Late, over budget, and not exactly rapid, but this week the first services begin on the £30m Sheffield to Rotherham Bus Rapid Transit (BRT) scheme.
The Northern route of the scheme aims to improve the links between Rotherham and Sheffield passing Meadowhall, the Lower Don Valley and Templeborough. With buses running every ten minutes, it aims help to foster economic growth along the corridor by helping people access jobs and opportunities.
The new high quality X1 Steel Link service, operated by First Bus, replaces the 69 service and will run between Sheffield – Meadowhall – Rotherham – Maltby.
18 high spec vehicles will operate on the route, all fitted with leather seats, USB charging points and dedicated and eye catching bespoke branding. Customers will also shortly benefit from the introduction of free on board wi-fi.
The new vehicles are Department for Transport approved "low carbon certified" and fitted with the latest Euro VI engines, which produce 95% less oxides of nitrogen (NOx) emissions which will help improve air quality across the route.
Advertisement The main feature of the BRT scheme is a £20m, alternative, all transport route which bypasses the congested M1 junction 34 South by providing a new section of highway beneath the Tinsley Viaduct.
In 2014, the scheme was facing the prospect of a 12 month delay and a near £8m cost increase due to "significant ground condition issues" at Tinsley.
Initially programmed to start running in September 2015, the bid included a high quality, limited stop bus service is to provide faster, more frequent connections through the Lower Don Valley, reducing the snarl ups which occur at the busy junction of the M1. It is also expected to help unlock the redevelopment potential of the area, which is being restricted by the traffic problems on the present road system.
Cllr. Denise Lelliott, cabinet member for jobs and the local economy at Rotherham Council (pictured, second right), said: "The X1 Steel Link will give residents of Maltby and Wickersley a direct and frequent service to Rotherham, Meadowhall and Sheffield. Great value fares and high quality buses will offer an alternative to the car for Rotherham residents."
Tom Finnegan-Smith, head of strategic transport and infrastructure at Sheffield City Council (pictured, second left), added: "It has been a real partnership effort to introduce the X1 Steel Link. The service offers a genuine alternative for car users, providing quick, reliable journey times and the latest technology so people can work and be comfortable while they travel. All this will be at a lower cost compared to taking the equivalent journey by car. This forms part of our longer term plans to proactively encourage people to use sustainable forms of transport. This has a number of benefits including reducing congestion, improving air quality and journey times which is good for the local economy."
The BRT scheme was expected to reduce journey times between Rotherham and Sheffield to 20 minutes, utilising the Tinsley Link, limited stops and bus priority measures. However, the X1 will still take around 40 minutes, taking in Meadowhall Interchange that was avoided in the BRT route developed early in the project.
The scheme is being delivered in partnership by SYPTE, Rotherham Metropolitan Borough Council and Sheffield City Council.
Funding has come from the Government, councils, the local enterprise partnership's Growing Place Fund and Local Growth Fund, and via the European Union's European Regional Development Fund (ERDF), local developers such as British Land, and the South Yorkshire Local Transport Plan.
When bidding for funding, backers stated that it will help to unlock 4,000 jobs in the Lower Don Valley linked to schemes such as the River Don District, the Outokumpu site and areas of Templeborough in Rotherham. It includes areas benefiting from being in the Sheffield City Region Enterprise Zone.
The scheme is expected to generate an estimated £200m for the local economy each year, increase public transport patronage by 7,500 passengers per day, and reduce carbon emissions by 6,320 tonnes over 60 years.
A start date has yet to be announced for the delayed £60m pilot project to run tram-train vehicles on both rail and tram networks between Rotherham and Sheffield.
Proposals from Tata Steel to amend pension scheme benefits in order to avoid entering the Pension Protection Fund (PPF) now appear as if they would be difficult to deliver.
Earlier this year, the Government launched a consultation on changes to the British Steel Pension Scheme (BSPS) - the huge pension liability with a £700m deficit that could be a deal-breaker for prospective buyers of Tata Steel's UK assets.
The consultation follows intense discussions between Tata Steel, the UK government, the pension scheme trustees and regulators to find the best option for members of the scheme.
At the end of March, the Indian-owned steelmaker concluded that it is exploring all options for portfolio restructuring including the potential sale of Tata Steel UK, in whole or in parts. Following a board meeting in July, the steelmaker decided on a separate process for the potential sale of its Speciality Steels business, which until recently employed over 2,000 people at sites like Aldwarke in Rotherham and Stocksbridge in Sheffield.
Last week representatives of Community, Unite and GMB met with Tata Steel management in London to discuss the ongoing situation with the BSPS.
Advertisement The consultation was seen as the first step in a potential unprecedented change to regulations which would enable the scheme to modify its benefits enabling it become self-sustaining and remain outside of the Pension Protection Fund (PPF) - the safety net that provides compensation to members of eligible defined benefit pension schemes when things go wrong.
The PPF updated its guidance last month, working to ensure employers do not "dump" schemes in the PPF.
The unions now say that during the meeting, Tata made it clear that the previous proposals to amend scheme benefits in order to avoid entering the PPF now appeared as if they would be difficult to deliver.
A joint statement said: "This leaves the BSPS facing the very real possibility of being dumped entirely into the PPF as part of Tata's plan to divest its UK assets.
"All trade unions involved have previously made it clear that such an outcome would be unacceptable.
"Tata management expressed a desire to explore other options for the BSPS, however the unions are clear that no such further discussions can take place until Tata clearly sets out its long term commitment to the UK industry.
"It has been over five months since Tata first announced its desire to sell its UK operations and yet steelworkers and their families are even less clear about their future now.
"The delayed sales process, the prospect of Tata remaining and now the proposed merger with ThyssenKrupp have all served to create uncertainty for Tata's loyal workforce and the wider industry.
"The unions made it clear that through these actions Tata has lost the trust and confidence of the workforce and therefore the company must clearly and urgently set out its intentions and its plans to act as either a responsible owner or seller."
