UK private sector growth reaches six-month high, but recovery uncertain

UK private-sector activity grew at its fastest rate in six months, driven by stronger performance in the services sector, according to S&P Global’s flash UK composite purchasing managers’ index (PMI). The index rose to 52 in March from 50.5 in February, surpassing analyst expectations of 51. A score above 50 signals expansion.

Despite the improvement, economists remain cautious, warning that this increase does not indicate a sustained recovery. Business confidence remains near a two-year low, with concerns over rising taxes and labour costs set for April. Manufacturing continues to struggle, recording its weakest confidence levels in over two years and its lowest activity reading in 17 months. Industry leaders cite potential US tariffs and uncertain global demand as key risks.

In contrast, the services sector saw its strongest growth in seven months, with firms reporting improved sales opportunities, though business investment remains constrained. The data comes ahead of Chancellor Rachel Reeves’ spring statement, which is expected to address ongoing economic challenges.

Mixed year for Sheffield property business

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Henry Boot, the Sheffield-based land, property development, home building and construction businesses, has seen a decline in revenue and profit, with a challenging start to 2024 being followed by a strong second half. 2024 saw revenue come in at £328.4m, in comparison to £359.4m in 2023, with Henry Boot pointing to reduced turnover in its construction segment. Profit before tax reached £30.7m, down from £37.3m in 2023, in line with expectations, with an underlying profit of £29.4m, decreasing from £36.7m. Demand for the business’s land, prime development and premium homes, however, remained resilient, seeing Henry Boot complete almost £350m in land and property sales, with its share at £224m. Hallam Land, the firm’s strategic land and planning promotion arm, exceeded its 2024 financial performance expectations with 2,661 plots being sold (2023: 1,944), and secured 10 new sites with the potential to deliver 6,500 plots. During the year consents were secured on 2,982 plots, increasing the total plots with planning permission to 8,822. The gross development value (GDV) of property developer HBD’s completed schemes amounted to £331m (HBD share of £188m GDV), of which 72% have been pre-let or pre-sold, while the HBD arm now has a £1.4bn development pipeline. The construction segment, meanwhile, generated turnover of £80.5m, down from £99.5m in 2023, with an operating profit of £4.9m, decreasing from £6.5m. Tim Roberts, CEO at Henry Boot, said: “As anticipated, after a challenging start to the year we delivered a strong second half which allowed us to report results in line with expectations. “In particular, demand for our high quality land, prime development and premium homes has remained resilient. This led to us successfully completing almost £350 million in land and property sales and continuing to lease up space, including setting a record office rent in Manchester at our Island development. “Our investment portfolio also recorded another period of outperformance, with a total return of almost 10% for the year, meaning it has returned more than double the index over the last five years. We also continued to shape the business, with the agreed buyout of our JV partner at Stonebridge Homes, where we are now the majority owner. We will take full ownership of this premium housebuilder in the coming years, continuing to scale the business up, and delivering synergies as we integrate it into Henry Boot. “At Hallam Land, we’ve been quick off the mark in strengthening our team, so we are well prepared to capitalise on the positive changes to the NPPF, by increasing our planning applications fourfold to 10,000 plots over the next 12 months. “At HBD, we’ve formed the Origin JV which we believe will help us to accelerate the delivery of our institutional quality industrial development pipeline. All of this, along with our rock-solid balance sheet, the prospect of recovering markets, and an easier planning environment, means we are well placed for the future.”

South Yorkshire Housing Association in merger talks with Places for People

South Yorkshire Housing Association (SYHA) is discussing becoming a subsidiary of Places for People (PfP), one of the UK’s largest housing providers. The potential merger follows SYHA’s non-compliance with the Regulator of Social Housing’s (RSH) governance and financial viability standards.

In June 2023, RSH downgraded SYHA to ‘G3’ for governance and ‘V3’ for viability after identifying financial governance weaknesses, including miscalculations of loan covenant compliance. The regulator noted that SYHA has “limited financial capacity” in the short to medium term and is working with external advisors to secure its long-term stability.

Under the proposed deal, PfP, which manages 245,000 homes and generates £830 million in annual turnover, would integrate SYHA’s 5,000-home portfolio. If completed, the merger would provide financial stability for SYHA while expanding PfP’s presence in South Yorkshire.

