Tag Archives: professional services

News

New era for Harper McDermott with sale to Employee Ownership Trust

LEADING personal insolvency firm Harper McDermott Ltd, one of the largest providers of Protected Trust Deeds and Debt Payment Plans under the Debt Arrangement Scheme in Scotland is embarking on an exciting future after transferring to employee ownership in a transaction led by business advisers Grant Thornton UK LLP.

The Glasgow-based company trades as Trust Deed Scotland, which, since 2009, has helped more than 25,000 people resolve their problem debt. The Trust Deed Scotland brand was founded by Mark Sommerville and Jon Paul Kelly and is the best-known provider of Protected Trust Deeds in Scotland. It has an industry leading No.1 ranking on Trustpilot in the debt relief service category with over 5,000 5* reviews from Scottish customers.

The business is currently managing debt solutions for over 9,000 customers with £234m of debts under management, and a team of around 70 people – who are all now part-owners of the business – led by Managing Director and Insolvency Practitioner, Thomas Fox.

Thomas Fox said: “I am delighted to have become a part-owner in the business alongside our knowledgeable and experienced team, who I believe provide a best-in-class service to our customers.”

“We are all looking forward to the future with excitement and confidence and to helping many more people deal with their debt issues in a practical and compassionate manner.”

“Employee ownership provides many benefits; from existing staff retention through to attracting the best talent, it gives our team job security and brings us closer together as one team all working towards similar goals.”

“I am very grateful to the Grant Thornton team for leading us through this transition with such dedication and diligence.”

Neil McInnes, Partner and Head of Corporate Finance in Scotland at Grant Thornton said:

“We have been working with the business to help them consider the range of strategic options open to them.”

“Ultimately the best option for all stakeholders was to move to employee ownership via an Employee Ownership Trust (EOT), which gives the entire team a stake in its future success and provides a great incentive for staff loyalty.”

“We are seeing an increasing number of profitable mid-sized companies looking at EOT as an option. For exiting shareholders it can be an attractive alternative to the more traditional trade sale or private equity process, and allows the business to continue to thrive in the safe hands of the incumbent team.”

“We wish Thomas and the whole team at Harper McDermott every success in the future.”

Neil was assisted in the transaction by Akshay Sharma and the firm’s dedicated EOT team led by Monique Beaulieu and supported by Ollie Dewdney and Amarveer Johal, which provide a holistic end-to-end service advisory service to businesses transitioning to employee ownership.

News, South East

Gloomy economic forecasts fail to dampen mood for East of England businesses

Despite gloomy economic forecasts, business leaders in the East of England are optimistic about their growth opportunities for the year ahead.

According to data from Grant Thornton UK LLP’s latest Business Outlook Tracker*, mid-market optimism in the East of England has rebounded across all indicators monitored:

Revenue growth expectations have risen +37 percentage points (pp) since October

Economic optimism has risen +35pp since October

Profit growth expectations are rising – increasing +17pp since October

The results indicate that businesses are confident they can weather this economic downturn. Optimism regarding their funding position has risen +39pp since October. Over half (62%) are also confident that they have sufficient working capital to manage the impact of a recession for six months or more.

The top concerns for the region’s mid-market heading into 2023 are winter blackouts, geopolitical tensions and the rising tax burden, all of which they feel sufficiently prepared to manage.

The mid-market continues to struggle to attract and retain talent, with 65% of respondents experiencing unusually high attrition rates. Over half (60%) are also struggling to recruit for open roles.

But employers are pulling out all the stops in a bid to remain competitive. Just under three quarters of respondents (73%) are planning to offer their people a pay rise in line with, or above, inflation, while 90% are also reviewing their employee benefits package to make it more competitive. Almost half (46%) are planning to invest more in skills development over the next six months.

The research also finds that the mid-market is starting to look for ways to reduce its reliance on people, with over two thirds (67%) agree that they are increasing their use of automation and digital.

James Brown, Partner and Practice Leader at Grant Thornton UK LLP in the East of England, said: “It is surprising that the market’s positivity levels are at odds with the forecasts from the Bank of England and the government. Optimism levels have rebounded significantly since October, when the shock and uncertainty from the mini-Budget plummeted mid-market optimism to some of the lowest recorded in our Tracker. The certainty provided since seems to have reassured the market.

