the report

REVENUE UP, GROSS PROFIT UP, PROFIT BEFORE TAX UP AND CASH AT BANK UP the region’s recovery is continuing and there are even better prospects ahead What is the yorkshire 2 o 14 Yorkshire Report? on the up & up

revenue £91bn (up 5%) taking the region’s gross profit £20bn (up 4%) temperature, examining its health and considering the profit before tax £3bn (up 18%) best course of treatment…

key figures cash at bank £10bn (up 22%) We compile the latest published accounts of Yorkshire’s 150 biggest companies (by revenue) and aggregate the figures to create a barometer of economic health for our region. Please note that we refer to the top 150 companies collectively as ‘the Group’ throughout the report and, as the Group’s composition changes every twelve months, year-on-year comparisons may not be like-for-like. CURRENT PREVIOUS CHANGE YEAR YEAR % As a proud region with a strong sense of identity, Yorkshire has its own distinct Revenue £90.7bn £88.7bn 2% economy. So why shouldn’t it have its Operating profit £4.56bn £4.34bn 5% very own annual review? That was the highlights thinking behind the first BDO Yorkshire Effective tax rate 32.0% 28.5% 12% Report and now, seven years later, we have charted our fictional Group through Dividend £0.9bn £1.4bn (36%) some of the most turbulent economic times in our region’s history. Investment in £3.4bn 2.9bn 17% property, plant & machinery No. of employees 470,000 479,000 (2%) Average salary £24,340 £23,730 3% Average director’s £183,000 £178,000 3% emolument Gearing 37% 41% (10%) 2014 | the yorkshire report 1

The latest results for the Group, comprising Yorkshire’s Top 150 companies, show the region’s recovery continuing and even better prospects ahead welcome contents

It’s a pleasure, after a number of tough years for the region, to introduce such an upbeat Yorkshire Welcome 01 report. Not only did the Group increase revenue and profit during the period covered by the report, FD Agenda 02 it also laid down the foundations for growth which we are already seeing come through. To highlight just People and jobs 03 three bits of evidence to support this: cash balances among Group companies reached record high levels; Access to finance 04 newer, leaner companies are joining the Group; and overseas sales are rising. Managing cash 05 With this positive outlook comes a major challenge – the M&A 06 need for management teams to switch from shorter- term thinking to a longer-term vision for growth. Exporting Yorkshire 07 The good news is we’re already seeing many of the region’s major companies Fraud and forensics 08 take that step by investing heavily in the future. But the fear is that Sustaining success 10 some management teams have spent so long with their heads down Driving innovation 11 firefighting that they may not look up and seize the opportunities for growth. Manufacturing 13

Whatever the sector or size, BDO will be Food and drink 14 supporting all our clients in navigating this new landscape. I hope you enjoy this report and that it Consumer markets 15 provides useful insights for you and your business. New energy 16 terry jones Lead Partner | Yorkshire Meet the team 17 Company profile 18 The 150 group 19 2 the yorkshire report | 2014 finance directors’ agenda WHO WANTS TO BE AN FD?

100 100 women in the It continues to be a demanding period for women % boardroom financial managers, with significant new regulation to contend with as well as the need There are over 100 women to refocus for growth. At least, with cash on the board of Group balances at record levels for Group companies, companies the pressures on day-to-day working capital But they appear to have lessened. represent only 12% of the total

More women are on the boards of top applicable, FRS 101 or the FRSSE. The directors’ pay Yorkshire companies than ever before. impact that these new standards will have recovering (£ ‘000) The Group had over 100 female directors on company results is causing many FDs during the reporting period, although sleepless nights. Will the new accounting 200 they represented just 12% of the total. methods make it look, externally at least, Boardroom pay remains a thorny issue as if the business is going backwards? 190 and that may explain why Group directors’ And could this lead to a breach of debt pay remains below 2010 levels. It is rising covenants? Adding to the regulatory 180 again though, as profits grow and success burden has been the need for non-listed is rewarded. companies to produce a Strategic Report 170 and for listed companies to meet new regulation ISA700 requirements for disclosure around From 1 January 2015, any company risk. As ever, thorough preparation and 160 currently using UK GAAP will need to professional support remain key to meeting have changed their accounting standards the challenge. 150 to either FRS 102, EU IFRS or, where 2010 2011 2012 2013 2014 2014 | the yorkshire report 3 people and jobs

KEEPING YORKSHIRE WORKING

Employment fell by 1.8% as a number of newer, less labour-intensive companies joined the Group – but on a like-for-like basis employment actually increased.

