Levelling Up Funding to support restoration of Hull building for commercial unit and apartments
A heritage building in Hull city centre is to be restored to create a commercial unit and four apartments.
HU1 2AP Limited has been awarded £78,865.71 towards its project at 3 Parliament Street which will bring back into use over 300 sq m of unused floor space.
The grant is from Hull City Council’s government-backed Levelling Up Funding.
The project will also restore a Grade II listed building, with four one-bedroom apartments to be created over floors one to three for flexible use as either dwellings or holiday lets, above a ground floor commercial unit.
Listed building consent and change of use application have already been obtained for the scheme for which HU1 2AP Limited will be investing more than £184,000 of its own capital.
Cllr Paul Drake-Davis, the council’s portfolio holder for regeneration and housing, said: “It is pleasing that the council has been able to grant further Levelling Up Funding towards city centre regeneration.
“Hull has a shortage of city centre living and this applicant’s project will go towards alleviating that, as well as bringing in private capital.
“It is brilliant to hear that more unused floor space will be brought back into use, whilst also helping to restore another heritage building.”
2024 Business Predictions: Michael Porter, Senior Director, CBRE’s Valuation team in Leeds
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Michael Porter, Senior Director within CBRE’s Valuation team in Leeds.
CBRE’s 2024 market outlook report indicates a nascent economic recovery expected in the second half of 2024. Investors are currently cautious and this sentiment is likely to continue into the early months of 2024. However, confidence should return once interest rates start to reduce and inflation declines.
The Bank of England has stated that the base rate is expected to remain elevated during 2024, although they are conscious that delays in rate cutting would dampen the general anticipated economic recovery over the next couple of years.
Investors interested in the Yorkshire market are likely to continue to prefer the living sectors which have, to date, been more resilient to recent economic pressures, and industrial assets are also likely to be favoured as an investment opportunity.
Commercial real estate will likely be more attractive in 2024, with investment prospects set to improve as value declines have stopped in some sectors and slowed in others.
Pricing across sectors appears to be stabilising with adjustments, particularly in the industrial and office sectors largely having taken place in the latter part of 2022 and throughout 2023.
It is also expected to be a year for opportunistic equity buyers or those with lower debt requirements and whilst a significant number of loan refinances are due during the year, the cost of debt is expected to fall and should improve the viability for buyers utilising debt. With higher yields now applying to office and retail stock, these assets could be favoured by contracyclical investors, seeking greater returns and accepting higher levels of risk for doing so.
Administrators appointed to Leeds-headquartered Communisis
Administrators have been appointed to Leeds-headquartered Communisis group, which specialises in the provision of transactional communications, procurement services and marketing execution to customers across the FMCG, retail and regulated markets.
The company employs just over 1,000 people in the UK and circa 200 overseas.
Mike Pink and Steve Absolom from Interpath Advisory were appointed joint administrators of Communisis Limited on 28 December 2023. At the same time, James Clark and Steve Absolom from Interpath Advisory were appointed joint administrators of Communisis UK Limited, Communisis Digital Limited and Communisis Data Intelligence Limited.
The group’s Brand Deployment (BD) business provides marketing and brand engagement services to some of the world’s biggest brands. Its Customer Experience (CE) business provides secure print and mailing services for the UK’s largest financial and public institutions, communicating to every household in the UK, and delivering c700 million information packs and 1.3 billion pages per annum.
The group, and the CE business in particular, had been experiencing challenging trading conditions for some time. The printing sector as a whole is witnessing inexorably declining volumes in the wake of the emergence of digital technologies, while the costs of production – including rising energy prices and the cost of paper – has also hit some companies across the sector hard.
A digital transformation programme which sought to improve Communisis’ legacy technology platforms proved to be more complex and costly than originally forecast.
In addition, in October 2023, the companies’ U.S. parent, OSG Group, announced it was to enter a Chapter 11 restructuring process which, once complete, would see Communisis Limited exit the OSG Group.
Communisis’ financial pressures were then further exacerbated by the loss of a number of customer contracts which resulted in excess capacity at certain of its sites.
Over recent months, the group has worked closely with its advisors, customers and stakeholders to explore a number of options which would enable the CE business to move forward on a more sustainable footing, including exploring options around a whole or partial sale. When it became clear that a solvent solution could not be found for CE, the directors took the decision to seek the appointment of administrators.
Immediately following their appointment, the joint administrators of the companies completed a sale of the shares of the BD business and certain assets of the CE business to Paragon Customer Communications (London) Limited.
The transaction includes the agencies Twelve and Editions and the point of purchase specialist, Vox Group. Paragon’s acquisition of certain assets of the CE business is primarily for the delivery of services for Lloyds Banking Group. This will see Paragon managing over 100 million communications to and from the bank’s customers annually.
