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Gooch & Housego warns of price rises in response to Trump's proposed tariffs

A Somerset components manufacturer has warned it may be forced to increase prices in response to President Donald Trump's tariffs on countries including China and Mexico. Ilminster-based Gooch & Housego, which makes detectors, lasers and fibre optic equipment, said it was "closely monitoring" the situation and the "retaliatory responses" from the nations affected. But it planned to pass on any cost impact to customers. The company told investors on Monday (February 24) it was also "alert" to any potential supply chain disruptions caused by China limiting the export of certain materials used in the manufacture of its products in response to the new tariff regime. "Our supply chain and engineering teams are working to identify alternative sources for those materials," a spokesperson said. On Monday, Gooch & Housego also announced an increase to its order book to £126.4m - up from £104.5m at the end of September. But it warned that recovery in the the semiconductor and industrial laser markets remained slow. "We continue to expect those markets to recover in the second half of this calendar year and to contribute to the group's trading in our fourth quarter," the firm said. "We are starting to see the level of customer orders improve in several of our Industrial sub-markets but the recovery is not yet broadly based." The company's net bank debt at the end of January 2025 rose to £19.2m as a result of the acquisition of Phoenix Optical in October and currency exchange movements. Lease liabilities totalled £10.2m. The business said full-year trading expectations would remain unchanged if the company was successful in navigating the changing tariff landscape. Charlie Peppiatt, chief executive of Gooch & Housego, said: "I am pleased to see the increase in the group's order book since the beginning of the year. It is clear the focus on delivering our strategic plan through improved customer experience, superior operational execution and value creating technology is starting to bear fruit. "Whilst we are mindful of the uncertainty that new tariff regimes are introducing across several of our end markets, we remain positive that the group will deliver a significantly improved financial performance in FY2025. The group is strongly positioned in attractive growth markets and well placed to benefit as its industrial markets return to growth."

South West bucks UK manufacturing decline as aerospace and defence firms report 'strong' start to 2025

Aerospace and defence firms in the West of England are experiencing "very strong demand" for business, bucking a wider UK decline in manufacturing, according to a new report. Manufacturers across the region have reported a strong start to the year, the survey by national manufacturing body Make UK and business advisory firm BDO found. Both output (+32%) and orders (+39%) were positive, with the forecast set to improve further in the next quarter. As a result, companies are looking to hire more staff with recruitment intentions increasing from +5% to +21% over Q2, the report said. Capital expenditure plans are also significantly ahead of the national picture at +32%, while the South West's renewable energies sector is also seeing strong demand. Nationally, Make UK is forecasting that British manufacturing will contract by -0.5% in 2025, down from a forecast of -0.2% in the last quarter, before growing by 1% in 2026. Matthew Sewell, head of manufacturing at BDO in the South West, said: “The economy in the South West relies heavily on manufacturing, in particular the strength of the aerospace, defence and renewable energy sectors . It’s encouraging to see the region have a strong start to the year, but we cannot be complacent - our manufacturers are resilient but they’re not invincible. “Manufacturers across the South West now need targeted support from government, whether that be reducing complexity, streamlining trade or boosting access to capital to enable them to focus on growth.” Make UK is now calling on the government to bring forward a long-term industrial strategy with advanced manufacturing "at its heart" to help grow the economy. Keri Anne Mruk, region director at Make UK in the South, said: “This has been a strong start to the year for manufacturers in the South West with the region bucking the national picture. "To build on this it’s now essential that Government brings forward an industrial strategy at the earliest opportunity. This will give manufacturers the confidence to plan for the future with a stable, supportive policy environment.”

100 jobs lost as Gateshead's Virtuoso Doors falls into administration

Jobs have been lost amid the collapse of a £23m turnover door manufacturer with its factory in Gateshead. Virtuoso Doors, which specialised in making composite doors for the residential market from its 120,000 sqft facility, had been part of the Customade Group which included Norwich-based Polyframe, Gloucestershire-based Customade Limited and Stevenswood Limited. Administrators were called into the group following losses in recent years, with two separate deals subsequently saving four of the group's five businesses and 500 jobs in the process. But Follingsby Park-based Virtuoso was not among the transactions and is now being wound up with the loss of 101 jobs. Will Gold, CEO of Customade Group, said the group had been under significant financial strain in recent years, as demonstrated by group level accounts which show operating of losses of more than £13m in 2022. Customade had fallen into administration in 2020 before being acquired by investors in a move that had saved about 900 jobs. Mr Gold said: "Over the past two years, the market for our products has been contracting, and we’ve witnessed numerous businesses within our sector struggle and ultimately go into insolvency. Our goal throughout the process was to secure the trading future of as much of the group’s previous operations as we could and thereby protect the jobs of as many of our employees as possible." He added: "I am pleased that through these transactions we have been able to secure so many jobs going forwards, but I am deeply disappointed that we were unable to find a solution that preserved the Virtuoso business and avoided the other staff redundancies. I am hugely grateful to all our staff that worked so hard and showed such commitment during a very difficult period and for the support of our supply chain partners and valued customers." Most recent accounts for Virtuoso, covering 2022, show it made an operating profit of £1.19m on turnover of £23.7m. Pre-tax profits in the same period fell from £3.2m to about £883,000 - a performance that directors said was disappointing but that steps were being taken to reduce the company's costs and improve its operational structure. A spokesperson for joint administrators Alvarez & Marsal said: "On December, 18, Rob Croxen and Mark Firmin of global professional services firm Alvarez & Marsal were appointed as joint administrators over Customade Group Services Limited and its subsidiaries; Polyframe Limited, Customade Limited, Stevenswood Limited and Virtuoso Doors Limited.

Government delivers support to UK car industry after pressure from manufacturers

The UK Government has announced a series of initiatives aimed at supporting the automotive industry amidst challenges posed by US tariffs and the transition to electric vehicles. Already lobbying for modifications to the electric vehicle mandate, the car sector was hit hard by the imposition of a 25% tariff on exports to the US. In response to concerns over potential job losses, the Government has introduced a range of measures designed to bolster this crucial sector. A key element includes easing the targets for electric vehicle sales, after Nissan highlighted that stringent goals could jeopardise the 'viability' of its UK presence, including its Sunderland plant. Prime Minister Sir Keir Starmer said: "Global trade is being transformed so we must go further and faster in reshaping our economy and our country through our Plan for Change. I am determined to back British brilliance. Now more than ever UK businesses and working people need a Government that steps up, not stands aside. "That means action, not words. So today I am announcing bold changes to the way we support our car industry. This will help ensure home-grown firms can export British cars built by British workers around the world and the industry can look forward with confidence, as well as back with pride. And it will boost growth that puts money in working people's pockets, the first priority of our Plan for Change." Business Secretary Jonathan Reynolds, said: "This pro-business Government is taking the bold action needed to give our auto sector the certainty that secures jobs, drives investment and ensures they thrive on the global stage. Our Industrial Strategy will back the country's high growth sectors, including advanced manufacturing, so we can grow the economy and deliver on the promises of our Plan for Change." In a move to support car manufacturers towards the 2030 target for ending the sale of petrol and diesel vehicles, changes have been made to the zero emission vehicle mandate that introduce increased flexibility during the transition period and extend the allowance for hybrid usage. Several smaller companies like McLaren and Aston Martin are set to benefit from exemptions within these targets. It has been reported that fines for manufacturers for each non-compliant vehicle sold will be lowered from £15,000 to £12,000. Nissan, which mainly exports its Sunderland-manufactured vehicles into Europe and therefore less susceptible to US tariffs, has revealed a trio of models—including the new generation Leaf, an all-electric Juke and the reintroduction of the Micra—all of which are expected to perform strongly in European markets. The company's recent publications showed a significant boost in its UK operations, with production scaling up to 325,000 vehicles and revenues climbing to £7.3bn in their 2024 accounts. Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT) welcome the measures to support car manufacturers in the switch to electric vehicles as a '"really needed" step. Speaking on BBC Radio 4's Today programme, he said: "No one in the industry is denying that ultimately, we need to get to zero emission road transport but the underlying level of consumer demand just doesn't match those ambitious targets. It was a step that was really needed for this industry because the amount of pressure, financial pressure, that they're under from any number of global headwinds is severe at the moment." However, Robert Forrester, CEO of Gateshead-based listed motor retailer Vertu, said the Government's announcement "doesn’t really address the major issues". He said: “We have got 34 different global manufacturers and clearly the tariffs in the US have put most of those manufacturers under more pressure at a time when there was already pressure in the system. That’s why the Government has actually made this announcement. I’m not sure it actually goes far enough to address what will be quite significant issues in the years ahead. "The electric vehicle targets up to 2030 remain in place, the fines have been changed but it’s still a £12,000 fine for every petrol and diesel car up to 2030 that is sold above the zero emissions target - that’s billions of pounds to manufacturers - and manufacturers face a choice of either paying significant fines or rationalising petrol and diesel cars. Nothing has really changed here, this is real tinkering.

UK's manufacturing sector sees sharpest job losses since 2020 as demand plummets

The UK's manufacturing sector has seen its activity drop to a fourteen-month low, according to a new survey. This is due to lower demand and weak confidence within the industry. The S&P's manufacturing purchasing managers' index (PMI) revealed that downturns have deepened as firms prepare for changes in the Government's budget, as reported by City AM. The PMI fell to 46.9 from 47.0 in January, which was then the lowest level in 11 months. Despite beating the 'flash' estimate of 46.4, the PMI showed that the downturn led to the most significant job losses since mid-2020. All three sectors - consumer, intermediate, and investment goods - experienced reductions in production and new orders, with the consumer goods sector being the worst affected. S&P stated that the latest round of job cuts was due to "weak demand, cost control initiatives and restructuring in response to changes in both the minimum wage and employer national insurance contributions". Companies reacted to the worsening downturn by laying off staff, reducing hours, making redundancies, and not replacing those who left or retired. The recent data showed that staffing levels have fallen in five out of the past six months. Rob Dobson, Director of Global Market Intelligence at S&P, commented: "Weak demand, low client confidence and rising cost pressures are accelerating the downturns in output and new orders, while the Autumn Budget's changes to the national minimum wage and employer NICs are driving up inflation fears and intensifying the downward trend in staff headcounts." He added, "The pace of manufacturing job losses is currently running at a rate not seen since the pandemic months of mid-2020." The 1.2 per cent increase on employers' national insurance to 15 per cent was a key policy introduced by Chancellor Rachel Reeves in her budget. These figures will likely dent public confidence in the Chancellor, following Reeves' promise to "unleash growth" across the UK. Both domestic and foreign markets were impacted, with the home front suffering due to a combination of lack of expenditure and impacts of the Autumn budget.

Nissan supplier to launch £48.7m North East factory creating 183 jobs

A key supplier to Nissan has signed a deal with the Government to bring a £48.7m factory to the North East, which could employ up to 183 people. Jatco, which stands for Japan Automatic Transmission Transmission company and was formed by Nissan in 1970, is refitting and expanding a 138,840 sqft building at the International Advanced Manufacturing Park which was originally built for an automotive supplier but subsequently became the Nightingale Hospital during Covid and has been vacant since. The facility is a stone's throw from Nissan's Sunderland plant and will provide electric drivetrains for three all-electric models built at the plant: the Leaf, Juke and Qashqai. Jatco has secured more than £12m of grant funding from the Government's Automotive Transformation Fund (ATF) towards the venture, which the Business and Trade Secretary Jonathan Reynolds has claimed is a mark of confidence in the country's economy. It follows a period of global uncertainty for Nissan which has recently entered merger negotiations with Honda in the face of falling sales and financial challenges. Mr Reynolds said: "Sunderland is the beating heart of the UK’s automotive industry. Today’s announcement is a massive vote of confidence in the UK economy and this Government’s plans to make Britain the destination of choice for investment. "Not only will this boost our thriving auto industry, but it will help secure hundreds of jobs across the North East. The Government is working hand in hand with investors to build a globally competitive electric vehicle supply chain in the UK and our modern Industrial Strategy will build on this legacy, bringing growth, jobs and opportunities to every part of the UK." The new plant will be operated by new division Jatco UK and is due to be operational in 2026. From there, it hopes to ramp up production to 340,000 electric powertrains per year. The technology modularises and integrates the motor, inverter and reducer, and is said to make the drivetrains smaller and lighter. Tomoyoshi Sato, the firm's CEO, said: “I am so proud to officially open Jatco UK in the North East of England. We have enjoyed a long and fruitful partnership with Nissan and we are delighted to bring the manufacture of our 3-in-1 powertrain to the UK. This will be our fourth country for an overseas production plant, with other locations in Mexico, China, and Thailand. I am very grateful for the support of the UK Government, Sunderland City Council, and all others involved in the establishment of Jatco UK, and look forward to supporting Nissan’s EV36Zero project with these electric powertrains.” Jatco's investment in the North East is said to build on Nissan's multibillion-pound EV36Zero project which combines renewable energy with the production of the three all-electric models, and includes a third neighbouring gigafactory to make more batteries for the plant. Alan Johnson, senior vice president, manufacturing, supply chain and purchasing for Nissan AMIEO, said: "This is a fantastic step forward for our world-first EV36Zero plan. Welcoming a key supplier to the North East of England provides a big boost to the efficiency of our supply chain. We look forward to continuing our long and successful partnership as we push towards our electric future." Construction firm GMI has been appointed to carry out the extension and upgrading of Unit 6, which Jatco will occupy, having delivered the original facility in 2019.

