Software giant Sage Plc sees revenues climb despite economic uncertainty
North East listed tech group Sage plc saw revenues rise 9% in the first nine months of its financial year, driven by growth in its Sage Business Cloud software. The Cobalt Business Park based business, which is listed on the FTSE 100, issued a bullish trading update for the nine months ended June 30 2024, highlighting increasing revenues to £1.737bn, up 9% on the comparable period’s £1.589bn. Sage Business Cloud sales grew by 16% in the same period and accounted for £1.387bn of that figure, driven by growth in cloud native revenue of 23% to £539m, primarily through the addition of new customers and by growth in cloud connected revenue from both existing and new customers. A breakdown of the turnover shows revenue in North America increased by 12% to £786m, with a good performance from Sage Intacct together with continuing growth in Sage 50 cloud and Sage 200 cloud. In the UKIA region, revenue grew by 8% to £497m, also driven by Sage Intacct together with cloud solutions for small businesses, including Sage Accounting and Sage Payroll. The UK region also saw further growth in Sage 50 cloud and Sage 200 cloud. In Europe, meanwhile, revenue increased by 6% to £454m, with a strong performance across its accounting, HR and payroll solutions. Recurring revenue increased by 10% to £1.68bn, with software subscription revenue growing by 13% to £1.419bn. The update tells shareholders how the pound sterling has strengthened against the US dollar and other international currencies compared with the prior period, leading to an exchange rate headwind in the first nine months of the year.
New tech hub linked to Golden Valley opens in Cheltenham
A workspace dedicated to the growth of Gloucestershire's start-up tech community has opened in Cheltenham. The 20,000 square foot MX Innovation Centre is at the heart of the shared urban Minster Exchange (MX) rejuvenation scheme. The centre, opposite Cheltenham Minster, is a joint project between Cheltenham Borough Council (CBC) and Hub8 by event and workspace provider Plexal. According to those behind the project, MX will complement the region's new Golden Valley development, which is billed as a major part of the UK's National Cyber Strategy. It is being supported in partnership by CBC and Plexal. Internal facilities at MX include a café alongside a 200-person capacity auditorium for events and education, while the external Minster Gardens area features greenery, seating and pathways. Through the MX launch, the aims of CBC and Hub8 by Plexal are to fuel business growth through initiatives including Grown in Cheltenham - an opportunity for local founders to fast-track their companies with six months of free, tailored support. Councillor Rowena Hay, leader at Cheltenham Borough Council, said: “After a much-anticipated wait, I am delighted that the MX is now officially open. This innovative new space will be a place for start-ups, academia, industry and government, particularly through its links into Golden Valley, and it will also be a hub for the community, with a café and events space. “The MX will reinvigorate this area of town connecting the Minster, Wilson Gallery, library, and the lower High Street. It is also the latest step in the council’s enabling role in the regeneration of this important part of the town.” Some 60 businesses - from cyber security to recruitment and food tech - have already joined the centre, which has capacity for 400 members. Bruce Gregory, managing Director at Hub8 by Plexal, said: "It’s been a long time coming but seeing people familiarising themselves with the site is hugely rewarding." Andrew Roughan, chief executive at Plexal, the Delancey-founded innovation company that has a majority shareholding in Hub8, added: "Organisations across the South West region have demonstrated their commitment to cross-sector collaboration.
Mirror publisher Reach on track as digital revenues boosted by Euros, election and Taylor Swift's UK tour
Mirror publisher Reach plc says it is on track for the year after seeing digital growth from events including the European Championships and Taylor Swift’s Eras Tour and the General Election. The media giant, which publishes titles including BusinessLive, the Manchester Evening News, Wales Online, the Daily Record and the Express, today issued results for the six months to 30 June 2024. Reach said revenue for the period fell 5.2% to £265m. Digital revenue of £60m was broadly in line with last year (HY23: £60.8m), and momentum improved across the period with growth of 6.7% in the second quarter. Print circulation revenue of £149.9m (HY23: £155.4m) and print advertising revenue of £32.7m (HY23: £37.0m) outperformed volume decline. Meanwhile the group said “early and effective action on costs has delivered targeted cost savings”, with total adjusted operating costs cut by 9.3% to £221.8m. That meant adjusted operating profit rose by 23.1%, and at an improved margin of 16.8%. Reach said it would “continue to deliver returns for shareholders with the interim dividend maintained at 2.88p.” The group’s Customer Value Strategy to bolster digital growth has helped push data-driven revenue growth up 9% to £27.2m. Those revenues now represent 45% of total digital revenues, up from 41% last year. It hailed its return to digital revenue growth, saying: “The performance over the second quarter has been bolstered by strong multi-platform content around key events, including the European Football Championships, UK general election and Taylor Swift Eras tour. As expected, yield continued to improve, driving growth across the digital estate.” Chief executive Jim Mullen said: "We are pleased to have delivered further operational progress this year, with our commercial and editorial teams making the most of the strong news agenda. “Our Customer Value Strategy continues to deliver long-term success, with an increasing share of data-driven digital revenue as well as digital growth returning in Q2. Alongside our expertise in managing our print product, we have traded our digital assets hard and delivered an operating margin improvement.
John Lewis Partnership deal for Manchester’s PropCall
Manchester property management business PropCall has signed a deal with the build-to-rent arm of the John Lewis Partnership. BTR Operating Ltd was launched by the UK's largest employee-owned business last year and already manages hundreds of rental properties Now it has outsourced its out-of-hours calls to PropCall, whose staff will cover block and residential issues at two of the buildings managed by BTR Operating, taking calls from tenants on evenings, weekends and bank holidays. PropCall’s property managers will use the company’s video-call technology to aim to resolve issues online before any emergency call-outs are needed. The system allows PropCall’s team to freeze the screen and draw on the image to explain issues to tenants. Bilal Mumtaz, head of sales and business development at PropCall, said: “We are absolutely delighted to be working with BTR Operating on their residential property management journey. By answering calls outside of normal working hours, we are able to quickly and efficiently manage tenant issues, protecting the company’s reputation and helping operations run smoothly.” Rob Leonard, BTR facilities lead at BTR Operating, said: “PropCall reinforces the values and trust that are central to our John Lewis and Waitrose brands and the service we want to provide our residents with. They treat residents as individuals and provide them with the comfort of knowing there is always someone there to help them.”
GB Group: Software firm expects revenue growth despite last year's drop
Software firm GB Group has reported that its trading aligns with expectations for the first quarter of 2025, following a slight decline in revenue for 2024. The company anticipates that its identity verification and location intelligence services will be key drivers of revenue growth in the coming year. However, it expects to see a reduction in revenue from its fraud prevention division in the first half, attributing this to "the timing of software license renewals". With its annual general meeting (AGM) scheduled for this morning, GB Group is forecasting mid-single-digit revenue growth and high single-digit growth in adjusted operating profit for the full year. For the year ending 31 March 2024, the Chester-based company saw a marginal revenue decrease of 0.5 per cent, totalling £277m, City AM reports. "The board is pleased to report that GBG has continued to trade in line with our expectations in the first quarter as the improved momentum in Identity and resilient growth in Location continued from the final quarter of FY24," Richard Longdon, non-executive chairman, is set to announce at the AGM. Shares of the London-listed GB Group have seen an increase of over 26 per cent since the start of the year. In June, GB Group revealed an eight per cent rise in adjusted operating profit to £61.4m, despite an overall operating loss of £41.4m due to a significant exceptional non-cash goodwill impairment charge of £54.7m. "As we look to the longer term," Longdon will add, "the Board remains confident that GBG's strong competitive differentiation will continue to underpin our leadership positions across the markets we serve." He will add: "The technological capabilities we have built and our highly repeatable business model will enable us to capitalise upon the significant growth opportunities ahead to deliver significant and enduring shareholder value." GB Group has scheduled its next trading update for mid-October.
Scottish tech firm Brightsolid opens Manchester office to boost English presence
Brightsolid, the Scottish cloud services provider, has launched a new office in Manchester as it expands across England. The firm, founded more than 25 years as part of DC Thomson, is one of Scotland's key players in managed hybrid cloud and cyber security solutions. Brightsolid aims to grow its customer base from its central Manchester hub, targeting a twofold increase in sales and technical service staff within two years. Existing clients include Aberdeenshire Council, Albert Bartlett, Capita, Dundee City Council, Shell, West Yorkshire Combined Authority, and the University of Dundee, Alan Gardiner, chief commercial officer at Brightsolid, said: "While Brightsolid is already recognised as one of Scotland's leading cloud services providers, the new Manchester office will be seeking to work with public and private sector organisations across the north of England, while also spearheading the expansion of our service offering across the UK."
Praetura Ventures backs AI and e-ecommerce specialist Ocula
Manchester’s Praetura Ventures has led a £3.25m series A investment into a software business that works with e-commerce companies around the world. Ocula has developed an AI-powered tool, Ocula Boost, that uses AI and large language models to enhance retailers’ product pages. It has more than 25 key customers today, including Boots, AO.com and US retailer Blain’s Farm & Fleet - and hopes to triple its client base over the next 24 months following Praetura’s investment. Alongside Praetura, Belfast-based Ocula has also raised further investment from long term investor Castelnau Group and Lloyds Banking Group and its fintech investment team. It plans to use the investment to scale its sales and technology teams, as well as developing new and existing product teams. Thomas McKenna, Ocula co-founder and CEO, said: “We have created something special at Ocula from both a product and culture perspective. Users consistently tell us that our generative AI is levelling the playing field with their most advanced competitors. We’ve achieved this by bringing together some of the brightest science, engineering and product talent in the UK and beyond. This investment will see us go faster when it comes to UK and US expansion and deliver the next generation of exciting AI features to clients.” Peter Carway, investment director at Praetura Ventures, added: “AI’s role within e-commerce has grown exponentially over the past several years. There’s now a wealth of incredibly exciting developments for retailers of all sizes, as proved by the work being done by Ocula. Having invested in this space before, we were drawn to Ocula’s proposition and suite of highly sophisticated products as well as the strength of Ocula’s co-founders Thomas and Gregory, who we’re looking forward to supporting with more than money.”