The transaction safeguards the jobs of 581 people, including those working in the BD business across the globe.
In addition, 25 employees have transferred to new suppliers over recent months as customers have exited the Communisis platform.
However, with certain operations ceasing at the group’s facilities in Liverpool, Leeds and Cramlington, 638 employees have been made redundant.
Stephen Absolom, managing director at Interpath Advisory and joint administrator, said: “First and foremost, we recognise that this will come as a devastating blow to those Communisis workers who have been impacted by redundancy.
“Our immediate priority will be to work with all affected employees to ensure that the full range of support is available to them.
“We will be making contact with Communisis’ key competitors, customers and other companies who work in this space to enquire around possible employment opportunities for staff. We will collate all relevant information, including contact details such as telephone numbers and hotlines, and we will also be speaking as a matter of urgency with the Job Centre Rapid Response Unit.
“We are also liaising with the Insolvency Service in relation to the timing of redundancy payments via the Redundancy Payments Service.”
James Clark, managing director at Interpath Advisory and joint administrator, added: “The transaction with Paragon enables the historically profitable Brand Deployment business to move forward under new ownership, as well as ensuring the continuity of service to Lloyds Banking Group.
“The complexity of the Communisis business means that this transaction is the culmination of many months of hard work from a wide range of stakeholders. We’d like to thank each of them, in particular the Communisis workforce who have maintained service levels to customers under extremely challenging circumstances.
“In addition, the support and efforts of the Communisis’ customers, suppliers, as well as the Pensions Trustees and regulatory bodies have ultimately enabled this agreement with Paragon to be reached today.”
Yorkshire’s farm businesses prepare to celebrate Plough Sunday
Farm businesses and farming families producing food for the nation and managing Yorkshire’s countryside will be celebrated at Ripon Cathedral’s Plough Sunday Service, supported by the Yorkshire Agricultural Society.
All are welcome at the service on Sunday 14th January at the start of a new year which brings fresh opportunities and challenges for British agriculture.
For many farmers, 2024 means looking for the best ways to adapt to new government policies, and trialling and adopting increasingly innovative approaches to farmland management and food production.
It may also mean pursuing ways to secure their futures by diversifying what they farm and adding value through new ventures.
Farmers set out to do so during a period of uncertainty ahead, with a general election to come and unpredictable weather patterns amid the changing climate.
Allister Nixon, Chief Executive of farming charity the Yorkshire Agricultural Society said: “As crucial stewards of the nation’s precious food-producing landscapes, farming families will continue to have the support of the Yorkshire Agricultural Society whatever the year ahead brings.
“So, in time-honoured tradition, we partner with Ripon Cathedral for its Plough Sunday Service where blessings will be offered to those who farm the land. We wish our farmers and their families a productive and fulfilling 2024.”
As well as organising the 165th Great Yorkshire Show on Tuesday 9th to Friday 12th July, the Yorkshire Agricultural Society will offer events, training, bursaries and grants to support agriculture in the North of England throughout the year.
Plough Sunday is an ancient festival which was revived by the Victorians. Traditionally it is celebrated on the first Sunday after Epiphany.
In the Medieval period, when there was only one plough in each village, the village plough was brought into church for a blessing before ploughing began on Plough Monday, the first working day after the 12 days of Christmas.
In days when work was scarce in winter, the observance looked forward to the time of sowing with the promise of a harvest to come.
The Dean of Ripon, The Very Rev John Dobson, who will lead the service said: “We at Ripon Cathedral always rejoice in organising this service in partnership with the Yorkshire Agricultural Society.
“It is a highlight of the early months of the year, a great opportunity to celebrate the contribution made to the common good by those who farm and work in food production industries, as well as many within rural communities.
“We pray for God’s blessing on their efforts, as well as on our attempts to care for the environment. This is a service to which all are welcome.”
Survey predicts increases in turnover and price hikes
The percentage of firms expecting an increase in turnover over the next year has risen to the highest level since Q1 2022 when Covid restrictions were lifted, according to the latest Quarterly Economic Survey from the British Chambers of Commerce.
The data also reveals that more firms expect price hikes, ending the downward trend of the last two years.
The survey of more than 5,000 firms across the UK, most of whom are SMEs with fewer than 250 employees, also reveals business performance across different sectors varies considerably.
The percentage of respondents reporting increased domestic sales rose slightly to 36%, compared with 35% in Q3. Meanwhile, 22% reported a decrease and 42% said sales had remained constant.