Versarien completes sale of South Korean factory for more than £600k

Gloucestershire-based engineering firm Versarien has completed the sale of its South Korean factory and equipment for more than £600,000. The agreement with MCK Tech was announced last March as part of a strategy to monetise intellectual property (IP) through licensing. The transaction was meant to complete last July, but was delayed after MCK Tech asked for an extension to the deadline. Longhope-based Versarien has now received the final payment of £92,000, plus accrued interest, it announced on Monday (March 3). In total, Versarien has received £611,000 after a £6,000 warranty deduction from MCK Tech for its Korean plant and equipment. Under the terms of the deal, AIM-listed Versarien has granted an exclusive licence to MCK Tech for an initial period of five years, to use five patents owned by the firm in their business in Korea. MCK Tech will pay Versarien an amount equal to 4.5% of the total sales revenue earned from products manufactured using the IP. If the sales revenue derived from the IP is less than £250,000 over the first two years, the licence will terminate and MCK Tech will pay Versarien £40,000 for use of the IP. In June, Versarien said it was “optimistic” about the future after reporting a narrowing of losses. In a set of unaudited interim results, the firm reported pre-tax losses of £1.77m - down from £3.4m the year previously - for the six months ended March 31, 2024. In December, the company revealed its Spanish subsidiary has secured a €804,000 grant. Versarien said at the time that the money would be used by Gnanomat to finance a two-year project relating to a high-tech energy storage devices. Versarien also signed an agreement with infrastructure group Balfour Beatty last year to develop a range of low-carbon, graphene‐infused, 3D‐printable mortars for civil construction.

Plan revealed for £20m industrial research facility in Port Talbot

Plans for a new multi-million-pound industrial research facility in south Wales have been submitted. The proposed facility, named the South Wales Industrial Transition from Carbon Hub, or Switch, would be located in the Harbourside area of Port Talbot if given approval by Neath Port Talbot council, and is a part of the Swansea Bay City deal. It would see the creation of a £20m facility, designed and built by Morgan Sindall Construction, for a purpose-built research centre for de-carbonising the metal and steel industry. The project will be led by Neath Port Talbot council in partnership with Swansea University, with the proposed facility described as being an “open-access centre establishing a collaborative network of expertise across academia, industry and government, aiming to accelerate the region’s transition to net zero”. Once completed, plans say the building will contain a number of facilities such as workshops and welding zones, with mechanical testing zones and laboratory space, as well as offices, reception and breakout spaces for staff. Don't miss the latest news and analysis with our regular Wales newsletters – sign up here for free The plans read: “The new facility is a collaborative innovation centre working with academia, namely Swansea University as a key stakeholder, to help end users from the steel industry to decarbonise the steel industry towards a net zero carbon future. “The core theme of the Switch programme is to assist decarbonisation of the steel and metals industry, to strengthen collaboration between industry and academia and to future-proof the steel and metals industry in Wales and the UK. “The construction will consist of a mix of office space, laboratories, research and production area, storage areas and external works.” The submission, which was received in November, comes just months after the closure of the two blast furnaces at Port Talbot’s Tata steelworks site, which could result in the loss of more than 2,000 jobs. It also comes just weeks after the submission of further plans by Tata Steel for a new £1.25bn electric arc furnace to be built at the site.

Rolls-Royce shares could rocket 50% after stellar two-year rally, analysts claim

Analysts at Bank of America have predicted that shares in engineering behemoth Rolls-Royce could surge by an additional 50% following an already impressive two-year rally. On Friday, analyst Benjamin Heelan raised his price target from 830p to 1,150p, as reported by Bloomberg, which led to a mid-day share price increase of over three per cent, as reported by City AM. This news arrived just one day after the London-listed company reinstated dividend payouts for the first time since the pandemic and announced a £1bn share buyback scheme. The appointment of CEO Tufan Erginbilgic in January 2023 marked the start of a remarkable recovery for a company that was on the brink of bankruptcy during the Covid-19 crisis. A combination of soaring travel demand and escalating military expenditure worldwide has generated significant demand for Rolls' jet engines and defence technology. Heelan noted that the firm had reaped the benefits of robust deliveries, pricing, and an enhancement in the reliability of its engines. Travel demand has remained strong over the past year, with numerous airlines, including British Airways owner IAG, reporting record profits. On Tuesday, Prime Minister Sir Keir Starmer announced the largest increase in defence spending since the Cold War. From April 2027, it is set to rise to 2.5% of GDP, with a goal to reach 3% by the end of the parliament. Rolls-Royce is targeting profits of between £3.6bn and £3.9bn by 2028 and free cash flow of between £4.2bn and £4.5bn. Over the last 12 months, shares have risen by more than 100%.

Rolls-Royce shares skyrocket as iconic company brings back dividends

Rolls-Royce has announced the reinstatement of dividends and launched a £1bn share buyback programme as its full-year profit significantly exceeded expectations. The FTSE 100 engineering behemoth, which has major UK sites in Derby and near Bristol, proposed a 6p per share dividend for investors on Thursday, marking its first payout since the onset of the pandemic, as reported by City AM. A £1bn share buyback scheme will also kick off immediately and run through 2025, according to a market statement. Shares surged over 14% in early trading as investors eagerly jumped aboard. This comes as underlying profit hit £2.5bn, comfortably surpassing a previous forecast of between £2.1bn and £2.3bn. Revenue of £17.8bn also outperformed analysts' consensus of approximately £17.3bn. Following this impressive performance, Rolls-Royce has raised its medium-term targets for profit and free cash flow. Underlying operating profit is now projected to land between £3.6bn and £3.9bn by 2028, while free cash flow is anticipated to range from £4.2bn to £4.5bn. "We are moving with pace and intensity," stated CEO Tufan Erginbilgic, who has spearheaded a remarkable turnaround in his first two years at the helm. He continued: "Based on our 2025 guidance, we now expect to deliver underlying operating profit and free cash flow within the target ranges set at our Capital Markets Day, two years earlier than planned." He concluded: "Significantly improved performance and a stronger balance sheet gives us confidence to reinstate shareholder dividends and announce a £1bn share buyback in 2025." Rolls-Royce's shares have seen a significant uptick since Erginbilgic took the helm in January 2023, driven by a potent mix of soaring travel demand and geopolitical tensions fuelling orders for its jet engines and defence technology. The company's stock price has nearly doubled over the past year and increased almost sixfold over the previous two years. "The group's turnaround has been so impressive that some of its 2027 guidance has been hit two years early, causing the group to upgrade its mid-term guidance," commented Aarin Chiekrie, an equity analyst at Hargreaves Lansdown. "Revenues are being boosted by the upward trend in engine-flying hours, which are now cruising above pre-pandemic levels. But that's just one part of the puzzle."

ID card firm Swype gets ‘future-proofed’ with NPIF II investment

An identity card manufacturer has won a “six-figure” investment that it says will “future-proof” it for years to come. Company Cards Ltd, which trades as Swype, pioneered the digital printing of ID cards in the UK. The St Helens business was the first to beta test a digital printing press for Hewlett Packard 25 years ago – and will use its latest funding to invest in more HP equipment as it looks to continue its “significant sales growth”. Swype has won the funding through NPIF II – FW Capital Debt Finance, managed by FW Capital as part of the Northern Powerhouse Investment Fund II (NPIF II). The investment will be used to buy a new digital press and to expand into green and renewable printing options including PVC-free and even wooden cards. Swype's website showcases recent projects including membership cards for St Helens rugby league club and gift cards for Champneys health spas, with whom Swype has worked since 2012. Tim Scott, managing director and founder of Swype, said: “We operate in a very capital-intensive industry and all the machinery we use is expensive. It’s important that we remain at the cutting edge and this investment enables us to achieve this, enhancing and increasing our productivity, quality and capacity. “The new Hewlett Packard HP Indigo 7900 digital press will future proof the printing side of the business for the next 8-10 years. We’ve swiftly installed the press, modifying the room with no disruption to the day-to-day operations which has meant our clients have been able to take advantage of this seamless transition. We’ve found FW Capital to be very supportive and this investment will also assist our expansion into green and renewables card options with recycled PVC, board cards, wooden cards and PVC-free cards.” Barry Wilson, investment executive at FW Capital said: “With this latest printing press Swype are continuing a relationship they have had with Hewlett Packard for over 25 years. Using NPIF II investment we’ve been able to provide working capital support to help Swype invest in the business, expand their offering and product efficiencies with this new printing press. "It’s also exciting to hear about their plans to expand their eco-friendly card options too which is an area where demand is increasing. We look forward to following Swype’s progress over the coming months and years.”

UK manufacturing sees first quarterly decline in a decade amid global trade tensions

UK manufacturing output has declined for the first time in ten years during the initial quarter of 2025, amid concerns about a global trade war and increased taxation impacting businesses. The sector saw a one per cent drop in the first three months after experiencing a 20 per cent surge in the preceding quarter, with UK orders falling by seven per cent, as per figures from industry body Make UK, as reported by City AM. "Albeit the sector wide contraction is only minor, the negative balance at the start of a year is an ominous one," Make UK commented. The organisation has revised its forecast for the manufacturing sector, predicting a contraction of -0.5 per cent this year, a decrease from the previously estimated -0.2 per cent, but anticipates growth of one per cent in the following year. Basic metals were particularly affected by the downturn this quarter, witnessing a 50 per cent reduction in production, while electrical and metal products experienced a 12 per cent decline. Additionally, recruitment intentions within the sector have weakened, shifting from an eight per cent rise to a three per cent fall, with half of the firms putting a hold on hiring. A significant portion of the employment slump has been linked to policies introduced in the Autumn 2024 Budget, leading 41 per cent of companies to cut back on planned pay hikes and a quarter to consider layoffs. Concerns regarding a potential trade conflict triggered by US President Donald Trump have also unsettled international markets, resulting in export order growth dwindling to a mere one per cent, a steep drop from the ten per cent increase seen in the previous quarter. Verity Davidge, policy director at Make UK, commented: "Manufacturers feel like they are currently wading through treacle, facing barriers and increased costs being imposed on them at every turn. The one light at the end of the tunnel is the prospect of a modern, long term industrial strategy which will enable them to plan for the future with confidence in a supportive policy environment."

Rockwool takes next step towards new Birmingham factory

A manufacturer has moved a step closer to starting work on a huge new facility in north Birmingham. Rockwool has submitted a so-called 'Section 73' application to Birmingham City Council in support of its plans to build a factory on the Peddimore site in Minworth. The company makes stone wool products like building insulation, acoustic ceilings and external cladding for sectors such as construction, marine and offshore. This new Section 73 application is requesting permission to vary some of the details in the current planning permissions at Peddimore to suit Rockwool's specific proposal. If approved, the company then plans to submit a more detailed reserved matters application later in 2025 or early 2026. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Another round of community consultation will take place once more detailed plans and designs have been developed and the plan is to start construction as early as next year and be operational in 2029. This latest application follows the news last year that it had struck a deal to buy 114 acres of land which already has outline consent for manufacturing uses. Rockwool's proposed new factory will feature proprietary electric melting technology and boost supply capacity for UK and Ireland customers while also supporting its global sustainability plans. The Peddimore site at Minworth has been designated specifically for manufacturing and logistics uses and is part of a long-running regeneration and development project. Infrastructure including an access road and roundabout is already in place which serves the new Amazon warehouse which opened in 2023 next to where Rockwool's factory would be. UK and Ireland managing director Nick Wilson said: "Since we announced our intentions to expand the business into the West Midlands, we have had an opportunity to share our plans with the community and are very grateful to those who have provided feedback. "We are taking all feedback into consideration as we develop the plans and have included the community's observations so far in our Section 73 application to the council. "We look forward to meeting with community members again in the coming months." Rockwool's roots date back to 1937 when it first started producing stone wool in Denmark and now employs around 12,500 staff in 38 countries.

UK Government launches new steel council

The UK Government has initiated a new steel council, which includes members from Tata Steel and British Steel, in response to the thousands of job losses experienced in the UK last year. The council is set to guide plans for the industry, supported by an investment of up to £2.5bn. Business Secretary Jonathan Reynolds, who will preside over the council's inaugural meeting today stated that steel communities have "had enough of lurching from crisis to crisis". The chief executives of of Tata Steel and British Steel, along with representatives from the GMB Trade Union and devolved government ministers including Welsh Government Economy Secretary Rebecca Evans ,are among the members expected to meet regularly. Last year, Tata Steel announced its decision to replace traditional blast furnaces with an electric arc furnace at its largest UK site in Port Talbot, Wales. Traditional steelmaking ceased in September, resulting in thousands of workers losing their jobs. British Steel also revealed plans to shut down blast furnaces in Scunthorpe in 2023, and to introduce a less polluting electric arc furnace. These greener plans, which require fewer workers, sparked concerns over potential thousands of job losses. The Labour UK Government has pledged to spend £2.5 billion "to rebuild the steel industry". This funding would be supplemented by a separate £500m package for Tata Steel to partially fund the new steel production at Port Talbot, where a £1.2bn electric arc furnace, which will make steel from scrap, is scheduled to open in 2027. The steel council, jointly led by the chair of Teesside's Materials Processing Institute, is gearing up for the spring release of the Government's steel strategy. This pivotal document is anticipated to outline means of bolstering UK steel production capacity and align investment choices with demands to fuel economic expansion. One critical topic on the council’s agenda will be how best to utilise the available funding, which may reach £2.5bn. “The industry and steel communities have had enough of lurching from crisis to crisis – this Government will take the action needed to place steel on a secure footing for the long term," asserted Mr Reynolds. "With the launch of the Steel Council we're placing workers and local communities at the heart of our plans as we bring forward £2.5bn of investment to secure growth right across the country. ” Gareth Stace, director general of trade group UK Steel, commented: "The establishment of the Steel Council marks a defining moment for the future of steelmaking in Britain." He added: "The council represents a crucial step towards creating a comprehensive Government steel strategy – one that lays the foundations for a sustainable and resilient industry." Roy Rickhuss general secretary of steelworkers' union Community, said: "Community is pleased to sit on the new Steel Council, which holds its first meeting today. After fourteen years of neglect under the Conservatives, we now have a Labour government which understands the importance of implementing a robust industrial strategy with steel at its heart. "We look forward to working with government and other stakeholders on the Steel Council to maximise the benefits of the game-changing £2.5 billion minsters have earmarked for revitalising our steel industry and providing the secure future our steelworker members across the UK deserve."