Mynt Recruitment, a recruitment business headquartered in York, has opened a new office in Rotherham having agreed a £750,000 combined invoice finance facility from Aldermore, the specialist lender and savings bank.
The business has been supported by funding from Aldermore since it was formed and previous facilities had already enabled the company to expand and open a second office in Hull. The new funding has been used to support the recent opening a third office in the Moorgate area of Rotherham.
Mynt Recruitment, which stands for "Meeting Your Needs Today", employs 13 members of staff across its branches and some 250-300 temporary staff on a wide range of client assignments across the Yorkshire and Humberside region.
The business was established in 2004 as a part of a national franchise and later became independent in 2009. It sources staff for engineering, manufacturing, production, logistics and warehousing roles within the industrial sectors, as well as administration, legal, finance and sales positions for the commercial sectors.
Advertisement John Stanton, chairman at Mynt Recruitment, said: "We've worked with Aldermore since we started the business, and the support they have provided has been a key driver towards our success. Expanding into different sectors and regions is crucial in the recruitment business as it helps to broaden both our client base and the number of candidates we work with so that we are able to match the right person with the right job and provide a better service for all parties.
"Record growth during these last three years has seen our brand go from strength to strength, but the new funding from Aldermore will enable us to continue to expand our range."
St John Emms, relationship manager at Aldermore Invoice Finance, added: "Mynt Recruitment is an ambitious business which has gone from strength to strength since becoming independent. We're pleased to have already been able to play a part in helping the company to grow and expand into new sectors, and the additional funding we have now provided will allow them to continue their positive trajectory into the future."
The two shortlisted bidders for the speciality steel business are being given access to due diligence and management meetings, Tata Steel confirms.
At the end of March, the Indian-owned steelmaker concluded that it was exploring all options for portfolio restructuring including the potential sale of Tata Steel UK, in whole or in parts. Following a board meeting in July, the steelmaker decided on a separate process for the potential sale of its Speciality Steels business, which until recently employed over 2,000 people at sites like Aldwarke in Rotherham and Stocksbridge in Sheffield.
Tata confirmed the progress of its divestment of the Specialty Steel business and the pipe mills in Hartlepool in its financial results for the quarter to June 30.
The results showed that the group lost £370m when it sold its European long products division at Scunthorpe to Greybull Capital for a nominal sum. A deal for Speciality Steels is expected to raise around £100m.
EBITDA (Earnings before taxes) at Tata's European operations was a profit of around £96m, up from £65m in the previous quarter. Tata put this down to the depreciation of the Pound, short term improvements in steel prices, impact of restructuring undertaken earlier in the UK and stronger performance in Netherlands.
Advertisement Koushik Chatterjee, Group Executive Director (Finance and Corporate) at Tata Steel, said: "In Europe, the positive impact of the structural restructuring undertaken in the UK in the last six months along with a weaker Pound, cost reduction measures and an effective hedging strategy on raw material imports have enabled the business to report better performance for the quarter.
"With the completion of the Long Products divestment, Tata Steel Europe will focus on being a premium strip player and the management and employees of Tata Steel Europe continues to strive to structurally improve the business performance. The strategy for exploring further strategic consolidation in Europe is a step in that direction."
A potential joint venture with Germany's Thyssenkrupp, which would see the strip products businesses combined, has been discussed.
Hans Fischer, MD & CEO of Tata Steel in Europe, said: "We are making progress as a result of business improvement initiatives and the restructuring announced last year. Our differentiation strategy is also starting to create more robustness in terms of higher-value sales, and we sold our highest percentage of differentiated products in June. These factors, combined with more favourable market and currency tail winds, led to an improving quarterly EBITDA result.
"Modest forecasted growth in European steel demand this year is still being undermined by increased imports which is leading to continued declines in domestic deliveries. That's why it's vital we continue every effort to improve our competitiveness."
Speciality Steels is not considered a downstream business linked to Port Talbot and Tata Steel's strip products business. It produces around 225,000 tonnes of steel, comprising around 3% of Tata Steel Europe's total output. It has a £275m turnover and is Tata Steel Europe's only Electric Arc Furnace (EAF) based business, specialising in carbon, alloy and stainless steels for demanding applications like aerospace, motorsports and oil and gas. Until recently it employed over 2,000 people at sites like Aldwarke in Rotherham and Stocksbridge in Sheffield.
Investment in South Yorkshire has been key to the company's differentiated products strategy where the focus is on quality over quantity.
The group also used the results to confirm discussions are currently ongoing regarding the UK pension issue. Proposals from Tata Steel to amend pension scheme benefits in order to avoid entering the Pension Protection Fund (PPF) now appear as if they would be difficult to deliver. The group said: "Tata Steel UK is in engagement with all relevant stakeholders including the UK Government, the Trustee and the unions on the exposure to pensions of the UK business."
Having delivered record sales growth in the last financial year, Rotherham-based fresh meat and food to go retailer, Crawshaw Group PLC has reported a further reduction in like for like sales since then.
The AIM-listed Hellaby firm is undergoing growth plans that will see it invest £200m, opening 200 stores and creating 2,500 jobs.
At the firm's AGM on in June it was announced that the Group had, during the prior couple of weeks, experienced some suppressed footfall patterns caused by a combination of the international football, adverse weather and Brexit. In a trading update, the group said that these factors persisted through to the end of the half year period, resulting in a further reduction in like for like sales for the half year, although this was partly mitigated again by a further strengthening of gross margin.
Crawshaws described the year ending January 31 2016 as a "transformative year" with a new management team and the appropriate infrastructure in place to deliver the rapid growth plan.
Advertisement Reporting its full year results, Crawshaws saw turnover increase by 51% to £37.1m compared to the £24.6m in the previous year.
Conditions have remained difficult in the weeks since the period end and supermarkets have very recently launched some aggressive meat promotions.
Crawshaw's share price dropped by almost a half on the news and the company said that it was reacting to ensure it maintains the value-led approach that has proved successful in the past. This includes introducing more local choice and lower price point packs. The retailer has been reducing the number of price-led promotions and drive higher margin lines.
