Yorkshire & Humber firms remain confident despite challenging business conditions

Although the headline NatWest Yorkshire & Humber PMI® Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – rose for the first time since the beginning of the year from 46.9 in March to 47.3 in April, it remained below the 50.0 no-change mark, making the region the only monitored part of the UK to see private sector output shrink at the start of the second quarter.

The decrease in the region’s economic activity contrasted starkly with the UK-wide trend, which signalled the fastest expansion in a year.

Notably, Yorkshire & Humber was the worst-performing part of the UK, both in terms of business activity and new orders, as was also the case in the previous month. That said, business confidence remained strong, while employment levels across the region were only marginally reduced, despite widespread reports of intensifying wage pressures.

The level of new business received by private companies in Yorkshire & Humber continued to shrink in April. The rate of decline was fractionally faster than that seen in March, and was therefore the quickest since November last year.

Weak client confidence was linked to the reduction in sales, while some respondents commented on generally subdued demand conditions across various industries.

Notably, Yorkshire & Humber was one of just two parts of the UK to see a drop in new business, with the region also seeing the quickest fall.

The Future Activity Index posted well above the 50.0 no-change mark, signalling robust growth expectations by private sector firms in Yorkshire & Humber during April. New product releases, strategic business changes and forecasts of greater customer numbers underpinned optimism, anecdotal evidence showed.

Although the level of positive sentiment dipped to a three-month low, it was slightly stronger than seen for the UK on average.

Continuing the trend which began in February, private sector businesses in Yorkshire & Humber cut their workforce numbers during the latest survey period. The non-replacement of leavers was commonly noted as a reason for lower staffing capacity, anecdotal evidence showed.

However, the decrease in employment was only marginal overall. This compared with broadly unchanged staffing levels at the broader UK level.

Posting below the 50.0 no-change threshold for a fourteenth successive month in April, the seasonally adjusted Outstanding Business Index signalled a sustained reduction in the volume of work pending completion at private sector companies in Yorkshire & Humber.

Furthermore, the latest data pointed to a solid decrease in backlogs of work, and one that was the quickest of all 12 monitored parts of the UK.

Private sector companies in Yorkshire & Humber recorded a further steep month-on-month increase in their overall operating costs in April. Moreover, the rate of inflation quickened markedly from March to its highest in a year. Greater wage pressures were reported by survey respondents, in addition to higher costs associated with raw materials, fuel, insurance and the distribution of goods.

Prices charged for the provision of goods and services continued to be raised by companies in Yorkshire & Humber, latest survey data showed. In many cases, selling prices were lifted to offset the impact on margins from greater costs. That said, the extent to which output charges rose was moderate and the slowest for three months.

Yorkshire & Humber recorded the second-softest rate of selling price inflation of the 12 monitored parts of the UK, with only the North West seeing a slower pace of increase.

Malcolm Buchanan, Chair of the NatWest North Regional Board, said: “April marked yet another challenging month for the Yorkshire & Humber private sector, which was once again the only part of the UK to see a decrease in business activity.

“That said, April data was better with the rate of contraction slowing since March. Positively, growth expectations remain above UK trend and with economic conditions domestically and abroad improving, this should provide tailwinds for growth in the coming months.”

