Yorkshire business confidence soars to highest in the UK
Business confidence in Yorkshire rose 13 points during January to 48% – the highest of all UK regions and nations – according to the latest Business Barometer from Lloyds Bank.
Companies in Yorkshire reported higher confidence in their own business prospects month-on-month, up 16 points to 42%. When taken alongside their optimism in the economy, up 12 points to 55%, this gives a headline confidence reading of 48%.
The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
A net balance of 29% of businesses in the region expect to increase staff levels over the next year, down by eight points on last month.
Overall UK business confidence remained steady in January, dropping just one point from December’s reading of 40% to 39%. Firms remained positive about their future trading prospects, despite a two-point dip month-on-month to 41%, and were optimistic about the economy overall, reporting a reading of 38%, up one point on December’s result. The net balance of businesses planning to create new jobs in the next twelve months decreased marginally by four points to 29%.
Every UK nation and region maintained a positive overall confidence reading in January, with four reporting a higher reading than last month. Along with Yorkshire, Scotland (up 13 points to 37%), the West Midlands (up nine points to 39%) and the South West (up eight points to 37%) all had stronger confidence readings month-on-month.
Steve Harris, regional director for Yorkshire at Lloyds Bank Commercial Banking, said: “These figures mark a fantastic start to the new year for Yorkshire firms. Despite ongoing inflationary challenges, coupled with market expectations, there are clear signs firms are confident about what coming months will bring.
“The resilience SMEs have shown throughout the pandemic has put them on positive footing. While there will inevitably be bumps on the road ahead as the UK continues its recovery, these latest findings give us cautious optimism that investment and growth will be defining features of the year ahead.”
Industry sector performance was mixed during January with confidence among manufacturers increasing by three points to 43%, reaching its highest level for three months due to an easing of supply chain pressures. Retail confidence also rose (up one point to 44%) while confidence among firms in IT/communications remains particularly strong at 72%.
The impact of Omicron over the festive period meant the service sector extended its recent run of modest decreases in January, dropping one point to 38%. Positively, hospitality has recovered some of December’s decline, rising from 6% to 38%.
Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: ““January’s survey shows a continued resilience with minimal fluctuation as economic optimism remains at a historically strong level.
“A larger decline in confidence was potentially prevented by the reduction in Covid infection rates from early January and the prospects of the easing of restrictions across the UK.
“However, businesses remain cautious about the pandemic and are facing into challenges from rising cost pressures although many are raising their prices in response.”
Knights becomes top law firm in York and expands East of England presence
Knights, one of the UK’s fastest growing legal and professional services businesses, today announces that it has agreed to acquire Langleys Solicitors LLP (“Langleys”), a leading independent law firm in York and Lincoln.
Acquisition rationale and background
Langleys, established in 1890, brings a further 72 fee earners to Knights, significantly strengthening the Group’s presence in York. The acquisition will also allow the Group to further expand its operations in the East of England by providing entry into Lincoln, an attractive growth market for legal and professional services.
The acquisition of Langleys is in line with the Group’s strategy to accelerate its organic growth through carefully targeted acquisitions which are a strong cultural fit, with the firm’s real estate and corporate offerings being closely aligned with Knights’ existing services. Langleys has particular strength in private wealth, where there is significant growth potential.
Langleys also operates a legal aid child law (CL) business within Langleys LLP and a volume residential conveyancing business through a subsidiary, Home Property Lawyers Limited (HPL), which have 5 and 64 fee earners respectively. These businesses are included in the transaction perimeter but are non-core to Knights and as such the strategic options for them will be reviewed.
In its unaudited accounts for the year ended 31 March 2021, Langleys reported revenue of c£14m with a corporatised PBT margin of c5%. Approximately two thirds of revenue is in respect of the core Langleys business (excluding the HPL and CL businesses). Following full integration and realisation of all synergies, the Board expects the core business to contribute a PBT margin of c20% which, combined with a typical level of revenue churn post-acquisition, means the acquisition is expected to be immediately earnings enhancing.