Hundreds of cereal factory jobs at risk as as Cereal Partners UK and Ireland proposes Wirral closure

Over 300 jobs are under threat at a Merseyside cereal factory, as Cereal Partners UK and Ireland has announced the plant might close. Cereal Partners, the producer of Nestlé cereals including Cheerios, Shreddies, and Nesquik, is consulting over the future of its Bromborough facility in the Wirral. The company has proposed shifting investment from the plant, which makes both branded and supermarket branded cereals to its Staverton factory in Wiltshire. The workforce at the Wirral site was informed yesterday about the potential shutdown, which would put 314 positions at risk if implemented. A spokesperson for Cereal Partners stated: "Cereal Partners United Kingdom and Ireland (CPUKandI) is talking to employees about proposed changes to manufacturing that would involve a £74m investment at its Staverton factory and the closure of its factory in Bromborough. Regrettably, these proposals would put 314 roles at risk of redundancy. "The Bromborough factory currently manufactures both branded and supermarket branded cereals. Under the proposals, production of branded cereals at Bromborough would be transferred to CPUKandI's Staverton site where £74m would be invested to expand the factory's capability and around 60 new roles created." The company has indicated it may cease producing supermarket branded cereals and exit that segment of the market upon the conclusion of its current contractual obligations, reports the Liverpool Echo. Explaining its reasoning, the firm highlighted: "Both CPUKandI factories are currently below capacity. These proposals would adjust CPUKandI's manufacturing footprint to better match demand and simplify our portfolio to focus investment on our branded cereals. Sales of breakfast cereal are in significant decline owing to the changing habits of UK and Irish consumers and greater competition from alternative breakfast options. "CPUKandI regrets the potential impact on employees and the immediate priority is to work together to review the proposals while supporting people through this process with care and sensitivity." The firm stated it remains open to other options, such as selling the Bromborough manufacturing facility or the supermarket-branded cereal production business itself. The spokesperson said: "It is important that discussions with employees and their representatives are carried out in a private and respectful way and our people are the first to hear of any future developments. There will be no further communication on these proposals until those discussions are complete." Concerns have been raised by a number of Bromborough factory employees, who have reached out to the ECHO. Matt Denton, GMB regional organiser, said: "This is a deeply worrying time for GMB members and their families. For three decades, CPUK has been at the heart of this community, providing good jobs and supporting countless businesses. "Three hundred skilled workers facing an uncertain future is simply unacceptable. GMB will fight to protect jobs, secure fair treatment for workers and explore all potential options to mitigate the impact of this closure. "We demand urgent talks with management and call on the company to engage with us to make sure workers' voices are heard, and livelihoods are prioritised."

Heinz beans factory and Stanlow refinery win Government green backing as North West continues Net Zero push

Heinz’s massive baked bean plant in Wigan and the giant Stanlow oil refinery in Cheshire have both won Government backing to help them go green. Industry minister Sarah Jones says the latest round of Industrial Energy Transformation Fund (IETF) cash is aimed at “helping some of Britain’s favourite businesses to cut their carbon emissions” – and the scheme is now backing several North West businesses. Kraft Heinz secured £2.5m from the fund towards a £7.2m heat pump project at its Kitt Green plant, which is one of Europe’s biggest food factories. Under the project, it will change the way it heats the water it uses to blanch beans and to cook spaghetti hoops. Instead of burning fossil fuels, it will install heat pumps to reuse heat generated in other parts of the site. Saji Jacob, head of west Europe supply chain at Heinz, said: “The Industrial Energy Transformation Fund has enabled this energy efficiency project to become a reality at our largest food manufacturing plant in Europe. “It represents a critical step in our decarbonisation journey towards Net Zero. The UK business recognises the significance of the investment and is committed to further utilising this technology across our company.” This new plan follows news last year that Heinz wanted to build a £40m green-powered hydrogen plant to generate more than half of the gas it uses at the Wigan site. In total, the Government is supporting 25 emissions-cutting projects across England, Wales and Northern Ireland with £51.9m in funding through its Plan for Change to drive economic growth. Four projects around the giant Stanlow energy cluster in Cheshire secured funding through the IETF. Essar Oil UK, which runs the Stanlow refinery, secured £1.8m towards a £7.4m carbon capture study as well as £427,000 towards a £1.7m project to switch to low-carbon hydrogen. Neighbouring glassmaker Encirc secured £2.5m towards its £4.4m plan to deploy a hydrogen fuel system for glass furnaces. Encirc also secured £1.2m towards a £2.4m study on the feasibility of hydrogen-hybrid furnace upgrade at Elton. Last October, the Prime Minister and Chancellor visited Encirc glass plant in to announce £22bn in support for two carbon capture and storage (CCS) schemes, including Hynet, which stretches across the North West and North Wales. Encirc's managing director Sean Murphy said: “As a business with sustainability at its core, Encirc has been a longtime innovator in finding ways to reduce our carbon footprint, both on the manufacturing process as well as in logistics and supply chain. The regional focus is a sign of confidence for businesses here in the north west, and we hope further afield." He added: "We look forward to working with UK Government on a range of issues to ensure that the right conditions are in place to enable the sort of inclusive green growth that benefits everyone across society.” Warrington-based recycler Novelis has secured £14m towards the £63m expansion of its Latchford Locks site. The plans, first announced last year, will double the plant’s capacity for recycling used beverage cans. Novelis says it will help it to reduce the plant’s carbon emissions by more than 350,000 tonnes. Announcing the project last July, Allan Sweeney, plant manager of Novelis Latchford, said: “Thanks to technological developments, we will be able to recycle all types of UBC scrap, fostering low-carbon and high-recycled content products that support not only our own ambitious sustainability goals, but those of our customers as well.” Taylor's Farm Shop, of Ormskirk, West Lancashire, secured £988,000 towards a £1.4m combined heat and power (CHP) project. Minister for Industry Sarah Jones said: “This Government’s Plan for Change is about delivering what working people want to see in this country. In energy, that means replacing the UK’s dependency on insecure fossil fuel markets with the clean homegrown power we need to protect consumers and grow our economy. “That’s why we’ve already kickstarted a national carbon capture industry, secured a record amount of new renewable energy projects and published a plan for clean power by 2030 – genuine climate action which will create growth and jobs at the same time. “Now, we’re helping some of Britain’s favourite businesses to cut their carbon emissions too, while continuing to make the products we love – from baked beans to beer and coffee – with more than £50m in government grants. “Eight of these projects are in the North West – from Novelis aluminium facility in Warrington, to Encirc glass manufacturing in Cheshire – helping to decarbonise and create jobs around Manchester. “And thanks to our support, Heinz’s factory in Wigan – the largest in Europe – is installing heat pumps so they can reuse their own waste heat to blanch beans and boil spaghetti hoops." The minister added: “Low carbon technologies help firms save on their energy bills and production costs, meaning consumers could benefit from lower prices. “So, instead of choosing between sustainability and economic growth, we're putting businesses at the heart of our mission to become a clean energy superpower and providing the reliable and affordable energy this country needs to thrive.”

Rolls-Royce shares tumble after broker slaps 'neutral' rating on them

Shares in Rolls-Royce dipped over three per cent in early trading today following a downgrade by analysts at investment bank Citi. The FTSE 100 giant's stock was downgraded from a 'Buy' to a 'Neutral' rating, despite an increase in the price target from 555p to 641p. Currently sitting at 576p, the analysts stated that the expected upside was not sufficient to maintain a Buy rating. Despite a strong recovery since the pandemic, they noted that the stock is nearing what they consider to be its fair value, as reported by City AM. In 2024, Rolls-Royce was the second-best-performing stock on the FTSE 100, with shares in the engineering giant returning more than 90 per cent for the year. Over the past two years, the shares have soared by over 500 per cent and despite this morning's dip, they are still up more than 85 per cent over the past 12 months. The Derby-based giant has benefited from a recovery in the aviation sector and growing interest in nuclear power, while retail investor interest has driven its price upwards. Despite Citi's downgrade, most analysts still rate Rolls-Royce as a 'Buy', with 10 holding an overweight rating compared to just one sell, according to data from the Wall Street Journal. However, some analysts agree with Citi that the firm's high price is approaching a fair value price. "We believe that Rolls-Royce needs to further progress on its transformation programme before it can be valued on metrics comparable to General Electric," Deutsche Bank analysts stated in their most recent broker note on the company. Meanwhile, Panmure Liberum noted in November that while the stock had exceeded its price target of 400p, "that is not surprising as the treating process is not linear and, in this case,it is the three-year target which matters." The broker's three-year price target for the stock stands at 665p. Russ Mould, investment director at AJ Bell, commented: "Stock market darling Rolls-Royce saw its engines splutter after Citi downgraded its rating on the stock to ‘Neutral’ from ‘Buy’ on valuation grounds. Even though Citi raised its price target for the stock, investors appear to have taken the rating downgrade as a signal to lock in some profit." "Rolls-Royce has been a runaway success for investors in recent years as its recovery story gained traction. The turnaround opportunity is now looking like old news and investors increasingly want to hear about the next phase of the company’s growth, not simply what it is doing to get back on track as that looks to have already happened." This downgrade followed the news that an Airbus A330 engine caught fire shortly after takeoff from Atlanta en route to Brazil on the first day of the new year. Upon departing from Atlanta airport and reaching an altitude of 4,725 feet, the crew aboard the Delta aircraft reported a fire in one of its Rolls-Royce Trent 7000 Engines, attributed to a mechanical issue. The plane made an emergency return to the airport, resulting in a "heavy landing".

Bentley issues warning over China demand as profits and revenue fall

Bentley Motors has announced a decrease in profit and revenue, with its CEO attributing the decline to reduced demand in China. The luxury car manufacturer, a subsidiary of Volkswagen, reported an annual operating profit of €373m (£314m) and revenue of €2.6bn (£2.2bn), as reported by City AM. Although this profit is the sixth highest in Bentley's history, it represents a drop of over a third from the €589m recorded last year. CEO Dr Frank-Steffen Walliser informed journalists that the downturn was due to diminished demand in China, where high-end brands have been hit by lower consumer confidence. Customisation continued to bolster earnings, with unprecedented demand for bespoke models resulting in Bentley's highest-ever revenue per car, up 10 per cent year-on-year. "Despite global challenges in 2024 and the run out and replacement of three of our four model lines, financial resilience measures introduced towards the end of the last decade ensured a sixth year of consistent profitability," Walliser stated. "Looking forward to 2025, of course we continue to navigate difficult global market conditions and maintained volatile political and economic environments, however our strength of sales is strong." Bentley is in the initial stages of transitioning to an electric fleet and aims to persuade investors that there is consumer demand for a non-traditional version of its luxury models. The company plans to launch its first BEV in 2027.

Spirax Group reports fall in full-year profits amid restructure

Cheltenham-headquartered engineering firm Spirax Group has reported a fall in profits for the financial year. The FTSE-100 company posted a 1% fall in reported revenue to £1.6bn for the 12 months to December 31, 2024. Adjusted profit before tax fell to £288.2m from £309.2m the year previously. The company said global industrial production growth for the full year was lower than had been forecast and second half recovery did not materialise with industrial production falling in key markets such as the US, Germany, France, Italy and the UK, representing around 50% of group sales. However, Sprirax added that all three of its business divisions delivered organic sales growth during the year with adjusted operating profit margins in line with expectations. According to the group, its restructuring strategy will realise annual savings of around £35m to fund investment in future organic growth. The cash costs to deliver the programme will be mostly incurred in 2025, Spirax said, and are expected to be around £35m, with an additional non-cash cost of £5m. The board declared a final dividend of 117.5p per ordinary share - up from 114p in 2023 - bringing the total dividend for the year to 165p. “The global macroeconomic environment remains highly uncertain,” the company said in a statement on Tuesday (March 11). “We remain cautious on industrial production in 2025 and have adopted more conservative assumptions in our planning. “We expect trading conditions in China to remain challenging as customers continue to reduce investments in the expansion of manufacturing capacity.” Looking to 2025, Spirax said it expected organic growth in group revenues consistent with that achieved in 2024 and “modestly higher” growth in the second half. It added that corporate costs for the year would be around £40m, reflecting higher levels of investment in growth. Nimesh Patel, group chief executive, said: "All three of our businesses delivered organic sales growth with margins in line with our expectations, despite weaker than expected industrial production in the second half. I am particularly pleased with progress in electric thermal solutions, where improvements to manufacturing throughput supported higher sales and improved margin." Mr Patel said the company was “well underway” with actions to simplify the organisation and better leverage resources to support future growth. He added: "Mindful of the outlook for industrial production, I remain confident in the execution of our strategy and in the strength of our business model.”

