#BDOYorkshireReport

2016

PLUS

REGIONAL OVERVIEW: WHERE THE SMART MONEY IS

FINANCIAL HIGHLIGHTS: A POSITIVE YEAR FOR THE MID-MARKET

BUSINESS FINANCE: SHOULD YORKSHIRE BE MORE AMBITIOUS?

INTERNATIONAL: WHY YORKSHIRE MUST PULL TOGETHER ABROAD

EDUCATION AND SKILLS: UNIVERSITIES HELP LEAD THE WAY

SECTOR FOCUS: RETAIL TAKES A HIT

YORKSHIRE TOP 250: A TWO-SPEED ECONOMY 2016

FOREWORD WHAT’S INSIDE

BY ANDREW PALMER, CEO – WELCOME 01 NORTH OF ENGLAND EXCELLENCE EXECUTIVE SUMMARY 02 As this report highlights, Yorkshire has a productivity challenge that needs addressing. THE YORKSHIRE POWERHOUSE 04 But we are not the only region; the UK lags behind other developed nations when it comes REGIONAL REVIEW 06 to productivity, according to figures from the Office of National Statistics (ONS). FINANCIAL HIGHLIGHTS 08 While much in the report is positive, particularly about the strength BUSINESS FINANCE 10 of the region’s Mid-Market and the improvements made over the last 12 months, the time has come for straight-talking about INTERNATIONAL 12 our shortcomings. The productivity gap between the UK, indeed Yorkshire and the rest of the UK and Europe, shows there is room EDUCATION AND SKILLS 14 for us to do better, and quickly. This report is a call to action for bold WOMEN IN BUSINESS 15 business leaders to seize the opportunities on offer, including those that are part of the Northern Powerhouse devolution deal. SECTOR FOCUS 16 Committing to improving productivity, as many have done already, YORKSHIRE 250 GROUP 18 shows that Yorkshire’s businesses have started their continuous improvement journey; one that will deliver sustainable growth BDO YORKSHIRE 20 and improved profits. You are the business leaders who will drive the region’s productivity growth, through the adoption of new BASIS OF PREPARATION AND SOURCES 21 approaches and greater collaboration at every level both within your organisations and with the wider northern economy. North of England Excellence is here to support and celebrate your commitment to investing in policies that will deliver growth. By committing to continuous improvement you will demonstrate you are playing your part in the jigsaw puzzle of transport, skills and productivity that will help Yorkshire be the best it can be and realise our shared ambition of putting the wider region on a level playing field with the rest of Europe.

Portrait © Marcus Harvey

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Welcome

This time last year I wrote that the future looked bright for our region. Today the picture is less clear-cut. While there are still many bright spots for business, particularly when you look more closely at Mid-Market activity, it is also true that we have moved into more uncertain times. Low commodity prices are having an impact on companies in industrial supply chains such as that for oil and gas. The two big supermarket chains that dominate our economy are facing stiff competition from low-cost rivals. And UK business in general faces uncertainty over the possibility of a Brexit and a global slowdown. TERRY JONES On top of this, we have the Northern Powerhouse debate. LEAD PARTNER I YORKSHIRE Potentially a great opportunity to have more cash spent where it is needed, most would agree. But in Yorkshire there is a risk of politicians looking more to their own communities than pulling together as a whole. This lack of cohesion puts us at risk of losing out to more coordinated devolution efforts from other regions, such as the North West. Our view is that business leaders cannot afford for that to happen. I understand that given the current circumstances there is a reluctance to take bold moves, but this is no time for inaction.

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Executive summary

OVERALL ANALYSIS FOR THE TOP 250 YOUR VIEWS

58% of Yorkshire based businesses who took part in 4% 40% the BDO Yorkshire Report increase in turnover increase in net cash survey in January 2016 consider infrastructure and connectivity to be the Governments most critical investment requirement 11% 6% to help drive business growth and decrease in overseas decrease in net debt development in the region. turnover BDO Yorkshire Report survey, January 2016 58% of local businesses who 8% 9% responded to the BDO Yorkshire increase in operating decrease in dividends Report survey would prefer the profits Government to devolve powers to a single Mayor – led Yorkshire region. 16% 7% BDO Yorkshire Report survey, decrease in profits increase in wages January 2016 after tax per employee As part of a national BDO survey of businesses across the UK, 70% of Yorkshire-based business leaders who responded to the YORKSHIRE MID MARKET survey think the UK should OUT-PERFORMING THE TOP 50 remain in the EU following the Government’s referendum on 23 • 10% increase in turnover for the top 200 Mid-Market companies in June. comparison with a 2% increase across the top 50 BDO Brexit survey, March 2016 • 200% increase in profits for Yorkshire based Mid-Market organisations • 13% increase in employee numbers across the Mid-Market against a 3% decrease in the top 50 • 14% increase in directors remuneration for the Mid-Market versus a 1% increase in the top 50.

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TURNOVER OPERATING PROFIT

GROUP TOP 50 MID-MARKET 200 GROUP TOP 50 MID-MARKET 200 6, 000, 000 120, 000, 000

100, 000, 000 5, 000, 000

80, 000, 000 4, 000, 000

60, 000, 000 3, 000, 000

2, 000, 000

TURNOVER (£000) TURNOVER 40, 000, 000

20,000,000 (£000) PROFIT OPERATING 1,000,000

0 0 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 YEAR YEAR

NET CASH NET DEBT

GROUP TOP 50 MID-MARKET 200 GROUP TOP 50 MID-MARKET 200

5, 000, 000 30, 000, 000

4, 000, 000 25, 000, 000

20, 000, 000 3, 000, 000 15, 000, 000 2, 000, 000 NET DEBT (£000) NET DEBT NET CASH (£000) 10, 000, 000 1,000,000 5,000,000

0 0 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 YEAR YEAR NO. OF EMPLOYEES PRODUCTIVITY

GROUP TOP 50 MID-MARKET 200 GROUP TOP 50 MID-MARKET 200 700, 000 36 600, 000 35 500, 000 34 400, 000 33 300, 000 32

NO.OF EMPLOYEES 200, 000 31 PER EMPLOYEE (£000) PER EMPLOYEE 100, 000 30

0 29 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014

YEAR YEAR KEY

GROUP: Top 250 companies in Yorkshire by turnover TOP 50: Top 50 companies in Yorkshire by turnover MID-MARKET 200: Next 200 Yorkshire-based companies by turnover