Terms of the acquisition
Under the terms of the acquisition, Knights will acquire Langleys from its four existing equity partners (“the Sellers”) on a debt free, cash free basis for a total consideration of £11.5m subject to working capital adjustments at the time of completion. This comprises an initial consideration of £8m, made up of £5.25m in cash and £2.75m in 704,515 new ordinary shares in Knights, (the “Consideration Shares”), along with deferred cash consideration of £3.5m to be paid in equal instalments over the three years following completion. The cash consideration will be satisfied from Knights’ existing facilities. Completion is expected to take place on 25 March 2022.
Commenting on the acquisition, David Beech, CEO of Knights, said: “We are delighted to announce the acquisition of Langleys, a leading firm that has a strong cultural fit with Knights and expertise closely aligned with our existing services. The acquisition sees us become the leading law firm in York and provides a strong base for organic growth in the East of England through Lincoln, as we continue to strengthen our position as the leading legal and professional service business outside of London.”
Tim Cross, Partner, Langleys commented: “Having built a strong reputation over a number of years, now is the right time to join Knights, whose growth journey we have followed in York and elsewhere across the regions. We believe Knights’ scale, ambition and ability to invest will enable us to unlock
Manufacturing Task Force launched by Mayor of West Yorkshire
A West Yorkshire Manufacturing Task Force has been set up by the Mayor of West Yorkshire, bringing together fourteen representatives from manufacturing companies and alliances across the region to assess the manufacturing landscape and identify opportunities to support the continued growth of the sector.
At a virtual meeting today, the Task Force continued discussions on the current business support landscape, the need to secure inward investment and remain an attractive region and what local manufacturers need to meet the region’s 2038 net-zero carbon target.
Task Force meetings will be held over the next six months, chaired by Andrew Wright, Deputy Chair of the West Yorkshire Combined Authority Business, Economy and Innovation Committee. Manufacturing experts will explore best practices and solutions to immediate and future challenges and share an action plan with recommendations on the support needed to help local businesses remain competitive, addressing areas including the transition to net-zero, new trading relations, access to finance and how to increase productivity and innovation levels.Tracy Brabin, the Mayor of West Yorkshire, said: “I’m excited to launch the West Yorkshire Manufacturing Task Force with a fantastic team of expert local manufacturers who are coming together to create an action plan for how our businesses can grow and remain competitive.
“West Yorkshire is home to more manufacturing jobs than anywhere else in the North, and I want us to do all that we can to take our world-class manufacturing sector forward.
“Our Manufacturing Task Force has been set up to explore how we can achieve this, whether that be by increasing their innovative activity, creating the products of tomorrow, today, taking bold steps to enter the global market or planning ahead to ensure they have the manufacturing skills and capabilities needed for our future economy.”
The Mayor of West Yorkshire will sign off the action plan. The West Yorkshire Combined Authority will consider the findings to deliver future support for local manufacturing businesses in partnership with local partners and stakeholders.
Findings from the Task Force will support existing strategies and policies of the Combined Authority, including the Business Productivity and Resilience Plan, Innovation Framework, Employment and Skills Framework and the emerging West Yorkshire Trade Strategy.
Yorkshire businesses impacted by Omicron as early financial distress rises in final quarter of 2021
Despite some signs of economic recovery earlier last year, the final quarter of 2021 saw a marked rise in instances of early-stage financial distress compared with the previous quarter as businesses in Yorkshire, along with the rest of the UK, reeled from the impact of the latest Covid variant, following two years of pandemic disruption.
According to the latest Red Flag Alert data, published today (28 January 2022) by leading independent business rescue and recovery specialist Begbies Traynor, businesses in Yorkshire experienced a 4% rise in ‘significant’ distress (which refers to businesses that have had CCJs of less than £5,000 filed against them) in Q4 2021, compared with the previous three months. This was slightly lower than the rest of the UK which experienced a quarter on quarter increase of 5%. In Yorkshire, over 34,200 businesses saw this type of distress in the final quarter of last year, and more than 589,160 businesses across the UK were affected.
