Renewed rise in Yorkshire & Humber business activity in May
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 – posted back above the 50.0 no-change mark in May, rising to 50.5 from 47.3 in April.
The index therefore signalled a renewed expansion of output in the region’s private sector, ending a three-month sequence of reduction. That said, the rate of growth was only marginal and the slowest of the 12 regions and nations of the UK covered by the report.
The increase in business activity was in line with the picture for new orders, which also returned to growth during May. In turn, a renewed rise in employment was signalled. Meanwhile, input costs continued to rise sharply, albeit at a softer pace. Moreover, the rate of output price inflation was the slowest since September 2020.
May data signalled a renewed expansion in new orders at companies in the Yorkshire & Humber region, thereby ending a one-year sequence of decline. Greater sales volumes were reported by a number of companies, in some cases linked to successful advertising and improved market confidence.
That said, the rate of growth in new business was only fractional and weaker than the UK average.
Business sentiment was unchanged in May, remaining solid but just below the series average. More than half of respondents predicted a rise in output over the coming year, linked to business investment plans, plus expected improvements in new orders and economic conditions.
Manufacturers were more optimistic than their service sector counterparts.
Companies in Yorkshire & Humber responded to the return to growth of new orders by taking on additional staff in May. The slight rise in staffing levels ended a three-month sequence of job cuts.
Firms in the region increased employment to a slightly stronger degree than the UK average.
Although new orders increased in May, the marginal expansion was not strong enough to erase evidence of spare capacity in the region’s private sector. As such, backlogs of work decreased for the fifteenth consecutive month. The latest fall was solid, albeit the least marked for a year.
Outstanding business was down across both monitored sectors.
After hitting a one-year high in April, the rate of input cost inflation slowed sharply during May and was at a seven-month low. That said, input prices continued to rise at a marked pace. Where input costs increased, panellists reported higher wages and rises in prices for raw materials such as aluminium.
Service providers posted a much faster increase than manufacturers.
Although output prices continued to rise in May, the rate of inflation eased for the third consecutive month to the weakest since September 2020. In fact, the increase in charges in the region was the second-slowest of the 12 UK areas covered, faster only than the North West.
Some firms increased selling prices in line with higher input costs, but others indicated that muted demand had reduced their pricing power.
Malcolm Buchanan, Chair of the NatWest North Regional Board, said: “The latest PMI data for the Yorkshire & Humber region make for encouraging reading, with local firms seeing renewed increases in output, new orders and employment during the month.
“The hope will be that the recent soft patch is behind us and that growth can start to solidify and speed up over the coming months. One other development of note was that selling prices increased at the slowest pace in approaching four years, potentially providing a further boost to demand conditions.”
JMG Group motors ahead with latest acquisition
Leeds-based JMG Group has completed its acquisition of Eastbourne-based Executive Insurance Services, bringing additional commercial and motor trade insurance expertise to the business.
Directors Martyn Owen and Martin Davies will continue to lead Executive Insurance’s team of 18.
Martin Davies became a shareholder of Executive Insurance in 2010 and then the sole owner in 2012. His now business partner Martyn Owen joined Executive Insurance 13 years ago and is the director in charge of the broker’s day to day operations.
Director, Martin Davies, says: “We are proud of what we have achieved so far in our journey and have big plans for the future. JMG Group will provide the support to help make those plans a reality. The sale has been such a straight forward process, thanks to our internal processes and the expertise of JMG’s M&A team.
“As well as taking away some of the heavy lifting associated with running a broker, this will help us to further develop our team and continue to expand our client base.”
Tim Johnson, JMG Group chairman, says: “Executive Insurance Services is an ideal partner for JMG. Not only does the business extend our geographic footprint, it brings a specialist capability in the motor trade sector underpinned by an experienced team who share our client first ethos.
“This partnership will bring added value to our joint customers up and down the country and we’re excited to work together to further build on their successes to date.”
TDR Capital to become majority owner of Asda
TDR Capital has agreed to acquire Zuber Issa’s shares in Asda and will become the majority shareholder with 67.5% ownership.
TDR Capital invested in Asda alongside the Issa brothers, and together they took majority ownership of the business in June 2021.
Gary Lindsay and Tom Mitchell, Managing Partners of TDR Capital, said: “We first invested into Asda over three years ago, seeing a huge opportunity to cement its position as one of the UK’s leading retail brands.
“As majority owners, we will continue to work closely with the Asda management team and colleagues across the business to support its growth strategy, which we believe is the right one to continue to move Asda forward.”
GMB Union, however, has raised concerns about TDR Capital taking a bigger stake in Asda.
Nadine Houghton, GMB National Officer, said: “TDR Capital has serious questions to answer about their asset-stripping of Asda.
“Their private equity ownership has already been bad for consumers – with Asda now the most expensive retailer for fuel – and bad for staff, with millions of working hours cut from the shop floor.
“Further involvement from TDR can only spell more bad news. Bosses must change course to protect Asda workers and stop this British retailer further losing more market share.”
