MAY 2019 £3.50 YORKSHIRE & LINCOLNSHIRE’S LEADING BUSINESS MAGAZINE www.blmgroup.co.uk VOLUME 34 ISSUE 5 Turning away from the traditional FORGING CONNECTIONS FORGING CONNECTIONS Keeping workers safePrescription for innovation 01 .qxp_Layout 1 10/05/2019 09:12 Page 1Asset Finance, Leasing, Contract Hire, Sale & Leaseback Lease Finance for Equipment and Machinery Property Development Finance Property development and refurbishment loans Commercial Property and Business Mortgages With interest rates starting at just 2.5% over BBR Factoring and Invoice Finance Flexible, low cost Factoring for firms of any size Specialists in Commercial Funding Solutions We are an Independent Specialist Consultancy, we provide Commercial and Business Finance support to SME clients throughout the whole of the UK. Telephone 0800 009 6066 Email info@nnbcfinancial.co.uk An Unbeatable Level of Client Service and no up-front fees 02.qxp_Layout 1 10/05/2019 08:47 Page 1Let’s be frank; the political situation in our country is a mess right now. What has become apparent for many, especially us and those further north, is that the days of relying on Parliament to make decisions to help us are gone. Local governance has become more important than ever, as has independence. Not declaring it – the last thing we need now is Linxit or Yorxit – but rather being able to stand on our own feet despite what is decided (or not decided) down south. In that regard, business is not doing so badly. It’s a sign of our resilience that we have been able to keep confidence up in a time where confidence should be at an all-time low. Perhaps it is that stiff upper-lip the English were so well known for, or maybe it’s just maturity; the wisdom in older age that lets us know that nothing will be achieved if we spend time whining or complaining about it. Whatever the case, business in Yorkshire and Lincolnshire continues to truck on. Embracing the “business as usual” theme, we’ve chosen to eschew politics (other than in this note) to focus on topics close to the hearts of business in the region. From corporate finance to commercial property, conferencing to motoring and with an in-depth look at the pharmaceutical industry, our May issue is packed full of business insight and up-to-date news. If there’s anything to take away from us, and from the region, this month, it is that we need to focus on what has made our region so strong and play to those strengths. Let the political parties do what they do best – even if that is waste time – and focus instead on our own interests. Good reading, as always Michael Fisher Editor From the Editor OAKLANDS HALL HOTEL & THE COMFY DUCK To make a booking on any event, please contact: (01472) 872 248 | meetingsandevents@oaklandshallhotel.co.uk Best Western Oaklands Hall Hotel, Barton Street, Laceby, Grimsby, DN37 7LF www.oaklandshallhotel.co.uk | www.thecomfyduck.co.uk Deliciously Deliciously Lincolnshire Platinum Awarded for outstanding quality and service by award WWW.LINCOLNSHIRETODAY.NET Oaklands Hall Hotel & The Comfy Duck is proud to be working in association with LIVES JUNE 16th Father’s Day Carvery £19.95 Adults, £11.95 Children. JULY 19th Spice Girls Tribute £25.00 Per Person AUGUST 16th Champagne Evening with Champagne Pommery £95.00 Per Person 30th Tre Amici in the Gardens £19.95 Per Person EVENTS 03.qxp_Layout 1 07/05/2019 13:28 Page 1MAY 2019 6 News The latest business news and success stories from around our region 10 Commercial property Our region is a growing nexus of digital industries with Leeds hailed as tech city, but in order to capitalise of this growth, investment is needed to ensure suitably innovative workspace is in place 14 Pharmaceutical spotlight Healthcare and pharmaceuticals form one of the most profitable sectors in the UK, generating £6.1 billion in profit between Q2 2017 to the same period in 2018. Business Link explores challenges facing the sector and how necessity is driving innovation 18 Corporate finance Deep rooted negative opinions of traditional business bank loans have pushed SMEs to alternative options 22 Made in Lincolnshire Made in Lincolnshire seeks to celebrate the area’s excellence in manufacturing and its well-earned reputation for innovation within the sector. It also aims to showcase the diversity and creativity of those manufacturing in Lincolnshire 24 Health and safety Our region often performs poorly on health and safety records, but this has less to do with negligence on our part and the scope of our business environment. That is little comfort to those affected, however, and will not stand up in court 27 Relocation and inward investment Britain might