Yorkshire administrations fall but economic fragility persists as construction and manufacturing lead insolvency cases
The number of companies in Yorkshire filing for administration during the first nine months of the year has fallen by nearly a quarter, according to figures from Interpath Advisory. However, construction and manufacturing have faced a challenging year.
Analysis of notices in The Gazette shows there have been 75 administrations across Yorkshire in the first nine months of 2024, representing a fall of 22.9% when compared to last year’s figures (Q1 – Q3 2023: 97). For Q3 2024, the figures showed that administrations have fallen when compared to the same period last year, dropping from 35 to 27 administrations.
The figures also reveal that there remains fragility in the economy in certain sectors. The most impacted sectors in Yorkshire have been building & construction with 13 cases and industrial manufacturing (12 cases) between Q1 and Q3 2024, in line with national trends.
Nationally, there were 1,016 administrations across the UK between January and September 2024, in line with the corresponding figures for last year (January to September 2023 1,013 administrations).
The building & construction sector has been the most impacted by administrations nationally since the start of the year with 147 cases, followed by business services (130 administrations), industrial manufacturing (119 administrations) and retail (93 administrations). Together these sectors account for almost half (48.3%) of total administrations in the UK economy.
Commenting on the figures, James Clark, Managing Director and Head of the Yorkshire team at Interpath Advisory, said: “Yorkshire has bucked the national trend and seen cases fall, which is encouraging and pays testament to the resilience of our business community – in particular, retail and casual dining has fared much better than expected and has surprised a number of commentators with its resilience, but there are still real areas of distress in the economy, not least in construction and manufacturing, which have both suffered.
“Both have battled with a sustained price inflation and for construction businesses, they’ve had to square that with the prevalence of fixed price contracts that have tipped many into insolvency.
“We are also seeing a number of clients reach out for assistance dealing with issues under the relatively new Building Safety Act – another issue creating turbulent conditions for the construction sector as enforcement of remedial works takes centre stage, putting further strain on cash flow.
“Looking ahead, we expect administrations to be near to last year’s figures come December as some businesses struggle to respond to market conditions, but also as others find the pressure of growth too much to bear. At this point, it will be interesting to see whether the retail sector continues to weather the storm.
“Whatever position they are in, business leaders will be looking to the Budget at the end of this month for some stability and visibility so they can make better, more informed decisions to guide their organisations solvently through this fragile economic period.”
Wykeland and Yorkshire Wildlife Trust partner to put nature at heart of projects
Developer Wykeland Group and Yorkshire Wildlife Trust have announced a framework agreement to create developments in which people and nature thrive together.
The agreement builds on more than a decade of successful collaboration between the two organisations and aims to ensure commercially successful development and ecological enhancement go hand in hand.
The innovative Ecology and Biodiversity Framework Agreement commits the two organisations to work together constructively to create and nurture wildlife and natural habitats alongside the delivery of sustainable, commercially-viable developments.
The agreement with Yorkshire Wildlife Trust commits Wykeland to embedding ecological principles across the company’s entire portfolio of developments.
Representatives from Hull-based Wykeland and the Trust came together for an event at Wykeland’s Bridgehead business park in Hessle, East Yorkshire, to celebrate over a decade of partnership between the organisations, introduce the new agreement and formally sign it.
Wykeland and the Trust have worked closely together since 2013 to demonstrate how commercial development and environmental stewardship delivers better outcomes for both wildlife and people.
A flagship project from their collaboration has been a 1km nature trail at Bridgehead, near the Humber Bridge, designed and created by Wykeland, working in partnership with the Trust. The Trust manages the pathway and its surrounding natural habitat on behalf of Wykeland.
Wykeland has also worked with community volunteering charity, The Conservation Volunteers, as well as local primary schools to create the Jubilee Woodland, which features 1,200 trees and borders Wykeland’s Melton West business park in East Yorkshire.
A major element of the new agreement is the integration of the Trust’s expertise at the earliest stages of Wykeland’s design and development processes, as a constructive and critical friend.
Wykeland will actively involve the Trust from the initial planning and design phases, ensuring that ecological considerations are prioritised in new and existing projects, including developments such as Bridgehead, Melton West, the Fruit Market urban village in Hull, and Europarc in Grimsby.