While some This suggests that, this time around, We also saw employers using new ways to growth and higher employment may not reward and incentivise their employees. sectors, such as be so closely correlated – evidence perhaps For example, by making use of salary that lower skilled jobs are being replaced sacrifice arrangements whereby part of an manufacturing and by fewer, more skilled ones. employee’s remuneration shifts from cash to non-cash benefits. In terms of red tape, employers had plenty technology, posted to deal with in 2013. As auto enrolment Looking ahead, it’s vital to our economy for pensions becomes a reality for even that the next generation of workers are double-digit Yorkshire’s smallest companies, so does being supported into our industries. the need to put in place the procedures, rises in employee policies and people to introduce and We therefore welcome initiatives administer it. aimed at reducing high levels of youth numbers, the unemployment and hope that proposals At the same time, employers had to get to offer incentives to employers taking on picture for the used to reporting PAYE information to HM young people will come to fruition in 2014. Revenue & Customs (HMRC) in real time Group was mixed. during 2013. 4 the yorkshire report | 2014 access to finance FUNDING IMPROVES, CHOICE WIDENS

gearing*

38%

37.9% 37.7%

36%

Our previous report showed Group Although their impact at the moment is gearing rising strongly, and this has still limited, we are starting to see new been maintained during the reporting lenders enter the market. New banks such 34% period, with gearing held at 38%. The as Metro Bank are looking to challenge wider picture is that access to funding traditional lenders; new concepts such as is improving but, as ever, it will only crowd funding and peer-to-peer lending be those with strong businesses and are beginning to gain some profile in the persuasive business plans that will find SME market. Asset based lending is coming the process straightforward. back strongly, driven by an increased requirement to fund working capital needs, 33% When it comes to lending to larger with the Asset Based Finance Association corporates, greater competition among recently delivering the strongest quarterly 32% banks for good risks is leading to lower figures since before the recession. In this and more consistent pricing. On the other changing landscape, and with so many side of the curve, demand has also been options available, it is vital to assess the rising, particularly for refinancing, with best funding route for your business and a number of Group companies taking to establish whether your primary lender advantage of the softening debt market has the appetite to fund you through what, and better trade outlook to improve terms for many Yorkshire businesses, should be a and/or build headroom for growth. For strong growth phase. Yorkshire’s SMEs, access to funding is more of a challenge, but one they appear to be 30% winning. As economic growth accelerates 2012 2013 2014 and consumer spending improves, this is feeding into companies’ future earnings forecasts and helping to unlock bank funds.

* excluding Banks and Utility Companies 2014 | the yorkshire report 5 managing cash

more help for uk exporters

What the 2014 budget can do for you: www.gov.uk/government/news/ budget-2014-further-action-to-enhance-uk-export-finance-support

As economic recovery drives orders up, Yorkshire businesses are facing one of their biggest challenges yet – financing the upturn

READY FOR TAKE OFF?

While part of the challenge is access to So it’s important to keep options open, But don’t get lost in the detail either. Step finance, it’s not just about cash in the making sure you understand your present back to consider if you have the right bank. It’s also about keeping a firm eye on lenders’ appetite and have back-up plans systems in place – from credit control to a wide variety of issues – from avoiding in place – and also be aware of support you cash management. Is your management too much concentration of business with can get from organisations such as UKTI. team, which has been busy firefighting one customer to ensuring that your trade its way through five years of economic insurance cover is keeping up with higher Careful stock control is essential. Don’t stagnation, ready and able for growth? levels of turnover. be lured into stocking up on the promise of orders, although stock finance, which is Don’t find out the hard way, because While overseas trade opportunities are becoming an increasing focus for asset- evidence suggests that as many businesses welcome and growing, be aware that some based lenders, could help. Invoice finance can fail in the growth phase as during the funders are averse to overseas debt and may also provide a lifeline as orders ramp downturn. may not step up to the plate when you get up. new orders. 6 the yorkshire report | 2014 m&a ACTIVITY PICKS UP, BUT MORE TO COME Activity in the region remained brisk, with 44 deals involving Group companies during the reporting period and a total of 401 in the region.

