2015

reaching new heights …with the mid-market leading the way plus FD AGENDA: Finger on the investment trigger? WOMEN IN THE BOARDROOM: Representing Yorkshire INTERNATIONAL: Exports on the up TAX: Good headlines, but watch the small print EDUCATION AND SKILLS: A growing crisis? MANUFACTURING: Making things happen FOOD AND DRINK: Sales up, profits under pressure key figures What is the sales up, cash up, Yorkshire Report? investment up, employment up

TOTAL CURRENT YEAR PRIOR YEAR CHANGE Turnover £102bn £96bn 6.9% taking the region’s temperature Overseas Turnover £9.5bn £8.8bn 7.7%

Profit (Loss) after £2.29bn £2.34bn (2.5%) As a proud region with a strong sense of identity, Yorkshire Tax has its own distinct economy. So why shouldn’t it have its Number of 620,000 591,000 4.9% very own annual review? That was the thinking behind the Employees first BDO Yorkshire Report and now, eight years later, we Net Cash £3.2bn £2.3bn 43.7% have charted the region’s performance during some of the Average Salary £19,000 £18,000 2.2% most turbulent economic times in its history. Dividends £1.7bn £1.0bn 69.6% Average Director £178,000 £150,000 18.1% This year we’ve expanded our fictional Group so it is Remuneration * now made up of Yorkshire’s biggest 250 companies (by Gearing Ratio ** 91.7% 85.6% 7.1% revenue). We aggregate the figures for their most recent Current year and prior year figures have been rounded up in this table and percentage published accounts (with year ends between April 2013 change is based on actual figures prior to being rounded up * Based on the number of current directors and March 2014), and then make a comparison using ** Gearing Ratio = (Long Term Debt + Short Term Loans – Cash) / Shareholder Funds previous year’s results to create a barometer of economic health for our region. Please note - we refer to the top 250 companies collectively as ‘the Group’ throughout the report and, as the Group’s composition changes every 12 what’s inside months, year-on-year comparisons may not be like-for- like. Welcome 01 The Yorkshire Powerhouse 02

Financial highlights 04

FD agenda 05

Business finance 06

M&A 07

Women in the boardroom 08

Tax 09

International 10

Education and skills 12

Innovation 13

Manufacturing 14

Food and drink 16

Transport and infrastructure 18

Technology and media 19

Retail 20

Meet the team 21

Company profile 22

The 250 Group 23

Basis of preparation 24 2015 | THE YORKSHIRE REPORT 1

The region has recovered well Welcome and is growing strongly, with cash in the bank, investment and employment all rising.

Yorkshire’s vibrant economy is fuelled by businesses of all sizes, and to reflect this we have made some exciting changes to the report. For the first time, the Group is made up of the region’s Top And the future looks bright. All the major political parties are 250 companies. That means it now includes more mid-market committed to creating a ‘Northern Powerhouse’ and investing firms that are not only vital to the region’s success today, but in Yorkshire and the surrounding area. The Treasury has set could become the giants of tomorrow. a target to raise the long term growth rate of the north (currently around 3.7%) to equal that of the UK (4.2%). Even Yorkshire’s mightiest firms started off small and, as a champion of the mid-market, BDO is committed to providing But does this match the scale of our ambitions? We think we hands-on support to help local businesses grow successfully. can do more than just match that of the UK. To do this our The figures support this move, demonstrating that mid- report also suggests a number of policies that will deliver market firms are leading the way in many areas. Profits, growth. From zero-rating VAT on supplies to companies that overseas sales and employee numbers have all risen quicker export as well as investing in apprenticeships and skills, policy for mid-market companies than they have for the largest. makers can have a big impact on the future success of the region. So what’s the big picture? The region has recovered well and is growing strongly, with cash in the bank, investment and I hope you enjoy this report and it provides useful insights for employment all rising. The challenge is to leverage that cash you and your business. These are exciting times for Yorkshire to take the next step - grabbing those bigger opportunities businesses. that can accelerate growth and increase margin.

TERRY JONES Lead Partner | Yorkshire 2 THE YORKSHIRE REPORT | 2015

TheYorkshire Powerhousea regional review

It’s all happening in Yorkshire. The region PHASE TWO HS2 is bursting with new developments and Proposals of Phase Two of HS2 are expected to benefit economic promise. So much so, in fact, that Yorkshire with a new station at Leeds New Lane, slashing it can be hard to keep track. journey times to Birmingham to 57 minutes and London to 1 hour 23 minutes. While debate rages over the future of the Which is why we are summarising some of the top initiatives initiative, initial estimations predict that HS2 could boost and regional investments. Take a look at what is going on in South Yorkshire’s economy by up to £0.9bn every year and your neck of the woods… West Yorkshire’s by £1bn.3

NORTHERN POWERHOUSE The Government has cemented its commitment to building the ‘Northern Powerhouse’ to boost growth, prosperity and ensure our recovery is sustainable for the long term. Rumour has it that Yorkshire already creates more jobs than in the whole of France. We play a large part in building a northern economy that punches its weight in the world. With the aim of joining the northern cities together, Osborne is WESTFIELD’S BRADFORD DEVELOPMENT under pressure to invest £15bn in transport, infrastructure 2014 saw construction commence at Westfield’s £275m and science. Commitments have also been made to cut Bradford Broadway development, which is on course to journey times on trains between Leeds, Bradford, Sheffield, be delivered in autumn 2015, creating a vibrant new retail Manchester, Liverpool and Hull.1 destination at the heart of Bradford.4

MAJOR ROAD INVESTMENT Yorkshire is benefiting from £2.3bn in road investment which will transform the major corridors of the M1, M62 and A1, creating an estimated 1,500 construction jobs. The funding will see smart motorways extended westwards along the M62, crossing the Pennines to link Leeds and Manchester. This will be the first major increase in trans-Pennine capacity since 1971. The last non-motorway section of the A1 is to be upgraded between Redhouse and Darrington, reducing congestion and creating a new corridor to the North East.2

CITY REDEVELOPMENT Leeds City Council have approved plans to convert the former Yorkshire Post site on Wellington Bridge Street in Leeds which will provide around 50,000sqm of office floorspace, 200 homes and a range of other uses, including cafes, shops and leisure facilities.5 The Government has also pledged £3.7m for the renovation of the derelict police headquarters in Leeds, and £3.5m to Sheffield’s former Co-op store to create a six- floor business incubator and tech hub respectively. 2015 | THE YORKSHIRE REPORT 3