Barnsley pub gets new lease of life as part of Heineken’s £39m investment

Heineken UK is investing £39m in upgrading and reopening pubs in its Star Pubs’ estate this year in a move which it says demonstrates its confidence in the resilience of the great British local in the face of global uncertainty. The move will create an estimated 1,075 new jobs. More than 600 of Heineken UK’s 2,400 pubs are in line for improvement, with 94 of these set for makeovers costing on average £200,000. The investment will also cover works to reopen 62 long-term closed locals in 2024. By the end of the year, the company will have reopened 156 such pubs since the start of 2023, reducing the number of closed pubs in its estate to pre-pandemic levels. Amongst those given a new lease of life is The Ship at Worsbrough near Barnsley. A £370k refurbishment reopened The Ship earlier this year after a four-and-a-half year closure, creating 11 jobs. As well as being a pub, The Ship holds coffee mornings for senior citizens, care home residents and mother & toddler groups and has football, darts and pool teams. It also puts on charity fundraisers and provides meeting space for local groups. In the evenings, there are weekly quiz, bingo, karaoke and live music nights. New licensee Rebecca Skelly said: “The Ship needed a complete facelift to get customers back – a lick of paint wouldn’t have cut it. The smart new design has been key to converting residents into regulars. The Ship is proof of the need and demand for traditional locals. It’s part of the town’s history. Everyone comes here, from families with children to retirees – it’s a social hub, especially for the neighbourhood’s senior citizens, many of whom sat at home alone before The Ship opened again.” Lawson Mountstevens, Star Pubs’ MD, said: “People are looking for maximum value from visits to their local. They want great surroundings and food and drink as well as activities that give them an extra reason to go out, such as sports screenings and entertainment. Creating fantastic locals that can accommodate a range of occasions meets this need and helps pubs fulfil their role as vital third spaces where communities can come together. “Pubs have proved their enduring appeal; after all the disruption of recent years, Star is on track to have the lowest number of closed pubs since 2019. It’s a tribute to the drive and entrepreneurship of licensees and the importance of continued investment. We’ve spent more than £200m upgrading and maintaining our pubs over the last five years, and we’ll continue to invest to keep them open and thriving. “Time and again we see the value consumers place on having a good local and how important it is to communities. Well-invested pubs run by great licensees are here to stay, but like all locals, they need Government support to reduce the enormous tax burden they shoulder.”

Tram disruption ahead as VolkerRail improves infrastructure in Sheffield

Multi-million pound investment work to future-proof and extend the lifespan of the Supertram network will take place for nine days from 24 May. The first phase of rail replacement engineering work will start in Sheffield city centre from after the last tram on the evening of Friday 24 May until start of service on Monday 3 June, and will affect all tram and Tram Train services. Further works are planned in other areas of the tram network over the summer. During the works, carried out by contractor VolkerRail, no tram services will be able to operate between Fitzalan Square/Ponds Forge and University. Melanie Corcoran, Executive Director of Transport at SYMCA, said: “These essential works are vital to extend the lifespan of the Supertram network. Every effort is being made to minimise the impact and to keep people moving while this work progresses. “By replacing the track we’re making sure the region’s tram network can continue to safely provide its popular service for generations to come.” In addition, works will be carried out at Netherthorpe Road tram stop to replace the tram shelters. To ensure the health and safety of both the passengers and site workers, the platform will be closed throughout the works. Trams will not serve Netherthorpe Road tram stop and will, instead, run directly between University and Shalesmoor tram stops, in both directions.

Sewell Group named as one of UK’s best places to work – again

East Yorkshire-based estates and retail business the Sewell Group has been named one of the UK’s best companies to work for in The Sunday Times Best Places to Work 2024 list.

