< Previous10 Business Link www.blmforum.net COMMERCIAL PROPERTY An industrial and logistics property powerhouse An industrial and logistics property powerhouse www.blmforum.net Business Link 11 COMMERCIAL PROPERTY © stock.adobe.com/ Kletr Y T orkshire’s reputation as a powerhouse for industrial and logistics property has only strengthened lately, with plans for new schemes receiving the green light and being submitted, site deals, and new lettings. At Ferrybridge Power Station, for example, Mountpark has secured planning permission from Wakefield Council for the redevelopment of The Coal Yard. The hybrid application includes detailed planning permission for site infrastructure works and outline approval for up to 1.64 million sq ft of industrial and logistics space on the 110-acre site. The regeneration scheme is expected to create upwards of 2,000 12 Á Yorkshire continues to be an attractive location for industrial and logistics property. jobs and will cater for requirements from 40,000 sq ft to 640,000 sq ft. Brett Huxley, development director for Mountpark (UK & Ireland), says: “This decision is the next step towards delivering a new future to this iconic site. Mountpark Ferrybridge represents one of the largest job creation projects in West Yorkshire in recent years, and we hope to attract significant inward investment by creating a high quality industrial and logistics campus for our occupiers. The project will generate a vast array of job opportunities for local 12 Business Link www.blmforum.net COMMERCIAL PROPERTY people, bringing industry and economic prosperity back to Ferrybridge.” Meanwhile, logistics real estate developer Panattoni has acquired a 65- acre site on the Nottinghamshire/Yorkshire border with planning consent for over 1.2 million sq ft. The two phase development, called Panattoni Central A1(M), by junction 34 of the A1(M), has been acquired from Mulberry Developments in an off-market deal. Panattoni will commence construction of what it says will be the largest-ever speculative logistics unit in the North of England, a building of 770,000 sq ft, in the autumn. Practical completion is anticipated in September 2025. Winvic Construction has been appointed as the contractor. The remaining 27-acre plot, which already benefits from reserved matters planning consent for a 461,000 sq ft building, will initially be marketed on a build-to-suit basis. Dan Burn, head of development North West & Yorkshire at Panattoni, said: “This is a fantastic opportunity for us to acquire a prime logistics site in an established location by the A1(M). The development provides us with the opportunity to capitalise on the dearth of supply of XXL units across the country.” Panattoni was advised by Cushman & Wakefield and Mulberry Developments was advised by M1 Agency. In a further, fresh deal, a major industrial unit in Scarborough has been sold to well-known retailer, Boyes, which was established in the town in 1881, to support the company’s new store openings and ongoing expansion programme. The detached 132,163 sq ft building sits on a 5.58-acre plot within Eastfield Industrial Estate on Thornburgh Road. It was previously home to printing company, Pindar, which formed part of the YM Group before it went into administration in 2022. Boyes will now commence transforming the site into a new distribution centre that will operate alongside its existing warehouses on Havers Hill and Hopper Hill Road. Some operations will transfer to the new site, but it is expected that new jobs will be created when the new site comes fully on stream. Andrew Boyes, chairman and joint managing director of the firm, said: “Investing in this new site will provide considerable additional storage space to augment Boyes’ two existing distribution centres in Scarborough. These sites were struggling for space, for the volume of stock being handled, so having a third warehouse facility will improve efficiency and provide the capacity to open more stores, as well as helping to ensure that all our shelves are stocked with the vast CGI of Lovel Developments’ new schemewww.blmforum.net Business Link 13 COMMERCIAL PROPERTY range of products that make us so popular with our customers.” Moreover, Lovel Developments has revealed plans for a project to help meet demand for new employment space and drive investment, growth and jobs. An outline planning application has been submitted for a scheme which would deliver around 400,000 sq ft of new business space, expanding existing business parks including Green Park at junction 38 on the M62 at Newport. Demand is expected from sectors including light industrial, general industry and storage and distribution. Philip Lovel, founder of Lovel Developments, said: “In the East Riding there’s a strong need and market demand for employment land to accommodate predicted growth and meet occupier requirements in key sectors such as renewable energy, manufacturing and engineering, agriculture, food and drink and many more. These proposals are of a scale and quality which will help to promote and support employment growth and stimulate continued economic investment to the area, consistent with regional and local aspirations.” Finally, Paloma Capital has been given planning consent for four new industrial/warehouse units at its business park on the outskirts of York, which means the scheme now offers design and build opportunities for units up to 15,400 sq