Furniture company founder Lord Kirkham to speak at Doncaster conference
The man who created furniture maker DFS from a roof above a snooker hall in Carcroft is to be a speaker at the 2024 Doncaster, What’s Next Business Conference.
He’s Lord Kirkham, and will outline what he thinks are the biggest opportunities within Doncaster’s collective grasp, where the city ought to be heading and what needs to be done to put it on the best trajectory possible, while also sharing his own experiences in a range of business sectors and in politics.
Dan Fell, Chief Exec of Doncaster Chamber, said: “Our business conference is a true highlight in the calendar each and every year, giving attendees an opportunity to participate in a high level discussion about our city’s assorted fortunes and aspirations. Indeed, we always come away from the event feeling galvanized and eager to do what we can to help Doncaster reach its full potential.
“Having Lord Kirkham participate in the conversation this time around will be an immense privilege. Given how much he has achieved over the course of his illustrious career, I am positive that the audience will be interested in what he has to say and that he will have an insightful perspective to share on a great number of topics.”
Lord Kirkham added: “I owe stellar gratitude to the City of Doncaster. My family and I grew up here, my values and standards were formed here, and the foundations of my business career were built here. It will be an absolute privilege to share my lifetime of knowledge, proven business concepts, hard-earned experience, passionate beliefs, and insights with delegates at this business conference in June.”
At the age of 25 Graham Kirkham created his fortune by producing high quality furniture sold directly to the public at fiercely competitive prices made possible by cutting out warehouse dealers in the middle of the supply chain. From these humble beginnings, the company — known then as Northern Upholstery — eventually became the retail giant DFS, which was valued at £271 million when it was first floated on the stock market back in 1993.
He was a director and major shareholder in the Iceland supermarket chain, a long-serving chair of The Duke of Edinburgh’s Award, a philanthropist working for and supporting many other charities, and an active member of The House of Lords. He holds a number of prestigious titles as well, including two knighthoods and a life peerage. Closer to home, he is also a freeman of the City of Doncaster and a past winner of Doncaster Chamber’s Lifetime Achievement accolade, which was bestowed in recognition of his manifold accomplishments over the years.
Huddersfield’s ‘catalytic’ investment opportunities attract big business audience at sell-out UKREiiF 2024
Huddersfield’s immense potential for health innovation investment and business growth was showcased to a high-profile business audience at a sold-out event held in Leeds last night, as part of the UK Real Estate Investment and Infrastructure Forum (UKREiiF) 2024.
The ‘Huddersfield: the Future of Health Innovation’ event brought to the fore the catalytic impact for wider investment in the town that the major developments at the University’s National Health Innovation Campus (NHIC) and the West Yorkshire Investment Zone represent.
Over 6,000 investors, funders and developers from across the world flocked to Leeds for UKREiiF, which is being held in the city for the second year running. The fringe event attracted over 150 public and private sector stakeholders, including investors, developers, health businesses and more, to discuss the opportunities that Huddersfield offers and create connections.
Manufacturers’ output volumes rise for first time in year and a half
Manufacturers reported that output volumes rose for the first time since November 2022 in the three months to May, according to the CBI’s latest Industrial Trends Survey (ITS). Manufacturers expect output to rise further in the three months to August, albeit at a modest pace.
Order books remain under pressure, with both total and export order books weakening in May. Manufacturers reported that stocks of finished goods were more than adequate to meet expected demand. Meanwhile, expectations for selling price inflation softened, having picked up earlier in the year.
The survey, based on the responses of 245 manufacturers, found:
- Output volumes rose in the three months to May, having been flat or falling in every month since November 2022 (weighted balance of +14%, from +3% in the three months to April). Output is expected to rise modestly in the three months to August (+7%).
- Output increased in only 8 out of 17 sub-sectors, but this was sufficient to offset flat or falling volumes in the remaining sub-sectors, with the chemicals, food, drink & tobacco and motor vehicles & transport equipment sub-sectors driving overall growth.
