Enterprise

Babcock hikes guidance as Skynet satellite programme ramps up

Defence corporation Babcock has raised its full-year revenue and profit forecasts as its Nuclear and Marine divisions experience a surge in business. The FTSE 250 company announced on Thursday that it anticipates its underlying operating profit to surpass the highest analyst predictions, which ranged from £327.1m to £339.7m, as reported by City AM. Revenue is projected to reach approximately £4.9bn, exceeding estimates of £4.51 to £4.8bn. Babcock attributed this upgrade to "double-digit organic growth in Nuclear and strong growth in Marine." The firm, renowned for manufacturing nuclear submarines for the UK military, inked a colossal deal with the Ministry of Defence (MoD) last year worth half a billion pounds. Other collaborations include a 17-year contract with the French Air and Space Force in January, valued at up to around £665m, marking a significant expansion of its operations in France. Growth in the nuclear sector was "driven by increased new build and decommissioning work in civil nuclear, as well as increased submarine support activity and higher-than-expected infrastructure revenues," according to a statement released by Babcock. Performance in the Marine division was fuelled by increased volumes in the company’s liquified gas business and the acceleration of Skynet, the UK’s military satellite programme. "Today’s announcement demonstrates that successful execution of our strategy is continuing to deliver value for all our stakeholders," stated Babcock Chief Executive, David Lockwood.

Enterprise

SSE reaffirms earnings guidance as adverse weather drives renewables output

SSE has confirmed its full-year guidance this morning as variable weather conditions have boosted renewable energy production. The company, listed in London, projects adjusted earnings per share in the range of 154p to 163p, while maintaining its operating profit targets, as reported by City AM. A significant increase in output from SSE renewables, by just over 25% year-on-year for the first nine months, was influenced by adverse weather and the addition of new capacity. Furthermore, total gas-fired generation escalated from 10,797 GWh to 12,459 GWh. "We are pleased to report good operational performance during the quarter and, more recently, we were able to provide a swift and effective response to Storm Eowyn, with our teams expertly managing widespread network disruption," stated Barry O’Regan, chief financial officer. "As we look to the opportunities presented by decarbonisation our focus remains on capital discipline, strategic delivery and the efficient operation of our value-creating assets." Shares of SSE have remained relatively stable over the last year, with a slight decline over four percent, and continued to stay steady on Wednesday. John Moore, senior investment manager at RBC Brewin Dolphin, remarked, "SSE has delivered another solid quarter in operational terms, but the share price has fallen nearly one-fifth from its peak in September 2024." He added, "That is a reflection of a general reduction in energy generation pricing and, in turn, assumptions on the returns that can be made on wind assets."

Enterprise

Engineering group IMI latest UK firm to be hit by cyber attack

Engineering firm IMI says it has been hit by a cyber attack just a week after rival Smiths Group said hackers had gained access to its global systems. The Solihull-based listed company declined to disclose what data had been accessed in the attack but systems in a number of its locations worldwide are understood to have been impacted. It has isolated certain systems while it deals with the hack and is working with external cybersecurity specialists. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. "As soon as IMI became aware of the unauthorised access, the company engaged external cybersecurity experts to investigate and contain the incident," IMI said in a statement. IMI is also taking steps to comply with regulatory obligations, it added. Employees and customers have been informed about the incident but it is understood that the hack was not targeting staff or customer data. IMI has operations in 50 countries, with the majority of its business now spread across the US, Europe and Asia. The firm specialises in fluid and motion control markets, engineering components for process automation, factories and production lines, climate control and for transport and the life sciences sectors. Last week, fellow FTSE 100 firm Smiths Group alerted the stock market to a cyber attack amid a recent spate of IT hacks on UK companies although the two incidents are not believed to be linked. Transport for London suffered a major IT hack which saw about 5,000 customers warned their details may have been accessed. High-end department store Harvey Nichols also revealed last autumn that some customer details may have been exposed when it fell victim to a cyber attack.

Enterprise

Glamorgan Cricket set to land £20m boost from equity sales in The Hundred franchises