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Powerhouse: time to fire up

JASON WHITWORTH Corporate Finance Partner Yorkshire risks losing out if it fails to pull together over devolution. So far, though, a There is no getting away from the massive diversity that characterises coordinated response has Yorkshire in business terms. From the financial services heavyweight that is Leeds to the manufacturing prowess of Sheffield or the been lacking. Yorkshire strengths of Hull with its port location, it is clear that most urban centres in the region have good reasons to be considered unique. has attracted attention However, that does not mean it makes sense to pass over for being one of the opportunities that require a coordinated response. The Northern Powerhouse is one such opportunity. The Leeds City Region last regions in the UK Enterprise Partnership believes that in its catchment area alone the devolution deal could result in £5.2bn of additional economic output to sign up to the deal by 2021.1 being offered by central So far, though, a coordinated response has been lacking. Yorkshire risks being left behind; it is becoming clear that Yorkshire has government. It risks struggled to move forward with a plan, while Manchester, Liverpool, the North East and Teesside are forging ahead by negotiating a power being left behind. transfer with the Treasury. Yorkshire’s diversity is partly to blame. Leaders have been loathed to look beyond their own authorities and JASON WHITWORTH lock arms for the greater good. Corporate Finance Partner Should business get involved in what is, for the most part, a political debate? A good number of business leaders would likely prefer to stay out of it. After all, the last 12 months have been more turbulent than many expected. Most bosses have plenty to contend with simply keeping their own businesses in order. However, there are also good reasons why the private sector should make its voice heard in the Powerhouse debate. Essentially, the goals of devolution are mainly about economic growth, which can only favour business interests and unlike economic cycles, which come and go, the devolution offer is unlikely to be repeated. Speaking at a summit in Leeds this January, Lord Heseltine called it a “once-in-a-lifetime opportunity.”2 For that reason alone, it warrants serious attention from business leaders. We need to inject a sense of urgency and importance into the local government debate. The latest numbers provide encouraging signs of businesses investing in the region and maybe there is a need to shout more loudly about their success. Local politicians now need to match this commitment by listening and working with businesses to create the conditions for devolution which will start delivering real benefits to our region.

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leading the productivity challenge The UK’s productivity performance is currently the subject of a major policy debate. The trigger for this has been official statistics indicating that the productivity of the UK economy is relatively weak and recognition that this is a key reason why economic growth is being held back. Our own review of productivity suggests the group has improved its productivity by 9.1% between 2015 to 2016. This contrasts with the OBR’s latest economic and fiscal outlook report which references a continued period of low productivity growth post the financial crisis with annual growth across UK industry of only 0.1% per annum. Productivity can be calculated and gauged in many different ways and a key part of the challenge is to understand what we mean by it. It is a moving target and the focus has to be on the direction of travel. Whilst often seen as a manufacturing concern, it is an issue that can be addressed in all sectors, including public bodies by focussing on operational processes not only in production facilities, but in all aspects of service delivery across both front and back office. For those picking up the challenge there appears to be two approaches to improvement: • Steady incremental gains by continuous improvement in developing talent and increasing operational efficiency; or • A more radical step change through investment in research and development, technology and automation. A further increase in investment in the region will prove a key driver for further improvements in productivity across the region, as may an increased focus on the technology sector. Productivity matters because it is seen a key driver of long- term economic growth and by leading the charge to build productivity it will heighten our profile and attractiveness to the outside world for continued investment.

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Regional review: highlights across Yorkshire

NORTH YORKSHIRE TOP 250 BUSINESSES 2016: 39 | TOP 250 BUSINESSES 2015: 36 OPERATING PROFIT 2016: £1BN | PRODUCTIVITY 2016: £63,000 PER EMPLOYEE NEWS FROM THE REGION: • North Yorkshire County Council’s Local Transport Plan highlights long journey times as one of the major barriers facing the county’s economy, with workers struggling to access job opportunities and companies reluctant to invest in “peripheral areas of the county”.3 • The 2015 Autumn Statement included announcements for an extra £50m of investment in two new centres of excellence based at Fera Science in Sand Hutton.4 • York’s biggest economic opportunity, York Central, has officially been established as an Enterprise Zone.5 • Sirius Minerals has issued its ‘blueprint’ for the York Potash project. With a £2.4bn investment, over 1,000 long term jobs will be created and a further 1,500 jobs will be available indirectly.6

SOUTH YORKSHIRE TOP 250 BUSINESSES 2016: 50 | TOP 250 BUSINESSES 2015: 53 OPERATING PROFIT 2016: £479M | PRODUCTIVITY 2016: £39,000 PER EMPLOYEE NEWS FROM THE REGION: • The first elected mayor for South Yorkshire could be in office within two years under a landmark devolution deal.7 • If agreed, a so-called ‘gainshare’ agreement could see the south of Yorkshire rewarded for generating economic growth with an additional £900m of funding and more power to make important economic decisions locally.8 • Sheffield City Region has been successful in securing £500,000 from Government to make buses in Sheffield city centre cleaner.9

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A YORKSHIRE REGIONAL OVERVIEW Who is leading in the Yorkshire business world? To find out, we have compiled a list of the region’s top 250 companies by turnover (see p18). Here, along with other highlights, is how they are split across the region…and how the balance has changed compared to last year. What emerges overall is a picture of a bustling regional business ecosystem that is well placed to take advantage of the opportunities presented by devolution. What is the challenge now? To make sure those opportunities are not missed, so the region can continue to build on its current upward trend.

NORTH HUMBERSIDE TOP 250 BUSINESSES 2016: 30 | TOP 250 BUSINESSES 2015: 29 OPERATING PROFIT 2016: £545M | PRODUCTIVITY 2016: £40,000 PER EMPLOYEE NEWS FROM THE REGION: • Dong Energy has announced plans the build the world’s largest offshore wind farm off the East Yorkshire coast.10 • The Humber Enterprise Zone, already the UK’s largest enterprise zone, is to more than double in size, expanding to include additional employment land following a successful bid by the Humber Local Enterprise Partnership and local authorities.11 • Plans for Modal Training, a £7m centre of excellence for the ports, energy and logistics sectors, have been unveiled. The centre will be the first in the UK to offer integrated multimodal logistics training for sea, road, rail and air, as well as a range of support services.12

WEST YORKSHIRE TOP 250 BUSINESSES 2016: 131 | TOP 250 BUSINESSES 2015: 132 OPERATING PROFIT 2016: £2.8BN | PRODUCTIVITY 2016: £31,000 PER EMPLOYEE NEWS FROM THE REGION: • The West Yorkshire Combined Authority plans to unlock £62m from the region’s £1bn 2014 Growth Deal, to invest in new and improved further education facilities this year to ensure our regions young people have the highest quality learning environment.13 • Plans to redevelop Leeds Station into an integrated high-speed transport hub for the whole of Yorkshire have been announced.14 • A report shows Leeds has secured £3.7bn of commercial property investment in the past decade, ranking as the fifth UK city outside of London for attracting cash.15

