WHAT FIRST ATTRACTED YOU TO HAWKINS HATTON?

As I have progressed in my career, I have liked the challenge and variety of working in smaller firms. You get exposed to a far wider range of property work than would otherwise be the case and you learn more about how a practice works in general

CAN YOU SHARE A HIGHLIGHT FROM YOUR FIRST MONTH WITH US?

A highlight for me has been the ability, due to its size, to meet and speak with every member of Hawkins Hatton within my first week.

WHAT WOULD YOU SAY IS HH’s USP?

There is a Jamaican saying that I feel sums up Hawkins Hatton in a nutshell ‘likkle but tallawah’ which means ‘small but mighty’. We do not let our size constrain us from what we can do in terms of our clients, our work and the size of the transactions we deal with. It is a ‘yes we can’ attitude.

IN WHAT WAYS HAS WORKING HERE MET OR EXCEEDED YOUR EXPECTATIONS?

I have been pleasantly surprised by the calibre of our junior team. They are an enthusiastic group who are undertaking work that I would have delegated to far more senior lawyers in my previous practice.

Not having to time record has also been a joy.

WHAT ARE SOME GOALS YOU’RE HOPING TO ACHIEVE IN THE NEXT YEAR WITH HH?

In the next year at HH, we’re continuing to grow our capacity and further enrich our workplace culture.

Firstly, we are expanding our team. Building on the success we have to date, additional resources will enable us to handle a greater volume of work while ensuring that each team member maintains work-life balance. When staff have the time and space they need to recharge, productivity and job satisfaction increases naturally.

Additionally, I am keen on supporting all junior lawyers post-qualification. Through clear progression strategies and exposure to more complex work, all parties will benefit from continued professional development.

HH already competes well with larger firms in terms of the quality of work and client base. One of my key objectives is to elevate our employee experience and ways of working to match or exceed what city-based practices offer. This involves investing in technology and systems that streamline operations and improve efficiency, making Hawkins Hatton an even more attractive place for top talent than it already is.

I firmly believe that attention to the 'little things' — those day-to-day interactions and conveniences that make working life smoother, plays a significant role in building a loyal, contented, and dedicated team. By focusing on these aspects, we aim to create an environment where exceptional professionals are eager to flourish.

HOW DO YOU THINK hh BEING PART OF THE WIDER BAMBOO ECOSYSTEM WILL HELP IN ACHIEVING THESE GOALS?

We’re a niche practice and we’re great at what we do. Clients are now generally more entrepreneurial and as a result may sometimes have a need for advice that is outside of our areas of specialism. The ability to plug into other specialisms within the wider bamboo ecosystem is key to maintaining strong client relationships as we do not need to send our clients elsewhere for advice. Client service is always our first focus and providing a wider range of support is a way to deliver that level of commitment.

WHAT ADVICE WOULD YOU GIVE SOMEONE CONSIDERING A MOVE TO HAWKINS HATTON?

My advice would be another of my favourite sayings ‘just do it!!’ We have fantastic work, the firm and our wider ecosystem is very different to traditional law firms and the work and experience that you will be exposed to will be the same if not more challenging and thus rewarding.

IS THERE ANYTHING ELSE YOU’D LIKE TO ADD ABOUT YOUR EXPERIENCE SO FAR?

We recognise that the legal sector is evolving and as a firm, we need to change with and possibly ahead of that curve in order to continue to attract and retain talent and clients. My experience so far is that we’re open to that change and embrace the challenge.

As part of our ongoing commitment to nurturing talent, we are proud to announce the qualification of two of our trainee solicitors, Ben Powell and Alex Boyle. Both have recently qualified as Solicitors into our Corporate and Real Estate teams respectively.

Ben and Alex's qualification comes after an exciting journey at HH and has consisted of in-depth training and supervision, with extensive exposure to complex legal matters throughout. Their qualification as solicitors with HH is testament not only to their personal development, but also to our structured training programme, designed to nurture and develop highly skilled legal professionals.

