Zytronic considering sale, closure and other options after sales fail to recover
A leading North East technology firm has effectively put itself up for sale and is considering closure after saying efforts to recover from the Covid pandemic have not been successful. Zytronic, which specialises in touch-screen technology from its base at Blaydon, is implementing a strategic review after saying that efforts to turn around the business in recent years “have not delivered meaningful results”. The company has issued a trading update in which it said sales in the last year fell from £8.6m to £7.2m. It said that it “does not anticipate a material recovery in volumes over the short to medium term” and has launched a review of its operations after concluding that efforts to get back to pre-Covid trading haven’t worked. Zytronic is exploring a number of options that include a new business plan that aims to increase market share in key sectors, the potential sale of the company, and what it calls “an orderly solvent liquidation of the company’s assets”. It is also likely to reduce the size of its manufacturing operations. Having been listed on the AIM stock market since 2000, the company is also considering de-listing and continuing as a private company, partly to reduce the costs of being a listed firm. The company said that its transformation plan would focus on expansion of certain technologies, establishing a collaborative design and sales process, and reducing its manufacturing footprint. It said: “The company has witnessed a sustained lack of recovery in business performance to its pre-Covid operating level and management’s efforts to battle against a difficult macroeconomic environment have not delivered meaningful results. After observing disappointing volumes in FY24, the board has come to the opinion that it is unlikely that a significant improvement will be forthcoming without a strategic catalyst.” Zytronic’s revenues have fallen significantly since 2019, when they stood at just over £20m. A small improvement in turnover in 2022 has not been sustained, with two further falls since then. In last year’s accounts, which were published in February and showed a loss of £2m, then chair Chris Potts outlined how one of its main customers going into bankruptcy had hit orders, and said that the “lack of sustained recovery is linked to the continuing impact of international events on the business.”
IT provider Bytes' shares tumble despite NHS and HMRC contract wins
Bytes Technology Group, the IT provider, has reported a surge in income and operating profit as both new and existing clients ramp up their software investments. For the six-month period ending 31 August, Bytes revealed that its gross invoiced income soared by 13.7% to £1.2bn, with the increase largely attributed to software sales and significant public sector contracts, including those with the NHS and HMRC, as reported by City AM. Despite this positive performance, the company's shares fell by approximately 6% following an announcement that hardware sales had not fared as well, leading to a 2.9% decline in revenue from £108.7m to £105.5m. Nevertheless, Bytes saw its operating profit climb by 16.3% to £35.6m, up from the previous £30.6m, while gross profit also rose by 9% to £82.1m. Sam Mudd, the Chief Executive of Bytes, commented: "I am pleased to report another set of positive results for [Bytes Technology Group], with a strong increase in operating profit, driven by continued demand for our broad range of software, solutions and services." "Despite the challenging economic climate and political uncertainty over the past six months, we have increased our share of wallet amongst our existing customers as they continued to invest in their IT needs. We have also expanded our client base in both the public and corporate sectors," she further stated. In addition to these robust financials, Bytes has announced an increase in its interim dividend to 3.1p per share, marking a 14.8% rise from the previous year's 2.7p. This follows a 16% hike in the company's final dividend declared in May. The firm is confident that it's well positioned to leverage heavy demand across its key markets, which include cloud computing, cybersecurity, and AI, through the financial year 2025. Mudd added: "Our strong relationships with Microsoft and other top tier vendors allow us to seize exciting opportunities in cloud adoption, workload migrations, storage, security, and virtualisation technologies. Meanwhile, we continue to collaborate with our customers to enable their teams to roll-out the use of emerging AI technology, such as Copilot." "With sustained demand in all these areas, and our expanding technical capabilities, these will be our key focus areas in the remainder of FY25 and beyond," she detailed. This comes in the wake of a misconduct scandal surrounding Bytes's former long-standing leader, Neil Murphy. Murphy declared his resignation in February after it was revealed he did not declare several trades made in the company's shares.
Manchester leaders join forces as Ladbible and Onthebeach founders back Fearless Adventures
Ladbible Group's CEO Solly Solomou and Onthebeach founder Simon Cooper have thrown their support behind the venture capital firm Fearless Adventures. Wilmslow-based Fearless Adventures, which is steered by Dominic McGregor, the former business associate of Dragons' Den personality Steven Bartlett, has welcomed investment from Mr Solomou through his London-based family office, Solo. Mr Cooper is set to take on the role of chairman, as reported by City AM. The latest seven-figure investment in Fearless, established by Mr McGregor alongside David Newns and Charlie Yates in 2021, follows an earlier boost from Musicmagpie's Steve Oliver. Tech luminaries such as Simba Sleep's James Cox and entrepreneur Alex Packham have also previously backed the venture. Fearless Adventures boasts a diverse portfolio including Pets Purest, Shipster and Swim Society, and has recently initiated a £5m fund aimed at investing in up to 12 businesses over the next 18 months, with a focus on e-commerce and technology sectors Mr McGregor expressed excitement about the new additions, stating: "We are thrilled to welcome Simon Cooper and Solly Solomou to the Fearless Adventures family. Their investment and involvement are strong endorsements of our vision and potential. "With their guidance, we are confident in our ability to drive growth, innovation, and success in our sector." Mr Cooper, who stepped down as CEO of Manchester-based Onthebeach in 2023, said: "I am excited to be part of Fearless Adventures and support its dynamic team. The company's innovative approach and commitment to excellence align perfectly with my values and experience. I look forward to contributing to its continued success and growth." Mr Solomou added: "Fearless Adventures is at the forefront of its industry, and I am delighted to be part of its journey. The team's passion and dedication are truly inspiring, and I believe we can achieve great things together."
Bolt could face £200m payout after tribunal rules drivers are workers, not contractors
Ride-hailing app Bolt has been defeated in a legal battle over the classification of its drivers as 'workers', a decision that could potentially cost the company £200m and pave the way for thousands to receive employment benefits. Around 10,000 current and former private hire drivers brought the Estonian firm before the Employment Tribunal, demanding minimum wage and employment benefits, as reported by City AM. Bolt, however, contested these claims, insisting that the drivers do not meet the criteria for 'workers' and their contract with them is for self-employed independent contractors. This marks the latest case concerning the status of gig-economy workers for Bolt following a Tribunal hearing in September. In today's hearing, the judge had to determine whether the drivers were 'workers' under the National Minimum Wage Act, and if so, during what periods under this Act. A judgement was delivered this morning, with the Tribunal ruling against Bolt's assertion that the represented drivers are self-employed contractors running their own businesses. The claimants' lawyers estimate that the compensation due to their clients could exceed £200m. The court ruled that the terms and conditions applied by Bolt to the drivers' relationship with the company, coupled with the control the firm exercises over the drivers' work, classify them as workers. As 'workers', the drivers will now be eligible for workers' rights and protection under employment law. A subsequent hearing is anticipated to occur as soon as next year, where the Employment Tribunal will determine the amount of compensation each driver should receive for unpaid holiday pay and lost income. While this ruling is in effect, Bolt may consider appealing the decision, a course of action yet to be determined. In a parallel case in 2021, the UK Supreme Court decreed that Uber drivers are workers, not self-employed contractors. A spokesperson for Bolt commented: "Drivers are at the heart of what we do, and we have always supported the overwhelming majority's choice to remain self-employed independent contractors, protecting their flexibility, personal control, and earning potential.."
Zoo Digital narrows losses as Hollywood recovers from damaging strikes
Subtitling and dubbing services firm Zoo Digital has hailed a rise in revenues and narrowed losses as it recovers from the impact of Hollywood strikes last year. The Sheffield-based firm says it cut operating losses from $10.9m (£8.5m) to $2.5m (£1.9m) in the six months to the end of September, as revenues in the same period increased 29% to $27.6m (£21.5m). Interim results published to the London Stock Exchange detail how Zoo has cut salary costs by $4.5m (£3.5m) and grown its freelancer network as part of a streamlining exercise in the face of the industry downturn. It said the measures put it on a strong footing to return to cashflow breakeven. Bosses said the entertainment industry recovery is expected to continue steadily, and throughout 2025 and that while the firm had traded in line with full year expectations throughout the first half of its 2025 year, the visibility of fourth quarter orders was "limited". During the period Zoo launched an Italian operation in Milan and said it now had Indian production centres up and running. Since the period end it has also secured additional debt finance, giving it $5.6m in total. Stuart Green, CEO of Zoo Digital, said: "These results demonstrate that Zoo is recovering well from the impact of the Hollywood strikes and aligning with our customers' evolving content strategies. Taking action to deliver efficiencies, including relocating some operations to India; embracing innovations such as artificial intelligence; and the pursuit of opportunities in new regions, have seen Zoo become a more agile and efficient business, ready for the next chapter of our growth story.
Fintech firm secures £1.35m prize at pitching competition
A fintech firm has secured a £1.35m investment following a pitch competition. Inicio AI has developed a tool called Budgie AI which aims to provide consumers with financial support and remove the need to speak to a human. It works with clients such as Northumbrian Water, credit agency TransUnion and IT services provider Wavenet. Called One to Win, the competition is backed by investors and key figures in the West Midlands' tech industry including Rigby Group, SCC, Haatch and the West Midlands Co-Investment Fund. Judges said the winning business needed to demonstrate game-changing innovation and convince them of its future growth prospects. The reward is believed to be the largest single prize for any pitch competition in the UK and Coventry-based Inicio AI was chosen ahead of 140 other applicants. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. The main prize was £1 million but the panel was so impressed with Inicio AI that a further £350,000 was awarded to the firm, with judges Yiannis Maos and Hephzi Pemberton backing it as angel investors. The pitching event took place as part of the annual Birmingham Tech Week and the judging panel included Steve Rigby, chief executive of Rigby Group which owns BIrmingham IT firm SCC, and Yiannis Maos, chief executive of Tech Week organiser TechWM. The two other finalists were Birmingham-based ChangeMaker3D, a 3D concrete printing company aiming to reduce carbon emissions and material costs, and Skyfarer, a Coventry startup focusing on revolutionising the use of drones, particularly for medical uses. Rachel Curtis, founder and chief executive of Inicio AI, said: "I am completely overwhelmed and blown away to be named the recipient of the One To Win prize. "The £1.35 million will truly change the game for us as a business. In fact, it's officially closed our funding round - something that I feel excited, relieved and so grateful to announce. "This funding will allow us to accelerate our growth plans and bring our solution to so many people who need it that much more quickly. "To receive this backing, after the hard graft of the last three years, makes me feel immensely proud and I can't thank the judges enough for believing in us." The winner was announced at a black tie dinner and awards evening held at the ICC in Birmingham to mark the end of this year's tech week. Mr Maos added: "The One to Win competition is a testament to our ongoing efforts to nurture, support and promote the thriving tech ecosystem in the West Midlands. "We firmly believe that our region is a hidden gem in the global tech landscape and we've been working tirelessly to showcase its immense potential.
Maritime tech firm Succorfish moves into oil and gas sector
A North Tyneside tech firm which is tackling the global issue of lost fishing nets is expanding into the oil and gas sector. Succorfish ‘s main piece of kit is MyGearTag, an acoustic location device that uses modem technology to help fishing boats find lost nets, pots and traps over a range of up to three kilometres. Now the firm is moving into the global oil and gas sector after working with sealing provider Eastern Seals in Ashington, to adapt the device so it can be used hundreds of metres under water. MyGearTag’s casing, which is crafted from recycled fishing nets and weighs 500g, can now withstand the pressure levels found in the waters around the bases of oil and gas rigs, after being tested at Cramlington’s UKAS-accredited oil and gas testing facility IKM. Succorfish, which has a 20-strong in-house design, software engineering, development and customer service team, is now in discussions with a number of service providers in the oil and gas sector about the practical applications for the technology, which could include identifying where storage spaces on the seabed are based, monitoring for moving rig anchor lines and marking the location of lost equipment. Chad Hooper, founder and CEO at Succorfish, said: “While the commercial fishing industry was our primary consideration, we recognised that MyGearTag also has a wide range of potential uses in the oil and gas sector, and we’re now moving to see how we can take advantage of these opportunities. Monitoring equipment is obviously in use in deep offshore waters, but it is large, heavy and expensive, and there is nothing available that compares to MyGearTag in terms of its size, cost, low power use and effectiveness. “Making the most of the manufacturing and testing expertise available on our doorstep was an essential part of this adapted product’s development, with the input provided by Eastern Seals and IKM being essential to the process.” MyGearTag was developed in partnership with Newcastle University’s Faculty of Electrical and Electronic Engineering and the pan-European NETTAG+ project, with grant funding provided by UK Research & Innovation and the European Union. It is manufactured in the UK and assembled at Succorfish’s North Tyneside base, and was originally designed to help address the significant costs and environmental harm caused by lost ‘ghost’ fishing nets, which are estimated to cost fisheries businesses around the world around $2.6bn every year. MyGearTag recently went into full manufacturing production, with distribution and reseller agreements being finalised with a number of potential partners around the world.