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Financial highlights

PAUL DAVIES What the figures show is the immense impact of the region’s two BDO Head of Audit | Yorkshire supermarket giants, Asda and Morrisons, on the regional economy. These two companies, in particular, have struggled in the face of A positive year for Yorkshire’s Mid-Market. competition from discount retailers and have dragged down the results of the whole of Yorkshire’s top 250. There was a lot more to this year’s financial performance than meets the eye. While the dominant theme has been one of Yorkshire’s Across the top 250, cash reserves are up 17%, long-term debt is big retail groups reeling from competition, the Mid-Market has down 5%, and while wages per employee have increased 7%, and performed well in a continued competitive market. director’s remuneration have risen 9%. It appears business leaders are continuing to manage risk, reducing debt and building cash Across Yorkshire’s top 250 companies, turnover was up 4% whilst increasing returns to stakeholders. This all suggests the Group compared to 6.9% the previous year. But overseas turnover saw a is continuing to strengthen its balance sheet, retaining wealth and worrying 11% drop compared to a 7.7% increase the previous year, possibly preparing itself to be more resilient against any future reflecting the challenging market facing UK businesses. However it economic downturn. is the Mid-Market 200 that have shone in terms of turnover, and profit. Specifically, turnover leapt 10% in the Mid-Market versus Why this might be happening is not hard to fathom. In a year only 2% across the largest 50 companies. Profits were up 200%, where China’s economic might is being called into question and the compared to a 48% drop across the top 50, and Mid-Market EBITDA International Monetary Fund is warning of ‘subdued demand and was up 40% against a meagre 6% for the larger businesses. diminished prospects,’16 it is natural for bosses to exercise caution. Factors such as the June referendum on European Union membership Focussing on the Mid-Market, there is more positive news. Among can only heighten the sense of uncertainty. other key indicators, Mid-Market employee numbers went up 13%, adding over 21,000 jobs to the regional economy, compared to a 3% Having said this, to seize the prizes of growth requires vision, decline in the top 50. Shareholder funds increased 26% versus 1% strategy and execution. The challenge is not to limit the ambitions and directors’ remuneration grew 14%, versus 1%, although both and even though sitting tight might seem the responsible thing to do groups saw a drop in overseas turnover, for the Mid-Market it was right now, perhaps it could pay more in the long term to strike out just 1% while the top 50 dropped 16%. This two-speed performance towards new goals while your competitors have their heads down. skews the overall analysis of the region’s annual results.

TOTAL TOP 50 MID-MARKET 200 Current Year Prior Year Change Current Year Prior Year Change Current Year Prior Year Change Turnover £106bn £102bn 4.06% £82bn £80bn 2.29% £24bn £22bn 10.44% Overseas £8.4bn £9.5bn -11.47% £5.7bn £6.7bn -15.90% £2.7bn £2.8bn -0.60% Turnover Operating Profit £4.8bn £4.5bn 8.10% £3.3bn £3.5bn -7.48% £1.6bn £1.0bn 63.56% Profit (Loss) after £1.9bn £2.3bn -16.48% £1.0bn £2.0bn -47.62% £861m £286m 201.41% Tax No of employees 625,022 619,625 0.87% 445,943 461,638 -3.40% 179,079 157,987 13.35% Net Cash £4.5b £3.2b 39.91% £3.4b £2.4b 42.81% 1.1b £0.8b 31.70% Average salary £19,800 £18,500 7.03% £18,900 £17,400 8.44% £22,100 £21,700 1.86% Dividends £1.5bn £1.6bn -8.64% £1.0bn £1.4bn -25.07% £480m £275m 74.96% Average Director £215k £178k 21.05% £431k £359k 20.02% £161k £128k 25.40% Remuneration Gearing ratio* 82.40% 91.69% -10.14% 80.40% 92.78% -13.35% 88.95% 87.29% 1.90%

*Gearing Ratio = (Long Term Debt + Short Term loans - Cash/ Shareholder Funds)

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The report highlights the vital role that medium-sized businesses play in powering the regional economy, but the data continues to reflect the massive difference in dividends and average directors remuneration between the top 50 and the Mid-Market 200. Should the region’s entrepreneurs and Mid-Market organisations be looking at better ways to reward the people that drive Yorkshire’s growth?

TERRY JONES Lead Partner – Yorkshire

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Business finance: no time for complacency

MATT COPLEY Transaction Services Partner Does Yorkshire need to be more ambitious? Vibrant and diverse Yorkshire business hubs such as Leeds, Bradford, Hull and Sheffield suggest a region that has much to offer investors. Coupled with a Group that has strengthened its balance sheet by building reserves and cash, it does suggest a very strong platform for investment. But a closer look at some of the region’s numbers may suggest some cause for concern. The level of investment across the Group increased by 5.6%, split between a 21% reduction in investment by the top 50, whilst the SIMPLYBIZ: AN ALTERNATIVE APPROACH Mid-Market 200 registered an 84% increase, all be it from a low Based in Huddersfield, SimplyBiz is the UK’s leading provider of base. Hence, the challenge; should the Group be more ambitious? compliance and business support services to directly authorised There certainly does not appear to be a supply side issue. Whilst independent financial advisers. Launched in 2002, it delivered there is a clear requirement to manage business plans and a ground breaking proposition designed to provide directly expectations in the context of a more negative global economic authorised IFAs with a level of support and service not previously outlook, the funding markets remain active with a proliferation of available. SimplyBiz has grown exponentially year on year and funders looking to invest. The banks and private equity are actively today supports about 25% of all directly authorised IFAs, serving seeking to deploy funds, whilst the rise of specialist debt funds and almost 6,000 advisors across some 2,500 firms. the resurgence of the IPO market provide real alternatives. In 2015 the founder, Chairman and majority shareholder, Ken Commentators have long noted the developing north-south divide, Davy, wanted to build on the significant value created within the but as Yorkshire struggles to present a united front in devolution Group and reward management and staff by restructuring the talks, is there also a risk of an east-west divide emerging in the equity of the Group to position it for its next phase of growth. north? The more politically joined-up North West, with Manchester After considering a range of strategic options, Alcentra, a global at the helm, is pulling ahead of Yorkshire in terms of economic asset management firm specialising in debt markets, made a dynamism. multi-million pound unitranche investment in the business. The classic Yorkshire business leader has perhaps always been a tad “Working closely with BDO we more cautious than his or her counterparts. But now, more than considered a number of alternative ever, they need the support of local politicians to ensure that the funding options and partners across debt spoils of devolution, including valuable infrastructure and skills and equity. We had not previously come training money, are directed equitably towards the region. Staying across unitranche debt fund investors, at the forefront of investors’ minds requires a concerted effort by but Alcentra provided a unique and them to speak with a unified voice about the opportunities across competitively priced funding solution the region. that delivered on all our requirements.” Keeping Yorkshire at the forefront of the investor community in 2020 and beyond will require action sooner rather than later, and we KEN DAVY, would be short sighted to ignore this. CHAIRMAN OF THE SIMPLYBIZ GROUP

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investment drives a premium price

