Business
Welsh output nears stabilisation as contraction in new business slows
THE HEADLINE NatWest Wales PMI Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – rose from 48.0 in December to 49.9 in January, to signal broadly unchanged output levels at Welsh businesses at the start of 2024.
The broad stabilisation in activity followed four successive monthly declines. Nonetheless, of the 12 monitored UK areas, only Wales and the North East posted a sub-50.0 reading. Where a decrease in activity was noted, Welsh companies linked this to further subdued demand conditions and a downturn in new orders.
Welsh private sector firms recorded an eighth successive monthly decline in new orders during January. Anecdotal evidence suggested the fall was due to subdued client demand and greater competition. That said, the rate of decline eased for the third month running to the slowest since last September.
The marginal drop in new orders contrasted with the UK trend which signalled a modest expansion.
Firms in Wales indicated strongly upbeat expectations regarding the outlook for output over the coming year in January. Greater optimism was attributed to planned investment in capacity expansion, new product launches and hopes of a pick-up in customer demand.
Although higher than the series average, the level of positive sentiment dipped from that seen in December and was lower than the UK trend.
Workforce numbers at Welsh firms dropped for the sixth month running in January, with companies cutting staffing levels at a steep pace. Although the slowest for three months, the rate of job shedding was sharper than the series average and contrasted with the UK trend. Moreover, the pace of decline was the quickest of the 12 monitored UK areas.
Lower employment was linked to the non-replacement of voluntary leavers and efforts to cut costs.
Welsh firms recorded a further drop in backlogs of work during January, thereby extending the current sequence of decline seen since May 2022. Panellists often noted that subdued demand conditions led to the sustained decrease in incomplete business.
Although the pace of contraction slowed to the weakest since April 2023, it was sharper than the UK average.
January data signalled a continued increase in input prices faced by Welsh firms. Manufacturers and service providers alike recorded an uptick in cost burdens, as the overall rate of inflation quickened to the fastest since May 2023. Higher input prices were linked to greater wage bills, alongside increased supplier and transportation costs.
Despite accelerating, the pace of increase was slower than both the UK and historic series averages.
Welsh businesses registered a further solid rise in selling prices at the start of the year. The pace of inflation was little changed from that seen in December and slightly quicker than the long-run series average. The uptick in output prices reportedly stemmed from the pass-through of greater costs to customers.
The rate of increase was among the slowest of the 12 monitored UK areas, however, and faster than only Northern Ireland, the North West and Yorkshire & Humber.
Jessica Shipman, Chair, NatWest Cymru Regional Board, commented: “The start of 2024 signalled more positive trends emerging from the Welsh private sector, as activity was broadly stable on the month and the contraction in new business slowed to only a marginal rate. Firms also remained strongly upbeat in their expectations for the year ahead, and future expansion in output.
“Nonetheless, businesses cut workforce numbers steeply as pressure on capacity dwindled further. Job shedding in Wales was the fastest of the 12 monitored UK areas, with firms looking to rein in costs and have a tighter control on spending.
“Although cost burdens rose at a marked and accelerated pace, the rate of inflation was below both the historic series and UK averages. Moreover, in a bid to secure new sales, companies raised selling prices at only a solid rate that was among the weakest across the UK and much slower than that seen over 2023 as a whole.”
Business
Manorbier kennels expansion approved by National Park
PLANS for the expansion of a Pembrokeshire kennels business has been approved by the national park despite neighbour concerns about increased noise.
In an application to Pembrokeshire Coast National Park, Nick Willis sought permission for the expansion of an existing kennels/cattery business at Foxcombe House, near Manorbier, with 15 new kennels with dog runs, an office, grooming room, kitchen, and associated facilities.
Three members of the public had raised concerns about the scheme including potential noise nuisance with its expansion of the site, just off the A4139 Tenby to Jameston road.
An officer report said the proposals were an amendment to original plans which proposed an extension into the field adjacent to the A4139, currently used as a small caravan and motorhome campsite.
“Whilst the level of development remains as originally proposed and represents a significant intensification of built development, the proposed location, closer to existing facilities, is considered to better reflect an extension of the existing business rather than a separate part of the business,” the report said.
It added: “Correspondence has been received from three properties in the surrounding landscape, which raise concerns about noise nuisance from the existing kennels and indicate that there is likely to be an increase due to the proposed expansion of the kennel business.
“Officers have consulted directly with Pembrokeshire County Council Public Protection team, who confirmed that no formal noise complaints had been received regarding the existing kennel business.
“It is recognised that there is potential for both the existing business and the proposed expanded business to create a noise impact within the immediate surrounding landscape. However, the nearest properties are 103 metres to the southeast and 64 metres to the west.”
It went on to say: “The proposed business plan states that the existing kennels are soundproofed, and the proposed new kennels will also be soundproofed to limit any noise impact. Obviously, it is recognised that the dogs will not be in the kennels for their entire stay and will require access to the exercise areas daily. These areas are open and could lead to noise impact, but again, the use of the exercise areas will be limited and is considered a necessary part of the business, and is an essential element of the business to keep the animals healthy during their stays at the site.
“As such, given the limited nature of the essential exercise areas and that the proposed kennels are to be soundproofed, sufficient mitigation has been proposed in this instance to minimise any noise disturbance to neighbours.”
The application was conditionally approved by park planners.
Business
Popular extreme sport off Pembrokeshire coast to become licenced activity
COMMERCIAL coasteering activities in Pembrokeshire’s national park will need to be licensed at a cost of £100 from May following a decision by park members.
