News: Stelrad continues to trade well

Stelrad, the UK's leading manufacturer of stylish modern radiators, continues to trade well following a pivotal year which saw it join the London Stock Exchange.

Registered in Newcastle, it now operates from facilities in both Nuth, in The Netherlands, and in Mexborough. The Rotherham site handles the UK radiators business, coordinating an advanced production and distribution operation that spans a 17 acre site which is the largest radiator storage facility in the UK.

Despite the impact of the Covid-19 pandemic across the world, Stelrad's impressive progress continued in 2021 when it achieved a record financial performance.

Revenue of £272.3m was reported for the 12 months ended December 31 2021, up from £196.6m in 2020 whilst adjusted operating profit rose by 112.3% to £33.2m from the 2020 figure of £15.6m.

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Helping to heat homes sustainably, sales volume increased by 20% versus 2020 and was 9% higher than in 2019, the last pre-pandemic year. Bosses said that this performance was aided by the supportive backdrop of the continued focus on decarbonisation and the move towards higher added value premium steel panel radiators.

The year also saw the completion of a six-year programme of upgrading our three main facilities, which has seen a total of £25m invested in best-in class manufacturing capabilities. This included an £175k upgrade project to install 16 modern, fully modulating gas burners on the electrocoat ovens in the manufacturing site in Mexborough to help reduce the reliance on gas.

Stelrad shares began trading on the Main Market of the London Stock Exchange in November 2021. The IPO valued the business at €320m (£274m).

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Since the end of the financial year, the group has performed slightly ahead of management expectations and the outlook for the group remains unchanged. Some reduction in overall volumes have been more than offset by increased revenues and improving margins.

Trevor Harvey, Chief Executive of Stelrad, said: "The Group continues to trade well thanks to our brand strength and well-established relationships with major distributors and specifiers. As energy prices continue to place pressure on household incomes, our products remain central to how consumers across Europe affordably heat homes and reduce energy consumption while governments continue to debate how best to decarbonise homes and meet long-term net zero carbon commitments. We are confident in our strategy and ability to continue growing our market share both organically and through M&A as we address this important trend."

Stelrad website

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News: Stelrad welcomed to London Stock Exchange

Stelrad, the UK's leading manufacturer of stylish modern radiators, has been welcomed to the London Stock Exchange following a successful initial public offering (IPO).

Registered in Newcastle, it now operates from facilities in both Nuth, in The Netherlands, and in Mexborough. The Rotherham site handles the UK radiators business, coordinating an advanced production and distribution operation that spans a 17 acre site which is the largest radiator storage facility in the UK.

The IPO valued the business at €320m (£274m) and sees Stelrad shares trade on the Main Market of the London Stock Exchange under the ticker symbol SRAD.

The origins of the Group date back to the 1930s and Stelrad enjoys long established commercial relationships with many of its customers, having served each of its top five customers for over twenty years.

The Group operates across six core geographies: UK, Benelux, Germany, France, Turkey and Poland and collectively, the total addressable market across these geographies has an estimated value of £1,100 million, and equates to approximately 24.4 million radiators.

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Following its admission to the Main Market of the London Stock Exchange, Stelrad Group PLC’s focus remains on exploiting the breadth of organic and inorganic growth opportunities on offer, continuing to focus on further improving our extensive product offering and the strong relationships it has with major distributors and specifiers.

Trevor Harvey, Chief Executive of Stelrad, said: "We are thrilled that Stelrad’s unique business proposition has resonated so strongly with investors, and are delighted to have received such a high level of demand for the Placing.

"Our successful growth strategy has been built upon a combination of standardised product design across all our manufacturing facilities, a key focus on specifiers across all of our end-markets and continued range innovation, alongside our multi-brand strategy that enables products and brands to be tailored to specific channels. As a result, we are the number one steel panel radiator business in a number of the markets where we operate.

"The listing of Stelrad on the Main Market of the London Stock exchange reflects not only the success that we have enjoyed to date but also our confidence in our ability to deliver further upside as part of our growth plan as we continue to play a leading role in keeping Europe warm.”

Michael Loudon, Partner at Clearwater International, the firm that advised Stelrad on the IPO, added: "The Group is well positioned to pursue growth both organically and through acquisitions, having already established itself as a leader in radiator manufacturing and distribution. Its broader role in driving energy efficiency and creating environmentally friendly homes increases its attractiveness in the market and we are confident of Stelrad’s continued success in the future."

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News: Rotherham radiator manufacturer warming up for IPO

Stelrad, the UK's leading manufacturer of stylish modern radiators, is considering joining the stock exchange with an initial public offering (IPO).

The company was founded in 1936, manufacturing steel column radiators from a purpose built factory in Southall. Registered in Newcastle, it now operates from facilities in both Nuth (The Netherlands) and in Mexborough (UK). The Swinton site handles the UK radiators business, coordinating an advanced production and distribution operation that spans a 17 acre site which is the largest radiator storage facility in the UK.

Stelrad, whose revenue grew to £242.5m in the year ended 30 June 2021, is now considering applying for admission of the Ordinary Shares to the premium segment of the Official List of the FCA and to trading on the Main Market of the London Stock Exchange.

Stelrad, which is the main supplier of the significant majority of hydronic radiators to four of the largest national housebuilders, said that the share issue would raise around £25m to repay certain existing indebtedness of the Group (both external and with existing shareholders).

