020

Construction contract awards hold steady in 2019

The value of all construction contracts awarded in 2019 was £59.9bn. This represents an increase of 0.2% on 2018 which in turn was 15.7% lower than 2017. Whilst contract awards values have levelled off in 2019, the value of £59.9bn is approximately 20.3% lower than the peak of £75.1bn achieved in 2015.

The number of contract awards continued the downward trend exhibited in recent years with awards falling to 9,580. This is a decrease of 7.3% on 2018 and is also 23.0% lower than 2014 when the number of contract awards peaked at 12,447.

The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI, highlights levels of construction contract values awarded across Great Britain.

The residential sector maintains its position as the leading sector in 2019, accounting for 38.4% of all construction contract awards, which is 0.3% higher than 2018. The leading residential contract awarded during the year was the Nine Elms Parkside Plots B & D at Wandsworth in London, valued at £276.4m.

The second largest sector in 2019 was infrastructure which had a 17.3% share of all contracts awarded. However, this is 2.0% lower than 2018. The largest overall infrastructure project awarded during 2019 was the £1.5bn Sellafield SRP Process Facility. The sector accounting for the third largest share of contracts awarded in 2019 was commercial & retail with share of 12.7%, which is 0.5% lower than for 2018. The largest office award was the £400m Paddington Square – Paddington Cube in London.

Commenting on the figures, Tom Hall, chief economist at Barbour ABI and AMA Research said, “As we saw throughout 2019, development figures flatlined and a yearly round up shows similar levels to 2018. With the date for the UK to leave the EU less than two weeks away, and the future of HS2 hanging in the balance, uncertainty continues to engulf the construction industry.”

Download the full report here:https://www.barbour-abi.com/economic-and-construction-market-review/

January 24, 2020

UK SMEs feel calm ahead of Brexit

UK SMEs reported feeling calm about their business ahead of Brexit on 31st January, according to a survey conducted by Skipton Business Finance.

The survey, conducted by Skipton Business Finance, involved businesses from varied sectors including manufacturing, engineering, recruitment, logistics and other specialist services.

The data collected showed that over 50% of businesses reported feeling calm about their business with regards to Brexit, with a further 27% reporting that they feel excited about the future prospects of their businesses.

The past few months of uncertainty leading up to and following the general election and the impending Brexit day have filled many business-owners with apprehension when considering the future of their businesses.

With the countdown to Brexit shortening, UK businesses are preparing themselves for any changes that may need to be addressed. Despite assumed fear of what Brexit will bring, it appears that UK SMEs are feeling calm and positive towards the event.

Greg Bell, managing director of Skipton Business Finance, said: “The past three years have arguably had quite an effect on UK SMEs and their confidence in what the future may hold.”

“It is very important to us that these businesses are feeling positive and calm about Brexit and we are confident that providing businesses with the support of funding through invoice finance has positively influenced this result.” He added.

January 24, 2020

A business is not a commodity. ‘Trustee Ownership’ should be easier to implement

More and more businesses want to take a new approach to ownership. Small and large businesses and start-ups have drawn up a draft law on trustee ownership in collaboration with Gerald Häfner, leader of the section for social sciences at the Goetheanum.

“Investors who have nothing to do with the employees or the sector of business often buy companies, hospitals, schools and squeeze them out – to accumulate more wealth for themselves”, says Gerald Häfner. That is why a growing number of businesses owners want to set up their company in such a way that it remains independent and cannot be traded like a commodity. “But such legal forms are not yet available”.

Companies today are a thing according to the law. “However a company is a social entity made up of employees, suppliers and customers and not just a random commodity”, says Gerald Häfner. The proposal for a new legal form of ‘trustee ownership’ envisages that property rights should be formulated in such a way that the capital serves the company over the long term as a social asset and to enable it to fulfil its mission.

o-owners as well as shareholders can bring in and withdraw capital, but voting rights and profits remain within the company. Pioneers in this area are companies like Zeiss and Bosch. Companies such as Alnatura, Ecosia, Sonett, Wala and Weleda are also moving in this direction, but often have to use auxiliary structures due to the lack of a suitable legal form.

