North West business briefs: Appreciate Group; Dechra Pharmaceuticals; McBride; AO World; Ultimate Products

Appreciate Group, the Liverpool-based gift and reward vouchers specialist, has announced that chief executive Ian O’Doherty will be stepping down to pursue other interests at the end of July, but will remain available to advise the group until January 2023.

Group chair, Guy Parsons, will become executive chair in the interim to ensure a smooth transition, as the group commences its search for a new CEO.

Ian joined the group on February 1, 2018 and led it through a significant period of business transformation, including the implementation of its ongoing strategic business plan, and navigating the disruption of the pandemic. This has included simplifying and streamlining the business, moving to new offices in Liverpool, and the disposal of non-core activities.

Having completed this stage of the group’s transformation, now is the appropriate time for Ian to step down and for new leadership to be appointed for the next stage of the group’s growth strategy, Appreciate said.

It added that the board is confident that the business will operate normally under the leadership of the executive chair while a new CEO is recruited, and that the group has strong executive and divisional management teams, as evidenced by the internal appointment on July 6, 2022, of Talha Ahmed as interim chief financial officer.

Guy Parsons said: “I would like to thank Ian for his significant contribution to the group’s transformation of recent years and successfully navigating it through the disruption of the pandemic. We look forward to announcing new executive board appointments in due course. The business is in good shape and I am confident we will move purposefully to achieve our long term goals as we progress our digitally led growth strategy.”

Ian O’Doherty said: “It has been a privilege to serve as CEO of Appreciate Group. I am grateful to all my colleagues for their great efforts to successfully transform this business and position it for growth. I have every confidence that they will be equally successful going forward, and I wish them every good fortune.”

::

Dechra

Northwich-based Dechra Pharmaceuticals has signed a private placement of 50 million euros seven year, and 100 million euros 10 year new senior unsecured notes.

The issue has similar covenants to the group’s existing facilities. The weighted average coupon of the fixed rate notes will equate to 3.8%.

The issue was priced on July 1, 2022, and the agreement was signed on July 14. The notes were issued on July 14, subject to satisfaction of customary closing conditions.

The private placement is being undertaken now to achieve the group’s aim of ensuring diversified sources of funding and to extend the group’s debt maturity profile.

All proceeds from the placement will be used to repay existing debt on the group’s revolving credit facility.

::

McBride products

McBride, the Manchester-based manufacturer and supplier of private label and contract manufactured products for the domestic household and professional cleaning and hygiene markets, said revenues have improved in the second half of its financial year, ending June 30, 2022.

In a trading update it cited problems linked with exceptional input cost inflation and supply chain disruptions, most recently further exacerbated by the Ukraine war, but said these impacts have been predominantly offset through pricing actions.

As a result, following first half revenue declines of 6.6% on a constant currency basis, revenue grew by 13.4% in the second half to produce group revenue growth of 2.9% at constant currency for the full year. The group anticipates that adjusted operating profit will be in line with current market consensus.

Net debt closed at circa £168m (30 June 2021: £118.4m). The group’s liquidity at 30 June 2022, was circa £70m, £30m higher than the minimum liquidity requirement of £40m applicable under the group’s financing arrangements.

The increase in debt was driven by working capital increases directly resulting from the effects of inflation rolled up in net working capital, and in-year losses.

The group said it continues to explore and assess all avenues to maintain liquidity and create additional funding for the benefit of all stakeholders.

It said it is fully appreciative of the ongoing support that the banking group have and are continuing to give the group through this period of uncertainty caused by macroeconomic factors which have resulted in rapid and unprecedented rises in input costs and ongoing global supply chain challenges.

::

Public sector procurement business, ESPO, has announced a partnership with Bolton-based online electrical retailer AO Business to offer a selection of white goods, appliances, small domestic appliances and televisions to schools and public sector customers.

AO will provide a core range of products including fridge freezers, washing machines, and ovens through ESPO’s white goods framework. The deal also involves the supply of air purifiers to the education sector, ensuring many schools can remain open throughout the COVID pandemic. ESPO customers can also safely dispose of electrical waste through AO’s state of the art WEEE recycling facility in Telford.

After opening its recycling plant in 2017, AO has now recycled five million appliances through its Collect & Recycle service, where both customers and the public can book to have their appliances taken away to be responsibly disposed of.

ESPO’s chief officer, Kristian Smith, said: “This is another fantastic partnership that broadens our range, aligning with a well known brand who are as dedicated to exceptional customer service as we are at ESPO.”

Anthony Sant, MD of AO Business, said: “We’re thrilled to become an approved supplier of ESPO and we hope to deliver market leading appliance supply and installation to its members. With over 20 years’ experience as an electricals retailer and strong relationships with global manufacturers, AO Business is able to offer customers of ESPO a unique and competitive proposition.”

::

Oldham consumer goods group, Ultimate Products, has installed solar panels on the roof of Manor Mill, its Grade II-listed head office building.

The move is in line with its desire to improve the sustainability of its operations, achieve its net zero targets and mitigate the effects of surging global energy prices.

In total, 1,150 panels have been installed, covering approximately 85% of Manor Mill’s roof. It is anticipated that the panels will start generating energy later this month and, once at full capacity, are expected to produce 40% of Manor Mill’s energy requirements. As a result, the expected payback period for the solar panels is approximately three years.

Ultimate Products will also assess the feasibility of installing solar panels on the roof of Heron Mill, the group’s 240,000 sq ft warehousing facility, which is also located in Oldham.

Jill Easterbrook, non-executive director and chair of Ultimate Products’ ESG committee, said: “Manor Mill’s new solar panels are a prime example of Ultimate Products’ constant search for ways to reduce its impact on the environment. We are confident that they will also prove to be a great investment, helping us to save money on energy bills.

“While we are pleased with the progress of our environmental initiatives so far, we know there is a lot more for us to do in this area, and we look forward to setting out a more comprehensive ESG strategy later this year.”