JASON WHITWORTH Corporate Finance Partner BDO’s Quarter 4 Private Company Price Index (“PCPI”) report highlighted a record year for M&A across the UK, with valuation multiples remaining stubbornly high. In slight contrast, the region saw a relatively consistent appetite for M&A. The number of deals completed was flat at 423 compared to 419, whilst values fell to £5.4bn from £8.2bn, reflecting the impact of the largest few transactions in the previous year. There continues to be an element of polarisation in the market, with a shortage of attractive opportunities ensuring premiums are being paid for quality, high growth investments. This is particularly prevalent in the technology sector where recurring income and scalable platforms drive strong financial returns. SELECTED BDO In more mature markets, the environment can be more DEALS 2015 challenging. Whilst the drive for consolidation to grow margins remains strong, an imbalance between price expectations and 1. Acquisition of Stontronics returns may be holding back activity. by Stadium Group plc The buoyant capital markets ensured there was continued 2. Acquisition of Tykma by activity in the region. The number of companies accessing the 600 Group plc markets increased, but there was a definite shift to smaller cap 3. Secondary buyout of deals. Of the regions larger groups, DFS and Bon Marche tapped Arthouse by Northedge in to the bond markets, whilst IPO’s included Premier Technical Services Group and Gear 4 Music, both sub £50m at the time of Capital listing. 4. Acquisitions of Silver Sands Corporates remain dominant in the M&A market. Their ability Leisure Park and Seaview and desire to target strategic value, saw many of our regions Holiday Village backed by corporates start to build on their acquisition growth plans Phoenix with the likes of SIG, WYG, Go Outdoors, Connells, Premier 5. Unitranche debt financing Technical Services Group and Drive Medical all making multiple of Simplybiz by Alcentra acquisitions. 6. MBO of 4Ways Healthcare Private equity investors remain an important source of funding, supported by Synova but they are increasingly finding it tough to find well-priced Capital investments, particularly when competing with trade buyers for 7. Private Equity funding strategic assets. of Random42 by Vespa Notable transactions included LDC’s investments in Seabrooks Capital and Software Solution Providers, Bowmark Capital’s acquisition of Nexus Vehicle Management, and BGF’s backing of Altec Engineering and Chemoxy. With continued high levels of capital searching for a return it is anticipated that the market will remain active in 2016. However, the more cautious economic outlook may temper forecasts and make higher valuations more of a challenge to deliver.

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International

DAN BROOKES Tax Partner changes to the global A hiccup in regional exports should not taxation landscape Yorkshire companies with international ambitions should be deter Yorkshire Mid-Market businesses aware of a significant change to global taxation. In October looking into overseas territories for growth. 2015, the Organisation for Economic Co-operation and Development issued its long-awaited final recommendations to This was the year Yorkshire exports fell off a cliff. After posting a very address tax base erosion and profit shifting (BEPS) by multi- respectable 7.7% year-on-year increase in overseas turnover in the national enterprises. 18 2015 financial year, 2016 saw an 11% drop in revenues across the region’s top 250 companies and in the top 50 companies, the drop in BEPS has reporting implications as early as this year, with overseas turnover was more pronounced at 16%, whereas the next country-by-country reporting rules taking effect for tax 200 in the Mid-Market only fell by 1%. years starting on or after January 1, 2016. While much of the BEPS agenda still awaits implementation, more than 52% of What has happened is no doubt linked to uncertainty in the global respondents surveyed by BDO are proactively taking steps economy, and exchange rate volatility coupled with sector-specific based on the recommendations. challenges such as low oil prices. Rather than worrying about what went wrong, perhaps the question for Yorkshire’s businesses is what Another third are waiting for individual countries to implement to do next. BEPS measures before taking any action. If you need help on this issue, contact your BDO adviser. The looming referendum on Europe means the Government is more preoccupied than ever in showing it can forge strong trading links abroad, and that means maximising support for exporters from Some of the region’s strongest sectors, from finance to professional bodies such as UK Trade & Investment (UKTI). services or food and drink, have a significant UK focus, and that may have historically led to a national-market mind-set. Increasingly, While many in the Mid-Market 200 will already have experience of opportunities for profitable, sustainable international growth are overseas markets, UKTI’s support can be invaluable for businesses opening up. Nobody is saying that foreign trade is easy, but help is at that have grown to significant scale in their home market, but hand not just from government agencies such as UKTI but also from need an increased overseas footprint to continue with their growth the region’s own rich professional services ecosystem. aspirations. The message coming from those who have succeeded in Naturally in the current climate it might pay to be cautious international markets is it pays to understand who your global about overseas expansion, but there is certainly no need to put customers are and what they require. You need to get out there, international plans on hold. Several companies in the region network, attend trade shows, get feedback on your proposition and are showing how it is possible to achieve significant success be persistent. abroad without incurring major risks. The Leeds-based listed communications company Communisis, for example, has relied on Success won’t come overnight and, true, the last year has not been a existing client relationships to power growth across Europe, opening good one for international trade, but that doesn’t mean you cannot offices in Bucharest, Milan and Warsaw in the last year.17 Principle make a go of opportunities abroad. Group, of Huddersfield, has also followed a global strategy and now supplies services to more than 60 countries, with offices in more than a dozen. There are many other great examples across Yorkshire. But our challenge is - should there be more?

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SEABROOK: DEVELOPING INTERNATIONAL SALES

As part of its growth strategy, Seabrook Crisps has identified International sales as one of its key growth levers over the next three to five years. The British crisp maker, also recently announced its first international deal with a well-known supermarket chain in the Gulf, LuLu Hypermarket, and will An internationally recognised Northern provide a range of its premium Lattice crisps. Along with the Gulf region, Seabrook is exploring other markets that have Powerhouse offers businesses potential for its brands. Markets have been identified against a in Yorkshire and the Humber an number of criteria from market size, competitor presence, ease of route to market and commercial opportunity. unprecedented opportunity to galvanise The primary challenge has been to develop a longer life solution the economy of the county by promoting to allow for increased transit times. Working hard with suppliers and selling their products, creativity and through rigorous testing Seabrook now have a product with the longer shelf life. and skills worldwide. UK Trade & Investment is playing its part in ensuring In addition to their own planning, Seabrook have been supported by the UKTI who have helped provide advice on the success of the Northern Powerhouse market prioritisation, identifying key challenges and have by championing the county as a triple A recently facilitated the Northern Powerhouse envoy to Gulfood, Dubai. Here the UKTI organised market visits, trade meetings investment region abroad and alerting and access to the world’s biggest snack trade show all of which its companies to the enormous trade helped Seabrook to get an understanding of the region. Over the next 12 months Seabrook intend to build on this early opportunities overseas. success and continue to develop their International sales. MARK ROBSON, KEVIN BUTTERWORTH, UK TRADE & INVESTMENT REGIONAL DIRECTOR FOR YORKSHIRE MARKETING DIRECTOR AT SEABROOK CRISPS LTD AND THE HUMBER

