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Top story
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Funding brings forward MMU expansion
Manchester Metropolitan University (MMU) has secured a £70m funding package from Barclays to support its campus expansion plans in the current downturn. The senior debt facility is part of a £300m investment planned between now and 2015, which will include a new business school, student accommodation and sports facilities. Vice-chancellor John Brooks told Insider this morning: “We have our approved capital expenditure programme but with the recession and decline in land values, we’ve had to phase that out over a longer period of time. Barclays has given us a rotating borrowing facility, which will enable us to bring forward these capital programmes more rapidly, as the government wanted us to do to stimulate the construction sector.” Brooks confirmed the design for the business school was now complete, with contractor Sir Robert McAlpine expected to be on site later this year.
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Deals
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Medical acquisition for Tenon
North West accountancy practice Tenon has acquired Rochdale and Leeds-based HWSEG, a specialist medical accountancy and tax advisory firm. The deal will improve the market positioning of Tenon Medical Services by increasing its GP medical practice client base to 420. HWSEG was founded in 1984 as Sandison Easson & Gordon by Nicholl Gordon, who retired at the end of last year. In December 2006 the practice was sold to Haines Watts to create a new subsidiary, HWSEG. Bob Senior, head of medical services at Tenon, said: “We will look to implement further plans to grow this very important part of our business, which is largely sheltered from current economic pressures.”
Mellor gets another go
Manchester estate agency Edward Mellor has been snapped up after parent company Explora Solutions went into administration. A newco formed by the founder’s son Colin Mellor has bought back the trading names and assets of the business, opening eight of the original 15 offices and saving 60 jobs. He said: “The trading conditions we have experienced since the autumn of 2007 meant that the company was not able to reduce its cost base to reflect the dramatic decline in the housing market activity levels.” Mellor, formerly a director of Explora Solutions, will remain at the helm of the new business.
Survey maps new reality
The debt-equity ratio on leveraged buyouts is expected to shift dramatically as the region’s private equity community embraces the changing landscape of the banking market. According to Deloitte’s annual Northern Private Equity Survey, which canvasses professional and funding communities on both sides of the Pennines, 63 per cent of respondents expect the equity elements of deals to exceed 55 per cent in 2009, with one quarter predicting even more cautious gearing levels of 65 per cent equity or more. The survey also found that, while deal volumes are expected to fall compared to 2008, the most active sectors will be manufacturing, healthcare and technology, media and communications (TMT). “We expect to see the strong get stronger and the weak weaker," said Paul Lupton, head of corporate finance in the North West at Deloitte.
Order your North West Dealmakers Guide 2009
Insider’s new North West Dealmakers Guide 2009 will be available from 27 February and is the authoritative benchmark to the region’s leading advisers, quoted companies and deals activity. If your company is involved in a sale, acquisition or merger; looking to raise finance, changing professional advisers or simply searching for competitor intelligence, this is the essential guide for you. As a valued reader of Insider Daily, you can receive a 20 per cent discount if you pre-order online and this discount also applies if you order our complete set of regional guides (saving £79 on the cover price). Simply insert promotional code DMG-01 to be eligible for your discount. Offer available until 27 February 2009.
Houghton crosses over
In what could be the first move of its kind following the merger of Lloyds TSB and HBOS, Catherine Houghton has jumped ship from Bank of Scotland Integrated Finance to join LDC’s team in Manchester. Her appointment creates a seven-strong team in the city as LDC attempts to drive new activity across the region. Chief executive Darryl Eales said: “We can’t wait around for deals to happen. Our regional team needs the right level of resource to stimulate and drive new activity across the patch and transact those opportunities that offer potential for significant value creation.”
Placing to raise £5.7m for MSS
AIM-listed Managed Support Services, the air conditioning business formerly known as Worthington Nicholls, is to raise £5.7m net of expenses after announcing plans to place up to 75 million shares with institutional investors at 8p each. The group said that, following restructuring, it is now trading profitably and is well placed to examine acquisition opportunities that it believes will emerge as a result of the downturn. It plans to target smaller businesses that compliment its offer in the first instance, but said larger acquisitions will be considered in other fields if value can be created for shareholders. The Wilmslow-based company’s placing, which needs shareholder approval at a meeting on 27 February, is being led by Cenkos Securities.
