The latest acquisition deals in Welsh business

Professional Services

Changes at the top announced by North East legal company Jacksons Law Firm

Changes at the top have been announced by North East legal business Jacksons Law Firm as it closes in on its 150th anniversary. Two new top roles have been created at the business, which has bases in Newcastle, Stockton-on-Tees and Sunderland, after Tony Wentworth announced he is stepping down from his role as managing partner. Erica Turner, partner and head of commercial property, is to take up the role of head of legal at the firm, while Amie Callan becomes head of operations. The pair said they are looking forward to taking Jacksons, which was named Law Firm of the Year at the recent Northern Law Awards, further forward ahead of its 150th trading year in 2026. Ms Turner said: “It is a privilege to be at the helm of Jacksons as it approaches its 150th year. I joined the firm in 2004, working alongside studying at university, and did not ever anticipate that 20 years on, this would be what the future held. This is testament to the mentoring, development and career opportunities that the firm provides - and which I am committed to delivering and developing moving forward.” She added all successful businesses have to remain dynamic to succeed - and Jacksons is no exception. “We’ve proven that, notwithstanding the firm’s heritage, the firm remains relevant, ambitious and successful as the firm’s recent Law firm of the Year and Practice Management Award wins demonstrate,” she said. “Within our strategic planning, we are constantly looking at how we can do things differently and better.” Ms Callan, who joined the firm in 2018, said: “We have a dynamic and fast-paced partnership with a results-driven approach that drives change and improvements in all areas, from client experience through to employee culture. This would not have been possible without the support and mentoring of others such as Tony, Jane Armitage and Erica, showing the great stewardship of the company but also the role the culture plays in succession and ensuring people have the skills to succeed.”

Professional Services

Sainsbury's continues financial services exit with £720m Argos credit card sale

Sainsbury's has finalised an arrangement to offload its Argos credit card portfolio for an estimated £720m, moving away from financial services to concentrate on its core retail operations. The supermarket chain has indicated that the deal is set to conclude at the end of the first quarter of 2025 and the sale price closely matches the loan balances and related provisions for the portfolio, as reported by City AM. This latest agreement with the London-headquartered NewDay Group is a continuation of Sainsbury's strategic shift towards bolstering its retail division following earlier, lacklustre efforts to boost competition in the banking industry. Previously, in June, Sainsbury's entered into an agreement with Natwest for the latter to take over the bulk of Sainsbury's Bank, and then proceeded to sell off its network of cash machines three months thereafter. Sainsbury's doled out £125m to purchase its banking arm from Natwest, but anticipates that Sainsbury's Bank will ultimately reimburse the grocer with at least £250m in surplus capital to be distributed among its shareholders. This move took place four months after Tesco divested its principal banking segment to Barclays for £600m, aligning with its "food first" initiative. After these transformations, Sainsbury's financial services division now primarily generates commission-based income by levying fees on partners allied with its brand and store locations. The retailer envisages an annual revenue of no less than £40m through March 2028, which would be sourced from its insurance, foreign exchange, and automated teller machines (ATMs), as well as earnings from the freshly established partnership with NewDay. Sainsbury's has revealed that the Argos credit cards account for approximately 20% of the brand's sales and are used by around two million customers. The company further stated that there will be no immediate changes for customers as a result of this deal. NewDay, a provider of credit to shoppers, took over the John Lewis Partnership's rewards card from HSBC two years ago. HSBC has been the owner of M&S Bank since 2004. Over the past twenty years, supermarkets have been exploring ways to generate additional revenue from their customers beyond food and drink, including ventures into telecommunications, broadband, restaurants, energy and more.

