Plastics firm Coral Products brings back dividend and plots acquisitions

Manufacturing

Designer eyewear maker Inspecs expects drop in performance

Bath-based designer eyewear manufacturer Inspecs is expecting a drop in its financial performance for the first half of the year. The company, which makes sunglasses, optical frames, lenses and low-vision products, made the announcement in a trading update for the year ending December 31, 2024. Inspecs said revenue and EBITDA - a measure of a company's overall financial performance - for the first half of 2024 would be lower than the previous year and more in line with historic trading. The AIM-listed business said the "record result" for the the first half of 2023 was partly due to elevated levels of ordering as retailers sought to boost inventory post-Covid. Inspecs, which issued the statement following its annual general meeting, also announced the launch of its first in-house designed direct-to-consumer gaming eyewear range in London. The group said it would benefit from extra capacity in the new facility in Vietnam in the second half of 2024. Like this story? Why not sign up to get the latest business news straight to your inbox. "We expect momentum to improve across the group's markets and to benefit from increased distribution and ongoing operational efficiencies," Inspecs said in a statement.

Manufacturing

Marston's offloads brewing arm to focus on pub business

Legendary beer maker Marston's has offloaded its brewing arm in order to focus on the pub side of the business. The Wolverhampton-based company has agreed to sell its holding of a joint venture with the UK arm of Danish giant Carlsberg. Called the Carlsberg Marston's Brewing Company, the partnership makes brands including Hobgoblin and Pedigree. Marston's said it would receive £206 million to sell Carlsberg its 40 per cent stake in the joint venture. It comes four years after the two brewers created the UK partnership in a deal valuing the operation at £780 million as Marston's sought to focus more on its pub operation. 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. Among the venues Marston's operates in Birmingham are Lost & Found in Bennetts Hill, Bulls Head in Kings Norton and Farmer John's in Streetly along with the UK-wide Pitcher & Piano chain. Justin Platt, who became chief executive at Marston's at the start of the year, said: "This deal further strengthens our balance sheet, significantly reducing our debt by over £200 million. "Crucially, it allows us to become a pure play hospitality business and focus on what we do best - namely, giving our guests amazing pub experiences." Separately, Carlberg has agreed a £3.3 billion deal to buy Robinsons squash maker Britvic. The UK soft drinks firm, which also makes J2O and Tango, told shareholders it would recommend the latest deal. It is valued at £4.1 billion when debts are taken into account, having previously rejected a £3.1 billion offer.

Manufacturing

Aptamer Group seals two significant deals worth £235,000

Life sciences firm Aptamer Group has announced two significant deals worth a combined £235,000. The York based operator was launched on AIM in 2021 to maximise the potential of its Optimer binder technology in applications across life sciences and other industries. Its latest deal wins have seen it secure a contract valued at up to £175,000 with a top five pharmaceutical company, and a deal worth up to £60,000 with a global provider of specialty enzymes used widely throughout the life sciences sector. As part of the first contract, Aptamer will develop Optimer binders for use in immunohistochemistry applications. In a stock announcement Aptamer said that following development, the firm’s binders could be used to support the top five partner’s drug development pipeline, resulting in royalties and possible licencing revenues for Aptamer. The agreement marks the sixth contract with the pharmaceutical partner. The second contract will see Aptamer develop Optimer binders which will be incorporated into life science and diagnostic assay kits. Aptamer Group added it will “earn milestone payments upon successful commercialisation and downstream high single digit royalties from the gross sales of all kits containing the developed Optimer. Sales could commence as early as 2025”. Dr Arron Tolley, chief technical officer of Aptamer Group, said: “The repeat business from another of our top-five pharma partner validates the power of the Optimer platform to solve intractable problems associated with traditional ligands like antibodies in the area of immunohistochemistry (IHC) and supports our new business and patenting strategy. These smaller royalty bearing agreements to develop Optimer binders aligns with our business model to develop a diversified pipeline of technologies to deliver licence agreements across the life science sector. Unfortunately, due to confidentiality we cannot disclose the name of the partner or any other terms of the deal.

