£11.4 million investment to support West Yorkshire businesses

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West Yorkshire organisations have received a combined investment of £11.4 million to deliver projects that will support local businesses to drive growth and innovation, Mayor Tracy Brabin has announced. Successful projects include £3.8 million towards a new health and wellbeing innovation centre at the University of Huddersfield’s National Health Innovation Campus. The University of Bradford will also receive £1.1 million to boost its research and development facilities for local manufacturing businesses to use. The announcement follows news that West Yorkshire has been named as the Government’s third Investment Zone, which will unlock £220 million of investment for health tech and digital businesses to grow and innovate. Mayor of West Yorkshire, Tracy Brabin said: “West Yorkshire is the best place in the country to start and grow a business. The multi-million pound investment into vital projects will support our local businesses to drive innovation and create good, well-paid jobs. “And it will help to grow our economy as we work to build a stronger, brighter West Yorkshire that works for all.” Led by the West Yorkshire Combined Authority, the eight approved projects are to be part-funded by the UK Shared Prosperity Fund. Supporting local businesses and championing the regional economy is one of Mayor Tracy Brabin’s key pledges. Funding awarded to voluntary and private sector companies will help to launch programmes for businesses to innovate, grow and diversify by sharing knowledge, expertise and resources. Leader of Leeds City Council and Chair of the West Yorkshire Combined Authority Business Committee, Cllr James Lewis said: “This is fantastic news for both established and emerging businesses in West Yorkshire and further evidence that the region is an ever growing hub of innovation and ambition. “We are determined to continue working with partners across the region, supporting local companies to thrive and ensuring West Yorkshire enhances its already impressive reputation as a place where businesses of all types and sizes can flourish.” Wider support is available for businesses in West Yorkshire through the Combined Authority’s Growth Service, which is helping to create a productive and resilient regional economy.

Ricky Gervais invests in North Yorkshire distillery

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Ellers Farm Distillery has secured a major investment by and partnership with Ricky Gervais. The deal with Gervais sees him become co-owner of Ellers Farm and initially focuses on the company’s leading brand, Dutch Barn Orchard Vodka but also covers Ellers Farm’s gins, liqueurs, and English single malt whisky. Gervais has been looking for an opportunity to partner with a sustainable and ethical spirits business and agreed to become a major part of Dutch Barn after learning about the ethos and workings of the company. And of course testing the product.  Gervais said: “I’d been looking to invest in eco-friendly businesses for a while and as soon as I found Dutch Barn – I wanted in! I love the planet and I love a drink so it was the perfect combination. “On a serious note Dutch Barn really is a quality product. I love the fact that it’s done differently and I can’t wait to let everyone know about it. The exciting part for me is that I’ve been promised that I can try to make it a global brand in my own way. Something I can’t help but think they will regret.”   Ellers Farm was formed in 2021 and has been Carbon Neutral from Day One. Gervais’ investment follows on from Ellers Farm becoming a Certified B-Corp in September of this year. As an ethical employer, Ellers Farm has a unique profit share scheme where 20% of the company’s profits go to the employees of the business and it operates fair pay ratios across the business. Chris Fraser, founder and chairman of Ellers Farm Distillery, said “We are so excited to have Ricky join the team.  With so many hollow celebrity cash-for-face brand endorsement deals out there, we are really pleased to have forged an authentic partnership with Ricky involving both investment and creative leadership. “Ricky will be an integral part of the business going forward and will help shape how Dutch Barn is seen around the world and helping us make Dutch Barn a global success.” AIG Holdings, a global talent brand incubator, advised and invested in Ellers Farm as part of the transaction.

Lindum starts work on affordable housing project in Grantham

Lindum Group has started work to build 20 one and two-bedroom affordable apartments for rent in Grantham. The new homes will be delivered for SOUth Kesteven District Council, and are being built on derelict brownfield land in the heart of the town. The development is at the northern end of Swinegate, next to Watergate car park and close to Brook Street. It follows public consultation including with Lincolnshire County Council Highways, local heritage and conservation organisations, St Wulfram’s Church and arranging public displays at drop-in sessions in the town. Lindum MD Darren King said: “It is fantastic news that work has started on these new apartments, helping to ease local demand and support local people in providing an affordable place to live. It is important that the new apartments serve the purpose of easing the housing demand, but they also have to fit in with the historic aesthetic of Grantham and benefit the local people and have positive impact on what is a busy and popular area of the town. “Being procured through SCAPE has allowed for us to engage early with SKDC to navigate issues associated with sites with high footfall and complicated access routes. We were able to discuss the issues with the council early on in the project and come up with a plan to mitigate any potential complications and accelerate starting on site. “Affordable living is one of the biggest issues we are facing today and so it is vital we do our bit to help support our local communities and provide quality homes that suit a diverse range of needs.”