Bob Ellis, chairman of Stelrad, said: "Stelrad is a leading specialist manufacturer and distributor of steel panel radiators with a track record dating back to the 1930s. Today, the Group benefits from an unrivalled combination of brand strength, highly efficient operating infrastructure and market access, trading across six core geographies of the UK, Benelux, Germany, France, Turkey and Poland.

"The European countries where the Group operates have been progressive in advancing the decarbonisation agenda through strong regulation and policies and Stelrad's products will play a key role in the longer-term transition away from traditional gas boilers with larger surface area radiators in particular being well suited to low temperature systems such as heat pumps.

"The Group's highly experienced management team have a wealth of industry experience and a long-standing commitment to the business having put in place a strategy that has seen the business deliver a resilient financial performance in recent years and, as a result, the Group is well placed to build on the strong momentum through both organic and inorganic growth opportunities."

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Trevor Harvey, Chief Executive Officer of Stelrad, added: "Our successful growth strategy has been built upon a combination of standardised product design across all our manufacturing facilities, a key focus on specifiers across all of our end-markets and continued range innovation, alongside our multi-brand strategy that enables products and brands to be tailored to specific channels. As a result, we are the number one steel panel radiator business in a number of the markets where we operate.

"Hydronic systems dominate the heating market and steel panel radiators remain by far the most popular heat emitter with demand driven by both first-time installations and replacements. The overall market value is growing thanks to positive underlying market activity and continued adoption of premium panel radiators with the move towards decarbonisation presenting numerous opportunities and limited disruption to our longer-term growth plans.

"Our extensive product offering, strong relationships with all major distributors and specifiers plus this supportive market backdrop mean that we are confident of delivering further upside as part of our growth plan as we continue to play a leading role in keeping Europe warm."

The company said that it was "positioning for decarbonisation" with the scale and market position to adapt. Organic growth, extending already strong market positions in Europe and a focus on higher margin premium radiator segment are also part of the group's strategy.

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The announcement to the stock exchange also discusses manufacturing and plans for under-utilised Western European lines to be "upgraded and redeployed at the Group's facility in Çorlu [Turkey] where the Group benefits from lower raw material and labour costs."

Bregal Capital, a leading European private equity firm, completed the management buy-out (MBO) of the Ideal Stelrad for approximately £230m in 2013.

Stelrad website

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News: Rotherham business earns £10k boost

Rotherham-based Kirsty Glover, the proud owner of The Pouring House, has been awarded £10K worth of business start up support from young Yorkshire millionaire Nicky Story.

A relatively new family-run, small business based in Aston, creating luxury soy wax melts since earlier this year; Kirsty’s business was born in lockdown whilst she was furloughed. Initially starting as a hobby selling to family and friends, the business has now broken into the wider market, something she didn’t anticipate having originally established it simply as a distraction from Covid and a release from dealing with her health challenges, as she is currently in remission from Cancer.

Nicky Story, 29 from Mexborough is the CEO of Supplies For Candles and The Soap Kitchen - b2b businesses that sit behind the success of thousands of others an online supplier of candle and soap making ingredients to a growing craft industry. £10K is the value of what it had cost him to set up his business five years ago from his garage, and he is now is the owner of two multi-million-pound businesses – he has proven that in times of struggle, entrepreneurs stick together as he has turned Covid on its head for several thousand small business owners with his generosity, this month adding a further £10K contribution to his gifting.

Nicky said; “2020 has been a really hard year for a lot of people and I wanted to do my bit to help. So, I decided to do a £10K giveaway to help others build their business. We received hundreds of applications and it was so difficult to choose one winner, but Kirsty’s story in particular stood out from the crowd. I know how hard it is to get a business off the ground and have failed before I succeeded - but I also know how empowering it is to be the master of your own ship. I can’t wait to continue to support her in 2021.”

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Run from her kitchen at home, Kirsty is looking forward to working with Nicky on this amazing venture as she has seen how he has built his own business and she would love to follow in his footsteps.

As the CEO of Supplies For Candles and The Soap Kitchen - online suppliers of candle and soap making ingredients to a growing craft industry, Nicky is at the helm of the largest online company in Europe within the industry, and as such has helped thousands of others become successful entrepreneurs too including; Ava May Aromas loved by many celebs including cleaning sensation Mrs Hinch.

Nicky was joined by Hannah Chapman the owner Ava May Aromas as they both made a surprise visit to Kirsty’s doorstep in Aston to let her know she was the winner.

Kirsty said: “I’m still in shock – stuff like this doesn’t happen to people like me and it’s just going to be life changing. This started as a way to keep busy and it got a bit bigger than we expected. I can’t explain to you what it means.”

Hannah Chapman from Ava May Aromas will be supporting Kirsty with her brand and marketing strategies, she said; “When I found out that Supplies for Candles were doing this amazing giveaway, I wanted to get involved and to give back to the winner, share my advice, tips and hopefully help them grow their brand as well.”

Kirsty’s £10K prize includes; website update and bespoke branding package, £5,000 worth of start-up stock, a brand new laptop, label printer and camera, dedicated 1 to 1 business mentoring session with Nicky and business start-up plan.

Supplies For Candles website
The Pouring House Facebook page

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News: Stelrad looking to expand Rotherham facility

Stelrad, the UK's leading manufacturer of stylish modern radiators, is hoping to extend its current facility in Rotherham after a sustained period of growth.

