The Business Magazine South East - Issue 05 May 2023

INSIDE:

KEEP MONEY FLOWING

R&D UNDER THE MICROSCOPE

REGIONAL PROPERTY OUTLOOK

10 COOL TECH INNOVATIONS

CEO INTERVIEWS

SOUTH EAST WINE SECTOR

Need to know: Quantum Computing

Solent Deals Awards

Thames Valley SME Growth 100 Awards

Deals

Manufacturing Science & Technology

Skills

LAUNCHPAD

When faced with never-ending economic uncertainty there is little option but to keep driving forward through new thinking, optimism and sheer hard work.

The alternative of doing nothing is an alien concept, I would wager, to most of our readers who have weathered the economic shocks of the past and emerged with vigour.

This thinking is also engrained within the team at The Business Magazine and we have continued to innovate and push forward in 2023 with the launch of HampshireBizNews this month.

The site builds on from our acquisition of DorsetBizNews in January whose brand of positive, upbeat and people-focused business journalism has built a loyal audience.

We believe in the model and plan to roll out more BizNews sites later this year.

We have also expanded The Business Magazine website to include the South West and Midlands following our acquisition Business & Innovation Magazine last year.

Our events programme continues to go from strength-to-strength with March seeing the Solent Deals Awards recognise the achievements of the best in the corporate finance business.

This issue of The Business Magazine is, as usual, packed with news, interviews and features.

But first, we pay tribute to King Charles III on his coronation. Our new king was, as

Prince Charles, forthright in his views on many topics, not least of which was giving disadvantaged young people a helping hand.

In 1976, after leaving the Royal Navy, he launched The Princes Trust. In 1983, the Trust set up its enterprise programme which has since helped more than 90,000 young people between 1830 to start their own business.

Our headline feature is Keep the Money Flowing. Where do start-ups, scale-ups and SMEs go to find growth funding?

We’ve interviewed some of the region’s most knowledgeable investors and explain the range of funding options available to ambitious companies.

We meet Sean Taylor, CEO of Redwood Technologies in Bracknell, who has built the business he founded with his brother Martin into a multi-million tech titan.

We also got to talk to Kath Shimmin, Chair of law firm Blake Morgan, who talks on her career, how the law firm is investing in the next generation and why she gave up rugby for sailing.

We also look at the fast-growing wine industry across the South East.

Elsewhere in the magazine we put research and development under the microscope, explain Quantum Computing and reveal 10 of the region’s coolest technology innovations, from sustainable jet engines to a clever smart socket designed to cut down on small power waste.

What all the innovators behind these new technologies did was never give up. Did you know that Sir James Dyson created more than 5,000 prototypes before he succeeded in building his DC01 bagless vacuum cleaner.

As Thomas Edison, the 19th century inventor of the light bulb, was reputed to have said: “I have not failed, I’ve just found 10,000 ways that won’t work.”

Mr Edison also contributed to the invention of the phonograph and the motion picture camera. It’s not too grandiose a statement to say that this man changed the world. But little could he have known the global impact his innovations would have just a few decades after his death in 1931.

We hope you enjoy the read.

Stephen Emerson Managing Editor stephen.emerson@black-ox.com

Farnboroughbased BAE Systems reports record order intake of £37.1bn

Farnborough-based BAE Systems has reported a strong performance in 2022, with an order intake of £37.1 billion, up from £21.5 billion in the previous year.

The defence firm also reported a 4.4 per cent increase in sales, bringing it to £23.3 billion from £21.3 billion.

Highlights for the year included the acquisition of Bohemia Interactive Simulations, progress on BAE’s ESG (environmental, sustainable and governmental) goals including work towards its Net Zero 2030 target and increased self-funded research and development, and capital expenditure.

Its Electronic Systems division opened three new facilities in the United States and was selected to design energy management components for GE Aviation’s megawatt class hybrid electric propulsion system.

BAE also delivered the first eight Eurofighter Typhoons to Qatar, while its first Type 26 frigate entered the water.

Charles Woodburn, Chief Executive, said: “We’ve delivered another year of strong results across the Group. Our employees have done an outstanding job to effectively manage supply chain and inflationary pressures whilst delivering critical capabilities and driving efficiencies for our customers.”

The firm also stated it expects to see sales rise between another three to five per cent for the next financial year.

PORTSMOUTH WATER SECURES £50M FOR MAJOR NEW RESERVOIR

Portsmouth Water has secured £50 million in debt investment from Pension Insurance Corporation to help fund the new Havant Thicket Reservoir.

The reservoir – the first to be constructed in the UK for more than 30 years, will help tackle water shortage challenges which sometimes hit the South East, while also conserving chalk streams.

It will make use of natural springs in the area, which supply water sustainably throughout the year and are thought to be among the largest individual spring water sources in Europe.

In winter and during high rainfall, surplus water flows from these springs into the sea, making them a suitable supply for the reservoir.

Following six years of design, construction and commissioning, the reservoir will be able to store 8.7 billion litres of water, retained by an earth embankment dam, which will then be able to supply up to 21 million litres of

water per day to Southern Water in periods of drought. This will also reduce abstraction from the rivers Itchen and Test and protect biodiversity in these environments.

The debt, which matures in 2037 matching pensioner payments, brings stable and predictable CPI-linked cashflows and is insured by Assured Guaranty. Centrus acted as advisers on the transaction, with Linklaters representing the Pension Insurance Corporation (PIC).

Thomas Foucoin, Senior Debt Origination Manager at PIC, said: “This major infrastructure project will play a critical role in ensuring adequate water supply to communities across the South East and aligns well with PIC’s values and purpose.

Bob Taylor, Chief Executive Officer of Portsmouth Water, said: “We are delighted to have secured the £325 million investment to construct Havant Thicket Reservoir. This will be the first large-scale water storage reservoir to be built in the UK since the 1990s.”

An artist’s impression of the Havant Thicket Reservoir. Credit: PIC

SATELLITE VU TO TRIAL THERMAL IMAGING TECHNOLOGY AT SURREY RESEARCH PARK

Space and climate tech firm Satellite Vu is set to test out its thermal imaging technology at Surrey Research Park, mapping the energy efficiency of its buildings.

The scheme presents an opportunity for Satellite Vu to validate and hone its software and offers useful data to Surrey Research Park and the University of Surrey as they aim for Net Zero emissions by 2030.

From this June, a series of flights across the 70-acre campus will provide temperature data on the structures below in near real time.

Oxfordshire’s Milton Park home to UK’s first electric selfdriving bus service

Residents of Milton Park near Didcot are using the UK’s first fully-electric autonomous bus service, the latest development in a series of green travel schemes for the community.

Operated by First Bus, the fully accessible minibus runs every 15 minutes. It is accompanied by Zipabout’s Mi-Link journey planner, customised for Milton Park to provide real-time

Buildings currently consume 40 per cent of all energy use, and 220 million structures across Europe do not meet the Energy Performance Certificate (EPC) regulations set to arrive in 2030.

Retrofitting the worst offenders offers a quick and cost-effective way to improve energy efficiency and reduce carbon footprint.

Data from Satellite Vu will allow businesses to pinpoint key areas of heat loss and guide them as to where investments into retrofitting will make the largest difference. Anthony Baker, founder and CEO of Satellite Vu, said: “As

service updates on regular apps such as WhatsApp – another first for the UK.

Mi-Link is also integrated with the community’s bike and e-bike share scheme, with bikes located at stops around Milton Park.

Daniel Chick, CTO of Zipabout, said: “Passengers now have hassle-free access to a variety of tools helping them travel around Milton Park seamlessly.

“Using the data and insight from the Zipabout Platform, local authorities and operators can now better understand transport demand in the area, paving the way to helping people get to and around Milton Park more sustainably.”

governments and businesses model the road to Net Zero, satellite technology will be a critical asset due to its scalability and the comparability of the data.

“Satellite data already contributes to 50 per cent of all climate change metrics, and we are hoping our infrared data set will be game-changing in monitoring how human infrastructure is affected.

“Our project with Surrey Research Park represents a scalable solution; opening opportunities at every UK campus or innovation park and providing a blueprint for housing associations and portfolio owners.”

Councillor Duncan Enright, Cabinet Member for Travel and Development Strategy, added: “Oxfordshire is at the forefront of the developments in autonomous vehicles and we, as a council, are proud to be a partner.”

Thermal imaging can map the energy efficiency of buildings. Credit: Satellite Vu

The UK’s first ever fully-electric autonomous bus service. Credit: First Bus

MODERNA PICKS HARWELL SCIENCE CAMPUS AS NEW VACCINE BASE

Biotech company Moderna – which became a household name when it developed one of the first Covid-19 vaccines – has chosen to build its new technology centre at Harwell Science Campus in Oxfordshire.

Its Moderna Innovation and Technology Centre (MITC) is likely to create hundreds of jobs and will be operational by 2025.

The MITC development will be made up of two buildings totalling 145,000 sq ft to include a research, development and manufacturing facility, providing the public with access to mRNA vaccines for a wide range of respiratory diseases.

The MITC will also include a clinical biomarker laboratory that will be

constructed by the offsite construction specialist Merit.

Darius Hughes, UK General Manager at Moderna, said: “We look forward to joining the Harwell Campus health tech cluster and contributing to the UK’s science and innovation community through investments in R&D.

“When constructed, our facility at Harwell will harness mRNA science to develop and deliver tailored, innovative vaccines to the UK that address particular threats from respiratory viruses facing our population.”

Stuart Grant, Chief Executive of Harwell Campus said: “mRNA technology has the capability to transform how we treat

a variety of diseases and enhance UK resilience against future pandemics.

“I’m delighted to welcome Moderna to Harwell campus, and our thriving health tech cluster. We’re entering a new era of medicine so it’s important that we deliver and build facilities to reflect this and spaces that promote innovation and encourage collaboration.”

Moderna is the latest organisation to join Harwell’s Health Tech cluster, which has grown to more than 70 life science organisations since it launched in 2016.

The new MITC is the next development to start at Harwell and is in addition to the three million sq ft of development already planned at the campus.

Surrey-based precision measurement company Spectris profits up 16 per cent to £401.5m

Spectris plc, a Surrey-based supplier of precision instrumentation and controls, saw its profits rise by 16 per cent to £401.5 million in 2022.

The Egham-based company also saw sales growth of 14 per cent .A record order book, up 36 per cent year-onyear, also provides confidence in the year ahead.

Andrew Heath, Spectris Chief Executive, said: “I am delighted by our financial performance and strategic

progress in 2022. We continue to grow strongly, reflecting the extraordinary efforts of our people across the Group to deliver for our customers.

“We are compounding our growth by taking share and opening up new opportunities, through increased investment in research and development driving new innovations, and mergers and acquisitions, supported by a strong balance sheet.

“Spectris is now focused on two great

premium precision measurement businesses in Spectris Scientific and Spectris Dynamics, aligned with attractive, sustainable, structural growth markets with high barriers to entry.”

He added: “With leading technologies and deep technical expertise, our teams are solving some of our customers’ toughest challenges, delivering increasing value and helping to make the world cleaner, healthier and more productive.”

An artist’s impression of the new technology centre. Credit: Moderna

LDC: PRIVATE EQUITY WITH PURPOSE HELPS THE UK ECONOMY GROW

Raising funds is challenging for every business, whatever their size and place in their growth lifecycle.

Start-ups and scale-ups often grab the headlines, but it’s the small and mediumsize enterprises (SMEs), which form the backbone of the UK economy.

SMEs currently make up more than 99 per cent of all UK businesses and helping them grow drives the UK economy and makes it more resilient.

For 40 years, LDC, a private equity investor which is part of Lloyds Banking Group, has been supporting just such growing businesses in all regions and all sectors.

Since 2012, LDC has invested £4.1 billion in SMEs and at any one time works with around 90 portfolio companies.

Lawrence Dean is Head of LDC’s South Team, which is based in Reading. He said: “Our role is to take SMEs to the next level because that growth is critical and it’s important to back innovation. Our parent company, Lloyds Banking Group, sees them as a core of the UK’s growth economy.”

LDC typically invests between £10 million and £50 million in a growing SME for either a minority or majority stake and makes follow-on funding available to help that business continue to grow.

This approach is working. Since 2012, the businesses which have secured LDC investment have grown more than four times the average thanks to the experience, support and funding provided by the private equity investor.

Giving management teams the confidence to grow

“We often meet SMEs businesses whose management teams have worked incredibly hard and at pace for years to build their business,” said Lawrence.

“When they start to talk to us, we encourage them to see how important it is to start investing in technology, systems and people which will help their businesses grow – and leverage the experience and expertise around them. Private equity investment can give management teams the confidence to invest in the next stages of growth.”

Over the last three years, LDC has invested in companies which have gone on to double their head count from fewer than 100 people to more than 200.

Building relationships in local business communities

LDC works within its communities. “We have always taken time to build relationships within our local business communities,” says Lawrence.

“We are lucky to have well-established offices across the country. I look after the South of England from our office in Reading, but my team and I are always out and about, visiting towns and cities from Bournemouth to St Albans and into Kent.

“That approach really helped over the last two or three years, when a lot of other investors were less active. We could leverage existing relationships to ensure that businesses could continue to access capital from us through the pandemic.”

LDC invested in Oxfordshire-based cloud technology company Aker Systems two weeks into Covid.

“Aker was undertaking vital cloud data migration work for government departments when there was a lot of focus around securing crucial data during the first part of the pandemic. The business grew 50 per cent during our investment,” said Lawrence.

LDC is also regularly recommended to businesses from advisers. “LDC has always had a positive reputation in the market for investing through the cycle,” added Lawrence.

Taking the longer view on investing

While the sweet spot for Lawrence’s team over the last few years has been the technology sector, there have been equally successful investments in businesses taking a more disruptive approach in traditional sectors.

“How long we invest all depends on what’s best for the company we’re working with,” said Lawrence. “We are flexible in how long we stay involved, and as part of Lloyds Banking Group we can take a longer view. On top of that we don’t have to worry about fundraising cycles in the way that other private equity funds do. We can remain supportive partners in the challenging as well as the good times.”

Since the pandemic, the economy has slowed down, but that doesn’t deter LDC.

“Where we see businesses, irrespective of sector, which are in growth but need funding support, we try to help them.”

LDC, part of Lloyds Bank Group, has invested £4.1 billion in SMEs since 2012. And those businesses have grown more than four times the average

Lawrence Dean

KEEP THE MONEY FLOWING

UK start-ups raised $30 billion last year. While that’s a drop from the peaks of 2021, it was still 72 per cent higher than the 2020 total, according to Tech Nation in its last report. But with the landscape for investment funding tightening, can businesses still attract investment?

By Nicky Godding, Editor

With the very public demise of the USA’s Silicon Valley Bank in March, and many global technology firms resizing downwards after their pandemic boom, does this mean it’s more difficult for start-ups and scale-ups to raise the funds they need to grow?

Almost certainly. But for entrepreneurs completely invested in their technology innovations, while it may take a bit longer to raise the funding – seasoned and patient investors haven’t lost their appetite for a well-researched and developed idea which has real world benefits – look at the growing appetite for investment in fusion (see our interview with Tokamak Energy elsewhere in this issue).

The British Business Bank’s Finance Markets Report 2023 says lending volumes grew in 2022 with challenger and specialist banks accounting for a record share of gross lending that year. But there are increasing signs of difficulties in accessing finance. And finance to support innovations are essential to deliver the long-term economic growth the country needs, it added.

The bank’s March SME Finance Survey revealed that gross bank lending increased by almost 13 per cent in 2022, but net lending fell by £8.5 billion in large part reflecting the repayment of Covid loans.

Green innovation is the way to go

For the smaller business equity finance market specifically, investment activity has slowed considerably since the third quarter of 2022. Recent years have seen larger equity deal sizes and increased company valuations but in recent months investors have re-evaluated their positions leading to smaller deals and lower valuations.

So, what are investors buying into? Green innovation, according to the report, with net zero deals outperforming the wider equity

market. These deals currently make up 12 per cent of all smaller business equity deals compared to only five per cent in 2018, and deal values are rising even faster. The investment value of net zero-related deals rose by a hefty 184 per cent over the past year, soaring to a new record level of £1.7 billion.

Innovative businesses are more likely to use some form of external finance (65 per cent versus 58 per cent of non-innovators, according to the British Business Bank’s report). Smaller businesses seeking finance to innovate are also reported to be using a wide range of finance products, with many smaller businesses opting for grant finance, asset finance or bank overdrafts to help them develop and adopt innovative products and processes.

However, the availability and cost of finance remain significant barriers to innovation.

HOW DO YOU SECURE INVESTMENT? TELLING AN INSPIRING STORY HELPS

How does a start-up or scale-up attract venture capital investment? We asked experienced growth investor Joe Krancki from listed specialist Gresham House Ventures

It’s never been easy, or quick, for start-ups or scale-ups to secure investment, even during the boom years between 20152022. And it’s now got a lot more difficult as world economies respond to global events such as the pandemic and war in Ukraine. But for the right idea with market potential and the right people behind it, the investors are there.

Joe Krancki is an Investment Director at Gresham House Ventures, the growth equity division of Gresham House.

“We are always on the lookout for young businesses with exciting potential and we make around a dozen investments a year,” he said. “We’re not necessarily just looking for ideas with billion-dollar potential. Our approach is more growth-focused. If we are presented with a smaller opportunity which can be executed well, we will consider it.”

Gresham House Ventures supports growth and scale-up investors and specialists in sectors such as enterprise technology, healthcare, education and consumer markets, but for Joe and his team, whatever the idea: “It’s people first and people last for us.”

What does he mean? “If we make an investment, we will be working closely with the people behind the business over a long period. While everything else is very important – the technology, innovation and go-to-market strategy. At the end of the day we have to believe in each other.”

Gresham House Ventures is approached by hundreds of potential growth businesses every year, and it’s those that stand out from the crowd which make the most impact.

“We want to be inspired, be impressed, so telling a story is important. Paint us a picture about the real-world benefit of what you’re offering. Pitches which can give us a sense

of drama as well as the facts and information we ask for, are a lot more compelling and interesting.”

Joe outlines the “Six M’s” scale he applies to pitches:

“We look at the management – who are the people involved in the business? Then we consider the machine – the product or technology, the IP and business model. The market is next, how big is it and what’s the competition? Then it’s on to momentum, what is the growth trajectory, can the business meet key performance indicators?”

Then there’s the other side of the scale: “The money – what is the size of the investment needed?”

Governments cannot solve world problems alone

And finally, materiality. “We focus on investing in sustainable businesses – lives, livelihoods and the environment are important to us. Governments cannot solve these issues alone, the private sector has to step up.

“Entrepreneurs are great at solving problems. If their solution has a positive impact on the world, as well as creating jobs and value for the stakeholders, I find that really motivating and is part of our strategy and DNA at Gresham House Ventures.”

Understanding every opportunity that comes across Joe’s desk takes time. “There’s a lot of work needed on our side to appreciate a new idea, and I won’t invest in something I don’t understand. Sometimes that means that I’m literally hanging on for dear life, but that’s exhilarating.”

Joe cites the investment Gresham House Ventures made in high performance positioning tech company FocalPoint.

Joe Krancki, Investment Director at Gresham House Ventures

“FocalPoint improves the satellite navigation capabilities of consumer devices and vehicles through software. It particularly solves the challenge in urban environments where accurate positioning is difficult due to signals reflecting off buildings. The technology is amazing.

“There was a lot to understand before we made the investment, so I threw myself into research. Even though I have a background in software and technology I took a short course in satellite navigation. I don’t know how you could do this job without being prepared to put in the time to gain the right knowledge and experience.”

Gresham House Ventures invests through its managed and advised Venture Capital Trusts, and currently has around £800 million under management. There are rules associated with how much can be invested in a business. “In a given year this could be up to £10 million, but we can support a company over its life by up to £20 million.

“Our sweet spot for initial investment is often around £4 million to £6 million.”

It also takes time to execute a deal. “We want to get to know the team, see them perform, check there’s the right expertise in place within the business for the growth stage it’s at, and help bring new people in if needed. On the other side, what a management team or entrepreneur is looking for in an investor is also very important. We both have to decide that we are each the right partner for each other.”

And Joe issues a warning to any entrepreneur who sees an investor as a useful ATM.

“If you don’t understand that partnerships and relationships are needed to take a business on to growth and success, we will not invest. Thankfully that doesn’t happen all that often.”

THERE’S FINANCIAL VALUE FOR START-UPS IN GOOD NETWORKING AND COMMUNICATION

Entrepreneurs and founders of start-ups who network and take advice both offered and asked for are more likely to secure investment and become successful than those who don’t.

You can’t be an expert in everything.

So says Richard Cooper, managing director of Oxford Innovation Finance, the home of OION (Oxford Investment Opportunity Network), one of the oldest and largest angel investment networks in the UK, and the Oxford Innovation EIS Growth Fund.

One of the biggest problems, he says, is when entrepreneurs or founders of startups are looking for funding, they don’t always think like an investor.

“There is a definite weakness in fundingraising for the pre-seed phase of a business,” he says.

Pre-seed funding is the investment round which comes when a start-up needs funding to develop their idea into revenuegenerating businesses.

In the past, this round of funding was often achieved through angel investors, family and friends, but in recent years early-stage

investors have seized the opportunity to invest. Now, however, such investors are fewer and further between.

“A lot of founders think their technology or science is absolutely brilliant – and so they should. But angel investors, in particular are usually generalists and won’t always understand the detail,” said Richard.

Spending a five-minute pitch introducing their technology might seem like time well spent to a founder, but an investor wants to know how the company is going to grow, the capabilities of its management team and the business model.

It’s not all about the detail, give the bigger picture

“While I can totally understand why founders do this – I used to run a software company myself and was so excited about the tech I was developing that I wanted to tell everyone. But a potential investor needs to understand the bigger picture, and that can be quite hard to do. A founder needs to describe how they are going to grow the business and how an investor can exit.”

Oxford Innovation Finance has a large angel investment group of around 670 members.

And while Richard admits that investment rounds are taking longer for everyone, thanks to the current difficult economic climate, his organisation hasn’t seen a big downturn in investments because not all angel investors have been affected.

If others back your technology, it gives investors confidence

What can a start-up do to secure the funding they need to get their ideas off the blocks?

Contacting Innovate UK to apply for a grant is a good first step. And while such grants are not handed out like sweets (this is government funding after all), if a start-up business has a good idea and is willing to put in the time to explain and justify it, they are more likely to be successful.

And if it’s good enough for Innovate UK backing, this will help fuel investor confidence.

Potential investors will need to understand the traction of a business. For instance for a software company, it’s all about revenue. For a bio-tech or health-tech it’s about early trials.

Founders and entrepreneurs should take advice if they want success, because you can’t be an expert in everything

Richard Cooper, managing director of Oxford Innovation Finance.

Photograph by Tricia de Courcy Ling

Richard also advises founders to try and raise more than they need, because it’s incredibly time-consuming to have to start fundraising again within six months when they should be focusing on product or tech development.

“You need to raise enough for 18 months so that you have a runway on which to build the business.

“I understand that some founders don’t want to give away equity early on – that approach works in boom times, but not so well in our current economic situation. In the long-term, raising more earlier will work better for the business.”

It’s better to have a growth plan than no plan

The strategically-thinking founder will be planning all equity funding raising rounds from the beginning. “This approach gives an investor confidence,” says Richard. “While an investor understands that a start-up is likely to have to adapt to circumstances and there will be hurdles along the way, at least they will understand about dilution levels – and it’s better to show you have a plan than no plan.”

Richard adds that investors will also look at how a management team copes with inevitable challenges. “New tech can be brilliant, but if it’s really innovative, there

are likely to be issues to overcome. How a management team reacts to those is the difference between a good technology company and a mediocre one.”

When working with a start-up seeking investment, Oxford Innovation Finance will advise them on building the right team, including finding a leader with the right experience to help build the business.

“We usually have a board observer on a company in which we have invested. They will share their industry knowledge and advise on what’s worked before and what hasn’t.”

Oxford Innovation Finance invests in technology and business-to-business and its sweet spot currently is the second and third round of funding, pre-series A. While the business is based in Oxford it does invest nationally.

of founders presenting technology in the mental health space. This year there is a lot of green-tech.

“We will often get a batch of certain companies in one sector, and it can be very hard to pick and choose, which is why we advise founders to network and find mentors and advisers.

“Start-ups don’t start their business because they love finance and raising money,” said Richard.

“They start their businesses because they are passionate about building a company to meet a real need in the market.

“If they are not educated in how to raise funding, that’s difficult.

“There is some education going on, and over the last five or six years the quality of companies coming through has improved, but we need to cement that.”

Last year Richard and his team saw a lot

Innovate UK’s Edge programme is particularly good, he says. “Founders can pitch and we can give feedback. It’s a really good initial education.

“Start-ups don’t start their business because they love finance”

“I understand that some founders don’t want to give away equity early on – that approach works in boom times, but not so well in our current economic situation”

Oxford Innovation Finance participated in a £4.1 million funding round in Anaphite last year. Anaphite is enhancing Li-ion batteries with graphene, to help power the sustainable energy revolution

THE MON£Y SHOW ME

According to data company Experian, in spite of high inflation, rising energy costs and other economic challenges, around a quarter of UK small and medium-sized enterprises remain resilient – making them “good risk” prospects for lenders. The challenge for would-be lenders will always be how to differentiate between those which are a good credit risk and others which may be less able to meet their financial commitments over time.

