Downturn in leisure spending takes its toll on region’s tourism businesses
Half of tourism businesses in East Anglia saw profits fall last year as consumers reined in their leisure spending but many firms in the sector are still planning to invest in their operations, according to a major survey of the sector from Larking Gowen. Some 83 per cent of businesses responding saw a change in customer spending habits and one-in-three expected lower profits in 2024. Chris Scargill, partner and head of the tourism, leisure and hospitality team at Larking Gowen, said: “Following a long run of challenges and customers struggling with the rising cost of living, the tourism sector in the eastern region is understandably feeling fatigued.” The Larking Gowen Tourism Business Survey 2024 showed that almost a third of firms plan to cut jobs and 10 per cent said business activity may need to be reduced whilst a similar share may have to close. But the survey also highlighted signs of optimism in the sector; 59 per cent of respondents had plans for site improvements and refurbishments whilst significant numbers were also looking to extend premises, improve customer and employee experiences and spend more on marketing and PR. Read more…
Photo: Chris Scargill with Jimmy Doherty of Jimmy’s Farm.
Funding agreed for new innovation centre in Stowmarket
Funding of £18.8 million has been agreed to create a 35,000 sq ft Skills & Innovation Centre at Gateway 14 in Stowmarket. The scheme is being developed by Mid-Suffolk Council’s subsidiary Gateway 14 in partnership with developer Jaynic. It involves a new three-storey centre at Gateway 14, part of the Freeport East zone and includes office space for start-ups, collaboration spaces, training and meeting rooms, as well as a café. Freeport East agreed £16.7 million funding for the centre in March and Mid Suffolk Council will meet the remaining costs. Steve Beel, chief executive for Freeport East, said: “The new centre, along with other recent announcements, significantly strengthens our ability to market the Stowmarket and Mid Suffolk area to various companies, both in the UK and internationally. This positions our region as one of the top choices for inward investment in the UK.”
Ben Oughton, Jaynic development director, added: “Gateway 14 is continuing to make great progress and potential occupiers are recognising its huge benefits – including its Freeport status and excellent connectivity to the A14. It is bringing significant investment to Mid Suffolk.”
Separately, Mid Suffolk District Council has granted planning permission for a new 164,500 sq ft manufacturing and warehouse unit (photo, right) at Gateway 14. The application had been made by Jaynic, in partnership with Gateway 14 Ltd.
More struggling firms rescued and avoid winding up
A rising number of businesses are able to be rescued rather than being wound up despite rising insolvencies, says the Eastern branch of insolvency and restructuring body R3 . Insolvency Service figures showed that corporate insolvencies increased by 18.4 per cent in April to a total of 2,177 compared to March’s figure of 1,838. R3 Eastern chair Hayley Watson, a director at McTear Williams & Wood, said: “…despite the difficult business climate over the period these figures cover, there is some cause for optimism. The economy is growing again and business and consumer confidence levels are both improving. While businesses remain concerned about costs and consumer demand, the mood is generally more positive with a significant increase in new company registrations being reported by Companies House.”
Adnams exploring ‘range of options’ after losses climb to £4 million
Adnams, the Suffolk-based brewer and hospitality group, has reported a near-doubling in pre-tax losses to £4 million up from £2.3 million previously as rising costs – including higher interest payments on its £15.9 million debts – took their toll. Sales rose by 3 per cent to £66.3 million, helped by strong off-trade sales, particularly of Ghost Ship. Beer volumes rose 11 per cent in the first quarter of this year. Operating losses for 2023 rose to £2.5 million from £1.2 million. Ceo Andy Wood – who is stepping down at the end of June to be replaced by Jenny Hanlon – said: “The coming months will see the company undergo further change as it is positioned for further growth. This change is likely to result in a simplified operating model that encompasses the things the business does well, whilst reducing its borrowings, susceptibility to economic shocks and building greater resilience.”
Adnams is continuing to explore a range of options to fund its future growth plans with the support of its advisors and says it has received an encouraging response to the process. The board’s preferred option is to raise additional capital from another party and/or the sale of freehold assets to return capital but no decision has been taken.