New funding to support 300 tech careers in the West Midlands
New funding worth £600,000 has been donated with the aim of supporting at least 300 young people into tech careers in the West Midlands. The capital will be administered by charity Generation UK after it was awarded a grant by The Rigby Foundation. Youth unemployment is said to be double the national average in Walsall, Wolverhampton and Birmingham and the West Midlands has more than 130,000 people currently unemployed. Of that number, just under 21,000 are aged 16 to 24. The foundation is the charitable arm of the West Midlands-based Rigby family which owns businesses such as Birmingham IT services provider SCC, a tech investment arm and real estate including Coventry Airport and several hotels. Generation UK is a Surrey-based charity that supports people across the country, working with the Department for Education on its Skills Bootcamp programme. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. The aim is to address persistent unemployment and unmet employer demand in key growth sectors like tech, particularly among people from disadvantaged backgrounds. The charity delivers skills bootcamps in fields such as data engineering and analysis, cyber security, cloud engineering and IT support and also works with employers to place candidates into jobs. In addition, SCC will support young people on the new programme by bringing staff in to volunteer at Generation UK, provide equipment and host mentoring and skills events. The donation by The Rigby Foundation, which was founded in 1992, will support the charity's work specifically in the West Midlands over the next three years. Next year marks the 50th anniversary since Sir Peter Rigby founded the group with a £2,000 investment and the firm said it now wanted to put social mobility at the heart of its charitable work. The award by The Rigby Foundation follows on swiftly from the announcement by West Midlands Mayor Richard Parker of his new youth unemployment plan which is aiming to create 20,000 learning and work opportunities in the region. Steve Rigby, Sir Peter's son and chairman of The Rigby Foundation, said: "As a family with close personal and business connections to the West Midlands, we want to see more young people in our region gain the education and skills they need to secure life-changing, well-paid employment. "We are a community-focused family and want to play our part in giving our home region's young people the opportunity to make a successful life for themselves. "I am also urging other business leaders in the region to get behind the mayor's initiative, whether by offering training, work placements or apprenticeships. "By all working together, we can achieve great things and bring about much-needed change. "This is the first year of a three-year, long-term partnership with Generation UK, equipping young people with skills that are in high demand from West Midlands-based businesses." Generation UK's chief executive Michael Houlihan said: "It is an honour to have The Rigby Foundation on board.
Cornwall internet provider strikes deal with Nokia
A Cornwall-based internet provider has struck a deal with telecoms giant Nokia to speed up the roll out of broadband across the region. The agreement will see Wildanet's new super-fast network extended across Cornwall and the Isles of Scilly, the Gresham House-backed firm said. Nokia will project manage the delivery of the next phase of Wildanet's full fibre network - from initial planning and design to build, commissioning, testing and hand-over. The deal is being supported by network infrastructure company Xantaro. “We have always looked to be innovative and ambitious in our mission to deliver digital inclusion in the South West," said Justin Clark, Wildanet’s chief strategy and technology officer. “It is a significant strategic alliance for Wildanet, building on our achievements to date and allowing us to accelerate the roll-out of our network and the benefits this will bring for thousands of homes and businesses in the region.” Phil Siveter, Nokia chief executive for the UK and Ireland, said: “By combining our proven methodologies and extensive experience in network deployment with Wildanet's local insights, we are set to transform the digital landscape in the South West." As part of the arrangement, Xantaro will source, build and install all communications cabinets. It will also be providing professional services to Wildanet, the Cornish business said. In 2023, Wildanet was awarded two contracts, totalling £36m, by the government to connect up to 19,250 homes and businesses in South West and mid-Cornwall.
Healthtech innovator MediMusic wins global award for unlocking medicinal power of music
A Hull business that has developed a way to prescribe music as medication to ease pain, anxiety and stress for people living with dementia has landed a global award. MediMusic, which was founded by former music industry executive Gary Jones and is based out of Hessle, scooped start-up of the year at the Music + Tech Summit of European tech hub Wallifornia. The Finance Yorkshire-backed firm beat 140 other entrants at the event, impressing judges with its technology that uses music as a digital therapeutic, creating playlists that can reduce the heartrate of people living with dementia. Its concept is being trialled in UK care homes and major music publisher Warner Music Group is helping to expand the trials into hospitals in the UK and US. Read more: Hull 'reg-tech' firm Rubicon Bridge lays out expansion ambitions Read more: City star Debra Stephenson to headline returning Hull and East Yorkshire Business Awards Using algorithms, MediMusic "digitally fingerprints" pieces of music, meaning they can be identified for healthcare uses. The playlists it then creates can be listened to on a streaming device -the MediBeat - or on other devices such as smartphones. Mr Jones, who developed the MediMusic after trying to help the mother of a family friend who was living with dementia, said: “This win is fantastic news for our team and our global mission to use music as medication to ease pain, anxiety and stress. The transformative power of music to make us feel more relaxed and healthier is truly extraordinary. Our initial clinical trials have yielded highly promising results, signalling a ground breaking future in patient treatment. "The potential to dispense music as a therapeutic intervention will revolutionise the care of people grappling with pain and anxiety from people in care homes to patients in hospital. We believe we will eventually see music prescribed on the NHS. Musical medicine would help the NHS save money on costly medications treating anxiety and stress." Wallifornia’s program and partnership manager Coralie Doyen added: “Congratulations to MediMusic on being the big winner of our Awards Ceremony. The judges were very impressed with this innovative UK start-up committed to using music to improve the health and well-being of patients. The potential impact of its technology around the world is huge, and that’s why they were worthy winners.
BT shares slump as telecom giant reveals revenue drop in first quarter
Shares in BT opened 3.9 per cent lower this morning following the company's announcement of a decline in revenue for its first quarter. The telecoms giant reported total revenue of £5.05bn for its first quarter, marking a two per cent drop from the same period in 2023 and falling slightly short of consensus estimates. BT attributed the decrease to a decline in legacy contracts, reduced low-margin sales and a contraction in its business unit. Despite this, the UK's largest telecoms company reported a one per cent year-on-year increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to £2.06bn for the three months ending 30 June. This growth was driven by stringent cost controls, including lower staff costs, which helped offset the revenue shortfall, as reported by City AM. Profit before tax stood at £520m, a three per cent decrease, as the decline in revenue was largely counterbalanced by a reduction in reported operating cost. BT also announced a record fibre build, passing over 1m premises in the quarter and bringing its total footprint to 15m, including 4.2m rural sites. Matt Dorset, equity research analyst at Quilter Cheviot, commented on the results: "The fibre rollout is progressing well," but noted that "However, Openreach line losses were slightly higher than expected at 196,000, attributed to competitive pressures and a weaker broadband market." "Government growth policies and the construction revolution are likely to benefit BT by increasing the number of homes eligible for broadband connections, helping to mitigate broadband line losses." "BT appears to be in a stronger position than competitors like Vodafone to capitalise on any changes in planning regulations," he added. The FTSE 100 company has reiterated its full year 2025 financial guidance, forecasting revenue growth of 0-1 per cent, EBITDA of around £8.2bn and free cash flow of £1.5bn. BT's first female boss Allison Kirkby has been on an offensive to steer the telecom giant in a new direction. She has pledged to cut £3bn in costs by the end of 2029 as the company moves past the peak of its capital expenditure in broadband. She said: "We've made a solid start to the year, with excellent growth in both fibre build and connections, and increased EBITDA. "Openreach continues to build at pace and with even more efficiency, passing the milestones of 5m connections and just yesterday 15m premises built. In Consumer, the widespread availability of FTTP and 5G combined with our new EE propositions has contributed to an improved trend in our customer base, in what remains a very competitive market." Kirkby added: "In Business, we also saw improved trends, as we continue to modernise our portfolio and our operations towards a simpler business, delivering secure, cloud-based connectivity and communication services for all our customers. "Our ongoing cost transformation contributed to EBITDA growth, and more than offset the expected revenue declines in Consumer and Business in the quarter. There is much more to do to simplify BT Group and deliver for our customers. We remain on track to deliver our financial outlook for this year and our cash flow inflection to c. £2bn in 2027 and c. £3bn by the end of the decade." In May, BT reported full year revenue of £20.8bn, up slightly against the £20.7bn reported for the previous year, while pre-tax profit plunged 31 per cent. But shares rose as BT said its multi-billion pound investments in 5G and fibre technology had started to pay dividends. The trading update follows news that major BT shareholder Patrick Drahi built his 25 per cent stake in the company by borrowing heavily, using substantial loans, and financing derivatives. His French telecoms group Altice secured a £1.5bn margin loan against its stake in BT as part of its debt-funded global growth strategy. In June, the richest man in Latin America, Carlos Slim, took a 3.2 per cent stake in BT, in what analysts said signalled a vote of confidence BT. The stock has risen nearly 12 per cent year to date.
Tharsus spin-out VersaTile to storm warehousing market with £8m investment
A newly established robotics firm in Blyth is hoping to capture a share of the warehousing market following an £8m seed investment from its parent group. VersaTile Automation is part of £77m-turnover Tharsus Group and has developed an AI-based system for high intensity fulfilment centres. The firm's "intelligent floor" knows where goods are and can transport them instantly using a moving tile setup which is said to require only half the space of traditional warehouse systems. The technology has been developed by engineers in Blyth and bosses now have ambitions to sell internationally, making VersaTile a significant employer in the town. An initial three-year deal with UK logistics name Wincanton has seen the tech installed in its high-volume Northampton eFulfilment centre. Read more: Tyneside tech firm Succorfish tackles £2bn 'ghost net' environmental pollution crisis Read more: Newcastle's OLM Diagnostics is snapped up by US manufacturer IMMY VersaTile is led by Tharsus boss Joni Rautavuori and is now looking to the ecommerce, retail and grocery sectors, where it hopes to shake-up warehousing operations. Mr Rautavuori and his team are in late stage negotiations with several other potential clients, and are also part way through an equity fundraising exercise. The technology is said to respond to unpredictable changes in real time via self-learning capabilities, and can be installed into facilities without changes needed to existing infrastructure. It is also said to drastically improve "pick and presentation rates" meaning orders can been picked in minutes. The technology is modular and is set up with a simple API for integration. Its launch is said to follow about three and a half years of development leading to the spin-out from Tharsus, which has built a reputation for automation. The Blyth business has supplied big names such as Ocado, Rolls-Royce and BMW. Last year Tharsus reported a 14.5% fall in revenue due to a tough market and a decline in legacy customer volumes. Mr Rautavuori told BusinessLive that VersaTile had come about following discussions with numerous Tharsus customers who were looking for such a system. He said: "Supply chains are under tremendous pressure to meet ever changing customer demands for shorter delivery times, higher flexibility and lower cost in a sustainable manner. Lack of the productivity development and availability of labour is adding to this challenge particularly in UK. "Current warehouse operations are creaking under the pressure and warehouse employees are under greater strain than ever. VersaTile’s solution uses advanced technology to solve this. Having Wincanton, a leading supply chain company in the UK, as our first customer shows the credibility of VersaTile technology and the trust in our experienced team behind it."