From bank loans to private equity, angel investment or crowd-funding, there are many different types of borrowing, or ways a business can raise investment to drive a long-term strategy or to manage shorterterm cash flow challenges. But start-ups or scale-ups seeking to raise money should proceed with caution and always take expert advice.

Debt finance

The most widely used form of finance used by UK businesses.

A business borrows a sum of money, either as a loan, or (generally more expensive) an overdraft and pays it back over an agreed period of time.

There are additional forms of debt finance. Two of the most widely-adopted are finance secured on assets and factoring.

Asset finance (leasing or hire purchase) can be ideal for businesses seeking help to buy expensive assets, without using funds earmarked for cash flow.

Factoring turns invoices into working capital. A business sells its invoices to a third party (a factoring company) at a discount. Invoice factoring can be provided by independent finance providers, or by banks.

Venture Capital

Capital is invested into promising startups or small businesses in exchange for equity. Funding such as this usually comes from wealthy investors, investment banks or other financial institutions looking for opportunities to support young companies in the hope that early investment will help them grow faster, making money for the investor and the founders. The financial investment may come with managerial or technical support.

Venture capitalists will often invest in a number of small companies, taking around 50 per cent equity in the business. This helps them spread their risk, and often allows the business founders to retain equity in the business so that its success will also deliver for them as well as their investors.

Revenue-based financing

This is a way for young companies to secure financing without giving up equity or having the burden of inflexible debt repayment conditions.

Investors agree to invest capital in a company in exchange for a percentage of the company’s ongoing total gross

revenues. It is an alternative investment model to more conventional equity-based investments, such as venture capital and angel investing, as well as debt financing.

It means a young company can raise capital without sacrificing part of its equity or pledging a part of its assets as collateral.

Private equity funding

Private equity investors take shares in a business. Like venture capital, the investors are generally high net worth individuals, or large institutional investors, such as pension funds or companies acting on their behalf. The goal of private equity investors is generally to take control of the whole business and so they usually invest in mature or proven businesses which the investors feel have fundamentally good products or services but have unrealised potential because of poor management or other inefficiencies.

Angel investment

High net worth individuals (“angels”) who are willing to invest their own funds. Angel investors seek to share in the successful growth and have a return on their investment. Angel investing is generally regarded as “patient capital” (an investment made for the longer term), and they may not see an exit or a return on their investment for up to eight to 10 years.

Business angels can invest on their own, but more frequently investment is made alongside other angel investors through syndication. This enables them to pool funds and share the risks.

There is a regulatory framework for angel investing that protects angels and the entrepreneurs.

Before receiving business plans or beginning to make angel investments, an angel investor must self-certify as either a High Net Worth or Sophisticated Investor.

A certified high net worth individual must have a net income in excess of £100,000 or net assets in excess of £250,000 over

and above their pension fund assets and private residence.

A sophisticated investor must have either been a director of a company turning over at least £1 million within the last two years, have made more than one investment in an unlisted company in the last two years, be a member of a network or syndicate of business angels for at least six months or have worked in the past two years professionally in the private equity sector or in the provision of finance for small and medium enterprises.

The government’s Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) give angels generous tax breaks. By making investing less risky for investors, the schemes help businesses grow.

Under EIS, angels cannot take more than a 30 per cent share of a business, which makes sure that entrepreneurs stay incentivised.

Government grants

Not strictly borrowing, because they

don’t have to be paid back, grants from government are often difficult to find and sector specific. Application forms are also often time-consuming to complete. Contact the government’s innovation agency, Innovate UK, which operates many funding schemes.

The value of grants varies greatly but can be between £1,000 to £100,000 for small or medium-sized businesses, or much larger for the high growth businesses that the government wants to encourage.

Crowd funding

Raising capital through collective funding of individual investors. These can be friends and family or, increasingly, amateur investors or individuals seeking opportunities to invest their money via online or social media platforms.

Crowdfunding platforms, such as Crowdcube or Seedrs, offer a public arena to showcase a business’s products or services. There are different sorts of crowdfunding websites, including

rewards-based where the investee offers their product or service as a reward, equity-based where the investee gives up a portion of the business to the investor, or donation-based – often used for social enterprises or community interest companies.

Peer-to-peer lending

Peer-to-peer lending matches up potential investors with borrowers, who could be individuals or businesses.

They appeal to investors willing to take on more risk with their cash for higher interest rates offered than typical savings accounts.

Retail investors access an online platform to provide loans to consumers or small business borrowers. These platforms facilitate the lending, undertake credit assessments and other risk management, but do not act as a counter-party to the loan, and contracts are direct between the investor and the borrower.

In 2019, the Financial Conduct Authority imposed stricter rules for peer-to-peer platforms to protect less experienced investors. One of these rules was the introduction of a requirement that platforms assess investors’ knowledge and experience of peer-to-peer investments where no advice has been given to them.

Abingdon-based EcoSync raised more than double its £400,000 Crowdcube target to further develop its smart tech to enable those managing commercial buildings to stop heating empty rooms

Dorset navigation app company Savvy Navvy celebrated its fastest overfunding to date on the investment platform Seedrs, passing its minimum £600,000 target. The previous four crowdfunding rounds, run since 2019, raised more than £3 million from more than 1,800 investors

Successful partnership with LDC helps FSP double revenues and headcount while maintaining its people-centric focus

Headquartered in Reading, FSP is an award-winning provider of digital transformation services to large enterprises and public sector organisations. Private equity partner LDC first invested in the business in December 2020 for a minority shareholding. The investment backed the existing management team, led by CEO Simon Grosse, to continue to grow the business.

During an initial two- and half-year partnership, the business more than doubled revenues and headcount whilst being recognised for its peoplecentric approach in a number of awards programmes, including placing first in

three separate Great Place to Work UK® Best Workplaces™ league tables.

In February this year LDC exited its investment to CBPE while reinvesting for a minority stake to continue to support the growth of the business. The transaction enabled FSP’s simultaneous acquisition of leading cyber security consultancy Savanti, a company identified by LDC and introduced to the FSP team.

With strengthened cyber services and an expanded investor base, FSP plans to continue investing in its suite of services as well as making further strategic acquisitions to accelerate its

scale and customer base.

Lawrence Dean is Head of LDC’s South Team, which is based in Reading. He said: “When we met FSP the year before we invested in them, they were a small business with big ambitions. We were able to offer them the support at the time they needed it to help them grow.”

Simon Grosse, CEO of FSP, said: “This marks the start of another exciting chapter in our development. LDC has supported our journey over the past two years, helping us to successfully scale while maintaining our world class culture..”

LOOKING FOR GRANT FUNDING OR LOANS TO DRIVE YOUR INNOVATION?

Innovate UK, the country’s innovation agency, provides funding to help stimulate innovation in the UK economy. It encourages businesses to work with other commercial and research organisations.

The agency is part of UKRI, the UK’s largest public funder of research and innovation.

UKRI also oversees seven disciplinary research councils and Research England, which is responsible for supporting research and knowledge exchange at higher education institutions in England.

UKRI invests more than £8 billion annually to advance UK understanding of people and the world, and deliver benefits for society, the economy and environment.

Innovation is never easy, especially in the early stages of developing an idea before taking it to market. Sometimes businesses must work together, supported by a research and technology organisation which can lead the project.

The level of funding available from Innovate UK will depend on the size and type of the

organisations applying (either businesses, research organisations, public sector organisations or charities undertaking research) and their role in a project. Businesses applying must be registered in the UK.

There are dozens of open competitions on its website, which are being added to regularly.

More details on all of them, along with other criteria around funding applications (and there are many) can be found on www.ukri. org. A word of warning – beware of the tight opening and closing dates around each competition. Here are two of the latest:

Novel low-emission food production systems: investor partnership

UK registered small and medium-sized enterprises (SMEs) can apply for a share of up to £3 million to develop novel production systems that create resource-efficient, low-emission foods, particularly proteins.

This must align with private investment from selected investor partners.

The competition opened on May 8 and closes at 11am on July 5.

The aim of this competition is to support UK registered micro, small and medium-sized enterprises (SMEs) to develop novel food production systems.

Resource efficiency for materials and manufacturing

UK registered organisations can apply for a share of up to £12 million for ambitious collaborative R&D projects to support UK materials and manufacturing organisations to become significantly more resourceefficient. Entrants should focus on two or more of five core areas: materials for the future economy, smart design, resilient supply chains, world-class production.

The competition opened in March and closes on May 26.

Fifty of the UK’s leading women entrepreneurs – including a number from across our region – have been backed by Innovate UK for game-changing ideas.

From a pedal-powered games controller to an AI digital prehabilitation programme for cancer patients before receiving treatment, Innovate UK’s Women in Innovation Awards will empower women to scale their innovative businesses.

Each winner will benefit from a £50,000 grant, one-to-one business coaching, networking opportunities, role modelling and training.

The awards reflect the government’s ambition to give more support to women innovators and business leaders.

Ameenah Begum is a creative problem solver, artist, and designer based in Portsmouth. She is the founder of Planet Friendly Paint, a social enterprise that upcycles waste make-up into zero-waste watercolour paints.

“I wanted to tackle the cosmetic waste problem in Europe and encourage people to make conscious decisions that positively impact the planet,” she said.

REGIONAL TRAILBLAZERS AMONG 50 ENTREPRENEURS BACKED BY INNOVATE UK

The goal over the coming years is to expand the business, diversify the supply chain and focus on business development strategies to make the upcycling service and oneof-a-kind products more accessible. This will allow the company to transform into a circular economy business, partnering with retailers to create sustainable supply chains and distribution streams.

Alison Callwood’s journey into the world of tech start-ups is not typical. Beginning her career as a nurse and midwife, with more than 20 years’ experience in the NHS, she moved into academic research.

An interest in making the recruitment process fairer led her to set up Surrey-based Sammi-Select and she remembers “totally stepping outside my comfort zone, leaving my secure bubble in healthcare education in 2020 driven by a passion for fairness”.

Sammi-Select creates automated interview and assessment solutions designed to save time and reduce bias, making the recruitment processes fairer, especially for neurodivergent candidates.

A.K. Ola Hekselman is a visionary battery scientist and entrepreneur, who has spent the past 10 years in academia working on

next generation materials for Li-ion batteries. Her passion for the environment and her drive to bring about positive change led her to co-create Worthing-based Solveteq to bring a sustainable approach to battery recycling technologies.

She says: “We are not attempting to redesign the entire recycling process but rather address its most economically and environmentally challenging step – removing the lead from lead-acid batteries and overcoming the informal recycling practices that result in lead pollution. An issue that is particularly relevant in water-sources and communities within low and middle-income countries”.

The flagship Women in Innovation Awards is a key part of Innovate UK’s commitment to boosting the number of women entrepreneurs. Innovate UK will give all 50 trailblazers £50,000 and bespoke mentoring and coaching to enable them to scale-up their businesses.

Now in its sixth year, the competition drew a record number of 920 applications from women business leaders, 10 per cent up from last year, reflecting the growing number of women-led businesses in the UK.

Nine out of 10 UK scale-up companies expect to grow this year

Although concerned that the UK is becoming a harder environment to scale in, nine in 10 of the UK’s scaling companies expect to continue growing in the coming 12 months.

One in five expect to scale at 50 per cent or more. These insights were revealed in the Scale-Up Institute’s 2022 Annual Review, which also recorded

a strong scaling pipeline and a 13 per cent increase in the number of “visible” scale-ups to 8,457 – which it defines as those breaking through the £10.2 million turnover barrier, or £5.1 million in assets. That is a 119 per cent increase since these were first tracked in 2017.

The report included a survey of more than 300 chief executives of high-growth

scaling companies across the UK with a combined turnover of £2.5 billion.

Almost 40 per cent of the scale-ups surveyed have a female or ethnic minority founder or chief executive.

More than 60 per cent want to export more this year and more than half expect to raise further funds to fuel growth.

A.K. Ola Hekselman, battery scientist and entrepreneur

A CHANGE IN DIRECTION: BECOMING AN ENTREPRENEUR

Starting a business is a lifelong dream for many people. Some of them think of leaving their job and starting their own company. Whether you’re setting off in a completely new direction or exploring opportunities within your existing area of expertise, it’s never too late to become an entrepreneur.

Those who become entrepreneurs when they are shifting careers often have more chance of success. Despite the media’s portrayal of entrepreneurs as young, tech-savvy disruptors in their late teens or twenties, the reality is that many successful people starting businesses are in their thirties, forties, fifties or beyond. According to a report in Harvard Business Review, the average age of a successful start-up founder is 45 (Scan QR code for source).

Experience is an asset

These ’mature’ entrepreneurs are just as likely to succeed as those in their 20s. Indeed, a

number of entrepreneurs in this group have achieved great business success. Eric Yuan created Zoom at 41, Arianna Huffington founded the HuffPost at 54, Bob Parsons founded Go Daddy at 47 and Reed Hastings started Netflix when he was 37. So if you’re considering leaving your job to become an entrepreneur, age is clearly not a barrier – and experience matters.

Many people starting businesses find that their past experiences can be a huge asset. Wide networks, experience and personal capital help to make more experienced entrepreneurs particularly successful when starting businesses.

They also have further advantages through experience of relevant markets, industry knowledge and supplier networks.

Challenges facing mature entrepreneurs

While it is now easier to create a business, there are still significant risks, especially for entrepreneurs who have gone past the more ‘worry free’ years of their teens and twenties. Often, they have reputations to maintain or families to support, which raises the stakes. This can make starting a business a daunting prospect.

jeremy.hill@kleinworthambros.com

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All business, particularly start-ups, have to find ways to use technology in order to be competitive. Younger entrepreneurs are more likely to have a tech background or to be able to partner with someone they studied with that has one. For many middleaged entrepreneurs one of the biggest challenges they face is the absence of a tech co-founder.

Fortunately, there is plenty of help and support available when starting a new venture.

For instance, start-up incubators and networking schemes have made it significantly easier for entrepreneurs to pursue their business dreams.

Business incubators

Business incubators provide start-ups with the support and resources young companies often find difficult to access and can make a huge difference to the success of a business in its early stages.

One of their biggest benefits is that they give entrepreneurs more time to develop their product, while handling some of the day-to-day administrative tasks.

More people than ever before are starting businesses as part of a career change and making a success of it. We take a look at the challenges these entrepreneurs face and the support available to them.

They also provide access to influential networks and prospective business partners that are not necessarily available to young firms.

Entrepreneurs can share ideas with other small businesses and entrepreneurs within the incubator. As well as start-ups, incubators are home to angel investors, venture capitalists and other businesses, providing the opportunity for mentorship.

Some incubators are also connected to accelerators, which can help businesses with their next stage of growth.

Benefits of networking

For new entrepreneurs who are looking to make contacts, networking schemes can help make the right connections.

One example is the WealthiHer Network (Scan WealthiHer QR code to read more), a leading professional organisation offering women and female entrepreneurs the knowledge, tools and confidence they need to manage and grow their wealth. As a founding partner of the WealthiHer Network, SG Kleinwort Hambros is proud to contribute to and organise events, forums and discussions that offer female entrepreneurs valuable connections.

INTERVIEW – RYAN EDWARDS, CEO OF TECH AND MUSIC START-UP AUDOO

Audoo provides technology that tracks music played in public places to ensure rights holders are compensated accurately.

What did you do before you became CEO of Audoo?

Before my professional career, I pursued my dream of being a musician and signed a record deal at the age of 18. Sadly, we didn’t achieve global rock god status.

Thereafter I grew my career across retail and digital business including Carphone Warehouse, Grapple Mobile which became Europe’s largest app developer and sold to Monitise PLC in 2013, then to Visa heading up data partnerships.

I’ve been fortunate to work in great mix of corporate, and entrepreneurial businesses.

Why did you become an entrepreneur?

It’s funny, I never set out to be an ‘entrepreneur’ – the vision was a desire and idea to help. I’m motivated by the constant desire to deliver a level playing field for musicians. There has been a long-term challenge for the music industry for royalties to be distributed on real world/more accurate data and that’s where everything came together.

How much have you raised?

most experienced and successful people I could find around me.

What does private wealth mean to you now?

It’s about the obvious things like financial security for my daughter, wife and I, then it’s about making a difference. Wealth is a responsibility to ensure those in need can be helped and to create a better future. It sounds obvious, but I learn daily about how to do more.

What one tip would you give to someone thinking of changing direction and becoming an entrepreneur?

Just do it. There is nothing better than being your own boss. I’ve been able to recruit all the best people I’ve ever worked with across my career. We’ve created our own culture and I get to spend my time with people who inspire me daily. My largest regret in life is that I didn’t do it earlier.

If you would like to know more about Audoo, scan the QR code.

FIVE THINGS TO CONSIDER

• It’s never too late to start a business.

• Experience matters and is a real asset.

• Mature entrepreneurs have the advantage of networks and personal capital.

• Business incubators can give entrepreneurs access to vital help and resources when starting a business.

• Networking schemes can help entrepreneurs make the right connections.

I have raised over £25 million to grow and accelerate the business through direct investment. I have avoided venture capital funds, favouring family offices and those with deep industry knowledge to wrap the

FILM STUDIO TO BE BUILT IN HIGH WYCOMBE

Slough’s IRIS Software Group expands US business with Apex HCM acquisition

Slough-based accountancy and payroll software provider IRIS Software Group has acquired US-based software providers Apex HCM.

Founded in 2008, Apex’s software is used across the US to provide payroll services to more than 40,000 small and medium-sized enterprises.

A new eight-stage film studio will soon be built in High Wycombe after Stage Fifty was granted full planning permission by Buckinghamshire County Council.

Stage one of the new Wycombe Film Studios is already prepared for film and high-end TV production, with a further seven stages and studio facilities scheduled to be completed in the next 18 months, giving the studios 295,000 sq ft of space.

The development is expected to support around 1,200 jobs in the area and generate an estimated £305 million economic output (GVA), including training opportunities for young people hoping to enter the industry.

Plans for the site were drawn up by Maidenhead-based TP Architects and Nexus Planning submitted the planning

statement to Buckinghamshire County Council.

James Enright, CEO of Stage Fifty, said: “Wycombe Film Studios will be a unique creative space that works for everyone. We’ll deliver the same high level of service and personal attention to clients here as we do at Farnborough Film Studios and Winnersh Film Studios.”

Martin Tett, Leader of Buckinghamshire County Council, said: “Buckinghamshire is the home of the UK’s film industry, so we’re delighted that planning permission has now been granted for Wycombe Film Studios.

“The studios will be a catalyst for economic growth in the area, generating around 750 direct jobs and a further 450 indirect jobs, as well as providing new opportunities for education and training.”

The financial details of the deal have not been revealed.

CEO of IRIS Elona Mortimer-Zhika said: “This acquisition continues our successful journey providing leading software to PSBs and CPA firms – a market which IRIS has been serving for decades in the UK and we are rapidly expanding in the Americas region.”

The acquisition of Apex is a milestone in IRIS’ international growth. The combined business provides payroll solutions for more than 130,000 small and medium-sized businesses and one million employees across the United States and Canada.

President and general manager of IRIS Americas, Jim Dunham, said: “Apex is an excellent addition to our US Payroll business.”

SAVILLS MOVES TO NEW READING OFFICE AT ONE FORBURY SQUARE

Real estate advisory firm Savills has moved its 30-person team into new offices at One Forbury Square in Reading town centre.

The move comes after the company marked its 10th year in Reading. It will occupy the bottom floor of the 3,704 sq ft triple aspect office space.

Head of Savills Reading, Phil Brown, said: “We have grown considerably over the last decade, from a relatively small specialist team into the market-leading multidisciplinary business we are today.

“Having secured the space last year, we have invested in an impressive fit-out to meet our current and future needs, including, of course, ensuring it is as sustainable as possible.”

Savills celebrated its new office opening at an informal event featuring a special address from Savills UK managing director Richard Rees.

Oxford-based Brainomix gets FDA clearance for stroke AI imaging software

Brainomix, the Oxford-based AI powered med-tech company, has revealed that its 360 e-ASPECTS tool for stroke imaging has received USA-Food and Drug Administration clearance.

The company can now deploy its stroke AI imaging platform to US stroke centres. The company has already sold the 360 e-ASPECTS tool into 30 countries following the product receiving validation from more than 60 academic papers.

The Brainomix 360 stroke platform uses AI algorithms to support doctors by providing real-time interpretation of brain scans to help guide treatment and transfer decisions for stroke patients.

Director of the University of Pittsburgh Medical Centre Stroke Institute, Prof Raul G Nogueira, said: “This is a very exciting technology. For several years, I have had the pleasure of working as a consultant with Brainomix, who are driven by a philosophy of maximizing the clinical value of simple imaging, accessible in all stroke centres.”

e-ASPECTS was created by Brainomix co-founder and Professor of Stroke Medicine at the University of Oxford, Alastair Buchan.

Recent studies indicated that use of Brainomix software reduced door-in-door-out times at stroke centres by over an hour. Furthering this, the number of patients that achieve functional independence following a stroke tripled following the implementation of Brainomix software.

CEO and co-founder of Brainomix, Dr Michalis Papadakis, said: “We are delighted to have the opportunity to take our technology to the US, where more than 800,000 patients suffer a stroke each year.

“Our e-ASPECTS tool has been shown, in multiple countries and healthcare systems, to improve physicians’ interpretations of ASPECTS scores on non-contrast CT scans – which carries particular clinical value for primary stroke centres, where there may not be around-the-clock specialist expertise, but where most stroke patients are first admitted.’’

Savills staff in the new office at One Forbury Square. Credit: Savills

The stroke AI imaging software. Credit: Brainomix

Five reasons to outsource your HR support

But if you’re the owner of a growing SME, your internal HR capacity may no longer be enough to support what your business and its people need. Is now the time to gain additional outsourced HR?

B P Collins’ HR2Help team offers five reasons why it could be.

1. Save money

If you’re a business owner, it may become increasingly difficult for you or your HR department of one to do everything. However, an extensive HR department may be too expensive, which your overheads cannot cover. If you outsource some or all of your HR, you’ll be able to access a team of hugely experienced experts cost effectively.

2. Minimise risk

If you’re a business owner, it may become increasingly difficult for you or your HR department of one to do everything. However, an extensive HR department may be too expensive, which your overheads cannot cover. If you outsource some or all of your HR, you’ll be able to access a team of hugely experienced experts cost effectively.

3. Save time HR processes take time – from the creation of policies and procedures to employee training. If you are able to free yourself of these responsibilities by outsourcing, you will have more time to focus on, and grow, your business.

4. Focus on your strengths

As a small to medium sized business owner, you many feel that you must wear many different hats within your company –from sales director to marketing manager –in order to save costs. Despite HR playing a crucial role in a business functioning well, many owners are unable to afford a specialised HR department. However, outsourcing HR services can be a huge relief and allow you to continue working on other areas of the business where your strengths lie.

5. More engaged employees

Your people are your most significant asset. They make you stand out from your competitors. Without access to great HR support, low morale and poor productivity may creep in. If you outsource to the right HR consultancy, you’ll be working with the

best, with many years of experience, who can help with training and development, performance management and coaching.

About B P Collins’ HR2Help

B P Collins’ HR consultancy, HR2Help can hit the ground running providing outstanding HR support from day one with our CIPD qualified consultants. Our focus is on understanding your objectives, identifying pragmatic and commercial solutions, and helping with the implementation. We will empower you in your decision making, enabling you to manage your employment issues as efficiently and as effectively as possible.

HR2Help

retainer

Choosing our HR2Help retainer will give you regular access every month to our experienced team of specialist HR consultants who are backed by B P Collins’ employment law team. We can offer you the right advice at the right time, avert problems or minimise any damage that might arise. We will act as your business partner with the aim of saving you time and money, while maximising your human resource.

For more information, please visit www.bpcollins.co.uk, call 01753 889995 or email enquiries@bpcollins.co.uk

Whether you’re dealing with an employee complaint, a major strategic project, or wishing to review your employment contracts, HR support is crucial to any business.

OXFORDSHIRE’S SYGENSYS AIDS IN NEW RESEARCH TO BOLSTER UK ENERGY GRID

Oxfordshire tech start-up Sygensys has collaborated with the UK Atomic Energy Authority (UKAEA) on a six-month study into software which could help strengthen the National Grid and prevent system failures and blackouts.

Sygensys is developing demand management and energy storage systems to allow effective use of renewable energy sources.

The Multi-Threaded Application RealTime executor, or simply ‘MARTe’, is a fusion control software developed by the UKAEA in 1995 to manage the extreme temperatures and pressures associated with nuclear energy.

The UK’s demand for electricity and supply of renewable energy to meet it is expected to increase by 40 per cent over the next decade. The study has assessed how MARTe’s capabilities might be rolled out to the wider energy sector in order to reliably keep up with increased load.

The UKAEA is looking to implement MARTe into the UK’s increasingly smart and decarbonised grid, in which traditional

synchronous generators are being replaced by more reliable and efficient inverter generators in the production of many forms of renewable energy.

These inverter-based systems can be controlled to save fuel when load demand is low.