The company was founded in 1936 manufacturing steel column radiators from a purpose built factory in Southall. It now operates from facilities in both Nuth (The Netherlands) and in Mexborough (UK). The Swinton site handles the UK radiators business, coordinating an advanced production and distribution operation that spans a 17 acre site.

Since the warehouse was build in 2002/2003, The £70m turnover firm has grown its market share from a third to around half of the UK market. Stelrad puts this down to the efficiency of the warehousing and distribution facility. The growth has however resulted in increased pressure on the facility and to relive this pressure, more warehousing capacity is required.

Stelrad is now looking to squeeze every inch out of the site, which is home to around 165 staff.

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A recently submitted planning application for a 5,000 sq ft extension, drawn up by Topping Engineers, states: "The site at Mexborough is fairly restricted with limited space available for any new buildings however there are two areas of concrete hardstanding at either end of an existing canopy which are under-utilised.

"These areas would facilitate a warehouse extensions to be built. These extensions would be of modest scale compared to the existing building but would offer significant additional bulk storage. The extra capacity will assist in allowing the business to maintain its current levels of customer service and to continue its growth."

Stelrad website

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News: Tax changes contribute to Swift closure

A tax hike which added around £2,000 to the cost of a new motorhome was a key factor in the decision of the Swift Group to close its Rotherham facility.

Swift is the UK's largest manufacturer of touring caravans, motorhomes and holiday homes. With its head office in Cottingham, East Yorkshire, the firm employs over 1,000 staff and took on the Swinton site when it acquired Autocruise Motorhomes in 2007.

At the start of 2020, Swift took the decision to close the Rotherham site with bosses confirming that a change to Vehicle Excise Duty was a significant contributing factor.

Taxing motorhomes as cars and not vans, the change has led to a 705% hike in registration tax and a significant fall in registrations of 7.3% in September 2019, the month the increase came into effect.

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45 people were employed at the Mexborough factory and it is thought that jobs have been transferred to Swift's East Yorkshire location.

Local MP John Healey, said: "Before the reclassification came in in September, I took this up with the Chancellor. I've written to him again, now we're seeing the big impact it's having on the industry.

"I'm supporting The NCC Fair Motorhome Tax campaign. The Government should listen to motorhome manufacturers and reverse the tax hike in the Budget."

Swift website

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News: Local companies pitch in for Bluebell Wood

A team from Stelrad in Rotherham, the UK's leading manufacturer of radiators for the heating sector, recently took on a team from the Royal Mail in a charity football match where the net result was a funding boost for Bluebell Wood Children's Hospice.

Lexi Kelly from the Mexborough company's marketing team, with the help of workmates Dean Holdsworth in maintenance and Adam Mars in production, organised the event for the morning of the day England played Sweden in the World Cup.

Based at North Anston in Rotherham, Bluebell Wood provides care and support to families who have a child who has a life limiting condition and is not expected to live into adulthood. It has to raise over £4m each year to continue its work, and receives less than 10% statutory funding.

The game was between Stelrad and the HR services team at Royal Mail, at Mexborough Athletic Football Ground. It ended in a narrow 5-4 victory for the Stelrad team.

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There was a bucket collection for spectators on the day, along with a raffle – with bottles and tickets to Sheffield United and Sheffield Wednesday games and to a Yorkshire Cricket Club match amongst the other prizes on offer. In total £850 was raised on the day and Stelrad kindly agreed to match the funds raised at the event, doubling that total to an impressive £1,700.

Lexi Kelly, from Stelrad, said: "I'd like to thank everyone who supported the event and who contributed to this excellent total. It was a lot of work but it all came together really well in the end! I'm really grateful to Stelrad for doubling the amount we raised on the morning of the event – its made the final amount we can donate to the charity very worthwhile!"

Julie Hampson, corporate fundraiser for Bluebell Wood Children's Hospice, added: "We'd like to say a huge thank you to everyone at Stelrad and the Royal Mail for their support on the day of the game. The amount raised will make a real difference to what we do here."

Stelrad website
Bluebell Wood website

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News: Businessman brings Empress Building back to its former glory

The iconic Empress Building in Mexborough is being officially reopened next month and this includes revealing a brand new bar, bistro and coffee lounge, thanks to investment from local entrepreneur Jason Mace, managing director of Manvers-based Gala Tent.

The "Empress Rooms" bar and bistro will be officially opened on June 14 at a special VIP event, as part of a £150k investment to return the building to its former glory.

Over the past ten months, Jason has invested in refurbishing the former Empress Building ballroom and dance hall into a hub of business, health and community activity. The building, which dates back to the 1920s, was built to mirror the great dance halls in places like Blackpool and for decades it was the hub of social activity in the area but in recent years had fallen into disrepair.

Restored to its former glory, damaged rotten timber windows have been replaced with new PVC-u windows to improve its appearance, let in more light and make it more energy efficient for tenants using the building. Jason has invested in upgrading other empty rooms in the building for new businesses to lease, where customers will be able to undergo beauty or cosmetic treatments.

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Mace said: "The opening of the Empress Rooms is the culmination of many months of planning and significant investment in the building. This bar-bistro-lounge is just what Mexborough needs – somewhere that local people can meet up with friends, family or business colleagues and enjoy a meal, or just catch up over a coffee, Prosecco or a few beers! We're looking forward to bringing the buzz back into this part of the town."

