Get ready to be blown away because Shell has just reported its highest profits in 115 years. That’s right, the oil giant is breaking records and shaking up the industry with impressive financial performance. Record Annual Profits Shell’s Yearly Earnings Hit a New Record During the fiscal year 2022, Shell reported adjusted earnings of $39.9 billion. This easily exceeds Shell’s previous yearly record of $28.4 billion in 2008 and is more than twice the company’s full-year 2021 profit of $19.29 billion. Refinitiv surveyed analysts predicted a net profit of $38.3 billion for the fiscal year 2022. Shell’s chief executive, Ben van Beurden, said the results were “a strong set of results” that reflected the company’s strategic progress. The company’s shares rose by 3.5% in early trading on the London Stock Exchange following the release of the figures. “We are making good progress on our strategy to become a world-class investment”, he said. Shell’s shares rose by more than 3% in early trading on Thursday. Windfall Tax – Energy Profits Levy In the early 1990s, the UK government introduced a windfall tax, also known as the energy profits levy, which aimed to reduce the country’s budget deficit. The tax was designed to raise money by taxing profits made from the sudden increase in the value of oil and gas assets following the collapse of the Soviet Union. At the time, there was a lot of speculation about the future of oil and gas, and the windfall tax was intended to help fund government spending on renewable energy and other initiatives. called the Energy Profits Levy, which aimed to reduce the country’s budget deficit. The tax was designed to raise money by taxing profits made from the sudden increase in the value of oil and gas assets following the collapse of the Soviet Union. This was to ensure that these companies contributed towards the costs of environmental clean-up and energy efficiency programs. The tax was also seen as a way of leveling the playing field between Britain’s privatized utilities and state-owned companies in continental Europe, which did not have to pay such a tax. Despite All Despite the pandemic and the fall in brent crude oil, the company attributes these record-breaking profits to its focus on cost-cutting and efficiency measures. Shell CEO Ben van Beurden said that the company had made significant progress on its journey to become a more lean and agile organization. He added that Shell would continue to invest in its operations and infrastructure to ensure long-term growth. Van Beurden also announced that Shell would be returning $125 billion to shareholders through share buybacks and dividends over the next three years. This is the biggest shareholder return program in the company’s history. In The Future As one of the world’s largest oil companies, Shell has long been under pressure to address its impact on climate change. And in recent years, it has made some progress, investing in renewable energy and setting goals to reduce its greenhouse gas emissions. Specifically, Shell plans to continue reducing its costs and increasing its efficiency. It also intends to keep investing in renewable energy and low-carbon technologies. As part of that effort, the company recently announced a partnership with Energias de Portugal (EDP) to develop an offshore wind farm off the coast of England. Final Words Shell’s record profits in 2021 show how the company has managed to successfully navigate a challenging and uncertain business environment. The company has shown resilience through its prudent financial management, cost-cutting measures, and innovative approach to doing business. As the global economy recovers from the pandemic, Shell is well-positioned to capitalize on these opportunities and further increase its profits. It will be interesting to see what other successes Shell can achieve over the coming years. To sum up. The success is largely due to cost-cutting measures, improved operating performance, and higher oil and gas prices. Looking ahead, Shell plans to continue reducing costs and increasing efficiency while also investing in renewable energy and low-carbon technologies. If the company is able to meet these goals, then it should be well-placed to capitalize on future opportunities and further boost its profits. Building, Design & Construction Magazine | The Choice of Industry Professionals 

Alliance Investments have announced the official sales launch of their 6th Manchester development, Berkeley Square, located between Manchester City Centre and MediaCityUK.   The Manchester based property investment company has launched the sales of the latest luxury Manchester development, Berkeley Square – which will see the construction of 500 one-, two- and three-bed apartments. Main contractor HG Developments announced this week it has commenced construction on The Heaton Group’s luxury residential scheme, situated between Manchester City Centre and MediaCity, designed by award-winning architects Fletcher Rae. With a forecasted completion date of December 2025 for Block 1 and June 2026 for Block 2, this is another significant development for Manchester to meet the incredibly high demands for living space in the area. Berkeley Square is a superior collection of luxury apartments perfectly located between Manchester City Centre and MediaCityUK, within a secure community suitable for professionals, families and first-time buyers. The modern homes will offer both connectivity and an enviable lifestyle in a stylish, luxury package, with open communal spaces for relaxing with friends, resident events, co-working and exercise classes – all planned to improve residents living environment. All apartments Berkeley Square will be available for sale through Alliance Investments from February 2023, with properties available from £199k. Ronald Garrett, Managing Director of Alliance Investments states: “Our team are delighted to be partnering with The Heaton Group on the sale of apartments within Berkeley Square – our third project with them.” “We have aligned our reputations for excellence, local knowledge and proven track record, and are confident of another successful project within Manchester” John Heaton, Managing Director of The Heaton Group commented: “Launching Berkeley Square with Alliance Investments leading the sales, marks the culmination of success across our previous projects with their sales and marketing teams, who have decades’ of experience across the UK’s residential market, we are confident they will again harness their knowledge to market our development to the correct home buyers and investors” To find out more about investing in Manchester or purchasing a home within Berkeley Square, please contact Alliance Investments here:  https://alliance-investments.com/manchester/.

