News: Rotherham firms flying the flag

Leading Rotherham companies are amongst the mid-market firms that are driving growth in the region, according to the Yorkshire Report 2016, published by accountancy and business advisory firm BDO LLP.

Illustrating trends in the financial performance of selected companies, the report highlights that mid-market companies in Yorkshire created 21,000 new jobs last year. Turnover was up 4% to £106.2bn compared to 6.9% the previous year but overseas turnover saw a worrying 11% drop compared to a 7.7% increase the previous year. Operating profits were up 8% to £4.8bn.

The report analyses the financial performance of the top 250 companies by turnover in the Yorkshire region. Analysis is split between the 50 largest organisations and the next 200 mid-market businesses.

Mid-market companies are driving the growth in the region with the top 200 companies vastly outperforming the largest 50 firms. Their profitability soared by 200% to £861m, based on a 10% increase to £24.4bn in turnover. The top 50 managed just a 2% increase in turnover.

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Jason Whitworth, M&A partner at BDO in Yorkshire, described the mid-market firms as "Yorkshire's unsung heroes." He added: "Whilst there are many bright spots for businesses, there's no denying we continue to face challenging and uncertain times. However, businesses should not allow this to curb their ambitions and we should all pull together to grasp today's opportunities that could deliver significant growth in the future.

"What emerges from this year's Yorkshire Report is a picture of a bustling ecosystem that is well placed to take advantage of the opportunities presented by devolution. However the challenge remains that both politicians and business leaders need to unite to ensure that those opportunities are not missed, so that the region can continue to play its part in the Northern Powerhouse."

50 of the 250 where from South Yorkshire, which had a collective operating profit of £479m.

Rotherham firms in the Top 250:

- A.E.S. Engineering Limited, the parent company of award-winning Templeborough manufacturer, AESSEAL
- AMG Superalloys UK Limited, hi-spec metals manufacturer formerly known as London & Scandinavian Metallurgical Co Limited (LSM)
- ASD Limited, leading lighting manufacturer based on Barbot Hall Industrial Estate
- Falcon Capital Investments Limited, an investor and operator of care homes with a turnover of £61.8m, registered to an address in Masbrough
- Jeld-Wen UK Limited, one of the world's leading manufacturers and distributors of windows, doors and stairs
- Maplin Electronics Limited, Manvers-based retailer whose latest yearly sales figure climbed 6.3% to £237m
- New York Bakery Company Limited, operates the largest bagel production facility in Europe, based at Swinton
- Nicholas Associates, fast-growing industrial and commercial recruiter that is aiming for a £200m turnover within five years
- Schaeffler Automotive Aftermarket (UK) Limited, based at Waleswood, the global integrated automotive and industrial supplier includes leading brand, LuK
- SVM Global Limited, Parkgate firm that is the largest reseller and distributor of corporate gift cards, E-vouchers and gift vouchers in the B2B and the corporate gifting market
- T.H.S. Tools Limited, the Templeborough-based tool wholesaler is the UK's largest buying group for independent industrial distributors

Pictured is a flag-raising ceremony to celebrate AESSEAL securing the Queen's Award for Enterprise: Innovation 2016.

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News: Rotherham firms in Yorkshire's top 250

Leading Rotherham companies are amongst the mid-market firms that are driving growth in the region, according to the Yorkshire Report 2015, published today by accountancy and business advisory firm BDO LLP.

The top 250 firms in Yorkshire have increased revenues by £6bn to £102bn, and now have cash in the bank in excess of £3.2bn – an almost £1bn leap from the previous reporting period. However, further analysis which splits the top 50 firms (£300m+ turnover) and the mid-market 200 reveals it is the region’s medium-sized businesses that are driving growth and prosperity for Yorkshire.

Mid-sized firms are rapidly outperforming their larger peers in all key performance indicators. Turnover, overseas sales and employee numbers are growing faster in the mid-market than they are among Yorkshire's biggest businesses.

Turnover has grown by 13.2% for mid-sized firms (compared to 5.2% for the largest 50 companies); employment levels are up 11.6% (compared to 2.8%) and overseas sales have rocketed by 19.3% (compared to just 3.6% in large firms).

Rotherham firms making onto the list include manufacturers, AESSEAL, AMG Superalloys UK Limited (formerly LSM), Exol Lubricants, ABS Industrial Resources Ltd, Jeld-Wen UK Ltd, New York Bakery Company Ltd, Schaeffler Automotive Aftermarket (UK) Ltd and Esco Emea Holdings (UK) Limited (the UK branch of Esco that purchased Hydra Mining Tools). Also in the top 250 are nursing home operator, Falcon Capital Investments Limited; the construction group, Horbury; electronics retailer, Maplin; growing national recruiter, Nicholas Associates; and SVM Europe, a leader in the gift card industry.