Middlesbrough games studio Radical Forge creates jobs with £2.6m funding
A computer games firm founded by two Teesside University graduates seven years ago has landed £2.6m of investment that will lead to new jobs. Radical Forge, which already employs about 70 people in Middlesbrough, will create 15 roles following the injection from the Northern Powerhouse Investment Fund II, via Mercia Equity Finance. Its bosses say the move comes as the Boho Five-based firm is gearing up to take on new and larger contracts as it also prepares to launch its own game, the "weird farming meets silly physics" Southfield, early next year. Founders Bruce Slater and Freddie Babord set up Radical Forge in 2017 in an effort to take what they say was an alternative approach to building and running a studio. Since then, it has grown and contributed to games such as Sea of Thieves, Gang Beasts, Golf With Your Friends and Zombie Army 4. It also produces its own titles and has recently launched a publishing division. The murder mystery puzzler Bright Paw was its first launch in 2020 and won Best Puzzle Game at the NYX game awards. And Southfield is billed by Radical Forge as a "flip-flopping farming game allows players to combine chaotic crops with unpredictable effects, build their dream farmstead, and experiment with playful machinery". Bruce Slater, CEO, said: “Freddie and I are beyond happy to have secured this funding for Radical Forge. It will enable us to realise our ambitions for every team member and continue to build the studio while preserving the culture that is so important to us.” Radical Forge is the second Middlesbrough studio to receive funding from Mercia. SockMonkey Studios secured investment from the Northern Powerhouse Investment Fund in 2020 and was acquired by Canada’s largest games publisher, Behaviour Interactive, three years later. Chris McCourt of Mercia Ventures added: “Radical Forge are a talented team with a vibrant culture that has helped them attract and retain skilled developers. We believe the current environment holds real opportunities for the business. With many of the big players in the industry downsizing their teams, they have the chance to attract top talent, expand their skills base and win larger and more complex projects. The NPIF II funding will enable them to pursue their expansion strategy and provide a further boost for Middlesbrough’s growing games industry.”
Howard de Walden Estate invests £52m in new Healthtech hub at Harley Street
The Howard de Walden Estate has made a significant move in its healthcare innovation strategy with the announcement of a £52m investment into a new Healthtech hub at Hale House. In collaboration with Spacemade, the provider of flexible workspaces, the Estate expressed its intention to transform the Harley Street Health District into the premier international hub for health technology and innovation, as reported by City AM. The upcoming development at Portland Place will encompass three redesigned buildings, all tailored to accommodate health start-ups, investors, and venture capitalists. UCLPartners, a leading UK health innovation organisation, is set to be the anchor tenant at Hale House, taking up residence on the first floor of 76 Portland Place. Chris Laing, Chief Executive of UCLPartners, commented: "Our new base will help us connect the health technology and life science sectors with healthcare providers, patients, and the public, developing novel solutions that will define the healthcare of the future". The healthcare behemoth has reaffirmed its dedication to fostering innovation within the healthcare industry. The £52m investment by Walden is part of a wider plan to rejuvenate the reputation of Harley Street. This initiative signifies a turning point for the area, which has been synonymous with healthcare since the 1860s. It aims to integrate traditional healthcare services with the latest in tech-driven health sectors, creating a comprehensive hub that merges preventative services, clinical care, and Health Tech under one roof. Mark Kildea, the Chief Executive of Walden, has described the Hale House project as a "key step forward" in creating an integrated health district that aligns with the changing needs and trends within the sector. Hale House is set to be designed with collaboration at its core, featuring flexible spaces and various facilities. These spaces are projected to accommodate over 600 individuals and aim to meet high sustainability standards such as BREEAM Excellent. Richard North, the Head of Commercial Lettings at Walden, stated that this was part of "Howard de Walden's commitment to the highest standards in design, social impact and sustainability" through innovation. Jonny Rosenblatt, Co-founder of Spacemade, labelled it as "the UK's most collaborative HealthTech cluster". He expressed his belief that industry-specific spaces like this are crucial for connecting HealthTech minds and driving healthcare transformation in a rapidly evolving generation.
Devon digital firm snapped up by UK payments software company
A Devon-based digital firm has been acquired by a national software and payments company for an undisclosed sum. Kingsbridge-headquartered GOb2b, a business-to-business ecommerce specialist, has become part of London's ClearCourse following the deal. GOb2b provides its customers with software solutions to help manage high volumes of stock, pricing options and card payments. The firm works with businesses including tyre specialist Yokohama and consumer products group Viatek. GOb2b said the deal would allow it to access ClearCourse's networks and resources, while the London company will be able sell its payments solution to the Devon firm's customer base. Former chief executive Paul Dorey will remain involved with GOb2b on a consultancy basis, the company said. He said: “Both businesses have a strong, complementary product offering that offers exciting potential for integration. Our focus now is on making the most of these synergies to propel us on the next phase of our growth journey." FRP Corporate Finance advised GOb2b on the deal. The transaction was led by partner Simon Davies and director Richard Boyden, supported by senior manager Madhavi Morjaria. Mr Davies said: “GOb2b has built a robust customer base which has exciting growth potential, thanks to its ability to seamlessly onboard new customers while nurturing its existing relationships.
NHS software supplier Kainos reports drop in revenue amid tough trading environment
Kainos, the London-listed software provider and key supplier to the NHS, has reported a five per cent year-on-year drop in revenue for the first half of the year, totalling £183.1m. Despite the challenging trading environment and delays to public investment following the general election, the company saw an 11 per cent rise in pre-tax profit to £34.2m and a two per cent increase in adjusted diluted earnings per share to 22.5p, as reported by City AM. Following the announcement, Kainos' shares rose by over five per cent. CEO Russell Sloan commented on the tough market conditions, stating: "Our services businesses faced a tougher environment in the first half of the year in a generally soft market, and we remain cautious about our prospects for the remainder of the year," The company had previously warned in April of reduced demand from commercial clients and a slow recovery in healthcare sales after a peak during the Covid-19 pandemic. The post-election hiatus resulted in delayed project mobilisations and a 15 per cent fall in public sector revenue to £62.0m in the first half of the year. Kainos also noted that the sluggish economy continued to impact commercial sector revenue, with investment down 27 per cent year-on-year at £11.6m. Despite these challenges, Sloan remained optimistic about the company's future, saying that Kainos "continues to generate robust levels of profitability and looking to the medium term and beyond, we continue to see substantial growth opportunities across all our core markets." Kainos also reaffirmed its support for the NHS' digital transformation programme. Last month, Health Secretary Wes Streeting announced initiatives for digital patient records to make health data accessible across NHS hospitals, GPs, and ambulance services in England. He also initiated a significant consultation on the government's ambitions to modernise the NHS from "analogue to digital". "The new UK Government is determined to improve public services and healthcare provision, while delivering efficiencies and leveraging the potential of AI. Digital transformation will have a key part to play in achieving these goals," Sloan commented.
Virgin Media O2 divests further stake in Cornerstone Towers to Equitix for £186m amidst revenue dip
Virgin Media O2 has confirmed the divestment of a portion of its stake in Cornerstone, the mobile towers joint venture, to infrastructure investment firm Equitix for a sum of £186m. The transaction reduces the telecommunications company's holding to just above 25%, following the sale of an 8.33% share. This is part of a larger 16.66% interest in a parent entity that possesses half of Cornerstone, as reported by City AM. Equitix's Chief Investment Officer Achal Bhuwania described Cornerstone as "the UK's largest telecom tower portfolio" and a piece of "critical national infrastructure which is central to our mandate to invest in core infrastructure." This move is reflective of a broader pattern within the telecom sector where businesses are looking to reduce debt and generate capital for significant investment initiatives. Last year, Virgin Media O2 engaged in a comparable transaction, offloading a 16.67% stake in Cornerstone to GLIL Infrastructure, a firm supported by British pension funds, netting £360m. Lutz Schuler, CEO of Virgin Media O2, remarked that this additional divestiture "follows the same logic and strategic rationale as our previous deal, allowing us to successfully monetise our infrastructure while retaining a controlling share in an important asset". He further noted that the company's deployment of 5G and fibre networks is advancing rapidly, with investments totalling £1.5bn directed towards network enhancements this year alone. In the third quarter, the fibre network expansion extended to an extra 281,100 premises, marking a 44% increase from the previous year, while 5G now covers 68% of the UK population. However, the telecom company, jointly owned by Liberty Global and Spain's Telefonica, also disclosed today a 2.4 per cent decrease in third quarter revenue, now standing at £2.7bn, attributed to a drop in handset sales. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) also suffered, falling 4.1 per cent year-on-year to £1bn, a decline the company ascribed to increasing investments in key growth sectors.
Tech firm Kromek remains loss-making despite record revenues
North East technology company Kromek has reported record results but remains loss-making and has lined up new funding from one of its main shareholders. The County Durham firm makes radiation and bio-detection equipment and has made headlines for the use of its products at high profile diplomatic events, as well as on the battlefield in Ukraine. It has often been named as one of the country’s most innovative companies due to its high number of patents, but it has struggled to fully commercialise its technology and is yet to declare a profit since being founded as a spin-out from Durham University research in 2003. In new results for year ending April 30, Kromek said its revenue increased 12% to £19.4m and it achieved positive adjusted Ebitda of £3.1m. But it remained loss-making, though the loss before was more than halved from £7.3m last year to £3.5m. Its cash position worsened to stand at £500,000 but it also announced a new £4.9m loan from Polymer N2, an investment vehicle controlled by Dr Graeme Speirs, an existing shareholder who already provides finance to the firm. Kromek CEO Dr Arnab Basu said: "This has been a pivotal 12 months for Kromek where we recorded a third consecutive year of revenue growth and delivered on all our KPIs. We achieved record revenues, more than halved our losses and our positive adjusted Ebitda exceeded market expectations. “We have actively enhanced our operational efficiencies and seen excellent progress in both advanced imaging and CBRN detection where demand remains strong across both market segments. We expect to be broadly cash neutral in H1 and are comfortable that we have sufficient capital to deliver further growth in 2025. "Looking ahead, we anticipate demand for our CBRN products will continue to be driven by global geopolitical insecurity and the persistence of nuclear threats…Consequently, Kromek is well positioned to deliver future growth and value for shareholders." Kromek said it had seen significant progress in its medical imaging operations, including a $2.1m order in the US from an existing customer. It added that global insecurity continued to drive demand in its nuclear security products and in biological threat detection.