However, looking at Q4 2021, levels of ‘significant’ distress in Yorkshire had fallen by 8% compared with the final quarter of 2020, while there was a 6% decrease across the UK as a whole year on year.
In terms of levels of more advanced or ‘critical’ distress (which refers to companies that have financial problems such as CCJs of more than £5,000 filed against them), in Yorkshire there was a rise of 12% compared with Q3 2021 while the UK as a whole saw only a slight rise of 1%. The region also experienced a 46% increase in advanced distress compared with the same period the previous year, while the UK average was an uplift of 7% compared with Q4 2020.
Julian Pitts, regional managing partner for Begbies Traynor in Yorkshire, said: “Businesses in Yorkshire, like those across the UK, have been on a rollercoaster ride of change and uncertainty over the last two years, making planning and forecasting extremely difficult. The unprecedented challenges they have faced range from stop-start operations amid successive lockdowns, to adapting to ever-changing Covid restrictions, and now dealing with ongoing issues around severe staff shortages and global supply chain disruption.
“While financial distress in the region appeared to be levelling off earlier in 2021, with the impact of a new and highly infectious variant right before the normally busy Christmas season, we are already seeing a worrying rise in signs of early-stage financial problems.”
In Yorkshire, almost all sectors saw a rise in ‘significant’ distress since the previous quarter with printing and packaging (up 8%), and support services and utilities (both increased by 7%) among the worst hit. In addition, travel and tourism, financial services, real estate and property services, and manufacturing all saw early distress rise by 5%.
Mr Pitts continued: “After such a difficult period, unfortunately the year ahead also looks fraught with problems for the region’s businesses. The additional pressure of rising prices and inflation as energy costs increase dramatically, are likely to squeeze both businesses and consumers. While the government appears reluctant to provide more help for firms impacted by the latest Omicron outbreak, businesses will also be faced with the withdrawal of pandemic support measures and tax rises. With tough times ahead, we once again advise directors to seek professional advice at the first signs of financial distress when more options will be open to them.”
Annual (2021) insolvency statistics – R3 response
Eleanor Temple, chair of insolvency and restructuring trade body R3 in Yorkshire and a barrister at Kings Chambers in Leeds, comments on the 2021 corporate and personal insolvency statistics for England and Wales:
Corporate insolvencies
- There were 14,048 underlying corporate insolvencies in 2021 – an increase of 11.2% from 2021’s figure of 12,634, but a fall of 18.2% on 2019’s figure (17,166)
- There were 110,022 personal insolvencies in 2021 – a fall of 1.4% on 2020’s figure of 111,578, and a fall of 9.9% compared to 2019 (122,155)
Bradford concrete admixture manufacturer builds new future on strong foundations
A Bradford-based manufacturer of concrete admixtures has heralded a new chapter following its investment in a new standalone company within the Christeyns group this month.
Oscrete UK Ltd is one of the UK’s leading specialist construction chemical suppliers and has operated as a division within Christeyns since 1983 having originally been part of the historic, former Bradford Oils and Soaps company which was founded in 1874.
The business, which continues to share its Rutland Street premises with Christeyns UK in Bradford, is committed to becoming the UK and Ireland’s leading supplier of admixture and additive products which are used in the construction sector.
Director Scott Wilson, who has headed Oscrete since 2018, said the team’s passion for sustainable growth and a commitment to continuously improving customer operations is a core focus under the new Oscrete UK Ltd operation.
“Oscrete has operated successfully as a division of Christeyns UK Ltd for almost 40 years and while we have hugely valued the support and the resources the wider business offers, the time is now right to invest in Oscrete and our construction activities and focus entirely on our core markets and further developing our expertise.”
