Business

Ministers’ botched £50m life sciences fund ‘achieved all its aims’

Published

7 months ago

May 5, 2025

A “FAILED EXPERIMENT” of investing public money in risky biotech-style businesses cost Welsh taxpayers at least £28m but achieved all of its original objectives, a committee heard.

Giles Thorley, who heads the Development Bank of Wales, largely blamed external factors for the poor performance of the now-closed Wales Life Sciences Investment Fund.

And the chief executive told the Senedd’s public accounts committee the venture could be repeated in future provided the lessons are learned.

His report detailed how the Welsh Government-owned development bank lost £28.2m investing into “very high risk”, unprofitable life sciences businesses.

According to the paper published this week, the fund, which was managed by Arix Bioscience plc, paid £7.7m in fees or 15% of the initial £50m invested.

Mr Thorley revealed the fund contract set no limits on the fees charged by the manager.

He claimed the fund, which ran for the decade to 2023, met all of its initial four aims: to increase access to finance, attract businesses, grow the sector and boost research.

The fund also had an ambition to raise another £50m, bringing the total to £100m, but Arix invested £5m in 2016 – with only £21.8m returned to the public purse to date.

Managers ordinarily limit the investment into any one business to 10% but 40% of the fund was invested in only two businesses: Rutherford Health and ReNeuron.

Each received £10m from the fund and both later went under, returning nothing and raising concerns that the portfolio was “overly concentrated” in a handful of businesses.

Mr Thorley wrote: “Normally the maximum investment from a fund into a single business is limited to 10%. This mitigates the impact to the fund should some of the investments fail.”

The fund held investments in only nine companies, with three exceeding 10% each and totalling nearly 60% of all investments held.

By comparison, International Biotechnology Trust – a listed life sciences fund – holds dozens of investments to reduce risk, with none making up more than 5% according to its accounts.

That fund has returned roughly 60% to investors over the past decade compared with a -56% return for taxpayers from the Wales Life Sciences Investment Fund (WLSIF).

Mr Thorley said the failed investment strategy assumed the further £50m would be raised, which resulted in less diversification, increased risk and limited follow-on funding.

He also pointed to the pandemic, a big factor in Rutherford’s failure, and the high-profile collapse of the Woodford Equity Income Fund – a co-investor in some WLSIF businesses.

Mr Thorley said disappointing clinical trial results were the main factor for businesses like ReNeuron, which relaunched as a private company in March after a year in administration.

He said: “The nine investee businesses represented a broad portfolio, … from lower risk established businesses with revenue streams to very high risk (potentially very high return) pre-revenue businesses where future returns were wholly dependent on successful trials.

“To that extent, the portfolio was considered balanced.”

Mr Thorley pointed to Simbec-Orion, the fund’s only success story, which provided a £19.7m (2.24x) return on an £8.75m investment.

He wrote: “The fund did achieve all four of its objectives and it may have taken just one more portfolio company to succeed for the fund to have returned the full investment or profit.

“For that reason, provided all the lessons learnt from this fund are considered, the final lesson learnt is not to write off any future considerations for using a specialist fund manager with a dedicated fund as part of a wider approach to supporting growth in a business sector.”

But Senedd Members seemed less keen as they briefly discussed the paper on May 3.

Arix Bioscience blamed a two-year Wales Audit Office review of the fund as a major reason the extra £50m could not be raised.

Adrian Crompton, the auditor general for Wales who sits on the public accounts committee, said: “At a high level, the lessons learned report indicates that, the assessment is that all of the objectives of the fund were met and you, I’m sure, will have some observations on that.”

Describing the fund as a failure, Plaid Cymru’s Adam Price said: “I would suggest on the basis of this that we shouldn’t replicate this experiment.

“It’s fine to experiment but if an experiment fails and you say ‘oh well, it’s OK for us to try again’, I think there are some more basic questions.”

The public accounts committee, chaired by the Conservatives’ Mark Isherwood, decided to discuss the matter in more detail behind closed doors, excluding the public and press.

