April 2025

WARWICKSHIRE MEANS BUSINESS

A round up of latest local news-in-brief...

Revenues up at video game developer but losses remain after challenging market conditions 

Revenues increased at Leamington-based developer and publisher of video games Kwalee during its latest financial year, but pre-tax losses remained following a "challenging period" for the market. Kwalee is behind several prominent titles such as Draw It, Shootout 3D, Jetpack Jump, Rocket Sky!, and Bake It and Line Up: Draw the Criminal. The company was founded in 2011 by David Darling, who previously co-founded and led Codemasters. It has posted revenues of £32.2m for the year to 31 June 2024, up from £31.4m in 2023.  

https://www.insidermedia.com/news/midlands/revenues-up-at-video-game-developer-but-losses-remain-after-challenging-period-for-the-market 

Polestar boss on 76% sales uplift and push for more showrooms 

Some 12,000 Polestars were sold in Q1 up from 6975 in the same period of 2024, with one in four were sold in the UK. There is a “renaissance of retailers” happening in the industry according to the boss of Polestar, who credits the firm’s recent increase in sales with having more physical retailers and people selling its cars. Polestar started as an online-only brand with limited physical presence but CEO Michael Lohscheller, who took the top job last October, is overseeing a roll out of a physical retail network that is doing “active selling”. Polestar plans to go from nine retailers today to 17 in the next 18 months in the UK. New showrooms in Glasgow, Sheffield and Southampton have opened in the UK in the past year. Polestar has a large R&D presence in the UK, based at Ansty Technology Park and MIRA Technology Park, near Nuneaton. 

https://www.autocar.co.uk/car-news/business-car-sales/polestar-boss-76-sales-uplift-and-push-more-showrooms 

Aston Martin shares fall after Trump tariff announcement 

Aston Martin's shares have fallen following the announcement by President Donald Trump of 25 per cent tariffs on car imports to the US.  The announcement from the US president was described by SMMT chief executive as "not surprising but, nevertheless, disappointing".  

https://www.insidermedia.com/news/midlands/aston-martin-shares-fall-after-trump-tariff-announcement 

University of Warwick Science Park Impact Report Reveals Significant Role Played by UWSP 

The University of Warwick Science Park (UWSP) has supported the creation of more 150 jobs last year, according to its Impact Report for 2023/24. The Impact Report shows occupancy has risen by 8 per cent across its sites at the University of Warwick, the Warwick Innovation Centre, the Business Innovation Centre in Binley, and Blythe Valley Innovation Centre near Solihull. A total of 152 businesses now call the Science Park home, with 16 of these having come through its Ignite incubator programme which gives start-ups flexible and affordable space, as well as tailored advice. The report also revealed the Science Park helped companies raise £11.2m in equity, grants and debt, while its business support services reached 890 companies, helping to create 153 jobs. 

https://www.insidermedia.com/news/midlands/university-of-warwick-science-park-supports-creation-of-more-than-150-jobs 

CVC-backed infrastructure giant swoops for Telent 

Technology infrastructure giant Telent is set to be acquired by M Group, the CVC-backed infrastructure services provider. It marks a move into the technology services market for M Group, which provides infrastructure services across water, energy, rail & aviation, highways and telecom to private and public sector organisations. Warwick-headquartered Telent, which once formed part of industrial titan Marconi, had joined PE firm JC Flowers, following a deal involving Pension Insurance Corporation. 

https://www.thebusinessdesk.com/westmidlands/news/2096982-cvc-backed-infrastructure-giant-swoops-for-telent 

Armstrong Group Running with the Gazelles - The Midlands’ super-growth businesses revealed 

Exhall based auto supply chain company Armstrong Group identified by Insidermedia as a Top 5 Midlands Gazelles - those businesses with multi-year turnover growth. To make the list, a company has had to have shown more than 20 per cent annual growth in turnover consistently over three years, with a turnover of £1m or more, according to their results Companies House. Armstrong Group, formerly known as ABN Brightware and based on Bayton Road, now makes the aluminium chassis for the new six-cylinder Morgan, and in recent years carbon fibre components for the Rolls Royce Trent 900 engines, as well as its more traditional markets of Brightware for luxury brands like Bentley and McLaren. 

https://www.insidermedia.com/news/midlands/here-are-the-gazelles-we-list-the-midlands-super-growth-businesses 