Terry Jones, partner and head of BDO LLP in Yorkshire, said: "Yorkshire firms have recovered well and are growing strongly, with cash in the bank, employment and overseas sales all on the up. But what's really clear is how important the mid-market is to our regional economy and future prosperity.

"Medium-sized businesses – our newly named "Brittelstand" - are the real drivers of growth in our region. With continued investment, ambitious growth strategies and the right government support, they will fast become the big businesses of tomorrow."

The backbone of Yorkshire's economy remains strong, with manufacturers accounting for 72 of the top 250 companies. The region's manufacturers saw profits before tax jump 38% to more than £1bn in the reporting period. The sector also accounts for more than half (£4.9bn) of the total overseas sales made by the 250 companies.

The retail sector continues to be the largest contributor to revenues (£44.3bn), however profits have plummeted following another tough year for food retailers Asda and Morrisons which account for more than 90% of the sector's revenues. Manufacturing was the second biggest contributor with revenues at £12.4bn, followed by the food and drink sector which recorded a 22% jump to £11.3bn.

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News: Manufacturing drives Yorkshire M&A activity

Recent mergers and acquisitions in Yorkshire are being driven by pent up demand and the availability of cash according to to accountancy and business advisory firm BDO LLP.

BDO's latest PCPI/PEPI report, which tracks trade and private equity price patterns when purchasing private companies, found that trade deals jumped by 36% in Q3 2014. Similarly, the volume of private equity acquisitions increased by 32% to its highest level since 2009.

The biggest deal in Rotherham saw electronics retailer, Maplin, secure new investor owners after Montagu Private Equity announced that it has reached agreement to sell the company to Rutland Partners for £85m.

Recent activity saw One51 plc, the Irish owner of Rotherham-based manufacturer, MGB Plastics, conclude its takeover of Yorkshire firm, Straight plc. In September, Mac'Ants Abrasives, the supplier of abrasive material used in sandblasting and manufacturing, and based at Dinnington in Rotherham, was acquired by Sheffield's Samuel Hodge Group.

Earlier in the year, Rotherham-based Focus NDT, a recognised leader in Non-Destructive Testing (NDT) and inspection activities, was acquired by the US-based MISTRAS Group and Dinnington-based Northern Engineering (Sheffield) Ltd (NES), was acquired by American specialist private investment partnership, Industrial Growth Partners (IGP), as part of a deal for parent company, Sanders Industries.

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Jason Whitworth, M&A partner at BDO in Yorkshire, said: "Whilst we are seeing capital markets take a pause for breath, the appetite for deals in the private company arena are undiminished.

"The strength of manufacturing continues to drive activity in Yorkshire and Humber, with a third (31.7%) of all deals so far this year coming from this sector. We're also seeing mid-market transactions pick up the pace, with volumes increasing by almost 30% compared to the same period last year.

"Buyers are willing to pay good prices for these businesses too. Deal values in the mid-market have witnessed a significant rise of 51% in 2014 – much more than 17% increase reported for smaller-sized deals."

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News: Yorkshire manufacturers power on amidst uncertainty overseas

Manufacturers in Yorkshire are continuing to power on, reporting positives across every key indicator of business health and outperforming the UK average, according to an industry survey.


The data, published in the latest quarterly Manufacturing Outlook survey by EEF, the manufacturers' organisation, and accountancy and business advisory firm, BDO LLP, reveals that despite a more difficult trading environment overseas business confidence in Yorkshire has firmly taken root, with this quarter's findings showing that manufacturers' strong first half of the year is being sustained in the third quarter.

A balance of 32% of manufacturers in Yorkshire are reporting an increase in output in Q3 (compared to UK average of 10%), with a further 27% seeing growth in order books and a balance of 33% looking to recruit.

One area of caution is in exports, resulting in EEF issuing a warning that the demand picture is now more uncertain than for some time. With the Eurozone economy flagging significantly, political risks increasing and a stronger Sterling exchange rate, export orders UK-wide are turning negative for the first time since the start of 2013.

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Jason Whitworth, partner and head of manufacturing at BDO in Yorkshire, said: "The results come as welcome news to our regional economy and jobs market. There is nervousness surrounding overseas market, so a strong recovery in exports this year is still uncertain. I would urge companies to avoid using this as an incentive to focus investment on domestic markets, as this is not where long term sustainable growth will lie."

Andy Tuscher, Yorkshire and Humber region director at EEF, added: "Growth in manufacturing remains positive in Yorkshire, although it is understandably starting to return to more moderate and sustainable levels as the pent-up demand which built up during the recession begins to expire.