TheYorkshire Powerhousea regional review

NORTH YORKSHIRE SOUTH YORKSHIRE TOP 250 BUSINESSES: 36 | TURNOVER: £10.3BN TOP 250 BUSINESSES: 53 | TURNOVER: £11BN • With over 55,600 businesses based in the area, 85% • Sheffield City Region is to benefit from a £180m EU employ less than ten people.6 funding programme which is designed to enhance • Tourism in York continues to go from strength to economic growth, create jobs and boost skills training in strength. 2014 was a record year for hotel occupancy the area.13 with 83% of hotel rooms occupied and the second best • The Sheffield City Region’s economy has an output of year ever for attractions with 3,057,079 visitors going more than £28.2bn.14 through the doors of York’s attractions.7 • In Sheffield, nearly 30,000 people work for themselves, • The York, North Yorkshire and East Riding Growth which equates to around one in ten people over the age Deal has secured £122.2m in Government funding of 18.15 which will support the LEPs ambition to become a • Plans for the first Advanced Manufacturing Innovation national and international centre for food, agri-tech District in the UK are moving forward in the Sheffield and bio-renewables as well as promoting business City Region, creating Europe’s largest research-led growth investment, infrastructure investment and skills advanced manufacturing cluster.16 creation. It is estimated that up to 5,000 jobs could be created and 5,000 new homes built.8

WEST YORKSHIRE EAST YORKSHIRE TOP 250 BUSINESSES: 132 | TURNOVER: £72.4BN TOP 250 BUSINESSES: 29 | TURNOVER: £8.4BN • The Leeds LEP agreed a £1bn Local Growth Deal in 2014 • The food and drink sector is one of the largest sectors with the Government to help accelerate economic in Hull and provides employment for around 45,000 growth and create new jobs across the region. The deal people across the Hull and Humber sub-region.17 includes £627m to deliver the LEPs Strategic Economic • The Port of Hull is one of the UK’s leading foreign- Plan and £420m to deliver the West Yorkshire Plus trading ports, handling in excess of 12m tonnes of Transport Fund.9 cargo each year and nearly one million passengers take • 66% of the world’s turbo chargers are manufactured in advantage of the ferries. In the region of 16,000 jobs in the areas around Huddersfield and Bradford.10 the city relate to port activity.18 • With the largest manufacturing employment base • 1,000 jobs are being created as part of Siemens £160m anywhere in the UK, it currently employs 160,000 investment to build an offshore wind manufacturing site including 47,000 in engineering alone. Key sub- in East Yorkshire, with its port partner Associated British sectors include textiles, electronics, printing, medical Ports (ABP) investing a further £150m.19 equipment, automotive engineering and aerospace and energy components.11 • Food and drink companies in Leeds spend more on R&D than anywhere else in the UK. Yorkshire generates 12.5% of the UK’s food and drink turnover and the sector is growing at a rapid rate.12 4 THE YORKSHIRE REPORT | 2015

FINANCIAL highlights

The Group this year consists of the Top 250 companies in Yorkshire. The table below includes a breakdown of the Group’s totals, which is then split between the Top 50 companies and the mid-market 200.

TOTAL TOP 50 MID-MARKET 200 CURRENT PRIOR CHANGE CURRENT PRIOR CHANGE CURRENT PRIOR CHANGE YEAR YEAR YEAR YEAR YEAR YEAR Turnover £102 bn £96bn 6.9% £80bn £76bn 5.2% £22bn £20bn 13.2% Overseas Turnover £9.5bn £8.8 bn 7.7% £6.7bn £6.5bn 3.6% £2.8bn £2.3bn 19.3% Profit (Loss) after Tax £2.29bn £2.34bn (2.5%) £2.00bn £2.06bn (3.2%) £0.29bn £0.28bn 2.9% No. of Employees 620,000 591,000 4.9% 462,000 449,000 2.8% 158,000 142,000 11.6% Net Cash £3.2bn £2.3bn 43.7% £2.4bn £2.2bn 10.7% £0.8bn £0.1bn 820.0% Average Salary £19,000 £18,000 2.2% £17,000 £17,000 2.1% £22,000 £22,000 0.9% Dividends £1.7bn £1.0bn 69.6% £1.4bn £0.9bn 58.6% £0.3bn £0.1bn 161.9% Average Director Remuneration * £178,000 £150,000 18.1% £359,000 £272,000 32.0% £128,000 £117,000 9.4% Gearing Ratio ** 91.7% 85.6% 7.1% 92.8% 84.3% 10.1% 87.3% 91.5% (4.6%)

Current year and prior year figures have been rounded up in this table and percentage change is based on actual figures prior to being rounded up * Based on the number of current directors ** Gearing Ratio = (Long Term Debt + Short Term Loans – Cash) / Shareholder Funds key findings • Mid-market companies outperform the Top 50 in terms • Group Net Cash was in excess of £3.2bn, an increase of of increases in overall turnover, overseas sales, employee £0.9bn (44%), continuing an upward trend from 2014. numbers and profits. Again the mid-market 200 underpinned this increase with growth of £0.7bn. • Exports up £0.7bn (7.7%), and now represent 9.3% of total sales. Growth driven by the mid-market 200 which • Group Gearing remains high as long term debt has grew by £0.5bn (21.7%). increased by 15% to accompany the cash increase. This increase is driven by the Top 50 with gearing in the mid- • Asda/Morrisons account for 40% of the Group turnover market 200 declining. and the decline in total profits is driven by their performance. The mid-market 200 grew profits by • Directors’ remuneration at Group companies rose by £0.01bn (2.9%) and employment in the Group grew by 18% with a significant marked increase for the Top 50 4.9%. against the mid-market. 2015 | THE YORKSHIRE REPORT 5

FD AGENDA: finger on the investment trigger?

PAUL DAVIES BDO Head of Audit - Yorkshire

The recession handed FDs an even bigger highlights and data on page 4, the mid-market 200 are role at the boardroom table, as cash performing extremely well. It is here where we may expect became king and the ability to future change and bullish decision making. manage it, vital to survival. Now, Looking at financial reporting, 79% of Group with cash levels high and economic companies were still using UK GAAP accounting conditions more favourable, FDs find standards. This means that significant issues their companies at a tipping point. 79% around the conversion to FRS 102 have yet to Will natural caution prevail – or will of Group be addressed. Our advice is to start now. In our they press ahead for growth? companies experience there are more ramifications than were still using companies expect, with the changes potentially Confidence certainly seems to be rising. Turnover UK GAAP impacting profits and tax. This in turn could accounting affect commercial and practical areas such as and employment are up and in order to drive standards profit the focus will turn to increasing productivity. debt covenants, management agreements or Balance sheets are strong, cash sits at record levels remuneration and share-based schemes. and the conundrum becomes how companies can secure a return from that cash in the future. As seen in the financial 6 THE YORKSHIRE REPORT | 2015

