Quantcast
Channel: rotherham business news
Viewing all 777 articles
Browse latest View live
↧

News: Millers post £1.4m loss for survival season

March 9, 2017, 11:13 pm
$
0
0
An increase in wages and administrative expenses meant that Rotherham United posted a loss in its most recent financial accounts, but retaining Championship status for this season is likely to have boosted income.

The borough's football league club has posted its results for the year ending June 2016 having switched its reporting year to tie in with the football season. It shows that turnover has increased to £13.3m but a loss before tax of £1.48m was recorded.

The financial period relates to The Millers late run under the leadership of manager, Neil Warnock, to secure Championship status. The club's turnover, which has increased from the £10.98m for the year to December 31 2014 (which included promotion to the Championship) is made up of increasing levels of commercial income (£4.9m) and "central distributions" (£4.8m).

The financial performance is linked to the on pitch performance of the team and the reported loss is mainly due to an increase in wage levels, up from £4.8m in 2014 to £8.8m in 2016.

The results also show that ASD Lighting put in some £2.9m to the club in the year ending June 2916 in the form of sponsorship. Chairmanship Tony Stewart, is the successful local businessman and owner of Rotherham lighting manufacturers, ASD Lighting. He saved the Millers in 2008 when he brought the then League Two club out of administration via a Creditors Voluntary Agreement.

Advertisement

For the same financial period, ASD Lighting Holdings, the holding company of the football club and ASD Lighting, posted turnover of £30.4m, £19.9m for the lighting business, and a loss before taxes of £774,000. The company has invested millions in recent years at its barbot Hall facility to increase productivity and product quality.

Matchday income and season tickets boosted club coffers by £2.45m with average attendances at the £20m AESSEAL New York Stadium continue to be above 10,000. Around 6,000 season tickets were sold.

The report said in its strategic report that "Ticket and commercial revenue streams both remain satisfactory and the club continues to look for and develop new commercial opportunities."

Since the end of the financial year, new tenants have taken up space in the New York Stadium, a new principal shirt sponsor was announced and this season saw the biggest ever TV deal come into play for the Premier League. For previous seasons, Rotherham United will have received between £2m and £3m in solidarity payments from the Premier League but from this season, these are estimated to jump to between £6.5m and £7.5m.

In a league alongside former Premier League and European Cup winners and clubs benefiting from huge parachute payments where Financial Fair Play rules have been loosened, the Millers currently find themselves adrift at the bottom of the league.

Rotherham United website

Images:


↧
Search

News: Rotherham Council objects to £300m Meadowhall leisure hall

March 9, 2017, 11:38 pm
$
0
0
Rotherham Council is objecting to a planning application for a £300m Leisure Hall at Meadowhall, stating that it is likely to have a significant adverse impact on Rotherham town centre and the planned investment in the Forge Island site.

The plan comprises a 330,000 sq ft multi-level extension housed under a glazed roof on land currently used for car parking. Plans show leisure space to provide a range of other uses to meet the needs of a wide family group, including a new cinema (the existing Vue Cinema will close, and be changed to an alternative leisure use) plus space for food and drink outlets. A new foodstore and added retail units are also planned.

Due to the out-of-town location, the applicants are required to undertake a sequential test and impact studies in line with national planning policies. Rotherham Council has been asked for its views due to the site being 5 km from Sheffield city centre and 3 km from Rotherham town centre.

Applicants, British Land, insist that the development will not have any unacceptable trading effects on Rotherham town centre or cause any significant adverse impact on planned investment.

Retail studies conclude that Rotherham town centre ranks highest as experiencing the greatest level of competition amongst the 200 UK centres due to its proximity to Meadowhall and Parkgate. Council planners point to the fragility of the health of Rotherham town centre and conclude that the impact on the vitality and viability of Rotherham town centre is likely to be significantly adverse if Meadowhall is extended.

Advertisement

A report to the planning board at Rotherham Council adds: "Due to the lack of leisure facilities in Rotherham town centre at present, the proposed floorspace in the Meadowhall extension is unlikely to have a direct impact on the existing health of the centre but is nevertheless likely to be a contributory factor to a wider indirect impact on the centre due to the growing attractiveness of Meadowhall."

The proposals for Forge Island, recently purchased by the Council who hope to see a £43m leisure hub created, are not considered as "committed investment that is contractually committed or subject to resolution" and were not included in the applicant's impact statement. The applicants also stated that, as the cinema is being replaced at Meadowhall, the potential interest in a cinema is Rotherham is in the context that a cinema already operates at Meadowhall and Valley Centertainment and will complement any future offer in Rotherham.

Rotherham planners agree that the Meadowhall cinema will not fundamentally affect operator interest in Rotherham in its own right but have a greater level of concern in relation to the food and beverage uses. They are worried that some operators will prefer Meadowhall over Rotherham and that "operators will not have the confidence to invest at the Forge Island site due to the strength of Meadowhall in the local catchment."

It is likely that the cinema on the Forge Island site would be occupied by an independent operator and unless the food/beverage uses are attracted then the cinema use will not be delivered.

The report concludes: "It is considered that the Meadowhall extension is likely to pose a significant threat to the investment in the Forge Island site. This is a threat to both public and private investment as RMBC has recently purchased the site with the intention of facilitating redevelopment. Private sector investment will also be affected as RMBC will not be able to secure a development partner to pursue the redevelopment as development viability will be affected.

"Rotherham town centre has suffered over a number of years in terms of business confidence, with considerable competition from Sheffield city centre, Meadowhall and Parkgate in Rotherham. This is evident from the high number of vacancies and the falling level of comparison goods retailers and the on-going threat of further retailers deciding to move to competing locations. As a consequence, with already low levels of confidence, we consider that the Meadowhall extension is likely to have a significant adverse impact on existing investment in Rotherham town centre."

Barnsley & Rotherham Chamber of Commerce is backing the proposals at Meadowhall, supporting the application to ensure that the region does not lose visitors and for the economic benefits of additional jobs and through the local supply chain.

Future Meadowhall website

Images: British land


↧
↧

News: Rotherham registers strong opposition to HS2 route revisions

March 9, 2017, 11:52 pm
$
0
0
"Rotherham is not served at all by the proposals, but suffers the devastating impact of the line." That's the official response from Rotherham Council on the revised HS2 route through South Yorkshire.

The Government is minded to approve a new proposed route between Birmingham and Leeds, switching from a route into a new station at Sheffield Meadowhall with a new option that proposes that HS2 services between London and Sheffield would take a spur off the new north-south high speed line and travel directly to the existing Sheffield Midland station using the existing railway line.

Consultation ended yesterday on the HS2 line to Leeds that would travel east of Rotherham following the M1 and M18 before heading through the Dearne Valley.

The reply from Cllr. Chris Read, leader of Rotherham Council outlines the reasons why his authority continues to back the Meadowhall option and not support the proposal to amend the route.

The response covers costs, demand, environment, connectivity and the needs of the whole Sheffield city region. It concludes that the Sheffield Midland spur option:

- Will mean fewer, slower and smaller trains for the city region resulting in 71 per cent less seats per hour for the City Region and journey times 25% slower than the Meadowhall option;
- Offers vastly inferior connectivity with trains only connecting Sheffield with East Midlands Hub and London. There will be no connectivity to Birmingham, Leeds, York and the North East as there would be from Meadowhall;
- Brings significantly fewer direct economic benefits. 30% fewer jobs will be created than with the Meadowhall option;
- Constrains economic growth opportunities. The economic benefit to the Sheffield City Region is nearly 40% lower than for the Meadowhall option;
- Costs more. The claimed £1bn saving provided by the Sheffield Midland spur option, quickly dissolves away when the full cost of delivering the proposal is exposed. Using HS2's own figures, the reality is that the Sheffield Meadowhall high speed station option is no more expensive to build than the Sheffield Midland spur option, and will be considerably cheaper to operate.

Advertisement

Cllr. Read said: "We have said throughout that if the government is to build this major piece of national infrastructure they should site the station at Meadowhall, in terms of the benefits that this would bring to Rotherham and the wider City Region, and have made this view clear to the government and HS2 Ltd.