have shed its ‘gateway to Europe’ status, but there’s still plenty in our region for foreign investors to get excited about 30 Energy and environmental management As business energy bills skyrocket, and the fight to save the environment continues, it is time to fully embrace energy management and sustainable power sources 33 Security Difficult economic conditions often exacerbate the criminal problem and Yorkshire and Lincolnshire’s business parks make tempting targets 36 AutoLink If something is happening in the European car industry, chances are it’ll involve the word ‘electric’ • We take a look at the Porsche 718 Cayman GTS 42 Corporate hospitality Across every industry, teams who spend time with one another outside of work show improved performance, and yet despite this – businesses still consider team building an unnecessary luxury 45 Made in Yorkshire Taking place on the 23rd May for the 4th year running, the Made in Yorkshire event is a dedicated single industry network that has experienced extreme levels of growth and interest in its previous iterations 46 Events We take a look at business events happening around Yorkshire and Lincolnshire 50 And finally… Yorkshire-Lincolnshire- Business-Link @blmforum blmforum.net CONNECT WITH US 10 30 36 04-05.qxp_Layout 1 08/05/2019 12:00 Page 1Group Editor Steve Fisher (s.fisher@blmgroup.co.uk) Editor Michael Fisher (m.fisher@blmgroup.co.uk) Journalists Dominic Cuthbert (d.cuthbert@blmgroup.co.uk) Stuart Pearcey (s.pearcey@blmgroup.co.uk) Tess Egginton (t.egginton@blmgroup,.co.uk) Editorial contact newsdesk@blmgroup.co.uk Tel: (01472) 310305 Fax: (01472) 310317 Sales Director Angela Cooper (a.cooper@blmgroup.co.uk) Advertising Sam Trott (s.trott@blmgroup.co.uk) Vicky Hunt (v.hunt@blmgroup.co.uk) Kerry Randerson (k.randerson@blmgroup.co.uk) Tel: (01472) 310310 Accounts & Subscriptions Angela Sharman, John Downes Tel: (01472) 310301 Fax: (01472) 310311 Design & Production Gary Jorgensen, Mark Casson Tel: (01472) 310304 Fax: (01472) 310314 (studio@blmgroup.co.uk) E-Mail: yorks-lincs@blmgroup.co.uk Website www.blmforum.net Address Haychart Ltd, Armstrong House, Armstrong Street, Grimsby, N.E. Lincs., DN31 2QE. ISSN No: 1462-2092 All rights reserved. No part of this publication may be reproduced, transmitted, photocopied, recorded or otherwise without express permission of the copyright holder, for which application should be addressed first to the publisher. While every reasonable care is taken, neither the publisher nor its participating agents accept liability for loss or damage to prints, colour transparencies, negatives or other material of whatever nature submitted to this publication. The views expressed in this publication are not necessarily the views of those held by the publisher. COVER PHOTOS: SHUTTERSTOCK - EVIART • DEAR 2627 • NEIL MITCHELL • ND 3000 • PORSCHE www.blmforum.net 24 04-05.qxp_Layout 1 08/05/2019 12:00 Page 2Colleges create Yorkshire and Humber Institute of Technology A number of colleges and two universities are to collaborate in the development of the Yorkshire and Humber Institute of Technology, aimed at offering employers’ workers with higher skill levels. It will be one of several IoTs nationally, which are being funded by the Department of Education and are designed to increase higher level technical skills for employers. It will deliver new courses in precision agriculture to ensure students learn the skills needed for successful careers in modern farming. The Yorkshire and Humber IoT will bring a total investment of circa £10 million of capital funding into the region for partners to invest in industry-standard equipment and provide higher level technical training. Bishop Burton College will partner with York College, Askham Bryan College, Craven College, East Riding College, Grimsby Institute of Further and Higher Education, Selby College, the University of Hull and the University of York St John. 6 Business Link www.blmforum.net NEWS Report celebrates region’s digitally innovative businesses A new initiative aimed at showcasing the most digitally innovative businesses in the Leeds City Region has been launched by Digital Enterprise. Digital Enterprise is a Government-backed business support programme aimed at boosting the digital competitiveness of the Leeds City Region. Its ‘Digital Enterprise Top 100’ campaign will profile and celebrate businesses that have achieved growth and success through upgrading digital technology and skills, and firms are invited to nominate themselves or other companies to be included in the ranking. Programme Manager Muz Mumtaz said: “Our Digital Enterprise Top 100 campaign