The list, which covers businesses from across the country, finds the best companies to work for by measuring staff feedback on factors including reward and recognition, information sharing, empowerment, wellbeing, pride and job satisfaction. Sewell Group Chair Paul Sewell said: “They say you have to be a great place to work to be a great company to deal with. Our aim has always been to nurture, reward and develop our talent, so they can serve our customers in an elite and sustainable way. We set standards to be a place where the best want to be and the aspirational can reach their full potential. “The Sunday Times Best Places to Work is a list based on what our people say, which is why, for me, this is the best accolade we could receive. “It’s an honour and a privilege to be in this prestigious listing and thanks go to all our staff, customers and partners who have helped us continue to grow and thrive.” Data and Information Analyst Achyut Ratkanthiwar started work with the company last year, and said working for Sewell Group has been a different experience from his previous workplaces. “I love the way people at Sewell Group support each other. When someone does well, everyone celebrates their success, and when someone has a problem, we all rally round to help. It’s a great working environment, and I’m really glad that’s been recognised at a national level.” Tracy Hunt, Hot Food Supervisor from one of Sewell on the go’s stores agreed, saying:“I’ve been working for Sewell Group for more than five years, and I’m still amazed by how friendly and helpful everyone is, from trainees right up to senior management. I’ve been given the freedom and responsibility to manage my own projects, and I know that the rest of the team always have my back if I need help.” Chris Longcroft of The Times and The Sunday Times, said: “All organisations are only as good as the people they employ and retain. The Sunday Times Best Places to Work awards recognise companies that are innovating to create an engaged and fulfilling working environment for all and in so doing they are creating the best possible platform for business success. To be named on The Sunday Times Best Places to Work list is a true recognition of excellence and I congratulate those organisations who made the grade this year.” Sewell Group has two arms, with award-winning fuel station and convenience store operator Sewell on the go, and a range of estates businesses working across investments, construction, facilities management, consultancy and data mapping. The company has made the list consistently over the past 15 years, with the result being determined through surveys with those who matter – the people that work there.

Broadband provider to sponsor children’s literary event

Hessle-based Hull Fibre is to sponsorship of The Big Malarkey Festival 2024, a literary event for children returning to East Park in June, promising a wide range of engaging activities and attractions. Young literature enthusiasts will have the opportunity to engage in creativity, music, art, writing, and storytelling as The Big Malarkey Festival makes its way back to Hull this summer. Following a week of activities geared towards schools, the festival will open its doors to families on Saturday, June 22nd, and Sunday, June 23rd, at East Park. Attendees can look forward to a captivating lineup of reading-themed entertainment and interactive experiences. The festival is making a comeback after its highly successful debut in 2017, which drew more than 8,000 participants to East Park.

Water companies plan new reservoir in response to threat of demand outstripping supply

Anglian Water and Cambridge Water have released an artist’s impression of the proposals for a new reservoir in the Fens. Projections from the Met Office show that the East of England will become hotter and drier in summer, and wetter in winter, meaning that there is a pressing need to store winter water to cope with summer droughts. Unless bold action is taken, say the water companies, the demand for water will outstrip the available supply within the next decade, making the reservoir project vital for the continued growth and prosperity of the region. The proposed reservoir in the Fens is part of a multi-billion investment programme from Anglian Water, with the water company currently building a network of strategic pipelines to bring water from wetter to drier parts of the region, which will help to secure water supplies while two new reservoirs are being built (the other proposed to be located in Lincolnshire). Geoff Darch, Head of Supply Demand at Anglian Water said: “In a future with more people but less reliable rainfall the reservoir will have a crucial role to provide future water supply. However, our aspiration goes beyond a reservoir for public water supply. Our intention is to design a reservoir that the local community can be proud of, and that will encourage people to visit and enjoy its surroundings. “The reservoir will benefit the local environment, creating new opportunities for nature to flourish, as well as contributing to the health and wellbeing of the community and boosting the local economy. It could also serve as an educational hub, using the reservoir to teach future generations about how water shapes our lives and the environment. The success of our existing water parks like Rutland and Grafham Water are testament to the positive impact sites like these have for the surrounding community as well as well as boosting the local economy.” The reservoir would allow Anglian Water and Cambridge Water to collect excess river water in winter, when flows are at their highest, and store it for use in dry summers, when water is scarcer. This would reduce the reliance on sensitive ground water sources such as chalk streams, helping to protect and restore the environment. In the future, the reservoir could be home to a range of recreational activities, including fishing, water sports and bird watching. And, through the design of its embankments, could also provide new walking and cycling routes to be enjoyed by the local community and visitors. Anglian Water’s other reservoirs, including Rutland Water and Grafham Water, welcome more than two million people each year, with the proposed Fens site also looking to create more jobs and stimulate tourism in the region. A second phase of public consultation on the reservoir proposals, which will take place from 30 May to 25 July. Over the eight-week consultation period, the water companies will be asking for feedback on the proposed design and the associated water infrastructure required to fill the reservoir, treat the water, and transport it to homes and businesses. Prior to the commencement of the public consultation, the companies are engaging with property and landowners who may be impacted by the proposals.