- Total order books weakened in the three months to May, with a net balance reporting order books as “below normal” falling to -33% (from -23%). The level of order books therefore remained below the long-run average (-13%).
- Export order books were seen as below normal and deteriorated relative to last month (-27%, from -23%). This was also below the long-run average (-18%).
- Expectations for average selling price inflation softened in May (+15%, from +27% in April), having picked up steadily over the first four months of 2024.
- Stock adequacy for finished goods improved in the three months to May, with the net balance of firms reporting that stocks were “more than adequate” rising to +14% (from -1% in the three months to April), broadly in line with the long-run average.
Firms hope for cut in interest rates next month as inflation eases
Responding to news that CPI rose by 2.3% in the year to April 2024, down from 3.2% in March, Tina McKenzie, Policy Chair at the Federation of Small Businesses said getting back within touching distance of the Bank of England’s 2% target had been a difficult road for many small businesses.
She aded: “Small firms will overwhelmingly feel relief that inflation has fallen precipitously in recent months. However, they’re still feeling battered and bruised by the impact that spiralling prices have had on them since inflation hit a peak in October 2022, and are still having to adjust to prices significantly higher than they were a couple of years ago.
“A cut in interest rates is starting to feel overdue, and all eyes will now turn to the next base rate decision in June. Yesterday, the IMF recommended that the Bank of England should cut the base rate by up to three times this year, and that the base rate should be taken to around 3.5% by the end of 2025, from its current level of 5.25%.
“Core inflation’s decline has not been as rapid, however, and it rose by 3.9% in the year to April 2024, down from 4.2% in March. This may make the Bank of England less inclined to cut the base rate at the next meeting, which would be a missed opportunity.
“Small firms’ confidence levels started to rise over the first quarter of this year, according to our research, and we want to see this valuable momentum keep and even pick up pace, rather than stalling or slipping back again.
“The economic growth we all want to see will be powered to a great degree by small firms, so it is vital to get their growth ambitions back on track, not held back by cost pressures and high interest rates.
“The needs of small businesses should be top-of-mind for policymakers and politicians, as it is their trajectory which will shape the future direction of the economy.”
Family backing helps start-ups off the ground, according to new research
New data shows that three in every ten of the UK’s small business owners have been given financial backing from a family member – with three-quarters saying it was essential for setting up their business.
And it’s suggested that the trend is based on a reluctance by banks have a weakened appetite to lend to small businesses.
From parents to grandparents, siblings to partners, new data from iwoca, one of Europe’s largest small business lenders, finds that families can be a significant contributor when a small business gets off the ground.
Over a third said they had received more than £25,000 from their relatives, with one in five receiving over £50,000.
iwoca’s study with 500 SMEs found that a third (35%) asked family members for support because they needed the funding urgently; a sixth because they couldn’t afford loan repayments; and one in ten either had their funding application rejected by a bank or the bank’s financing terms didn’t work for their business.
Mark Di-Toro, Director at iwoca, said: “Time and again data shows that the major banks are reducing their appetite to lend to small businesses, meaning they’re increasingly having to look for finance elsewhere.
“This means families have also been filling the gap. From parents to grandparents to brothers and sisters, millions of small business owners are seeking the support of their families to help get their businesses off the ground.”
Inflation nears Bank of England target
Inflation has continued its journey towards the Bank of England’s 2% target, coming in at 2.3% in April, down from the 3.2% reported in March.
Measured by the consumer prices index (CPI), it is, however, slightly ahead of forecasts (2.1%).
Falling gas and electricity prices resulted in the largest downward contributions to the monthly change, while the largest, partially offsetting, upward contribution came from motor fuels. There were also large downward effects from alcohol and tobacco, food and non-alcoholic beverages, recreation and culture, and communication.
Meanwhile, core inflation, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, stood at 3.9% in the 12 months to April 2024, down from 4.2% in March.
Alpesh Paleja, CBI Lead Economist, said: “A big fall in inflation was always on the cards for April, given Ofgem’s 12% cut to the energy price cap. Households and businesses will welcome a more benign inflationary environment, but it’s worth noting that many will still be struggling with a high level of prices, particularly in food and energy bills.
