Issue 2, 2010
Welcome to the second edition of 2010 of the Humber Economic Partnership’s monthly Market Intelligence Bulletin, designed to keep you posted on the latest developments affecting the Hull and Humber Ports City Region in terms of business investment news, mergers and acquisitions activity, major job gains or losses, plus any interesting policy or project announcements.
We hope you find this publication of interest. Your views are important to us and we would welcome your feedback on how this publication might be improved. Issue 3 of the Bulletin will be published in April.
HEADLINES
South Bank healthcare provision update
February saw a number of developments in the provision of healthcare in the Hull and Humber Ports City Region. The £14 million mental health hospital, Harrison House, opened in North East Lincolnshire. The centre will replace the current facilities at the Diana, Princess of Wales Hospital. Whilst at the Diana, Princess of Wales Hospital, the £5 million Emergency Care Centre was opened this month, which will provide larger and more sophisticated treatment areas and an in-house GP out-of-hours service.
Plans for a new £15 million Health and Social Care Centre in Scunthorpe have been approved by North Lincolnshire Councils planning committee. Plans for the building include provision for the new home of several existing GP practices, plus specialist nurses and other services. The scheme requires funding, but it is hoped that the centre could open in summer 2011. A new £4 million medical centre at Westward Ho, Grimsby, has been recommended by North East Lincolnshire Councils planning committee and will await a final decision by the Secretary of State. The new centre will replace the existing surgery on Laceby Road, Grimsby, and will be a two-storey building capable of caring for up to 10,000 patients. It is hoped that the new centre will be open by spring 2011.
OTHER HEADLINES
Marriott Hotel to open in the Manor Mill complex
Developers of the Manor Mill complex in Kingston upon Hull, Manor Mill Property Group, has confirmed that international hotel chain, Marroitt, is to open a venue at the £100 million complex in Kingston upon Hull. Marriott will operate a 185 bedroom hotel at the riverside site. The scheme will include conference and banqueting facilities, a fitness centre and high-speed internet access, designed to appeal to the corporate travel market.
Funding for coastal erosion hit homeowners
£1.2 million funding is being offered under the Governments Pathfinder scheme to assist homeowners in the East Riding of Yorkshire whose homes are at threat from coastal erosion. Through the funding, East Riding to Yorkshire Council will buy homes which are likely to disappear into the sea over the next 15 years. The authority will then lease the homes back to their owners, giving the owners time and money to plan for future moves. Residents whose homes are at immediate risk, will be offered financial help with demolition and restoration costs, alongside help with relocation. Around 55 homes in the East Riding of Yorkshire are estimated to be affected by coastal erosion over between now and 2025. Funding must be spent by March 2011.
Timescale changes in the A160 and A63 schemes
The scheme to widen the A160, the main road to the port of Immingham, could potentially be advanced by one year to start in 2012-2013, following recommendations from the Yorkshire and Humber Regional Transport Advisory Board. The board also recommended that the A63 Castle Street scheme be delayed by no more than two years, to start in 2016-2017. Recommendations will now pass to the Joint Regional Board, which meets on 12th March, for a final endorsement before being passed to the Department for Transport (DfT) for the final decision.
MARKET NEWS
Smith and Nephew report strong trading
Global pharmaceutical firm Smith and Nephew has reported a strong trading profit for the fourth quarter of 2009 of £546 million, which was a growth of 15 per cent on equivalent figures for 2008. The firms Advanced Wound Management division, which has its headquarters in Kingston upon Hull, saw an 8 percent growth over the period to £154 million. This was ahead of the market growth of 4 percent. This brought the Advanced Wound Management division’s revenue to £539 million, a 6 percent growth on equivalent figures for 2008.
Croda International release preliminary results
Goole based chemicals producer Croda International has reported an increase in turnover to £916.2 million in 2009, compared to 911.1 million in 2008. The East Riding of Yorkshire firm reported a fall in its profits before tax to £89.2 million in 2009, compared to £96.3 million in 2008. The firm also reduced its debt levels by £109.6 million over the period to £288.5 million.
Cosalt secure £3 million deal
Grimsby based marine safety group Cosalt Plc has secured a three year contract worth £1 million per year. Awarded by Aker Solutions, subsidiary of Aker Offshore Partner, the North East Lincolnshire firm will continue to supply tools and lifting equipment needed for Aker Solutions North Sea operations. The deal also includes the possibility of a two year extension.
