- Business sentiment rose in the quarter to April, having been broadly unchanged in the three months to January (balance of +9%, from -3% in January). Export optimism for the year ahead also rose moderately (+6%, from -20%). Both sentiment indicators had shown declining optimism in all but one quarter throughout 2022-23.
- Output volumes were broadly unchanged in the quarter to April, after falling in March (balance of +3%, from -10% in the three months to March). Firms expect volumes to grow in the next three months (+11%).
- Total new orders fell in April, but at a slower pace than in the previous quarter (balance of -6%, from -13% in January). Manufacturers expect orders to return to growth over the next three months (+8%).
- Growth in average costs per unit of output rose strongly but at a slightly slower pace in the quarter to April (balance of +39%, from +43% in January; long run average of +18%). Cost growth is expected to remain elevated in the quarter to July (+42%).
- Domestic selling prices increased over the three months to April (+10%, from +2% in January). Export price inflation decelerated from January (+9% from +14%, and now the weakest since January 2021). Both domestic and export price growth is expected to pick up in the next three months (+27% and +22%, respectively).
- Investment intentions for the year ahead improved relative to January. Manufacturers expect to raise investment in product & process innovation (+15% from -5% in January, the strongest since the quarter to January 2022). Investment in training & retraining is expected to be broadly unchanged (+1% from +6%). Investment in tangibles is expected to be unchanged, including buildings (-3% from -29%) and plant & machinery (+2% from -15%), with the balances having recovered from three-year lows in January.
- The main constraint on investment was uncertainty about demand (cited by 49% of manufacturers), followed by inadequate net return (36%), and a shortage of labour (+15%, the lowest in three years). Concerns around the cost of finance have retreated from a 33-year high (excluding the pandemic period) but remain double the long run average (11% from 22%).
Manufacturing sentiment improves
Sentiment within the manufacturing sector improved in April and output expectations were the strongest for six months, according to the CBI’s latest quarterly Industrial Trends Survey.
Output volumes were broadly stable in the three months to April, following strong declines in output over the first quarter of 2024. Manufacturers expect output to rise over the next three months, with expectations the strongest since October 2023. Average cost growth remained elevated compared to historical norms, with costs also expected to increase at a strong pace in the quarter to July. Domestic and export price inflation are expected to pick up slightly in the next three months.
With demand uncertainty falling back, and concerns over the cost of financing diminishing, investment intentions for the year ahead improved relative to January. Manufacturers expect investment in buildings and plant & machinery to be stable over the year ahead, which marks a shift from the picture in January, when investment intentions sank to their weakest for three years. Moreover, spending on product & process innovation is now expected to increase over the year ahead.
Anna Leach, CBI Deputy Chief Economist, said: “Conditions facing manufacturers have taken a turn for the better, with sentiment improving and expectations for future output growth their strongest in six months.
“A softer labour market has eased concerns that skills and labour could constrain output and orders. Concerns about access to materials and components are also at their lowest since January 2020. These brighter conditions are supporting a more stable picture for investment over the year ahead.
“With the recovery still to fully pick up steam, we need to see everyone laser focused on delivering the big reforms that will help manufacturers grow and invest. Full capital expensing, with the potential to extend this to leased and rented assets, can be a game changer that unlocks the incredible power of our manufacturing sector and drives economic growth.”
The survey, based on the responses of 257 manufacturing firms, found:
Andrew Jackson Solicitors makes raft of promotions
Regional law firm Andrew Jackson Solicitors LLP has made several promotions across the firm, which this year celebrates its 150th anniversary.
Solicitors Yasmin Fenton and Harry Mills (real estate & property), Pippa Heuck (private client) and Grace Moreton (corporate) have been promoted as associates; Rikki Foster becomes a senior solicitor (litigation); and, Benn Shilleto and Sam Bailey have been promoted as trainee solicitor and paralegal respectively (corporate).
Yasmin and Harry each have several years’ experience assisting clients in different sectors across a broad range of transactional commercial property work including sales, purchases and lettings, refinancing, development projects, overage agreements and option agreements.
Pippa has many years’ experience assisting clients with the preparation of Wills, Lasting Powers of Attorney and applications to obtain Grants of Probate and Letters of Administration. She also deals with the administration of estates, assisting with complex estates.