Harminder Sandhu, having overseen their training, expressed great pride in their development. "Watching Ben and Alex grow into knowledgeable and confident solicitors has been incredibly rewarding," said Harminder. "Their qualification is a reflection of their hard work and dedication, and it underscores our commitment to developing talent from within."

Ben Powell shared his excitement about his new role: "Qualifying as a Corporate Solicitor is a dream come true. The support from Hawkins Hatton has been phenomenal throughout my training, providing me with the tools necessary to succeed in this challenging field."

Alex Boyle added, "I am thrilled to embark on this next phase of my career with HH. Our dynamic environment and focus on client-first service have immensely contributed to my professional growth."

We continue to demonstrate our dedication to growth and excellence in our field. We remain committed to delivering the highest quality from our services, supporting client success, and fostering an environment where professionals can flourish. 

Our Brand Leader Kieren Windsor said, "It’s an exciting time at Hawkins Hatton. The road ahead is full of opportunities for growth, development and progression for our existing team and those who will join us in the future. All of which enhances our already strong relationships with clients."

We continue to create an environment for talented individuals to join us and develop an exciting future with HH as we continue to build on nearly 20 years of success in this area.

Newsletter March 2024

Better skills lead to more productivity in the economy, in that people can generate more through efficiencies and skilling up, this is a statement you can understand without having in depth knowledge of economics. In the same way, most employers will say that they are always on the lookout for talent which coined the phrase “war on talent”.

These statements must be looked at in the backdrop of what is happening in the wider economy. Jeremy Hunt (the Chanceller) has reported that vacancies within the UK are at 980,000, and in contrast Andrew Bailey (the Governor for the Bank of England) has said the UK is at full employment with unemployment recorded at 3.9%. Does this mean you will always have a gap between people looking for a job, and the job markets?

The obvious answer must be yes. Yet, the UK is coming out of a technical recession which started at the end of 2023, during which you would have expected that jobs would be harder to find but this is not the case if there is full employment. So, what is the solution? As with everything in business, the more investment you make the better the outcomes. Instead of investing at the usual levels which give that consistent return, the alternative is to look at investing at different levels which may take a longer time to create the same returns. However, the outcomes from investing at these different levels is not just fulfilling for the employer but also creates employees with higher skillsets which they may have never achieved if they never had that opportunity. The employees in turn will express loyalty to the employer for those opportunities afforded to them.

Unlike most other careers, the barriers to entry to the legal profession are high in academic terms. However, if you ignore the pool of graduates, and you look a wider pool of students with varying educational achievements, you have a wider talent pool to choose from. That is why with the new apprenticeship programmes which span many sectors, this has to be the way to go. This is just a different way at looking at things which Hawkins Hatton (“HH”) adopted since its inception some 20 years ago. Training is the beating heart of HH, sitting alongside client service, as it has always been the view of the founders that giving people opportunities in life gives something back to the profession and people from different walks of life. A lot of people may have been sceptical about looking to train people who have not fulfilled all of the conventional academic criteria required, but even professions such as medicine, are now looking at apprenticeships. It may be harkening back to how things were in the early days of the industrial revolution, where people went into jobs as an apprentice to learn a skill. But it is these skills which are transferable and will enable more people to play their part in increasing productivity. To this end, I would encourage all employers to look at apprentices as having a wider talent pool creates a stronger business which is better able to deal with the challenges of an ever changing world.

Exclusive Contributor to the Legal 500 UK Mergers & Acquisitions Guide. Click to read our contribution.

When we hear that term, “tax free”, it tends to grab your attention. Without a doubt, we are all likely to spend more if it is free of tax. That is why when you attach tax free to shopping, it encourages tourists to spend more on something special than they may otherwise. From my experience, this is always the case with duty free, in the same way, buying things outside of the airport which will be tax free will always be appealing.