Manufacturing

Nissan road tests self driving technology with eyes on 2027 for market launch

Automotive giant Nissan has started road demonstrations of its own driverless technology, with a view to selling the services within several years. The Japanese manufacturer has showcased the tech on roads around its Yokohama headquarters ahead of plans to launch the systems to the market in 2027. Pictures have been released of a Nissan Leaf model equipped with 14 cameras, 10 radars and 6 LIDAR (light detection and ranging) sensors showing it driving through busy and complex roads in the city, south of Tokyo. The latest prototype features a large, roof-mounted system which incorporates sensors that expand the car's field of vision - making detection of its surroundings more accurate. Nissan says the advances have helped it improve the systems' ability to predict behaviours of pedestrians and other road users, make judgements, as well as enhance its overall control for a smoother ride. Read more: National Grid work paves the way for Sunderland gigafactories Read more: Arriva takeover by American investment group I Squared completes Technicians at the global manufacturer say the prototype has been able to safely change lanes when merging and judge when to drive into intersections. It follows autonomous drive testing in London, where Nissan has received UK Government support. The results are the culmination of several years' work, with Nissan saying it has studied business models for 'future mobility services' since its 2017 fiscal year. It now intends to build the functionality and to begin offering the autonomous drive services, initially in Japan, by 2027. Later this year it will start trials in the Minato Mirai area in Yokohama with further plans to carry out service demonstration tests within fiscal year 2025. The plan is to gradually increase the autonomous features of the systems as it builds customer confidence. Nissan said the work is being carried out in close cooperation with the Japanese Ministry of Economy, Trade and Industry; Ministry of Land, Infrastructure, Transport and Tourism; and other central ministries. A number of other major manufacturers have been developing autonomous driving systems, including Toyota, which has invested substantially in software development and research in the US. The sector's poster child, Tesla, has worked on autopilot and self driving technologies while General Motors-owned Cruise has developed self driving systems with Honda signalling it could bring hands free, driving assist features to the US market by 2030.

Manufacturing

Shield Therapeutics strikes £4.4m advance deal with investors AOP

Pharma company Shield Therapeutics says it has struck a deal with shareholder AOP to secure a $5.7m (£4.4m) cash sum that will "fortify" its balance sheet. The Newcastle-based business says the "monetisation" deal with its largest investor will also bring AOP's founder, Rudolf Widmann to its board as a non-executive director. Shield told the London Stock Exchange the sum is in exchange for right to receive the $11.4m (£8.9m) China approval milestone payment that may be paid to Shield by ASK Pharma, the firm's commercial partner in China for its Accrufer iron deficiency tablets. ASK is enrolling patients onto a study and subject to its success and approval by the Chinese regulator, Shield is in line for a milestone payment. The firm thinks that is likely to come in 2026 but if it does not, Shield will need to repay the advance plus interest. Read more: Two global media giants set to launch North East bases after Quorum Park office deal Read more: North East deals of the week: key contracts, acquisitions and investments Greg Madison, Shield CEO, said: "We are pleased to work with AOP on this milestone monetization agreement to bring in additional capital to support our growing business. We are encouraged by the recent Accrufer commercial trends in the US and will continue to be opportunistic to further support our growing business. This agreement, following our recently announced Sallyport deal, provides us with additional operational and financial flexibility. The $5.7m, along with approximately $8m cash on hand at the end of May 2024 allows us to further fortify our balance sheet and expand our working capital. "It is also a pleasure to welcome AOP's founder, Dr. Rudolf Widmann, to the Shield board of directors. I believe that Rudi's strong track record of building a successful pharmaceutical business and strategic perspective will complement Shield 's current board of directors." Dr. Widmann, founder of AOP, is said to be an experienced pharmaceutical scientist and entrepreneur who has focused on treatment of patients with rare diseases. He started AOP in 1996, first serving as the company's chief executive officer and chief therapeutics development officer and then being elected to the board of AOP Health Group.

