News: MBO at long established family firm in Rotherham

Peter Lilleker, managing director of Rotherham-based Lilleson Engineering Services Ltd, together with his wife and business partner, Carol Lilleker, have sold the company to long-serving employee Tony Wade and his partner, Julie Mitchell.

Based on the Barbot Hall Industrial Estate, the family run business was established in 1984 by Peter's father, Ernest Lilleker, as a manufacturer of electrical control panels and systems.

The company has supplied control panels and systems all over the world, from hydroelectric plants in India to the roof of the centre court at Wimbledon, through its many clients including Fairfield Control Systems Ltd, SCX Special Projects, BOC, British Steel, Bae Systems and Kvaerner.

Tony Wade, who has been with the company from the start, has bought the entire issued share capital together with Julie Mitchell for an undisclosed sum.

To ensure a smooth handover, Peter and Carol will remain in a consultancy role with the company for up to 12 months before retiring.

Neil Large, corporate partner in the Sheffield office of Lupton Fawcett LLP provided legal advice and assistance to Peter and Carol Lilleker on the deal.

Alex Ross at Sheffield-based Bell Buxton Solicitors advised the Management Buy Out (MBO) team. Paul Dawson and Martin McDonagh, partners at Sheffield accountants Hart Shaw LLP provided tax and accounting advice to both parties.

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Peter Lilleker (pictured, third right), said: "It is difficult to believe that we started the business 34 years ago. Although my father is no longer with us I am sure he would have been proud of the success we have achieved over those years. Since Carol joined me in 1994, we have gone from strength to strength.

"Having started something from scratch it can be quite difficult handing over the reins to someone else. However in selling the company to Tony I know it is in very safe hands. He has been with us since the business started and it wouldn't be where it is today without his expertise and dedication over the years. I am confident the company will continue to go from strength under his and Julie's direction."

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Tony is certainly looking forward to the new challenge. He added: "This is a great company, hence why I have remained here for so long. It is a new chapter in our lives and presents Julie and me with a great opportunity.

"Julie and myself are looking forward to working closely with Peter and Carol over the next 12 months as we learn about different aspects of running the company."

Neil Large of Lupton Fawcett (pictured, right), said: "It is not often you get an MBO when both side have people have worked together for so long. If there was ever a case for an MBO exit (rather than trade sale) then this was it. It is great that Peter and Carol can transfer the ownership of Lilleson Engineering Services Ltd to people they trust implicitly to continue to grow the business.

"It was an absolute pleasure to act for Peter and Carol on their exit and I am sure the business will go from strength to strength under the new ownership of Tony and Julie where it is in safe hands."

Lilleson Engineering website

Images: Lupton Fawcett

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News: Sheffield City Region Breakfast Club moves to the AMP

Hart Shaw Chartered Accountants and Reynolds Trade Credit are taking their Sheffield City Region Breakfast Club to the next level by moving to a new venue.

The Advanced Manufacturing Park (AMP) in Rotherham will now be hosting the monthly networking group, with the first event taking place at the new venue on Tuesday September 9.

The breakfast club was set up in October 2013 by Brendan Hall of Hart Shaw and Paul Stewart of Reynolds Trade Credit with a view to supporting and promoting the Sheffield city region and presents a different discussion topic each month from group members. The event has enjoyed rapid growth since inception, with the latest event attracting around 60 people from local businesses and professional service firms.

Brendan Hall, marketing co-ordinator at Hart Shaw, said: "Due to the excellent support we have had from our members we felt the need to move to a larger venue and will be taking up residence at the Advanced Manufacturing Park from September. The AMP ticks all the boxes for us and keeps us right in the heart of the city region."

Paul Stewart, business development manager at Reynolds Trade Credit, added: "The new venue of the AMP gives us the platform to expand and welcome more people from the Sheffield City Region to our Breakfast Club, thank you all for your support."

The September meeting welcomes a new guest speaker in Matthew Chenery, relationship director – Corporate Bank at Barclays who will be discussing access to finance.

Matthew will be covering the role of bank funding for SME businesses in 2014, what has changed over recent years, and how businesses can ensure their bank relationship delivers maximum value. There will also be information about an increasing array of other non-bank sources of funding available to SMEs.