The UK has long been a go to destination for tourists worldwide, even though it may not be as popular as France, Spain, US or Italy. But certainly, the UK is in the world’s top ten places to visit. Again, something everyone knows is that whenever we go abroad, we spend money, and post-pandemic, the number of visitors to the UK has increased with over 35 million tourists last year, with all of them contributing towards the £214 billion that the UK profits from tourism.

So, it must be good news, if VAT free shopping for tourists is going to be brought back for foreign visitors. The Chancellor has referred the change of profit decision to the Office for Budget Responsibility to decide the cost benefits. What is interesting is that this was one of the policies flagged by Liz Truss in her short stay as Prime Minister.

On the face of it, many sectors will benefit from this tax incentive, as it is not just retail and hospitality, but travel, museums and galleries. That is why it is easy to see that business leaders in those sectors have been campaigning for a change for a while.

It is easy to assume that this VAT free incentive may just benefit London, but from my experience, that when family and friends visit from abroad, they spend more money when it is tax free shopping, so the benefits will be felt much wider afield. Getting people to spend more money in the UK has to be a good idea, as it will bring more money into the UK, so it would be interesting to see what Jeremy Hunt decides next month during the budget on 6 March, as why would you want to create barriers for UK tourism and the revenue this will generate.

The stock market should be one of the barometers of an economic health and vitality. However, this is not necessarily the case with the FTSE 100 as it is mainly made up of international companies, rather than domestic companies. 

The UK has been in the shadow of its American cousin with Nasdaq. Since the Second World War, America has overshadowed the UK whilst the sun set on the British Empire. This has meant that America, through the dollar, has the global currency of choice and its stock exchange, Nasdaq, is sought after by high profile companies throughout the world seeking access to capital markets. 

There are many examples of the UK continuing to lose out to the US on listing, and now even to Frankfurt with TUI looking to leave the FTSE 100. Though TUI does have Germanic roots, so this move could be attributed to that.

The FTSE 100 is less attractive to the world at large due to the existing regulations seeking to protect investors, rather than allowing companies to find capital. Hence, the changes proposed by the UK regulator will go some way to make the FTSE 100 a better place to list with less regulatory constraints, and this will pay dividends in listing terms. In America, there is no shame in failure, whilst in the UK, this carries stigma. If you do not fail, you have not tried, so you learn from failure to try again. You cannot simply look to protect the consumer at every turn.

It goes without saying that simplification leads to cost savings and to the world at large, having one listing category rather than a premium standard makes sense. Also, in this era of unicorns, eligibility should not be determined based on long term financial history. That is why the stock exchange has to be opened to all entrants.

This new disclosure regime may not suit all, but it is ideal to allow investors to decide how they want to invest, rather than treating them as not able to make a decision and to be fully protected at all times failing which, they should go to a professional to mitigate financial risk.

It also makes sense that with a more diverse, and wider range of investors, voting on business matters should be limited to de-listing and takeovers, rather than related party transactions. Will all of these changes make London more competitive but only if it simplifies the prospectus requirements, allows more equity research, and incentivises capital investment in the market, whether through pension funds or ISAs.

As we approach the end of another eventful year, it is time to pause and reflect on the journey we have all travelled together. 2023 brought with it the challenges of inflation and the medicine in the form of higher interest rates which dampened consumer spending and created commercial uncertainties.  

Sitting on the cold face I can see that business is still being done, corporates are buying and selling, and investment is taking place. We need more of this, but we need it focused, in terms of productivity as we want to avoid the decline of UK PLC not having investment in its infrastructure, whether that be the government PLCs or businesses generally. You do not fix a leaking roof when it rains, you fix it when the sun is shining, yet there are storm clouds ahead.

As we bid farewell to 2023, it is crucial for businesses to take stock of their journey so far and set their sights on the opportunities that lie ahead with the following thoughts:

Embrace Change: Change is inevitable, rather than fearing it, embrace it as an opportunity for growth and innovation. Be open-minded, adapt your strategies when needed, and seize new possibilities.