Glamorgan Cricket is set to receive a financial boost of around £20m from the sale of equity stakes in the franchise teams participating in The Hundred competition. As part of the sales process, North American tech billionaire Sanjay Govil has agreed to acquire a 50% ownership stake in one of the eight Hundred teams, Welsh Fire, based at Glamorgan Cricket’s home ground, Sophia Gardens. Both parties have now entered into an exclusivity period to finalise the deal - a process expected to take around eight weeks. With just a few franchise deals left to be concluded, the equity sales are expected to boost the total enterprise value of the eight teams to around £900m - far higher than initially forecast. At the outset of the sales process, some commentators speculated that Welsh Fire would have the lowest enterprise value post-investment, at around £35m. However, the investment by Mr Govil, who is understood to have rejected late overtures from other franchises, has shattered those assumptions, valuing Welsh Fire at more than double (£80m). The valuation brings Welsh Fire on a par with Hundred franchise rival Birmingham Phoenix. The England and Wales Cricket Board (ECB), which will ring-fence 10% of sale proceeds for the development of the game, will distribute the remaining funds among all 18 first-class counties. The eight county Hundred hosts will each receive around £20m later this year. Non-Hundred franchise hosting counties will receive slightly more than £20m each, as host counties benefit from the commercial revenues generated from staging matches in The Hundred tournament. Born in Montreal and raised in India, Mr Govil later moved to the US, where his business interests include the tech consulting firm Infinite Computer Solutions and health-tech venture Zyter. A passionate cricket fan, Mr Govil also owns the Major League Cricket franchise Washington Freedom, which is coached by former Australian cricket captain Ricky Ponting and features players such as Steve Smith and Travis Head. Washington Freedom has a player and coaching partnership with Australian first-class cricket team New South Wales. Such is the strength of the relationship developed between the parties that Glamorgan unilaterally increased the stake it initially planned to sell (49%) by 1%, creating an equal ownership split with Mr Govil for Welsh Fire. Glamorgan’s negotiating team, led by its chair and former investment banker Mark Rhydderch-Roberts, chief executive Dan Cherry, and club president Alan Wilkins, presented the investment proposition as an opportunity to back a national team (Welsh Fire) for Wales. This pitch resonated strongly with Mr Govil, as well as other bidders who missed out. Former Glamorgan chief executive Hugh Morris played a key role in ensuring that the club was included as one of The Hundred’s host counties by the ECB. Hosting a Hundred franchise and international test match cricket at Sophia Gardens would not have been possible without the vision of former club chairman, the late Paul Russell, who spearheaded the stadium’s development. His successor, Barry O’Brien, was also pivotal in reaching agreements with creditors to restructure the £18m debt incurred during the stadium upgrade. While Glamorgan could technically reacquire Mr Govil’s stake at a later stage, he has the first right of refusal should the club decide to sell its remaining Welsh Fire interest, or a portion of it. Speaking to the Times of India, Mr. Govil described his new part-ownership deal - pending final approval -with Glamorgan for Welsh Fire as a “marriage made in heaven. He added: “They are really nice people. I felt a real chemistry. The way the chairman Mark and the rest of his group followed up on our plans, I felt they really wanted us. They took the pains to visit me in London during Christmas on my last visit to England. Very warm and very supportive. It was always our first choice.” The idea of investing in Welsh Fire was first suggested to him by former Glamorgan cricketer and current club president and veteran sport commentator, Mr Wilkins. When asked about the possibility of Washington Freedom’s head coach Ricky Ponting getting involved with Welsh Fire, he said: “Possible. Why not? Why not Travis Head? Why not Steve Smith or even Andries Gous? Why not other Freedom players at Fire and why not Fire players at Freedom? I consider all my players and coaches as family.” Regarding a potential increase in his stake in Welsh Fire in the future, he said: “We will do what is in the best interest of the team and club. That is where chemistry is critical.” Collectively, the 18 first class counties have debts totaling £183m. However, Glamorgan is in a far healthier financial position than many of its rivals, with a net debt of just £1.6m, which it is comfortably servicing. The financial windfall from The Hundred will allow the club to invest further in its facilities and in the promotion and development of the game at all levels, from grassroots cricket for boys and girls upwards. It is understood that Mr Govil has also been appraised of potential commercial investment opportunities at Sophia Gardens, as Glamorgan seeks to generate additional non-cricket related revenue streams. Although still in the early stages, the club is exploring several commercial projects at its ground, including a hotel. The club would seek a consortium investment approach for such projects, while ensuring it retains an ownership stake. Speaking at Cardiff Business Club last September, Mr Rhydderch-Roberts said: “If the sale of The Hundred is successful, we will have additional resources to promote all formats of cricket in Wales. Underpinning all of this, of course, is the exponential growth of cricket domestically and internationally.

Enterprise

Bath's oldest charity appoints new chief executive

Historic Bath charity St John’s Foundation has appointed a new chief executive. Catharine Brown has been serving as the organisation's interim head since last July. Before that she was at the helm of Designability, a national charity creating life-changing products for disabled people. St John’s is one of Britain's oldest charities and works with housing and outreach services to help older adults live independently for longer. It also supports people who have reached a point of crisis in their lives, while also working to create communities where children can grow up happy, healthy, and well-educated. “I am delighted to take on the role of CEO at such a pivotal moment for St John’s,” she said. “This charity has a remarkable history of supporting the community in Bath and the local area, and I look forward to building on that legacy with fresh ideas, renewed energy and a clear vision for the future. "Change brings opportunity, and I am excited to work with our team and partners to ensure St John’s continues to grow, evolve and make a meaningful difference to the people we serve.” Ms Brown started her career in marketing leadership roles at Selfridges and Marks & Spencer before becoming global marketing director at The Economist group. Since transitioning into the charity sector, she has held senior roles in marketing, fundraising and leadership at national charities as well as founding her own consultancy business. Sandy Forbes, chair of St John’s, said, “On behalf of the trustees, I am delighted to welcome Catharine as our CEO. Having recently taken on the role of chair myself, I know how important it is to honour the incredible 850-year legacy of this charity while ensuring we continue to evolve for the future. "Starting our roles at a similar time gives us a fantastic opportunity to work closely together, bringing new energy and a shared commitment to making a lasting impact in our community. I look forward to collaborating with Catharine and the entire team to build on St John’s proud history and ensure we keep making a real difference in our community.”