Nizar Ben Ayed, Fusion Innovation Technologist at UKAEA, said: “There is a rapidly-emerging need for improved control systems that provide system level control in addition to grid level harmonisation across generators and loads.”

Sygensys CEO, Andrew Larkins, added: “To speed transition to decarbonisation, systems must be easily maintainable, secure and inter-operable. MARTe certainly shows potential in all these areas and could prove to be a real asset as it is further developed for commercial use.”

MARTe also provides plasma control and protection systems to the JET (Joint European Torus), a record-breaking nuclear machine located at the Culham Centre for Fusion Energy in Oxfordshire.

Henley-based HMT advises on HT Material Sciences’ €15m investment round

Henley-based HMT LLP has advised HT Material Science (HTMS) on the completion of its €15 million Series-A funding round.

HTMS develops sub-micron-based heat transfer fluid technologies. Its Maxwell heat transfer fluid additive reduces energy consumption in commercial cooling and heating systems by up to 15 per cent.

Clients include Saudi Aramco, Johnson

University of Reading set to lead agroforestry study in UK

Scientists at the University of Reading are set to lead the UK portion of a new study into agroforestry.

The Europe-wide ‘Reforest’ programme, backed by UK Research and Innovation under the Horizon Europe Guarantee, is aiming to show farmers that planting trees between crops can boost food production and achieve net zero in the next decade.

According to the University of Reading, more than two-thirds of land in the UK is used for farming. If half of all UK farms adopted agroforestry methods, farmers would achieve net zero by 2037 on arable farms, and by 2044 for livestock.

& Johnson, Regeneron Pharmaceuticals, Swire Pacific and Ericsson.

The HMT team advising HTMS was led by Partner James Thomas, who said: “Having worked with HTMS since their Seed Round, I am delighted to have again supported them on the conclusion of their Series-A fundraise which has attracted the support of leading global cleantech investors.”

Laurence Smith, a University of Reading lecturer in agricultural business management, who is leading the UK part of the project, said: “There is already good evidence showing how agroforestry is helping farmers to fight back against climate change.

“Yet only a handful of farmers across Britain and Europe have begun farming with trees. Our project plans to find out what’s stopping them.”

Adam Stephen (left) of UKAEA with Andrew Larkins of Sygensys at UKAEA’s Culham Campus

HAMPSHIRE AND WILTSHIRE-BASED PARTNERSHIP GRANTED INNOVATE UK FUNDING FOR WIND-POWERED LARGE SHIPS

A project from the University of Southampton and Wiltshire-based Smart Green Shipping has received Innovate UK funding to investigate the potential of wind power to cut carbon emissions at sea.

The Winds of Change project, which retrofits large vessels with wing-sails will see the university team create new tools to predict how ships fitted with the FastRig wing-sails, developed by Smart Green Shipping, perform on the ocean.

Lead scientist Dr Joseph Banks, from Southampton’s Marine and Maritime Institute, said: “Ships powered by wind is obviously nothing new – but almost every large vessel operating today is powered by fossil fuels, leaving a lasting mark on the environment.

“While new wind-assist technologies are being developed, many are not ready for market and their predicted fuel savings have not been independently verified at sea, which is why UK-funded research projects like this are so important.

“This is an innovative project because the technology can be retrofitted to pre-existing vessels to quickly reduce emissions from the existing ships and help create quieter, emission-free ships in the future that do no harm to ocean environments and improve air quality in ports, towns and cities.

“Our team of researchers will investigate the complex interactions between the wing-sails and the ship hydrodynamics enabling accurate predictions of vessel

performance which will be compared to the demonstration vessel Pacific Grebe as part of the project.

“This will require innovative numerical simulations backed up by experiments conducted in our highly instrumented 138-metre Boldrewood towing tank and RJ Mitchell wind tunnel.”

The grants for the Winds of Change project were provided by the Department for Transport and Innovate UK.

As part of the two-year development programme, scientists will test the impact of a retractable 20-metre FastRig wing-sail retrofitted on commercial ship the Pacific Grebe – a British 105-metre vessel.

First phase of industrial units at Waterlooville’s Proxima Park fully let

All units are now taken in the first phase at Proxima Park, a new 472,400 sq ft industrial and warehousing scheme in Waterlooville.

The site near Portsmouth, named for its proximity to major road networks, was developed by Equation Properties. CBRE served as joint agents for phase one alongside Vail Williams, which operates out of Portsmouth’s Lakeside North Harbour.

Units ranging from 3,064 to 22,357 sq ft have been let to occupiers including a manufacturer, joinery supplying doors and windows to UK housebuilders, and family baker Warburtons.

Phase two of the scheme will offer larger units between 41,441 and 126,500 sq ft. Coopers Fire, which manufactures and installs fire safety measures, has been the first firm

to pre-let at phase two. The firm will make Proxima Park its new headquarters, taking 45,000 sq ft of office and factory space.

Russell Mogridge, who heads the industrial agency team at Vail Williams’ Portsmouth office, said: “Proxima Park meets the distribution and logistics needs of forward-thinking companies, with a population of more than 1.55 million reached within just 45 minutes.

What the wing-sails will look like. Credit: Smart Green Shipping

FAREHAM UNDERGRADUATE’S DOUBLE WIN AT BUILT ENVIRONMENT APPRENTICESHIP AWARDS

Annabel Huffer, an apprentice at the Fareham offices of property group Eddisons, took home a double win at this year’s Built Environment Apprenticeship Awards in London.

The awards were held by Reading’s University College of Estate Management (UCEM), where Annabel is completing the fourth and final year of her degree apprenticeship.

She was first named Undergraduate Apprentice of the Year, before receiving the prestigious Principal’s Choice Award for her “passion to bring about diversity in the built environment, advocacy for apprenticeships, outstanding work and

support for new professionals in the industry.”

Annabel said: “It’s a huge and unexpected honour to win these two awards, especially during the final week of my degree course. My colleagues and employer have supported me throughout the apprenticeship, sharing their knowledge and expertise at every opportunity, and UCEM have also been exceptional.”

As an Inspire Ambassador for the Royal Institution of Chartered Surveyors (RICS), which sees her promoting young people in property, she added: “A more diverse workforce, combined with the knowledge of experienced surveyors, can only be a

good thing for the industry. Young people bring fresh ideas and are more receptive to using new technology to increase efficiency.”

Annabel joined Eddisons after A levels and recently bcame its only GVC (General Visual Line of Sight Certificate) certified drone pilot. She is one of more than 360 employees at the firm, which expanded into the South East last year with the acquisition of Hampshire-based Daniells Harrison.

Director Chris Daniells said: “Annabel is an exceptional young property professional and deserves this public recognition for her outstanding work and superb attitude.”

Hampshire’s Onecom buys customer base and operating assets of Portsmouth firm On-Site Connect Limited

Hampshire-based business communications technology and cloud communications specialist Onecom has acquired On-Site Connect Limited’s UK customer base and operating assets. This is Onecom’s second acquisition of 2023 and its 10th since private equity firm LDC invested in 2019.

The transaction brings the Portsmouthbased On-Site team, business assets and customer contracts into the Onecom Group.

Martin Flick, CEO of Onecom Group,

whose headquarters is in Whiteley, said: “The geographic proximity of the On-Site operation and the complementary nature of the household name customer base with our existing customer family make this transaction a perfect fit in our M&A strategy.

“Our acquisition growth plan is to continue to acquire strong businesses that share our culture, values and ethos to enhance our presence and technical capabilities.

Founded in 2002, Onecom employs more than 600 people in offices around

the UK and counts Vodafone, Microsoft, Google, Mitel, Samsung, Apple, Gamma and Five9 among its strategic partners.

Darren Burnett, founder of On-Site Connect, said: “Finding the right home for customers, and the long-serving team that support those customers, was really important to me.

“The Onecom team ticked all the boxes and made the transaction efficient, straightforward and practical. I know my valued customers and staff are in safe hands.”

UCEM Principal Ashley Wheato with Annabel Huffer and Amanda Clack, UCEM Chair of the Board of Trustees. Credit: UCEM

PORTSMOUTH’S MARITIME SKILLS ACADEMY AGREES TRAINING PARTNERSHIP WITH RED FUNNEL

The Maritime Skills Academy in Portsmouth has announced a threeyear training partnership with Red Funnel, which operates ferries between Southampton and the Isle of Wight.

Staff at Red Funnel will have access to MSA’s 270-degree bridge simulator, which can recreate a variety of potential scenarios by drawing from a library of ship models and port areas.

Leanna Lakes, Operations Director for Red Funnel, said: “The bridge resource management (BRM) courses are focused on standardising our procedures and ensuring our deck

officers and deck crew continue to develop their expertise.

“It’s a world-leading facility and the team at MSA have created a bespoke BRM course that reflects our procedures and area of operation.

“Our team will benefit greatly from this new simulator and the variety of exercises available, which are vital to keep our crew and passengers safe on their journeys with Red Funnel.”

The firm joins a portfolio of clients for MSA which includes Carnival Cruises, Windstar Cruises, P&O Ferries, and Virgin Voyages.

Bournemouth’s OnBuy ranked as fastestgrowing eCommerce business in Europe

OnBuy.com, a Bournemouth-based online marketplace, has been named as the fastest-growing eCommerce business in Europe in the 2023 FT 1000.

The company has seen a massive 3,402 per cent growth since 2018, taking it to 25th on the annual list which ranks Europe’s businesses by revenue growth.

The site, which has approximately six million customers and offers more than 35 million products, stands out by not stocking its own inventory, meaning it is not in competition with its sellers.

Hampshire-based Serco lands US healthcare contract worth up to $690m

Hampshire-based Serco has been awarded a contract by the US Department of Health and Human Services, Centers for Medicare & Medicaid Services to continue to support eligibility determinations for people buying health insurance through the Federal Health Insurance Exchanges.

The four-year, seven-month contract has a one-year base period and four option periods and is due to start on July 1 this year. The estimated total value to Serco, subject to workload volumes, is approximately $690m if all option periods are exercised.

CEO, Cas Paton, said: “Inclusion on the FT 1000 as Europe’s fastest-growing eCommerce business is the culmination of a lot of hard work. I’m incredibly proud of the whole OnBuy team and the brilliant work that we have done as a group to get into this position.

“I attribute the business’ strong growth to our collective commitment to providing a fairer ecosystem for both sellers and buyers. It’s really important to us as a company that our values remain consistent, with fairness and transparency always at the heart of the business.”

CMS serves the public as a trusted partner and steward, dedicated to advancing health equity, expanding coverage and improving health outcomes, and now oversees the health coverage of more than 150 million people.

Serco, whose headquarters is in Hook, will assist qualified citizens to receive health insurance through the Affordable Care Act.

Mark Irwin, Serco Group Chief Executive, said: ‘We are grateful for the trust CMS has placed in us to continue to deliver these vital eligibility services.”

Red Funnel staff will be trained on a 270-degree bridge simulator. Credit: Red Funnel

KENT IS LEADING THE WAY IN JOURNEY TO NET ZERO

Horsham-based Ceres Power to prepare demonstration of clean hydrogen fuel technology

Horsham-based Ceres Power is embarking on a two-year collaboration with German firms Bosch and Linde Engineering to validate the performance, cost and functionality of its solid oxide electrolyzer cell (SOEC) technology.

Kent is better placed to make the journey to net zero faster than many other counties, according to the team behind the first Energy, Tech & Sustainability Expo, hosted by Discovery Park.

More than 220 businesses attended the event at the science and innovation park, near Sandwich. The event was designed to answer the big questions about how to help local companies, and Kent as a whole, beat the government’s 2050 targets.

The county has one of the most diverse energy supply chains, including on and offshore wind, solar farms, battery storage, anaerobic digesters, energyfrom-waste, biomass facilities, as well as electrical interconnectors linking Kent and mainland Europe.

Mayer Schreiber, CEO of Discovery Park, said: “At the moment 80 per cent of Kent’s energy consumption, including gas, electricity and fuel is carbon-based, which shows the scale of the challenge. We’re fortunate on site to have many of our tenants actively seeking a solution to the issue of improving our environmental performance.

“This event highlights the scale of the

task we face, but also the commitment to reach the ambitious target, with Kent leading the way.”

Simon Barnes, Manager for Strategic Partnerships at the University of Kent, added: “The challenges facing business are how to finance the move to net zero; how to access the skills needed to make it happen; and what technology will be needed to make it a reality.”

David Gowans, Head of Industry at Barclays Eagle Labs, added: “We want to play a leading role supporting climate and sustainability-focused businesses, and through our Eagle Labs, help EnergyTech businesses with the tools to help them connect, grow and scale.”

Expo attendees could climb aboard the world’s first hydrogen-powered doubledecker bus, developed and built by Wrightbus, the Northern Ireland-based business bought in 2019 by Jo Bamford, son of British businessman Anthony Bamford.

The event was supported by Canterbury Christ Church University, the University of Kent and University of Greenwich, alongside Barclays Eagle Labs, Cummins and Veolia.

The companies are preparing a onemegawatt SOEC system ready for demonstration in 2024 at a Bosch site in Stuttgart. This system will involve the electrolysis of water to produce hydrogen, a green and low-cost fuel with an important role to play in hardto-decarbonise industrial sectors.

Ceres has put aside £100 million for the project, which builds upon its 100kW electrolyser module currently in testing. Results have shown the smaller module to produce green hydrogen at a rate of just under 40 kWh per kilogram, representing a 25 per cent boost in efficiency over technologies running at lower temperatures.

The company will benefit through the collaboration from the industrial process engineering expertise and global footprint of Linde Engineering, as well as the product industrialisation and mass manufacturing experience of Bosch.

Phil Caldwell, CEO of Ceres, said: “The vision for our partnership with Linde Engineering and Bosch is to set a new industry standard for solid oxide electrolysers, leading to widespread adoption in industrial applications.”

From left to right: Peter Bridge, Veolia Water Technologies; Simon Barnes, University of Kent; Abbie Kempe, Canterbury Christ Church University; Jane Kennedy, Discovery Park; Amanda Allan, Barclays Eagle Lab and Professor Peter Griffiths, University of Greenwich, at the Energy, Tech & Sustainability Expo with the world’s first hydrogen-powered double-decker bus

PANATTONI BEGINS SPECULATIVE DEVELOPMENT OF BURGESS HILL LOGISTICS SITE

Developer Panattoni has begun speculatively developing a 452,469 sq ft lastmile logistics development in Burgess Hill.

The works started after Mid Sussex District Council granted the developer planning consent at the end of January and comes following the purchase of sites in Crawley and Brighton.

Agents at the 22-acre Panattoni Park, which fronts the A2300 dual carriageway and offers access to the A23/M23 and

Gatwick Airport, are DTRE, Lambert Smith Hampton and SHW.

The developer intends to construct 14 units, with planning in place for light industrial, general industrial and warehousing and distribution.

David McGougan, Development Director at Panattoni, said: “We are pleased to be bringing forward this first of three southern developments planned for 2024.

“We will have all units completed and ready for occupation in the first quarter of 2024. We forecast that the delivery of these new units will provide up to 1,000 jobs to the region.

“We are delivering a wide range of unit sizes from 8,136 up to 142,815 sq ft in one phase to meet the high occupier demand for industrial and logistics space in the south market, where there is a critical lack of stock to serve such a big market of consumers.”

Employee ownership model sees turnover double at Woking’s Environet

Turnover at Woking-based invasive plant specialist Environet has doubled since it transferred ownership of the company to an Employee Ownership Trust (EOT) in 2020.

During the pandemic, the firm established the Trust which now owns 100 per cent of the business, with all staff as beneficiaries.

The EOT model is gaining popularity with Richer Sounds, Riverford Organic Farmers and Go Ape examples of the more than 1,300 UK companies

to adopt the model. Across 2022, HMRC received 430 applications for Employee Ownership Trusts, up from only 19 five years before.

Environet, which specialises in dealing with Japanese knotweed, bamboo and other invasive plants, was founded in 1996 by Nic and Bertie Seal, who decided to transfer ownership of the company to its staff as a means of rewarding the team and ensuring the longevity of the company.

Once ownership was transferred, the

senior management structure was immediately strengthened.

Nic said: “Transferring ownership of Environet to our staff is the best decision we could have made. Succession planning is never easy, but our top priority was ensuring a bright future for the company and job security for everyone who has worked so hard to make it a success.”

All staff who have been at the company for 12 months are entitled to an annual tax-free bonus of £3,600.

How the logistics site in Burgess Hill will look. Credit: Panattoni

INNOVATING IN THE HEALTHTECH ECOSYSTEM

As you board a train to Kent from London St Pancras, health and tech loom large. The Bioresearch centre, the Francis Crick Institute is on one side, the huge new Google building on the other. An hour later, you’re in another emerging tech cluster at Discovery Park in Sandwich, where innovative businesses are harnessing data and AI to tackle fundamental health challenges, writes David Lee.

“It’s exciting that the new Thanet Parkway rail link is bringing these two clusters even closer together,” says Jane Kennedy, Chief Business Officer at Discovery Park. “Global funding for healthtech is rising exponentially; healthtech companies raised $51.3 billion in 2021, a 280% increase on 2016. There are huge opportunities to use data and AI for tech-enabled healthcare solutions. My role at Discovery Park is to catalyse innovation and create a knowledge economy community, creating a breedingground for brilliant Healthtech ideas.”

Supporting business growth

Kennedy says strategic partners are vital to delivering that vision, including Barclays, which has one of its Eagle Labs to support business growth at Discovery Park, and Canterbury Christ Church University, which plans to create a Data Lab there.

“We’re bringing together universities, the NHS and companies new and old [there are 160+ businesses at Discovery Park] and putting a support system in place to make things happen,” Kennedy explains. “The Barclays Eagle Lab supports start-ups, particularly those focused on tech innovation, and links around 800 Healthtech businesses across the UK.

“Eagle Labs runs investor readiness programmes and has a Demo Directory, so firms can create pitch videos and match them to investors. It’s a ‘speed dating’ investment opportunity to project our companies and raise their profile. Growing tech businesses can work in their business in our recently refurbished lab space and on their business in the Barclays Eagle lab.”

Delivering innovation

Kennedy says Discovery Park has big ambitions to deliver the innovation the world needs.

“Innovators are tapping into people’s increasing predisposition to use devices to record health data,” Kennedy says.

“The NHS in its current state cannot cope and will move more from healthcare to sick care as individuals take more responsibility

to look after themselves. Part of the Healthtech challenge is getting people to share their data in the same way as they give blood – to support the greater good. There’s still work to be done on that.”

Professor

Mohamed Abdel-Maguid, Pro Vice-Chancellor for Science, Technology, Engineering and Mathematics and Professor of Smart Systems at Canterbury Christ Church University, explains how he sees the university slotting into the innovation ecosystem at Discovery Park: “Innovation is not a solo game. It thrives in collaborative environments like Discovery Park, where partners work together to create value chains. Without

such clusters, our ability to conceive novel ideas and transform them into economic and social benefits is compromised. At Canterbury Christ Church University, we recognise the critical role of partnerships in driving innovation and fostering a vibrant ecosystem of discovery and progress.

“Working collaboratively helps address the barriers businesses face in accessing talent and resources. We hope the Data Lab will help small businesses exploit brilliant ideas, by collecting and curating local data and making it accessible to the business community.

“We will wrap this around skills development, as we increasingly embed digital and data/AI native skills throughout the region’s workforce.”

Prof Abdel-Maguid describes the Data Lab as a “big vision, rather than a big bang”. He explains: “We will begin with a small base at Discovery Park, connecting businesses with students and research capability to create a transdisciplinary environment for datadriven innovation. It’s about thinking global and acting local; how can we think about global challenges while acting to benefit the local and regional community? Our big vision recognises that AI will change the workplace and helps prepare people for it. How do we use AI to unlock human potential? This requires a different mindset.

“The combination of data and AI presents an opportunity for truly personalised and integrated care services. AI can analyse vast amounts of health data, identifying patterns and anomalies to predict outcomes. This technology also has the potential to radically improve resource productivity, support more accurate and timely decision-making, and democratise access to digital technologies. By shifting towards user and community-centric care, we can move away from a provider-centric model and ensure that everyone has access to the care they need.”

Jane Kennedy summarises the role of Discovery Park in realising the ambition: “We are an enabler. We create serendipity. We bring people together who would never normally meet. We provide platforms for the trailblazers, the dreamers and the big thinkers and look where the possibilities lie.”

CASE STUDY 1

SCITEGRITY was created by two former Pfizer employees to allow the pharma industry easy access to global information about regulation.

“Our entire company and solutions are built on data and technology,” says Joe Bradley, one of its co-founders.

Scitegrity uses advanced algorithms and “highly curated and proprietary” data to automatically check millions of chemicals (both common and completely novel), assessing whether they are regulated in 30 different countries – “to a level of accuracy far beyond what a human could achieve”. Weekly data updates ensure constant relevance.

Bradley adds: “In addition, we have encoded the chemical space of all known drugs of abuse, and can run Drug Abuse Potential assessments for novel chemicals before they enter clinical trials - a requirement of the regulators.”

Being at a “large, diverse and multitenanted site” like Discovery Park is vital, says Bradley, with Pfizer’s presence as a major anchor tenant allowing the Park to grow and thrive, attracting investment and new tenants.

In the next five years, Scitegrity plans to diversify into other related areas of chemical regulation, of greater interest to that outside pharma. “We believe our technology could be transformative for improving and simplifying compliance to chemical regulations,” Bradley says. “This includes areas such as dangerous and hazardous chemical regulations. Being able to talk to the right people in the right companies is imperative to this and being in Discovery Park, with its networking opportunities, both onsite and beyond, is an important part of this.”

CASE STUDY 2

Age Care Technologies, founded in 2018 by former hospital consultant Ian Philp, uses decades of research data from across 50 countries to identify 56 threats to older people’s independence, wellbeing, and health. Using digital technologies, it then develops methods to help older people report concerns and connect them to sources of support.

The company aims to reach 100 million older people globally by 2030, adding an average one extra quality year of life per older person and saving the global economy $46 trillion by reducing the need for long-term care and support.

“It’s a huge goal, but we know the methodology works and we know we can get it to older people at scale,” Philp says. “Two-thirds of the most significant threats to older people’s independence, wellbeing and health are not reported. The No 1 under-reported concern is loneliness. By identifying those threats, we can develop methods to help older people report their concerns and connect them to sources of support. Also, aggregating data across populations gives a view of older people’s real needs and helps policymakers.”

The company won the inaugural 2021 United Nations WSIS Prize for Innovation for Healthy Ageing. Philp was gob smacked, but has put semi-retirement on hold to try to achieve that “huge goal” –from Discovery Park.

“The entrepreneur and business support ecosystem here creates a perfect environment for business growth,” Philp says. “Ease of connection with universities, the NHS, and Government agencies provides a platform for evidence-based Healthtech product development and demonstration of impact. The Pfizer legacy is an important factor in the ongoing development of the health sciences sector.

“More widely, the UK has a global reputation for Healthtech innovation – with enormous potential for growth in globalarkets through creating and exploiting Healthtech intellectual property.”

GEORGE THE BEAR IS BACK, WITH A CLASSIER NEW LOOK

Hofmeister, the Bavarian-brewed beer which, perhaps surprisingly, has its headquarters in Dorking, Surrey, has brought back its George the Bear mascot. But this time with a classier new look.

George’s new look matches the new direction taken by the brand since it was relaunched by Richard Longhurst and Spencer Chambers after the pair bought it from Heineken in 2016 and re-created it to meet the German beer purity law introduced in 1516 (this was when the Bavarian Duke Wilhelm IV stipulated that only water, barley and hops were allowed to be used as key ingredients for beer production).

Hofmeister is now brewed in Bavaria, having been originally brewed in Berkshire until 2004, with George disappearing at the same time.

The mascot’s return comes as Hofmeister’s Seedrs crowdfunding campaign exceeded nearly £1,414,000 (as we went to print), exceeding its £1,300,000 target with a week to go.

Once the fourth biggest selling beer brand in the UK with a brand valued at £100 million, today Hofmeister still enjoys a more than 40 per cent brand awareness amongst UK adults in its category Hofmeister co-founder, Spencer Chambers, said: “He’s always been the elephant in the room for us and at some point we were always going to have to take that on.

“Now he’s back we hope he can help us take Hofmeister from being a new, challenger brand to being the UK’s most loved premium world beer”.

Canterbury beauty tech firm Sourcerie raises £1.8m pre-seed funding

Canterbury-based Sourcerie, a beauty technology firm, has raised pre-seed investment of £1.8 million.

The funds, from Playfair Capital, Vorwerk Ventures and other angels, will be used to fuel the next stage of the company’s growth.

Sourcerie uses data to power recommendations on its marketplace,

Global audio-visual leader Biamp sets up HQ in Brighton

Biamp, a global leader in audiovisual solutions, has relocated its UK headquarters to Brighton.

The new HQ is in Middle Street in the city centre and contains three floors of offices which were fitted out by BRAC Contracts.

Re-assessments of office requirements spurred on by the COVID pandemic were the primary reason for Biamp’s move.

The offices at Brighton were chosen based on their close proximity to several of the team members’ homes and the city’s strong connections to both London and Gatwick Airport.

matching brands and products to more than a billion distinct user profiles.

Kristin Cardwell and Alex Beyer started Sourcerie after successful careers spanning tech, beauty and startups.