“Even though we know the economy and operating conditions are not likely to improve much in the short term, it is perhaps better to have bad news over uncertainty. Certainty over the future allows businesses to work this into their forecasts and take action to soften the impact.

“While a potential recession is often in the headlines, our survey shows that the labour market remains a concern. Employers are trying to improve efficiency and productivity, while also managing cost levels, which is demonstrated by high investments in technology and people. It is interesting to note the focus on skills development, which shows a commitment to making staff more efficient as well as a desire to manage retention levels and costs.

“Having seen first-hand how our region responded to the challenges of recent years with determination, flexibility, enterprise and innovation, I am confident that businesses in the East of England will find a way to survive and thrive during the months ahead. Given the encouragingly high optimism levels, it would seem that the local market shares this confidence.”

Midlands News, News

West Midlands ready to ride the storm amid gloomy financial forecast

Despite gloomy economic forecasts, business leaders in the West Midlands are optimistic about their growth opportunities for the year ahead.

According to data from Grant Thornton UK LLP’s latest Business Outlook Tracker*, mid-market optimism in the West Midlands has rebounded across all indicators monitored:

Profit growth expectations have grown +47 percentage points (pp) since October

Revenue growth expectations have risen +33pp since October

Economic optimism has risen +29pp since October

The results indicate that businesses are confident they can weather this economic downturn. Optimism regarding their funding position has risen +37pp since October. Over half (60%) are also confident that they have sufficient working capital to manage the impact of a recession for six months or more.

The top concerns for the region’s mid-market heading into 2023 are industrial action and the rising tax burden, both of which they feel sufficiently prepared to manage.

The mid-market continues to struggle to attract and retain talent, with 56% of respondents experiencing unusually high attrition rates. Over half (56%) are also struggling to recruit for open roles.

But employers are pulling out all the stops in a bid to remain competitive. Over three quarters of respondents (78%) are planning to offer their people a pay rise in line with, or above, inflation, while 92% are also reviewing their employee benefits package to make it more competitive. Over a third (44%) are also planning to invest more in skills development over the next six months.

The research also finds that the mid-market is starting to look for ways to reduce its reliance on people, with over three quarters (88%) agreeing that they are increasing their use of automation and digital.

James Brown, Partner and Practice Leader at Grant Thornton UK LLP, said: “The market’s positivity levels are surprisingly at odds with the forecasts from the Bank of England and the government. Optimism levels have rebounded significantly since the shock and uncertainty from October’s mini-Budget plummeted mid-market optimism to some of the lowest recorded in our Tracker.

“The certainty provided since last October seems to have reassured the market. Even though we know the economy is not likely to significantly improve in the short term, it is perhaps better to know what is happening even if the news is bad rather than grappling with surprises that can’t be planned for.

“While a potential recession seems to be looming, our survey shows that the labour market remains a concern. Employers are trying to improve efficiency and productivity, while also managing cost levels, which is demonstrated by high investments in technology and people.

“Having seen first-hand how our region responded to the challenges of recent years with determination, agility, enterprise and innovation, I am confident that businesses in the West Midlands will find a way to survive and thrive during the months ahead. Given the encouragingly high optimism levels, it would seem that the local market shares this confidence in its prospects for 2023.”

Midlands News, News

Gloomy economic forecasts fail to dampen mood for East Midlands businesses

Despite gloomy economic forecasts, business leaders in the East Midlands are optimistic about their growth opportunities for the year ahead.

According to data from Grant Thornton UK LLP’s latest Business Outlook Tracker*, mid-market optimism in the East Midlands has rebounded across all indicators monitored:

Revenue growth expectations have risen +36 percentage points (pp) since October

Profit growth expectations are rising – increasing +24pp since October

Economic optimism has risen +22pp since October

The results indicate that businesses are confident they can weather this economic downturn. Optimism regarding their funding position has risen +20pp since October. Almost three quarters (74%) are also confident that they have sufficient working capital to manage the impact of a recession for six months or more.