Lotus to be a single company again after ownership change 

Lotus will become a single company again as owner Geely merges the UK-based sports car division with the Chinese 'lifestyle' electric car division. The two have been separate since Geely spun off Lotus Technology ahead of listing it on the stock market in 2023. Now Lotus Technology will buy out Geely’s 51% share of Lotus UK in a move “that will enable the company to integrate all businesses under the Lotus brand”. Lotus Engineering has a base at the LATC Lotus Advanced Technology Centre at Wellesbourne.  

https://www.autocar.co.uk/car-news/business-corporate/lotus-be-single-company-again-after-ownership-change 

Revenues and profits dip Allen Ford on challenging time for the automotive market 

Revenues and profits have dipped at Warwick-based car dealer which has sites across the UK and dates back to 1910, according to new documents, following a financial year in which registrations remained "substantially lower than pre-Covid levels".  

https://www.insidermedia.com/news/midlands/revenues-and-profits-dip-at-historic-car-dealer-in-challenging-time-for-the-automotive-market 

DPD Looks to Move Beyond HVO to Full EV as it begins road trial of electric HGV 

Parcel delivery company DPD is conducting a trial of a MAN electric HGV, with the hope of rolling out heavy-duty electric trucks later this year. The MAN eTGX has a range of up to 497 miles and a charging capacity of up to 750 kW. It will be based at DPD’s Hinckley hub four before a full induction, training, and being assigned a route for operational testing. This follows when DPD converted the majority of its 1,600 HGVs to Hydrogenated Vegetable Oil (HVO) in 2023. 95 per cent of DPD’s HGV fleet is now running on HVO, reducing emissions by 83 per cent compared to https://greenfleet.net/news/08042025/dpd-begins-road-trial-electric-hgv 

Warwickshire businesses support another convoy of aid for Ukraine

A team of eight drivers travelled 1,500 miles to deliver three ambulances and a Land Rover, all loaded with medical aid, and 2,000 Easter eggs to help people in the war-torn country.

https://chalmersnewspr.co.uk/eight-volunteers-from-south-warwickshire-join-latest-convoy-of-aid-to-ukraine/

Delivery giant Yodel taken over in £106m deal 

Parcel delivery giant Yodel has been bought by InPost in a £106m deal. With the acquisition, InPost steps into the position of third-largest agnostic logistics player in the country. Under the terms of the transaction, InPost has snapped up 95.5 per cent of Judge Logistics Ltd share capital, parent company of Yodel Delivery Network, with PayPoint retaining a minority stake of 4.5 per cent. Yodel leases a large depot in Bedworth, on the Coventry border at Gallagher Business Park. 

https://www.insidermedia.com/news/national/delivery-giant-yodel-taken-over-in-106m-deal 

Rudy’s is now open in Leamington Spa  

Rudy's Pizza Napoletana is now open in a new venue in Leamington Spa.  

The 3,638 sq ft High Street restaurant, which has capacity for approximately 90 covers for dining and opened its doors on Saturday 5 April.  

https://www.insidermedia.com/news/midlands/rudys-confirms-opening-date-for-new-leamington-spa-venue 

Stratford-upon-Avon shopping mall fully let 

An independent business has become the last piece of the puzzle at The Minories shopping mall in Stratford-upon-Avon, moving into the final available store. Kate Arnold opened the doors to her shop Flower Funky at The Minories on February 1, offering shoppers a selection of vintage clothes, bohemian clothes and ethical gifts to buy. Kate is the final independent trader to move in at The Minories, which is home to a host of boutique shops.  

https://www.insidermedia.com/news/midlands/stratford-upon-avon-shopping-mall-fully-let 

New £20m Industrial Unit Coming to Warwick, Tournament Fields 

Construction has started on a £20m speculatively developed industrial and logistics unit know as Barberry Midbox 92, on the final plot of Tournament Fields, Warwick. Developer Barberry is developing a 92,246sqft industrial unit close to M40 J15, and will join other occupiers onsite including 3P Innovation, Hansgrohe, Pure Office, Sodick and Scholastic. The development is expected to reach completion in Q4 2025 and is available to lease or purchase. 

https://www.insidermedia.com/news/midlands/dozens-of-jobs-move-closer-as-barberry-starts-work-on-20m-industrial-and-logistics-unit 

