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Rise in corporate insolvencies in England and Wales

2025-05-10 15:07:10 By

The number of corporate insolvencies in England and Wales has risen ahead off business cost rises in April. Figures for January showed that 1,852 firms became insolvent, up 10.7% on a year earlier and 13.1% on 2023. Compared to December the level was up 6.5%

Personal insolvencies decreased by 3.4% in January to 9,706 compared to December, but were up 11.6% on a year earlier.

Bethan Evans, Wales chair of R3, the UK’s insolvency and restructuring trade body, said:“The monthly and yearly rise in corporate insolvencies is down to an increase in the number of creditors’ voluntary liquidations and administrations. That would suggest that directors may be choosing to close down their firms after years of challenging trading conditions and ahead of the increase in the National Minimum Wage and Employers’ National Insurance contributions in April, and this has pushed corporate insolvency levels to the highest we’ve seen in January in more than five years.

“However, there is some positive news in that the increase in administration numbers, suggests that there are more companies that have the potential to be rescued via a sale out of the administration process.

“Creditor pressures and ongoing cost issues are continuing to drive corporate insolvencies. A long period of rising expenses coupled with consumers’ reluctance to spend is continuing to take a toll on businesses, and creditors have now largely abandoned the benign attitude they had in the aftermath of the pandemic as they attempt to manage their own debts. We’ve also seen HMRC return to its pre-pandemic approach of pursuing money it’s owed after years of taking a more supportive stance during and after the Covid era.”

Ms Evans, a partner at Menzies, said that while retailers have seen an increase in sales, this has largely been driven by discounts and deals. The construction sector has been affected by the weather, client caution around commissioning projects and ongoing rises in costs.

She added: “The hospitality sector has also failed to see the rise in revenues it was hoping for at Christmas, although pubs and bars had a better start to the year than expected after many adapted their offerings to accommodate Dry January.

“Looking at the wider economy, the projected cut in growth has had an impact on business confidence and led to many directors and management teams becoming unsure about investment or business growth this year, as well as reducing firms’ willingness to invest in growing their workforces ahead of the increase in National Minimum Wage and Employers’ National Insurance contributions. However, this has also led to the Monetary Policy Committee cutting the base rate of interest, which should improve access to rescue finance.

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Enterprise

Workplace wellbeing expert wins chamber's top award

2025-05-10 15:07:10

An organisation that provides workplace wellbeing has been crowned business of the year at an annual award ceremony. The Listening Centre won the excellence in customer service category at the Greater Birmingham Chambers of Commerce Awards 2025 before being chosen ahead of the other winners to be crowned overall business of the year. A total of 11 different category winners were named on the night including recognition for Birmingham Hospice, Birmingham City University and Lichfield Garrick Theatre (scroll down for the full list of winners). The Listening Centre in Lichfield works to maintain and improve mental health and wellbeing among employees. Its operations include counselling, talking therapy, mediation, clinical supervision, bespoke training, critical incident and trauma support and psychological assessment. Last year, its expertise was highlighted in a BBC Radio 4 investigation into what defines a ‘gold standard employee assistance programme. The Listening Centre was nominated by the British Association of Counselling Psychotherapy Programme when it was approached by a BBC investigative journalist. The business was portrayed as an exemplary example of how an employee assistance programme customer service should operate, providing "prompt, personalised, person-centred support that anticipates and exceeds customer needs". It was founded in 2002 by Sharon McCormick who has worked in the counselling sector industry for 23 years and is a "life-long student" of the latest research in the field of wellbeing. The judging panel said the firm exemplified excellence in workplace wellbeing through proactive community involvement, tailored solutions and outstanding service delivery. "Strong testimonials and innovative solutions reinforce their candidacy for this award," it added. The chamber's business awards were held last night at the ICC in Birmingham city centre and hosted by broadcaster and business owner PJ Ellis, with entertainment by live band from Candy and The Sound. Customer Service and Greater Birmingham Business of the Year The Listening Centre Contribution to the Community B:Music Hospitality, Retail and Events Eventurous Inclusive People Development Birmingham Hospice International Business Solotech Manufacturing Translift Bendi Sales and Marketing Lichfield Garrick Theatre Sustainability Edgbaston Park Hotel and Conference Centre Technology and Innovation Empro Business Group Third Sector Roshni Birmingham Training and Education Birmingham City University President's Award, presented by chamber president Nasir Awan

