Inflation slows
UK inflation slowed in December, according to new figures from the Office for National Statistics (ONS).
Measured by the Consumer Prices Index (CPI), inflation came in at 2.5% in the 12 months to December, down from 2.6% in November, and lower than expectations.
Significant downward contributions to the change came from restaurants and hotels, alcohol and tobacco, and clothing.
Core inflation, meanwhile, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, stood at 3.2% in the 12 months to December, decreasing from 3.5% in November.
Martin Sartorius, Principal Economist, CBI, said: “Inflation remained moderately above the Bank of England’s 2% target in December, reflecting the impact of ongoing price pressures such as strong wage growth. Looking ahead, we expect inflation will stay elevated this year, partly due to Autumn Budget measures contributing to higher prices.
“Persistent, above-target inflation supports our expectation that the Monetary Policy Committee will loosen policy at a gradual, quarterly pace throughout 2025. The next rate cut is still likely to come in February, which will bring some respite for businesses and households as they continue to face high borrowing costs.”
Roads Minister visits Derbyshire factory to learn of pothole repair technology
Future of Roads Minister Lilian Greenwood has visited Derbyshire – home of the worst potholes in the country, according to the RAC – to see cutting-edge technology helping councils tackle potholes.
She visited the JCB power systems plant at Foston the Minister spoke to engineers to learn about the latest innovations being used to tackle the pothole plague. She will operate JCB’s ‘pothole pro’, a machine that can fix a pothole in eight minutes, with a cost of around £30. The ‘pothole pro’ is currently used by 20 local authorities.
A £1.6bn investment in pothole repair nationally includes an additional £20 million for the East Midlands County Combined Authority, that will enable councils to fix up to 7 million more potholes.
She said: “Potholes are a clear sign of decline in our infrastructure and for too long roads like those in Derbyshire have been left in a state that endangers and costs road users.
“It’s time for change and we are investing £1.6 billion to fix up to 7 million more potholes across England this year, including over £75 million for the East Midlands Combined Authority.
“JCB’s ‘pothole pro’ is one of the many great examples of using new technology to repair potholes faster and demonstrates how companies are harnessing new technology to repair potholes faster.”
Ben Rawding, JCB’s general manager, municipalities, said: “Last month’s announcement by the Department of Transport of £1.6 billion of funding for road repairs in England during 2025 is very welcome. Our appeal to the Minister will be for this funding to be spent wisely to ensure permanent long-term repairs become the priority for local authorities making best use of value-adding, productive technology such as the JCB pothole pro.”
Rail support specialist acquired by Austrian company
Harry Needle Railroad Company – the independent provider of locomotive hire, storage and maintenance – has been acquired by the Austrian rail contractor Swietelsky for an eight-figure sum.
The deal will enable founder Harry Needle to realise his majority share in the business while continuing in his role as Managing Director, and allow Swietelsky to expand its operations in the UK with the addition of a 15-acre facility in Worksop that is one of the largest of its type in the country.
It will also provide an exit for Harry Needle’s main funder, Frontier Development Capital (FDC), which supported the acquisition of the Worksop site five years ago and the subsequent growth of the business.
Established in 1999 by former paratrooper Harry Needle, Harry Needle Railroad Company started out recovering spares from redundant rolling stock and went on to acquire a fleet of locomotives for hire. In 2019, with backing from FDC, it acquired the derelict former rail depot in Worksop and invested £8m to convert it into a complete operations centre.
The site, which has its own testing facilities, can accommodate up to 20 vehicles per week for repair, refurbishment, and maintenance. Together with its original site in Chesterfield, the company can offer storage for up to 700 railway vehicles.
Harry Needle now employs around 30 staff across the two sites and offers locomotive hire and storage services to manufacturers and operators including Alstom, Porterbrook and South Eastern. Since acquiring the Worksop site, it has grown turnover by 600%.
Swietelsky, one of Austria’s leading construction companies, is also Europe’s largest privately-owned track maintenance contractor. It currently operates UK sites in Reading, Manchester and Glasgow through its joint venture with Babcock.
Harry Needle, Managing Director at Harry Needle Railroad Company, said: “Over the past five years our business has grown to become a UK leader in rail support services. Joining forces with Swietelsky will give us the right structure and support to take it to the next level.