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Education and skills

With a respected international reputation for expertise in research CRAIG BURTON and development, the region’s universities need to continue to Audit Partner focus on developing and improving their commercial approach, and Industry and academia are beginning to industry needs to play its part. Yorkshire’s higher education sector has a track record in industrial innovation that ranges from the work together on plugging the skills gap. development of liquid crystal displays at the University of Hull to the 21 Should more be done? invention of low-fat spreads at the University of Leeds. Last summer saw the outcome of a key experiment for Yorkshire’s A call for skilled workers might seem odd after a year in which Asda, business community. The first batch of students emerged from one of the region’s biggest employers, had to cut jobs given the University Technical College (UTC) Sheffield, established in 2013 as challenging market conditions. But elsewhere in Yorkshire there is one of the first of a new breed of schools designed to turn out work- still plenty of cause for optimism…and a need for people. ready youngsters. The Mid-Market businesses in the Group grew Sheffield Hallam University and The Sheffield College’s their workforce by in excess of 21,000 people and Industry needs sponsorship of the UTC shows educational institutions sectors such as precision engineering, technology to join forces are increasingly keen to build on their heritage to and media, and construction are performing well. develop the right talent for business22 and further UTC’s In order to grow, they all need human talent that with Yorkshire’s in Scarborough and Leeds focussing on key skills such as appears to be lacking from the workforce. A report education sector engineering, advanced manufacturing and digital skills from the UK Commission for Employment and Skills, respectively should provide an additional skills boost to for instance, says the number of unfilled vacancies in fostering the the region. across the country has risen 130% since 2011 right conditions and19 it is not just low-skilled posts that nobody Getting involved with graduates and school leavers can wants; according to news reports, about 50,000 of for easy and give businesses a way to shape the skills that will be the jobs up for grabs in the North are in software rapid skills available in years to come. As with any scant resource, it development.20 adoption at a will pay the private sector to foster the supply of future talent in the region so we can all benefit from brighter Furthermore, the need for local skills creation is local level. brains in business. perhaps more acute in Yorkshire because a lack of good transport infrastructure restricts worker mobility. Workers here are less likely to travel the distances that might be considered acceptable in the South East. Until transport infrastructure investment solves the problem, industry needs to join forces with Yorkshire’s education sector in fostering the right conditions for easy and rapid skills adoption at a local level.

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Female representation in the boardroom as a proportion has stagnated rather than increased, suggesting a lot more needs to be done to build a more balanced profile.

Women in business

Yorkshire’s top female board PRINCIPLE GROUP: THE RIGHT BUSINESS DNA executives have proved more The question I am most regularly asked is “how hard is it to be a senior woman in resilient than their male business”. In my experience, once your talent has a platform to demonstrate results, that can’t be ignored. Women are proven to be successful at maintaining senior counterparts at hanging on to positions, however, getting there is the challenge and that is the question that I prefer their posts over a rocky year for to be asked. Not “how hard is it today?” but “how hard has it been to get to today?” big businesses. That question addresses the barriers women in business face – it is the journey to achieving a platform where ability cannot go unnoticed. Many large businesses have However, female representation in the created statistical targets for women to be placed in senior positions. While I believe boardroom as a proportion has stagnated rather it is positive for businesses to have a focus, I would not want to ever be in doubt that than increased, suggesting a lot more needs to be I am in a role because of a business target but that actually I am the best possible done to build a more balanced profile. person for the job – regardless of gender. A statistic doesn’t make something be so, While the total number of board members in if a statistic is the main driver then the result (if achieved at all) is not authentic. The the top 50 dropped by 54 over the last financial dynamics of every leadership role in an organisation needs to be focused on promoting year, from 340 to 286, there were only four fewer talent from any gender, race and age, with no fear in that leadership role of looking top women in 2016 than there were in 2015. The less capable than the people it is promoting. tenaciousness of female bosses led to a slight rise A selflessness that has the business at heart is very hard to find in many senior in the proportion of women, from 14% to 15%, in management teams. Yorkshire’s top boardrooms. I was fortunate to find this DNA in Principle, however, Overall, the proportion of women executives despite Principle not being afraid to position me at the in the region’s top 250 biggest companies has board table, I was the first female to join the Principle essentially stayed the same in the year. Whilst board in its 29 years of trading. This tells me that even the absolute number of female boardroom in a company with the right overall attitude to women members is down, from 265 to 239, so is the in senior positions it still remains difficult to actually get number of board directors overall. In percentage there. From experience women also have a responsibility terms, women still represent 17% of the board in to push themselves forwards, not be afraid to shine and be Yorkshire’s top 250. confident – not apologetic – when presenting new ideas and initiatives on their journey to reaching that platform to demonstrate results that ultimately a business benefits from. VICTORIA WOODINGS, GLOBAL BOARD DIRECTOR AT PRINCIPLE GROUP

15 THE YORKSHIRE REPORT 2016 | BDO LLP

Sector focus: developing our centres of excellence

Manufacturing and Food and Drink continue BREAKDOWN OF THE TOP 250 COMPANIES BY SECTOR to dominate the Group in terms of number of companies, 72 and 34 respectively. Both 80 sectors showed an increase in turnover 70 (7.4% and 10.8%) but also suffered a 60 decline in profits. Manufacturing profit 50 before tax decreased by 5% whilst the 40 combined Food and Drink sector moved 30

from a profit of £105m to a loss of £70m. COMPANIES NO.OF 20 The Group’s turnover is dominated by the region’s two retail giants, Asda and Morrisons. However, they continued to struggle against 10 cut-price rivals, with turnover and EBITDA both dropping by more than 2%. 0

If there was ever any doubt that Yorkshire might be losing its lustre TMT

as a financial services hub, last year’s top 250 results should have LEISURE dispelled all fears. Of all the companies in Yorkshire’s top 250, those SERVICES WHOLESALE RETAIL - OTHER RETAIL in financial and professional services posted the best results, with a PUBLIC SECTOR CONSTRUCTION MANUFACTURING 27.5% increase in turnover and a stunning 168% boost in earnings FOOD AND DRINK

before interest, taxes, depreciation and amortisation (EBITDA). AND UTILITIES ENERGY TRANSPORT AND TRANSPORT MOTOR Interestingly for a sector traditionally preoccupied with regional - ASDA/MORRISONS RETAIL FINANCIAL & PROF. SERVICES FINANCIAL & PROF. clients, overseas turnover in financial services leapt significantly, too, by 147.4%, bucking a wider trend of falling exports. Only wholesalers NUMBER OF COMPANIES NUMBER OF COMPANIES managed to beat this level, with a 215.6% increase in overseas YORKSHIRE REPORT 2016 YORKSHIRE REPORT 2015 turnover. Construction also posted a positive improvement in both profit, 54.4%, and turnover, 8.3%.