Enterprise

Exeter wholesale broadband company agrees merger

An Exeter-based wholesale internet provider has agreed to merge with a rapidly growing Oxford-headquartered operator. FullFibre, which has offices on Pynes Hill, and its in-house internet services provider (ISP) retail company BeFibre, has agreed the deal with Zzoomm, an established full-fibre business. The enlarged group will have one of the largest full-fibre footprints with some 600,000 properties ready for service and over 65,000 customers. The bosses of the merged firms said the move would accelerate growth and boost operational efficiency. It is also hoped the deal could lead on further mergers and acquisitions across the Altnet sector. Matthew Hare, chief executive of Zzoomm, will become executive chairman and James Warner, chief executive of FullFibre, will be group CEO. Mr Hare said: “An enlarged business with the operational and financial infrastructure, benefitting from the economies of scale, as well as a management team with an exceptional track record, we will have an excellent platform to combine with other Altnets in the near future as well as driving organic growth faster.” Mr Warner added: “This merger represents another significant step in our journey. With a shared commitment to delivering transformational full fibre connectivity with exceptional customer experience, this deal strengthens our collective ability to grow even faster and seize new market opportunities." “For FullFibre, this is our second merger and another milestone in our mission to create a 21st-century digital backbone for the nation. Following our recent successful integration with Digital Infrastructure and BeFibre, this next merger further accelerates our ambitions to lead the market and provide unmatched connectivity to homes, businesses, and wholesale partners alike.” The merger is subject to final documentation execution and regulatory approval, expected early in 2025.

Enterprise

Sheffield battery firm seals $7m funding to roll out clean energy tech in Africa

A Yorkshire battery tech company has secured $7m in funding to accelerate its work in Africa. Sheffield-based Mobile Power (Mopo) uses solar powered hubs and local agents to rent out batteries to customers with limited access to power, with a pay-per-use battery sharing service that is affordable to all, ensuring homes, electric vehicles and small businesses can connect with clean energy. Now the sustainable energy firm has secured funding from British International Investment, the UK’s development finance institution and impact investor, allowing it to ramp up expansion of its battery rental business in the Democratic Republic of Congo, which is a key growth market. Mopo launched its operations in Democratic Republic of the Congo in the second quarter of last year and already operates across six cities. The financing from BII’s Climate Innovation Facility will help the company to treble its service capacity in the republic within the next 12 months, while also reaching over a million people. Mopo wants to revolutionise access to sustainable energy for households and businesses in urban and rural communities in Africa by offering two types of battery rentals, a compact one for lighting, phone charging, and powering DC appliances, and a larger battery designed to power larger 230V appliances, replacing petrol generators. CEO Chris Longbottom said: “We are delighted to collaborate with BII, which has acknowledged the significance of our innovative pay-per-use battery rental model. At Mopo, our mission is to create a high-impact, sustainable solution that empowers households and small businesses by providing access to electricity without the burden of costly upfront equipment purchases. "This partnership aligns perfectly with BII’s mandate to finance initiatives that drive social and economic development. Together, we aim to make clean, affordable energy accessible to those who need it most, fostering growth within the communities we serve.” He said the planned expansion is critical because less than 17% of the population currently has access to electricity. Mr Longbottom added: “We recently achieved a significant milestone, surpassing 23 million rentals across Sub-Saharan Africa, with the DRC emerging as one of our key growth markets. With a population exceeding 100 million and over 80% lacking access to electricity, the need in this country for our service is both compelling and substantial. This financing from BII marks the beginning of what we envision as a long-term partnership, enabling us to accelerate our ambitious growth strategy in the DRC and make a transformative impact on the lives of millions by delivering reliable and affordable energy solutions.” Chris Chijiutomi, managing director and head of Africa at BII, said: “Imagine a battery, that can power everything from phones to fridges, lights and larger appliances, enabling businesses even in the most remote locations, to thrive when the supply of electricity is non-existent or unreliable. This is why backing energy access is a key priority for BII to drive sustainable economic growth, particularly in Africa’s frontier markets including DRC. "By supporting innovative businesses like Mopo, we aim to create more early-stage solutions to address significant energy deficits across the continent. We look forward to supporting Mopo as it delivers on its expansion plans and makes access to energy possible for more Africans.” Lord Collins of Highbury, UK Minister for Africa said: “This innovative partnership between British International Investment and Mopo demonstrates how UK expertise and investment can help unlock sustainable economic growth in Africa. By bringing reliable, clean energy solutions to households and businesses, we’re driving green development while creating opportunities for UK and African businesses alike.