While the acquisition of BDO DEALS 2013/2014 activity picks up Yorkshire companies by overseas corporates, a 1 Sale of Branded3 Search ltd Value YTD 2013 1,653 to St Ives plc notable feature in last (£m) YTD 2012 1,257 Sale of Sterling Security ltd year’s report, has slowed, 2 % change 31.6 to Burg- wächter kg corporate bolt-ons and Volume YTD 2013 267 3 Management buy out of trade acquisitions became Trustmarque by Dunedin YTD 2012 251 a key trend, with Group private equity % change 6.37 companies such as Fenner 4 Floation of Utilitywise plc Sale of Bis NV *Deal Review and Advisor League Tables YTD2013 and Croda active in the 5 www..co.uk/corpfin and its subsidiaries market. to Mood Media Investment by Key Capital Overall there was a 14.5% rise in 2013 6 partners into WHP projects Yorkshire M&A activity and 2014 looks set to be even busier. 7 Acquisition of Staffcare ltd by Simplybiz ltd With interest rates low, the economy now growing, corporates boasting cash-rich balance sheets and banks eager to lend, a ‘perfect storm’ for deals is developing. The sell-side also looks buoyant, with corporates now able to realise good value from disposing of non-core subsidiaries. Their appetite for reinvestment is growing too, with many turning to opportunities in international markets for better returns.

Private equity players are finding markets attractive; but competing against resurgent trade buyers able to realise synergies has made it tougher to find well-priced targets. In terms of PE in the region, Yorkshire saw French private equity firm PAI Partners turn the tables on multiple acquirer R&R Ice Cream by scooping it up for £715 million in 2013. The mid market’s performance is strong too, with PE investors on track to register their best fundraising year since 2009. The window is very much open for capital markets as well, with a number of IPOs in the region having sparked its resurgence. With more in the pipeline, 2014 is showing no signs of slowing down. 2014 | the yorkshire report 7 EXPORTING YORKSHIRE

THE ROUTE TO GROWTH

While Europe, the UK’s biggest market That doesn’t mean exporting is easy, and for British goods, saw Group sales rise many mid-size and smaller Yorkshire 8%, this was almost matched by exports companies continue to struggle to to the rest of the world, up 7%. The icing overcome the barriers. on the cake was an increase of 21% in sales to Asian markets (albeit from a low base). Huge markets like China and India present obstacles and Brazil’s potential in 2014, When the domestic market was stagnating, on the back of the World Cup, must be exports provided a vital lifeline to growth, tempered by the heavily regulated nature This year’s encouraging many firms to step up their of some of its markets. efforts in overseas markets. Now that the report shows UK and global economy is picking up, the But help is at hand – whether from hard work is paying off. government agencies like UKTI and UK further progress Export Finance or BDO’s local expertise By leveraging Yorkshire’s reputation for and global network. on exports quality the region is reasserting itself internationally, with more production Now that the future looks brighter for Overseas Group returning to the region and the popularity many companies, the time is right to renew of Yorkshire brands to foreign buyers, efforts to access new markets. sales increased particularly in Manufacturing and Food & 7.7% and there Drink. is evidence the region’s top overseas sales increase companies are 2010 2011 2012 2013 2014 Europe 3,815 3,255 4,619 4,797 5,203 making inroads North America 1,141 1,193 1,992 2,332 2,478 beyond Asia 239 244 177 261 316 Africa 45 72 37 54 59 traditional Other/unspecified 2,009 2,525 2,792 2,927 3,991 export markets 7,249 7,289 9,617 10,371 12,047 8 the yorkshire report | 2014 fraud and forensics