“Today’s data further sets the stage for interest rate cuts in the coming months. While the Monetary Policy Committee is likely to reduce interest rates over the summer, they are still holding out for more definitive falls in measures of domestic price pressures.
“It’s encouraging that pay growth is now a touch below the Bank of England’s forecast, but there’s still a long way for it to get closer to levels consistent with inflation at target.
“The Bank will also be mindful of growing upside risks to inflation in the near-term: with the growth outlook improving at home, and tensions in the Middle East threatening to stoke commodity prices and supply pressures globally.”
University signs strategic partnership with energy company
The University of Bradford has signed a strategic partnership with energy infrastructure company SSE Energy Solutions to collaborate on education, research, and the implementation of sustainable energy initiatives.
Professor Shirley Congdon, Vice-Chancellor of the University of Bradford, said: “This new partnership with SSE aims to develop further innovation of green technologies, something we feel passionate about at the university. “We are committed to taking action on sustainability and decarbonisation on our own campus, whilst enabling the development of green skills, jobs and technologies, working closely with the West Yorkshire Mayoral Green Task Group. “We are excited to establish this partnership and look forward to working with SSE on a range of green opportunities.” Neil Kirkby, MD of Enterprise at SSE Energy Solutions, said: “Strategic collaborations like our agreement with the University of Bradford are crucial in driving the transition to a sustainable energy future. By utilising our combined expertise and resources, we can accelerate innovation, create skilled jobs, and unlock the potential of clean energy as a lever for regional growth. “This partnership is a testament to the transformative power of collaboration in addressing the critical challenges of climate change and shaping a net-zero future for generations to come.”
The intention to use the expertise and resources of both organisations to enhance educational opportunities, foster cutting-edge research, and explore innovative solutions to address the university’s energy supply and decarbonisation goals. The collaboration will also focus on developing a talent pool of students and graduates equipped with the skills to enable West Yorkshire and the UK to become leading net carbon economies.
As part of SSE’s commitment to championing a fair and just energy transition, the company will work closely with the University of Bradford to foster strong regional relationships and contribute to the economic growth of the West Yorkshire region as part of its Social Value strategy designed to create sustainable cities and communities.
The strategic MoU will also look to challenge inequality through inclusive recruitment practices and initiatives that promote diversity in the energy sector. This includes inspiring low-carbon career education by providing students with opportunities to engage in real-world sustainable energy projects and gain valuable industry experience.
SSE is a member of the West Yorkshire Mayoral Green Task Group, which aims to create green jobs and skills for young people and unites experts from business, education and training, and the third and public sectors.
Batley furniture maker wins award for business excellence
Batley-based family furniture business HSL has been awarded the prestigious Manufacturing Guild Mark for business excellence by The Furniture Makers’ Company, the City of London livery company and furnishing industry charity.
The Manufacturing Guild Mark has been the mark of excellence for Britain’s top furniture and furnishing manufacturers for 30 years, and is awarded to companies demonstrating the highest standards in design, product development and function, manufacture, human resources, financial stability, sustainability and sales and marketing.
Steve Bulmer, Manufacturing Guild Mark chairman, said: “Gaining the Manufacturing Guild Mark is the result of an extremely rigorous audit and assessment process. We scrutinise every aspect of a business’s operation and the fact that HSL passed with flying colours is testament to their pedigree and credentials as an exceptional British furniture manufacturer.”
He added: “The team really impressed us with their commitment to continuous improvement. They have refined and re-engineered their manufacturing processes after establishing their own design and development team eight years ago, investing in high-spec machinery and technology to improve efficiencies and quality.”
The firm has also launched new product ranges, gaining the Queen’s Award for Innovation.
“Equally impressively, HSL now work with a local college, which delivers the company’s furniture manufacturing apprenticeship standards. They are also keenly focused on sustainability, reusing much of their own packaging, installing a new, super-efficient extraction system in the factory and expanding LED lighting, with plans to install solar panels at its Leeds distribution facility.”