Enterprise

Radiator group Stelrad sees revenues dip below £300m but profits rise

International radiator group Stelrad saw its revenues fall below £300m in what it described as a “subdued” market environment in various parts of the world. The Newcastle company, which has its main manufacturing base in Mexborough, South Yorkshire, has released a trading update for 2024 in which its turnover fell 6% to around £290m. It said revenues had been helped in part by new business grains in a number of countries in the second half of the year, though overall volumes fell compared to 2023. But with increased prices and cost control measures, Stelrad is expecting its adjusted operating profit to come in at around £31.5m, a small increase on last year’s figure and ahead of market expectations. The company highlighted “continued macroeconomic challenges across our geographies”, saying that high interest rates and inflation were continuing to impact on sales on both the new build housing market and other sales. It said it had seen a recovery in volumes in some European countries, but was expecting “continued softness in market conditions, at least through the first half of 2025. It said that trends towards better energy efficiency in housing would help its long-term prospects and it was in a strong position going into 2025. Chief executive Trevor Harvey said: “I would like to thank the Stelrad team for delivering another year of strong growth in profitability. Stelrad’s performance in 2024, particularly in terms of growth in contribution per radiator and proactive margin management initiatives, demonstrates the strength and resilience of our business model, and further underpins our confidence in the group’s prospects. “We continue to focus on our strategic objectives of growing market share, improving product mix, optimising routes to market, and positioning the business effectively for decarbonisation. While 2025 is expected to provide continuing market challenges, the initiatives we have undertaken will mean that our business can meet these challenges and continue to deliver long-term value for our stakeholders.” Stelrad, which can trace its history back to the 1930s, employs around 1,300 people worldwide, with bases in the UK, Italy, the Netherlands, Denmark and Poland. It is the leading radiator seller in the UK, Ireland, France, the Netherlands, Belgium, Denmark and Greece. The company listed in the Stock Exchange in 2021.

Enterprise

Chancellor urged to grant BP and Shell tax breaks amid Donald Trump's trade war

Oil giants such as BP and Shell, who operate in the North Sea, should be given significant tax breaks to help protect the UK against Donald Trump’s escalating trade war, Chancellor Rachel Reeves has been advised. The Aberdeen & Grampian Chamber of Commerce is urging the UK government to reduce the 78 per cent tax burden on North Sea oil and gas producers, which also includes billionaire Sir Jim Radcliffe’s Ineos Group, as reported by City AM. The lobby group believes this would be a "key first step towards greater domestic energy security", especially with US President Donald Trump announcing plans to impose import tariffs on Mexico, Canada and China. Trump has also threatened substantial levies on trade with the European Union. The chamber of commerce referenced analysts’ predictions that oil prices could drop if a global trade war impacts demand. The Energy Profits Levy (EPL), a windfall tax imposed on energy production, is in place until 2023. It adds a 38 per cent additional tax rate on oil and gas production, on top of corporation tax at 30 per cent and the 10 per cent supplementary charge. The chamber argues that the tax burden no longer needs to be as high, with "price conditions long having returned to normal levels". The organisation also noted that "UK oil production is now at an all-time low", and gas production is near record lows. Russell Borthwick, the chief executive of Aberdeen & Grampian Chamber of Commerce, has criticised the UK's response to the 2022 global energy crisis, stating: "The UK’s response to a global energy crisis in 2022 ran contrary to all good sense." He added: "Instead of bolstering domestic supply, enabling production from the North Sea and attracting new investment into the North Sea we have become increasingly reliant upon imports." Borthwick also noted that this approach had unsettled the energy sector and its supply chain, undermining confidence at a crucial time for the transition to net zero. He warned: "With the world on the brink of a trade war, we cannot afford to repeat these mistakes." Borthwick pointed out that the UK is already heavily dependent on imported gas from Norway and LNG shipped from the USA to meet our demands. He cautioned: "Any fluctuations in the price of oil and gas could be very damaging in a world where returns on production from the North Sea are already marginal." Borthwick concluded by suggesting that the smart response would be to remove the EPL sooner rather than later – protecting our domestic energy sector and ensuring we’re not putting the UK economy at a significant disadvantage in an increasingly uncertain global context. In related news, last month City AM reported how Shell paid out more than £18.7bn to shareholders in 2024 while cutting spending on renewable energy. The FTSE 100 giant reported a dip in earnings from £23bn in 2023 to £19.1bn in 2024 amid weaker oil prices and lower demand for fossil fuels. Despite a decrease in earnings, Shell announced that it had increased dividends by four per cent in the fourth quarter and unveiled a £2.8bn share buyback scheme, which it anticipates to be completed by its first quarter results for 2025. In the same period, BP revealed plans to cut thousands of jobs across its global workforce as part of cost-cutting measures and efforts to boost its share price.