£10m investment sees Mayor kickstart “region of learning”

People facing barriers to employment will benefit from over £9.5 million to help them get the skills they need to secure well-paid work. Fresh from her re-election as the Mayor of West Yorkshire, Tracy Brabin has announced the £10 million package to “make life easier for those who find it the hardest.” This funding will help those struggling to secure good jobs because of their age, health condition, disability, or difficult personal circumstances. It follows a high-profile election pledge to build a “region of learning and creativity” for all, where everyone in the region is spurred on to follow their passions in life, and lifted up to reach their full potential. Those set to benefit from six new projects include single parents, people with low digital skills, people who have faced discrimination because of their ethnicity, and people with criminal convictions. Mayor of West Yorkshire, Tracy Brabin, said: “There are too many people at a disadvantage when it comes to finding and keeping work, so I’m delighted to get these new initiatives off the ground as part of our focus on a region of learning. “I want everyone in West Yorkshire to have the skills and opportunities they need to succeed, regardless of their personal circumstances. “Providing tailored support for people to smash down the barriers they face will help us to grow our economy and build a stronger, brighter West Yorkshire that works for all.” Part-funded by the UK Government through the UK Shared Prosperity Fund, the six new initiatives aim to reduce inequalities, raise living standards, and grow the economy, while boosting confidence, skills and knowledge throughout the communities of West Yorkshire.

Construction company director given suspended prison sentence

The director of a Leeds-based construction firm who failed to keep up-to-date accounting records and explain why his company spent more than £800,000 on over 100 vehicles has been given a suspended prison sentence. Eugenijus Nalivaika was sentenced to 15 months in prison, suspended for 18 months, when he appeared at Leeds Crown Court on Friday 3 May. He was also ordered to complete 250 hours of unpaid work and pay costs of £4,714.30. The 46-year-old pleaded guilty to failing to keep accounting records when he was director of Niki Contractors Ltd at a hearing in February. Nalivaika, of Charlton Road, Leeds, was also disqualified as a company director for seven years in January in separate civil proceedings brought by the Insolvency Service. Mark Stephens, Chief Investigator at the Insolvency Service, said: “Eugenijus Nalivaika enjoyed the benefits of limited liability while running his business without accepting the responsibilities that come with it. “Directors must ensure proper records are kept, filed and preserved. This is to protect consumers and other businesses who have dealings with the company.

“Nalivaika failed to do this and this sentence sends a strong signal to the business community that such a blatant disregard for keeping your accounts up-to-date will not be tolerated.”

Nalivaika was appointed as sole director of Niki Contractors in January 2020. The company had been trading since December 2016 with different directors in charge. Niki Contractors was wound-up just over a year into Nalivaika’s directorship in May 2021 due to mounting debts. Investigations by the Insolvency Service revealed Niki Contractors made more than 4,300 payments to 614 people labelled ‘wages’ between April 2020 and January 2021. The total cost of these payments was more than £3.7 million. Niki Contractors also made 106 payments totalling £869,670 to purchase vehicles, mainly older commercial vans, between July 2020 and January 2021. More than £4.5 million was paid to Niki Contractors from other companies in the same period. Nalivaika failed to explain any of the payments and did not deliver company records to the Insolvency Service or the liquidator when requested. Niki Contractors was liquidated with liabilities of more than £2.5 million. Nalivaika’s breaches have prevented the liquidator from being able to investigate the company’s accounts.

Experienced property professional joins Zenko

Independent Leeds-based residential sales and lettings agency, Zenko Properties, has appointed highly experienced property professional, Jacqui Pringle, as head of operations, property management and compliance.

