Memorandum from the North West Regional
Development Agency (NW 15)
SUMMARY
— The Northwest economy is approximately
£120 billion per annum and the 12th largest in Europe.
The growth rate over the past three years has been approximately
2.7% per annum. With a profile following the expected economic
cycle in the UK, the region's economy is expected to shrink by
1.4% in 2009 before stabilising ion 2010. Growth is expected
to remain modest at 1.5% in 2011.
— The Global economy is facing significant
challenges, driven by the impact of tighter credit conditions
and increases in the underlying costs of inputs and commodities,
in particular, energy. Clearly this has had a major effect on
the Northwest economy:
— NW Unemployment in April 2009 was
271,000 compared to 201,000 in April 2008.
— NW unemployment is now the fifth highest
rate in England.
— JSA claimants increased by 81,600 between
April 2008 and April 2009.
— In the North West, the economic downturn
has been felt most in the automotive, engineering, construction,
retail and banking and insurance sectors. However some sectors
continue to perform well—for example, chemical, biotechnology,
defence and creative and digital.
— Lending associated with both the housing
market and investment in commercial property and business assets
has been affected.
— As the economy began to change in Summer
2008 NWDA quickly acted to address the challenges that the
region faced, to help restore confidence in local economies, undertaking
a full review of its priorities and hence focusing in particularly
on business support and supporting the labour market.
— Through Business Link North West, NWDA
has enhanced support for businesses, seeking to ensure that businesses
are able to access the finance that they need to continue trading;
finance products are accessible; and that banks implement appropriate
lending regimes. In September 2008, NWDA announced specific measures
to improve access to finance for businesses in the region including:
— £140 million Venture Capital
Loan Fund.
— £10 million support for high
growth businesses.
— £35 million business support
package.
— NWDA is also working to ensure that businesses
are able to hold on to staff; and to support individuals who need
to be re-trained. It is also making available apprenticeships
and graduate bursaries for those just entering the labour market.
— NWDA has supported a number of PFI schemes
to unlock capital and drive forward projects that otherwise may
not have moved forward because of the recession; (eg the Carlisle
Relief road) and has brought forward £20 million from
its 2010-11 budget into 2009-10 to enable delivery of
key projects in RES priority locations—eg Liverpool and
Manchester commercial districts, and the Energy coast, to help
to maintain the momentum of the economy in those areas.
— We are also working to support growth
areas and opportunities in the Northwest, particularly in respect
of energy and the creative and digital sectors. In terms of the
creative industries Media City is one of the biggest most ambitious
projects that the Agency is supporting, working with Peel Media
NWDA is ensuring that the Media City UK development in Salford
Quays delivers its objectives to become a high-tech creative hub,
capable of attracting and securing a huge range of creative industries
on the back of the digital revolution.
— The Agency has assessed its priorities
around the economy and is developing a strategic mix of interventions
in the:
— Short term—to provide assistance
to business.
— Medium term—to stimulate recovery
and growth.
— Long term—to restructure and develop
the region's strengths, supporting its growth and competitiveness
for the future.
THE IMPACT
OF THE
RECESSION ON
THE NORTHWEST
ECONOMY
Labour Market
1. Unemployment in the Northwest has risen
significantly over the period of the recession to currently stand
at 271,000 or 7.9% of the region's population. The Northwest's
unemployment rate is the fifth highest regional rate and compares
to an England average rate of 7.2%. Between March 2008 and
March 2009 the number of unemployed individuals in the Northwest
increased by 68,000, increasing the unemployment rate by 1.9 percentage
points; this represented the 4th highest unemployment rate increase
across the regions and was equivalent to the increase for England
overall. However the rate of increase in unemployment shows some
signs of slowing, with the Northwest rate of increase dropping
from the second highest region in the country in October to December
2008 to the second lowest increase in January to March 2009.
2. Job Seekers Allowance claimants in the
region increased by 81,600 between April 2008 and April
2009, increasing the claimant rate from 3.1% to 5.4%; in comparison
the rate for England increased from 2.5% to 4.6%. The claimant
count rate increase in the Northwest was the fifth highest of
the English regions.
3. Analysis of redundancy notifications
data in the region shows a fall from 5,400 in February 2009 to
3,300 in March; however this moderation was not felt across
all sectors, with notified redundancies increasing concentrated
in the manufacturing sector (41.4% of all notified redundancies
in March).