SYHA CEO Larry Gold said the partnership would help sustain the organisation’s 50-year legacy and benefit customers, employees, and the wider Sheffield City Region. PfP Group CEO Greg Reed highlighted the strategic alignment, stating that combining resources would strengthen their ability to support communities in the region.

Avant Homes submits plans to deliver £20m home development in Wakefield

Wakefield-based housebuilder Avant Homes West Yorkshire has submitted plans and exchanged contracts on a 5.63-acre site in Lofthouse Gate, Wakefield to deliver a £19.9m, 80-home development.

Called Lingwell Gate and located on Lingwell Gate Lane in Lofthouse Gate, the site will consist of one-, two-, three-, and four-bedroom homes.

The proposed development will feature 15 of Avant Homes’ practically designed, energy efficient house type.

If given the go ahead by Wakefield Council, work at the development is set to commence in August, with the first residents expected to move into their new homes in spring 2025.

Avant Homes West Yorkshire managing director, Richard Hosie, said: “As a local business, we know first-hand what a great place Wakefield is to live, with its many amenities and excellent access to transport links.

“Our objective as a housebuilder is to provide quality new homes for everyone whilst developing the communities where we build, and our plans for Lingwell Gate meet those criteria.

“Our proposed development features a mix of practically designed, energy efficient house types that will appeal to a range of buyers, including first time buyers, second steppers, families and downsizers. We now look forward to Wakefield Council considering our plans.”

Lloyds Banking Group seeks developer for 100-home affordable housing project

Lloyds Banking Group has launched its first affordable housing redevelopment project in Pudsey, inviting developers to build 100 new homes. The fully affordable scheme, which has backing from Leeds City Council, includes a mix of one- —to four-bedroom homes, apartments, and green spaces.

The site, a former commercial property, is part of Lloyds’ broader strategy to repurpose decommissioned assets for social housing. Developers will need to finalise designs and secure planning approval from the council.

This initiative is the first of its kind by a UK bank, marking Lloyds’ direct entry into the social housing sector. The Group, which has provided £20 billion in social housing funding since 2018, is reviewing additional sites for redevelopment. If approved, construction could begin by late 2026.

Morrisons to close cafés and counters, 365 jobs at risk

Morrisons is set to close 52 cafés, 18 market kitchens, 17 convenience stores, 13 florists, 35 meat counters, 35 fish counters, and four pharmacies due to rising operational costs. The supermarket chain stated that the affected services were no longer financially viable.

While most impacted employees will be offered redeployment within the company, 365 jobs remain at risk of redundancy. CEO Rami Baitieh described the closures as necessary to refocus investment on areas that customers prioritise.

Grand Central plans direct Lincolnshire-London rail service by 2026

Grand Central has notified Network Rail of its plans to introduce a direct rail service between Lincolnshire and London, connecting Cleethorpes, Grimsby, Habrough, and Scunthorpe to King’s Cross. The company will submit a formal application to the Office of Rail and Road (ORR), and pending regulatory approval, services are expected to launch by late 2026.

The proposed route would add over 775,000 new seats annually, improving regional connectivity and optimising underused rail capacity. Trains will integrate with Grand Central’s existing services via Doncaster, offering more travel options for passengers.

Managing Director Paul Hutchings highlighted the significance of restoring direct rail links to Cleethorpes, last available in 1992. The service aims to enhance economic ties between Lincolnshire and London, benefiting passengers and businesses.

The initiative follows London North Eastern Railway’s failed attempt to establish a similar route in 2023. Grand Central’s expansion could reshape regional transport and support economic growth in underserved areas if approved.

Avant Homes secures approval for £45m North Lincolnshire development

Avant Homes has received planning approval for a £45 million residential development in Yaddlethorpe, North Lincolnshire. The 20.1-acre site, named Moorwell Meadows, will feature 200 energy-efficient homes with two to five bedrooms.

Construction is set to begin in May, and the first homes will be available for sale in October. A show home is expected to open in November, and initial residents are scheduled to move in by December. The project includes a £170,000 community contribution towards improvements to Riddings Community Centre.