They felt there was no easy way to find out what products irritated and what would improve their skin, but found the best recommendations came from other people.

Sales Director at Biamp, Stephen Patterson, said: “The events of recent years made us evaluate our office needs and Brighton ticked so many boxes for us. Whilst it would have been easy to opt for an off-the-peg, ready-renovated office, we were keen to inject the team’s personality into this new base and that’s what we’ve done.”

RELATIONSHIPS KEY TO REDWOOD TECHNOLOGIES’ SUCCESS

Sean Taylor says business relationships as vital today as when the company started out 30 years ago

By Stephen Emerson, Managing Editor

It started out 30 years ago with two brothers, emboldened self belief and a shared strong work ethic, but it was an understanding of the power of enduring business relationships and a considered approach to risk that kick-started Redwood Technologies’ early growth and continues to propel its business forward.

Bracknell-based Redwood Technologies, founded by Sean and Martin Taylor in 1993, is a home-grown tech titan which now employs 500 people, turns over more than £70 million and has operations around the world including US, Japan, Germany, the Netherlands, Ireland, Italy and Singapore.

Redwood Technologies is the holding company behind cloud solutions provider Content Guru, which uses the group’s cloud platform ‘storm’ to manage missioncritical ‘omni-channel’ communications and integration with customers’ IT systems.

Content Guru’s services are used by more than 1,000 large enterprises in sectors such as financial services, retail, travel, utilities and the public sector. A missioncritical service example is that storm processes all 999 calls to ambulances in the UK.

Its chief executive, Sean Taylor, moved to Berkshire with his family in the 1970s.

He studied at King’s College London where he did a degree in electronics and computer science and then began his career in the early nineties with a fast-growth US IT company at its regional European HQ in the Thames Valley.

The business was growing at an exponential rate and Sean was promoted and offered a post in California in Silicon Valley where the pull of starting out on his own began to gain momentum.

“They thought we were mad”

Sean said: “When I was leaving my job in the US, more than 100 people came to my office to wish me good luck.

“They all asked the same questions such as how much money we had (“£20,000”), how many staff (“three”) and what our sales and marketing strategy was (“Some of our contacts have said they’re interested in buying from us”). I think they thought we were mad.”

Sean, who lives in the Thames Valley and is married with two teenage children, said it was the early relationships forged during his stint in Silicon Valley that convinced him to take the plunge and start out on his own.

He said: “We worked really hard and those people who said that they were going to place an order with us did so and some were incredibly generous. It was really fun and the kind of thing you see in a film, working through the night with pizza boxes on the desk.

Sean Taylor, Chief Executive, Redwood Technologies

When you say ‘yes’ to proposals of course you are liked. Dealing with people’s reactions to the ‘no’ is the challenging part of the job.

We worked really hard and those people who said that they were going to place an order with us did so and some were incredibly generous.

“One customer placed a £150,000 order with us and paid us cash in advance. We turned over almost £1 million in our first year. Some of our customers from 20 years ago are still with us. One individual has been with five different companies and brought us in as a safe pair of hands at each of those organisations.”

Looking back to the early days of Redwood Technologies, is there anything Sean feels that he would have done differently?

“There are things we sold for a tenth of the price than they were worth”

He said: “In the early years we dealt with a lot of older, more canny operators who really took advantage of our inexperience. There are things we sold for a tenth of the price they were worth.

“I developed a product we sold to a customer for thousands of pounds and they resold it for millions.”

Sean says having a safety net and a flexible plan is crucial for people thinking of going out on their own and he recalled what he would do if, after a year, Redwood Technologies failed to turn a profit.

He said: “I had in mind a mental safety net, which was if we were at the end of year one and couldn’t see a path to success that I knew who I would go and work for.

We then understood clearly what failure meant and that took away the unknown of failure and reduced that stress.”

Managing multiple personalities and leading teams is crucial to growing enterprises, however management teams often struggle to tame egos and this can have a detrimental effect on growth.

Stick with your convictions in management

Sean said it pays in the long term to stick with your convictions in management.

He said: “When you say ‘yes’ to proposals, of course you are liked. Dealing with people’s reactions to “no” is the challenging part of the job.

“In many cases the best decision is a crowd-sourced one but sometimes an individual has the best answer and when that’s the case you should not dilute the quality of that solution.

“Don’t shy away from saying no when that’s the right answer but always ensure you can justify why.”

Redwood Technologies is embedded within the Berkshire community with the company, its CEO and staff all giving time and money to charities to improve the lives of people living in the county and beyond.

While giving back is standard practise in

the corporate world, Sean and his team approach their charitable tasks with a hunger and veracity.

He explains the poignant reason behind his own personal drive to give back.

“More than 20 years ago, a good friend of mine committed suicide. I know a few people who have done so, however this was something I did not see coming as, on the face of it, they seemed such a happy person and full of the joys of living, so it was a big shock to a number of us.

“From that point onwards, I decided I was going to do whatever I could to make people’s lives better and I have stuck with that for more than 20 years.”

Redwood Technologies has fought to remain ahead of the tech curve and has products which push the boundaries in the Internet of Things (IoT), data management and Artificial Intelligence (AI) spaces.

One area of particular excitement is ‘generative AI’ technologies such as ChatGPT.

He said: “This is going to be a game changer and will drive down the cost of software engineering in a similar way to that we’ve seen with compute power and communications bandwidth.

“Suddenly the ability to communicate with technology in a similar way to that we see in science fiction films feels very close.”

I had in mind a mental safety net, which was if we were at the end of year one and couldn’t see a path to success that I knew who I would go and work for.

BANKING PARTNERSHIP A KEY CORNERSTONE OF EMPLOYEE OWNERSHIP

Shawbrook Bank’s Steven Munt on how a long-term approach to funding

success

By Stephen Emerson, Managing Editor

Your business is your life’s work, so selling it can be a stressful experience. Concern over achieving a fair price, be it through a trade sale or by going down the Employee Ownership (EO) route is often a key driver of anxiety levels.

For business owners opting for EO, having a clear strategy for how to fund your exit can mean less sleepless nights and, ensures you receive what your business is worth in an ordered process.

Business owners exiting through EO models, be it an Employee Ownership Trust (EOT) or employee shareholding, have two funding options to consider.

The first sees them leave initially with a reduced day one payment, and receive compensation for the business over a number of years as their former enterprise generates profits and in turn pays them

back. The second involves receiving an immediate payment, for the full or partial amount of the sale amount, from a funding partner with the debt then transferred to the company and paid back over time.

Steven Munt, Senior Director at Shawbrook Bank, said the relationship companies destined for employee ownership have with their bank or funding partner is of

paramount importance when going through a sales process.

He explained: “We pride ourselves on our relationships.

“When you come to Shawbrook you are typically planning to execute an event that needs financing. However, with any opportunity comes effort and turbulence.

A Business Growth Series event

An Introduction to Employee Ownership Trusts

Where: Easthampstead Park Hotel, Wokingham

When: 22 May from 8.30am to 3.30pm

Visit: thebusinessmagazine.co.uk/events

is vital to

Steven Munt Senior Director at Shawbrook Bank

Companies planning to move to employee ownership need to consider if they have the management bandwidth, if their finance function is robust and if they have the right advisers working for them.

“You have to have someone alongside you who understands all of that and who will hold your hand through the good and the bad.”

The Shawbrook director says businesses should remain ambitious even after they have completed their sale into EO and should work with their funding partner on a long-term plan that encapsulates future growth potential.

Steven added: “A business doesn’t just stop when it transitions into employee ownership, and the new employee ownership team shouldn’t lose sight of maintaining the business’ performance.

“I wouldn’t consider employee ownership and ongoing support different from each other. We structure our transactions in a bespoke manner and base each facility on each individual company’s requirements.

“It depends on the strategy of the business and what they are looking to achieve in the years to come. They may be aiming for organic growth or planning acquisitions. I don’t think doing an EOT should stop the business doing this.”

Transitioning to EO is no guarantee of success with many businesses struggling to keep the entrepreneurial flame alive once their founder steps back. However, a welldrilled organisational structure can enhance the chances of success.

Steven said: “The business has to continue to be profitable and to generate cash.

“Companies planning to move to EO need to consider if they have the management bandwidth, if their finance function is robust and if they have the right advisers.”

He explained: “EO suits certain types of business more than others. People focused businesses, such as those in professional services, tend to have better EO outcomes.

“The segregation between managers and employees [or staff] isn’t as strong as it is in industries such as manufacturing and wholesalers which makes it easier to get the culture right.”

Chris Maslin of Kent-based Go EO, who transitioned his own accountancy firm to EO two years ago, helps smaller companies of around 20 staff or less transition to EO where there is rarely a requirement for upfront funding.

He said: “We are aiming at the smaller end of the market and in most of the cases we are looking at a £1 million total valuation.

“I love the model. I think it is brilliant. I wanted to use my skills and background to try and aim at the smaller end of the market but coming from a template-driven systemised approach.

“I saw EO as a guilt-free way of cashing in a bit and stepping back. The business was growing but I had no dreams of world domination and increasingly the more the business grew, the more my stress levels did too.

“I also had a senior team that were excited and could take it forward.”

Many businesses that transition to EO are highly cash generative, have a strong balance sheet and may never have had to take on debt before.

Steven says this can be a big cultural shift for management teams taking control of the business, and choosing the right banking partner can again be crucial.

He said: “A business considering transitioning to EO may not have operated in a debt environment before.

“We flesh out what the business relationship will look like in the early stages, what the reporting requirements are, what a good system and procedure might look like inhouse for financial reporting.

“The relationship with someone like Shawbrook is very different to one that you might have with a larger clearing bank, where portfolio management is commoditised.

Seeing the transformation that EO can bring to a company and its staff is one of the most rewarding parts of the job for Steven.

He added: “We have helped a fair number of companies now and as deals people there is always that enjoyment of helping people achieve a goal.

“When you can walk into a business that has transitioned to EO and see smiling faces, I think that has got to be a natural high point of it.”

A Business Growth Series event

An Introduction to Employee Ownership Trusts

Where: Easthampstead Park Hotel, Wokingham

When: 22 May from 8.30am to 3.30pm

Visit: thebusinessmagazine.co.uk/events

When you can walk into a business that has transitioned to EO and see smiling faces, I think that has got to be a natural high point of it

03 Southampton’s Clarke Willmott continues expansion with senior appointments

National law firm Clarke Wilmott has appointed Karen Higgins (right) as head of ESG. Karen has 18 years of experience in the industry, with her previous roles including Head of Sustainability at Grant Thornton. Rachel Ramsay (left) has been appointed as the firm’s new internal communications manager and brings 25 years of experience in publishing, journalism and internal communications to the role.

Clarke Wilmott also appointed Sarah Brickell (centre) as its new Head of Communications. 03

01

appoints

Southampton accountancy firm PKF Francis Clark has appointed Subhash Sreedharan as chief information officer. Subhash, who joins from retirement home developer McCarthy Stone where he was director of technology, has worked for multi-national companies with experience across multiple industries.

02

Kathy Kyle Bonomini has been selected as Dorking Town Partnership’s new Business Improvement District (BID) manager. Kathy’s new role involves leading the delivery and day-to-day activity of all businesses in the Business Improvement District. She will report to the Dorking BID Board of Directors.

Lichfields announces senior promotion

Lichfields, the Thames Valley planning and development consultancy, has promoted Sarah Watts to Associate Director. Sarah joined the firm as a planner in 2013, after finishing her Master’s in Development Planning at the University of Reading. She was promoted to Senior Planner in 2017.

05

05

The Solent Cluster has appointed Zoë Colbeck as Project Manager in its efforts to promote the Solent region as a leading centre for low carbon investment. Zoë has previously led funding plans for sustainable projects and represented high profile organisations in both broadcast and live events.

06

Osborne Clarke

new Thames Valley Office Head

International legal practice Osborne Clarke has appointed Corporate Partner Rob Hayes as Head of its Thames Valley Office in Reading. Rob joined the firm in January 2021. Highlights of his career so far include working with Nexeon on a $200 million investment in the manufacture of battery materials, as well as advising on the sale of tech spin-out Lumenisity to Microsoft.

PKF Francis Clark

new Chief Information Officer

Kathy to lead Dorking’s Business Improvement District

Solent Cluster hires new Project Manager

announces

07

Six senior promotions strengthen Amazon Filters

Camberley-based industrial filter specialist Amazon Filters has made six senior promotions.

Matt Fidler (top left) is Manufacturing Engineering Manager while Kris Stobieniecki (bottom left) is Technical Manager. Mihai Holban (top centre) and Gracjan Stasik (bottom centre) are now Manufacturing Engineers. Heather Winter (bottom right) is Lead HR Business Partner in the company’s Human Resources team. Former HR Manager Ruth Pappadakis (top right) steps up to become Head of People and Culture. 09

08

08 Rolls-Royce appointment for Tokamak Energy

Tokamak Energy has appointed Warrick Matthews as Managing Director and Chief Commercial Officer. Warrick joins the fusion energy innovator from RollsRoyce where he enjoyed a 24-year career holding several leadership positions, most recently as Chief Procurement Officer for the Civil Aerospace division.

09

Neil Phillips steps up to Managing Director at CMA

Southampton-based CMA Recruitment Group has promoted Neil Phillips to Managing Director from his role as Operations Director. He will be working alongside Director Mark Smith, who joined as a trainee recruiter in 2007 before finally earning a place on the board earlier this year.

10

10 Rain Newton-Smith rejoins CBI as Director General

Rain Newton-Smith, former CBI Chief Economist has taken on the role as Director General of the CBI, following the departure of Tony Danker in April. Rain, who lives in Oxfordshire, is returning to the CBI after a few months as Managing Director, Strategy and Policy, Sustainability and ESG for Barclays.

11 McLaren Automotive’s board gains three senior leaders

Woking-based McLaren Automotive has filled three positions on its executive management board.

Joerg Laser (left) takes on his new role as Chief Procurement Officer, bringing experience in purchasing, logistics and supplier quality in the global automotive industry. He has previously worked at General Motors, MAN Trucks, Autoliv and, most recently, WayRay AG.

Emmanuele Raveglia (centre) joins as Vehicle Line Executive Director, having served in a similar role at Ferrari. Charles Sanderson (right) returns as Chief Technical Officer after four years with Rivian Automotive.

FULL EXPENSING: DOES IT GO FAR ENOUGH?

In the 2023 Spring Budget the government announced the largest ever Capital Allowances incentives in the form of Full Expensing. Many have welcomed this simplification, but will it have the desired impact of encouraging businesses to invest, writes Andrew Hawley, Corporate Tax Partner at national audit, tax, advisory and risk firm Crowe in Reading?

move to a headline Corporation Tax rate of 25% going ahead from April 2023.

As a first step, in Autumn 2022 the feared cut in the quantum of the temporary Annual Investment Allowance (AIA) back to £200k was replaced by a more permanent £1 million per annum ‘first-year allowance’ for qualifying expenditure. However, many businesses felt this was insufficient to stimulate long-term investment confidence coupled with the headline Corporation Tax rate increase.

Providing long-term certainty

In today’s uncertain economic climate many businesses are nervous about committing to current and future investment both locally in the Thames Valley, and throughout the UK. It is thought that this is one of the factors holding back the UK economy and so additional incentives and long-term certainty is essential.

To stimulate investment during COVID-19, the government introduced the SuperDeduction in 2021. Claimed to be the biggest two-year business tax cut in modern British history, the move to encourage companies to make additional investments, and bring planned investment forward always appeared to have a shortterm life span. Due to its temporary nature, this didn’t provide enough certainty for business leaders to commit to long-term investment planning.

With the expiry of Super-Deduction for qualifying expenditure incurred up to 31 March 2023, the Chancellor needed to further stimulate longer term view on investment, especially with a planned

The latest announcement at the 2023 Spring Budget of the Super-Deductions’ replacement ‘Full Expensing’ has been seen as an attempt to soften the impact on businesses facing the Corporation Tax rate hike. Full Expensing, subject to Finance Bill approval, provides companies incurring qualifying expenditure between 1 April 2023 and 31 March 2026 with at least a three-year foresight of investment planning over the two years that the Super-Deduction provided.

What does that mean for your business?

Companies within the charge to UK corporation tax investing in qualifying assets can benefit from immediate tax relief of 100% or 50% (depending on asset type) within the year of expenditure.

This is good news for companies that incur substantial expense on plant and machinery. However, for the vast majority of SME’s this is likely to have little impact given the availability of the AIA. Furthermore, Full Expensing will only be useful to companies to the extent they have profits against which capital allowances can be relieved. With many

capital investment projects having long lead times to the generation of profits, this will delay the benefit of Full Expensing and could for some companies, mean future relief is restricted under the loss relief rules in any given year where group profits exceed £5 million. Business leaders will need to structure and plan their long-term investments to ensure they are able to access the benefit of Full Expensing at the earliest opportunity.

Unfortunately, unincorporated businesses will not benefit from the new Full Expensing rules, but are entitled to claim the AIA, which offers the same benefits as Full Expensing for the investments it covers up to £1million of qualifying expenditure per year.

While Full Expensing is welcomed by many, there are cynics of the announcement who highlight that this new system combined with the shift from 19% to 25% Corporation Tax rate, means the actual relief for the new and the old systems are the same. Full expensing results in a 25p tax saving for every £1 invested. The Super-Deduction was deliberately set at a rate to achieve the same result (19% x 130% Super-Deduction rate equals 25%).

The timeously introduction of Full Expensing had reduced any incentive for companies to defer investment until the 25% rate applied (April 2023), but what is likely to aid longer term investment decisions is the Chancellor’s longterm ambition to make Full Expensing permanent, which given the time necessary for new investment to be confirmed, may be key to its effectiveness over time.

Should you require assistance with understanding how Full Expensing will impact your business, or with capital allowance claims in general Crowe can assist. Contact andrew.hawley@crowe.co.uk.

LEGISLATE RAISES $3.6 MILLION AS IT PREPARES FOR INTERNATIONAL EXPANSION

Legal technology company Legislate has raised $3.6 million as it prepares for international expansion this year.

The round was led by Parkwalk Advisors, with participation from Oxford Capital and several high-profile angel investors.

The Oxford University-linked start-up is building a software as a service (SaaS) platform to enable small businesses and landlords to easily create, sign and manage contracts.

Legislate’s platform is built on a patented knowledge graph technology which streamlines the contracting process and aggregates contract statistics to quickly unlock valuable insights.

Charles Brecque, Legislate’s founder, said: “Searching for basic information like contract start and end dates, or nuances in confidentiality terms across entire databases of contracts is painfully manual,

or impossible. Before working with us, we know that some of our customers would spend weeks doing this.”

“By allowing companies to create their own ontologies of terms and making them semantically searchable, we enable anyone in that business to search for information in contracts, even if they don’t have a legal background.

“That’s incredibly powerful for scaling companies where business teams need to review terms across hundreds of contracts quickly to understand exposure to risks,” he continued.

Last year the company was granted its second US patent for semantic document generation.

Customers primarily use Legislate for employment, consultancy, internal contracts, and terms of business agreements.

Kent’s Mortgage Advice Bureau reports growth despite mini-budget market shock

Sittingbourne-based Mortgage Advice Bureau (Holdings) plc has reported strong figures for 2022, though tempered by damage dealt to the mortgage market by September’s mini-budget.

The firm saw revenues up 22 per cent to £230.8 million and adjusted EBITDA up 15 per cent to £29.1 million on the previous year. It was also able to increase its market share of new mortgage lending to 7.5 per cent.

Controlling stakes were acquired in The Fluent Money Group, Vita Financial Ltd, and Aux Group Ltd, which together position the Mortgage Advice Bureau as a leader in the three largest sectors for mortgage lead

generation – estate agency, new build and price comparison websites.

Chief Executive Peter Brodnicki said: “I am pleased with our 2022 performance and market share growth.

“Prior to the mini-budget in September, the Group was on track for 2023 to be a record year of growth, despite an expected softening in housing transactions due to inflationary pressures.

“Although mortgage transaction levels have improved since the collapse post minibudget, they remain around 35 per cent down year to date compared to the same period in 2022.”

Stephen Hampson, Investment Director at Oxford Capital, added: “Investing in Legislate is investing in the future of machine-readable contracts. Their patented Knowledge Graph system sets them apart from other technologies and makes it simple for people without legal training to access contracts created by lawyers and manage them effectively.”

Resource Productions secures BFI funding for Berkshire film skills

The British Film Institute (BFI) has announced its renewed skills funding strategy, which will see a total of £8.1 million allocated to localised bodies like Berkshire’s Resource Productions.

This comes as Sara Whybrew takes over as head of the BFI’s National Lottery Skills programmes.

Resource Productions is set to receive £0.6 million over three years to develop a diverse pool of local filmmaking talent. This will involve the organisation working alongside Berkshire education and training providers such as the University of Reading and Shinfield Studios.

There is good reason for investment in the region – over the last five years, 58 per cent of film productions have used locations in London and the South East, accounting for 70 per cent of national spending in the industry.

THE LATEST DEAL ACTIVITY ACROSS THE REGION

Undisclosed

Ed-tech provider Marshall E-Learning (London)

was acquired by

HR software specialist Ciphr (Marlow, Buckinghamshire)

MARCH 2023

Undisclosed

Chartered accountants Wise & Co (Farnham, Surrey)

MARCH 2023

Undisclosed

Letting agents Stanley & Partners (Burgess Hill, Sussex) was acquired by was acquired by

accountants Shaw Gibbs (Oxford, Oxfordshire)

property services firm Leaders Romans Group (Wokingham, Berkshire)

Undisclosed

5G network specialist Blue Wireless (Singapore)

was acquired by

IoT connectivity firm Wireless Logic (Maidenhead, Berkshire)

APRIL 2023

Undisclosed

Healthcare product development company Precision Value & Health (New York, United States)

was acquired by

healthcare communications agency Makara Health (Salisbury, Wiltshire)

Advisers: BCMS, DMH Stallard

MARCH 2023

Undisclosed

Phone systems provider Reach Digital Telecoms Limited (Shrewsbury, Shropshire)

received funding from

business telephone specialist 4Com (Bournemouth, Dorset)

APRIL 2023

MARCH 2023

MARCH 2023

Undisclosed

Onshore oil firm Aurora Production (Aberdeen, Aberdeenshire)

MARCH 2023

£13.9 million

Pawnbrokers Capital Cash Limited (High Wycombe, Buckinghamshire)

was acquired by

was acquired by Second-hand goods retailer Cash Converters UK (Runcorn, Cheshire)

energy exploration company Egdon Resources (Reading, Berkshire)

Advisers:

FRP Advistoy, Fladgate LLP, Price Bailey and Hughes Paddison

MARCH 2023

£4 million

Commercial cleaning outfit Ecoserv Group (Wallingford, Oxfordshire)

Advisers: Clarke Willmott, Herbert Smith Freehills

MARCH 2023

£1.5 million

Cavan Bakery (Walton on Thames, Surrey)

received funding from

Lloyds Bank

MARCH 2023

Undisclosed

EV charging infrastructure provider EZ Charge (Bicester, Oxfordshire)

MARCH 2023

Undisclosed

Video producers Scruffy Bear Pictures (Woking, Surrey)

was acquired by

Cynergy Business Finance (London)

film production company JLL (Wallingford, Oxfordshire) secured funding via Green Tower (London)

secured funding from

Advisers: Green Giraffe

Deal activity holds up well amid significant uncertainty

Dealmakers at PKF Francis Clark have been keeping a close eye on the region’s deals market, as corporate finance partner Paul Stout explains.

Over recent years, we have become used to words such as exceptional, extraordinary or unprecedented when talking about global events and the UK economy.

Whilst 2022 could easily be described in similar terms – with decade-high interest rates, inflation exceeding 10% and the war in Ukraine – the reality is that after nearly 10 years of relative consistency for inflation and interest rates, we are now in an era where change and uncertainty are the norm. In my view, the next few years will be no different.

Robust deal volumes

Following a record year for transaction volumes in the South of England in 2021, it was perhaps not surprising that the region recorded a 5% decline for 2022, while the national picture was broadly flat. It’s perhaps more surprising that this decline wasn’t greater – especially as there were no ‘accelerators’ to drive transaction volumes, such as previous concerns over potential increases in Capital Gains Tax rates, though these may resurface before too long.

Most professionals involved in the region’s deals market were busy last year, even though transaction volumes declined. One factor supporting deal activity is the buy-and-build model pursued by serially acquisitive businesses, often backed by private equity.

For our annual Deals Review publication, we surveyed professional advisers and funders active across the South of England. Some 79% cited economic uncertainty as the biggest factor currently affecting dealmaking, with 85% saying this uncertainty was likely or very likely to have a negative impact on business valuations in 2023.

Sector variations

However, it’s important to note that recent economic shocks have impacted on sectors very differently, including in terms of input cost inflation and the ability of businesses to pass on higher prices to customers. This has led to wide variations in valuations. Businesses with recurring or contractual revenues, distant from traditional retail and consumer markets, have fared very well, with bidding wars for quality assets contradicting views from some buyers and equity funders that valuations were falling.

Nearly half of our respondents expect decreased levels of transactional activity in 2023, although 16% were more positive and expect it to increase.