Yorkshire law firm Gordons advises Warburton’s on 65,850 sq ft distribution centre pre-let
Law firm Gordons has advised Britain’s largest bakery brand on the pre-letting of a new, bespoke 65,847 sq ft distribution centre to be developed in Biggleswade, near Bedford.
Warburtons has agreed to take a 25-year lease of the distribution and office facility at developer Tritax Symmetry’s Phase 3 of the 150-acre Symmetry Park Biggleswade scheme.
The highly sustainable building, with on-site EV charging and solar PV arrays, is expected to be completed in the third quarter of 2025.
A team led by Gordons commercial property partner, Sarah Ratcliffe, advised Warburtons on the deal.
Commenting on the support from the Gordons’ team, Jim Norton, head of distribution network transformation at Warburtons, said: “As the largest bakery brand in the UK, we have a responsibility to lead and constantly innovate. That’s not only true with our products but also with the facilities in which we bake and distribute.
“The practical commercial advice provided by Sarah and the team at Gordons played a pivotal role in enabling us to secure the pre-let of our new depot.”
Bolton-headquartered Warburtons currently produces more than two million products every day at its 11 bakeries, including one in Wakefield. It delivers fresh to 18,500 stores across the UK every morning from the company’s 18 depots.
Gordons’ Sarah Ratcliffe added: “It was a pleasure to advise Warburtons on the pre-let deal.
“The new facility will only serve to further strengthen Warburtons’ business. We look forward to seeing the state-of-the-art highly sustainable building coming to fruition now that the deal has been agreed.”
Wykeland adds Leeds office building to growing property portfolio
Leading Yorkshire property development and investment company Wykeland Group has acquired an office building in a prime location in Leeds city centre.
Elizabeth House is situated just off Wellington Place in the heart of the city centre and is a short walk from Leeds Station.
Wykeland has acquired the building from an institutional investor, which had owned it since 2014. The building comprises 25,000 sq ft across five storeys and includes 15 car parking spaces.
Elizabeth House is let to Clarion Solicitors, which was recently recognised as one of the fastest-growing law firms in Europe.
Wykeland Property Director David Donkin said: “We’re delighted to have acquired this property in a prime location in the centre of Leeds, the commercial capital of Yorkshire.
“It adds to our growing portfolio of buildings in key town and city centre locations in Yorkshire and Lincolnshire.
“We’re continuing to actively explore opportunities to acquire properties that are in attractive locations and add value to our asset base.”
Sheffield renewable energy installer acquired
Hometree, the residential energy services company, has acquired Sheffield-based renewable energy installer IMS Heat Pumps.
Founded in 2015, Hometree has become a challenger brand in residential energy services. With an initial focus on home emergency breakdown and insurance, Hometree has since expanded into renewable installations and financing.
With demand set to surge for renewable energy installations, Hometree is in a prime position to accelerate the change from gas boilers to heat pumps and other renewable forms of technology across the UK.
With targets set to have 600,000 heat pumps installed by 2028, Hometree is capitalising on this switch to renewables by acquiring IMS Heat Pumps, which has pioneered heat pump installations across England and Scotland since 1997.
IMS Heat Pumps will gain access to Hometree’s customer base, its suite of financing products and insurance services.
Meanwhile, the acquisition will enable Hometree to bolster its engineering force and re-train more of its 5,000 engineers to be able to install, repair and maintain renewables.
Hometree founder & CEO Simon Phelan said: “I’m incredibly excited to be partnering with Emma Bohan and the IMS team and look forward to helping them scale the company significantly.
“If the UK is to achieve its net zero ambition, we will need an army of installers right across the country and we’re committed to bringing together these skills, supported by financing and in-life repair and maintenance services, to make Hometree the first choice for homeowners who want to do the right thing by the planet.”
Emma Bohan, Managing Director of IMS Heat Pumps, said: “We’ve been installing heat pumps for over 25 years and we’ve watched the renewable home energy industry grow and grow in that time.
“By partnering with Hometree, we can bring our specialist expertise to many more homeowners and look forward to working closely with the Hometree team to drive uptake of sustainable heating solutions across the country.”
HACS Group steps up as music festival sponsor
Independent building and construction services contractor the HACS Group has been named as sponsor of the Harrogate Music Festival, which started at the weekend and runs until Thursday.
Sharon Canavar, Chief Executive of Harrogate International Festivals, said: “We’re delighted to announce that the Harrogate Music Festival has its very first title sponsor in The HACS Group, the leading independent building and construction services contractor.
“Arts sponsorship is vital to our work as a charity and we are thrilled that HACS have come on board with their support, and we look forward to building our Festival together in the future!”
Mark Smith, founder and MD of The HACS Group, said: “We are extremely proud of our association with Harrogate International Festivals which goes back many years.
“The Festivals’ team does an incredible job bringing world class music and culture to Harrogate and that is why we are delighted to become Harrogate Music Festival’s title sponsor.”
With experience ranging from roads and utility infrastructure projects to industrial, commercial and residential development, the reputation and growth of the HACS Group have been underpinned by their ability to provide the skills and services needed to complete, often complex projects, to the very highest standards.