Reckitt Benckiser release results for 2009
Annual profits at Reckitt Benckiser increased by 23 percent, to £1.89 billion, in 2009. The household products firm, which has a factory in Kingston upon Hull, has announced that it now expects a revenues growth of five percent during 2010. The firm reported strong sales in its Nurofen, Strepsils and Dettol brands.
Continued growth for Cranswick
Kingston upon Hull producers of pork products, Cranswick Plc, has recorded continued growth for the three months to December 31st 2009, with sales of £200 million, which was a 31 percent increase on equivalent figures for 2008. Fresh pork sales increased by 70 percent, bacon by 61 percent and sausages increased by 21 percent over the period. Despite strong sales, net debt at the firm increased by £6 million to £367 million, which the firm has said reflected an expected seasonal uplift in working capital. Net debt at the firm was still below the 2008 figure of £74 million.
Bemrose Booth lose ticket contract
Publishers Bemrose Booth has lost a contract worth £25 million with the Association of Train Operating Companies (ATOC) to print UK train tickets from its site in Kingston upon Hull. ATOC has instead awarded French firm Paragon Printing the contract.
MERGERS AND ACQUISITIONS
Northern Lincolnshire legal firms merge
Legal firm Martin & Haigh of Scunthorpe, North Lincolnshire, has been acquired by legal firm Beetenson & Gibbon of Grimsby, North East Lincolnshire. The move will increase employment numbers at Beetensons & Gibbons to 79.
Hull City Council acquire Queen Victoria House
Acting for Hull City Council, property consultancy firm King Sturge has acquired the four-storey Queen Victoria House in Kingston upon Hull. The 1980’s office block is to be used by Hull City Council for its customer service teams from autumn 2010. The 36,000 square foot building will now be refurbished.
Hornsea Freeport is bought
Headrow Commercial Property Services Ltd, a subsidiary of Leeds Building Society, has acquired Hornsea Freeport in the East Riding of Yorkshire. Former owners Hornsea Estates (No 2) Ltd entered into administration in July 2009 and administrators Deloitte LLP had been looking for a buyer for the retail outlet. The new owners have stated that they are in active negotiations with new anchor tenants for the site. It is hoped that this will increase visitor numbers and sales in the 43 retail units.
PhoenixIT Services acquires Aghoco 1000 from KCom
Kingston upon Hull based telecommunications firm KCom has agreed a deal with Birstall based firm PhoenixIT Services worth £1.8 million, to sell its subsidiary field maintenance support contracts business Aghoco 1000. Under the agreement, approximately 142 staff will transfer into PheonixIT Services from March 1st
JOBS GAINS AND LOSSES
200 jobs are to be created with an £8.5 million investment in Grimsby by chilled food manufacturers Daniels Group. The firm will be taking residence in the vacated Mariner Foods plant on Grimsby’s Europarc.
Steelmakers Corus Plc has announced that it is to employ an additional 60 apprentices during 2010.
The Defence School of Transport (DST) in Leconfield, East Riding of Yorkshire, is to create an additional 40 jobs, with employees trained in operating military vehicles. The recruitment drive is a response to an Urgent Operational Training Requirement (UOTR) for more trained drivers for military operations in Afghanistan.
150 jobs have been lost following the decision by ColepCCL UK to move its North Lincolnshire operations to sites in Portugal, Poland and Germany.
It is unclear how many jobs will be lost at Greencore Cakes and Deserts in Kingston upon Hull as the firm looks to consolidate operations following the loss of a contract. The firm have stated that up to 100 jobs may be lost. The firm is currently in a 90 day consultation period with employees.
It remains unclear as to the fate of employees in North and North East Lincolnshire, as Texan engineering firm Furmanite Corporation is in talks over plans to close its three businesses based in Scunthorpe and Stallingborough.
It is also unclear as to how many jobs may be lost with the closure of Ethel Austin stores in the city region, as the high street retail company enters into administration.
CONTACT
For further information regarding the Market Intelligence Bulletin, please contact Dominic Chapman on 01482 596781 or e-mail dchapman@humberep.co.uk | 