"However, the M18 / spur proposal that HS2 now favours would mean a second class service for Rotherham. For the City Region as a whole it would mean fewer, slower and smaller trains, resulting in 71 per cent fewer seats and journey times 25 per cent slower than the Meadowhall station option. And because it means a slower, smaller service, the spur proposal also means 30% fewer jobs and lower economic benefits.

"Through the work we have commissioned alongside our colleagues in Doncaster, we also know that the spur proposal will be no cheaper than the Meadowhall option, and will actually be much more expensive to run - £1.7 billion over the lifetime of the scheme. For residents whose homes are threatened by the spur proposal, our analysis shows the most recent HS2 proposals to be doubly insulting.

"We have made our views known as part of this consultation and our representation to Government seeks to get the best deal for Rotherham, and for the region. It is essential that the government re-thinks this proposal before it makes a mistake of historic proportions."
Barnsley and Rotherham Chamber of Commerce have also put forward its support for the original Meadowhall route in its consultation. The business representative group makes similar points on frequency and costs and the lack of links to places like Leeds without a commitment and funding for a Northern Loop from Sheffield back to the main HS2 line.

The Chamber concludes: "We are extremely opposed to the currently proposed Sheffield branch line option without modification particularly as this would see the City Region having all the negatives of the line running through the area without any benefits that would accrue from having a proper station on the main line.

"The strength of feeling is such that should the current proposal stand we would very reluctantly be forced to withdraw our support for the whole project."

Images: HS2 Ltd


↧

News: Todwick North site set to stay in Green Belt

March 22, 2017, 12:44 am
$
0
0
A proposal to create a new business park in Rotherham that would be home to thousands of jobs has taken a knock back after a planning inspector disagreed with the Council and wants the site to remain in the Green Belt.

Around 30 hectares of agricultural land at Todwick was put forward as part of the Council's Local Plan. It was the major new site being put forward since the borough's employment land was last examined.

Identified as "Todwick North," the site was put forward for new offices and new commercial floorspace in the general industrial planning class, as well as the potential for some storage and distribution uses. It is hoped it will "attract major inward investment by accommodating one or more large users or through the development of smaller plots which comprise a high quality business park."

However, following consultation and examination hearings on the Local Plan, the planning inspector, Christopher Anstey wants the business allocation deleting and for the site to be retained in the Green Belt.

Advertisement

The Council had hoped that the site, which is known in the plan as E16 and located close to the new roundabout on the A57, would be available for development in years 11-15 of the plan period.

The Council's statement said: "The site is located to provide a strategic inward investment opportunity for Rotherham. Rotherham currently lacks the number of major, straightforward to develop sites which it needs to re-capture the employment growth.

"E16 has been identified as having potential to help attract major inward investment into Rotherham and the City Region, and deliver a premium business park with opportunities for high quality development."

Masterplans for the site show that approximately 955,000 to 1.135m sq ft of business space can be formed on site - enough to bring an estimated minimum of 1,500 jobs.

Site promoters, Wyndthorpe Developments Ltd, which had selected a leading development company as a partner in the proposed scheme, said in its representations: "The site is a large deliverable employment site next to the A57, which provides a major inward investment opportunity, capable of providing 30.05 hectares of employment land within the plan period. Such development here is vital to ensure Rotherham can meet its employment needs, and the aims of the Rotherham Economic Growth Plan."

Advertisement

The inspector concluded: "This site, together with other areas of land around Todwick, makes a significant contribution to preventing the neighbouring settlement groupings of Dinnington / Anston / Laughton Common and Wales / Kiveton Park from merging into one another. Furthermore development of this extensive area of farmland would constitute encroachment into the countryside and cause severe damage to the attractive rural character of the local area. Consequently the allocation is not justified and is not consistent with national policy."

The inspector has made a number of "Main Modifications" considered necessary to make the Rotherham Site and Policies Plan (RSPP) sound. The Council will need to come back with its own modifications following the recommendations.

Images: Wyndthorpe Developments / DLP


↧

News: Pricecheck breaks £50m turnover barrier

March 28, 2017, 11:23 pm
$
0
0
Award-winning firm, Pricecheck Toiletries has passed the £50m turnover barrier as it continues to grow from its premises at Beighton Link Business Park in Rotherham.

Pricecheck is a leading supplier of international branded consumer goods, working predominately in the health and beauty sector, dealing with discounted clearance stock. It won the Queen's Award for International Trade 2015 for continuous and cumulative overseas export earnings growth of 283% over six years.

The second generation family owned business, established in 1978 by the parents of Mark Lythe and Debbie Harrison who now run the company as joint managing directors, officially opened the new premises in 2016. With ambitious future growth plans, the 115,000 sq ft warehouse is able to accommodate 40% more than previously achievable and offices have tripled in size.

Recognising the contribution that private companies make in Yorkshire & North East, multinational professional services network, PwC is highlighting some of the success stories this week and Pricecheck is used to show how a private, Yorkshire business goes from local to global.

Advertisement

Mark Lythe and Debbie Harrison, joint managing directors at Pricecheck, explained how being a private company enables them to be adaptable, focus on long-term growth and maintain control over decisions and activities.

The pair said: "Being private means more flexibility and adaptability to change, which is invaluable when it comes to often volatile foreign markets. The speed at which one can react to change is a huge advantage for any international business, meaning growth need not be stunted by sudden industry fluctuations, such as currency instability or recent uncertainty surrounding Brexit.

"There is also flexibility in choosing product categories, having recently expanded into food, drink and pet care, the business can "test the waters" for what works well. Another benefit is the ability to focus on certain market sectors, or target specific countries for export.

"Looking forward, now that Pricecheck has broken the £50m barrier, the next target is to double turnover to £100m within the next five years, meaning continued growth in all areas of the business, via recruitment, export and the addition of new product categories. It's an exciting time to be a private company and indeed a Yorkshire business with global ambitions."

Pricecheck website
PwC website

Images: PwC


↧
↧

News: Partnership launch long-term strategy for Rotherham

March 29, 2017, 11:53 pm
$
0
0
High profile economic development and regeneration projects are helping to create a new perspective for Rotherham.

Developed as Rotherham Together Partnership's long-term strategy for the borough, the Rotherham Plan 2025 has been officially launched this week. It provides a framework for partners' joint efforts to create a borough that "is better for everyone who wants to live, work, invest or visit here."

The plan is based around five "game changers": building stronger communities, skills and employment, integrated health and social care, a place to be proud of and the town centre.

The new Rotherham Together Partnership was launched in September 2015. It brings together a wide range of organisations, including major public bodies. Its Business Growth Board is responsible for the delivery of the ten-year Rotherham Economic Growth Plan which feeds into this new plan and includes indicators on business starts, employment, skill levels and vacant units in the town centre.

The skills and employment section describes how partners across Rotherham and the wider city region will develop a work and health programme that provides comprehensive support to help people secure, sustain and thrive in employment.

Key to improving skill levels will be the development of a £12m university campus in the town centre. Rotherham College, part of RNN Group, is moving fast having secured funding and will open the centre to students in Autumn 2018, offering a new programme of degrees and degree apprenticeships.

Advertisement

The section on creating a place to be proud of references the approach to "place shaping", overseen by the new, business-led place board, that will help to create a new identity for Rotherham. The Rotherham Story was launched last month as the first step in marketing and repositioning the borough with ambassadors or "pioneers" selling Rotherham as a place to live and do business.

The town centre has been given high status in the plan, mainly due to the strength of feeling from a range of residents during the consultation where "people were positive about parts of the town centre, particularly the Minster Gardens and High Street, but these were outweighed by the negatives."

The regeneration programme based on the new town centre masterplan, is set to be key in delivering a town centre that more people want to visit.

Cllr. Chris Read, leader of Rotherham Council was at the launch event where he discussed the £160m of additional investment coming to Rotherham over the next few years - projects like Forge Island, the HE Campus, the Interchange, tram-train, Gulliver's Valley and Wentworth Woodhouse - and inward investment from the likes of McLaren and Liberty House.

