Business battles on – through a challenging year
In a busy year for business the team from the WMN’s sister website, BusinessLive, look back over 12 months
DESPITE the pandemic – or in some cases because of it – it has been a busy 12 months for Westcountry businesses.
» January
Before the first confirmed cases of Covid at the end of the month, 2020 looked set to be a strong year for the South West.
Then-chancellor Sajid Javid said farmers could enter the new year with “confidence” and would be able to “thrive” after Brexit as he confirmed just under £3 billion of funding for 2020.
Lloyds Banking Group announced plans to lend £1.5 billion to the region’s firms to help start-ups and scale-ups across the West Country to grow. It was part of an £18 billion national stimulus package for 2020.
Plymouth’s labour market was also doing well, new data from the Office for National Statistics (ONS) revealed.
Openreach also confirmed it was planning to make ultrafast broadband available in 27 market towns and villages across Cornwall, Devon, Torbay, Dorset and Somerset, setting a target to reach four million homes and businesses with ‘full fibre’ technology by the end of March 2021.
And CBI Director General Dame Carolyn Fairbairn said 2020 should mark a “decade of delivery” for the South West, calling for a cabinet minister to champion the region in government.
» February
On February 6, the third UK national tested positive for coronavirus after contracting the illness at a conference in Singapore; by February 10, the number of cases within Britain had reached eight. That same day, the Government introduced new powers to forcibly quarantine people, declaring the outbreak a “serious and imminent threat” to public health.
The Federation of Small Businesses (FSB) appointed Lee Nathan, 35, as chair for the South West – the youngest FSB regional chair in the country.
The chief executive of defence giant Babcock International Group Plc retired after three years in charge, while the boss of pub chain Admiral Taverns, Kevin Georgel, left the company to take over as new chief executive of St Austell Brewery pub and beer empire. The chief executive of Plymouth Waterfront Partnership, Sarah Gibson, also quit in February to take over at the University of Plymouth’s Students’ Union instead.
British Airways announced it was taking on flights from Newquay to Heathrow after Flybe scrapped the route and Cornwall Airport Newquay announced Pete Downes would be joining as its new managing director.
Princess Anne visited marine tech company Valeport, in Totnes, to mark the firm’s 50th anniversary.
Luxury Plymouth boat maker Princess Yachts had an “unprecedented” sales success at the world’s biggest indoor boat show after selling £30 million of vessels and Essexhead quartered Cruise and Maritime Voyages confirmed plans to start sailings from Plymouth in 2021.
» March
Chancellor Rishi Sunak unveiled his first Budget of the new majority Conservative government, including a raft of measures to deal with the coronavirus outbreak. He also announced funding to fix the A303 near Stonehenge.
Cinema chain Cineworld said the spread of coronavirus would not impact on the release dates of other movie blockbusters despite the new James Bond adventure being delayed, and stressed it was still expecting to announce profits of more than US$1 billion.
Blue Islands announced it would take over the former Flybe route from Exeter to Manchester and Brittany Ferries completed the purchase of Channel Islands-based Condor Ferries after the deal was given approval by competition watchdogs.
Devon-based utilities giant Pennon also entered into an agreement to sell Viridor, its recycling and waste business, for £4.2 billion.
By March 16, Brittany Ferries confirmed it had suspended more passenger services between the UK and France and said it would only be providing a “lifeline” service for people who need to get home from Spain.
On March 17, Chancellor Rishi Sunak unveiled an “unprecedented” £330 billion guarantee package for businesses as the Government battled to support the economy amid the coronavirus crisis.
Prime Minister Boris Johnson put Britain into lockdown on March 23 as the battle against coronavirus entered a new phase.
By the end of the month, Cornwall’s airport has been forced to shut and suspend its flights, Airbus had sent more than 5,000 UK workers home for an early Easter break, while the UK’s largest luxury yacht maker, Princess Yachts, had ceased operations and sent the vast majority of its 3,000 workers home for “the foreseeable future”.