Whilst I see numerous reasons for uncertainty this year, it has the potential to be calmer than all the turmoil of 2022. However, there are more significant potential changes for businesses and

dealmakers slightly further out to 2024/25, when the potential impact of the upcoming General Election is considered. Whatever your view of the years ahead, unexpected shocks are still likely to happen, and more complex deal structuring or reduced day one pricing may be used to take into account the uncertainties.

Our 2022 Deals Review provides an analysis of transactions in the South region of the UK over the last year. It also includes hints and tips on thriving in the current economic environment, the increasing importance of business owners having more timely data to make informed decisions and choosing the right exit strategy.

Visit pkf-fccf.co.uk to read online or email gemma.lloyd-jones@pkf-francisclark.co.uk to request a hard copy. pkf-francisclark.co.uk

WINNERS CELEBRATE AT THE 2023 SOLENT DEALS AWARDS

presenter Mark Durden-Smith hosted the event.

A highly competitive line-up of finalists was whittled down by independent judges to winners in 14 categories at the 2023 Solent Deals Awards.

Around 300 finalists, guests and event sponsors packed the Hilton at the Ageas Bowl to hear the winners announced at a gala dinner. The ever-popular TV

The Awards’ three independent judges were thanked for undertaking the tough job of selecting the region’s most outstanding dealmakers. Richard Thompson, Managing Director of the Awards organiser The Business Magazine, noted: “Again this year, there was an unprecedented number of nominations and much debate by the judges before agreeing on finalists and winners.”

For three award categories – Small, MidRange and Large Deals of the Year – an audience vote on the night contributed to 30% of the overall result, in addition to the judges’ 70%.

Matthew Noyce, Director & Client Adviser at headline sponsor UBS said “We are delighted to continue to Headline these awards and to be involved with such a vibrant, collaborative and welcoming community”.

The Solent Deals Awards’ category sponsors were Azets, Barclays Corporate Banking, Biscoes Solicitors, CMA Recruitment Group, Ellis Jones Solicitors, James Cowper Kreston, Meridian Corporate Finance, Pangea Life, Paris Smith, Shawbrook Bank, Sightline, Sixtwo and Trethowans

During the evening, £3,135 was raised for Brain Tumour Research. The charity aims to give brain tumour patients the same chance as those with other cancers.

Host Mark Durden-Smith

PRIVATE EQUITY FIRM OF THE YEAR

WINNER: Meridian Growth Capital

SPONSOR: Pangea Life

DUE DILIGENCE TEAM OF THE YEAR

WINNER: James Cowper Kreston

SPONSOR: Sightline

BANK OF THE YEAR

WINNER: Santander

SPONSOR: Meridian Corporate Finance

BANKER OF THE YEAR

WINNER: Simon Finch – NatWest

SPONSOR: James Cowper Kreston

CORPORATE FINANCE TEAM OF THE YEAR

WINNER: Azets

SPONSOR: Biscoes Solicitors

LAW FIRM OF THE YEAR

WINNER: Paris Smith

SPONSOR: Azets

CORPORATE FINANCE ADVISER OF THE YEAR

WINNER: Philip Mettam – Meridian Corporate Finance

SPONSOR: Ellis Jones Solicitors

LAWYER OF THE YEAR

WINNER: Lucy Gleisner – Trethowans

SPONSOR: Sixtwo

NON-BANK LENDER OF THE YEAR

WINNER: MSP Capital

SPONSOR: Ellis Jones Solicitors

YOUNG DEALMAKER OF THE YEAR (UNDER 35)

WINNER: Prabin Sunar – Meridian Corporate Finance

SPONSOR: Shawbrook Bank

Richard Thompson, Managing Director, The Business Magazine

SMALL DEAL OF THE YEAR (UNDER £10M)

WINNER: Inspire Accountants sale to Azets

SPONSOR: Trethowans

MANAGEMENT TEAM OF THE YEAR

WINNER: Workdry International

SPONSOR: Barclays Corporate Banking

MID-RANGE DEAL OF THE YEAR (£10M-£50M)

WINNER: MBO of CJR Propulsion

SPONSOR: CMA Recruitment Group

LARGE DEAL OF THE YEAR (OVER £50M)

WINNER: Sale of Workdry International to Arcus Infrastructure Partners

SPONSOR: Paris Smith

TO READ MORE PLEASE USE THE QR CODE BELOW

Melanie Tiley, Community Development Manager, Brain Tumour Research

Paris Smith Wins ‘Law Firm of the Year’ Award at Solent Deals Awards 2023

Delivering Exceptional Results in Corporate & Finance Transactions

We are thrilled to have won ‘Law Firm of the Year’ at the Solent Deals Awards 2023. Our unwavering focus on providing exceptional legal services to our clients has been recognised with this prestigious honour, writes James

McNeil, Partner, Business and Finance, Paris Smith.

Our Corporate & Finance team is the driving force behind this achievement, setting exceptional standards of professionalism, expertise, and client satisfaction. Our highly-experienced lawyers bring a wealth of knowledge and expertise to the table with a proven track record of successfully handling complex legal matters, including investments, sales, mergers and acquisitions, and financing transactions.

When it comes to disposals, our Partner, Jonathon Roy, guided the sale of Berry Technologies Group Limited to Babble Cloud Limited, Richard Atcherley negotiated for the majority shareholders of SAL Scientific Limited to sell their interests to Advanced Instruments Ltd and Michael Moore represented Blue Rock Systems Limited’s shareholders in selling all their issued share capital to Aptech Business Systems Limited. All our clients trust us with these transactions due to the knowledge, professionalism and responsiveness of the Paris Smith team.

On the acquisitions side of things, Partner Amanda Brockwell led the team which achieved success in major deals in tech, retail/horticulture and facilities management sectors. The last 12 months saw the

culmination of the team’s efforts in Hillier’s acquisition of 22 garden centres with the purchase of Rosebourne Garden Centres Ltd which included the negotiation and implementation of W&I insurance. We also acted for AutoLogic Systems Limited on its acquisition by Routeco Limited. Throughout each deal, our corporate and banking law experts provided exceptional levels of skill and customer service.

We believe that our team’s dedication to our clients has been the key factor in achieving this award which solidifies us as the leading law firm in our region.

Contact us today to experience our award-winning services at james.mcneil@ parissmith.co.uk.

AIR CHINA FLIES IN TO GATWICK

Air China has returned to Gatwick. Daily services began operating from the airport from last month.

It will be the first time since early 2020 that flights have run between Gatwick and China, and will support increasing demand for travel between the two countries. The flights provide an economic boost for the tourism industry in London and the South east.

Chinese visitors spend an average of £1,828 per visit, according to Visit Britain.

The new connection is also positive news for business. 30 Global 500 companies (compiled annually by Fortune magazine based on revenue) are based in Beijing –more than any other city across the world.

In second place, London boasts 28 Global 500 companies.

China sent a record 151,690 students to the United Kingdom in 2021/22 - more than any other country, an increase of 41 per cent since 2017-18 and accounts for the majority (22.3 per cent) of international students in the UK.

Stephanie Wear, VP Aviation Development, Gatwick Airport said: “China is the world’s second-largest economy. Offering direct flights between London and Beijing, we provide an important service to people and businesses across the South East. It is also great news for tourism and hospitality. Chinese visitors are traditionally high spenders so the return of regular flights will help support

Cathay Cargo signs Global Airline Partnership with Tower Cold Chain

Cathay Cargo has signed a global longterm rental agreement with Readingbased Tower Cold Chain.

Tower rents containers to the pharmaceutical industry to transport products that need temperature control. It offers more than 120-hour protection for products that require an internal temperature from -80°C through -20°C (frozen), +5°C (refrigerated) and +20°C (controlled room temperature).

This is Tower’s first global airline service agreement. The company’s patented design technology guarantees safe temperature-controlled transportation.

Tower containers are available globally via its network of hubs at major airports – a key selling point for Cathay Cargo

as it enables greater proximity and availability for customers, in more than 70 destinations.

Frosti Lau, General Manager Cargo Service Delivery at Cathay Cargo, said: “Tower’s advanced passive containers deliver proven physical and temperature protection. This, coupled with Cathay Cargo’s vast distribution network, will benefit our customers.”

Niall Balfour, Chief Executive of Tower Cold Chain, added: “As our first official airline agreement, this project allows a multitude of customers to lease Tower Cold Chain’s reliable containers directly from Cathay Cargo, providing a robust system for safe and seamless transportation of temperature sensitive products.”

these sectors, which suffered so badly throughout the pandemic.”

Jingjie Li, General Manager, Air China London said: “We are well prepared to serve passengers travelling between the UK and China, and via our hub at Beijing Capital Airport to beyond.”

ACC Aviation extends partnership with Freedom II

ACC Aviation, the Reigate-based global aviation services group, has announced it will remain an exclusive marketing and sales agent for Freedom II LLC’s VIP Boeing B757-200.

ACC Aviation was appointed by Freedom II LLC last summer to support its 62-business-seat VIP aircraft with an ensuite bedroom. The aircraft has since flown several high-profile artists and music bands since obtaining its air operator certificate in 2022 and is set to embark on more tours around Europe this summer.

Phil Mathews, CEO of ACC Aviation, said: “We are delighted to continue working with Freedom II LLC. This is a unique aircraft that can accommodate a range of air charter requests.”

The B757 is one of Boeing’s most popular airframes. It bridges the gap between private charter and scheduled services, providing a flexible transport solution for larger groups.

Founded in 2002 as an aircraft leasing business, ACC Aviation now has an international office network spanning Europe, the Middle East, Africa, North America and Asia.

What is Quantum Computing?

Investors and companies are queuing up to invest in quantum computing, why are they so excited?

By Michael Gilson

From 1919 until the outbreak of the Second World War a race was on to harness science in the cause of unlocking the secrets of life. The drive to understand and then to split the atom (which was finally achieved in 1932), the building block of the universe itself, was largely conducted behind closed doors in the laboratories of scientists across Europe and the US.

The public remained ignorant of an astonishingly rich chapter in the history of progress, endeavour and enquiry, a time when the human race seemed on the verge of a giant science-driven leap forward. The world of course woke up when the products of the dark side of these discoveries imploded over the unsuspecting residents of Nagasaki and Hiroshima.

Today another race is on to unlock the secret of atoms and this time, insist the experts, in the just cause of combating many of the problems, illnesses and global crises that beset us in the 21st century. Again, most of us are largely ignorant of this work. It seems impenetrable to all except the most rarefied of scientists,

computer experts and engineers. Words like qubits, trapped ions and logic gates are the currency of this new science and it is gathering momentum in the South East of England, hoovering up research grants in the tens of millions of pounds. Governments, universities, private equity and institutions are all in what could bring unimagined wealth for the winners of the race.

It is called quantum computing and, in a nutshell, it could help solve complex problems in everything from medicine to climate change, uncovering new drug discoveries and developing new technologies – effectively addressing problems that would take today’s fastest supercomputers billions of years to solve. To borrow from the Hitchhiker’s Guide to the Galaxy, it could be the answer to life, the universe and everything.

Not everyone thinks this scientific Holy Grail is possible. Many prominent scientists think the technology is for the birds. But it’s worth remembering that another physicist, one of the greatest of all time, Ernest Rutherford

who first split the atom, declared his discovery was a purely theoretical exercise without any material benefit at all.

In an unprepossessing new building in Haywards Heath, West Sussex, around 200 computer experts, scientists and engineers are in no doubt: yes, we can and we will, are some of the first words on the website of Universal Quantum. The company, spun out of research departments at the University of Sussex, are answering their own question: can we build a million-qubit quantum computer?

Let’s break this thing down. In simple terms a qubit, a basic unit of information of roughly a seven-nanometer etching on a silicon chip, is a quantum upgrade on the humble binary bit that powers the computers we use today. The qubit (quantum bit) exists in a quantum computer. In computer language, unlike the simple bit which exists in either 0 or 1 code, the qubit can be both 0 AND 1, two possible states, at the same time. You don’t need to be a scientist to hazard a guess that this immediately makes the qubit a far more powerful computer unit.

So far so good, but the qubit is a temperamental thing prone to be upset by noise or what scientists call decoherence. And as suggested by Universal Quantum, to be really world changing a computer will need to harness a million of these. The best a quantum computer can manage at present is 100 before the qubits cause chaos.

So the race is on, it’s been running for about 20 years, to harness the qubit, keep it in its AND state if you like, in the cause of solving many of the problems the world faces today.

In February scientists at Universal and the University of Sussex appeared to steal a march on their worldwide competitors.

They announced in the journal Nature that they had used electric field links to enable qubits to move from one quantum computing microchip module to another with unprecedented speed and precision. This allows chips to slot together like a jigsaw puzzle to make a more powerful quantum computer and moves the one million target a significant step closer.

There’s still some way to go. The Sussex team has shown you can join chips to create a computer the size of a dinner plate but to cross the million threshold you are going to need a machine perhaps up to the size of a football pitch. There’s no space

here to detail all the runners and riders in this trillion-dollar race nor the different approaches, super conductors versus ion traps for instance, being used to win it. Safe to say the south coast team faces formidable opposition from the likes of IBM which has a stellar cast of supporters.

That said Universal Quantum has seed funding from, among others, Village Global, a venture capital which is backed by Bill Gates, Jeff Bezos and Mark Zuckerberg. The German government’s space research centre has just awarded Universal £67 million to build two quantum computers. Rolls Royce is also investing. This is serious stuff.

What the Germans, Rolls Royce and the founders of Microsoft, Amazon and Facebook are banking on is an almost unimaginable increase in the speed of problem solving. Remember, quantum computing cannot crack questions that normal computers can’t, but solving a problem in say a year instead of a billion is some advantage especially if you are looking at technology to help tackle climate change for instance. The science of carbon capture is in its infancy at a time when answers are needed quickly.

Companies such as pharmaceutical giant Roche are investing in quantum computers to support efforts to research Alzheimer’s Disease. A host of others are

hoping quantum computing can help them understand the behaviour of molecules in creating disease so that new drugs can be brought forward quickly unlike the present trial and error approach they have to use.

Elsewhere there is growing excitement that battery technology, used for everything from powering cars to storing renewable energy, can be vastly improved using new materials discovered by quantum computers. Daimler is already investing in this field.

Better prediction of severe weather, reducing congestion, picking stocks and even worldwide transport logistics are also being eyed up as tasks for quantum computing. For now, the battle is still on to scale up that dinner plate to a football pitch sized computer that could transform our world. Some think we are only a few years away.

Professor Winfried Hensinger, Professor of Quantum Technologies at the University of Sussex and Chief Scientist and Co-founder at Universal Quantum does not suffer from a lack of passion nor belief that he and his team will succeed and perhaps even create a new Silicon Valley in the south-east of England.

“For many years, people said this is completely impossible. That’s what got me into this field. I thought, I’ll show you,” he said.

2023:TIME TO SHINE

Early-stage science and technology companies are invited to apply for Southampton Science Park’s influential Catalyst business accelerator programme.

I gained invaluable insights into what it takes to build a successful business.”

Josef Archer and Colin Christie of Acoustic Reality agree. They advise future participants to “make sure you attend all of the workshop sessions and get to know the rest of the companies on your Catalyst programme to build out your network of similar people going through the same thing”.

invaluable to help us refine our business plan and overall strategy”.

Catalyst delivers world-class mentoring and workshops to give early-stage innovation-led businesses the best chance of success. It has accelerated the progress of 83 companies, helping them to secure almost £50 million in investment and creating over 230 jobs signalling longer-term growth for the South Coast.

Why is this? The entrepreneurs that completed the 2022 programme explain that Catalysts’ success is a consequence of its quality environment and team.

Veopl creator, Janine Chard says: “The Science Park has created a perfect environment for a start-up company. Exposure to successful entrepreneurs from various industries and backgrounds has been an outstanding, priceless, and inspiring experience. From serial entrepreneurs to up-and-coming innovators, each brought a unique perspective and wealth of knowledge to the table. Learning from their experiences,

Tim Lloyd, founder of Helpful Digital also highlighted the benefit of working faceto-face in an innovation focused setting with likeminded people. “Catalyst helped me understand the real value in dedicated time and focus on developing the business. I can’t imagine I would get the same quality of support and guidance, for free, anywhere else. The balance of effort/ reward has been just right”, he says.

Labl.it Solutions’ Sean Larsen, comments: “We really like being at the Science Park, so much so that we decided to stay beyond our Catalyst experience. Setting up our office here, we greatly appreciated how the management team understood our business needs.” This sentiment is echoed by Sarah Eggleston of Fflow who says: “I love the commitment and involvement from both mentors and Science Park management.”

Data Revival founder, Sam Munday, comments on the quality of mentoring he received. “The coaching has been incredibly valuable – not just my own coach, but the whole team. I learnt a lot and progressed massively as a founder and as a person.” Highfield Diagnostics’ Ioannis Katis agrees, noting “the oneto-one mentoring meetings have been

Ultimately, Catalyst is all about creating commercial growth. Nicola Davey, creator of the Quality Improvement Clinic says, “Catalyst has facilitated my growth significantly. It has helped me create a business plan that can unlock the potential of our business and allow us to capitalise on assets to deliver much higher returns. It’s been a significant mindset shift in the way I view and run my business.” While Studfast’s Eleanore Kelly sums it up. “The experience has been transformational,” she says.

Find out about Southampton Science Park’s range of free business support initiatives including informal breakfast and lunchtime learning events to one-to-one growth clinics, entrepreneur bootcamps and for those ready to scale, the globally renowned business incubator SETsquared.

Apply now for Catalyst at science-park.co.uk/catalyst.

• 6 months, beginning September 2023.

• Fully funded. No equity stake required.

• 1-1 high level mentoring.

• Peer group workshops.

• Team space at Southampton Science Park.

• Supported by Hampshire County Council and Test Valley Borough Council.

The Catalyst company founders

THE PRINCE’S TRUST – HELPING YOUNG PEOPLE START A BUSINESS

What does a young man do after a successful career including commanding a coastal minehunter in the Royal Navy?

If you’re Prince Charles, determined to put his own stamp on the world and concerned to see the country struggling with record levels of unemployment, spiralling inflation, and some young people’s futures in crisis, you take the initiative.

In 1976, with his Royal Navy severance pay – all £7,400 of it – burning a hole in his pocket, he decided to fund some community initiatives. Twenty-one pilot projects were set up around the country. Grants were given to a 19-year-old woman to run a social centre on an estate in East London and for two ex-offenders to run a fishing club. Funds also hired swimming baths in Cornwall to train young lifeguards and for a self-help bicycle repair scheme.

These early initiatives were the founding projects of The Prince’s Trust.

Fast forward nearly 50 years and The Trust reports that it has helped more than a million young people to date and helps tens of thousands more across the UK each year.

In 1983, the Trust set up its enterprise programme which has since helped more than 90,000 young people between 18-30 to start their own business.

British shoe and jewellery designer Freya Rose turned her passion into a sustainable successful business with the help of The Prince’s Trust. When Freya started her business more than 10 years ago, she dreamed of creating world-respected shoe designs.

“I’d been working as a shoe designer for a few years, but always knew I wanted to set up my own business. There’s something so special about the transformative element of shoes and the impact they have on women’s confidence.

Freya took part in The Prince’s Trust Enterprise programme, where she received practical support and advice on how to run a business alongside mentoring and a loan to help her get her business off the ground.

“I found the course really gave me the confidence to go out there and do what I’d always dreamed of. It really was invaluable for me in those early days.”

“My advice to anyone keen to set up their own business is to make sure that it’s something you feel really passionately about. It’s not always easy to begin with, so it helps to be motivated when you’re doing something that you love.

“Get in touch with The Prince’s Trust as the organisation is full of inspiration and wisdom which has been an essential part of my journey.”

My advice to anyone keen to set up their own business is to make sure that it’s something you feel really passionately about

As the United Kingdom celebrates the coronation of King Charles III, we look back on the achievements of The Prince’s Trust, the organisation he founded in 1976 and particularly its enterprise programme which has helped more than 90,000 young people to start their own business

Freya Rose, jewellery designer

XTRAC COLLABORATES WITH CZINGER ON 3D PRINTED GEARBOX

Thatcham-based motorsports and highperformance automotive company XTrac has partnered with Los Angeles-based performance car brand Czinger Vehicles, to produce a revolutionary gearbox.

Engineers from XTrac, which manufactures transmissions for motorsports, have worked with Czinger to develop a 3D-printed gearbox made from an aluminium alloy. New transmission will be integrated into Czinger’s 21C hypercar, which is already capable of going from 0 to 250mph and back down to 0 in 27 seconds.

This approach also eliminates the need for tooling, reduces development time, and offers the capability to make real-time

design improvements. The gearbox is an early example of the company applying this advanced technology to powertrain systems and further enables the 21C’s industry leading performance.

Adrian Moore, CEO of XTrac, added: “What our engineers have accomplished in tandem with Czinger and Divergent is groundbreaking. XTrac is pleased to be at the forefront of cutting-edge gearbox manufacturing by creating these 3D printed casings.

“It has been extremely interesting and very stimulating for our engineers working closely together to bring this cutting edge innovation to life.”

Czinger Co-Founder and SVP Operations

Lukas Czinger, said: “We are proud to team Czinger’s world-class engineers with those at Xtrac; together, we have developed an incredible, industry first, gearbox that is truly at the pinnacle of performance.”

WILLIAMS ADVANCED ENGINEERING INVESTS IN BEAM CONNECTIVITY

Didcot-based Williams Advanced Engineering (WAE), has invested in a company aimed at improving the fragmented nature of the connected vehicle systems market.

A connected vehicle is any type of vehicle which connects to the internet. Usually, such vehicles connect to the internet through WLAN (Wireless Local Area Network). A connected vehicle can also share the internet with devices inside and outside the car and, at the same time, share data with any external device or services.

Bristol-based Beam Connectivity was established in 2020 after its founders recognised that connected vehicle solutions offered an underwhelming experience for both end users and the organisations that deploy them.

Autonomous cars and connected vehicles are gaining consumer interest and drivers are increasing ready to spend more on the latest technologies which enhance the driving experience and increase the safety of drivers and riders. Advanced driver assistance systems (ADAS) features, such as collision warning, lane assistance and blind spot detection have a significant impact on consumer behaviour and are expected to enhance vehicle performance by reducing vehicle downtime by alerting the owner of any faults in the vehicle.

By developing a high performance, versatile and secure connected vehicle solution, Beam Connectivity is aiming to capitalise on the growth predictions of the connected vehicle market.

Craig Wilson, WAE’s Chief Executive, said “Beam Connectivity are a key supplier

to WAE and have built an excellent relationship with our engineering team. We are delighted to further our relationship through this investment which will bring Beam Connectivity’s class-leading connectivity solutions to market faster.”

Thomas Sors, CEO at Beam Connectivity, said: “This investment will enable us to grow our commercial team and accelerate the deployment of our Connected Vehicle as a Service platform.”

Alex Burns OBE, Non-Executive Chairperson of Beam Connectivity, added: “Connectivity has an excellent management team and a class-leading connectivity solution. The investment and support from WAE will help the team to accelerate the growth of the business by providing their solution to their growing customer base.”

The new 3D printed gearbox

Matrix Medical Plastics machinery upgrade and service expansion

Slough-based Matrix Medical Plastics, a market leader in the colouring and compounding of plastic and other materials, has made a substantial investment into its subsidiary Matrix Medical Plastics with a machinery upgrade from KraussMaffei.

Matrix Medical Plastics became the UK’s first dedicated cleanroom extrusion facility in 2020, in response to the increase in demand for plastic medical products due to the Covid-19 pandemic. It has since become a leading compounding and masterbatch supplier for medical producers across Europe, working with pioneering medical equipment manufacturers in applications such as oxygen masks, tubing, ventilation equipment, surgical equipment and drug delivery systems.

The purpose-built facility ensures that all medical products are processed and tested according to ISO Class 9 cleanroom regulations and under ISO 13485 quality management systems for medical devices.

The new all-electric KraussMaffei injection moulding machine is being introduced to enable comprehensive medical device research and development, supporting innovation development for engineers and designers of new medical devices. KraussMaffei is one of the world’s leading manufacturers of machines and systems for producing and processing plastics and rubber.

Richard Hoare, Commercial Manager, Matrix Plastics, said: “The choice to invest in this equipment is another step forward in taking Matrix Medical Plastics’ commitment to cleanroom manufacturing to another level,”

Matrix Medical Plastics’ customers will now be able to develop materials and new medical products in a single cleanroom environment, which will even further support the extensive supply chain and traceability requirements of the medical industry.

YUNEX TRAFFIC INCREASES EFFICIENCY WITH NEW MANUFACTURING EXECUTION SYSTEM

Working in partnership with Siemens Digital Industries, Yunex Traffic has built a new Manufacturing Execution System (MES) for its manufacturing site in Poole. The new MES will improve the company’s manufacturing efficiency and enable it to provide an enhanced service to customers.

The new MES provides complete traceability of all products and processes – from the time a customer order is received to the point that it leaves the factory for delivery. The system manages the generation, association and tracking of serial numbers for traceability to production, as well as controlling the production process for each product.

The MES also allows the company to refine production methods through the introduction of controls and standardization, further supporting its quality management system.

The two-year collaborative programme between Yunex Traffic and Farnboroughbased Siemens DI examined every stage of the manufacturing processes to develop a bespoke system specifically to meet the needs of the Yunex Traffic manufacturing facility at Poole.