Professional Services

Metro Bank hit with £16.7m fine for inadequate monitoring of £51bn worth of transactions

Metro Bank has been hit with a hefty £16.7m fine by the Financial Conduct Authority (FCA) for its failure to adequately monitor transactions for potential financial crime risks. The City watchdog revealed that Metro Bank had inadequately monitored over 60 million transactions, totalling a value of £51bn, for money laundering risks between June 2016 and December 2020, as reported by City AM. "Metro automated the monitoring of customer transactions for potential financial crime in June 2016. However, its system did not work as intended," the regulator stated. An error in how data was fed into the system meant that transactions taking place on the same day an account was opened, and any subsequent transactions until the account record was updated, were not monitored. Despite concerns being raised by junior staff members in 2017 and 2018 about the adequacy of the checks, the issue was not fully resolved until December 2020, more than four and a half years after the automated system was first implemented. "Metro's failings risked a gap being left in our defence against the criminal misuse of our financial system. Those failings went on for too long," said Therese Chambers, joint executive director of enforcement and market oversight. The bank would have faced a larger fine of £23.8m, but it qualified for a 30 per cent discount as it agreed to resolve the issue.

Professional Services

City law firms see partner fees falling for second year as regionals close gap

While the majority of law firms anticipate a rise in revenues this financial year, City partners are witnessing a gradual decline in their fees as regional law firms begin to close the gap, new data reveals. Professional service firm Crowe's latest report indicates that despite inflation hitting 11 per cent in 2024, nearly 40 per cent of firms have seen their revenues grow beyond this rate, as reported by City AM. The study, which included 56 law firms each with a turnover exceeding £1m last year, found that City partner fees have fallen for the second consecutive year to £1.5m, a one per cent decrease from the previous 12 months. Meanwhile, regional firms are making strides, with the average partner generating £955,000, marking a near six per cent increase from the previous year. When it comes to fees per fee earner (including partners), they rose by five per cent in City law firms to £284,782 and by three per cent in regional firms to £146,487. The report also highlighted that the headcount for fee earners in regional firms grew by almost 10 per cent and by over two per cent for partners. In contrast, City firms saw an increase of one per cent for fee earners and over six per cent for partners. Crowe further disclosed that the surge in interest rates has led to unprecedented levels of interest on client accounts, with 41 per cent of client account balances exceeding £1m, the highest reaching over £7m. The survey revealed that a significant majority (72 per cent) of companies reportedly generated over £250,000 in interest from client accounts. The study also pointed out a shift in workplace dynamics, with law firms considering changes to flexible working systems - 66 per cent anticipate staff being in the office for more than half (50 per cent) of their time. The survey suggested that the drive for office attendance has predominantly come from regional firms, with 75 per cent expecting employees to be in the office three or more days a week, compared to just 50 per cent of City firms.

Professional Services

Bitcoin price rockets to new all-time high as Trump effect continues

Bitcoin has surged past $82,000, continuing its record-breaking streak following the re-election of Donald Trump as President. The cryptocurrency reached an all-time high of $82,313 (£63,900) earlier today, although it has since relinquished some of its gains, it remains 2.1 per cent higher, as reported by City AM. Bitcoin prices have soared approximately 20 per cent since Trump's election last week, with the rally spurred by optimism that a second Trump term could herald a new chapter for crypto. "Promises to deregulate crypto after three years of Gensler leading the Biden crackdown means the market is buoyant," commented Neil Wilson from Finalto. Other digital currencies, including Ethereum and Solana, have also seen significant increases since the election. Despite previous criticisms of cryptocurrencies, Trump began to engage with the industry in the lead up to his campaign, fuelling speculation of a more supportive regulatory landscape. "He's made an about turn on supporting the industry and is now vowing to turn the US into the crypto capital of the world," remarked Susannah Streeter, head of money and markets at Hargreaves Lansdown. "Bitcoin speculators are betting on a more clement regulatory environment and have expectations that the authorities may build up a reserve crypto fund, helping lift ongoing demand," she added. Anticipation is mounting that Trump might appoint more crypto-friendly regulators and establish a strategic Bitcoin reserve should he return to office. In tandem, the Republican Party may soon be assuming control of the House of Representatives, setting the stage for potential sweeping legislative adaptations.

