Business confidence rises in Yorkshire
Business confidence in Yorkshire rose eight points during September to 40%, the second highest reading in the country, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in Yorkshire reported higher confidence in their own business prospects month-on-month, up 15 points at 47%. When taken alongside their optimism in the economy, up 5 points to 37%, this gives a headline confidence reading of 40%.
Yorkshire businesses identified their top target areas for growth in the next six months as evolving their offer (39%), investing in their teams (33%) and introducing new technology (29%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. A net balance of 39% of businesses in the region expect to increase staff levels over the next year, up 18 points on last month.
Overall UK business confidence fell five points in September from 41% to 36%. Firms’ outlook on their own trading prospects remained strong at 41% despite a five-point drop on last month, and their optimism in the UK economy also remained robust at 30%, down by seven points on August’s reading.
Businesses hiring intentions remained upbeat with 26% of firms reporting plans to increase their staff levels over the next year, down five points on last month.
Companies in London reported the highest levels of business confidence for the second consecutive month at 44% (down eight points month-on-month). Firms in Yorkshire reported the second highest reading at 40% (up eight points month-on-month), followed by those in the North West at 38% (up four points month on month).
The fall in business confidence this month centred around the retail and services sectors, following strong sentiment in August. Retail confidence fell to 32% (down 12 points) dragged down in particular by trading prospects, while services confidence declined to 36% (down eight points). Construction confidence also fell to 36% (down eight points). However, manufacturing was stronger, with confidence rising to a three month high of 36% (up six points).
Steve Harris, regional director for Yorkshire at Lloyds Bank Commercial Banking, said: “Business confidence in Yorkshire is the second highest in the UK, beaten only by the capital, which is a testament to the businesses’ hard work over the busy summer season.
“As we head into the final quarter of the year, it’s reassuring to see that firms are feeling positive about their own business prospects and eyeing up further opportunities for growth. Companies should keep a close eye on working capital to ensure they have the means to seize opportunities as they arise.
“We’ll remain by the side of the region’s firms to provide them with the tools and advice they need to continue to succeed.”
Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “While the gains in business confidence we saw in August have not been maintained, it’s important to see the wider trend clearly reflected in the data which paints a very different picture to this time 12 months ago, when the economy was in significant difficulties.
“Despite some month-to-month movements, if you look at the year in quarterly time periods, confidence has steadily risen from 20% in the first quarter, 26% in the second and now an average of 27% in the third.
“Although the economic environment remains uncertain with inflation and interest rate pressures playing their part, the recent decision by the Bank of England to leave interest rates unchanged is likely to help businesses feel more upbeat about the future, which may underpin confidence in the last three months of the year.”
BCC calls for streamlined planning process to boost business investment
The British Chambers of Commerce is calling for urgent improvements to unlock the planning system across the UK to create a more effective and efficient system that boosts business investment.
The organisation’s immediate priorities are:
- Improved resources for council planning teams and more use of digitisation for applications.
- Political stability on planning reform so the system can operate unhindered for a lengthy period.
- More priority for business’ needs in the development management and plan-making process.
- Co-ordination between local and national infrastructure must be a key part of long-term planning.
- Planning system to make grid connectivity easier for infrastructure projects and new building developments.
Record financial performance for Hull family business
Continued demand for staycations has fuelled a record year for Hull family company J.R. Rix & Sons Ltd.
Victory Leisure Homes, the Group’s holiday home and lodge maker, saw an 83% growth in turnover for the 12 months to the end of 2022, rising from £52.6m in 2021 to £96.2m last year.
Pre-tax profits at the manufacturer also took a large leap forward thanks to buoyant demand in the UK holiday market, up from £0.8m in 2021 to £4.7m in 2022.
The performance, alongside a 38.7% increase in sales for Rix Petroleum, saw Group turnover reach £756.1m – the highest in the company’s history.
However, Rory Clarke, Group Managing Director said that Rix Petroleum’s performance – which saw sales reach £535.1m – resulted principally from the recovery of crude oil prices which underpin the retail cost of petroleum products.
