In Brief: BDO; ABP; EYG
THE changing regulatory landscape coupled with the arrival of new disruptive technologies and challenger banks made the financial services sector the most activate in terms of deals in 2014.
According to the latest PCPI/PEPI Index from BDO Corporate Finance, which tracks the multiples paid by trade and private equity buyers when purchasing a UK private company, found that out of the total 4,936 UK deals completed last year, 27% (1,319) involved financial services companies.
This was against a background of buoyant M&A volumes. The last quarter of 2014 ended with the largest M&A deal volume since 2011. The uptick is an indication that uncertainty around the looming General Election is not curbing M&A activity.
The final quarter of 2014 saw 462 trade deals, which is a 14% increase on the previous quarter. However private equity acquisitions were down from a sky-high 107 to 97. Prices have moved up strongly, this is reflected in trade (from 10.00x to 11.7x) and private equity (from 8.0x to 9.5x) multiples going up. This reflects a shortage of quality businesses up for sale against improving demand.
Roger Buckley, partner at BDO, said: “Last quarter concludes a solid year of trading for companies, which maybe the first for many since the global financial crisis. We are seeing corporates and private equity firms remaining keen to acquire in the lead up to the impending General Election, despite the uncertainty that this represents. The increased volume of deals coupled with the improved multiples show that there is dry powder and willingness to spend cash reserves on good businesses.
“We expect that technology and regulation will continue to act as the major drivers of deal activity, particularly in the financial services sector, where increased regulation from Brussels is forcing industry consolidation.”
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ASSOCIATED BRITISH PORTS (ABP) in Hull hosted the latest Humber-wide business and industry review to explore employer needs for transferable and employability skills for current and future workforce.
Chaired by Kate van der Sluis of Emmerson Kitney, those in attendance included Siemens, AAK, Cranswick, Willerby Holiday Homes, Tunstall, University of Hull, and representatives from the Humber LEP and National Probation Service.
The discussion ranged from addressing the skills gaps and latest labour market report, improving early careers links with regional schools, the development of the Humber University Technical Colleges and Employability passports.
Jane Spencer, head of HR for ABP Humber is a new member of the forum. She said: “This is a great opportunity for me to represent the Humber ports of Hull, Goole, Immingham and Grimsby, working alongside like-minded members of the business community to work collaboratively in addressing immediate and emerging skills shortages.”
The forum also discussed the latest development of University Technical Colleges in the Humber, seen as a positive move to addresses some immediate and emerging skills shortages in engineering and renewables sector.
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THE commercial division of East Yorkshire home improvement firm EYG has won a £1.3m contract to manufacture and install windows and doors for a large-scale London residential development.
Quadrant Construction Services – the construction arm of the L&Q group – is building 368 homes at Quebec Way in the London Borough of Southwark.
Hull-based EYG Commercial has been contracted to design, manufacture, and install windows, balcony door screens and commercial entrance doors for the first of a three-phase development.
EYG’s managing director Nick Ward said the contract was a major coup for EYG Commercial.
He said: “This is a fantastic boost for EYG, and demonstrates our capacity for delivering on large-scale national construction projects.”
