Small businesses optimistic about growth as they tackle productivity and upskilling challenges

·         Albion Ventures’ third Albion Growth Report shows that 61% of SMEs predict growth over the next years

·         SMEs focused on boosting productivity, tapping into new markets but are struggling to find skilled staff

·         Reliance on bank funding plummets from 76% in 2013 to 49%

·         Concerns on skilled staff shortages soar

A new report1 launched by Albion Ventures, one of the largest independent venture capital investors in the UK, reveals that 61% of small to medium-sized firms plan to grow ‘dramatically’ or ‘moderately’ in the next two years. Only 4% think they will shrink or wind down. 

The third Albion Growth Report is designed to shed light on the factors that both create and impede growth among over 1,000 SMEs. On a regional basis, SMEs in Yorkshire and the South East are the most confident about the future, with 66% anticipating growth over the next two years, closely followed by those in the North East (65%) and London (64%).  East Anglian businesses remain the least optimistic with 55% anticipating growth, but much higher than last year when only 39% thought they would expand. 

On a sector basis, transport and distribution businesses report the highest levels of confidence with 79% of them expecting growth.

SMEs concerned move to shortages in skilled staff

With two-fifths (39%) of small firms looking to increase their headcount over the following year compared to just 8% who plan to cut jobs, finding skilled staff is now the second biggest challenge they face, up from fifth place in 2014, pointing to an increasingly competitive war for talent over the years ahead.  Those sectors most concerned about skilled staff shortages, including manufacturing, medical and health services are paradoxically among those which are most confident about their growth prospects. 

Small business owners are also increasingly concerned about their shortcomings in management expertise, which has risen up their list of growth barriers from 11th to sixth place.

SMEs tackle productivity and training

The report shows that 62% of firms have taken steps to improve productivity in the past year – rising to 86% among medium sized firms.  To achieve this, firms are focused on upskilling their staff and investing in new technology and processes.  Half (50%) expect to increase productivity over the next 12 months and over a third (36%) expect levels to stagnate, underlining the size and complexity of this particular challenge. 

When asked how the Government can help SMEs to increase productivity, 42% said that investment in fixed line broadband would deliver the biggest benefits, followed by roads (31%) and affordable housing (25%).

More SMEs secure finance

The proportion of companies that have secured finance to develop their businesses has soared to 44% this year, up from 26% in 2013 and 27% in 2014.  Bank loans and overdrafts as a source of external finance have continued to fall in popularity, down to 49% this year from 76% in 2013.  However, the popularity of using third party equity or other long term finance has soared from 6% in 2013 to 34% in 2015 and a third of firms would consider raising external equity finance.  Those sectors most willing to seek equity finance are manufacturing (43%) followed by IT/Telecoms (40%) while the construction industry has the lowest likelihood (19%).

Spotlight on young ‘millennial’ entrepreneurs

A key finding from this year’s report is how companies run by younger entrepreneurs aged under 35 are more confident about their business’s growth prospects than older age groups.  They are also twice as likely to try raising finance compared to more experienced business owners but are more prone to fail to in their attempts.  Millennial entrepreneurs admit to suffering from more skills shortages than their older counterparts and are also more willing to exchange equity for hands-on support (17% versus 7% of 45 – 54 year olds). 

Yet the report reveals under-35s emerge as more cautious about the EU Referendum and are more inclined to put their expansion plans on hold until there is clarity here. Under-35s are more than twice as likely to hire directly from colleges (14%) compared to those between 45-54 years old (6%). 

Patrick Reeve, Managing Partner at Albion Ventures, said: “This year’s report is particularly encouraging as it shows that many of the current barriers to growth are problems of success rather than failure.  Concerns about access to finance have given way to shortages of skilled staff and insufficient management expertise.  While red tape remains as ever the biggest concern, what has emerged very clearly is a trend towards long term financing horizons and the growth of the equity culture.”