Enterprise

Gatwick expansion 'rationale not impacted by Heathrow third runway' aviation regulator says

2025-05-10 15:07:10

The Civil Aviation Authority (CAA), the UK's aviation watchdog, has given a nod to Gatwick Airport's bid for a second runway by accepting several financial pledges from the airport for the coming four years. On Tuesday, the CAA voiced its belief that Gatwick's expansion plans will still deliver "benefits to consumers", notwithstanding the potential development of a third runway at Heathrow, as reported by City AM. Gatwick has made commitments including a price cap on charges to its airline customers, and revisions to existing service quality targets aimed at consumers. The fresh commitments include setting the maximum increase in the price cap for the initial two years to the Consumer Price Index (CPI) minus one percent. The CAA highlighted that its backing for Gatwick's newfound targets is "conditional" upon the airport maintaining progress in its pursuit of a £2.2bn capacity enhancement. A conclusive verdict on the project is anticipated from Transport Secretary Heidi Alexander by Thursday. Gatwick hopes to convert its standby runway into standard operational use, which it claims could accommodate up to 76 million passengers annually and broaden access to an array of long-haul destinations. Meanwhile, the Labour government has shown support for various airport projects, all aimed at significantly amplifying capacity. Just last month, Chancellor Rachel Reeves delivered a speech on growth, affirming her backing for not only Heathrow's much-debated and perpetually postponed third runway but also for the less extensive proposals put forth by Gatwick and Luton airports. The government's decision in August to approve London City Airport's plans to significantly raise its annual passenger limit from 6.5m to 9m, despite a local council ruling, has also been a point of contention. Critics, including London Mayor Sir Sadiq Khan, argue that Gatwick's expansion plans undermine the need for a third runway at Heathrow, the UK's largest airport. The Civil Aviation Authority (CAA) stated on Tuesday that it had taken into account the "implications of the recent government announcement in relation to the development of a third runway at Heathrow."

Enterprise

London Heathrow announces first dividend since pandemic following ownership change

2025-05-10 15:07:10

London Heathrow Airport is set to award its new French and Saudi proprietors their first dividend in five years, following a surge in passenger numbers that hit record levels in 2024. The West London transport hub has approved a £250m payout in the coming weeks, marking the first distribution since the pre-pandemic era, as reported by City AM. The airport experienced a significant shift in ownership during 2024 when Spanish conglomerate Ferrovial divested its controlling interest to Ardian and the Saudi Public Investment Fund (PIF). This development accompanied Heathrow's announcement of its annual financial results on Wednesday. Despite facilitating a record-breaking 83.9 million passengers, adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA), alongside revenue, fell by 8.7% and 3.5% respectively. Heathrow attributes this downturn to decreased airport charges, which were mandated by the Civil Aviation Authority (CAA) in a 2024 regulatory verdict. Nevertheless, pre-tax profit experienced substantial growth, soaring by 30.8% to reach £917m. Amidst these financial dynamics, Heathrow emerged as a cornerstone in the Labour government’s strategy for economic expansion this January, as Rachel Reeves lent her support to the long-stalled plans for constructing a third runway at the airport. With intentions to lodge a planning application for the multi-billion-pound endeavour in the upcoming summer, Heathrow aims to boost the UK's infrastructure considerably. Thomas Woldbye, CEO of Heathrow, asserted: "Securing future economic growth means investing in the infrastructure that powers it," and pledged, "Over the next decade, we will be making the largest private investment in the UK's transport network which will modernise Heathrow and unlock new capacity for growth.

Enterprise

FTSE 100 firms making progress towards gender equality as nearly half board seats go to women