Nick Reynolds, Head of Systems and Digitalisation for Yunex Traffic in the UK, said: “Effectively replacing our existing

protocols, our new MES solution will provide enhanced customer service through greatly improved visibility.

“In the broader context of our digital factory where data underpins every aspect of our operations, the MES will improve both the response times to any product queries and the quality and detail of information that it provides.”

Brian Holliday, Managing Director Siemens Digital Industries UK & Ireland, said: “Yunex Traffic is a clear exemplar for advanced British manufacturing, outstanding in their ability to design, make and service great products for the international traffic technology market from their base in Poole. Yunex Traffic has taken a really exciting digitalisation step to improve their traceability and productivity through a brand-new MES which will seed and enable greater digital transformation of the business.”

Employing more than 220 people, the 8,500 sq m factory in Poole is the global manufacturing base for Yunex Traffic’s portfolio of intelligent traffic systems.

Exporting to more than 60 countries worldwide, the Poole site produces everything from state-of-the-art traffic controllers, signals and communication devices to ANPR cameras and motion detectors.

Yunex Traffic’s new Manufacturing Execution System

IS THE SUN FINALLY RISING ON THE COMMERCIALPOTENTIAL OF FUSION ENERGY?

By Nicky Godding, Editor

Oxford-based Tokamak Energy is leading the way. It is developing spherical tokamaks alongside high temperature superconducting (HTS) magnets made using rare earth barium copper oxide which is applied to a metallic substrate tape and used to design and build robust high field magnets.

temperature, density and confinement time.

Dr Ross Morgan has been the commercial director at Tokamak Energy for more than six years. He said: “We have demonstrated the highest triple product of any fusion company, and the highest temperature.

Nuclear fusion is increasingly being acknowledged as the ultimate clean energy solution. It’s low carbon and safe, and the UK is a global leader in its development –the government even has a strategy for it.

The biggest nuclear fusion device in our solar system is the sun, but how do we replicate that on earth?

Achieving nuclear fusion is one of the world’s toughest physical challenges, and although it has been done successfully enabling fusion for a nano second, the challenge is now on to engineer continuous fusion that can release more energy than goes into creating it, making it commercially viable for the first time.

A tokamak is a high-tech machine that confines plasma (a charged ball of gas) using magnetic fields in a doughnut shape that scientists call a torus. In the 1980s, one of the founders of Tokamak Energy, Alan Sykes, who was working at Culham Centre for Fusion Energy near Abingdon, discovered that by moving from a doughnut-shaped plasma to a cored apple-shape, the plasma is contained more efficiently.

And so the spherical tokamak was invented. But that was just the start. Very high temperatures and strong magnetic fields are also needed to hold the ball of plasma (which is where the fusion reaction will happen as hydrogen atoms are forced together to fuse and generate energy), hanging in the centre of the tokamak for a length of time. This is called the triple product – a measure of plasma

“The temperature in the sun’s core is around 15 million degrees Celsius. At Tokamak we have achieved 100 million degrees Celsius which, for the first time, means that plasma temperatures relevant for commercial fusion energy can be obtained in a compact, high-field spherical tokamak. When combined with our worldleading magnet technology, we think our spherical tokamak is the best route to achieving clean, commercial fusion energy.”

The power of collaboration brings fusion experts together

Simple? Well, yes in theory. Absolutely not in practice. And while Tokamak Energy and other fusion innovators across the world know how it can be done, achieving it involves a lot of clever physics and sharing knowledge globally.

The world wants to replace fossil fuels with green energy, but when the sun doesn’t shine and the wind doesn’t blow, what can we use to keep the lights on? Experts are pinning their hopes on fusion

Ross Morgan, Commercial Director at Tokamak Energy

Tokamak Energy’s next demonstration device, the ST80, will be built at Culham (which, for the first time, will integrate the spherical tokamak with its HTS magnets to enable a long pulse operation – up to 15 minutes – on the journey to full commercial viability). And Canadian company General Fusion is also building a demonstration plant there which will demonstrate its proprietary Magnetised Target Fusion (MTF) technology.

Oxford-based First Light Fusion is pioneering yet another way of creating fusion energy, and also building a new facility at Culham to house its Machine 4, which will be used to develop the technology required for inertial confinement fusion energy powerplants.

The UK government is supporting these fusion ambitions, financially and with appropriate regulation. Fusion is very different to fission, which is at the core of the UK’s current fleet of nuclear reactors. If you lose power and containment in fusion, the energy just dissipates. Fission wants to keep going. Fusion wants to stop.

So the government has agreed to regulate fusion like any other industrial process,

through the Environment Agency and Health and Safety Executive (HSE).

Ross says: “That sends out a powerful message that the government recognises the benefits of fusion in terms of low risk and low hazard. Having an appropriate and proportionate framework means that you can deploy quicker and at lower cost.”

This also supports another benefit for the generation of fusion energy, Ross adds. “Unlike fission, where our nuclear plants are as far away from urban areas as possible, with fusion you can have a modular tokamak plant close to centres of industry.”

Tokamak grows staff count and ambition

Tokamak Energy’s approach to fusion, for which it has filed more than 70 international patents, has seen the company grow from just 25 people a few years ago into 250 members of staff from around 30 countries spread across two sites at Milton Park near Abingdon. This is in addition to Culham, as it brings its spherical tokamak and HTS magnet technologies together.

“When our demonstration plans have been proved, we will look to licence our technology out to power plant constructors,” said Ross.

“When I joined Tokamak more than six years ago, it was focused on research and development. Since then, we’ve developed the engineering capability and commercial and business skills to take the business to the next level.

“We are also looking at where else our magnets can usefully be applied, from scientific instruments to aviation and the space industry.

“The UK is a centre for fusion, and Oxfordshire has been the centre for super conducting magnets ever since the advent of Oxford Instruments and Siemens, so we have been really fortunate to attract some of the world’s leading fusion and magnet engineers to the region.

“What’s great about Tokamak Energy is that we are all working on cutting edge science and engineering and trying to achieve something that’s meaningful which helps to guide us away from fossil fuels. It’s what motivates us all.”

Cutaway of a spherical tokamak

LEADING THE CHARGE:

INSPIRING THE NEXT GENERATION TO TAKE ON LEADERSHIP ROLES

Every business must plan for succession. Kath Shimmin, chair of Blake Morgan discusses her career and how the law firm is planning for the future

by Nicky Godding, Editor

How does a business develop and encourage the next generation into leadership roles?

For Kath Shimmin, chair of South Coast based national law firm Blake Morgan, it’s a challenge she and her Board are tackling head on.

“How do we embrace the changes we need to make to maintain the years of knowledge and experience our board and senior team can offer clients, while nurturing those earlier in their career so they’re ready to take over when the time comes?”

The first challenge of managing the next generation’s expectations is understanding them, says Kath. “I spend a lot of time in our offices listening and talking. We have young professionals who are bright, ambitious, very well informed, with great acumen but raised in a completely different way to those of my age.

“They expect to be recognised and promoted at a pace that we didn’t enjoy. The challenge for management is how to

give them recognition in their roles while getting them to the levels of skills and experience to be ready to take on the business.”

Such conversations cover skills development and technology, but also harder issues to tackle such as equality, diversity, inclusivity and working practices, she said, and in the last few years, the firm has drawn up policies for many situations. However, the real challenge comes in their implementation.

“Policies are useless unless they’re rolled out properly,” she added. “The key is to ensure good lines of communication between those leading the business and those who are developing their careers with us.”

Changing career expectations

Kath, who took on the role as chair at Blake Morgan in 2021, has adapted her view of

climbing the career ladder. “It has taken me almost 40 years to know my trade and feel really confident in my abilities. But for the next generation there’s a whole different assumption about the pace of career progression, and the time spent on monotonous work which can now be done by software, or indeed about spending their lives in just one career.”

She understands these expectations and the firm already deploys new technology where appropriate.

“There’s no reason why a client should pay someone to do what legal software can do. What’s important is critical thinking – how do you weight this option against that? How do you analyse risk in an emotionally intelligent way because artificial intelligence can’t do that – and may never be able to.

“I have done deals where the emotional piece for a client was more important. Perhaps we agreed to give away good commercial points because an owner wanted employees looked after when their business had been sold.

“Blake Morgan’s training contracts help develop our people into what they can and want to be, but that takes an enormous amount of our trainers’ time, including working with individuals one-to-one.”

“Don’t make me do that”

Kath didn’t always want to be a lawyer, and her parents rather hoped she’d be a doctor. “But I was watching a medical programme on the TV and when it got to a particularly gory bit I thought ‘I don’t want to do that’.”

She didn’t want to disappoint her parents and felt that if she couldn’t save lives in the truest sense of the word, perhaps she could help make them better as a lawyer.

She was accepted at King’s College London. “King’s taught by asking us to undertake critical analysis and write judgements, explaining our reasoning. I loved it – the cut and thrust of debate. We had a particularly bumptious professor and tried to find cases in the library that he wouldn’t have read to wrong foot him on points of law.”

But she didn’t find it easy. “At King’s I was one of just two state school students in an intake of 70, and that was a challenge when I started going for interviews in my third year.”

London law firm Slaughter and May spotted her talent and she accepted their offer.

She loved training as a city lawyer. “I spent my whole property seat deducing title to

an air ventilation unit for the new Charing Cross Station. It sounds nerdy but it was fascinating – based on an indenture written on vellum going back to 1780. Then, when I was working on intellectual property, I answered the phone to a man representing the international teddy bear club. I thought it was a joke, but it was a genuine client.”

As a trainee lawyer, she spent time in all departments, and after qualifying, she worked in corporate sales and acquisitions, including on the British Steel privatisation.

“By the time I was four years qualified, I was doing asset securitisation, we acted on the very first mortgage securitisation in the late 80s. It was an exciting time and a new area of law so sometimes we had to make things up as we went along.”

Kath Shimmin

There are no half measures in a legal career

Marriage and family arrived, along with the inevitable choices that a woman must make.

“I wanted to balance work and family but when I returned to mortgage securitisation four months later, I quickly realised there were no half measures in that kind of work.”

Decisions had to be made, but that didn’t mean her abandoning her career. “My husband is a research scientist. His world is as busy, if not busier than mine, but ours is a marriage of equals – we both wanted to build our careers.”

The solution came by moving out of London, and they chose the south coast as her husband Matthew was from Guernsey, and Kath grew up on the Isle of Wight.

She got a job at Blake Lapthorn, and initially commuted from London until their house was sold. Matthew got a job at Portsmouth University, where he still works.

There were still compromises to make, but Blake Lapthorn, which finally became Blake Morgan in 2014, were great, she said. Kath became an equity partner in 2001 and while she was on maternity leave with her second

child, she was promoted to junior partner.

Over the next 20 years she rose through the firm, founding and running the banking team. Her role gave her influence because of the team she ran, coupled with her experience and personality.

Setting an example to female colleagues

So, when the incumbent chair expressed his intention to step down, she initially didn’t consider running.

“I was already having the say I wanted in the areas I felt strongly about, but then I began to engage with the growing equity, diversity and inclusivity agenda. When one of my colleagues asked why I wasn’t standing, I realised that I’d talked about female ambition and women putting themselves forward, but at the first opportunity I got, I wasn’t jumping in.”

So she did. “I felt that it was important the women in the firm saw that I was prepared to do it.”

Two years into the role, and the gender balance at Blake Morgan is changing. “Thirty-five per cent of full equity partners are women, and we are aiming to get the

balance to 50:50 by 2025. But we must manage with the talent pool available within the legal profession, and no women wants to be there just because she’s a woman. Only three out of eight Board members are women, so that needs work too”.

Reflecting on her hugely successful career, she still says she never thought she would be the sort of person to chair a major UK law firm. “But my age and experience has made me comfortable about who I am and the way I manage – though all of us can always learn better management skills.

“Blake Morgan turns over more than £61 million. We want to grow, but in the right way, working for businesses and the people that own and run them. We have our head office on the South Coast, but have offices in London, Cardiff, Reading and Oxford from which we service national clients.

“We have a big commitment to the communities we operate in, and part of our ambition is to remain connected to them.”

Living and working on the South Coast suits the girl from the Isle of Wight. “When I gave up rugby years ago, we bought a boat. It’s the perfect relaxation from a demanding job. When you are on and running the boat, you can’t think about anything else.”

LAKESIDE NORTH HARBOUR GOES BEYOND THE OFFICE

Offering more than just workspace.

A stunning rural setting with woodland, wildlife walks and an abundance of outdoor space, Lakeside lets occupiers experience nature, providing an added extra for all and helps to support mental health and wellbeing.

An inspiring and relaxing environment for businesses to call home, the campus surroundings are unique, comprising 130 acres of meticulously maintained rural surroundings, including a large lake and pockets of rugged woodland.

Occupiers and employees are encouraged to make use of the grounds, creating unique working and meeting environments to foster creativity –whether that’s taking advantage of the outdoor meeting room that overlooks the beautiful lake, or even holding brainstorms and meetings while taking a team walk.

When it comes to green and sustainable initiatives, Lakeside is always driving its objectives forward.

Brand new initiative

One of Lakeside’s newest projects is the launch of a wildlife project and bird viewing area which saw the campus team up with Visitor Chat, an award-winning company that offers live chat services, which is also headquartered at Lakeside. The aim of the scheme is to further enhance the ecology, biodiversity and environmental aims of the campus.

Working with the Hampshire & Isle of Wight Wildlife Trust and the RSPB to start the project, the aim is to protect birds on the campus and provide new habitats for them.

A mix of bird boxes were created including standard boxes for Blue Tits and Great Tits, open fronted boxes for Robins and Wrens, Starling boxes to be used by Starlings, Woodpeckers and Nuthatches, and Sparrow Terraces, along with bird feeding stations and a new bird viewing area.

Sustainable travel

Lakeside is dedicated to making it easier to travel to work actively and sustainability, as well as providing freeto-use green transport and convenient facilities, including EV charging stations, e-scooters and e-bikes, to support employees and occupiers to make sustainable commuting choices.

The green and free shuttle bus service is just one of the initiatives Lakeside has taken to offer even more value to our occupiers – supporting the Lakeside community to save on costs and reduce carbon emissions.

Renewable energy

Portsmouth City Council, owners of Lakeside North Harbour, have announced plans to install a large-scale solar photovoltaic (PV) and battery storage system at the campus.

The ground-breaking project will include roof-mounted solar PV arrays across five buildings and one of the largest solar parking canopy arrays in the UK with a large battery storage system.

The solar generation and battery storage initiative is set to save 992 tonnes of carbon dioxide from being emitted each year, benefitting both the planet and the health of the local community.

Alongside this ground-breaking project, Lakeside has introduced a number of other sustainability measures and initiatives, including 100 per cent green electricity supply, 95 per cent of general waste is processed for energy producing electricity and 13 electric vehicle charging stations onsite.

For more information contact: Emma Parkin on emma.parkin@avisonyoung.com

SMES DRIVING THAMES VALLEY ECONOMY HONOURED AT AWARDS

Thames Valley SME Growth 100 Index Awards recognises region’s powerhouses

By Tim Wickham

The Thames Valley’s most active SMEs were recognised at the fourth annual Thames Valley SME Growth 100 Index dinner and awards.

Prestige watchmaker Bremont hosted the event on 28 February at its Henley-onThames headquarters.

The listing is published by The Business Magazine and features an annual

campaign highlighting and celebrating the top 100 SMEs with turnover between £1 million and £20 million that have grown significantly in the past year.

The listing is sponsored by Herrington Carmichael, Hicks Baker and Crowe, who worked together to meet with the awards finalists to discuss and decide collectively on the winners.

Thames Valley SME Growth 100 winners

Nick English, Co-Founder of Bremont

WORKFORCE OF THE YEAR

WINNER: BRIDEWELL, READING

With a headquarters in Reading, cyber security company Bridewell runs a 24/7 Security Operations Centre and has expanded into the USA. Founded in 2013, Bridewell says it is now one of the UK’s largest independent cyber security services providers. Anthony Young and Scott Nicholson, Co-founders, said: “Our internal talent recruitment team maps out the best cybersecurity talent in the UK. We also focus on learning and development and have devised company values in consultation with our staff.”

FINALISTS:

• Hawkins Group of Companies, Banbury

• Walker Logistics, Hungerford

SME GROWTH 100 (ABOVE £10M)

WINNER: SQUARE HEALTH, WINDSOR

Square Health was founded by the team behind the Doctors Chambers group of companies. It provides holistic medical, technological and claims-related solutions for insurers.

Dr Bippon Vinayak, Co-founder and Monisha Vinayak, Commercial Director, said: “Covid-19 had a big impact on the acceleration in adapting digital healthcare and this was an open door for us. A catalyst was enabling people to access GPs when practices were closed. We have been more-or-less doubling our year-on-year revenue.”

FINALISTS:

SME GROWTH 100 (BELOW £10M)

Alistair McArthur,

WINNER: FULLCIRCL

FullCircl is a Wokingham-based Customer Lifecycle Intelligence (CLI) platform that helps B2B companies in regulated industries do “better business, faster”. Andrew Yates, CEO, said: “After acquiring a complementary business, we have extended our value proposition for both sets of customers; we cross-sell, upsell and focus on customer retention. We are excited about new strategic partnerships, including with Google.”

FINALISTS:

• Cherwell Logistics, Chipping Norton

• Craft Buddy, Chesham

• Bridewell, Reading

• Cyberfort Group, Sandwich

Herrington Carmichael (right) presents SME Growth 100 Award (below £10m) to Andrew Yates (centre) and Taylor Hart from FullCircl

Alistair McArthur, Herrington Carmichael (right) presents Workforce of the Year to Anthony Young and Scott Nicholson from Bridewell

Stuart Weekes, Crowe (right) presents SME Growth 100 Award (above £10m) to Dr Bippon Vinayak and Monisha Vinayak from Square Health

TECH COMPANY OF THE YEAR

WINNER: OXFORD BIOTHERAPEUTICS, ABINGDON

A clinical stage oncology company focussed only on firstin-class immune therapies, Ben Thomas, Senior Director, and Lindsey Hudson, Director of Business Development & Partnership Alliance, said: “Our technology includes mass spectrometry and analytical biochemistry. We all have a passion for what we do: helping cancer patients who don’t have other methods of treatment available to them.”

FINALISTS:

• Bridewell, Reading

• Cyberfort Group, Sandwich

OWNER-MANAGED BUSINESS OF THE YEAR

WINNER: CRAFT BUDDY, CHESHAM

Established in 2011, Craft Buddy is a leading trade supplier of arts and crafts kigs to the UK, Europe and the rest of the world. Dino and Gary Wadhwani, Co-founders. Dino said: “I had worked for our father’s arts and craft business which imports from India and Gary had experience sourcing products from China for a DIY chain. We combined our knowledge to establish Craft Buddy. We retail through a range of channels.”

FINALISTS:

• Cherwell Laboratories, Bicester

• Hawkins Group of Companies, Banbury

• Square Health, Windsor

Dominic Faires, Hicks Baker (right) presents Tech Company of the Year to Lindsey Hudson and Ben Thomas from Oxford BioTherapeutics

Stuart Weekes, Crowe (right) presents Owner-Managed Business of the Year to Dino and Gary Wadhwani from Craft Buddy

RESILIENCE AWARD

WINNER: SHORTS GROUP, BRACKNELL

An independent family-owned business providing skip, plant and tool hire. Gary Short, Owner, and David Guest, Finance Director, said: “The Covid-19 pandemic led us to diversify even more while always listening to what customers and employees want. One of our biggest challenges is recruiting and retaining staff – one way we do this is through our apprenticeship scheme.”

FINALISTS:

• BMG (Business Moves Group), Reading

• Country Estates, Reading

SPECIAL RECOGNITION AWARD

WINNER: OXFORD BIOTHERAPEUTICS, ABINGDON

Ben Thomas, Senior Director, and Lindsey Hudson, Director of Business Development & Partnership Alliance, said: “The company has almost doubled its revenue and employee headcount since 2020. We currently have drugs in clinical trials and are really excited to see what the next year will bring in terms of helping cancer patients.”

Giles Blagden, Hicks Baker (right) presents the Resilience Award to Gary Short and David Guest from Shorts Group

Double winner: Richard Thompson, The Business Magazine, (right) presents Special Recognition Award to Lindsey Hudson and Ben Thomas from Oxford BioTherapeutics

The Bremont showroom

Introduction by Pete Davison, further reporting by Sam Pither

New products, services and innovations are born of research and development (R&D) as are improvements to existing offerings. To keep Britain inventing, the government offers financial incentives, although regular changes to the system are at the whim of individual chancellors, and innovators need to keep a close eye on the tax rules – more on which later.

According to the latest available data from the Office for National Statistics, published in November last year, expenditure on R&D in the UK totalled £61.8 billion in 2020 – an increase on £2.1 billion since 2019 and £3.4 billion since 2018.

Businesses accounted for the bulk of R&D –£44 billion, or 71 per cent of the total – with the higher education sector investing £13.9 billion (22 per cent). The government sector, including UK Research and Innovation, spent £3.1 billion.

Government funding can be directed at the most unlikely sounding places: in March, the aforementioned UKRI announced £9 million of R&D funding to develop novel solutions in the agriculture sector, around crop harvesting, cow health and robotics to tackle on-farm issues.

That came hot on the heels of the February announcement of a funding package of £27.6 million into new battery technologies as part of the Faraday Battery Challenge.

As our spotlight on R&D shows, innovation covers the gamut of sectors, with manufacturers and engineers continuing to fly the flag for British ingenuity. However, two areas in which British business excels in innovation are biotech and pharmaceuticals, and information and computer technology.

UK is a world leader in medicine development

The UK really did come to the world’s rescue during the rush for an effective Covid-19 vaccine. And we remain a world leader in the development of treatments and medicines, many of which recognise their commercial value not at home, but in the lucrative health sector of the United States.

Meanwhile, artificial intelligence (AI) is increasingly a phrase on everyone’s lips, and a lot of work in the field is being done in the UK. The government wants Britain to be a global centre for the development, commercialisation and adoption of

responsible AI. And as of 2020 we were a leading player in the sector, only surpassed by the US and China, attracting almost £3 billion in equity investment in 2020.

Business leaders, though, think the government could be doing more to support the nation’s innovators. Research from the CBI – the Confederation of British Industry – revealed that investment in R&D has been stagnating for 30 years at 1.7 per cent of GDP. It would like to see this level of investment almost double, to three per cent. Government support in the form of grants and tax credits are vital to make this a reality, says the body.

High R&D spending firms win out in Spring Budget

So there was widespread dismay when Jeremy Hunt delivered his Spring Budget in March. While he did reverse some of the cuts announced by his predecessor Kwasi Kwarteng in September 2022, his update seems to most benefit research-intensive firms that spend 40 per cent or more of their total expenditure on R&D – leaving many SMEs out in the cold.

Necessity, they say, is the mother of invention. And invention – or research and development – is an important economic driver

David Fort, a partner at chartered accountants Haines Watts, which has offices in Reading, Oxford, Swindon and Cirencester, identifies a shift towards a more robust system, but argues there’s a balance to strike to ensure people are still able to take advantage of R&D incentives.

“We are feeling some clients pushing back a bit because it’s becoming onerous to provide the information. A couple of years ago, it was quite a good incentive. It still is, it’s just the amount of paperwork,” he says.

And Karen Campbell-Williams, head of tax at Grant Thornton, which has offices in Bristol, Oxford and Reading, added: “The Chancellor has gone some way to fill the gap left by the reduced SME R&D relief announced in the Autumn Statement.

“R&D intensive SMEs will be able to claim a credit worth £27 for every £100 they spend. However – as always – the devil is in the detail. The relief is expected to only apply in loss-making scenarios where at least 40 per cent of expenditure is on R&D.

“We would expect early-stage start-ups to benefit from this but, as they scale and overheads increase, many will lose the higher rate of support.”

And while our innovative businesses keep a close eye on the finances with the help of a good accountant, they’ll also need a lawyer to look after patents, designs, copyright and trademarks.

It’s never too early to consider IP protection

Anna Rawlings, senior associate at Bristol and Reading-based Osborne Clarke, advises: “It is never too early to consider IP protection for your business. Think of your business as an allotment – you sow the seeds then you can either neglect the crop, allow it to wither and be attacked or cultivate it and dissuade invaders.

“Option one costs nothing, but you won’t have any fruits to show for your labour. Option two involves continuing effort and cost but can result in a rich harvest with the opportunity to sell your prize marrow. This is how you should view IP protection, enforcement and value generation.

“There are various, overlapping IP rights

regimes. Registered IP rights include patents and trademarks. Trademarks protect your brand and logo. Patents are the gold-standard IP right because they grant you a 20-year monopoly to stop competitors using your invention.

“If you are developing new or innovative products or processes, seek immediate advice from a patent attorney. In the meantime, ensure the invention is not disclosed to anyone outside of a confidentiality regime.

“Some IP rights arise automatically on creation, such as copyright and database rights, which cover important digital assets such as software. Here, it is important to keep records of the creator, the date of creation, evidence of creation, and a copy of the creator’s employment contract.

“If the IP was not created by an employee, an assignment will need to be executed so the IP is legally owned by the business. This information will be invaluable in proving you own the IP if you need to stop copycats, or to show good title on the prospective sale or licensing of the technology.