Michelle Carr, who runs the nearby Park View Bar Grill and Function Suite in Swinton, was looking for a new business venture and, after viewing the premises, decided the Empress Building was ideal. She named the bar and bistro The Empress Rooms to capture the nostalgia of this iconic building. In the last few weeks, Michelle has been busy recruiting and will create several new jobs for people in the local area, including bar, waiting-on, kitchen and cleaning staff.

The bistro also has a new Head Chef, Chris Cole, who is passionate about health and is a qualified nutritionist. Chris and Michelle have worked together to create a menu of tasty dishes, which will be prepared daily from locally sourced goods.

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Michelle Carr said: "We are really excited about what we have planned for the Empress Rooms. It will be quite unlike anywhere else in the area and we hope will help to revitalise this part of Mexborough and bring more visitors into the town. Chris has a real passion for good quality food and locally sourced fresh ingredients and we'll be serving a variety of mouth-watering dishes to suit all tastes."

The Empress Rooms will be open from 8am Monday to Saturday. It will serve breakfasts, lunches and afternoon teas and will host a number of themed dining evenings such as steak and Italian nights. The venue can also be hired out for private parties, anniversaries, christenings, birthdays, Christmas parties, corporate meetings and charity fundraising nights for up to 100 guests, on Sundays and after hours on certain week nights. The Empress Rooms will also be offering diet planning and advice, weekly and monthly prepared diet packages.

The Empress Building, which sold at auction in 2017, is currently occupied by a number of organisations, including the charity Dearne Valley Personal Development Centre, the Personal Training Room, Grafters Ironworks Gym, Micky's Athletics and Sally Salter Sports Massage.

Empress Building website

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News: Barron criticises HS2 over "wobbly" data

Sir Kevin Barron, the MP for Rother Valley, has continued to criticise HS2 Ltd and the Government over changes made to the high speed route through South Yorkshire, stating that the decisions were made based on data that is "wobbly at best."

The MP, who says his constituency will suffer the impact of the proposed route between Birmingham and Leeds but receive none of the benefits of a direct stop, told a parliamentary debate that it was obvious that the decision has not been based on any consensus.

During the recent HS2 consultation, 271 respondents pledged support for the new M18 route, whilst 4,157 were against it. The Government is justifying its decision based on demand; the needs of Sheffield and the wider region; connectivity with the existing rail network and the wider transport network; topography, urban density and the environment; and cost.

In a Westminster debate on the HS2 route, Barron explained: "Last year, when I first questioned HS2 at the consultation meetings here in Parliament, Sir David Higgins [executive chairman of HS2] said the development would not go ahead at Sheffield Meadowhall because there was a lack of consensus, so I asked him politely, "If there is no consensus on the new line on the eastern M18 route, which goes through my constituency, ​will that not go ahead?" He would not answer me.

"I said to him, "You don't want to answer that question, do you?", and he just shook his head and nodded up and down. Of course he did not want to answer that question. There has been very little consensus throughout the HS2 process."

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The MP discussed the data used in comparing the two routes - Meadowhall and the M18 - and the figures used, especially regarding the impact on property. He said: "I believe that the decision is being based on data that, to put it kindly, are wobbly at best."

HS2 Ltd compared an unpublished refined route through Meadowhall with the new route on the M18 / Eastern alignment. Examples from areas like Bramley and Mexborough have been used to highlight that many more properties will be affected on the new route.

Barron added that he "had a battle over issues of property impact — that is a nice way of saying it" with Higgins and HS2 and was told that "The number of properties affected does not form part of the route decision-making process."

The MP concluded: "How can the fact that 600 properties in one village will be affected by HS2 not play a role in the location of the track?

"I have been very positive in this House about HS2, but I have to say that I am now a little tempted to change my mind. Last year I was at the Broadlands estate in Bramley with three HS2 engineers. We stood next to the M18 and they tried to convince me that HS2 could get within 30 metres of the motorway and the houses. HS2 has implications for hundreds of houses on that estate. Like my constituent, I would just get out now."

In HS2 Ltd's advice to Government published in July it stated regarding the Broadlands Estate: "Based on the current stage of design, it should be noted that HS2 Ltd do not expect to have to demolish any property on this estate.

"We will be undertaking further work during the EIA [Environmental Impact Assessment] process to establish the impacts of construction and operation of HS2 on those living in this and other areas. The potential for demolitions is based on the known earthworks for the proposed alignment at this early stage of the process.

"Following a route decision, this is likely to change with ongoing design development, construction planning and environmental assessment. For example, demolitions resulting from ancillary works, mitigation and realignment of existing infrastructure (such as roads and railways) are not included at this stage."

HS2 are hosting a number of events in South Yorkshire to share the latest details about its plans for building and running Phase 2b. Attendees will be able to find out how the design for the route will be developed and the environmental impacts assessed.

Events are being held:

- Tuesday September 12 at Dearne Valley Leisure Centre, Mexborough, 2pm to 8pm
- Wednesday September 13 at Best Western Consort Hotel, Thurcroft, 2pm to 8pm
- Thursday September 14 at Best Western Aston Hall Hotel, Aston, 2pm to 8pm

Images: HS2 Ltd / Google Maps

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News: How new HS2 route would affect Rotherham

A new route for the HS2 line through Rotherham has been proposed as part of new recommendations for the South Yorkshire station to be located in Sheffield city centre - and new parts of the borough will be affected.