He added: “The pandemic forced a period of real challenge in our construction customer base, quickly followed by substantial growth. We’ve recognised we need a bespoke business model dedicated entirely to our industry which will facilitate growth, new product development and specialist recruitment.”
Oscrete UK Ltd is a manufacturer of concrete admixtures for precast and ready-mix concrete and the ready-to-use mortar industries. The team manufactures a range of high performance super-plasticising admixtures, waterproofing agents and products to control moisture damage in construction. Its technical team focuses on NPD to add value and meet specific customer needs.
Scott added: “Operating independently will also allow us to develop systems which complement those of our customers and to place even greater focus on customer service, new product development and continuing to develop our supply chain expertise.
“It’s an incredibly exciting time for the construction sector with a strong emphasis on sustainable growth and continuous improvement We are looking forward to taking our brand, our family values and our expertise into a new chapter for the Oscrete UK business and embracing the new challenges of this thriving building sector.”
Leeds alterations business launches winter clothes drive for the homeless
Chapel Allerton-based clothing alterations business The Zip Yard has launched a winter clothes drive in partnership with Leeds charity Homeless Street Angels.
Customers of The Zip Yard and other local residents are being encouraged to drop off their unwanted warm winter clothing to The Zip Yard store in Chapel Allerton for distribution via the charity to those living on the streets or struggling to make ends meet. As part of the drive, The Zip Yard is offering their seamstresses skill free of charge to repair any donated items.
Neluka Dunning, owner of The Zip Yard Chapel Allerton, said: “We wanted to give something back to the community, and the very nature of our business means people are always bringing in their clothes for repairs and alterations. As part of the Winter Clothes Drive with Homeless Street Angels, we’re offering our services to repair items brought in by the public so that they are all in good condition to go on and keep people warm in the continuing cold weather.
“At this time of the year, lots of people are having wardrobe clear outs and replacing older items with new ones received at Christmas or bought in the sales, so it’s the perfect time to drop off coats, hats, thermals, gloves and thick winter jumpers. Homeless Street Angels do an incredible job of providing food, sleeping bags and clothing to those who need it, and we’re looking forward to helping them distribute donations.”
Shelley Joyce, co-founder and director of Leeds Homeless Street Angels, added: “Winter is a particularly difficult time for those living on the streets – the temperature often dips below freezing and Covid has meant there are less people out and about who might have previously gifted items or provided warm drinks.
“Support from local businesses like The Zip Yard is incredible for us, and the winter clothes drive will give individuals the opportunity to give otherwise unused items that might have gone to landfill or charity shops straight to our clients who need them right now. It’s a brilliant initiative and we hope people will utilise The Zip Yard drop off point when they are clearing out their wardrobes.”
Those wishing to donate items can drop them off at The Zip Yard Chapel Allerton store, Chapel Allerton House, 114a Harrogate Rd, Leeds LS7 4NY.
New plans submitted for major mixed-use development in York
Redesigned plans have been submitted for The Roman Quarter project in York, a major mixed-use development in the City Centre that includes a world class Roman visitor attraction.
Original plans for the project were recommended for approval by Officers but were refused by City of York’s Planning Committee in February 2021 and the development has been fully redesigned, taking on board feedback from the Council and other stakeholders.
It is now a “truly mixed-use development” including the Roman attraction – called EBORACUM – Grade A office space, an aparthotel and new homes. The project is a partnership between joint applicants Rougier Street Developments, owners of the site, and York Archaeological Trust.
Redeveloping Northern House, Rougier House and Society will be a major economic boost for York, delivering over £315m for the local economy over 30 years, as well as 625 new jobs for local people and a vibrant addition to the city’s cultural offer.
Architect Vincent & Brown has remodelled the plans and the vision is now made-up of two distinct buildings, that showcase the Roman attraction and breathe new life into Rougier Street.