"However, there are clearly risks overseas which could threaten the pattern of growth going forward. In the face of this, while politicians may be focused on next year's election it is critical that efforts over the rest of this parliament remain focused on sustaining growth across manufacturing and the economy."

Nationally, EEF is continuing to forecast strong manufacturing growth at 3.3%, with a return to more normal long-term growth of 2.1% in 2015.

The Engineering Employers' Federation (EEF), the UK trade organisation dedicated to the future of manufacturing, recently announced that it had acquired a new headquarters in Rotherham, taking nearly 7,000 sq ft of office space at Advantage House, Catcliffe.

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News: Yorkshire manufacturers remain positive

Yorkshire manufacturers are outperforming the other regions in the UK, according to the latest quarterly Manufacturing Outlook survey by EEF, the manufacturers' organisation, and accountancy and business advisory firm, BDO LLP.

The data, published today, reveals that business confidence in Yorkshire has firmly taken root, with this quarter's findings showing that manufacturers' strong start to the year was sustained in the second quarter. Firms reported positives across every key indicator of business health.

A balance of 54% of Yorkshire-based manufacturers reported an increase in orders in Q2 – higher than all other UK regions. Yorkshire was only pipped to the post by East of England for output.

39% of manufacturers have ramped up recruitment during Q2 (second only to the South West), with a further 28% planning to invest further during the year ahead.

The one area of caution is in exports where demand weakness in key markets and the appreciation of sterling is adding to uncertainty, resulting in a small decline in the number of Yorkshire manufacturers confident of achieving export growth in the third quarter of the year.

The strong results for the region mirror the national picture and EEF is now forecasting 3.6% manufacturing growth, a substantial upgrade from the 2.7% forecast at the beginning of the year.

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Jason Whitworth, partner at BDO LLP in Yorkshire, said: "Government manufacturing policy is clearly paying dividends and is creating an environment in which Yorkshire manufacturers are comfortable enough to commit to future investment, both in terms of employment and capital. This is a very positive indicator for the rest of the year. What is now needed is for this success to be replicated abroad.

"We would encourage the Government to introduce more supportive measures for exports, especially given the tentative nature of economic recovery in Europe."

Andy Tuscher, Yorkshire Region Director at EEF, added: "There is a palpable sense of mounting confidence amongst manufacturers here in Yorkshire and this set of results tells us that it is fully justified. The continuing trend for strong positives is a further boost for businesses emerging from the shadow of the recession and a further boost to the local economy and the job market.

"Manufacturers in this region will also have an important role to play in helping to sustain broad based growth across the UK."

The Engineering Employers' Federation (EEF), the UK trade organisation dedicated to the future of manufacturing, recently announced that it had acquired a new headquarters in Rotherham, taking nearly 7,000 sq ft of office space at Advantage House, Catcliffe.

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News: Rotherham firms help Yorkshire plc rev up for growth

A number of top Rotherham businesses are amongst Yorkshire's largest 150 companies, that together have amassed more than £10.4bn cash in the bank, according to analysis from accountancy and business advisory firm BDO LLP in Yorkshire.


The BDO Yorkshire Report 2014, now in its eighth year, which compiles the latest published accounts from Yorkshire's largest 150 businesses based on revenue, analyses trends and acts as a barometer of health for the region.

Rotherham firms that make it into the top 150 include CF Booth, AESSEAL (pictured), London & Scandinavian Metallurgical Co Ltd (Now called AMG Superalloys), Maplin, LUK (UK) Ltd, JELD-WEN UK and ABS Industrial.

Companies' war chests have increased sharply by 22% on last year's figures, with cash reserves now at their highest level since records began in 2007, providing a sure fire signal that M&A activity could flourish over the next few years.

Yorkshire's biggest businesses have also boosted growth prospects by increasing investment by a further £500m, taking total investment expenditure in property, plant and machinery to almost £3.5bn in the reporting period.

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The report also found that the top 150 saw revenues increase to £90.7bn, from £88.7bn last year and £83.8bn the year previous. Operating profits increased by 5% to £4.56bn and a more focused effort on overseas markets saw international sales grow by £1.7bn, up 7.7% to more than £12bn.

Terry Jones, partner and head of BDO LLP in Yorkshire, said: "There is an overwhelming feeling of confidence across the region and the figures in this year's report confirm that growth is firmly back on the agenda.

"Having built up cash reserves during the last few years, the challenge now is for management teams – many of which may not have the experience in dealing with a "positive" cash crisis – to have the confidence and expertise to choose where to invest.

"It's a challenging prospect having spent the last four to five year's heads down firefighting, but businesses must look forward and seize the opportunities a recovering market presents. This year's success stories will come from those brave enough to invest three-fold; in talent, technology and international markets."