The breakfast club is free to attend and runs between at 8:00am and 9:15am. It is aimed at Directors and Managers of local SMEs and professionals who manage a similar client base.

Hart Shaw website

Images: Hart Shaw

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News: Hart Shaw reports on increased optimism

Hart Shaw Chartered Accountants & Business Advisers has reported that many companies are now looking to invest in long term strategic plans.

The Sheffield Business Park firm is working with a number of businesses that are making significant investments in long term projects through the Sheffield City Region Local Enterprise Partnership (LEP) and the Regional Growth Fund.

In July the LEP was conditionally awarded £7m from the Government fund to support modern manufacturing and technology companies to create jobs as a follow up to the successful £25m bid secured in round three of the fund.

The "Unlocking Business Investment" programme provides grants of between £25,000 and £2m to support companies using their own funding to make direct business investments that ultimately lead to creating sustainable, private sector jobs. Business investments include capital projects which involve investment in equipment, machinery and tools; alterations to land and/or premises to meet the needs of the business. Grants can also be used to support new research and development.

Calls for projects closed in November and the latest round of the programme included a new sub-programme with £2.5m set aside to support smaller businesses.

Steve Bell, head of corporate finance at Hart Shaw, said: "Whether this investment is through additional resources, new product development or infrastructure it is clear that what sets these businesses aside is each has clear Sustainable Competitive Advantages in their own markets. Whether these advantages are based on service levels, quality of products or technical ability, it is businesses like these who will reap the benefits of growth in the economy."

Despite the increased optimism, Steve warns that banks are still highly cautious when it comes to credit and that "Zombie companies", those barely surviving, will find that working capital restrictions will force them over the edge.

Steve added: "The final quarter of 2013 has seen an improvement in the level of optimism in the economy but this improvement does bring its own challenges. It will be interesting to see whether the continued optimism does start to deliver strong growth. It will also be interesting to see if the major banks can finally get their houses in order and support the experienced relationship managers who work with their clients."

Hart Shaw website
Sheffield City Region LEP website

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News: Hart Shaw and Atkin Macredie & Co merge

Hart Shaw and Atkin Macredie & Co, two of the region's leading accountancy firms, have merged.

The merger means the Atkin Macredie & Co team will join Hart Shaw at their offices on the Sheffield Business Park.

Both firms can trace their history back to the late 1800's with Hart Moss Copley & Co in Rotherham merging with Shaw Dunk Styring in Sheffield to become Hart Shaw in 1991, and Macredie & Evans Parker & Co merging with Atkin & Co in Sheffield to become Atkin Macredie & Co in 1975.

Paul Dawson, senior partner at Hart Shaw (pictured signing the contract), said: "The merger is fantastic news for both as it allows two already strong firms in the region to grow to the next level.

"As a firm, Hart Shaw has always sought to invest in staff and resources and the merger allows us to accelerate future investment plans for the benefit of all of our clients.

"Bringing both firms under one roof will ensure all clients receive the partner-led service which we pride ourselves on, whilst providing an opportunity for the Atkin Macredie & Co clients to take advantage of the full range of specialist services offered by Hart Shaw."

The merger sees Sarah Brock join as a partner, adding to the already six strong partner team at Hart Shaw, with Nigel Oates and Paul Boden joining Hart Shaw as consultants.

Sarah Brock, partner at Hart Shaw (pictured signing the contract), said: "It is the right time for us to merge with Hart Shaw. With my fellow Directors at Atkin Macredie & Co coming up to retirement this move provides our client base with security and continuation, as they will still be working with the same people, just under a different banner.

"We have a great fit with Hart Shaw in terms of the type of clients that we service so as far as our clients are concerned it will be business as usual for them. Our clients will benefit from the complete range of services on offer from Hart Shaw. We are bringing our workforce over to Hart Shaw’s offices, which is really set up for additional growth in the future.

"I have been a Partner at Atkin Macredie & Co since 1992 and specialise in working with owner managed businesses of varying sizes across the market sectors. I have the experience which Hart Shaw is looking for so the transition will be smooth."