Tekmar Group set for 'growth like never before' after posting strong earnings boost

Bosses at offshore specialist Tekmar say its markets are aligned “for growth like never before” after seeing its earnings rise to the highest level in five years. Based in Newton Aycliffe, Tekmar Group offers technology, services and products to customers around the world, with offices, manufacturing facilities, strategic supply partnerships and representation in 18 locations across Europe, Africa, the Middle East, Asia Pacific and North America. Last December, newly appointed CEO Richard Turner announced a three-year plan to transform Tekmar and realise its potential, after seeing headwinds which have impacted offshore renewables and the conventional energy markets subsiding. Now the firm has issued full year result for the year ended September 2024, highlighting a year of stabilisation. Revenues were £32.8m, down on the previous year’s £35.6m, but adjusted Ebitda (earnings before interest, taxes, depreciation, and amortisation) was £1.7m, up from £600,000. Its operating loss was reduced from £7.9m to £3.8m in the year, a figure it said reflected the successful execution of the group’s profit improvement plan, having worked through a remaining low margin backlog. The group held £4.6m of cash at the year end, with net debt of £1.6m - a figure which excludes the SCF Capital Partners £18m finance facility which its said remains undrawn and is available to drive growth through acquisitions. During the year, the group completed the divestment of its subsidiary, Subsea Innovation Limited for £1.9m, in line with its strategy to drive profitable growth. At the end of January it said its order book stood at £16.4m. In its Stock Market notes to shareholders, Tekmar said: “The board is encouraged that the market environment is improving and supports sustained demand for Tekmar’s technology and engineering services across our markets. Moreover, we believe Tekmar’s differentiated technology positions the group to outperform this improving market. This is supported by the group’s developing sales pipeline, which the board expects will convert to orders and revenue over time.” Richard Turner, CEO, said: “Overall, these results demonstrate we now have a stronger platform from which we can execute our medium-term plan to deliver true scale and diversification. FY24 was a transitionary year for Tekmar, where we focused on the basics - providing high-quality engineering, delivering on time and maintaining consistent commercial discipline. “This supported the group reporting its highest level of adjusted EBITDA since FY20, and a material improvement in gross margin to 32%. Looking ahead, our markets are aligned for growth like never before. Our strategy looks to capitalise on our industry pedigree to drive organic growth across all revenue streams, leverage our operational gearing to enhance our returns on sales, drive value through strategic M&A and generate cash to build our reserves and fuel our growth.”

Aston Martin announces job cuts of 170 staff as part of cost-saving measures

Luxury vehicle manufacturer Aston Martin has announced plans to slash 170 jobs as part of a cost-cutting strategy aimed at reviving its faltering share price. The proposed cuts represent five per cent of the company's global workforce and are expected to yield savings of around £25m, as reported by City AM. The announcement comes on the heels of Aston Martin, which has its HQ in Gaydon and a factory at St Athan in South Wales, reporting an expanded full-year loss of £289.1m and a three per cent dip in revenue, which totalled £1.58bn. In recent times, the brand has been wrestling with a series of supply chain and production challenges that have contributed to a mounting debt burden. Debts surged by 43 per cent to £1.16bn in 2024, while shares plummeted by approximately a third. Free cash outflows also increased by nine per cent during the same period, reaching £392m. "After a period of intense product launches, coupled with industry-wide and company challenges, our focus now shifts to operational execution and delivering financial sustainability," declared the firm's newly appointed CEO, Adrian Hallmark. He continued: "I see great potential in Aston Martin, and our goal is to transition from a high-potential business to a high-performing one, better equipped to navigate future opportunities and uncertainties. He added: " Hallmark concluded by saying: "We have all the vital ingredients for success, with the support of strategic shareholders, the capability of world-class technical partners, a revitalised brand, talented people, and the strongest product portfolio in our 112-year history." However, Aarin Chiekrie, equity analyst at Hargreaves Lansdown, has highlighted some concerns stating: "The group had to go cap in hand to investors twice last year, seeking additional funds to help keep the wheels turning." He warned that the possibility of a further cash call isn't off the table as he pointed out, "A further request for funds can't be ruled out given cash flows remain in negative territory." Chiekrie also mentioned that though reducing staff numbers is a step taken, it's only "part of the puzzle, as costs can only be cut so far."

Promotional products firm 4imprint reports 10% rise in profit

4imprint, the promotional products manufacturer, has announced a 10% increase in profit for 2024, outperforming the wider market and growing its market share. The company revealed to markets this morning that revenue climbed by three per cent year on year to £1.36bn, up from £1.32bn the previous year, as reported by City AM. The London-based firm reported receiving 2.12m orders in 2024, an increase from 2.09m in 2023, with the "increase in existing customer orders offsetting a decline in new customer acquisition, impacted by uncertain economic conditions." Despite a more cautious macroeconomic climate that began in the second half of 2023 and continued throughout 2024, the business continued to attract and retain high-quality customers during the year," it stated. While 4imprint's Chair, Paul Moody, acknowledged a "challenging near-term environment", he maintained that business prospects remained unchanged. "In the first two months of 2025, revenue at the order intake level was slightly down compared to the same period in 2024, reflecting continued uncertainty in the market." Despite a more cautious macroeconomic environment that began in the second half of 2023 and continued through 2024, the business continued to acquire and retain high-quality customers in the year. "It is possible that market conditions, including potential tariff impacts, may continue to influence demand in 2025. From our experience, however, as business sentiment improves, demand for promotional products increases as does our ability to gain market share," added Moody. Cavendish analyst Guy Hewett characterised the results as "another year of strong financial performance despite a challenging market backdrop". However, Hewett noted that the low order intake thus far in 2025 has led Cavendish to reduce its revenue forecast, earnings per share forecast and target share price. "We have no doubt that the group will once again accelerate market share gains and profit growth when markets recover. Investors buying now will lock in exposure to those gains," he added.

Pearson Engineering works on robot mine sweeper being trialled by British Army

North East defence specialist Pearson Engineering has helped to develop a robot mine sweeper which is now being trialled by the British Army to clear explosives on the front lines. The Newcastle company, based in the famous Armstrong Works, has worked with the Defence Science and Technology Laboratory (Dstl) to create Weevil, a device which is hoped will replace current mine-clearing methods that included Trojan armoured vehicles, which require a three-person team to operate in hazardous areas. The robot mine sweeper is said to be able to clear minefields quicker and safer than present capabilities, reducing risk to soldiers on the front line and it can be operated via remote control by just one person from several miles away. The prototype – which is fitted with a mine plough to clear a safe path – has been successfully tested on a surrogate minefield in Newcastle, and the technology is now being passed to the British Army for further development and more trials. Ian Bell, CEO at Pearson Engineering, said: “We are proud to contribute to such game-changing capability. It brings together decades of development by Pearson Engineering, delivering the very best of minefield breaching technology proven around the world, and contemporary developments in teleoperation. “Work with UK MOD is an incredibly important part of our business, ensuring our troops get the latest in combat engineering capability and that we can effectively defend our nation and allies.” Luke Pollard, minister for the armed forces, said: “It won’t be a moment too soon when we no longer have to send our people directly into harm’s way to clear minefields. “This kit could tackle the deadly threat of mines in the most challenging environments, while being remotely operated by our soldiers several miles away. “It demonstrates British innovation, by British organisations, to protect British troops.” The robot was developed by the Defence Science and Technology Laboratory (DSTL) and Newcastle-based firm Pearson Engineering. The Ministry of Defence said there are no current plans to provide it to Ukraine. DSTL military adviser Major Andrew Maggs said: “Weevil is the perfect combination of tried and tested technology and modern advancements.

Rolls-Royce shares surge as Derby-based FTSE 100 firm recovers after Trump tariff scare

Shares in FTSE 100 heavyweight Rolls-Royce are on the rise, having now regained more than half of their value lost following President Donald Trump's tariff declarations. The Derby-based group's shares are currently trading at approximately 734p, marking an increase of over 10 per cent since the start of today's trading, as reported by City AM. This is a significant recovery from Monday's recent low of 635p. Prior to Trump's tariff announcement last week, Rolls-Royce shares had been trading at a record high of 812p in mid-March. The partial recovery coincides with a surge in the FTSE 100 – as markets opened this morning following President Donald Trump's tariff backtrack on Wednesday. London's blue-chip index saw gains of over six per cent – a rise of nearly 500 points. This followed the FTSE closing down three per cent yesterday, before Trump sent global markets skyrocketing with a 90-day halt on his 'Liberation Day' levies. Wall Street also made a comeback on Wednesday following the news. The S&P 500 rallied 9.5 per cent and the Dow Jones 7.9 per cent. The Nasdaq soared over 12 per cent as major tech giants reversed losses. Apple was up 15 per cent and Tesla 22 per cent. In other news, at the end of February, Rolls-Royce proposed a 6p per share dividend for investors, marking its first payout since before the pandemic. This came as underlying profit reached £2.5bn, significantly ahead of a previous forecast of between £2.1bn and £2.3bn. Revenue of £17.8bn also surpassed analysts' consensus of around £17.3bn.

Major manufacturer TT Electronics warns US tariffs 'could cast doubt' on trading ability

An electronics manufacturer has warned that US tariffs could impact its ability to keep operating. TTE Electronics has bases in Asia, North America and five sites around the UK alongside its Woking headquarters, including a facility in Bedlington specialising in R&D and semiconductors. New results show strong performance in Europe and the UK was offset by slumping demand in the US. Overall, it chalked up £521.1m in revenues, down from £613.9m. The previous year’s operating profit of £3m was converted to a loss of £23.5m. The Stock Exchange-listed business, which engineers and manufactures products to support sectors from healthcare to aerospace, posted a pre-tax loss of £33.4m for 2024, and said the import taxes and retaliatory measures had led to an “uncertain and volatile” backdrop. In the UK, the firm has nine bases including sites in Abercynon, Bedlington, Fairford, Eastleigh, Nottingham, Sheffield, Manchester, and Barnstaple, having divested its sites in Hartlepool and Cardiff during the year. Its Bedlington base, founded in 1937, has 414 employees helping to produce microelectronics and resistors used by global manufacturers in the aerospace and defence markets. It has previously warned of difficulty in its US branch, with falling demand for the components it produces and ongoing production issues at its factories, which have led to it booking a £52.2m write-down. The first half of the year also saw 500 redundancies in its North America operations, which it expects to result in £12m of annual cost savings. Bosses warned that the recent US global tariffs, leading to retaliatory charges from some countries including China, had led to an “uncertain and volatile macroeconomic backdrop which could have an impact beyond that assumed in the severe downside case”. That means conditions could worsen beyond its worst-case scenario, particularly if US customers cut back on orders, which could impact its ability to keep operating and being profitable in the year ahead. It said: “The board is mindful of the increased market uncertainty arising from the recently announced trade tariffs and the potential impact on demand patterns. The recent introduction of US global tariffs and certain retaliatory tariffs provide an uncertain and volatile macroeconomic backdrop which could have an impact beyond that assumed in the severe downside case. "This has led the board to conclude that it is not possible to be certain of meeting the covenant test in certain extreme scenarios, in particular where customer reticence in placing orders against the backdrop of tariff uncertainty reduces order intake. These matters represent a material uncertainty which may cast doubt upon the group’s ability and the company’s ability to continue as a going concern for the period up to 30 June 2026.” It also now expects to report adjusted operating profit of between £32m and £40m for the year ahead, down from the £40m to £46m previously forecast. TT Electronics also announced its chief executive Peter France was stepping down “with immediate effect” and has been replaced by finance chief Eric Lakin on an interim basis. It also announced it is “assessing all options” for its struggling components division. Despite the warning, it said contract awards and growth drivers within the UK and Europe are “giving us confidence as we look forward”, with highlights including a two-year contract secured by the Bedlington team from a medical device innovator for the production of high voltage chip resistors.

North East chip maker Pragmatic backs calls for Government to accelerate semiconductor sector

A North East maker of high tech semiconductors has backed calls for the Government to go further and faster with a national chips strategy. Pragmatic Semiconductor, which has bases in NETPark in Sedgefield and in Cambridge, has supported trade association techUK in its suggestion the National Semiconductor Strategy should be accelerated with measures such as an open access factory and helping to support more large scale private investment. The body's list of 27 recommendations in its updated 'UK Plan for Chips' follows on two years from the launch of the Government's strategy which hopes to put the UK in a world leading position on areas of semiconductor development. Bosses at Pragmatic, which is behind the multimillion-pound creation of new semiconductor production lines in County Durham, says chip manufacturing has significant potential to boost the economy but that investment in rival countries means the UK must "urgently" ramp up financial support for the sector. TechUK points to Pragmatic's opening of its new North East factory as one of 23 commercially successful fabrication facilities in the country. But it says that in contrast to the UK, other countries have provided manufacturing incentives to build factories - notably in the US, EU, Japan, South Korea and China. Authors of the report say the UK must capitalise on strengths in design and intellectual property, research and development and compound semiconductors. To do so they call for financial support, promoting investment and forging international partnerships in the supply chain - saying progress since the national strategy's launch has only been incremental and that decisive action is now needed. Laura Foster, associate director for Technology and Innovation, techUK said: "The UK has a unique opportunity to lead in the global semiconductor landscape, but success will require bold action and sustained commitment. By accelerating the implementation of the National Semiconductor Strategy, recognising its role as a key strategic technology and underpinning its importance within the Industrial Strategy, we can unlock investment, foster innovation, and strengthen our position in this critical industry. "We must act at pace to secure the UK’s semiconductor future and as such our technological and economic resilience." Richard Price, chief technology officer at Pragmatic Semiconductor, said: "techUK rightly emphasises the urgent need to accelerate the UK’s National Semiconductor Strategy. Semiconductors are the backbone of modern technology, and securing the UK’s role in this fast-growing industry is vital for economic growth, innovation, and resilience. "Core value creation lies in semiconductor manufacturing, which has significant potential to boost the UK’s economy. Europe and the US are already investing heavily; competitive incentives in areas such as capital investment are urgently needed to level the playing field.