Manufacturing

Tumble dryer factory could close, putting 150 jobs at risk

A tumble dryer factory in South Gloucestershire could be closed down, putting 150 jobs at risk. Beko Europe confirmed that its subsidiary - Hotpoint UK Appliances - has entered consultation with staff over its facility in Yate. The site currently produces tumble dryers for the UK and Ireland markets. Beko said its products had become "less popular" with consumers who now favoured more energy efficient appliances. It also said the UK was "likely" to adopt EU legislation that means new tumble dryers need to be produced using heat pump technology. "Beko Europe’s proposal, subject to consultation, is that it is not technically or economically feasible to remodel the Yate site to continue operations", the company said in a statement. "It is for these reasons that Beko Europe has announced that its subsidiary will enter into a consultation to explore potentially closing the facility." Beko said staff at Yate would be employed by the company on full pay and benefits while the process was ongoing. Teresa Arbuckle, regional managing director (UK and Ireland) at Beko Europe, said “We know this news will be difficult to hear for our employees, on-site contractors, and the whole community. The Yate site has a superb workforce, with real commitment and strong leadership, and we are grateful for their continued efforts during this challenging time. "The facility has been operating at a significant loss for some time, and over the past few years, despite continued investment in the site, demand for the appliances produced here has rapidly decreased as consumers purchase more advanced and energy efficient models." Beko Europe said it would support employees who may potentially be affected. Unite regional officer John Sweeney said: “The union will be ensuring our members’ best interests are the priority and demanding Beko leaves no stone unturned in seeking alternatives to closure. The potential closure of the Hotpoint factory is deeply worrying news all the workers employed at the site. Unite will now be offering support to our members and entering consultations with the company.” Claire Young, Liberal Democrat MP for Thornbury and Yate, added: “The news will have come as a shock to people, this site has been a local provider of employment for more than 100 years so it has a special place in Yates history.”

Manufacturing

Founder of North Somerset plastics firm retires at 59 after selling off business

The founder of a plastics fabrication business which started life in a barn near Bristol Airport more than 30 years ago has retired after selling the company to new owners. Colin Vye established Marcol Fabrications (Plastics) with business partner Mark Godfrey in 1990, helped by a loan of just £9,000, in a farm building on Row of Ashes Lane in Redhill. The company, now based in Nailsea, North Somerset, has a 14-strong workforce and was turning over more than £1.5m when sold to Safety Critical Plastic Solutions Group for an undisclosed sum. Mr Vye, who lives in Portishead, retired aged just 59 following advice from accountant Tim Bowden at Bristol SME specialists Haines Watts. “It’s the last leg of an amazing journey in business,” said Mr Vye. “When Mark and I started we were like a lot of entrepreneurs – great at what we could do but winging it a bit on the business strategy and doing whatever we needed to do to survive. “We didn’t want our clients seeing our premises so we’d drive up to places like Yorkshire for meetings, pretending we were in the area anyway. We did lots of overtime, sacrificed a great deal but never let go of our belief and our passion. We’ve been supported by some great advice along the way and I’m proud of what we’ve achieved.” Mr Vye has said he is now planning to spend more time at home, in the gym and travelling. “We’re delighted to have helped Colin exit the company he founded and to have reached a satisfactory conclusion to his business career," added Mr Bowden.

Manufacturing

Concrete Canvas lands its biggest ever US export orders

A South Wales manufacturer has secured its biggest US export deal to date worth over £1.1m. Pontyclun-based Concrete Canvas, which manufactures innovative flexible concrete fabric, signed the milestone deal as part of its wider expansion in the US, which includes lining canal networks across the West Coast. The company is eyeing significant further expansion in the US as a route to export growth, having partnered with more than 12 new distributors in the country in the last 12 months. The deals will provide it with access to hundreds of new clients and Concrete Canvas expects its sales in the US to triple by 2026 as a direct result, accounting for 30% of its overall exports. Read More: Latest equity deals in Wales Read More: Trade sale dominate Welsh exit deals Founded in 2005 the firm’s innovative concrete fabric sets to form a thin, durable and waterproof layer. The product is used in construction and provides over seven times greater abrasion resistance than traditional poured concrete, as well as lower carbon emissions and a faster installation time. Exports currently account for over 85% of the company’s trade, with its products sold in over 100 countries across Australia, North America, Europe and South East Asia. In recent years, it has set up six international offices off the back of its export success including in Kuala Lumpur, Dubai, Milan, Budapest, Houston and Sydney, with clients including Mott Macdonald, Jacobs, Aecom and Atkins. Concrete Canvass, which employs 70 full time staff, is now set to further grow its global presence by working with a range of international irrigation ministries following the launch of its new product, CCX, which has been designed to line canal infrastructure to prevent erosion and reduce water seepage loss. As it stands, approximately 30% of the world’s irrigated water transported via canals is estimated to be lost due to canal leakage – something Concrete Canvas hopes to change. Will Crawford, director at Concrete Canvas said: “Our exporting journey is going from strength to strength across many different markets. Not only are we seeing ongoing expansion in the US, with our biggest deal to date breaking ground this month to install our innovative CCX product, but we are also seeing growth in central Asia and Europe, in regions where water scarcity is prevalent.” Concrete Canvas said its export success has been supported by its regular presence at international trade shows and trade missions, supported by the Welsh Government. Looking ahead, the company hopes to target more business in North America, India and central Asia, which it sees as key growth markets. Mr Crawford added: “A huge part of our success has been meeting prospective partners and clients in international markets. Entry into new international markets can sometimes present challenges, especially when it comes to educating the market on the new, innovative materials that we produce. Having people on the ground, combined with the right support at home, has been invaluable to us in gaining entry and, ultimately trust, in new territories.”