Housing
4. Latest Land Registry figures indicate
that while house prices are still falling the rate at which they
are falling appears to be moderating. The average house price
in the Northwest in March 2009 was £115,258, compared
to £152,895 for England & Wales. In March the annual
house price change in the Northwest was -15.9% compared with an
average for England & Wales of -16.2%; this was the fifth
highest regional reduction. Over the quarter to March 2009 the
Northwest experienced a -0.5% reduction in house prices, marginally
above the average for England & Wales (-0.4%).
5. Figures from the Bank of England and
Council of Mortgage Lenders show that the number of loans approved
for house purchases have increased in recent months, well above
those seen during the previous six months. However the consensus
view is that sustained improvements in the housing market will
take some time.
Business
6. Figures from the Purchasing Managers
Index (PMI) show that in both February and March this year the
balance of firms in the region reporting increased levels of business
activity on the month earlier improved, this following month on
month declines since August 2008. Business activity sentiment
in the region is in line with national views. PMI figures for
the Northwest show that the balance of firms reporting an increase
in the level of new orders improved in the three months of quarter
one 2009. Evidence from the latest BCC quarterly economic survey
indicates that the current business climate in the region is harsh
for both manufacturing and service sector firms.
7. Latest data from Business Link shows
that the Northwest continues to perform below average in relation
to the rest of England in terms of company insolvencies. Limited
company insolvency rates remain comparatively low at present however
there has been a worsening over the past three months. Latest
insolvency figures show that small SME's with 6-10 and 11-25 employees
who to date have weathered the recession are currently being hit
hardest. Based on the patterns of previous recessions however
insolvencies only tend to increase once recovery in overall demand
is underway, so Business Link predicts that business failures
will increase in both 2009 and 2010 with all sectors
affected, those hardest hit are expected to be construction, manufacturing
and business services.
8. The Northwest is still one of the regions
worst affected for the impact of the "Days Beyond Term"
problem. Figures show that companies in the property, finance,
business services and transport sectors appear to be continuing
to hang on to cash at the expense of smaller companies. It is
companies with between one to five and six to 11 employees
who are currently experiencing the worst DBT situation, the firm
sizes where the greatest increase in insolvencies has been seen.
Future Growth
9. Significant uncertainty remains around
the future path of the economy. Recent months have seen some rebound
in activity highlighted to a certain extent in business and housing
surveys and small improvements in consumer spending levels. This
increase in activity has followed monetary stimulus through interest
rate cuts and quantitative easing as well as fiscal stimulus,
a substantial depreciation in sterling and a significant cycle
of de-stocking. All these things have the potential to further
stimulate recovery; however there are also many downside risks.
From a regional perspective thoughts of an early recovery at this
stage would be premature.
MESSAGES FROM
BUSINESSES
10. Business has told us that finance continues
to be the biggest single issue. Overdrafts are being turned into
loans; interest rates are in double figures; and arrangement fees
are increasing. There is however some anecdotal evidence which
suggests that, in recent weeks, the banks have become less stringent
although inconsistencies still exist.
11. In the early days businesses complained
about the lack of understanding around the financial products
available. However the establishment of BLNW roadshows has addressed
this significantly.
12. Large firms are continuing to use their
market power to extend the time they take to pay suppliers. Firms
are taking on average 60 days to pay an invoice. The average
for firms with 1000+ employees is 90 days.
13. The lack of Trade Credit Insurance has
also been a significant issue for many firms. This has now been
addressed in the recent Budget although it is too early to report
on the benefits of this scheme.
14. We may be about to see a wave of mergers
as healthy businesses take advantage of other companies' problems.
15. In terms of people, companies are reluctant
to release skilled staff as they may never be able to recover
to pre recession levels. Some firms are aware of issues in the
1990's when they were unable to re-recruit staff they had released
and as a result couldn't grow their business. Hence companies
are responding in many and various ways—redundancies are
the last resort. Some have responded to reduced demand by for
example, adopting four day working weeks; time banking systems
for full time workers; and reduced hours. For example the following
companies are considering or have agreed to a four day week: Jaguar,
KPMG, the law firm Cobbetts. Bentley is offering a time banking
system for full time workers; and Vauxhall has cut hours rather
than made people redundant.
16. There have been some large job losses
within the region including Shop Direct (1,000 across the
region, but mainly in Crosby); Manchester Airport (90); Bentley
(220 in Crewe); Tulip (300 in Wirral; and Gibsons Foods;
(245 in Ellesmere Port). However jobs are being created in
some sectors: construction (where there has been some marginal
growth at around 2,000 jobs) and in education, health and
other public sector areas of around 8,000 jobs.