A proposal for a legal form for ‘trustee ownership’ has been developed with the assistance of Gerald Häfner since 2016. Following the 2018 Conference on Ownership, more than 30 companies established the Stiftung Verantwortungeigentum (‘The Responsibility Ownership Foundation’) in Berlin at the end of 2019. Federal minister of economics Peter Altmaier and CDU chairwoman Annegret Kramp-Karrenbauer were also present.

The Stiftung Verantwortungseigentum is working to promote legal and political framework provisions, supports research on this type of company and facilitates networking among companies. According to the foundation, there are over 200 companies in Germany with around 1.2 million employees and a combined sales volume of 270bn euros that want to restrict the sale of the company and secure its ownership.

 

January 24, 2020

Crystal Specialist Finance appointed to packager panel by PRIMIS Mortgage Network

Crystal Specialist Finance (CSF) has been appointed to the packager panel for multi-award winning adviser business, PRIMIS Mortgage Network.

CSF will immediately support PRIMIS appointed representatives with extensive training, support and products from its comprehensive lender panel in the regulated and non-regulated bridging, buy-to-let and specialist residential sectors.

The partnership will also see a very close working relationship with PRIMIS, with CSF playing a prominent role in national and regional events throughout the year which are all designed to assist members in securing more specialist finance business.

Jo Breeden, managing director of CSF, said: “PRIMIS’s core focus is to deliver a world class support structure for its appointed representatives, and we have a service and lender panel which will assist brokers in taking that market leading ethos to their clients which will ultimately secure more specialist finance business.

“The network’s philosophy very much mirrors our own with broker education, training and development core to service delivery and client outcomes. This is the start of a fantastic relationship and one we will embrace wholeheartedly. We look forward to working closely with PRIMIS over the coming months and years.”

Vikki Jefferies, proposition director at PRIMIS Mortgage Network, added: “As the number of specialist customers continues to grow, ensuring our intermediaries are well-equipped to meet the demands of these consumers is vital.

“Welcoming Crystal onto our packager panel will ensure that our brokers can access a variety of products to suit all situations and, ultimately, continue to secure more positive outcomes for their customers.”

January 24, 2020

Arbuthnot Commercial ABL supports MBI of Flotronic Pumps

Arbuthnot Commercial ABL has supported the management buy-in of a West Sussex-based industrial manufacturer by entrepreneur, Stuart Whitehouse.

Whitehouse acquired Flotronic Pumps, which produces air-operated double-diaphragm pumps with a £1.5m asset based lending facility provided by Arbuthnot Commercial ABL comprising of receivables finance, together with a plant & machinery term loan and a cash flow loan.

Not only did the facility support the purchase consideration for the management buy-in, the revolving receivables element continues to deliver on-going working capital with the flexibility to grow with the business.

The pumps are used across a wide variety of industries and their unique ‘one-nut’ design allows for easy access for rapid disassembly and inspection in situ without disconnecting pipework, critical in hazardous and explosive environments where speed is essential.

Stuart Whitehouse was attracted to the deal in view of the business’s stable historic trading performance and potential for growth. With his background as a qualified chartered accountant and having spent 22 years running and growing a family business, Stuart is perfectly placed to drive the business forward.

Stuart Whitehouse, CEO, Flotronic Pumps Ltd, said: “The great thing about working with Arbuthnot Commercial ABL as a client is that you feel an important part of their business. That personal touch comes across in everything they do, from their service and support to the smooth and straightforward delivery of the facility. Transactions such as this are clearly a well-trodden path for the team at Arbuthnot and they make their experience count. We look forward to expanding our distribution network significantly and to furthering our international growth as a result of this deal.”

January 24, 2020

UK manufacturing exports fall despite strong demand

Overseas demand for British luxury goods, homeware and sports and leisure products helped an index of UK manufacturing exports recover from a seven-year low in the final quarter of 2019, according to Lloyds Bank Commercial Bank.