YORKSHIRE GROWS, FRAUD GROWS

After a prolonged period of belt tightening, manufacturing sector fraud the return of economic growth can put Yorkshire’s resurgent manufacturing sector even greater pressure on resources – and is great news – for the region’s fraudsters. This trend is backed up allow fraud prevention to slip further down by our research, which management’s agenda. There are two principal reasons why manufacturing can be a magnet for shows reported fraud This is backed up by our research, which fraudsters. The first is that the sector was in Yorkshire more than shows reported fraud in Yorkshire more hit hard by the recession and had to get than trebling from £17m to £53m in 2013. leaner. Fewer employees can mean less trebling from £17m to The region overtook the North West, the segregation of duties in cash handing and South West and the whole of Scotland in payment processes. Add more recent

£53m in 2013. terms of the value of reported frauds of growth to this picture, and resources over £50,000. The reality of course is that become even more stretched. the vast majority of fraud goes unreported. The industries suffering most from The second reason is that manufacturers reported fraud continue to be financial operate within high-value supply chains services and public administration, both in where fraud can be hidden. As Yorkshire Yorkshire and across the UK, but all sectors manufacturers ‘re-shore’ activities to the and firm sizes are affected. UK, many are predicting that supply chain fraud will rise. Fraud is on the up, but proactive action can have major benefits. Stricter controls introduced to combat money laundering, for example, have brought more cases to light in 2013. Being aware of the risks and putting the right systems in place is vital to prevention of losses. 2014 | the yorkshire report 9

the top 10 causes of fraud in 2013 Why do frauds happen? We looked back over our 2013 casebook and identified the most common causes: • No whistleblowing policy • Staff being unwilling to blow the whistle because of a lack of confidentiality • Out of date, non-existent or ignored procedures and policies • A lack of due diligence on potential suppliers/ employees • Too little focus on wastage, allowing fraudsters to steal without being noticed • No segregation of duties and a failure to ensure employees performing key control functions take annual leave on occasion and therefore leave their systems open to scrutiny by others. • Inadequate systems for authorising and approval of transactions such as in purchasing • Insufficient management and oversight of employees on site and in remote locations • Lack of an asset register/ general record keeping • Levels of access to IT systems being disproportionate to employee role in organisation. common manufacturing frauds: The BDO Forensic Services team has helping flood victims Supplier fraud – false or inflated invoices, recently investigated a number of cases As well as supporting fraud investigations, amendment of supplier bank details, in the manufacturing sector, ranging from our Forensic Services team also plays a logistics or procurement fraud. stock and inventory fraud to fraudulent key role in quantifying losses for business, financial reporting and ghost employees. whether as part of court disputes or for Financial manipulation or accounting insurance claims. fraud – financial statement fraud, asset overstatements, intangible assets, stock We acted for a Yorkshire manufacturer fraud, revenue overstatements and quantify the full disruption to its business recognising costs in the wrong period. caused by an explosion. Our experience enabled the business to maximise its Employee-related fraud – ‘ghost’ insurance claim recovery. During the employees or contractors, fraudulent aftermath of the floods, our skills were also tender processes, misappropriation of in demand. assets, payment diversion and expenses fraud.

Customer fraud – unrecorded sales, account takeover, cheque frauds, long firm and short firm frauds, corporate identity fraud and VAT fraud. 10 the yorkshire report | 2014 SUSTAINING SUCCESS BOOSTING THE BOTTOM LINE

In the last Yorkshire Report we reported how sustainability was becoming crucial to business success. In 2013 it was driven even higher up the boardroom agenda by a number of regulatory and commercial pressures