2025-05-10 15:07:10

A new report has highlighted strides towards gender parity in the UK's top companies, revealing that women now hold 44.7% of board seats within FTSE 100 firms. Yet, the advancement is less pronounced in executive roles, with women occupying just 32.7% of executive committee positions in these leading companies, as per the latest findings from the FTSE Women Leaders Review, as reported by City AM. The broader FTSE 350 index also saw an increase in female board representation to 43%, a significant rise from the mere 9.5% recorded in 2011. In a landmark achievement, for the first time, women account for over half (50.1%) of non-executive directorships on FTSE 100 boards, with the FTSE 250 not far behind at 49.8%. However, the pace of change is notably slower in the UK's largest private firms, where women constitute only 30.5% of board members. Moreover, the number of all-male boards has risen from five to seven in the past year. Despite the progress in board diversity, the proportion of women in senior leadership roles across FTSE 350 companies remains lower, at 35.3%. "With six out of ten companies now having over 33 per cent women in leadership, we are within striking distance of the 40 per cent target, but this may not be achieved until beyond 2025 as some companies still have less than a third of their leadership roles held by women," the report stated, indicating that while progress is evident, there is still a considerable journey ahead to reach the envisaged targets. "Some of our targets have already been met. Balance on boards for the FTSE 350 has been delivered. Some remain challenging, such as achieving balance in executive leadership by 2025, and will require a step up in commitment," stated Penny James and Nimesh Patel, the co-chairs of the FTSE Women Leaders Review. Minister of State for Women and Equalities Anneliese Dodds and Secretary of State for Business and Trade Jonathan Reynolds emphasised the importance of diverse leadership teams: "It has become increasingly evident that diverse leadership teams are not just a matter of fairness- they are essential for fostering innovation, driving performance and ensuring sustainable growth."

Enterprise

JK Lifting to create jobs following six-figure investment at Tyneside base

2025-05-10 15:07:10

Lifting and inspection specialist JK Lifting is creating a number of jobs having invested £150,000 into its Killingworth base. The 42 year-old firm has acquired a new overhead crane capable of lifting 10 tonnes at its premises amid an increase in demand for its services from the manufacturing, renewables and offshore sectors. Now, the 19-strong business plans to recruit five people over the next year, including jobs in its engineering and operations divisions. JK Lifting recently moved into the former Metnor Construction headquarters at Camperdown Industrial Estate and spent £180,000 remodelling it to provide 1,439sqm of space and room for its lifting, testing, inspecting and manufacturing capabilities. The base is in addition to the firm’s 240sqm unit at the Port of Blyth’s South Harbour, which was launched in 2022. James Bright, managing director at JK Lifting, said: “Moving into Lift Point House has been a major turning point for our business, empowering us to expand operations in inspections and compliance for our clients across a number of sectors. The investment we have made in our facilities, particularly our new 10 tonne overhead crane, reflects our continued commitment to strengthening our capabilities, increasing our headcount and growing our roster of clients." Last year the business set out a growth strategy including an ambition to reach £10m turnover by 2030. In September Andrew Mason was appointed operations director at the firm, having spent more than 25 years at energy technology company Baker Hughes in Wallsend. He is working with Mr Bright, who led a buyout of the company in 2019 from founder John Kesson. Among JK Lifting’s 300 customers are Equinor, Helix and PFC Marine. In March last year the firm began working on the world’s largest wind farm, Dogger Bank - helping with movement of operation and maintenance equipment.

Enterprise

NIC proposes electricity bill hikes for UK households to boost network investment

2025-05-10 15:07:10

The National Infrastructure Commission (NIC) has urged for increased billing and a revamp of the UK's electricity network regulation to cater to the surging power demand. The current regulatory framework overseen by Ofgem is deemed "too complex" and deters network operators from making the necessary "proactive investments" to enhance capacity, according to the government's independent adviser in its latest report, as reported by City AM. With electricity demand projected to double by 2050 and investment trailing, there have been hold-ups in securing grid connections, impeding the expansion of renewable energy initiatives. "The UK is heading in the right direction on decarbonising power, but we can't be complacent," stated Sir John Armitt, chair of the National Infrastructure Commission. Armitt called for a "new approach" to regulation that motivates operators to make "prudent local investments" in anticipation of future needs and to lessen climate impact. The NIC's recommendations could see the average annual household electricity bill increase by £5 to £25. "Asking consumers to make a small contribution up front to enable this won't be welcome," conceded Armitt, but he maintained that the potential rewards were significant: "big prize on offer: harnessing the benefits of cheap renewable generation sooner rather than later and building a secure network optimised to support economic growth and decarbonisation, with resilience baked in." The Commission's year-long investigation concluded that Ofgem's price control process, a mechanism to regulate the profits of operators, needs simplification beyond just prioritising low costs for consumers in the short term. The report also urges the government to enact a series of changes to the planning system by 2025, to minimise uncertainty and expedite the approval of new infrastructure projects. These changes include modifying legal acts that facilitate the construction of overhead lines and substations, which transport electricity through the system. An Ofgem spokesperson responded: "Ofgem welcomes the NIC's report and we are encouraged that many of the recommendations chime with work already underway. "We are committed to promoting growth and investment and enabling network operators to invest for the future. Last week we proposed radical reform to speed up grid connections and we are committed to introducing flexibility in the system that rewards customers for using energy during hours when demand is low.