Volex sells wiring harness arm
Electrical cable maker Volex Group is to sell its loss-making wiring harness business for the nominal sum of £1 to focus on its other two profitable divisions. The Warrington-based manufacturer has agreed a deal with Ionix Holdings, a management buyout vehicle led by vice-president of global operations Bill Taylor. Under the terms of the deal, Volex will also pay Ionix £608,000 for developing the business, and an additional payment of up to £250,000 in the seven-month period following completion. The wiring harness business, which makes harnesses used in commercial vehicles, aerospace and industrial engines, reported an operating loss of £2m for the 27 weeks to 5 October 2008. Volex also said it has ended previous plans to dispose of its power products division.
Inclusive snaps up Don Johnston
Oldham-based Inclusive Technology, a supplier of hardware and software that helps people with special educational needs to use a computer, has acquired Warrington company Don Johnston Special Needs for an undisclosed sum. The business has also entered into an agreement with Don Johnston’s American parent company to continue to publish and promote its existing range of products in the UK.
Co-op funds nursery expansion
The Co-operative Bank in Manchester has funded the expansion of childcare facilities in Lymm by backing The Rosebank Naturegarten at Ravenbank Primary School. Margaret and Rod King have nearly doubled the capacity of their childcare facilities at the Rosebank Centre nursery and after-school club by leasing 2,000 sq m of land from Warrington Borough Council to construct a 200 sq m, single-storey log cabin building, fully self-sufficient from the school and featuring a timber-decked and covered area for outdoor activities.
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Business
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Steady trading for Victrex
Victrex, the Lancashire manufacturer of specialist polymers, has revealed that trading during January remained steady, despite a slow start to the month as year-end shutdowns were extended at a number of its customers. The company’s biomaterials business, Invibio, continued to make good progress, with revenues for the four months to the end of January running at higher levels than the average run rate achieved in 2008. The group also announced a strategic reorganisation whereby its business will be split into two divisions, Victrex PEEK and Invibio, to allow the two divisions to be more individually focused to meet their objectives and maximise shareholder returns.
Renovo to press on with drug development
Manchester’s Renovo Group has announced to shareholders that its strong funding position will allow it to continue the development of its pioneering scar tissue drugs. Although the business spent £8.3m on drug development between 30 September and 31 December 2008, reducing cash deposits from £82.6m to £74.3m, it believes it is appropriately funded for ongoing operations. The company’s main focus is to progress trials for Juvista, a drug that reduces scarring after varicose vein surgery, and it is pressing ahead with phase two efficacy trials for Juvidex, which reduces scarring following injury to tendons.
Losses widen at Broca
Rawtenstall-based mobile security business Broca, which is set to be acquired by former parent company 2ergo in a £4.9m deal, has revealed pre-tax losses of £1.6m for the year to 31 August 2008 after new contracts failed to materialise. Turnover for the year was £31,746. This compares to a pre-tax loss of £704,201 in the seven months to the end of December 2007, against revenues of £1,200. The company’s chairman Peter Harvey said that, despite two significant pilots of the group’s data capture technology, attempts to win new business have so far been unsuccessful. However, he added that there is “increasing signs of market readiness” and greater awareness of data security issues from the likes of the police, governments and regulatory bodies.
3 Rivers goes to Australia
Stockport-based 3 Rivers Brewery is to start exporting its Manchester IPA and Yummy Figgy Pudding beers to Australia. Phoenix Beers, an Australian importer of premium bottled ales, has agreed a deal with Branded Drinks, a bottling, wholesaleing and export operation that represents small breweries including 3 Rivers. Mike Hitchen, managing director of the brewery, which started life as a sideline, said: “It’s terrific that we now have the opportunity to convince a brand new audience thousands of miles away.”