Delivered by Avant Homes North Yorkshire, the development aligns with the company’s expansion strategy in Lincolnshire. Avant Homes operates across the Midlands, northern England, and Scotland, focusing on multi-tenure housing for private, rental, and affordable sectors.

Lloyds invites developers to transform Pudsey site into 100 new homes

Lloyds Banking Group’s first affordable housing redevelopment project in Pudsey has been put on the market, inviting developers to transform the site into 100 new homes. Lloyds Banking Group have designed a fully affordable housing plan for the site for prospective developers to follow, which has full support from Leeds City Council. The plans include a 93-unit affordable housing scheme comprising both houses and apartments, catering to diverse needs with a mix of 1, 2, 3, and 4-bedroom properties, along with green spaces and residential gardens. By regenerating a brownfield site, the development aims to provide much-needed affordable housing in an established community while contributing to urban renewal efforts. The successful developer will take forward a final design scheme to Leeds City Council to obtain full planning consent.
Lloyds Banking Group is the first UK bank to enter the social housing market directly, offering families at risk of homelessness access to affordable housing. This initiative aligns with the Group’s commitment to repurpose decommissioned commercial properties for social housing, announced in July 2024. It is expected that construction could begin in late 2026. Mark Burton, Lloyds Banking Group Ambassador for Yorkshire and The Humber, said: “This is an important first step in our plan to provide around 100 new affordable homes at our site in Pudsey and I am delighted to see it. “The lack of genuinely affordable housing in our communities means too many people are living in insecure or poor-quality conditions. “We’re working with local authorities in order to understand where our former sites may be well-positioned to support residential needs and I hope what we are seeking to do in Pudsey sparks many similar solutions around the UK – helping more people to access a safe and sustainable home.”

West Yorkshire logistics company expands capabilities and services amid growth

West Yorkshire-based logistics limited company Joda Freight, specialists in abnormal load transportation, haulage and warehousing services, has announced the expansion of its vehicle fleet and warehousing capabilities, following the company’s growth in 2024. 
Joda Freight are a leading logistics and warehousing solutions company, with their revenue growing 10% in 2024 from 2023 figures. A continued positive trajectory in 2025 is facilitated by its continued investment in the capabilities and workforce, including the expansion of their vehicle fleet to include six new Volvo FH500 tractor units in 2025 alongside two Hiab vehicles previously purchased during 2024.  
These new vehicles will join the Joda fleet in phases from March, with all six new vehicles operational by April. Each of the vehicles will be equipped with driver comforts including fridges and microwaves, and additional driver aids in the form of Volvo’s new moving off information system (MOIS).  
Joda have also acquired an additional 62,000 sq. ft. warehousing unit, increasing their total warehousing capacity to 200,000 sq. ft., to further reinforce the forecasted positive trajectory in 2025. This new warehouse on the edge of Keighley, close to the Joda headquarters, has been operational since February 1st 
From this warehousing facility, Joda’s contract logistics, long and short-term storage and pick and pack services will see additional floor storage and racking capabilities to meet customer requirements. Previously acquired warehouse space in Bradford, in the first quarter of 2024, saw the space reach capacity within two months of becoming operational.  
These expansions contribute positively towards Joda’s aims for 2025 to continue to grow its nationwide client roster. In particular, the logistics provider aims to grow its market share in the engineering sector.   
Neil Tullett, co-owner of Joda Freight, says: “To follow the strong year in 2024, and with our increased focus on expanding our haulage and warehouse capabilities, I’m pleased to report our continued growth. Since taking over the business in 2023, Joda’s continued focus on expanding its fleet and operational capabilities to expand our client roster, sees us going from strength-strength.” 

Lincoln student accommodation to be converted into HMO and flats

Portland Halls, a student accommodation block on Portland Street in Lincoln, will be converted into a house of multiple occupation (HMO) and flats following approval from the City of Lincoln Council.

C Student Services Ltd submitted the application to split the building into four units, including a seven-bedroom HMO on the ground floor, two four-bedroom flats on the first floor, and another four-bedroom flat on the second floor. The property, located near High Street, has housed students for over 20 years.

The council approved the plans with the condition that development must begin within three years. The application did not provide a reason for the change of use.

Since 2016, Lincoln has required special planning permission for HMO conversions to regulate unregistered and unlicensed properties.

