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Top story
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Landsbanki in receivership
Businesses backed by Icelandic bank Landsbanki are nervously awaiting news about the effect on their credit lines as the bank is now under control of a receivership committee. The seven-strong, Manchester-based asset finance team are trying to reassure customers and pass on the news the bank is in receivership. Media enquiries have been referred to London where the following statement has been issued: "Landsbanki would like to stress that the bank has not been put into liquidation but is in receivership, which gives it a temporary protection from payment of debts and obligations as they fall due. Work has already begun on restructuring." The bank added operations will remain "as close to business as usual with a view to protecting Landsbanki's assets in Iceland and abroad". Recent deals in the North West include a credit line to Crown Paints, a £56m asset finance package for B3 Cable Solutions and funding for manufacturer Klarius group. Tony Wilson, chairman of Klarius, backed by Landsbanki, said he wasn't concerned by developments, as Klarius is "not over exposed" and the car parts manufacturer is "in good shape". But he added: "Perversely, all this could inject some reality into the banking sector."
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Deals
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Bodycare investors stay on board for MBO
Preston-based Bodycare Toiletries has been sold by administrators at Deloitte to members of its management team. Although management had previously attempted a buyout from the Dutch parent company, insurmountable obstacles dragged the process out. The business began to suffer and was placed into administration last Thursday. Speaking to Insider this morning, director John Carrington explained that the team’s private equity investors and bank had stayed on board and allowed the buyout of the own-label toiletry and beauty products manufacturer to go ahead. “We had a fully funded offer ready for the buyout and the investors remained supportive,” he said. “We believe there is a fantastic market offer. People are feeling the pinch on their essentials and moving towards own-label products.” The company will be renamed B3 International.
Metal basher from Bacup backed
A blacksmith and wrought iron fabricator has been supported with a loan package from Lancashire County Council's Rosebud Finance scheme. Pennine Forge, based on Vale Street, Beech Industrial Estate and run by founder Rick de Boutemard, makes wrought iron gates and bespoke railing designs. County councillor Niki Penney, chairman of Lancashire County Council's economic development department, said: "The business has already designed a template for the future with a broad base of corporate clients wishing to utilise Rick's skills in addition to the many private householders who have commissioned both home and garden furniture."
Fuel injection business in administration
Chorley-based MI Diesel Products is in administration, just days after its acquisition by Wembley-based Euro Car Parts, which bought parent company LSUK on 30 September. Despite efforts to keep the business running, Sheffield-based LSUK was placed into administration yesterday. The initial acquisition of LSUK had to be made very quickly to protect the 600-strong staff and due salaries and rent were paid. But it became clear that it was going to be impossible to continue with investment without the required support. The group is now in the hands of insolvency advisers at Tenon Recovery.
Pet crematorium sold
Rossendale Pet Crematorium has been acquired by quoted veterinary services provide CVS, in a deal that includes the freehold property from which the crematorium operates. CVS, which financed the deal wholly from company cash flow, assumes all management responsibilities for the crematorium. Based in Lancashire, within a 13-acre site, the crematorium and Memorial Gardens were established in 1967. In the year ended 31 December 2007, the crematorium achieved operating profit of £136,000 on turnover of £490,000.
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Business
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Regional shares slide on volatile morning
As banking groups this morning saw their shares fall yet further on the stock markets and industry bodies and analysts called for immediate action from government to stem the loss of confidence in the markets, companies in the region sawtheir share prices suffer. Despite releasing positive pieces of news today, both Macclesfield thermal processing group Bodycote and Manchester home shopping giant N Brown suffered a slight fall in the morning's trading. Barrow-based marine services group James Fisher saw its share price fall 1.48 per cent, while shares in Holidaybreak, the Northwich-based travel group that is battling its way through tough markets, fell 7.77 per cent. Meanwhile, United Utilities, the region's largest quoted company, was on the up, registering a 2.59 per cent rise in its share price since trading began this morning.
JJB shares in freefall
Shares in Wigan-headquartered retailer JJB Sports fell a further 4.5 pence this morning, to 22.5 pence, as investors joined credit insurers in backing away from the troubled group. Insurer Coface has confirmed it would not cover the group's suppliers for the foreseeable future, while rival Atradius is looking to limit its exposure to the high street. Although credit insurance is only considered a major issue for small suppliers, some investors have seemingly had enough. Shares in JJB have fallen 80 per cent in the last year.