This year’s Music Festival, which runs from June 8 to July 13, features an array of spectacular musical talent with artists from the worlds of classical, jazz, soul and dance music taking to the stage in Harrogate.
Former Leeds school site to be transformed into sports hub
A former school site in Leeds is set to be transformed into a state-of-the-art community sports hub.
Proposals for the new development – on land in Holbeck once occupied by Matthew Murray High School – were approved at a meeting of Leeds City Council’s south and west plans panel.
Work is now expected to start next year on the council-led project, which will include three full-size artificial grass football pitches, two multi-use games areas and a two-storey building with facilities such as changing rooms, a gym and a café.
The building will also be home to a GP surgery and pharmacy, with these services contributing to the wide-ranging health and wellbeing benefits that the development as a whole will bring for local residents.
Other elements of the scheme will include the creation of a children’s play area and improvements to a portion of existing green space at the site, which covers 6.3 hectares and sits off Brown Lane East and Ingram Road.
Outdoor seating areas, footpaths and a segregated cycle route are also planned, along with a 267-space car park and dozens of bike storage bays.
The scheme is one of three new sports hubs planned for Leeds as part of the national Parklife programme, which aims to deliver improved facilities for grassroots football using funding from the Football Association, the Premier League, Sport England, the Department for Culture, Media & Sport and the Football Foundation charity.
Councillor Salma Arif, Leeds City Council’s executive member for adult social care, active lifestyles and culture, said: “This is a key milestone for a scheme that underlines our commitment to the health and wellbeing of everyone living in Leeds.
“The new hub will be a significant asset, not just for residents in Holbeck but also those in surrounding areas and indeed the whole of south Leeds.
“Crucially, its facilities will be affordable and accessible for all, providing more opportunities for the kind of physical activity and exercise that has really important health benefits.
“It will also have a positive social impact by bringing people together, whether that’s through participating in sport or simply spending time in its attractive outdoor spaces.
“I look forward to seeing the development taking shape and eventually making a lasting difference to Holbeck and Leeds.”
Funding for the scheme will be provided from a range of sources, with the bulk coming via external grant support.
Once built, the new hub will be leased on a long-term basis to a not-for-profit trust and managed by an outside operator.
Profits generated will be invested back into improving other community football facilities across Leeds, where there is currently a shortfall of full-size artificial pitches.
Over the last three years alone, around 5,000 football matches in the city have had to be postponed due to natural turf pitches being left waterlogged or otherwise unusable.
Parklife hubs are also planned for Thorpe Park in east Leeds and Woodhall Playing Fields near Pudsey, with another already up-and-running at Bodington Playing Fields in Adel.
Charity’s new web page offers firms guidance on supporting unpaid carers
Charity the Sheffield Carers Centre has launched a new business support webpage offering free advice for firms wanting to support unpaid carers, pulling together advice, information, and support.
A spokesman for the charity said: “Most businesses know they employ some unpaid carers, but there may be others they don’t know about. Many businesses support those carers but may want to look at other ways they can help. However, some businesses may not be sure how to start supporting their employees.
“Across the UK more than 600 people quit work to look after older and disabled relatives every day. We understand the challenges of recruiting and retaining staff as well as the difficulties carers in your workforce may face.”
It’s estimated there are over 10 million unpaid carers in the UK, and that 2.5 million of these are also in employment. The contribution these unpaid carers make to the person they care for (and to their local communities in general) is invaluable, says the charity.
Thirsk-based company switches to employee ownership
Thirsk-based wholesale distributor Crofter’s Foods has become the latest company to transfer its entire shareholding to an Employee Ownership Trust, with more than 10 staff becoming part-owners of the artisan food and drink business.
Founder Grahame Armitage is remaining within the business as director with Dave Wood as MD. Grahame said: “Transferring ownership into an EOT ensures the special culture and values of Crofter’s Foods live on for next chapter of the company.
“It is a just reward for the hard work and talent of our loyal team who have helped make the business such a success over the past 19 years.
“The move to employee ownership will provide a platform for further growth of the business and continuity of service for our valued customers under the people who know it best and are most committed to its future – its employees.”
Founded in 2005 by Grahame and Jane Armitage, the specialist company works with small suppliers to distribute chilled, frozen and ambient products wholesale throughout Yorkshire and the North East. It began as a small operation, collecting products from regional Yorkshire suppliers and delivering on a regular journey plan.
It has evolved through organic growth to become a long-term supplier to leading independent retailers, hospitality venues and supermarkets with more than 250 customers.
Accountancy Azets in Yorkshire provided deal and tax advisory services. Corporate finance partner Tariq Javaid said: “Crofter’s is a great Yorkshire business, promoting and selling great Yorkshire produce.
“With its family culture, values and quality of people, the company is well suited to employee ownership. It was a privilege to work with Grahame in assisting with the transition, and the business can look forward to the future with confidence under its new ownership structure.”
EOTs have been growing in popularity since they were introduced by the government in 2014. An EOT structure enables a company to become owned by its employees through the creation of a trust which becomes the majority owner of the business.