The EBORACUM museum attraction will be a major addition to York’s economy, celebrating the city’s early Roman past and providing a major boost in the City’s visitor economy. It will also provide educational benefits and inspire the next generation of archaeologists and historians. The new attraction will be more than twice the size of the JORVIK Viking Centre, which the Trust has run successfully for over 35 years. In that time it has welcomed around 20 million visitors.Integral to the plans are a two-year archaeological dig that will be streamed across the world and will give the opportunity for every school child in York to take part. This landmark dig will help to tell York’s unique story and provide more information on the lives of previous generations.
This mixed-use scheme includes an 88-room aparthotel and 153 new apartments with both being run by ‘Beyond’ an innovative sustainable operator. The sites will be carbon neutral, minimise waste and use zero chemicals to clean to provide healthy spaces for guests, staff and the wider community.
An additional 25,000 sq ft of new Grade A Office space will complete the scheme, providing much-needed quality, modern office space in the heart of York city centre.
The proposed building will sit lower than its neighbours, the new Malmaison hotel, Aviva offices and The Grand Hotel.
The new proposals deliver vastly improved public realm with improved active frontages at ground level on Rougier Street. It will re-open a historic Roman street – Tanner Street – and provide a connection between Tanner’s Moat and Tanner Row, bringing a new vibrancy to this area with public open space and soft landscaping introduced.
A spokesperson for North Star, who are working alongside the applicants, said: “During the past year, we have worked closely with the Council and taken on board feedback to ensure that the new proposals offer as many benefits as possible and address the reasons for refusal.
“We are grateful for the feedback from the Planning Committee and have addressed the comments that the previous design was ‘monolithic’ by making the design more fluid and breaking up the massing of the development. The new plans retain the benefits of the original concept but in much improved design.
“These plans offer a once in a generation opportunity to regenerate this part of the City Centre, as well as creating a globally unique Roman visitor attraction, in a high-quality mixed-use scheme.”
David Jennings, Chief Executive of the York Archaeological Trust, said: “We are still very excited by this project, seeing how much the Roman Quarter can potentially contribute to York’s economy and future. Plans for the Coppergate Centre – including the basement attraction that became JORVIK – were approved at the second submission by members of a planning committee who shared the vision for an attraction that built on York’s heritage as part of a wider, mixed-use development. We would urge their counterparts to do the same.
“What is also important to recognise is that this is an incredibly rare opportunity: the location, quality of archaeological deposits and partnership of developer and archaeological charity is highly unlikely to be offered to the city again. The high cost of undertaking this work means that it needs a special commitment to realise the public value – without recourse to the public purse – that, like JORVIK before it, will give back to the community for decades to come.”
A decision on the plans is expected in the coming months.
RSK Group snaps up specialist transportation planning firm
RSK Group Ltd, an environmental, engineering and sustainability solutions provider, has strengthened its transport planning and infrastructure design capability with the acquisition of SCP (Singleton Clamp & Partners Ltd).
SCP is a specialist transportation planning, highway and drainage infrastructure design consultancy that has been offering multi-disciplinary professional services to the private and public sector since 1991.
Employing 45 people based in offices in Leeds, Manchester, and London – SCP provides an integrated range of services to clients across the country, from advice and support at the earliest master planning stages of development proposals, through detailed assessments for approvals processes and through the implementation stages.
The business also has long established expert witness relationships with planning barristers across the UK.
This acquisition significantly strengthens RSK’s existing transport planning services and introduces a new suite of solutions in infrastructure planning and design – markets which are expected to grow in the years to come.
SCP will retain its brand as existing directors David Roberts, Jim Budd, Steven Carmody and David Young all continue to drive the business forwards.
This is the first acquisition completed by RSK in 2022 and the 26th this financial year as the group continues to deliver on its 2025 Growth Strategy.
RSK is now comprised of over 120 businesses employing over 8,000 people around the world.
Alan Ryder, founder and CEO of RSK, said: “We are thrilled to welcome everyone at SCP into the group. The expertise in SCP greatly advances our position in the UK transport and infrastructure markets, areas where we expect to see growth over the coming years.
