Durham news
Better PROSPECTs ahead for region ’ s innovative SMEs
RECORD BREAKERS
Businesses in the Wear region exploring manufacturing innovations are to get support from the UK European Regional Development Fund ( ERDF ).
The newly-launched PROSPECT funding programme , based in County Durham , is aimed at helping small and medium-sized enterprises ( SMEs ) in the North-East across a wide range of sectors and will be run by CPI – an independent technology innovation centre and founding member of the UK government ’ s High Value Manufacturing Catapult .
The PROSPECT programme will offer local SMEs product and process development support to fast-track the often lengthy and underfunded journey of introducing new , innovative products to market .
FUND ' S £ 1m INVESTMENT
The Finance Durham Fund has invested over £ 1m in five businesses to help them grow in or move to County Durham over the last 12 months .
Established by Durham County Council in 2017 , Finance Durham is a £ 20m investment fund overseen by Business Durham and managed by Maven Capital Partners to help businesses accelerate growth in the county .
The fund provides debt and equity money to support businesses of all sizes from a variety of sectors , and is aimed at companies looking to scale up , create jobs and add economic prosperity in County Durham .
Funding ranges from £ 150,000 to £ 2m and can be tailored to meet the needs of businesses at most stages of the business growth cycle .
Looking good – Esh Group ’ s chief executive Andy Radcliffe says the business is in a position of “ considerable financial strength ”.
Esh Group starts 2021 on a high with strong order book
County Durham construction
company Esh Group has started the year with a bulging order book worth more than £ 300m , despite a year of restructuring .
The Bowburn-based company made a strategic decision to focus on its core geographic area – the North-East and Yorkshire – which meant withdrawing from operating in Scotland and the North-West .
That decision meant parting company with its plant hire business Mechplant North- East , as well as closing down its Scottish and North-West operations .
But the moves appear to have paid off with the company starting 2021 with a record order book .
The civil engineering and construction group has reorganised its work into three divisions – civil engineering ; living , build and facilities ; and private housing .
The three-year reorganisation programme involved restructuring costs of £ 165,000 and led to a pre-tax loss of £ 2.9m , but the firm posted a 13.4 per cent increase in turnover in 2019 , from £ 186.5m to £ 212.6m .
The overall loss for the year as a result of
BUSINESS PARK PLANS
Plans to create a major business park with the potential to create thousands of new jobs and boost County Durham ’ s economy by £ 400m have been approved .
Durham County Council ’ s planning committee voted in favour of developing the site at Aykley Heads but , given the significant scale of the scheme , the local authority is required to refer the application to the Secretary of State for Housing , Communities and Local Government .
The first phase of Aykley Heads Business Park – which is expected to start soon – will the reorganisation was £ 2.4m – although its continuing operations turned a profit of £ 288,000 .
Operating profit from continuing operations also rose from £ 500,000 to £ 800,000 .
Esh Group ’ s chief executive Andy Radcliffe said : “ Following the reorganisation , our business is in a position of considerable financial strength . Our liquidity remains very strong with a 2019 balance sheet standing at £ 33m , of which £ 15m is cash .
“ We now have a business that is leaner , more customer and market-focused , and which is aligned to resilient and robust sectors of the market .
“ We start 2021 in our strongest position in years , with a healthy pipeline of work made up of high-quality contracts for private and public sector clients , and importantly , the financial firepower to deliver our new growth strategy .
“ Our £ 300m order book comprises sectors that appear to be resilient , and in some cases stimulated by the impact of the pandemic – as a result , we expect to deliver a healthy level of profitability throughout 2021 .”
see the creation of 3,500 square metres of flexible office space within a three-storey building and 60 car parking spaces to the north of the site .
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