Resilient Q1 for office market – upturn in confidence anticipated for Q2 

The Big Nine regional office markets have shown resilience in the first quarter of 2025, according to data from global real estate advisor Avison Young. As seen in the firm’s upcoming Big Nine report, which charts regional office activity from nine UK cities outside London (Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, Manchester and Newcastle), take-up has reached 2.1 million sq ft, in line with the 10-year quarterly average. Newcastle had the quarter’s largest deal, DWP’s 170,000 sq ft pre-let at 1 Pilgrim Place, a development with more than 400,000 sq ft of Grade A space. Auto Trader signed on for a 130,000 sq ft pre-let at 3 Circle Square, Manchester, and Network Rail has agreed to an owner-occupier deal at Princes Exchange, Leeds for 109,000 sq ft. As a result of landmark deals from DWP and Network Rail, the Government and services industry has dominated Q1 office deals, taking around a 25% share. Quarter one has also seen a strong uptick in out-of-town demand, boosted by five deals in excess of 25,000 sq ft, the highest level of quarterly take-up since Q3 2021. Manufacturing and Industry takes the largest share of out-of-town deals at 18%, with EDF signing on for 78,284 sq ft in Bristol. The demand for out-of-town space could be driven by cost efficiency, as prime city rents continue to rise, or due to demand for larger, more flexible spaces. Demand for new and refurbished space is on the rise, with occupiers seeking high quality sustainable spaces, with 48% of 2025 development completions already pre-let. The market is leaning towards ready-to-go fitted offices, with good wellness and sustainability credentials. 

https://www.thebusinessdesk.com/westmidlands/news/2097031-resilient-q1-for-office-market-upturn-in-confidence-anticipated-for-q2 

BDO Research Sees Midlands businesses brace for impact of Donald Trump’s tariffs 

More than half of Midlands mid-market businesses have said that they expect to be directly affected 'to a significant extent' by Donald Trump's tariffs, according to new research from BDO.  

The firm's survey of 500 mid-market businesses conducted between 24 March and 2 April -  before the US administration’s tariff announcement - shows 54 per cent expect to be directly affected 'to a significant extent' while 46 per cent said 'to some extent'.  No respondents said they would not be affected.  

https://www.insidermedia.com/news/midlands/midlands-businesses-brace-for-impact-of-donald-trumps-tariffs 

Jaguar Land Rover to ‘pause’ US shipments in wake of tariffs 

JLR has paused shipments to the US as it works to “address the new trading terms” following the implementation of 25% import tariffs on all foreign cars. JLR's decision to pause exports may be partly accounted for by moves to export extra cars to the US before the tariffs were brought in. Data from the Society of Motor Manufacturers and Traders (SMMT) reveals that automotive exports from the UK to the US increased by 34.6% year on year in February, as a result of efforts by firms to avoid the charge. Around eight million cars were imported into the US last year, approximately half the total sold in the market. The UK exported abut 100,000 cars, most of which were luxury vehicles, more resilient to price increases to the customer. The US is the British automotive industry’s biggest export market, and for JLR it is the biggest export market, having recorded big increases in sales of the Solihull-built Range Rover and the Slovakian-made Land Rover Defender. JLR previously said that it remained confident of maintaining sales because ”luxury brands have global appeal” and business is resilient, accustomed to changing market conditions. 

https://www.autocar.co.uk/car-news/business/jlr-pauses-shipments-us-response-new-tariffs 

McLaren to Merge with EV Skunkworks Forseven 

McLaren Automotive is “about to embark on the most exciting British automotive story in decades,” thanks to a merger with an EV startup that has yet to produce a single car. Forseven, is a UAE funded, British-based company that has been ramping up over the past couple of years and now employs a team of 700, many of them based at the company offices in Warwick. The first car scheduled to be built by Forseven was to be a luxury electric SUV to be sold under a new, as-yet-un-named marque. Now, however, it seems the focus will be capitalizing on the McLaren brand instead. The company’s engineering team is based at Warwick Tachbrook Park, with a new commercial HQ under construction at Bicester. In an extensive interview with Autocar, Forseven CEO Nick Collins, who will take the reins of new firm McLaren Group Holdings, said the first action will be to turn around the McLaren Automotive business with a six-month timeframe. 

https://www.hagerty.com/media/news/mclaren-to-merge-with-ev-skunkworks-forseven/ 

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