Professional Services

Lancashire officials urge faster rollout of banking hubs to revive high streets

The rollout of banking hubs designed to fill the void left by the decline of traditional high street branches is not happening quickly enough in Lancashire, according to county councillors. They argue that Lancashire needs more such hubs, which are opening nationwide, to maintain face-to-face services in town centres abandoned by banks. To date, only two such facilities have been launched in the county, with another four in the pipeline. These hubs offer a range of banking services that were once commonplace on most high streets until the collapse in branch numbers began about a decade ago. Unlike their predecessors, these new hubs serve all customers, regardless of their banking affiliation. They cater to individuals and businesses who need or prefer cash transactions, as well as ensuring banking access for elderly and disabled residents who may find transitioning to digital banking challenging or undesirable. At a Lancashire County Council meeting, members unanimously agreed to form a working group to investigate how the establishment of banking hubs could be expedited in areas most impacted by the dismantling of the branch network. County Cllr Matthew Maxwell-Scott, who proposed the initiative, commented: "With the exception, perhaps, of our largest towns, the bank is finished...but banking isn't – and this is a way of keeping it going.", reports Lancs Live. He also mentioned that "some pressure" should be applied to Cash Access UK, the entity responsible for the new hubs which operate under Post Office branding, to expedite their introduction in Lancashire. "The decline of the high street bank is perhaps something that we mourn, but ultimately, as a consumer, I don't want to be paying for bricks and mortar that don't really deliver anything that I need, that then results in higher fees and charges." However, he acknowledged the necessity for certain demographics, stating: "But...for those who do require more support – often older citizens [and] those who run cash small businesses – they still need the [services] of...a high street bank. The banking hubs effectively replicate those," explained County Cllr Maxwell Scott, representing Lancaster Rural East. Currently, only two such hubs have been launched in Lancashire, located in Barnoldswick and Great Harwood, with plans for additional hubs in Bacup, Darwen, Kirkham, and Morecambe. Notably, Bacup and Morecambe are slated to open in February and September 2025, respectively. Banking hubs operate from 9am to 5pm, Monday through Friday, and some feature 'community bankers' from specific banks who visit on predetermined days, allowing customers to discuss complex issues with a representative from their own bank. The UK has seen over 6,000 bank branch closures since 2015, as reported by the consumer group Which? earlier this year. County Councillor Noordad Aziz highlighted at the meeting the need to address cash availability beyond banking hub hours. "If you look at the number of free-to-use cash machines that have disappeared from our high streets across the county, they are significant," he remarked. He also pointed out that those ATMs which charge for withdrawals can impose "a significant amount of money."