Online growth fuels N Brown
Online sales continue to drive the growth of N Brown, the Manchester-based home shopping business, which released its interim results this morning. Profit before tax is up 19.6 per cent to £40.8m on sales of £322.8m, an increase of 12.6 per cent. But online sales grew by 45 per cent to £106m. Chief executive Alan White said that although the state of retail is causing some concern sales have increased by 11.8 per cent in the five weeks since the period covered by the results.
Hyde business to invest
Coleherne, a Hyde-based specialist engineering business, has announced plans to invest over £500,000 in new machinery. Coleherne provides services from laser cutting to the manufacture of white metal-lined bearings, a major component in the power generation sector. Led by managing director Peter Fahey, the family business is targeting annual turnover of £5m by 2010 and has expanded its facility to 25,500 sq ft by taking over the lease of a unit it had previously sub-let.
Victrex trading healthy
Lancastrian polymers group Victrex expects profits to be in line with market expectations after releasing its trading update for the year to 30 September 2008. Sales volume for the year grew by the expected 5 per cent. In the US full-year sales climbed by 7 per cent, while European sales rose 5 per cent. Biomaterial business Invibio generated £25m in sales for the year, an increase of 30 per cent.
NDA completes Sellafield deal
The Nuclear Decommissioning Authority has entered into a transition agreement with Nuclear Management Partners (NMP), for the sale of the Sellafield nuclear power site in Cumbria. NMP, a joint venture between Washington Group, Areva and AMEC, will become the new parent body responsible for site manager Sellafield Ltd and will formally take over from BNFL on 24 November.
Printing franchisor reassures
Manchester-headquartered Printing.com released a brief first-half trading update yesterday that stated that results for the first six months are likely to be in line with market expectations. The level of bolt-on franchise additions is encouraging and analysts at Brewin Dolphin have maintained a buy recommendation on the group. Printing.com's interim results are due out on 10 November.
Chambers call for tax and rates cuts
The British Chambers of Commerce Quarterly Economic Survey, which received over 5,000 responses from businesses, has been released - and it's bad news. Domestic sales and orders are down, while manufacturing exports have plummeted. Investment and recruitment have fallen, while cashflow balances remain negative. Director general David Frost said: "The government needs to say that business taxes will be cut. The Bank of England need to cut interest rates immediately and politicians need to get behind our businesses."
Bodycote boss named
Bodycote, the Macclesfield-based thermal processing company, has appointed Stephen Harris as its new chief executive. Harris will serve as chief executive designate from 1 November, taking over fully from John Hubbard in early 2009. Harris also serves as a non-executive director of property group Brixton, was previously a main board director at instrumentation group Spectris and spent 21 years in the US with APV.
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Property
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Tague on Tour - TIF matters
The thorny topic of congestion charging is uniting professionals from across a range of disciplines, but the property market has a particular interest in keeping cities moving while ensuring the area remains attractive to prospective tenants. In the first of a series of monthly online columns for the regional property market, Tague on Tour, Insider assistant editor Neil Tague examines the latest news and views on both sides, as the deadline for public consultation on Greater Manchester’s Transport Innovation Fund (TIF) looms. Our new online section also features all the day’s property news.
Hair today
Manchester-based fit-out contractor Overbury has completed its latest project, a 15,600 sq ft headquarters for ghd, the Leeds-based hair products business. The space sits on the ground floor of Leeds' tallest building, Bridgwater Place and includes office space, a reception area with catwalk and a training academy.
Four North West buildings receive heritage honour
Four North West projects have made the top 20 conservation-led development schemes in the country, in a list released today by English Heritage. Manchester's Gorton Monastery, The Bluecoat in Liverpool, Morecambe's Midland Hotel and Blencowe Hall in Penrith all made the list. Steve Bee, director of planning and development at English Heritage, said: "The heritage and development sectors have recognised that they can be a real asset to each other."
Fund buys in Haydock and Warrington
Invista Canmoor Active Industrial Fund has bought five industrial sites, including the 333,600 sq ft Haydock Cross and Warrington's Eagle Park, for £35.5m, reflecting a yield of 8.4 per cent. The transactions have been financed by The Royal Bank of Scotland, with which the joint venture fund has also refinanced three further sites.
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