Co-ordinating successful business relocation can be complicated but there are still deals to be had with tenants in the driving seat to negotiate advantageous lease terms.
Sheffield firm IML Labels & Systems is the latest company to do so with a recent move to Brightside, thanks to a network of support from Wake Smith & Tofields, Creative Sheffield, UK Steel Enterprise and South Yorkshire Investment Fund.
A leading supplier of high performance labels, tags and badges, for clients such as Corus and Schutz, the 74-year-old South Yorkshire firm is now operating out of new 12,000 sq ft premises on Brightside Lane.
With improvements in technology resulting in smaller equipment for the company, alongside leaner production, IML labels had surplus space at their former site in Chapeltown.
Running inefficiently within a 25 year lease at a high rent in premises that were too large for them, the firm sought to find a new location more suited to their business needs. Keen to take advantage of the current economic climate, IML consulted with South Yorkshire Investment Fund, UK Steel Enterprise and Creative Sheffield to find a solution.
Sharon Cook commercial director at IML Labels: "Co-ordinating several transactions required the assistance of legal experts at Wake Smith & Tofields to negotiate favourable lease terms. We considered many sites around Sheffield, Barnsley and Rotherham. However Brightside was our first choice from the off as we wanted to stay in close proximity of our previous site to ensure that we retained our staff.
"With five companies involved in the buying selling and re-leasing process the legal process was often a difficult, challenging and frustrating process. Wake Smith & Tofields provided excellent support and all those involved worked hard to ensure that loss in production time was minimised. We also had specialist machinery movers to transfer printing equipment, so the operation was timed very carefully."
Neil Salter, partner in the Commercial Property department at Wake Smith & Tofields, said: "Landlords will be prepared to negotiate good deals for tenants particularly with regards to rents payable and reduced rents at the beginning of the lease term. Yorkshire firms, such as IML Labels, are well positioned to secure favourable terms - however, legal consultation is important to deal with the negotiation of the lease for new premises and the termination of the existing lease to enable the move to be coordinated and to minimise stress and disruption to the business.
"IML Labels have saved themselves costs and are more flexible to business changes in the future. There are real opportunities for other firms in the Yorkshire to do the same."
SYIF and UK Steel Enterprise were asked to support IML Labels by making additional working capital available to fund the physical relocation of premises.
Andy Chaffer, Business Director at SYIF, added: "We worked closely with UK Steel Enterprise to structure joint facilities to cover the gap in finances associated with a move like this.
"SYIF is pleased to support a business which has evaluated its costs in order to ensure long-term growth and development. In the current climate this is essential management and ensures they are operating as efficient and effective as possible."
Alan Lyons, Investor Development Manager at Creativesheffield said: "This is an exciting move for IML Labels; the acquisition of this new facility is a very encouraging sign of yet another Sheffield business doing well in this challenging economic climate. The move will help the company continue to grow and trade on the world stage."
Allan Wood UK Steel Enterprise and executive with the Corus Group regeneration subsidiary: "This move heralds a new era for IML which UK Steel Enterprise was very keen to support with unsecured funding. Our ethos has always been to back businesses making a significant contribution in the country's steel areas and IML very much fits that bill."
IML Labels employs 45 people across two sites, manufacturing labels for companies nationally including Corus and Schutz.