UK Competition Authority sets terms for Vodafone and Three's £15bn merger
The Competition and Markets Authority (CMA) has proposed a series of investments that could pave the way for the £15bn merger between Vodafone and Three to be finalised. The watchdog's suggestions include enhancing the merged entity's UK network, including 5G roll-out, and implementing short-term customer protections, as reported by City AM. This development follows the CMA's previous assertion in September that the planned merger could result in price hikes for millions of mobile users. The CMA also expressed concerns at the time that the deal, first announced last year, might lead to customers receiving reduced services, such as smaller data packages. The watchdog voiced "particular concerns" about the potential negative impact on customers least able to afford mobile services and those who may have to pay more for network quality improvements they do not value. However, the CMA has now issued a remedies working paper to gather opinions on its proposed package's effectiveness. The document provisionally concludes that a legally binding commitment from Vodafone and Three to carry out the suggested network integration and investment programme would "significantly improve the quality of the merged company's mobile network, boosting competition between mobile network operators in the long term and benefiting millions of people who rely on mobile services". The CMA also discovered that short term protections would be necessary to ensure that retail consumers and mobile virtual network operators "can continue to secure good deals during the initial years of network integration and investment roll-out." Stuart McIntosh, chair of the inquiry group leading the probe, stated: "We believe this deal has the potential to be pro-competitive for the UK mobile sector if our concerns are addressed." "Our provisional view is that binding commitments combined with short-term protections for consumers and wholesale providers would address our concerns while preserving the benefits of this merger." "A legally binding network commitment would boost competition in the longer term and the additional measures would protect consumers and wholesale customers while the network upgrades are being rolled out." A final decision is anticipated to be made before the 7 December deadline. In a joint statement, Vodafone and Three said: "The parties welcome the CMA's recognition that the significant improvements in network quality delivered by their joint network plan will, 'boost competition between mobile network operators in the long term and benefit millions of people who rely on mobile services'." "The merger is a once-in-a-generation opportunity to transform the UK's digital infrastructure which lags significantly behind its European peers and for more than 50 million UK customers to benefit from a vastly better mobile experience." "Vodafone and Three will need to study the working paper in detail. From what the CMA has communicated so far this morning, we believe it provides a path to final clearance." "An appropriate balance appears to have been struck by ensuring that the significant benefits of the merged company's investments can be realised in full and at pace to the benefit of the country and its citizens, while addressing the CMA's stated concerns." "However, it is essential that balance is preserved through to the end of the process, reflecting that the parties have offered extensive remedies, including by making their future network roll-out fully enforceable." "The merger will be a catalyst for positive change. It will bring significant benefits to businesses and consumers throughout the UK, and it will bring advanced 5G to every school and hospital across the country."
GB Group shares soar after interim trading results beat estimates
Shares of GB Group, the London-listed tech firm, soared 11 percent on Thursday morning following the announcement that its interim trading figures had surpassed expectations. The identity verification and location intelligence service provider reported first-half revenues of approximately £137m, a modest increase from the previous year's £132.4m and slightly above Peel Hunt analysts' projection of £135.5m, as reported by City AM. Adjusted operating profits showed a robust 21 percent uptick year-on-year, reaching £29m and topping analyst forecasts by two percent. On a constant currency basis, the combination of GB Groups two main sectors, identity and location, demonstrated a growth of 6.8 percent. Dev Dhiman, who stepped into the chief executive role earlier this year, had set forth four strategic priorities for the Chester-based company: simplifying operations; achieving global alignment; fostering a culture oriented towards performance; and speeding up the pace of innovation. "We have made encouraging progress in each of these areas," Dhiman said, "and this is translating into our performance with strong pipeline execution, ramp-up with a number of important customers, and some significant customer win-backs reinforcing our market leadership position in identity fraud and location software," he elaborated on the company's advancements.
The £130m Investment Fund Wales has made its second equity investment
The £130m Investment Fund for Wales(IFW)has made its second equity investment backing the growth plans of data analytics business Assured Insights. The IFW’s £50m equity element is funded managed by Foresight Group on behalf of the UK Government’s economic development the British Business Bank. As part of the investment Assured Insights is establishing a new office in Cardiff at Tramshed Tech, where it is establishing a data engineering hub. The value of the investment has not been disclosed, but also includes backing from the British Business Bank’s Midlands Engine Investment Fund, which has been fund managed by Foresight since 2018. Read More : Latest equity deals in Wales Read More : Plans for micro nuclear power plants in South Wales The Midlands Engine funding element is being deployed as Assured Insights, which is headquartered in Stockport, also has an office Nottingham. The tech company has developed DataWorks which supports its clients in consolidating siloed data from business systems into a single, trusted platform. Current customers include financial services companies and hospitality groups, including The Ivy Restaurant Group, Sucden Financial and Vernon Building Society. Jon Singleton, co-founder and chief executive of Assured Insights, said: “Assured Insights has discovered that most organisations find themselves in a position where their data capabilities don’t support their aspirations. There are many technologies and solutions which claim to help with this, however, these all rely on good quality data. “Achieving a state of data maturity which sees trusted data being available to the whole business is a big challenge for many companies. DataWorks addresses this and builds a solid data foundation needed to support any modern, data proficient business. “Foresight has a strong track record of working with fast-growing businesses as they scale up and professionalise. We are pleased to select Foresight as our equity partner as we look to accelerate our growth trajectory. Steve Galvin, of Foresight and IFW principal, said: “Assured Insights is a tremendously exciting, fast-growing business with a hugely ambitious management team. Its new Welsh office will have a positive impact on the local economy through the creation of skilled jobs. We are thrilled to be supporting Assured Insights and look forward to partnering with the team on their growth journey. “Businesses with multiple software systems are increasingly managing complex data sets and Assure Insights’ software is a step change in the market. By creating the data architecture and combining it with analytics and visualisation, the software provides an excellent end-to-end solution.” Mark Sterritt, director, nations and regions investment funds at the British Business Bank, said: “We are pleased to see the Investment Fund for Wales actively working for innovative businesses like Assured Insights, who are committed to expanding their operations in Wales, with the opening of their new Cardiff office.
Britishvolt administrators move to liquidate failed gigafactory firm
The company that tried to build an electric battery gigafactory in the North East and create thousands of jobs will be formally put out of business after its administrators signalled moves to liquidate the firm. It had been hoped that Britishvolt would create 3,000 direct jobs and another 5,000 in its supply chains after it outlined plans in 2020 for a massive factory on site of the former Blyth Power Station coal yards. But the company went into administration last year after failing to raise the funds needed to keep it going. Attempts by Australian firm Recharge Industries to take over the project also foundered after it was unable to pay the full £8.6m needed to take over the company. In the meantime, Northumberland County Council took back control of the site and has sold it to American investment giant Blackstone, which will invest up to £10bn into the site to create a campus of data centres through its subsidiary QTS. The new plan will create far fewer jobs - with hundreds of people expected to work in the data centres once they are operational - but the council has agreed a £110m payment that will be earmarked for job creation schemes in the county, particularly the area around the new Northumberland rail line. New documents have been published by administrators EY which confirm that Power by Britishvolt Limited is being moved to a creditors’ voluntary liquidation. Those documents reveal that the administrators have paid HMRC and former employees, and that there are sufficient funds to pay Britishvolt’s unsecured creditors. The termination of Britishvolt as a company brings to an end one of the more unusual business stories of recent years. Not long after Britishvolt announced it wanted to set up a gigafactory at Cambois, the project hit its first problem when its founding chairman had to step down over revelations about his past.
Durham tech firm Indigo Software snapped up by US firm in undisclosed deal
A Durham technology firm providing systems in warehouse management and logistics has been bought by a global software giant. Indigo Software, which was founded in 1980 and based in Belmont Business Park in Durham, has been bought by Aptean Inc, which operates across a range of sectors and geographies from its base in Georgia, America. Indigo Software provides warehouse management and supply chain software solutions designed for manufacturers, wholesalers, distributors, retailers and logistics companies. With industry expertise in the food and beverage, fashion, automotive and chemical sectors, its UK clients include Greene King, Puma, Regatta and Tommee Tippee. Aptean said the deal for the Durham firm would add new capabilities to its warehouse management and supply chain management services. The value of the deal has not been disclosed. Duane George, president of EMEA and APAC at Aptean, said: “Indigo Software possesses over 40 years of experience delivering mission-critical warehouse management solutions across the United Kingdom. The Indigo Software platform delivers an integrated suite of purpose-built solutions designed to handle even the most complex warehousing operations. We are thrilled to welcome the Indigo Software team and customers.” Darren Baxter, CEO at Indigo Software, said: “Aptean shares our commitment to delivering best-in-class supply chain solutions. Together with Aptean, we are excited to offer our customers even more solutions to help streamline their warehousing operations.” Newcastle law firm Hay & Kilner LLP advised the Indigo shareholders and tax advice was provided by RSM’s Newcastle office. Aptean Inc was advised by Skadden, Arps, Slate, Meagher & Flom LLP and Deloitte.
Nvidia dethrones Apple as world's most valuable company in stock market shake-up
Nvidia has surpassed Apple as the world's most valuable company after Apple hinted to investors that it may struggle to replicate the profitability of its flagship iPhone in future products. Nvidia's market capitalisation reached $3.43 trillion (£2.66 trillion) at the close of trading yesterday, with its stock rising nearly 3% to overtake Apple's $3.38 trillion (£2.62 trillion) valuation. Microsoft ranks third with a market capitalisation of $3.06 trillion (£2.37 trillion), as reported by City AM. Nvidia's surge this year has been driven by strong demand for its graphics processing units (GPUs), which are essential for powering artificial intelligence (AI) across various sectors, including tech giants and healthcare. The stock has also risen in pre-market trading following the news of Donald Trump's US presidential win. This development comes after Apple's annual report warned of potential growth and profit margin challenges. The report stated: "New products, services and technologies may replace or supersede existing offerings and may produce lower revenues and lower profit margins, which can materially adversely impact the company's business, results of operations and financial condition". Additionally, the report highlighted new risk warnings related to "geopolitical tensions" and safety concerns surrounding emerging AI features. Although Apple reported a 6% increase in revenue last quarter, its outlook for the current period fell short of analyst expectations. The company has been grappling with low demand in China, a challenge that threatens its consumer hardware business, which has long been a significant source of revenue. Nvidia is set to announce its third quarter earnings on 20 November, with a projected revenue of approximately $32.5bn for the period, slightly above the analysts' consensus of $31.77bn, as per LSEG data. Investors are expected to closely examine the results due to increasing market concerns about whether AI growth can justify the sky-high valuations and billions invested by companies such as Nvidia.
Cyber security firm Tekgem doubles size of County Durham head office as demand grows
Fast growing cyber security business Tekgem has doubled the size of its North East headquarters to help it meet growing global demand. Sedgefield-based Tekgem, which has its head office at NETPark, specialises in industrial cyber security and has clients around the UK and abroad in the process industry, including petrochemical, oil, gas and utilities sectors, SABIC, including Mitsubishi Chemical, Total, INEOS, E.On, Fujifilm and GSK. The tech company’s software platforms are designed to continuously monitor cyber risks and protect against the latest cyber threats, while its consultancy and engineering services help to ensure its customers can assist its customers in protecting, detecting and responding to threats which have the potential to cause major accident hazards. Now the industrial cybersecurity company – which launched a base in Dubai earlier this year to answer increasing demand from customers in the UAE – has expanded its office space at NETPark, to support growth and its commitment to developing new talent. The expansion, which doubles its current footprint, comes as the County Durham firm welcomes its third cohort of apprentices, with 12 recruits joining the The company, which has more than 30 staff, comes as it looks to foster innovation and talent within the cybersecurity sector, amid aims to grow its workforce fivefold by 2028. Ian Gemski, founder and CEO of Tekgem, said the business is continuing to secure critical national infrastructure and expand its global footprint, and that its enhanced facilities will play a crucial role in supporting further growth. Mr Gemski said: “We are delighted to have secured further office space at NETPark, as we continue to execute our scale up strategy. Since moving onto the park in 2020, with a small office accommodating 4 members of staff, we have been able to move into bigger offices at each stage of our growth. “This is our fourth move on the park, starting out in Discovery 1, then into Plexus and now Explorer 2, we now have space to accommodate 50 employees. Having this flexibility has been so important to our growth, without having to move off the park. “We are proud to provide high-tech career opportunities for local young people here in the North East, and our degree level apprenticeship academy is testament to that. In addition, we have also secured 3 software engineer interns from Durham University thanks to the strong links on the park, as we partner with them on adding new innovative technologies to our cyber security software platforms.” Tekgem’s expansion comes in tandem with NETPark’s own recent developments, including expanding office spaces and work on phase three of the park.
