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Supermarket group Morrisons has announced plans to shutter a loss-making bakery, putting nearly 400 jobs at risk. The Bradford-based retailer is considering closing Rathbones after unsuccessful attempts to steer the business back into profitability. Acquired by Morrisons from administration in 2005, Rathbones has been operating at a loss for several years. In its most recent financial report, for the year ending October 2023, the bakery recorded a pre-tax loss of £3.6m on a turnover of £70.5m, as reported by City AM. Since 2021, Morrisons has been under the ownership of US private equity firm Clayton, Dubilier & Rice. A spokesperson for Morrisons said: “We acquired Rathbones from administration in 2005. After a period of growth and investment, the business has been loss making for a number of years. “Although we have tried several routes to return the business to profitability, none have been successful.” The group said that over the last few months it had carried out “a thorough review of the options” for the future of the bakery. Morrisons’ website says the Wakefield bakery produces products including hot cross buns, seeded loaves, crumpets, pancakes, pittas and “our famous Rathbones Toastie”. It said: “This has led us to consider the possibility of closing the site. However, we are considering all alternative options, and want to work with our partner union BFAWU, together with employee representatives, on how we could change our current business model and safeguard as many jobs as possible. “The current proposals do unfortunately mean that colleagues at the site are at risk of redundancy and we will do everything we can to help those colleagues affected, including investigating whether there are any other suitable roles elsewhere in the group.” Morrisons said its in-store Market Street bakeries were unaffected by the news. The Morrisons news follows an earlier announcement from Asda detailing its intention to shed 500 roles at its head office while also mandating staff to return to the office for three days a week. Like this story? Why not sign up here for free to get the latest business news straight to your inbox. Original artice – https://business-live.co.uk/all-about/yorkshire-humber

Hull safety specialist Arco says it has returned to profit after its turnaround plan started to make progress. The Hull-based safety products and services provider has issued unaudited results for the year ended June 30, which it says show a profit increase of £4.4m, having chalked up a pre-tax profit of £1.3m, compared with a pre-tax loss of £3.1m in its 2023 financials. It says the turnaround was achieved despite a 6% drop in sales, with the company focussing on quality of earnings and gross profit margin to achieve its highest gross profit margin in five years, at 23.9%. Arco ended the year with a strong net cash position of £3.5m. Guy Bruce, chief executive of Arco, said the results demonstrated the effectiveness of its ‘Destination 2030’ transformation programme, which aims to boost profitability and improvements in areas including customer service, sustainability and business efficiency. The firm said that during the 2024 financial year it improved customer experience through better service metrics and product availability, using data-driven decisions to improve margins. It also said it made more efficient use of capital, resulting in its stronger cash position. Arco said it has also strengthened its supplier relationships, working more closely with fewer suppliers. The company’s saw £38.5m of social value generated in FY24, with more than £4m generated in projects in Hull and East Yorkshire. Arco employees also supported community and charity organisations with biodiversity, environmental and other projects, using the two paid volunteering days the business allows them to take each year. Looking ahead, Mr Guy said Arco is moving into its ‘Build for Growth’ phase, in which it plans to double investment and enhance its customer value propositions, website and e-commerce capabilities. Work will also soon start on the Arco Discovery Centre in Hull, which will showcase the company’s strengths, alongside its range of products and services and its product assurance laboratory. The company is planning further investment in its Arco Professional Safety Services business, while exploring potential acquisitions of businesses that would make suitable additions. He said: “One year into our Destination 2030 plan, we have delivered much of what we set out to do in the initial ‘Fix the Foundations’ phase, with financial results ahead of target. Arco today is a stronger and more disciplined business than it was a year ago, with improved margins, a healthier cash position and extended capabilities to serve customers effectively as we execute the next phase, ‘Build for Growth’. “Focus areas for potential acquisitions have been identified and we’re excited to explore opportunities that present a strong match to those criteria. We are excited about the progress we will make towards long-term growth this year, and the continued development of an even stronger Arco business.” Original artice – https://business-live.co.uk/all-about/yorkshire-humber