BUSINESS FINANCE: Group gearing the time to invest increased by

MATT COPLEY 7% BDO Corporate Finance Partner - Yorkshire

Instead of a funding gap, are businesses now facing an investment gap? With better access to finance and balance sheets looking favourable lending terms available from both banks and new healthier, the real challenge for Yorkshire companies may private debt funds. be finding a suitable opportunity to invest. That appears to be the message from the figures in this year’s report and our For the first time in a while, many businesses are almost experience of working with companies in the region. spoilt for choice. New so-called challenger banks are looking to build market share and debt funders offering Net cash at bank for the 250 companies was more unitranche solutions to aggressively target the market. than £3.2bn - an increase of over 40% compared to Asset-based lenders are also increasing their previous year’s figures. With such a strong cash appetite and are giving smaller businesses – position, and a lack of appetite for debt, it is some of whom are still finding funding less easy not surprising that Group gearing remained flat at to come by – an alternative route to finance. 91.7%. Looking ahead, funding conditions should remain strong Banks, with economic conditions improving, are in a better and supportive of growth. To make the most of this position to lend and more willing to do so. According to the environment, the region’s businesses must be able to find Bank of England, there has been a consistent improvement the right opportunities and have enough confidence in the in available funding over the past 12 months. Mid-market returns model to increase investment. companies seeking debt in excess of £10m are seeing 2015 | THE YORKSHIRE REPORT 7

With company balance sheets healthy, private equity lively and bank funding M&A: readily available, 2015 is already seeing a surge in deal activity. DEALS RISE Looking back to 2014, Yorkshire experienced varied levels of M&A activity. After a slow start to the year, momentum - and so do prices gradually built up and led to a busy third and fourth quarter. JASON WHITWORTH A total of 419 deals were announced in Yorkshire and the BDO Head of M&A – Yorkshire Humber for 2014, representing a 9.7% increase from 382 transactions in 2013. SELECTED BDO DEALS 2014 Acquisition of Staffcare and Home Information Group by The first six months of 2014 saw a number of major IPOs in Simply Biz the region, including Polypipe and Card Factory, with market caps of over £500m and £1bn respectively. In the third quarter Sale of Cascade Human Resources to IRIS Software Group however, we saw the capital markets take a pause for breath, Acquisition of Coactiva by Callcredit but a renewed appetite for deals among trade and private Acquisition of Epiphany by Jaywing plc equity (PE) led to a strong uptick in M&A activity. Acquisition of laser marking business TYKMA by 600 Group plc Strong cash balances and good access to finance gave Reporting accountant on the sale of Spear & Jackson corporates plenty of firepower for trade bolt-ons and Refinancing of Yorkshire Carnegie strategic acquisitions. Larger corporates including Fenner, SIG, EMIS and Communisis continued aggressive acquisition Refinancing of Chaophraya restaurants strategies. Private equity has not been left behind, as key firms like Inflexion and ECI raised substantial new money for investment. PE activity in the region has been strong and included CBPE’s £130m deal with Allied Glass Containers and LDC’s £60m acquisition of Adler & Allan shortly followed by its £207m buyout of SSP. International investors have also been busy in Yorkshire, with one of the largest deals of 2014 seeing Sheffield-based, but US PE-owned, Firth Rixson bought by Alcoa for £2.5bn and more recently US-based ARRIS has acquired Pace plc for $2.1bn.

Yet there is always a price to pay for such highly charged deal activity. BDO’s Private Company Price Index (PCPI) hit an EV/ EBITDA ratio of 11.7x at the end of the year. This was driven not only by high demand but also low supply, as good quality targets remain thin on the ground.

Looking ahead, as earnings continue to grow we expect M&A activity to maintain its upward trend. Substantial funds across trade and private equity will continue to compete for quality assets. As corporates look to invest in higher growth, we could also see the return of the management buyout in the second half of the year. representing Yorkshire WOMEN IN THE BOARDROOM: 8 addressing this imbalanceis through The Pearls Programme, One way many businessesin Yorkshire, includingBDO,are successful. moreare typically – gender,sexual orientation ethnicityor Companies with more diverse staff–be that in terms of working. ways of new differentand ways ofthinking achieve highersalesandreturns, bringing together more diverseboardsResearchwith shows thatcompanies management team. senior it more likely for women to bepart of the perhaps assomeare family-owned, making market businesses fared slightly better, gender make-up of most companies. Mid- to gobefore itmore accurately reflects the previous years, butit clearly hassome way are women. This maybehigher than members at Yorkshire’s Top 250 companies Our analysis reveals that 17% of board

BUSINESS VIEW THE YORKSHIRE REPORT |2015 I think having a point to prove spurs them on to do just that.”provespurs themontodo point to a having I think working than those full time. wayoforganising a themselvesseem to todeliverfind what’s They required. Enabling flexible workingis key. We have often found thataparent workingpart time wasmore effective and efficient of senior females hasbeenhigh, Iappreciate that there are stillsituations where women are overlooked. Although Yorkshire plcismakingprogress, andinmy experience in bothmy current and former business the proportion experience andhasamanagement team that works well together. “It’s notaboutbeing a female in the boardroom. It’s about ensuring the businesshas the rightbalance of skillsand BDO Audit Partner - Yorkshire LINDA COOPER Chief Financial Officer,Chief CTI Zoë Tibell,

that could help propel the growth of Yorkshire plc. of senior women reveals a disastrous loss of talented people recruit about50% female graduates, so the smallproportion losing highly-skilled staff. Itisnotunusual for businesses to have beenguiltyin the past of Many professions andindustries boardrooms ofthe future. representationin the gap of bridging the aim of with the achieve what theycan in potential andhave confidence in theirown believe women to and encourage support is to aim The talent. female nurture and helping todevelop is mentoring and online support of skills-focused learning, Piloted in our Leeds office since October2014,itsmix inspire more women from middle to seniormanagement. run by An Inspirational Journey, which aims to guideand Thereboard are 265womenonthe represent only of but they Group companies women 265 17% ofthetotal.

100% 2015 | THE YORKSHIRE REPORT 9

TAX: GOOD HEADLINES, but watch the small print

TERRY JONES BDO Tax Partner - Yorkshire business view The Group’s effective tax rate fell from 29% to 27%, reflecting a further “As a mid-market corporate based in Yorkshire, we reduction in headline corporation tax, had limited interaction with HMRC. Yet following a UK which is now at the equal lowest rate acquisition by our international group, which took our among all G20 economies. turnover to £400m, we have since been allocated a Customer Relationship Manager and have access to a HMRC team who we can liaise with in real time. More good news is that we have seen an increasing uptake of HMRC R&D relief schemes during the year, There is now open dialogue and HMRC better particularly by larger companies taking advantage of the understands where we stand with regards to tax more beneficial Research and Development Expenditure strategy and policy. It also understands that, from a Credit (RDEC) Scheme, which now incorporates governance perspective, we have operated within the repayable credits for loss making companies. For Sarbanes Oxley rules for many years. We believe that innovators in the region, 2015 will be an interesting year this dialogue not only provides clarity for HMRC, but as businesses file their first Patent Box claims ahead of allows us a greater degree of certainty as to how we will statutory time limits and the proposed closure of the be handled by HMRC in the years to come based upon existing regime to new entrants from 2016. our behaviours and risk profile as an organisation.