Instead of a station at Meadowhall, the new option 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. These trains therefore could potentially also call at Chesterfield.

There is also the future option of HS2 services extending onwards to the existing Meadowhall station, Rotherham, or Barnsley.

The new spur would see two trains per hour into Sheffield on existing lines whilst the main HS2 line continues to carry trains serving Leeds and further North.

The previous preferred route to Meadowhall was due to enter Rotherham at Killamarsh following the line of the disused Chesterfield Canal. Passing Rother Valley Country Park, a viaduct would have taken the line across Sheffield Road at Fence and the River Rother flood plain. It would have seriously affected the £100m Waverley development site and developments either side of the Parkway before passing through Tinsley to Meadowhall. Noise impacts were identified in areas such as Swallownest, Treeton, Catcliffe and Thorpe Hesley.

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Maps unveiled today show that the new route would enter the borough at Woodhall Services as it follows the line of the M1. It would affect Wales Bar where maps show that the line would go underneath School Road immediately to the West of the M1.

A viaduct would take HS2 trains, which travel at up to 225 mph, over the existing railway on the Sheffield to Lincoln Line, over Pigeon Brook Bridge floodplain near developments at Waleswood and over the A57 Aston Bypass before reaching the major M1 motorway exit at Junction 31 at Aston.

Passing through fields and the wind farm at Ulley, the HS2 line would then switch to follow the route of the M18 motorway, with a viaduct over the M1 and Wood Lane, taking it close to Thurcroft.

Running immediately to the West of the M18 the HS2 route would be next to houses and commercial property at Bramley before crossing under the road at Junction 1 of the M18.

Heading out of the borough, the HS2 route would split from the M18 passing Braithwell and Firsby Resevoir before crossing under the A630 between Hooton Roberts and Conisbrough.

A large viaduct would be needed at Denaby Main and over the Dearne floodplain as the route heads North West on to Leeds, joining back to the original proposed route before the M62 at Normanton.

The spur into Sheffield would leave the HS2 line at Chesterfield on the current railway line to Sheffield Midland. This would also create the possibility of "classic compatible" services running through Sheffield Midland to other destinations, including Barnsley, Meadowhall and Rotherham, before rejoining the new HS2 route north of Barnsley, somewhere around the A638.

The report on the new recommendations states: "The route to the East, initially parallel to the M18, would avoid not only the complexities associated with the Meadowhall viaduct, the problems of air quality and congestion – and therefore access – at the shopping centre, as well as the substantial compensation risk associated with demolition of businesses in the area, it would also carry much less risk from the legacy of mining in the area and involve fewer potential watercourse diversions.

"In short, it would be easier, result in less overall expected noise impact, and be less expensive to build, though there would be an impact on a new housing development between Mexborough and Conisbrough, some existing communities and impact on the landscape in parts of the Rother and Dearne valleys. Overall, though, it is expected fewer properties would need to be demolished.

"It would, also, save between one and five minutes on journey times further North with the resulting benefits in terms of both meeting passenger demand and upgrading the business case for the project."

Patrick McLoughlin MP, Secretary of State for Transport, said: "I appreciate that the recommendations set out by Sir David Higgins today will cause concern for those living along this newly proposed route and will also be unsettling for those living alongside the consulted route via Meadowhall.

"HS2 Ltd will now engage closely with these affected communities to provide them with the necessary support and information as quickly as possible. I would also like to reassure homeowners along both routes that they are eligible to apply to the government's exceptional hardship scheme from today."

Information events have already been planned for next month in Aston, Bramley and Mexborough.

The report adds that the changes "would mean a change in the service proposition for Doncaster, Barnsley and Rotherham they would still benefit from the overall proposition."

Although further away than Meadowhall, Rotherham has decent links to Sheffield Midland station. At present, the tram-train is not proposed to stop there. Doncaster users will have longer journeys from the HS2 services at Midland but could benefit from capacity being released from the services from the town. Barnsley users would still benefit from a reduction of at least forty five minutes on most services to London with an easier transfer at Midland.

As well as the prospect of "classic compatible" services servicing other parts of South Yorkshire, a study is now expected to look at the potential for a parkway station on the M18/Eastern leg of the HS2 route which could serve the South Yorkshire area as a whole.

One further scenario not yet examined is the where the route will go for HS3 - a high speed rail link connecting the North's great cities. Studies earlier this year ​indicate that that is likely to include a mixture of upgrades to existing lines, the construction of new lines, and the use of northern sections of HS2.

In a bid to reduce travel times from Sheffield to Leeds to 30 minutes, a connection would be needed from Sheffield Midland out to the new HS2 route going east of Rotherham. This could be different to using the existing line as a spur as proposed in today's recommendations.

HS2 Ltd website

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News: Avago Karting ready to accelerate growth plan

Rotherham-based Avago Karting is in the fast lane for growth after purchasing 12 new go karts with £40,000 funding support from Yorkshire Bank.

Established in 1996, Avago Karting has entertained over 400,000 drivers, catering for all ages and sizes of groups at its indoor facility based in Swinton, near Mexborough.

The faster and environmentally friendly Sodi-Kart vehicles have replaced some of the older models in the fleet. Fitted with catalytic converters, the petrol Sodi-Karts will reduce costs as well as emissions.