will be a celebration of the recent success of the Digital Enterprise business support programme…” The initiative will consist of a special report featuring 100 of the best digital companies from across West and North Yorkshire, with a celebratory event taking place in June. Yorkshire businesses remain resilient despite uncertainty Despite ongoing political and economic uncertainty, businesses in Yorkshire are continuing to put in a strong performance, according to R3. Indeed, April saw a slight fall month-on-month in the level of companies in the region at greater than average risk of insolvency for the second consecutive month. R3 research shows that the proportion of Yorkshire businesses deemed to be at elevated risk of insolvency in the next 12 months fell by 0.6% between March and April, building on the previous month’s drop of 0.2%. However, the number of higher risk companies remains high with nearly 99,500 of the almost 225,000 active businesses in the region currently in this category, representing 44.3% of Yorkshire businesses. The figure is slightly above the UK average of 42.7%. In April, all key sectors surveyed by R3 in the region except pubs saw a fall in levels of businesses at elevated insolvency risk. Bishop Burton College © Shutterstock /Tashatuvango Muz Mumtaz 06-09.qxp_Layout 1 08/05/2019 12:03 Page 1UK video games industry reaches record £5.7bn The UK games market has gone from strength-to-strength, rising 10% from 2017 to reach a record £5.7 billion in 2018. Impressive growth was recorded right across the game software and hardware markets last year, with software revenues passing £4 billion for the first time, according to Ukie, the trade body for UK gaming. There was a similar picture seen in game hardware, up +10.7% to a new high of £1.57 billion. The valuation also included an analysis of consumer spend on wider game-related culture, which generated an additional £109.6 million. In the software market, data from IHS Markit showed a significant increase in digital and online revenues, up +20.3% to a record £2.01 billion. While this figure includes full game downloads, DLC and in-game transactions, the success in 2018 of ‘Battle Royale’ games like PlayerUnknown’s Battlegrounds and Fortnite have now pushed this segment up to encompass 50% of all UK software revenues. www.blmforum.net Business Link 7 Sheffield City Region launches new-look Skills Bank A new-look Skills Bank that puts employers from across the Sheffield City Region in charge of their own skills and training has been launched. Delivered by Calderdale College, Skills Bank is a business-led programme developed by the Local Enterprise Partnership that uses devolved government funding to match private sector investment with public funding to help businesses invest in their workforce and improve their productivity. Funding is available to businesses that make a strong case for how the investment will deliver growth. The service cuts through red tape and ushers in a new culture of flexible public-sector funding works with businesses to deliver bespoke, tailor made training. It is part of a wide-ranging business support offer available through the Sheffield City Region’s Growth Hub. Mayor of the Sheffield City Region Dan Jarvis said: “The Sheffield City Region Skills Bank is another important part of our work to build a skills system that delivers for businesses, communities and the economy.” NEWS Channel 4 appoints MD of Nations & Regions Sinead Rocks has been appointed as the Managing Director of Nations & Regions at Channel 4 where she’ll be the lead executive in the broadcaster’s new Leeds HQ. In her new role, Ms Rocks, who is currently the BBC’s Director of Education, will lead the delivery of Channel 4’s ‘4 All the UK’ strategy. She will report into Chief Commercial Officer Jonathan Allan and attend executive group meetings, working with other executives and leaders across the business as a champion for the Nations & Regions. “It’s a really exciting time to be joining Channel 4,” she said. “Their Nations and Regions strategy is ambitious and compelling, and I’m delighted that I’ll get to play a key role in bringing it to life and to work with the amazing talent that exists right across the UK.” Extra £200m backing for SMEs announced Firms across the UK will benefit from a further £200 million of government support to ensure that innovative British firms can access the finance they need to grow. The Exchequer Secretary, Robert Jenrick, marked the launch of the new funding that will be made available to innovative businesses through funds supported by the British Business Bank. He said Ministers were