ft. Formerly known as Green Park Business Centre, the 122,000 sq ft site on Goose Lane in Sutton-on- the-Forest was acquired by Paloma Capital in 2022 and subsequently rebranded to become ‘York North’. Jeremy Thiagarajah, director for asset management and investment at Paloma Capital, said: “This site fits well with our acquisition strategy for investing in well located sites in under supplied areas. Whilst we have already committed to a major refurbishment programme of existing accommodation, the provision of four new state of the art units will help to fulfil current demand for purpose- designed, last mile logistics space where occupiers can influence the design.” The industrial unit in Scarborough bought by Boyes14 Business Link FINANCE T he number of companies going bust has hit a 30-year high, and the Prime Minister is warning of a “painful budget” to come. With cash flow problems all across the board, many will be wondering how they can muster the finances necessary to keep operating in the coming months. Economic uncertainty such as this isn’t unusual, but what is a little surprising is high rates of business confidence, and the number of insolvent companies suggesting they could have continued operating with sufficient cash injections. It may be that businesses are being forced to close as a result of mass closure of suppliers or customers, with debts defaulted on and invoices going unpaid. Our region has struggled with invoice payments in recent years, with more and more companies stretching out the terms to delay payment for services as long as humanly possible. If cash flow is the problem, then there are really only a few ways to solve it in the short term – firstly, to secure finance to alleviate the issue, be it through bank loans, sale of shares or alternative methods such as angel investors or crowdfunding. Or, the second approach, is to focus on turning invoices into cash. Our region has a major problem currently with late payments, forming a culture of it in some places – especially with certain Govt bodies being the worst at paying on time. Shortening agreements on payment clauses could help improve cashflow quickly, but there may also be money to be found in selling your invoices to factoring companies. These businesses will purchase and chase your invoices for you, paying you a smaller percentage of the sale in exchange for them taking on the delay and the risk. This is lost profit at the end of the day, but if customers are being inexcusably slow or if the cash flow needs immediate attention, it is a short-term solution to A painful budget, insolvencies at an all-time high and trouble ahead. It’s a tough time to be in business, and many are looking at how to cash out. 16 Á Struggling finance FINANCE © stock.adobe.com/ William16 Business Link www.blmforum.net FINANCE bring in some quick money. The risk with factoring, and something that should be addressed if you are considering using it, is that it comes with stigma attached. To make their own money, factoring companies naturally are quite aggressive in hunting invoices and late payers, and while those people certainly should pay, and are required by law to do so, they may associate those aggressive tactics with your own company. This could lead to customers not wishing to do business with you in the future or feeling like you have “set the hounds” on them for being a little late on their bills. In times like these it’s normal, even instinctual, to look to buoy that cashflow with a loan. The poor trading conditions will pass surely, and all that’s needed is a little injection, some stimulus, to keep things running until that time. This is the common response, but it may not be the correct one. A truth that few like to acknowledge is that if a company is so sensitive to trading conditions that it can suffer, then perhaps it is time to re-think things and see if that can’t be fixed. Or, if it can’t, if it might not be time to put the business up for sale. The question therefore becomes, should you inject more money into a business to keep it afloat, or look to cash out? Nowadays, many people do not think kindly on selling their company. The idea seems to be that those who founded it should see it through to the end, bitter or not, but the reality is that any business www.blmforum.net Business Link 17 FINANCE owner likely founded their company for one reason and one reason only – money. There may have been other benefits such as being your own boss or the pride involved, but financial reasons and a better lifestyle make up the main reasons, and those should be kept in mind in difficult times. With the uncertain state of the economy and conditions ever worsening, along with the great resignation and skills shortages in several industries, it may be that a daunting time lays ahead for many, and that selling the business on to another that can steer it through said waters would be better for everyone involved. It’s not a question of quality of leadership despite how personal a decision it may feel. Larger companies can better consolidate and use resources to keep their assets stable, while SME’s and family-run business especially may struggle. This has become no less troublesome a matter with securing finance being so difficult of late. When everyone is struggling, banks are less likely to lend money, and even then, they will be looking for that finance to be invested in securing more