British Steel has inaugurated a £10m rail stocking facility at its Scunthorpe site, which willbe the largest of its kind in the UK. As the nation’s sole manufacturer of rail, the new hub is strategically located where the majority of the UK’s rail is produced. This move aligns with British Steel’s strategy to bolster the supply of rails to Network Rail, ensuring stock availability on demand. Craig Harvey, British Steel’s Commercial Director, Rail, commented: “We are committed to building the railways of the future, and this investment supports the government’s ambition to improve rail travel and connectivity throughout the UK.” He further highlighted the significance of their partnership with Network Rail, stating: “It will also enhance our long-term strategic partnership with Network Rail – a partnership which helps millions of UK passengers and freight operators enjoy safe, enjoyable, and timely journeys. Together we have an integral role to play in strengthening the UK’s infrastructure, enabling development, and supporting hundreds of businesses and thousands of jobs in the supply chain.” Mr Harvey also noted the ongoing investments by British Steel’s owner, Jingye, saying: “The new facility is the latest in a series of major investments in British Steel by our owner, Jingye, which is resolute in its commitment to enhancing our operations and helping us build a sustainable future for our business.”, reports Grimsby Live. He concluded by expressing pride in British Steel’s status as a global leader in rail production and innovation, asserting that ventures like this ensure the company continues to deliver top-tier products and services. The Scunthorpe facility, equipped with 11 multi-gantry hoists to lift finished rail stock to customer rolling stock, is poised to dispatch rails that have passed stringent testing and quality assurance checks for immediate provisioning or to be welded into 216m lengths. Network Rail’s supply chains operations director, Julia Territt, affirmed the long-standing partnership with British Steel, saying: “We have a long running relationship with British Steel, who support the delivery of our track maintenance, renewal and enhancement activities,” and adding, “Our focus remains on ensuring that we have continued delivery of rail supply, now and into the future, so that we can continue delivering reliable services for our passengers. We’re pleased to see the ongoing commitment to supporting the UK rail network with the investment in the new facilities in Scunthorpe.” With capacity for about 25,000 tonnes of 108m finished rail, predominately comprising 56E1 and 60E2 section rails, the storage site will bolster rail infrastructure provision. Mr Harvey commented on the enhanced capabilities, asserting: “British Steel combines dedicated customer service with world-class design and technical consultancy to develop and deliver high-quality rail solutions. Our new stocking facility will help us build upon this, and we look forward to continuing to work with operators, in the UK and globally, to help them overcome the challenges they face.” Earlier this year, British Steel’s Scunthorpe rail facilities secured a lucrative contract to supply rail for a major new rail line in Egypt. In May, British Steel also received planning permission for a 50m long by 12m wide steel rail service building on Mill Field Road, which will facilitate light servicing and inspection of rail wagons under shelter. Raw materials have been procured to ensure the operation of British Steel’s coke blast furnaces until 2025, contradicting reports that production would cease this year. Planning permission has also been granted for British Steel to transition to an electric arc furnace (EAF) at its Scunthorpe site in the future. Original artice – https://business-live.co.uk/all-about/yorkshire-humber

Britvic has soared to new heights this year, propelled by a shift towards healthier drinking habits, as it stands on the cusp of being acquired by Carlsberg. This morning, Britvic announced to the markets that its revenue for the year ending September 30 climbed by 9.5% to £1.89bn. The company’s adjusted earnings before interest and tax (EBIT) surged by 15.2% to £250.9m, while the EBIT margin expanded by 60 basis points to 13.2%. Profit after tax at Britvic edged up by 1.8% to £125.8m, and adjusted earnings per share ascended to 69.5p, marking an uplift of 13.9%. Emerging brands, including the plant-based milk and shots brand Plenish, witnessed an average growth spurt of 52.1% over the year, with overall brand revenues increasing by an average of 5.5%, as reported by City AM. Britvic emphasised its “continued focus on healthier people” through the provision