The workforce constructing the new Hinkley nuclear power station was also reduced by more than half to around 2,000 because of the coronavirus pandemic.
» April
Businesses across the UK implemented measures to try to stay afloat in a pandemic. The UK Government’s Coronavirus Job Retention Scheme went live, giving workers 80% of their usual earnings, capped at £2,500 per month.
Rolls-Royce announced it was reducing the salary of its global workforce by at least 10% and UK land and property giant Henry Boot confirmed it was furloughing some of its staff after a “reduction in activity”. Debenhams also entered administration for the second time in 12 months.
Defence and engineering giant Babcock International Group stressed it would continue carrying out vital defence work at its dockyard sites in England and Scotland despite the coronavirus lockdown. In Plymouth, it sent some of its 5,500-strong workforce home but said employees engaged in defence work were still in action at Devonport Dockyard.
Princess Yachts said chancellor Rishi Sunak’s new loan scheme for mid-sized businesses had secured its future and protected nearly 18,000 workers around the country.
The inaugural West Country Boat Show was pushed back to June 2021 because of the pandemic, while Plymouth’s Theatre Royal called for support. Great Western Railway named one of its trains after veteran fundraiser Captain Sir Tom Moore to mark his 100th birthday on April 30.
»May
SME manufacturers in the South
West made an urgent call for greater financial support with plummeting sales, profits and production volumes.
Universal claimant numbers topped 300,000 in the South West. Exeter inventor Oli Yeo of Griphero found new custom from petrol stations across the USA for his nozzlemounted hand protection and Paignton-based horticultural supplier Suttons saw record sales.
» June
Lockdown is eased and shops allowed to re-open but figures reveal more than 650,000 workers still furloughed. Torquay’s Living Coasts announces permanent closure and Plymouth’s Marine Aquarium remains closed. It still has to spend up to £10,000 a day to keep the attraction, and its 5,000 sea creatures, in tip-top shape and reported losses of more than £1 million during lockdown.
Travel continued to open up with airline KLM resuming flights from Bristol and Brittany Ferries announcing crossings to France and Spain with occupancy at about 40%.
» July
Pubs were allowed to re-open. South West Water said it had received requests from 1,100 pubs and breweries across Cornwall, Devon and small parts of Dorset and Somerset to allow them to pour beer down the
drain before replenishing stocks.
Home drinkers saved the fortunes of Cornish gin distillery Tarquin’s Gin when it lost half its business during the pandemic. Tarquin’s Cornish Gin, named as one of Britain’s fastest growing before the coronavirus pandemic struck, received a huge boost from online sales. Mining company Cornish Lithium raises nearly £1 million to drill for lithium. The funding will allow further exploration for lithium in the Duchy, in both geothermal waters and in hard rock.
The boss of Exeter Airport urged the Government to protect the aviation sector and thousands of workers as airports across the UK are forecast to lose £4 billion.
» August
The Government’s Eat Out to Help Out scheme was launched and more than 5,000 South West restaurants signed up in the first five days.
In Plymouth, engineering giant Babcock International Group Plc scrapped its dividend as underlying revenue for the first quarter fell by 11% compared with 2019.
Plymouth’s Theatre Royal joined theatres from across the UK in turning red as part of a national day of action calling on the Government for financial help.
And hopes were high for a revival of Appledore Shipyard after its sale to Infrastrata, the asset management company which owns the famous Harland & Wolff Shipyard in Northern Ireland in a £7 million deal – promising a huge economic boost for the region and 350 jobs.
» September
It was announced that almost 170 staff were to lose their jobs at Cornwall’s Eden Project, after the environmental and educational charity, based just outside St Austell, was forced to close its doors to fee-paying visitors for more than three months, which devastated its finances.
Cornwall’s Sharp’s Brewery toasted success in the World Beer Awards 2020 with one of its brews named the best on the planet.