Prasco UK holds prices steady despite rising costs

Prasco UK has confirmed it will not raise prices on its replacement car parts despite upcoming increases in the National Minimum Wage and National Insurance Contributions from April 2025.

The Doncaster-based supplier, which offers over 30,000 parts for brands including MG, BYD, and Tesla, has implemented cost-saving measures through operational efficiencies and supply chain optimisation to absorb rising costs.

Managing Director Kelvyn Waugh acknowledged industry concerns over profitability but stated that Prasco UK remains committed to maintaining competitive customer pricing. While future adjustments cannot be ruled out, the company has no immediate plans for price increases.

The announcement comes as many businesses in the motor trade prepare for higher operational costs, raising concerns about margins and repair affordability.

Yorkshire whisky distillery wins gold at food and drink awards

The team at a Hunmanby based whisky distillery is celebrating after one of its whiskies won a gold award in a prestigious national competition. Filey Bay Flagship Single Malt Whisky won the accolade at the Farm Shop & Deli Product Awards which recognise and reward the best food and drink products that are sold in farm shops, delis and other specialist food retailers nationwide. “Independent and specialist retailers are responsible for a large amount of our whisky’s sales, so it’s a real honour for Flagship to win a gold in this sector. It’s great news and will certainly be a talking point when we visit the Farm Shop & Deli show next month,” said Spirit of Yorkshire’s UK Sales Manager, Morgan McDermott. The judging team included leading farm shop and deli retailers, top wholesaler buyers and industry experts. The feedback for Filey Bay Flagship included: “Superb product, exquisitely packaged, and delivers on the nose and in taste”, “A lovely, well packaged whisky. Excellent information on the box, and good use of the viewing window to view the product” and “I love everything about this. Attention to detail, story, taste. This brand will go from strength to strength.”

Works starts at major new distribution centre in Doncaster

McLaren Construction Midlands and North has commenced construction on a distribution centre for retailer, TJ Morris Ltd, at the Unity Yorkshire development in Doncaster. The new distribution centre will play a crucial role in the region’s industrial expansion, bringing 1,000 new jobs and opportunities to Doncaster and the region. Unity Yorkshire is a flagship mixed-use regeneration project, transforming the area into a business and employment hub, set within a sustainable mixed use flagship development. The new 1 million sq ft facility, located at Unity Connect, will consist of a fully automated distribution hub, with a 43-metre-high bay and significant low bay and cold storage areas, designed to support TJ Morris’ expansion plans. A groundbreaking ceremony marked the significant milestone in the expansion of T J Morris’ national distribution network. The event was attended by Ros Jones, Mayor of Doncaster, and representatives from City of Doncaster Council and Business Doncaster, Waystone Hargreaves Land, Atkins Realis, some of the logistics and automation team for TJ Morris and McLaren Construction Midlands and North. Construction is set to progress rapidly, with completion scheduled for October 2026. Upon completion, the facility will hand over to Witron for installation of automated picking equipment. The site will be highly automated and will service 300+ Home Bargains stores by mid 2028. Stuart Goss, Operations Director at McLaren Construction Midlands and North, said: “We are thrilled to break ground on this major project for TJ Morris Ltd. This development is a testament to our expertise in delivering high-specification logistics facilities that drive business growth and regional economic development.” Neil Kelson, Head of Logisitics at TJ Morris, added: “The new Distribution Centre represents a key step in our logistics strategy, enabling us to serve our customers more efficiently and support our expansion plans while creating significant employment opportunities for the local community.” Ros Jones, Mayor of Doncaster, added: “Today marks a milestone for the local area and wider City of Doncaster as we break ground on this state-of-the-art Distribution Centre. “This new addition to the Unity Yorkshire development not only strengthens our local community but also creates new, well-paid jobs for our residents. This is just the start of such a transformational development and is testament to our city’s growth and commitment to building a brighter future for all.” Helen McLoughlin, Director at Waystone Hargreaves LLP, said: “This is a tremendously exciting moment for everyone connected with the development of Unity. TJ Morris quickly identified the many benefits that Unity has to offer as a strategic location, so we are thrilled that they are commencing work on-site. “This will be a landmark building which will well and truly put Unity Yorkshire on the map, and we look forward to seeing construction progress in the months ahead.”