Crude oil saw an 88% increase in price during 2022 as the global supply chain realigned in response to the sanctions on Russia, Mr Clarke said.
Group profit before tax reached £23.8m in 2022, representing significant progress on the previous year’s result of £11.5m.
Mr Clarke said: “2022 has been a record year for J.R. & Sons Ltd, with all companies within the Group contributing to an increase in profitability.
“Victory Leisure Homes, in particular, experienced significant revenue growth thanks to an extremely buoyant UK holiday market, ongoing product innovation, and a strong management team.
“This saw the business almost double sales figures for the second year in succession, as well as achieve record profits.
“Rix Petroleum was helped by an increase in the price of crude oil, which stabilised during 2022 as market turmoil created by the war in Ukraine began to subside.
“Together, these results played a significant role in helping the Group achieve its best financial performance to date.”
Elsewhere, businesses in the Group also performed ahead of expectations.
Maritime Bunkering, which supplies marine fuels to shipping vessels, saw a 73% increase in revenue, up from £55.6m in 2021 to £96.1m last year, but as with Rix Petroleum, this is largely attributable to the higher oil price.
Rix Renewables, which provides managed services for the offshore and onshore wind farm industry, made significant progression across the year, growing revenue 80% to £1.9m.
But Jordan Cars, which operates an FCA dealership selling new Fiat, Jeep, and Alfa Romeo cars, as well as used cars, saw a dip in turnover, down from £18.8m in 2021 to £15.3m last year, as well as reporting a small loss.
Performance was hampered by reduced customer demand due to inflation and concerns about interest rates, and challenges in the supply chain of new vehicle and parts.
Mr Clarke added that the Group’s strategy going forward continues to be one of reinvesting profit into opportunities it identifies through new business development, along with targeted acquisitions.
“As a board, we have always taken decisions for the long term,” he said.
Rob joins ABP to expand company’s investment portfolio
ABP has appointed Rob Morton to a new role as Lead Property Asset Manager in its Humber-based property team with a view to expanding its investment portfolio.
Rob will be responsible for identifying new business opportunities through the management and building of relationships with new and existing ABP customers and hold responsibility for asset management and property development projects.
ABP operates four ports in the Humber and has an extensive development land bank with the appetite to acquire further strategic land holdings.
Simon Bird, Regional Director for the Humber said: “ABP sees this role as central to the success of the future development pipeline and revenue growth for the business. There are many opportunities to enhance our current portfolio including reviews of underutilised parcels of land within our ports.”
Greg Lacey, Head of Property (Humber) added: “Rob has a proven record of accomplishment in asset management and will play a key role in our expansion and growth of our investment portfolio. We are constantly looking at our strategy, delivering exceptional results, and supporting the continued expansion of our customers. The introduction of this role will further strengthen our team on the Humber.”
Rob joins the team after seven years working for Commercial Estates Group where he was responsible for the performance of a mixed portfolio comprising seven office and industrial assets across the North West and Yorkshire. Rob added: “I am delighted to join ABP at this exciting time as we embark on the new property strategy. I am looking forward to working on the asset management of HIEP (Humber International Enterprise Park) and attracting new customers to what is one of the largest logistics development opportunities in the wider Yorkshire market”.
Based in ABP’s Hull and Immingham offices, Rob’s newly created role will strengthen the company’s property capabilities and bolster its new business opportunities portfolio.
The ABP Property team wants to broaden its reach and seek new clients. ABP is one of the UK’s largest property and landowners. At the Port of Grimsby in the area known as the Kasbah the company owns a substantial number of historic buildings which are currently being renovated and are the catalyst for new development plans for the location. It was recently announced that the former Ice Factory sold by ABP in 2021 is to be transformed into a conference centre with the addition of a new hotel on site.
The new position has been created following the realignment of the property strategy and is central to the success of the future ABP property development pipeline and revenue growth.