It became compulsory The introduction of Phase 2 of the But perhaps the biggest sustainability story Government’s Carbon Reduction of 2013 was supply chain integrity and for listed companies to Commitment is requiring all businesses its critical role in maintaining trust, brand that exceed the energy threshold to value and market position. The horsemeat report greenhouse gas capture, document, submit and buy credits scandal is the obvious reference point, but (GHG) emissions from to set against their energy use. in fact the issue goes well beyond the Food & Drink sector. 1 October 2013 as a As Yorkshire companies rose to these challenges in 2013, many discovered Getting it right can not only help you result of changes to that by examining their energy use more to effectively manage risk and inspire the UK Companies Act carefully, they were able to realise valuable consumer and investor confidence, it financial benefits – from lower energy costs can also deliver significant commercial 2006. to meeting customers’ increasing demand advantage. for sustainable suppliers. 2014 | the yorkshire report 11 DRIVING INNOVATION Companies in sectors traditionally associated with innovation, such as technology, media and THE telecoms (TMT), are playing an KEY TO increasing role in the region’s GROWTH? economy.

european

sales This is supported by our figures showing up 28% that Group TMT turnover rose by 6.6%, driven by a 28% increase in European sales and a 10% rise in employee numbers.

But it is important to recognise that group tmt innovation is not just about new employee technologies and exciting designs: it plays a key role in the success of businesses in all numbers sectors. turnover up 10% up 6.6% During 2013 BDO partnered with the CBI to deliver a number of regional ‘M-Club’ events. These were aimed at medium- sized businesses and explore what drives innovation, the potential barriers to it, and the practical tools and techniques that can enable innovation.

Our Yorkshire M-Club event, held in February 2014, demonstrated the region’s appetite for innovation. Business owners and managers from a broad range of sectors, and at various points in the innovation journey, came together to share best practice and engage with the BDO team on building innovation into the business process. Key factors include clear vision, leadership, culture, process structure and governance. SECTORS 2014 | the yorkshire report 13 MANUFACTURING A PROUD HISTORY, A STRONG FUTURE

The contribution of manufacturing to the Group increased during the year, with employment per company up 9% and overseas sales rising nearly 10%.

In many ways 2013 was a turning point Challenges – from accessing export manufacturing rising overseas for the sector, as a combination of strong markets and skills to energy costs and sales UK sales and rising exports drove up orders lack of investment – have not, however, year and confidence. According to our recent gone away and will need to be addressed year 2014 survey with EEF this is continuing into if growth opportunities are to be fully year 2013 68.7% 2014, with a balance of 47% of Yorkshire realised. The private and public sector year 2012 66.6% manufacturers reporting order growth in must increasingly work together to 2011 64.2% the first quarter of the year. ensure we continue to capitalise on the 58.4% opportunities that a recovering market Yorkshire saw more manufacturing presents. City Region Enterprise returning to the UK instead of being Zone’s support for the provision of advance outsourced to Asia or elsewhere. A manufacturing facilities is an example of recent survey revealed that over a fifth of how this can really work. manufacturing companies in the region were planning to bring more work onshore The increase in the Annual Investment in 2014 compared to just 3% last year. Allowance to £500,000 is a welcome boost for the sector, but more could be Quality – a key driver for reshoring - has done by the Government. A temporary become synonymous with Yorkshire reduction in employers’ NI, for example, manufacturing. -based Klinger, a would help turn employment intentions world-leading supplier of sealing products, into a reality and support export growth by was one company to benefit through targeting those companies most likely to its emphasis on ‘Made in Britain’, seeing sell to foreign markets. profits rise by 20% in 2013. 14 the yorkshire report | 2014 food & drink