Stage One Creative Services plans expansion to meet global demand

Stage One Creative Services, a North Yorkshire-based set manufacturer, has submitted plans to expand its facilities to accommodate growing demand. The company, known for producing large-scale sets for events like the London Olympics, Eurovision, and major music tours, aims to extend its Minster Hag Business Park site near Tockwith.

The firm employs 134 people and has seen significant growth, particularly in the Middle East. It currently operates from both Minster Hag and Marton Business Park, where it utilises three aircraft hangars for manufacturing. However, documents submitted to North Yorkshire Council highlight space limitations and the need for a dust-free environment for electronics and precision engineering.

The proposed expansion includes extending the Minster Hag site and constructing four detached single-storey buildings. The company plans to reorganise operations, consolidating manufacturing, design, and logistics at Marton Business Park while focusing on electronics, automation, R&D, and administration at Minster Hag.

Stage One says the expansion is crucial to maintaining its position as a global leader in set production and will support future business growth and job creation.

York Handmade provides bricks for new hotel in historic Swiss town

York Handmade Brick Company has supplied over 40,000 specially manufactured brick slips and 30,000 paving cobbles for Lo Dze, a brand-new hotel development in the heart of Martigny, one of Switzerland’s most historic towns. Lo Dze is now open, situated 30 metres from the main square in Martigny, and consists of two separate buildings around a central courtyard which is open to the public. Above ground it comprises Borsari, a boutique hotel with 50 rooms and the Kitchen 180 (Lo Dze is exactly 180 km away from the very centre of the Roman cities of Lyon, Milan and Zürich), which services La Saucithèque bar, Le Cercle restaurant and Café Alphonse, the courtyard and terraces. Below ground Lo Dze features a vast Roman bathing experience, Les Bains Publics, in a space that was formerly Les Caves Orsat, a 19th Century winery. This contract, one of the most prestigious in York Handmade’s 37-year history, is worth £65,000 and is an endorsement of the company’s recent decision to invest £1.5m in brand-new machinery. John Cretton, of QDS Leisure, who hasterminded this project, explained why he chose York Handmade to supply the bricks. “I was looking for a brick that was handmade with the right colours and the right size. The massive nature of the architecture, one side of the street facade is windowless apart from a half-moon opening on the ground floor, meant that the brick had to be visually strong. Overall, it was a winning combination of colour, form, texture and cost. “The result is superb. The exterior at once conveys the mass of the objects and the history of the town as well as the extraordinary material quality of the underground Roman Baths, Les Bains Publics. York Handmade’s products gave us that and a bonus to boot – a building that stands out from the pack; no one just walks by Lo Dze. “We have used York Handmade’s pavers to complete the public areas in the project, denoting areas that are both for circulation and al fresco dining. The brick slips cover the buildings that sit on the main street side of the project, linking the building architecturally with its baths and the town’s Roman heritage. “The hotel is now open and is proving very popular. There’s no doubt that the baths, the hotel and the restaurants are now a catalyst for the town, linking its future to its important Roman and early 20th century pasts. “Martigny was an important Roman town, the last town to the north built by the legionary architects. It had three Roman bath houses. We have built the fourth. Interestingly, pottery and other remains from Roman Britain has been found in Martigny. The concept for the hotel was first developed over 10 years ago. Now that dream is a reality.” Mark Laksevics, Sales & CPD Manager for York Handmade, said: “This is a very prestigious project for us. It has been a tremendous boost for our factory and a great honour to contribute to a pioneering and innovative development in such an historic town. “I have been proud to work closely with John Cretton of QDS Leisure for the past two years to ensure that our bricks are perfect for this development. The result is amazing and is a magnificent showcase for our bricks. “A shout-out should also go to Tiffany Thomas, our hard-working and extremely efficient Sales Office and Logistics manager, who ensured that all our bricks arrived safely and seamlessly in Martigny on time.” David Armitage, the chairman of York Handmade, continued: “These are crucial times for us at York Handmade. We have invested £1.5 million in brand-new machinery which has transformed how we make our bricks. “Over the years, we have undertaken significant technological improvements, culminating in this overhaul and renewal of our manufacturing process, which has speeded up production, facilitated two brand-new products and increased efficiency. “This has proved to be a transformational move, by far the biggest and most significant in our history. Our revolutionary new manufacturing line combine three different types of brick – the Handmade Style, as currently produced, together with Water Struck and Pressed Bricks. “For this very special project, we have supplied 327x102x50mm Hunsingore Blend bricks, which have been cut into brick slips. They have helped to make the new hotel visually stunning and blend in seamlessly with the other historic buildings in the town.”

