How Brexit costs this retailer £1m a month in sales
An online retailer whose revenues have been on an upward trajectory has become the latest business to highlight the vast financial impact of Brexit on the UK. Leicester entrepreneur Ravi Karia launched an e-commerce business in 2010 selling sells socks, thermal underwear, hats, gloves and bedding to shoppers all over the world. Five years ago he adapted it into a tech company offering a seamless link between suppliers and big online shops such as B&Q, Debenhams.com, La Redoute, Amazon and Decathlon. The big retailers integrate his software into their own systems and his business, called Pertemba, acts as the middle man – without shoppers ever knowing the difference. Lines sold include Trespass, Regatta, Mountain Warehouse, Hype and Clarkes and he also deals with licence-holders for brands such as Fortnite and Minecraft. Mr Karia said sales are currently around £22 million and rising, but he said Brexit trade barriers are costing him up to £1 million a month in lost EU business. Despite that he is still working hard to grow EU sales. He said: “Brexit has affected us. My business would have sales of £35 million right now if it were not for Brexit. “If an EU online marketplace wants a non-EU company to ship directly to its EU customers there needs to be so much compliance. When you start talking to a new EU online marketplace they just say they don’t want it all. “There’s at least £10 million of business in Europe that we can’t access because my stock is in the UK. “So we’ve got a third party warehouse in Belgium – which has been a difficult experience and is not perfect. We’ve also had to persuade suppliers to move stock to Europe. It’s been painful. “I didn’t vote for Brexit. I knew it would be difficult for my business but it’s happened now. “Ironically the silver lining is there aren’t now competitors trying to do what we’re doing from the UK. But it would have been much better for us to be able to launch products directly from here to Germany or France. “The alternative to having people overseas is you do not grow.” His comments come amid growing criticism of the impact of Brexit on Britain, with Chancellor Jeremy Hunt now conceding Boris Johnson’s Brexit deal caused damaging trade barriers with the European Union. Last week, the Institute for Fiscal Studies said “very clearly Brexit was an economic own goal” that had harmed growth. The economic think tank’s director Paul Johnson said it has been “very bad news indeed and continues to be bad news, particularly the way that we’ve done it, the hard type of Brexit we’ve had, distancing ourselves from the single market”. While the OBR said the UK’s "trade intensity" would be 15 per cent lower in the long run than if the UK had remained in the EU. Mr Karia – who is now considering buying a company in Europe to try and even out the issues – was this year's LeicestershireLive Entrepreneur of the Year and the the Department for International Trade's 2020-2022 Export Champion. He started his firm as an online shop called Universal Textiles before moving to the technology side of things. He now has 70 people in the UK and 50 in India on the tech, data entry and customer service side of things. There are about 60 or so suppliers on the Pertemba system selling through around 100 marketplaces worldwide without breaking a sweat, and all the stock comes through the Leicester warehouse. A US partnership is also being launched. One of the beauties of the tech he provides is it can allow clients to move into new marketplaces without having to adapt their own websites or technology. He said: “We started as an online retailer but I was thinking “how do I grow the business?”. “I needed bigger premises, more money, more people, but got thinking that what I’m really good at is technology – that’s my strength and I realised I needed to use technology to overcome the barriers we were facing. “I thought if I don’t have to invest in stock myself that solves all the problems. So I built the systems and the developers took it on. Now we have a defined brand and strategy and more people are coming on board.” Like many online retail businesses Petremba thrived when people were stuck indoors during lockdown. He said: “The company was always growing. We were around £18 million in turnover, and trying to get to over £20 million, but when Covid hit it shot up to £27 million in a year because we were able to stay open when other shops were shut. “On top of that our competitors were quite slow to the game while we were able to adapt quickly, bounce-back and fulfil orders. “We’ve been doing phenomenal numbers outside the UK. “It’s amazing how the business has transformed. We have streamlined everything so we can take on a supplier in a week and a new marketplace within a week as opposed to months and months. “Things are not as busy as during Covid, but we are still trading at £22 million, and in the next three years want to get to £35 million.”
Warhammer maker working on Amazon film and TV deal that could star Superman actor Henry Cavill
Games Workshop, the UK miniatures, books, games business behind the global Warhammer brand, is planning a production deal with Amazon. The Nottingham-based fantasy games business said that it had “reached an agreement in principle” for Amazon to adapt its games into movies and TV programmes. Games Workshop said Amazon is set to start talks with writers over the project, which will initially involve developing the Warhammer 40,000 universe. Warhammer 40,000 is a tabletop game based around “dark, futuristic warfare”. The Hollywood Reporter said Henry Cavill is set to star in and executive produce the adaptation, just days after he confirmed he will not be returning to play Superman. Last week Games Workshop announced anticipated half year revenues of £210 million, up from £191.5 million a year ago. It expected licensing revenues to be down from £20.1 million last year – when a number of big computer game licensing deals were signed – to £14 million. It said core operating profit would be on a par with the second half of last year at no less than £70 million. It also said that under its profit share scheme, it would be paying a £1,500 bonus to each of its staff this month. One market analyst said the Amazon tie-in could be a very big deal for Games Workshop. Russ Mould, investment director at online share trader AJ Bell, said: “A lot of the excitement around the stock in recent years has been built around the licensing opportunities associated with Games Workshop’s intellectual property, which has a large and very loyal fanbase. “Developing in this area has several upsides for Games Workshop. It generates extra revenue and cash flow for a relatively limited extra cost and, while Amazon will be granted the relevant merchandising rights, it could deepen fans connections with Games Workshop’s table-top gaming products and bring them to a wider audience. “There have been modest efforts in the past to bring Games Workshop’s creations to the screen. Amazon’s deep pockets and its huge reach, more than 50 per cent of British households have an Amazon Prime account, puts this in a different stratosphere. “The deal is not signed and sealed yet but, barring a last-minute hitch, this could be an extremely significant step in Games Workshop’s development. “The big risk is that, by almost certainly surrendering any creative control, Games Workshop is at the mercy of Amazon making something which might alienate its existing followers.