Tradespeople are working longer hours and extra shifts because of the cost of living crisis, with almost a quarter (23%) saying they can’t afford to take any time off.  The new research by ElectricalDirect, a specialist retailer of electrical products, surveyed workers across the nation to reveal how many are at risk of burnout, and found that almost two in five (39%) have upped their hours in recent months.  A similar number (43%) now regularly work more than eight-hour days, nearly a fifth (18%) do more than five days a week, and over a quarter (26%) even work while feeling unwell.  Furthermore, tradespeople are taking very few days of annual leave, largely for financial reasons. On average, they take just 11 days off a year, but almost a third (32%) take less than a week of holiday every 12 months.  In fact, a staggering 92% take less than 28 days off a year, which is the statutory annual leave requirement.  Broken down by trade, roofers take the fewest days off, averaging just four days of leave a year. In contrast, painter and decorators take the most holiday, but still take less than two weeks off (12).  The trades which take the most and least annual leave are:  #  Trade  Mean  1  Painter Decorator  13  2  Landscaper  12  3  Plumber  12  4  Joiner  12  5  Builder  11  6  Electrician  11  7  Caretaker/Maintenance  11  8  Window Fabricator  11  9  Locksmith  11  10  Carpenter  10  11  Building Surveyor  9  12  Plasterer  9  13  Bricklayer  9  14  Scaffolder  8  15  Roofer  4  Self-employed tradespeople are the most overworked. They are considerably more likely than employed individuals to work long days (51% vs 40%), work while ill (34% vs 23%) and work at weekends (38% vs 18%). They are also nearly twice as likely to work over five days a week (27% vs 14%).  To help tradespeople avoid or deal with burnout, ElectricalDirect has partnered with Liz Sebag-Montefiore, director and co-founder of HR consultancy 10Eighty, to share some expert advice.  Dominick Sandford, Managing Director at IronmongeryDirect, said: “With the country still fighting the cost of living crisis, it’s completely understandable that many tradespeople feel the need to put in extra hours to increase their level of income.  “However, overworking can have serious consequences, physically, mentally and professionally, and that’s why we’ve partnered with Liz to share some expert advice. Hopefully her tips can help tradespeople deal with the recent increase in workload, so that they can avoid or manage any burnout.”  For more expert advice on how to deal with burnout, visit: https://www.electricaldirect.co.uk/blog/how-to-avoid-burnout   Building, Design & Construction Magazine | The Choice of Industry Professionals 

INVESTMENT in East Midlands commercial real estate is set to bounce back in 2023 after transaction volumes dropped at the end of last year amid the UK’s economic uncertainty. Total investment volume in the region was £1.356 billion in 2022 – significantly down and nearly half (44%) of the previous year’s record-breaking volume, according to the annual market review by leading commercial property agents Innes England. However, the figure was only slightly down (11.5%) on the five-year rolling average and just 6.75% down on the ten-year rolling average, said Ben Robinson, head of the company’s investment consultancy. Ben said 2022 had been ‘a year of two halves’ but added: “As we begin 2023 we are cautiously optimistic that despite the re-rating of commercial property yields at the end of last year, transaction activity will return as investors quickly become acclimatised to the new norm.” The figures were revealed in Innes England’s 16th Market Insite report – presented virtually to an audience of hundreds of industry professionals – which monitors trends in the regional property market, focusing on Nottingham, Leicester and Derby, as well as Birmingham for the first time this year. The webinar featured specially filmed interviews with the senior team on location and included a live Q&A. Across the East Midlands in 2022, the report highlighted: Transaction activity across the region in the first half of 2022 continued at much the same level as the previous year, when volumes ended at record highs, said Ben. “However, this strong investor momentum started to fade in the second half of the year as the market began to absorb the effects of the first significant rises in interest rates since the financial crisis, before falling away sharply following the further shock of ‘Trussonomics’,” said Ben.  “As the era of cheap money came to a rather abrupt end towards the latter part of the year many investors adopted a wait-and-see approach whilst commercial property yields re-rated across all sectors.” That was reflected in the drop in transaction volumes in the second half, with only £239 million pounds worth of deals transacted across the whole East Midlands market. “However, we expect the market to recover following a quiet start to the year as investors look to take the opportunities of a thinner market while it lasts,” said Ben. In the logistics market, record levels of take-up in the first half of last year gave way to a decline in the second half, said director Peter Doleman. Whilst the political instability was clearly a factor, there was no crisis in the East Midlands industrial sector performance. Leicester’s increased take-up of 39% was primarily due to its location and greater exposure to the national distribution market, with notable sites including Magna Park and the Leicester Distribution Park. Derbyshire saw a substantial increase, from 891,000 to over 1.2 million sq ft. “Whilst the distribution sector is obviously an increasingly important part of both the local and national property market, there are many other sectors that drive our market locally, and the feel-good factor here in the East Midlands is better than some pundits have forecast,” said Peter. “Rental values and prices continued to rise last year, off the back of the speculative market, where prices have had to rise in view of increased costs. This has had a knock-on effect within the second-hand market, as occupiers look for suitable and cheaper alternatives. Prime rents are in the region of £8.50 per sq ft.” Director Craig Straw, head of Innes England’s business space agency team, said office take-up transactions were down across the region by about 25% but this followed a bumper post-pandemic 2021. Nottingham’s office take-up was the most robust with a strong focus on the city centre. Activity in Leicester and Derby was high in the edge of city and out of town market but overall the region had a lack of larger transactions. One emerging trend was occupiers upgrading at lease events while also downsizing their requirements. In some sectors this upgrading led to rental inflation, said Craig. New ways of working will continue to impact space requirements, with growing indications that some employers are starting to push for a more office-focused base. “It will be interesting to see how things develop as in many sectors there is still a labour shortage with employers looking to secure those scarce resources on terms which suit the employee,” said Craig. “No doubt the best approach is to create a workplace which employees wish to visit and spend time in out of choice.” In the retail sector, landlords and tenants had needed to adjust to the economic climate and the challenge of inflation, said Innes England managing director Matt Hannah, who highlighted the UK’s 17,000 shop closures in 2022 – the highest in the past five years. “A third of all closures came from a reduction in branch networks by the nationals and a further third, unfortunately, from the independent sector,” said Matt. “The East Midlands had the third lowest net decline in these numbers which reflect a 50% increase across the country over 2021. The reduction of government support and removal of the rent moratorium played significant roles.” Despite the closures, city centre landlords and stakeholders are repurposing spaces at pace, such as Marks and Spencer’s plan for 20 new stores over the next two years, creating 3,400 jobs, and the future of the region’s former Debenhams stores. The most significant boost to city centres is the much-awaited rating reassessment which impacts this April and is an immediate reduction of retailers’ occupancy costs, said Matt. “Some units we are marketing are showing a 65% drop in the rates payable or, for example, a reduction on one unit from £70,000 a year to £25,000,” he added. The retail warehouse market has made a swifter recovery, with investment yields between five and six per cent, and discount food operators continue on an aggressive expansion. The food and beverage roadside sector is attracting new entrants, where strong rents are

Lothian Pension Fund has acquired Corstorphine Retail Park from Hunter Real Estate Investment Management for £16.265 million. The park has recently undergone extensive redevelopment with new lettings secured to Lidl and The Gym Group, with further lease re-gears to McDonalds, Pets at Home and Cancer Research giving an average lease length in excess of 18 years. Lothian Pension Fund was advised by Lismore Real Estate Advisors, Hunter was advised by Sheridan Keane. Commenting on the retail warehousing sector, Chris Macfarlane, director of Lismore said: “Towards the end of 2022 and into this year we have seen retail warehousing yields soften, but those parks anchored by food stores and also with an element of drive-thru, located in strong urban catchments, remain robust and still offer good value.” Building, Design & Construction Magazine | The Choice of Industry Professionals