The UK's first Advanced Manufacturing Innovation District (AMID), set to be created in the Sheffield-Rotherham economic corridor, is used as a case study in the plan. AMID will be a nucleus of innovation and research in advanced manufacturing, with strengthened connections across new and existing firms and knowledge institutions that will benefit from close proximity to world-class technology facilities.
Cllr. Read said: "Rotherham people are resilient people. Year after year, decade after decade, we've faced down challenges and we've dealt with difficulty.

"In fact, if we've had a flaw, it’s that we've kept our heads down too much. We haven't understood why the rest of the world can't see all the brilliant things about our borough, when they stare us in the face. If folks down south wanted to think of us as smoggy and grey, that was their loss.

"We called the Plan we're launching today "A New Perspective" because it requires us to take a different point of view, to get the outside world to take a new look at us."

Rotherham Together Partnership website

Images: Rotherham Together Partnership / Bond Bryan


↧

News: Revived Yorkshire Windows to focus on retail market

April 6, 2017, 11:27 pm
$
0
0
Rotherham-based manufacturer and installer, Yorkshire Windows, is back in business having ceased trading at the start of the year.

The firm, which had a turnover of £9.5m, said that it had been hit by late payments in the commercial sector and that all 84 employees had been served notice of redundancy.


Now commercial director Ian Chester, who has worked at the company for over 15 years, has set up a new company, IRC (Windows and Doors) Limited, taken on the Yorkshire Windows name, moved premises from Hellaby to Templeborough, and is returning the focus of the business back to the retail sector.

Sheffield insolvency practice Graywoods, was brought in to liquidate the YWC Group which, as well as providing the domestic sector, moved into the commercial sector to supply house builders and local authorities. It enjoyed strong sales in Sheffield and Rotherham thanks to the Government's Decent Homes revamp scheme. Its products were fitted in 20,000 homes in Sheffield and 50% of Rotherham council houses.

Advertisement
The specialist in uPVC doors and windows, composite doors, bi-fold doors, conservatories, orangeries, garage doors and roofline products is moving away from the commercial sector and is opening a showroom at Dronfield's Ferndale Garden Centre. It has showrooms in Wickersley and Sheffield and is also looking to develop similar sites serving West and North Yorkshire.

Ian Chester, director of Yorkshire Windows, said: "We are moving away from the commercial market to fully concentrate on the retail side of the business, returning to a model that proved such a great success for Yorkshire Windows over many years.

"We are now working with high end specialist suppliers on creating a brand which has all the assurance of quality that Yorkshire Windows has enjoyed for so long and we are all excited as we prepare to launch some excellent new products.

"As we focus entirely on strengthening our position in the retail market, we were looking for new ways to raise awareness of  the Yorkshire Windows brand with the public."

Insolvency documents show that the YWC Group left some £2.3m of debts with around £1.5m of unsecured claims from trade and expense creditors.

A decision to invest over £2m in a new production line at its Hellaby factory coincided with the economic downturn and the company was hit by significantly reduced margins.

Turnover at YWC Group and subsidiaries had halved from £22m a few years earlier to £11m in 2014. The loss of sales volume, managing change and charges associated with new finance arrangements led to losses of £700,000 for 2014.

For the year ending 2015, YWC Group's turnover had reduced to £9.5m with profits posted of £65,000 as the company covered its overheads by being more selective about contracts for the supply of manufactured products and installation.

Yorkshire Windows website

Images: Yorkshire Windows


↧

News: Rotherham firms look to RISE

April 12, 2017, 11:15 pm
$
0
0
Forward thinking firms are looking to harness the talent in the Sheffield city region through the latest cohort of RISE graduate interns.

Established in 2013 by Sheffield City Council, Sheffield Hallam University and University of Sheffield, it was set up in response to SME feedback around recruiting graduates, which highlighted issues such as not having a training framework for a graduate employee and assessment centre style recruitment processes to find the "right" candidate being too expensive. Graduates also had concerns around employment opportunities.

Working with the Growth Hub, local authorities and the private sector, the scheme has expanded across the Sheffield city region (SCR). The SCR Growth Hub has become a major partner in the scheme, securing RISE until 2019 and giving thousands more forward thinking SMEs the opportunity to benefit from recruiting graduate talent.

Advertisement

Rotherham firms taken part in the latest round - the 12th cohort - include S3 ID and Assured.

S3 ID is a provider of cutting edge location awareness solutions that are designed, assembled and tested in its offices and workshop at Templeborough. A Trainee Software Developer is required by the company which has developed a range of specialist hardware and software products that provide real-time personnel location awareness, mustering and access control. They are used in working environments where a major incident would be catastrophic such as oil, gas and petrochemical plants.

Assured Ltd is one of the fastest growing fire and security companies in the UK. Established in 1998 and now based at Dinnington, the team of over 100 staff provide fire and security solutions to businesses and organisations across the UK and overseas, deploying quality installations and maintenance via a professional network of engineers covering the whole of the UK. Assured is recruiting a Service Coordinator through the RISE scheme.

RISE has already seen more than 200 graduates placed into paid internships over the last three years, across more than 150 companies. The roll-out of RISE across the region means a further 250 interns will be placed over the next three years, with at least 150 of these placements becoming permanent posts. This will equate to an economic impact for the region of up to £7m.

RISE runs three times a year, with intakes in spring, summer and autumn.

RISE website
S3 ID website
Assured website

Images: RISE


↧
Search

News: Business rates incentive for inward investor

April 12, 2017, 11:49 pm
$
0
0
Rotherham Council is offering a business rates discount to a potential inward investor that could move into the borough and create new 1,000 jobs.

The company is looking at a number of locations for its operation and Rotherham is down to the final few.

The Council's cabinet and commissioners were recently asked to approve a financial incentive as part of the authority's attempts to ensure that the firm chooses Rotherham.

The paper was discussed in private on commercial confidentiality grounds but the decision makers approved the offer of a six month relief from business rates payments in the second year of occupancy, subject to the creation of 50 full time equivalent (FTE) posts in year one.

Advertisement

Few details have been disclosed but Rothbiz understands that the new potential investor to the borough has projected that the number of jobs to be created would be between 200 - 500 in 2017 and 1,000 in the next five years.

There is competition with other areas hoping to secure the investment and jobs, the unnamed investor has also received an offer of rates relief from the Leeds City Region.

The application relates to Wath and Hoober wards in Rotherham which includes the established business location of Manvers.

RiDO, the regeneration arm of Rotherham Council offers a dedicated account manager to potential inward investors who acts as a central coordinator for all partner organisations and provides market research, property options, skills, recruitment and training advice.

A similar financial incentive was used by the local authority to help a local employer stay in the borough. In 2013, the bosses at KP Snacks and Intersnack UK put forward firm proposals to make the investment in a new facility in Rotherham. Moving from Eastwood to Hellaby, the Council approved a package to cover a limited total of £161,290 of KP's business rates for the three years.

RiDO also assisted KP with a Regional Growth Fund (RGF) bid to the Sheffield City Region Local Enterprise Partnership fund and they were successful in securing £1.5m for the project.

Images: CPP


↧
↧

News: Rotherham retail park sold in multimillion pound deal

April 18, 2017, 11:32 pm
$
0
0
The Foundry Retail Park in Rotherham has been sold to Tristan Capital Partners, the pan-European real estate investment manager, as part of a £245m portfolio deal.

Formerly known as the Great Eastern Retail Park at Parkgate, the 170,748 sq ft retail development with 813 car parking spaces, is home to The Range, Harveys, DFS, Wren Kitchens and B&M.

The site was bought in 2012 by a specialist joint venture partnership of Brockton Capital and Pradera in a deal worth around £22.1m. The partnership was established to selectively acquire a portfolio of retail parks throughout the UK and jointly committed sufficient equity to enable a gross portfolio value of approximately £250m to be acquired.

The Brockton portfolio of nine well-located retail parks across the UK was bought for £245m on behalf of Curzon Capital Partners IV (CCP 4), a "core-plus" style investment fund - managed funds which join 75% of core assets such as buildings, with higher risk short term investments.

Advertisement

Peter Mather, managing director of investments at Tristan Capital Partners, said: "We are seeing a big disconnect between the relatively strong occupational market and subdued real estate capital market for retail assets in the UK. This portfolio allows us to capitalise on this trend.