With a strong corporate background, Grace is an experienced restructuring and insolvency lawyer who advises across a range of non-contentious matters, which require specialist knowledge of company procedures including share allotments and transfers.
Andrew Jackson’s managing partner, Mark Pearson-Kendall, said: “These latest promotions reflect the firm’s continued investment in our hardworking and dedicated team, and our commitment to the delivery of an excellent service to the businesses and individuals we work with.
“Very well done to our newly promoted associates – Yasmin, Harry, Pippa and Grace – and to Rikki, Benn and Sam, all of whom have demonstrated their ability to deliver exceptional client services, which is what we aim to achieve right across the firm.
“As we celebrate 150 years since Andrew Marvell Jackson established the firm in 1874, we remain committed to retaining and recruiting the best talent from the region and beyond, enabling us to deliver the highest standards to our clients, with a service which is both professional and personable.”
Human risk management business secures £3.25m investment
Boxphish, a Leeds-headquartered human risk management business, has secured a £3.25 million investment from BGF.
Boxphish’s suite of cyber security training courses, customisable phishing simulations, and data analytics equips organisations, and their teams, with the tools and knowledge needed to mitigate the risk of falling victim to cyber attacks.
Founded in 2020, by serial entrepreneurs Henry Doyle and Dan Bailey, alongside CEO Nick Deacon-Elliott, Boxphish has a growing customer base and library of training courses that meet the needs of organisations from across a broad range of sectors and sizes, working with the likes of North Yorkshire Council, University of Cambridge, and Leeds United FC.
The funding from BGF will allow management to accelerate investment into product, people and partners.
Boxphish CEO, Nick Deacon-Elliott, said: “We’ve been scaling at real pace over the past few years. By combining relevant and interactive training with real-world phishing simulations and data-driven dashboards, we’re helping organisations identify, reduce and report on their human cyber risk, delivering real value to our clients.
“We’ve known BGF for a number of years and are now at a stage where partnering with an experienced, long-term, minority investor with a strong track record of working with other regional tech companies is the the right thing to do.”
The deal was led by Rob Johnson, investor in BGF’s Yorkshire & North East team, who will join the Boxphish board. He said: “We’re delighted to be backing a highly-experienced and commercial team in Nick, Henry and Dan, who have established the foundations for continued growth over the coming years.
“We look forward to working closely with Boxphish and leveraging the wider BGF network, to help the team accelerate their product and commercial strategy, as we look to cement Boxphish’s reputation as one of the most exciting, up-and-coming players in the human risk management space.”
As part of the investment, Andy Dancer has also joined the board, as non-executive chair, following an introduction from BGF’s Talent Network – one of the largest groups of board-level non-executives in the UK and Ireland.
Andy brings a wealth of experience in founding, scaling, and exiting other tech-focused businesses, and will support the team in refining and executing its growth strategy.
Huddersfield accountants merge into group
Sheards, the Huddersfield-based Chartered Accountants, have merged into the SMH Group.
Now named SMH Sheards, the firm continues to operate from their office in Huddersfield, with all the team remaining unchanged.
Carolyn Atkinson and Kevin Winterburn from Sheards said: “After 121 years of being an independent firm, we are delighted to be strengthening our future and enhancing the services we can offer to our clients.
“We are looking forward to working with the SMH Group whilst retaining our high standard of service. We remain the friendly face of accountancy in the Huddersfield area.”
Jonathon Dickens, partner at the SMH Group, said: “We are thrilled to announce the merger of Sheards into the SMH Group, marking a significant milestone for both firms, and increasing the overall head count within the group to over 150 staff.
“This strategic alliance not only ensures long-term stability for the firm, but also offers a range of value-added services available to clients of Sheards. Furthermore, it enhances our expansion into West Yorkshire, as the SMH Group continues its aim of becoming the go to professional services firm in the region.”
CMP Legal and Ramsdens Solicitors provided guidance throughout the legal proceedings of the deal.
Automotive collision repair business gears up for growth at Ripon business park
Small to mid-box commercial property business, Potter Space, has welcomed established Yorkshire business, Turners Accident Repair Limited, to its Ripon business park. The business has agreed to a ten-year lease as it gears up for a period of growth.
A regional family business which began trading in Selby in 1969, Turners is a partner to many of the UK’s leading insurance companies and fleet operators, undertaking vehicle accident repairs. The business has additional premises in Doncaster, Leeds and Sheffield.