Prioritise Well-being: In the pursuit of success, it is easy to overlook our own well-being. Remember that taking care of yourself and your team is essential for long-term sustainability. Foster a supportive work environment, encourage work-life balance, and prioritise mental and physical health.

Collaborate and Connect: The power of collaboration cannot be overstated. Seek partnerships, both within your industry and across sectors, to leverage collective strengths. Engage with your community, build relationships, and create a network of support that nurtures growth.

Emphasise Digital Transformation: The digital landscape continues to evolve rapidly, offering immense opportunities for businesses of all sizes. Embrace digital transformation — whether it is enhancing online presence, optimising processes, or leveraging data-driven insights.

Plan for the Unexpected: While we hope for smoother waters ahead, it is crucial to remain prepared for unforeseen challenges. Develop contingency plans, evaluate risk factors, and ensure you have the necessary safeguards in place to navigate any storm that may arise.

As we step into 2024 with renewed hope and determination knowing that there will still be uncertainties of elections, recessions and other bumps in the roads which businesses have to navigate, if we just take a step back and reflect on the journey of 2023 and put in place those lessons we have learnt for 2024, we will all be more forearmed to deal with trials and tribulations that we may yet face. Wishing you a wonderful festive period and a prosperous New Year!

The Hawkins Hatton annual dinner, which has been held at Weston Park for the last 14 years, has become a firm fixture in the regional professional service sector and client calendars alike.

The 2023 F1 Dinner hosted by HH over two consecutive weeks in November did not disappoint in any way. The theme put a new spin on the event and instead of creating debate around business matters and economic trends, it drew on comparisons between the F1 and HH to demonstrate the power of being niche.

The F1 comprises of supercars which do not seek to compete with conventional vehicles which are more readily available. Moreover notwithstanding a supercar may have similar horsepower as a heavy goods vehicle, the difference is a supercar’s ability to accelerate, decelerate and navigate. This is analogous of HH in the legal sector in that HH is niche and nimble. Continuing with this analogy, a supercar needs:

• A strong chassis – in the same way business clients, when purchasing or exiting a business, need strong, clear advice to give certainty and HH’s corporate department provides this in an abundance.
• An engine – this is equivalent to a business’ power plant being its commercial property, which enables a business to expand, and HH supports this growth through its real estate department, leaving no stone unturned.
• Fuel – to drive the engine and turn the wheels. Commercial finance fuels a business and HH’s banking and finance team efficiently deliver the cash back into businesses from banks and other lenders.

In a race, there are times when others break the rules and drivers turn to the stewards, when rules are broken in business, our clients turn to the HH dispute resolution department to right the wrongs.

HH’s explosive, electrifying and polished dinners ended with guests commenting on the unique style of corporate gifts, which caught the essence and spirit of the evening being HH branded engine oil, given HH provides its clients’ business engines with F1 treatment to keep them running at optimum efficiency.

This is the million question which leads to many other questions around the interest rate cycle and whether or not it has hit its peak. We can speculate about the false dawn of falling inflation, now wage growth is higher than inflation, but many would not agree that we are in a feel good economy which is expected from wages being higher than inflation, and people having more disposable income. 

The autumn statement later this week has been trailed as leading to tax cuts, but is this the wrong time to consider tax cutting and should we instead be looking at investment? The headroom the Chancellor is looking to exploit for political gain for the next election should not be squandered on inflationary tax cuts, but instead directed to long term changes in the investment culture within the UK for businesses. 

The sting in the tail for the inflationary story is that core inflation is not getting the intention it deserves within the current debate, as it remains very sticky and close to 6%. This core inflation is important as this is the figure which the Bank of England looks at when deciding interest rates. 

If anything, the core inflation will mean that interest rates will not come down as quickly as some may anticipate. This could mean the economy for UK PLC will slow down, with predictions that there will be a recession in 2024 given the backdrop of economic data surrounding retail sales, job vacancies and mortgage approvals. The question then is, without investment, how long and deep will the recession be?