Sheffield firm’s CEO welcomed international hydrogen deal between the UK and Germany
The CEO of Sheffield-based hydrogen-for-fuel company ITM Power has welcomed the signing of a new international partnership between the UK and Germany.
Minister for Energy Efficiency and Green Finance Lord Callanan and Federal Republic of Germany’s State Secretary for Energy Philip Nimmermann signed a Joint Declaration of Intent in Berlin, which will see the UK and Germany work together to underpin the international trade in hydrogen.
Dennis Schulz, CEO of ITM Power, said: “As the UK’s only commercial electrolyser manufacturer, we are welcoming this cross-border collaboration agreement.
“An effective hydrogen economy can only take shape if countries form alliances like this one. Germany is a very significant market for hydrogen and for ITM Power. We are currently building several hundreds of megawatts of electrolyser capacity for projects in Germany, some of which are among the biggest projects in the world.
“In October, we will open our new office and EU after sales hub near Frankfurt that will further strengthen our links with our customers and partners in Germany and the wider EU.”
The two governments will also accelerate the role of low-carbon hydrogen in their nations’ energy mix, showing the world how to expand new, net zero-friendly markets. They committed to work together to further advance ground-breaking and renewable hydrogen technologies, supporting jobs and low-carbon investment.
The partnership follows significant investment by both countries in the development of hydrogen as an alternative fuel. In the UK, the government is supporting new low-carbon hydrogen production with capital from the £240 million Net Zero Hydrogen Fund and revenue support from the Hydrogen Production Business Model. In Germany, the government is also supporting the implementation of the National Hydrogen Strategy with funding from the Climate and Transformation Fund, providing a push for the ramp-up of a hydrogen market.
It will also further boost the move towards net zero emissions by 2050, and the energy security of both countries, moving away from fossil fuels and towards cleaner and more secure, diversified alternatives.
Lord Callanan said: “The UK and Germany are natural partners in making low-carbon hydrogen a cleaner and more sustainable way to power up our societies.
“This agreement will underpin the development of this new fuel not just for our respective countries but also for an international trade that could be transformative in our work towards achieving net zero emissions by 2050.
“It is through these partnerships that we can move away from expensive fossil fuels – and in doing so boost our energy security.”
SMEs blame education system for skills shortage, says report
SME owners hold the UK education system responsible for skills gaps, according to new data from small business lender iwoca.
The survey of SME owners reveals three in four think the current education system does not adequately prepare young people to take on employment. In terms of hiring, SME owners are first looking for experience in the sector (33%) and the role (28%), before checking for qualifications (4%).
More than half of the SME owners surveyed say the sector does not currently have the right skills it needs to succeed. Of those, almost half say that the skills shortages have been ongoing for at least a year.
These talent shortages are bearing an impact for small businesses – more than two in five say SME owners themselves are having to work longer hours to plug gaps. Delays to growth plans (31%) and hiring temporary workers (25%) were cited as the next biggest impacts of skills gaps felt by the SME community.
The answer to the lack of skills among employees of small businesses could lie in apprenticeships, say SME owners. Over three quarters say apprenticeships are key to solving the sector’s chronic skills issues.
Over seven in 10 (72%) believe the Government should introduce more support for SMEs to help employees upskill. By contrast, a loosening of immigration rules to remedy the lack of qualified talent saw support from just over two-fifths of SME owners.
Seema Desai, COO at iwoca, said: “Skills shortages have hit SMEs hard in recent years, and they have yet to recover. Small business owners are rightly looking for alternatives to plug these gaps, and believe strongly in apprenticeships, educational reform and tailored Government support schemes to try and fix these issues. We must ensure that the young talent coming through today have the skills needed not only to help businesses grow, but perhaps become SME owners of the future.”
Cartonplast expands to new speculatively built warehouse in Rotherham
Cartonplast UK Ltd, the reusable transport packaging company for the food and drink industry, has expanded into a brand new, speculatively built warehouse on Centurion Business Park in Rotherham.
CBRE’s Industrial team in Leeds acted for Cartonplast to secure the 31,090 sq ft Grade A Industrial unit. This expansion will create 20 new jobs for the South Yorkshire region.