Wykeland Managing Director Dominic Gibbons said: “We’re delighted to be continuing our work with Yorkshire Wildlife Trust to enhance not just our future developments, but also our existing ones.
“We’re committed to ensuring all our developments benefit the businesses that occupy them, and the people who work in and use them, as well as enriching the natural environment.
“This new agreement builds on the great work we’ve done with the Trust over the past 10 years. It commits our team and the Trust to work even more closely together across our entire portfolio to create commercially successful and attractive places where both people and nature thrive.”
Yorkshire Wildlife Trust is a charity dedicated to conserving, protecting and restoring wildlife and wild places in Yorkshire. It looks after more than 100 nature reserves across Yorkshire and is involved in hundreds of other conservation-related projects.
The Trust’s Chief Executive Officer, Rachael Bice, said: “Driving better outcomes for wildlife in new development is critical and possible, even when there is pressure for strong economic growth and more homes.
“The relationship we have built with Wykeland shows solutions can be found for ecologically sensitive development when professionals bring together their different perspectives, that benefit wildlife and create attractive, healthier places where people want to live and work.”
Prime Leeds industrial unit sells in £8.74m deal
A prime, last-mile distribution warehouse that spans more than 100,000 sq ft just outside Leeds city centre has sold in an £8.74m investment deal.
Unit 3 on Benyon Park Way, which is off Lowfields Road and close to Gelderd Road, has been sold by Alt, an online platform for investing in UK warehousing, and Inflection Real Estate to an institutional investor.
Alt and Inflection were advised by Leeds property consultancy, GV&Co’s investment division and Southsea Capital acted for the buyer. The sale reflects a net initial yield of 6.75%.
The building offers 105,768 sq ft of space, which includes more than 7,000 sq ft of office accommodation spread over two storeys. It sits in a large and fully secure site extending to 5.25 acres and is 1.5 miles from Leeds city centre and less than a mile from the M621.
The whole site is let to Encon, the independent distributor of insulation materials, interior building products, fire protection and roofing materials. The company has occupied the building since 2008 and has a lease until 2028.
Daniel Walker, from GV&Co, said: “After embarking on a successful asset management strategy, we’re delighted to achieve this sale for our client, which reinforces how much demand there is in the market for prime, last-mile industrial premises in Leeds.”
Oliver d’Souza, from Southsea Capital, added: “The investment is a great acquisition for my client. The location supports the buyer’s wider strategy of acquiring high quality and well-connected assets in key cities throughout the UK.”
Ben Cassey, from Inflection Real Estate, added: “In challenging market conditions we pushed on the rent materially at the rent review and secured an institutional exit that delivered returns of circa 25% internal rate of return (IRR) to our investors. We continue to look for well-located, under-rented logistics opportunities in partnership with Alt.”
Four Yorkshire businesses make shortlist for UK Employee Ownership Awards 2024
The eoa has shared the list of businesses shortlisted in the UK Employee Ownership Awards, including four Yorkshire-based firms.
The awards celebrate the achievements of businesses that truly deliver people power. They recognise businesses and individuals who drive effective employee ownership (EO) practices and empower employee owners to unlock Great EO impacts.
Ranging from SMEs to larger firms and across niche manufacturing, heating, renewable or electrical specialists, care, PR, law, and farming, these shortlisted businesses have one thing in common – their business model and governance supports employees to have a stake and a say in the business.
James de le Vingne, Chief Executive of the eoa, said: “The calibre of applications show the remarkable accomplishments of employee owned businesses at various stages of EO from regions and industries across the UK.
“These proudly employee owned businesses are leading the way in developing Great EO practices, delivering increased employee wellbeing and business performance, and contributing to People Powered Growth in the UK.”
Martin Camp, Head of Business Development and Growth at Howden, said: “We’re delighted to support the UK Employee Ownership Awards 2024, celebrating the Great EO results delivered by employee owners and businesses that fully leverage their EO approach, roles, and actions.
“These submissions bring to life how individuals and businesses are delivering and evolving employee ownership to support better livelihood outcomes for employees, as well as more innovation and growth.”
Shortlisted Businesses
‘EO Transition of the Year’
Shortlisted:
- Aspect – strategic communication consultancy based in Scotland.
- Blue Flame – heating, renewable and electrical business based in Cornwall
- Ignis – consumer/B2B comms and marketing agency based in London
- Wildfire PR – PR and Tech PR agency based in London.