determined to make the UK the best place in the world to start and grow a business. This type of funding has traditionally been sought by fast-growing firms in the science and technology sectors. As the UK leaves the EU and the relationship with the European Investment Fund changes, the government remains committed to ensuring that innovative firms can access the finance they need to grow. The British Business Bank makes finance markets for smaller businesses work more effectively, allowing such firms to prosper and grow – therefore boosting the UK economy. Dan Jarvis © Shutterstock /REDPIXEL.PL © Channel 4 06-09.qxp_Layout 1 08/05/2019 12:03 Page 2TOWER FIELD SERVICES Cat Tech Tower Field Services offers bespoke mechanical services to oil refinery and petrochemical plants all around the world. Our team has vast experience in overseeing and undertaking the installation of all types of Tower internals. Our Tower tray, packing and other internals installation services has deep roots, with several of the senior team at Cat Tech being involved in the founding of the Cana-Tex organisation. Since 1971, Cana-Tex had been the premier global Tower speciality contractor; performing Tower maintenance and plant turnaround projects around the world. These origins, with the addition of new team members, make Cat Tech Tower Field services a global operation which is both cost effective and technically experienced. We strive to create new ways to make your Tower work safer, faster and more productive and that can make very good things happen for your business. We thrive on exceeding our clients expectations and understand the need for upfront communication in relation to timescales and costs. No-one likes surprises in this industry and we ensure that everything is done, from pre-job planning, on site activities to post job reporting in a manner which allows our customers to concentrate on their core business. Let us show you what we can do. We work hard to maintain an industry reputation for safety, speed and dependability. Ours crews have been trained by us, this allows us to staff a project with the proven skills necessary to produce customer satisfaction. It is our intention to demonstrate the benefit of utilising Cat Tech for all of your Tower work. The benefits of engaging Cat Tech are: l Experienced Tower specialists. l Proven track record. l Ability to supply spares and replacements. l Spade to Spade service. l Revamps or modifications to Towers / Internals. l Inspection of Tower internals. l Supervision of external/client labour force. l Detailed inspection reports. l Cleaning of tower internals. l Reactor tray field services. l Turnkey reactor tray field services. At Cat Tech, we continue to create new ways to make Tower work safer, faster and more productive. And that can make very good things happen for your business. Contact us for further information. Our well established sales team have a wealth of experience. We take pride on ensuring all enquires are dealt with quickly and efficiently. UK: Cat Tech (Europe) Ltd., 1 South Park Road, South Park Industrial Estate, Scunthorpe, North Lincolnshire, DN17 2BY UK Phone: +44 (0) 1724 871747 Fax: + 44 (0) 1724 861928 Bulgaria: Cat Tech Services (South Eastern Europe) Ltd., Devnia, Varna District, Povelyanovo, 20 Droujba Str, R Bulgaria, 9160 Phone: +(35) 9519 92052 Fax: +(35) 9527 46770 China: Cat Tech Services (Shanghai) Ltd., Room 1230 No.1, 58 Nong Huachi Road, Putuo District, Shanghai 20061 CN Phone: +(86) 2152 9175 08 Fax: +(86) 2152 9175 05 Singapore: Cat Tech Asia Pacific Pte. Ltd., 17 Fan Yoong Road, Singapore 629794 Phone: +(65) 6264 6261 Fax: +(65) 6264 6401 South America: Please contact the UK office on +44 1724 871 747 Thailand: Cat Tech Services (Thailand) Ltd., 2/1 Soi Banbon Nuenpayom Road, Maptaphut Sub District, Muang Rayong District, Rayong Province 21150 TH Phone: +(66) 894 064 100 Fax: +(66) 638 692 382 MAKING YOUR PLANT WORK… SMARTER www.cat-tech.com PHOTO: SHUTTERSTOCK.COM/KAWINNINGS 06-09.qxp_Layout 1 08/05/2019 12:03 Page 3www.blmforum.net Business Link 9 NEWS Researchers from the University of Sheffield are set to develop the next generation of offshore wind turbines which, they say, could lead to greener, lower cost electricity generation, as part of a new research hub. The University has been named as the academic partner for the Powertrain Research Hub (PTRH), which is part of the Offshore Renewable Energy Catapult (ORE) – launched by the UK government in 2013 as part of a network of catapults in high growth industries. Focusing on offshore wind turbine powertrains – the gearbox and generator that enable turbines