16 BDO LLP | THE YORKSHIRE REPORT 2016

BREAKDOWN OF THE OVERALL GROUP TURNOVER BY BREAKDOWN OF GROUP PROFIT (LOSS) BEFORE TAX BY SECTOR SECTOR

45,000,000 MANUFACTURING 40,000,000 SERVICES 35,000,000 FINANCIAL & PROF. SERVICES 30,000,000 FOOD AND DRINK 25,000,000 TRANSPORT AND MOTOR 20,000,000 RETAIL - ASDA/MORRISONS 15,000,000 RETAIL - OTHER 10,000,000 CONSTRUCTION

5,000,000 TMT

0 PUBLIC SECTOR

TMT WHOLESALE LEISURE SERVICES LEISURE WHOLESALE RETAIL - OTHER RETAIL PUBLIC SECTOR

CONSTRUCTION ENERGY AND UTILITIES MANUFACTURING FOOD AND DRINK ENERGY AND UTILITIES ENERGY TRANSPORT AND TRANSPORT MOTOR RETAIL - ASDA/MORRISONS RETAIL

FINANCIAL & PROF. SERVICES FINANCIAL & PROF. -500,000 0 500,000 1,000,000 1,500,000

TURNOVER (TH) GBP TURNOVER (TH) GBP PROFIT (LOSS) BEFORE TAX TH PROFIT (LOSS) BEFORE TAX TH GBP YORKSHIRE REPORT 2016 YORKSHIRE REPORT 2015 GBP YORKSHIRE REPORT 2016 YORKSHIRE REPORT 2015

If there was ever any doubt that Yorkshire might be losing its lustre as a financial services hub, last year’s top 250 results should have dispelled all fears.

17 THE YORKSHIRE REPORT 2016 | BDO LLP

2016 250 GROUP

• A Shade Greener Limited MANUFACTURING • Colton Mill Holdings Limited TRANSPORT AND • GMI Construction Holdings CONSTRUCTION MOTOR PLC • A.E.S. Engineering Limited MANUFACTURING • Communisis PLC MANUFACTURING • Go Outdoors Topco Limited RETAIL • A.W. (Europe) Limited MANUFACTURING • Continental Wine & Food FOOD AND DRINK • GRI Group Limited MANUFACTURING • AAK (UK) Limited FOOD AND DRINK Limited • Group Auto Union UK And TRANSPORT AND • ABI Alpha Limited MANUFACTURING • Country Style Foods Limited FOOD AND DRINK Ireland Limited MOTOR • Acorn Mobility Services Ltd. MANUFACTURING • Gym Topco Limited LEISURE • Adler & Allan Holdings SERVICES • Cppgroup PLC FINANCIAL & • H Walton Limited WHOLESALE Limited PROFESSIONAL FOOD AND DRINK • Adva Optical Networking TMT SERVICES • H.B.Clark & Co.(Successors) Limited Limited • Cranswick PLC FOOD AND DRINK • H.I.Weldrick Limited RETAIL • Aetc Limited MANUFACTURING • Croda International Public MANUFACTURING RETAIL • AFI Topco Limited SERVICES Limited Company • Hallmark Cards (Holdings) Limited • AMG Superalloys UK Limited MANUFACTURING • D.M.Keith Limited TRANSPORT AND MOTOR • Harron Group Limited CONSTRUCTION • Andrew Marr International FOOD AND DRINK CONSTRUCTION Limited • Damartex UK Limited RETAIL • Henry Boot PLC RETAIL • Arco Limited SERVICES • Daniels Chilled Foods Limited FOOD AND DRINK • Heron Food Group Limited TMT • Ardagh Glass Limited MANUFACTURING • Dart Group PLC LEISURE • Hocomm Limited MANUFACTURING • Arizonaco Limited LEISURE • DB Schenker Rail (UK) Limited TRANSPORT AND • Howarth Timber Group MOTOR Limited • Arla Foods Limited FOOD AND DRINK • Dechra Limited MANUFACTURING • Hoyer Petrolog UK Limited TRANSPORT AND • Arnold Laver Holdings SERVICES • Decorative Panels Holdings MANUFACTURING MOTOR Limited Limited • Hudson Contract Services FINANCIAL & • Arran Isle Limited SERVICES • Denso Marston Ltd MANUFACTURING Limited PROFESSIONAL • Arrow Enterprise Computing TMT SERVICES • DFS Furniture PLC RETAIL Solutions Limited • Hull City Tigers Limited LEISURE • Dixons Academies Charitable PUBLIC SECTOR • ASD Limited MANUFACTURING • IAN Mosey Limited FOOD AND DRINK Trust Ltd • Augean PLC SERVICES • Ideal Boilers Limited MANUFACTURING • Dmwsl 620 Limited FINANCIAL & • B. Braun Medical Limited MANUFACTURING PROFESSIONAL • Ideal Standard (UK) Limited MANUFACTURING • Baird Group (Holdings) RETAIL SERVICES • Idexx Laboratories Limited SERVICES Limited • Drax Group PLC ENERGY AND • Insight Direct (UK) Ltd TMT MANUFACTURING UTILITIES • Barrett Steel Limited • Interbulk (UK) Limited SERVICES MANUFACTURING • Drifford Group Limited MANUFACTURING • Bawtry Investments Limited • Interface Europe Ltd. MANUFACTURING CONSTRUCTION • Dunhills (Pontefract) P L C FOOD AND DRINK • Bentley Holdings Limited • International Personal FINANCIAL & • Bettys & Taylors Group Ltd FOOD AND DRINK • Dyneley Holdings Limited TRANSPORT AND Finance PLC PROFESSIONAL MOTOR • Blenheim Group Limited TMT SERVICES • ELG Haniel Metals Ltd MANUFACTURING • Bonmarche Holdings PLC RETAIL • Irwin Mitchell LLP FINANCIAL & • Emis Group PLC TMT PROFESSIONAL • Boparan Holdco Limited FOOD AND DRINK • Engie GAS Limited ENERGY AND SERVICES • Borgwarner Holdings Limited MANUFACTURING UTILITIES • J.R. RIX & Sons Limited TRANSPORT AND • Braveshire Limited MANUFACTURING • Engie Power Limited ENERGY AND MOTOR • Brenntag UK Limited WHOLESALE UTILITIES • James Durrans & MANUFACTURING • Bridon International Ltd. MANUFACTURING • EVO Business Supplies SERVICES Sons,Limited • Broadstreet Great Wilson RETAIL - ASDA/ Limited • Jaytee Energy Ltd TRANSPORT AND Europe Limited MORRISONS • Extra Detail Limited FOOD AND DRINK MOTOR • Jct600 Limited TRANSPORT AND • Broomco (3554) Limited FOOD AND DRINK • F. Smales & Son (Fish FOOD AND DRINK MOTOR • Bupa Care Homes (Cfhcare) PUBLIC SECTOR Merchants) Limited • Jeld-Wen UK Limited MANUFACTURING Limited • Falcon Capital Investments PUBLIC SECTOR • JLA Equityco Limited SERVICES • Burrows Motor Company TRANSPORT AND Limited Limited MOTOR • Fenner PLC MANUFACTURING • John Cotton Group Limited MANUFACTURING • BUY IT Direct Ltd RETAIL • Findpath Limited TRANSPORT AND • Karro Food Group Limited FOOD AND DRINK MOTOR • Caddick Group PLC CONSTRUCTION • Kcom Group Public Limited SERVICES • First West Yorkshire Limited LEISURE Company • Camira Group Ltd MANUFACTURING • Fives Landis Limited MANUFACTURING • Keepmoat Regeneration CONSTRUCTION • Carclo PLC MANUFACTURING • FMG Support Group Limited TRANSPORT AND Limited • Card Factory PLC RETAIL MOTOR • Kelda Eurobond CO Limited ENERGY AND MANUFACTURING • Carnaudmetalbox Engineering • Fullers Foods International FOOD AND DRINK UTILITIES Limited PLC • Knaresborough Investments SERVICES FOOD AND DRINK • Chilled Foods (UK) Ltd • G. & M. Paul Limited FOOD AND DRINK Limited PUBLIC SECTOR • City Health Care Partnership • Gajan Holdings Limited RETAIL • Kostal UK Limited MANUFACTURING CIC • Gardner Denver Ltd MANUFACTURING • Koyo Bearings (Europe) MANUFACTURING • Clipper Logistics PLC SERVICES Limited • George Barker & Company MANUFACTURING ENERGY AND • CNG (Group) Limited (Leeds) Limited • Lanes Group PLC SERVICES UTILITIES