Cartonplast UK Ltd, a subsidiary of the Cartonplast Group, a naturally sustainable business since it was founded in 1967 in Italy, also operates out of Watervole Way in Doncaster and has acquired the new warehouse to provide a new cleaning facility for can pads in the beverage can industry.
Cartonplast Group manages more than 300 million reusable pads ever year, and also includes plastic pallets, top caps and can pads in its portfolio. The company employs more than 750 people across 12 countries.
The 31,090 sq ft last mile distribution unit, which has an EPC A rating, was completed in May this year and includes ground floor office space, 8.87m eaves height, as well as 39 parking spaces, with 2 EV charging points.
Dani Raunjak, associate director, CBRE’s Industrial team, said: “We are delighted to secure this deal for Cartonplast UK Ltd, which is the ideal space for their expansion plans. Despite wider economic headwinds, occupier demand for industrial/warehouse mid-box units within South Yorkshire remains buoyant.
“This unit is typically one of the most sought-after types, given its quality and specification, and demonstrates the demand for well located, Grade A speculative development across the region.”
James Perryer, Managing Director, Cartonplast UK Ltd, said: “As we continue to expand our business, we are delighted to secure this new warehouse in such a strategic location in Rotherham.
“It’s ideally placed to support our growing orderbook alongside our Doncaster facility. We are pleased to create more employment for the South Yorkshire region as part of our growth strategy.”
Ed Norris, CPP, who acted for the landlord, said: “The property offers a high quality, speculatively built unit close to Junction 34 of the M1 on the Sheffield/Rotherham border.
“The unit offers a dedicated yard in a popular and established location and isn’t a surprise the unit was snapped up quickly once completed. The industrial market continues to perform well and we wish Cartonplast every success in the new building.”
Trouble at Sunny Bank Mills
Trouble At Mill, the Leeds-based events company, now has a permanent home on a 10-year lease at the Sunny Bank Mills complex in Farsley and will host year-round shows at the 500-capacity Old Woollen venue.
Dick Bonham, one of the directors of Trouble At Mill, explained: “This is tremendous news for us. Having worked with Sunny Bank Mills to develop the offer at the Old Woollen, we’re delighted to make this a permanent move. The next year is our biggest and best yet, with double the amount of shows and some familiar household names visiting Farsley.”
William Gaunt, one of the owners of Sunny Banks Mills, said: “We are delighted to welcome Trouble At Mill to Sunny Bank on a permanent basis. This move will strengthen our relationship and ensure that the Old Woollen has one of the most exciting and eclectic arts programmes in the Leeds area.
“Bringing the Old Woollen back to life was a true labour of love. The building had been derelict for 50 years and had fallen into an advanced state of dilapidation. Now it is a thriving cultural and community hub and maintains the mills’ proud connection with the arts, as both Yorkshire Television’s Emmerdale and Heartbeat were filmed here, and we have a thriving art gallery on site, too.”
Lupton Fawcett strengthens Regulatory and Corporate Defence team
Yorkshire law firm Lupton Fawcett LLP has strengthened its Regulatory and Corporate Defence team with the appointment of defence specialist Richard Etherington.
Richard, who has joined the firm as associate solicitor, has over 10 years’ experience in regulatory and criminal defence.
He represents and successfully defends individual and corporate clients facing criminal investigation and prosecution for a wide range of allegations from road traffic matters to fraud, serious sexual offences and murder.
He is well-known for his unrivalled experience of defending university students facing misconduct investigations and hearings, particularly for cases where sexual misconduct is alleged.
Richard also has many years of experience defending members of the military in Courts Martial.
Jeremy Scott, head of Lupton Fawcett’s Regulatory and Corporate Defence team, said: “I am very pleased to welcome Richard to the firm.
“In addition to his expertise across a broad range of criminal cases, Richard is a Solicitor-Advocate, able to represent clients in the Crown Court as well as in magistrates’ court, allowing them to benefit from consistent representation throughout the legal process.