Enterprise

Global expansion to become 'the most important priority' for businesses by 2030

2025-05-10 15:07:10

According to new research from HSBC, international earnings of the world's fastest-growing companies are predicted to surpass domestic revenue by 2030. A survey of 1,143 global senior decision makers in companies with a revenue between £18m and $5bn found that overseas revenue currently represents less than half of their income, as reported by City AM. However, this is expected to change in the next five years as business leaders prepare for global expansion to become a higher priority. In an interview with City AM, Vivek Ramachandran, HSBC's head of global trade solutions, stated that companies not considering global expansion are "you're missing out on a huge opportunity". He added: "If you've got a competitive product or service, you're missing out on an opportunity by not defining your market more globally," Ramachandran emphasised that this shift was not due to a decline in the domestic market and there was no sentiment of businesses fleeing their homeland. "It's rather we're seeing additional opportunities grow," he told City AM. The study identified the top factors supporting international success as having the right network, capable local teams, favourable macroeconomic conditions and in-depth market knowledge. Regulatory and compliance issues made up nearly a third of the top challenges for businesses at 31 per cent. Brand recognition ranked second at 25 per cent, with increased competition third at 24 per cent. The latest research signals heightened global competition, which Ramachandran views as promising for consumers in the UK. "Competing in new markets increases your effectiveness in the whole market," he explained. "So I actually think this is good news for domestic consumers." Ramachandran remarked that expanding to new markets doesn't necessarily come at a cost to one's local customer base. He encouraged firms on the path to growth to cast their nets wider than similar or nearby markets and to "think of the world in a much more expansive way." On the subject of artificial intelligence (AI) in international business growth, the study uncovered that nearly two-thirds of businesses utilise AI to forward their plans for entering new overseas territories. Commenting on the power of AI, Ramachandran acknowledged the technology's efficiencies. However, he stressed that enterprises aiming for global dominance should still maintain a "local presence." HSBC has recently introduced its Global Expansion Assessment tool designed to support business leaders by providing an analysis of their company and identifying strengths and opportunities for expansion. Ramachandran labelled the tool as essential for a "checklist" pre-expansion, modifying it according to companies' unique needs and the particular market they wish to penetrate. He also advised ambitious companies keen on scaling their operations globally to be well prepared. Jason Talwar, a lecturer from Brown University who oversaw the research, commented: "Companies worldwide are pushing towards international expansion to diversify their revenues, manage risks, and access new talent." "The global landscape is increasingly unpredictable, and the red tape around new markets can be daunting."

Enterprise

Northumberland's Energy Central Campus signs up JDR Cables as key supporter

2025-05-10 15:07:10

A company set to open a major cables factory on the Northumberland coast has signed up to support a nearby skills centre. JDR Cables - which is building a £130m factory at Cambois that is set to create 171 jobs - has agreed to become a gold sponsor for the Energy Central Campus (ECC) at Blyth. The partnership will see JDR work with the campus to help train new workers. JDR already has a presence in the North East and announced plans for its factory at Cambois in 2021. The factory, which is currently under construction, will strengthen the North East’s position as a leading area for the clean energy sector. Martin Lawlor, chair of ECC, said: “I am delighted to welcome JDR Cables as a gold sponsor of ECC. JDR’s knowledge and expertise servicing the global offshore energy industry will play a key role in helping us achieve our mission of developing the clean energy workforce of the future.” James Young, chief strategy and compliance officer at JDR Cable Systems, added: “This partnership aligns perfectly with our commitment to driving innovation in the offshore wind industry and investing in the future talented individuals who are vital to the success of the offshore energy industry. “Our new manufacturing facility in Cambois will not only deliver cutting-edge subsea cable technologies but also create significant local employment opportunities. Through our collaboration with ECC, we hope to inspire and equip the next generation with the skills needed to thrive in the exciting renewable energy sector, helping to strengthen the UK’s position as a global leader in clean energy.” Energy Central Campus is a partnership between the Port of Blyth, Northumberland County Council, and the Offshore Renewable Energy Catapult, which aims to create the pipeline of talent required for the expanding clean energy sector in the North East. It is part of the wider £95m Energising Blyth regeneration project by delivered by the Government, the county council and the North East Combined Authority, which has provided £5.5m in funding for the scheme.