of “great-tasting low-calories drinks”. In the UK, there’s been a notable pivot towards non-alcoholic beverages such as Britvic’s own J20, especially among younger consumers. The firm also reported robust performance in Brazil, where both established and newly acquired brands enjoyed substantial double-digit revenue growth. Chief executive Simon Litherland commented: “We have delivered another excellent financial performance this year, with strong growth across our markets and portfolio of market-leading brands.” “We have also continued to ensure the business is fit for the future, adding more capacity, investing in our people and significantly increasing investment in marketing and innovation.” “Subject to approval from the regulatory authorities, we anticipate that the acquisition by Carlsberg will complete in the first quarter of 2025. I am confident that the prospects for our brands and people are extremely positive, and I look forward to them going from strength to strength.” In a bold move into the UK’s non-alcoholic drinks market, Danish brewing behemoth Carlsberg agreed to snap up the British soft drinks manufacturer for a hefty £3.3bn back in July. The deal has led to a £21.3m charge for the company as it prepares for the transition. Britvic’s shares have soared over 50% since the start of the year, with a notable jump following the acquisition announcement. This year, Britvic has been pouring money into its operations, including a £25m investment to enhance its national distribution centre in Lutterworth, Leicestershire, and setting up a new canning line to bring more production in-house. Britvic also has factories in Rugby, London and Leeds, with its headquarters in Hemel Hempstead and other centres in Lutterworth, Solihull and Tamworth. Like this story? Why not sign up here for free to get the latest business news straight to your inbox. Original artice – https://business-live.co.uk/all-about/yorkshire-humber

Administrators have been called in to three companies operating under the Camstead Homes name, leading to the loss of 20 jobs. Bosses at Camstead Limited, Scotfield Group Limited and Yelcon Limited are said to have worked to address cash flow issues and pressure from suppliers, brought on by “sustained trading difficulties”. But administrators from Interpath say no solvent solution was possible, leading to their appointment. Work across Camstead’s three current developments, Blackberry Walk in Derwenthorpe, Tailors Green in Shepley and The Heath in Adel, has been paused as a result. Two members of staff have been retained to help joint administrators James Clark and Howard Smith in their handling of the sites. Camstead specialised in desirable properties in prime and rural locations and said it had a portfolio of more than 4,000 homes. Its sites span Yorkshire, Lincolnshire, Rutland, Leicestershire, Hertfordshire, Cambridgeshire, Middlesex, Bedfordshire and Essex. James Clark, managing director at Interpath and joint administrator, said: “2024 has been another challenging year for the building and construction industry, with housebuilders continuing to battle with the impact of rising raw material costs, wafer-thin margins and the impact of high interest rates and rising mortgage costs on consumers. While the Government’s planning reforms have given hope to many across the industry, unfortunately, the trading difficulties encountered by Camstead Homes proved too challenging to overcome.” Mr Clark added: “We appreciate news of the administration will cause a great deal of concern for those homeowners and residents of sites where development work remains under way. Our immediate priority is to work with key stakeholders to find alternative solutions which may enable work across these sites to be completed. “In particular, we will be working with our appointed agents to market the Blackberry Walk site at Derwenthorpe. We are hopeful for significant interest from this process and would encourage parties interested in acquiring this site to make contact with us and our appointed agents, Watling Real Estate, at the earliest opportunity.” Original artice – https://business-live.co.uk/all-about/yorkshire-humber

Baby goods firm Mamas and Papas has toasted a record-breaking year with sales topping £150m. The Huddersfield business designs, wholesales and retails stylish pushchairs, nursery, maternity and children’s clothing ranges to for the nursery market both in the UK and overseas. Now Stork Beta Ltd – the parent company for the Mamas and Papas Group – has published accounts for the year ending March 31 2024, showing a 7.1% jump in turnover to £154.3m as well as continued growth in its market share. Despite a number of economic challenges, the company’s adjusted Ebitda was £13.2m, up from £10.4m, which bosses said reflected strong like-for-like UK sales growth, new openings and and new partner growth within its international wholesale channel, as well as strong cost control. Operating