Business

Cardiff Airport announces special Air France flights for Six Nations

Published

4 hours ago

December 4, 2025

Tom Sinclair

Direct services to Paris-Charles de Gaulle launched to cater for Welsh supporters, French fans and couples planning a Valentine’s getaway

CARDIFF AIRPORT and Air France have unveiled a series of special direct flights between Cardiff (CWL) and Paris-Charles de Gaulle (CDG) scheduled for February 2026.

Timed to coincide with two major dates — the Wales v France Six Nations clash on Saturday 15 February and Valentine’s weekend — the flights are designed to offer supporters and holidaymakers an easy link between the two capitals.

For travelling French rugby fans, the services provide a straightforward route into Wales ahead of match day at the Principality Stadium, when Cardiff will once again be transformed by the colour, noise and passion that accompanies one of the tournament’s most eagerly awaited fixtures.

For Welsh passengers, the additional flights offer a seamless escape to Paris for Valentine’s Day, as well as opportunities for short breaks and onward travel via Air France’s wider global network.

Cardiff Airport CEO Jon Bridge said: “We’re thrilled to offer direct flights to such a vibrant and exciting city for Valentine’s weekend. Cardiff Airport is expanding its reach and giving customers fantastic travel options. We’ve listened to passenger demand and are delighted to make this opportunity possible. There is more to come from Cardiff.”

Tickets are already on sale via the Air France website and through travel agents.

Special flight schedule

Paris (CDG) → Cardiff (CWL):

13 February 2026: AF4148 departs 17:00 (arrives 17:30)
14 February 2026: AF4148 departs 14:00 (arrives 14:30)
15 February 2026: AF4148 departs 08:00 (arrives 08:30)
15 February 2026: AF4150 departs 19:40 (arrives 20:10)
16 February 2026: AF4148 departs 08:00 (arrives 08:30)
16 February 2026: AF4150 departs 16:30 (arrives 17:00)

Cardiff (CWL) → Paris (CDG):

13 February 2026: AF4149 departs 18:20 (arrives 20:50)
14 February 2026: AF4149 departs 15:20 (arrives 17:50)
15 February 2026: AF4149 departs 09:20 (arrives 11:50)
15 February 2026: AF4151 departs 21:00 (arrives 23:30)
16 February 2026: AF4149 departs 09:20 (arrives 11:50)
16 February 2026: AF4151 departs 17:50 (arrives 20:20)

Business

Cwm Deri Vineyard Martletwy holiday lets plans deferred

Published

11 hours ago

December 4, 2025

Bruce Sinclair - Local Democracy Reporter

CALLS to convert a former vineyard restaurant in rural Pembrokeshire which had been recommended for refusal has been given a breathing space by planners.

In an application recommended for refusal at the December meeting of Pembrokeshire County Council’s planning committee, Barry Cadogan sought permission for a farm diversification and expansion of an existing holiday operation through the conversion of the redundant former Cwm Deri vineyard production base and restaurant to three holiday lets at Oaklea, Martletwy.

It was recommended for refusal on the grounds of the open countryside location being contrary to planning policy and there was no evidence submitted that the application would not increase foul flows and that nutrient neutrality in the Pembrokeshire Marine SAC would be achieved within this catchment.

An officer report said that, while the scheme was suggested as a form of farm diversification, no detail had been provided in the form of a business case.

Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd, after the committee had enjoyed a seasonal break for mince pies, said of the recommendation for refusal: “I’m a bit grumpy over this one; the client has done everything right, he has talked with the authority and it’s not in retrospect but has had a negative report from your officers.”

He said the former Cwm Deri vineyard had been a very successful business, with a shop and a restaurant catering for ‘100 covers’ before it closed two three years ago when the original owner relocated to Carmarthenshire.

He said Mr Cadogan then bought the site, farming over 36 acres and running a small campsite of 20 spaces, but didn’t wish to run a café or a wine shop; arguing the “beautiful kitchen” and facilities would easily convert to holiday let use.

