What's Going On in Yorkshire
Yorkshire based Orchard principal Claire Dibb asks the question “Is it really “Grim Oop North?”, or does the Yorkshire Region appear to be recovering from the last couple of years?
From my own experience in meeting various size businesses across different sectors in 2010, there appears to be a mood of cautious optimism, with firms now looking to become less inwardly-focused and more focused on strategies for growth.
If you look at some of the recent business news for Yorkshire, large deals are being done and the region is benefitting from new funding initiatives aimed at the SME market.
In fact, Yorkshire was among 3 regions to record an increase in the number of deals from Q4 2009 to Q1 2010. According to Experian Corpfin’s Q1 League Tables, the region saw a 28% rise in deal activity, whereas overall there was an 18% decline in activity.
Amongst the latest deals, law firm Hammonds advised on a £100M acquisition of vehicle parts distributor Andrew Page, and also advised private equity firm LDC on its £56M management buyout of JHP Group, an education provider. EMIS, a healthcare IT firm has floated on AIM and will be valued at £175M – brokered by Evolution Securities. Furniture retailer DFS, founded in Yorkshire, has been sold for around £500M to private equity firm Advent International, who plan to expand the business following the acquisition.
A cash-rich Indian family group are planning to invest £75M in Yorkshire and the North East, predominantly in the manufacturing and industrial sectors.
From a funding perspective, Finance-Yorkshire was launched in March, and is a £90M fund aimed at helping businesses across Yorkshire and Humberside with loans ranging from £15k to £2M.
So, what about the economy?
BDO’s 2010 Yorkshire Report claims that the recession hit Yorkshire hard, with the region’s top 150 businesses suffering a 91% drop in profits last year. However, the picture is not all negative. 109 of the top 150 businesses remained profitable, and 42% of those actually increased profits. The food sector, extremely important for the region, saw profits rise 8%.
The report indicates that due to the mix of businesses and industries in the region, risk is widely spread and we should see the top 150 businesses come through in a relatively tough position and rebuild.
Regional property investment was also up in Q1 by over 40%, and demand continues to increase in the retail and office sectors.
The rise in private sector employment in April in Yorkshire and Humberside was the first since April 2008.
So, let’s hope that predictions are correct and that the region is well placed for recovery.
Clearly businesses are now looking to grow and expand in this region, and many have already taken the right actions to put themselves in a good position to maximise their chances of success. However recovery is a risky time and it is important that they are not afraid to seek advice and expertise to assist with their growth and recovery strategies.
Claire Dibb is leading Orchard’s expansion into Yorkshire and Humberside, and would be delighted to assist businesses from the region. She can be contacted on claired@orchardgrowth.com, or called on 07775 821868.
Data taken from TheBusinessdesk.com and YorkshireBusinessInsider.com
Image taken from Tom Curtis: http://www.freedigitalphotos.net/images/view_photog.php?photogid=172
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