Manufacturer Ebac defaults on loan as challenges continue, new accounts show

Challenging times at North East manufacturer Ebac have continued with the firm defaulting on a loan from a retirement fund, new accounts show. The Durham business, which makes washing machines, dehumidifiers, water coolers and heat pumps, has published delayed accounts for 2023 which show the continuation of a “challenging” few years. Recent years have seen Ebac investing heavily on new products, including domestic heat pumps suitable for the average UK home, and while the firm’s work on these products is beginning to bear fruit it has impacted profits, as well as its workforce, which was reduced from 254 to 188 as part of efforts to reduce its costs and boost performance. Accounts for 2023 show turnover of £17.75m down 18% on previous year’s £21.7m, although its operating losses narrowed from £2.7m to £1.53m. The accounts showed administrative expenses were significantly reduced from £8.2m to £5.95m, reflecting its restructuring initiatives. During the year the firm defaulted on a loan to the Trustees of Ebac Limited Retirement Benefit, a pension fund for founder John Elliott and family members, when it couldn’t make repayment on a loan of £1.57m. It said the company is in discussion with the trustees of the scheme to roll over and extend the loan repayment “however no agreement has been reached in relation to the proposal but the trustees have not indicated they will seek repayment of the loan before the end of the term of the loan”. Within the accounts, founder John Elliott said the firm continued with its work on new product development, although the investments weakened its bottom line. He said: “Despite a challenging market environment, the accounts for the year ending 2023 demonstrate an improvement in our financial performance compared to 2022. Although turnover is down our losses have reduced. This decrease was primarily attributable to necessary strategic changes. “During 2023, we continued with product developments that are looking very positive. Our British-designed heat pumps and home ventilation and dehumidification systems have USP’s that are receiving strong interest from landlords, social housing organisations and national builders. These products also have synergy with our technology and market know how. “While these products have not yet translated into revenue growth, we strongly believe they will deliver significant profits and will make Ebac a leader in energy-efficient and sustainable home solutions. We have spent more than £3m on these projects which has meant high borrowings and weakened our balance sheet. “We are currently going through a re-financing process where the directors and some of the related party liabilities are going to be capitalised to stabilise and strengthen the balance sheet.” Following publication of the 2023 accounts a spokesperson warned that results for 2024 will show a worsening if its financial position, but said that the family firm had put in millions of its own money to transform the company - a move which it said was already working in the new financial year. The spokesperson for Ebac said: “Despite a challenging market, the accounts for the year ending 2023 demonstrate an improvement in our financial position compared to 2022. We expect our 2024 year to be our worst in terms of losses, due to huge investments in new products including a new line of heat pumps and loft ventilation systems.

Cheshire's Packaging One doubles workforce having secured seven figure funding deal

Jobs have been created by family-run Packaging One following a seven-figure funding deal from NatWest and Royal Bank of Scotland. The provider of protective wrappings and boxes, among other products, intends to double its workforce to 80 people following the funding injection. Expansion into the firm's 44,000 sqft premises in Middlewich has given Packaging One increased manufacturing capabilities by about 70% amid a recently secured contract with an unnamed customer described as a 'global tech giant' for its patented MediaWrap product which is used for protecting trade-in and recycled mobile devices. Packaging One was set up in 2008 and is run by husband-and-wife team Ian and Emma Chesworth, who have more than 30 years' experience in the industry. The business' operations span the UK, Europe and USA Mr Chesworth, director of Packaging One, said: “The expansion is a huge step in our growth and development. Not only is it good for our business but we are proud to be able to contribute to our community by creating new jobs and employing local people.” Fellow director Mrs Chesworth added: "We have been working with the NatWest team for almost two decades. Over that time, they have partnered with us to support our business and helped us reach key milestones around our growth and expansion." Claire Morley, senior relationship manager at NatWest, said: “We are thrilled to support Ian, Emma and the Packaging One family as they begin a new chapter in their business development. As the UK’s biggest bank for small businesses, we work collaboratively with customers to understand their needs and help them find solutions to support their businesses as they grow.

Eyewear firm monitoring Donald Trump's tariffs 'closely' as revenues fall

West Country-headquartered eyewear firm Inspecs says Donald Trump's tariffs are not expected to impact consumer demand and it is monitoring the situation "closely". The Bath-based company said its non-US-based businesses were not currently affected by the recent changes announced by the US President and that selective pass-through of cost increases would "largely mitigate" the situation. It also said it was focused on delivering operational efficiencies. Inspecs designs and manufacturers eyewear, frames and lenses, with many produced in countries such as China, which have been slapped with high tariffs by President Trump. The company only opened a new factory in Vietnam last year. "Notwithstanding the recently announced tariffs and caution in relation to market conditions, compelling new projects in the pipeline give us confidence in delivering on market expectations for 2025," said chief executive Richard Peck. In a set of unaudited preliminary results for the year ended December 31, 2024, Inspecs reported a group revenue decrease of 2% to £198.3m. Total operating expenses were reduced by 0.3% despite inflationary pressures, the firm said on Thursday, while underlying EBITDA - a measure of performance - reduced by 2.2% to £17.6m. Inspecs said it expected a "significant drop" in net finance costs in 2025 amounting to around £700,000 and that trading was in line with market expectations. "Inspecs demonstrated resilience in 2024 despite challenging macroeconomic conditions," said Mr Peck. "However, our continued focus throughout the year on the integration and simplification of our business has been significant. "We successfully got our new factory in Vietnam up and running, which has significantly improved our capacity. We also strengthened our brand portfolio by introducing several new brands and expanding our existing ones, all the while working on our supply chain and efficiencies. "Additionally, we have focused on growing our customer base in key markets. These strategic initiatives allowed us to improve our margins, maintain our administrative costs in an inflationary environment, and reduce our net debt, setting us up well for the future." Mr Peck said the first quarter of 2025 had "laid the groundwork" for a "pivotal" year for the company. He added: "As we move forward, the focus remains on sharpening efficiency, streamlining operations, and advancing key initiatives."

Defence stocks plunge in panic selling as Trump tariffs spark global panic

President Trump's comprehensive global tariff package has triggered a steep drop in defence sector stocks, as markets grapple with the repercussions of his decision to slap a 10 per cent tax on British exports, among other actions. This move has sparked worries about increased costs and the potential for a scarcity mentality that could push up prices for essential materials in defence manufacturing, as reported by City AM. "There is just a general sense of panic", stated Daniel Murray, CEO of EFG Asset Management. He further noted that as the market responds to these trade tensions, "everything is getting killed, even good companies that will likely fare relatively well." Shares in major UK and European defence companies took a severe hit on Monday, with significant losses seen by BAE Systems, Chemring Group, Qinetiq and Babcock International. Babcock International's shares plummeted nearly eight per cent, closely trailed by Chemring Group, which dropped by 7.16 per cent. Babcock declined to comment on the situation. Meanwhile, British defence powerhouses BAE Systems and Qinetiq saw their shares dip four per cent and 6.41 per cent respectively. However, a spokesperson for BAE Systems told CityAM: "We have very limited imports into the US and as such we aren't materially impacted by the evolution of US tariff policy in the same way that some other companies are." Companies across Europe, including Germany's Rheinmetall and Hensoldt, experienced significant declines of up to 14%, reflecting a broader trend of investor uncertainty triggered by Trump's tariff announcement. Kevan Craven, chief executive of ADS Group, which represents UK aerospace, defence, security, and space companies, expressed concerns about the impact of the tariffs. Despite this, he remained optimistic, stating: "While the tariff announcement is disappointing, it will not kill our sectors. "However, our members forecast additional costs in the tens of millions of pounds, particularly in the aluminium and steel markets", he added. Craven warned that the tariffs could lead to increased costs due to businesses' instinct to stockpile, creating a scarcity mindset that could have long-term consequences. The tariffs, announced as part of Trump's 'Liberation Day' measures on Wednesday, are seen as an effort to address the US trade deficit with multiple countries, including the UK. The UK government has launched a request for input on potential retaliatory actions in response to these tariffs, with a deadline of 1st May for businesses to share their concerns. Earlier this year, shares of European defence companies were among the strongest performers, driven by expectations of increased government spending on regional security. Following the announcement of tariffs, the defence sector has seen one of its most significant declines in recent history – marking its largest single-day drop since the COVID-19 pandemic. The Stoxx Europe 600 index plunged by 6.3 per cent, with the defence sub-index dropping by 9.3 per cent early on Monday. Amid fears of a growing global trade war, markets have responded nervously. The wider European stock market also suffered substantial losses, with Germany's DAX falling ten per cent at the start of trading, while countries such as France and Italy also experienced corrections. The global tariffs come after Chancellor Rachel Reeves' recent Spring Statement, where she underscored the UK government's commitment to enhancing the UK's defence capabilities in light of increasing security threats. Reeves detailed plans to increase the defence budget to 2.5 per cent of GDP.

Rolls-Royce CEO's pay slashed by almost £10m despite huge rise in FTSE 100 shares

Tufan Erginbilgic, the CEO of Rolls-Royce, has experienced a significant reduction in his pay by nearly £10m, despite his successful turnaround of the FTSE 100 heavyweight. The Derby-based company's latest financial year saw Erginbilgic pocketing £4.1m, a stark contrast to the £13.6m he earned in the previous 12 months, as reported by City AM. His earlier remuneration was inflated by a £7.5m compensation for earnings lost from a former job. Another factor contributing to the drop was the decrease in Erginbilgic's annual incentive plan earnings, which fell from £4.6m to £2.5m. Rolls-Royce has now introduced a changed separate bonus and long-term incentive plan scheme for its CEO, with the first LTIP not due to vest until the end of 2026. In 2023, his hefty pay package placed him as the third highest earning FTSE 100 CEO, trailing only Astrazeneca's Pascal Soriot and Relx's Erix Engstrom. However, Erginbilgic's base salary did see an increase, rising from £875,000 to £1.1m over the year, with a further five per cent hike planned for 2025. A Rolls-Royce spokesperson said: “We delivered record results in 2024 thanks to our ongoing transformation, achieving our mid-term targets two years earlier than planned and enabling us to upgrade our guidance for 2028. It is in the interests of all stakeholders that such strong performance and progress is rewarded. UK companies must be able to attract excellent talent and reward them when they deliver.” The Turkish businessman joined Rolls-Royce in July 2022 and assumed his role at the start of 2023, following a two-decade stint at BP that ended in 2020. Since succeeding Warren East as Rolls-Royce's chief executive, Erginbilgic has seen the company's share price soar from approximately 150p to over 800p. A substantial portion of this surge occurred recently – jumping from around 610p to its current level – in the wake of the defence summit in London, where European leaders expressed their support for Ukraine and committed to increasing defence spending. At the culmination of February, City AM disclosed that Rolls-Royce had decided to restart dividend payments to its shareholders and announced a bold £1bn initiative for repurchasing shares after reporting annual profits that exceeded market forecasts. Rolls-Royce's CEO hailed for spearheading 'impressive progress'. In the company's annual report, remuneration committee chair Lord Jitesh Gadhia was quoted praising the leadership team's accomplishments: "Tufan Erginbilgic and the executive team have delivered continued improvement in performance levels with impressive progress made on the group's transformation, generating real value for shareholders." He elaborated on the future targets, saying, "Achievement of the medium-term guidance will take Rolls-Royce significantly beyond any previously achieved level of financial performance and we are on track to deliver the commitments ahead of schedule." Lord Gadhia also emphasised the importance of incentivising management: "We are determined to incentivise the management to build upon the progress made and maintain momentum."

Jatco boss eyes wider European opportunities with new Sunderland factory

Japanese automotive supplier Jatco says its forthcoming North East factory will serve hopes of wider European work, including with brands such as Volkswagen and BMW. The majority Nissan-owned transmission specialist says 80% of its capacity at the newly announced Sunderland factory will be given over to production of drivetrains for Nissan's all-electric models that are built at its nearby plant. Jatco boss Tomoyoshi Sato said he also hoped to secure work with other manufacturers as the North East facility - its fourth factory in addition to Mexico, China, and Thailand - would serve as a key European base. Mr Sato said there was no timeline on reaching the planned 340,000 unit per year capacity at the International Advanced Manufacturing Park facility, which is expected to support more than 180 jobs. Work is due to start soon on the extension and fit-out of the 138,840 sqft building. Jatco has received £12m of grant funding from the Automotive Transformation Fund towards the £48.7m investment. Mr Sato told BusinessLive the British Government was "very good to us" and thanked ministers and officials for their support. At an event marking the launch of new division Jatco UK, which will operate the plant, Mr Sato said the firm would develop the plant into one with high production efficiency in the hope that it could expand further. He said: "Since our establishment in 1970, we, as Jatco, have spent over 50 years developing and producing transmissions for automobiles and supplying them to Nissan and other automotive manufacturers all over the world. "To date we have produced over 129 million automatic transmissions and have continued to hold the global top share in CVTs [continuously variable transmissions] in the 15 years since 2008. "The Nissan Qashqai, being produced by Nissan Motor Manufacturing in the UK, is fitted with one of our continuously variable transmissions. In addition, with electrification of vehicles, we will be suppling e-axles and other electrified parts ranges to the global market. Jatco UK is our first overseas production plant after our plants in Mexico, China and Thailand. And our first production plant in Europe. "This plant will also let us participate in EV36Zero - Nissan's transformation project in Sunderland. Jatco UK will be located here in Unit 6 of the International Advanced Manufacturing Park in Sunderland." The decision by Jatco to set up the Sunderland facility is being touted by the Government as a wider mark of confidence in the UK economy following a tumultuous period for UK automotive manufacturing. That has seen Ford and Vauxhall owner Stellantis slashing jobs, and Nissan itself sparking concern with plans to cut thousands of jobs globally amid poor sales and financial challenges. Manufacturers have also objected to the UK's Zero Emissions Vehicle mandate, forcing the Government into a consultative review. Investment Minister Poppy Gustafsson was at the Sunderland launch event and played down the concerns when asked by BusinessLive. She said: "Look what we're seeing today: Jatco's phenomenal investment into this facility in Sunderland. The reason they're doing that is because of the brilliant people working here in Sunderland, and the brilliant skills within the automotive sector. "When we think about the Government's goals, where is to drive economic growth and to support ambitions in terms of the green energy transition. We have to work with the private sector to accomplish that, and on the one hand we want to encourage this movement to electrified vehicles and on the other hand we don't want to do that at a pace that is too disruptive to the private sector.