With the success of its out of town factory store at Hellaby, the group said it was reviewing its store roll out strategy with a view to adding more of these types of openings.
The trading update concluded: "We are confident our actions can restore sales momentum, and we will be prepared to invest in margin to drive sales and sharpen our value proposition. We are disappointed with current trading and clearly the outlook for the full year will depend upon the result of our actions, upon trading during the important peak winter and festive season, and upon the timing of our store openings."
Esco Corporation, a US manufacturer in the mining, construction and industrial sectors, has vacated the Rotherham premises it acquired in 2011.
At the time of acquisition, Hydra Mining Tools International was one of Rotherham's most profitable businesses. The company, and its predecessor, Hall & Pickles Tool Company, have been associated with mining activities since the earliest days of mechanisation. Following the collapse of the British coal industry, the company was bought out of administration and refocused on supplying its specialist cutting tools to China.
The 45,165 sq ft premises at Wortley Road near Masbrough have now been made available for let, with agents, Knight Frank advertising the four office and industrial units used by Esco Hydra, as a whole or in part.
Advertisement Everything from CNC machines to office furniture has been put up for sale later this month with specialist auctioneers, Peaker Pattinson by the company "due to the re-organisation of its manufacturing facilities."
In its latest accounts submitted earlier this year, Esco Hydra UK said that "in 2015 there have been headwinds that have resulted in a decision to consolidate the operations in one location." The UK subsidiary has since changed its registered address to the Esco site at Ings Lane in nearby Doncaster.
At the time of acquisition, 130 staff moved over from Hydra Mining Tools to the Esco Corporation. In the year previous, international sales were at an impressive £8.7m.
Esco, which celebrated its 100th anniversary in 2013, has been affected by the global downturn and has seen global demand for mining products decline since its peak in 2012. It has been reducing foundry capacity ever since - its site at Guisboroough, Teeside closed in 2014 and it announced the closure of its Canadian and Australian sites in 2015.
At the end of 2015, the firm was forced to announce plans for the future closure of its main plant in Portland, Oregan.
SWP, the AIM-listed group that operates the Plasflow business in Rotherham, is to go back into private ownership after the board accepted an offer worth £18.3m from the management team.
Based in Cambridgeshire, SWP Group Plc designs, manufactures and installs a range of industrial engineered products and systems, serving international markets in the oil, gas and petrochemical markets as well as in construction and water utilities.
Its Plasflow subsidiary, based at Canklow Meadows, offers specialist services in the fabrication of large diameter plastic pipe work and supplies the UK civil nuclear sector. It delivers the fabrication needs of Fullflow, another SWP subsidiary based in Sheffield that specialises in rainwater management and syphonic drainage systems.
Friars 716 Ltd, a new company established by SWP's management team, has made an offer to purchase SWP Group which will see shareholders receive 9p for each share, valuing the business at about £18.3m.
Advertisement An update to the stock exchange said: "Friars intends, upon the Offer becoming wholly unconditional and subject to Friars then owning 75% of the SWP Shares, to take the necessary actions to cancel the admission to trading on AIM of the SWP Shares and re-register SWP as a private limited company."
For the year ended June 30 2015, SWP made a profit after tax, but before discontinued activities of £1.7m and a loss of £0.4m after discontinued activities.
Relying on projects, Plasflow has performed well in recent years but has suffered recently due to the absence of any meaningful orders from the nuclear sector where the company is a respected player in providing pipe solutions for most of the major nuclear plants in operation throughout the UK.
The company was programmed to commence substantial works for EDF but delays to its massive nuclear investment at Hinkley Point have had knock on effects. EDF, unilaterally deferred, for up to two years, a major outage project at one of their UK plants where Plasflow was scheduled to play a prominent role.
Alan Walker, chairman of Friars, said: "SWP is too small to benefit from maintaining a public quotation and AIM has not provided SWP's shareholders with sufficient liquidity, with some feeling trapped. As a private company, SWP will be better able to weather the feast and famine nature associated with transacting a small number of large projects. I therefore believe that the Offer is in the best interests of shareholders as a whole and I look forward with great optimism to working with all stakeholders to continue the successful development of the business."
Alan Smith, independent director at SWP. added: "I am pleased to recommend this offer to shareholders of SWP. The principal operating companies of SWP, being Fullflow and Ulva, are profitable and, in my opinion, well regarded by their peers and customers. However, it is my opinion that the market capitalisation of SWP does not reflect either its financial progress or the continued efforts of my colleagues and that SWP's public quotation is no longer beneficial to its stakeholders, particularly given the very low levels of liquidity in the Company's shares. The offer from Friars gives shareholders a chance to realise value from their investment at a significant premium to the recent share price, while safeguarding the existing employment rights of SWP employees."
Rotherham-based retailer, Fishing Republic has increased revenues and profit margins, prompting the board to accelerate investment in future growth.
The placing of ten million new shares at 15p per share in June last year raised £1.5m for the Eastwood company that is already one of the largest retailers of fishing tackle in the UK by floorspace. A share placing this year raised a further £3.75m.
Floating on AIM, the directors believe that Fishing Republic is the only participant in the market looking to act as a consolidator, snapping up smaller, often family-run businesses.
For the six months ended June 30 2016, the group reported that revenue increased to £2.5m, up by 34% from the £1.87m in the same six months of 2015. Profit before tax was £157,000 and compares to a loss of £150,000 reported last year after exceptional costs of £299,000.
During the period, Fishing Republic expanded its store network, opening two new stores, in South Birmingham and Crewe, and relocated its existing Hull store to a significantly larger site. The first acquisition, Cotswold Angling in Swindon - the first presence in the South of England, was integrated into the group and after the period end the company acquired Fantackletastic, a fishing tackle store in Lincoln, taking the total number of outlets to 11.
The Company generated a gross profit of £1.25m (2015: £814,867), an increase of 54%, year-on-year. This increase benefited from an uplift in gross margin to 50% from 44% in the comparative period last year. Sales from its own websites increased 153% year-on-year (from a low base) although, reflecting the shift of of focus to its own website sales, total online sales decreased by 9% year-on-year.