RegTech pioneer launches game-changing software to £61 billion European market

A Yorkshire-based regulatory technology business has launched its game-changing compliance solution to a market valued at £61 billion in Europe alone. Rubicon Bridge’s pioneering Reg Tech Tool™ has already revolutionised regulatory compliance for food supplements and vitamins. Now the RegTech pioneer, which is based in Hull’s C4DI (Centre for Digital Innovation) tech hub, is helping sports nutrition brands overcome the complex barriers that often prevent them from expanding into international markets. Sports nutrition products typically contain numerous ingredients, making regulatory compliance across multiple countries particularly challenging. What would traditionally take brands approximately 80 days to process can now be completed in under five minutes using Rubicon Bridge’s technology. Rubicon Bridge Business Development Director Lee Gray said: “Customer demand has been a key driver for this expansion. Many brands we’ve worked with historically have both sports nutrition and vitamins in their product ranges and, until now, we’ve only been able to help them with the latter. “This expansion is about better supporting our existing customers while entering an exciting product category.” The sports nutrition market is projected to grow at 7.1% between 2024 and 2030, representing a significant opportunity for brands looking to expand internationally. The UK and Germany in particular have shown strong consumer interest in sports nutrition products, while Amazon EU represents the second-largest Amazon marketplace after Amazon.com. “American brands have some of the best sports nutrition products, often years ahead due to their innovation cycle and research capabilities,” Lee said.

Cloud hosting specialist ramps up growth plans following acquisition by private equity firm

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A cloud hosting, disaster recovery and cyber resilience technology company is ramping up its growth plans following its acquisition by private equity firm MonacoSol. virtualDCS, based in Leeds, is the latest addition to tech and software-focused MonacoSol’s portfolio. Manchester-headquartered MonacoSol has taken a majority stake in virtualDCS for an undisclosed sum. The co-founders of virtualDCS – Richard May, John Murray and Dan Nichols – will remain with the business for the next phase of its journey. Following the deal, virtualDCS has moved its headquarters from The Waterscape in Kirkstall to larger offices at Wellington Place, a modern development in Leeds city centre. The new base will enable virtualDCS to accommodate a growing team in line with its expansion strategy. It currently has 22 staff, including developers, system analysts, network engineers and cyber security specialists, and expects its workforce to grow by around a dozen over the next 12 months backed by MonacoSol’s investment, with recruitment plans focused on expanding its commercial and technical teams. The business, which was founded in 2008 and turns over £2.8m, works directly with customers as well as through a variety of channel partners, including Phoenix Software, CCS Media and Vapour Cloud, that deliver its cloud services to their own client base. Customers of virtualDCS span sectors ranging from retailing, local government, hospitality, food wholesaling, healthcare, IT support and fuel supplies to research outfits and professional bodies. Clients include B&M Retail, The Rix Group and its diverse portfolio of businesses, and Achilles, a supply chain risk management software provider. The company delivers a range of cloud services, including a host of purpose-built Software as a Service (SaaS) products which enable companies to protect their data and enhance their cyber resilience and security. Richard May said: “This acquisition is a key moment in virtualDCS’s journey. By joining forces with MonacoSol, we’re gaining the resources and expertise needed to accelerate our growth and enhance what we offer to our customers. “It’s very much business as usual for our clients and, with the added firepower of MonacoSol, we’re in an even stronger position to innovate, expand our capabilities and deliver exceptional solutions. “I’m confident this partnership will drive the business to new heights while continuing to provide the level of service to which our customers are accustomed.” MonacoSol is the family office of technology and software entrepreneur Richard Beaton, who is its chairman. His sons Ollie and Eddie are its chief executive and chief financial officer respectively. In October, MonacoSol announced a war chest of £40m to power its acquisition strategy. It takes majority stakes in B2B software and technology businesses and provides them with capital to help them grow. The other companies in MonacoSol’s portfolio are Open ECX, an AP automation software provider, recruitment vendor management platform Hiring Hub and graduate sales and training recruitment provider Furza, which are all based in the north. Ollie said: “We are extremely excited by the acquisition of virtualDCS. It’s an innovative cloud business with a knowledgeable team and a loyal customer base, and we are thrilled to be involved. “Alongside the financial investment, the MonacoSol team has a great deal of experience in the cloud technology industry to help support the virtualDCS team to accelerate the next phase of growth for the company.” MonacoSol was advised on the acquisition by Rebecca Grisewood at law firm Gateley, Colin Smyth and Jake Hodgson at RSM UK and David Taylor at Harts Chartered Accountants. Cathy Cook and Brad Stewart at Yorkshire firm LCF Law provided legal advice to virtualDCS on the transaction.