HOW WE
ARE RESPONDING
Joint Economic Commission for the North West
17. The Joint Economic Commission was established
in September to co-ordinate the region's response to the economic
downturn. It is jointly chaired by the NW Regional Minister and
the NWDA Chairman; and focuses on the following:
— Public Infrastructure and Investment.
— Impact of the downturn on communities.
— Preparing for the upturn.
ACHIEVEMENTS
18. NWDA is leading on several key strands
of work of relevance to the JEC. In essence this centres on continual
improvement of our business support products and to boost the
role that Business Link plays as the gateway to that support;
our investment in key capital projects and lobbying of Government,
partners and key organisations to ensure a co-ordinated approach
to recovery; and a focus on longer term development and growth
opportunities within the economy which will help us out of recession.
Business Support
19. In terms of business support NWDA is
ensuring that Business Link NW is the primary access point for
businesses seeking advice and support and that the organisation
is responding fully to business needs. So far Business Link has:
— Handled 799 enquiries around Access
to Finance, providing advice on how to recognise issues, improve
their financial management and stabilise their relations with
the banks. Around £94 million of funding has been sought
of which 58% of applications were for working capital.
— Provided 4,704 companies with free
health checks, which offer diagnosis and advice on how to survive
and prepare for growth.
— Offered, since January 2009, £2 million
of Transitional Loan Funding, to help established and viable SMEs
overcome a temporary shortfall in their working capital. The total
fund value is £10 million and it is expected that it
will be fully utilised.
— Since January 2009, provided over £1 million+
of Small Loans for Businesses to help individuals, small business
owners and social enterprises start up and expand.
— Provided jointly with the NW Chambers
of Commerce, the Institute of Manufacturing and UKTI, 11 Survive
and Thrive workshops which provide participating businesses with
key information on how to develop their business and where to
get support.
— Provided advice and guidance on the HMRC
Time to Pay Initiative which allows companies to defer payment
of VAT and taxes. So far 11,100 business have taken advantage
of the scheme, deferring payments worth £188 million.
20. Business Link is also providing access
to a range of products that provide advice and mentoring for new
and high growth businesses, including Business Start Up, and High
Growth coaching (intensive individual coaching to help businesses
achieve rapid growth); advice and support in respect of Innovation
and Efficiency (this includes Innovation Vouchers, which provides
up to £3,000 to help businesses fund research and development
from the region's universities, colleges or private sector research
establishments); and advice to reduce costs and manage environmental
risks (this includes in some cases provision of grants aimed at
encouraging capital investment projects which will reduce CO2 emissions).
21. In addition, NWDA:
— Has provided funding of a £1.5 million
training package, (being delivered through Train to Gain) for
the automotive sector to help it through the economic conditions.
— Will ensure delivery of the series of
measures, recently announced by Government, to increase financial
aid for rural businesses.
— Is currently negotiating with BERR, CLG
and HM Treasury the establishment of a Venture Capital Loan Fund
to the value of €204 million.
— Awarded £485,000 (NWDA and
ERDF funding) to IDEAS (Innovation Design Entrepreneurship and
Science) at Daresbury to deliver a programme to drive innovation
into 40 regional SMEs over a 16 month period.
— Has invested £4.7 million in
the Composites Certification and Evaluation Centre, which will
support companies in the aerospace supply chain by conducting
research towards the development of lighter and more fuel efficient
aircraft. The investment is complemented by £2.5 million
from the University of Manchester.
22. NWDA is also being clear about its immediate
support for helping business. The Agency is committed to a prompt
payment target of 10 days and is encouraging public sector
partners to do likewise. Through Business Link, mechanisms have
been put in place to gather intelligence via CBI, IoD, FSB and
regional sectors, about business performance and difficulties
being encountered. At the end of March 2009 NWDA had paid
92% of its suppliers within 10 working days; and 99% within
30 working days. This compares to the CBI standard target
of 95% of payments made within 30 working days.
23. We are reporting both to the region
and to central Government on what is happening in the market and
advising on need. We have pressed hard on issues such as Empty
Property Relief and on Credit Insurance.
A small portfolio of case studies is included
at Appendix 1, to provide a snapshot of the type of business support
that NWDA and Business Link is providing.
Working with the Banks
24. In response to the issues raised NWDA
and Business Link have established joint working at senior level
within the region with the Royal Bank of Scotland (RBS); HSBC;
Lloyds/TSB/HBOS Barclays and Co-op.