While the region’s largest companies have long In my opinion, it’s a shame we had to wait to become benefitted from a collaborative relationship with a ‘big’ business to get this certainty. Medium-sized HMRC, enjoying a dedicated Customer Relationship businesses make a huge contribution to the economy, Manager (CRM), mid-market companies have not. it seems only right that they too get the service and This, as we lay out in our Mid-Market Manifesto (www. support they need from HMRC to help them become midmarketmanifesto.com/), is depriving a vital and the big businesses of tomorrow.” vibrant section of the economy of the opportunity to increase certainty and reduce risks. Kevin Vaux Finance Director Talking of risks, Group companies which have entered UK Greetings Limited into tax planning arrangements that are now being looked at by HMRC and the Courts in a harsher light, are concerned about the outcome - both from a financial and reputational perspective. This is especially acute as HMRC’s increased powers in relation to Accelerated Payment and Follower Notices are designed to ensure that tax is payable up front – pay now, argue later. Companies and individuals need to be fully prepared to deal with both the financial and commercial implications of receiving these notices. 10 THE YORKSHIRE REPORT | 2015

INTERNATIONAL: exports on the up

DAN BROOKES BDO Head of International Tax – Yorkshire

A massive £9.5bn of goods and services Over the last 18 months, Yorkshire exporters have faced an were exported by Group companies during unfamiliar challenge: after a long period of sterling weakness the reporting period, a rise of 7.7% on the the pound has strengthened against the euro, making exports more expensive in the region’s biggest market. This looks set previous year. This is welcome news for to continue through 2015, with those supplying the oil and regular readers of the Yorkshire Report, gas industry also likely to feel the full force of the fall in the oil which has for the last five years been urging price. the region’s businesses to step up their export ambitions as a route to Another significant issue for exporters over growth. the coming years are proposed changes to the international tax regime under the OECD’s Base Erosion and Profit Shifting (“BEPS”) Action Plan. But we do not underestimate the challenges in of the These changes are motivated by both public doing so, and our Mid-Market Manifesto calls 58 Yorkshire 250 concern and the need to adapt legislation to the on the Government to consider four key policy are owned new digital and global environment. Whatever recommendations designed to help mid-sized by overseas the outcome, it is vital that any changes do not businesses export more confidently. The four companies damage the UK’s competitiveness as a trading policy recommendations are: nation. • Reduce the overseas tax barriers for UK exporters opening a new branch or subsidiary overseas • VAT zero rating of supplies to companies that export Looking ahead we expect the region’s exporters to remain • Building confidence through UKEF and UKTI resilient in the teeth of some strong headwinds, most • Reducing the regulatory burden. notably the strength of sterling and should some early signs of improvements in Europe build momentum this opens up We welcome the work of UKTI and UK Export Finance in opportunities. helping Yorkshire companies overcome the cultural and financial barriers to overseas trade and seize the considerable opportunities. 2015 | THE YORKSHIRE REPORT 11

Mid-market Group BUSINESS VIEW companies saw Acorn has witnessed incredible international growth in the last few years overseas sales rise and is the winner of the Made in Yorkshire Export Award. An Acorn stairlift is installed by 19%. every nine minutes somewhere in the world, with exports now generating nearly 60% of the firm’s turnover.

“The international opportunities for mid-market firms are huge. With our multi-lingual export team based at our head office in Steeton, which has grown by 50% in the last 12 months, we strive for sustained growth and success in overseas markets, particularly in North America, Germany, Italy, Spain, France and Australia.

In some of these countries Acorn is now the clear market leader for stairlifts and, by being the only supplier in the world that can install a bespoke rail the next day, we have created a major advantage over our UK and international competitors.

Many medium-sized businesses have the ambition and appetite for international expansion. However, they lack the confidence to take the leap. Businesses need more support to help map out their international journey. Importantly, they also need access to the right advice, experts and funding to implement their plans.”

Dave Belmont Company Secretary Acorn Stairlifts 12 THE YORKSHIRE REPORT | 2015

EDUCATION AND SKILLS: a growing crisis?

CRAIG BURTON BDO Audit Partner - Yorkshire BUSINESS VIEW

With growth and investment firmly back Reliance Precision has invested in on the agenda, skills shortages pose a apprentice recruitment and training real threat to the regional economy. Put consistently for over 60 years. It believes bluntly, if we don’t have people with the education and skills are an essential right skills, our region won’t be able to foundation for any business, with apprenticeships playing a particularly key grow. role in the engineering environment.

Nowhere is this truer than in manufacturing, the biggest The firm has recently celebrated the retirement sector in the Group, where past recessions put a stop to of its longest serving apprentice, a manufacturing recruitment and prevented a new generation being trained engineer in Huddersfield who spent 50 years at up. Now the region’s success in advanced manufacturing is Reliance. firmly established, it is good to see apprenticeships on the up again, but it takes years to create highly-skilled workers. “Apprentices are a core part of the technical As a result, we have a gap between highly-skilled older knowledge base and hands-on experience of workers close to retirement, and recent recruits still learning the company, and this is pivotal to the specialist services we provide to our customers. the skills. The strong retention rate amongst apprentice- There are no easy answers but all angles must be addressed trained employees provides real stability to our – from wide-ranging education reforms, to carefully targeted workforce. Our regular intake also helps underpin initiatives aimed at specific industries. The stakes are high: the flexibility of the company, continually in fact Engineering UK reckons that a shortage of skills could regenerating our traditional skills while exploiting cost the UK as much as £27bn, and that Yorkshire and the new opportunities as technology evolves.” Humber will need 13,000 new engineers each year to keep pace with demand. Andrew Wright Managing Director Reliance Precision Limited 2015 | THE YORKSHIRE REPORT 13

INNOVATION: being alive to change

SIMON PRINGLE BDO Head of Sustainability and Innovation Big enough to invest in change, small enough to do so quickly and effectively, the mid- market can lead the way when it comes to innovation.

Across all sectors and sizes, innovation is about more than new technologies and exciting designs: it is fast becoming the only way to succeed in rapidly changing markets. This can mean developing new products and services, but also looking at all aspects of your day-to-day business. We’ve seen companies in the region applying innovative, sustainable solutions to reduce waste and cut costs, and examining how they can work in new, collaborative ways to address major issues that are too large for any one company to solve.

The insight gained from the ‘M-Club’ workshops, which saw BDO and the CBI meet a range of UK mid-sized companies to discuss innovation, helped us to test and further refine the BDO Innovation Model. This is now featured as part of a dedicated BDO Innovation microsite (www.bdo.co.uk/ innovation) which provides useful resources to help you develop and embed innovation in your organisation.