Jaguar Land Rover reveals scale of Donald Trump's tariffs with US sales figures

The impact of Donald Trump's tariffs on Jaguar Land Rover has been brought to light as the luxury car manufacturer detailed its vehicle exports to the US for the first quarter of 2025. The Coventry -based automotive giant reported a 14.4% increase in wholesale volumes in North America during its fourth quarter, as reported by City AM. This information comes following Jaguar Land Rover's announcement over the weekend that it will "pause" shipments to the US while it adjusts to "address the new trading terms" that have arisen as a result of Donald Trump's tariffs. The US administration enforced a 25% tariff on all foreign cars starting Thursday, complemented by a broader "baseline" tariff of 10% on goods imported globally which commenced on Saturday morning. In a statement issued on Saturday, a spokesperson for Jaguar Land Rover commented: "The USA is an important market for Jaguar Land Rover's luxury brands." They added, referencing their response to the tariffs: "As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans." The details of US wholesale figures come ahead of Jaguar Land Rover releasing a comprehensive set of data before its full-year results for the 12 months up to the end of March 2025, which are expected to be announced in May. In its most recent quarter, the group's wholesale volumes, excluding the Chery Jaguar Land Rover China joint venture, reached 111,413 vehicles. This represents a 6.7% increase compared to the previous three months and a 1.1% rise year on year. When compared to the previous year, wholesale volumes in Europe increased by 10.9%, while in the UK they remained flat at 0.8%. However, the group experienced a significant 29.4% decline in China, and overseas sales fell by 8.1%. Retail sales for the fourth quarter, including the Chery Jaguar Land Rover China joint venture, totalled 108,232 vehicles. This is a decrease of 5.1% compared to the same quarter last year but an increase of 1.8% compared to the preceding three months.

North East automotive sector could see thousands of jobs created once current 'turbulence' is overcome

Building of new electric vehicle models and the batteries to power them has the potential to create up to 3,500 jobs in the North East, a key car manufacturing group has indicated. The North East Automotive Alliance (NEAA) says the region's industry has a combined turnover of £10.3bn and employs about 27,000 people but could create significant growth once current turbulence in the sector has been navigated. A significant part of that activity is underpinned by Nissan's Sunderland operation, which earlier this week confirmed it was cutting back production at the plant amid global cost cutting. Responding to the news, Paul Butler, who is CEO of the body which represents supply chain companies, said it was reflective of the significant flux in the global automotive sector but also demonstrative of the agility of the North East automotive sector in managing the challenging conditions. Mr Butler referenced well-publicised semiconductor shortages on the back of Covid, the emergence of new competitors such as BYD and Tesla and falling sales in traditional car markets in Western Europe and North and South America between 2019 and 2024, due to economic challenges, and concerns about range and charging technologies for electric vehicles. The UK Government's Zero Emission Vehicle Mandate - which requires 100% of all new car sales to be EV by 2035 - has also prompted concern from manufacturers with Nissan itself among those warning the measures threatened jobs. A consultation on the measures was launched by Government and the NEAA says the sector is now eagerly awaiting its results. Mr Butler also highlighted the Vehicle Excise Duty 'Expensive Car Supplement' on battery electric vehicles which will mean models costing more than £40,000 will incur a £3,110 tax bill over the first six years of ownership - a move the Society of Motor Manufacturers and Traders has said undermines ambitions to transition to electric motoring. Mr Butler said: "Given all these headwinds it is not surprising that we are in a very turbulent period, whereby companies must act to market conditions. This is a strategic decision that has been taken to improve efficiency, with no changes to the current number of employees, nor planned investment. The Nissan Sunderland plant continues to be at the forefront of vehicle electrification, with new all-electric Leaf and the third-generation e-Power Qashqai models to be built in Sunderland." Despite the challenges facing Nissan and the wider sector, there has been continued investment in the region's automotive sector in recent months, including the announcement by Nissan-owned transmission supplier Jatco that it will set up a £48.7m factory near the Wearside plant. Jatco boss Tomoyoshi Sato told us he hopes the facility will grow to serve more manufacturers in Europe such as Volkswagen and BMW. Last week the £1m National Battery Training and Skills Academy was launched by New College Durham and Newcastle University. The training facility at the college's Framwellgate Moor Campus will initially support the second Sunderland gigafactory of battery maker AESC, which opened the country's first such plant in the same location 13 years ago. The UK's new car market got off to a shaky start this year, with a -2.5% decline to 139,345 units in January. Meanwhile, both hybrid electric vehicles and plug-in hybrids saw growth and their market shares rising to 13.25 and 9% respectively, while battery electric vehicle registrations were up 41.6% year-on-year to take 21.3% market share.

Newcastle College launches £850k advanced manufacturing skills facility

Leaders from some of Tyneside's top manufacturing and engineering companies have attended the launch of Newcastle College's new Advanced Manufacturing Suite. Delegates from firms such as Siemens Energy, Baker Hughes and Shepherd Offshore were shown the newly kitted out facility at the college's Rye Hill Campus, where cutting edge technology including robotics, 3D modelling equipment and CNC machines have been brought in to train students who could go on to careers in advanced manufacturing. About 500 students per year are expected to pass through the facility, which upgraded existing classroom and workshop space at the college, under the direction of an employer advisory board. Newcastle College principal Jon Ridley said the move is in response to consultation with industry about future skills needs, and part of a wider investment strategy across city centre campus, its Aviation Academy at Newcastle International Airport and its Wallsend-based Energy Academy, where students are trained for subsea and renewable energy industries. The new Advanced Manufacturing Suite will also be used to upskill local workers. He said: "At Newcastle College our courses are designed in collaboration - we co-create - with employers. So where employers are talking about the kit and equipment that's needed - we go out and purchase that equipment. "The difference in being a student at Newcastle College and a student at sixth form or a university, is experiential. It's about practicing and honing the skills on the kit." The array of workshop equipment supplied by Mach Machine tools spans different sub-sectors of advanced manufacturing with the college hoping to turn out workforce-ready candidates who can use the type of machinery and systems found on the workshop floor at local employers. Learners will have the opportunity to program robotic arms of the kind found on production lines and get to grips with precision milling machines used by component manufacturers. Overall, the investment in the machinery together with building work and IT required alongside it is worth £3m. Mr Ridley said the suite is intended to blend theory and applied learning - breaking traditional barriers between classrooms and workshop. He added: "It's 100% for the region and that's the thing about Newcastle College, we do have a large number of 16-18 year-olds and there are about 13,000 students here per year. "Only about 6,500 of those are kids and the rest are adults, and of those adults you've got people looking to retrain, re-skill and up-skill to enhance their careers. So to meet the region's ambitions, facilities like this are going to be the engine of that ambition."

JLR to 'pause' shipments to US after Trump tariffs

Car giant JLR has announced a pause in shipments to the United States to tackle "address the new trading terms" imposed by Donald Trump's tariffs. Thursday saw the imposition of a 25% tax on all foreign-made vehicles entering the US, followed by the introduction of a 10% "baseline" tariff on global imports on Saturday morning. JLR, formerly Jaguar Land Rover, is one of many firms worldwide contending with the repercussions of the new trade rules and the resulting market instability. In a statement issued on Saturday, a JLR spokesperson confirmed: "The USA is an important market for JLR's luxury brands. They added, "As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans." Global trade has been significantly impacted following President Trump's declaration of the tariffs at the White House this past Wednesday. The fallout was significant, with the FTSE 100 enduring its worst trading session since the pandemic began on Friday, and comparable downturns affected Wall Street as well. The FTSE 100 saw all but one stock fall, with Rolls-Royce, the banking sector, and mining companies witnessing substantial losses. Prime Minister Sir Keir Starmer has pledged to “do everything necessary” to protect the UK’s national interest after the tariffs were imposed, saying ministers are “ready to use industrial policy” to support businesses. Writing in the Sunday Telegraph, he said “the immediate priority is to keep calm and fight for the best deal”. He said that in the coming days “we will turbocharge plans that will improve our domestic competitiveness”, and added: “We stand ready to use industrial policy to help shelter British business from the storm.” London's leading stock market index, the FTSE 100, dropped 419.75 points, or 4.95%, to close at 8,054.98 on Friday, marking the largest single-day fall since March 2020 when the index lost more than 600 points in one day. The Dow Jones also took a hit, falling 5.5% on Friday as China matched Mr Trump's tariff rate. Beijing announced it would retaliate with its own 34% tariff on imports of all US products from April 10. Ministers are still striving to secure a deal with the US, hoping that it could provide some exemption from the tariffs. Rachel Reeves stated on Friday that the Government is "determined to get the best deal we can" with Washington.

Tata Steel in green steel supply deal with JCB

The £1.2bn electric arc furnace at Port Talbot will supply steel to construction equipment manufacturer JCB once operational. The electric arc furnace (EAF) from Tata Steel UK, following the ending of blast furnace primary steelmaking at Port Talbot, is scheduled to become operational in 2027. The supply contract between the Indian-owned steelmaker and JCB, currently in the form of a memorandum of understanding, is the first since Tata announced its EAF plans. The three million-tonne per year EAF - which will be one of the largest in the world - will provide a lower CO2 alternative to the traditional blast furnace method. The £1.2bn investment includes £500m funding from the UK Government. The EAF will turn UK-sourced scrap into new steel, removing the need to ship millions of tonnes of iron ore and coal from across the world to Port Talbot. Tata Steel’s plans will cut the site’s carbon emissions by up to 90% and UK’s overall carbon emissions by about 1.5%. ]Don't miss the latest news and analysis with our regular Wales newsletters – sign up here for free Anil Jhanji chief commercial officer, Tata Steel UK, said: “One of the key drivers in our transition plans is that our long-standing and loyal customers such as JCB need green steel to meet their own decarbonisation ambitions. They want to be supplied by a trusted partner making quality steel within the UK. "This announcement that two of the UK’s largest manufacturers are working together to create a low-carbon supply chain is an important step in the UK’s transition to a circular economy.” Wayne Asprey, group purchasing director of JCB, said: “Tata Steel is a long-term supply partner for JCB and this agreement marks an essential next step in our journey towards supply chain decarbonisation. "We are fully supportive of Tata Steel UK’s investment proposals and are pleased to be one of the first customers to endorse those plans by making this agreement to secure British-made green steel as soon as it is available.” Tata Steel signed a contract in October with Italian firm Tenova to build the EAF. Subject to planning approval construction work will start next summer.