profit, meanwhile, dipped from £8.4m to £7.1m and overall profit for the period was £3.8m, down from £5.3m. Staff numbers increased in the period, from 539 employees to 586. A report within the accounts highlighted strong retail sales, which were 14% ahead of the prior year with sales in concession stores growing by 48% as it opened a further six concessions and benefitted from the full year impact of 15 openings the year before, which performed very well. Its total wholesale business also saw sales increase to £108.1m from £105.8m. The report said: “Despite the external economic headwinds, the business has had a record-breaking year with sales increasing by 7.1% to £154.3m for the year. The roll-out of concessions continues to be a key feature of the group’s strategy, leveraging existing relationships with Next and M&S. Our own stores also benefitted from strong footfall on retail parks. UK stores remain the largest part of the business and there is continued focus on store profitability, as well as having a flexible lease portfolio and attractive rents. “Our digital business also performed very well growing sales by 4.8%, with an increase in customer acquisition and website traffic. There is continued focus on improving the digital experience for our customer through investment in site enhancements.” Last year saw the firm seal agreements to open up partnerships with retailers in South East Asia, adding to partnerships in Spain and its growing presence in Germany, France, Spain and Italy through Amazon. The report highlighted how a decline in the Middle East and planned decline in other territories was offset by the business focusing on new key markets and partners. It added: “In the UK, increased investments have been made with key partners to support the Mamas & Papas brand and consistency in this channel. A feature of our international business was the roll-out of our ‘shop in shop’ concept with a key retail partner in Spain, as well as landing some new partnerships in Asia.” Original artice – https://business-live.co.uk/all-about/yorkshire-humber

Evri has reported a record-breaking number of parcel deliveries in 2023/24, as the UK’s appetite for online shopping surged. The firm distributed a whopping 730 million parcels to British homes in the year leading up to March, marking a 14.9 per cent increase from the previous year, as reported by City AM. This spike in demand saw Evri rake in record pre-tax earnings (EBITDA) of £292m, a near third increase on the preceding year, following a £32m investment in operational and customer service sectors. Revenue also climbed by 15.2 per cent to reach £1.7bn. Martijn de Lange, chief executive of Evri, attributed this growth to changing consumer habits: “The growth of online marketplaces including value-led market entrants and the rising popularity of pre-loved fashion, which shoppers see as an affordable and sustainable option, have reshaped shopping habits,”. He added, “Our differentiated, flexible business model and focus on service means the business is well placed to take advantage of new consumer trends, such as these.” This news follows Apollo Global Management’s acquisition of Evri, formerly known as Hermes, for £2.7bn in July, taking it off the hands of its former private equity backers Advent International. The UK delivery market, traditionally dominated by Royal Mail, has seen fierce competition in recent years, largely due to the rise in online shopping. In addition, Evri has unveiled plans to recruit 8,000 new staff over the summer, along with around 1,000 warehouse and other supporting roles. “This unique model together with the business’ track record of growth, and progress in executing our ambitious business plan were key factors that attracted Apollo Funds to acquire Evri in August,” de Lange added. “We are confident of further success under our new owner, who is committed to accelerating our growth strategy.” Like this story? Why not sign up to get the latest business news straight to your inbox. Original artice – https://business-live.co.uk/all-about/yorkshire-humber

The big cities of the North saw a boost in office take-up levels in Q3 as appetite for “best in class” space continues to grow, the latest data from Avison Young has revealed – though there are still fears about levels of Grade A stock. The advisory firm’s latest Big Nine report showed Manchester secured two out of the top five largest city centre office deals outside of London in Q3, with BNY Mellon’s 196,443 sq ft lease at 4 Angel Square and ARM’s 68,860 sq ft lease at the landmark No.1 Michael’s. The report showed Manchester also saw the greatest asset transaction volumes, accounting for 37% of the whole Big Nine. In the out-of-town market, the North East landed the largest letting, with Spire Healthcare Limited taking 30,783 sq ft at Spectrum 7, Seaham. NG Bailey’s 25,230 sq ft deal at Arlington Business Centre, White Rose Park, Leeds, was the third largest. Avison Young said Liverpool also