TOUGH, BUT GETTING BETTER IT WAS BUSINESS AS USUAL F&D companies continued to be caught There were positive signs too. Access to FOR THE FOOD & DRINK between inflation in their cost base, funding eased as banks and others saw MANUFACTURING SECTOR, generated by volatile energy and the sector as a relatively solid bet, while commodity prices, and the desire of increasing consumer confidence and lower WHICH MEANT MARGINS major supermarkets to keep prices down inflation should ease margin pressure UNDER PRESSURE AS TOUGH to attract cash-strapped consumers. As ahead. Yet perhaps the biggest opportunity CONDITIONS CONTINUED. a result pressure was felt throughout the lies overseas. Foreign buyers are eager to IN THIS CONTEXT THE supply chain, with a recent BDO survey access quality brands that can generate GROUP’S ABILITY TO finding that more than 80% of F&D international sales, and this is driving M&A manufacturers in Yorkshire experienced activity. Yorkshire companies are also MAINTAIN TURNOVER AND similar or worsening operating margins getting in on the act, with Group exports PROFITABILITY DURING THE in 2013. This was not helped by the rising during the reporting period and our PERIOD CAN BE SEEN AS AN horsemeat scandal, which brought a own survey revealing that, nationally, the ACHIEVEMENT. renewed focus on transparency and sector is targeting far greater overseas traceability for manufacturers, with little revenues ahead. A trend that Yorkshire, or no financial compensation for the added with its strong food production and responsibility. manufacturing sector, is well placed to benefit from.

TURNOVER POST TAX RESULTS PROFIT MARGIN YR 2014 6,218 153 2.5% YR 2013 6,134 87 1.4% YR 2012 5,386 124 2.3% 2014 | the yorkshire report 15 consumer markets

INVEST IN THE FUTURE OR ELSE?

To reinforce that message ’ recent profit warning hit the For those who tick the boxes, the retail and headlines, but its new strategic focus is investor appetite is clearly there, as we saw we need look no further perhaps the real story. Like Asda, which in the success of a number of consumer announced it is investing £750m in growth, market IPOs during 2013. For those who than Yorkshire’s two there is a growing realisation that the don’t, the need to address those issues has biggest companies: Asda market has changed forever and those never been more pressing. who fail to realign themselves will get left and Morrisons, who behind. looking ahead Just like the Group’s ‘Big Two’, retailers between them account Further evidence can be seen in the demise are investing to stay ahead, particularly for around 45% of of high-profile Group companies Comet in stock controls and mobile channels to and Republic. improve margins and build share. Despite Group turnover and rising consumer confidence there is little Consumer confidence is increasing and sign that value retailers will suffer from profits. inflation is under control but it won’t ‘trading up’. necessarily get any easier in consumer markets. It seems no longer enough to get Those higher up the price chain are looking most things right, now everything - pricing, to protect margin through adding value, service, online, mobile and delivery - needs while falling high street footfall will to be in place and integrated. increase pressure on those without the best online channels. 16 the yorkshire report | 2014 new energy THE PERFECT PLACE TO DEVELOP A LOW CARBON ENERGY INFRASTRUCTURE

Yorkshire has an abundance of natural and man-made assets that make it ideally placed to develop a low carbon energy infrastructure. Our rural and coastal areas offer great potential for wind, wave and solar power while waste from our farming and food processing sectors can provide fuel for renewable heat and power.

Nearby, major urban areas The good news is that this potential was Outside the region, Stobart’s decision to provide a strong market increasingly realised in 2013. City invest in providing specialised transport Region LEP established itself as a national services for biomass fuels demonstrates for energy as well as a leader, with a commitment to a low carbon how it’s not just new tech companies that manufacturing base driving future that can provide market-leading are realising the opportunities. demand for new, clean opportunities for clean energy solutions. Capital is available to back low carbon technology. Energy giant Drax opened its first biomass energy projects, provided they are power generator in North Yorkshire. structured and presented in the right way. Add to this the supportive nature of local government, the continuation of certain Other notable success stories include national incentives, plus the availability Sheffield-based ITM Power’s hydrogen of specialist professional services, and the power cell business and Powerstar’s unique opportunity is there for all to see. voltage optimisation system. 2014 | the yorkshire report 17

MEET THE TEAM

TERRY JONES PATRICK ABEL PAUL BATES Lead Partner, Yorkshire Partner, Corporate Finance Partner, Business Restructuring

0113 204 1284 0114 223 1703 0113 204 1233 [email protected] [email protected] [email protected]

CRAIG BURTON BILLY CAIRNS PAUL CLARKE Partner, Audit Partner, VAT Partner, Tax

0114 223 1760 0113 204 1306 0113 204 1331 [email protected] [email protected] [email protected]