The top concerns for the region’s mid-market heading into 2023 are the rising tax burden and wage increases, both of which they feel sufficiently prepared to manage.

The mid-market continues to struggle to attract and retain talent, with 64% of respondents experiencing unusually high attrition rates. Over half (62%) are also struggling to recruit for open roles.

Employers are pulling out all the stops in a bid to remain competitive. Over three quarters of respondents (84%) are planning to offer their people a pay rise in line with, or above, inflation, while 76% are also reviewing their employee benefits package to make it more competitive. Almost half (44%) are also planning to invest more in skills development over the next six months.

The research also finds that the mid-market is starting to look for ways to reduce its reliance on people. Over three quarters (76%) agree that they are increasing their use of automation and digital.

James Brown, Partner and Practice Leader at Grant Thornton UK LLP, said: “The market’s positivity levels are surprisingly at odds with the forecasts from the Bank of England and the government. Optimism levels have rebounded significantly since the shock and uncertainty from October’s mini-Budget plummeted mid-market optimism to some of the lowest recorded in our Tracker.

“The certainty provided since last October seems to have reassured the market. Even though we know the economy is not likely to significantly improve anytime soon, it is perhaps better to know what is happening even if the news is bad rather than grappling with surprises that can’t be planned for.

“While a potential recession seems to be looming, our survey shows that the labour market remains a concern. Employers are trying to improve efficiency and productivity, while also managing cost levels, which is demonstrated by high investments in technology and people.

“Having seen first-hand how our region responded to the challenges of recent years with determination, agility, enterprise and innovation, I am confident that businesses in the East Midlands will find a way to survive and thrive during the months ahead. Given the encouragingly high optimism levels, it would seem that the local market shares this confidence in its prospects for 2023.”

News

Palatine exits first impact investment with sale of adult learning provider to City & Guilds

Palatine has successfully exited its investment in Trade Skills 4U, the market-leading provider of electrician training schemes, with the sale of the business to City & Guilds.
Palatine backed Trade Skills 4U in 2017 as the first investment from its Impact Fund which was established to invest in commercially driven businesses with a mission to positively impact on society or the environment. Since then, it has supported the business to open two new training centres in Leeds and Coventry, appoint a new chairman and financial director and improve the digital infrastructure.
The growth has led to an increase in the business’ impact, with the number of students completing career changer courses each year having more than doubled since 2017. Resulting in thousands of students having their career prospects positively impacted over the period of Palatine’s investment.
Trade Skills 4U was founded by CEO Carl Bennett in 2005 and focuses on the adult training market. It provides a range of electrical courses for individuals who have little or no electrical knowledge and those already in the profession who are looking to enhance their skills. Key to its mission is lowering the barrier to entry for adults seeking new career opportunities such as people who have left the military.
During the last five years, Palatine has also supported the development and introduction of NVQ and apprenticeship programmes, making the company’s training relevant to an increased number of students. Supporting people of all ages to train and retrain in skills that leads to jobs aligns exceptionally well with City & Guilds’ purpose, making City & Guilds the natural home for the next stage of Trade Skills 4U’s growth journey.
City & Guilds is a Royal Chartered Institute and a registered charity with a mission to provide the opportunity for people to retrain and relearn, gaining new skills at every stage of life, regardless of where they start.
Matt Coles, Impact Fund Investment Director at Palatine, said: “As our first ever Impact investment we are incredibly proud of all we have achieved with Carl and the Trade Skills 4U team over the last five years. Together we have grown an exceptional business which is having a clear impact on addressing skills shortages and improving social mobility in the UK.
“City & Guilds represents a natural home for Trade Skills 4U to continue to grow its scale and impact and we look forward to following the business’ future journey.”
Carl Bennett, Founder and CEO of Trade Skills 4U, said: “Over the last five years it has been a pleasure to work with the Impact team at Palatine with whom we’ve shared a learner-centric approach to growth, always prioritising the outcomes we can deliver. Their support and commitment has made this a rewarding and enjoyable journey.
“Joining City & Guilds is a natural progression for our company and team, as we work to continue to cement our position as the UK’s leading provider of electrical skills training to individuals and businesses.
Kirstie Donnelly MBE, Chief Executive of City & Guilds said: “Trade Skills 4U is joining the City & Guilds community at a critical time as the UK grapples with severe skills shortages. Trade Skills 4U prides itself on inclusivity and removing barriers to work, ensuring individuals from all walks of life can access high quality skills training that leads to meaningful careers. This perfectly aligns to our City & Guilds purpose of helping people into jobs and by championing this together we can ensure that we are further providing opportunities and the skills needed to succeed.”
News