And Chloe Fernandez, a paralegal at Thames Valley law firm Boyes Turner, notes: “Brands are important assets and are the unique identifiers that help customers choose one company’s products and services above another’s.

“It is vital to have the ability to enforce your rights if others use an identical or similar brand and a registered trademark makes it easier to take legal action, rather than trying to enforce an unregistered right.

“A trademark registration provides an

exclusive right to use that trademark for the goods and services specified in its registration and as it is recorded on a public database, it also serves to act as a deterrent to third parties.

“Without a registered trademark, you would have to rely on the common law action of passing off which is notoriously difficult to pursue.

“You must prove that you have developed goodwill or reputation in respect of your goods or services, that a misrepresentation has occurred leading to confusion and, finally, that you have suffered damage (usually lost profits or reputation).

“These elements are often referred to as the “classical trinity” and a high level of evidence is required to satisfy them, which often involves an expensive and lengthy process.

“It’s important to seek legal advice early on, as a specialist trademark practitioner will help to identify the element(s) of your brand that are likely to be registrable.

“A trademark must be distinctive and not merely descriptive to be registrable and clearance searches will need to be carried out, to establish whether your chosen trademark is available for use without infringing a third party’s rights.

“It is also important to ensure that your trademark application covers the most appropriate classes of goods and services, as the choice of classifications will be key to the protection the trademark will attract and you cannot expand the scope of protection by adding additional classes once your application has been submitted.”

Anna Rawlings, Osbourne Clarke

Chloe Fernandez, Boyes Turner

SOUTHAMPTON-BACKED HYDROGEN SHIPPING CONSORTIUM WINS MORE THAN £3.8M GOVERNMENT FUNDING

A consortium aiming to decarbonise the maritime sector has won a multi-millionpound government grant.

The Hydrogen Innovation – Future Infrastructure & Vessel Evaluation and Demonstration (HI-FIVED) consortium is led by ACUA Ocean, a zero-emission vessel provider, in partnership with zero-emission infrastructure provider Unitrove.

The project is backed by major maritime industry players including the University of Southampton, Southampton-based companies Composite Manufacturing and Design and NASH Maritime, the Port of Aberdeen, Zero Emissions Maritime Technology and Trident Marine Electrical.

Expected to be delivered in the autumn of 2024, the £5.4 million project is looking to establish a domestic green shipping corridor between Aberdeen and the Orkney and Shetland Islands.

It is planned that hydrogen-powered autonomous ships will be used to transport cargo.

It will use the £3.8 million government grant to manufacture and showcase its autonomous vessel and bunkering infrastructure technologies for liquid hydrogen.

Warwick Buckley, Managing Director of Composite Manufacturing and Design, said: “It is very exciting to be involved with

this very innovative and green project and to be part of the team to help realise zero emissions in the maritime sector.”

Dr Timothy Wilkes, Innovation Lead of NASH Maritime, said: “NASH Maritime are thrilled to be part of this consortium, using our maritime risk expertise to pioneer approaches to safety-case development and risk management for alternative fuels and unmanned systems, in a real-world context.

“The Marine Safety Management System we will develop will fill the gap that currently exists between vessel operator, port authority and regulator. This fits perfectly with our vision for a sustainable and accident-free marine environment.”

Surrey’s AFC Energy launches ammonia cracker technology platform

Cranleigh-based AFC Energy has launched its new ammonia cracker technology platform to deliver its hydrogen generation more effectively to energy markets across Europe and Asia.

Cracking involves the decomposition of ammonia (NH3) into nitrogen and hydrogen over a catalyst. Ammonia therefore acts as a ‘hydrogen carrier fuel’, since it can be transported over distances before being converted to energy-producing hydrogen.

It is hoped that the new technology

platform will help overcome the challenges currently associated with generating, transporting, and storing hydrogen. This comes as the latest development in AFC Energy’s Flex-Fuel strategy to meet growing demand for low cost, on-site production.

Hydrogen fuel offers a green solution to industries looking to decarbonise and interest has grown in the technology in part due to the challenge to energy security posed by the Ukraine conflict.

CEO Adam Bond said: “AFC Energy’s

new ammonia cracking technology platform takes us into the hydrogen generation market facilitating renewed energy security and reliability.

“Clean ammonia is affirmed as a preferred means of transporting hydrogen to end users, particularly in Europe and Asia, and now AFC Energy is targeting these key markets to enable a faster, more widespread adoption of hydrogen where storage and transportation challenges might otherwise present short-term challenges.”

OXFORD NANOPORE TO COLLABORATE WITH BIOMERIEUX

Oxford Nanopore Technologies is collaborating with French multinational biotechnology company bioMérieux to develop novel infectious disease diagnostic products.

The joint work of these two companies will provide patients with access to better care through the combination of nanopore-based clinical research and in vitro diagnostic solutions.

Oxford Nanopore Technologies CEO Gordon Sanghera said: “We are pleased to partner with bioMérieux’s IVD expertise to add powerful new tools for the fight against infectious disease.

“By offering rapid and accurate identification of pathogens and associated antimicrobial resistance at scale, we hope to better equip the specialists for whom speed and access to comprehensive data are key.”

Nano-based sequencing is used to analyse long DNA or RNA fragments in real time. The resulting signal will then be decoded using algorithms to offer the specific DNA or RNA sequence.

This technology’s real-time, scalable features enable a rapid and cost-effective detection of multiple pathogens in clinical samples. The initial stages of the collaboration will involve testing Oxford Nanopore’s sequencing platform alongside bioMérieux’s EPISEQCS software application.

Chairman and CEO of bioMérieux Alexandre Mérieu said: “We are excited to enter into a research partnership with Oxford Nanopore in the field of infectious diseases.

“New technologies such as sequencing hold promise to improve diagnostics and patient care; our teams will collaborate in this direction.”

Surrey’s Lime Microsystems help Vodafone create nano 5G network

Newbury-based Vodafone has created a prototype for a nano 5G network using a credit card-sized computer.

The new system, which can give any home or business a private, portable 5G network, uses a Raspberry Pi 4 and a small 5G-compatible embeddable softwaredefined radio circuit board (SDR), made by Guildford-based Lime Microsystems.

The SDR board enables any computer to become a miniature 5G base station, which can then be used as a dedicated private network, an extension of a larger private

network or connected to Vodafone’s public network.

Vodafone’s director of network architecture Santiago Tenorio, said: “This is just a prototype. But it has the potential to bring new cloud, AI and big data technologies to many of the small businesses we support across Europe. The next step is to develop and eventually produce it. Our door is open to interested vendors.”

The final product is expected to be housed in a router-sized box, and will offer an additional, faster WiFi link.

Innovations

from Oxfordshire win development funding from UK Space Agency

New ideas for climate services have received development funding from the UK Space Agency.

Supported by Space4Climate, the UK Space Agency funded the £85,000 call at the end of 2022. It aims to foster climate services innovation by developing UK business-viable ideas that use space data to address the impacts of climate change.

The funding winners include Deimos Space UK and Agtelligence which are both based at Harwell in Oxfordshire.

Deimos Space UK‘s project is ‘CSI WAMA’ – Climate Service Impact on WAter MAnagement, while Agtelligence‘s ‘FarmScore’ is an Earth Observation for land management and biodiversity.

Beth Greenaway, Head of Earth Observation and Climate at UK Space Agency and Chair of Space4Climate, praised the quality and innovative approach of all the applications. She said: “I am delighted to see this set of projects get started with UK Space Agency funding to enable the development of business models for commercial climate services based on space data.

“The number and quality of applications in this first climate services call shows the appetite and ability of UK companies to be innovative and at the forefront of using space to allow others to adapt or mitigate for climate change. We look forward to the Space4Climate community growing as these business opportunities progress.”

Oxford Nanopore

APS PRODUCE AWARDED £3.8M TO FUND ROBOTIC CROP HARVESTING RESEARCH

APS Produce, which operates facilities in Kent and West Sussex, has been named one of three projects to receive government funding for research and development which it hopes will boost agricultural productivity, sustainability, and climate resilience.

Run by a team at APS Produce, the AgriOpencore project was awarded more than £3.8 million to fund its work on robotic crop systems for horticulture. With the sector racked by labour shortages worldwide, there are substantial opportunities to reduce labour requirements through autonomous systems.

The money will help build software and hardware for the world’s first open development platform for agri-robotic crop harvesting. This will enable multiple organisations across sectors to collaborate and demonstrate developing technologies on English farms and is estimated to help accelerate the adoption of robot picking by two years.

Phil Pearson from APS Produce said: “The Agri-Opencore robotics project is an exciting and vital project for the fresh produce industry. It promises to deliver the significant progress required to automate fresh produce harvesting in the UK.

Reading’s Sondrel completes home network chip design project

Reading-based semiconductor design company Sondrel has completed an application-specific integrated circuit (ASIC) design for a home network devices provider.

“As this work brings leading technology providers, Dogtooth, Xihelm, and Wootzano, together with the academic excellence of the University of Lincoln team, we can expect significant progress towards autonomous harvesting.”

Agri-Opencore received funding alongside a project to develop an autonomous cow cubicle bedding unit, as well as another which explores optimised systems for potato cultivation.

Together, they represent a small part of the government’s £270 million Farming Innovation Programme. This in turn falls within its commitment to spend £600 million over three years on grants to help farmers invest in productivity, animal health and welfare, and innovation.

Katrina Hayter, Interim Executive Director for Healthy Living and Agriculture at Innovate UK, said: “These projects have all demonstrated not only an innovative solution to a real-life, on-farm problem, but also the value of partnerships and collaboration between different sector experts.

“For novel technology to truly succeed, it needs the input of the farmers themselves for the day-to-day realities of its use.”

An ASIC is a chip customised for a particular rather than general, use. The home network devices provider had partially designed it before asking Sondrel to complete the project. Sondrel then taped out the project, meaning the graphic for the circuit was sent for fabrication.

Awarded to Sondrel in late 2022, the design contract was fully funded by the customer and estimated to be worth £1.8 million to Sondrel this year, with the ASIC planned to enter production next year. Based on the customer’s projected production volumes and product lifetime, revenues from the ASIC could be worth more than $25 million over five years.

Graham Curren, Chief Executive Officer of Sondrel, said: “I am pleased to announce this new tapeout, our second since our IPO last year. This project was driven by the ongoing increase in data consumption and demand for improved performance which has resulted in the need for increasingly advanced wireless communication technologies.”

OXFORD UNIVERSITY SPIN-OUT LUMAI

SECURES

£1.1

MILLION INNOVATE UK SMART GRANT TO POWER OPTICAL COMPUTING REVOLUTION

Lumai, the Oxford University spinout unlocking the potential of optical computing, has been awarded an Innovate UK Smart Grant to commercialise its work in all-optical network training and deep optics for faster, more efficient computing.

Lumai is developing all-optical neural networks for next-generation artificial intelligence.

With £1.1 million in Smart funding won, the company is creating advanced optical computing processors where the information flow and calculations are not dependent on electronic processing.

Existing transistor-based digital electronics are struggling to support the potential offered by AI, especially with the explosive increase of computation demand to support breakthrough AI models such as ChatGPT.

To combat this, Lumai’s computing platform is capable of energy-efficient and ultra-fast,

parallel processing. Lumai’s optical neural networks can be 1,000 times faster – and much more sustainable – than existing transistor-based digital electronics.

The funding will support Lumai in building and launching optical neural networks for high-performance computing and machine vision.

It will also simultaneously lead developments in advanced optical technologies.

Tim Weil, CEO at Lumai, said: “The Innovate UK Smart Grant win is a testament to the team’s vision and passion to create optical computers that are significantly faster and consume less energy than traditional electronics.

“After spinning out from The University of Oxford, it’s fitting that we work together on the Innovate UK project to further enhance the capabilities of these advanced optical systems.”

Hampshire’s Hectare raises £16.5m for software development

Hectare, a Hampshire-based sustainable food supply startup, has raised £16.5 million in Series A funding round to continue developing its software, and help fuel international expansion.

Hectare provides farming businesses with insights into inventory, trading, logistics and the market for sustainable food through its Software-as-a-Service (SaaS) product, working with more than 130,000 farm businesses.

Hectare CEO Jamie McInnes said: “The toughest challenges to solve are often the ones you can’t see, even for those of us who are involved in the movement of crops and livestock day in, day out.

UKAEA awards £3.1m in contracts to grow fusion in the UK

The United Kingdom Atomic Energy Authority has awarded contracts to 18 organisations totalling £3.1 million.

The contracts, which are looking to accelerate the commercialisation of fusion energy and focus on overcoming specific technical and physical challenges, are all awarded to feasibility studies and range between £50,000 to £200,000.

They are funded by the UKAEA’s Fusion Industry Programme and awarded through the UK Government’s Small Business Research Initiative platform.

Projects funded by the contracts are all aiming to tackle challenges linked to the commercialisation of fusion energy, from novel fusion materials and manufacturing techniques through to innovative heating and cooling systems, all needed for future fusion powerplants.

Five of the organisations funded are within the South: 3-Sci Limited, Oxford Sigma, Archer Technicoat, Astral Neutronics and QDot Technology.

“Our aim is to solve the invisible problems in the food supply chain by creating connected digital solutions that enable everyone to make small, practical changes – from sourcing grain more locally to digitising paper-based processes like invoicing – to help hit big goals.

“Our vision is to create a connected farm-tofactory gate supply chain so crops, livestock and customers are looked after through sustainable agriculture.”

Hectare has seen significant growth and adoption since its launch in 2015. It says it has now facilitated more than a billion dollars in commodities trading through its technologies.

Tim Bestwick, UKAEA’s Chief Technology Officer, said: “In the past 12 months we have seen significant advances both in the UK and globally that demonstrate the potential for fusion energy to be a safe, lowcarbon and sustainable part of the world’s future energy supply.

“However, there are significant technical challenges to address for fusion energy to realise its potential. The Fusion Industry Programme is helping engage organisations and industrial partners to stimulate innovation and address these important challenges.”

HMRC V R&D!

Last year’s Autumn Statement revealed changes to R&D Tax Relief, dealing a significant blow to industries spearheading innovation in the UK. Loss-making firms, accustomed to claiming up to £33 cash credit for every £100 spent, now face a reduced credit of £19 for the same expenditure. The government partially reversed this decision in the Spring budget, allowing loss-making companies with at least 40% of overall spending on R&D activities to claim £27 credit for every £100 spent. However, its applicability is expected to be limited, leaving the remaining SME industry receiving diminished rewards for their risky and costly R&D endeavours. Jason Mitchell, Partner, MHA Macintyre Hudson, explains.

The Autumn Statement saw the SME Tax Relief Enhancement Rate drop from 130% to 86% and the cash credit rate of surrendered losses decrease from 14.5% to 10%, from 1st April 2023. High lossmaking start-ups engaged in risky and innovative technological development experienced a reduction in cash credit on R&D expenditure, from 33p to 19p per £1 of R&D Spend. The Autumn Statement also indicated the exclusion of International Subcontracted costs, scheduled to take effect from 1st April 2023. While the Spring Budget postponed this measure to 1st April 2024, the ultimate exclusion of these costs severely dampens the incentive for R&D start-ups in the UK, conflicting with the government’s ‘Global Britain’ agenda. Claiming R&D relief is increasingly complex, as the Spring 2023 Budget unveiled a new category of ‘R&D intensive’ SME, where 40% of their total expenditure is R&D-related. The enhanced deduction for these companies remains at the reduced rate of 86%, but the enhanced loss can be surrendered at the 14.5% rate, yielding a cash credit of 27p/£1. However, the

‘R&D Intensive’ SME qualification won’t be available until the government implements the requisite tax legislation. Meanwhile, the Autumn 2022 changes came into effect from 1st April 2023, with claimants receiving only 19p/£1 of R&D spend rather than 27p/£1. These SMEs can delay submission until the new legislation is in place or submit under the current legislation, amending the claims once the new legislation is introduced. This ‘interim’ period adds complexity and uncertainty, potentially causing economic hardship and postponing any re-investment reliant on R&D cash credits

New HMRC treatment on R&D Project involving direct commercial deliverables:

Subcontracted R&D: Precedent vs New Position

Where businesses use contractors, it can be difficult to determine who the R&D belongs to and ensure the same work isn’t being claimed for by both the contractor and the contractee. The previous precedent on subcontracted R&D, used a test to check if a project or a technical package of works belongs to a company for inclusion in its RDTR claim:

• The Claimant Company (Subcontractee) owns the IP.

• The above also has the Lead Technical Professionals.

• R&D work is done at cost, i.e. no direct relationship between the project funding and R&D work. (If the company can bill for additional hours/materials for the R&D work, it would fail to meet this criterion, and the project must be claimed under RDEC).

• A Project may be contracted to an SME Company by a Large Company, where the IP specifically belongs to this Large Company. and the R&D work is accounted for in the contractual agreement; the Large Company cannot claim for the subcontracted work (as per RDEC rules), but the SME can claim this work under RDEC

For SME RDTR claims, this precedent was a sensible way for the industry to selfregulate. However, recent experience with HMRC has shown a more aggressive stance being adopted, where ANY work that fulfils a contractual deliverable is considered Subcontracted R&D. This new position has emerged, unofficially (or not announced in HMRC policy), since Summer 2021. The industry believes such a stance is unjustified and idealistic, as few companies have the resources, or means to develop a fully-fledged prototype at cost with no commercial contract with a client in place, and then proceed to build the actual deliverable separately.

Where the contractor is a Large Company or Individual, claims can still be made under the less generous RDEC Scheme, even though the company and project may meet the other RDTR Requirements. This contradicts the previous position ignoring IP ownership and the presence of competent professionals within the claimant company.

It also suggests SME’s could claim for R&D work encountered by their subcontractor regardless of involvement in the project, which goes against the principles of the scheme.

MHA have national R&D specialists who help UK businesses to identify qualifying expenditure and help to maximise their R&D Tax relief claims. Their team is made up of qualified and experienced financial advisors, accountants and tax specialists with scientific and engineering qualifications who can provide expert advice in all areas of the claim and support any defence of existing claims taken into enquiry by HMRC.

Jason Mitchell

The MHA R&D Team have successfully resolved numerous complex enquiries by HMRC on claims originally prepared by the client themselves, or boutiques, and expects HMRC to continue enforcing this new position on Subcontracted R&D aggressively, unless they are ruled against in a First Tribunal hearing and then an Appeal (the latter confirming the position into case law).

Subsidised R&D: Precedent vs New Position

Any R&D projects carried out by a company that would otherwise claim under SME RDTR, would have to claim in RDEC where there’s a direct relationship between the payment made and the R&D work done. Specifically:

• The previous precedent involved consideration of the levels of funding the project received, whereby claims must be made within RDEC to the extent they are subsidised. An argument was made that contracts are often fixed price, with additional payments only relating to changes in the scope of works. Therefore, no direct relationship between the R&D work and the payments from the client.

• HMRC’s new position asserts that since the company realises a commercial gain from the work done, it is considered subsidised. This was challenged in a First Tribunal Hearing, (Quinn International vs HMRC), where the judge admonished HMRC’s position, stating the legislation as written was never meant to be applied this way. However, HMRC haven’t appealed the decision, to avoid the position becoming legal precedent

Conclusion

Despite the expectation that the UK’s R&D Tax Relief Schemes will continue supporting innovative companies, the multitude of changes in structure, process, and incentives necessitates thorough planning and adaptation. Companies already claiming R&D relief must completely refresh their claim processes in light of these modifications.

The MHA R&D Team is actively engaged with HMRC consultations regarding the future of the R&D schemes and welcomes any feedback or concerns.

SUMMARY OF CHANGES TO THE 2 MAIN R&D SCHEMES IN THE UK

PRE-31 MARCH 2023:

SME R&D TAX RELIEF: is more generous, previously providing Tax Benefit up to £25p/£1 for Profitable period, £33p/£1 for highly Loss-making periods, and £18.85p/£1 at breakeven; however, care has to be applied, as it has additional conditions for Subcontracted R&D & Subsidised Expenditure, and where projects have any form of government subsidy/grant.

R&D EXPENDITURE CREDIT (RDEC): Primarily claimed by large companies, with a 13% Tax Credit rate applied on Qualifying Expenditure. The credit is added ‘above the line’ in accounting terms, i.e. it adds to the Taxable Profits made by the Company. This Tax Credit is therefore Tax Liable, and under the 19% Corporation Tax Rate, the effective RDEC Tax Benefit is 10.5% of the Qualifying Expenditure.

Changes to UK R&D Tax Relief Schemes:

The government have confirmed their intention to eventually merge the SME & RDEC Schemes by April 2024. While details have not yet been confirmed, it’s expected to be more heavily modelled around the RDEC Scheme.

FROM 1ST OF APRIL 2021 ONWARDS:

• SME R&D TAX RELIEF: the Cash Credit Cap came into force, which is £20,000 + 3*(total PAYE + NIC Liabilities) – (if claim is made in the SME Scheme), and that most, if not all of the R&D Enhanced Deduction will be exhausted to reduce the Tax Liability (the cash credit cap is only significant if the claim is larger, and losses are even larger).

• R&D EXPENDITURE CREDIT (RDEC): Any repayable cash credit (i.e. where relief against Taxable Profits is exhausted in the claimant company and group) is still capped by the total Employer PAYE + NIC Liabilities of R&D Staff.

• SME & RDEC: Introduction of CT600L Supplementary form to the normal Corporation Tax Return (CT600), which records the PAYE Reference and PAYE + NIC Liabilities.

FROM 1ST APRIL 2023 ONWARDS:

• SME R&D TAX RELIEF – COST CATEGORIES: An explicit inclusion of costs relating to Cloud Infrastructure and Acquisition of Datasets, and expansion of the Definition of R&D to include Pure Mathematics.

• SME R&D TAX RELIEF – BENEFIT RATES: Enhancement rate reduced from 130% to 86%, and a reduction in Cash Credit rate of R&D Enhanced Losses from 14.5% to 10%. In addition, the ability for ‘R&D Intensive’ companies to be recognised as those spending at least 40% of overall expenditure on R&D activities, who will be able claim a payable credit rate of 14.5% instead of 10%. However, legislation for this is not in place yet, and the government recommends claiming at the lower rate initially (10%) or delay the claim and submit later (or re-submitted the same claim to realise the higher credit rate of 14.5%).

• R&D EXPENDITURE CREDIT (RDEC): An increase in the Tax Credit rate for the R&D Expenditure Credit Scheme (RDEC) from 13% to 20%. This is in line with the increase in Corporation Tax Rates from 19% to 25% coming into force at the same time. This would mean that the minimum effective Tax Benefit rate to be 15%.

• SME RDTR & RDEC: Pre-Notification on the intention to claim for accounting periods starting on or after 1st April 2023, with companies required to provide additional digital information (applicable to claims made on or after 1st August 2023).

FROM 1ST APRIL 2024 ONWARDS:

• SME TAX RELIEF: An exclusion of any International/offshore subcontracted activities.

• SME RDTR & RDEC: Potential merger between the SME & RDEC Schemes

For more information about MHA visit www.macintyrehudson.co.uk and to find out more about how the firm supports clients with R&D Tax Relief claims or with HMRC investigations, email Jason Mitchell at Jason.Mitchell@mhllp.co.uk

TECH INNOVATIONS

We’ve bought together a selection of the coolest technological innovations under way in the South East

by Sam Pither

There’s something intrinsically cool about technology. Maybe, in part, it’s seeing gadgets once considered little more than fantasy becoming a reality. There may also be an element of imagining how the latest idea might enhance your day-to-day life, or even just make it a little easier.

From jetpacks to jet engines, the region is hot bed of gadgets and gear to make your inner child squeal.

There are also companies designing technology to make the world a better or safer place, such as Kent-based VisionTrack, which is working to make roads safer, and Berkshire-based Occuity, which is making the screening and testing of certain medical ailments quicker, easier and more sustainable.

Maverick Aviation Hampshire

Fulfilling a long-term dream of many, Maverick Aviation is developing a jetpack, as well as an air utility vehicle and the flight control software to make them both work.

With applications in defence, rescue and disaster relief, engineering

and maintenance, and entertainment and experience, Maverick’s hands-free jetpack is manufactured using aluminium, carbon fibre and 3D printed parts, and uses sustainable fuels in operation.

Occuity Berkshire

Reading-based medtech firm Occuity are on a path to revolutionising the way we monitor and screen for certain medical afflictions.

Occuity’s handheld devices use a low power beam of light into the eye to take readings which correlate to different health conditions. The company’s first device, the PM1 will be used to measure the corneal thickness, screening for glaucoma. The non-contact nature of the device means it can be used in high

Reaction Engines Oxfordshire

Reaction Engines is developing more sustainable jet engines for space. Its SABRE engine eliminates the need to carry on-board oxidizer during air-breathing flight segments, enabling aircraft-like horizontal takeoff and landing. This reduces cost, infrastructure and mission timelines while increasing responsiveness and system reusability.

street opticians, making screening easier and more widespread.

The company is also working on a device to measure blood sugar levels, dubbed Indigo, which could replace the current method of drawing and testing blood. As well as significantly increasing comfort for the patient, it has the potential to significantly reduce the amount of disposables used in testing for the condition.