The contribution of manufacturing to the group increased during the year, with employment per company up 9% and overseas sales rising nearly 10%. Of the Rotherham firms, only electronics retailer Maplin is not in the manufacturing sector.

The number of manufacturers in the top 150 rose to 34 (from 31 last year), generating more than £10bn in revenue (£1bn more than last year).

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News: Yorkshire manufacturers report high demand

Manufacturers in Yorkshire and Humber are reporting record high demand as well as rising outputs and headcounts in the first quarter, according to the latest quarterly Manufacturing Outlook survey published by EEF, the manufacturers' organisation, and business advisers and accountancy firm BDO LLP in Yorkshire.

According to the survey, 47% of local manufacturers reported order growth in the first three months of the year. This is the strongest reading ever recorded for the first quarter, which typically has the lowest trading levels, and sits above the peak demand level for four years.

Output, employment and investment all increased, resulting in mounting regional confidence. Manufacturing outputs reached a balance of 41%, marking the highest level since mid-2011, whilst a balance of 47% of companies also increased headcounts.

Looking ahead, improving trading conditions have led to a balance of 30% of local companies to plan on increasing investments in Q2 to maximise potential growth opportunities.

The findings indicate that Yorkshire is well on course to mirror the UK as a whole, where the recovery is well underway and key indicators such as output, orders, employment and investment intentions are approaching or have already hit record highs.

Andrew Tuscher, Yorkshire region director at the EEF, said: "Looking ahead to the next quarter, this is the most positive set of indicators we have seen for some time. Here in Yorkshire it looks like we're well and truly steaming down the right road. Manufacturers are clearly feeling more confident as their order books fill up and exports are strong. It is now vital that Government does all that it can to underpin support for companies, giving manufacturers the confidence to fulfil their investment and recruitment plans."

Jason Whitworth, partner at BDO LLP in Yorkshire, added: "Yorkshire has seen an unprecedentedly good start to the year with record high demand and a significant increase in employment and manufacturing outputs, boding well for the coming year. We expect to see the region continue to strengthen as the wider UK recovery takes hold.

"The broad nature of the recovery that this survey points to is a source for particular encouragement as it has been some time since all sectors have been moving in the right direction. The fact that this is underpinned by a significant strengthening of exports, especially to Europe, adds further stability to the foundations of growth. This should also give confidence to the Government that its support for the sector is starting to achieve the desired results and if implemented in a clear and carefully targeted fashion will continue to reap benefits."

As manufacturing firms look ahead with intentions to invest and hire more staff, the EEF is calling on The Chancellor to use today's Budget to secure the best possible business conditions to support these investment and growth ambitions. This includes competitive UK energy costs, improved lending to business, further action on skills and a long term vision for infrastructure investment.

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News: New advisers as MTL looks for further growth

Rotherham manufacturing specialist, MTL Group, has appointed the Sheffield office of BDO LLP as it revs up for growth.

MTL Group is one of Europe's fastest growing project manufacturing specialists in the metal sector and is a global exporter of secondary steelwork. It works with a global blue-chip customer base in the defence, construction equipment, rail and off-shore wind energy sectors.

BDO LLP, which recently merged with PKF, is the world's fifth largest accountancy network, with specialists in a number of sectors, including manufacturing.

BDO won a competitive tender to provide audit and business advisory services to MTL Group. Following continued growth since moving into a 300,000 sq ft modern manufacturing facility in Brinsworth in 2011, MTL is now looking to expand its exports and overseas presence, with a long term plan to invest in overseas manufacturing facilities.

Founded in 1995, MTL Group processes around 30,000 tonnes of material annually and provides a range of services from laser cutting and machining to press braking and surface treatment. They underwent a management buyout in 2006 and has doubled its turnover in the last five years to £50m.

Since the move to Rotherham, where it employs over 350 staff, MTL almost doubled its export sales to £7.3m. It also operates a dockside facility in Blyth, Northumberland where it services the offshore and renewable energy sector.

Craig Burton, audit partner at BDO LLP in Sheffield said: "MTL is a dynamic and ambitious business that has set its sights on growth. It operates in sectors that provide real opportunities to such an innovative company, such as offshore wind and defence. We are very much looking forward to working with the management team going forward, providing audit services to support the company's growth strategy."

David O'Hara, Group Finance Director at MTL Group, said: "Choosing a new adviser to support our expansion plans was a big decision.  We wanted to work with a proactive team that knows our market and is committed to a genuine partnership approach. 

"BDO's experience of working in advanced manufacturing and the sectors we supply to is impressive, as too is its international capabilities.  We believe they will play an important part in our future success."

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