"While there are a number of planned asset management initiatives to add value, the long WALT [leases], affordable rents and strong covenant strength make this defensively positioned portfolio an ideal core-plus style investment."

CCP 4 has retained Savills Investment Management to continue managing the properties on its behalf. Advising CCP 4 on the purchase of the portfolio were Savills, Stephenson Harwood and Pricewaterhousecoopers.

Gowling WLG's real estate team advised the fund advised by Brockton Capital on the deal.

Sally Pinkerton, head of international real estate at Gowling WLG, said: "The deal is certainly significant as it's the first out-of-town retail park portfolio of this size and nature to come to market. We are delighted to have assisted Brockton Capital from acquisition through to disposal and ensure that their investors capitalised on the investment and hard work over the last five years."

The UBS Triton Property Fund, who bought the retail park at Parkgate in 2006, refurbished the properties in 2010.

Further refurbishment work has taken place and recent openings include Oak Furniture Land, JYSK and United Carpets. Plans have been approved for American coffee company and coffeehouse chain, Starbucks to open a purpose built outlet in the park. United Carpets expanded on the park, enabling co-operative company, AHF Furniture to move in.

3.2 acres on the site has potential for further retail and leisure development.

Tristan Capital Partners website

Images: GVA


↧

News: Retail not the answer for Rotherham town centre

April 20, 2017, 3:45 am
$
0
0
Industry analysts have confirmed that retail is not the answer for regenerating Rotherham town centre.

A detailed study into the retail sector in Sheffield and Rotherham has been carried out by experts at Bilfinger GVA - the largest independent commercial property agency in the UK.

Using surveys, studies and data, the latest study confirms that Rotherham is at the pinnacle of the retail hierarchy in the borough but it is not the location with the highest comparison goods turnover.

Rotherham shoppers have never had it so good, with leading names at nearby Parkgate and Meadowhall, and an independent offer and weekly markets in the town centre.

The study highlights that the large collection of stores in Parkgate Shopping are becoming increasingly attractive to residents of Rotherham and that Meadowhall presents significant competition for the borough's shoppers and dominates the luxury and sports goods market. Another example is that Parkgate has a 35% market share as the first choice for Rotherham shoppers looking for new clothes, followed by 26% for Meadowhall and then 19% for Rotherham town centre.

Advertisement

Overall, the residents of Rotherham generate a total pot of £607m of comparison goods expenditure per annum. Just over £1 in every £10 from the Borough's residents is still being spent in Rotherham town centre. £2.50 in every £10 spent by the Borough's residents is spent at Parkgate and £2 in every £10 is being spent at Meadowhall.

The consultants conclude: "Rotherham is at the pinnacle of the retail hierarchy in the Borough but it is not the location with the highest comparison goods turnover. That role has been taken by Parkgate which is, for some types of comparison goods shopping, considerably more attractive than the town centre. In addition Rotherham town centre also faces considerable competition from Meadowhall, and these factors leave the town centre with a relatively small geographic catchment and a weak market penetration level with this catchment.

"These pressures also leave the town centre with a vacancy level which is noticeably higher than the national average and also lower than average levels of comparison goods retailing and service uses."

The figures used in the study has the vacancy rate at 28% for 2016, more than twice the national average of 12%.

"Convenience goods" is broadly defined as food, drinks, tobacco, newspapers, magazines, cleaning materials, toilet articles. "Comparison goods" covers other goods not classified as convenience goods.

Rotherham's share of stores selling comparison goods is on the decline, mirroring the national trend. Household shopper surveys showed, when compared to a similar survey in 2012, that there has been a drop in the proportion of people visiting the town centre for non-food shopping, but little change in relation to food shopping visits.

Advertisement

The consultants add: "We consider that comparison goods retailer demand for the town centre is likely to be subdued. The socio-demographic profile of the town suggests that the centre is likely to appeal to mid-market and value orientated retailers and a number of these are already present including B&M, Poundstretcher and Primark [but not for long].

"Many other comparison goods retailers who would consider the Rotherham catchment are already present at Parkgate and it is very unlikely that these retailers would consider a second store in such close proximity. The same is true for Meadowhall, given its proximity to Rotherham town centre, catchment and accessibility from the main road network."

The weaknesses and vulnerability have been known for a while, and signs are that the latest town centre masterplan will look at consolidating retail and instead focus on new housing and boosting the leisure offer to breathe new life into the town centre.
The same study highlighted that there is enough demand for an 11 screen cinema in the borough, which will support Rotherham Council's proposals for a £43.5m leisure hub around Forge Island.

The consultants back up this approach, advising the Council to focus on trying to maintain the current comparison goods role of the town centre in the face of sustained competition and look at other sectors to add vibrancy and vitality.

The study adds: "With the ability to increase its comparison goods market share rather challenging, we consider that the future health of the town centre lies in the ability to diversify its offer and suite of land uses. This will include introducing a greater diversity of leisure and food/drink uses, in order to increase vitality and activity throughout the day and evening. This will also be assisted by an increase in the local residential population."

Rotherham Council has also been provided with analysis to help determine future retail planning applications. The study concludes that there is no need to plan for any further (net additional) convenience goods floorspace, and that "there does not appear to be an urgent or substantial short term quantitative need for net additional comparison goods floorspace."

Images: Visit Rotherham / BMO


↧

News: AESSEAL hails record sales month

April 20, 2017, 11:24 pm
$
0
0
Rotherham manufacturer AESSEAL has posted record sales for March 2017 at just under £16m, nearly £2m greater than the previous record breaking month for the business.

With its global headquarters at Templeborough, the £150m turnover company manufactures mechanical seals for a wide range of industries, including oil and gas, food, water, mining and pharmaceuticals. With a focus on quality, the firm has won numerous awards including 13 Queen's Awards to date.

AESSEAL is the world's fourth-biggest maker of mechanical seals and has previously seen sales and profits grow every year for over 30 years. It operates in 104 countries with 58 repair facilities and nine manufacturing sites.

Turnover for 2016 is expected to be reported at around £152m with exports making up around 80% of that and the company has also reached a record landmark of £100m in net assets. Founder and managing director, Chris Rea has hailed the success as a "magnificent achievement."

In a message to all 1,700 staff he said: "In a time of decline for all of our major competitors, due to the low price of oil and the lack of business in that area, this is a magnificent achievement. I remain convinced that people are the most important ingredient for business success and the results are testament to your hard work and commitment to customer service. I am proud and delighted with all of you for what you have done and continue to do to give our customers exceptional service."

Advertisement

Rothbiz reported earlier this month that AESSEAL has become a founder Rotherham Pioneer, joining an exclusive group for Rotherham businesses who want to promote the town, celebrate all that is good, and grow the Rotherham business community.

Chris Rea OBE, DL, took on the business that was a distributor for an overseas company and which had eight employees on April 1, 1979. It is now on target to beat a target for a record sales year for 2017. He added: "Part of it has come from the weakness of sterling, which means that international sales have been translated into a higher sterling number. We have also been helped by the fact that we had a 23-day month as in 2017 Easter falls in April. Nonetheless, March saw another important milestone, in that our group had £100m of net assets after depreciation, supporting our £160m-plus 2017 sales target."

It may appear questionable overinvesting in the business, however Mr Rea stated: "In my view, investment in our future is a key contributor to our ongoing success and that with higher levels of investment in people and infrastructure like machine tools and information technology, we get sustainability and with it security for all of us. In short, we did get a record sales month and coincidentally the £100m milestone of net assets invested in the business could be a part of the reason for a sustainable business."

AESSEAL website

Images: AESSEAL


↧

News: Xeros outlines 2017 as "year of execution"

April 20, 2017, 11:35 pm
$
0
0
Having reached a number of major milestones, innovative Rotherham company, Xeros, has hailed 2017 as a year of execution, in which it will significantly progress the commercialisation of its highly disruptive, innovative technology.

Based on the Advanced Manufacturing Park (AMP), Xeros is a Leeds University spin-out that has developed a patented system using a unique method of special polymer beads rather than the usual large amounts of fresh water to clean clothes. Water is replaced with millions of reusable polymer beads, typically reducing water use by 75% when compared to a traditional laundry machine.