Davidson promoted to partner at Grant Thornton

Leading business advisory firm Grant Thornton UK LLP has promoted Simon Davidson to partner in its national business consultancy practice.
Yorkshire-based Simon has been with Grant Thornton for more than six years, playing a key role in supporting the firm’s clients in the region respond to the myriad of challenges of the pandemic by creating a Virtual FD Network, giving finance professionals a forum to share ideas and best practice.
During his 20-year career in accountancy, Simon has advised a multitude of finance teams, CFOs and finance directors on strategic financial plans across a range of sectors, with particular specialisms in real estate and construction. Clients past and present include those that are private equity backed, listed, privately owned, and not-for-profit.
As a partner, Simon will lead a team of 12 supporting clients across Yorkshire and the wider UK “future proof” their businesses with financial plans and functions that support their needs for growth, acquisitions or listings – whether that’s resolving specific issues or supporting a wider business plan.
Simon said: “I am incredibly proud to progress to partner at Grant Thornton and to head up the financial consulting side of the business. I get a real kick out of helping finance teams and FDs clarify their vision and then implementing the bespoke plans needed to get them where they need to be – whether that’s from becoming more scalable, getting them IPO ready, or running more cost-efficiently.
“Becoming partner is just part of the plans we have in place for doing that more and more for our current and prospective clients – and that’s massively energising for myself and the wider team. I’m really grateful to work with a group of exceptional professionals here at Grant Thornton, all with a wealth of experience and dedication to providing excellent service and outcomes for our clients. We can’t wait to deliver further results for our existing and prospective clientele.”
Andy Wood, Managing  Partner for Yorkshire, said: “We are thrilled for Simon as he progresses to partner with Grant Thornton here in Yorkshire. Simon is a true leader for the future. He is personable, well connected and has a very pragmatic approach to business advisory which means he delivers practical, realistic plans rather than theoretical considerations, which ultimately drives exceptional results for clients.
“His work during the pandemic with various finance teams and FDs saw him become an incredibly valued member of the regional community. The Virtual FD Network became a really important safe forum for clients and non-clients alike during the first lockdown when businesses were forced to pivot their operations almost overnight.”
News

Grant Thornton in top gear with £182m sale of Motor Parts Direct

Grant Thornton UK LLP’s corporate finance team has advised on the sale of Motor Parts Direct Group, the UK’s leading independent retailer of after-market car parts and accessories. 

The privately-owned Hertfordshire-based company, which had annual sales of £158m (2021), 175 branches nationwide and over 1,700 employees, has been acquired by Motus Holdings, South Africa’s leading automotive group for £182m. 

The acquisition significantly strengthens Motus’ UK and European presence and gives it a strong market position in the UK after-market parts sector. 

The shareholders of Motor Parts Direct, were advised by a team led by partner Mike Tillson, assisted by Ryan Shields, Calum McDonald and Misha Brooks. Grant Thornton also provided due diligence and tax structuring services on the transaction – demonstrating the power of its complete M&A solution.   In a statement, the board of Motus Holdings said: “The acquisition is aligned to Motus’ international growth strategy for the after-market parts business and will reduce the Group’s dependency on vehicle sales.   “The acquisition will provide economies of scale, group procurement benefits and synergies. The business is cash generative and asset light. The existing management team, excluding any members of the family, are committed to remain and grow the business. Key management have been secured and are committed to continue managing the business into the future.” 