“FDC’s backing has been crucial to the transformation of our Worksop facility and the significant growth of the company and we thank them for their support. We look forward to working with the Swietelsky team as the business begins the next stage of its growth journey.”
FDC provided investment from its Rail Supply Growth Fund.
Jack Glonek, Investment Director at FDC, said: “Harry Needle Railroad Company was already successful but with the acquisition of the Worksop site, it began a new era that saw it become a leader in its field. It has been a privilege working with Harry and his team, supporting them with multiple investments and watching the business go from strength to strength.”
Marcus Mayers of specialist rail consultancy RASIC advised Harry Needle Railroad Company on the sale.
Central Foods makes business development manager promotion
Frozen food distributor Central Foods has promoted Mackenzie Roper to business development manager.
Mackenzie, who joined Central Foods in January 2023 as a sales executive, has also been named Salesperson of the Year at the company, which is one of the country’s leading frozen food distributors to the food service sector.
Central Foods MD Oli Sampson said: “Mackenzie is a first-class operator and has worked hard since joining Central Foods two years ago.
“His promotion to business development manager is very well deserved and we congratulate him on his new position.”
Central Foods currently sells to over 200 independent wholesalers, as well as larger national and regional wholesalers.
The company, which is based in Northamptonshire, is proud to be a catering partner across the whole food service sector, supplying to hotels, restaurants, bars, universities, schools, pubs, care homes, garden centres, leisure outlets and more.
Mackenzie said: “I am proud to be continuing my career with this great company and can’t thank the team enough for their continued support.
“My appointment has come at an exciting time for the business with lots to look forward to.”
Games Workshop reports best first half-year performance
Games Workshop, the Nottingham-based manufacturer of miniature wargames, has reported its best first half performance.
According to half-yearly results for the 26 week period ended 1 December 2024, revenue at the business jumped to £299.5m from £247.7m in the same period of the year prior. Pre-tax profit, meanwhile, grew to £126.8m from £95.2m.
Kevin Rountree, CEO of Games Workshop, said: “I’m delighted to report our best first half-year performance. A huge thank you to our staff, customers, trade accounts and broader stakeholders for their ongoing support.”
Games Workshop noted that it is not expecting any material impact on its financial performance for the year to May 2025 following the UK’s Autumn Budget (e.g. increases to the National Living Wage), as it already pays all UK staff, as a minimum, close to the new level. The business noted however that it may drive third party input cost increases in 2025/2026. The firm added that it is busy progressing the construction of its fourth factory at its HQ in Nottingham, which is due to be completed in the summer of 2026, while Games Workshop’s new paint factory at nearby Easter Park will be operational this financial year.The company recently concluded negotiations with Amazon for the adaption of Games Workshop’s Warhammer 40,000 universe into films and television series, together with associated merchandising rights.
2025 Business Predictions: Claire Taylor, Director, Creationz Marketing
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Claire Taylor, Director at Creationz Marketing.
Tough trading conditions call for smarter marketing
With economic challenges predicted for 2025, many businesses may be tempted to scale back marketing budgets. However, history shows that businesses maintaining or even increasing their visibility during downturns often emerge stronger. The focus will shift to smarter, data-driven marketing strategies that maximise ROI, ensuring every campaign delivers measurable results. Companies that stay visible and connected with their audiences will be better positioned to weather the storm and seize opportunities. Clever Marketing will be the order of the day!
AI continues to change the face of Marketing
AI will continue to be a powerful tool in marketing, changing how businesses create and deliver content. However, the rise of AI-generated material will increase the need for brands to retain their human touch. Consumers will crave authentic connections, leading to a surge in storytelling, behind-the-scenes content, and personalised interactions. Successful businesses will strike a balance—leveraging AI for efficiency while ensuring their marketing remains relatable, engaging, and uniquely human.
As the top two predictions look at the Marketing industry, it is important to also look at the skills and competencies of what it takes to be a marketer in 2025.
Curiosity and adaptability will define successful marketers
With new tools, communication channels, and approaches emerging year on year, Marketers will need to be more curious than ever—embracing change, exploring innovative methods, and continually upskilling. Agile and flexible professionals will stand out, as the ability to adapt will become a core requirement. Seeking guidance through coaching and mentoring will be essential for marketers to navigate the complexities of their roles, grow their expertise, and thrive in this dynamic environment.