For the 17 months to December 31, 2016, Xeros reported a £21.1m pre-tax loss as it continued to invest in developing the technology - £7.6m was spent on R&D including staff and patent costs. Revenue for the same period was £2.5m, up from £480,000 for the year ended July 31, 2015.

The AIM-listed firm raised a further £40m in a share issue at the end of 2015.

As it commercialises the technology, the first major target market was the billion dollar US laundry market. The number of commissioned machines has grown by 140 to 267, with another 150 in the pipeline. A new regional office and engineering centre in the US opened during the period and commissioning capacity has been improved to meet demand. The firm is targeting specific areas where drought and water scarcity is a problem.

The company is in detailed discussions with a number of leading market participants, and are confident of achieving an annual installation rate of 2,000 per annum in the year of 2020.

Advertisement

The business model is based on the supply of the polymer beads and service income from installed machines has increased significantly. To aid this and "greatly accelerating the adoption rate of our technology" Xeros has launched the Symphony Project, which enables laundry machine manufacturers to retrofit and install an ingenious system that enables other manufacturers to use Xeros polymer beads in their machines.

Mark Nichols, chief executive of Xeros, said: "Over the past 17 months, we have achieved major milestones in our technology development and its commercialisation. We now have strong evidence that we have the capacity to deliver sustainability, performance and economic benefits across three world scale industries: cleaning, tanning and textiles.

"Technical validation and increasing market endorsement show that we possess a platform technology that can transform these industries.

"The long-term value of our technology in each of the selected markets is substantial, given their scale, the environmental and economic pressures on them, and the quantum of the improvements we deliver in these areas. These benefits are now increasingly being recognised and we are in active discussions with a number of partners with the objective of further accelerating our commercial development.

"Our scope and strategy is now fixed. 2017 will be a year of execution, in which we significantly progress the commercialisation of our highly disruptive, innovative technology."

Industry trials have also shown that Xeros technology and processes substantially reduces water, chemistry and effluent in the processing of leather, an industry that uses a huge amount of water to apply chemicals. Targeting the $50 billion leather processing market, Xeros has signed a heads of terms with Wollsdorf Leder Tannery in Austria for a ten-year contract to convert its entire re-tanning processes to Xeros' technology.

Scale trials are also taking place with four other European tanneries who address the auto, shoe and garment markets.

As the focus moves to execution, R&D continues as Xeros works on its next generation of polymer beads. The next target market is textiles - the garment and fabric manufacturing market sectors offer significant potential. 22.7 million tonnes of natural fibres are processed annually for the clothing and textiles industries.

The Rotherham based polymer science team increased to eight people by the end of the period. The team is directly aligned to the three application areas (laundry, leather, textiles) and their successful commercialisation. As at the end of March 2017, the development teams possessed a total of 12 PhDs.

Xeros now has 48 patent families "pending" or "granted" to protect its portfolio, with more anticipated to follow.

Xeros website

Images:


↧
↧

News: Encouraging year at Fishing Republic

April 23, 2017, 11:47 pm
$
0
0
Rotherham-based retailer, Fishing Republic, has posted an increase in revenue to £5.79m as it continues to progress its expansion plans to build a significant position in the fishing tackle marketplace.

One of the largest fishing tackle retailers in the UK, the Eastwood company floated on the AIM stock exchange in 2015, raising millions to help carry out its expansion plans.

Fishing Republic is acting as a consolidator and expansion plans involve snapping up smaller, often family-owned fishing retail businesses. At the same time, the store network is expanding and its online sales strategy involves transitioning away from third party platforms to its own website sales, where margins are higher.

The firm has reported on the year ending December 31 2016, calling it "a year of strong progress" where revenue was up by 41% to £5.79m from the £4.12m in 2015. With investment in growth, profit before tax rose to £403,000 from £6,000 in 2015 (which included around £300,000 in costs relating to the IPO). Gross profits have been helped by improved purchasing power.

A new share placing during 2016 landed £3.75m from big name investors including Bill Currie, Iain McDonald and Sir Terry Leahy. This funding has enabled the business to support the expansion of the store network and the online strategy.

Advertisement

Fishing Republic had 12 outlets by the end of the year with three opening in 2017, in Milton Keynes, Ipswich and Reading. Leases have been signed on three further stores, in King's Lynn, Huntingdon and Clavering in Essex, which expect to open over the coming months.

Store revenues (£4.14m in 2016 compared to £2.27m in 2015) accounted for 71% of the group's total revenues with like-for-like sales increasing by 16% over 2015.

James Newman, chairman of Fishing Republic, said: "Fishing Republic has made strong progress over the year as we continued with expansion plans to build a significant position in the fishing tackle marketplace. Results show very encouraging growth with revenues up by 41% to £5.8m and profit before tax and exceptional items up by 32% to £0.40m.

"The outlook for the Group remains very positive. The fishing tackle marketplace is large but highly fragmented, with over 2,000 mainly owner-operated businesses and we continue to see a substantial growth opportunity for the Group and our multi-channel model."

Steve Gross, chief executive of Fishing Republic, added: "It has been another encouraging year of progress. The new funds we raised in late June 2016 helped to support the continuing development and expansion of our store network and have also enabled us to accelerate our plans to develop the Group's online platform and digital strategy, and transition online sales to our own websites, away from our historical model of third party platforms.

"Our store expansion is progressing very well and we have a further three stores earmarked for opening over the coming months which will take the total number of our outlets to 18. The main fishing season, which typically starts in the second quarter of the year, has begun well and we view prospects for ongoing growth very positively as we capitalise on our 'first mover' advantage."

Fishing Republic wesbite

Images: Fishing Republic


↧

News: Ranjit Boparan taking £5m stake in Crawshaws

April 25, 2017, 11:47 pm
$
0
0
Crawshaw Group PLC, the fresh meat and food to go retailer, is hailing a transformational deal with the 2 Sisters Food Group that includes Ranjit Boparan becoming a significant shareholder in the Rotherham-based business.

The AIM-listed Hellaby firm is undergoing growth plans that will see it invest £200m, opening 200 stores and creating 2,500 jobs. The new investment is expected to enable Crawshaw to restart its accelerated new store opening programme, with an initial focus on factory shop locations.

Heads of terms have been agreed on a deal that will see 2 Sisters Food Group founder and chief executive, Ranjit Boparan (and connected party), invest approximately £5.1m for a 29.9% stake in Crawshaw, with warrants to acquire a further 20.1% of the Group.

The deal, which sees Boparan become an advisor to the Crawshaw Board, also includes an initial three-year supply agreement for Crawshaw to acquire fresh meat and other products from 2 Sisters, one of Europe's largest meat and food producers.

Crawshaw said that it would use its unique vertically integrated capability to take supply of quality fresh meat, poultry and other grocery products from the supply/demand imbalances, which prevents creation of unnecessary food waste.

Advertisement

Noel Collett, chief executive of Crawshaw Group said: "This is a transformational partnership for the Crawshaw Group with a significant opportunity to offer a greater range and better availability to our customers. This new relationship provides a catalyst to our accelerated growth, both in sales and profitability."

"We very much welcome the 50/50 equity split as it reflects the symbiotic nature of the partnership and aligns both our interests to achieve maximum shareholder value. The two-stage subscription including conditional warrants will allow the commercial benefit to be demonstrated as part of the process."

Ranjit Boparan, chief executive of Boparan Holdings Ltd, added: "This is a great opportunity that complements our corporate social responsibility policy and our aim to reduce levels of quality food that would otherwise go to waste. Our businesses have a significant number of opportunities to work through together in the coming weeks and months."

The announcement of the deal comes at the same time as Crawshaw announced its final results for the full year ended January 29 2017.

Turnover was up 19% to £44.2m from the £37.1m reported in the previous year. Investing in expansion plans, the group made a loss before tax of £1.4m, an increase on the loss of £0.3m.

The expansion plan stumbled a little in 2016. As new stores opened, standardised offers and price points were also introduced into existing stores but the management admitted that they "didn't resonate as well with customers as we thought."