The “game-changing” £1 million robotic Mayflower Autonomous Ship (MAS) was christened in Plymouth exactly 400 years to the day that the Mayflower sailed for America.
Utility giant South West Water announced it would hand out £20 million to customers who could choose whether to take the bounty as a £20 discount from their bill or shares in the company. The Exeterheadquartered firm shared the cash after beating its targets.
JD Wetherspoon boss Tim Martin called the Government’s curfew on the pub and restaurant trade “nuts” and likely to encourage people to socialise more in their homes and risk spreading coronavirus further.
It was announced that a new aircraft maintenance company was being set up in Exeter, recruiting 100 mechanics and engineers with plans to more than double that number. Exeter Aerospace was established by Dublin Aerospace Group, the Irish aviation maintenance company, and will operate from the former Flybe Maintenance Services at Exeter Airport. The airline Flybe had collapsed in March, 2020, with the loss of 2,000 jobs.
» October
Exeter Airport was given a £1 million bail-out from East Devon District Council to stave off a “worst-case scenario” of closure. Utilities giant Pennon was named the biggest company in Devon and Cornwall in the Annual Business Guide: Top 150 businesses in Devon and Cornwall, published by BusinessLive and the Western Morning News. The Exeterbased firm, which owns South West Water and Bournemouth Water, boasted a turnover of almost £1.4 billion and over 5,000 employees.
»November
A second national lockdown was announced to run from November 5 to December 2. Home drinkers boosted sales for Somerset craft cider producer Harry’s Cider Company. The business lost about 70% of its trade sales overnight when the first lockdown forced the closure of pubs, bars and restaurants, but a boost in consumer sales since the end of March lifted overall figures back to almost 75% of where they were before.
The Government approved the £1.7 billion upgrade of the A303 past Stonehenge to include a two-mile tunnel underneath the World Heritage Site.
Property giant The British Land Company Plc revealed a half-year after-tax loss of £730 million as the coronavirus pandemic cut retail sales and footfall in its shopping centres. The company, which announced a £1.1 billion annual loss in May, 2020, has seen underlying profit fall by 29.6% to £107 million after being hit by the impact Covid19 and two national lockdowns. Its huge retail portfolio includes Drake Circus Shopping Centre and neighbouring The Barcode leisure complex in Plymouth, in addition to a large swathe of the city centre.
Defence giant Babcock International Plc saw profits fall by more than £100 million, blaming the coronavirus pandemic and the decline of civil aviation.
» December
Debenhams stores around the South West began closing down sales after JD Sports pulled out of rescue talks for the beleaguered department store chain. The firm was the last remaining bidder for Debenhams, which has been in administration since April. Debenhams confirmed it will move ahead with plans to close 124 UK outlets – including in Plymouth, Torbay, Exeter, Taunton and
Bristol – unless a new buyer comes forward.
Plymouth City Council said it was exploring the idea of reopening the city’s airport nearly a decade after it closed. It also appointed a specialist aviation consultant to approach potential operators to assess the market appetite for a private-sector company to restart flights.
Retail magnate Chris Dawson saw his The Range empire grow sales to nearly £1 billion. The Plymouthheadquartered company, officially named Norton Group Holdings Ltd, saw turnover leap 6% for the year to February, 2020. That means sales increased from £942.679 million to £999.972 million, due to an increased number of stores and fixed costs remaining static.
The Government handed a £2.7 million lifeline to more than 40 cinemas across the South West from the Culture Recovery Fund. In the South West, a total of £2,725,192 was allocated to 44 cinemas, including the WTW Cinema Ltd chain, Plymouth Arts Cinema, Newton Abbot’s Alexandra, and Totnes Cinema.
Shoe retailer Clarks’ shareholders approved a partnership with Asian private equity firm LionRock Capital, which will now acquire a majority stake in the business for £100 million. The rescue deal is expected to be completed in early 2021, with the Clark family remaining invested in the business. Clarks was founded in 1825 by brothers Cyrus and James Clark in Street, Somerset.