At the March 25 meeting of Pembrokeshire Coast National Park, members were recommended to agree the delegation of the introduction of a licensing scheme in relation to commercial coasteering operations on land owned or leased by the National Park Authority, subject to the satisfactory completion of associated environmental assessments for specific routes.
A report for members said: “The Authority has historically relied on a combination of voluntary codes of behaviour to guide the operation of a range of recreational activities in Pembrokeshire, including on land in which the Authority has an interest.
“This has operated successfully for many years, however changes in the number of providers operating over time and complaints raised in the last two years have highlighted the benefits of moving to a more formal arrangement through the issuing of licences for coasteering activity.
“The intention is to move to a system of licensing following the completion of environmental assessments for existing coasteering routes from May 1. Should any routes not pass the environmental assessments, they would not be included in such licensed arrangements.”
It added: “The change to licensing agreements between PCNPA directly with coasteering providers is a significant change in the proposed management of coasteering. The majority of coasteering in Pembrokeshire takes place on land owned or managed either by PCNPA or by the National Trust. Both organisations have historically worked historically together on this issue and the move to issuing licenses is supported by the National Trust as well as PCNPA Officers.”

It went on to say: “There is a recognised difference between general public access and commercial activity. Licensing will give a legal basis to the permission for providers to use Authority-owned/managed land which will ensure that the public benefit (special qualities, wildlife and conservation features) is not compromised by commercial activity. Coasteering with commercial groups has the potential for much greater risk of disturbance/environmental impact than individual public access on foot on public rights of way or beaches which is why it needs to be dealt with differently.”
It added: “A fee of £100 as a cost for the PCNPA Licence is being assigned for this year, which does not cover the costs of the environmental assessment work but is a contribution towards costs whilst the Authority transitions to these arrangements. Over the next few years, the intention is for the Authority to move towards a position of full cost recovery for this work.”
Members, by 10 votes to one against, and one abstention, backed the introduction of the licensing scheme for national park lands.
Business
Popular Italian restaurant hit with £278,000 tax bill plus £186,000 fine
The Carmarthen eatery is still open, but trading under a different legal entity after being put into liquidation
A CARMARTHEN Italian restaurant has been named by HM Revenue and Customs after deliberately underpaying more than a quarter of a million pounds in tax — with the company now in liquidation.
Claudio Cernat Ltd, formerly trading as Florentino’s on Jacksons Lane, appears on HMRC’s latest list of deliberate tax defaulters published on Wednesday (Mar 26).
The company failed to pay £278,561.67 in tax between April 2016 and March 2020. A further penalty of £185,977.52 was imposed.
Records held by Companies House show the firm is now in liquidation, having been incorporated in March 2015.

Largest west Wales case
The Carmarthen case is the most significant to emerge in West Wales from the latest HMRC “name and shame” list, both in terms of tax owed and penalties issued.
It stands in contrast to other Welsh entries, which are largely made up of smaller businesses and individual tradespeople owing tens of thousands rather than hundreds of thousands.
Who is running the restaurant?
Despite the liquidation of Claudio Cernat Ltd, Florentino’s restaurant in Carmarthen appears to still be operating, with bookings being taken through its website.
However, the website does not identify the company or individual currently running the business. Unless a sole trader, it is a legal requirement to have Limited company name on a business website.
The Herald contacted the restaurant by telephone on Thursday (Mar 26) to ask who currently operates the premises.
A female member of staff answered the phone as “Florentino’s” but declined to provide the name of the business employing her.
The call was then passed to a man who said the restaurant was under “new management” and “nothing to do with the old company”.
When asked to identify the business now operating Florentino’s, the man declined to give a company name or confirm the identity of the owners.
He gave his name only as “John” and said he would ask the new management to return the call “when they come in”.
Director linked to new company
Records show that Claudiu Florentin Cernat, a director associated with the former Carmarthen company, is now listed as a director of a separate business, Maximus Italian Ltd.
The Swansea-based company was incorporated in February 2025 and operates in the same sector — licensed restaurants.
There is no suggestion that the new company is involved in any wrongdoing.
Swansea cases also named
The list also includes three cases from the Swansea area.
Koyuncu Ltd, formerly trading as Pepino’s Pizza in Gorseinon, failed to pay £46,975 in tax, with a penalty of £28,185.
Lee Andrew Dunn, a mechanical fitter from Portmead, underpaid £29,326.20 and was issued a £17,449.06 penalty.
Christopher Lance Whitcombe, an engineer from Fforestfach, underpaid £54,598.69 and received a £46,596.84 penalty.
High street crackdown
Around 140 individuals and businesses across the UK have been named in the latest HMRC publication.
The list includes restaurants, takeaways, convenience stores and vape-related businesses, alongside self-employed trades, highlighting what HMRC says is ongoing non-compliance across high street sectors.
HMRC said all those named had the opportunity to avoid being listed by making a full disclosure during investigations, but failed to do so.
Kevin Hubbard, HMRC’s Director of Individuals and Small Business Compliance, said: “We are actively tackling tax non-compliance among high street businesses across the UK, and today’s namings show we will act wherever we find it.
“Everyone on this list had the opportunity to come forward to make a full disclosure — and didn’t. HMRC will always pursue those who deliberately refuse to pay what they owe.”
No businesses or individuals from Pembrokeshire or Ceredigion appear in the current list.
HMRC only publishes cases where more than £25,000 in tax has been deliberately underpaid. The list relates to civil penalties only, and names remain public for up to 12 months.
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