Enterprise

Good Energy poised to be acquired by UAE-based Esyasoft in deal valuing business at nearly £100m

Wiltshire renewable provider Good Energy is poised to be acquired by a UAE-based company in a deal valuing the business at £99.4m. In a stock market announcement on Monday, January 27, the Chippenham-based green energy provider said it had reached an agreement with the board of Esyasoft on the terms of a recommended cash offer. The deal follows an unsolicited takeover approach by Dubai-headquartered Eysasoft, which describes itself as a smart grid technology company, last October. At the time, Good Energy said the offer price of 412p per share was "not a fair reflection" of the future growth opportunities of the business. Under the terms of the acquisition deal, each Good Energy shareholders will receive 490p in cash per share. The Esyasoft Group has operations in UAE, the UK, Europe and India. It was founded by Bipin Chandra in 2014 and has been a subsidiary of Sirius International Holding since 2023. Sirius is one of the principal operating subsidiaries of International Holding Company - the investment firm chaired by the son of UAE’s founder Sheikh Tahnoun bin Zayed Al Nahyan. Good Energy was established in 1999 by Juliet Davenport as a challenger supplier to major energy companies such as British Gas. It now has 245,000 customers and has expanded to offer services including solar panel installation. It has also invested in electric vehicles and has a stake in Bristol-based EV charging app Zapmap. Ms Davenport said on Monday the deal represented an opportunity to scale Good Energy's propositions. "[The acquisition will lead to] the decentralised and flexible clean power offering for the prosumers of the future to make a real difference to climate change." Nigel Pocklington, chief executive of Good Energy, added: "Whilst the board remains confident in Good Energy's strategic delivery as a publicly listed company, Esyasoft's financial resources, in addition to its presence in new markets, present a significant increase in our potential." Mr Chandra, chief executive and founder of Esyasoft Holding, said: "What strikes us about Good Energy is how aligned it is both strategically and culturally with our own business. Good Energy, like Esyasoft, is driven by a vision to deliver a smart, green and sustainable energy future for all. He added: "We believe that through our strategic partnership, we can support Good Energy in accelerating delivery of its purpose and growth ambitions by realising the extensive opportunities that exist for this business both in the UK and internationally." Good Energy said its board would recommend the offer to shareholders.

Enterprise

College group NCG reports sound finances despite funding clawback

Major college group NCG says its finances are in good shape having boosted turnover and returned a surplus, despite having to pay back millions in Government funding. The Newcastle-based group, which includes seven colleges catering for more than 35,000 learners, has reported a £9.57m surplus in the year to the end of July 2024, having turned around a loss of £3.69m in the year before. But the improvement was thanks to the £12.58m sale of a "surplus asset" during the year. Meanwhile Ebitda was £5.5m, down from £6.2m. Growth in the group's 16-19 contract, driven by a significant rise in learner numbers, meant turnover increased to £172.28m during the year - of which £131m came from funding body grants - up from £146.81m. Having exceeded its budget, NCG also gave its staff a pay rise and all of its non-management staff a £500 bonus. The documents show provision of £9.2m for a funding clawback agreement with the Educations Skills Funding Agency - the Government body from which the group gets most of its funding. During the year, £3m of the agreement was repaid with the rest transferred to creditors. Despite the sum clawed back, and what it described as continued pressure on funding in recent years, NCG invested extensively across IT and equipment, work on curriculum improvement and upgrades to its large estate. About £16.2m was ploughed into a range of projects including the delivery of new teaching facilities at Kidderminster, Carlisle and Newcastle Colleges and proof of concept work focussed on 'smart campuses' including digital tools and analytics capabilities designed to create more intuitive learning spaces while reducing costs and environmental impact. Meanwhile funding from the Office for Students, HESkills Injection Fund, the Local Skills Improvement Fund and T-Level money allowed for investment of more than £11.3m, including NCG match funding contributions, into curriculum equipment and facilities. A new financial plan - covering the period to 2026 - was signed off by NCG governors last year with a focus on retaining the 'good' financial health status using Education and Skills Funding Agency calculations. The group said: "We will see continued growth in all areas of delivery and if recruitment aligns to our plan further funding will be realised in year. We will continue to develop and seek out new funding opportunities for both capital and revenue programmes to allow further capital investment across our colleges. "Additional funding will also help with the ongoing challenge NCG, together with the entire FE sector faces in recruiting and retaining qualified and appropriately qualified staff."

Enterprise

Sadiq Khan launches London nightlife taskforce to ask if Amy Lamé should be replaced