HSL operations director Ben Waters said: “We are incredibly proud of our craftsmen and craftswomen and delighted to be awarded this prestigious mark of excellence from The Furniture Makers’ Company. The award is testimony to the hard work and dedication of everyone in the HSL family.”
Harrogate-based student accommodation company welcomes new shareholder in £17.6m deal
Harrogate-based purpose-built student accommodation (PBSA) company, Homes For Students (HFS), has welcomed a new major shareholder with international real estate company Far East Orchard Limited (Far East Orchard) buying a 49% stake in the business in a deal worth £17.6 million.
Founded in 2015, HFS operates over 40,000 beds in more than 50 university towns and cities in the UK and Ireland and is considered the largest independent PBSA operator in the UK.
Far East Orchard, which has built a reputation in real estate development, investment and management across residential, commercial and hospitality properties in Australia, Japan, Malaysia, Singapore and the UK, moved into the development and investment of PBSA properties in the UK in 2015.
Legal firm Raworths, also based in Harrogate, advised HFS on the deal, having represented the company since its inception.
Martin Corbett, chief executive officer for Homes for Students (HFS), said: “The shareholders and I are pleased to welcome Far East Orchard as a new principal investor to the Homes for Students team following their purchase of 49% of the share capital from four of our exiting investors.
“Since May 2023, we have been operating Far East Orchard’s PBSA property and already established a successful partnership. We very much look forward to continuing to grow our enterprise together, investing in our people, technology and new business streams.
“Today, HFS employ over 800 colleagues and our turnover this year is forecast to be over £80m. We have become increasingly influential in the PBSA sector across the UK and Ireland, so together with Far East Orchard, will take PBSA to greater heights as part of our 2030 vision.”
Simon Morris, managing partner at Raworths, said: “We are proud to be on this journey with HFS, facilitating the company’s strategic growth plan. The investment by a significant international real estate business is a major show of confidence and further boosts HFS’s reputation as the leading PBSA provider in the UK.
“We look forward to continuing to work with HFS on this exciting new chapter as they continue to expand into new markets and locations.”
Far East Orchard was represented by CMS and the exiting investors were advised by Walker Morris and Dentons.
Developer plots Sheffield residential scheme at derelict factory site
Sheffield-based Duke Homes and Developments is to bring a derelict factory site into new residential use.
The company has bought Cliffefield Works and Fulwood House, the former Goodman Sparks workshop and office buildings on the junction of Derbyshire Lane and Cliffefield Road in Sheffield, for an undisclosed sum in a joint venture with a group of the previous owners.
The residential project, already granted permission by Sheffield City Council, will see the existing abandoned buildings demolished on the half-acre plot, with new two-storey accommodation spread across four groups of three terraces. There will be 12 three-bedroom townhouses featuring ‘heightened’ roof space and gardens.
The development, designed by Sheffield-based architects AAD, is being built on an existing sustainable 17,825 sq ft brownfield site, and will include residents’ only off-street parking to be located to the rear accessed by a short private road.
An existing stone wall along the Derbyshire Lane frontage will, in the main, be retained as part of the development, which aims to be started this summer.
Brendan McMenamin, director at Duke Homes and Developments, said: “The development features high quality designs which respect the character of the area, whilst maintaining good living conditions for occupants and any neighbouring residents.
“Sustainability forms an integral part of the plans which aim to tackle issues of climate change through good quality design and make efficient use of land and infrastructure.
“Our development will enhance the character of the street-scene and create a lively and interesting environment on a former derelict site.”
Sheffield solicitors Wake Smith adopted a multi-practice area approach advising on the company law elements plus commercial property matters for the purchasers.
Tom Haywood, associate in Wake Smith’s company team advised on the joint venture and associated financing work, while Ben Spencer, director in the commercial property team dealt with the acquisition of the site from the original owners.
Tom Haywood said: “Joint ventures are a common method of combining the business prowess, industry expertise, and personnel of several otherwise unrelated parties and can be used, as here, to combine assets and operations, share risk and make use of each party’s skills and capabilities.”