Funding for the purchase was facilitated by Nick Leatherland, relationship manager at Yorkshire Bank's Business and Private Banking Centre in South Yorkshire.

Steve Sutton, manager at Avago Karting, said: "We're always very busy, so the karts put in a lot of miles. Having the new vehicles up and running means that we can reduce our emissions, costs and keep our customers in the fast lane.

"By upgrading our stock, we have secured the business' future in the area for years to come. We have a solid platform for growth and are always looking for opportunities to improve and expand."

Kevin Elliott, head of Yorkshire Bank's Business and Private Banking Centre in South Yorkshire, added: "Yorkshire Bank is proud to support businesses investing in their future.

"Avago is well-known and respected locally, and the new additions to the fleet should help them continue to prosper and grow."

Avago Karting website
Yorkshire Bank website

Images: Avago Karting

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News: Caravan site planned for Mexborough

Plans for a retirement caravan park on the former United Carpets site in Mexborough have been submitted.

The vacant 1.9 hectare site at Station Road, which straddles the Doncaster and Rotherham boundary, has had a recent history of stalled developments. Outline planning application to develop 92 residential units and 1,065 sq m of commercial floorspace were approved in 2010 but never developed.

A planned £10m pound supermarket and petrol station was reported to have been axed as developers, Kier Property could not secure an supermarket operator to occupy the site.

Rotherham-based retailer, United Carpets, has now submitted plans for the change of use of unused land adjacent to Mexborough town centre and train station to form a residential park home (caravan) site.

The site was used by United Carpets for its retail warehouse and ancillary offices. The buildings on the site have been demolished and the site is in the process of being cleared.

The plans, drawn up by Montgomery Forgan Associates, state that: "We understand that neither the proposed residential or superstore proposals were considered economically viable for the site and locality, and these proposals have now been abandoned."

56 park homes are proposed to create "a high quality retirement park home site," along with an associated internal access road, car parking, garages and open space. Varying in size from 12 ft x 30 ft to 20 ft x 50 ft, the homes will typically have two bedrooms (including en-suite), study and a lounge, dining area and kitchen.

Applicants say that the owners/occupiers of the park homes will be those nearing retirement or who are already retired.

The plans explain that: "Park homes are particularly attractive to this [over 50] age group, as by selling their more expensive houses and moving to a more affordable park home, equity in the house can be converted to a retirement/pension fund. This in turn means that there is less reliance on the Government and Council for financial support in retirement and housing stock is being released for younger house buyers."

Reusing brownfield land, applicants believe that the redevelopment would also enhance the setting of the Grade II listed railway station and assist in the wider regeneration objectives for the Mexborough area.

Based at Bramley, United Carpets is the second largest chain of specialist retail carpet and floor covering stores in the UK. It has recently moved its Rotherham store to Great Eastern Way retail park at Parkgate after 30 years at nearby Gateway Industrial Estate.

United Carpets website

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News: Redirack bought out of administration

Rotherham based RediRack, the creator of the world's first adjustable frame and beam pallet racking, has been acquired by Stakapal, the UK's leading supplier of pallet racking, cantilever racking and industrial storage equipment.

Redirack has an 100,000 sq ft manufacturing plant in Kilnhurst and was due to celebrate 40 years of continuous UK manufacturing in Mexborough in 2014. Instead, Lyn Vardy and Toby Underwood of PricewaterhouseCoopers LLP (PwC) were appointed as joint administrators in January.

Established in 1973, the firm underwent a management buy out from its former owners, the Norwegian based multinational Dexion Group Limited, in 2004. Since the takeover, Redirack has expanded its headquarters to accommodate the growing demand for its mezzanine floor product, Redifloor. It enjoyed a turnover of £11m for 2011 and secured backing from the Government's Regional Growth Fund in 2012 and Finance Yorkshire in 2013, putting plans into action to invest over £4m over the next five years.

The administrator's report shows that the company had been loss making for a number of months due to delays with two large contracts, a general downturn in business and significantly reduced profit margins.

Primarily financed by a £1.25m invoice discounting facility from Yorkshire Bank, PwC were brought in during December to assess viable options for the company. After a management buyout failed to materialise, attempts to sell the business began.

Following initial interest, a sale could not be agreed and following a winding up petition from trade creditors and a threat from the HMRC, Redirack directors, Andrew Forsythe and Jack Holden with Phil Culling as chairman, invited Yorkshire Bank to appoint the administrators.

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Following a review of the business, 87 redundancies were made after it was decided to cease trading immediately. Shortly after, the administrators sought offers for the business and the business and certain assets were sold in February for £150,000.

Redirack's address and contact numbers have since been changed to those of Stakapal in Cannock, Staffordshire.

At the time of appointment of PwC, Redirack had a large book of trade debtors and was still owed around £1.4m, against which the bank had lending of £744,000. So far £365,000 has been collected and paid directly to the bank.

With the bank holding a charge over Redirack's assets making them first in line for any recovered cash, and the difficulty in collecting the rest of the company's debts, the administrators state that whilst a preferential claim exists from the staff that were made redundant, "it is hard at this stage to estimate the level of book debts which will be recovered which will directly impact the ability to pay any preferential dividend."

One glimmer of hope is the prospect of the new owners taking on the staff at Kilnhurst. One of the key benefits for the administrators selecting the new owner was that it was predicated on the assets remaining in situ, whereas other offers involved removing cherry-picked assets from the site.