UK competition watchdog launches probe into Alphabet's Anthropic investment
The UK's Competition and Markets Authority (CMA) has officially launched an inquiry into the merger between Alphabet Inc. , Google's parent company, and AI safety firm Anthropic. The regulatory body had sought opinions on the deal earlier this year and confirmed on Thursday that it now has "sufficient information" to proceed with a formal probe, as reported by City AM. In a pivotal move for the AI sector, Alphabet channelled $500 million into Anthropic in 2023, alongside a future commitment of $1.5 billion over an undefined period. In addition, Anthropic relies on Google Cloud as part of its operational infrastructure. Anthropic is renowned for developing Claude, a sophisticated large language model that vies with OpenAI's ChatGPT. The CMA is tasked with determining by 19 December 2024 whether the Alphabet-Anthropic merger requires a deeper phase two investigation. Requests for comment from both Alphabet and Anthropic were not immediately returned. A previous statement from a Google representative emphasized the tech giant's dedication to cultivating a broadly accessible and innovative AI environment. They stated: "Google is committed to building the most open and innovative AI ecosystem in the world. Anthropic is free to use multiple cloud providers and does, and we don't demand exclusive tech rights." An official from Anthropic had also previously indicated the company's intent to engage fully with the CMA to present a comprehensive view of their collaboration with Alphabet. Another significant player, Amazon, made a substantial $4 billion investment in Anthropic last year and bolstered its stake recently with an additional $2.75 billion. This regulatory scrutiny comes as part of a broader action from the CMA, which, in April, initiated three separate investigations into partnerships between Microsoft, Amazon, and three different AI startups, including Anthropic.
Shortlist revealed for £1m business pitch competition
The shortlist has been revealed in a new business pitching competition in which the winner will take home £1m worth of investment. Four companies have been named as finalists in the ‘One to Win' competition ahead of the pitch day next Wednesday as part of Birmingham Tech Week. One to Win is being run by regional business body TechWM and is backed by investors and other figures from the tech sector. The finalists are Birmingham-based ChangeMaker3D which aims to help industries such as construction become greener and OneUp Sales, also based in Birmingham, which is a sales performance management platform. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Coventry-based Skyfarer is a drone and aerial technology company which is aiming to boost aerial logistics and finally Inicio Ai, also Coventry based, is a fintech start-up that works to simplify the process of capturing detailed income and expenditure information. Yiannis Maos, chief of TechWM which organises Birmingham Tech Week, said: "One to Win is going to be one of the highlights of Birmingham Tech Week and the four businesses shortlisted are testament to the great tech landscape we have here in the West Midlands. "The £1 million invested in this competition's prize pot will now be going to a business that we can only see do groundbreaking innovation and we are excited to see whoever wins what they can utilise with this once-in-a-lifetime opportunity." Mr Maos will be joined on the judging panel by Rigby Group chief executive Steve Rigby, Midven fund principle Rupert Lyle and Haatch Ventures co-founder Fred Soneya.
Chipmaker Graphcore to increase workforce by 20 per cent
Bristol-based high-performance chipmaker Graphcore has announced plans to increase its workforce by 20 per cent as it develops the next generation of AI computers. The technology firm, which is headquartered in the South West, said the 75 roles would span a wide range of disciplines, including silicon design, hardware, datacenter infrastructure, software and AI research. Positions are on offer in Bristol, Cambridge, London, Gdańsk in Poland, and Hsinchu City in Taiwan. The announcement comes just months after Graphcore was acquired by Japanese tech firm SoftBank - a major global investor in artificial intelligence. Neither SoftBank nor Graphcore disclosed the value of the deal at the time, but it was understood to be in the region of $600m. Following the takeover, the Bristol business pledged to “continue to invest in the creation of high-skilled jobs spanning a range of disciplines”, particularly in the UK. “Graphcore is a place where people can come to do their very best work,” said Graphcore chief executive Nigel Toon. “Whether your expertise is in silicon, systems, software, AI research or any of the other functions that we are expanding, this is a chance to work at the leading-edge of your field.” Graphcore is playing a central role in SoftBank Group’s work to further the development of Artificial General Intelligence (AGI).
Tyneside tech firm Aspire expands into Yorkshire with latest acquisition
Tyneside tech firm Aspire Technology Solutions has expanded its footprint in Yorkshire after snapping up a Leeds business in an undisclosed deal. The Gateshead company – a former North East Company of the Year – has swooped for Cloud CoCo Ltd, an experienced managed service provider based in Leeds. Aspire bosses said the deal marks a strategic advancement in its plan to expand its UK presence and further strengthen its ability to deliver managed IT services, security solutions, and integrated modern workplace technology to clients across a range of industries. Accounts show CloudCoCo turned over £7.3m in most recent Companies House filings covering 2023, up from £6.9m, but fell to a loss of £170,041 from the previous year’s profit of £161,098, with more than £88,000 accounting for exceptional items including restructure costs. The company, formerly part of AIM-listed Cloud CoCo Group Plc, had around 45 employees in the financial period. The acquisition will bring over £10m in additional revenue and approximately 300 new customers to Aspire, which it said sets the stage for future growth. The acquisition comes a month after Aspire – which moved into Pipewell Studios, the former Baja beach club, overlooking the River Tyne in 2020 – grew its presence in Scotland with the acquisition earlier this year of Glasgow-based Cloud Cover IT, a managed service provider based in the city. Aspire is aiming to recruit further in Glasgow and has also said it will be moving into larger offices in central Glasgow, on the back of a 35% boost to headcount in the city. Chris Fraser, Aspire CEO and founder, said: “While CloudCoCo has undergone a period of structural transition, what truly stood out to us was its strong relationships with its high-quality customer base and the expertise within its team. These strengths align perfectly with our commitment to delivering technology like no other. "This acquisition not only broadens our reach but also enhances our ability to offer responsive, innovative solutions that meet the evolving needs of our clients. The CloudCoCo team will be an important part of Aspire’s next chapter, and together, we’re ready to make an even greater impact across key UK regions.” Darren Weston, group operations director at CloudCoCo Ltd, added: “Joining Aspire represents an exciting new phase for CloudCoCo. We look forward to working closely with Chris and the team to expand our reach, deliver added value, and provide a wider range of innovative solutions Aspire’s commitment to excellence aligns well with our own, it’s a powerful collaboration with a trusted UK technology provider that shares our values and goals.” Aspire recently reinvested £1.7m into its technology stack, to back up the capabilities of its security operations centre and other critical infrastructure.
Chancellor announces major investment in UK tech and creative sectors in Autumn Budget
The Autumn Budget, presented by Rachel Reeves on Wednesday, proffered substantial backing for the UK's technology and creative sectors, with the Chancellor outlining capital investment strategies intended to "drive growth across the country." In her budgetary plans, Reeves articulated the intention to "capitalise" the National Wealth Fund, targeting support towards bustling future industries such as gigafactories, ports, and green hydrogen production, as reported by City AM. These initiatives are encapsulated within an expansive Modern Industrial Strategy, which aims to bolster sectors identified as having significant growth prospects through judicious investment. To reinforce these ambitions, the Budget set forth a collection of multi-year funding promises: £1 billion earmarked for aerospace, in excess of £2 billion channelled into the automotive industry focusing particularly on electric vehicle manufacture, and as much as £520 million dedicated to establishing a new Life Sciences Innovative Manufacturing Fund. Alongside invigorating tech and industrial segments, Reeves channelled improvements into tax incentives for the nation's thriving creative industries, with particular enhancements for VFX in television and film production. Moreover, £25 million has been designated to the North East Combined Authority for the transformation of the Crown Works Studios site in Sunderland, a project forecasted to generate 8,000 fresh employment opportunities. Reeves has reaffirmed the government's dedication to research and development, allocating over £20 billion for research funding in areas such as engineering, biotechnology, and medical science. Moreover, the Chancellor has pledged £500 million to enhance mobile broadband connectivity, particularly in rural regions, through the Department for Science, Innovation and Technology (DSIT). Additionally, Reeves has committed an extra £22.6 billion to the NHS budget, aiming for a two per cent productivity gain next year. This investment is intended to support the health service's transition "from analogue to digital" over the coming decade. Mark Leftwich, Philips UK & Ireland's managing director, expressed his support for the new funding, stating it "is a chance to start pulling the NHS back on track." "State-of-the-art technology is changing the way that care is delivered in pockets, but increased investment in digital and innovation is needed to accelerate this at scale," he commented.
Pensionbee's strategic US expansion backed by £20m funding as fintech eyes global pension market
Pensionbee, the online retirement savings provider, reported positive adjusted earnings in the last quarter and raised £20m for its US expansion. The London-based fintech firm saw a revenue increase in the third quarter, jumping to £9m from £6m the previous year. The company anticipates breaking even on an adjusted EBITDA basis by 2024. For the third quarter, it recorded its second consecutive quarter of positive adjusted EBITDA at £1m, as reported by City AM. The firm also reported £5.5bn in assets under administration (AuA), marking a 41 per cent increase from £3.9bn in September 2023. This year, Pensionbee has seen £538m in net flows from new customers and £153m from existing ones, with customer numbers reaching 260,000 at the end of the third quarter, an addition of 37,000 year on year. Since its listing on the London Stock Exchange in 2021, Pensionbee's stock price has more than doubled as it continues to scale up and improve profitability. The firm aims to capture approximately two per cent of the UK's £1.2 trillion pensions market over the next five to 10 years, targeting 1m customers and £20bn to £25bn in AuA. In separate news on Thursday, Pensionbee announced that it had raised £20m through a share placing to invest in its nascent US business, which was launched in July with support from a partnership with State Street's investment management division. The US defined contribution pension market, representing approximately 80 per cent of the global total, boasts a value close to $22.5 trillion. "We are pleased to see a positive consumer response to our marketing approach and to have developed local features to facilitate easier rollovers," commented PensionBee's chief executive Romi Savova, the entrepreneur who launched the firm in 2014. "The opportunity we have ahead of us, to help millions of Americans enjoy a happy retirement, is transformational for the next decade of PensionBee's growth."
UK and South Korea resume trade talks focusing on tech and digital services expansion
The UK has recommenced trade negotiations with South Korea, with a focus on enhancing technology and digital services sectors. British representatives have travelled to Seoul for discussions with their South Korean counterparts today, as they seek to forge a forward-looking, digitally-oriented trade deal, as reported by City AM. This marks the first round of talks under the Labour government since the trade discussions were put on hold during the transition period after the July 4 election. Speaking to City AM, Business and Trade Secretary Jonathan Reynolds said: "Both the UK and South Korea are renowned as global leaders in technology. Our high-tech economies have so much more we can do together once our trade deal is upgraded." He added: "Trade deals with partners like South Korea mean UK businesses will have more opportunities to sell their excellent goods and services around the world." Reynolds expressed satisfaction that negotiators are resuming this vital work, which contributes to building a stronger economy. According to officials, the UK-South Korea trade relationship was valued at approximately £17bn in the year leading up to June 2024, with these talks being the third set to restart following Labour's electoral victory, succeeding discussions with the Gulf Cooperation Council and Switzerland. The government is determined to secure a deal that opens significant export avenues for British companies, especially given South Korea's growing consumer demand for high-tech imports. Diplomatic ties spanning 140 years are set to be rejuvenated, with the Department for Business and Trade (DBT) emphasising the need to refresh the decade-old trade agreement between the two nations, particularly citing an absence of a digital chapter in the current framework. In 2022, the UK's thriving digital sector boasted a value of £158.3 billion, with roughly 7,000 British firms exporting to Korea - 85% of which are SMEs. Officials are optimistic that a revised agreement could potentially boost this number through modernised customs processes, alongside planned talks on simplified origin rules and the prospect of lower tariffs. TechUK's Sabina Ciofu has expressed support for a "renewed commitment" towards trade discussions, highlighting significant potential in advancing digital services and technology trade, areas where UK innovation excels globally. "With South Korea's strong focus on research and development in key technologies, including semiconductors, 6G, and ICT infrastructure, this offers a unique chance to drive forward high-tech advancements and strengthen our global digital capabilities," Ciofu conveyed to City AM. Adding to the positive sentiment, Chris Sunghwal, CEO of SeAH Wind, a South Korean energy company, commended the opportunities ahead for "enhanced relations between our two great nations". He endorsed the establishment of the new monopile factory in Teesside, hailing it as "a world class leading facility, bringing together the best of both cultures from South Korea and the UK".
