Coronavirus update: the latest news from East Midlands businesses

Distinct Recruitment says it has furloughed some of its staff, but will be topping up their wages.

The firm, which won Small Business of the Year at this year’s East Midlands Business Masters Awards, says it will do “whatever it takes” to safeguard jobs.

In a statement on LinkedIn, James Calder, chief executive said: “As business owners and leaders we are judged on the decisions we make, especially in challenging times. We have spent over four years working hard to create a great business with incredible people here at Distinct. I made a commitment to our staff that we would get through these difficult times together, and that we will do whatever it takes to safe guard everyone’s jobs.

“Having listened to our customers and our team regarding activity levels in the market, we have made the decision to temporarily furlough some of our workforce during these unprecedented times. During this time our people who been furloughed as of 1st April, will have their salary topped up to 100% by Distinct. To those of our staff who are on the ground ensuring we have the resources in place to support our clients and candidates while we get through these challenging times, we thank you.”

Business confidence in the East Midlands fell 24 points during March to 3%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

The research, taken between the 2 and 16 March, showed that companies in the region had lower confidence in their business prospects at 4% and lower optimism about the economy at 2%. Together, this gives an overall confidence of 3%.

Across the UK, overall business confidence fell by 17 percentage points to 6% in March, the lowest level since October 2019. However, the report showed that nationally, for the second week of the survey, a much sharper fall in overall confidence was recorded at -3%. It matches the lowest dip seen by the barometer since December 2011 and is otherwise the lowest dip since March 2009 during the global financial crisis.

Responding specifically to the impact of coronavirus, some 68% of East Midlands businesses stated that they had already been affected or expected to be impacted, ahead of Boris Johnson’s initial call for the public to stay at home on March 16.

Amanda Dorel, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “This research shows that the virus was already beginning to affect East Midlands’ businesses before the social distancing measures were announced by the Government, with nearly two thirds of businesses in the region saying that they’d already been or expected to be impacted by the outbreak.

“It is unsurprising that sentiment around the economy and firms’ business prospects in the East Midlands have dropped so significantly during the last month, and we can expect an even more subdued picture in the region this month as tough trading conditions weigh on businesses’ outlook. Against this backdrop, we are here to help our customers through interruptions they may face and as part of our anticipated £18bn of support for businesses this year, we’ve set aside £2bn of arrangement fee free finance to help small firms affected by COVID-19.

“This funding is designed to help businesses manage their cashflow, which might have been affected by supply chain interruptions or employee absences. We’re also advising firms on how they can access the Coronavirus Business Interruption Loan Scheme (CBILS). We remain committed to supporting our customers in the weeks and months ahead in any way we can.”

Businesses in the North East had the highest confidence at 23%, ahead of the South West at 16%, and London at 12%.

A Chesterfield manufacturer is offering its factory, people and resources to the national effort to fight coronavirus.

The company, Blachford UK, which manufactures vehicle soundproofing materials for clients in both the UK and Europe, including JCB and CASE, employs more than 100 people at its site in Holmewood.

Production at the factory has ceased in response to the global pandemic. However, appeals from the government to manufacturers to assist with the UK effort has prompted Jason Lippitt, managing director of Blachford UK to offer the services of the company’s factory and staff.

He said: “We have a large production facility and a skilled workforce, including engineers, machinists and designers, that can all be utilised to manufacture goods and equipment that are critical to the NHS.

“If there are any companies out there, particularly those making PPE for NHS workers, we have staff and equipment at Blachford and we’d all like to help.”

The company has set up a dedicated email address during the crisis, to ensure that requests for help are answered immediately. Companies involved in producing essential supplies during the COVID-19 and would like to talk to Blachford should email NHSsupport@blachforduk.com