- JP Hildreth – Consultants in engineering projects for manufacturing excellence, Chesham
- NEL technologies – Specialist in Flexible Heaters and Thermal Management Solutions, Newcastle
- Nikwax – High performance outdoor wear solutions, Wadhurst, East Sussex
- Principle Cleaning – Commercial Cleaning of landmark properties, London
- Sewell Group – estates, Investment, construction, consultancy, data and facilities, based in Hull
- Solarsense – solar panels and other renewable technologies, based in Clevedon
- Answer Digital – digital consultancy, based in Leeds
- Gripple – manufacturer of wire tensioning, based in Sheffield
- Ison Harrison – Solicitors, Leeds
- Quintessa – technical and strategic consultancy, Warrington
- Riverford Organics – arming and food distribution, Devon
- Shaw Healthcare, care provider across the UK, Cardiff
- Tracey Calderwood of 1:1 Diet by Cambridge Weight Plan
- Harvey Hancock of Gripple
- Matrix Booking – Jade Loftus
- Riverford – Ed Scott
- Seetec – Ann-Marie Conway
Leeds cybersecurity company secures six-figure loan to support growth
A Leeds cybersecurity company has secured a six-figure loan from NPIF II – Mercia Debt Finance, which is managed by Mercia as part of the Northern Powerhouse Investment Fund II (NPIF II).
Xentra provides a full range of digital security solutions to clients including Leeds United FC, Leeds Bradford Airport, local councils, schools and NHS bodies. It is the third cyber venture from entrepreneur Henry Doyle, who previously co-founded both Altinet, the Leeds-based business that was sold to Arrow in 2020, and cyber training specialist Boxphish.
He acquired a majority stake in Xentra in January from the founder Marc Fairclough, who is now Chief Operating Officer. Since then they have led a growth drive, increasing the number of employees from two to 14 and winning a raft of high-profile clients.
The team now plans to double the size of the business within the next 12 months. The funding will provide additional working capital to support its growth and create four to five new jobs by the end of this year.
Xentra assesses clients’ needs and recommends the right solutions to help them secure their networks and meet standards such as ISO 27001. It provides managed services ranging from 24-hour monitoring to firewalls, email security and storage and is a specialist in safeguarding, supporting schools and colleges with a total of around 125,000 pupils.
Henry Doyle, CEO of Xentra, said: “As cyber risks increase, every organisation needs security but with so many different technologies and new threats emerging all the time, building the right infrastructure is a team game. Our experts help clients choose the right solutions and create a safe working or learning environment. The funding will help us deliver our customer acquisition strategy and continue our rapid expansion.”
David Wright of Mercia Debt added: “Xentra is a one-stop shop for all of an organisation’s cybersecurity needs. Henry has done a remarkable job to achieve such rapid growth in a matter of months and has built a strong management team. The NPIF II funding will provide the working capital they need to take the business forward.”
UK Infrastructure Bank becomes the National Wealth Fund
The UK Infrastructure Bank (UKIB) is becoming the National Wealth Fund (NWF), as announced by the Chancellor, Rachel Reeves, at the International Investment summit in London.
The new NWF will expand UKIB’s remit beyond infrastructure in support of the Government’s industrial strategy, building on its success over the last three years. With additional financial capacity and an enhanced risk budget, the NWF will be capitalised with £27.8bn to catalyse private investment in the market.
From its HQ in Leeds, the NWF will expand its team, securing additional sector expertise to support its new remit. Alongside boosting its private sector investments, it will continue to provide commercial and financial advisory services and lending to local authorities, strengthening its partnerships with Mayors to support the Government’s growth ambitions.
The new organisation will also take on a more sophisticated partnership role with Government departments, bringing investment expertise and policymaking closer together, to accelerate policy development which supports and grows the market.
The NWF will continue to make private sector investments against a clear set of principles, with a focus on crowding in private finance to sectors and technologies which are critical to the UK’s clean energy and growth ambitions. The government will set out further details of the NWF’s role in delivering the Industrial Strategy in a statement of strategic priorities, as well as reviewing the organisation’s success metrics, before the next financial year.
Chancellor of the Exchequer Rachel Reeves said: “Today’s announcements are the first step in delivering on this government’s central mission to secure sustainable growth, rebuild Britain and make every part of the country better off.”