Sunderland cyber security firm seals £625,000 investment to trigger growth
A North East cyber security business has become the first to secure investment from the Venture Sunderland Fund. FAT32 has secured a £625,000 finance deal, which includes £350,000 from the fund which was launched earlier this month by fund managers Northstar Ventures. The Sunderland business is making changes in the regulatory tech industry, helping to transform cyber-security compliance from a lengthy chore to an effortless process, with potential cost savings of up to 70%. The business says customers using its flagship OneClickComply tool can complete compliance tasks up to 20 times faster than traditional methods, putting it in a strong position to perform well in a cyber-security market estimated to be worth £11bn in 2023 – a figure set to almost double to £20bn by 2029. FAT32 was formed by Connor Greig, Conor Sizeland and David Warren, who share a passion for emerging technologies and have used their collective experience in software engineering and cyber security to create the solution. The founding team are supported by chairman Kelvin Harrison, former chair of Sunderland-based Clixifix and advisor, Jamie Whitcombe-Jones, ex CISO at Allianz. Northstar Ventures’ investment comprises £350,000 from the Venture Sunderland Fund and £200,000 from the North East Innovation Fund, supported by the European Regional Development Fund, with the rest coming from angel investors. The funds will aid development of the firm’s software while also support the expansion of the team. Co-founder Connor Greig said the company has ambitious aims to generate high-skilled jobs in Sunderland, adding to the growth of the of the cyber security cluster in the wider region. He said: “FAT32 is delighted to be the first investment from the Venture Sunderland Fund. We are truly passionate about levelling up the North East by creating skilled digital jobs in the region and are thrilled to be working with Northstar Ventures to do just that. “Cyber security is a pressing challenge that affects us all, and keeping on top of it is increasingly difficult due to the ever-evolving threat landscape. That’s why at FAT32, we have automated cyber security compliance to make it easy and affordable for all businesses. Our platform is the first to combine continuous monitoring with automated remediation. We highlight non-compliance issues and fix them automatically, helping companies navigate their compliance journey within a click, with no cyber experience required.”
BT shares fall after challenging conditions hit revenue at FTSE 100 giant
BT's shares saw a downturn of up to 3.9% in early trading today after the telecoms giant revised its growth forecast for the year downwards. The firm disclosed a marginal drop in revenue for the half-year ending on 30 September 2024, attributing it to what it describes as challenging conditions within its enterprise division and heightened competition in the consumer segment, as reported by City AM. As a result of these challenges, BT has adjusted its growth expectations for the current fiscal year. In a detailed account, BT announced that its adjusted revenue fell by three percent over the period to £10.1bn, primarily due to "challenging conditions in business, principally driven by non-UK trading in our global and portfolio channels." The company also noted that its consumer operations were impacted by smaller inflation-related price increases, intensified market competition, and a decline in customer numbers. Despite these setbacks, BT reported an adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) of £4.1bn, which is a one percent increase from the previous year, aided by reduced costs. The reported pre-tax profit stood at £1bn, marking a decrease of 10 percent, which was attributed to diminished revenue, escalated costs, and additional finance expenses. Looking ahead, BT has indicated a positive trend stemming from reduced capital expenditure over the last two years, with the latest figures showing a continuation of this pattern. Although the company's primary financial metrics experienced pressure, capital spending for the period was reported at £2.3bn, a reduction of two percent, signalling the end of BT's peak capital investment phase. Normalised free cash flow for the period reached £0.7bn, marking a 57 percent increase attributable to heightened EBITDA, favourable working capital flows, and a tax refund. The corporation disclosed a net debt of £20.3bn at September's close, an elevation from the £19.5bn noted at March's end, attributed by BT to scheduled pension contributions and the timing associated with the final dividend payment. Regarding dividends, BT has instituted an interim dividend of 2.4p per sharea rise of 2.3 percentage points compared to its half-year disbursement. Looking ahead to 2025, the firm anticipates a modest dip in revenue yet foresees persistent EBITDA growth, facilitated by reduced capital expenditure requisites. Allison Kirkby, the Chief Executive Officer, reflected: "We have accelerated the modernisation of BT Group in the first half of the year. We've ramped up our full fibre build and connections, seen further improvements in customer satisfaction, and our cost transformation contributed to growth in EBITDA and normalised free cash flow despite revenue declines driven by our non-UK operations and a competitive retail environment."
Singapore's Winking Studios eyes London AIM market for dual listing, expansion plans
Winking Studios, the gaming behemoth from Singapore, has revealed its intention to float on the London Stock Exchanges AIM market in a move aimed at consolidating its presence in Western economies. The firm, which is already a fixture on Singapore's Catalist board, views the dual listing as an opportunity to access the substantial tech investment resources of the UK and foster expansion within the "fast-growing industry", as reported by City AM. Since its inception in 2004 by CEO Johnny Jan, Winking Studios has ascended to become a leading name in game art outsourcing, securing the third position in Asia and fourth worldwide by revenue. Possessing an impressive global reach with nine offices throughout Asia and partnerships with 22 out of the top 25 global game developers such as Ubisoft, EA, Activision, and Tencent, Winking Studios has made significant contributions to blockbuster franchises including FIFA, Call of Duty, and Assassin's Creed. Choosing the UK capital for its strategic move, Jan remarked: "London feels like the obvious choice," acknowledging the city's comprehension of the global gaming sector and its propensity for supporting growth-driven international companies like theirs. Expanding on this, Jan added: "We believe Winking Studios has a significant opportunity to expand its presence globally, and dual listing on AIM will further support our global ambitions and position us to accelerate growth." "Operating in a fast-growing industry, with a proven track record of delivery and relationships with the majority of the world's biggest game developers, we plan to build on our success to date and capitalise on the fragmented nature of the industry landscape to drive future growth," Jan added. Winking plans to utilise its existing cash reserves of over $30m (£23.1m), along with the capital raised through the AIM listing, to expand its presence in Europe and North America, establish a UK regional hub, and pursue acquisitions of smaller studios in these regions. The company also aims to enhance its AI capabilities to maintain competitiveness in the gaming sector. This announcement comes after the recent delisting of British video game developer Keywords Studios from AIM following its acceptance of a take-private offer of £2.2bn. Earlier this week, reports revealed that the number of AIM companies has fallen below 700 for the first time since 2001, as London's junior market suffered amid rumours that the Chancellor might eliminate a key tax relief for AIM shares in her Autumn Budget.
Chief executive of one of Wales' leading tech firm IQE quits with immediate effect
The chief executive of one of Wales' leading technology firms, IQE, has left the business with immediate effect, in a move that sent its share price tumbling In a London Stock Exchange statement, the leading global supplier of compound semiconductor wafer products and advanced material solutions has confirmed the departure of Americo Lemos, who took up the role in January 2022. A search to find his replacement has been launched. Jutta Meier will take up the position of IQE's interim chief executive in addition to her chief finance officer role. Ms Meier joined IQE in January 2024 from Intel Corporation. Following the announcement IQE' share price was down nearly 20% to just under 12p. Read More: Michael Sheen pays off debts of hundreds of people Read More: The huge financial crisis engulfing Welsh universities The Cardiff headquartered firm said that Mark Cubitt, who joined the IQE board earlier this month as chair-elect, will become executive chair. He is currently non-executive chair at AIM-Listed Beeks Group and Concurrent Technologies. Phil Smith, who has been chair of IQE since 2019, will step down from his role, but remain on the board. Mr Smith said: "Whilst IQE continues to navigate the semiconductor market recovery, we are confident that the company's renowned technical expertise is well aligned to long-term growth market vectors. In Mark and Jutta we have two excellent individuals with the necessary sector and leadership skills to capture that growth in partnership with our customers, employees and broader stakeholders. "Their immediate priorities will include a focus on executing on the near-term pipeline as well as cash generation across the Group and on unlocking embedded value by pursuing the IPO (flotation) of our Taiwan business. They will examine other efforts to optimise our asset base and ensure that resources are centred around IQE's strategic areas of expertise." In a brokers note Panmure Liberum still recommended a buy position, with a share price target of 40p. The note added: ""The short and to the point wording of the announcement that CEO Americo Lemos has 'eft with immediate effect” suggests he has been removed by the board.
Workday's UK profits soar as it doubles down on investment and partnerships
The UK arm of software giant Workday, has seen its profit nearly double in its most recent financial year. The US group reported a pre-tax profit of $39.5m (£30.6m) for the 12 months ending 31 January, 2024, as per the latest accounts filed with Companies House. This is a significant increase from the previous year's pre-tax profit of $21.3m (£16.5m). The company's UK turnover also increased from $253.2m (£196.3m) to $264.4m (£205m) during the same period, as reported by City AM. Workday collaborates with over 35% of the FTSE 100 companies, including Diageo, Lloyds, GSK and Rolls-Royce, as well as public sector organisations such as the Crown Commercial Service, Department for Education and The National Archives. In the fourth quarter of its most recent financial year, the firm added David Lloyd Leisure, Compare the Market and Newcastle United to its client roster. Founded in 2005 and going public in 2012, Workday now employs over 18,800 people globally. The impressive results follow Workday's announcement of plans to invest more than £550m in the UK over the next three years. Although the Nasdaq-listed company did not specify by how much, it confirmed that this investment would lead to an increase in its UK workforce. During its most recent financial year, Workday's UK arm employed 666 people, up from 647 in the previous 12 months and a rise from 528 two years ago. Workday has announced a 40 per cent increase in investment over the past three years, "furthering the organisation's commitment to strengthen the nation's economy and support the goal to cement the UK as a science and technology superpower by 2030. The company stated that this investment will bolster its strategic capital arm, Workday Ventures, fuel the growth of the Workday Partner Ecosystem, and facilitate the launch of its applications running on Amazon Web Services' London region for UK cloud customers in early 2025. On a group level, Workday reported a 17 per cent increase in total revenue for the year ending 31 January, 2024, amounting to $7.3bn (£5.6bn).
Moneybox valuation hits £550m as fintech firm transitions into profitability
Moneybox, the savings and investment platform, has achieved a valuation of £550m ahead of a secondary share sale, following its transition into profitability. The London-based company, established in 2015, announced that this new valuation represents an 84% increase from its valuation during a Series D funding round in March 2022. This comes on the heels of a roughly £70m investment secured with new supporters Apis Global Growth Fund III and French asset manager Amundi. Apis has pledged approximately £60m, while Amundi has agreed to an investment of £8m, as reported by City AM. Moneybox's existing investors, which include 35,000 employee shareholders, will have the opportunity to sell 10% of their holdings in the upcoming secondary share sale. Operating a wealth management app that encompasses saving, investing, home-buying, and retirement, Moneybox boasts over one million UK customers and more than £10bn in assets. The company's accounts for the year ending 31 May 2024, released on Monday, reveal an annual pretax profit of £26.5m, a significant improvement from a £4.1m loss the previous year. Revenue for Moneybox surged to £77.2m from £28.7m. "Our high customer retention, sustained growth and increasing profitability underscore the strength of our business," said Ben Stanway, co-founder and executive chair of Moneybox, on Wednesday. As part of the new agreement, Amundi will be represented on Moneybox's board by Paris-based VC firm Breega, in which it is an investor. Apis will also join as a board observer. Stanway expressed that the new investors' "expertise and support will be invaluable as we move into the next stage of our journey". "We are also delighted to be able to facilitate this secondary share sale to recognise the hard work of our team and also our investors, many of whom have supported us since inception," he further commented. This planned share sale follows similar transactions executed by UK fintech counterparts Revolut and Monzo in recent months, which have elevated the companies' valuations. On Tuesday, it was reported that digital bank payments start-up GoCardless is also gearing up for a secondary share sale to provide liquidity to its employees. Moneybox's current investors comprise Fidelity International Strategic Ventures, Oxford Capital, Breega, Burda and CNP.
South West tech sector to be supported by new advisory board
A new board has been established to support the tech industry in the West of England. It is hoped the advisory group, made up of business leaders, researchers, academics and investors, will boost growth within the sector and highlight the region's role in shaping the UK's innovation landscape. The formation of the South West of England Technology Sector Advisory Board was coordinated by Tech South West, which covers Cornwall and the isles of Scilly, Devon, Dorset, Somerset, Wiltshire, Bristol, and Gloucestershire. The board brings together key players from across the region's tech ecosystem to guide the strategic direction of the sector. Its primary purpose is to foster an environment that promotes innovation, growth, and collaboration within the industry. Rhona Munro, founder of Gomarkable and vice chair of the Tech South West Advisory Board, said: "Bringing together diverse expertise from across the region, the advisory board will be instrumental in supporting Tech South West to drive creativity and growth." Toby Parkins, chief executive of software provider Headforwards and chair of the Tech South West Advisory Board, added: “We have such a diverse range of knowledge across all the tech sector and this will create some of the wisest and strongest advice available guiding policy makers and the wider industry to create growth of industry across the region.” It is hoped the board will elevate the profile of the South West's tech sector, as well as helping to shape policies and initiatives, and showcase cutting-edge innovation within the ecosystem. Initiatives undertaken by the group will include: Dan Pritchard, co-founder of Tech South West, said: "Tech South West is committed to maximising the impact of the South West tech sector, and supporting organisations in the ecosystem to reach their potential through collaboration, showcasing and region-wide projects.