Companies in the region are increasingly alive to the fact that they need to respond quickly to change. Our practical experience of helping Yorkshire companies to understand, explore and develop innovation in their business, means we are strongly positioned to help throughout this process. 14 THE YORKSHIRE REPORT | 2015

MANUFACTURING: making things happen

JASON WHITWORTH BDO M&A Partner - Yorkshire

The region’s manufacturers earned a third of Group profits. They generate half of international sales and employ 72,956 people. After a long decline, the backbone of our economy is back on track with Yorkshire manufacturers today demonstrating every bit as much imagination and ambition as their predecessors centuries ago. It is clear there is real appetite for Yorkshire-built products on the global market. Many companies in the region are significant exporters, with our innovation and quality held in high regard around the world. Britain’s industrial forefathers would be proud. 2015 | THE YORKSHIRE REPORT 15

Yorkshire’s manufacturers bucked the general trend in this year’s report, with profits rising rapidly on flat turnover. Headcount held steady and wages inched up by just 1.3% as the sector continued to keep costs well under control. If there is any disappointment in these figures it is that, despite a marked improvement in macro- economic conditions, overall sector sales did not grow.

Exports remain a key opportunity for growth. As businesses look to compete in international supply chains, the value of investing in innovation, service and quality of products becomes ever clearer. Fundamental to all of this is the training of our next generation of talent across all levels - from skilled operatives through to management. Our Mid- Market Manifesto explores some of the issues in more detail.

There were also a number of more specific, short-term headwinds to face. The rising value of the pound impacted MANUFACTURING: the competitiveness of our products in international markets, while lower oil prices reduced demand and squeezed margins making things happen for Yorkshire manufacturers providing services to the oil and Manufacturing gas industry. Overall, our strong manufacturing base proved resilient represents and continues to make progress towards addressing these over 70 of challenges. Investments in our region are proving their worth: the 100-acre Advanced Manufacturing Park in South Yorkshire’s Yorkshire continues to attract support from global players, including Rolls Royce. There was a further boost with plans biggest 250 announced to create the world’s most advanced factory at the site. This £43m project will add to the region’s status companies. as a centre for high-value manufacturing, a position firmly reflected in the make-up of the Group, with manufacturing representing over 70 of Yorkshire’s biggest 250 companies. 16 THE YORKSHIRE REPORT | 2015

FOOD AND DRINK: sales up, profits under pressure

PAUL DAVIES BDO National Head of Food and Drink

Turnover and employment rose strongly but of big brands, supply chain security and healthy eating. We the squeeze on margins continued, driven expect these trends to carry through into the second half of by the intense price competition between the year and, judging by the recent merger between Heinz and Kraft and the acquisition of Iglo Foods by Nomad Foods, the established supermarkets and the consolidation is still very much on the cards for the biggest discounters. More positives for the region’s companies. food and drink industry, which is the third largest sector by turnover in the Group, Looking ahead, Tesco’s early recognition of commercial were falling input prices for some soft income, which led to the overstating of profits by £263m, could yet provide a boost for food companies. That’s because commodities and lower energy prices. it has brought to light a practice that, although commonplace in the sector, was unfamiliar to the average member of the Despite the tough economic backdrop, M&A activity in public. the sector remained high, with £45bn of UK food and drink deals done in 2014. This trend was reflected in Yorkshire This increased attention and scrutiny could benefit with notable deals including the acquisition of TSC Foods by suppliers in the longer term, by leading to simplified pricing Billington Group and the sale of Fletchers Bakeries by private agreements with their key customers. But perhaps the real equity firm, Vision Capital, to Finsbury Foods. light at the end of the tunnel is the UK consumer, who will have more money to spend as positive real wage growth As reported in The BDO Food and Drink Report February returns. 2015 (www.bdo.co.uk/news/the-food-and-drink-report- february-2015) the main drivers of M&A were the attraction 2015 | THE YORKSHIRE REPORT 17

Calbee UK, based in Leeds, has launched equipped to adapt to change. We have purposely developed a flat structure for the business, which means its first savoury snack brand, Yushoi. we can move quickly and be more agile than our larger Made using green pea and rice, it is less competitors. Decisions can be made and implemented than 99 calories per pack, baked, high in without the need for long drawn out processes. protein and fibre, dairy free and suitable As we have something completely unique to share we

business view for vegetarians and vegans. are able to capitalise on an ongoing trend for innovation, taste and healthier options. We hope to achieve a “The food and drink industry has changed over recent turnover of £65m in the next five years thanks to the years with a greater focus on new and innovative business model that we have in place, which includes products. Consumers want something different that they being a company that is driven by real values.” can enjoy but also know that the snacks they are eating are better for you without compromising on taste. Richard Robinson Although Calbee UK is a new business, we have years Managing Director of experience within the FMCG marketplace and are Calbee UK 18 THE YORKSHIRE REPORT | 2015

TRANSPORT AND INFRASTRUCTURE: CHALLENGES ON THE ROAD

SAMUEL IRVING BDO M&A - Yorkshire

Better connecting our cities to enhance skills, talent and trade networks plays a “Creating a successful Northern crucial part in creating an agglomerated Powerhouse will require strong ‘supercity’ that could rival London as a leadership to bring together regions that global hub. have traditionally seen each other as competitors. We will need to recognise Key to realising this vision are significant infrastructure each other’s strengths and forget improvements, including a proposed freight corridor differences – it is about investing for the between Liverpool and Hull, the widening of the heavily future.” congested M62 motorway and upgrades to both Leeds Bradford and Doncaster airports. As well as helping to TERRY JONES unlock the full potential of our region and the North as a Lead Partner - Yorkshire whole, they could also be a boon for one of Yorkshire’s key – yet often unsung – industries: logistics. particularly around Euro 6 and CPC training, has increased Yorkshire’s networks and global expertise is evident from costs and created a shortage of qualified drivers. But for the success of Group logistics companies such as Clipper well-managed logistics providers these regulations have, and Hoyer Petrolog. In addition, global freight forwarders by raising the barriers to entry, actually supported some such as Torque Logistics and Ligentia Group play a key price increases – a rare silver lining in an aggressive pricing role in connecting Yorkshire to international markets. Dart environment. Group plc also continues its investment in the region for both aviation and distribution. The political challenges on the road to creating a truly effective ‘supercity’ are many and complex. But the Lower fuel prices, rising overseas sales and increased benefits of infrastructure improvements are clear and can online deliveries secured a strong year for the sector, but pave the way to a long-term, sustainable and successful there remain challenges to overcome. Greater regulation, future for the region. 2015 | THE YORKSHIRE REPORT 19