18 BDO LLP | THE YORKSHIRE REPORT 2016

• Lawcris Panel Products WHOLESALE • Plasmor Limited MANUFACTURING • SVM Global Limited SERVICES Limited • Plusnet PLC TMT • Swift Acquisitions Limited MANUFACTURING • LEO Group Limited FOOD AND DRINK • Pluss-Staufer Limited MANUFACTURING • Symphony Holdings Limited MANUFACTURING • Liberty2803 Limited SERVICES • Polypipe Group PLC MANUFACTURING • T.H.S. Tools Limited WHOLESALE • Ligentia Group Limited SERVICES • Poundworld Retail Limited RETAIL • T.J.Smith And MANUFACTURING • Linbrooke Services Limited SERVICES • PPG Architectural Coatings MANUFACTURING Nephew,Limited • Linpac Senior Holdings MANUFACTURING UK Limited • Tenet Group Limited FINANCIAL & PROFESSIONAL Limited • Premdor U.K. Holdings MANUFACTURING SERVICES • Lion/Gloria Holdco Limited WHOLESALE Limited • The Car People Limited TRANSPORT AND • London Security Plc. SERVICES • Premier Farnell PLC MANUFACTURING MOTOR CONSTRUCTION MANUFACTURING • M.K.M. Building Supplies • Pressure Technologies PLC • The Fuelcard Company UK TRANSPORT AND (Holdings) Limited • Principal Hotels Topco 1 LEISURE Limited MOTOR RETAIL • Mamas & Papas Limited Limited • The Harratts Group Limited TRANSPORT AND • Manheim Holdings Limited TRANSPORT AND • Principle Holdings Limited SERVICES MOTOR MOTOR • Project Aqua Topco Limited MANUFACTURING • The Kerfoot Group Limited FOOD AND DRINK RETAIL • Maplin Electronics Limited • Provident Financial PLC FINANCIAL & • The Reed Boardall Group SERVICES • Maria Mallaband Care Group PUBLIC SECTOR PROFESSIONAL Limited Limited SERVICES • The Right Fuelcard Company TRANSPORT AND • Marshall Holdings Limited CONSTRUCTION • Qhotels Holdings Limited LEISURE Limited MOTOR • Qualitycourse Limited FINANCIAL & • The West Retail Group TMT • Marshalls PLC MANUFACTURING PROFESSIONAL Limited SERVICES • Mavisbank Limited SERVICES • Thomas Topco Limited LEISURE • R & R.C.Bond (Wholesale) WHOLESALE • Mccain Foods (G.B.) Limited FOOD AND DRINK • Thompson Mcdougall Steel MANUFACTURING Limited • Mclean & Appleton TRANSPORT AND Holdings Limited • R&R ICE Cream PLC FOOD AND DRINK (Holdings) Limited MOTOR • Thornton & Ross Limited MANUFACTURING • Redcentric PLC TMT • Meridian Motor Group TRANSPORT AND • Together Housing Group PUBLIC SECTOR Limited MOTOR • Redhall Group PLC MANUFACTURING Limited • Metis Bidco Limited FINANCIAL & • Renew Holdings Plc. CONSTRUCTION • Tunstall Healthcare Group PUBLIC SECTOR PROFESSIONAL Limited SERVICES • Ripon Farm Services Limited TRANSPORT AND MOTOR • Turner & Townsend Limited CONSTRUCTION • MJ Gleeson PLC CONSTRUCTION • Riverside Motors Holdings TRANSPORT AND • UFP (UK) Limited WHOLESALE • Motors Insurance Company TRANSPORT AND Limited MOTOR Limited MOTOR • UK Greetings Limited RETAIL • Rosti Canning Brett Ltd. MANUFACTURING • National Tube Stockholders MANUFACTURING • Ultra Finishing Limited MANUFACTURING Limited • Saria Limited FOOD AND DRINK • Valli Forecourts Limited TRANSPORT AND • New York Bakery Company FOOD AND DRINK • Scaid Investments Limited MANUFACTURING MOTOR Limited • Schaeffler Automotive TRANSPORT AND • Viewtone Trading Group RETAIL • Newly Weds Foods FOOD AND DRINK Aftermarket (UK) Limited MOTOR Limited Acquisition Limited • Scientific Games International MANUFACTURING • Wagg Foods Holdings Limited FOOD AND DRINK • NG Bailey Group Limited MANUFACTURING Limited • Wakefield And District PUBLIC SECTOR • Nicholas Associates Limited FINANCIAL & • Seagold Limited FOOD AND DRINK Housing Limited PROFESSIONAL • Sedalcol UK Limited FOOD AND DRINK • Wakefield City Academies PUBLIC SECTOR SERVICES • Serviced Dispense Equipment SERVICES Trust • Nippon Gohsei UK Ltd. MANUFACTURING (Holdings) Limited • Wavin Limited MANUFACTURING • Northern GAS Networks ENERGY AND • Severfield PLC MANUFACTURING • Wesco Aircraft Europe, Ltd TRANSPORT AND Holdings Limited UTILITIES MOTOR • Sewell Ventures Limited SERVICES • Norton Healthcare Limited MANUFACTURING • William Jackson & Son FOOD AND DRINK • Shepherd Building Group CONSTRUCTION Limited • Novoferm Europe Limited MANUFACTURING Limited • WM Morrison Supermarkets RETAIL - ASDA/ • Nufarm UK Limited MANUFACTURING • SIG PLC CONSTRUCTION P L C MORRISONS • Olam Food Ingredients UK FOOD AND DRINK • Simon Bailes Limited TRANSPORT AND • Wortlea Estates (Leeds) TRANSPORT AND Limited MOTOR Limited MOTOR • Outokumpu Stainless Limited MANUFACTURING • Siteserv Management Limited SERVICES • WYG PLC FINANCIAL & • Outwood Grange Academies PUBLIC SECTOR • Spear & Jackson Group MANUFACTURING PROFESSIONAL Trust Limited SERVICES • Pace Limited TMT • Specialty Powders Holdings FOOD AND DRINK • York Mailing Group Limited SERVICES Limited • Pavers Holdings Limited RETAIL • Your Electrical Supplies, WHOLESALE • Paynes Dairies Limited FOOD AND DRINK • Speedboat Holdco Limited FOOD AND DRINK Service And Solutions (A) • Pegler Yorkshire Group MANUFACTURING • Stolzle Flaconnage Limited MANUFACTURING Limited Limited • Strata Homes Limited CONSTRUCTION • Zenith Leasedrive Holdings FINANCIAL & PROFESSIONAL • Persimmon Public Limited CONSTRUCTION • Strategic Team Group Limited CONSTRUCTION Limited SERVICES Company • Style Group Holdings Limited CONSTRUCTION SERVICES • Pimco (Holdings) Limited • Sulzer Pumps (UK) Limited MANUFACTURING