If the direction of travel is clear in terms of interest rates, this has to be the right time to invest as you want to catch those productivity gains when the economy slows down to be in a position where your business is stronger, coming out of any slowdown. Where wage growth is higher, this has to be a situation where investment reduces wage cost, whether through new machinery, or through the new revolution of AI.

If this productivity can be captured, there will be change to working practises which may mean a four day week according to Autonomy within the next 10 years, so jobs which the UK have in abundance for management and data processing could soon disappear. But these productivity gains should not just be focused on a shorter working week, but look to enhance the service offerings of businesses to create a more robust business environment especially as the UK operates within a global economy. It is this global economy that has given the US the advantage of the Inflation Reduction Act and the EU the European Green Deal, these policies which aim to push capital investment and long-term growth through clean energy need to be replicated within the UK. This is where the Chancellor should focus any tax surpluses on and try to give back to businesses through full expensing for capital expenditure.

In a backdrop of China slowing down and global consumer spending contracting, have the Brexit ripples started to dissipate when we measure the health of UK PLC. There is a plethora of economic information which has just come out. The chattering classes are saying that the UK is hitting the top of the inflationary cycle but there are no indications whether interest rate heights will now slow down. All we have is a rearview mirror which indicates that GDP figures showed that the UK economy shrank by 0.5% in July which was greater than the expected 0.2% contraction. Yes, we could blame this on the inclement weather and industrial strife.

Yet, when looking further back in the rearview mirror, GDP in June was stronger than expected. With all this inconsistent data, are we on the precipice of the R-word which economic superstition does not allow you to say just like theatrical superstition only allows you to refer to the Scottish play. Will the Governor of the Bank of England hike interest rates at the risk of tipping UK PLC into recession?

The signposts all around us indicate trouble ahead when you look at Europe’s largest local council going bust, the HS2 debate about the Manchester leg, Barclays laying off 450 staff and the recent fall of Wilko. From experience, I know clients who have invested in training employees are reluctant to lay off people, so is this the start of a wider cutting back for UK PLC in employment costs? You have to bear in mind that wage data is showing that wage inflation has caught up with headline inflation, even though unemployment is slightly up from this time last year.

By way of comparison, when we look at UK’s biggest trading partner, you can see the Euro has had its tenth continuous increase in interest rate hikes to 4% which means that since the launch of the Euro over 20 years ago, this is the highest rate for the Euro.

With a similar picture across Europe, it is clear that you do not have to be a soothsayer to know that the earliest we can hope for a fall in interest rates, whether or not we are at the pique of the cycle, is going to be in 2025.

The good news is that UK and EU relations have started to thaw from an all-time low, such that the UK is now joining the Horizon Europe Scientific Research Initiative and the EU’s space programme known as Copernicus. An agreement has also been reached on the Northern Ireland Protocol.

With a fair wind, headline inflation could drop by the end of the year to may be 5% as a result of deceleration in increasing energy costs and food inflation. So as long as businesses have time to normalise the input costs despite no clear indications of travel from the available data, the silver lining is that it was harder twelve months ago and in twelve months we should be in a better position.

We are all familiar with that phrase and if we apply it to world events, we can clearly see more bumps than smooth tarmac ahead. But with businesses, how do they cope with these bumps? Being a business advisor and an owner, the answer is simple, it is “foresight”.

None of us are able to predict the future, otherwise we would choose the correct lottery numbers this Saturday. But, what we can all do as business leaders, is look at factors which may affect the UK, such as the domestic economy, the workforce, inflation and factors further afield. Once you know what these factors are, we can all start to cater for them.

Global economic factors as simple as influenced by factors such as the Ukraine war and now the conflict in the Middle East and whether or not this will spill into the wider region, not forgetting that Russia and China are still looking to form a stronger alliance. These all affect global sentiment.

When looking at the UK itself, we are all well aware of the interest rates increase, but what we do not realise is that we now pay more as a country for interest payments than we do on defence. In the short term, none of this will change, as interest rates will take more time to rebalance, maybe that is why M&A transactions in terms of value are on the decline, as are IPOs, whilst corporate insolvencies are on the rise.