Manufacturing

Baker & Baker invests £2.9m in its cookie production line in Merseyside

A bakery giant has invested millions in its cookie factory as demand for its biscuits keeps growing. Baker & Baker has spent some £2.9m on its “American Bakery-style cookie” lines at its UK headquarters in Bromborough, Wirral, to increase capacity. Baker & Baker launched in 2021 as the successor to CSM Bakery Solutions, following the sale of the sister CSM Ingredients business. It employs more than 2,500 people across six European countries, selling across Europe and into the Middle East and North Africa. GENERAL ELECTION: Take our BusinessLive North West election survey The group has its own brands including Goldfrost and Molco, and also makes branded bakery products through exclusive licensing partnerships with Disney and Mondelēz. It supplies doughnuts, muffins, brownies, cookies and cakes to customers in the retail, food service, wholesale and artisan bakery sectors. Baker & Baker started work in January at its plant in Stadium Road, Bromborough, which employs 550 people. Inside the bakery, new machinery installed includes a wirecutter, mixer and mixing bowls and weighing hoppers. Meanwhile two bulk silos have been installed to hold sugar and flour, while eight jobs were created to manage the extra capacity on the production line. John Lindsay, CEO at Baker & Baker, said: “We have extensive capabilities in manufacturing cookies across a variety of flavours and formats, and we continue to see strong demand from customers in the UK and Europe for both our own-brand and licensed cookies. “This investment was necessary to ensure we have the requisite capacity to service customers both now and in the future, whilst maintaining the quality of product that our consumers expect.”

Manufacturing

Robinsons and J2O maker Britvic rejects £3.1bn takeover bid from Carlsberg

Robinsons squash and Tango maker Britvic has rejected a £3.1bn takeover bid from Danish beer giant Carlsberg. The soft drinks group saw its shares jump by as much as 15% on Friday after the Carlsberg approach was revealed. Britvic said it received a proposal from Carlsberg for the whole business on June 11 valuing the company at 1,250p per share, or £3.1 billion. But Britvic said the approach “significantly undervalues Britvic, and its current and future prospects” and rejected the bid days later. It came a week after it rejected a 1,200p per share approach from Carlsberg. Read more: Northern leaders urge next Government to commit to infrastructure plan Learn more: Sign up to our BusinessLive newsletters here Britvic has its headquarters in Hertfordshire and factories in Rugby, London and Leeds, as well as offices in Tamworth and Solihull. Its own brands include Fruit Shoot, J2O, Robinsons and Tango, while it has exclusive licences to make and sell PepsiCo brands including 7UP, Lipton Ice Tea, Pepsi MAX, and Rockstar Energy. Britvic told shareholders: “The board remains confident in the current and future prospects of Britvic. “It recognises its fiduciary duties and will consider any further proposal on its merits. “There can be no certainty that any firm offer will be made for the company, nor as to the terms of any such offer, should one be made.” Carlsberg issued a separate statement to its investors confirming the move. The Danish company said: “Carlsberg believes that the proposal represents a compelling opportunity for Britvic shareholders to realise their investment in full in cash at an attractive valuation. “Carlsberg believes that the potential transaction would enable it to capture appealing long-term growth opportunities from Britvic’s comprehensive portfolio of leading brands in an attractive segment of the beverage market where Carlsberg already has a strong track record.”