Small business owners invited to make a huge difference to children and young people
Entrepreneurs and small business owners are being invited to make a huge difference to children and young people across the country by joining the NSPCC’s Partners in Business initiative.
Dozens of organisations across the country have already signed up to the scheme to support the charity’s vital work through donations, one-off events or a year of fundraising, with 50 participants raising enough to fund 2,200 Childline counselling sessions in 2024.
Partners in Business offers support, guidance and fundraising inspiration to participants for up to a year, while sharing information about new and existing NSPCC campaigns and services in the region.
Nathan Shrubb, NSPCC Partners In Business manager, said participants’ activity could range from making a donation, completing a one-off fundraising activity or choosing the NSPCC as their charity of choice for the year.
He said: “Our Partners in Business have done fantastic work in the last 12 months, with fundraising events helping to support the NSPCC’s vital work with children and young people across the country.
“We also know that their support of the NSPCC can be a benefit to their brand reputation and trust amongst customers, while a recent survey also showed staff feel more proud to work for companies in a charity partnership with the NSPCC. We would love to welcome more small businesses and entrepreneurs into Partners in Business in 2025.”
Businesses which sign up receive regular details about the charity’s work in their local region, as well as fundraising advice and support from NSPCC experts who will make sure fundraising activities are fun, inclusive and successful.
Marcus Phoenix, Director of Midlands-based Candy Castle Animations Ltd, said: “Being there for young people as early as possible is the best way to ensure a bright and nurturing future for them. It is our responsibility collectively to ensure they are protected and cared for.
“We support the NSPCC in every way we can, from making direct donations to making donations instead of sending printed Christmas cards to our partners and customers. Partners in Business makes it easier to be aware of ways you can support the NSPCC and have access to everything you need to make an impact.”
Every £50 raised for the NSPCC could support parents and families for two hours, £500 could fund a Helpline practitioner give 22 hours of support to adults concerned about a child’s wellbeing, while £4,800 could recruit, train and support three new Childline volunteers to speak directly to young people in their darkest hours.
East Midlands output growth quickens to fastest for three months
Latest Regional Growth Tracker survey data from NatWest signalled a sharper upturn in business activity at East Midlands firms as 2024 came to a close.
The headline NatWest East Midlands Business Activity Index picked up to 50.7 in December, from 50.1 in November. The latest data indicated a marginal expansion in output across the region’s private sector, but one that was the steepest for three months.
That said, the rise in activity belied a faster decline in new business in December. The quicker fall in new orders led firms to cut their staffing levels sharply as backlogs of work were depleted to the greatest extent in 15 months. Cuts to part-time work and the non-replacement of voluntary leavers in a bid to lower costs were key drivers of the fall in employment, according to panellists.
Despite subdued demand conditions, firms were able to hike their selling prices at a faster pace in December in response to sharper input cost inflation. Anecdotal evidence stated that companies sought to pass through higher costs to customers. At the same time, the degree of confidence in the outlook improved to the strongest since last September.
Lisa Phillips, Regional Managing Director, Midlands and East, Commercial Mid Markets, said: “The East Midlands private sector ended 2024 on a mixed footing as, despite a sharper rise in output, new business contracted to a greater extent. Cost cutting remained a key priority as customers and businesses alike reduced their spending. As such, employment declined at the fastest pace since August 2020 amid greater evidence of spare capacity.
“On a more positive note, although input prices increased at a quicker pace, firms were able to pass-through higher costs to customers via the fastest rise in output charges since March 2024. Confidence to hike selling prices reflected greater optimism in the outlook for output, with expectations the strongest since last September.”
Performance in relation to UK
The East Midlands was one of only three monitored regions and areas of the UK to register a rise in output during December, alongside London and the North East. Moreover, the pace of activity growth seen in the region was slightly faster than the UK average.
East Midlands firms recorded a third successive monthly decline in new orders in the final month of 2024. Moreover, the pace of contraction quickened to the fastest since last June and was moderate overall. The rate of decrease was sharper than the UK average, however.