Advertisement Given the strong balance sheet position, the group has decided to rebase its profit forecasts for the current financial year to allow it to invest for growth in both its store network and online.
James Newman, chairman of Fishing Republic, said: "Since joining AIM in June 2015, we have made significant progress in working towards our ambition of becoming a dominant player in the highly fragmented fishing tackle market. These results show the Group's continuing encouraging progress. The additional funds raised in June support ongoing growth and we are pleased to welcome new shareholders including Bill Currie, Iain McDonald and Sir Terry Leahy.
"With the planned opening of two further stores before the year end, additional investment in our recent acquisition and the increase in resource across key areas, including multi-channel, the Group's cost base will rise significantly in the current financial year. This, coupled with lower than expected sales during the latter part of the summer season, means our results for this financial year are now anticipated to be below current market expectations."
Steve Gross, chief executive of Fishing republic (pictured), added: "Following the successful placing in June, we are now accelerating investment across the business, including multi-channel. We expect the benefits of this investment programme to come through in 2017. The Group has a strong balance sheet and we are confident about growth prospects and will continue to consider further acquisitions and selective store openings."
Rotherham-based fresh meat and food to go retailer, Crawshaw Group PLC has confirmed a reduction in like for like sales but expansion will continue.
The AIM-listed Hellaby firm is undergoing growth plans that will see it invest £200m, opening 200 stores and creating 2,500 jobs. As new stores opened, standardised offers and price points were also introduced into existing stores but the management has now admitted that they "didn't resonate as well with customers as we thought."
In the six months ended July 31 2016, total revenue for the group increased by 29% to £21.6m from the £16.7m reported in 2015. Like-for-like sales however, dropped by 4.4%. Gross profit increased by 31% to £9.8m and EBITDA (earnings before taxes) was £0.3m (2015: £0.5m) with increased operating costs offsetting sales and margin growth.
Crawshaws described the year ending January 31 2016 as a "transformative year" with a new management team and the appropriate infrastructure in place to deliver the rapid growth plan. The following six month saw phase one of the rollout programme complete with the delivery of nine new trading stores across the period. The total number of stores is now 49.
Advertisement The group reported record sales for the previous year but the update to the stock exchange explained that sales had dropped since. Standardised offers and prices were introduced and initial results were encouraging, with strong like-for-like sales and margin through the middle of last financial year. With customer loyalty initially translating into additional sales through bigger, better value packs at higher price points in the first instance, this gave way to waning loyalty and lower sales through the first half of this year.
Sales in the the first seven weeks of the second half of the year have continued to be lower, with like-for-like sales tracking at -15.8%.
Noel Collett, CEO at Crawshaw Group, said: "We have now identified the cause of this sales underperformance by spending a great deal of time in stores with our customers and colleagues. The feedback from these visits was relatively straightforward. Our customers want to see some of the old fresh meat pack sizes, price points and offers that were previously on sale in their specific store.
"As a result, we have made immediate changes to give store managers flexibility to re-introduce local ranging products which has been positively received. We have also significantly increased the number and depth of price-led promotions on fresh meat with managers being given the flexibility to choose the promotions that resonate most with their customers."
Expansion will still continue but the board has taken the decision to open up to 12 stores this year as opposed to the 15 originally planned. The group has found success with its new factory shop location and is planning the trial of up to two further factory shops this year.
Collett concluded: "We are acting quickly to restore sales momentum and feel that this can be achieved in readiness for the important winter and festive season.
"Management focus over the next months will be on supporting stores to deliver for our customers and restore sales momentum in like-for-like and newly opened stores.
"We believe our actions can restore sales momentum, and we will invest in margin to sharpen our value proposition to win back customers and drive sales. We are disappointed with current trading and clearly the outlook for the full year will depend on the result of our actions, upon trading during the important winter and festive season, and upon the timing of our store openings. At this stage, however, we expect our full year profit to be materially lower than our previous expectations."
Rotherham-based retailer, Maplin has again been named in the Sunday Times Grant Thornton Top Track 250 league table that ranks the UK's private mid-market growth companies with the biggest sales.
The league table is the sister publication of Top Track 100, which identifies Britain's 100 private companies with the biggest sales. Top Track 250 ranks the 250 next biggest private companies, which qualify for the league table provided either sales or operating profits have increased by at least 10% in their latest available accounts. Sponsored by Grant Thornton, it is compiled by Fast Track, the Oxford-based networking events and research company, which champions the UK's top-performing private companies and entrepreneurs.
Manvers-based Maplin sells a range of products to tech-savvy hobbyists as well as general consumers and now operates from 217 stores. The firm was sold for £85m to new owners, Rutland Partners in 2014.
The company has climbed the rankings from 111th to 84th with sales of £237m for the year ending March 2015 - its strongest sales growth since 2008. Underlying EBITDA (earnings before taxes) in the year was flat at £18.3m.
Advertisement Launched by two technology enthusiasts in 1972 who were frustrated by the lack of good quality electronics components, Maplin Electronics became the experts' choice, with a reputation for the best product range and expertise. In 2008 they moved to a 220,000 sq ft state of the art distribution centre and head office at Brookfields Park in Rotherham.
In the 12 annual league table 26 companies headquartered in Yorkshire (compared to 25 last year) join the likes of Arsenal, Barbour, Dr Martens, Nando's, Skyscanner and Wagamama. The Yorkshire companies increased combined sales 14% to £5.8bn and operating profits 36% to £416m, and they employ more than 43,000 people.
Andy Wood, partner at Grant Thornton UK LLP, the title sponsor of the league table, said: "In the wake of the EU referendum it is more important than ever that businesses, and the public and the third sectors work together to help the UK to build on its strengths and ensure that the economy continues to grow. I am heartened to see how these businesses are embracing a collaborative approach to drive prosperity throughout the UK and wider society."
The Original Marble & Granite Co. has ceased to trade resulting in the closure of its Rotherham site and the loss of a number of jobs.