While UK manufacturing exports fell for the third quarter in a row in Q4 of 2019, according to the Lloyds Bank International Trade Index, growth in consumer goods exports slowed the rate of decline.

The Index, compiled in partnership with IHS Markit, posted a reading of 47.9 for new manufacturing export orders in Q4, up from 46.5 in in the third quarter, which was the weakest for seven years. A reading of above 50 indicates growth, while one below 50 signifies a decrease.

A reading of 51.0 was measured for consumer goods in Q4, up from 48.2 in Q3. The growth was driven by ‘other manufacturing’ exports, which includes sports and leisure equipment, homeware and hard luxury items, such as jewellery.

‘Other manufacturing’ is the only manufacturing export category measured by the Index where new orders grew throughout 2019.

Meanwhile, UK services exports contracted at the fastest rate in five years in Q4 2019, with an Index reading of 46.5. Service businesses surveyed by Lloyds Bank attributed the fall to delayed decisions from overseas clients ahead of the UK’s departure from the EU.

Financial services, together with transport and communications services, bucked the trend, with exports increasing between October and December.

Transport businesses benefited from a bout of inventory stockpiling by UK firms in Q3, but slowing economic growth and lower demand in European export markets contributed to the fall in overall UK trade volumes in the final quarter of 2019.

The economies of Germany and the Netherlands – two of the top five destinations for UK exports – contracted for the first time in six-and-a-half years according to IHS Markit surveys in Q4. Weaker economic conditions were also recorded in Italy, Austria, Poland and the Czech Republic.

Gwynne Master, managing director and global head of trade for Lloyds Bank Global Transaction Banking, said: “Last year was a challenging period for UK exporters, so it’s encouraging to end 2019 with a strong outing for British consumer goods, alongside financial services and transport and communications services exports.

“The pull of Brand Britain and favourable sterling exchange rates helped exports of premium British products grow consistently last year, while new orders for other UK goods and services fluctuated in the face of political and economic uncertainty.

“The landscape for exporters is constantly changing, even as the UK enters 2020 on a firmer political footing. We will be by the side of businesses as they navigate changing global environments and work to take advantage of new opportunities.”

 

January 24, 2020

Former RBS commercial director joins Bridge Help


Bridge Help has announced the appointment of respected former RBS commercial director Darren Marshall as head of risk and underwriting at the firm.

Darren has been enticed out of early retirement to join the rapidly growing Chesterfield-based bridging finance company which provides short term loans for commercial property.

He joins Bridge Help as a non executive director and brings a wealth of high level experience in the banking sector to the company.

His 38-year career with the RBS Group has given him a proven track record in business development which he now brings to the team at Bridge Help. His appointment will assist in driving forward the firm’s ambitions to lend £100 million per year both direct to individuals and through a broker network.

Prior to his early retirement in 2018, Darren covered South Yorkshire and North Derbyshire in his RBS role, building an extensive knowledge base of the local marketplace. After choosing to leave the finance sector through early retirement he and his partner moved from near Rotherham to the North Yorkshire coast from where he will continue to be based.

Darren explained: “Since choosing to retire I have received a number of job offers but the one with Bridge Help genuinely excited me for a number of reasons, but primarily because of the firm’s agility. Working with Bridge Help also enables me to work remotely which suits my new lifestyle.”

Central to Bridge Help’s agility is video conferencing technology which is enabling it to deal face-to-face with clients, brokers and solicitors in order to speed up the application process.

Bridge Help’s chief executive Chris Sellars welcomed Darren onboard, saying: “In my previous role as a solicitor in North Derbyshire, I had the privilege of working alongside Darren on a number of my clients’ deals and have long respected his professionalism and approach. It is a considerable coup for Bridge Help that we have been able to entice Darren out of retirement to join the team. His appointment represents an exciting stage in Bridge Help’s development in the marketplace.”

His appointment follows the decision of Chris Sellars earlier this year to fully commit himself to the business and leave a successful 30-year legal career to focus on the bridging finance firm.