Ignite Accelerator seeks cohort for final North East programme
Start-up accelerator Ignite is appealing for applicants to join its final North East programme taking place this summer. The renowned support organisation first launched in the region in 2011 and has since delivered support for founders across the country and on home soil. Now it is accepting applications for its final two-month accelerator programme in the North East, spanning August and September and featuring mentoring, workshops, and connections with experienced entrepreneurs and investors. The programme is open to those fundraising or on the cusp of doing so and is the last to be delivered through the Digital Pipeline project, funded by the North of Tyne Combined Authority. But the team behind Ignite are understood to be working on continued support for entrepreneurs in the region. Read more: Two global media giants set to launch North East bases after Quorum Park office deal Go here for more technology news from BusinessLive Manufacturing software business SQCDP and marketing tech firm Polybox were both participants in the 2023 Accelerator Programme and recently secured £200,000 and £500,000 pre-seed funding respectively. And 2022 alumnus Gridfinder, the esports start-up launched by motorsports fans, was sold in a multimillion-pound deal announced earlier this year. Founders and teams in this year’s cohort will also go on a fully-funded trip to San Francisco - the global epicentre of tech businesses - where they will get the chance to meet potential investors. And start-ups will receive credits and discounts from companies such as Amazon Web Services, Google and Stripe. Jo York, CEO of Ignite, said: "We are looking for ambitious founders ready to advance their fundraising efforts and start scaling their businesses. The quality of applications to our previous programmes has been outstanding, and we expect the same level this year. “Over the last three years we’ve seen multiple companies go from the very early stages of traction, to securing significant investment and even go onto exit within a couple of years of taking part in the programme. We’re looking for startup founders with the same level of ambition to join the final programme as part of the North East Digital Business Pipeline project." Tom Bunten, CEO of Gridfinder, said: "Ignite taught us to think globally. Gridfinder is a regional business, but it has access to an international market. This realisation transformed our business strategy and empowered us to access a whole host of incredible opportunities, ultimately growing Gridfinder to a successful exit." Stephen Mitchell, co-founder and CEO of SQCDP, said: "We’ve seen that we can solve problems for manufacturers close to home here in the North East and are now in a position to start to scale. We learned loads through the Ignite programme and in raising our pre-seed round. The investment will help us start onboarding new customers remotely and grow the team."
Black & White Engineering aims for growth following major investment deal
A North East consultancy is set for growth after receiving a major investment from a private equity company. Newcastle-based Black & White Engineering Ltd, which also has offices in Edinburgh, Manchester and London, has seen huge growth since launching in 2007 and now has a presence in the Middle East, Asia Pacific and Europe, employing more than 500 professionals worldwide. Last year, the Generator Studios-based business told how global headcount had grown by more than 50% in two months and 22% in the UK and Europe, with staff levels increasing by 23% in the North East alone. The mechanical engineering and plumbing consultancy, which works with 110 clients across 23 countries, delivers mechanical, electrical and plumbing design engineering solutions for a range of industries. Now the firm has secured an undisclosed investment to fuel further growth from private equity company Waterland, in a deal overseen by KBS Corporate. With Waterland as a strategic partner, Black & White aims to broaden its support for customers across new geographies, and it also plans to widening its engineering offering with new specialisms. Mick Cairns, founder of Black & White, will continue as CEO alongside the existing leadership team. He said: “Black & White has grown hugely since the business was founded and I could not be prouder of our team, who have helped us to reach this huge milestone in our journey. “We are delighted to be partnering with Waterland and leveraging their track record of international growth and acquisition experience. We are looking forward to supercharging the momentum we have built, with Waterland acting as a hands-on partner which supports our vision and ambitions.” Waterland operates in 11 countries across Europe, including the Netherlands, Belgium, the United Kingdom, Germany, Switzerland, Denmark, Norway, Ireland, France, Spain and Poland. Wendy McMillan, partner at Waterland Private Equity, said: “Mick Cairns is an impressive entrepreneur who has built an outstanding business. We look forward to supporting Mick and the senior team in this next chapter and will continue to back their philosophy of investing in people and working together with the best talent to create a global leader in engineering for the data centre market. “We will be leveraging our network and expertise in acquisitions and international expansion to help Black & White reach the next level and we are looking forward to seeing what the future holds for the business.” Dave Gardner, KBS Corporate finance managing director, who advised on the transaction, said: “Black & White is an incredibly dynamic business that has established itself as a true market leader.
Welsh medtech venture Aparito acquired by US firm Eli Lilly and Company
Global pharmaceutical company Eli Lilly and Company has acquired Aparito, in a deal providing a multi-million-pound profitable exit for the Development Bank of Wales. The Wrexham-based medtech business was set-up by Dr Elin Haf Davies. Its acquisition provides a near three times return on the development bank’s equity investments into the company totalling £1.2m, which could rise to 3.2 times depending on future trading performance. Established in 2014 as part of the Bethnal Green Ventures Accelerator, Aparito is a software business focused on accelerating drug development by digitising decentralised clinical trials. Initially developed for rare diseases, Aparito’s platform allows clinical studies to be carried out anytime, anywhere, enabling patients and their caregivers to participate in clinic trials at home. Data is captured by patients using video assessments, wearable devices and electronic patient-reported outcomes (ePROs). In 2017, Aparito joined Bayer Pharmaceuticals’ G4A health tech accelerator. The Development Bank of Wales then made the first of its equity investments alongside co-investors Bethnal Green Ventures, Wealth Club and Ascension VC. Headquartered in Indianapolis, Indiana, Eli Lilly and Company has offices in 18 countries and sells medical products throughout the world. Aparito is now a wholly owned subsidiary of Eli Lilly and Company. Following the acquisition Dr Davies remains with the business as chief executive along with all 26 staff in Wrexham and five in Barcelona. The company will continue its operations in Wrexham.
Gateshead's CyberPowerPC upgrades into new base as growth ramps up
A Tyneside computer specialist is moving to a new head office after seeing increasing growth. Gaming PC and laptop company CyberPowerPC has expanded for a third time, moving from its Team Valley base into new 43,000sqft premises on the Gateshead business park. Founded in the US, CyberPowerPC has backing from tech giants like Intel, AMD, Nvidia, Asus and Microsoft. The business was set up in the UK over 20 years ago by managing director Brian Lin to bring the brand to Europe for the first time, and the last few years it has enjoyed substantial growth. The company’s main business is building and customising PCs and laptops, with customers including gamers, content creators, creative agencies, colleges and universities, developers, aerospace organisations and a host of other industries. During the pandemic, the global lockdown triggered a massive boom in gaming which increased demand for PCs and other hardware. CyberPowerPC has seen continued strong levels of business, having taken advantage of the demand throughout the lockdowns. Mr Lin said: “CyberPowerPC is a worldwide brand, but had no physical HQ in the UK, which is where we came in and from humble beginnings with a small office and a handful of people, we’ve grown to over 50 employees and moved in to new 43,000sqft base in Team Valley. “In short, if it’s a PC or a laptop then we can build it, regardless of the application. As we’ve grown the UK arm of the business, we’ve worked to establish a reputation as one of the top PC system integrators in the UK, winning a host of awards for systems servicing consumers and businesses. It’s another exciting milestone for us as we move into this new base of operations that will allow us to continue our development and create highly skilled jobs here in North East England. “CyberPowerPC’s growth has been controlled with strong commercial management and now, where we see competitors struggling, we’re expanding so we’re doing something right. We’re focused on commercial and holistic growth – our ambition is to be both the biggest system integrators and be renowned for the best customer experience. “UK Land Estates has been our landlord since the beginning, always finding us the ideal the property within its portfolio as we have grown.”
Profits rocket at Filtronic as emerging space market helps business take off
North electronics manufacturer Filtronic has seen profits jump following a strong year in which it landed significant contract wins with customers including SpaceX. The NETPark business, which designs and manufactures products for the aerospace, defence, telecoms infrastructure and low earth orbit space markets, has posted full year results for the year ended May 31, in which revenues jumped 56% to £25.4m on the back of major deals. The firm said that its stronger sales mix, with a lower concentration of revenue from telecommunications infrastructure, led to an operating profit of £3.6m – a huge leap on the 2023 figure of £200,000 – and adjusted Ebitda of £4.9m, up from £1.3m. The group, which now has 133 employees across its bases in Sedgefield and Leeds, closed the year with a “growing, healthy” cash balance of £7.2m, up on last year’s £2.6m, as well access to its undrawn, £3m working capital debt facility with Barclays. The main highlight of the year was the signing of a five-year strategic partnership with SpaceX, a market leader in low earth orbit space communications, and that deal has since led to a £7.1m follow-on order to support the US rocket firm’s Starlink satellites. Other highlights include a £3.2m contract with the European Space Agency to develop a series of mmWave products, and contract wins from strategic target clients, BAE Maritime Services and QinetiQ, for £4.5m and £2.0m respectively for radar systems. In May, Filtronic also won the King’s award for Enterprise in Innovation. Jonathan Neale, chairman, said the successful year gives it a strong basis for the future, while underscoring the importance of attracting the right talent at a time when skilled engineers are in short supply. He said: “Contract wins in FY2024 require us to expand the group’s engineering and manufacturing operations into our growing sales orderbook. At the same time as we develop our electronic communications products and technology in the low earth orbit space sector, we have ambitions to do more in the defence, aerospace and security sectors. "These markets have very similar needs and problems of integrating high volumes of sensors and data whilst making that data available securely, quickly and at large scale to end users. When we review what our core business is and what is adjacent market opportunity this is shifting gradually over time, and we have shown the ability to pivot when the opportunities have arisen. “Behind the scenes, our technology roadmaps remain robust. The underpinning engineering and manufacturing capability, that are future facing, remain the focus of our investment plans enabling us to bid confidently into high value opportunities. “The UK is still short of skilled engineers and technicians, but this is a feature of the economic environment and neither new, nor a surprise. We will have to work hard to compete to attract talent, but we are excited to be able to offer exciting career opportunities to both experienced engineers and leaders as well as younger people in the early stage of their career.” Chief executive Nat Edington added: “Alongside the growth opportunities for the business generated from the SpaceX partnership, our pipeline with other customers and in other focus markets is also healthy and increasing, providing good growth opportunities across our markets and customer base.
Tyneside tech firm TSG completes MBO with multimillion-pound investment
The founders of a Gateshead software firm – including Sage co-founder Sir Graham Wylie – have sold the business in a multimillion-pound management buy-out. Team Valley based Technology Services Group (TSG), a Microsoft Solution Partner focused on SMEs, has been acquired in an MBO following a significant investment from Pictet Alternative Advisors. The firm’s CEO Rory McKeand and his leadership team have partnered with Pictet to snap up the business from Sir Graham and other shareholders. Executive chairman David Stonehouse and Sir Graham, who co-founded TSG in 2003, will now step away from the company. The deal marks the next phase of TSG’s expansion, which has seen the company record double-digit growth in both turnover and profits in recent years, while its employee numbers have also soared to more than 250 staff. The group was originally launched in Newcastle, but moved its head office to its Kingsway base in 2021, and it also operates offices in London and Glasgow. The business, which turned over £35.3m in most recent accounts has established itself as a leading Microsoft Solution Partner, helping organisations to invest in technologies while also helping clients, who are spread across the UK and operating in various sectors, in their transition to the cloud. Rory McKeand, CEO of TSG, said: “This transaction is fantastic news for all those associated with TSG. It reflects not only the diligence of our hardworking staff but also the loyalty of our customers and partners who’ve collectively underpinned our success to date. Partnering with Pictet, preserves all employment and will allow us to accelerate organic growth and seek opportunities for future strategic acquisitions. “We intend to build on the company’s previous successes over the last two decades and we’ll continue to help organisations unlock the value of technology as we strengthen our position as the UK’s leading mid-market business tech partner. Ultimately, it will be our people that will benefit from this landmark deal with the introduction of an Employee Benefit Trust where all employees can become a shareholder in our business.” Exiting chairman Mr Stonehouse said: “I am delighted that Rory and the team have secured the backing of Pictet to take the business that Graham and I co-founded forward. After some difficult early years and massive changes in the business technology landscape, TSG has become a business that all stakeholders – staff, business partners, clients and shareholders – can be proud to have been a part of. “We are proud of the growth and success that TSG has achieved, creating a leading Microsoft and cloud focused national IT services provider of outstanding quality with the potential to do even better. We wish Rory, his team, all the team and Pictet all the best for the future.” Andrzej Sokolowski, head of UK for direct private equity at Pictet, said: “TSG has an attractive and defensible business model, a high proportion of recurring revenue, and customers who value its service quality and technical expertise across the Microsoft tech stack. We see significant potential to increase TSG’s growth organically and via M&A. That includes solution areas in Azure, Dynamics and cybersecurity, as well as accelerating deployment of AI tools.” Edmund Buckley, head of direct private equity at Pictet, said: “We invest in high quality businesses run by entrepreneurial leaders. We’re pleased to be partnering with Rory McKeand and the TSG management team, and helping the business fulfil its growth ambitions.”