The firm was established in 2010 to supply stone surfaces for domestic and commercial customers and had premises in Hoddesdon, Hertfordshire and Ferham in Rotherham. Just a year later, the business and assets where sold in a pre-pack administration deal to a new company with different directors and shareholders - OMG Jewellery For Your Kitchen Limited.
Now the OMG company has ceased to trade after administrators were brought in and a takeover deal fell through.
The company specialised in the production, fabrication and installation of granite and marble kitchen workshops, supplying kitchen manufacturers, retailers and individuals throughout the UK.
The company traded profitably and reported profits for the year ending June 30 2015 at £129,000 from a turnover of £4.5m. Shortly after this, the Hoddesdon factory experienced power shortage issues and output was cut by 50% for three months. With machines on shut down, the company could not commit to projects. At the same time a major supplier announced that it had purchased a company to bring production in house and orders stopped.
Advertisement Cashflow issues meant that credit insurance was withdrawn which impacted supplier credit terms leading to a number of suppliers threatening legal action. Corporate finance advisors at Duff & Phelps were brought in during April 2016 to review the business.
A notice to appoint administrators was filed and prospective purchasers of the business were contacted in a bid to save the operations. 17 bidders expressed an interest but when an offer came in for certain assets it became clear that the purchaser did not want to become liable for the TUPE costs - the rules that protect employees' rights when the organisation or service they work for transfers to a new employer.
In July, one of OMG's creditors filed a winding up order, which forces an insolvent company into compulsory liquidation, in the hope of securing money owed. Following this, administrators were duly appointed and concluded that the business would cease to trade as it had insufficient money to pay suppliers or meet overheads and a sale had already been ruled out.
All 65 employees across the two sites were made redundant and in August, Charterfields hosted an auction for 1,000 lots, including plant and equipment, fork lift trucks, office furniture and motor vehicles.
The 20,000 sq ft Rotherham premises are being advertised for sale / to let by agents, LSH.
The impact of the UK's vote to leave the European Union has had a mixed impact on regional business with manufacturing firms showing a more positive outlook than services according to the Sheffield City Region Quarterly Economic Survey.
The results – based on nearly 400 responses from businesses across the region – give a snapshot of how the regional economy performed during the three months post EU Referendum. They will be used to better inform local, regional and national government and policy makers on issues of concern and to help shape support structures available to the local business community.
Key highlights from the survey include:
- Both the service and manufacturing sectors expect to see increased orders, turnover, prices and profitability, although the balance of these is generally lower than last quarter with the exception of prices, which are expected to rise. This possibly reflects a potential rise in costs associated with the devaluation of the pound.
- Over 50% of respondents indicated that the referendum results had not influenced their investment decisions, perhaps indicating that this had already been factored into decisions. However a significant minority indicated it had some influence.
- The highest priority issues for the Government and Bank of England to address were the rules for trading with EU countries and the future value of the pound. The least important issues were the current and future immigration status of EU employees.
-There was an even split of businesses who believe Article 50 should be either triggered now, in six months or in 24 months time.
-The majority of businesses said the EU referendum has had no impact on their recruitment decisions. Nearly 60% of respondents indicated a growth in business as the driver for increased workforce.
-Whilst for both sectors, apprenticeships are the preferred route for recruitment over graduate internships and short term work placements, businesses in the city region, are in the main, ready for the apprenticeship levy, although a significant proportion are not.
- Over Q3, the positive balance of sales has declined in international trade and export for both manufacturing and service businesses, however manufacturing still shows a positive balance.
- Looking forward, manufacturing exporters have seen, on balance, a rise in orders, perhaps reflecting the fall in the value of the pound and hence increased price competitiveness in export markets.
Advertisement The results were presented at the Sheffield City Region QES Breakfast. Sir Nigel Knowles, Chairman of Sheffield City Region LEP, said: "The Quarterly Economic Survey plays an important part in shaping our policy and support for local businesses. I believe that hard data, contemporary commentary, case studies and testimonials should influence strategy and inform the Sheffield City Region's approach to local, regional and national decision makers and foreign direct investors.
"Shaping policy, ensuring that businesses can compete domestically, globally and securing prosperity and a good return for the local community are core to our mandate. If we know the challenges, issues and opportunities, we can work as partners to deliver and be accountable for doing so."
The survey – run by the Sheffield City Region Local Enterprise Partnership (LEP), four Chambers of Commerce and Sheffield University Management School, and sponsored by RBS South Yorkshire & North Derbyshire – is part of a national survey coordinated by the British Chambers of Commerce to act as an economic indicator for the Bank of England and to advise Whitehall.
The large bus depot operated by First in Rotherham will close under new proposals, with staff relocating within South Yorkshire and 20 jobs now "at risk."
In August engineers in Rotherham were awarded a "Wrench" Award from First after being recognised as one of the best engineering depots across the UK but now the bus operator has announced proposals to relocate employees to Sheffield and Doncaster, "as part of a move to safeguard jobs in the long term and continue to deliver an efficient, effective and sustainable service for its customers."
First said in a statement that the Midland Road building at Masbrough is becoming increasingly uneconomical and that the proposed move will save costs and protect jobs in the long term.
A notice to staff, seen by Rothbiz, shows that First believes that the site is too large for current operational needs. Under the proposals, the same drivers will operate the Rotherham services, but will do so from the Olive Grove depot in Sheffield.
A small number of potential redundancies have been identified, mainly in engineering supervision and a small number of skilled roles.
Advertisement Kevin Belfield, managing director of First South Yorkshire, said: "Our decision to relocate will not impact on our customers – they should continue to expect high quality and reliable bus services. We will continue to support our Drivers to make bus travel more attractive and grow passenger numbers, while also helping safeguard jobs in the long term.
"Our Rotherham colleagues will relocate primarily to Sheffield Depot. They have done a terrific job operating from Rotherham, and we will ensure that they are fully supported as they relocate.
