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
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.
RSE invests in Dewsbury fluid transfer & chemical storage specialists
Engineering service company RSE has made a 75% majority investment in Dewsbury-based Chem Resist, a provider of thermoplastic process plant, premium branded fluid transfer products and pipework systems to safely store and transfer aggressive and corrosive chemicals.
The move further bolsters RSE’s Chemical Treatment & Fluid Transfer portfolio.
Chem Resist’s range of differentiated products for the water and chemical distribution sectors will complement RSE’s existing product range, bringing with it new opportunities for RSE to further disrupt current thinking and support their pipeline to develop new and innovative solutions for client needs in the future.
Leading the investment within RSE is Water Technologies Director, Connor Morton: “We have long admired the Chem Resist business and its reputation for high-quality products in the sectors they operate.
“Thermoplastic is the safest way to blend, transfer and store corrosive and aggressive chemicals, which are crucial for the treatment and purification of water to meet current changing environmental needs.
“RSE is already leading the way towards a zero-carbon economy by advancing its manufacturing techniques in this space. We see Chem Resist as a key enabler to this goal.
“Their spiral wound storage tanks have the lowest carbon footprint on the market compared to other technologies and can be recycled at end-of-life. We hope to work with Chem Resist’s management and employees to scale their offering to meet growing market demand in the future.”
Chem Resist Managing Director, Simon Hewitt said: “We have joined the RSE family at an exciting time. We have ambitions to grow the business and develop our product offering to meet the future needs of our markets.
“RSE have a proven track record of scaling businesses like ours whilst retaining the culture which is important to our colleagues and stakeholders.”
Chem Resist owners, Simon and Odelle Hewitt will continue to lead the development of the business within RSE.
Final building opened at Hull’s @thedock tech campus
Business leaders, politicians and members of the @TheDock tech community have come together to celebrate a decade of regeneration at the once-derelict site on the city’s waterfront.
the £22m @TheDock has become the focal point and flagship for the city’s tech sector, bringing a previously fragmented community together, and has been the catalyst for the growth of dozens of digital businesses and creation of hundreds of highly-skilled jobs.
It has also enabled traditional companies to collaborate with innovative digital start-up and scale-up ventures to embrace technology.
At the same time, @TheDock has played a major role in the transformation of the Fruit Market into a thriving urban village, which is now home to hundreds of residents and an array of independent shops, restaurants, bars and galleries.
The development has been led by regeneration specialist Wykeland Group and was kick-started by the opening of the flagship Centre for Digital Innovation (C4DI).
When plans were first mooted for C4DI, the question was asked “can Hull sustain a tech incubator?” Ten years later, and with the @TheDock campus expected to be home to 1,000 employees when the final building is fully occupied, the answer is a resounding “yes”.
Wykeland MD Dominic Gibbons said: “The opening of the final @TheDock building completes a story of sustained investment and development, which has seen a derelict site transformed into a hub of innovation and collaboration.
“When we first began this project, the tech community in Hull was disparate. We wanted to create a place where tech specialists could come together and spark ideas, to help traditional businesses embrace technological change and drive economic growth.
“This development is the result of so many people, businesses and organisations working collaboratively together to create a thriving tech campus recognised as one of the most successful anywhere in the UK.
“We’re incredibly proud to see what @TheDock has become and I’d like to take this opportunity to thank all of the businesses and partners who have been part of this journey.”
Pubs could go to extra time if home nations reach final stages of the Euros
The government has set out plans to extend licensing hours for the semi-finals and final of the men’s European Football Championships next year, should England, Wales or Scotland reach the final stages of the tournament.
In a public consultation launched today, the government has proposed that pub licensing hours in England and Wales should be extended from 11pm to 1am if any of the UK nations remaining in the tournament reach the latter two rounds in Germany.
Home Secretary Jams Cleverly has the power to extend licensing hours for occasions of “exceptional international, national or local significance”. He said: “There are few things that bring a country together more than the prospect of winning an international tournament.
“England and Scotland are on their way to Germany and Wales are still in with a shot of qualifying, so it is only right we put in place plans to support them and our hospitality industry.