Redirack website

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News: Grupo Bimbo to take over Rotherham bagel facility in Canada Bread deal

A deal has been struck for Mexico's Grupo Bimbo to take over Canada Bread, the company owned by Maple Leaf Foods, which operates the largest bagel production facility in Europe, based at Swinton in Rotherham.

Following an "exhaustive process" undertaken by Maple Leaf to seek to maximize the value of Canada Bread, Maple Leaf expects CAN$1.830 billion (£1 billion) for its 90% stake in a deal which has been approved by the boards of directors of Canada Bread and Grupo Bimbo, but will require the approval of the shareholders.

Grupo Bimbo said that the deal would advance its global growth strategy allowing it to extend the company's presence in Canada and United Kingdom, as well as to expand their distribution networks in the United States. Maple Leaf is expected to shift focus to its position as Canada's leading consumer packaged meats company.

Daniel Servitje, chairman and CEO of Grupo Bimbo, said: "We are very pleased to announce the acquisition of Canada Bread for Grupo Bimbo, given it's a company with a strong commercial presence, recognised by customers and consumers, thanks to the high quality of its range of bakery products, its values ​​and commitment, which go hand in hand with our group."

Michael H. McCain, president and CEO of Maple Leaf, added: "Grupo Bimbo is an excellent company with strong values and a global leadership position, with little overlap in our geographic markets. This makes for a highly complementary fit with our bakery operations and is expected to provide exciting opportunities for Canada Bread employees, customers and other business partners."

Based at Swinton, the bagel production facility produces 6-7 million bagels per week for several companies including the New York Bakery Co. The Canadian parent company announced an £11.5m investment in a new production line in 2013 in response to the unprecedented success of the 2013 New York Bakery Co. bagel re-launch - which saw sales increase by 30%.

The growing Rotherham facility has an estimated production capacity of 70,000 bagels every hour and the company has expanded the Swinton Meadows site a number of times, the previous investment was in 2008 with £4m to expand its frozen bagel capacity.

A £11.5m infrastructural investment and £3m communications spend from owners, Maple Leaf Bakery UK Ltd was announced in 2011.

Canada Bread dates back to 1911, when it was formed in a merger of five different companies. In 1991 the merger of Maple Leaf Mills Limited and Canada Packers Inc. created the company now known as Maple Leaf Foods Inc., Canada's largest food processor. Four years later McCain Capital Corporation and the Ontario Teachers Pension Plan Board acquired controlling interest in the company from Hillsdown Holdings plc and remain controlling shareholders today.

Established in 1945, Grupo Bimbo is the largest Mexican-owned baking company. In 2011 it became the largest baking company in the world when it acquired Sara Lee North American Fresh Bakery, Fargo in Argentina and Bimbo Iberia in Spain and Portugal. The 300 staff in Rotherham are set to join 126,000 that Grupo Bimbo employs across 19 countries in America, Asia and Europe.

The transaction is expected to close during the second quarter of 2014, once regulatory approvals are obtained. To fund the transaction, Grupo Bimbo will utilize cash holdings and financing available under existing long-term committed credit facilities.

New York Bakery Co. website

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News: Redirack toasts ten year Greggs partnership

Rotherham based RediRack, the creator of the world's first adjustable frame and beam pallet racking, is celebrating ten years of supplying food on the go retailer, Greggs, helping them to sell approximately 140 million sausage rolls each year.

With a 100,000 sq ft manufacturing plant in Kilnhurst, Redirack's solutions ensure that warehouse owners get the most efficient use out of their space and include bolt free pallet racking and automated pallet storage, retrieval and sequencing systems.

Other parts of the RediGroup specialise in interior design and fit-out services and the supply and installation of mezzanines and structural floors.

During its long relationship with Greggs, RediRack has supplied and installed racking and other storage products to Greggs' dedicated ambient, chilled and frozen storage facilities throughout the UK.

Peter Boughton, group production project manager at Greggs, said: "RediRack's solution is perfect for us because it is scalable. Because it can be changed easily, it is both cost-effective and time saving.

"The RediRack project team always respond to our changing needs in a timely manner, helping us find cost effective solutions that allow Greggs to save time and money."

Gary Marriott, who has handled the Greggs account on RediRack's behalf for the past decade, added: "Because we have been manufacturing our racking the same way since the mid-1970s, it is straightforward for us to adapt Greggs' storage systems or add additional pallet spaces as required without having to introduce an entirely new system every time one of Greggs' sites is reconfigured.

"We always go the extra mile to deliver projects on time and within budget, responding to Greggs changing needs where necessary. Our scalable storage solutions have supported Greggs' growth in a cost effective way and we are delighted to have had such a long and successful working relationships with Greggs."

The RediRack system is very popular within the food industry due, in part, to the fact that it is easier to maintain and keep clean than alternative systems – something which makes compliance with stringent food industry hygiene regulations simpler to realise.

With backing from the Government's Regional Growth Fund and Finance Yorkshire, Redirack is investing over £4m over the next five years including a ground breaking Innovation Centre at their head offices, creating much needed jobs in the area.

Redirack website

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News: RediRack signs Qatar distribution deal

RediRack, the Rotherham-based pallet racking and mezzanine floor manufacturer, has signed a distribution agreement with Qatar-based Darwish Trading Company.