had a positive quarter, with lettings totalling 76,839 sq ft – up 108% on Q2. It said that in Manchester and Liverpool, the leading drivers of demand over the past year have been professional services, financial services, TMT and creative sectors. The markets in Leeds and Newcastle were driven by professional services and Government, with manufacturing and industry also strong in Newcastle. Chris Cheap, principal and managing director of transactions at Avison Young, said: “It’s encouraging to see our Northern cities performing well and having one of their collectively strongest quarters in recent years. BNY Mellon’s acquisition in Manchester represented the largest deal in the city since 2020, demonstrating that there is a real appetite for best-in-class office space and businesses are happy to invest if the quality is right. “The office markets across Leeds, Liverpool, Manchester and Newcastle are very different but one thing appears to be a consistent challenge across them all – the shortage of Grade A stock. Developers remain cautious, with borrowing and construction costs still high and limited downward pressure on yields. Supply across regional markets in the short to medium term will be restricted without public sector intervention or significant market shift. “Based on schemes currently under construction, we expect to see supply shortages in 2025, which will place additional upward pressure on prime rents. We may need to see a significant alteration in approach going forward, with developers setting an ‘entry price’ for new stock based on the mechanics of an appraisal, rather than rental tones which aren’t keeping pace with the needs of the occupational market and the cost of meeting them.” The key regional statistics The cities covered in Avison Young’s Big Nine report include: Bristol, Birmingham, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, Manchester and Newcastle. In Manchester Q3 take-up reached 632,088 sq ft, – the highest quarterly figures since 2019, 8% above the 10-year Q3 average and 25% higher than the previous quarter. Avision Young said Q3 take-up was stronger in the city centre market which was 31% above the 10-year Q3 average, while the out of town market was 22% below average. Key deals in the quarter included: BNY Mellon’s 196,443 sq ft lease at NOMA, 4 Angel Square ARM’s 68,860 sq ft lease at No.1 Michael’s Teleperformance’s 23,065 sq ft lease at the Bond The prime rent remained unchanged quarter-on-quarter at £44 per sq ft. In Newcastle and the North East, take-up totalled 186,595 sq ft, 71% above the Q2 figure and 3% below the 10-year Q3 average. City centre leasing was 18% below the 10-year average whereas out-of-town was 3% above. Key deals of the quarter included: Spire Healthcare’s 30,783 sq ft lease at Spectrum 7 LNER’s leasing of 16,454 at 1 St James Gate Cundall Johnston & Partners LLP’s 10,161 lease at Bank House Prime rents remained unchanged at £32 per sq ft. Liverpool’s Q3 take-up totalled 76,839 sq ft, 48% down on the 10-year Q3 average and double the previous quarter’s figure. The Big Nine report showed city centre take-up was 39% below the long-term average, whereas out-of-town take-up was 57% below. Key deals of the quarter included: The Home Office’s 24,672 sq ft lease at The Capital Building Mitchell Charlesworth’s 11,103 sq ft lease at The Plaza Acorn Insurance’s 7,932 sq ft lease at Edward Pavilion The city’s prime rent remained unchanged at £28.50 per sq ft. In Leeds, Q3 take-up reached 259,265 sq ft, 77% above the previous quarter’s figure and only 4% below the 10-year average. The report showed city centre leasing was 16% lower than the 10-year average, whereas out-of-town was 39% above. Some 40% of Leeds’s office take-up was for Grade A buildings up on 21% in Q2 2024. Key deals included: NG Bailey’s 25,230 sq ft lease at the Arlington Business Centre University of Law’s leasing of 15,241 at Yorkshire House Wizu Workplace’s 13,860 sq ft lease at One Embankment Prime rent rose 2.6% quarter-on-quarter to £39.00 per sq ft. Like this story? Why not sign up here for free to get the latest business news straight to your inbox. Original artice – https://business-live.co.uk/all-about/yorkshire-humber

Confidence among house buyers continued to be depressed throughout autumn, low cost housebuilder MJ Gleeson has said. The Sheffield-based developer told investors that a “lack of conviction in the market continued through the autumn” but that it hoped the Bank of England’s decision to lower the base rate last week would boost buyer confidence going into the key spring selling season. Ahead of the firm’s annual general meeting, Gleeson bosses said net reservation rates for the period between the beginning of July and the beginning of November increased 0.56 per site, per week. That was up from 0.45 per site during the same period of 2023. They said a programme of new site openings was now under way, with seven already launched during the current 2025 financial