Site-wide standard for lifting tackle wins award for Forgemasters

Safety at Sheffield Forgemasters has been recognised with an award in the 2023 Lifting Equipment Engineers Awards. The LEEA is the largest trade association in the lifting industry, and gave Forgemasters the award for an intervention that have clearly and directly made industry safer, such as a new product or internal processes that have effectively managed risk – such as training, records, communications or updates. Sheffield Forgemasters won the award for its web-based lifting calculator, which ensures complete safety and correct selection and application of slings and other lifting gear. This initiative is in place across the company’s 64-acre site, including Melt Shop, Foundry, Forge, Machine Shops, Pattern Shop and finishing areas. The introduction of this has virtually eliminated lifting gear failures since its inception.

Plans revealed to safeguard Tetley Building for another century

Vastint UK, the developer behind Aire Park, the 24-acre mixed-use district on Leeds’ South Bank, has revealed the first images and details of its plans for the iconic Tetley building as it looks to safeguard the landmark for another century. The proposals for the 92-year-old building include the retention of the art deco façade and opening up the basement and ground floor for new food, drink and event spaces alongside 1,212 m2 of office space. The new images and plans also reveal roof terraces, a new cellar bar and restaurant, and the retention of many historic features, including the war memorial and Tetley Boardroom. The fully revitalised Tetley Building, which Vastint UK acquired from Carlsberg in 2022, will be the crown jewel and focal point for the Aire Park district, which includes a new 3.5-hectare city centre green park, up to 1,400 news homes and 85,000m2 of office space. Vastint UK is welcoming comments from the public until late December with a planning application expected early in 2024. The proposed plans include:
  • The basement level being transformed into a bar and restaurant area and opened up to the public for the first time in the building’s history
  • The ground floor to feature a new food hall as well as new amenities including Changing Places facilities
  • The first-floor plans show an event space and business lounge
  • Office space will appear on the second and third floors of the building
  • An extension will be added to the eastern façade of the building, which has traditionally always been connected to other buildings within the brewery complex
The building will also be designed to be highly efficient and bring the Tetley Building up to modern sustainability standards. Simon Schofield, Head of Development North at Vastint UK, said: “The Tetley is an iconic building within Leeds and we’re excited to finally reveal our plans for its future. As custodians of this important piece of the city’s history, we have been working hard with our architects Supervene and Enjoy Design, Leeds City Council and others to look not just at how we preserve this beautiful building but continue its evolution and ensure it remains at the heart of both Aire Park and Leeds’ South Bank for another 100 years. “Our plans aim to create a variety of spaces within the building including public amenities such as a Changing Places facility, food and drink opportunities and event spaces, whilst continuing the building’s history of being a place of business, with new office space. “Everyone is excited to work on this project not only because of what it brings to Aire Park, but also because of the important role this building has and will continue to play in the story of Leeds. We’d like to think that Joshua Tetley would be impressed by what has become of the site he purchased for £402 in 1822.” Michael Westlake, director at Supervene Architects, added: “To be given the chance to work on a building which holds such an important place within a city’s cultural history and be able to shape its next chapter is exciting. “We believe these plans will not only breathe new life into the building and open aspects which have never been open to the public before but will also ensure the building can continue to act as a beacon to attract both locals and visitors to the area and the wider Aire Park.” Vastint UK will officially submit its proposals to Leeds City Council in the new year ahead of starting work later in the year with the ambition of the building reopening to the public in 2026.

GMI Construction Group secures £27m contract to expand Leeds college campus

GMI Construction Group Ltd has secured a £27m contract to expand Leeds City College’s new Mabgate campus. The campus is already home to the college’s School of Events, Enterprise and Employability, as well as studio space for Leeds Conservatoire, which are both members of Luminate Education Group. The project will transform the once derelict site into around 70,000 sq ft of educational space which will enhance the teaching and learning experience. The development will create new learning spaces while contributing to the regeneration of the area and providing much-need community resources. The initial stage of the project, which started last month, includes the partial demolition of existing buildings fronting onto Mabgate, which will make way for the construction of a new five-storey campus for University Centre Leeds and a new building for Leeds City College’s English for speakers of other languages (ESOL) provision, currently the Enfield Centre, which will both operate as educational facilities. As part of the construction of the ESOL building, Leeds-based GMI will also build a new atrium cafeteria, which will be located between the new building and the existing converted warehouse space, which is the hub of the Mabgate Centre, providing eco-friendly open-plan learning spaces and specially designed classrooms. In addition to the construction of the new facilities, GMI will also undertake the refurbishment of the historic building, Studio 24, which is a popular arts and events space located within a former industrial building. Chris Weathers, Group Commercial Director at GMI Construction, said: “We are exceptionally proud to have secured this project to support the expansion of this Leeds City College centre and the regeneration of this part of our home city. “It also represents part of our strategy to further grow our presence in public sector construction. “We have a strong track record of public sector delivery, not only in Yorkshire, but our other regions including the North East, and securing this scheme further demonstrates our capabilities to support significant developments that will have a positive impact on communities.” David Warren, Group Vice Principal of Development at Luminate Education Group, said: “These new developments at Mabgate form part of our commitment to supporting our members to deliver outstanding opportunities for learners. “Both new buildings will replace old buildings in poor condition and we are delighted that significant funding was provided to us by the Department for Education through their capital transformation funding programme. “The University Centre Leeds building will replace its current site at Park Lane, providing students with cutting-edge facilities, while the new space for Leeds City College’s in-demand ESOL provision will allow even more adults and young people to access vital English skills, in this expanded space. “We’re pleased that this next phase of development consolidates our plans to support the regeneration of this up-and-coming part of Leeds, and hopefully attracts further investment in the area.”