Thomas Turner, Managing Director at Turners Accident Repair Limited, said: “Expanding our business operations to service Harrogate and the surrounding areas is proof of our continued stability during a period of economic uncertainty.
“It was essential for us to find a location where our business could continue to grow in an environment that closely aligned to our values; which our new partnership with Potter Space more than achieves.
“The construction team went the extra mile to support us by taking the time to help us make valuable decisions to make the unit truly feel like a home for business.”
Chris Collins, Head of Asset Management at Potter Space, said: “We are investing in our parks to provide space for local businesses to grow.
“Welcoming Turners Accident Repairs Limited to our newest unit at Potter Space Ripon not only demonstrates that we are supporting the need for more space for growing businesses, but it will also be the start of a long-term partnership with a business that mirrors our core values.
“Excellent customer care is at the heart of our operations, and we look forward to helping Turners fully settle into their new home for business.”
The deal with involvement from GV&Co and Fox Lloyd Jones will see Turners join an existing community of diverse businesses that currently occupy Potter Space Ripon, including long established partnerships with AB Neo, I’Anson and Bowker Group.
Potter Space is also in the process of securing planning permission for three new units at the Ripon site which will introduce an additional 22,980 sq ft of industrial and logistics space to the Yorkshire market on completion.
Minority stake in A-SAFE acquired
A minority stake in A-SAFE, the designer, manufacturer and distributor of industrial polymer safety barrier systems, has been acquired by IK Partners’ IK Partnership II (IK PF II) Fund.
IK acquired its stake from the Smith family who remain significantly invested. This is the final investment from the IK PF II Fund, which is now fully committed.
Founded in 1984 and headquartered in Yorkshire, A-SAFE produces a diverse range of polymer-based products which are deployed in factories and warehouses across the world to safeguard both people and assets from collisions with vehicles such as forklifts.
The company has over 700 employees, with over 80 individuals committed to research and development.
As a founder owned and managed business, A-SAFE has achieved significant organic growth and today, serves more than 6,000 customers in over 50 countries. Its diversified customer base comprises some of the world’s largest businesses, including Coca-Cola, UPS and Amazon.
With the aim of further strengthening its leadership position in the industrial polymer space globally, the company decided to form a partnership with IK.
With the support of IK and its dedicated Partnership Fund, which focuses on minority investments in established fast-growing entrepreneurial businesses, A-SAFE is poised for further growth.
James and Luke Smith, co-CEOs at A-SAFE, said: “We are pleased to be partnering with IK. This is an exciting opportunity for us as we look to fortify our leading position in the market, while simultaneously expanding our global reach, enhancing our product offering and driving greater value for our customers.
“With IK’s expertise and resources, we are confident that the company will go from strength-to-strength and we look forward to working with Thomas and his team.”
Thomas Grob, partner at IK and advisor to the IK Partnership II Fund, added: “A-SAFE’s expansion into new markets and product segments, alongside its commitment to innovation, has firmly positioned it as an industry leader in workplace safety, protection and efficiency systems.
“The company’s ability to anticipate market needs, coupled with its relentless pursuit of product excellence, has garnered our utmost confidence in the management team and its ability to drive positive action. We look forward to working with James, Luke and their team over the next few years.”
Private equity firm invests in replacement vehicle parts supplier
Radial Equity Partners has invested in Rimmer Bros, a Lincolnshire-based supplier of replacement parts for UK marque vehicles, including Jaguar, Land Rover, MG, Mini, Rover and Triumph.
Founded in 1982, Rimmer Bros maintains a comprehensive product library of over 50,000 SKUs sold primarily on a direct-to-consumer basis. The company has approximately 80 employees working out of its operation in Lincoln.
Radial has simultaneously invested in Moss Motors, a U.S.-headquartered aftermarket supplier of parts for British cars, to form “a leading, global specialty supplier of restoration & replacement parts focused on British vehicle brands.”Bill and Graham Rimmer, founders of Rimmer Bros, said: “The merger of these highly complementary businesses creates a global business with immense R&D, sourcing, marketing and distribution capabilities to better serve our loyal customers.”
“We are excited by the opportunity to carry on the great legacies of these two family-owned businesses,” said Jim McDonough, partner of Radial. “We are committed to continuing to provide leading service to customers as well as expanding the offering of parts solutions across existing British brands as well as new vehicle marques.”