VisionTrack Kent

Deliveries by HGVs power our world, however in 2021 there were three fatal or serious collisions per day involving these vehicles, while LGVs were involved in eight per day.

Kent-based VisionTrack is working to change this. The company’s NARA software uses AI to assess footage of driving events, near misses and collisions, speeding up the process and eliminating human error, allowing vehicle operators to make the best use of video telematics.

Streeva Surrey

Streeva’s first software tool, Swiftaid is helping to streamline the process for charities to claim Gift Aid, which adds an extra 25p for every pound given, on their donations.

According the company, every year £564 million in Gift Aid goes unclaimed. Charities can send Swiftaid donation information, which is then matched against millions of UK taxpayers. When matches are found Gift Aid is added and 25 per cent more is sent to the charity.

Navenio Oxford

GPS has come a long way from the early days of Sat Navs trying to send drivers into rivers, but as soon as we go inside, we go off the map.

Oxford-based Navenio uses sensors in smartphones to provide indoor location technology. This is particularly helpful in healthcare, the largest employer in the world where the majority of staff work indoors. The location data then works alongside Navenio’s Intelligent Workforce Solution to improve the efficiency and workflow of staff and teams, automating tasking systems based on staff location.

Musemio Hampshire

What if children could travel through time and visit the Cretaceous Period, Ancient Egypt or 1944 London, all while sitting on their living room sofa?

With Hampshire-based Musemio’s VR smartphone app they can, exploring different time periods through immersion.

The company has also developed a level which sees players jump inside a computer to learn about different computer parts and concepts, and another which teaches them about the realities of homelessness in partnership with Crisis UK.

Sensanti Hampshire

High performance surveillance asset manufacturer Sensanti has developed an ultra-low light level long range product (ULARI).

The product uses high-speed processing and algorithms to extract high-quality images from very few photons. Along with security, the product has applications in humanitarian and search and rescue situations.

It has significantly improved low light level capability,

Emteq Labs Sussex

Emteq Labs, based in Brighton, creates wearable technology which can monitor and translate human intent and expression into creditable and actionable feedback about behaviour.

The emteqPRO can both integrate with Pico and HTC VIVO VR headsets and be used to monitor real world exposure with the open face model.

Measureable.Energy Reading

Reading-based Measureable.Energy has created a smart socket designed to cut down on small power waste – the energy consumed by devices left on standby or fully on while not in use, especially overnight.

It uses machine learning and software to identify devices plugged in, monitor their energy use, report real-time data and automatically switch devices on and off to save power.

SOUTH EAST WINE PRODUCERS ON CLIMATE CHANGE FRONTLINE

by Stephen Emerson, Managing Editor

Wine producers pride themselves as custodians of the land.

They are on the climate change front line, witnessing early crop-destroying frosts and scorching hot summers which can lead to earlier harvests – and also, sometimes, bumper harvests.

Four major players in the South East English wine sector spoke to us about global warming, the value of wine tourism, opportunities for growth and future headwinds.

Chapel Down, established at the turn of the millennium, has grown into the largest producer of English wine, selling 1.5 million bottles of wine in 2021.

“We are focused on practicing sustainable farming and viticulture in our vineyards,” said Chapel Down Chief Executive Andrew Carter.

“We have introduced indigenous grasses between rows to minimise the use of herbicide, our packaging is recyclable and our glass made from 75 per cent recyclable material.”

Laithwaites was founded 53 years ago by Tony Laithwaite who worked on French vineyards before spotting an opportunity to cut out the middlemen and bring good quality French wine back in a van to the UK, selling it direct to the consumer at affordable prices.

Evidence of climate change drives investment in green energy

David Gates, Chief Executive Officer at Direct Wines, part of Laithwaites, said his company had committed to be net carbon neutral by 2035.

“The wine industry is hyper aware of what’s going on, especially with weird climate events like frosts in May, or when it’s too hot, it can wipe out your entire crop. We have targeted the low hanging fruit around energy, travel, switched to green energy where we could and rolled out electric car schemes.

“We want to double our bulk wine shipping and bottle it here to reduce our carbon footprint.”

Charlie Holland is

chief

is at the top of our list and, rightly so, at the top of our customers’ list - our green credentials are really important to us.

“We’re a founding member of the Sustainable Wines of Great Britain which promotes sustainable vineyard management. Global warming has a big influence on the wine industry - the level of ripeness we can achieve now just wasn’t possible 15 years ago. So we’re seeing levels of warmth and sunshine increasing and we’re able to ripen the grapes to a much higher level than we used to.”

Charles Simpson and his wife Ruth

CEO and

winemaker at Gusbourne. “Sustainability

We speak to four major players in the region’s wine sector on the challenges and opportunities they see in the years ahead

Chief Executive Officer of Direct Wines, David Gates

The Romans first identified the South East as suitable for viticulture, but it wasn’t until after World War II that wine-making in this country began to enjoy a renaissance.

Retired Royal Air Force generals set up vineyards in the south east, armed with knowledge gained from their postings in Germany.

English wine industry enjoys accelerated growth

The emergent wine produced by the hobby farming generals lacked the refined taste that we have become accustomed to today, and its sweetness was at odds with the dry palette of the modern consumer.

From the 1980s onwards, big industry players such as Nyetimber and Gusbourne began to arrive on the South Coast and drove a movement towards French grape varieties and the emergence of English sparkling wine.

Since then, the 700 plus vineyards in England and Wales have seen sales rise by 70 per cent over the past two years.

The South East, particularly Kent, has capitalised on the opportunity that wine tourism brings when it comes to driving additional revenue, supporting the sometimes fragile rural communities where vineyards are based.

The Wine Garden of England is a collective made up of eight vineyards, including Simpsons and Chapel Down, and promotes wine tourism in Kent.

Charles Simpson and his wife Ruth

founded the 90-acre Simpsons Wine Estate in 2012 near Canterbury and have bought a further 22 acres to increase their production of still and sparkling wines to 300,000 bottles a year.

Wine tourists spend eight times more than average visitors

Charles said: “Wine tourists spend eight times as much as your average tourist.

“The wine tourist loves fine food and wine and likes nice places to stay. They also don’t want to go to just one wine estate when they are travelling to a region, they want to visit a number.”

Andrew Carter said growth for Chapel Down would continue on the domestic front while he also saw opportunities in exports and online.

He said: “Many bartenders already understand the quality of the product, and our online sales are now 30 per cent of our business, with 55,000 consumers buying directly from us.

“We are in 14 markets around the world, but it is only two per cent of our business. It feels as if we have only just touched the surface there.”

Charlie Holland at Gusbourne added: “A key part of our story, and something we feel sets us apart, is that we only make vintage wines. When guests visit the vineyard they are able to truly experience that ethos in person, and to understand why it is so integral to making the

exceptional quality wines that we produce.”

Scandi love for English wine is exporting opportunity

Simpsons Wine Estate markets its wine at luxury hotels and high-end restaurants, however it is the speed of export growth to Scandinavia that is particularly impressive, with 40 per cent of exports being dispatched to Norway in 2021.

“The Scandinavians absolutely love English wine, said Charles. “Norway in particular, are real Anglophiles.”

“The French, Italians and Spanish will never buy English wine because they are too busy enjoying their own, so they are challenging markets to break into.

With growth opportunities at home and abroad, what could impede the South East’s wine industry from continuing its growth journey?

David Gates said alcohol duty reforms, due in autumn, mean higher taxes for wines with a higher alcoholic content and could hinder some parts of the industry, but would give a boost to the sparkling wine sector that will see a price reduction.

He said: “The alcohol duty reforms will add significant costs to selling wine and is discriminating against wine in favour of beer or cider.

“English sparkling wine however will benefit from a 20 per cent reduction.”

Chapel Down CEO Andrew Carter

Why drink a bottle of Sauvignon Blanc from New Zealand when you can drink a bottle of Bacchus from Kent?

Charlie Holland, Gusbourne

TEN KEY VINEYARD DEVELOPMENTS IN THE SOUTH EAST

We look at 10 developments, large and small, with the potential to change the face of the wine industry in the region

The burgeoning wine industry in the South East is driving widescale vineyard development across the region with the millions flowing into developments that would not look out of place in the South of France, while smaller more boutique developments are bringing fresh ideas and vigour to what is still an early stage industry.

Exton Park Vineyard, Hampshire

Hampshire’s Exton Park, owned by entrepreneur Malcolm Isaac, sits in the rolling chalk hills of Hampshire and hand-harvests grapes from a 60-acre single vineyard.

The company opened a new headquarters on site in March last year fitted out by renowned interior designer Dunning & Everard.

Hambledon Vineyard, Hampshire

Hambledon Vineyard in Hampshire, England’s oldest commercial vineyard, established in 1952, is set to open a new visitor centre in 2023.

The vineyard now comprises over 80 hectares of vineyards, 75 per cent of which were planted five years ago as the result of an expansion.

Chapel Down

Kentish winemaker Chapel Down is planning to relocate its operations to a site near Canterbury in a project expected to cost between £20 million and £30 million.

The move will allow Chapel Down to massively increase production.

Domaine Evremond

Domaine Evremond is a collaboration between Champagne Taittinger, its UK wine partner and premium wine specialist Hatch Mansfield and private investors who acquired land in 2015 in Chilham which sits six miles from Canterbury.

credit Jenny Zarins

The Grange, Hampshire

The Grange’s new winery opened late last year and has a current capacity of 50,000 bottles a year.

The winery at the Burge’s Field vineyard will allow workers to take fruit from the vineyard which is just 75m away.

Gusbourne Vineyard

Gusbourne Vineyard plans to build a permanent two-storey structure on its estate in Appledore, near Tenterden.

A planning application for ‘The Nest Building’ shows a wood-clad structure next to the winery itself and will provide additional tasting rooms as well as an improved kitchen and storage areas.

Bolney Wine Estate, Sussex

Last January Freixenet Copestick acquired Sussex-based Bolney Wine Estate for an undisclosed sum.

The estate produces between 250,000 and 300,000 bottles of traditionalmethod English sparkling and still wines per year.

Ridgeview Wine Estate

Last year Ridgeview Wine Estate in Ditchling opened a new all-weather outdoor venue alongside a wine tasting room, a small café and a retail area on the ground floor, with a meeting space and further tasting rooms on the floor above.

Woodman Wines, Winchester

Woodman Wines in Sparsholt has planted its first vines in a bid to create a vineyard centred around eco-tourism.

Richard and Chrissie Morse made the decision to convert some of their land into a vineyard just over a year ago and plan to eventually produce 18,000 bottles of wine each year after their vines reach maturity in 2028.

Kentish Wine Vault

The £30 million Kentish Wine Vault project is headed for a public planning inquiry after permission was refused at local level despite being recommended for approval by planning officers.

The Cuxton development has been designed by Foster + Partners’ to sit within the landscape, meaning the majority of winemaking and bottling facilities will be positioned below ground.

If built by Vineyard Farms, it will have onsite vineyards and winemaking facilities to produce up to five million bottles of sparkling wine per year.

INNOVATIVE TECHNOLOGY

SOLVING WINE INDUSTRY FUNDING BOTTLENECK

Ferovinum platform provides finance to an industry with long lead times

Wine is a thirsty business on the cash front with deep pockets required to plant a vineyard and even deeper pockets needed to build the infrastructure to make your new wine and convince people to buy the vintage you have nurtured from seed to grape.

Founders of London-based Ferovinum, Mitchel Fowler and Daniel Gibney, spotted the problem that wine, and indeed spirit, producers were experiencing not only in the set up but also the growth stages of their businesses and set about buildng a funding platform that would provide much-needed capital.

Mitchel’s background is in the commodity markets having held senior positions at multinational banks including Macquarie and Barclays where he spent time building up technology that would use physical commodity trading to release capital rather just using traditional debt.

Hailing from Australia’s Hunter Valley wine region, Mitchel was acutely tuned to the potential benefits that the commodities system he had helped develop could have for the wine sector.

He set up Ferovinum, the Fero meaning Latin for holding up, with his co-founder Daniel in 2018 and began working with wholesalers and wine producers to adapt the commodities product they had been working on.

Wine industry driven by technology

By 2020, they began working on the technology that would suit the needs of the wine industry and those banking and institutions which would be able to deploy capital onto it.

It is the only platform of its kind in the UK lending to the wine industry with the team based in the London, Perthshire and Sydney.

Mitchel Fowler, Ferovinum

There is generally a desire from banks to deploy capital into the sector but they will have to repurpose tools from other areas and it can be inefficient

Mitchel said: “You plant the vineyard, build your winery, plant your vines, wait years for your vines to start producing and even once you have the wine made, in bottle, matured and ready for release, you can’t grow without the business absorbing extreme amounts of capital.

“We set up this product to solve what is becoming a real issue for the wine industry. We see ourselves not as a bank but more of a service provider and a business tool for wine industry clients.

“Banks are also clients of ours and our tool allows banks and institutional investors to efficiently deploy capital into the industry.”

So how does it work Ferovinum work for the 700 plus wine producers in the UK?

Rather than taking out loans, the platform enables vineyards to place stock on the platform and turn it into a just-in-time

asset which acts as a vehicle to fund and manage their stock for the period they are maturing, or even during the marketing process.

Mitchel said: “There are a lot of similarities between the large scale commodity markets and the wine and spirits and trade, however unlike the commodity markets there is a huge deficiency in capital in the wine business as there are a lot of smaller independent businesses.”

Applying investment banking concepts to the wine industry

Helping wine producers to break into new markets overseas is also an opportunity that Ferovinum sees for growth.

The company will soon add capability into its platform that will allow firms to hold stock in its target export markets in Europe and the United States.

This means UK exporters will be able to fund, for example, wine stock held in the US until it is sold to a distributor with the same facility also available to American clients looking to export to Britain and Europe.

Mitchel said: “Our goal is to take away the biggest points of friction for people in terms of getting their products into the most attractive markets.

“We fund the stock while it is in the UK, fund it getting to the US, while it is held in a warehouse before being delivered to a distributor.”

Wine industry underinvested in software

When the Ferovinum team began developing the platform, they discovered that much of the wine ecosystem had basic technology stacks due to the fragmented nature of the industry and the number of small producers.

This was a light bulb moment for the firm, and they began to add on logistics and sales bolt-ons to the platform.

Mitchel said: “The wine industry, because of its fragmentation, is massively underinvested when it comes to its software.

“The finance was the core part of our product but we discovered we could also add huge value for our clients through software integrations with different parts of the supply chain.

“When they sell to a customer, they can now manage sales, inventory, funding, credit risk and insurance all in one place.

“We have also built software integrations with third party logistics and fulfilment providers to help automate and reduce the operational cost of getting the product to customers.”

UK wine producers have long lamented that lack of banking options for the country’s growing wine industry pointing to the custom financial facilities in the wine markets of France, Italy and Spain.

Charles Simpson of Simpsons Wine Estate said: “Countries in traditional wine markets have banks specifically set up to support the wine business and understand the process that goes into wine-making and the long term process.

“They have financial products that are very well suited to our industry.

“However in the UK it is such a young industry that some banks do not understand it yet and are opting for the square peg in a round hole approach to funding.”

Mitchel said there was a will from banks to invest in the sector but that they were drawing on lending models from other industries such as agriculture and manufacturing equipment when making decisions.

He said: “Each wine client is unique in terms of its inventory and products, and it is therefore quite a bespoke product for a bank to offer.

“There is generally a desire from banks to deploy capital into the sector but they will have to repurpose tools from other areas and it can be inefficient.

“We think our platform solves a core problem for banks in that it uses our data and technology to provide a more efficient and risk-managed way to lend into the industry.”

The finance was the core part of our product but we discovered we could also add huge value for our clients through software integrations with different parts of the supply chain

REGIONAL PROPERTY OUTLOOK

Online shopping is driving a boom in the warehouse market, while the closure of retail units seems to be slowing. Meanwhile, workers are starting to venture back to the office - which might also give retail centres a much-needed boost

OFFICE SPACE – FLEXIBLE WORKING STILL CHANGING WORKING HABITS

The office market is tough where - unlike the industrial logistics market – there is a healthy supply pool, according to Thames Valley property agents Neil Seager and Alec White of Haslams.

“The activity is mainly lease-event driven as occupiers grapple with flexible working brought about by the pandemic. Environmental, Social and Governance (ESG) and wellness is now higher up a checklist for occupiers which has resulted in the predicted fligh-to-prime. Fitted solutions are also now very much part of the mainstream.

“Several large corporates are rumoured to be in the market to include Wood, Visa and Lonza. Where these requirements

land will provide a steer as to which way the market is heading.”

The secondary office market, however, remains the most challenging as a number of these offices are put up for sale by investors.

Simon Bateman, asset manager at Lakeside North Harbour, Portsmouth adds: “Flex, environment and community are all becoming increasingly important in creating more attractive workplace propositions for employees.

“While the pandemic left many firms weighing up the right balance of officebased activities and work from home, nobody can argue with the benefits of

real face-to-face workforce engagement. “Gone are the days of four walls, desks and the bare minimum. Instead, firms are seeking more multi-functional, collaborative spaces that offer more amenities for staff, both while they are working and on breaks.

“Last year was a year of growth at Lakeside North Harbour, where existing occupiers’ staff flooded back, while we signed a raft of new lettings and experienced a healthy volume of enquiries.

“Constant change and adaptation is what’s required of us, and other workspace providers to stay relevant and appealing to businesses of all sizes.”

Lakeside North Harbour, Portsmouth

INDUSTRIAL & LOGISTICS – OCCUPIER DEMAND REMAINS HIGH

In the Thames Valley, the industrial and logistics market remains robust, but will be hampered by a lack of supply of suitable premises, says James Newton, surveyor at property consultancy, Vail Williams.

“Occupier demand for high-quality industrial and logistics premises boasting a good range of green credentials will remain, but so too will restricted supply. This, together with rising build costs and lower yields, is likely to push rents on further this year as landlords seek to deliver meaningful stock to answer demand.

“Yield movement and build costs will bring into question development viability, reducing confidence in speculative development. However, developers and landlords delivering new or refurbished

high-quality stock to market will see it snapped up, if they are brave enough to build on spec – such is the level of occupier demand.

“This represents a great opportunity for landlords to achieve a good return on investment in the industrial market.

“This also creates the chance to deliver high-quality new or refurbished stock with greener specifications and ESG credentials – something which is vital amid changing energy performance certificate (EPC) rating requirements which, from April 1, see commercial properties with EPC ratings of E of below deemed ‘sub-standard’ and unlettable.

“By 2027, the EPC standard will become a C and by 2030, a B – working towards the UK net zero strategy by 2050.”

RETAIL – A SLOW RETURN

The dormancy of the retail property market felt during the pandemic has finally abated, say Neil Seager and Alec White of Haslams.

“This recovery has been tapered by the cost-of-living crisis as households tighten their belts.

“E-commerce has flatlined at around 38 per cent of the total retail sales which whilst still large provides a fillip to the high street.

“There has been a noticeable upturn in demand. This includes an expanding fast-food offer and planned expansions of existing high street brands to include Dune, Mango, Primark, Asda Express and Monsoon.”

Peter Holt, director at Holt Commercial, said: “Online shopping has meant big names are occupying fewer shops – with large out of town retailers now rarely taking units in excess of 30,000 sq ft.”

“Smaller retail spaces of up to 3,000 sq ft are experiencing strong demand because of their ability to be converted quickly to other uses, such as a restaurant or gym, without the need for planning permission.

“This flexibility is likely to continue to fuel mixed use retail spaces.”

SCIENCE & TECHNOLOGY NEEDS SPACE TO GROW

Around 67 per cent of Oxford lab floorspace was taken by Cell and gene therapy (CGT) companies in 2022, says Rob Beatson, head of office agency at Bidwells, Oxford.

“With the market set to grow from $5 billion in 2020 to a staggering $58 billion in 2026, the real estate implications are hard to ignore.

“Businesses in this sector have unique needs when it comes to location. Proximity to clinicians, the CGT research ecosystem, and hospitals with specific

expertise is essential for research and development.

“Manufacturing facilities are equally demanding in terms of location due to the need to maintain the integrity of the products in advance of patient treatment.

“Specialised facilities, such as cleanrooms and laboratories, are necessary to meet regulatory requirements and ensure the safe development of therapies, and the transportation of patient materials requires specialised conditions, making the choice of location critical. Being located near a

hospital with very specific expertise is essential.

“Moderna’s decision to locate its new facility at Harwell highlights the importance of the experience and knowledge held within the local ecosystem and the importance of global standing clusters and their potential to attract keystone companies.

“The firm’s arrival in Oxfordshire will now attract other businesses keen to co-locate with the global giants in the way that AstraZeneca’s arrival in Cambridge did.”

James Newton, surveyor at property consultancy, Vail Williams

SMOOVE ON A MISSION TO TRANSFORM THE PROPERTY MARKET

Smoove CEO Jesper With-Fogstrup on how the company is disrupting the home-buying process

By Stephen Emerson, Managing Editor

Conveyancers are the cogs of the property market engine and the driving force behind every transaction. However the creaky systems on which they operate lead to a slow and lengthy home-buying process.

The fragmented process of buying and selling a home is a problem that Smoove, based in Thame in Oxfordshire, is aiming to solve through its suite of products eConveyancer, Smoove Start and Smoove Complete.

Smoove, formally ULS Technology, is an AIM listed company that employs around 100 software engineers, analysts and data specialists.

It was founded by two entrepreneurs, Nigel Hoath and Andy Weston in 2003, who saw an opportunity in the comparison market for property.

The founders exited the company following a private equity investment from LDC with the company going on to float in 2014.

Jesper With-Fogstrup, CEO of Smoove since 2021, said: “Moving home can be painful as there are lots of stakeholders and communication is not always free-flowing.

“It takes a long time, currently about 154 days, from where you agree a price with the buyer to where you sit in your new front room with a cup of tea or coffee.

“It’s a long process, lots of things can happen and it’s full of people not knowing what the progress and milestones are.”

Smoove’s products aim to oil the wheels of the home-buying process.

eConveyancer is used by brokers and lenders to introduce consumers to

conveyancing lawyers, allows conveyancers to onboard consumers digitally and lets both parties communicate and view key milestones.

Smoove Start is targeted at estate agents who also play an important role in speeding up the process for buyers and sellers by getting ahead of the mandatory administrative tasks early, as well as introducing buyers or sellers to a conveyancer so that progress on the transaction goes quickly and smoothly.

Smoove also acquired a small conveyancing firm in a bid to develop a platform that allows conveyancers to work in a way that suits them.

The outcome was Smoove Complete a coworking platform which allows conveyancers to go self-employed while having the benefit of a regulatory framework provided by Smoove.

Jesper said: “Smoove Complete is a bit like the Uber for conveyancing.

“We saw an opportunity from the pandemic where conveyancers were overworked, over-managed and didn’t make as much money as they felt they should be making.

“Smoove Complete allows conveyancers to go self-employed, work on the business platform we have built using our permissions, insurance and work with our mortgage providers and our processes.

“We unleash and untangle the conveyancer to just do what they do best, which is the conveyancing bit in the middle.”

Disrupting the property market

The process of buying and selling homes is one of the last sectors of the economy to be digitally disrupted with much of the process still reliant on a physical paper trail.

Jesper explains why the conveyancing sector has been slow to embrace change.

He said: “There are a lot of stakeholders to navigate on the legal side and conveyancing is considered a low margin contributor compared to other strands of legal work.

“This means that the systems they end up working with, case management systems, are not really built for conveyancing and are more transactional.

“Conveyancers, by nature, are very risk averse and will hold off embracing new ways of doing things as they are very customer focused and want to do the right thing by them.”

Jesper believes that the company’s product-led strategy will appeal to investors as it will open up greater market share.

He said: “We see the opportunity to grab more market share in a market which is hugely fragmented.

“Our platforms allow access to customers early and will attract the introducers who are the demand drivers in the marketplace.”

Jesper moved to Smoove two years ago having spent much of his career working in the online comparison and travel and insurance space with spells at the TUI Group and comparethemarket.com.

He also ran HSBC’s global digital channel with a brief to make banking more personable and relatable to the consumer.

Jesper said: “I had an interest in being part of disrupting the property market and making buying and selling a home much better.

“This was a unique opportunity where there was an established business that we could grow organically and build on the current offering.”

Since joining, he has rebranded the company from ULS Technology to Smoove in April last year and overhauled its platforms.

“The rebrand has the benefit of making us attractive when it comes to hiring new talent. With the firm known as ULS Technology, it felt a bit like we were in the mid-Nineties.”

“We wanted to reflect the shift from being a technology business to one in which technology helps people have a better moving experience.

“We have built a new user experience at the front end, built new APIs which better fit in with our customers’ systems and hired a bunch of new talent to the business as well.”

The property market was rocked by the mini budget which put a temporary freeze on lending and economic headwinds brought on by recent bank turbulence means the outlook is less than certain.

What is Jesper’s outlook for the property market?

He said: “It’s not been easy over the past six months and we have seen a really choppy market driven by macro economic forces. The mini budget was a shock to the system.

“We saw 10 years of money for free and consumers need to get used to paying for loans and mortgages again and we also have the added element of the increased cost of living.

“Consumers, however, get bored of doing nothing and will start moving again soon.”

I had an interest in being part of disrupting the property market and making buying and selling a home much better

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