Professional Services

Bank of England announces rate cut amidst Budget implications

The Bank of England has reduced interest rates by 25 basis points, indicating a "gradual" approach as the Budget's impact permeates the economy. Eight members of the Bank's Monetary Policy Committee (MPC) voted in favour of the second rate cut this year, with only Catherine Mann opposing. This brings the benchmark Bank Rate to 4.75 per cent, down from a high of 5.25 per cent. The Bank made its first interest rate cut since the pandemic in August. Market expectations were met with this decision due to recent progress on inflation. Data released last month revealed that the headline rate dropped to 1.7 per cent in September, the lowest since April 2021. Underlying inflation indicators, such as services inflation and wage growth, have also continued to ease, suggesting a decrease in domestic price pressures, as reported by City AM. "If the economy evolves as we expect it's likely that interest rates will continue to fall gradually from here," stated Andrew Bailey, Governor of the Bank. However, Bailey emphasised that the Bank "can't cut interest rates too quickly or by too much" due to ongoing worries about inflationary dynamics. Specifically, the Bank highlighted the potential inflationary effects of the new government's inaugural Budget. Chancellor Rachel Reeves unveiled approximately £40bn in tax hikes last week, which are set to underpin a £70bn average annual increase in government spending. According to the Bank's latest projections, this blend of tax increases and heightened expenditure is expected to elevate inflation while simultaneously stimulating growth. The Bank's officials have estimated that due to the Budget's implications, inflation could rise by about half a percentage point, potentially reaching a peak of 2.75% in mid-2025. They anticipate that inflation will realign with its target by early 2027, which is roughly a year beyond their previous predictions. The report also highlighted uncertainties surrounding the inflationary effects of the rise in employers' national insurance contributions. Bank experts indicated significant ambiguity regarding the impact of the tax increments, noting that outcomes would hinge on "the degree and speed with which these higher costs pass through into prices, profit margins, wages and employment". In contrast to the Office for Budget Responsibility's outlook, the Bank foresees businesses absorbing a larger portion of the increased expenses within their profit margins, rather than reducing employee wages. Nonetheless, it was implied that the fiscal measures would likely lead to a "small decrease in potential supply" and exert a "small upward impact on inflation". Furthermore, the Bank suggested that the Budget would bolster growth by about 0.75% relative to the forecasts made in August. This adjustment could see the annual growth rate in 2025 surge to 1.75%, an increase from the current year's projection of around one percent. "This reflects the stronger, and relatively front-loaded, paths for government consumption and investment more than offsetting the impact on growth of higher taxes," stated the Bank. Growth is then projected to decline to 1.1 per cent in 2026 as a degree of spare capacity builds in the economy. This mirrors both the restrictive stance of monetary policy and fiscal tightening. The forecasts were predicated on the assumption that the Bank Rate would drop to around 3.75 per cent by the end of next year. Traders have already adjusted their expectations for rate cuts as a result of the Budget, anticipating just two or three rate cuts in 2025. Setting aside the potential inflationary impacts of the Budget, Bank officials continued to highlight concerns about the persistence of services inflation. Services inflation, which is viewed as a good measure of domestic price pressures, dropped to 4.9 per cent in September, significantly below the Bank's expectations. However, Bank officials cautioned that some of the decrease in services inflation was driven by "volatile categories", some of which are expected to unwind. "Services price inflation was expected to remain broadly unchanged over the next six months," it declared.

Professional Services

Shawbrook Bank's loan and deposit books surpass £15bn amid robust demand in real estate

Shawbrook Bank has announced that its loan and deposit books have surpassed £15bn for the first time, following a surge in lending demand during the first nine months of the year. In today's trading update covering the first three quarters, the retail lender reported an 18 per cent annualised increase in its loan book to £15.1bn, up from £13.3bn the previous year, propelled by "strong net lending volumes across our core specialist real estate and SME markets", as reported by City AM. The bank's deposit book also experienced significant growth, expanding by 16 per cent to over £15.2bn, compared to £13.6bn last year. "Demand for the premium experience, flexibility and certainty we offer across our specialist lending markets remains robust, with both our loan and deposit books exceeding £15bn for the first time," Marcelino Castrillo, Shawbrook Bank's chief executive, commented. "We have maintained our focus on re-weighting our lending mix while leveraging our agility in the deposit market, contributing to a stronger underlying return on tangible equity for Q3." "Investment in the continuous evolution of our proposition to stay ahead of customer needs, expectations and trends remains our strategic focus." However, the bank did note an uptick in the number of clients in arrears, rising to 2.8 per cent from 2.3 per cent, a figure which the firm stated remains within its credit risk appetite. "As we look ahead, we continue to see promising opportunities for expansion and value creation across our core markets, including SME and Real Estate," Marcelino further added.