John Flint, CEO at the National Wealth Fund, said: “It is a huge privilege to be entrusted with the responsibility of leading the National Wealth Fund.
“Building on the strong foundations we have laid as UKIB, we will hit the ground running, using sector insight and investment expertise that the market knows and trusts to unlock billions of pounds of private finance for projects across the UK.
“With additional capital to deploy against a bigger mandate, we stand ready to help the market invest with confidence, in support of the Government’s growth ambitions.”
Councillor James Lewis, leader of Leeds City Council, said: “We’re pleased to hear the announcement by Chancellor Rt Hon Rachel Reeves MP of the new steps for the National Wealth Fund and its headquarters in Leeds.
“Leeds is the UK’s second largest city for financial services, and a major hub for related professional services, and this latest announcement further reinforces the city’s progress and influence as we continue to attract major players such as the UK Infrastructure Bank, Bank of England and the Financial Conduct Authority who have all chosen to locate their major UK hubs in our city.
“These developments create exciting opportunities for local people, offering a wealth of new jobs and career paths. We have huge strengths in this area and offer a wealth of expertise underpinned by strong regional, national and international partnerships and a diverse range of businesses which puts us in a great position to support this initiative.”
Ground broken on café as part of £7.4m improvements at Rother Valley Country Park
Rotherham Council’s Deputy Leader, Cllr David Sheppard joined partners Kier Construction Ltd. to officially break ground on the site of a new café at Rother Valley Country Park this month.
The works are part of a series of £7.4m improvements at the park which will boast a waterfront development, housing a new 150-seater eatery and indoor function space with views extending over the lake.
The new development will also include external landscaping with an area for play outside the café for younger visitors. In addition, visitors will also benefit from new car parking facilities to the East of the lake, which will greatly improve accessibility and visitor experience.
The improvements at the popular country park are part of wider aims to build a thriving leisure offer and visitor economy in Rotherham.
Rotherham Council secured almost £20m from the government’s Levelling Up Fund to create new jobs and celebrate the hidden gems and green spaces that are unique to Rotherham’s heritage, transforming Rotherham into a major leisure destination.
Cllr Sheppard, who is also Cabinet Member for Social Inclusion and Neighbourhood Working, said: “The Council aims to grow Rotherham’s leisure economy by making the most of our unique assets and green spaces and investing in training to support jobs in this sector.
“Rother Valley Country Park is a landmark visitor attraction here in Rotherham, enjoyed by thousands of visitors from across the borough and all over the UK each year. I’m delighted work has started and I’m very much looking forward to seeing these improvements take shape, and eventually make what is a great day out even better.”
The improvements follow extensive public consultation, with people invited to give their views on the changes which would bring the greatest benefit to visitors of the park.
The partnership with Kier Construction will also build on the Council’s work on social value to promote local employment through council spending. Throughout the works the South Yorkshire based builders have committed to employing 18 local people on the project.
Dan Doherty, regional director for Kier Construction North and Scotland, said: “We are delighted to be delivering improvements to the facilities at Rother Valley Country Park. The new Visitor Centre will provide a fantastic space for local communities to come together to explore and enjoy the great outdoors, enhancing the overall experience for everyone who visits.”
In addition to the plans for Rother Valley, the Levelling Up funding secured by Rotherham Council is being used to transform part of Wentworth Woodhouse Grade I listed stable block to include a new commercial kitchen, café and events space, whilst Magna has benefited from exhibition upgrades and an improved visitor experience. Thrybergh Country Park will use the funding to refurbish its current café.
These investments will be underpinned by a skills package which will see the creation of Skills Street at Gulliver’s Valley Resort and a new incubator space at the former Maltby Grammar School which has now reached completion.
Research aims to boost farmers’ arable profits by converting air pollution into fertiliser
The University of Lincoln is part of a new Innovate UK project set up to improve growers’ profit margin by converting atmospheric pollutants into fertiliser within the crop.
Leading the six-partner project consortium is Crop Intellect, alongside the UK Agri-tech Centre, Dyson Farming, Barworth Research, and the Allerton Project, aiming to deliver a novel approach to the UK’s crop nutrition space.