"We have begun consulting with our employees and trade unions to ensure their views are considered as part of this process. Less than 20 positions are "at risk" of redundancy. However, we will do everything we can to assist those affected, including supporting anyone who would wish to transfer to other First Bus operations where opportunities exist."
If the proposal is implemented, First South Yorkshire will relocate colleagues from Rotherham to Sheffield and Doncaster, by February 2017.
Tata Steel Europe is one of 58 companies in the European steel industry that have addressed EU leaders with a clear message: "Make the right choices to ensure that our sector and its value chains flourish, investment continues, and the jobs of the men and women who work in our sector are sustained."
The UK assets were put up for sale by the Indian conglomerate earlier this year but the steelmaker decided on a separate process for the potential sale of its Speciality Steels business, which until recently employed over 2,000 people at sites like Aldwarke in Rotherham and Stocksbridge in Sheffield.
Since Tata's announcement in March, there has been rising steel prices, a turnaround at Port Talbot, announcements from the Government on support for the industry, consultation on the pension scheme, a fall in the price of the pound and the EU referendum.
The open letter highlights the steel industry's challenges, and calls on EU policy makers to develop more effective, faster measures to re-establish fair trade, to align with the US on the Market Economy Status of China, and build an EU ETS that creates no cost burden beyond economic and technological feasibility.
Factors affecting the UK steel industry include energy, business rates, procurement and the effect of Chinese dumping on the European market - the main market for UK steel businesses.
Advertisement The call from the industry comes ahead of the European Council summit this week where EU leaders will discuss the modernisation of Europe's Trade Defence Instruments, which the European steel industry has consistently pushed for.
The steelmakers are calling for support on a number of issues "that could make or break our industry." These also include revised EU anti-dumping regulations and changes to the EU Emissions Trading System that they say will just see steel production move elsewhere if EU steelmakers are landed with more costs.
The UK Government has so far been against changes to the "Lesser Duty Rule" despite its removal potentially protecting European steel against China dumping steel into the EU. Tariffs for Chinese steel currently stand up to 73.7% in the EU but at more than 500% in the USA.
Earlier this month, Chancellor Philip Hammond recommitted the Government to backing Market Economy Status for China, a move which could flood market with more cheap, subsidised Chinese steel.
Yorkshire and the Humber has the longest running small businesses in Britain according to a poll conducted by Rotherham-based online printer instantprint.
The region's small business owners have on average owned their companies for 112.87 months, a period that dwarfs the lifespan of the rest of the nation’s SMEs.
At over nine years, Yorkshire's SMEs average period of life is more than double the current existence of small businesses in the South West (44.3 months), London (48.72 months), the North East (50.69 months) and East Anglia (55.88 months). The only part of Britain close to their longevity was Northern Ireland, whose average ownership was 93.07 months.
The area's largest cities companies were polled, with owners in Leeds averaging 124.57 months, those in York listed at 98.95 months of service, and Sheffield’s owners running their businesses for 98.38 months.
Instantprint co-founder, James Kinsella, who founded the company with Adam Carnell in 2009, said: "As a business owner in Yorkshire, this is terrific news. The region really is a breeding ground for small businesses to start up and then establish themselves. Our company has grown tremendously here, and this shows that other entrepreneurs can follow our lead and can be here for the long term."
instantprint is one of the top 100 companies in the UK with the fastest-growing sales. In 2012 the company merged with Templeborough-based point-of-sale printing specialist Bluetree and a move to bigger at Manvers last year have seen staff numbers hit the 200 mark.
AdvertisementRotherham Council uses the survival rate of new businesses as a priority measure to economic growth. 63.1% of new businesses had a survival rate of three years in 2014/15.
The survey also highlighted that one factor that may have assisted the establishment of these SMEs is that their owners have the second longest average working week in the nation. Yorkshire and the Humber entrepreneurs work a standard working day longer over the course of the week than the average 9-5, clocking up 45.56 hours. Of those polled, this was only surpassed by Northern Irish SME owners, who are in the office 49.08 hours a week.
By putting in the long hours, Yorkshire SME owners have had to make sacrifices, with over half of those polled suggesting they've missed valuable time with their family, 40.48% missed time away on holiday, and 47.62% missed out on down-time. This relinquishment of their precious free time, has seen 50% of the region's owners admitting that they are more stressed, but even still, a poll-high 83.33% advised that they would not want to go back to working for someone else.
Kairen Skelley, head of business start-up at Spark, Leeds University's service that offers students guidance, mentorship, and assistance with funding and office space, said: "The area is definitely thriving, we see a growth of 10-15% of start-ups per year, so when we started the target was 20, there were 65 this year.
"The student business people that I work with, live and breathe Yorkshire and that can only be a great thing for the region going forward. They want to stay in Yorkshire, which means the money stays here. Perhaps one of the most important aspects of our programme is that many of these businesses are founded with the hope of long-term success, and this is reflected in the fact that 83% of our start-ups are still going three years after setting up."
Whiteley Read, a Rotherham-based engineering firm has called in the administrators following a global downturn in the oil and gas market.
Based at a custom built facility on the Gateway Industrial Estate at Parkgate, Whiteley Read has been associated with pressure vessels and the process industries since 1937. It manufactures vessels and columns in both ferrous and non ferrous materials up to 200 tonne in weight for many blue chip companies, such as BP, Centrica, Shell, Nexen & GDF.
Joanne Hammond and Gareth Rusling of Begbies Traynor were appointed as joint administrators of Whiteley Read Engineering Ltd on October 7 2016.
It is is expected that the administrators will market the business for sale.
Advertisement As recently as 2013, the company had a turnover of £5.9m, up from the £5.4m reported for 2012 with a profit before tax of £338,000. Abbreviated accounts were filed for 2014 and the previous accounting period was extended from October 2 2015 to March 31 2016.
In 2010, Whiteley Read Engineering provided bespoke pressure vessels, in a £3m deal, for the expansion of the Bouri gas and oil field, the biggest in the Mediterranean.