Darren added: “I have known Chris a long time and the chance to work with him was too good to miss.”

January 24, 2020

Together appoints new London BDM

An ambitious finance professional has joined specialist lender Together as business development manager for London.

Ash Kendall will be responsible for managing and maintaining broker relationships as the specialist lender boosts its presence in the capital.

The business development manager has spent the last two years with Fiduciam, where he dealt with the lender’s complex short-term loan cases up to £25m.

In his new role, Ash will report to Sundeep Patel, head of intermediary relations (London).

Ash, who is originally from Manchester, said: “I’ve been offered a great opportunity to join Sundeep and his team in London and I’m excited about this new venture. Together’s size and product offering is impressive and I can’t wait to get started.”

Sundeep has a wealth of experience in the lending sector and particularly in London, where he has built up close working relationships with a wide range of intermediaries including brokers and specialist distributers.

He said: “Ash will be a fantastic addition to the team in London as we continue to expand across the capital. We have great ambitions to grow as a business and increase our successes, so this is a great time for him to join at this key period of expansion.”

January 23, 2020

Finance salaries remain stagnant, but applications still rise

According to the latest quarterly job market report from CV-Library, the UK’s leading independent job board, finance job applications rose by a resounding 16.1% in the final few months of 2019.

The report looks at job market data throughout Q4 2019 and compares this with findings from the previous year. It reveals that the finance industry experienced one of the highest rises in applications in the UK, with the top ten including:

1. Hospitality (up 71.6%)
2. Charity (up 61.2%)
3. IT (up 38.1%)
4. Legal (up 29.7%)
5. Construction (up 19.9%)
6. Finance (up 16.1%)
7. Property (up 15.8%)
8. Engineering (up 14.8%)
9. Marketing (up 10.4%)
10. Education (up 6.7%)

What’s more, it seems that candidates haven’t been put off by the fact that salaries in the finance industry remained fairly stagnant, increasing by just 0.4%.

Lee Biggins, CEO and founder of CV-Library commented: “It’s no surprise that salaries only saw very limited growth in Q4 2019 than in the previous year. The final few months of 2019 saw a great deal of political uncertainty; between the original Brexit deadline and the December general election, businesses were forced to tighten their belts and prepare for the worst.

“However, it’s clear that this didn’t put candidates off applying for new roles. While this is positive for businesses across the finance industry, it’s unusual to see growth in applications at this time of year. This suggests that professionals are tired of waiting for the current political landscape to settle and that they might be looking for something other than a high salary when it comes to changing jobs.”

In response to the application growth businesses in the finance industry have also increased the number of job vacancies on offer by 9.3%.

Biggins continues: “It’s important to keep investing in top talent – even during times of uncertainty. Ensuring that your company has a passionate and suitably qualified workforce will help to future-proof your business, so now is the perfect time to think about pushing forward with your recruitment efforts.”

January 23, 2020

FIBA boosts bridging lender panel representation

Specialist finance trade body, FIBA, has announced the appointment of short-term bridging lender, Bridging Link, to its lender panel.

Bridging Link provides regulated and non-regulated bridging loans on a 1st and 2nd charge basis. They lend from £50,000 up to £2.5m with a maximum LTV of 70%. The firm is strongly supportive of the intermediary sector, which it regards as its primary source of new business.

Adam Tyler, executive chairman at FIBA, said, “Bridging Link has demonstrated its commitment to the values we hold at FIBA, particularly around full transparency throughout the process. The team at Bridging Link has accumulated many years of experience of the market and their commitment to the regulated bridging space makes them a particularly useful and notable addition to our panel.”

Mike Brooks, managing director at Bridging Link, commented, “We are very proud to be joining FIBA. FIBA members are among the best specialist finance professionals in the sector and we are looking forward to working with the community and the FIBA team. We provide a truly service orientated offering and I believe that FIBA members are going to appreciate our proactivity and the

Business Money magazine
Subscription options

   Sign up to our newsletter

 

 

My Newsletter

    Cart