In the current uncertain climate, private equity may be more cautious and foreign investment may slow down, but we have to also look forward and consider that there is a good chance there may be a change of government in the new year with the election looming. This will bring with it new policy changes.

Therefore, the message to business owners is to focus on increasing productivity and continue to invest in R&D and purchases of equipment. Without these commitments, businesses may not be cushioned from the bumps in the road that will be faced in the next 12 months. It is like the old adage, do not fix the roof when it is raining, fix it when the sun is shining. Even though it may be raining now, there are clearly storms ahead.

In a backdrop of China slowing down and global consumer spending contracting, have the Brexit ripples started to dissipate when we measure the health of UK PLC. There is a plethora of economic information which has just come out. The chattering classes are saying that the UK is hitting the top of the inflationary cycle but there are no indications whether interest rate heights will now slow down. All we have is a rearview mirror which indicates that GDP figures showed that the UK economy shrank by 0.5% in July which was greater than the expected 0.2% contraction. Yes, we could blame this on the inclement weather and industrial strife.

Yet, when looking further back in the rearview mirror, GDP in June was stronger than expected. With all this inconsistent data, are we on the precipice of the R-word which economic superstition does not allow you to say just like theatrical superstition only allows you to refer to the Scottish play. Will the Governor of the Bank of England hike interest rates at the risk of tipping UK PLC into recession?

The signposts all around us indicate trouble ahead when you look at Europe’s largest local council going bust, the HS2 debate about the Manchester leg, Barclays laying off 450 staff and the recent fall of Wilko. From experience, I know clients who have invested in training employees are reluctant to lay off people, so is this the start of a wider cutting back for UK PLC in employment costs? You have to bear in mind that wage data is showing that wage inflation has caught up with headline inflation, even though unemployment is slightly up from this time last year.

By way of comparison, when we look at UK’s biggest trading partner, you can see the Euro has had its tenth continuous increase in interest rate hikes to 4% which means that since the launch of the Euro over 20 years ago, this is the highest rate for the Euro.

With a similar picture across Europe, it is clear that you do not have to be a soothsayer to know that the earliest we can hope for a fall in interest rates, whether or not we are at the pique of the cycle, is going to be in 2025.

The good news is that UK and EU relations have started to thaw from an all-time low, such that the UK is now joining the Horizon Europe Scientific Research Initiative and the EU’s space programme known as Copernicus. An agreement has also been reached on the Northern Ireland Protocol.

With a fair wind, headline inflation could drop by the end of the year to may be 5% as a result of deceleration in increasing energy costs and food inflation. So as long as businesses have time to normalise the input costs despite no clear indications of travel from the available data, the silver lining is that it was harder twelve months ago and in twelve months we should be in a better position.

Natwest Legal Report 2023

The UK legal sector continues to be hugely important within NatWest. We have a long and proud history of supporting legal firms throughout the UK, helping them develop successful and sustainable businesses.
I’m delighted to present our ninth edition of the NatWest Legal Report. This year PKF Francis Clark have been commissioned to write the report. I’d also like to recognise Robert Mowbray for his vital contribution and ongoing development to the NatWest Legal Report in prior years. I’m incredibly grateful to all the firms who’ve contributed and provided insights that will help others within our sector during these challenging times.

Our report focuses primarily on firms that operate at the SME level across England, Scotland and Wales. By comparing the financial performance of firms from across the UK, we’ve identified some interesting trends and valuable insights. Firms can use these findings to target areas of improvement, with the aim of enhancing profitability and management of working capital.

I think the challenge for everyone in the  current environment is finding the time to focus not just on the immediate now, but also on longer term vision, thinking about sustainability in its widest sense and having a future proof mindset – which, ultimately, I believe helps build better businesses as a result.

With this in mind, we’ve concluded this report with a top tips for business success and growth, which we hope will give you a useful framework to help navigate challenges and leverage new opportunities to pivot, innovate and grow your business.