business, not propping up a poor cash flow. Securing finance is again easier for larger firms with more assets to bring to bear. It is always better to try and sell a business when it is succeeding, and that may be a deterrence for some, but poor cash flow due to outside influences does not necessarily mean a weak business. It might be just what investors are looking for, especially if you can show that the company has and can be profitable when everything is not conspiring against it. Of course, in that situation it might be more tempting to try and bring the company through the struggle yourself, either to keep it under control or sell at an even more profitable juncture. © stock.adobe.com/ Kittiphan Sustainability reporting for small businesses In today’s business landscape, sustainability is not just a buzzword but a crucial component of long-term success. For small businesses, sustainability reporting offers a powerful tool to demonstrate commitment to environmental and social responsibility, while also enhancing transparency and trust with stakeholders. Sustainability reporting involves disclosing the environmental, social, and governance (ESG) practices of a business. While traditionally associated with large corporations, small businesses are increasingly recognizing the value of these reports. They provide a structured way to communicate efforts in reducing carbon footprints, managing resources efficiently, and contributing positively to the community. For small businesses, starting with sustainability reporting may seem daunting, but it can begin with simple steps. Identifying key areas such as energy use, waste management, and employee well-being can form the basis of your report. Even small initiatives, like switching to energy-efficient lighting or supporting local suppliers, can be highlighted. The benefits of sustainability reporting for small businesses are significant. It not only helps in attracting environmentally conscious customers and investors but also in identifying cost- saving opportunities through better resource management. Moreover, it positions the business as a responsible player in the market, which can enhance reputation and competitiveness. As stakeholders increasingly prioritize sustainability, small businesses that adopt sustainability reporting are better equipped to meet these expectations and thrive in a changing business environment. It’s not just about compliance; it’s about creating value for both the business and society at large. For more information visit https://aprobinson.biz/, email andrew.robinson@aprobinson.biz, or call 01472 345888 18 Business Link www.blmforum.net EDUCATION & TRAINING Training is an exceptionally valuable resource to a business. In a recent survey, 56% of UK workers stated that they would leave their current role if their workplace stopped providing training. 31% of those surveyed had in fact left a position after experiencing this. In house training generally means that one employee is used to run a training course for other employees of the same business. This usually involves the use of the company’s own expertise, resources, and unique perspective. This can be at their workplace, or at an external venue. This provides many benefits to both employers and employees. However, in house training can be difficult for businesses to justify, given the time away from other duties required to develop and run these programmes. So, what are the key positives derived from taking the in-house training plunge? Contrary to popular belief, in house training can be cost effective. If multiple employees need training, it allows all employees to attend at once, rather than training them individually. This also reduces travel costs and expenses, as the training could be held in-office or somewhere close by, meaning that mileage or even hotel bills do not have to be considered. It also means that new starters could be trained from day one, rather than waiting until an external trainer is available, thus increasing the productivity of the new employee early on. Employment of internal training allows businesses to put their own stamp on training courses. It means that trainees can be educated in the unique product, way of thinking and, or working that makes the business successful and distinctive. This helps to promote a group mindset, and a consistent way of working. It also means that all employees can be highly educated on the product or service they provide, increasing their understanding and ability to utilise their own services. In house training removes the need for unnecessary mixing, as those training them are people with whom they would already be interacting. Moreover, courses can be delivered online, via platforms such as Microsoft Teams. These sites allow screen sharing for easy demonstration and have a hands-up function to allow employees to easily ask questions. As many businesses continue to operate on a hybrid basis, this could seamlessly integrate into everyday operations. Whilst taking a day out for training will result in some lost productivity, an employee who is unskilled or incorrectly trained could result in a long term lack of productivity as the potential With recruitment issues at an all-time high, businesses are looking for ways to fill their roster. Internal training may be the solution. 20 Áwww.blmforum.net Business Link 19 EDUCATION & TRAINING © stock.adobe.com/ Right 3Next >