Mayor of London, Sadiq Khan, has initiated a new taskforce to revitalise London's nightlife, with the potential replacement of former Night Czar, Amy Lamé, on the agenda. The independent committee, led by fabric nightclub founder Cameron Leslie, was launched on Tuesday and is tasked with bolstering the capital's nighttime economy, as reported by City AM. Over the next six months, it will provide various recommendations for the future of London's nightlife, including whether a new Night Czar should be appointed to succeed Lamé. During her eight-year tenure, which ended in October 2024, Lamé earned an annual salary of £132,846. Since stepping down, she has embarked on a new venture as the "founding director" of 24hr Cities, a global consultancy. Her term saw a wave of closures across London's nightlife venues, with a report by the Night Time Industries Association (NTIA) revealing that 29% of the capital's clubs permanently closed between June 2020 and June 2024. The taskforce also includes Pxssy Palace founder Nadine Noor, Colour Factory founder Nathanael Williams, and Alice Hoffman Fuller, Corsica Studios head of operations. Industry figures Kate Nicholls, CEO of UK Hospitality, Mike Kill, CEO of the NTIA, and Sophie Brownlee, external affairs manager at Music Venue Trust, are also members. Khan remarked: "London’s nightlife industries are vital to the success of our capital, but, as with other cities across the country, they have faced a huge range of challenges in recent years. The rising cost of living and operational costs, shifts in consumer behaviour, staffing shortages and licensing issues have all been hitting businesses hard." He expressed confidence that the taskforce would contribute their "expertise and unparalleled knowledge" to "inform and develop our collective efforts to support nightlife". Leslie also commented on the initiative, saying: "This group represents some of the best of what London has to offer, across an incredibly broad spectrum. We are all excited about the future of nightlife in our wonderful city, and are also acutely aware of the stark challenges we face." While acknowledging that they "cannot wave a magic wand to make things better", he pledged to "put forward something meaningful by which all stakeholders and individuals who genuinely want to see London’s vibrant nighttime economy thrive and grow can then get behind". The sector has been grappling with various hurdles, from the aftermath of the pandemic to soaring rents, business rates, workforce deficits, licensing complications, and broader commercial strains. Recent data from the NTIA indicates a 32.7 per cent slump in nightclubs nationwide since 2020, with London experiencing a 19.7 per cent drop from March 2020 to November 2024. This translates into the closure of 405 venues, with nightclub numbers dwindling from 1,240 in March 2020 to a mere 835 by November 2024. London experienced the smallest decline, with cities like Manchester and Birmingham witnessing a 33.3% and a 38.5% fall respectively. Taskforce members are set to collaborate with the Met Police, Transport for London (TfL), London Councils, trade unions, the business sector, and supply chain companies. City Hall announced that the panel will receive support from Nightlife Research consultants Vibe Lab, who will engage with Londoners to gather evidence to inform the taskforce’s recommendations.

Enterprise

Entrepreneur Ian Watson looks back on 10 years and £1m of grants through family trust

Luxury care home operator and property entrepreneur Ian Watson has appeared in our business pages many times over the years, often after striking multimillion-pound deals with his business ventures. Yet some of his proudest moments have involved deals of a very different kind - grants made from his family’s charitable trust. Having been fortunate in many aspects of his life, Ian strongly believes that if you have the privilege of wealth and opportunity, you also have greater responsibility to help others. To that end, the Newcastle owner of Hadrian Healthcare and MCM Investments officially registered the Watson Family Charitable Trust in 2015, with his wife and two sons, and friend and lawyer Hugh Welch, senior partner at Muckle LLP, also coming on board as trustees. Now, 10 years on, Muckle LLP has hosted an event to draw together many of the organisations – from across the North East and as far away as Africa – who have received help through the trust. The event, held at the law firm’s Newcastle city centre offices last week, was also double cause for celebration as Ian announced new grants, while also committing more funds into the pot for future donations. Ian initially wasn’t keen on holding a 10-year celebration, worried it would appear too self-indulgent, but other trustees pointed out the benefits such an event could bring. “I said it’s a bit ‘blowing our own trumpets’” he said, “but Hugh said it’s not, it will pull together all the people and all the organisations we’ve been able to help. I gave out further grants on the night too, which takes our giving over the last 10 years to over £1m - and I’ve also committed a further £1m into the Trust, to support more good causes.” The trust’s key drivers have been to help young people to overcome social disadvantage and disability, both within the region and internationally, and to give support to local community projects, with a focus on health, education and deprivation. And over the years there have been many. Since its inception organisations to have received donations include Success4All, St Cuthbert’s Care, World Vision, Parkinson’s UK, The Recruitment Junction, Hadrian School and his own school Whickham School and Sports College. The Watson Family Charitable Trust has had a close relationship with the Percy Hedley Foundation, supporting the school to take part in the annual Christmas carol service and Christmas tree lighting ceremony at St George’s Church in Jesmond, and also making substantial grants to fund a sensory room in 2018, the installation of a roundabout and play area in 2019, and paying for a holiday for children from the school in 2020. At last week’s anniversary event, further grants were made to schools in Kenya and Uganda which were among the first trust recipients, as well as further grants to Success4All and Whickham School. Other recipients included Clean Slate, which helps ex-offenders into employment, and Jessica’s Sarcoma Awareness, which has built a respite holiday home in Northumberland for children undergoing cancer treatment. Among the guests at Muckle LLP last week was Sister Angelina, the “incredible and amazing” nun who Ian and Hugh met almost 10 years ago, after taking on one of the trust’s first and biggest projects to date, which involved work on a school in Uganda. Ian had been introduced to a Northumberland woman whose daughter had carried out voluntary work at a school in Uganda, and the pair were continuing to help the school on her return, through fundraising events. He was shown photos of the school, laying bare just how great it needed financial help, and within two weeks he and Hugh were on a flight to Uganda, to find out how they could help. He recalled: “It’s an amazing place run by volunteers, mainly nuns, and the children have incredibly high needs, but the facilities were nothing short of appalling. There were no toilets except holes in the ground, so infections were rife. There was one tap with water but no washing facilities, no showers, no hot water. "And the staff accommodation was just stables. So, we decided to commit to building a shower block and toilet block for the boys and the girls, separately. We put in running water and solar power so they could have hot running water, and we rebuilt the staff accommodation and installed a playground. That took 12 months and we went back the following year to see the result - the difference was incredible. “We just made it possible by providing the money. The head of the school, Sister Angelina, was the one who really made it possible because she controlled everything and organised everything. “Some years later she was moved by the church to Eldoret in Kenya and she was looking after children, and basically had no facilities yet again. We kept in touch and she told us she had a dream of building a school so children in the poorest communities in Kenya could go to school. “So that’s what we’ve done. We helped her buy the land , the school was built and it opened about two months ago. It will be used by 600 children every week, youngsters who wouldn’t otherwise have any access to education.” The school also allows the children to be properly fed because the trust also bought 10 acres of neighbouring land which is being farmed to produce crops for the school. He said: “That’s so important. I’ll never forget the very first time I went to Africa, to do a project before I set up the Trust in Zimbabwe, to provide some funds to a school. The headteacher said to me, ‘you can’t teach children who are hungry’.” The need for proper nutrition and a safe haven for education has also spurred the trust into helping an organisation closer to home, the West End of Newcastle’s branch of national charity Success4All, which aims to prepare children and young people for a brighter future. “They create hubs where children can go to after school and do homework,” said Ian. “These are kids who can’t do homework at home, they don’t have computers, IT and they don’t have tablets, but they also don’t have the environment to work in. So Success4All is a great organisation.” Ian admits that helping others gives him a lot of satisfaction - and many people won’t even be aware of some of the community projects he’s spearheaded closer to home (the Christmas trees put up outside of businesses in Jesmond, for example, was originally started by Ian in 2023 and now involves the whole community, with Gosforth following suit last year). But he stresses that he “just writes the cheques”. While it’s his family’s name on the paperwork, it’s been the people behind the charities he’s helped who have done all the hard work.. He added: “We uses the evening to celebrate what we’ve been able to achieve with the beneficiaries – that’s a very important part because all we’ve done is given people the funding, they are the ones who’ve used it to go and do great things. It’s all about the people. ”I remember Hugh and I were walking around the school gardens in Uganda at five in the morning and the sun was coming up and we could see everything which had changed and I said to Hugh ‘the richest man in the world hasn’t got what we have right now’. It was amazing to see what we’d done. In relative terms we’d done quite little, aside from writing out cheques, but we’d changed the lives of so many people, staff and children. And that will go on down the generations. It’s there for longevity.