There were significant sectoral differences. 46% of consumer services firms said they had seen a boost in sales, whereas 35% of hospitality companies and 28% of retailers saw a decrease.
The percentage of firms expecting to see their turnover increase over the next 12 months increased to 56%, from 53% in Q3. Only 15% of respondents are expecting to see their financial situation worsen in the year ahead, 29% expect things to remain the same.
Profitability confidence has also improved, with 47% of companies saying they expect profits to increase in the next year. That compares to 45% in Q3. 21% of respondents believe their profits will fall.
Despite inflation continuing to ease, more firms are expecting their prices to rise, compared with the last quarter. 47% of respondents are predicting an increase (compared with 41% in Q3), 49% think prices will stay the same, and just 4% are anticipating a decrease.
While inflation remains firms’ biggest concern (58%), a recent trend in rising worries over interest rates has eased. 39% of businesses say they are concerned about the cost of borrowing, compared with 41% in Q2 and 45% in Q3. These figures remain high compared with the pre-Covid trend.
David Bharier, Head of Research at the British Chambers of Commerce said: “The latest QES results show steadily growing confidence among UK SMEs, particularly compared to this time last year, when the UK was beset by a significant energy price shock and political instability.
“However, while it’s likely the UK will avoid a technical recession, these results provide more evidence of a very low growth climate as most SMEs continue to report no improvement to sales, cash flow, or investment.
“The data also reveal the disproportionate impacts of economic shocks on different types of businesses. Manufacturers, for example, are more likely to be exposed to the trade barriers established with Europe, while many firms in the retail and hospitality sector are reporting recessionary conditions.
“Businesses have been desperate for a clear long-term plan for growth from Government that addresses infrastructure, access to skills, and global trade.”
Shevaun Haviland, the BCC’s Director General, added: “Our data shows business confidence is growing, but real challenges remain in the coming year. Worries about interest rates and inflation remain at historically high levels, despite a slight easing of concern.
“The recruitment challenges many firms are facing underlines our calls for a skills plan from Government alongside an affordable immigration system.
“Investment continues to the Achilles’ heel for business. The Chancellor’s decision in his Autumn Statement to make full expensing permanent was very welcome. 2024 needs to be the year when companies are given further assistance to invest.
“In the noisy election year ahead, it is crucial politicians remain focused on growing the economy and helping businesses thrive.”
Duncan & Toplis Foundation donates £30,000 to charities
Since its launch in late 2022 the Duncan & Toplis Foundation has committing to giving more than £30,000 to charity, with benefitting organisations including
- Lincolnshire Agricultural Society
- Base 51
- Newark Book Festival
- Rainbows Hospice
- Children’s Bereavement Centre
- Sue Young Cancer Support
- Boston Girlguiding
- Beaumond House Hospice Care
- Tonic Health
- Kirton Youth Challenge
- The Respite Association
- Panathlon
Sowerby Developments completes 16-home development for Lace Housing
Contractors T.G. Sowerby Developments Ltd have completed a 16-home development in Scunthorpe for affordable housing association LACE Housing.
Designed by Cambridge-based Saunders Boston Architects, Collinson Court near Scunthorpe town centre will provide 16 affordable, safe and secure homes for people aged over 55.
The new development is of two 2-storey buildings, incorporating 16 one-bedroom and two-bedroom apartments, as well as a communal lounge facility, mobility scooter store and enclosed private gardens.
James Bonsall, Director at T.G. Sowerby Developments Ltd, said: “With this scheme, Lace Housing has had an incredibly positive impact on the local area by transforming the site from what it was into a modern and attractive development, specifically designed for older people to live, and it has been a pleasure to work with them to achieve this.
“We’re extremely proud of the workmanship and quality of finish which our tradespeople have delivered on this project, which has also enabled us to sustain and create several apprenticeships with our firm, with trainee bricklayers, joiners and site managers all getting some of their first experiences of the construction industry here.
“We sincerely hope that all the residents of Collinson Court will be very happy in their new homes.”
The scheme is designed to aid and encourage access to the wider community and is located within easy reach of supermarkets, public transport, a doctor’s surgery, convenience stores and eateries.
Nick Chambers, CEO of LACE Housing Association, said: “We are dedicated to providing affordable, high quality homes for the Lincolnshire community, which are open to anyone over the age of 55. This scheme will provide much-needed affordable housing to support independent living for our older and vulnerable people.
“With our first residents having already moved in, I’m so excited to hear what they think of this excellent facility. We’d like to encourage anyone who is interested in moving to Collinson Court to get in touch with us via our website.”
To be eligible for LACE’s accommodation, residents will be required to meet certain criteria, including having a connection to the local area of North Lincolnshire.