Nevertheless, companies were more upbeat in their expectations regarding output levels in the coming year in December. The degree of confidence in a rise in activity over the next 12 months was the strongest in three months and broadly in line with the long-run series average. Firms in the East Midlands were the most optimistic of the 12 UK regions and areas monitored by the survey.
December data signalled a loss of jobs across the East Midlands private sector, as has been the case on a monthly basis since July 2023. The pace of decline in employment quickened substantially, and was the steepest since August 2020. Moreover, the rate of job shedding was sharper than the UK average, with only Wales, the South East and West Midlands registering greater decreases in staffing levels.
Meanwhile, spare capacity reportedly burgeoned as backlogs of work contracted at the quickest pace since September 2023. Reduced new order inflows enabled firms to process outstanding business, according to anecdotal evidence.
East Midlands businesses registered a faster rise in input prices during the final month of 2024, with cost burdens increasing at the sharpest pace since last July. The rate of cost inflation was slightly softer than the UK average, however.
Despite weak demand conditions, firms were able to raise their selling prices at a steeper pace in December. The rate of inflation was the quickest since last March and was slightly faster than the UK average.
Daltons Wadkin appoints new specialist to drive Fiber Laser growth
Daltons Wadkin, a Nottingham-based multi-material machine solution supplier, has expanded its team by hiring a specialist to lead the company’s fiber laser and sheet metal offering.
Adrian Wright has joined the family-run business as a Fiber Laser Sales Manager, bringing over three decades of experience in the fiber laser and sheet metal market, working for some of the most prestigious names in the industry.
He will now lead on managing Daltons Wadkin’s exclusive partnership with CNC and fiber laser producers, Kimla, to grow the fiber laser installations across the UK and Ireland.
In 2022, Daltons Wadkin announced that it had become the sole distributor for Kimla’s range of CNC routers and fiber laser cutters, following a 15-year partnership.
Managing Director Alex Dalton said: “We’re excited to welcome Adrian to lead our fiber laser division. His deep expertise in the sheet metal arena and fiber laser sector is exactly what we need to propel our growth.
“Kimla’s fiber laser technology is truly cutting-edge, supported by our robust network of trained engineers across the UK and Ireland. Adrian’s appointment is the final piece, allowing us to bring these components together and advance confidently in the market with a dedicated expert.”
Adrian Wright said: “I can’t wait to join the team at Dalton Wadkin, and especially the fantastic opportunity to show customers and companies alike the Kimla range of products, including the incredible Kimla Fiber Lasers machines.
“Kimla and Dalton Wadkin have built up a tremendously close working relationship over the past 15 years, and I intend to fully utilise and embrace introducing these machines to customers.
“Key to our success will be showcasing our machines to their fullest potential via live demonstrations in either Nottingham or Poland. Kimla are not just machine builders but are true innovators invested in developing the fiber laser machine from the ground up.
“Designing and manufacturing their own linear motors, coupled with their unique machine design, are just two examples of what makes a Kimla Fiber machine cut materials faster with unrivalled part quality.”
Fire-damaged former cinema to go under the hammer as redevelopment opportunity
The former Savoy Cinema in Spalding, which, with a 1,500-person seating capacity, was Lincolnshire’s largest cinema when it opened in 1937, is to go up for auction this month with a guide price of £250,000-£270,000.
Converted to a bingo hall after audiences declined in the 1970s, the imposing building was damaged extensively by a fire in 2021 and has since remained disused.
Now the 15,000 sq ft cinema, which stands on a 0.7 acre site, is being offered for sale by joint auctioneers SDL Property Auctions and Eddisons Peterborough.
The auctioneers believe the building would be suitable for redevelopment and South Holland District Council has confirmed it would support proposals for a mixed-use commercial and residential scheme on the site. The Westlode Street property is close to the town centre, within Spalding’s conservation area.
Andrew Parker, auctioneer and partner at SDL Property Auctions, said: “This was once a splendid building that was a real asset to the town of Spalding and it has been disused and unloved for over three years since the fire.
“It would be great to see an imaginative mixed-use scheme bring the site back to life, perhaps retaining the original 1930s art-deco façade. Needless to say, the council’s support for a redevelopment scheme makes this a fantastic investment opportunity.”
