With banks increasingly taking equity positions in businesses rather than drive them under with more and more expensive levels of debt, Insider editor Michael Taylor asks whether banks are the best placed organisations to manage an equity position. “Banks should get out of the way and let the experts in,” he says. “By not doing they are at a risk of presiding over 'zombie businesses' with no direction and a danger of expiring altogether. Private equity investors with a direct stake in a business and an incentive to grow it would bring the business back to life.” He speaks to Warwick Ley from Endless about the Trutex deal, announced yesterday, and looks at the refinancing of Styles & Wood. To read more of Michael’s weekly In Focus blog, click here.

Drug-discovery and development business Cyprotex, which is based in Macclesfield, has received a “highly preliminary and unsolicited approach” regarding a potential offer for the business. In a statement to the Stock Exchange, the AIM-listed company said there was “no certainty that an offer will be forthcoming” and added that the announcement had been made without the consent of the party who made the approach. Its shares jumped almost 18 per cent to 4.12p following the announcement. Cyprotex posted a pre-tax profit of £157,000 for the six months to 30 June 2009, against a 9 per cent increase in revenue to £2.45m.

Manchester stockbroker WH Ireland has narrowed losses after a “particularly difficult” year in which it saw turnover fall 8.2 per cent and made 43 redundancies. The business posted a pre-tax loss of £2.1m on continuing operations in the year to 30 November, compared with a loss of £2.5m a year earlier. Its turnover fell from £26.8m to £24.6m. The company said trading conditions remain “varied and difficult but there are significant signs of improvement”. It added that restructuring costs amounted to £700,000, but it anticipated the cuts will generate annual savings of £2.1m. The stockbroker’s assets under management edged up 4.5 per cent to £1.18bn.

Wigan-based textiles and flooring manufacturer Milliken Industrials has said it is well-placed to weather the market uncertainty despite reporting falling sales and profits for its latest financial year. The business, whose parent is US-owned Milliken & Company, based in South Carolina, announced a pre-tax profit of £4.5m for the year to 29 November 2009, compared with a profit of £9m a year earlier. Turnover fell 8.6 per cent to £86.6m for the same reporting period. Writing in the company’s accounts, director Joseph Salley said the business had contracts in place “with a large number of customers and suppliers across different geographic areas and industries” which should protect it against the economic instability. Around 75 per cent of Milliken Industrials’ sales are achieved overseas.

Ai Claims Solutions, the Blackpool-based motor accident claims company, has continued its impressive performance after increasing revenue by 59 per cent to £38.2m for the six months to 31 December. The company, which reported a 37 per cent rise in full-year revenues to 30 June 2009, also saw first-half pre-tax profit grow to £855,000 from £668,000 a year earlier. Chairman Steve Broughton said: “We expect additional growth opportunities to continue to become available and are confident that the group has made a breakthrough to become an operation of significantly greater scale.” He added that the company expects to improve on the full-year pre-tax profit of £2m it made last year.

Renovo Group, the Manchester-based developer of anti-scarring and scar prevention treatments, has amended the terms of an $825m deal it signed with Shire Pharmaceuticals over the rights to its scar-regeneration drug Juvista. The company signed a deal in 2007 to develop and commercialise Juvista in every country in the world, except those in the European Union. Under the revised terms announced this morning, Shire will retain its right to sell Juvista in the US, Canada and Mexico, but will no longer maintain the right for other parts of the world outside of the EU. Shire has also agreed a further $5m milestone payment to Renovo when it starts clinical trials.

The Greater Manchester Chamber of Commerce has warned that the proposed increase to National Insurance contributions, planned for April 2011, could cost businesses in the region around £120m a year. Brian Sloan, the chamber’s head of business and economic policy, said: “The proposed rise is already causing businesses to rethink their recruitment plans, so not only is this a tax on jobs it is undermining the recovery. The £120m might alternatively be used by businesses for investment to help Britain compete as the global economy recovers.” The proposals have resulted in a number of business groups, including the Federation of Small Businesses and Forum of Private Business, forming a coalition to fight the plans.

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