“That is why we are looking at helping pubs and bars stay open longer if we reach the semi-finals or final, and ensure families, friends and communities can come together to cheer their nation on.”
The plans, which will be subject to public consultation, would provide a welcome boost for the hospitality industry and clarity for pubs and bars. This is part of a series of recent government measures to boost the hospitality industry and make sure pubs and bars have the support they need to thrive, including the continuation of relaxed licensing regulations that allow pubs, restaurants and bars to sell takeaway pints without red tape holding them back. Pub licensing hours were previously extended for the men’s Euro 2020 final and pubs also stayed open longer for the King’s Coronation bank holiday weekend earlier this year. The public consultation will run for 12 weeks with the government to take into account the views from the public, licensing authorities and hospitality industry.Frozen food company fined after employee loses fingers
A frozen food company has been fined £700,000 after an employee lost two of his fingers following an incident at the firm’s premises in Lincolnshire.
Tom Matthews, from Grantham, now champions health and safety in his current job at a different company, warning others to avoid his misfortune.
He had been working a night shift at McCain Foods’ site in Easton on 2 September 2019 when he suffered serious injuries to his left hand.
While cleaning the company’s batter system machinery, the 33-year-old had attempted to remove string dangling from a chute when his left hand was drawn in and contacted the machine’s rotary valve.
The index and middle finger were later amputated as a result of the incident.
Tom Matthews, a father-of-two, said: “The last four years have been hard and an ongoing struggle both physically and mentally. I still have circulation problems in my left hand following the incident that should never have happened.
“While I’m currently working, my new role is with the health and safety team at a different company as I want to use my story as an example to others and make sure something like this doesn’t happen again.”
A Health and Safety Executive (HSE) investigation found that McCain Foods had failed to provide appropriate guarding to prevent access to the dangerous parts of machinery, namely the rotary valve. It had not conducted an adequate risk assessment of the batter machine and had not provided employees with adequate health and safety training or supervision.
McCain Foods (G.B.) Limited, of Havers Hill, Eastfield, Scarborough, North Yorkshire, pleaded guilty to breaching Section 2(1) of the Health & Safety at Work etc. Act 1974 and Section 11(1) of Provision and Use of Work Equipment Regulations 1998 (PUWER). The company was fined £700,000 and ordered to pay £6,508.51 in costs at Lincoln Magistrates’ Court on 22 November 2023.
HSE inspector Muir Finlay said: “This incident could so easily have been avoided had the company taken simple steps to guard dangerous parts of machinery and provide employees with suitable training and supervision.
“Companies and individuals should be aware that HSE will not hesitate to take appropriate enforcement action against those that fall below the required standards.”
This prosecution was led by HSE enforcement lawyer Jonathan Bambro and supported by Rubina Abdul-Karim.
Devolution deal presents opportunities for business, says York and North Yorkshire Growth Hub
The devolution deal for York and North Yorkshire is a major opportunity for the region’s businesses, according to the York and North Yorkshire Growth Hub.
An order for City of York Council and North Yorkshire Council to create a combined authority has now been laid before Parliament, marking an important step in the devolution process. If the order is approved, a York and North Yorkshire Combined Authority will be established in the new year.
The combined authority will be led by an elected Mayor and will also work in partnership with your local authority. It will deliver the powers and funding devolved from Westminster to York and North Yorkshire. This allows it to make decisions that are in the best interests of local businesses.
Potential outcomes:
- More investment in our towns and high streets. Local decision-making will enable investments strategically. This will channel resources to significantly boost towns and high streets. This means more opportunities for business to thrive in an increasingly vibrant local environment.
- Skills investment tailored to your workforce. The devolution deal will ensure that skills investment is closely aligned with the unique challenges and needs of our region. This will allow you to build a stronger workforce now and for the challenges of tomorrow.
- Support for growth with a focus on climate-friendly solutions. The future is green, and the devolution deal places importance on supporting business to adapt to more sustainable approaches. As we collectively move towards net-zero, solutions will not only focus on reducing environmental impact. They will also seek to open new doors for growth and cost reduction in your business.
- Increased investment in housing. Employee wellbeing is vital. The increased investment in housing will ensure that your staff have access to the right mix and type of housing. This will in turn help you attract and retain top talent.