HEY! Did you know broadening membership base had resulted in name change for business club?
The Business Culture Hull changed its name to reflect increasing membership from further afield.
MD Tony Bowler said: “Over the years we’ve had multiple business owners outside the HU1 to HU9 postcodes join our club, but its name suggests geographical limits that may put off some people outside the city. That’s why from 1st January 2024, we will be known as The Business Culture Hull & East Yorkshire, or HEY for short.”
The Business Culture HEY will enable businesses across the region to get involved in the club’s networking sessions, peer support programme, collaboration projects and inspiring events, including their very first ‘Business Expo’ scheduled for April this year.
“From the outset we have always embraced and welcomed new members from across the region, the only caveat is that they are willing to help and support their fellow members,” said Tony. “Our business community stretches from York and Driffield to Grimsby, Scunthorpe and Goole. By changing the name, we’re making it clear that businesses across Yorkshire are very welcome to join. A larger membership can only be a good thing for the group as a whole, as there will be more people to connect with and a richer variety of knowledge to tap into.”
“The Business Culture HEY is a family of like-minded businesses who share good news, advice and support with the central ethos of growth and connection,” said Tony. “From open networking and training sessions to VIP private dining clubs and industry-leading motivational speaker events, there’s a lot to be gained by becoming a member and engaging with our community.”
Founded in January 2016 by husband and wife team Tony and Michelle Bowler the organisation ws directed at Hull business owners and their employees, and now has 180 business members and over 6,500 individual members. Its popularity soon resulted in entrepreneurs, start-ups, sole traders, limited companies and charities further afield showing interest in becoming a member, which motivated the organisers to reassess the club’s name.
Jobs on the menu as plant-based firm opens ‘UK first’ site
Almost 70 jobs will be created after a plant-based food manufacturer moved into a huge new product development site.
MYCO Holdings will transform a former food manufacturing plant in Leeming Bar into a vertically farmed production unit. It will be the first site of its kind in the UK.
The North East-based firm hopes the move into the purpose-built 20,000 sq ft site will launch an exciting period of growth, amid an expected boom in sales of plant-based meat substitutes.
“This is a great move for MYCO, and one we all believe will help the business unlock its extraordinary potential,” said John Shepherd, co-founder and chairman of MYCO.
“This new site is a food industry first, and the concept of combining both the growing of the raw materials and the manufacturing of the finished product under one roof will pave the way for more sustainable food manufacturing practices in the future.”
MYCO’s own plant-based protein is made from oyster mushrooms and has already attracted interest from a host of household names across the food industry. And MYCO’s management team received a warm welcome when they took over the site in November – when they found mushrooms were already growing around the grounds!
Since then, the site’s been cleared in preparation for production to ramp up in the New Year. The move follows months of work with Judith Turner of North Yorkshire Council to secure the unit, which given its proximity to the A1, will further aid sustainability by reducing food miles.
To cope with the expected influx of demand, the six staff initially based at the new site will need to swell to around 75 over the forthcoming period.
According to the firm’s new CEO David Wood, the new unit helps future-proof the business while allowing the business to expand on multiple fronts.
“MYCO’s goal isn’t to turn the world into vegans but is to encourage meat-eaters to eat more sustainable plant-based products,” said David.
“We believe we can achieve this by having products that taste fantastic and are made with kitchen cupboard ingredients.
“The business believes that creating mouthwatering alternatives that resemble ‘proper’ food will make swapping from meat to plant-based substitutes far easier.
“This site will allow us to press on with that vision, whilst for the first time ever in the UK, giving customers the chance to choose genuinely sustainable, vertically farmed products.
“We hope our unique, sustainable approach can be mirrored by other food producers as ultimately, our biggest priority is to help the planet survive – we just hope we can play our part.”
Planning permission secured for up to 126 new homes in Bridlington
Keyland Developments Ltd, the property trading arm of Kelda Group and sister company to Yorkshire Water, has secured planning permission from East Riding of Yorkshire Council for a residential development of up to 126 affordable homes on land off Scarborough Road in Bridlington.
The 100% affordable housing scheme is on a circa 10-acre site, in a sustainable residential area, creating an extension to Bridlington.
Construction is planned for two, three and four-bedroom properties and an area of public space. New vehicular access will be created off the A165 Scarborough Road.
Matthew Turnbull, planning & development manager at Keyland Developments Ltd, said: “We are delighted to secure planning at Scarborough Road to increase the residential offering in Bridlington and provide new residents with a host of added benefits.
“The 100% affordable scheme will provide a significant boost to the provision of affordable housing in Bridlington, while the construction of the development could support around 211 jobs, generating a GVA of more than £10 million.”