Let there be light
Chorley-based lighting design company Lumenata has seen business grow by nearly a third in the last quarter as it continues to win contracts to design and supply bespoke lighting for offices, hotels and luxury homes throughout the UK. Business was up by 30 per cent for the period, buoyed by contracts to provide lighting for a block of luxury apartments in London and a £1m home in Preston. Director Paul Hindle said that low-energy lighting is also an increasing market for the company, as clients look for more effective ways to cut bills.
JJB looks to cut loose lifestyle stores
Wigan retailer JJB Sports has told the stock market that it intends to appoint administrators from KPMG for its lifestyle division, which comprises the Original Shoe Company and Qube chains, which trade from 64 and 13 stores respectively. The division continues to trade at a “substantial” loss and has failed to attract a buyer since being put up for sale last autumn. JJB also confirmed that discussions are ongoing over the sale of its fitness clubs division following a number of indications of interest.
Expansion for Montpelier
Montpelier Chartered Accountants has named Kath Martin as operations director as the firm expands its team in Manchester. She will oversee the growth of the Manchester office and focus on maintaining a high standard of service for clients who are predominantly family-owned and owner-managed businesses.
Trust funds nuclear scholarships
A team of Lancaster University engineers are exploring the use of robots in Cumbria’s nuclear decommissioning process thanks to funding from a charitable trust. The Sir John Fisher Foundation, which supports causes throughout the UK, but with special regard to Barrow-in-Furness, has provided £97,000 to support four postgraduate engineering students on the joint research project.
Search for inspiring women
Nominations are open for the 2009 Inspiring Women Awards, now in their 18th year. The awards aim to recognise the flair, commitment, hard work and courage of the women in the North West and look for inspirational women in business, community, the public sector and, in a new category for 2009, social entrepreneur. Nominations can be made at www.inspiringawards.co.uk and the closing date is 3 April. The winners will be announced at a lunch at the Midland Hotel, Manchester, on 15 May.
Accountants on the ball
Accountancy firm Beever and Struthers has been appointed to undertake accounts and audit for the International Federation of Netball Association (IFNA). The IFNA is the international governing body for netball and is affiliated with over 60 national netball associations worldwide. It is one of the few international governing bodies still based in the UK and has its office in Manchester.
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Property
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Property Tectonics lands London contract
Manchester consultancy Property Tectonics (PT) has been appointed as lead adviser on the £1.3m modernisation of London’s Moorfields Eye Hospital. PT will oversee the overhaul of eight of the famous hospital’s outpatient clinics, including the organisation of temporary relocations and creating a timetable to ensure construction does not cause major disruption to staff and patients.
LSH deals show shed market’s health
Acting on behalf of Beva Investments, Lambert Smith Hampton has let a 57,142 sq ft unit at Greenvale Business Park near Rochdale to automotive components company Freudenberg on a ten-year lease. LSH has also let a 10,401 sq ft unit at Stockport Trading Estate for Trillium to medical devices supplier Steriplus. LSH head of industrial agency Andrew Aherne said: “These deals reflect the continued activity in the North West industrial sector.”
Miller on the river
Miller Construction has been awarded the contract to deliver a £100m regeneration and development project, Riverside Place, for developer Kendal Riverside. The 90-week contract will see the delivery of the complete redevelopment of the former K Village Outlet Centre, Kendal, to create a 300,000 sq ft mixed-use development comprising 75,647 sq ft of retail, restaurants, 90 apartments, 20,000 sq ft of commercial office space, a 5,000 sq ft heritage centre and 500 car parking spaces. Kendal Riverside is scheduled for completion in spring 2010.
Knight Frank scores a Century
Agency Knight Frank has been instructed to market Century House in Manchester’s St Peter’s Square on behalf of Mosley Street Ventures. The available accommodation at the 25,000 sq ft Century House comprises the lower ground, ground and first floor offices, with suites from 3,660 sq ft up to a total of 8,313 sq ft. Built in the 1930s, Century House is directly next to Elisabeth House, which is scheduled for redevelopment by Argent on behalf of Greater Manchester Property Venture Fund.
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