TECHNOLOGY AND MEDIA: a growth story

OVERSEAS SALES PROFIT UP 36% BEFORE TAX UP 20% REVENUE UP 8%

MARK LANGFORD BDO Audit Partner - Yorkshire

Higher growth and strong margin saw New product development and strong intellectual property Yorkshire’s technology and media sector are central to the sector and here HMRC’s R&D tax credits post a 20% increase in profit before tax and Patent Box scheme are providing valuable relief to many of the region’s technology companies (see page 9 for details during the reporting period, with turnover of important changes to the Patent Box scheme). up 8% and headcount up 18%. Overseas sales rose a healthy 36%. In a sector where growth can be meteoric, it is important that the region provides fertile ground for emerging companies. To Although investment levels within the Group’s technology encourage recognition, BDO sponsors The Sunday Times Tech companies appear to be healthy during the period, our recent Track 100 league table, which ranks Britain’s tech companies BDO report Filling The Funding Gap (www.bdo.co.uk/news/ with the fastest-growing sales over the latest three years. It’s filling-the-funding-gap) highlighted that nearly a third (31%) a great sign that two Yorkshire-based businesses are in the of UK mid-market technology and media companies, believed current Tech Track 100; and at the rate they are growing, it the availability of finance over the next five years to fund may not be too long before they join the Group. innovation projects would restrict their plans for growth. In addition, 45% highlighted access to finance as the biggest barrier to economic growth – marginally higher than access to knowledge/talent. It’s testament to the strength of the sector that despite these concerns, more than three-quarters are optimistic about medium-term prospects. 20 THE YORKSHIRE REPORT | 2015

RETAIL: the future is mobile

CRAIG BURTON BDO Audit Partner - Yorkshire

The Group’s ‘Big Two’, Morrisons and Asda, This confidence was also reflected in relatively few business faced a tough time during the reporting failures, implying that those who have survived so far are in period as they cut prices in the battle good shape for the future. against discounters. When the dust settled And it’s a future that is increasingly mobile, with many they had held sales steady at a staggering retailers investing in updating their sites and exploring new £41bn, but at the cost of falling profits. mobile payment technology. Logistics was also a key issue, Other retailers in the Group fared better, as online consumers not only grow in number but expect with sales up 15%, but also found margin faster delivery. This was brought into sharp focus when US import Black Friday finally took off in Yorkshire, leading to a under pressure as intense competition and flat delivery backlog that risked generating every retailer’s worst high street sales hit the bottom line. nightmare: negative user reviews.

BDO’s monthly High Street Sales Tracker reported that, even After a period of zero inflation we entered deflation in May though British households are, on average, better off than for the first time in more than half a century. Looking ahead at any time since 2007, they are still reluctant to spend. with interest rates kept low and real wage growth in sight, Investors clearly had more confidence, readily supporting it surely cannot be long before the UK shopper hits the high successful retail IPOs from regional companies DFS, Card street, tablet, mobile or PC with a little more swagger. Factory and Bon Marche. 2015 | THE YORKSHIRE REPORT 21

BDO YORKSHIRE: MEET THE TEAM

Our commitment to Yorkshire is reflected in the breadth and experience of our team. We pride ourselves on being able to offer all the ingredients for exceptional client service with our resources in the region, while providing the national and international support you would expect of a major global firm.

TERRY JONES PAUL DAVIES GRAHAM NEWTON Lead Partner, Yorkshire Partner, Audit Partner, Business Restructuring

+44 (0)113 204 1284 +44 (0)113 290 6144 +44 (0)113 204 1210 [email protected] [email protected] [email protected]

PAUL BATES SAMUEL IRVING SIMON PRINGLE Partner, Business Corporate Finance Head of Sustainability Restructuring and Cleantech

+44 (0)113 204 1233 +44 (0)113 204 1238 +44 (0)113 204 1373 [email protected] [email protected] [email protected]

DAN BROOKES MARK LANGFORD TOM ROSEFF Head of International Tax Partner, Audit Corporate Tax

+44 (0)113 204 1244 +44 (0)113 204 1227 +44 (0)113 290 6115 [email protected] [email protected] [email protected]

CRAIG BURTON ANDY MAHON ADAM SMITH Partner, Audit Partner, Government and Fraud and Forensic Infrastructure Accounting Services

+44 (0)114 223 1760 +44 (0)113 290 6150 +44 (0)113 204 1309 [email protected] [email protected] [email protected]

BILLY CAIRNS BOB MCDERMOTT MARK THORNTON Partner, VAT Corporate Finance Business Restructuring

+44 (0)113 204 1306 +44 (0)113 204 1316 +44 (0)113 204 1216 [email protected] [email protected] [email protected]

LINDA COOPER MORAG MILLER JASON WHITWORTH Partner, Audit Business Services and Partner, Corporate Finance Accounting

+44 (0)113 204 6148 +44 (0)113 290 6169 +44 (0)113 204 1237 [email protected] [email protected] [email protected] MATT COPLEY Partner, Corporate Finance

+44 (0)113 204 1217 [email protected] 22 THE YORKSHIRE REPORT | 2015

COMPANY PROFILE: THE 250 GROUP

Leeds Rotherham Sheffield Barnsley North Yorkshire Bradford Huddersfield COUNTY South Yorkshire York Elland East Yorkshire CITY/TOWN Hull Harrogate West Yorkshire Wakefield Halifax Doncaster Other

UK company Overseas company Limited company Private individuals Listed plc PLC Unlisted plc Private Equity Trust OWNERSHIP No one party COMPANY TYPE COMPANY LLP Trusts

Profit (Loss) Profit (Loss) No. of No. of Turnover Turnover before Tax before Tax No. of Employees SECTOR companies £000 Movement £000 Movement Employees Movement Manufacturing 72 12,448,005 0.3% 1,075,767 37.7% 72,956 0.4% Financial and professional services 13 3,671,756 11.3% 316,720 10.5% 32,218 6.1% Services 28 3,333,338 17.6% 117,771 4.6% 19,813 19.9% Food and drink 33 11,346,188 22.1% 104,519 (59.4%) 52,423 34.3% Transport and motor 27 5,441,488 18.2% 155,827 63.2% 12,921 8.7% Retail - ASDA/Morrisons 2 41,005,000 0.1% 373,000 (71.1%) 304,813 (0.9%) Retail - other 18 3,297,347 14.7% (168,356) (118.6%) 39,446 11.7% Construction 15 8,116,355 12.0% 467,728 40.8% 27,037 1.0% Technology and media 11 3,472,822 7.8% 149,664 19.8% 7,909 17.8% Public sector 10 1,381,404 11.6% (38,668) (144.7%) 29,356 5.6% Wholesale 7 865,728 13.2% 45,924 18.0% 1,390 1.2% SECTOR SUMMARY SECTOR Lesiure 7 1,876,821 41.8% 64,831 (5.0%) 12,906 51.4% Energy and utilities 7 5,861,624 6.6% 471,316 2598.8% 6,437 1.8% 250 102,117,876 3,136,043 619,625 2015 | THE YORKSHIRE REPORT 23