Manufacturing output contracts in the quarter to March

Manufacturing output volumes fell in the three months to March, at a slightly steeper pace than in the three months to February, according to the CBI’s latest monthly Industrial Trends Survey (ITS). Looking ahead, manufacturers expect output volumes to be broadly unchanged in the quarter to June. The volume of total order books in March was stable relative to last month, while export order books improved slightly. Both total and export order books are still well below their long-run averages. Firms reported that stock adequacy picked up compared with February, with the balance returning above the long-run average. Expectations for selling price inflation over the quarter ahead were largely unchanged relative to February, remaining above the long-run average. The survey, based on the responses of 344 manufacturers, found:
  • Output volumes fell in the three months to March at a steeper pace than last month (weighted balance of -18%, from -12% in the quarter to February). Manufacturers expect output volumes will be broadly unchanged in the three months to June (-2%).
    • Output decreased in 14 out of 17 sub-sectors in the three months to March, with the decline driven by the glass & ceramics, building materials and electrical goods sub-sectors.
  • Total order books were reported as below “normal” in March (-29% from -28%). The level of order books remained far below the long-run average (-13%).
  • Export order books were reported as below “normal” but improved relative to last month (-29% from -36%). This was still below the long-run average (-18%).
  • Expectations for average selling price inflation were broadly unchanged in March (+22% from +19% in February). Expectations remain above the long-run average (+7%)
  • Stocks of finished goods were reported as more than “adequate” in March (+16% from +4% in February), with stock adequacy now standing above the long-run average (+12%).
Ben Jones, CBI Lead Economist, said: “Conditions in the UK’s manufacturing sector remain subdued. Although there are some pockets of strength, notably in the aerospace and defence sectors, many firms continue to report that their order books remain weak. “Manufacturers responding to the survey reported that customers are generally nervous about proceeding with capital investments and are conserving funds ahead of upcoming increases to National Insurance and minimum wages, leading orders to be cancelled or at least delayed until later in the year. “While output expectations are not as gloomy as at the turn of the year, the sector looks set to remain in a holding pattern in the short-term. “Next week’s Spring Statement and continuing challenges to the public finances means a lot of the growth the country needs will have to come from the private sector. But businesses need a reason to grow and invest in uncertain times. “A number of measures could help boost confidence – setting an ambitious R&D spending target so the government can position the UK as a world leader for innovation or ensuring that the Apprenticeships Levy is fully flexible to allow companies to invest in a range of employee training, will go some way to delivering the sustainable growth the country needs.”

Arriva seeks approval for expanded rail services in Yorkshire and the Humber

Arriva Group has submitted an open access application to the Office of Rail and Road (ORR) to introduce direct rail services between Cleethorpes, Grimsby, and London. The plan would extend Grand Central’s open access route to Doncaster, addressing a 30-year gap in direct rail links from Cleethorpes to the capital.

The service will add four daily return journeys if approved, providing 775,000 additional seats annually. A Greater Lincolnshire Local Enterprise Partnership study estimates the Cleethorpes-London connection could generate up to £30.1 million per year for the regional economy.

Arriva’s open access model aims to improve connectivity without government funding by using underutilised network capacity. The company has also applied for additional Bradford-London and York-London services and is seeking to extend its track access rights until 2038. Arriva is the only UK rail operator managing national rail contracts, concessionary services, and open access routes.