Last year, the Rotherham facility of Darron SBO closed as part of restructure plans set out by the Schoeller-Bleckmann Group. The firm was hit by "customer restraint in ordering which went hand in hand with persistent pressure on prices" in the oil and gas sector.
This year has seen Australian multinational company, Bradken, close its Rotherham site and selling off its loss making European business operations following a "challenging and demanding" period of trading caused by a downturn in commodity prices and a forced change in behaviour of mining companies.
Also this year, Esco Corporation, a US manufacturer in the mining, construction and industrial sectors, vacated the Rotherham premises it acquired in 2011.
Rotherham-based developer Harworth Group plc, one of the largest property and regeneration companies across the North of England and the Midlands, has acquired a business park for £4.5m as part of its strategy to build its income portfolio and expand its presence in the North West.
A specialist in brownfield regeneration, Harworth is based close to its own flagship development at Waverley. Its extensive portfolio consists of a total of around 22,000 acres across 140 sites. Harworth Group plc was created through the complex restructure of what was UK Coal.
The group has acquired Moorland Gate Business Park in Chorley, Lancashire which is close to its own Logistics North development in Bolton.
Advertisement In a statement to the stock exchange, Harworth said that the freehold purchase represents a Net Initial Yield of 9.53%, with further asset management and development opportunities to be explored.
Tenants include FedEx, LCC, Carillion, Cruise 118, Stage Coach, FDC Holdings and Tyrers. The 10.75 acre site also includes two acres of development land.
Owen Michaelson, chief executive officer at the Harworth Group, said: "Moorland Gate acquisition is Harworth's third major purchase of 2016 and reflects our objective to replenish our portfolio with new sites in the regions in which we already operate. This well-located investment is an excellent fit to our portfolio being a liquid, income-producing asset with further asset management and development opportunities."
It its interim results for the half year ended 30 June 2016, the group reported that revenue from operations rose to £17.4m compared to £4.2m in the first half of 2015. This was largely as a result of forward funding at its Logistics North development. Profit before tax was £7.4m.
With improved bank facilities following the restructure, recent acquisitions include £9m to be part of the Temple Green development, the largest live logistics development in the Leeds City Region. Harworth also acquired Sanderson (Advantage) House in Rotherham for £2.3m. The property adjacent to the Waverley development is now home to the Harworth Group.
PwC Private Businesswoman of the Year 2014, Julie Kenny CBE DL has been speaking about her "four careers" as the multinational professional services network highlights fantastic examples of Yorkshire & North East manufacturing at its best.
PwC's "5 days of makers" features Kenny as she starts a new chapter in her working life. Leaving her Sheffield home at 18, Julie travelled to the opposite end of the country and found a job as a junior secretary in a Cornish law firm. Ten years of part time study led to the second career as a lawyer.
Returning to South Yorkshire, the third career came with a belief in a new security system and in 1986, Julie founded Pyronix in Rotherham.
Based in Hellaby, Pyronix is an award-winning manufacturer with an extensive range of electronic security equipment for intruder alarms. The firm sells around £11m worth of security products to the UK market and new export markets such as Italy, Russia and Poland were identified where the sales success is being replicated.
Kenny was the major share holder and led the growth of the business as chair and chief executive.
Advertisement Julie said: "Between 1986 and 2016, I was committed to growing Pyronix and in the year of the company's 30th anniversary I have sold my company and terminated my third career. At the time I wasn’t looking for an exit, however, the largest global CCTV manufacturer were looking for a European partner and Pyronix fitted their brief. It was becoming increasingly expensive for a high tech SME company to keep up with the rapidly moving innovation in the world.
"Pyronix is an important employer in Rotherham and last year had a £25m turnover, but each year was investing self-generated profits and this was too slow for the speed of innovation needed. I have left Pyronix confident that my 200 employees will continue with the company, a further 40 jobs have been created following the injection of capital from the purchaser and they are looking to increase their geographical foothold in Rotherham.
"It is now almost six months since I sold Pyronix, I have continued a weekly consultancy for the purchasers and truly believed that I would be able to slow down a little – my partner jokes that he will be happy with a 40-hour week and weekends off. There is, however, still so much to be done; there are my various Board positions and I could never rule out another chapter in my working life, maybe the fourth career!"
Kenny is currently a commissioner at Rotherham Council, on the private sector board of the Sheffield City Region Local Enterprise Partnsership and involved with the preservation of Wentworth Woodhouse and a host of other local charities.
Passionate Rotherham businessman, Mark McGrail, talks about how his new bar and bistro venture in the town centre comes at a time when Rotherham is on the cusp of something great.
Rothbiz revealed in September that work was underway on a new bar on Domine Lane where the former public house was sold after an auction with Allsops earlier this year.
The vacant 8,000 sq ft property was previously The Exchange and formerly Yates Wine Lodge. It was given a guide price of £80,000+.
The new owner is Mark McGrail, a successful local businessman who owns SME Environmental Services, the Parkgate firm that provides services from environmental recovery to sensitive reclamation. Mark says that if he hadn't bought the building, another company had plans to demolish it. He is now in the process of restoring the building to its former glory and also hopes to buy other historical properties in the borough.
However, it is not all about preservation – Mark believes Rotherham is on the cusp of something great. The new bar looks out on Forge Island where a new leisure hub is being planned. Rotherham Council is currently in talks to purchase the site with several investors already showing an interest in development opportunities, with demolition of the former Tesco building expected to take place in December.
Born in Rotherham, and leaving school at 13, Mark's first job was helping to dismantle the old Sheffield infirmary. Now having built up a successful business he says he wants to give something back to Rotherham with his dream to restore buildings which have a focal point to Rotherham's great past.
Advertisement The name 1915 is a nod to Rotherham's General Post Office which occupied the site and the building next door at that time. The new bar was once an extension to the main Post Office. Mark is passionate about the building and its refurbishment, even down to exposing the English stitch bricks to restore the wall to its natural state. Skylights, which house half of the building and were previously covered in sticky black plastic, have been meticulously removed to reveal a light and airy space inside. The original stained glass windows which adorn the internal walls and eaves have also been uncovered and lovingly restored.