Changes were made to give store managers flexibility to re-introduce local products, sizes, price points and offers that were previously on sale in their specific store.

Collett added: "By listening to customers and focusing on the demands of each store's individual local community, we have seen a sharp recovery in both sales and customer numbers throughout the second half of the year."

The group opened 11 new stores during the period and now operates from 49 sites. It reported like for like sales down -7.3% for the full year.

2018 will see a disciplined approach to its growth strategy with a focus on factory stores which have higher sales, lower operating costs and lower fit out costs than units on the high street and in shopping centres.

It was also announced that Richard Rose is to retire after 11 years as chairman of the Group. Jim McCarthy, former boss of budget chain Poundland, is set to replace him in the role.

Crawshaw website

Images: Crawshaw


↧
Search

News: Tata timeline in South Yorkshire

May 2, 2017, 11:21 pm
$
0
0
Under Indian ownership, the Rotherham steelworks continued to produce some of the best high grade specialist steel in the world despite the global economic downturn, rising electricity costs, restructuring and job losses.

2003 - As its stock market value plummeted, Corus - the Anglo-Dutch company created in a merger in 1999 - begins looking for a buyer.

2006 - The Indian Tata Group propose a £4.1 billion takeover of Corus at 455 pence a share in cash, which is approved by the Corus board.

2006 - A mammoth bidding war begins between Tata Steel and Cia. Siderurgica Nacional (CSN) of Brazil.

2007 - Pushed up to 608 pence per share in cash, Tata concludes the £6.7 billion Corus takeover. It is almost ten times larger than any previous acquisition made by the group or by any Indian company.

2007 - Still operating as Corus Engineering Steels, success is found at the higher end of the market. The South Yorkshire operations are supplying steel for the A380 Airbus, the world's largest passenger aircraft, and Boeing's 787 Dreamliner. Some production staff are moved to Rotherham from Stocksbridge and a new scrap bay commissioned at Aldwarke.

Advertisement

2007 - The site at Stocksbridge suffers from extensive flooding but the loss in output was kept to a minimum.

2008 - As the downturn takes affect, and demand falls, Corus reduces its crude steel production at their main European sites by up to 20%.

2009 - Cost saving initiatives are announced including extensive restructuring at the Rotherham site. Proposals lead to job reductions of around 700 at Aldwarke and 18 at Stocksbridge. The Aldwarke Primary Mill and Finishing Banks, and Large Bloom Caster are earmarked for closure.

2009 - Improved ingot facilities are commissioned at Aldwarke and a service centre opens in Suzhou, China.

2009 - The decline in steel demand in Europe and America continues and another restructure is announced, affecting another 400 jobs in Rotherham.

2010 - Riding the storm, Corus announces plans to recruit 160 new workers in South Yorkshire with 50 to support its manufacturing operation in Rotherham.

2010 - Plans announced to recruit a further 154 new workers for its South Yorkshire manufacturing operations. Apprentice and graduate recruitment resumes.
2010 - Corus sites in Rotherham adopt Tata Steel as its new identity. Tata Steel Speciality Steels is launched.

2010 - The European operations return to profit and Tata restructures some of the massive debt it took on to buy Corus.

2010 - To increase production of aerospace steels, a £6.5m investment plan for new high-tech equipment including two vacuum arc remelting furnaces at Stocksbridge is announced. A move that safeguards 2,000 jobs at Rotherham and Stocksbridge.

2011 - Demand for high value steel continues to increase prompting an increase in production and prices for South Yorkshire-made engineering bar and aerospace products.

2011 - Tata announce a £4.5m investment in South Yorkshire - £3.5m in its Rotherham operations (£2.5m at Aldwarke and £1m at the Thrybergh Bar Mill) to improve plant reliability and energy efficiency, reduce CO2 emissions and boost production of high-value steel products.

2011 - Away from South Yorkshire, Tata mothballs plants in Scunthorpe and Teeside.

2012 - Tata Steel opens a state-of-the-art engineering training centre at its Stocksbridge site as apprentice recruitment continues.

2012 - Low demand across the eurozone and higher raw material costs impact on the economic performance of Tata Steel in Europe. As well as cutting costs, a new strategy is announced to target demanding industries, like automotive, aerospace, mechanical engineering and construction.

2012 - Tata Speciality Steels opens an aerospace service centre in Xi'an, China to serve the growing demand for aerospace materials in the region.

2012 - Another restructure is announced following a significant decline in demand for bar steel products in a number of key markets, including automotive, bright conversion and bright bar. Tata Steel says it will lead to the loss of 135 jobs, including 110 in Rotherham.
2012 - At the same time Tata Steel's bar business is moved to Speciality Steel and a £2.75m investment is announced for the Rotherham operations so it can focus on supplying hi-tech products to advanced manufacturing sectors.

2012 - Tata Steel is announced as a partner in the £22m "Proving Factory" which aims to bridge the gap between small enterprises developing leading edge low carbon technology and large vehicle manufacturers. A centre at Rotherham is proposed.

2012 - Development underway on a new facility for the production of high-purity vacuum induction melted (VIM) steels for the aerospace industry at Stocksbridge.

2013 - National press reports state that Tata is planning to close its R&D site at Swinden Technology Centre in Rotherham.

2013 - Tata is forced to announce a $1.6 billion writedown on its assets, mainly on the European operations that suffered from a market slowdown and rising raw material prices since the Corus acquisition. A "strategic review of its asset portfolio" is underway.

2013 - Tata announces a £45m long-term export agreement to supply aerospace steels to Safran Group. Subsidiaries of which include Messier-Bugatti-Dowty, who chose Rotherham made steel for the landing gear of the Boeing 787 Dreamliner.

2013 - The company confirms it will build a Vacuum Induction Melting (VIM) furnace at Stocksbridge, an investment of £15m.

2013 - Investment in the Billet Mill at Stocksbridge saw two new Profile Gauges installed in the finishing line. A "Scrap Shredder" hammer mill is installed at Aldwarke which takes scrap from another Tata owned company, JLR at Hailwood.
2014 - A funding grant of £8m for R&D is announced but Tata admits that, after initial work takes place at the Swinden Labs site in Rotherham, its R&D operations could relocate to another UK site.

2014 - Financial results show a turnaround with an increase production, sales and overall performance, for its important European operations. Further work is done by the board in India to tackle debts of $7 billion.

2014 - The relocation away from the Swinden Technology Centre in Rotherham, where 150 staff are based, is confirmed as Tata announces a new R&D site at Warwick University. A residential development on the site is on the cards.

2015 - Community's "Stand up for Steel" campaign describes 2015 as "a critical year for the industry" and a strike threat looms after Tata Steel announced their intention to close the British Steel Pension Scheme (BSPS) to future accrual.

2015 - The European operations post a profit of £109.8m, a turnaround from the £16m loss in the previous year but "headwinds" remain in the European steel industry which is hit by an influx of cheap imports. The under-performing Long Products UK business is put up for sale.

2015 - A strike is suspended and the dispute ends after unions vote to accept changes to the pension scheme which will keep the scheme open, ending the prospect of the first steel strike in 30 years.

2015 - Building on the Proving Factory concept, a state-of-the-art Advanced Machining Centre (AMC) opens at Newburgh Precision's site in Rotherham. It enables Tata to work with customers from concept to finished component. A service centre opens in Nagpur, India.

2015 - Tata announces another restructure. The next stage in plans to refocus its speciality and bar business on high-value markets place 720 jobs at risk, around 500 in Rotherham. The bar business was hit by the strong pound and high electricity costs which were more than double those of key European competitors.
2015 - Rotherham hosts a "steel summit" where ministers, steel companies, MPs, unions and trade bodies discuss the challenges facing the global steel industry.

2016 - Funding is secured to support steelworkers under the threat of redundancy as a local taskforce coordinates support. Unions, workers, local MPs and Tata itself continue to call for more support from Government.

2016 - A shock announcement from the Indian-owned steelmaker after it concluded that it is exploring all options for portfolio restructuring including the potential sale of Tata Steel UK, in whole or in parts.