25. As a result RBS has been pro-active
and has made a £250 million regional fund available
to the region's SMEs. It is also clearly making use of, and promoting
Enterprise Finance Guarantee. In addition Business Link staff
are now aligned to RBS staff in sub regions and are jointly providing
"buddying" support to SMEs.
26. Business Link has also held joint events
with the staff and customers of Lloyds/TSB/HBOS.
27. It is becoming clearer now that viable
businesses can get help from the banks and the public sector through
various products presented under "Real Help Now". There
is generally a positive feel from business that Government has
been working hard to keep businesses and individuals informed
of available support. The production of "Real Help for the
North West" has enabled the region to be more specific on
business support, highlighting the key products in the region.
The Labour Market
28. NWDA, at the beginning of the recession
worked closely with Jobcentreplus to obtain early information
around redundancy notification. This enabled a co-ordinated and
concerted effort by NWDA, Jobcentreplus, LSC, ACAS and HMRC to
ensure appropriate support to those companies facing closure and
where there is no alternative to closure to enable the region
to be prepared for the impact on the labour market and to support
the individuals affected. To date 30 cases of rapid response
have been delivered.
29. JEC has agreed accelerated programmes
to develop and safeguard apprenticeships and NWDA is working closely
with the public sector to ensure that it participates fully to
enable the region contribute effectively to the national Modern
Apprenticeship targets. NWDA is already piloting the scheme within
its own organisation.
30. NWDA recently agreed to provide graduate
bursaries for students to study at the region's universities to
ensure greater impact within our growth sectors and to retain
talent in the Northwest. Around 150 bursaries will be provided,
each between £1,000-£1,500. NWDA is currently working
with the NW Universities Association to determine the formula
and arrangements for distribution.
Public Infrastructure and Investment
31. In terms of capital investment NWDA
has brought forward £20 million from its 2010-11 budget
into 2009-10. This resource has been provisionally allocated against
projects in RES priority locations ie Liverpool and Manchester
commercial districts, the Irwell Corridor and the Energy coast.
NWDA has also provided £4 million for the preliminary
work on the Carlisle Northern Development Route.
32. The Agency is actively monitoring a
number of large regeneration schemes under development across
the region, and has stepped in on a number of existing key schemes
to ensure that momentum continues and that jobs are retained on
site.
33. We have also lobbied to support the
£670 million 25-year GM Waste Disposal Authority PFI
scheme to provide state of art recycling facilities for the sub
region over the next five years; and the £90 million
capital development at Bolton and Liverpool FE Colleges.
34. The JEC Housing Sub Group identified
20 primary sites and 25 secondary sites, for housing
priorities in the region and the Agency is working with HCA to
develop specific proposals to overcome the barriers to enable
each site to be developed.
Impact on communities
35. NWDA is working with the Voluntary sector
and other partners to ensure that individuals have access to appropriate
debt advice in the short term and more strategically that the
region utilises its diversity to bring about the longer term economic
prosperity of the region.
PREPARING FOR
RECOVERY
36. It is critical that, despite the pressing
short term needs of business, the region focuses on the long term
strategy for the sustainable growth of the region. JEC identified
four long term priorities to lead the region into recovery:
— The Energy Coast—(the brand name
developed for the West Cumbria Masterplan)—was established
around two years ago by West Cumbria partners, under the auspices
of the West Cumbria Strategic Forum, to set out an integrated
regeneration strategy to help minimise the impact of the nuclear
decommissioning of Sellafield. NWDA has supported the Energy Coast
and has helped ensure that Cumbria Vision has recognised the opportunities
that the Energy Coast presents to Cumbria and the North West more
generally. The Agency has also ensured that West Lakes Renaissance
URC has prioritised the key Energy Coast programmes and projects
into its Business Plan. Projects include the national nuclear
laboratory; nuclear skills academy; University of Cumbria; a new
hospital for West Cumbria; and new nuclear build. In addition,
NWDA has directly supported key projects such as the University
of Cumbria that will have a direct benefit for West Cumbria.
— Atlantic Gateway—this exciting
development is looking at how the region capitalises on the potential
and assets of Liverpool and Manchester and the areas between to
drive long term sustainable development in the region. The area
has the potential for
— £50 billion extra GVA growth
over the next 10 years.
— 100,000 more jobs by 2015.
— The right sectors in the right place
and room to grow.
— Developing the synergies between two
city regions.
NWDA, in agreement with all the relevant local authority
leaders, is driving forward the production of a masterplan of
all the area's major assets and opportunities.