2015 250 GROUP

• A Shade Greener Ltd • Drax Group Plc • Knaresborough Investments Ltd • Renew Holdings plc • A. I. T Travel Ltd • Drifford Group Ltd • Kostal UK Ltd • Ripon Farm Services Ltd • A.E.S. Engineering Ltd • Dunhills (Pontefract) plc • Koyo Bearings (Europe) Ltd • Riverside Motors Holdings Ltd • A.W. (Europe) Ltd • Dyneley Holdings Ltd • Lakeside 1 Ltd • Saria Ltd • AAK (UK) Ltd • E.L.G. Haniel Metals Ltd • Lanes Group plc • Scaid Investments Ltd • ABI Alpha Ltd • Eggborough Power Ltd • Lawcris Panel Products Ltd • Schaeffler Automotive • ABS Industrial Resources Ltd • Emis Group plc • LEO Group Ltd Aftermarket (UK) Ltd • Acorn Mobility Services Ltd • Encon Ltd (Liberty 2803 Ltd • Lftl Ltd • Scientific Games International • Adler & Allan Holdings Ltd • Esco Emea Holdings (UK) Ltd • Ligentia Group Ltd Ltd • Adva Optical Networking Ltd • Exol Lubricants (Rotherham) • Linpac Senior Holdings Ltd • Seagold Ltd • Advent Data Ltd Ltd • London Security plc • Sedalcol UK Ltd • Allenbuild Ltd • Extra Detail Ltd • Lowell Finance Holdings • Serviced Dispense Equipment • Allied Glass Containers Ltd • F. Smales & Son (Fish • M.K.M. Building Supplies (Holdings) Ltd • AMG Superalloys UK Ltd Merchants) Ltd (Holdings) Ltd • Severfield plc • Andrew Marr International Ltd • Falcon Capital Investments Ltd • Mamas & Papas (Holdings) Ltd • Sewell Ventures Ltd • Andrew Page Ltd • Fenner plc • Manheim Europe Ltd • Sheffield City Trust • Arco Ltd • Findpath Ltd • Maplin Electronics Group • Sheffield Forgemasters • Ardagh Glass Ltd • First West Yorkshire Ltd (Holdings) Ltd International Ltd • Areopagus Ltd • Fives Landis Ltd • Maria Mallaband Care Group • Shepherd Building Group Ltd • Argrain Holdings Ltd • FMG Support Group Ltd Ltd • Siddall Medequip Ltd • Arla Foods Ltd • Forza AW Ltd • Marshall Holdings Ltd • SIG plc • Arnold Laver Holdings Ltd • Frozen Value Ltd • Marshalls plc • Special Steel Co., Ltd • Arran Isle Ltd • Fullers Foods International plc • Mavisbank Ltd • Spectrum Computer Supplies • Arrow Enterprise Computing • G. & M. Paul Ltd • McCain (G.B.) Ltd Ltd Solutions Ltd • Gardner Denver Ltd • Mclean & Appleton (Holdings) • Speedboat Holdco Ltd • ASD Ltd • GDF Suez Marketing Ltd Ltd • Stolzle Flaconnage Ltd • ASDA Group Ltd (Broadstreet • GDF Suez Sales Ltd • Meridian Motor Group Ltd • Strata Homes Ltd Great Wilson Europe Ltd • George Barker & Company • Minster Law Ltd • Style Group Holdings Ltd • Austin Reed Group Ltd (Gajan (Leeds) Ltd • MS International plc • Sulzer Pumps (UK) Ltd Holdings Ltd) • Go Outdoors Topco Ltd • National Tube Stockholders Ltd • SVM Europe Ltd • B. Braun Medical Ltd • Great Rail Journeys Partnership • New York Bakery Company Ltd • Swift Acquisitions Ltd • Baird Group (Holdings) Ltd Ltd • Newell And Wright (Holdings) • Symphony Holdings Ltd • Barrett Steel Ltd • GRI Group Ltd Ltd • Tenet Group Ltd • Bentley Holdings Ltd • Grontmij Group Ltd • Newly Weds Foods Acquisition • The Car People Ltd • Berwin Holdings Ltd • Group Auto Union UK And Ltd • The Fuelcard Company UK Ltd • Betafence Ltd Ireland Ltd • NG Bailey Group Ltd • The Harratts Group Ltd • Bettys & Taylors Group Ltd • H Walton Ltd • Nicholas Associates Ltd • The Kerfoot Group Ltd • Blenheim Group Ltd • H.B.Clark & Co.(Successors)Ltd • Northern GAS Networks • The Right Fuelcard Company • Bonmarche Holdings Plc • H.I.Weldrick Ltd Holdings Ltd Ltd • Boparan Holdco Ltd • Hallmark Cards (Holdings) Ltd • Norton Healthcare Ltd • The West Retail Group Ltd • Borgwarner Holdings Ltd • Hartshorne Group Ltd • Nova Contracting Ltd • Thompson Mcdougall Steel • Braveshire Ltd • Help-Link UK Ltd • Novoferm Europe Ltd Holdings Ltd • Brenntag UK Ltd • Henry Boot plc • Nufarm UK Ltd • Thornton & Ross Ltd • Bupa Care Homes (CFG) Plc • Heron Food Group Ltd • Oakgate (Monks Cross) Ltd • Together Housing Group Ltd • Caddick Group Plc • HG1 GAS Ltd • Olam Food Ingredients UK Ltd • Torque Logistics Ltd • Callcredit Information Group • Highcrest Distribution Ltd • Outokumpu Stainless Ltd • Transdev Blazefield Ltd Ltd • Hocomm Ltd • Outwood Grange Academies • Tunstall Healthcare Group Ltd • Camira Group Ltd • Horbury Group Ltd Trust • Turner & Townsend plc • Carclo Plc • Howarth Timber Group Ltd • Oval Ltd • UFP (UK) Ltd • Carnaudmetalbox Engineering • Hoyer Petrolog UK Ltd • Pace plc • UK Greetings Ltd Ltd • Hudson Contract Services Ltd • Paynes Dairies Ltd • Van Dalen UK Holdings Ltd • CF Topco Ltd • Ian Mosey Ltd • Pegler Yorkshire Group Ltd • Vasanta Group Holdings Ltd • Chaucer Foods UK Ltd • Ideal Standard (UK) Ltd • Persimmon plc • Viewtone Trading Group Ltd (Broomco (3554) Ltd • Insight Direct (UK) Ltd • Pimco (Holdings) Ltd • Volvox Group (Leeds) Ltd • Chilled Foods (UK) Ltd • Interbulk (UK) Ltd • Plusnet plc • VTL Group (Holdings) Ltd • City Health Care Partnership • Interface Europe Ltd. • Pluss-Staufer Ltd • Wagg Foods Holdings Ltd CIC • International Fibres Group • Polypipe Group plc • Wakefield And District Housing • Clipper Logistics Plc (Holdings) Ltd • Poundworld Retail Ltd Ltd • Communisis Plc • International Personal Finance • PPG Architectural Coatings • Weir Valves & Controls UK Ltd • Country Style Foods Ltd plc UK Ltd • Wesco Aircraft Europe, Ltd • CPP Group Plc • Irwin Mitchell LLP • Premdor UK Holdings Ltd • Westfield Contributory Health • Cranswick Plc • J.R. Rix & Sons Ltd • Premier Farnell plc Scheme Ltd • Croda International plc • James Durrans & Sons,Ltd • Principle Holdings Ltd • William Jackson & Son Ltd • Crossroads Group Ltd • Jaytee Energy Ltd • Provident Financial plc • William Lamb (Holdings) Ltd • D.M.Keith Ltd • Jct600 Ltd • PSE Newco Ltd • WM Morrison Supermarkets plc • Damartex UK Ltd • Jeld-Wen UK Ltd • Qhotels Holdings Ltd • Wortlea Estates (Leeds) Ltd • Daniels Chilled Foods Ltd • JLA Clean Ltd (JLA Equityco Ltd) • Qualitycourse Ltd • WYG plc • Dart Group Plc • John Cotton Group Ltd • R & R.C.Bond (Wholesale)Ltd • York Mailing Group Ltd • DB Schenker Rail (UK) Ltd • Karro Food Group Ltd • R&R Ice Cream plc • York St John University • Denso Marston Ltd • Kcom Group plc • Redcentric plc • DFS Furniture Plc • Kelda Eurobond Co Ltd • Redhall Group plc 24 THE YORKSHIRE REPORT | 2015