“Thanks to many years of consistent, high-quality delivery and a focus on strong relationships, SCP has earned a very good reputation with clients and the wider industry. With the additional support of our many related specialisms, we anticipate this will only be further enhanced.”
David Roberts added: “SCP is a brand that we are proud to have established over some 30 years, and maintaining that brand shows the great faith that RSK have in our team and the successes that have been achieved so far.
“We have a combined desire to grow the business further and the commitment to retain the existing SCP leadership and work together as part of the wider RSK business is a combination that provides a future that we very much look forward to.”
Ron Dearing UTC students given golden chance of success with new gym partnership
Ron Dearing University Technical College (UTC) has teamed up with a Hull fitness centre for a unique partnership to further improve its students’ wellbeing and life prospects.
Hull’s employer-led school has partnered with the Fit24 gym, run by businessman Jack Burton and Olympic boxing gold medalist Luke Campbell, to educate students about all aspects of health and fitness.
Every Key Stage 4 student at the Ofsted “Outstanding”-rated school now has free access to the gym for a timetabled one hour a week.
They are able to use all the facilities at the gym on Prospect Street, Hull city centre, just a short walk from the school on Kingston Square, and are learning about nutrition and different forms of exercise.
The new partnership is also educating the students about discipline, dedication and routine to improve their employability.
Jack, who launched the Fit24 gym, and Luke, who became a household name when he won bantamweight gold at the 2012 Olympics in London, launched the partnership with a talk to the Year 10 students at the school.
Following the showing of a brief film about how ‘Cool Hand’ Luke overcame adversity in his glittering boxing career, the school’s Deputy Head of Creative Digital, Kate Blowman, held a Q&A session with the two business partners.
Students also asked questions of their own as Jack and Luke gave them advice on how to follow their dreams and be successful in life.
Luke, who was appointed MBE for services to boxing following his Olympics success and went on to have a highly successful professional career, said: “We’re absolutely delighted to have teamed up with Ron Dearing UTC as it’s a partnership that makes perfect sense.
“We love what the school stands for and what it’s doing for its students. All the teachers really care about them and go above and beyond to give them the best possible chance of success, and we want to help with that.
“We’re helping educate them about all aspects of physical and mental health. These will be invaluable lessons to them now and in later life as they pursue their ambitions.”
Jack launched the Fit24 business, which includes a centre on Hessle Road, west Hull, and recently brought Luke on board as his partner at the Prospect Street gym. Both gyms are open 24-hours-a-day.
He said: “It was fantastic to launch this exciting new partnership by going into the school and talking to the students.
“We told them that hard work and dedication are the keys to success, along with working alongside fantastic people, and that’s what they have at Ron Dearing.
“Everyone at the school has the same focus to improve the students’ chances of achieving their dreams, whatever they may be, and we’re proud we’ll now be playing our part too.”
Fit24 has become a Major Partner of the school and Principal Sarah Pashley said it was an important development in Ron Dearing UTC’s drive to improve the prospects of each and every one of its students.
She said: “This new partnership with Fit24 will be a huge benefit to our students.
“Along with the obvious physical and mental health benefits of being able to use all the facilities and resources available at the gym, it will also further reinforce the values we instil in them around working hard to become the best they can be.
“These are important life lessons and will also be crucial when it comes to launching exciting careers in their chosen areas.”
Opened in 2017, Ron Dearing UTC caters for students aged between 14 and 19, offering a unique model of employer-led education with a specialist focus on digital technology, creative digital and digital engineering.
The school’s Founding Partners are the University of Hull and leading local employers KCOM, RB, Siemens Gamesa, Smith+Nephew and Spencer Group.
It is also supported by Hull City Council and many other industry partners, including Arco, C4DI, Fujitsu, Green Port Hull, Ideal Boilers, INEOS Acetyls, Kohler Mira, Luxinar, NEC Software Solutions, Ørsted, Sauce, Sewell Group and Sonoco Trident.