Manufacturing business fined following failure to protect workers from hazardous substances

A manufacturing business in Lincolnshire has been fined for failing to protect its workers from hazardous substances. A Health and Safety Executive (HSE) inspection of W.S. Barrett and Son Limited’s site at Riverside Industrial estate in Boston, Lincolnshire, found the company’s workers were being potentially exposed to welding fume and dusts from powder coating. Welding fume is carcinogenic and can cause other serious illnesses such as occupational asthma. Exposure to coating powders can also cause occupational asthma and skin irritation. The inspection on 25 March 2022 found that an on-tool extraction system on the welding tools was in a poor state of repair and that Local Exhaust Ventilation systems, provided to capture welding fume and dusts from powder coating in order to protect employees’ health, had not been thoroughly examined and tested. A subsequent HSE investigation found W.S. Barrett and Son Limited, a specialist manufacturer for the agricultural and horticultural industries, had failed to ensure that its Local Exhaust Ventilation systems, which controlled workers’ exposure to welding fume and dusts from powder coating, had been thoroughly examined and tested. The company had already been warned about its Local Exhaust Ventilation systems, during a previous HSE inspection on 13 February 2018, the company was served with Improvement Notices following issues with Local Exhaust Ventilation systems. The company failed to comply and was prosecuted as a result. W.S. Barrett & Son Limited, of Marsh Lane, Boston, Lincolnshire, pleaded guilty to breaching Regulation 9(1) and Regulation 9(2) of the Control of Substances Hazardous to Health Regulations 2002. The company was fined £10,000 and ordered to pay £3,625.20 in costs at Lincoln Magistrates’ Court on 22 November 2023. HSE inspector Stacey Gamwell said: “W.S. Barrett & Son Limited could have ensured that its Local Exhaust Ventilation systems were thoroughly examined and tested to ensure that they were working as intended to protect the health of its employees. “This case highlights the importance of regular maintenance and inspection of control measures including Local Exhaust Ventilation, to ensure equipment remains in an efficient state, in efficient working order, in good repair and in a clean condition.” This HSE prosecution was brought by HSE enforcement lawyer Jonathan Bambro.

Sowden’s wins ‘best small business’ accolade

Yorkshire-based digital marketing agency Sowden & Sowden has been named ‘Best Small Business’ in Hull and East Yorkshire at the annual Hull Live Business Awards.

MD Polly Sowden said: “We’re over the moon for another win and given the calibre of businesses in the region, it’s a real achievement for the agency to come out on top. It’s been a big year for the team, with new clients and contract wins, and we’re so excited to be finishing it on such a high. Congratulations to all the other awards winners, and thanks to everyone who helped to organise such a memorable event.” TheSowdens team was recognised for its dedication, hard work, and exceptional contributions to the region. And after been in business for over 40 years, the agency’s winning mentality is said to be what sets it apart, making it one of Yorkshire’s longest established agencies. Over four decades, Sowdens has held a diverse client portfolio, from challenger brands to established international blue chips.  