Hull-based building materials supplier opens another showroom
Hull-based building industry supplier MKM has opened its 128th branch, creating 19 new jobs in Shrewsbury.
The new branch will be led by Branch Director Patrick Chall, who is local to Shrewsbury and has vast experience in the building merchant industry, and said: “I’ve lived in Shrewsbury for over 16 years now, it’s a beautiful town and one I’m happy to raise my children in – to have the opportunity to lead a business in an area I love is a real privilege. The community is tight-knit, and I’m determined that the new MKM Shrewsbury branch will be an extension of that. To locals, we want to be the ‘big yellow building down the road’ and our customers can always expect us to be welcoming, helpful and provide the products and services they need.”
East Yorkshire professionals scoop national construction building industry awards
Two East Yorkshire project managers have been named winners in the Chartered Institute of Building annual awards.
Martin Standley, a project manager at Hull-based Sewell Construction, was a silver winner in the Construction Manager of the Year for Education, and Katy Robinson, Senior Project Manager at East Riding of Yorkshire Council, received the Equality, Diversity and Inclusion Individual Award for her contribution to a PPE campaign. Martin was nominated for his work on constructing Broadacre Primary School in Hull, a new school which had a purpose-built base for young children with autism spectrum conditions. Katy was nominated for her work on her campaign to address the inequalities of PPE provision for minority groups in construction. The campaign was launched after research found that nearly 60% of employers were not providing women’s specific PPE to their workforce. The judges praised the pair’s passion, dedication and hard work, with both of them up against a talented field of nominees. Caroline Gumble, chief executive officer at CIOB, added: “There is no doubt that there’s a real depth of talent among the UK’s built environment professionals, with some incredibly impressive projects making the list of finalists. “It was great to see the awards go to a range of individuals and companies, all of whom are amazing examples of leadership and dedication, all delivering a high-quality built environment. Many congratulations to all our winners.”Former childhood runaway features in sought-after event during Humber Business Week
A former childhood runaway who grew up to be a globetrotter at the centre of the tech revolution of the 1980s will tell her story at this year’s Humber Business Week.
Ragini Annan will also reveal how she immersed herself in the traditions of the Vedic religion and culture as she battled to recover from a series of personal and professional crashes during the 1990s. Her attendance at the “Awesome Women” Elevenses session with Biz Week founder and Chair of Sewell Group Paul Sewell is likely to be one of the hottest tickets at a festival of business which this year marks its 20th anniversary. Paul said: “We have never committed to making Elevenses an annual thing but if there’s somebody I come across who I think is interesting we will do it. “I know Ragini and her husband Scott through the Independent Retailer Owners’ Forum, which goes around the world looking at best practice. After sitting in airports and on planes with them I found she had quite an interesting story to tell and she was happy to come and see us in Hull.” Ragini was born in Uganda to Indian parents and arrived in the UK in the 1970s. A computer sciences degree from Loughborough University set her on the road to a career in tech and to roles with Mitch Kapor’s Lotus start-up and then with Apple and Steve Jobs. Things began to unravel in the 1990s as she hit a series of personal and professional problems. Paul said: “I’ll be asking Ragini about her work at the very top, with some of the biggest names in tech, and about how, when everything fell apart, she pursued resolution and renewal through the Vedic culture.” Paul introduced Elevenses to the Biz Week programme in 2021 and developed the theme of Awesome Women after being joined by broadcaster Steph McGovern, politician Baroness Sayeeda Warsi and Debbie Robinson, the Central England CEO and European Vice President of the Co-op. He said: “I have been brought up in an area where boards were male, middle aged, middle class and wore suits so I do like it when you find a female who can come and be a role model. “We have been successful at Sewell Group in recent years and the number of females in the business has grown exponentially. At one point we appointed four new directors and they were all women. They bring a good balance to your top team and your board and they reflect your customer base. “With women, whether it’s Steph, Sayeeda, Debbie or whoever, if they reach a certain level you will generally find they have had to overcome something more than your average man has had to deal with – and built some resilience along the way. “The style has gone down very well. I’m not an interviewer but I do like having a natter with people and we always allow maybe 20 minutes at the end to let the audience join in. They never run out of questions.”