Tyneside tech firm Succorfish tackles £2bn 'ghost net' environmental pollution crisis
A Tyneside technology firm has created a device to tackle the global issue of lost fishing nets – an environmental pollution problem that also costs businesses £2bn every year. Industry figures suggest that up to one million tonnes of gear – ‘ghost’ fishing nets – is lost at sea every year, leading to significant costs for marine firms and more in terms of environmental harm. But North Shields firm Succorfish has created MyGearTag, an acoustic location device that uses modem technology to help fishing boats find lost nets, pots and traps over a range of up to three kilometres. Crafted from recycled fishing nets and weighing just 500g, MyGearTag is fitted on to new equipment as part of the manufacturing process, or retrofitted to fishing boats’ existing gear. After successful trials were carried out in the North Sea and the Arabian Sea, Succorfish launched MyGearTag at the recent Scottish Skipper Expo in Aberdeen. It is now working on finalising distribution and reseller agreements with a number of potential partners around the world. Read more: County Durham factory turns to four-day week hailing benefits for staff and customers Read more: Drax offloads SME customer book to EDF amid review The kit has been developed in partnership with Newcastle University’s Faculty of Electrical and Electronic Engineering and the pan-European NETTAG+ project, with grant funding provided by UK Research & Innovation and the European Union. Manufactured in the UK and assembled at Succorfish’s North Shields base, around 15 new jobs are expected to be created over the next year following the device’s launch, adding to the existing team of 20. Founded in 2008, Succorfish’s hardware is already used by customers as far afield as Norway, Malta, the US, Australia and New Zealand, while it is also one of just two UK firms to have its Inshore Vessel Monitoring Systems accredited for use in British fishing waters by the Marine Management Organisation. Chad Hooper, founder and CEO at Succorfish, said: “There is nothing on the market like MyGearTag in terms of its size, cost, low power use and effectiveness, and we’re hugely excited about the prospects for its adoption by the commercial fishing industry right around the world. Industry figures suggest that between half a million and one million tonnes of fishing gear is lost at sea every year, at a financial cost of around $2.6bn (£2.06bn). “Just under half of all the plastic in the world’s oceans is also estimated to be lost fishing equipment, while as well as causing significant pollution from simply being there, these ‘ghost nets’ can also cause substantial damage to underwater eco-systems and habitats. “Fishing equipment can be lost for any number of reasons, such as bad weather causing lines to be broken or being accidentally dragged away from where they were left by other boats’ gear, and unless its owners know where it’s gone, it can be almost impossible to find it again. “MyGearTag allows for lost fishing nets, pots and traps to be quickly located over a wide area, thus avoiding the substantial cost of replacing them, reducing the amount of plastic in our oceans and preventing any damage being caused to marine life. “From a sustainability point of view, the low-level noise that MyGearTag emits has been specifically designed to minimise any impact on the underwater environment, while working with the Ocean Material Group to manufacture the casing from recycled fishing nets adds an extra dimension to its environmental effectiveness.
South Tyneside's Consultiv Utilities creates 50 jobs amid head office expansion
A Tyneside utilities business is creating more than 50 new jobs after expanding its head office. Hebburn-based Consultiv Utilities offers energy, waste, water and telecommunications services to businesses around the UK, and it has seen significant growth since it was launched by founder and managing director Paul Smith in 2017. The company now has more than 170 employees, having seen a rise in business last year, prompting bosses to take additional office space in its Monkton South Business Park headquarters, to make way for the new staff members who are joining over the course of this year. The latest recruitment drive is under way to fill sales and business support roles and, so far, 27 of the 50 job vacancies have been filled. Consultiv Utilities – named as the best company to work for in utilities on the 2023 Best Companies to Work For List – has leased an additional floor at Merchant House on Monkton South Business Park from property owners, Central Space, providing an extra 8,000 sqft of office space and almost doubling its footprint. Read more: Leisure firm Lane7 to launch subterranean gaming centre Read more: North East property finance firm GB Bank launches new London office Founder Mr Smith said: “We’re delighted to be expanding operations here at Merchant House and making room for new team members within the business over the coming years – all of whom will be able to access our extensive training and professional development opportunities. We pride ourselves on providing an enjoyable and rewarding working environment and we’ve taken the time to ensure that the new office is both conducive to getting work done but also a welcoming and sociable space. “In securing the second floor of Merchant House, our landlords at Central Space have made the process easy for us. We’re now looking forward to settling in and building on the momentum that has enabled us to reach this point.”
Newcastle's OLM Diagnostics is snapped up by US manufacturer IMMY
Newcastle healthcare tech firm OLM Diagnostics has been acquired by a US manufacturer and distributor. Launched 10 years ago, OLM Diagnostics develops fungal diagnostic products which can reduce the rate of drug resistant infections – which can save hospitals money while also improving patient care. The business says a bright future is now unfolding after it was snapped up for an undiclosed amount by IMMY, an Oklahoma business which has been manufacturing, marketing, and distributing lines of diagnostic tests and reagents for infectious diseases since 1979. Newcastle law firm Sintons advised on the deal. Emma Pern, partner at Sintons, who worked on the case alongside solicitor Leigh Garbutt, said: “We’ve supported OLM Diagnostics with legal advice since 2017, from their initial agreements and trademarks, through to this recent disposal. It’s been a pleasure to work with the team for so long and to guide them through this milestone for the shareholders and for the company.” Read more: County Durham factory turns to four-day week hailing benefits Read more: Esh Construction secures £7.3m deal for Northumberland Energy Park work Ged McGonnell, the founder and a director of OLM Diagnostics, added: “We have been using Sintons for several years now for all our commercial needs, they have helped with everything from the rewriting of articles to contracts and advice. “When we made the decision to sell the business, we set about working with Emma and her team. Their attention to detail was outstanding, coupled with their ability to explain things in a simple way which helped and reassured us immensely. “The calm and efficient manner of the team helped navigate the sale through what seemed like difficult periods at times, resulting in a deal we were happy with. Special thanks also go to Leigh, Charles, Pippa and Ailsa, for their advice and help during this process and putting in some late nights at the end to get us over the line.” Sintons’ specialist corporate lawyers liaised with solicitors in the US and Israel throughout the deal, working with Stokoe Rodger LLP Chartered Accountants, tax advisers for OLM Diagnostics.
Hull 'reg-tech' firm Rubicon Bridge lays out expansion ambitions
A Humber firm that provides automated compliance services to other business has set out its plans for growth in Europe. Rubicon Bridge works with Amazon and Amazon sellers specialising in vitamins and food supplements, helping vendors scale internationally by meeting different overseas regulatory and labelling requirements. The six-year-old business has hailed a "milestone" in adding Ireland, Poland and Sweden to its regtech tool, with plans to soon all the major ecommerce markets in Europe. Bosses have pointed to international growth following the opening of offices in Amsterdam and Salt Lake City. Read more: Yorkshire fintech firm Fintel boosts revenues after acquisition spree Read more: Profits rocket at Filtronic as emerging space market helps business take off Kathryn Brown, managing director at Rubicon Bridge, said: "We are delighted with the rapid growth of Rubicon Bridge across Europe and adding these three new countries puts us in a fantastic position in Europe. The next ambitious step is to expand internationally and into an array of new categories. We are seeing our revenue continue to grow in Europe as well as the USA, from where 35% of it now comes." Last year Rubicon Bridge, which is based out of Hull's C4DI tech hub, received recognition from the Department for Business and Trade for its regulatory platform, which aims to substantially reduce the burden encountered by sellers when entering new markets. On launching its product with Amazon, Rubicon Bridge said there was "no ceiling" to its growth potential. Sharon Stathers, international trade adviser at the Department for Business and Trade, said at the time that it was was exciting to see a regional business like Rubicon not only thrive internationally but to also support other businesses grow and scale in a complex regulatory environment.
Sheffield software firm IntelliAM completes £5m acquisition of 53 North following admission to Aquis
South Yorkshire software company IntelliAM has completed the acquisition of engineering group 53 North a day after launching on the Aquis Stock Exchange Growth Market. IntelliAM, based in Dinnington, Sheffield, specialises in AI and machine learning for the manufacturing industry, and this week saw the business start trading on the AQSE, raising £5.08m in the placing. IntelliAM was formed to use AI models to increase operating efficiencies for clients, and its vision is to harness the power of artificial intelligence through machine learning and to revolutionise asset management within manufacturing. The company takes vast amounts of data from machines, processes and systems, including IOT (internet of things) devices. Instructions are then provided through its IntelliAM platform to boost clients’ operations. The company is led by chief executive Tom Clayton, who is founder of Sheffield maintenance engineering and asset management specialist 53 Degrees North Engineering Limited, which trades as 53 North, and chairman David Richards, the former CEO of WANdisco and managing partner of Yorkshire AI Labs. Back in March it signed heads of terms to acquire 53 North, saying it planned to complete the deal immediately after being admitted to the AQSE market. A stock market note announced the completion of the acquisition of 53 North. It follows an agreement signed last week in which the company agreed to purchase the entire issued share capital of 53 North for £5.187m. The deal entails 50% to be paid in shares - and around 2.7m new ordinary shares have now been issued to the founders – and the remaining 50% of the purchase price, £2.59m, has been paid in cash. On entry to the market, it said: “The directors believe that the IntelliAM platform enables fast, accurate and secure ingestion of data to provide valuable insights for clients that lead to higher revenue and lower costs through improved productivity, increased reliability, energy savings and improved supply chain.” It said the gross proceeds of the £5.1m fundraise would be used to pay the fees and expenses relating to the flotation, and to pay the initial cash consideration in relation to 53 North. The balance of around £3.3m will be used to cover overhead and ongoing costs, to continue research and development to accelerate its platform and software development, and to hire additional key personnel. 53 North, meanwhile, is a provider of asset care consulting and management strategies for manufacturers, particularly in the fast-moving consumer goods (FMCG) sector. The business has been trading for over 11 years, and in 2016 achieved a turnover of £1m through contract wins with two major FMCG companies. Since then, it has more than doubled sales and boasts some of the world’s top FMCG companies as clients.