PCI TO SHARE INNOVATIVE “FLEXLINE” SERIALIZATION TECHNOLOGY AT PHARMA EXPO EVENT IN LAS VEGAS

Leading packager to unveil flexible technology for meeting Serialization requirements

Philadelphia, PA – September 8, 2015 – Leading pharmaceutical contract packager PCI is pleased to announce it will share its “FlexLine” Serialization technology at the upcoming Pharma Expo event, being held in conjunction with the PMMI PackExpo Las Vegas event on September 28-30.  PCI has invested in Serialization technology capacity expansions for its facilities across North America and Europe to meet customer demand in advance of pending requirements in both regions, as well as requirements in emerging markets around the world.  PCI’s FlexLine offers an innovative stand-alone Serialization service for clients, complimenting integrated Serialization technologies that the company offers.

“Having a multitude of options for product Serialization is a real benefit for our clients” states Ian Parsonage, Director of Global Serialization at PCI. “Through the Antares technology we have implemented in our operations, we provide our customers high speed integrated solutions for high volume outputs, and then at the same time also offer the stand-alone FlexLine solution for more modest volumes and select patient populations.  We are clearly seeing a trend towards smaller batch sizes and specialized medicines for targeted disease states.  Likewise we support many global medicines destined for developing and emerging markets. This FlexLine is an excellent solution for smaller run sizes, quick changeover, and a very efficient operation with minimal client investment.  We have custom built these lines with considerable thought for ease of use and maximum flexibility.  We like to say they can accommodate a product as small as a matchbox, all the way up to the size of a shoebox.  The FlexLine also offers a convenient solution for clients looking to meet the DQSA requirements for their packaged products, but lacking that Serialization finishing operation to add the final codes.  We can accept finish goods, apply Serialized codes to make the product compliant to the requirements, and repack for a market ready solution for the customer.  We have seen tremendous interest in this service.”

PCI’s FlexLine employs custom Antares technology, featuring application and inspection of Serialized codes, product commissioning, and full multi-level product aggregation in establishing parent-child relationships for saleable unit, intermediate packaging, shipper, and pallet.  Consistent with PCI’s other Serialization equipment, FlexLines are integrated into PCI’s global data systems, for direct connectivity to customer systems enabling secure inbound and outbound data exchange.  FlexLine technologies are qualified and available at PCI’s sites across North America and Europe.

PCI, along with Xyntek, Antares, and Healthcare Packaging magazine, is hosting a Serialization Forum at the Philadelphia Hotel Palomar on September 10th.  For more information about the program agenda and to register online, please visit www.pciservices.com/events/us-2015-serialization-forum-september-10-2015

About PCI

The global healthcare industry trusts PCI for the drug development solutions that increase their products’ speed to market and opportunities for commercial success. Only PCI brings the proven experience that comes with more than 50 successful product launches a year and over four decades in the healthcare business. Leading technology and continued investment enables us to address global development needs throughout the product life cycle — from Phase I clinical trials through commercialization and ongoing supply. Our clients view us as an extension of their business and a collaborative partner, with the shared goal of improving patients’ lives.  For more information please visit www.pciservices.com or follow us on Twitter at @PCI_Social.

Whitbread results reflect increased consumer confidence

·         Results were marginally positive for the travel and leisure group

·         Whitbread expects to meet full year expectations

As Whitbread reports a second quarter trading update, Ian Forrest, investment research analyst at The Share Centre, explains what it means for investors.

“Travel and leisure group Whitbread delivered a good second quarter trading update this morning. Total sales grew by 11% in the 11 weeks to August 13th when compared to the same period last year. Whitbread also revealed that it is on track to deliver full year expectations as well as its ambitious growth milestones. Those interested in more from the group will note that its interim results are due out on October 20th.

“Many large UK employers are currently facing the challenges of mitigating the costs of the recently announced higher living wage. Whitbread announced today that it is developing plans to achieve productivity improvements, efficiency savings and selective price increases.

“For investors, we are continuing to recommend Whitbread as a ‘hold’. This is due to its good growth, future prospects and the overall attractiveness of the business model. Much of this is already largely reflected in the shares, which means they are not as good value as other companies in the sector. Our preferred travel and leisure stock for investors is Restaurant Group.”