The North East continues to witness substantial business activities, shaping its economic future. This week highlights pivotal contracts and strategic investments.
Key players such as FulwellCain, Luminous XR, and RMT’s collaboration with Ribchesters underscore dynamic growth across various sectors.
SkinBioTherapeutics Gains Significant Investment
Newcastle’s SkinBioTherapeutics has successfully secured a substantial investment of £1.56 million. This dermatology-focused company has appealed to two major investors without actively seeking funds. The funds are intended to support the commercialisation of their AxisBiotix-Ps product, aimed at combating psoriasis, and potentially finalising a deferred payment tied to its acquisition of Dermatonics.
Stuart Ashman, CEO, remarked on the rarity of such investment interest, highlighting the opportunity to expand their runway through 2025. The approach was made by Premier Miton and Cynosure Capital Pty Ltd, through the purchase of 14,875,749 shares, leading to £1.44m post-expenses, furthering their strategic initiatives.
£25 Million Investment in Crown Works Studios
The creation of the Crown Works film studios in Sunderland is backed by a £25 million investment, marking a major advancement in the region’s screen industry. The FulwellCain initiative is a joint venture aiming to drive forward a £475 million scheme which, over a decade, could potentially add £2 billion to the local economy.
Kim McGuinness, North East Mayor, endorsed the investment, citing the region’s rapid growth as a film and TV production hub. The industry experienced an 86% increase over the past two years, and this development positions the North East as a critical location for international media production.
Luminous XR Secures £1 Million for Expansion
Luminous XR, a Tyneside-based Extended Reality company, has acquired £1 million in investment to fuel its international growth aspirations. The funds are being leveraged to support their efforts in the Middle East and other overseas markets, including the US.
The company has developed a platform to simulate realistic training scenarios, widely used by the energy and industrial sectors. In addition, they are launching a new tool, “Flow”, designed to facilitate easier creation of VR content, possibly enhancing training efficiencies across industries.
Acquisition of Leigh’s Nurseries by Kids Planet
The acquisition of Leigh’s Nurseries by Kids Planet marks a significant shift in early years childcare in the North East. With three sites, Leigh’s Nurseries has become the latest addition to Kids Planet’s expansive network.
This transaction, advised on by UNW LLP and Muckle LLP, allows for continuity of care for over 230 children and retains employment for more than 80 staff. Leigh and Paul Caven, founders of Leigh’s Nurseries, expressed confidence in this new chapter, ensuring the preservation of their vision of ‘home-from-home’ nurseries.
RMT Accountants Unite with Ribchesters
The merger of RMT Accountants & Business Advisors with Ribchesters Chartered Accountants results in the formation of RMT Ribchesters. This strategic consolidation aims to enhance their service offerings across the North East.
RMT Accountants, recently backed by the national group Sumer, will benefit from Ribchesters’ expertise in sectors such as charity, education, and legal. The combined entity, consisting of ten directors and over 120 employees, will provide diverse and specialised financial services to a broad client base.
Overview of North East Economic Developments
This week has seen significant economic advancements within the North East, highlighting investments, strategic mergers, and acquisitions. These developments promise to enhance the region’s economic landscape, underlining the North East’s growing importance in sectors like film, technology, and childcare.
These strategic moves reflect the burgeoning potential of the North East economy. Continued investments indicate a strong future for key industries.
As these ventures advance, the North East is poised to become a vibrant hub for innovation and economic activity.
