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Yorkshire & North East administrations dominated by three core sectors as cases rise
Companies from building & construction, industrial manufacturing and retail sectors dominated Yorkshire & the North East administrations in 2023 as cases rose by 15%, according to figures from Interpath Advisory.
Analysis of notices in The Gazette by Interpath shows that there were 178 administrations in 2023 across the region representing a 15% increase from the 155 cases seen in 2022. The most impacted sectors were building & construction (31 cases), industrial manufacturing (29 cases) and retail (21 cases), covering just under half (46%) of cases.
The figures reflect the overall national trend with administrations rising 25% over 2023 to 1,307, up from 1,049 in 2022 as sluggish growth, persistent high interest rates, and fragile consumer sentiment continued to impact British businesses.
The analysis also shows that the region accounted for nearly 15% of total administrations across the UK in the first month of the year, with 11 cases recorded in January 2024.
James Clark, Managing Director and Head of the Yorkshire team at Interpath Advisory, said: “The number of administrations continues to rise as the financial challenges of recent years take their toll on businesses.
“For many companies in Yorkshire, 2023 was difficult, despite signs towards the latter end of the year that some of the prevailing economic headwinds might be starting to lessen. We’ve seen a steady and incremental uplift of insolvency activity over the course of the past 12 months and the start of 2024 hasn’t provided much cheer for management teams in the region.”
Looking ahead to the outlook for the rest of 2024, James Clark concluded: “With the confirmation that the UK has tipped into recession, the outlook for businesses remains precarious. But it’s not all doom and gloom out there.
“Inflation is proving sticky but didn’t rise as many had expected, we have a resilient domestic labour market and there’s a lot of liquidity in the debt market, which means borrowers continue to have plenty of options. Nevertheless, 2024 will likely remain a period of elevated interest rates by historic standards, and weak consumer confidence will continue to impact those sectors already feeling the pinch.
“To navigate this, Yorkshire businesses should look to recognise warning signs and cash pinch points early and seek appropriate advice. The more time that is available to deal with the issues at hand, the more options and levers are available to pull.”
More low-energy homes proposed for York’s Ordnance Lane development
A new planning application is proposing an extra 16 low-energy, 100% affordable homes at the City of York Council’s Ordnance Lane site, to be set in even more green space.
Yorkshire linseed paint manufacturer expands
Environmentally sustainable linseed paint manufacturer Brouns and Co has relocated to new premises in Sherburn in Elmet to accommodate the firm’s growth, after reporting a 400% increase in export sales to the US in the last three years.
Brouns & Co, which moved production of its all-natural linseed paint to Yorkshire in 2022, has relocated from Garforth to a site at Bypass Park Industrial Estate in Sherburn in Elmet. The paint’s primary ingredient, flax seed, is harvested at nearby Collingham.
Designed for use on timber and metal as both a coating and a preservative, Brouns & Co linseed paint has seen a leap in sales both in the UK and the US, where it has taken off with owners and custodians of the historic and new timber-built properties that are a feature of the East Coast.
US sales have quadrupled to over £100,000 since 2021 and the business reported a record quarter at the end of 2023.
Brouns & Co CEO, property restoration expert Michiel Brouns, said: “Demand for linseed paint has really taken off, particularly in the US, where the problem of how best to preserve ageing timber buildings is a real headache for owners and conservation societies.
“Linseed paint was used for centuries before the advent of the modern plastics-based paints that we now see are having an environmentally devastating effect, polluting our waterways and oceans with microplastics.
“Linseed paint is vastly superior to plastic-based paints in its abilities to preserve wood, for centuries in many cases. It is absorbed by the timber and allows it to wick moisture out, ensuring it won’t rot, and we are really pleased to be bringing this product back to market.”
Brouns & Co’s relocation to its new Sherburn in Elmet unit will enable the business, which employs a team of seven, to manufacture the paint, and store raw ingredients as well as tins of the finished product, on one site.
“Now we have everything in one location which makes everything work better logistically and will enable us to grow as a business. We hope to be creating new jobs over the coming months,” said Mr Brouns.
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Chancellor urged to use budget to create climate in which businesses can grow
- Government to match industry-led funding of £3m for planning qualifications to help plug the lack of local resource
- Ministers should commit to fund business led Local Skills Improvement Plans beyond the current 2025 cut off point to at least 2028
- The VAT registration review should be restarted with a view to removing the existing cliff edge
- Government should reform business rates to make it a tax that incentivises growth
- The Chancellor should introduce a new internationally competitive tax-free shopping scheme