Enterprise

Double management buyout at workwear companies Dale Techniche and J & K Ross

The new owners of two workwear companies that underwent a double management buyout say the businesses are set for growth. Warrington-based distributor J & K Ross and Nelson-based manufacturer Dale Techniche have been acquired from the Ross family by a management team led by Neil Wilcock. The businesses have nearly 50 staff in total and a combined turnover of £10m. The deal was funded by Close Brothers though the value has not been disclosed. J & K Ross was founded by Jean and Ken Ross in 1976 and supplies safety workwear, protective and hi-vis clothing, uniforms and PPE to clients in sectors from utilities and construction to oil and gas, chemicals and petrochemicals. Its Warrington site includes a retail shop alongside its offices, warehousing, embroidery and printing operations. Lancashire's Dale Techniche makes flame-retardant clothing, racewear and flight wear such as pilots’ uniforms, and health and safety workwear. The business was acquired by the Ross family in 2003. J & K Ross and Dale Techniche will continue to trade as standalone businesses. The buyout team alongside Mr Wilcock includes J & K Ross accounts and logistics director, Sharon Sykes, the company’s purchasing manager, Phil Taylor, customer experience manager, Lisa Robinson and communications and IT manager, Phill Moir-Riches, and Donna Emmott, the operations director at Dale Techniche. Neil Wilcock joined J & K Ross as a sales representative more than 30 years ago and has been managing director since 2020, He said: “Both companies are really important names in their respective industries. It’s very much business as usual, and we look forward to serving the needs of our existing customers and new ones, and working with our trusted suppliers, for many more years while maintaining our high standards of service thanks to our dedicated and knowledgeable team. “We have a great management team who understand the businesses well and we have exciting plans to expand, as there are strong growth opportunities for both companies. “At J & K Ross, we will be looking to add to our product portfolio and expand into new sectors, bringing in additional staff to assist with our strategy. Dale Techniche is a sleeping giant and there is great scope to expand its customer base. “The Ross family was keen that the businesses should be able to build on the extensive knowledge base of the senior staff and the wider team so, despite interest from other parties, they were keen to hand over ownership to the management and ensure there would be continuity. Our fantastic and loyal staff are all very happy with the outcome.” A team from law firm Bermans of corporate partners Charlotte Mills and Laura McMorland, with solicitor Nathan Hughes, advised the management team on the double buyout. Charlotte Mills, corporate partner at Bermans, said: “J & K Ross and Dale Techniche are terrific north west businesses with strong foundations and excellent reputations for their commitment to quality and customer service. “The six-strong MBO team has around 140 years’ experience of working in the companies between them, and it was a genuine pleasure to guide them to completion. “They were great to work with and I am confident that the management team will make a huge success of the acquisitions, powered by their enthusiasm and experience. They have an excellent platform for growth and I wish them every success.” Kirsti Pinnell and Helen Mather at law firm Kuits, and Matt Beckley and Lewis Pearson at DJH Corporate Finance, advised the Ross family. Cole Associates provided corporate finance advice to the buyers.