TIM CLARKE LINDA COOPER MATT COPLEY Partner, Corporate Finance Partner, Audit Partner, Corporate Finance

0113 204 1211 0113 204 6148 0113 204 1217 [email protected] [email protected] [email protected]

PAUL DAVIES JAMES HAMILTON ANDY MAHON Partner, Audit Partner, Fraud and Forensic Partner, Government and Services Infrastructure

0113 290 6144 0113 204 1285 0113 290 6150 [email protected] [email protected] [email protected]

BOB MCNAUGHTON GRAHAM NEWTON MICHAEL PRATT Partner, Audit Partner, Business Director, Accounting and Restructuring Reporting Advisory

0113 204 6168 0113 204 1210 0113 204 1313 [email protected] [email protected] [email protected]

SIMON PRINGLE IAN SCHOFIELD JASON WHITWORTH Head of Sustainsbility and Partner, Business Partner Corporate Finance Cleantech Restructuring

0113 204 1273 0113 204 6176 0113 204 1237 [email protected] [email protected] [email protected] 18 the yorkshire report | 2014

COMPANY PROFILE THE GROUP

2014 2013 2014 2013 COUNTY CITY/TOWN

West Yorkshire Leeds Doncaster South Yorkshire Sheffield East Yorkshire Bradford North Yorkshire Hull Other

2014 2013 2014 2013 OWNERSHIP COMPANY TYPE COMPANY

Listed LLP Overseas Company Private Owned Private Limited Mutual Society Private Equity UK Company Unlisted PLC Quoted Mutual

YR 2014 £000 £000 £000 SECTOR TURNOVER PROFIT BEFORE TAX PROFIT AFTER TAX Retail - ASDA/Morrisons 40,959,400 1,292,200 888,800 Retail - Other 3,385,737 (69,392) (107,318) and Real Estate 7,343,456 274,418 198,249 Manufacturing - General 5,261,138 332,191 251,436 Manufacturing - Industrial 1,965,623 11,730 5,769 Manufacturing - Chemicals and Plastics 2,925,605 362,474 248,970 Energy, utilities and waste 5,396,119 14,263 59,238 Business services 4,440,432 155,085 132,369 Food and drink 6,218,074 208,055 152,731

SECTOR SUMMARY SECTOR Financial Services 4,386,297 510,335 382,379 Transport 4,051,419 110,860 92,573 Motor dealers 1,185,112 27,170 18,444 Public Sector 927,931 (30,383) ( 3,843) TMT 1,985,201 103,621 77,168 Hospitality and leisure 266,314 (346,182) (346,322) 90,697,858 2,956,445 2,010,643 2014 | the yorkshire report 19