New aggregates wharf opens in Great Yarmouth to land granite from Scotland
A new wharf at Peel Ports Great Yarmouth has opened where construction materials from Scotland for major new infrastructure developments in the region will be landed. The three-acre site has an 800,000 tonne pa capacity and enables Aggregate Industries to expand into the region for the first time. Strong demand for crushed granite has been forecast for the region boosted by Sizewell C the East Anglia Array and the Norwich to Tilbury Great Grid Upgrade. The crushed rock will be imported to Great Yarmouth from the company’s super-quarry, Glensanda, in the north-west of Scotland. Lee Sleight, managing director of the firm’s aggregates & overseas division, said: “Our expansion into Great Yarmouth represents a significant development for the region by facilitating the transport of large quantities of aggregates.”
Norwich-based home improvements group acquires assets from joint administrators
Norwich-based Anglian Home Improvements has acquired the customer order book, brand & IP and certain other assets from Everest 2020, which went into administration last month. The deal means Everest 2020 customers impacted by its insolvency will have the opportunity to have their projects carried out by Anglian Home Improvements. Anglian manufactures a wide range of products at its factory in Norwich and employs around 1,500 people across the UK. Peter Mottershead, executive chairman of Anglian Home Improvements, said: “Since the announcement last week that Anglian had reached agreement with the joint administrators to take on the Everest 2020 order book, our customer service teams have been working hard to make contact with all customers impacted to review the status of their orders and where possible progress their project. “
Norfolk book company doubles capacity to meet demand for regional books and maps
A Norfolk book company has doubled its capacity to keep up with demand for regional books and maps about East Anglia. Bittern Books, owned by Steve and Elizabeth Haines, has taken on more space at Scottow Enterprise Park, formerly RAF Coltishall, having seen growing sales of its printed books and maps as it expands its customer base and product range. Steve Haines (right) said: “Many people thought printed books and maps would become obsolete, with e-readers, mobile phones and sat navs taking over. But that’s definitely not the case, especially since Covid. Print is regaining popularity – just look at the growing number of independent bookshops. He added: “We now have a range of around 900 product lines and over 20,000 books in stock.”
Region’s richest individuals ranked by wealth
Sir James Dyson is the richest person in the East of England, according to this year’s edition of The Sunday Times Rich List. This year’s list of 350 individuals and families together hold combined wealth of £795.361 billion — a sum larger than the annual GDP of Poland. Sir Elton John, Lord Lloyd-Webber and David and Victoria Beckham all appear in the annual survey. The minimum entry for the list of 350 this year is £350 million. Ed Sheeran remains the richest young musician in the UK and the richest person under 40 in the East of England. The singer/songwriter paid himself £62 million for the first half of his Mathematics world tour, taking his total wealth to £340 million.
Positive impact campaign targets Cambridge business events
Meet Cambridge, the conference and events bureau, has launched a new campaign to support people in food poverty in the city, Meet Up & Make A Difference. More than 50 venues in its portfolio are supporting the initiative and clients are being encouraged to take action at future events to help two organisations, Cambridge City Foodbank and Cambridge Sustainable Food CIC, which are seeing greater demand for their services. Meet Cambridge is encouraging organisers to do various things at events such as hosting a foodbank collection and offering delegates the opportunity to donate directly with through a QR code on the event registration form. Judith Sloane, head of Meet Cambridge, said: “Many in our immediate community are struggling to feed themselves and their families and rely on supplies provided by foodbanks. We believe that the events industry is in a position to help and that’s why we have launched Meet Up & Make A Difference.”
Photo: Members of the Meet Cambridge team with donations given by delegates in aid of the Cambridge City Foodbank at the recent Shaping Sustainable Events held at Jesus College.
Recycling partnership with animal charity cuts waste going to landfill
Waste materials from an animal charity in the region is set to be sustainably recycled through a new partnership between RSPCA Mid Norfolk and North Suffolk Branch and Anglian Waste Recycling. Instead of commercial waste being sent for processing outside the region, it will be processed at Anglian’s 10-acre site in Attleborough in Norfolk. Ryan Marshall, director of waste and recycling at Anglian Waste Recycling, said: “Waste is a growing sustainability priority for many organisations, but particularly in the field of retail. We’re looking forward to making a real difference to the RSPCA in our region.”
The team at RSPCA Mid Norfolk and North Suffolk Branch with Ryan Marshall and Kelsey Cram, Anglian Waste Recycling.
