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Business

Business activity growth in Wales accelerates to fastest in over a year

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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 – posted at 52.0 in May, up from 50.8 in April, to signal the sharpest rise in output at Welsh private sector firms since March 2023. Although slower than the series average, the latest increase in activity was supported by a further improvement in demand conditions and a sustained uptick in new orders. The expansion was among the weakest seen of the 12 monitored UK regions and nations, however, with only Yorkshire & Humber, the South East and East of England recording softer growth in output.

Private sector firms in Wales signalled a third successive monthly expansion in new orders midway through the second quarter. Panellists noted that demand conditions were sustained, alongside new client wins. The rate of growth eased, however, to the slowest in the aforementioned sequence and was only marginal overall. Meanwhile, the pace of increase in new business was weaker than the UK average.

Welsh businesses registered further optimism regarding the outlook for output over the coming 12 months in May. The degree of confidence ticked up to a three-month high, but was also among the strongest in two-and-a-half years. Anecdotal evidence attributed positive sentiment to hopes of more upbeat demand conditions and efforts to broaden customer bases.

Expectations were historically elevated and more optimistic than that seen at the UK level.

May data signalled a third successive monthly increase in employment at Welsh private sector firms. The rate of job creation accelerated to a modest pace that was the fastest since October 2022. Companies stated that greater staffing numbers were due to increased new order intakes.

The rate of expansion in headcounts was historically upbeat and outpaced the UK average.

As has been the case since May 2022, Welsh firms registered another monthly decrease in unfinished business midway through the second quarter. The pace of decline accelerated to the fastest in three months and was sharp overall. Companies noted that an improvement in supply chains and sufficient capacity allowed them to work through incomplete orders in a timely manner.

Moreover, Welsh firms by far saw the quickest decrease in backlogs of work of the 12 monitored UK regions and nations.

Welsh private sector firms signalled a marked rise in input prices during May. Panellists often stated that greater cost burdens stemmed from increased raw material and fuel prices, alongside higher wage bills. The pace of cost inflation softened from April’s recent high and was broadly in line with the long-run series average.

Meanwhile, Welsh firms indicated a sharper uptick in costs than was seen at the UK level.

Selling prices set by Welsh private sector firms continued to increase at a historically elevated pace in May. Anecdotal evidence suggested that firms sought to pass-through higher costs to customers. The pace of inflation eased to the slowest in four months, however, and was broadly in line with the UK average.

Business

Cyberattack and warehouse blaze leave Owens Group with £3.2m loss

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Welsh haulier hit by ransomware attack and fire at major depot

A CYBERATTACK and a major warehouse fire caused “massive disruption” to operations at Owens Group, the Welsh family-run logistics firm has confirmed, contributing to a pre-tax loss of £3.2 million.

The company, which is headquartered in Llanelli and operates across the UK, revealed in its annual accounts that the attack took place during the financial year ending June 30, 2024. The malicious cyber incident, which later appeared on the dark web, blocked access to internal systems and demanded a ransom payment.

Owens said the cyberattack knocked out all of its IT systems for several weeks, forcing the company to rebuild its network and reload data before operations could resume.

“This event massively disrupted operations across all areas of the group and caused significant issues for many months to come,” the directors said in their report. “The group also suffered a major fire in one of its warehouses which exacerbated the operational pressures being managed after the malicious cyber assault.”

Turnover for the year fell by £5.2 million to £105.2 million. The company recorded a loss before interest costs of £1.24 million, with higher interest rates adding a further £1.1 million to its outgoings.

Despite the setbacks, the directors paid tribute to the “resilience, hard work and commitment” of Owens staff, expressing their “sincere gratitude” to employees who ensured customers experienced as little disruption as possible.

“While the staff worked tirelessly, operations were inefficient, additional costs were incurred and seasonal workload reduced due to these operational difficulties,” the report added.

The company said its diversified activities helped it weather the crisis, and its strong balance sheet provided stability. It also reported an improved financial position in the period after the year end, driven by new contract wins, a return to full operational capacity, and tighter cost controls.

Owens Group confirmed that it has since invested in improved cyber protection and IT infrastructure, noting that the business “relies heavily on its IT systems to function efficiently.”

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Business

Offshore wind supply chain boost for Pembrokeshire businesses

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New funding to support local firms as floating wind sector gathers pace

SMALL and medium-sized businesses in Pembrokeshire are set to benefit from a major new initiative designed to help them enter the fast-growing floating offshore wind sector in the Celtic Sea.

The Crown Estate has announced it will provide £100,000 to support a dedicated regional supply chain programme in South-West Wales – delivered through the successful Fit For Offshore Renewables (F4OR) scheme. The initiative will also be backed by matched funding from the Swansea Bay City Deal, co-funded by the Welsh and UK governments.

The programme was unveiled at an event held in the Senedd on Tuesday (July 9), where Crown Estate Chief Executive Dan Labbad and Welsh ministers outlined how collaboration across public bodies and industry is creating new economic opportunities for Wales.