2016 - The Government said it has been working on finding a long-term sustainable future for steel making across the UK, with a significant focus on Tata's blast furnace at Port Talbot. Business minister Anna Soubry visits the South Yorkshire sites.

2016 - Liberty House emerges as a prospective buyer for the UK operations.

2016 - Tata Steel and the Serious Fraud Office (SFO) confirm that a criminal investigation has been launched at Speciality Steels in South Yorkshire after "inappropriate testing and certification procedures" were uncovered.

2016 - Interest is high in hand-picking the South Yorkshire operations from Tata Steel. Seven bids taken forward by the board. Reported suitors include Liberty House, Greybull, who took on assets in Scunthorpe; German giant, ThyssenKrupp; new company, Albion Steel, led by co-founders Dr Rod Beddows and Tony Pedder OBE; Excalibur Steel; India's JSW Steel Ltd; American firm, Nucor; China's Hebei Iron & Steel Group; and turnaround fund, Endless.

2016 - Union man Tom Blenkinsop, Labour MP for Middlesbrough South and East Cleveland, said he believed that Tata Steel may not have "completely left the field" despite putting all of its UK assets up for sale.

2016 - Tata confirms that it will begin a separate process for the potential sale of its Speciality Steels business. The main sale process is stopped whilst discussions take place with thyssenkrupp AG regarding a potential joint venture with a combination of strip products businesses.

2016 - Two bidders come forward for the Speciality Steels sites in South Yorkshire and are given access to due diligence and management meetings.

2016 - International industrials and metals group, Liberty House, confirms it has entered into exclusive negotiations with Tata Steel UK to acquire its Speciality Steels business for a total consideration of £100m.

2016 - An agreement with trade unions is reached and consultation starts with employees on a proposal to close the British Steel Pension Scheme to future accrual.

Advertisement

2017 - The European operations are back in profit - posting £74m of earnings before tax (EBITDA) in the quarter ended December 31 2016. It reported a £90m loss during the same period in 2015.

2017 - Liberty House closes the £100m deal with Tata Steel.

2017 - Changes to the pension scheme are backed by the unions, who also secured a guarantee from Tata that commits Liberty House to honour the new defined contribution pension arrangements.

2017 - Tata officially hands over the South Yorkshire operations to Liberty House, who immediately announce a £20m investment, plans to take on 300 staff and increase production to over one million tonnes per annum at Rotherham where the current output is around 209,000 per year.

Bimlendra Jha, CEO of Tata Steel UK (pictured, right), said: "As a responsible owner, Tata Steel in the last couple of years has undertaken a transformation plan at Speciality Steels, including investing in a state-of-the-art vacuum induction melting furnace, to ensure the business can have a sustainable future.

"We thank the employees, trade unions and management of Speciality Steels for their diligent hard work in the journey to turn around the business in difficult times and we wish them a successful future under new ownership."

Certainly a mixed picture for Tata in South Yorkshire and the debate over the initial 2007 takeover deal are still being had.

Ousted Tata chairman Cyrus Mistry, said last year that: "It is common knowledge that the decision to acquire Corus for over $12 billion, when only a year earlier it was available at less than half that price, was based on one man's ego [Ratan Tata, former chairman of Tata Group] and against the reservations of some board members and senior executives. The overpayment made it harder to invest in the acquired assets which had been neglected, and thereby, placed many jobs at risk."

In response the Tata board said: "The acquisition of Corus Group Plc was based on the long term strategy of the company to pursue growth through international expansion and enhance the portfolio of value added products. The performance of Corus Plc post acquisition validated the strategy till the "black swan" event of the global financial crisis structurally impacted the underlying demand conditions in Europe causing financial hardship to the entire industry."

Whilst it carried significant debt following the deal, Tata Steel still invested £1.5 billion in its UK business since acquiring Corus in 2007. The Rotherham sites have come close a few times to shutting down completely but they are genuinely "world class" and their high value products are in demand.

Tata Steel Europe website
Liberty House website

Images: Tata Steel / Liberty House


↧

News: Rotherham companies to inspire Britain

May 11, 2017, 11:45 pm
$
0
0
Rotherham-based Bluetree Design and Print, Crawshaw plc and Wilsons Carpets have all been named on a report that identifies the fastest-growing and most dynamic SMEs across the UK.

Now in its fourth year, The London Stock Exchange Group's (LSEG's) 1,000 Companies to Inspire Britain has gained real prominence among UK businesses. The annual report identifies the UK's most dynamic SMEs and high growth potential companies across sectors and regions, highlighting the best of British small business. It shows companies growing at 70% per year, up from 50% last year.


Fast-growing print experts, Bluetree Design and Print Ltd moved to bigger Rotherham premises in 2015, taking on new staff. Established in 1989, the firm, previously at Templeborough, has evolved from a traditional screen printer to a predominantly digital offering. It took space at the Ignite @ Magna development in 2007 and in 2012 the business merged with instantprint.co.uk to provide a multi-channel offering.

Funding from Barclays and the Sheffield City Region Growth Fund Programme enabled the company to move to a new 86,900 sq ft site at Brookfields Park in Manvers. Staff numbers have passed the 250 mark.

Last year, instantprint cemented its place in the Sunday Times Virgin Fast Track 100 when it was ranked 88th (3rd in Yorkshire) after seeing its revenue grow by an average of 54% per year over the past three years. It became the first Rotherham-based company to make the list in 2015. instantprint posted sales of £19.9m at the end of April 2016.

The group offers a range of online print products through the instantprint, Bluetree and Route One Print brands. Customers range from sole traders to multinationals and the company claims it prints 450,000 business cards a day.

Advertisement

Crawshaw plc is an AIM-listed fresh meat and food to go retailer based at Hellaby that is undergoing growth plans that will see it invest £200m, opening 200 stores and creating 2,500 jobs.

Results for the full year ended January 29 2017 included turnover up 19% to £44.2m from the £37.1m reported in the previous year. Investing in expansion plans, the group made a loss before tax of £1.4m, an increase on the loss of £0.3m.

The group, which has the former CEO of Lidl in the UK and the former boss of budget chain Poundland on its executive team, recently concluded a deal with that will see 2 Sisters Food Group founder and chief executive, Ranjit Boparan (and connected party), invest approximately £5.1m for a 29.9% stake in Crawshaw, with warrants to acquire a further 20.1% of the Group. The new investment is expected to enable Crawshaw to restart its accelerated new store opening programme, with an initial focus on factory shop locations.
Wilsons Carpets, the flooring retailer, also made the list. Last year plans were submitted for a new purpose built 55,000 sq ft distribution warehouse in Rotherham that would be the foundation for growth and a national roll-out.

Established in 1968, the family firm specialises in carpets, laminate, rugs, vinyl flooring and artificial grass. Headquartered at Houndhill Park, Manvers, it has grown to run 13 stores across Yorkshire and Lincolnshire, with one of the largest now at The Gateway in Parkgate, Rotherham.

Greg Clark, Secretary of State for Business, Energy and Industrial Strategy, said: "I want to congratulate the 1,000 companies from across the UK featured in London Stock Exchange Group’s pioneering 1000 Companies to Inspire Britain report. Championing high growth innovative SMEs is crucial for the continued success of the UK economy and a country that works for everyone. We are committed to ensuring that companies of all sizes can access finance to grow, scale-up and create high quality well-paid jobs across the country."

Xavier Rolet, CEO, London Stock Exchange Group, added: "Four years on, LSEG's "1,000 Companies to Inspire Britain" report continues to highlight the dynamic, entrepreneurial and ambitious businesses across the country that are boosting UK productivity, driving economic growth and creating jobs. The strength and diversity of these companies is readily apparent with a broad mix of UK regions and sectors represented. These companies are the very heart of an "anti-fragile" economy: more robust; more flexible and less prone to boom and bust. We must ensure we continue doing all we can to support high growth potential businesses like these.

"London Stock Exchange Group is fully committed to supporting and implementing initiatives which improve access to and cut the cost of finance for growing companies. We welcome the Government's focus on supporting SMEs as part of its Industrial Strategy and await the outcome of its review into long-term patient capital."