British Steel to share plans for operational changes at consultation events
British Steel will stage consultation events to showcase its £1.25billion proposals to transform its operations.
Earlier this month, the steel manufacturer unveiled ambitious plans for the biggest transformation in its history with a proposal to adopt electric arc furnace steelmaking.
The plans, subject to appropriate support from the UK Government, could see British Steel install two electric arc furnaces one each at its HQ in Scunthorpe, the second at its
manufacturing site in Teesside.
The new furnaces could be operational by late 2025 and would replace the existing iron and steelmaking operations in Scunthorpe which are responsible for the vast majority of the company’s CO2 emissions.
In December, it will stage four events – two each in Scunthorpe and Teesside – to share information about its plans.
British Steel CEO and President Xijun Can said: “We have already engaged extensively with the public and private sectors to understand the feasibility of producing net zero steel with our current blast furnace operations. Thorough analysis shows this is not viable, which is why we are proposing to transform our operations so we can make the net zero steel the UK will need for decades to come.
“We’d now like to consult with the people living in our communities about our proposals to adopt a clean and sustainable way of making steel.
“At the events, people will have the chance to see our plans in greater detail and ask questions about the planning implications for our proposals. Feedback from the events will be used to shape any future planning applications we may make.”
The Scunthorpe events are on Friday 8 December, between 11am and 3pm, at the 20-21 Visual Arts Centre in Church Square, Scunthorpe.
British Steel unveiled its Low-Carbon Roadmap in October 2021, pledging to invest in a range of technologies to deliver net-zero steel by 2050, and significantly reduce its CO2 intensity by 2030 and 2035. However, the company is now proposing to accelerate its decarbonisation journey with the potential new operating structure able to reduce its CO2 intensity by more than 75 per cent.
Xijun said: “Our desire to dramatically reduce our carbon footprint, coupled with current market conditions, means we can’t wait and need to transform our business as quickly as possible. And while decarbonisation will not happen overnight, it’s imperative we take swift and decisive action to ensure a sustainable future for British Steel.
“We studied having one large electric arc furnace based in Scunthorpe, one which was capable of manufacturing all of the steel we require for our rolling mills in the Humber and the North East. However, such a large furnace would require a new National Grid connection and it is anticipated this would not be available until 2034. We therefore believe the most viable and timely option is to have two smaller furnaces which combine to produce the volumes of steel we require.”
British Steel has started preliminary talks with trade unions about electrification, and has promised to support employees affected by the decarbonisation plans. It has agreed for its proposals to be reviewed by an external specialist on behalf of the trade unions.
The company is also working with North Lincolnshire Council on a masterplan to attract new businesses and jobs to the Scunthorpe site, parts of which could become vacant if the proposals go ahead.
Alexandra Dock Housing site released to market
An opportunity to create a brand new housing development on brownfield land near the Grimsby Fishing Heritage Centre has been released.
The site, behind the newly renovated Garth Lane waterfront area, has been earmarked by the Council for urban housing and the Council is now looking for a development partner to come forward to drive the project forward.
The 6.25 acre town centre site bordered by Fisherman’s Wharf and the River Freshney will eventually see a community of around 130 homes with supporting commercial accommodation.
The frontage of the site, bordering Alexandra Dock, was completed in 2021, and includes the new footbridge over the River.
This area was identified for homes in Grimsby’s Town Centre Masterplan, which is supported by Homes England, and is cited as an ideal location given the water nearby and the improvements that have already taken place.
Investment worth approximately £7.8m to support the development at this site has already been secured through the Government’s Towns Fund.
Cllr Philip Jackson, leader of the council with responsibilities for the economy, net zero, skills and housing, said: “The main objective of this work is to create a place that connects the town and its community with its waterside, creating a fantastic urban living environment.
“There’s a long way to go yet, and developments of this scale don’t happen overnight. But we are working to improve the town centre as a whole and this is part of that vision. Step-by-step we want to change how our town centre is used and enjoyed as a whole.”
Potential bidders can view documentation on www.find-tender.service.gov.uk– external site. Selected developers will then take part in a competitive dialogue, followed by an invitation to submit formal tenders to develop out the site from 2024 onwards.