Contractor appointed at £300m energy storage site
A Manchester green energy plant has taken a key step forward with the appointment of a key contractor who will start work later this year. Spencer Group has secured a £23m contract to design the site layout and deliver the enabling works and civils at Highview Power’s liquid air energy storage site at Trafford Energy Park in Carrington. The £300m project, billed as the first of its kind in the UK, will store surplus energy from wind and solar sources. Highview Power’s technology uses that energy to liquefy air. When needed, the air is used to power a turbine to generate electricity that can then be sent out of the site again. READ MORE: Essar Energy Transition plans 'Europe’s first 100% hydrogen fuelled power plant' at Stanlow refinery Highview Power says the tech can store energy for longer than conventional batteries can, and will help reduce energy waste. The company announced last month that it had secured investment from energy giant Centrica and the UK Infrastructure Bank for the project, and it now plans to build other such sites across the UK. The £300m funding package also included investment from Goldman Sachs, Danish fund KIRKBI, Mosaic Capital, and mining and metals giant Rio Tinto. Spencer Group’s Civils Division will begin work later this year, with the plant expected to be operational in 2026. Charlie Spencer, executive chairman at Hull’s Spencer Group, said: “Highview Power is a leading player in helping the UK achieve its net zero targets and is addressing the key issue of energy storage. “We’re delighted to be involved with this exciting and pioneering project, which promises to reshape the future of renewable energy. “We have a strong track record of delivering large-scale energy projects and we’re excited to expand our portfolio of works within this field with a project that will play a key role in the UK’s energy transition.” John Goldie, Highview Power’s programme director, added: "We are looking forward to continuing to build and further our relationship with Spencer Group, which we have developed over the past 24 months during the pre-execute phase of the Carrington project. “We selected Spencer Group based on their expertise and experience in delivering similar type projects and providing innovative and value-added solutions in engineering and construction.”
Life sciences firm Aptamer Group sees sales rise after rebuilding pipeline
York life sciences firm Aptamer Group has issued a positive trading update highlighting a £2.1m pipeline of sales negotiations. The company develops binders through its Optimer platform to enable new, innovative approaches in the life science industry, within therapeutics, diagnostics, and research applications. In an update for the year ended June 30, directors said it saw an upturn in sales as the year progressed, with unaudited revenue for the year coming in at £0.85m, around £0.55m of which was generated in the second half of the year. It said that, following the lull in customer confidence caused by its acute funding problem in August 2023, confidence had to be rebuilt with customers. The firm’s efforts to build up its sales pipeline led to increased revenues in the second half of the year and an “encouraging rise in order book values”. In the last quarter of the financial year, £0.98m in orders were won, resulting in a total of £1.8m in signed orders currently being processed or awaiting processing in the laboratory, putting the company in a strong position as it goes into the new financial year. As well as its order book, it also has a current pipeline of advanced sales negotiations totalling £2.1m. Steve Hull, executive chair of Aptamer Group, said: “The trajectory of both sales and revenue shows increasing potential, putting Aptamer Group on a good footing for the forthcoming year. The team has worked hard to rebuild the pipeline in the past year, and it is pleasing to see we have achieved a continued increase in sales throughout the year, with £0.98m sales orders signed in the final quarter alone showing this work is beginning to pay off for the company.
Bristol chipmaker Graphcore bought by Japan's SoftBank
Bristol chipmaker Graphcore has been acquired by Japanese-owned SoftBank Group in a deal rumoured to be worth hundreds of millions of dollars. Following the agreement, Graphcore will become a wholly owned subsidiary of SoftBank and will continue to operate under the Graphcore name. The company, which was founded in 2016 and employs around 500 staff in Bristol, has committed to keeping its headquarters in the city. It also has offices in Cambridge, London, Gdansk in Poland, and Hsinchu in Taiwan. "This is a tremendous endorsement of our team and their ability to build truly transformative AI technologies at scale, as well as a great outcome for our company," said Graphcore co-founder and chief executive Nigel Toon. "Demand for AI compute is vast and continues to grow. There remains much to do to improve efficiency, resilience, and computational power to unlock the full potential of AI. In SoftBank, we have a partner that can enable the Graphcore team to redefine the landscape for AI technology." Mr Toon and chief technology officer Simon Knowles will stay on as part of the deal, which closed after receiving the green light from the UK government, according to the FT. "Society is embracing the opportunities offered by foundation models, generative AI applications and new approaches to scientific discovery", said Vikas J Parekh, managing partner at SoftBank Investment Advisers. "Next generation semi-conductors and compute systems are essential in the AGI journey, we're pleased to collaborate with Graphcore in this mission."
LDC backs software firm IEG4 as it buys Agile Applications
Software and digital specialist IEG4 has taken over a Bristol business in a deal backed by private equity investor LDC. Alderley Edge-based IEG4 offers software as a service (SaaS) solutions to public sector organisations. It has now acquired Bristol's Agile Applications, which offers other SaaS services to local authorities "in complementary business functions". IEG4 says the deal will "drive significant growth and innovation" as its two teams join forces. Stephen Ferry, CEO of IEG4, said: "We are thrilled to welcome Agile Applications into the IEG4 Group. This acquisition represents a significant step forward in our strategy to provide the most advanced and user-friendly digital solutions to our public sector clients. The synergies between our companies will drive innovation and allow us to deliver even greater value to our customers." Simon Wilkinson, chair of IEG4, added: "Today marks a significant milestone for IEG4 as we welcome Agile Applications. This acquisition aligns perfectly with our vision to expand our capabilities and deliver even more innovative and comprehensive solutions to our clients. "Agile Applications' expertise in custom software development and their vision and expertise with AI-focussed solutions complements our existing offerings and will undoubtedly enhance our ability to meet the evolving needs of the digital landscape. We are excited about the opportunities this acquisition brings and look forward to a future of growth and success together.” LDC is part of Lloyds Banking Group. Partner John Clarke said: "It has been a pleasure to support IEG4 on the acquisition of Agile Applications. This strategic move not only strengthens IEG4's market position but also enhances their capability to deliver innovative and comprehensive solutions to clients. "Agile Applications' expertise in custom software development and AI-driven solutions aligns perfectly with IEG4's vision for growth and excellence. This acquisition will drive significant value and innovation, benefiting customers and stakeholders alike."
Port of Blyth to host 5G Innovation Lab following £500,000 investment
A new 5G Innovation Lab is set to be created at the Port of Blyth following £500,000 of funding from the North East Combined Authority. Businesses including offshore energy sector operators will get to test their technologies at the forthcoming facility that includes co-working spaces, specialised equipment and a private 5G network. Support will also come from local organisations to help firms scale up, innovate and access funding for 5G work. The Lab is being developed by communications infrastructure firm Boldyn Networks and is intended as a testing ground for Industry 4.0 - the so-called fourth industrial revolution - businesses who are developing products and services before investment. Read more: Filtronic secures £7.1m follow-on order from SpaceX to support Starlink rollout Read more: TechnipFMC secures deal with Energean for Mediterranean Sea project worth up to $1bn Coun Nick Kemp, portfolio holder for economy at the North East Combined Authority and leader of Newcastle City Council, said: "This project will remove barriers to accessing, testing, and piloting 5G technology solutions for manufacturing and services companies within the Port of Blyth, regional ports and the wider North East region. It demonstrates the Combined Authority’s commitment to growing our region’s innovation potential – to create high-skilled jobs, grow our green economy and support offshore energy to get us to net zero. "The project complements the work already being done by the ORE catapult in robotics, autonomous systems, big data, AI, and next-gen tech – and will reduce the likelihood that businesses based in the region fall behind the curve on 5G adoption.” Alasdair Kerr, commercial director at Port of Blyth said: "We are delighted to welcome the first ever 5G Innovation Lab to Blyth. At the Port of Blyth, we pride ourselves on offering turnkey solutions to our customers. The Innovation Lab will provide a unique digital offering, enabling the exploration of innovative 5G technology solutions for the offshore renewable energy sector from a state-of-the-art facility on site." The North East Combined Authority has also recently provided £1m of funding to North East healthcare-focussed research project, using 5G technologies. Participating organisations include CPI, Northumbria Healthcare NHS Foundation Trust, The North East and North Cumbria Integrated Care Board, Health Innovation North East and North Cumbria, Boldyn Networks, and Waymark. CPI will work with businesses that submit ideas to improve patient flow and discharge services as part of a 5G accelerator programme. The work is intended to show how the technology can speed up treatment and planning within the healthcare industry, and save costs. Steven Bagshaw, grand challenge lead at CPI, said: "Using 5G technologies in healthcare settings has the potential to help address some of the biggest challenges faced by healthcare providers today. By speeding up and increasing the ability to transfer large amounts of patient data, 5G technologies will provide the opportunity for new digital innovations to come to market. These innovations will help reduce the administrative and time pressures that confront those working in healthcare settings, and ultimately free up more time for doctors and nurses to spend with patients where it matters the most.
Animation and special effects studio Axis goes into administration
An animation and special effects studio in Bristol has collapsed into administration after struggling with labour costs and "severe" cash-flow problems. Axis was headquartered in Scotland but its VFX arm was based at the Bottle Yard Studios on Whitchurch Lane for a decade. The Bristol division worked with major film and TV brands including Netflix, Sky and HBO on projects including the Emmy award-winning series Chernobyl; Catherine the Great starring Helen Mirren; and Aardman’s A Shaun the Sheep Movie: Farmageddon. It was also a major player in the video games industry. Alistair McAlinden and Geoff Jacobs of Interpath Advisory have been appointed joint administrators of Axis Productions and Axis VFX, both trading as Axis Studios. All the company's 166 staff have been made redundant, although a small number will be retained by the administrators to assist with the winding down of the business, Interpath said. Following the administration, the company has ceased production of all projects with immediate effect. The administrators said on Tuesday (July 16) they are seeking operators to continue with the live projects. Mr McAlinden said: “Axis has been a studio of choice for key production companies and has produced content for household names such as the BBC, Netflix and Blizzard Entertainment. The company experienced a high demand for its services during Covid as animation and visual effects for TV, film and videogames skyrocketed. “Unfortunately, however, Axis has more recently been impacted by a decline in customer projects, as well as increases in labour costs which have resulted in severe cash flow problems. The directors worked tirelessly to explore alternative solutions, but ultimately had to take the difficult decision to seek the appointment of administrators.” Axis began developing animations in Scotland in 2000 and by 2008 had become the country's largest animation studio.