Comment: Government's actions are a useful first step but needs to do more

It was more bad news for UK auto last week when President Donald Trump announced 25 per cent tariffs on all car imports to the US. This will have a huge impact on the UK and EU auto industry which was already being squeezed by falling sales in China, stagnant demand in Europe and slow electric vehicle (EV) take-up. It's nothing short of a perfect storm for the auto industry. Cars are the UK's number one goods export to the US, at £8.3 billion in the year to the end of quarter three in 2024, out of around £58 billion in total UK exports to the US. Firms like JLR, Rolls Royce, Bentley, Aston Martin, Mini, McLaren and Morgan will be most affected. The US is the UK's largest auto export market after the EU. There will be a particular impact on the West Midlands which is the number one exporting region to the US (think JLR and Aston Martin, for example). Much of the UK auto industry is already operating well below capacity and the tariffs will be a further hit for a struggling industry. Production cuts and job losses are likely. The Institute For Public Policy Research puts 25,000 jobs at risk. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. That is a big underestimate as it fails to account for tipping points if plants fall below minimum viability levels and close completely, with a further impact on the supply chain. You can double or triple that number in terms of the jobs at risk. The UK is looking to do a quick trade deal with the US to avoid tariffs hitting UK auto too much. I think that is doable in a narrow sense on cars as the UK has a ten per cent tariff on US imports. Both sides could scrap auto tariffs completely and both would see it as a win. That has to be a key, immediate goal for the Government. A broader trade deal to avoid Trump's ten per cent tariffs on all UK imports will be much more tricky and will see the US wanting concessions on the digital services tax, more access for US services to the UK in areas like health, and a deal on agriculture. Think chlorinated chicken and hormone injected beef. The Government has already ruled out the latter. To help the auto industry, Prime Minister Keir Starmer this week set out changes to the UK's Zero Emission Vehicle (ZEV) mandate. This was set out as a response to Trump's 25 per cent tariff but was anyway on the cards after a huge outcry from industry last year over policy and a quick-round consultation by the Government. These changes have rather cleverly been marketed as a response to Trump's Tariffs. Nevertheless, what the Government unveiled is useful as far as it goes. The ZEV mandate policy had been inherited from the previous government and was a dog's breakfast of a policy which risked fining domestic producers for not hitting overly optimistic mandated targets, with them then likely having to buy credits from the likes of Tesla and Chinese EV producers. Fining firms making investment in the UK was always a bad idea and giving auto makers more flexibility to hit the targets makes a lot of sense. Another welcome change is allowing hybrids like the Toyota Prius or Range Rover Evoque hybrid to be sold through to 2035 (after the 20203 ban on pure petrol and diesel cars). Hybrids are a good first step for many people and help in the transition to electrification. And 2035 as a target for this is fine: the average life of a car is 15 years so that still means we can be on track to get to Net Zero by 2035. Other good news came in the form of reducing fines for non-compliance and exempting smaller producers like Aston Martin. So far, so good. But what isn't clear is whether there is any new cash for speeding up the roll out of the charging infrastructure. The Government ‘reaffirmed' £2.3billion for a range of objectives including infrastructure (in other words just reannounced money that was already committed). While the government says it is on track to reach its target of 300,000 public chargers by 2030, many of these are in London and the South East. Elsewhere, the charging network is patchy and a big deterrent to EV take up. There are also some glaring gaps in the new policy stance. Firstly, there are no incentives to boost demand for EVs. If the Government wants to speed up the market for EVs, whacking the supply side with a big stick in the form of mandates is not enough. Carrots are also needed for the demand side. Think of temporary VAT cuts to make EVs more attractive and boost demand. Sadly, the Government's self-imposed fiscal straight jacket rules this out. But, even if the UK gets a trade deal with the US, Trump's tariffs will hit world trade, growth and demand for UK exports. There will be indirect effects on UK economic growth anyway which makes hitting Rachel Reeves' eye-wateringly tight fiscal rules even more challenging. At some point, they will need to be relaxed. Last but not least, the Government's early-awaited yet delayed industrial strategy is needed sooner rather than later. It has been delayed by the Government while it is being repainted from green to battleship grey as the drive to re-arm gathers pace given Europe's inability to rely on the US for defence under Trump. Boris Johnson sadly scrapped the last industrial strategy so as to ‘build back better'. Building back badly was perhaps a more apt description of what then unfolded as growth stagnated. Putting a strategy back in place is vital to help advanced manufacturing - and automotive - on a range of issues like attracting investment into making EVs, rebuilding the supply chain (including on batteries), retraining and reskilling workers and cutting energy costs. Starmer has said the world has changed and we need to respond. It has, and while the Government's announcements this week are welcome, much more will be needed going forwards if the auto industry is to thrive in the UK.

Iconic Raleigh bicycles report significant losses amid sales increase and market pressures

Raleigh, the renowned bicycle manufacturer, has reported a significant loss of over £30 million despite halting a sustained decline in sales. The Nottinghamshire-based company, historically the world's largest bike producer, disclosed a pre-tax loss of £30.1 million for 2023, following a £6.8 million loss in 2022. According to the latest accounts filed with Companies House, Raleigh saw its turnover rise from £55.7 million to £57.7 million during this period, as reported by City AM. This uptick in sales follows a downturn where Raleigh's turnover dropped from £74.4 million in 2020 to £67.4 million in 2021, and further down to £55.7 million in 2022. The last time Raleigh posted a pre-tax profit was in 2021, amounting to £187,000. While Raleigh's UK turnover increased from £51.8 million to £56.3 million in 2023, its European sales outside the UK decreased from £3.9 million to £1.3 million. In a statement endorsed by the board, Raleigh expressed confidence about its market position: "The directors anticipate that the market place will continue to be very competitive during the coming year." They also highlighted the brand's strengths: "Raleigh retains a solid competitive position with considerable brand strength, an independent bicycle dealer network and a strong presence on the high street." The statement addressed market dynamics post-pandemic: "The uplift in the market driven by Covid has seen some contraction and volumes have returned to pre-Covid levels." It also mentioned current challenges: "As a result this has left the market in an overstocked position and we have experienced price pressures in the market place." "As a result a bull business review was performed at the end of 2023 and the business was right sized and strategic changes to the business structure and product offering were made to protect the business." "These changes have left the company in a strong position when the market returns to a more normal and stable state." The financial statements follow after Raleigh UK and Raleigh Holdings, both narrowly avoided compulsory strike-off notices last year due to late filing of their accounts. This news came into light after Raleigh confirmed job cuts at its headquarters ahead of its closure and relocation.

Swansea family-owned engineering firm Afon acquired in management buy-in deal

A Swansea-based and family-owned engineering, fabrication and machining business has been acquired in a management buy-in deal. Formed in 1979 by Mr Anthony Beaujean, Afon Engineering was run by Tony, before passing the reins to his sons Carl and Andrew. After decades of managing the business, which employs more than 50 people in Llansamlet, the family has welcomed on board an experienced new leadership team. The deal, the value of which hasn’t been disclosed, has been supported with a £2.5m mixed loan and equity investment from the Development Bank of Wales. The team includes new managing director Jason Thomas, formerly of Llanelli-based Teddington Engineered Solutions, and Julian Vance-Daniel, founder of Bridgend-based Vessco Engineering. Mr Thomas said: “We are proud to be the new custodians of Afon, this marks a momentous and proud occasion for us and we have clear intentions to let the world know about Afon across many industry sectors. "Together, we will usher Afon into a new era, one that is marked by ambition and professionalism. We believe there are exceptional people working at Afon who show commitment and dedication, which has been inspiring to see and provides a great foundation for us to build on. “Thanks to the invaluable support from the Development Bank of Wales, we’re excited to step in and ensure a smooth transition for the business. Our goal is not just to preserve the legacy of Afon, but also to explore opportunities for growth and development on a global scale.” The deal was completed by Scott Hughes, senior investment executive with the Development Bank of Wales, with support from Clare Sullivan, regional manager for new investments. Mr Hughes said: “Our investment will enable the family to step away from a successful business they have worked hard to build. The new management team is skilled, with a strong track record, and is well-positioned to support the business in achieving its planned future growth. “We’re grateful to the Beaujean family for their dedication, and support throughout this transition, which has been instrumental in setting us up for a promising journey ahead.” The deal was supported by Geldards, acting for development bank, with JCP, Azets and Harvey Business Support advising Afon. Alex Butler, corporate partner at Geldards said: “We were delighted to work with Scott and the team at the Development Bank of Wales on this transaction. This latest investment demonstrates the Development Bank’s continued commitment to supporting Welsh businesses with their succession planning – helping those businesses secure a sustainable future here in Wales for future generations.”

Losses widen at SIG plc as it tackles 'ongoing challenging' trading conditions

Building supplies company SIG plc saw its losses widen in 2024 in what it called an “ongoing challenging market”. The Sheffield-based company has released results for last year in which its revenues fell 4% from to £2.61bn. That saw the company's pre-tax losses increase from £31.9m a year earlier to £44.8m. SIG said its performance had been “robust” and that it had seen an improvement in sales in the second half of the year. It also highlighted “good progress” to boost medium and longer term profitability, including a cost savings programme that had taken 430 jobs out of the business and saw the closure of 17 underperforming sites. SIG said its French and German businesses continued to face the most subdued markets but pointed to sales growth in Ireland and within its UK roofing business. Chief executive officer Gavin Slark said: “The group's 2024 results reflect a robust trading performance in challenging markets. We continued to experience lower volumes from weak end-markets across the UK and EU, but we have used this period to reshape our operations, through cost reduction and restructuring actions, and to create better performing businesses across the group. This will help to significantly improve our future profitability when markets recover. "We also maintained a keen focus on our customers and delivering great service. I am proud of the energy and resilience our people have continued to demonstrate in this tough environment. “Across all our operations we are implementing a range of initiatives under our 'GEMS' strategy, which will lead to a higher-value sales mix, continually stronger commercial execution, and more efficient operations, all of which will support delivery of our 5% medium-term operating margin target. "The operational gearing in our business model applies equally strongly in conditions of rising demand, and, accordingly, the board believes the group remains very well positioned to benefit from the market recovery when it occurs." SIG supplies building products to trade customers in the UK, France, Germany, Ireland, Benelux and Poland. It employs around 6,700 employees across Europe and is listed on the London Stock Exchange.

Cardboard packaging firm DiamondPak in job creating £2m investment

Cardboard packaging specialist DiamondPak is investing £2m in new machinery to cement its position as the UK’s leading supplier to the e-commerce market in an expansion that will increase its headcount by 20%. The Pontypool-based business manufactures more than 50 million corrugated cardboard packages a year, much of which it supplies to leading global e-commerce businesses. DiamondPak is investing in new technology, including purchasing a new double-sided printing machine to help fulfill even more orders. The investment will help the business to grow further and allow it to employ up to 20 additional members of staff over the next couple of years. DiamondPak was founded in 2008 and is based in Skewfields, near Pontypool in Torfaen. It now employs more than 100 people and has an annual turnover of £15m. It designs, manufactures, assembles, and delivers a range of corrugated packaging from cardboard shipping boxes to promotional and protective packaging. The growth of online shopping in recent years, especially since the pandemic, has driven the e-commerce market to new heights. Figures show the UK is now the most lucrative e-commerce market in Europe, with an estimated 50 million users in 2024. The market is expected to grow by 7% over the next four years. DiamondPak chief executive, Russell Davies, said: “The UK e-commerce market is huge, and growing. DiamondPak is already the leading independent full line supplier of corrugated packaging to the e-commerce market in the UK, and this significant £2 million investment will help consolidate our position. It will also give us the enhanced capacity and flexibility we need to serve the evolving demands of the market in the coming years. “As a proud local employer in a region known for its manufacturing history, we’re especially pleased that this investment will help us grow our workforce even more, and allow us to create up to 20 skilled jobs in Pontypool.”

UK's largest lithium extraction facility to be built in County Durham

Construction of the UK's largest lithium extraction facility in County Durham will go ahead following approval of the project by councillors. Weardale Lithium will extract battery-grade lithium carbonate from geothermal groundwaters at a site left dormant for more than two decades since the Eastgate cement works closed down. It is expected to create between 20 and 50 jobs, and the lithium it will produce is seen as pivotal to the UK's net zero goals Stewart Dickson, CEO of Weardale Lithium, said: "This is a significant milestone for Weardale Lithium and the UK's electrification ambitions. The project aligns with the UK Government's Critical Minerals Strategy and Battery Strategy, which recognises lithium as essential to the energy transition and meeting increasing demand for battery-grade lithium carbonate from the growth of electric vehicles and battery energy storage systems." He added: "This planning approval for the UK's largest lithium extraction plant is a notable step to establishing a robust, long-term and economically viable supply chain of critical minerals. The North East is well placed to be a centre of growing domestic lithium production capability as the region has all the requisite enablers to deliver our borehole to battery strategy." "With planning approval granted, we can now move forward and scale-up confidently producing battery-grade lithium carbonate on site using a proven end-to-end process. This will make a significant contribution to the transition of the UK towards a carbon-zero economy." The application was revised following feedback from consultation responses and adjustments to the operational layout, reports Chronicle Live. It now proposes temporary development with permanent planning permission sought for pipeline routes. Below ground structures are to remain and will need additional consent for future use. The duration of the development has been changed from permanent to a 15-year term for the pilot plant. In December 2024, it was confirmed that all above-ground structures would be dismantled at the end of the development period. It is hoped the project will create a local partnership between Weardale Lithium and a similar local company, Northern Lithium. Nick Pople, Northern Lithium's managing director, said: "The two companies are not in competition with each other and conversations have already begun about how we might collaborate going forward to ensure we can accelerate the delivery of a secure, sustainable, domestic supply of lithium at scale from the North East region."

Funding deal for sensor manufacturer

A manufacturer of sensor equipment has secured nearly £800,000 in new funding to help food and beverage clients speed up their cleaning processes. Birmingham-based 4T2 Sensors will use the funding to secure certifications for hazardous environments and hire for key positions. Based on Birmingham Research Park in Edgbaston, 4T2 Sensors has developed a fluid analysis and monitoring sensor which can be used by customers in the food and beverage industry. When these companies switch between products, they have to clean equipment via something called a ‘clean-in-place' process which uses harsh chemicals and large volumes of water. Optimising this process is crucial in reducing downtime, costs and water wastage. 4T2 Sensors' product enables real-time control and optimisation of this cleaning process with claims of a 20 per cent reduction in the time spent. This fresh round of funding will support 4T2 Sensors' market expansion through obtaining certifications alongside hiring product managers, application engineers, and hardware engineers to boost product development and market reach. Chief executive Max Swinbourne said: "This investment is a major step forward in empowering food and beverage manufacturers to achieve significant sustainability gains. "With this investment, we can expand our team and obtain key certifications, positioning 4T2 Sensors to become a leader in sustainable food and beverage production solutions. "We're excited about the future and the positive impact our technology can have on the industry." 4T2 Sensors secured £796,000 worth of capital. This comprised a £249,965 investment from the West Midlands Co-Investment Fund alongside undisclosed funding from US venture capital firm Waterpoint Lane and a group of angel investors. The West Midlands Co-Investment Fund is managed by Birmingham-based venture capital firm Midven. It was launched by the West Midlands Combined Authority and the West Midlands Pension Fund in 2023 to help expand SMEs that have high potential for growth. Rupert Lyle, investment director at Midven and principle of the fund, added: "We're delighted to support 4T2 Sensors as it plays a crucial role in revolutionising sustainable practices within the food and beverage industry.