Professional Services

Profits rise at Womble Bond Dickinson following year of sustained growth

The region’s biggest law firm has highlighted sustained growth and client successes following a jump in profits in a shorter trading year. Newcastle based Womble Bond Dickinson UK LLP, formed when Bond Dickinson merged seven years ago with US firm Womble Carlyle Sandridge & Rice to create a trans-Atlantic practice, moved its accounting reference date, leading to the the firm posting strong results for an 11-month period. Published accounts for the period ending March 2024, show a drop in turnover from £116.9m in the 12 months to April 2024, to £114.6m, in the 11 months to the March 31 2024. Operating profit, however, rose from £24.2m to £26.7m, while pre-tax profit jumped from £24.1m to £28.7m. Total members interest also increased, from £37.4m for the group to £37.8m The accounts detail how profits are shared among the members in accordance with agreed profit sharing arrangements and that members are required to make their own provision for pensions from their profit shares. During the year there were 99 members, two more than in 2023. With its head office in Newcastle, the wider Womble Bond Dickinson group has bases across the US and UK, with offices in London, Bristol, Edinburgh, Leeds, Newcastle, Plymouth, Southampton and Teesside. The company made significant investments in the North East two years ago, moving more than 400 employees from its former offices on Newcastle Quayside to new sustainable offices within The Spark at Newcastle Helix quarter. It also refurbished its Leeds office and expanded its presence on Teesside. Following on from the investments the company said its 2023/24 year had seen it roll out its new strategy “giving clarity to our vision, our position in the market, the types of work we will target for growth and where we need to focus in order to achieve our ambitions”. A report within the accounts highlights how it made a number of key hires during the year, extended its work with US bases and also secured a number of legal panel appointments. The report says: “Sustained growth and client success continues to headline our day-to-day work. We were appointed to the legal panels for clients including Atom Bank, Bellway Homes, HydraB Group, Natwest and Shell International, and acted as lead advisor on landmark work with clients across the UK, including Centrica, The Department for Energy Security & Net Zero, Lloyds Bank, LV and RES. “Collaboration with our US colleagues increased significantly, led by our brand refresh and first global awareness marketing campaign. We worked together on more international tenders and cooperated on various joint thought leadership projects. “Our expertise continues to be recognised by the wider market. We won Planning Law Firm of the Year at the 2023 Planning Awards and our IP dispute management team won Impact Case of the Year at the EMEA Managing IP Awards. We were also named in key publications such as The Times Best Law Firms report and in legal directories including The Legal 500 and Chambers and Partners, being particularly commended for our experience in energy, renewables and planning.”

Professional Services

Research consultancy Kada choses Gateshead for second UK base

A consultancy specialising in economic development work has chosen Gateshead as its second office in the UK. Sheffield-based Kada research has already been working in the North East and has now decided to launch permanent base in Gateshead's Baltic Quarter. A handful of highly skilled research jobs have been created in the move which sees the firm take space in Baltimore House. Kada specialises in creating evidence-based reports and recommendations for clients including governmental bodies, academic institutions and community organisations. Its team has already worked with the former to research "inclusive productivity" for the Our Economy 2023 report, and has produced a Digital Framework for Hull and East Yorkshire LEP, among other projects. Newcastle and Gateshead’s destination and inward investment agency, NewcastleGateshead Initiative (NGI), initially supported Kada in its search for office space, and continues to provide introductions to key partners in the region. Karl Dalgleish, Kada’s managing director, said: “Our economic development projects are place-based, and we like to be embedded in places to help deliver these. Gateshead and Baltimore House fits Kada’s ethos with similarities to Sheffield where the business originates.” Kada’s North East director, Sam Nair, added: “Having been based in the North East for nearly 15 years I am excited about what devolution will bring for the region and the opportunity to grow the Kada team in Gateshead. Kada is passionate about helping partners in Gateshead and the North East to achieve sustainable and inclusive economic growth and creating job and placement opportunities for young people at Kada too.” Jen Hartley, director of Invest Newcastle, NGI, said: “I’m pleased to welcome Kada Research to Gateshead. Their emphasis on economic and social impact research and inclusive growth strongly aligns with our regional priorities making this a great match. Wider participation and access is also a key focus for the work we do at NGI so I look forward to continuing to support their team as they grow and expand here.” Coun Leigh Kirton, cabinet member for economy and communications at Gateshead Council, said: "Kada Research’s choice to expand to Gateshead is a great reflection of our growing reputation as a place for forward-thinking businesses to invest. Their commitment to evidence-based insights and inclusive growth aligns well with our ambitions for the borough, and we’re proud to welcome Kada to Gateshead’s thriving business community.”