— Renewables—NWDA is working with
partners to enable the region to grasp the opportunities presented
by the low carbon economy to build a world leading renewables
sector.
— Creative and Digital Industries—building
on the continued growth of the sector and capitalising on future
opportunities. Working with Peel Holdings NWDA is ensuring the
development of Media City UK as a global centre for business and
digital and creative industries, complementing that of London,
to provide a significant boost to the NW and UK economies.
— NWDA is also looking to provide support
to for Next Generation Access (NGA)—a telecommunications
infrastructure that will provide exceptionally fast connection
speeds to the Internet. NGA has a critical role to play to increase
productivity and innovation across all sectors; and deployment
is underway in a growing number of countries. In the UK private
sector interest in NGA is limited; and therefore to enable the
Northwest to continue to attract inward investment and remain
competitive as a business location NWDA will look to lead public
sector support to enable NGA in the Northwest.
37. The current Regional Economic Strategy
sets out the region's economic vision and priorities. However
Northwest partners are now working on the development of the new
single Regional Strategy, which will bring together spatial, economic,
social and environmental strategies and ensure that we can deliver
truly sustainable long term growth within the region and that
all public agencies' investment is aligned behind an agreed strategy,
to maximise efficient use of public money.
38. The Northwest is ahead of other regions
in the development of an integrated Regional Strategy. NWDA, with
4NW (the Regional Leaders Forum) published a Principles and Issues
paper for 12 weeks of consultation, to inform the development
of the Strategy. This concluded at the end of April and attracted
widespread interest from the public, private and voluntary sectors.
NWDA is now assimilating the responses which will help to determine
the strategy to respond to the long term challenges and opportunities
that face the region.
APPENDIX 1
PORTFOLIO OF CASE STUDIES
The following case studies provide examples
of how NWDA and Business Link has provided direct financial support
or facilitated support to companies to enable them under the current
economic climate, to continue to trade or to expand to meet business
demand and secure their position.
TRM Packaging Ltd, Burscough
NWDA has provided £1.2 million from
the Grants For Business Programme towards this company's £12 million
investment in plant and machinery to increase capacity and capability.
The company manufactures corrugated packaging mainly for the food
industry and NWDA's assistance will enable it to increase sales
from £30 million to £40 million over the next
three years as well as safeguarding 227 jobs.
Indespension Ltd, Bolton
NWDA has provided £163,000 financial
assistance via the Grants for Business programme to help this
company purchase a Laser Cutting machines and Press Brake to enable
the manufacture of in-house components, which in turn will improve
competitiveness. The company is a market—leading designer,
manufacturer and vendor of a comprehensive range of trailers and
associated products.
North West Engineering, Morecambe
NWDA is providing assistance via the Transitional
Loan Fund of £200,000 to safeguard 70 jobs and
create 15 new ones. Established in 1999, the company has
developed into a sophisticated operation with professional business
practices and information systems to support its highly skilled
workforce. After the acquisition of a competitor company and a
number of relocations within the region in recent years, the current
economic climate has resulted in a downturn of orders, causing
increased cash flow pressure. The loan will enable the company
to maintain operations and secure new business.
North West Recycling Ltd, Carlisle
NWDA has provided £230,000 towards
this company's start up costs. The company will develop a recycling
facility for processing construction and related waste streams.
It will provide 32 new jobs over an 18 month period.
Norlec Engineering, Leyland
This company was one of the first to receive
funding from the Transitional Loan Fund. Norlec Engineering supplies
sheet metal components to manufacturing companies and suffered
a significant decline in sales to key sectors, including transport,
automotive and construction due to the difficult global economic
conditions. The loan will ensure that up to 94 people remain
in their jobs at Norlec, as well as creating opportunities for
the company to diversify its customer base and grow the number
of sales to potential new customers.
Sulzer Pumps, Bootle
45 jobs were created as a result of £550,000 NWDA
funding via the "Grants for Business Investment". Sulzer
Pumps (UK) Ltd. is part of the Swiss company Sulzer AG and specialises
in the manufacture of pump packages and associated spare parts
and repairs for the oil and gas and power sectors. Due to a rapid
growth in business since 2004, Sulzer required additional capacity
to increase levels of production. With its Leeds site operating
close to maximum capacity, the company began to look for a new
site in an alternative area of the UK. The closure of the Rolls
Royce site at Atlantic Park in Bootle and the redundancy of more
than 200 skilled workers presented Sulzer with a significant
opportunity to offer 45 posts to staff with the right set
of skills and experience. It also meant the company could lease
premises ideally suited to cope with the highly specialised operation.