Mike Tillson said: “The rise of Motor Parts Direct is a classic entrepreneurial growth story. From starting the business in 1999 from his Hertfordshire living room to building a market-leading multi-million enterprise, Mukesh Shah MBE, the shareholders and the management team have created an exceptional market-leading business.” 

Mr Tillson added: “Despite some clear economic headwinds, M&A is still very much on the agenda, and a number of overseas buyers remain keen to acquire quality UK assets.” 

Other advisers working on the transaction on the sell side includes law firm Freeths,  Jonathan Hambleton and James Cowell (corporate) and Sam Pancholi (property). 

Motus Holdings were advised by a team from law firm Irwin Mitchell led by Emma Callow. 

FInance, Finance and Banking, News, South East

Grant Thornton advises Norfolk entrepreneurs on strategic sales

A CORPORATE finance team from Grant Thornton UK LLP has advised on two key deals in Norfolk within a week, as the firm continues to lead the way in the East Anglia region.
The first transaction saw listed Midland building materials company Epwin plc acquire Norwich-based plastics recycling specialist Poly-Pure for £15m.
Founded four years ago, Poly-Pure is a fast-growing materials re-processor, recycling post-consumer and post-industrial PVC building materials, notably UPVC window frames and was seen as a strong strategic fit by Epwin.
In Poly-Pure’s financial year ended 31 July 2022, it expects to report revenues of £10m and adjusted EBITDA of £2.5m.
The second transaction, which was also led by Corporate Finance Director Stuart Davies, was the sale of Computer Service Centre Limited by its founders Christopher Cooper and Jeremy Clarke to private-equity-backed managed IT services provider Acora.
Founded 25 years ago, the Norwich-based company has 60 staff and is a leading provider of IT managed services to more than 100 SMEs in the South and East of the UK.
The acquisition, for an undisclosed sum, was Acora’s seventh in the last five years and enables it to offer a new service line in the 50-250 user market,
Stuart Davies of Grant Thornton said: “We are delighted to have delivered excellent outcomes for the entrepreneurs behind Poly-Pure and Computer Service Centre. In both cases there are compelling reasons for the sales and both companies will now be able to accelerate their already impressive growth by being part of larger businesses.
“Despite a more challenging economic environment,  the M&A market remains strong in Norfolk and East Anglia alike,  with continuing trade and Private Equity appetite for good quality businesses , which is reflected in both these excellent deals.”
Mr Davies was assisted by Adam Furrer in the Computer Service Centre transaction and Ned Brown on the Poly-Pure deal.
News

Grant Thornton completes double deal as international investors target Scottish leisure sector

Grant Thornton UK LLP’s Corporate Finance team in Scotland has advised international buyers on two acquisitions of leisure-related businesses, amid strong interest in the sector as it recovers from the pandemic.
Over the last month, Grant Thornton has advised French event infrastructure specialists GL Events on their acquisition of Edinburgh-based Field & Lawn, and advised on the acquisition of Castle Stuart Golf Links by leading international golf resort developer Cabot.

Founded in 1986, Edinburgh-based multi-service event specialist Field & Lawn Ltd has four business offerings; event marquees and structures, temporary industrial buildings, placemaking and festive lighting solutions. Major events include Six Nations rugby events and Christmas light displays across the country, complementing GL Event’s current offering, enhancing its all-year round revenue stream.

Meanwhile, Canada-based Cabot has committed to significantly investing in the Castle Stuart course, which is located near Inverness in the Highlands and is regarded as one of the best golf courses in Scotland, having hosted the Scottish Open four times, Cabot’s plans for the resort, which will be renamed Cabot Highlands, include adding a second 18-hole course and building luxury homes, dining and retail facilities.

Advising on these two acquisitions in the buoyant leisure sector marks a strong end to the first half of the year for Grant Thornton’s Scottish Corporate Finance team.

Neil McInnes, Corporate Finance Partner at Grant Thornton UK LLP, said: “The pandemic and related social restrictions took its toll on everyone, especially those businesses operating in the leisure sector.
“Now, as we enter our first summer post-pandemic, we are really witnessing an uptick in deal activity, as leisure, hospitality, travel, events and other sectors alike, are all beginning to flourish.