Enterprise

Serco reports 10% jump in operating profit despite £115m charge

2025-05-10 15:07:10

Serco, the global provider of public services, has reported a revenue of £4.8bn for 2024, in line with previous guidance, due to significant organic growth, particularly in its North American Defence business. The company's underlying operating profit grew by 10 per cent to £274m, with a substantial 30 per cent increase in the second half compared to 2023, as reported by City AM. Operating profit margins improved by 60 basis points to 5.7 per cent, reflecting efficiency gains across all regions. However, reported operating profit fell to £130m due to an exceptional £115m non-cash goodwill impairment charge in Asia Pacific. The group's order intake increased by seven per cent to £4.9bn, bringing the order book to £13.3bn, including a key contract for the UK Armed Forces Recruitment Service. Entering 2025, Serco boasts a record pipeline of potential new work worth £11.2bn, up 11 per cent from the previous year. Free cash flow was reported at £228m, significantly ahead of the £170m guidance. Net leverage was around 0.3 times earnings before interest, tax, depreciation and amortisation (EBITDA), or 1.2 times when including the planned acquisition of MT&S. This acquisition is expected to be completed by mid-2025 and would expand Serco's North American business revenue to $2bn (£1.58bn). The deal is also set to bolster Serco's international defence operations, with the group's total defence revenue potentially reaching £2bn upon completion. In 2024, Serco announced a £140m share buyback, taking total buybacks since 2021 to £340m. The board recommended a final dividend of 2.82p per share, marking a 24 per cent increase year on year. Serco Group's Chief Executive, Mark Irwin, commented: "Our 2024 results reflected another year of strong operational and financial delivery across the group. We accelerated trading momentum through the second half of the year, which allowed us to achieve full year revenue in line with guidance, underlying operating profit up 10 per cent, a 60 basis point increase in margins and deliver significantly more free cash flow than initially expected." He added: "We had excellent order intake of £4.9bn resulting in a robust £13bn order book, and we ended the year with a strong pipeline of qualified new business opportunities exceeding £11bn to underpin future growth." Irwin further stated: "Our strong balance sheet enabled delivery against all our capital allocation priorities by investing in organic business development, increasing our dividend by 22 per cent and completing the planned share buyback of £140m; and, as announced in January, we agreed the strategically important and financially compelling acquisition of MT&S from Northrop Grumman, which we expected to complete in mid-2025." He concluded: "MT&S would transform our capabilities in the critical areas of technology-enabled military training and satellite ground network software services. The combination of Serco and MT&S further enhanced the growth potential of our US platform and our international defence business." "In a global environment of continuous change and increasing complexity, Serco's purpose to impact a better future by enabling more efficiency and greater agility in the delivery of critical services for governments had never been more relevant."

Enterprise

Coca-Cola and Fifa reach agreement in time for Club World Cup

2025-05-10 15:07:10

Coca-Cola, alongside German sportswear titan Adidas, had initiated legal proceedings against football's governing body over sponsorship rights for the expanded Club World Cup. The bone of contention centred on renegotiating new contracts pursuant to the increase in participating teams to 32, as reported by City AM. However, the discord seems to have been mitigated, with Coca-Cola now confirmed as a sponsor for the event. The beverage giant's partnership with Fifa dates back to 1950 and is cemented through a current seven-year arrangement worth $400 million, extending up to 2030. Joining Coca-Cola in supporting the Club World Cup are Anheuser-Busch InBev, electronics heavyweight Hisense, and Bank of America, with Dazn set to broadcast the tournament. Commenting on the agreement, Fifa chief business officer Romy Gai remarked: "The Coca-Cola Company has been involved in stadium advertising at every Fifa World Cup since 1950 and has provided many memorable experiences in global football over the decades." He added, "We are delighted to have such an important and long-standing partner on board as we usher in a new era in global club football with the Fifa Club World Cup." Brad Ross, vice president of global sports and entertainment marketing and partnerships at The Coca-Cola Company, remarked on the importance of associations like the one with Fifa: "Sports partnerships like the one we have with Fifa are an important growth driver for our company, brands, and global system, and the Fifa Club World Cup will be a significant moment." The tournament is set to commence in Miami on June 14, seeing Premier League giants Chelsea and Manchester City join the fray. Despite the excitement surrounding the inaugural edition of this expanded contest, concerns over player welfare persist.