19 THE YORKSHIRE REPORT 2016 | BDO LLP

BDO Yorkshire

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 JASON WHITWORTH Head of Tax Head of Audit Corporate Finance - M&A

+44 (0)113 204 1284 +44 (0)113 290 6144 +44 (0)113 204 1237 [email protected] [email protected] [email protected]

DAN BROOKES LINDA COOPER MATT COPLEY Corporate Tax Audit Corporate Finance - Transaction Services

+44 (0)113 204 1244 +44 (0)113 204 6148 +44 (0)113 204 1217 [email protected] [email protected] [email protected]

BILLY CAIRNS MARK LANGFORD GRAHAM NEWTON VAT Audit Business Restructuring

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MARK SYKES CRAIG BURTON ANDY MAHON Business Services and Audit Government and Accounting Infrastructure

+44 (0)161 833 8307 +44 (0)113 204 1225 +44 (0)113 290 6150 [email protected] [email protected] [email protected]

BRENT WILKINSON Forensic

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20 BDO LLP | THE YORKSHIRE REPORT 2016

Basis of preparation

The companies included in the Yorkshire Report were selected by The financial information in this report has been compiled conducting an initial search of FAME for companies with both a exclusively from publicly available information under the key registered office and trading address in the North, South, East or assumptions and limitations outlined above. It has been designed West Yorkshire postal areas (‘the region’). solely to illustrate trends in the financial performance of a representative sample of companies in the region. We eliminated any companies that have a parent company also based in the region so that only the largest company in a group BDO has not carried out any verification work on the financial would be included in our sample. We also eliminated companies that information in this Report and gives no opinion on the financial were judged not to be trading or controlled within the region. information. BDO makes no claims, promises or guarantees about the accuracy, completeness or adequacy of the contents of this The ‘current period’ financial information is based on the latest filed report. accounts available on FAME at our selected cut-off date, with the prior year comparatives based on the results in last years report. No reliance should be placed on the information contained in this report and, to the fullest extent permitted by law, BDO does not Our previous report ‘Yorkshire Report 2015’ comprised the top 250 accept or assume any responsibility to anyone for the information companies, with a year-end ranging between 30 April 2013 and 31 contained in this report. March 2014. BDO has made a number of judgements in aggregating the To produce the financial information we simply aggregated the information into a consistent format. BDO does not, and cannot, data contained within FAME, with no consolidation adjustments. warrant the completeness or accuracy of the adjustments made Depending on the accounts filed, some of our figures will be based during the aggregation. on consolidated accounts and some on entity-only accounts. In addition, some of the financial information will be based on UK generally accepted accounting principles accounts and others will be based on International Financial Reporting Standards accounts. Sources

1. Source: Northern Devolution: West Yorkshire Combined Authority and 13. Source: http://www.the-lep.com/news-and-blog/blog/january-2016/ Leeds City Region Enterprise Partnership Joint Response. chairman-s-blog-what-does-2016-have-in-store-for/#sthash.r9hEF0ho. 2. Source: http://www.theplanner.co.uk/news/devolution-a- dpuf %E2%80%9Conce-in-a-lifetime%E2%80%9D-opportunity-for-the- 14. Source: www.the-lep.com/news-and-blog/news/leeds-station-to-be- north-of-england transformed-into-a-high-speed/#sthash.8JY2BMia.dpuf 3. Source: http://www.harrogateadvertiser.co.uk/news/local/will- 15. Source: http://www.cbre.co.uk/uk-en/services/corecities north-yorkshire-s-new-transport-plan-bring-necessary-change-1- 16. Source: http://www.imf.org/external/pubs/ft/weo/2016/update/01/ 7713769#ixzz3zg9JNOME 17. Source: http://www.communisis.com/docs/default-source/latest- 4. Source: http://www.businessinspiredgrowth.com/news/autumn- financial-results/com-interrep-15-web statement-good-news-for-yorkshire-business/ 18. Source: https://www.bdo.com/insights/tax/federal-tax/2016-bdo-tax- 5. Source: http://www.yorkpress.co.uk/news/14102825.__100m_boost_for_ outlook-survey York___UPDATED/ 19. Source: http://www.yorkshirepost.co.uk/business/ 6. Source: http://www.itv.com/news/tyne-tees/update/2016-03-17/sirius- blackfriar-unprecedented-skills-gap-that-could-damage- issues-plans-for-north-yorkshire-potash-mine/ 7. Source: http://www.yorkshirepost.co.uk/news/mayor-for-south- economy-1-7700683 yorkshire-as-devolution-deal-agreed-1-7492491 20. Source: http://www.yorkshirepost.co.uk/business/ 8. Source: http://sheffieldcityregion.org.uk/2016/01/top-local-leaders- blackfriar-unprecedented-skills-gap-that-could-damage- make-final-call-for-consultation-responses/ economy-1-7700683 9. http://sheffieldcityregion.org.uk/2016/01/500000-awarded-for-cleaner- buses-in-sheffield-city-region/ 21. Source: https://en.wikipedia.org/wiki/Yorkshire_and_the_ 10. Source: http://www.theguardian.com/environment/2016/feb/03/worlds- Humber#Education largest-offshore-windfarm-to-be-built-off-yorkshire-coast 22. Source: http://www.utcsheffield.org.uk/news/sheffield-students- 11. Source: http://www.humberlep.org/humber-enterprise-zone-to-more- celebrate-being-yorkshires-first-utc-graduates/ than-double-following-spending-review/ 12. Source: http://www.humberlep.org/plans-unveiled-for-uks-first- multimodal-logistics-training-centre/

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