Hart Shaw is hosting its first Sheffield City Region business club event at the Aston Hotel in Rotherham on October 9. The event, with Reynolds Trade Credit, will focus on Retention of Title clauses.

Hart Shaw website

Images: Hart Shaw

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News: Rotherham firms see inside the Patent Box

Enterprising Rotherham firms have been taking advice on how they can develop innovative new products and save on their tax bills at the same time.

A recent seminar at RiDO's Moorgate Crofts Business Centre focused on The Patent Box - the Government's new regime of tax relief on company profits from patented products, which is set to be introduced in April 2013. Companies that choose to develop products with a patent will be eligible for tax relief of up to 60 per cent in the tax year 2013-2014, increasing up to 100% relief in four years' time.

The seminar was a collaboration between Atkinson & Co patent attorneys, based in Rotherham, Hart Shaw Chartered Accountants of Sheffield, RiDO's ERDF-funded Growth and Prosperity in Rotherham (Soft Landing Zone) and UKTI (UK Trade & Investment).

Steve Vickers, Tax Partner at Hart Shaw Chartered Accountants and Business Advisers, explained how HMRC is introducing a reduced level of corporation tax – down to 10% – on profits attributed to patents and other types of intellectual property. As the Patent Box applies to worldwide income from existing and new patents, it opens up the opportunity for local businesses to export into overseas markets.

Steve discussed how SME companies can take advantage of this new tax relief on patents. This includes navigating the complexities of the Patent Box and how to calculate the tax saving.

Steve Vickers said: "The Patent Box is a great incentive for businesses to invest in developing patents on a national and international basis, whilst recouping the corporation tax benefits. It is good news for businesses locally looking to work on more of an international level."

Ralph Atkinson, European Patent Attorney at Atkinson & Company Patent in Rotherham, explained the legal considerations regarding patents and how it will have positive commercial implications.

Ralph Atkinson said: "It is a great time to take advantage of the Patent Box, but essential for companies to make sure they have the proper legal protection in place from the outset, when targeting both domestic and international markets."

Amanda Parris, Business Development Manager for RiDO, added: "This was a very well attended seminar and was a chance for delegates to ask questions directly of experts in their field. There are some really exciting opportunities for companies within our local area to take advantage of the Patent Box, both in the UK and overseas and there is all the support available to help them do this."

Nathasha Leach, International Trade Adviser at UKTI, discussed the support for companies that are looking to export, which is available through UKTI. Martyn Benson, the business co-ordinator from RiDO, explained how the Growth and Prosperity in Rotherham – Soft Landing Zone – works, offering support to Rotherham companies with accessing international markets and helping foreign inward investors who choose to locate to RiDO's business centres.

RiDO website
Hart Shaw website
Atkinson & Co. website

Images: RiDO

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News: South Yorkshire firms team up to seal M25 deal

Oxley & Coward Solicitors LLP of Rotherham and Hart Shaw Corporate Finance of Sheffield recently assisted G.G.S. Compressors Limited, trading as G.G.H. Hire, on the acquisition of Hire Mate Limited for an undisclosed sum.

Both Hire Mate and GGH supply plant and equipment to the construction and utility sectors with the combined turnover being over £4.2m.

Rebecca Stopford, Commercial Partner at Oxley & Coward Solicitors LLP, said: "Whilst the initial negotiations were agreed on a handshake it was essential that the legal process provided protection and an acceptable structure for future trading between the parties.


"We were delighted to prepare the required legal documents fulfilling the brief of being succinct, commercial and expedient.

"As with many deals now, the use of email can circumvent any geographical issues and speedy delivery of documents. Alike with Hart Shaw we have many clients from the south of England and London who recognise that quality, efficient services at a reasonable cost can be obtained here in South Yorkshire and particularly from our two firms."

Steve Bell, Corporate Finance Associate at Hart Shaw added: "Whilst G.G.H. is based within the M25 we have provided ongoing strategic support to assist the Directors with their long term growth plans.

"It was essential that the legal process reflected the amicable nature of the initial agreement and it was clear that Rebecca and the team at Oxley and Coward delivered practical, professional advice within this spirit."

Oxley & Coward website
Hart Shaw website

Images: Hart Shaw

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