More than 400 jobs lost as metalwork operation collapses only months after rescue

A metalwork firm that employed hundreds of people in the North East, Midlands and South East has collapsed only months after it was rescued in a pre-pack administration deal. In September, Fablink Group was acquired in a near £3m deal by investors Praetura Commercial Finance and TDC Impact Limited, which backed director Richard Westley in a new venture called Wharfside Industrials. Administrators at the time hoped a string of pre-pack deals involving eight group subsidiaries had safeguarded the future of the business, which specialised in metal pressings, cab assemblies and fuel tanks, and operated from bases in County Durham and Wolverhampton, Luton and Northamptonshire. But in the intervening months the business lost contracts with several key customers and now administrators from EY have been appointed. The majority of the group's 427 staff, including around 200 in County Durham, have been made redundant while joint administrators Lucy Winterborne and Dan Hurd explore a sale of certain parts of the group and its assets. September's collapse of the group came in the wake of a problematic few years for Fablink in which £5m Government grant funding for the relocation of its Wolverhampton site is said to have failed to materialise. It also suffered a £1.5m bad debt following the insolvency of an electric vehicles customer in 2023. There were also pressures from a quality issue relating to cabs produced for a key customer that resulted in increased production costs and lost sales. Administrators also talked of burdensome costs related to an electric vehicles contract where volumes had been smaller than expected. Early last year, main lender HSBC brought in insolvency and restructuring specialists Interpath to review the firm's short-term cash flow and by March, work was under way to find a buyer and assess restructuring options. Under significant pressure from creditors, only one offer was made, from the buyers Praetura Commercial Finance and TDC Impact. About £1m of the £2.95m offer was still due to be paid in instalments leading up to September 2025. Documents show that at the time of its administration in September, the group owed trade creditors more than £2m. An overall deficit of £14.4m was also reported. A statement from the administrators at EY said: "The group was acquired out of administration in September 2024, but since then it has unfortunately lost the business of certain key customers. The group’s management team has worked tirelessly to find a viable solution to rescue the business, however, the significant loss of business has severely impacted the group’s future viability. As a result, the directors have determined that they have no option other than to place the group into administration.

Black Country manufacturer secures funding to boost exports and green credentials

A Black Country manufacturer has secured new funding to support its exporting activities and improve its green credentials. Halesowen-based Swift & Whitmore has received almost £10,000 in grant finance from Business Growth West Midlands to target £8 million in sales and decarbonise its operations. The company is one of the last remaining UK manufacturers of resin-bonded abrasives, supplying more than 200 different products to customers in sectors such as aerospace, automotive, oil and gas and heavy engineering, both in the UK and internationally. Its product range includes grinders, hot pressed wheels, diamond grinding wheels and coated abrasives. Swift & Whitmore has just completed installing energy efficiency lighting throughout its headquarters and also received a productivity grant to assist with upgrading the firm's stores and logistics department, including the purchase of a new forklift truck. This latest capital injection is part of a larger £50,000 investment drive. Managing director Janette Tierney said: "The installation of the new lighting and a forklift truck will help us become more sustainable in our processes and, importantly, will also deliver cost savings in the long-term. "We're now planning to take another person on in logistics which will take our total workforce in the Black Country and our Chesterfield manufacturing operation to 50." Business Growth West Midlands is based in Dudley and funded by Dudley Metropolitan Borough Council via the UK Shared Prosperity Fund. It runs information and support services.

Barbour profits jump 10% despite 'relentless' cost and pricing pressures

Tyneside wax jacket fashion firm Barbour saw profits jump more than 10% despite a backdrop of “relentless” cost and pricing pressures, new accounts show. The South Tyneside company – first launched in the 1890s to sell tough-wearing coats to fishermen, sailors and mariners – sells an extensive range of coats, outerwear, shirts, scarves, boots and other accessories around the world, to everyone from farmers and royalty to film and rock stars all around the world. The company, which has launched collections with celebrities including Alexa Chung and Sam Fender, operates in the UK and Ireland with subsidiaries in Germany, the US and Asia. It has now published accounts for the year ending April 30, showing how turnover dropped 6.2% from £343.1m to £321.8m, partly due to fall in sales in the challenging wholesale market. However, operating profit increased 12.3% from £34.3m to £39.6m, which Barbour said was driven by a focus on cost reductions and gains in foreign exchange. Overall income for the year was £34.1m, up from £28.8m, and its cash increased to £119.7m from £106.4m. Employee numbers also rose, from 1,132 to 1,175. A report within the account signed by chair Dame Margaret Barbour described how investments in technology and logistics were made during the year, alongside the launch of a base in Singapore to highlight its commitment to the Asia-Pacific market. The report said: “2023-24 saw a tougher wholesale market for the brand and a decline in sales from this channel, however direct to consumer through e-commerce and retail channels performed very well, with those sales increasing compared to prior year. Our long term strategy remains consistent and relevant, dedicated to the vision of being recognised as a trusted and leading British global lifestyle brand with distribution channels via wholesale, retail, e-commerce and licensing. “Asia-Pacific (APAC) is an increasingly important market for our brands. We continue to invest in technology and logistics to best service our brand partners and customers in this area of the world whilst retaining brand heritage and core values. During the year we opened a Singapore operation to ensure demand is met in this market more effectively. “During the financial year 2023-24 revenues decreased by £21.3m. Whilst this represented a 6% reduction in revenues, we believe in the continued strength and resilience of our brands relative to complex market performance, the trust that our customers and consumers place in us and the sustainability, in the broadest sense, of our business model and practices. “Despite economic uncertainty and challenge presented by the cost of living crisis, war in Ukraine and supply chain disruption, we managed to increase gross margin by 3.6%, with gross profit increasing by £5.4m. Despite considerable cost pressures, we wanted to remain good value for our consumers and did not increase our prices in line with the cost increases suffered, minimising supply chain costs, without a loss of service, was key to improved gross margins. With uncertainty across global markets and competition for volatile demand remaining high, navigating profitably has been a challenging but key focus in the financial year 2023-24.” Following publication of the accounts Steve Buck, group managing director, said: “12 months ago, we anticipated that global markets would be very challenging and made the decision to focus on high quality, profitable sales. This strategy has worked very well in generating strong demand for the brand with increased efficiency and profits. This approach is very much in line with the long-term view taken by the business.

Aviation services firm AerFin look to accelerate as it unveils new South Wales HQ

Aviation asset specialist AerFin has relocated to new headquarters in Newport in an investment doubling its capacity. It has entered into a 10-year lease for 116,000 sq ft of office and industrial space at Indurent Park (formerly St Modwen Park) in Newport. The £170m turnover business buys, sells, leases and repairs aircraft, engines and parts. It said its new HQ, which has seen it relocating from a smaller operation in Bedwas, marks a significant milestone in its global expansion. The new facility doubles AerFin’s engine maintenance, repair and overall capacity, enabling up to 200 quick-turn shop visits annually. The expansion also ensures faster turnarounds to meet rising demand from the aviation industry. AerFin’s chief executive, Simon Goodson, said: “Our new headquarters in South Wales marks a significant step in our growth journey. It reinforces what our customers, partners, suppliers and investors value about our capabilities to deliver confidently, reliably and progressively for them across a global footprint that includes key facilities in Miami, Singapore, Dublin and London Gatwick. “Indurent Park will be a cornerstone of our growth, enabling us to meet the needs of a global customer base while maintaining strong roots in South Wales.” The business has a global workforce of 213 with 105 at its Newport HQ. Worldwide it serves 600 customers. Cardiff-based property consultancy firm Cooke & Arkwright acted for AerFin on the letting. JLL and Knight Frank are joint marketing agents for Indurent Park. Trefoil Interiors supported AerFin on its relocation. Ben Bolton, director of business space for Cooke & Arkwright, said: “We are thrilled to have secured this property for our clients. We were hired to develop Aerfin’s property strategy which included significant business growth and operational efficiency targets. The acquisition reflects the endpoint of a long project, further demonstrating our experience and commitment to providing tailored solutions for clients that align with the evolving needs of many occupiers.” Hannah Bryan-Williams, development and leasing manager at Indurent, said: “We developed Indurent Park Newport to meet the growing regional demand for sustainable, mid- and large-scale industrial spaces that cater to both leading global corporates and local businesses. "We’re thrilled to welcome AerFin to the park, a standout Welsh success story and a leader in sustainable aviation solutions. Their presence, alongside other innovative tenants, highlights the ongoing strength and appeal of Indurent Park as a hub for forward-thinking companies.” It comes a AerFin has completed thte the purchase and teardown of one of the largest twin-engine passenger aircraft in the world, the B777-300ER, that has been retired by Japan Airlines. Mr Goodson said: “This transaction was a complex project where we combined our deep technical, commercial and operational capabilities with our partner to confidently and reliably retire the aircraft to our customer’s expectations. “We all worked tirelessly to conduct the technical acceptance work in Japan, organise the ferry flight to the US and then efficiently tear down the airframe for its parts to be re-used. Our focus on bringing clarity to complex transactions such as this one further demonstrates our commitment to Asia Pacific and Japan specifically.”

Ibstock slashes dividends as profit tumbles amid 'subdued market conditions'

Ibstock, the London-listed brickmaker, has cut its annual dividend payout following a drop in profit and revenue due to "subdued market conditions." The company reported a nearly one-third decrease in pre-tax profit to £21m for the year ending 31 December. Ibstock attributed this figure to a "lower trading performance" and the impact of a one-off £12m charge, as reported by City AM. Revenue fell by 10% to £366m as sales slowed. The group cited a "subdued" market environment for its performance and reduced total dividends by almost half, to 4p per share. Earnings per share also declined year-on-year by 30%, to 3.8p. Despite these challenges, Ibstock noted a gradual improvement in sales during the second half of 2024 and maintained a positive outlook for 2025. "We expect an improvement in market volumes in 2025, with momentum building through the year," said Chief Executive Joe Hudson. "Ibstock is well-positioned for a market recovery, and the fundamental drivers of demand in our markets remain firmly in place." He added: "We see a significant opportunity for a new era in housebuilding in the UK and with the investments we have made and our market leadership positions, the group remains well placed to support and benefit from this over the medium term." "Shares have fallen around 14% so far this year, and the firm will also have to contend with a 21% year-on-year increase in its debt pile, which currently stands at £122m." Hudson described the 2024 performance as "resilient."

Yara confirms Howden fertiliser plant is on track for production next year amid Hull closure

Fertiliser giant Yara International says it is on track to commission its forthcoming East Yorkshire site this year, despite mothballing its Hull ammonia plant. The Norwegian multinational says the commissioning phase for its Yara Vita and Yara Amplix production plant in Howden will take place at the end of this year, before full production is expected to start in the first half of 2026. Work has been under way at the £50m Ozone Business Park site which is intended to double production of its YaraVita speciality crop nutrition products and biostimulants - both of which are touted as key products to build food security. At the same time, Yara confirmed the mothballing of its Hull ammonia plant, which is owned but not operated by the group. The decision comes amid efforts to drive $150m cost reduction by the end of this year. A Yara statement on the closure of the Hull ammonia plant said: "Yara’s Hull ammonia plant has been mothballed. This planned transition follows the supplier's decision to terminate the feedstock deliveries. We are continuously optimizing our portfolio, the plant may be restarted in the future if Yara can secure access to competitive feedstock from other sources." In its Q4 2024 results, Yara said the energy transition, climate crisis and food security were top priorities globally and that its food solutions and ammonia activities positioned it well to tackle these issues. The firm said: "Sustainable profitability in core operations and value accretive growth opportunities are both critical to enable a fit-for-future Yara. "While Yara has successfully navigated recent volatility by focusing on operational continuity, recent returns have been below satisfactory levels. Yara’s strategy prioritises resources towards higher-return core assets and activities while scaling back non-core and lower-return activities. In line with this, Yara is executing a cost and capex reduction program targeting a reduction of fixed cost and capex by $150m each by the end of 2025, with a $90m fixed cost reduction reported by end 2024, including $20m from divestments and $25m currency effects."

Nissan hails biodiversity plan as Sunderland factory site attracts badgers, newts and birds of prey

A rewilding project at the North East's biggest factory is said to have created a habitat in which badgers, water voles and newts are thriving. Automotive giant Nissan says they are just some of the animals to be found on marshland next to its Sunderland factory where it has carried out works to boost biodiversity. Bats, amphibians and birds of prey are also among the species spotted at the area which is next to the manufacturer's wind and solar farms, which help power the plant. The project was led by the factory's engineering team in conjunction with solar farm developer Atrato Partners Ltd and took just over a year to complete. Workers removed invasive shrubs, revitalised the habitat and build a viewing hide at the site. Now a host of difference animals, also including birds such as owls, herring gulls, kestrels and buzzards have been seen there, along with badgers, deer and great crested newts. There is also a variety of flora developing including white clover, bee orchids, garden lupin and cows slips. Andy Barker, engineering manager at the plant, said the rewilding efforts have turned uninhabited marshland into a thriving habitat for wildlife. He said: “We’re passionate about sustainability so it is fantastic to be able to create an area for wildlife to thrive. "We’ve carried out the rewilding close to where we built our first wind farm nearly 20 years ago and near our second solar farm, so this part of the plant has been the focus of our sustainability drive. It’s fantastic to continue that journey and we’ve been amazed at how quickly and how many of the various animals have taken up residence." Together, Nissan's wind and solar farms can generate up to 20% of the factory's electricity needs. In 2021 the Japanese manufacturer unveiled its multibillion-pound EV36Zero project, bringing together a new battery plant and on-site renewable energy sources to power production. Mr Barker added: "The second solar farm project allowed us to transform the existing marshland by adding a further pond and a maintained new grassland. It was about taking a holistic approach that included eco diversity as well as renewable energy." Nissan has also set out plans to make the Sunderland factory a flagship site for electric vehicle production which it hopes to emulate around the world. Under the firm's Ambition 2030 strategy, it aims to become carbon neutral across the life cycle of its products by fiscal year 2050.