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Top story
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Lloyds TSB and HBOS: what now for North West deals?
As the world woke up to the news of Lloyds TSB merging with HBOS, the North West corporate finance community began to digest the implications for deals in a market in which Lloyds’ private equity arm, LDC, and the Bank of Scotland’s integrated finance (BOSIF) teams could find themselves working side by side. One regional banking heavyweight told Insider: “What Lloyds’ view of the IF offer will be, no one knows. It sucks up a lot of capital and BOSIF have quite a lot of assets on their books that have not been sold down.” “There is certainly a question mark over whether the new owners will want to keep two such large private equity businesses in the long term,” said Grant Thornton corporate finance partner Ali Sharifi. But neither team has been very active in recent months because of the state of the banking market and Andrew Curwen, partner at law firm Gorvins in Stockport, said: “The interesting challenge will be how it will impact on the debt side. I would be surprised if a Lloyds corporate banker will be rushing to complete the transactions he’s got on.” While the market is watching and waiting, deals will get through. Corporate finance director John Gillibrand from Tenon in Bolton said: “It’s going to be three months before they’ve even done the deal and both banks have still got to run their businesses in the meantime.”
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Deals
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BTG buys Protherics for £218m
In a deal that marks further consolidation of the biotech sector, Runcorn-based Protherics has accepted an offer from life sciences company BTG for around £218m, a deal that values Protherics at around 60p per share. The company, which is now expected to discontinue trading as a stand-alone entity in mid-December, first announced last month that it had received several bid approaches with speculation suggesting AstraZeneca was among interested parties. In a statement this morning, Protherics said the deal will "create a business with significant revenue streams, a broad and balanced pipeline and a strong financial platform from which to develop the enlarged group".
Investment for Manchester spin-out
The University of Manchester Intellectual Property Premier Fund (UPF) has announced a £800,000 investment in water purification technology producer Arvia. This is the second investment for the fund, which put £1m into diagnostics company Myconostica in May. UPF was established in April 2008 to invest in university spin-out companies. Arvia, a spin-out of the University of Manchester School of Chemical Engineering, will move to Merseyside. The investment was made in partnership with the Liverpool Seed Fund, through Alliance Fund Managers.
Healthcare Enterprise raises £400,000
Warrington-based Healthcare Enterprise Group has raised £400,000 before expenses after listing 100 million new shares at 0.3p per share and has issued a convertible loan of £100,000 due in six months. The AIM-listed company has also revealed that it is in talks with "a small group of investors" with a view to raising a further £2.25m via a further placing. The statement also confirmed that the business has sold a 9.8 per cent stake in First Aid Holdings for £437,500 to provide working capital and to settle liabilities assumed under the sale agreement of former wholly owned subsidiary Crest Medical. Shares in Healthcare Enterprise resumed trading today after being suspended on 18 August pending the appointment of a new nominated adviser.
LSB in sale talks as losses mount
London Scottish Bank (LSB), the troubled Manchester finance house, has confirmed that it is still engaged in discussions with a number of parties interested in acquiring the group. In a statement to the Stock Exchange yesterday, chairman Peter Cordrey said: "Management has made good progress in refocusing the group around its successful debt purchase and debt collection division, Robinson Way, while continuing to reduce the capital employed in its lending divisions." The group as a whole is loss making, mainly due to losses in its unsecured consumer credit division. In August LSB sold London Scottish Invoice Finance to Hitachi Capital (UK). Proceeds from the sale have been used to reduce net borrowings.
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Business
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Losses widen but Intercytex makes progress
Intercytex, a developer of regenerative medicine products to restore skin and hair and that has its clinical production facility and research and development laboratories in Manchester, has seen losses widen 8 per cent to £6.59m in the six months to 30 June. Its cash reserves also declined to £6.36m, down from £17.55m for the same period last year, as it spent heavily on product development. But chief executive Nick Higgins said the business was making "excellent progress" and he was confident of future success thanks to its involvement in an $85m project backed by the US Department of Defence. On 8 September Intercytex raised £2.75m through a share placing that will allow it to start the third phase of trials on its lead treatment for chronic wounds.
Kidsunlimited launches security measures
Wilmslow-based childcare provider Kidsunlimited has announced the introduction of new fingerprint entry systems into its nurseries to boost security. The systems, which use secure internet technology, will allow nominated parents and guardians to enter premises without the need for passes or fobs. No personally identifiable data will be kept on the system, nor will copies of fingerprints be stored. Kidsunlimited, founded in 1983, has 51 nurseries across the UK.