Greater Manchester businesswomen named among Britain’s top Black entrepreneurs
A Manchester robot specialist and a Salford children's entertainment creator have been named as Britain’s top Black entrepreneurs. KPMG has announced the four winners of its annual Black Entrepreneurs’ Awards, which have been held every year since 2018 and aim to identify the country’s most exciting business leaders. The winners were chosen from more than 150 entrants in areas from AI to retail and from recruitment to education. Each winner will receive £25,000 to invest in their business or to donate to the charity or community project of their choice, while all finalists can join a KPMG acceleration programme “designed to support Black heritage entrepreneurs and their businesses to grow”. The award for most promising large business was won by Ayaan Mohamed, founder of Manchester’s Digitech Oasis. Her business develops autonomous mobile robots and AI systems to help retailers and warehouse operators work more efficiently. She said: “It feels amazing to win, it means a lot to the company, a company that has come so far in the last four years. In terms of accelerating growth, hardware is very capital intensive so we need support. I think it will propel us to do greater things.” The award for most promising medium-sized business went to Anita Frost, founder of Green Bean Studios in Salford. The eco-conscious children’s entertainment brand aims to “empowers children globally to play, learn and go on fun adventures”. Anita said: “I’m so excited to have won this KPMG award, it’s going to propel Green Bean, the team and the brand into new spaces. I’m particularly really excited about the partnership with KPMG for 12 months so that we can improve our infrastructure and being ready to level up.” The most promising small business title was won by Yasmin Greenaway, founder at deep tech company Dermie.AI. Her London business specialises in building computer vision models and software for the detection and management of dermatological disease. Yasmin said: “I really appreciate winning because it’s so important that corporates ensure that we focus on diversity in AI because we’ve seen a lot of models coming out that aren’t working for everyone.” The most promising not-for-profit-business title went to Ben Lindsay OBE, founder at award-winning charity Power The Fight. The charity works to tackle violence affecting young people, working to connect policy-makers with communities and to create long-term solutions. Ben said: “I’m so excited that we’ve had this opportunity, it’s going to mean so much to us as a small charity to be associated with KPMG, but also the money makes such a difference to our digital offer which is going to impact young people and our training up and down the country.” The awards were founded by Olu Odubajo, a product manager at KPMG UK, in 2018. They have so far supported 48 Black heritage founders – with one winner going on to grow a global business valued at £12m with a presence in 27 countries. The 12 finalists at this year’s awards were invited to a pitch in front of live audience and a judging panel that included Margaret Sheyindemi, start up growth manager at BT, Ezechi Britton, MBE, CEO of the Centre for Finance, Innovation and Technology, and Zuleika Philips, head of channels at Intuit. Euan West, head of private enterprise for KPMG in the UK, said: “Research has shown that Black entrepreneurs in the UK receive a disproportionately low amount of venture capital investment, which often hinders business and economic growth. “Supporting the development and scaling of Black businesses in the UK is incredibly important, which is why we’re committed to helping more Black Heritage entrepreneurs to gain access to the resources they need to make their businesses a success. “We have been running the KPMG Black Entrepreneurs’ Awards for five years now. Every year we get to see some truly incredible and innovative businesses and this year has been no exception. Our four winners really stood out, not only for their entrepreneurship but the impact and reach their businesses could have. In fact, all the finalists showed great innovation in their businesses and should be proud of what they have achieved. We are looking forward to supporting all of them through our 12-month acceleration programme, helping them to grow their businesses.”
Amazon Alexa creator believes most companies are getting AI wrong
William Tunstall-Pedoe, the brains behind Amazon's voice assistant Alexa, has expressed concern that many firms attempting to incorporate AI into their operations are failing, as reported by City AM. "Pretty much every medium and large business out there is trying to bring AI into their business," he disclosed to City AM. "But a lot of these projects are failing, and the reason why they're failing is because the [machine learning] ML piece doesn't work well enough." "It isn't trustworthy enough, goes wrong every now and then in a way that potentially costs money or is outside of regulatory requirements, or is brand damaging," he further added. After selling his voice assistant startup, Evi Technologies, to Amazon in 2012, he contributed to the development of Alexa, but currently, he is focusing on a new venture, Unlikely AI. Although the deep tech startup has largely remained under wraps so far, Tunstall-Pedoe revealed it aims to address the issues that are causing many companies using large language models (LLMs) to stumble, such as bias, hallucination, accuracy and trustworthiness. "We are trying to create a platform that addresses all these problems, so in industries that are particularly high risk, and that includes finance, that includes health, anything to do with people, we're basically creating an AI platform that's trustworthy and explainable, so that businesses can apply AI in a very confident way," he elucidated. London's Unlikely AI, an emerging tech firm, has secured a substantial $20m (£15.4m) in seed funding led by Amadeus Capital and Octopus Ventures as it advances its innovative technology. The company is bolstering its workforce and recently welcomed onboard the experienced Fred Becker, a former Skype executive, as chief administrative officer, along with Tom Mason, formerly of Stability AI, taking on the role of chief technology officer. Mason commented on the potential of Unlikely AI's platform, noting its capacity for enabling firms to tackle intricate issues, such as streamlining the customer claims processes against corporate policies in a way that's predictable", offering a stability that traditional language models might not.
Chancellor Rachel Reeves' tax hikes 'punish risk-takers and could stifle innovation'
British tech entrepreneurs have criticised the increases in capital gains tax (CGT) and national insurance contributions (NICs) announced by Chancellor Rachel Reeves in the recent Budget. The government has raised the lower rate of CGT from 10% to 18%, and the higher rate from 20% to 24%. Additionally, employers' NICs have been increased by 1.2 percentage points to 15%. Paul Taylor, founder and CEO of the $2.7bn banking software company Thought Machine, expressed concerns that the rise in NICs would add £800,000 annually to his firm's UK payroll expenses and complicate recruitment efforts. "Companies like ours will be less incentivised to grow once the contribution we have to pay, per employee, increases combined with forthcoming changes to employment legislation," he remarked. "Nearly all emerging tech businesses run on investor capital, and this increase sets them back on their path to profitability.", as reported by City AM. Furthermore, Taylor highlighted that the hike in CGT represents "a tax on risk-takers" and will "discourage talent from working in the tech sector". "CGT increases mean the potential value of the shares they own will now be considerably lower, thus reducing the incentive for top talent to join high-growth and tech businesses, which is the future growth engine of the UK," he added. Last month, Taylor communicated to City AM his ambitions to list Thought Machine on the London Stock Exchange, underscored by his belief that the US start-up scene serves as "a model of where the UK needs to be". Labour's Reeves has pointed out that the Budget has introduced tax increases totalling £40bn in an effort to address what is claimed to be a £22bn "black hole" in public finances. Capital Gains Tax (CGT), which taxes the profit made on the sale of an asset like company shares, was anticipated to increase. Although it didn't reach the speculated heights of 39 per cent, the increase has some founders worried over its possible dampening effect on innovation, hindrance to talent acquisition, and discouragement of new business ventures within the UK. ClearBank CEO Charles McManus weighed in on the matter, stating that the combined hike in CGT and National Insurance Contributions (NICs) might significantly discourage entrepreneurs from establishing businesses in Britain. McManus also highlighted concerns regarding more UK firms opting to list in markets outside London, exacerbating existing market trends witnessed in recent years. "Starting and scaling a business requires ingenuity, grit and determination as well as taking a major risk," he commented. "And we support any government that rewards that risk by creating an environment where entrepreneurs have access to the best investors, advice and scaling opportunities available." Motorway CEO Tom Leathes expressed concerns, highlighting that "entrepreneurs thrive on incentives that reward risk" and warning that an increase in Capital Gains Tax (CGT) could render scaling and reinvesting in tech companies "significantly less attractive". In the build-up to the Budget, there was speculation that potential rises in CGT, National Insurance Contributions (NICs), and Business Asset Disposal Relief might hinder the expansion pace of technology start-ups. Voices within the sector suggested that these changes could deter investors, possibly causing them to seek alternative markets and countries for their investments, and might discourage founders due to heavier tax loads on stock options and other incentives. A fintech industry group had forewarned of a potential mass departure of UK founders due to new government policies, although this alarm has been downplayed by some as merely "rhetoric", especially since the increases were not as steep as anticipated. Phill Robinson, CEO of Boardwave, a London-based network for founders, concurred with the concern, arguing that the uptick in capital gains tax "will hit the entrepreneurs that fuel our software industry, particularly hard," adding that the reform regarding carried interest would also affect investors. Robinson pointed out: "As a fast-moving high growth sector, that requires a high level of risk for both founders and investors and on balance the measures announced today will change the risk/reward calculations for both,". During her address to Parliament, Reeves cited that even after these revisions, the UK would still have the lowest capital gains tax rate compared to its European G7 peers. On a more optimistic note, Philip Belamant, co-founder and CEO of Zilch, the $2bn buy-now pay-later provider, expressed his initial response as positive. "While we'll all absorb slight tax increases, the UK remains a top G7 competitor and the third-largest tech market on the planet," he stated.
Audioboom shares soar as US election boosts podcast demand
Shares in Audioboom soared almost 19% Tuesday, with the podcast streaming company reporting a record-breaking revenue and profit - projecting to "significantly outperform" market projections, particularly given the boost from the US election fever. In its third-quarter report, the London-based firm recorded a remarkable revenue of $18.8m (£14.4m), a significant increase from the previous year's $14m (£10.7m), as reported by City AM. Audioboom also enjoyed a fruitful third quarter in terms of adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) turning a profit of $1m (£766,200), marking the fourth consecutive quarter of EBITDA profitability. A chief contributor to this financial surge has been Audioboom's advertising platform, Showcase, which brought in its highest quarterly revenue ever at $7m (£5.4m), representing an almost double increase from last year. Stuart Last, Audioboom's Chief Executive, commented: "I am delighted with Audioboom's performance in Q3 2024, headlined by strong revenue and adjusted EBITDA growth, and underpinned by a robust business model." He further remarked on the outlook for the company, saying, "With our seasonally strongest quarter ahead, we are set to significantly outperform market expectations for adjusted EBITDA." Last expressed enthusiasm for the final quarter, citing heightened ad demand linked to sporting events and holiday seasons, with the impending US election poised to amplify this scope: "The final quarter is always an exciting time for the business, buoyed by strong advertising demand around sports seasons and the holidays."
University spinout life sciences firm Llusern Scientific boosted with equity investment
University spinout firm Llusern Scientific, which has developed a rapid diagnostic test for urinary tract infections (UTIs), has been boosted with a six-figure equity round investment. The Cardiff-based company - which spun out of the University of South Wales - has been backed by the Development Bank of Wales in its latest fundraise aimed at accelerating its commercialisation. Since the start of the year the development bank has invested in six spinout firms with a combined value of £1.7m. The others include Swansea-based Corryn Biotechnologies and Grove Nanomaterials along with Awen Oncology, a spin-out of Bangor University and Cardiff University. Cardiff Metropolitan University spinout Kaydiar and Cardiff University spinout Optimise.ai. Llusern Scientific was established by microbiologist Dr Emma Hayhurst and molecular geneticist Dr Jeroen Nieuwland after they were awarded a discovery award from the Longitude Prize and UK innovation agency NESTA to develop an affordable diagnostic tool to combat antibiotic resistance. Read More:The latest equity deals in Wales They were later joined by biomedical engineer Professor Ali Roula and diagnostic professional Martyn Lewis to develop Lodestar DX, a molecular diagnostic test system for both humans and animals that is non-invasive and capable of providing highly accurate results in 35 minutes. Chief executive of Llusern Scientific, Dr Hayhurst said: “UTI prevalence is rising with an ageing population and the increase in antibiotic resistant infections. The gold standard for UTI diagnosis is microbiological urine culture and, in the UK, millions of urine tests are processed and cultured each year. However, a major drawback of urine culture systems is the time lag of approximately two days between specimen collection and pathogen identification. Fast and accurate diagnosis, leading to a rational treatment, is essential to achieve a timely and effective therapy. “Our rapid and easy-to-use UTI test-kits are fully developed and commercially available in the UK, with a real-world evaluation underway within the primary care sector. They decrease the time involved in getting an accurate diagnosis and provide clinicians with the evidence they need to make informed treatment decisions. We hope that this will improve antibiotic stewardship and patient outcomes, resulting in fewer GP visits and hospital admissions associated with urinary tract infections. The same principals apply to the veterinary market. “However, we wouldn’t be preparing to take Lodestar DX to market without investment. Commercialising academic research requires the support of forward-looking funding partners like the Development Bank who can provide patient capital and access to an established ecosystem. It’s what will enable us to scale and grow.” Harry George, assistant investment executive with the Development Bank. He said: “Supporting technology-focussed start-ups with high growth potential like Llusern is exactly where our equity funds can make a real difference. We look forward to working with Emma and the team to scale the business here in Wales.” Carl Griffiths, technology seed fund manager with the development bank, said: “Boosting business innovation will help to drive sustainable growth and long-term prosperity. University spinouts often have high-growth potential which is why we are working closely with our partners in higher-education to ensure that capital is available to help bring University research to market and support commercialisation. “Most of the university spinouts are clustered around the “golden triangle” of London, Cambridge, and Oxford but we want to strengthen the pipeline of spinouts in Wales, providing the funding necessary for them to commercialise research, grow faster and attract further investment. From the emerging AI sector to healthcare and life sciences, some of the world’s most valuable and best-known companies have been founded at universities.”