“His skills and experience, together with his reputation as a specialist in defending university students facing misconduct investigations and hearings, make him a very valuable addition to our team.”
Richard said: “Lupton Fawcett is already well-known for its regulatory and corporate defence work as well as for its commitment to achieving the best possible result for clients.
“I look forward to working with my new colleagues Jeremy Scott and Meghan Waldron to build on their existing success and to expand our practice.”
Richard is based at the firm’s Sheffield office.
“Once-in-a-generation” scheme to revamp historic pier
Multi-million pound proposals to transform Scarborough’s historic West Pier have been heralded as a “once-in-a-generation opportunity” as formal plans for the scheme are due to be submitted.
A planning application is set to be lodged for the £11 million project which is aimed at bringing benefits for the seaside town’s fishing industry, businesses, residents and visitors.
The application outlines how the proposed regeneration scheme is centred on supporting and celebrating the town’s fishing and lobster industry as well as replacing the current facilities and buildings, which are no longer fit-for-purpose, with modern premises.
The West Pier proposals are part of the £20.2 million Towns Fund awarded to Scarborough in 2021, £5 million of which will contribute to creating modern facilities on the pier for harbour users with improvements for existing pier tenants and businesses as well as restoration work of some of the buildings with historical interest.
The harbour and pier area play a critical role in Scarborough’s local culture, heritage and economy with strong links to the fishing and hospitality industries.
New facilities and improved welfare for the local fishing fleet will be built, supporting a thriving maritime industry and further boosting the lobster trade.
Scarborough is now the second biggest harbour in Europe when it comes to lobster catches.
The new vision for the West Pier includes a high-quality seafood restaurant, that will increase opportunities to highlight locally caught produce, and a new public space, which could be used for outdoor events and cultural activities. New kiosks, parking and vehicle and pedestrian management, better offices, sheds and warehousing for the fishing sector and new public toilets will also be provided.
The scheme will help these industries to grow, while at the same time creating a great destination within Scarborough’s famous South Bay.
Executive member for open to business, Cllr Derek Bastiman, said: “The West Pier project is one of the key cornerstones of the regeneration of Scarborough.
“It will respect Scarborough’s heritage as a working harbour while also breathing new life into that area of the seafront for the benefit of the fishing industry.”
A number of revisions have already been made across the proposed life of the project so far in response to feedback from tenants and users.
This includes an increase in the number of car parking spaces proposed from 60 to 80 and working with local people to champion the pier’s heritage, including a memorial feature to those who have lost their lives at sea.
Cllr Janet Jefferson, the local member for Scarborough’s Castle division, added: “Now is the time to make your voice heard. I know there are many people who want to have their say so please do get involved. This is a one-off opportunity to support our heritage fishing industry.”
One of the businesses that will be directly impacted by the revitalisation of the West Pier is TG Wood, a fish merchant that has been a fixture in the town since 1970.
It is now run by Shaun Wood, who took over from his father. Mr Wood wants the West Pier securing for the next generation.
He said: “It’s a fishermen’s pier and the proposals will mean it is still a fishermen’s pier but will also safeguard it for the future.
“We need to ensure there is something to pass onto the next generation and by diversifying and offering a reason for people to use the West Pier we are ensuring that will happen.
“The buildings here are very rundown and we cannot keep living in the past. This will enhance the area and futureproof the pier.”
Shaun Wood’s son, Jack, now runs Cod & Lobster on the West Pier, a fishmongers that will get new, harbour-side premises under the Towns Deal investment plans, and crab and lobster tanks to allow them to sell wholesale.
Jack Wood, 26, said: “It is about prioritising the fishermen, giving them new facilities, better facilities and bring the pier into the 21st century.
“The scheme will give entrepreneurial fisherman the chance to take advantage of potential new opportunities and seek a higher price for their catch.
“Currently, the West Pier is not fit for use and even the look of it just does not appeal and it is not attractive to getting people onto here, either as customers or to work.
“This scheme is our best chance of securing the West Pier’s future for everyone.”