Manchester shows recycling growth
The Greater Manchester Waste Disposal Authority (GMWDA) today released its annual report, which shows a growth in recycling rates from 7 per cent in 2002/03 to almost 30 per cent for 2007/08. GMWDA, the largest of six English waste disposal authorities, signed up to the Nottingham Declaration on Climate Change and has instigated a member-led climate change working group. It is working towards signing a 25-year waste management PFI contract with preferred bidder Viridor/Laing.
Turner Parkinson launched immigration division
In response to changes earlier this year in UK immigration and nationality laws, Manchester-based law firm Turner Parkinson has launched an immigration services division to help companies with compliance and issues for migrant workers, such as spousal and dependant visas and citizenship applications. Anika Prodhan of Turner Parkinson said: "The business community faces a higher administrative burden in terms of new sponsorship and licensing requirements. With this in mind, the launch of our new immigration division has come at an important time."
There's still growth in financial services
Taylor Patterson Insurance Services (TPIS), the corporate insurance division of the Preston-based financial advisory group, has seen its turnover increase by 18 per cent over the last 12 months, thanks to the signing of a series of key clients. New clients include AIM-quoted information and communications delivery firm 2ergo in Rawtenstall and Cumbrian transport maintenance and truck bodies business Houghton Parkhouse. TPIS director Robert Cholmondeley said: "This is proof that business goes on, despite an international credit crunch."
Accuma halts losses but is reviewing business
AIM-listed Accuma Group has returned to operating profitability for the six months to 30 June, but has seen turnover fall by 7.6 per cent to £6.1m following a "very poor performance" by its loan broking division. The Manchester-based debt advice group will now be reviewing its strategic options, given the difficult market it is operating in. EBITDA stood at £185,000, compared to a £2.7m loss in the five months to 31 December 2007, thanks largely to cutbacks made in its IVA division earlier this year. This insolvency division accounted for £3m of turnover, while £1.7m was generated by debt management and £1.3m by loan and mortgage broking.
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Property
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Time to pool resources
Completion still looks some way off for Manchester’s Victoria Baths, winner of the BBC’s first Restoration series in 2003. An event was held yesterday to celebrate the completion of phase one. Some £3.8m has been spent on bringing the front of the building back into a usable state and the Victoria Baths Trust hopes to reopen this part as a swimming pool and sports hall. Artisan Ship Canal Developments (ASCD), a development vehicle backed by Carol Ainscow and Peel Holdings, is preferred developer for phase two, which involves building apartments to the site’s rear to fund the heritage works within. But with distractions elsewhere and MCR pressing on with a 194-apartment scheme next door, ASCD is yet to commit to plans. Project manager at the Baths Gill Wright told Insider: “It’s obviously a hard time in housing and it’s unclear at the moment what will happen and when.”
Boots to anchor Altrincham's Stamford Quarter
Health and beauty retailer Boots has signed up as anchor tenant in the second phase of Altrincham's Stamford Quarter, due to open later this year. The retailer was previously located at Stamford Square on George Street and has moved as part of the Stamford Quarter's £40m redevelopment by property company Park Lane Estates. The second phase will see a complete remodel of the centre car park and the addition of eight to ten retail units totalling an area of approximately 75,000 sq ft. Boots has agreed to take 21,000 sq ft of space over two floors.
Charging Bison
Superior Powder Coatings has taken a 27,740 sq ft industrial warehouse at 86 Bison Place at the Moss Side Employment Area in Leyland. The company, which was recently established by entrepreneur Ian Gilmour, has agreed a 12-year lease on the unit from landlord Nitecrest Properties. The move has created 16 new jobs.
Planning submitted for Tithebarn scheme
The Preston Tithebarn Partnership (PTP), a joint venture between developers Grosvenor and Lend Lease, has submitted an outline planning application to Preston City Council for the £700m regeneration of the city's Tithebarn area. The scheme will deliver 1.5 million sq ft retail and leisure space in the city centre, anchored by a 230,000 sq ft John Lewis and a 150,000 sq ft M&S store. There will also be 100 new retail outlets, restaurants, a cinema and living space. PTP director Richard Coppell said: "Preston Tithebarn will bring the city's retail offer right up to date, placing Preston back on the map as a first-class shopping destination."
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