Filtronic points to more contracts in the pipeline as expansion takes shape
Communications tech firm Filtronic says it is in advanced discussions for yet more contracts in the space, aerospace and defence markets. The growing County Durham business - which has operations in Leeds - told investors it hopes to share news of new work soon and has also secured some smaller development contract wins in recent months. Bosses pointed to wins in the space market, coming on the back of recent investment in plastic encapsulation machinery at its Sedgefield base which followed encouragement by its lead defence customer. Ahead of the firm's annual general meeting, Filtronic said its manufacturing output has ramped up and quality requirements are being met following a flurry of orders under its agreement with rocket and satellite giant SpaceX. The work has been to support the US firm's gateway link rollouts as it grows its Starlink constellation of low earth orbit satellites that can deliver internet connectivity in hard to reach places. Filtronic's components - E-band Solid State Power Amplifiers - have also been used to retrofit existing gateway links to increase bandwidth and lower latency in the systems. Bosses said the first half 2025 performance is expected to be stronger than the second as the retrofit work completes and it focuses extending the network. In an update to the London Stock Exchange, Filtronic said: "Engineering developments on our technology roadmap have been progressing well. We recently launched our W-band SSPA at the European Microwave exhibition whilst the development of our Gallium Nitride V-band chipsets have delivered a very encouraging set of results. "These chips will be key to transceiver and SSPA product development at this frequency, with a strong inflow of market interest in the SSPA which has application in the space market where it is highly likely to be a widely adopted frequency band by key players for communication links. We have enjoyed recent success in recruitment of engineers into our team as we have exciting work for talented people. "This is key to unlocking growth potential in the business to service the technology roadmap, opportunity pipeline and customer developments. This has enabled us to run multiple projects in parallel including the developments for the European Space Agency, QinetiQ and BAE."
Sedgefield tech firm Filtronic to launch new design centre at Cambridge Science Park
Telecoms tech business Filtronic has announced plans to launch a new base in the South East. The Sedgefield-based company designs and manufactures products and sub-systems for the aerospace, defence, telecoms infrastructure and space markets from its NETPark and Leeds bases, and its has accrued a number of significant contract wins in recent months, including with Elon Musk’s SpaceX firm. Now the firm has announced it is adding a new engineering design centre at the Cambridge Science Park, which is Europe's largest centre for commercial research and development. The firm said the new location positions it in one of the UK’s most dynamic technology clusters, reinforcing Filtronic’s commitment to advancing its expertise in space and defence communications. Cambridge Science Park will give Filtronic access to a network of key industry players, research institutions, and skilled radio frequency engineering talent, allowing it to action its growth plans, it said. The park will also enable Filtronic to boost its technical capabilities, foster collaboration, and ramp up product innovation in high-frequency communications. CEO Nat Edington said it will also enhance Filtronic’s ability to support new and existing clients in the region, while giving it a base for collaborative projects aimed at pushing the boundaries of RF and mmWave technology. Mr Edington said: “Opening an office at Cambridge Science Park is a pivotal step in our growth strategy. Cambridge’s thriving ecosystem of technology and innovation is an ideal environment for Filtronic as we continue to develop resilient, high-performance solutions for demanding environments. This expansion underscores our commitment to investing in the future of UK engineering and supporting the country’s ambitions in space and defence.” Last week Filtronic told investors it hopes to share news of more contracts in the space, aerospace and defence markets having secured some smaller development contract wins in recent months. Filtronic said its manufacturing output has ramped up and quality requirements are being met following a flurry of orders under its agreement with rocket and satellite giant SpaceX.
Wise's shares soar as customer growth fuels 51% profit surge, plans to cut fees further
Wise has reported a significant increase in profits, buoyed by an expanding customer base and strategic price reductions. For the six months ending on 30 September, the London-based fintech company announced a pretax profit of £292.5m, marking a substantial 51 per cent rise from the £194.3m recorded in the corresponding period the previous year, as reported by City AM. Following the announcement, Wise's shares soared by as much as 8.1 per cent in early Wednesday trading, reaching their highest point since June. The surge in Wise's profits can be attributed to a 25 per cent growth in active customers, now totalling 11.4 million. These customers transacted £68.4bn through the fintech during the six-month span, which is a 19 per cent increase compared to last year. Wise, known for its current accounts and international money transfer services, generates revenue by charging a modest fee for each transaction. The company's revenue climbed by 19 per cent to £591.9m over the half-year, while its cost of sales saw a five per cent decrease to £152.9m. Positioning itself as a challenger to traditional, expensive bank foreign exchange services, Wise boasts more than 65 licences, partnerships with over 90 banks globally, and direct connections to six payment systems. During this period, Wise highlighted its "limited reliance" on interest income, which nonetheless rose by 49 per cent to £230.2m, driven by higher central bank rates and a 23 per cent increase in average customer balances. Wise has announced its intention to return 80% of its interest income to customers, although it cannot directly pay interest to British users due to not being a licensed bank in the UK. The news follows shortly after Wise's CEO, Kristo Kaarmann, was fined £350,000 by the Financial Conduct Authority (FCA) for failing to disclose significant tax issues related to a share sale in 2017. Despite the fine, Kaarmann, who co-founded Wise in 2011 and led its public listing on the London Stock Exchange ten years later, has been cleared by the FCA to continue leading the company. Wise has seen a three percent dip in its stock price this year, with shares experiencing their largest intraday fall ever in June following warnings of slower income growth for the 2025 financial year due to extensive fee reductions. However, the company has maintained its financial outlook, projecting a pretax profit margin of 13% to 16% for the second half of the fiscal year, despite a higher margin of 22% in the first half. Wise attributes the expected decrease to investments aimed at reducing prices. Kristo Kaarmann commented on the company's progress, stating: "Over the last six months, we've made important steps in the enhancement of our infrastructure, which are going to contribute to further improvements to speed and unit cost over time," and added that "Wise will become increasingly faster, cheaper and more convenient an ideal infrastructure partner via Wise Platform." "To make this vision a reality, now is the time to invest in long term growth."
Tyneside's TSG acquires Aylesbury firm in 'multimillion-pound' deal
IT provider TSG has expanded its UK footprint with the acquisition of an accounting software firm in the South East. Gateshead-based TSG's purchase of Aylesbury-based Dayta is described as a multimillion-pound deal which will expand its reach into the education market. Dayta is a provider of accountancy software and financial management systems to schools and multi-academy trusts throughout the country. Its 17 staff will join TSG's workforce of more than 250, across offices on Tyneside, in Glasgow and London, with a number of new jobs said to be in the offing following the deal. The move follows a management buyout at TSG, announced earlier this year, in which CEO Rory McKeand and senior leaders at the firm partnered with investor Pictet Alternative Advisors which injected a significant amount into the business. That deal saw the exit of founders Sir Graham Wylie and executive chairman David Stonehouse, as well as other shareholders. In recent years the tech firm has seen the company record double-digit growth in both turnover and profits in recent years. TSG says it is in the market to make further strategic acquisitions that could help spur more growth. Mr McKeand said: "We’re delighted to have completed this key strategic acquisition in order to grow our existing footprint in the education sector. Dayta has a strong pedigree serving education customers, with a growing client portfolio of schools and multi-academy trusts that we will work with to strengthen our position in this key market. "Dayta is a high quality business that is well known for its technology expertise and high levels of customer service. Their business aligns neatly with the values of our company and its customers will be able to empower its educators and learners through our TSG Academy, which has worked with more than 500 organisations and delivered training to over 4,000 individuals. All Dayta customers will have access to our unique TSG Academy training to enable them to understand and get the best out of their technology. "Now that the acquisition is complete, there will be a seamless integration of Dayta’s clients into our business and no interruption in the high levels of service provided to them." Samantha Ayres, director at Dayta, said: "We are thrilled to get this deal over the line. We know TSG well and there’s a fantastic synergy between the two organisations. Our business was established with the aim of helping organisations streamline their operations through technology, a priority shared by TSG. They’re a Microsoft and cloud-focused national IT services provider of outstanding quality and we’re happy to be a part of their future growth trajectory."
Australia to ban all social media for under-16s
The Australian government has announced what it described as world-leading legislation that would institute a minimum age for children using social media. Australian youths will have to be aged 16 or older to use online social networks, with the nation’s government planning to hold platforms responsible and accountable to ensure compliance. “Social media is doing harm to our kids and I’m calling time on it,” Australian prime minister Anthony Albanese said. The legislation will be introduced in the nation’s parliament during its final two weeks in session this year, with the parliamentary sitting fortnight beginning on November 18. Mr Albanese told reporters that the age limit would take effect 12 months after the law was passed. Platforms including X, TikTok, Instagram, and Facebook would need to use that year to work out how to exclude Australian children younger than 16. “I’ve spoken to thousands of parents, grandparents, aunties and uncles. They, like me, are worried sick about the safety of our kids online,” Mr Albanese said. Social media platforms would be penalised for breaching the age limit, but underage children and their parents would not. “The onus will be on social media platforms to demonstrate they are taking reasonable steps to prevent access. The onus won’t be on parents or young people,” Mr Albanese said. Head of safety at Meta Antigone Davis, the company behind Facebook and Instagram, said its platforms would respect any age limitations the government wants to introduce. “However, what’s missing is a deeper discussion on how we implement protections, otherwise we risk making ourselves feel better like we have taken action, but teens and parents will not find themselves in a better place,” Ms Davis said in a statement. She added that stronger tools in app stores and operating systems for parents to control what apps their children can use would be a “simple and effective solution.” X did not immediately respond to a request for comment on Thursday. TikTok declined to comment. More than 140 Australian and international academics with expertise in fields related to technology and child welfare signed an open letter to Mr Albanese last month opposing a social media age limit as “too blunt an instrument to address risks effectively.” Jackie Hallan, a director at the youth mental health service ReachOut, opposed the ban. She said 73% of young people across Australia accessing mental health support did so through social media. “We’re uncomfortable with the ban. We think young people are likely to circumvent a ban and our concern is that it really drives the behaviour underground and then if things go wrong, young people are less likely to get support from parents and carers because they’re worried about getting in trouble,” Ms Hallan told the Australian Broadcasting Corporation (ABC). Child psychologist Philip Tam said a minimum age of 12 or 13 would have been more enforceable. “My real fear honestly is that the problem of social media will simply be driven underground,” Mr Tam said.