to generate electricity – the new hub is aiming to improve the operation, reliability and performance of wind turbines. The University is renowned for its expertise in the fields of electrical machines, power electronics, controls and energy conversion and storage and will contribute a minimum of £1.7 million to the project over five years. CMA blocks Sainsbury’s/Asda merger The Competition and Markets Authority (CMA) found that UK shoppers and motorists would be worse off if Sainsbury’s and Asda merged, due to expected price rises, reductions in the quality and range of products available, or a poorer overall shopping experience. Following an in-depth investigation, a group of independent CMA panel members concluded that the deal would result in a substantial lessening of competition at both a national and local level for people shopping in supermarkets. This would mean shoppers across the UK would be affected, not just in the areas where Sainsbury’s and Asda stores overlap. “Following our in-depth investigation, we have found this deal would lead to increased prices, reduced quality and choice of products, or a poorer shopping experience for all of their UK shoppers,” said Stuart McIntosh, chair of the inquiry group. “We have concluded that there is no effective way of addressing our concerns, other than to block the merger.” © Shutterstock/Max Topchii Sheffield Uni researchers to develop next-gen wind turbines LANGLEYS SOLICITORS Don’t fear your contracts, read them! Most of us click to accept terms and conditions without a second thought, but reading and understanding your contract is the only way to ensure you get a good deal. People routinely neglect to read their contracts – solicitors included. We click to accept the terms and conditions, despite the fact that there may be terms in there we would actually quite like to know about and object to. There have been laws brought in to reduce the use of legalese in contracts, but these seem to have done little to prevent it. By reading and understanding your contracts you will get better deals under them. Only you know what you really want the contract to say. If you can’t read your contract, there is something wrong with it. It is likely to represent a worse deal than the one you would have made had you understood everything in it. If you are a business, you should really know about the Unfair Contract Terms Act 1977 and its ‘reasonableness test’, and understand your ‘limitation of liability’ clause, being the clause that defines your liability for breach of contract and negligence. You can give your solicitor a steer on what you think is reasonable here. Most of us click to accept terms and conditions without a second thought but reading and understanding your contract is the only way to ensure you get a good deal. There will be no excuses for not preparing for Brexit, so if you think you might be affected by it, change your contracts now. You should also understand indemnities. If you feel unsure about any of the terminology, like ‘indemnifies’, a solicitor can explain it to you, and it will all become clear! Check your contract describes what you are going to do fully and accurately. There will be a risk of scope creep if it doesn’t. There is a skill in drafting a contract which people are able to read and understand. A good contract stands out to the contracts solicitor – a bad one really jars. It has clauses in the wrong order, unnecessary words, unenforceable clauses, bits missing, and important statements buried where no-one will ever find them. A well-crafted contract is one which has flow, reads easily (within reason) and is clear. The clearer, the better, as ambiguity means scope for argument. Each sentence should only convey one idea. Punctuation should be used as much as possible, although with great care. Ordinary language should be used. Defined terms should be kept to a minimum. The ‘background’ section at the top, which is not legally binding, should describe the contract in layman’s terms, and should be as long as necessary to give the reader an overview of what the deal is. You will find that a customer is more willing to sign a contract they understand. Now is a good time to review any contract which may be affected by Brexit. There will be no excuses for not preparing for Brexit, so if you think you might be affected by it, change your contracts now, rather than waiting and being in breach. If you would like any of your contractual documents reviewing, contact Fiona Kingscott, fiona.kingscott@langleys.com or Luke Rees, luke.rees@langleys.com at Langleys Solcitors 06-09.qxp_Layout 1 08/05/2019 12:04 Page 4Next >