West Wales cleantech firm Hydro Industries expands with major contract win in Ecuador
Carmarthenshire headquartered cleantech venture Hydro Industries has secured a major contract to clean up polluted wastewater in the Ecuadorian capital of Quito. Hydro has been commissioned to treat 192,000 tonnes of contaminated leachate water from the city's main landfill site - which will make it the highest altitude facility of its kind in the world. The initiative is being driven by the Quito municipality. Hydro’s proprietary and patented technology will help protect the environment by ensuring contaminated water does not make its way into Quito’s river systems. Protection of the El Inga River, which flows through most of the city (including areas that have been designated as world heritage sites), is seen as being of particular importance. The value of the contract has not been disclosed. Hydro’s technology is designed to safely treat landfill leachate water, which is odorous and heavily contaminated with toxic metals such as lead, zinc, arsenic and cadmium. It will treat more than 800 tonnes of water per day at the El Inga site - ensuring discharged water meets the highest environmental standards. Read More: Welsh Government needs to stop dithering on Cardiff Parkway planning decision Read More: Welsh export champions Santiago Andrade, general manager of the waste management company in the metropolitan district of Quito, said; “We initiated a global search to find the best possible technology to deliver at speed a world class leachate treatment plant for Quito. Hydro, with its unique and patented solution, was selected and their system will be operational shortly. We look forward that through the treatment train implemented by Hydro, it guarantees environmental protection for our city.” Wayne Preece, chief executive of Hydro Industries, said: “We pride ourselves at Hydro for being swift, agile, creative and responsive to the very specific needs of different clients and we are delighted that the good-will and determination on all sides will now allow our friends and colleagues in Quito to meet their high environmental ambitions and provide people with the safeguards they deserve.” The new plant at El Inga, in the shadow of Ecuador’s famous Pichincha volcano, is due to be operational later this year. It will be 9,000 feet above sea level. The UK’s ambassador to Ecuador, Chris Campbell said: “I am delighted that Hydro Industries has won this contract with the municipality of Quito. This is also a significant achievement for embassy colleagues from the Department for Business and Trade, who have supported Hydro Industries with the bidding process since October last year. Throughout, Hydro Industries has shown drive, energy, and commitment to secure a deal which will benefit the residents of Quito, protect the environment, and showcase British expertise in science, technology, and engineering.”
RMT Technology strengthens senior team as growth drive continues
A North East accountancy firm has invested into its tech division. RMT Technology, the specialist arm of Gosforth based RMT Accountants & Business Advisors, has expanded its senior team in tandem with a growing UK client base. The company works with SMEs to identify and implement security first IT solutions to help them with their IT strategy, network infrastructure, information security and data management services. After twenty years at RMT Technology and two years as technical director, Mike Hayes has been promoted to managing director, while Stephen McNickle, who has more than 20 years of experience, has been appointed as commercial director, and Susan Bell has joined as consultant. Ms Bell serves as an advisor to the boards of several regional businesses and organisations, having been a former CEO at technology consultancy Waterstons and executive director at UBS. Mr McNickle said: “With the rapid advancements in technology, businesses need a trusted service provider that can recommend the right products and services for their success. Building close client relationships and understanding their unique requirements is crucial to building this trust. It is also one of our core principles at RMT. The teams’ technical knowledge is exceptional, and the business is set for significant growth. “We are building on our success by delivering a truly unique proposition to the North East market which will provide certainty, clarity and assurance to the IT estate of our clients. The value we can add will be unrivalled. Stephen Slater, director of commercial services at RMT Accountants & Business Advisors, added: “We’ve seen immense growth at RMT Technology in the last few years with an increased need for remote, secure access to technology services. Growing our senior team marks a step change in our ambitious progress into becoming the most trusted technical advisor and market leader in the space.”
Medtech firm Intelligent Ultrasound in £40.5m deal to sell clinical AI arm to GE HealthCare
Cardiff-based ultrasound AI software and simulation company, Intelligent Ultrasound, has confirmed the conditional sale of its clinical AI arm to US giant GE HealthCare for £40.5m. Subject to shareholder approval the deal will see the firm’s chief technology officer Nick Sleep transferring over with the clinical AI business to GE. The proposed acquisition doesn’t cover Ultrasound’s NeedleTrainer and Needle Trainer Plus products which will remain within the company alongside its simulation business. Once the deal is completed the board will lconfirm planned levels of investment from the proceeds to support investment and growth. The medtech venture acquired its clinical AI business in October 2017 through the takeover of a University of Oxford spin-out company, for £3.6m and had committed capital to date of £12.2m. Read More: Vista Technology Support acquires Irish firm Read More:Latest equity deals in Welsh business Riccardo Pigliucci, chairman of Intelligent Ultrasound, said: “We we have spent the last seven years successfully creating first-to-market AI products and have built a strong capability in real-time automated ultrasound image analysis. When GE HealthCare offered us £40.5m to acquire our clinical AI business, we were pleased that our achievements were recognised, but it presented us with the very difficult decision to exit the main market we had chosen for our future growth. To date, the growth of our current ScanNav related clinical AI revenues has been slower than we had originally expected and, most importantly, insufficient to fund the developments needed to materially increase the value of the clinical AI business. We have had to recognise that developing products such as ScanNav FetalCheck for gestational age estimation and ScanNav Liver is costly and would require the sort of funding levels that are outside the group’s current cash resources or capital raise capabilities. The Board has therefore concluded that accepting GE HealthCare’s offer is in the best interest of the Company’s shareholders and represents a fair net present value for these potential future revenue streams and recommends it to shareholders for their approval.” The chairman said the remaining simulation business will boosted by the inclusion of the NeedleTrainer range previously reported in its clinical AI business. He added: “The board will use the time between signing and completion of this proposed transaction to conduct a comprehensive review of the business. It is the board’s intention to make a material return of capital following a review of the growth potential and capital requirements of the post-transaction business and taking legal and tax advice on structure of a return.” Phil Rackliffe, president and CEO of ultrasound and image-guided therapies at GE HealthCare, said: “We are pleased to bring innovative technology from Intelligent Ultrasound into our ultrasound portfolio, allowing us to fully integrate these solutions into our systems to help clinicians improve workflow, reduce repetitive tasks, and simplify exams.
Snap UK manager Bridget Lea becomes chair of governors at Manchester Metropolitan University
The UK boss of Snapchat parent company Snap has become the chair of the board of governors at Manchester Metropolitan University. Mancunian Bridget Lea is an MMU graduate who before joining Snap last year was MD of the Commercial Division at BT EE, and who has held senior roles at companies including Sainsbury’s and O2. Ms Lea, who is also a director at brewing and pubs group Marston’s, joined the MMU board in August 2022. She will take over from current pro-chancellor and chair Simon Duffy on January 1. GENERAL ELECTION: Take our BusinessLive North West election survey READ MORE: Tebay-style motorway services plan for Cheshire is delayed - but backers remain 'committed' She is now vice-president and general manager, UK for Snap Inc. That company has three core products - messaging app Snapchat, augmented reality (AR) platform Lens Studio, and its AR glasses, Spectacles. Professor Malcolm Press, vice-chancellor of MMU, said: “I am delighted that Bridget Lea has been appointed as the new chair of our board of governors. It is even more special that Bridget is a graduate of our university. Bridget has been a supporter of our university for many years and her business insight has been invaluable. In addition, her career journey is an inspiration for all of us. I look forward to working with her to deliver our ambitious plans for the future.” Bridget Lea said: “As both a Mancunian and an alumna, it is a great privilege to be appointed as the next pro-chancellor of Manchester Metropolitan University and chair of its board of governors. “Since first joining the board, I have been greatly impressed by the leadership, staff and students of the university. I am proud that Manchester Met is not only one of the most applied to universities in the UK, but that it is also one of the most diverse and inclusive. A third of our full-time home undergraduate students identify as Black, Asian or minority ethnic and almost half of our undergraduate students are the first in their family to progress to higher education. “As someone who was also the first from my family to go to university, I recognise the value of an education and the opportunities it can bring. Studying at Manchester Met was a transformational experience for me, as I know it is for many of our students. “I am immensely grateful to Simon for his guidance and encouragement, and I greatly look forward to working with Malcolm, his team and my fellow board members in the months and years to come. Manchester Met is an exceptional university with a very bright future ahead.” Ms Lea was interviewed by the Manchester Evening News last year about her journey from a young single mum living in a tiny Cheetham Hill flat to the top of the business world. She said that as a woman she had had to to work “twice as hard” to succeed in male-dominated worlds. And she advised anyone looking to climb the ranks at work to be their authentic selves. She said: “Whether we like it or not, working hard and getting yourself through the door is the first thing. “But don’t feel the need to conform. “When I was starting out I felt like I had to fit into a mould to fit into the status quo around me. “One thing I notice now Is people are authentically themselves. Don’t hide the elements of you that are different to others – bring them to work because it’ll help others. Don’t feel like you have to fit into a box.” In April, MMU announced that finance leader Antony Jenkins would succeed Lord Mandelson as its chancellor. Mr Jenkins, who in 2021 was made a CBE in the Queen's Birthday Honours for services to business, is founder, chair and chief executive of fintech firm 10x Future Technologies Group.
Engineering group expands with South East buyout deal
An engineering firm has expanded its group with the acquisition of a South East business. Wolverhampton-based Wintech, which specialises in façade engineering, has bought out SDP Consulting Engineers which it said would help it grow its service offering. Based in St Albans, SDP is a structural, civil engineering and surveying firm which was founded in 1974. Wintech said the move underpinned its aim of providing a single point of responsibility for services such as construction design, façade design and engineering, fire surveying and access consultancy. It brings their staffing numbers to more than 130 across the UK. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Managing director Paul Savidge said: "Our priority is our people and our collaborative approach that builds strong, long-term partnerships with our clients. "We appreciate there is a great challenge ahead to ensure all buildings, both refurbished and new build, can not only deliver on net-zero targets but meet the Building Safety Act requirements. "This acquisition is an essential part of that process towards making a significant and lasting difference. "It demonstrates our ambition, commitment and dedication to support new and existing Wintech clients and will bring a range of new capabilities and skills to support not only our but SDP's clientele. "It will strengthen Wintech's thriving consulting services and will support the teams' growth across the UK." Nigel Grayer, managing director of SDP Consulting Engineers, decided to sell the business as part of his longer-term retirement plans. He added: "This is an exciting time for SDP. The support and growth opportunities provided by Wintech will enable us to continue to serve our existing clients while expanding with new opportunities and clients.