Lucy's of Ambleside
NWDA awarded the Lake District based company,
£250,000 from the Transitional Loan Fund to provide
working capital to enable the company to secure its future growth.
The company consists of a combination of a delicatessen, mail
order, caf
and restaurant, outside catering, wine bar
and bistro and a cookery school.
Laila's Fine Foods, Blackpool
NWDA awarded £250,000 from the Transitional
Loan Fund to allow this company to expand. The company produces
and supplies award winning Indian food to a number of companies,
including supermarket groups in the UK and Europe; and currently
employs over 100 people. They have developed many new products
and have won contracts with Asda, Morrisons and Aldi, which will
result in a three fold increase in turnover during 2009 with
a further 30% increase in 2010.
Acton Bridge Garden Centre, Northwich
NWDA has provided a £50,000 loan as
part of the Small Loans Business programme to this company. Established
in 2007, the company supplies horticultural products to the retail
sector. Keen to expand and with ambitions for further growth,
the venture ran into trouble after they were refused a traditional
loan. Despite sound business plans, it was unable to obtain additional
finance to supplement the substantial amount of personal capital
that had already been put into the business. The company will
now be able to expand into the lucrative wholesale market, with
products ready for sale in time for the high seasonal demand in
summer.
Locksmith/Security, Lancashire
This company, which has been established for
20 years ,had a three year loan with Barclays of £22.5,000 at
12% over the base rate; and a loan of £20,000 with Bolton
Business Ventures. Barclays declined an increased in facilities
to assist with a relatively small expansion of the business. Following
intervention by Business Link,. The Royal Bank of Scotland agreed
a £20,000 loan under the Enterprise Finance Guarantee
Scheme plus a £15,000 loan to repay the Barclays loan—both
at 5% over the base rate over 10 years and the businesses
continues to repay the Bolton Business Ventures loan as agreed.
The company's total borrowings are now £55,000 but the
majority at a lower interest rate on a longer term repayment schedule.
Retail/Catering, Cumbria
The company, which has been established for
27 years, was referred to Business Link by its own bank,
Natwest. Due to recent business issues, NatWest had reached the
limit of its assistance and had been unable to approve an increase
in facilities as requested but due to a good relationship and
previous trading history, wanted to continue to provide support.
A transitional loan of £250,000 was provided as well
as the Nat West agreeing to restructure the company's finances
though a Enterprise Finance Guarantee.
Property Developer, Merseyside
The company had a business loan of £195,000 from
Yorkshire Bank to finance the purchase of a residential property
to be converted to flats. Verbal agreement had been given by the
bank to provide a further loan upon receipt of planning permission
for the conversion. Planning permission was subsequently obtained
but the Bank then refused the additional advance and also requested
full repayment of the existing loan despite no default in repayments,
leaving the business faced with a forced-sale situation and unlikely
to achieve repayment of debt. In addition the bank requested a
1% exit fee and a £500 per month review fee. Through
intervention by Business Link the company was able to secure a
loan of £195,000 from a business finance company, to
repay the Yorkshire Bank loan plus a further advance £200,000 to
complete the flats. A further £85,000 was raised by
the directors through a private investor. Business Link also encouraged
the company to contact Yorkshire Bank regarding the excess fees
being charged, which were subsequently removed until the new finance
was drawn and the bank repaid.
Key Forensic Services Ltd, Warrington
The company was formed in 2005 to provide
forensic services to the UK's law enforcement agencies, to take
advantage of the structural changes taking place in the forensic
services market. Originally founded in the Midlands, the company,
which also has a number of facilities across the country is set
to become a major player in forensic services; and is making a
significant investment at its Warrington site, as a result of
the NWDA grant to expand the services being offered in England's
Northwest. A £65,000 Grant for Business Investment award
has enabled the company to install and equip specialist laboratories
to provide a range of services in addition to DNA profiling.
Accrol Papers Ltd, Lancashire
Established in 1993, this company is one of
Europe's largest independent paper converters with manufacturing
capacity in excess of 40,000 tonnes per annum. It currently
has 35 full time employees and has seen sales increase from
£7 million in 2005 to £27 million in
the last financial Year. Since 2004, it has been working on a
modernisation programme, investing £3 million in 2008 in
new plant and machinery; and plans to invest a further £1 million
in additional equipment. NWDA has recently provided a £175,000 Grant
for Business Investment to allow the company to continue with
its investment and create a further 40 jobs by 2012. Turnover
is expected to increase to £60 million within five years.
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