THE 150 GROUP

Aarhuskarlshamn UK Ltd First West Yorkshire Ltd ABS Industrial Resources Ltd Fletchers Bakeries Ltd (Fennel Acquisition Ltd) Plusnet Plc ACICS Ltd Forza AW Ltd Polypipe Ltd (Hamsard 3054 Ltd) Acorn Mobility Services Ltd. Fuller Foods International Plc Poundworld Retail Ltd Advent Data Ltd Gardner Denver Ltd PPG Architectural Coatings UK Ltd AES Engineering Ltd GDF Suez (GDF Suez Sales Ltd and GDF Suez Premier Farnell Plc Allamhouse Ltd Marketing Ltd) Prosper de Mulder Ltd Allied Glass Containers Ltd GHD Group Holdings Limited Provident Financial Plc Andrew Marr International Ltd Go Outdoors Topco Ltd PSE Newco Ltd Andrew Page Holdings Ltd GRI Group Ltd R & RC Bond (Wholesale) Ltd Arco Limited Group Auto Union UK and Ireland Ltd R&R Ice Cream Plc (new R&R Ice Cream Ltd) Ardagh Glass Ltd Hallmark Cards (Holdings) Ltd Redfern Travel Ltd (AIT Travel Ltd) Arla Foods Ltd Redhall Group Plc Holdings Ltd Heron Food Group Ltd Renew Holdings Plc Arran Isle Ltd Howarth Timber Group Ltd Severfield-Rowen Plc Arrow Enterprise Computing Solutions Ltd Hudson Contract Services Ltd Sewell Group Ltd ASD Ltd Ideal Standard (UK) Ltd International Ltd ASDA Group Ltd (Broadstreet Great Wilson Europe Insight Direct (UK) Ltd Ltd Ltd) InterBulk (UK) Ltd SIG Plc Austin Reed Group Ltd (Gajan Holdings Ltd) International Fibres Group (Holdings) Ltd Skipton Building Society B. Braun Medical Ltd International Personal Finance Plc Sportswift Ltd (CF Topco Ltd) Barrett Ltd Irwin Mitchell LLP Style Group Holdings Ltd Bentley Holdings Ltd J R Rix & Sons Ltd Sulzer Pumps (UK) Limited Bettys & Taylors Group Ltd JCT600 Ltd Swift Group Ltd Borgwarner Holdings Ltd Jeld-Wen UK Ltd Symington's Ltd Brenntag UK Ltd John Cotton Group Ltd Symphony Holdings Ltd Bupa Care Homes (CFG) Plc KCOM Group Plc Tenet Group Ltd C F Booth Ltd Ltd (Lakeside 1 Ltd) The Big Green Parcel Holding Company Ltd Callcredit Ltd (DMWSL 620 Ltd) Kelda Eurobond Co Ltd The Car People Ltd Carnaudmetalbox Engineering Ltd learndirect Ltd The Fuel Card Group Ltd (Dyneley Holdings Ltd) Castlecrafts Ltd Leeds Building Society The Fuelcard Company UK Ltd Clipper Group Holdings Ltd LINPAC Senior Holdings Ltd The Harratts Group Ltd Communisis Plc London & Scandinavian Metallurgical Co Ltd Trustmarque Group Ltd CPPGroup Plc London Security Plc Tunstall Healthcare Group Ltd Cranswick Plc Lorien Ltd Turner & Townsend Plc Plc LuK (UK) Limited UFP (UK) Ltd Damartex UK Ltd Mamas & Papas (Holdings) Ltd UK Greetings Ltd Daniels Chilled Foods Ltd Manheim Europe Ltd Univar Ltd Dart Group Plc Maplin Electronics Group (Holdings) Ltd Van Dalen UK Holdings Ltd DB Schenker Rail (UK) Ltd Marshalls Plc Vasanta Group Holdings Ltd DePuy International Ltd McCain Foods (GB) Ltd Venice Newco 1 Ltd DFS Trading Ltd (Diamond Holdco Ltd) Minster Law Ltd VP Plc Dovecote Park Ltd (Extra Detail Ltd) MKM Building Supplies (Holdings) Ltd Wakefield and District Housing Ltd Dr. Oetker (UK) Ltd NG Bailey Group Ltd Weber-Stephen Products (UK) Limited Drax Group Plc Northern Gas Networks Holdings Ltd Wesco Aircraft Europe Ltd Dunhills (Pontefract) Plc Nufarm UK Ltd Willerby Holiday Homes Limited Ebuyer (UK) Ltd (The West Retail Group Ltd) Olam Food Ingredients UK Ltd William Jackson and Son Ltd Eggborough Power Ltd Stainless Ltd Wm Morrison Supermarkets Plc ELG Haniel Metals Ltd Oval Ltd WYG Plc Encon Ltd Pace Plc Yorkshire Building Society Fenner Plc Pegler Yorkshire Group Ltd For further information please visit www.bdo.co.uk/yorkshirereport

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BDO Northern Ireland, a partnership formed the yorkshire report in and under the laws of Northern Ireland, is licensed to operate within the international BDO for more information network of independent member firms. please contact © May 2014 BDO LLP. All rights reserved. CARLY ATKINSON t: +44 (0)161 817 7669 m: +44 (0)7581 490 425 e: [email protected] www.bdo.co.uk