Filtronic secures £7.1m follow-on order from SpaceX to support Starlink rollout
Telecoms tech firm Filtronic has landed a $9m (£7.1m) contract from SpaceX to support the US rocket firm's Starlink satellites. Sedgefield and Leeds-based Filtronic says the deal is a continuation of demand for its E-band solid state power amplifier (SSPA) modules that will help the Starlink constellation to deliver high-speed, low-latency internet to customers around the world. Work on the components is due to be completed this year. It follows a multimillion-pound deal struck between Filtronic and SpaceX, announced in April, that could eventually see the high profile rocket company become a shareholder in the northern tech firm. The £48m ($60m) agreement is based around supply of Filtronic's SSPAs, but it could also see the two businesses develop new products together for the Starlink system which has brought internet connection to hard to reach areas. As part of the latest order, a further 2,171,211 share warrants have been vested, meaning a total of 8,684,844 share warrants are now vested. That represents 4%, of the maximum 5%, of Filtronic's share capital at the time of the signed agreement. Nat Edington, chief executive officer, said: "We are delighted to receive this further order from our partner, SpaceX, as we continue to support the rollout of the Starlink constellation. The order demonstrates the continued significant role we are playing in helping SpaceX achieve their mission." In announcing the original agreement with Filtronic in April, SpaceX's vice president of Starlink Engineering, Mike Nicolls referred to the London listed firm as an "outstanding" supplier. He said its team had stepped up to meet Starlink's needs for high quality parts. As the Starlink constellation is being increased, so too is the ground station network with Filtronic's tech being used to ensure high speeds and low-latency between earth and the orbiting satellites. In June, Filtronic said the tie-up had significantly boosted its trading and investors were told the firm's Ebitda was ahead of market forecasts, with the expectation that full year totals will be "no less than" £4.8m, up from £1.3m last year. Meanwhile, revenue is expected to be £25.4m, up from £16.3m last year.
BioGrad Education becomes first North West firm to win backing from £660m Northern Powerhouse Investment Fund for growing SMEs
A biotech education firm that aims to create a new generation of scientists has become the first North West company to win investment from a £660m fund for Northern business. The Northern Powerhouse Investment Fund II (NPIF II) was launched by the British Business Bank in March with the aim of countering the “computer says no” attitude of traditional lenders. Now laboratory education provider BioGrad Education has secured a six-figure investment through the fund to help it grow. BioGrad Education, based at Liverpool Science Park, runs lab and clinic-based courses to train the next generation of people working in STEM, at levels from A Level to postgraduate. READ MORE: Packaging tech firm helping fruit and veg last longer wins key funding from Innovate UK READ MORE: Camera film maker Harman reveals multi-million pound investment It plans to use the funding to create jobs and to buy equipment to help the team tender for new contracts. The funding will also provide working capital for BioGrad Education to deliver skills bootcamps across the UK to help employers to respond to skills shortages. Dr Natalie Kenny, CEO of the BioGrad Group said: “We’re offering students the opportunity to access cutting edge science. There isn’t a one size fits all route into research, science and medicine but our training courses provide students with pre-experiences, spending time in laboratories with scientists. We’re excited about developing the Skills Bootcamps and are focused on further business growth. The support from NPIF II and Caroline Turley at FW Capital has been instrumental. She’s really taken the time to immerse herself in our business and understand our future goals.” BioGrad Education secured the funding through NPIF II – FW Capital Debt Finance, managed by FW Capital. Caroline Turley, investment executive at FW Capital said: “Natalie and the team at BioGrad Education are passionate and entrepreneurial, leading their field in scientific advances and healthcare education. Their approach to helping young people in the STEM field is inspiring and the team has won a number of awards recognising their innovation and leadership. I’ve enjoyed working with Natalie and the team, learning more about their future ambitions. "BioGrad Education is a great example of a thriving scientific business within the Liverpool City Region. This investment is providing an important boost to the BioGrad Group’s growth strategy, providing a platform from which to drive the business even further forward.” NPIF II will provide SMEs with loans from £25k to £2m and equity investment of up to £5m to help them to scale up. Ken Cooper, managing director at the British Business Bank said: " BioGrad Education is the first in what will be a long list of entrepreneurial Northern businesses supported by NPIF II. The Northern Powerhouse Investment Fund II exists to enable businesses in the North to access the funding they need to grow and BioGrad is a great example of how access to the right funding can be transformative for companies with vision and ambition. " By providing the investment to enable BioGrad to expand and create new opportunities, we are backing them to support future talent and address a critical skills shortage. We look forward to seeing the positive impact this business makes on both the local economy and the broader STEM community."
Tech revenues soar at HR software specialist Talos360 as LDC-backed business plans acquisitions and further growth
An HR software firm backed by LDC is planning more acquisitions after seeing revenues grow 10% last year – driven by the success of its technology arm. Warrington-based Talos360 reported revenues of £11.6m for 2023 - up on £10.5m a year earlier despite a “challenging backdrop”. It said technology sales rose 55% to £5.1m, up from £3.3m a year earlier, with tech sales now representing a record 44% of Talos360’s total revenue. It reported a pre-tax loss for the year of £447,000, a substantial improvement on the £4.5m the previous year. And it reported an adjusted operating profit of £800,000, an improvement on a loss of £263,000 in 2022. The group says it now plans to “accelerate growth through complementary acquisitions, product innovation and further investment in its award-winning culture”. Talos360 offers software-as-a-service solutions connected with recruitment and HR and works with more than 800 businesses. Its management team, led by CEO Janette Martin, was backed by private equity investor LDC in October 2022. Since then it has driven growth in sectors including retail and hospitality, care, education, manufacturing and professional services. Ms Martin said: “2023 was a landmark year for us. We continue to invest in our market leading talent solutions to solve all our customers’ hiring challenges, helping them to attract, recruit and retain their top talent. Technology is firmly at the forefront of our brand, and we’re excited to continue investing in our offering and build momentum by actively pursuing complementary acquisitions with LDC’s support. “It’s also my passion to achieve growth whilst providing a supportive and inclusive workplace culture. We’re proud to offer exciting careers in tech to people across the North of England and will continue to help our people progress in their careers.” John Clarke, partner at LDC, added: “When we started working with Janette and the team it was clear that there was no limit to their ambition. The human capital management solutions space is increasingly technology-driven and Talos360 has positioned itself as a market leader in software through a commitment to innovation and a recognition that investing in employee wellbeing and development is a critical component of any successful growth strategy. I’m confident 2024 will be another stellar year for the business.”
Newcastle's Luminous XR seals £1m investment to target US growth
A Tyneside business specialising in 3D digital technology is aiming for overseas growth on the back of a fresh £1m investment. Newcastle based Luminous XR, which is pioneering extended reality (XR) software, has raised the seven-figure sum from the North East Venture Fund, supported by the European Regional Development Fund and managed by Mercia Ventures. The firm’s platform allows developers to create metaverse-style training programmes and simulate real-life scenarios – for example for health and safety training – and is particularly popular with clients in the energy, manufacturing and industrial sectors. The investment will help the Toffee Factory based company to deliver on a seven-figure contract with a major Middle East oil provider, while also targeting other overseas markets, in particular the US. The company has also developed a virtual reality content authoring tool, called Flow, which will be launched in late summer and will make it easier and faster to create training content by removing the need to write code. Luminous XR, which now employs 30 people, moved into virtual reality in 2016, ten years after launching as a 3D mapping specialist.Mercia first backed the company in 2017 and has provided a number of rounds of investment from its own funds and from the North East Venture Fund, to help Luminous XR to develop its products and grow the business. The latest funding brings the total raised to date to £3.55m. As well as its Newcastle head office, it also has a base in Bahrain and has recently established a presence in Texas, US. Ben Bennett, CEO of Luminous XR, said: “Luminous is used by the biggest brands in the industrial and manufacturing sectors who have the highest training standards. Our XR platform is paving the way for the adoption of Extended Reality training, providing a scalable, secure solution with many advanced features. The current funding round will now allow us to grow our sales and marketing as we expand globally.”
North East bulletproof shield maker reveals role in US military footwear project
Nano-materials engineering firm Graphene Composites is involved in a project to develop the next generation of US military footwear. The County Durham-based creator of bulletproof shields and air filter technology, which has US offices in Providence, Rhode Island, is taking part in the Supporting Warfighters through Innovative Footwear Technologies (SWIFT) programme. It will see Graphene Composites extend its patented GC Composite graphene and aerogel technology to create ultra-lightweight materials that offer insulation in extreme cold weather. The firm's expertise will be used to create footwear that offers greater protection, comfort and durability, that are to be manufactured in the US. Graphene Composites says its work will attempt to overcome the significant scientific obstacle that comes in enhancing thermal capabilities of footwear in severe conditions. Read more: North East sees rise in jobs created through foreign investment projects Read more: Battery recycling leaders Connected Energy and Altilium join forces Other partners in the project, which comes via the Harnessing Emerging Research Opportunities to Empower Soldiers (HEROES) initiative, include DEVCOM Soldier Center, the US Army's efforts to create technologies for soldiers; University of Massachusetts Lowell and Natick MA. Mox Weber, VP GC USA , said: "GC Composites stand out due to their unique combination of low density, better insulative abilities, and robust durability. We will apply our nanomaterials and advanced materials engineering expertise to graphene and aerogel composites to achieve super thermal insulation and enhanced durability of the nano-porous structure." Ramaswamy Nagarajan, distinguished university professor, co-director of HEROES, added: "HEROES is excited to embark on this university-industry-government partnership with cutting technologies from industry partners such as Graphene Composites. We are proud to contribute to DEVCOM SC’s mission of developing high-performance footwear for our Warfighters and onshoring manufacturing capabilities to the US." For Graphene Composites, the work follows the announcement of a supply partnership with Canadian graphene producer Black Swan Graphene - itself a joint venture involving North East chemicals manufacturer Thomas Swan & Co, which developed the processing technology behind the company. Black Swan hopes to set up a large scale factory in Québec, and is producing the material for Graphene Composite's GC Shield product, a bulletproof and stab-proof shield sold to law enforcement organisations and to schools for protection against shootings.
US buyout deal for Clarity Software
A Solihull software firm has been bought out by a US outfit. Clarity Software has been acquired by Austin-based Inktavo in an undisclosed deal. Clarity Software sells management information systems, specialising in job pricing, inventory and production management for the signs and graphics industry. Inktavo is a provider of integrated software services for branded merchandise businesses. It said the acquisition of Clarity Software would further enhance its product offerings and expand its geographical reach. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Clarity Software's chief executive Richard Gamlin said: "We sought to scale and expand geographically, particularly in the US and non-English speaking markets. "Our customers will ultimately benefit from the expansion of flexible software functionality to help them grow using one application." Inktavo's chief executive James Armijo added: "Our mission is to create a family of solutions for branded merchandise businesses to organise and grow. "Our acquisition of Clarity Software expands the geographics we can serve and positions Inktavo to provide even more flexible and comprehensive software solutions that enable signage shop businesses to grow seamlessly using a single application." Birmingham-based corporate finance advisory firm Clairfield worked with Clarity Software to prepare the business for a sale and find a buyer. Partner Shah Zaki said: "We are delighted to have found a strategic buyer who will accelerate Clarity's growth." Legal advice was provided to Clarity Software by Freeths whose partner Lee Clifford added: "It was a pleasure to support the shareholders of Clarity Software on the sale. "The Clarity business has developed an excellent software management information tool which has seen high growth.