year. It expects to open a total of 27 sales sites in that period, a marked increased on the four opened in its 2024 financial year, but noted that it will be selling on a lower average number of sites overall compared with last year. Beyond this year, Gleeson hopes to open a net 10 new sales sites per year. It said: “As the wider market improves, we remain confident in Gleeson Homes’ ability to fulfil this ambitious programme of site openings which will drive the exciting sector-leading growth planned for FY2026 and beyond.” But bosses noted that more use of sales incentives, in the face of lower confidence, had put pressure on margins, as had the impact of multi-unit sales, inflated building costs and only “limited relief” from increased selling prices. Across its land division, Gleeson said it was promoting “several exciting opportunities” and that the prospect of Government reform to the National Planning Policy Framework is expected to benefit the timing of some of its sites. It noted strong demand for land with permissions from large and medium-sized developers – spurring confidence that the division will deliver full year results ahead of last year. The wider housing market showed signs of strengthening in October, according to research from the Royal Institution of Chartered Surveyors (RICS). Surveyors said buyer activity was picking up with a net balance of 16% of property professionals reporting house prices rising rather than falling. Yorkshire and the Humber, and the South West of England were the only parts of the UK where property professionals reported seeing prices fall overall. Original artice – https://business-live.co.uk/all-about/yorkshire-humber

Jobs have been saved after a Grimsby seafood supplier which collapsed with debts of £1.5m was sold to new owners. D&A Seafood Solutions Ltd has been sold to Ramus (Grimsby) Ltd in a pre-pack deal worth £65,000, documents show, after efforts to continue trading through a corporate voluntary arrangement (CVA) failed. Business advisory firm Quantuma – which also acted for the firm during its CVA – secured the future of D&A Seafood Solutions Ltd and its 32 staff following the sale to Ramus, a fellow Grimsby supplier of premium quality, fresh fish and seafood. Quantuma managing directors Sean Bucknall and Elias Paourou were appointed as joint administrators of D&A Seafood Solutions on October 31, and documents filed at Companies House outline the chain of events that led to their appointment. An estimated financial position document for D&A Seafood Solutions shows debts of £1.5m, with 33 creditors. £401,000 of that sum is estimated to be owed to HMRC and more than £16,000 is owed to utilities company Northern Power. The document shows that the firm has been sold for £65,000 – £5,000 on completion and the rest to be paid over the next eight months. The report says the company was initially based in Wembley, London, and saw early success in supplying pre-packaged fish and seafood to wholesalers and retailers. When it outgrew its base in 2017, the company moved to Grimsby fish docks, with the staff moving with the business. However, at the end of 2017 the business hit extreme hardship when one of its major customers went into liquidation, forcing it to refinance twice, in 2018 and 2019 to give it the leverage it needed to move forward. In May 2019 the company was merged with Ramus Seafood Ltd, a premium seafood supplier to retailers which was owned by a private equity house, and the ownership structure was moved to MBR Group. Over the last two years D&A Seafood Solutions has endured a number of challenges, the report says, including significant price increases on raw materials, packaging, utilities and waste. The company had previously tried to resolve financial difficulty by re-financing assets and entering into a time to pay arrangement with HMRC “however, this had a detrimental impact on the company’s cashflow”. A CVA plan was accepted but the company couldn’t maintain the monthly contributions due under the agreement, triggering the administration. A spokesman for Quantuma said: “D&A Seafood Solutions operates from a site in Grimsby Fish Docks, Lincolnshire and is a supplier of fish and seafood to retailers, restaurants, hotels and caterers from its British Retail Consortium (BRC) accredited site. The sale provides clarity and job security for 32 members of staff. The purchaser has taken on the D&A Seafood Solutions site in Grimsby and all employees were transferred to the purchaser under TUPE regulations. “Founded in 2015, D&A Seafood Solutions reported turnover of circa £4.5m in 2023, but due to a series of challenging circumstances, the business entered into a CVA in April 2024. Unfortunately, the CVA was ultimately not viable and failed, and another solution was then required for the company and creditors, which led to the company subsequently entering into administration.” Original artice – https://business-live.co.uk/all-about/yorkshire-humber