It’s encouraging that despite the recent and ongoing challenges, the legal sector continues to show remarkable resilience, with many firms demonstrating record profitability in the last three years.
I hope you enjoy this report.

Download the full report here.

Apologies for the cricket pun, but this was the “perfect six” when Batt Cables (“Batt”/“Company”), one of Europe’s leading distributors of electrical cables, was acquired by private equity investor Chiltern Capital (“Chiltern”).

Batt is a UK headquartered, global specialist in the management and distribution of electrical cables, with facilities in the UK, mainland Europe, USA and Asia. It holds a wide range of over 8,000 different products in stock, serving industries including infrastructure, construction, renewables, offshore, telecommunication and transport.

Batt was founded in 1952 by previous majority shareholder, Peter Holm’s father, Jens Holm, and his business partner, Robert ‘Bobby’ Batt. As part of the transaction, Peter Holm will remain as an adviser to Batt and it will continue to be run by its existing management team who will become shareholders in the Company. As part of the transaction Chiltern will also introduce industry veteran, Jeremy Ling, as Executive Chair to support the management team in driving the Company through its next phase of growth.

Peter Holm said: “From the age of 18, I have spent my entire career building Batt from a small UK focused distributor, into the £200+ million revenue international company it is today. I’m enormously grateful to all the people who have supported me on this journey over the years, from customers, suppliers and not least my fantastic staff and management team. Whilst there will be a touch of sadness, I know now is the right time to hand over the reins and I have no doubt that the business will thrive following Chiltern’s investment, and I will enjoy supporting them on that journey.”

Peter Holm was assisted throughout this transaction by Hawkins Hatton Corporate Lawyers (“HH”) and Colin Rodrigues (Partner at HH) said: “The global footprint of Batt may seem daunting when it comes to a corporate transaction but the quality of the operation and people within Batt made this transaction seamless as they had all of the information we required at their fingertips so negotiating and delivering a deal like this was like “hitting the perfect six”.”

Joe Bennett, Investment Director at Chiltern Capital, added: “We feel privileged to be taking ownership of a company with such a long history in the UK cable distribution market. With the pressing requirement for ESG-driven electrification to support countries’ net-zero targets, now is an exciting time to be investing in the sector. We will seek to protect Peter’s legacy, whilst also investing to take the Company through the next stage of its growth journey.”

Theresa May (the former Prime Minister) once said “there isn’t a magic money tree that we can shake that suddenly provides for everything people want”. We all know that the country is in a debt crisis we only have to look around to see the ravages of inflation and the pressures on household spending.

In the same way, a Prussian diplomat once said “when America sneezes, the world catches a cold”. So, will the UK get a bad case of influenza as a result of the current state of the American economy?

The central banks in both the UK and the US have worked very hard since the financial crisis to ensure their respective economies stay out of intensive care. Their solution was creating cheap debt which ultimately has had repercussions leading up to this current debt crisis, hence the magic money tree. With any vaccine, you usually administer a small amount of the pathogen, perhaps the magic money tree was shaken too hard such that there was too much cheap debt which lead to more borrowing and ultimately inflationary pressures.

In the US, the jobs market is still strong but the undercurrents of a slowdown in consumer spending and increase in credit card debt are starting to become more pronounced. Are these an indicator that the US will be admitted as a patient suffering from pre-recession symptoms? The last time the US suffered from what was called ‘the Great Recession’ (because that recession lasted from December 2007 to June 2009) was clearly some time ago, so do current conditions mean the recurrence of a new recession? The problem with this diagnosis is that it has been put forward by economists for some time and there have been no signs of the US economy faltering though you should bear in mind that whenever someone’s not sure about a diagnosis they get a second opinion and the New York Fed has apparently predicted that there is a 62% chance of a US recession in the next 12 months which apparently is the highest for the last 40 years. You should also bear in mind that there is a 38% chance of no recession and the thing about economics is that no one ever really knows. What is certain is that these are interesting economic turns to be navigating in the business sector.