Dr Apostolos Papadopoulos, Founder of Crop Intellect said specially-processed titanium oxide in a product called R-Leaf used daylight to capture and convert polluting nitrogen oxides directly into crop-usable nitrates.
He said the small but continuous doses of nitrate add up to an average of 50kg of nitrogen to every hectare during the growing season. “Extensive independent trials have demonstrated R-Leaf’s positive impact on crop productivity, with a six percent yield increase seen in cereals. Data also shows that R-Leaf can decrease the need for synthetic nitrogen fertilisers by up to 25 percent.
“In addition to converting pollutants (NOx) into nitrates, R-Leaf also breaks down nitrous oxide (N₂O), a damaging greenhouse gas (GHG) known to be 265 times more potent than CO₂, into benign nitrogen and oxygen. Farmers could utilise this technology to reduce their net GHG emissions, making this a unique opportunity for farmers to help move towards their net-zero emission targets.
“The estimated effect of R-Leaf’s N₂O capture is 5.4 tonnes of CO₂ per hectare, per year. Eventually, farmers may also be able to monetise their climate-change mitigation from using the proposed technology.”
“R-Leaf is already being used by UK farmers, supported by commercial distribution agreements, but recent experiments identified a powerful opportunity to combine the photocatalyst technology with certain species of bacteria that form symbiotic relationships with plants. The bacteria capture atmospheric nitrogen, converting it into ammonia for supply to the plant, in exchange for organic carbon and other nutrients.
“When we used these two technologies together, in a ‘farm standard’ crop of wheat, our estimation is that by combining R-Leaf with an appropriate bacteria, we can reduce nitrogen usage in wheat by 50 percent. That’s potentially a £100/ha profit for a UK grower.”
Stafforce appoints new operations manager for South Yorkshire
South Yorkshire-based recruitment agency, Stafforce has appointed Rachel Oldfield as operations manager for South Yorkshire.
This appointment is a key element of the ongoing transformation program at Stafforce, where new operational managers are being appointed to drive growth and deliver excellence to clients across the region.
Rachel’s appointment is particularly significant given Stafforce’s deep roots in South Yorkshire. With a strong background in recruitment and operational management, Rachel will play a pivotal role in expanding Stafforce’s service offerings.
Under her leadership, the company will not only continue to provide temporary labour solutions, it will also drive its support to permanent recruitment, solidifying its position as a comprehensive recruitment partner for businesses in the region.
Alison Cook, brand director for the North of the UK, commented on Rachel’s appointment: “We are thrilled to welcome Rachel to the Stafforce team. Her expertise and leadership perfectly align with our vision for growth and excellence in South Yorkshire.
“As a company with deep roots in this region, Rachel’s appointment marks a significant step in our transformation program. We are excited to expand our offerings beyond temporary labour, providing our clients with a full spectrum of recruitment solutions. Rachel’s leadership will be instrumental in achieving our ambitious goals.”
Rachel shared her excitement about joining the team “I am honoured to join Stafforce at such a pivotal time in the company’s growth. South Yorkshire holds a special place for the company, and I am eager to contribute to its ongoing success.
“My focus will be on delivering excellence to our clients and helping to expand our services to include permanent recruitment, ensuring we meet the evolving needs of businesses across the region.”
Sale to see The Regency Club in Sheffield reopen as care facility
Specialist business property adviser, Christie & Co, has sold the former restaurant, The Regency Club, in Sheffield.
The Regency Club was owned and operated by Kevin Johnstone for over 10 years before coming to the market in 2019. The site attracted interest from the local hospitality market and latterly caught the interest of a number of care providers looking to redevelop the site.
Following a confidential sales process with Alex Rex and Hayley Hughes at Christie & Co, it has been purchased by a care operator with interest in homes across the country.
Their application was accepted on the basis that their plans to demolish the existing private club and erect a single-storey residential care facility, made up of six apartments with a communal lounge, offices and a pre-fabricated training room, were approved by the local council.
Alex Rex, Senior Business Agent – Pubs & Restaurants at Christie & Co, said: “The Regency Club was a popular social hot spot known to the local community of Sheffield and was further afield.
“The transformation from a licensed premises to a housing development to provide support for vulnerable adults was approved by the local authority in early 2024 and the sale concluded swiftly thereafter. We wish Kevin all the very best for the future.”
The Regency Club was sold for an undisclosed price.