“With these two acquisitions we have seen international buyers attracted to high-quality, strategic Scottish businesses, reinforcing the continued interest from foreign investment in Scotland, and the wider UK, as a marketplace. It is not just leisure we are seeing this in, it is across a broad spectrum of sectors, including technology, healthcare and ESG.”

News, South East

Grant Thornton leads sale of Davidson-Roberts as nursery sector hots up

Grant Thornton UK LLP’s Corporate Finance team has advised on the sale of nursery group Davidson-Roberts Ltd to the rapidly growing private equity-backed Family First Nursery Group, which is expanding its footprint across England.  

Established in 2006 in Cambridgeshire, Davidson-Roberts has gone on to acquire nine more nurseries across Northamptonshire, Bedfordshire and Hertfordshire. A number of its nurseries offer children Forest School sessions focused on encouraging a connection with the natural world.  

The acquisition of Davidson-Roberts will support Family First’s strategic plan to grow within commuter belts, metropolitan cities and areas of population growth, recognising that many parents are now working flexibly in the post-Covid era.  

Founded three years ago, Family First Nursery Group is backed by PE investor August Equity and aims to become one of the leading childcare providers in the UK. The latest acquisition follows a string of M&A activity, with the group completing six deals this year so far, with a target of reaching 80 sites by the end of this year. 

Jane Roberts, Founder of Davidson-Roberts Ltd, said: “The successful growth journey of Davidson-Roberts over the last 15 years is down to the passion for the sector, from the whole of the team. I have loved the experience, leading the businesses growth, and now look forward to this next, exciting chapter.  

“Family First Nursery Group is a company that shares our own values and is ready to take Davidson-Roberts, and the team, to the next level.” 

Family First Nursery Group is led by Chairman Andy Morris, who has a strong track record in growing children’s nursery groups, having taken Asquith Nurseries to 92 nurseries before selling to Bright Horizons, the second largest chain in the UK. He subsequently helped grow the OAC Childcare Group in Australia from 24 nurseries to 79.  

Craig Grant, Family First’s Corporate Development & Strategy Officer, said: “We were incredibly impressed by the group of nurseries Jane has built and believe Family First provides a great platform to take these nurseries, their teams, children, and parents onto the next phase of their journey/!.     

The sale of Davidson-Roberts marks the latest transaction in the nursery and wider education market by the Grant Thornton team, following the sales of The London Preschool Group to Three Little Birds Nurseries, Kew and St Margaret’s Montessori Nurseries to Dukes Education, refinancing and raising an acquisition facility for Storal, acting for Kids Planet on their acquisition of Kids Allowed and raising additional financing facilities for Kids Planet to support their continued growth.  

Alongside its M&A support, Grant Thornton’s Tax team provided support on the complex demerger of the properties from the operating company as part of the transaction. After an initial introduction, the Sell Side Transaction Tax Team advised on implementing the demerger ahead of first round offers, to minimise tax costs and a deliver an effective solution for the shareholders.  

Mike Tillson (Partner), Andrew Frame (Director) and Elizabeth MacGowan (Manager) at Grant Thornton advised on the sale, working closely with Julie Hughes, partner at Cripps specialising in transactions in the Early Years sector, who along with her team, managed the legal aspects of the sale.  

Andrew Frame, Coporate Finance Director at Grant Thornton UK LLP, said: “Over the last year, we have seen a combination of a fragmented marketplace, increased regulations, and a new normal in flexible working, all leading to record-levels of deal activity across the nursery sector.  

“There continues to be significant interest from PE-backed groups and international trade consolidators, as well as strong support from the debt market fuelling growth. Our team has provided advice on a number of deals across service lines, and we only expect activity to drive onwards.  

“During the sale process we generated considerable interest in Davidson-Roberts from domestic and international buyers across private equity and trade, resulting in a great outcome for our client and a terrific home for the business in Family First.” 

Mike Tillson, Corporate Finance Partner at Grant Thornton UK LLP, said: “It’s a great time to be a seller in the sector, with valuations at record levels and a number of very eager domestic and overseas buyers keen to acquire good quality nursery operators in the UK.”