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The much-touted surge in public-to-private transactions is clear for take-off. That's according to Chris Belsham, director in corporate finance at KPMG in Manchester, who was speaking this morning at the company's private equity forum in the city. He said: "At the moment the stock market is an unpleasant place for mid-market companies. Their prices are being driven down by sentiment - not what they are actually achieving - and directors are under pressure to resolve the situation." Belsham said that nearly all the ingredients are in place to drive take-privates, including investor dissatisfaction, difficulty in accessing capital, the need to restructure and limited analyst attention. "I have had more conversations with directors about public-to-privates in the past four months than I have in the past four years. But the big question remains - will the banking market come back to support them?" he said. 
Harman sounds good for Cattles Manchester-based Cattles Invoice Finance has invested £75,000 in niche Cumbrian business Harman Acoustics to cover start-up costs and marketing. The company was set up by entrepreneur Peter Harrop earlier this year to specialise in the manufacturing of soundproofing and acoustic under-floor materials. Since it was established, Harman has already secured a deal with a regional distributor and is now looking to expand across the North West.
The deals are still flowing, for the right business story The mid-market is still seeing a healthy deals flow, despite fears about the credit crunch. "The credit crunch is only having a marginal impact and there is ongoing demand for good investment opportunities from private equity houses and overseas buyers," said Mike Reeves, partner at Clearwater Corporate Finance in Manchester. Clearwater says deals are continuing, although banks are more cautious and many deals were done early to beat the capital gains tax rise. Paul Shephard, regional director of specialist and acquisition finance at Yorkshire Bank in Manchester, agrees this core of the North West market remains healthy. "Management that can show they have been through a downturn and traded profitably are in a strong position, as are niche players and those with first-mover advantage or in sectors with significant barriers to entry," he said.
Rosebud backs Preston businesses Lancashire County Council's Rosebud Finance loan scheme has backed two businesses at different stages in their life cycle: start-up glass design company SLA Glass, owned and run by Susan Armistead from a purpose-built studio on her father's farm at Out Rawcliffe; and Premier Hose Technologies (PHT), which Rosebud is backing for a second time. Nick Jeory, PHT managing director, said: "This family business actually started 33 years ago. A few years ago we received our first Rosebud Finance loan, which helped us to develop our specialist knowledge. The time is right for further investment in the business to allow us to develop it for the future."
The University of Manchester has appointed Professor Tim Abram as the new Chair in Nuclear Fuel Technology, a new position created in association with the Dalton Nuclear Institute and made possible through an investment by US-based Westinghouse Electric Company. The appointment fits with the university's plans for a Centre in Nuclear Energy Technology, an anticipated investment of £25m over the next five years in reactor skills to support new nuclear build.
Prestbury confirms £1m losses AIM-listed Prestbury Holdings, the Alderley Edge-based financial intermediary, has reported a pre-tax loss of £1m for the year ending 31 December, down from almost £250,000 in profit for the previous trading year. The group reported that average monthly turnover reduced by 9.5 per cent to £770,000 from £851,000 in 2006, while average monthly gross profit fell by 16 per cent to £160,000. Prestbury, whose shares were suspended in June after it failed to release its year-end results, said it expects trading to remain "extremely challenging" and revenue for 2008 to be "significantly reduced" as a result.
Expansys finds life tough on AIM Wireless technology business Expansys admitted to a tough first year on AIM as it announced a pre-tax loss of £2.5m to the end of April, up from £800,000 in 2007. The group, which is headquarted at Trafford Park, operates 50 websites in 12 different languages. "While our first year as an AIM-listed company has been a disappointment, the board still believes Expansys has a profitable and exciting future. We have ended the year a stronger and leaner group," said chairman Barry Roberts. Revenue increased 29 per cent to £69.7m and the gross profit margin remained stable at 22.2 per cent.
Holidaybreak continues to perform well In an interim management statement released to the stock exchange this morning, Northwich-based Holidaybreak has said it is continuing to perform well despite a difficult trading environment. The short breaks holiday group said its trading prospects for the current financial year remain "broadly satisfactory", with all divisions showing growth and year-to-date sales up 4 per cent on last year. Chief executive Carl Michel said: "I remain pleased that the spread of our businesses across different travel segments and in various European markets provides us with trading resilience."
Profit back up at Volex Birchwood-based Volex, the quoted electrical and electronic cable assemblies company, holds its AGM in Manchester this afternoon after a 16-week period in which the group was 14.8 per cent ahead of the same period last year and has returned to profitability after modest operating losses incurred in the second half of last year. Revenues have increased across all three divisions - Power Products, Interconnect and Wiring Harness - with strong order books in place.
Despite warnings of a slowdown in the hotel market, Peel has submitted plans for a new £30m hotel at The Trafford Centre, Manchester, that could create more than 100 jobs. The four-star hotel will be next to junction 9 of the M60 and include 210 bedrooms, a 500-seat banqueting and conference facility, a 200-seat restaurant and other leisure facilities. Peter de la Perrelle, Peel Hotels director, said: "This will be the first four-star hotel at the Trafford Centre and is an additional quality facility for the centre and surrounding areas."
Baker Tilly plumps for TSK The Manchester office of accountancy Baker Tilly has appointed the TSK Group to design and build the interior of its new office at Spinningfields. Salford Quays-based TSK secured the seven-figure contract in a competitive pitch and is expected to start work on the 17,000 sq ft office on the ninth floor of 3 Hardman Street this October. David Buxton, partner at Baker Tilly, said: "Three Hardman Street is the place to be, and we are committed to providing an inspirational office space for our clients and our team."
Four lettings for MCR MCR Property Group, owned by Aneel Mussarat, has secured three lettings at the newly refurbished Brook House and a further letting at Wellington House in Manchester city centre. Euro London, CB Richard Ellis and Gray Scanlan Hill have signed up to Brook House on five-year leases at £12 per sq ft, while Passenger Focus has taken 3,427 sq ft at Wellington House on a five-year lease at £16 per sq ft. MCR said since it purchased Brook House in September 2007, it has let over a third of previously vacant space and has two suites under offer.
Hive deal announced Arts Council England has officially agreed its 18,000 sq ft pre-let at Argent’s The Hive in Stevenson Square, Manchester – a story broken in an Insider newsletter two months ago. The announcement follows the news last week that Manchester City Council had stepped in with a deal to take ownership of the site and share the profits.
Straight to the Point Nolan Redshaw and Littler & Associates have been appointed joint letting agents by Spencer Industrial to market the Pivotal Point scheme in Ince-In-Makerfield, Wigan. The 125,000 sq ft industrial unit is located one and a half miles east of Wigan town centre on a five-acre site.
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