ITV Studios revenue drop impacts profits despite advertising gains
ITV studios has reported a decline in revenue due to the ongoing impact of the US writers' strike, which has led to a decrease in profits. Despite cost savings and an increase in advertising revenue, these were not enough to counterbalance the fall. The company's share price experienced a nearly eight per cent drop in early trading, as reported by City AM. Group revenue for the first nine months of the year decreased by eight per cent, falling to £2.7bn from £2.9bn in 2023. Revenue at ITV Studios, known for producing Ludwig for the BBC and Rivals for Disney+, saw a 20 per cent decrease in the year to date, amounting to £1.2bn. ITV attributed this drop to the scheduling of deliveries with more shows planned for the fourth quarter than the third and the 2023 US writers' and actors' strike. The broadcaster anticipates that revenue will continue to decline in the mid-single digits over the full year. However, ITV stated that despite these challenges, ITV Studios is still "on track" to deliver record adjusted earnings before interest, tax and amortisation in the full year, thanks to efficiency gains and a "significant" fourth-quarter delivery schedule. Productions set for the fourth quarter include Shetland for the BBC, Grace S5 for ITV, and The Forsytes for PBS Masterpiece. In terms of advertising revenue, ITV reported that it remained flat in the third quarter, although they expect full-year revenue to increase by 2.5 per cent. The broadcaster noted that fourth-quarter advertising bookings were affected by uncertainty leading up to the UK budget. ITV has set its sights on achieving £20m in net cost savings next year, with plans to cut content costs by £10m and implement non-content savings of another £10m ahead of schedule in 2024, rather than in 2025. These strategic measures are expected to contribute to an uplift in the group's profits for the current year. Chief Executive Carolyn McCall shared an optimistic perspective, remarking, "ITV's good strategic progress has continued in the first nine months of 2024 driven by strong execution and industry leading creativity." Despite adverse factors, McCall highlighted ITV Studios' robust performance stating, "ITV Studios is performing well despite the expected impact of both the writer's strike and a softer market from free-to-air broadcasters. ITV Studios has had an excellent start to the fourth quarter, in line with expectations, which will ensure it achieves record profits in 2024." She further noted the success of ITVX, pointing out, "ITVX continued its strong performance, delivering double-digit growth in streaming hours and digital revenues. ITV maintained its unique position in linear television through the quality and breadth of its schedule, and ITV1 was voted Channel of the Year at the Edinburgh TV Awards."
Revenues and earnings rise at Vianet following investment in US business operations
North East drinks and vending tech specialist Vianet said it is looking ahead with optimism, having seen half-year revenues and earnings rise following investments in its US business. The Stockton firm published a trading update for the six months ended September 30, including revenues increasing from £7.19m to £7.69m, and Ebitda rising by 26.6% from £1.22m to £1.55m. The group said recurring revenues account for 84% of total income, supported by healthy gross margins of 67% slightly down on comparable period’s 69%, and said the growth comes after a strategic investment of £250,000 in its Beverage Metrics Inc operation in America, underscoring its commitment to strategic and geographical expansion. The note to shareholders highlighted an adjusted operating profit rise of 10.1% to £1.43m, and cash generation after working capital of £1.92m, up from £1.28m. Net debt has been more than halved from £2.09m to £1m and cash balances have increased to £2.25m from £1.32m. The group said expansion into new industry vertical is advancing well, particularly in the forecourt sector, where it is seizing promising opportunities among manufacturers and retailers. In its unattended retail division, the company's transition from 3G to 4G has led to a substantial pipeline for 4G LTE readers, but the slow pace of 3G shutdown by mobile network operators has impacted short-term pipeline conversion. James Dickson, chair and CEO of Vianet, said: “We are witnessing a notable improvement in the group’s performance, driven by our strategic investments in sales, technology, new market verticals, and expanded product lines. These initiatives, along with our strategic partnerships, have established a strong foundation for growth, unlocking exciting commercial opportunities across all areas of our business. "Our collaboration with Suresite, alongside the recent exit of a competitor is creating substantial new opportunities within the unattended retail sector, particularly in expanding our market share and subscription revenues. While the slow pace of the 3G network shutdown presents certain short-term challenges, it has not impeded our ability to build a strong pipeline. We remain optimistic about our capacity to double the size of this business within the next 18-24 months. “Our US acquisition, Beverage Metrics Inc, acquired in May 2023, is now fully integrated, enhancing our leading beverage management solution and driving growth in both the UK and US hospitality markets. With our US operations continuing to progress towards profitability, we are encouraged by the advancements and high engagement levels in key customer pilot programs in this significant market.
Alphabet's Google Cloud division drives revenue surge, beating market expectations
Alphabet, Google's parent company, has announced a surge in revenue for the third quarter, largely driven by its robust Google Cloud division. The tech giant revealed in its latest financial report that revenues hit a remarkable $88.3bn (£67.8bn), marking a 15% uptick from the previous quarter, as reported by City AM. Yet the increment in Alphabet's cornerstone advertising business didn't keep pace with the rest of the group. Year-on-year, the firm witnessed a more modest ad revenue rise of 10.4%. Both search advertising and Youtube ad earnings saw an identical climb of 12.2%, taking ad revenues to $49.9bn (£38.3bn) while Youtube raked in $8.9bn (£6.8bn). According to Hargreaves Lansdown senior equity analyst Matt Britzman: "This is arguably Alphabet's biggest question mark, as the major unknown is what happens to Google search in the world of AI. This quarter was important as it marked the first full period where Google's AI overviews were up and running in the US." Tech analyst at Quilter Cheviot, Ben Barringer, commented: "While threats are very present in the background, Alphabet continues to innovate and improve its offerings to customers in what is a buoyant digital advertising market". Alphabet has also been facing upward financial pressure due to increased spending on AI technology. With a 62% year-on-year increase, capital expenditures have soared to $13.1bn (£10.1bn). Alphabet's CFO, Anat Ashkenazi, disclosed expectations for substantial hikes in capital expenditure come 2025, as the company aims to balance hefty AI investments against cost control measures. Barringer went on to say: "As we look forward, we are working to balance our investments in AI and other growth areas with the cost discipline needed to fund those investments." Alphabet's net income reportedly surged to $26.3bn (£20.2bn), marking a 33.6 per cent increase from the third quarter of the previous year. Following the announcement, Alphabet's shares saw a 5 per cent rise in after-hours trading. Ben Barringer, Tech Analyst at Quilter Cheviot, commented: "Given the medium and long-term threats at play for Alphabet- the Department of Justice and AI agents these are a very clean set of numbers.Britzman concluded by saying: "[Alphabet] hasn't disappointed. cloud growth was strong, and better than expected, which continues to support the argument that the major cloud providers are well-placed to benefit from the AI revolution."
New business group launched to boost digital skills
A new business group has been launched with the aim of improving skills within the region's tech sector. Called the West Midlands Digital Skills Consortium, it comprises a host of businesses and organisations with the aim of boosting knowledge and offering advice and guidance to employers. Founding members include business body TechWM, West Midlands Combined Authority and tech giant IBM, working under the leadership of digital skills director Victoria Pargetter-Garner from TechWM. The consortium said the initiative was aiming to address what it called "the urgent need for a skilled tech workforce" in the West Midlands. It is hoping to bridge the region's digital skills gap and help local businesses and SMEs to thrive in a rapidly evolving economy. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Lord Kulveer Ranger, chairman of digital skills on the West Midlands tech and digital advisory board, will collaborate with the consortium to ensure its goals align with the broader tech strategy for the region. A working group of key members will meet regularly to discuss progress and make recommendations that will be fed back to the combined authority, academic institutions and training providers. The consortium said one of its major objectives was to develop a pipeline of digital talent. It will collaborate with educational institutions and training providers to design programmes in high-demand digital skills, such as coding, data analytics, cybersecurity and AI. The consortium is working with global tech firm IBM to offer a range of free digital programmes and training opportunities and also provide SMEs with guidance on how to attract, retain and develop tech talent. The West Midlands Digital Skills Consortium has been launched during Birmingham Tech Week which is holding events across the city all of this week. Speaking at the launch, Mayor Richard Parker said: "Our region's growing digital sector is key to creating new job opportunities, especially for young people. "Supporting young people into these careers is essential to tackling youth unemployment and I'm committed to working with the tech sector to meet their needs. "I also encourage businesses to step up by offering work experience, training and apprenticeships to help young people get started." Ms Pargetter-Garner added: "The launch of the Digital Skills Consortium is a pivotal moment for the West Midlands. "This initiative not only positions our region at the cutting edge of technological advancement but also reinforces our commitment to creating a future-ready workforce.
Founder of AI firm working with Google and Zoom named among UK's 'most ambitious' bosses
The London-based founder of a fast-growing AI company has been named one of the "most ambitious" bosses in the UK. Yomi Tejumola established Algomarketing 2017 while working as a data scientist at Google to automate "mundane" tasks. The business now operates in 27 countries across six continents and counts tech giants Cisco, Google and Zoom among its customers. Mr Tejumola was recognised in a list of the top 50 most ambitious leaders of 2024 by LDC - an arm of Lloyds Bank - in partnership with the Times. All the entrepreneurs featured in the rankings are at the helm of high-growth companies that are creating jobs, promoting social equality, championing sustainability or expanding internationally. “It’s an incredible honour to be recognised as an LDC Ambitious Business Leader this year," said Mr Tejmola. "Since starting this journey in 2017, I’ve been on a mission to restore joy to the world of work. Through Algomarketing, I’ve built a global network of 200 Algos (or marketing super talent) who we deploy into big tech brand marketing operations globally. "By unlocking the power of algorithmic marketing, we can remove the 80% repetitive and mundane tasks that many marketers experience in their day-to-day roles. I'm striving to build a future where marketers leverage AI and automation to not only make them more productive, but improve their work-life balance, creativity, and general wellness." Algomarketing generates 65% of its revenue from outside the UK and has said it expects to reach a turnover of £150m by 2030.
Klarna adds big name UK partners as buy now, pay later boom continues
Klarna has reported a significant expansion in its network of UK merchants, evidencing a robust demand for buy-now pay-later (BNPL) services among British shoppers, as reported by City AM. As of October, the Swedish fintech company boasts 41,496 merchant partners in Britain, a substantial increase from approximately 30,000 a year prior, according to figures Klarna shared with City AM. Key partnerships established by Klarna within the last year include high-profile UK names like Argos, Airbnb, and the digital platforms of Boots. Generating most of its revenue through merchant fees, Klarna is pursuing growth across new sectors within the UK market. Last month, it unveiled a collaboration with small business platform Xero, potentially enabling BNPL options for services such as plumbing and automobile repairs. Moreover, Klarna is aiming to extend its reach into brick-and-mortar retail. It's working with financial technology titan Adyen to integrate Klarna as a payment method across Adyen's over 450,000 payment terminals. The rise in BNPL providers like Klarna, Zilch, and Clearpay has been strikingly swift, especially as they offer mostly interest-free installment loans an appealing credit card alternative that's captivated millions in the UK. On Tuesday, Klarna announced that close to 10 million UK customers had used its services over the past year across its range of products. "Klarna's come a long way from the small rented office in Carnaby Street where we launched in the UK ten years ago," said Raji Behal, head of Western, Southern Europe, UK & Ireland at Klarna, in a statement to City AM. We now facilitate one in every 10 British retailers. However, we're still only a small fraction of credit card spend, so we're looking forward to the next decade of continued growth. Although Klarna is best known in Britain as the country's leading BNPL provider, it highlighted that around 30 per cent of its global transactions are for full payment. The firm announced that the worldwide number of retailers offering Klarna has exceeded 600,000, marking an approximate 20 per cent increase from around 500,000 in August 2023. It further revealed that an average of about 90,000 new users try Klarna each day. BNPL remains unregulated in the UK. While large companies have voluntarily implemented safety measures such as credit checks, consumer groups have cautioned that individuals risk accumulating debt from late repayment fees spread across multiple providers. Klarna's UK network expansion comes as it strives for more profitable growth by eliminating thousands of jobs with the assistance of artificial intelligence (AI). Klarna hasn't posted an annual profit since 2018 when it aggressively ventured into the lucrative US market. However, the company has made strides on its bottom line this year, swinging to an adjusted profit in the first half of 2024. In August, it was reported that Klarna was in preliminary discussions with investors to assess their interest in a secondary share sale as it prepares for a highly-anticipated stock market debut. The potential sale of shares could enhance its valuation, which plummeted to $6.7bn in 2022 from a stratospheric $45.6bn the previous year after venture capital investors were unnerved by rising interest rates. According to sources, Klarna has engaged with several prominent Wall Street banks to discuss a potential IPO in New York that might take place as early as the first half of the following year.