Enterprise

One of Wales' leading firms Zip World sold in a £100m deal

Adventure giant Zip World has been sold in a £100m plus deal that paves the way for further expansion. It has become majority-owned by Oxfordshire-based equity investor Dolphin Capital. The deal provides a profitable exit for LDC, which took a significant minority stake following a multi-million-pound equity investment in the business back in 2018. Since then it has increased turnover by 95% and grown headcount by 200%. Llanrwst-based Zip World was founded in 2013 by former Royal Marine Commando Sean Taylor, who retains a minority stake following the acquisition. It now has eight sites across Wales and England, with adventures including the world’s fastest zip line, Velocity, and a variety of other zips, climbs, drops, and coasters across its locations. Last year an independent report from North Wales Tourism revealed it contributed £941m to the Welsh economy over the last decade. Andrew Hudson, chief executive of Zip World, said: “The leisure and hospitality sector has had its challenges over the past year, so I’m incredibly proud of everything we’ve achieved and that we’re able to continue growing and building on this. "As LDC concludes their successful investment journey with us, we want to thank them for their support over the years which has allowed us to stay resilient and achieve so many of our goals despite the significant disruption caused by the Covid-19 pandemic. "We’re incredibly excited to welcome Dolphin Capital as our new partner not least because they share the same enthusiasm as we do. Their investment not only validates our vision and strategy, but also provides us with the resources and support to really kickstart our latest growth plans. This is just the beginning of what we hope will be a big year. “Investment is key for us, not only in our new sites but also in adding value to our existing locations. We’re thrilled to be opening in London and expanding our offering to communities across the UK, but North Wales remains at the heart of our company – it’s where it all started and it’s why we are continuing to reinvest in more adventures for the area.” The transaction was led by Dewi Hughes, Rob Schofield and Vera Kuehne at LDC. Mr Hughes, partner and head of south west and Wales at LDC, said: “Zip World is a progressive, dynamic and ambitious business in the UK adventure space. It has achieved strong growth during our partnership thanks to the vision, tenacity and strength of its first-class management team, who have navigated opportunities and market challenges with relish. "We’ve had the privilege of supporting this important Welsh business on its journey from our Welsh office and wish the team and Dolphin Capital the very best for what will no doubt continue to be an exciting story.” Dolphin Capital, set up in 2023 by Richard Cook and Kit Tuke, has a portfolio that includes the likes of Snowcentres, Techmet and Dynisma in its portfolio. Mr Cook, partner of Dolphin Capital, said: "We are delighted to support Zip World in their continued growth, and our investment reflects our confidence in the team’s operational ability, their expansion plans and the positive impact they make to the adventure tourism sector in the UK. "We look forward to investing in the existing sites and opening more Zip Worlds in the coming years." LDC and Zip World were advised by KPMG (corporate finance), Blake Morgan (legal), Grant Thornton (tax) and Sedulo (tax), with ongoing support from HSBC Leveraged Finance Manchester. Dolphin Capital was advised by Katz Advisers (corporate finance), Fladgate (legal) and BDO (financial & tax due diligence) and KPMG (tax).

Enterprise

GSK boosts 2031 revenue target to over £40bn following robust Q4 results

Pharmaceutical titan GSK has raised its 2031 sales forecast to over £40bn, an increase from the previously projected £38bn, following a stronger-than-anticipated performance in the fourth quarter. The London-listed pharmaceutical behemoth disclosed core earnings per share of 23.2p for the quarter, which, despite being a roughly 20% decline year-on-year, exceeded the analysts' expectations of 19p, as reported by City AM. For the entire year of 2024, GSK reported core earnings per share of 159.3p, marking a 10% rise at constant exchange rates. Turnover climbed by seven percent at constant exchange rates to £31.4bn, or by eight percent when excluding sales related to the Covid pandemic. The company declared a dividend of 16p per share for the fourth quarter, culminating in a total annual dividend of 61p. It anticipates a dividend payout of 64p in 2025. Additionally, GSK revealed plans to return £2bn to shareholders through a share buyback programme over the next 18 months. Looking ahead to the forthcoming year, GSK forecasts turnover growth of three to five percent in 2025, alongside a core operating profit increase of six to eight percent. "GSK delivered another year of excellent performance in 2024, with strong sales and core profit growth driven by accelerating momentum of our specialty medicines portfolio," stated Emma Walmsley, Chief Executive Officer, in a release. "This, together with outstanding phase III pipeline progress, means we expect another year of profitable growth in 2025, and have further improved our long-term outlook, with sales of more than £40bn now expected by 2031." Walmsley also noted increasing R&D investment and new medicines in its Respiratory, Immunology & Inflammation, Oncology and HIV divisions. Despite the better-than-expected earnings, GSK also reported a third decline in profit last year as it was forced to pay nearly £2bn to settle lawsuits over the heartburn drug Zantac. GSK was forced to pay around £1.8bn to settle thousands of cases in US courts in October amid claims Zantac caused cancer.