How Greater Manchester could become a global hub for the massive $2bn Esports market
Could this dark room with flashing lights be the next generation’s Old Trafford or Etihad? It sounds like a bold vision - but when you learn more about Esports, you can see why Iain Earle has such big ambitions. The Maxwell Building is now home to the University of Salford’s state-of the art Esports lab. With its black walls, banks of gaming PCs that look to an untrained eye like arcade machines, and keyboards and PCs with multicoloured flashing lights, it doesn’t look like your typical university IT lab. And that’s the point - it’s aimed at students wanting to work at the cutting edge of a sector that’s growing at pace. Esports – competitive video gaming watched online or even in person – is a truly massive business, which can come as a surprise to those of us who know far too little about it. Earlier this year a report by Market.us suggested the global market was worth $1.93bn i n 2023, and could reach $2.4bn this year. By 2032, the market could be worth $10.9bn and the live streaming market keeps growing and as more sponsors are attracted to the sector. In fact, the Esports Workd Cup is ongoing right now. The US and China dominate the market but it’s big in the North West too. In May, thousands of spectators attended the Rainbow Six Siege Major tournament at the BEC Arena in Trafford Park. Iain Earle, programme leader for the Esports Business Management course at the University of Salford Business School, is clearly used to having to explain the industry’s rapid growth. He said: “It's younger demographics that are really driving it. And ultimately it's growing and growing because more and more young people are engaging with it. They start when they’re still in school, usually just by playing the games. And then they'll start to watch the games they play on YouTube, watching content that's been produced for the market. “And then they sort of develop a deeper passion. A lot of them start to create their own kind of mods to games, making little changes to personalise the games or to make it unique.” If the North West is to play its part in the growth of Esports, it will need skilled and trained people. That’s where centres like the lab, and MediaCity’s HOST centre, come in. HOST offers a Gametech campus and programmes for the Esports and gaming sector. In 2023, Salford tech company IN4 group launched the Manchester Exports Academy for young people aged 8-16. Mo Isap, CEO of IN4, said at the time : “The career opportunities in Esports are immense and we want young people in Greater Manchester to know that they too can be a part of this fast-growing, multi-billion pound industry.” Iain and his team work closely with HOST and now he is keen the University of Salford plays its part in supporting and training older students. The new lab, formally opened last week when BusinessLive paid a visit, is designed to host tournaments and to train students in the more business-focused skills they will need. It does that in an environment suited for gaming, with low lighting and black walls above those multicoloured computers. There’s even a professional Esports standard F1 rig in the corner of the room. Iain said: “It's about creating exactly the kind of physical ambience and environment that students will be creative in but also they'll engage with once they work in industry. “If you go to any kind of business that works with gaming or Esports, they've got a similar kind of ambience as we do here. My background was in the creative music industry so studios were my playground and I connected with that very much. "It has to have an environment and ambience that really will draw people in but that will also enable young people to deliver their absolute best in a conducive atmosphere.” Iain sees Esports as a “cultural phenomenon” that brings together not just video gaming and IT but also music and fashion - even observing that one day Esports team shirts could become as common as football shirts are now. Then there’s broadcasting. Each gaming PC has a professional quality camera while the room also includes a broadcast mixing desk that can be used to present Esports tournaments online. That all means this room could become the home base for Salford and Greater Manchester Esports teams from the university and beyond. Iain smiled “This could be like Old Trafford or the Etihad for them" adding that he expected Esports viewing figures might yet grow to rival those of existing sports. Iain hopes the lab will be a cornerstone of the Esports sector in Greater Manchester and the wider North West. And he has big hopes for the industry as a whole, saying the region is well placed to become a global leader. He said: “I really do believe that in Manchester and Salford we could become, certainly for this part of the country, the hub for gaming and Esports. There are already some great facilities. We've got a partner organisation, HOST, which we work with down at Media City. “In May, they had the Rainbow Siege major at the BEC in front of 4,500 paying attendees. Now that has so many economic benefits for the region, not just directly for the Esports industry, but also for those secondary industries like transportation, hotels, restaurants, bars as people come from all over the country to Manchester to go and see a hybrid event that people could also access from all around the world. "So we're not just applying a local kind of perspective - it's for a global market as well. And I think Manchester, with the history of innovation and popular culture that we have, is ideally placed to really make a big imprint and a mark on this industry.” It also allows students to learn about the wider Esports ecosystem locally and globally. He added: “We are also, very importantly, teaching about ethics and integrity. It's still a very new market, a very emerging market. Therefore, regulation sometimes still is taking a little time to get put into place. And it's very important to our learners and the community if they're going to go into the industry, they should go in with their eyes wide open.” And the centre will also reach out to colleges and the wider community to talk about Esports and the opportunities in the field. Iain is keen to point out that the lab isn’t about playing games - it’s about everything that goes on beyond that. “It’s about the business management side of things,” he said. “So if you are a young game developer, how do you get your new game or your new product or service to market? “Quite often, for young creative people, the gap is they don't know how to get their wonderfully created content out to a wider market. When they do, there is always the risk of exploitation and what we want to do is inform them, educate them, but also bring them to networks and areas where they can further their career after they graduate.”
Irish lab diagnostics firm opens R&D facility in Exeter
An Irish laboratory diagnostics company has opened a new research and development facility at Exeter Science Park as it expands its UK business. Limmerick-headquartered Serosep will use the lab to identify and develop new practices and boost its R&D capabilities, it said. The business, which was founded in 1997 and has 127 staff, specialises in microbiology, histopathology and environmental testing. It manufactures and connects diagnostic products and solutions to laboratory teams around the world. According to the firm, the facility at Exeter Science Park will provide opportunities for collaboration with local universities, healthcare providers and other Exeter Science Park-based companies. Jo Gawler, environmental business unit manager, said: “We are delighted to have opened our new lab at Exeter Science Park. We are looking forward to the opportunities this brings for the development of Serosep, as well as the potential to collaborate with other sector-related businesses based here." Serosep, which also has a facility in Crawley, West Sussex, opened a US office in South Carolina last year. “Our company’s head office and facility is in Limerick in Ireland and we have an additional facility in Crawley, so the proximity to Exeter Airport, as well as the other excellent transport links, were a key factor in choosing Exeter Science Park," added Ms Gawler. Like this story? Why not sign up to get the latest business news straight to your inbox. Jason Buck, senior development manager at Exeter Science Park, added: “We are delighted to have Serosep join our community. Their expertise in diagnostic solutions complements our mission to foster growth and innovation in the science and technology sectors, which in turn has an impact on our economy in the South West. We look forward to supporting their continued success and seeing the positive impact of this move to Exeter Science Park.”
PureCyber eyes expansion following £5m equity investment boost from BGF
Cardiff-based cyber security firm PureCyber is looking to accelerate its growth following a £5m equity investment boost from BGF. Founded in 2016 by chief executive Damon Rands, the consultancy provides a broad range of cyber security solutions, acting as an outsourced provider for businesses looking to optimise their protection against attacks. It has a growing client base in professional and financial services, manufacturing, education and sport sectors, with many global customers including large education institutions and premier league football clubs. Read More: Foresight ramping up its presence in Wales Read More: BGF backs Welsh life sciences firm Following the investment, PureCyber, which employs 37 cyber specialists, is looking to become a dominant force in the cyber industry through the continued expansion of its client base across the SME market as well as growing its market share among larger, global enterprises. As part of the deal Ben Marnham, a highly experienced former tech chief executive, has joined PureCyber as its non-executive chair. Mr Rands said:“Having successfully scaled the business since its inception in 2016, it was a natural time to look ahead to the next phase of growth. With a wealth of experience in the technology market and a pedigree of supporting ambitious businesses on their scaleup journeys, BGF was a natural fit. We are also delighted to be working with Ben Marnham who has worked with a number of fast growth tech scaleups. “The PureCyber team and I are committed to growing the business to support the ever-increasing needs of the global SME and enterprise market and are delighted to be working with an investment partner and a non-executive chair that shares our vision for the future.” The deal was led for BGF (formerly known as the Business Growth Fund) by Hannah King and Edwin Davies, investors in BGF’s Wales and south west team. BGF has been an active investor in the Welsh marketplace with other investments over the last few years including those into IQ Endoscopes, Character.com and Victorian Sliders. It takes non-controlling minority equity positions in its investments. It has seen one successful exit to date in Wales with DevOps Group. Its other current live investments in Wales are in UNRVLD, Ceryx. Ms King, investor at BGF, said: “PureCyber represents an exciting opportunity to back a high-growth and high-profile business that is operating in an attractive part of the cyber market. We are proud to be investing in an ambitious team with a clear vision for the future and look forward to adding another dynamic technology business that is flying the flag for Welsh enterprise to our portfolio.” Mr Marnham said: ‘PureCyber has excellent growth potential – the market is expanding, and its track record clearly demonstrates that the culture, proposition and delivery are all on point. I am looking forward to joining the board and working alongside Damon, the PureCyber team and BGF.” The BGF was established back in 2011 after a review commissioned by the then UK Government recognised an equity funding gap for SMEs seeking growth capital in the £5m to £10m range. Since then it has investment £4bn in 600 companies and counting, making it the most active investor in the UK. Deal advisers For BGF: Legals: Capital Law – Laura Spendiff, Catherine Golledge Tax due diligence : Bevan Buckland – Matthew Denney and Isobel Morgan PureCyber: Corporate finance: Lexington – Thomas Edwards, Jade Burgess, Ioan Brigden
Mayor urges Dyson to provide 'cast-iron guarantee' over £100m research centre in Bristol
The West of England's metro mayor is urging Dyson to provide a “cast-iron guarantee” over a planned £100m research centre in Bristol after the tech giant confirmed it was axing 1,000 UK jobs. Dan Norris, who took Jacob Rees-Mogg's seat as MP for North East Somerset and Hanham in the general election, has written to the household appliances firm to establish whether the proposed centre will be impacted by the announcement. Last year, Dyson said it would open a new tech hub in a redeveloped building near Bristol Bridge, overlooking Castle Park in the city. The Bristol centre was expected to employ hundreds of extra AI and software engineers as well as the global tech firm’s commercial and e-commerce teams for Great Britain and Ireland. “I hope a solution can be found to keep as many jobs safe as possible in the West of England region, and I have asked for a cast-iron guarantee that the £100m research and development centre will go ahead as planned," said Mr Norris. The metro mayor also asked how Dyson's restructure would affect staff in Bristol. The company, established by tech tycoon Sir James Dyson in 1991, has a large base in Wiltshire as well as sites in London and Bristol, where it employs around 100 staff. Mr Norris said: “Clearly this is a very disappointing and worrying situation for everyone concerned, not least the brilliant 100 tech workers who find themselves at risk of losing their jobs in spite of the fundamental strengths of the Bristol office. “Locally, there are obviously limits to what the Mayoral Combined Authority can do but I have offered its full assistance, and have made it clear that we stand ready and will do all we can to support the company and workers to protect as many jobs as possible.”