The agreement will see Darwish take on responsibility for the sale, installation and on-going maintenance support of RediRack's range of adjustable frame and beam racking as well as RediFloor's mezzanine floor and steel structures across Qatar and elsewhere in the Gulf region.

The group's solutions ensure that warehouse owners get the most efficient use out of their space and include bolt free pallet racking and automated pallet storage, retrieval and sequencing systems. Other parts of the RediGroup specialise in interior design and fit-out services and the supply and installation of mezzanines and structural floors.

Andrew Forsythe, chief executive officer of RediRack's parent group, RediGroup, said: "We are delighted to be working with Darwish Trading. RediRack has been one of the UK and Europe's most popular storage systems manufacturers and suppliers for almost 40 years and our agreement with Darwish will enable us to bring the RediRack product offering to the expanding market in Qatar and the rest of the Gulf region. It is an exciting opportunity for ourselves and Darwish."

Mahmoud Basri from Darwish added: "The infrastructure and logistics sectors within the Qatar are placed to witness impressive growth in the next decade and we expect to be able to capitalise on this growth with the RediGroup range of products and specifically pallet racking and mezzanine floors. We believe that this agreement will be hugely beneficial for RediGroup and Darwish."

Redirack was originally developed in Canada in the early 1960's and has been produced in Belgium since 1968 and the UK since 1974. The RediGroup has an 100,000 sq ft manufacturing plant in Kilnhurst and has over 70 employees. They underwent a management buy out from its former owners, the Norwegian based multinational, Dexion Group Limited, in 2004.

Since the takeover, Redirack has expanded its headquarters to accommodate the growing demand for its mezzanine floor product, Redifloor.

The creator of the world's first adjustable frame and beam pallet racking is investing over £4m over the next five years including a ground breaking Innovation Centre at their head offices, creating much needed jobs in the area.

Finance has been secured from the government's Regional Growth Fund and from Finance Yorkshire.

RediRack website

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News: RediGroup restructure board

RediGroup, the Rotherham-based pallet racking and mezzanine floor manufacturer, has recently altered the structure of its senior management team following the rebranding that brought together the group's innovative solutions across the supply chain industry.

The intralogistics experts have an 100,000 sq ft manufacturing plant in Kilnhurst and has over 70 employees. Established in 1973, they underwent a management buy out from its former owners, the Norwegian based multinational Dexion Group Limited, in 2004.

At RediGroup's core is RediRack, the creators and market leaders in adjustable, bolt free pallet racking; also part of the group are RediFit, a leading provider of interior design and fit-out services; RediFloor who specialise in the manufacture, supply and installation of mezzanines and structural floors; RediBuild, the principal contracting company and RediTechniX, an award winning automated pallet storage, retrieval and sequencing division.

The group is investing £4m over the next five years including an "Automated Warehouse Innovation Centre" after finalising £1m from the government's Regional Growth Fund (RGF).

Andrew Forsythe who has become chief executive officer at RediGroup (pictured), said: "I'm thrilled to be able to announce the new structure. It's always been part of our vision and the time has come to implement changes which will allow the management team to focus on our corporate activities whilst the new divisional managers take on more responsibility for their individual businesses.

"It is our intention that each division will eventually have its own MD equivalent, so creating a new layer within RediGroup."

In addition to Andrew's role changing from managing director to CEO, Ray Phelan will become chief business development officer and Rob Dargue will move from finance director to chief financial officer. Phil Culling remains chairman and is back at work following his recent illness.

Ray agreed with Andrew's sentiments and added: "These changes reflect RediGroup's commitment to deliver the best solutions, services and team in the industry and I fundamentally believe that with these changes RediGroup is a best in class company offering a best in class service."

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News: RediGroup to invest £4m in new facility

RediGroup, the Rotherham-based pallet racking and mezzanine floor manufacturer, is to invest in an "Automated Warehouse Innovation Centre" after finalising £1m from the government's Regional Growth Fund (RGF).

RediGroup will use the grant to further develop and market its RediLogX automated materials handling solution – which it will launch officially at the forthcoming IMHX exhibition.


RediLogX will provide customers with an automated system to control the throughput and storage of high value and perishable goods whilst saving significant operating costs and improving carbon footprint impact.

The new centre will be built close to its existing Mexborough headquarters and manufacturing plant from where automated systems based around the RediLogX technology will be researched and trialled.

Construction work on the new facility will start straightaway with completion scheduled for Summer 2013.

Once the Innovation Centre goes live, a number of new jobs will be created - in both research and development and production roles.

Andrew Forsythe, managing director of RediGroup Ltd, said: "We are delighted to have received this substantial sum from the Regional Growth Fund.

"In all, we will be investing over £4m over the next five years. Significant expenditure is required to develop blue print solutions using test rigs and robotics and, of course, for the actual development of the Innovation Centre building.

"Research engineers will be recruited and expertise in engineering systems and software modeling will be accessed through research institutes and other supply partners."

Deputy Prime Minister and Sheffield MP, Nick Clegg added: "I'm delighted that RediGroup can grow and innovate thanks to a £1m cash injection from the Regional Growth Fund. Our great regions are the jewels in our crown, and I'm proud of our thriving industries in Yorkshire."

The RGF is the government's main source of funding for economic development and regeneration. Over 400 applications competed for a share of £1 billion funding in the third round of the fund.

RediGroup website

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