Support for Pembrokeshire firms

The new 18-month programme will focus on preparing businesses in the Swansea Bay City Region – which includes Pembrokeshire – to enter the floating wind supply chain. This comes as the Celtic Sea is set to host several large-scale floating wind projects following recent lease awards by The Crown Estate.

Pembrokeshire already plays a key role in offshore renewables, with the Port of Milford Haven, Pembrokeshire College and local marine technology companies like Marine Power Systems Ltd receiving earlier Crown Estate support through a separate £50m Supply Chain Accelerator fund.

Firms across the county will now be able to express interest in joining the new F4OR programme from the end of July via the ORE Catapult website. Participating businesses will be assessed based on their readiness to enter the floating wind market and alignment with ambitions outlined in the Celtic Sea Blueprint – a roadmap forecasting up to 5,300 new jobs and £1.4 billion in UK economic benefits.

Clean energy and long-term jobs

Rebecca Williams, Director for Devolved Nations at The Crown Estate, said: “SMEs are the lifeblood of the Welsh economy, and this new support will help Pembrokeshire firms gear up for the once-in-a-generation opportunity presented by floating offshore wind in the Celtic Sea.

“By building a resilient local supply chain, we can create well-paid jobs and support the transition to clean energy.”

Rebecca Evans, Welsh Government Cabinet Secretary for Economy, Energy and Planning, added: “We want to see local companies at the heart of the offshore wind sector, and this programme gives Welsh businesses the tools they need to bid for work in this growing industry.”

The announcement follows news that two major wind farms – proposed by Equinor and the Gwynt Glas joint venture – are set to move forward in the Celtic Sea as part of Offshore Wind Leasing Round 5.

As development progresses, Pembrokeshire is expected to become a key operations and maintenance base for floating wind, with strong potential for growth in engineering, fabrication and marine services.

Businesses interested in taking part in the programme should visit www.ore.catapult.org.uk from the end of July.

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Business

Pirate bar plans for Saundersfoot harbour boat refused

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PLANS for a pirate-themed bar at a Pembrokeshire seaside village family venue built in part to reflect its coal heritage have been refused by the national park.

In an application recommended for refusal at the July 9 meeting of Pembrokeshire Coast National Park’s development management committee, Jonathan Thomas of ‘Schooner’ sought permission for a change of use of the Coastal Schooner interpretation centre, Saundersfoot Harbour to a rum and pirate-themed bar.

The schooner – a prominent feature on the village’s National Events Deck – was built to showcase Saundersfoot’s maritime heritage and is part of the £10m Wales Coastal Centre project.

The building is a replica of a traditional coastal schooner vessel which operated from the harbour during the coal mining era to transport coal from Saundersfoot.

The interpretation centre closed in October 2024.

Saundersfoot Community Council and Saundersfoot South county councillor Chris Williams have voiced their objections to the plans; the community council saying the proposal as a rum bar “raises concerns in this location and is considered to be at odds with the current family venue and heritage elements”.

A supporting statement accompanying the application said: “The maritime theme will be maintained as the bar will include a small-scale rum distillery and will focus on the maritime history associated with rum and tell the tales of local pirates.

“The Schooner operated as an interpretation centre and high ropes offer for a year from October 2023 to October 2024. However, it has proved not to be a viable option to run the Schooner as an interpretation centre alone and an additional use is sought to maintain the interpretation element of the Schooner.

“The High Ropes offer proved to be an unviable option to retain going forward.

“The proposal seeks to change the use to a mixed-use interpretation centre and bar, following the model of the Rum Story in Whitehaven Harbour on a smaller scale.”

It adds: “The proposal will allow for the Schooner to be maintained and be freely open to the public thus protecting and enhancing the community facilities to meet the needs of local people and visitors alike.”

An officer report recommending refusal said the scheme is considered to fall outside the seaside village’s defined retail area and the impact on the amenity of the area and especially nearby residential dwellings.

Speaking at the July meeting, chair of Saundersfoot Community Council, and county councillor, Cllr Alec Cormack said it backed the two officer recommendations, adding the original scheme had been supported because of its heritage use but had not proved to be commercially viable.

He said the community council had raised safety concerns over the sale of alcohol at the schooner, with its high masts, finishing: “I urge the applicant and the harbour as landowner to engage with the village for a more family-friendly scheme that all can support.”

Also speaking at the meeting, fellow Saundersfoot councillor Chris Williams called for a “clear rejection” of the scheme, adding the promise and an educational and cultural asset had not been delivered.

“This is a complete departure from the original use from publicly funded facilities,” said Cllr Williams, adding: “The community was promised a learning centre not another drinking venue; it’s rebranding an educational feature as a bar.”

Following a move to refuse the scheme by Cllr Di Clements, members unanimously backed the officer recommendation for refusal.

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