West Yorkshire industrial property market bucks the trend

Property consultancy Knight Frank’s latest Logic Report has revealed that the steady delivery of new speculative space in West Yorkshire during 2023 (which was notably absent during 2022), was providing more opportunities for occupiers and driving a gradual increase in take-up levels and quoting rents in the region. Despite the wider UK economic challenges, the third quarter of 2023 saw take-up reach 417,800 sq ft across five deals (units 50,000 sq ft-plus), bringing the year to date total to almost 1.4 million sq ft. Iain McPhail, partner and specialist in industrial property at the Leeds office of Knight Frank, explained: “Activity so far this year has surpassed the total for 2022 by 54%. “A further 11% of all existing available space is under offer and with recent news of Siemens signing to a new 94,000 sq ft pre-let in Goole, we expect to see further transactions between now and the end of the year.” A key deal in Q3 was the letting of OP65, Overland Park, Morley in Leeds, to Leadbeater Transport, at a new headline rent of £8.75 per sq ft. The 65,755 sq ft new build is rated EPC A+ and BREEAM Excellent. Iain continued: “Distribution firms continue to grow their share of the market and account for 75% of the annual total. This is up from 52% over the comparable period last year. Manufacturers comprise a further 15% of the 12-month total to end of Q3. “We are starting to see a return to a pre-pandemic market, illustrated by positive take-up but further evidenced by the shrinkage in e-commerce requirements and 3PLs looking to fill ‘grey-space’ in their own property portfolio. “Whilst the supply of immediately available space rose by 42% during Q3, to stand at 2.8 million sq ft, this was entirely driven by the return of second-hand space including the 556,000 sq ft ‘Sherburn 550’ warehouse in Selby. Consequently, the vacancy rate has increased from 3% in Q2 to 4.3% in Q3. “Second-hand grade B and C stock comprises 76% of all available space in the region. In contrast, the supply of new, high-quality space declined, with only two units over 50,000 sq ft immediately available to occupiers. A further 1.4 million sq ft of space remains under construction speculatively.” He continued: “The existing available space and units under construction equates to about 16 months’ supply against the region’s five-year average annual take-up and beyond the development that is on site, the speculative pipeline is limited due to the absence of institutional funding and available industrial sites, which is hindering new development. “As a result, we expect the medium-term supply pipeline of units over 50,000 sq ft to remain constrained in our region. We may also see an uptick in design and build activity, with several prime development sites in the region being granted reserved matters planning consent for large-scale distribution centres, including Switch 490 (490,118 sq ft) at Wakefield Europort, which is a 23-acre industrial development site located adjacent to Junction 31 of the M62.” Prime rents in both Leeds and Wakefield for units over 50,000 sq ft are 17% higher than this time last year, currently at £8.75 per sq ft. Prime new build mid-box units are now quoting up to £8.95 per sq ft with ‘big box’ (over 350,000 sq ft) guide rents, regionally ranging from £7.75 – £8.25 psf.

Pockets of deal activity drive logistics and supply chain transactions to two-year high

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M&A activity in the UK logistics and supply chain management sector has rebounded to 2021 levels, with renewed interest from international buyers and venture capital investors targeting early stage tech-enabled companies.

Mirroring levels seen in Q4 2021, 21 deals were completed between July and September. Notably, there was a ‘reawakening’ of investment appetite towards UK assets from international buyers, with significant deals involving key industry players including Super Group Limited, DSV A/S, and InPost SA. Meanwhile, almost 20% of transactions were venture capital investors targeting early stage tech-enabled companies servicing the sector.

According to a new report from accountancy and business advisory firm, BDO LLP, disclosed deal values increased during the third quarter of the year to £288 million – a rise of £232 million compared to the previous quarter. This was mainly attributable to the acquisition of Xpediator for £161 million by a consortium group consisting of BaltCap, Stephen Blyth and Justas Versnickas. However, total disclosed deal value is still down on levels seen in the last three years, with values similar to that of 2018/2019.

The UK M&A Update Q3 2023 – Logistics and Supply Chain Management also sounded a word of caution, with increased evidence of distress within the market. This included the acquisition of the trade and assets of Nelson Distribution by Kinaxia Logistics, the administrations of Selazar Ltd and Glasgow Car Movers Ltd, and more recently Mark Stewart Limited.

Jason Whitworth, M&A partner at BDO LLP, said: “Maybe surprisingly given the continued challenges in the economic environment, Q3 saw an increase in deal activity to a new two-year high.

“This was driven by a number of factors, including venture capital investors investing in tech, renewed activity from international buyers, which have more recently focussed on other ‘more attractive’ international growth markets, as well as increased evidence of distress.

“The latest edition of our UK Logistics Confidence Index showed that 40% of respondents were likely to make acquisitions over the next 12 months. Although lower than last year, it does confirm the industry’s continued appetite for consolidation.

“Interestingly, in the current market where margins are under pressure, it wasn’t scale, synergies or cost savings that were the leading reasons for wanting to transact, but expansion of service offering and entering new sectors.”

Whitworth added: “Valuation remains a pivotal concern in making deals happen. Uncertain, and potentially lower earnings, coupled with the higher cost of debt, means that there is more complexity in structuring deals that will meet both buyer and vendor expectations. However, with strategic demand and available capital remaining strong, we should start to see a drive in further deal activity.”

Q3 deals included Foresight Group’s acquisition of We Are Fulfilment Ltd and Amworld UK; Endless LLP’s acquisition of ASCO Group; and the sale of Portman Logistics to Challenge-trg Group.