Basis of preparation

The companies included in the Yorkshire In addition, some of the financial information will be based on UK generally accepted accounting principles accounts Report were selected by conducting an and others will be based on International Financial Reporting initial search of FAME for companies with Standards accounts. both a registered office and trading address The financial information in this report has been compiled in the North, South, East or West Yorkshire exclusively from publicly available information under the postal areas (‘the region’). key assumptions and limitations outlined above. It has been designed solely to illustrate trends in the financial We eliminated any companies that have a parent company performance of a representative sample of companies in the also based in the region so that only the largest company in region. a group would be included in our sample. We also eliminated companies that were judged not to be trading or controlled BDO has not carried out any verification work on the financial within the region. information in this Report and gives no opinion on the financial information. BDO makes no claims, promises or The ‘current period’ financial information is based on filed guarantees about the accuracy, completeness or adequacy of accounts with a year end ranging between 30 April 2013 and the contents of this report. 31 March 2014 available on FAME at our selection cut-off date, with the prior year comparatives based on the previous No reliance should be placed on the information contained in year’s financial results for our 250 companies. this report and, to the fullest extent permitted by law, BDO does not accept or assume any responsibility to anyone for Our previous report ‘Yorkshire Report 2014’ comprised the the information contained in this report. top 150 companies, with a year end ranging between 30 April 2012 and 31 March 2013, and included a number of financial BDO has made a number of judgements in aggregating institutions (banks and building societies) which are no longer the information into a consistent format. BDO does not, included in our report. and cannot, warrant the completeness or accuracy of the adjustments made during the aggregation. To produce the financial information we simply aggregated the data contained within FAME, with no consolidation adjustments. Depending on the accounts filed, some of our figures will be based on consolidated accounts and some on entity-only accounts.

SOURCES

1. Chancellor: ‘We need a Northern powerhouse’ - 23 June 2014 11. Leeds City Region Enterprise Partnership – Key business sectors https://www.gov.uk/government/speeches/chancellor-we-need-a-northern- http://business.leedscityregion.gov.uk/invest/sectors/ powerhouse 12. Leeds City Region Enterprise Partnership – Food and drink 2. Major roads investment in the north east and Yorkshire – 1 December 2014 http://business.leedscityregion.gov.uk/invest/sectors/food-drink/ https://www.gov.uk/government/news/major-roads-investment-in-the-north-east- 13. SCR to receive £180m EU funding boost – 1 April 2015 and-yorkshire http://www.insidermedia.com/insider/yorkshire/136763-scr-receive-180m-eu- 3. Baroness Kramer visits Yorkshire to see how HS2 could benefit the region – 28 funding-boost March 2014 14. Sheffield City Region - About the Area https://www.gov.uk/government/news/baroness-kramer-visits-yorkshire-to-see- http://sheffieldcityregion.org.uk/about/overview/ how-hs2-could-benefit-the-region 15. Sheffield First - The State of Sheffield 2015 Report - 27 February 2015 4. The Broadway Bradford – A development by Westfield https://www.sheffieldfirst.com/key-documents/state-of-sheffield http://bradfordbroadwaydevelopment.co.uk/index.php?p=home 16. UK’s first manufacturing Innovation District gains momentum - 28th May 2015 5. New era for former YP site as plans approved – 13 February 2015 http://www.thebusinessdesk.com/yorkshire/news/722102-uk-first-manufacturing- http://www.thebusinessdesk.com/yorkshire/news/718378-new-era-for-former-yp- innovation-district-gains-momentum.html site-as-plans-get-green-light.html 17. Hull City Council - Hull means business > Key sectors > Food and drink 6. Economic Investment and Strategy Plan – North Yorkshire County Council http://www.hullcc.gov.uk/portal/page?_pageid=293,642476&_dad=portal&_ http://m.northyorks.gov.uk/CHttpHandler.ashx?id=25134&p=0 schema=PORTAL 7. York – Annual Tourism Figures Announced – 25 March 2015 18. 1Hull City Council - Hull means business > Key sectors > Port and logistics http://www.visityork.org/media/news/News-release-annual-tourism-figures.aspx http://www.hullcc.gov.uk/portal/page?_pageid=293,642474&_dad=portal&_ 8. York, North Yorkshire and East Riding: Growth Deal - 29 January 2015 schema=PORTAL https://www.gov.uk/government/publications/york-north-yorkshire-and-east- 19. Siemens to build major offshore wind manufacturing site in the UK riding-growth-deal http://www.siemens.co.uk/en/news_press/index/news_archive/2014/major-uk- 9. Leeds City Region Enterprise Partnership - Local Growth Deal offshore-wind-manufacturing-site-to-be-built-by-siemens.htm http://www.the-lep.com/about/local-growth-deal/ 10. Leeds City Region Enterprise Partnership - Advanced engineering and manufacturing http://business.leedscityregion.gov.uk/invest/sectors/manufacturing/

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