Bluetree website
Crawshaw website
LSEG website

Images: LSEG / Crawshaw


↧
↧

News: £550m pension payment proposal from Tata Steel

May 16, 2017, 11:35 pm
$
0
0
Tata Steel has put forward proposals to pay £550m so it can move forward following the closure of the British Steel Pension Scheme (BSPS).

Last year, the Government launched a consultation on changes to the pension scheme - the huge pension liability with a deficit of £700m reported at the time - that was seen as a deal-breaker for prospective buyers of Tata Steel's UK assets.

The consultation followed intense discussions between Tata Steel, the UK government, the pension scheme trustees and regulators to find the best option for members of the scheme.

The scheme has assets of around £15 billion and 130,000 members, around two thirds of which are pensioners.

Earlier this year, the trustee warned that if Tata Steel UK (TSUK) could no longer access additional capital from the wider Tata Steel Group for continuation of business, then the trustee would have to adopt more risk-averse investment policies that are expected to produce lower investment returns. This could have led to a deficit of between £1 billion and £2 billion. In January, TSUK confirmed that, given its current and projected performance, it does not expect to be able to pay the contributions required to close this deficit.

Union members at Tata Steel sites in the UK, including in South Yorkshire, voted to accept a proposal to close the BSPS to future accrual and now the Indian-owned steelmaker has announced that it has agreed terms for an arrangement that would separate the scheme from Tata Steel.

Advertisement

Working with the trustees, The Pensions Regulator and the Pension Protection Fund (PPF), Tata is hoping to secure a Regulated Apportionment Arrangement - a statutory mechanism which allows a company to free itself from its financial obligations to a pension scheme in order to avoid insolvency.

As part of the arrangement, Tata has agreed to pay £550m to the BSPS and BSPS is being given a 33% equity stake in Tata Steel UK (TSUK).

All members and pensioners of the BSPS would be offered an option either to transfer to a new pension scheme sponsored by Tata Steel offering modified benefits, or to remain in the BSPS and so receive PPF compensation.

The PPF is the safety net that provides compensation to members of eligible defined benefit pension schemes when things go wrong.

Trade unions also secured a guarantee from Tata that commits Liberty House, the new owner of the former Tata Speciality Steel sites in South Yorkshire, to honour the new defined contribution pension arrangements. This means that under the new owner, union members in Speciality Steels would be entitled to the same pension arrangements as members in Tata Steel UK, with employer contributions of up to 10%.

Allan Johnston, BSPS Trustee Chairman, said: "I am pleased that agreement in principle has been reached with TSUK about sponsorship of a modified pension scheme subject to qualifying conditions.

"Although the PPF is an important safeguard for pension schemes generally, the Trustee believes that the BSPS has sufficient assets to offer members the potential for better outcomes by enabling them to transfer to another scheme offering modified benefits. For most Scheme members, these modified benefits are expected to be of greater value than those they would otherwise receive by transferring into the PPF."

Tata Steel also reported its latest financial figures for the year ended March 31 2017. In Europe, EBITDA (earnings before tax) was £536m, compared to the loss of £52m in the previous year. The steelmaker said that this was due to "stronger market conditions, currency tailwinds, restructuring of UK operations as well as the ongoing improvement programmes, including the supply chain transformation programme which went live during the year."

During the period, Tata Steel completed the sale of its Speciality Steels business for a total consideration of £100m to Liberty House.

Tata Steel website

Images: Tata Steel


↧

News: Harworth Group looks for new chair

May 23, 2017, 11:42 pm
$
0
0
Jonson Cox, the man who lead UK Coal plc through its 2012 complex restructuring, is set to step down from his role as non-executive chairman at Harworth Group plc next year.

Cox, who has held roles at the Royal Dutch Shell Group, Kelda Group plc and Anglian Water Group plc, announced his intention to stand down in 2018 before the group's AGM. Scheduled to take place at the Advanced Manufacturing Park (AMP) in Rotherham this morning, the meeting will be last time he will stand for election.

Recovery plans for UK Coal were put in place in May 2011 after they reported a pre-tax loss of £124.6m after a "further year of poor operational performance." The restructure created two separate businesses comprising the mining division and property division.

Listed on the London Stock Exchange, the company, renamed Coalfield Resources plc, saw administrators called in for its struggling mining division, and a deal followed for it to completely acquire the property division for £150m. It is Harworth Group plc that remains trading on the stock market as one of the largest property and regeneration companies across the North of England and the Midlands.

Advertisement

Lisa Clement, senior independent director at Harworth Group plc, said: "Jonson has served Harworth for seven years. These seven years have seen Harworth, or UK Coal plc as it was then known, evolve from a near-insolvent, over leveraged mining business with a capital constrained and non-performing property portfolio to a successful, ambitious and growing property company, delivering an annual double-digit return over the past four years.

"On behalf of the Board and all of our employees, I thank Jonson enormously for his significant contribution to the Company and leadership during this time."

The group, which is based close to its own flagship development at Waverley and owns and manages a portfolio of approximately 22,000 acres of land over 140 sites, said that the process to identify a suitable successor is underway. It is also expected to use the AGM to report that it continues to make strong progress in the first five months of 2017.

In March, the specialist in brownfield regeneration, raised £27.8m to accelerate growth of strategic land bank. It has created a number of joint ventures to bring forward development on its own land and is pursuing option agreements to acquire strategic land sites.

For the year ending December 31 2016, Harworth saw operating profit hit £45.8m, compared to £37.9m at the same time last year. Profit from operations was up to £2.2m from the £1.5m posted in 2015.

Harworth Group website

Images: Harworth Group


↧

News: Crawshaw making progress on transitional plans

June 27, 2017, 11:43 pm
$
0
0
Rotherham-based Crawshaw Group PLC, the fresh meat and food to go retailer, said that it was making good progress following the transformational deal with the 2 Sisters Food Group.

The AIM-listed Hellaby firm announced growth plans in 2015 that included £200m of investment, opening 200 stores and creating 2,500 jobs. It secured new investment in April this year that is expected to enable Crawshaw to restart its accelerated new store opening programme, with an initial focus on factory shop locations.

In April, heads of terms were agreed on a deal for 2 Sisters Food Group founder and chief executive, Ranjit Boparan (and connected party), to invest approximately £5.1m for a 29.9% stake in Crawshaw, with warrants to acquire a further 20.1% of the Group.

The deal, which saw Boparan become an advisor to the Crawshaw Board, also includes an initial three-year supply agreement for Crawshaw to acquire fresh meat and other products from 2 Sisters, one of Europe's largest meat and food producers.

At this afternoon's AGM of Crawshaw Group Plc, Noel Collett, will give a trading and strategic update for the 20 weeks trading to June 18 2017 in the current financial year.

Advertisement

Following the 2 Sisters deal, Crawshaw said it was "making good progress on the transitional plans and operational synergies that will deliver the expected customer and financial benefits."

Group sales were up 5.1% for the first 20 weeks of the financial year with like-for-like sales down 4.5% for the same period. The trading performance of the business continues to be stable following the improvement in like-for-like sales from the initiatives introduced throughout the estate.

Three factory shops have recently opened and plans are in place to open a further four new shops of this type in the balance of the current financial year from a strong pipeline of potential sites.

Noel Collett, chief executive officer at Crawshaw, said: "We are pleased with the progress we've made and the continued level of stability achieved in the core business against the current backdrop of industry-wide cost pressures and a challenging consumer environment.

"Our new fresh meat factory shops continue to perform well and we are further encouraged by our most recent opening at Crystal Peaks, Sheffield. Our strategic focus for the rest of this year will be to open four more fresh meat factory shops and to ensure that we are maximising the customer and financial benefits of the new supply partnership across the estate."

Operating from 49 stores, turnover for the full year ended January 29 2017 was up 19% at Crawshaw to £44.2m from the £37.1m reported in the previous year. Investing in expansion plans, the group made a loss before tax of £1.4m, an increase on the loss of £0.3m in the previous year.

The group is expecting its cost management measures and margin additive initiatives, together with the expected cost reduction in business rates, to offset a challenging UK consumer outlook.

Crawshaw website

Images: Crawshaw plc


↧
Viewing all 777 articles
Browse latest View live
Search