Mark McGrail, owner of the 1915 bar (pictured, seated), said: "Rotherham was once such a powerful town, but it's forgotten where it's from. Speak to people who live outside of Rotherham and they appreciate the history of the place, the buildings and its landmark. This building is central to a lot of what went on at the time it was built. It is critical that it is saved and used for decades to come.
"At the end of the day, I'm a businessman and I wouldn't be investing if I didn't believe it could make money. And Rotherham has a lot of potential with the future development of Forge Island and the Council’s plans to rejuvenate Rotherham."
Mark wants to be a key part of those plans, and part of that means offering opportunities to young people in the borough. As such, he is renovating the underground rooms of the old offices – on average, the basement is 24 feet below street level, which required a large amount of building work when it was originally built, and none less so today.
Four rooms, each fronted by glass, with access via an underground corridor to the front of the building, will be offered to young entrepreneurs aged 18-24 years old as retail incubation space.
Damien Wilson, strategic director for regeneration and environmental services at Rotherham Council (pictured, right), said: "Mark first approached our RiDO team when he was looking for an opportunity to invest and we are pleased we've been able to give him the practical support he wanted. A lot is happening in Rotherham – it is a unique town with much to offer and we are confident that businesses who choose to invest here will succeed and flourish in the coming years."
Set to open in December, the new bar and bistro will feature an indoor mezzanine. Whilst there will be a bistro-style menu featuring chunky burgers and a selection of steaks, an outdoor kitchen will enable street food to be cooked on the forecourt. The bar will also offer a selection of draft and bottled beers and lagers, wines and cocktails and will feature a gin-bar and real-ale bar.
The Government has given a clear indication that the Northern Powerhouse idea will continue to have importance in the future of the UK economy by setting out a strategy to raise productivity across the North.
Raising the productivity of the UK was a key theme in chancellor Philip Hammond's first (and set to be only) Autumn Statement where he set out that the Government will maintain its commitment to fiscal discipline while recognising the need for investment to drive productivity.
Hammond explained the UK's productivity gap, "which means in the real world, it takes a German worker four days to produce what we make in five; which means, in turn, that too many British workers work longer hours for lower pay than their counterparts."
The Autumn Statement was used to prioritise additional high-value investment, specifically in infrastructure and innovation, that will directly contribute to raising Britain's productivity.
As part of this, the Northern Powerhouse strategy states that the Government will invest in transport infrastructure to improve connections between and within the North's towns, cities and counties; work with local areas to raise education and skills levels across the North; ensure the North is an excellent place to start and grow a business; and ensure the Northern Powerhouse is recognised worldwide as an excellent opportunity for trade and investment.
On connectivity, the strategy discusses the £13 billion of investment in northern transport over the course of this Parliament and high profile projects such as HS2.
Improving trans-Pennine connectivity was mentioned whilst the regions wait on studies into a potential tunnel to improve journey times between Sheffield and Manchester. Route development work on Northern Powerhouse Rail (HS3) linking the North's cities continues with transport body, Transport for the North to consider the options over the coming months, and announce the next steps in 2017.
Previous projects such as the upgrading the M1 to become a smart motorway between J32 and J35a through Rotherham were highlighted and the Government added that specific allocations for further transport schemes will be announced in due course.
One new project that is moving forward is the £75m+ "Sheffield Mass Transit Scheme" that has been successful in bidding for business case development funding within the Local Majors Fund. Rothbiz revealed the Sheffield city region's bids in June. Phase 1 of the project involves a massive replacement, refurbishment and possible extension of the Sheffield Supertram system. It would appear that bids to address congestion at J33-J34 of the M1, and a new Trans-Pennine through route linking the SCR with Manchester and the Humber ports, have not progressed.
Sir Nigel Knowles, chair of the Sheffield City Region LEP, said: "The Northern Powerhouse combined is equal in size to London. The North used to power this country and was one of the aspects that made it great. Central to this is connectivity – getting from Manchester to Sheffield or from Rotherham to Leeds needs to be as easy as going from Canary Wharf to the City of London."
Advertisement On skills, the strategy covers school improvement and that authorities, such as the Sheffield city region, are set to gain control over the Adult Education Budget for workplace skills and training.
The North is also expected to see some of the further £1.4 billion announced to deliver an additional 40,000 housing starts by 2020-21.
On enterprise and innovation, the strategy highlights the already approved £400m Northern Powerhouse Investment Fund which is set to begin support businesses early next year.
On economic development, the Sheffield City Region local enterprise partnership (LEP) is set to learn its allocation from the Local Growth Fund soon (it bid for £156m) and, if it becomes a mayoral combined authority as proposed, it will gain powers to borrow for their new functions, which will allow them to invest in economically productive infrastructure.
The University of Sheffield is involved with the £100m Government programme to incentivise university collaboration in tech transfer and in working with businesses. Proposals are being worked up.
Announced before the Autumn Statement, the Government is putting an additional investment in research and development, rising to an extra £2 billion per year by 2020-21. This includes the Industrial Strategy Challenge Fund to support collaborations between business and the UK's science base.
Mike Tynan, chief executive of the Nuclear Advanced Manufacturing Research Centre (Nuclear AMRC), the multimillion pound centre in Rotherham, said: "I welcome the Autumn Statement focus on the key industrial drivers of productivity and research and development. Support to UK industry in order to improve its competitive position is vital to ensure that our manufacturing supply chain is able to participate in global opportunities.
"Regional investment is also necessary to develop our local capacity and capability and I'm pleased that the chancellor has provided funding for local deployment, in particular a recognition of the potential value of northern industry in the Northern Powerhouse."
The strategy also points out the Government's belief that the shale gas industry is to play an important role in the North.
On trade and investment, the Department for International Trade will continue to lead on work to promote the Northen Powerhouse to foreign investors through efforts like the Investment Portfolio which pitches projects such as the Sheffield-Rotherham Advanced Manufacturing Innovation District (AMID).