He said a “common sense approach” showed a septic tank that could cope with a restaurant of “100 covers” could cope with three holiday lets, describing the nitrates issue as “a red herring”.

He suggested a deferral for further information to be provided by the applicant, adding: “This is a big, missed opportunity if we just kick this out today, there’s a building sitting there not creating any jobs.”

On the ‘open countryside’ argument, he said that while many viewed Martletwy as “a little bit in the sticks” there was already permission for the campsite, and the restaurant, and the Bluestone holiday park and the Wild Lakes water park were roughly a mile or so away.

He said converting the former restaurant would “be an asset to bring it over to tourism,” adding: “We don’t all want to stay in Tenby or the Ty Hotel in Milford Haven.”

While Cllr Nick Neuman felt the nutrients issue could be overcome, Cllr Michael Williams warned the application was “clearly outside policy,” recommending it be refused.

A counter-proposal, by Cllr Tony Wilcox, called for a site visit before any decision was made, the application returning to a future committee; members voting seven to three in favour of that.

Business

Welsh Govt shifts stance on business rates after pressure from S4C and Herald

Published

22 hours ago

December 3, 2025

Sarah-Jane Absalom

Ministers release unexpected statement 48 hours after widespread concern highlighted in Welsh media

THE WELSH GOVERNMENT has announced a new package of tapered business rates relief for 2026-27, in a move that follows sustained pressure from Welsh media — including S4C Newyddion and The Pembrokeshire Herald — over the impact of revaluation on small businesses.

In Milford Haven, the hard-pressed pub sector is already feeling the impact: the annual bill for The Lord Kitchener is rising from £5,000 to £15,000, while rates at the Kimberley Public House have nearly doubled from £10,500 to £19,500. The Imperial Hall’s rates are increasing from £5,800 to £9,200, prompting director Lee Bridges to question why businesses “are being asked to pay more when we use less services”. In Haverfordwest, the annual rates bill for Eddie’s Nightclub is increasing from £57,000 to £61,500.

A written statement, issued suddenly on Wednesday afternoon, confirms that ministers will introduce a transitional “tapering mechanism” to soften steep increases for tourism, hospitality and small independent operators. Full details will be published with the draft Budget later this month.

The announcement comes less than two days after The Herald’s in-depth reporting brought forward direct concerns from Pembrokeshire business owners and councillors, highlighting the uncertainty facing one of Wales’ most important local industries.

Herald reporting credited by senior councillor

Pembrokeshire County Council Independent Group Leader Cllr Huw Carnhuan Murphy publicly thanked The Herald for pushing the issue into the spotlight.

In a statement shared on Wednesday, Cllr Murphy said: “Welcome news from Welsh Government. Thanks to Tom Sinclair for running this important item in the Herald in relation to the revaluation of businesses and the consequences it will have for many.

He added: “Newyddion S4C hefyd am redeg y stori pwysig yma ynghylch trethi busnes.,” which in English is “and thanks to S4C Newyddion as well for running this important story about business taxes.”

He added that the Independent Group “will always campaign to support our tourism and agriculture industry, on which so many residents rely within Pembrokeshire”.

Media spotlight increased pressure on Cardiff Bay

On Monday, ministers said business rates plans would be outlined “within the next two weeks”.
By Wednesday afternoon — following prominent coverage on S4C and continued pressure from The Herald — Welsh Government released an early written statement outlining new support.

Industry sources told The Herald they believed the level of public concern, amplified by the media, “forced the issue up the agenda much faster than expected”.

A cautious welcome for ‘better than nothing’

Cllr Murphy welcomed the partial support, though he stressed it fell short of what many businesses had hoped for.

“This isn’t the level of support many were hoping for,” he said, “but it is certainly much better than nothing.”

Draft Budget expected soon

The full tapered support scheme will be detailed in the Welsh Government draft Budget, expected within a fortnight.

Tourism and hospitality representatives have reserved final judgment until the figures are published, but many have expressed relief that some support will continue, following weeks of uncertainty.