Jacqui, who brings more than 18 years’ experience to the newly created role, said: “I worked with Leeds city living pioneer, Jonathan Morgan, for more than five years at Morgans City Living, which was ultimately sold to Linley & Simpson, and then retired and moved to Cumbria.

“I really missed working in property in Leeds however, and when the opportunity arose to work at Zenko Properties, I jumped at it. It’s such an exciting time for the business and with new, bigger offices opening in the heart of Leeds city centre, I’m really looking forward to the challenges that lie ahead and to playing my part in the growth of what is a very ambitious, but grounded team.”

Partner, Jonathan Morgan said: “Jacqui played an integral role during her time at Morgans, and her unmatched experience levels and unique skill sets will free up Zenko’s directors, and specifically managing director, Tobias Duczenko, to focus on business growth, whilst Jacqui takes care of the day-to-day business operations. Jacqui was our first choice for the role, and we’re delighted to have her on board.’’

Managing director, Tobias Zenko, said: “We aim to become the go to residential agent of choice in Leeds city centre and bringing Jonathan and now Jacqui into the business will help us to achieve this ambition.

“We have an impressive reputation in the city centre market for being a reliable and first-rate lettings agent and property manager, and currently manage more than 700 properties, as well as offering residential sales and specialist property investment services.”

Zenko Properties was founded in Leeds city centre in 2015 by Tobias Duczenko. Jonathan Morgan joined Zenko as a partner in 2023 and Jacqui’s appointment will see team numbers bolstered to 10.

Hull College celebrates success at Humber Renewables Awards 2024

Hull College has been crowned winner of the Excellence in Renewable Education, Skills, and Training award at the prestigious Humber Renewables Awards 2024. Now in its twelfth year, the awards celebrate the exceptional contributions of businesses and individuals in advancing the renewable energy sector within the Humber region, renowned as the UK’s Energy Estuary. The gala dinner event, staged in partnership with the Offshore Wind Conference, was held at Hull’s Doubletree by Hilton Hotel on Thursday 2nd May. As the Humber solidifies its reputation as a leader in renewable energy and embraces zero- carbon ambitions, Hull College’s award win in the Renewable Education, Skills, and Training category underlines its commitment to advancing renewable energy education. Recognising the critical need for specialised knowledge in this sector, the college has developed an extensive suite of bespoke courses in sustainability and renewable energy, working in collaboration with over 100 leading businesses in the sector. This initiative has resulted in more than 2,600 students completing training across 11 different courses, ranging from introductory sustainability to advanced courses in heat pumps and renewable transport, all of which have been in addition to their main study programme. Reflecting on the award win, Nick Marshall, Head of Engineering and Advanced Motor Vehicle at Hull College, said: “We are honoured to be recognised for our dedication to advancing renewable education and skills training in the Humber region. “At Hull College, we are committed to providing forward-thinking education that empowers our students with the necessary skills and knowledge to thrive in the ever-evolving renewable energy sector. “Collaborating closely with local businesses and organisations is integral to our approach. By aligning our curriculum with industry needs, we ensure our students are well-prepared for tomorrow’s challenges today. “As we forge ahead, our vision is to establish the college as a beacon of renewable energy education in the Humber. We aspire to nurture the next generation of innovators who will shape a greener, more sustainable world for generations to come.” Hull College has recently launched an exciting new Foundation Degree in Renewable Energies and Technologies – and applications are now open. The two-year course will begin in September 2024 and will run at the college’s Queen’s Gardens campus. From wind turbine dynamics to hydroelectric training rigs, wave energy units, geothermal units, and solar hydrogen cycle trainers, students will gain the knowledge and skills they need to embark on a career in the exciting and dynamic world of renewable energy. In addition, the college also offers a Welding and Fabrication for Renewable Industries qualification for both school leavers and adults, providing specialised training in MAG manual metal arc welding, alongside oxyfuel gas cutting and plasma cutting. For more information about these new courses and how to apply, visit www.hull- college.ac.uk.