New £100m Humber ferry terminal proposal submitted to Planning Inspectorate
The development consent order application for Immingham Eastern Ro-Ro Terminal, the £100 million port expansion from ABP, has been made. National Infrastructure Planning has received the documents outlining the proposal, which will feature a new multi-vessel jetty, terminal buildings, as well as improved hardstanding, a new road bridge over existing infrastructure and access roads. It will have the capacity to handle 800,000 units of North Sea-crossing cargo a year, with potential for weekend passenger trade also factored in. Vessels up to 240m in length and 34m wide have been anticipated, operating on fixed schedules. The Planning Inspectorate now has 28 days to review the application, which charts the course for a huge 50-year commitment to the Humber from Swedish ferry operator Stena Line. Announced almost a year ago, it was one of the biggest business stories of 2022, with the expansion proposal and then details of the significant deal. Read more: Big interview with port director Simon Bird as busy month for major expansion dawns Simon Bird, Humber ports director, told how the application had been submitted earlier this week, as he welcomed stakeholders and media to a trial of hydrogen-powered mobile port plant at the heavily-invested existing Immingham Container Terminal. “We’ve put a lot of work into the design, and how vessels will operate. It is a very busy area, and the marine team have worked on modelling and are comfortable with it,” he said. “It is a big investment, £100 million - it is long-term infrastructure.” Immingham Eastern Ro-Ro Terminal is a further outer harbour project to future-proof and expand existing operations, where the lock limits the size of vessels capable of entering into the traditional docks. It worked with Danish operator DFDS to deliver a similar scheme almost two decades ago, while Volkswagen was a key partner in Grimsby for the car terminal that stretches out beyond the iconic Dock Tower. Huge bulk terminals have also been added over the years, including a £130 million site for Drax to handle biomass. The application comes ahead of the start of a public consultation into another significant new facility, set to feed a green hydrogen production plant with ammonia and welcome carbon imports for storage. It is also focused on the east wing of the port. In the final briefing document sent to the inspectorate ahead of the application, with the actual application documents to be published in due course, ABP said: “The facility is being designed to service the growing North Sea ro-ro freight market including a mixture of accompanied and unaccompanied freight. Unaccompanied freight comprises mainly ro-ro trailers which are left at the port and moved onto and off the ship using tractor units specifically designed for this purpose. Accompanied freight involves lorry drivers accompanying their load, who will be responsible for manoeuvring their vehicle onto and off the ship and will remain on board during the passage. “During less busy periods, for example at weekends, a ro-ro freight line may offer space and cabins for passengers. Facilities for passenger transit flows may, therefore, need to be included.” Reasons for the market growth include the need for supply chain resilience, with Brexit concerns over short crossing vulnerability, with the benefits of stronger northern entry points for cargo, as well as the opportunities offered in port-centric manufacturing by the freeport status. “Ultimately better and more efficient logistical connectivity between the UK and Europe will drive costs down and benefit UK and European consumers,” the statement added. The plans will involve the resiting of a “small number” of ABP tenants, with all landside work on ABP property and harbour side on Crown Estate seabed already leased by the port operator. Once accepted, a six month examination begins, ahead of a three month window for the recommendation to be made to the Secretary of State for Transport. Forest of Dean MP Mark Harper, appointed in October, would then have three months to make a decision, with a six week period then following when it can be challenged in the High Court.
£10m crane investment on its way to Port of Immingham
A £10 million investment in cargo-handling equipment is on its way to Immingham. Engineers from Associated British Ports have just returned from Germany where they have carried out final factory acceptance testing on three new mobile harbour cranes. The hybrid Liebherr 420s will be arriving later this month from Rostock, at a cost £9.7 million, with an additional £500,000 spent on new grabs. The diesel generators poweing them can run on hydrogenated vegetable oil, with the option to switch to all-electric, reducing CO2 emissions as the port accelerates its green credentials. Read more:ABP and Harbour Energy partner to provide CO2 import gateway at Immingham Simon Bird, ABP regional director, had outlined a £30 million spend on equipment earlier this year. The order represents the largest shipment by the manufacturer to the UK. He said: “This is another great investment in the port. It offers our customers a range of equipment, these being specially optimised for vessels in the post-panamax class. “It’s part of our wider strategy investment in future-proofing the Humber ports and giving our customers the confidence that the ports remain resilient, and we are giving them what they need in having reliable and efficient cranage.” They are described as offering greater versatility, being able to be deployed on any quay, though primarily they will be used for bulk cargo and scrap handling. They have a 124-tonne lifting capability, and offer greater safety improvements in the driver’s cab.
Latest official jobless figures from the East Midlands
The number of people in work across the East Midlands has dropped by several thousand in the last three months, reflecting the tough state of the UK economy. New figures suggest the number of employed people in the region stands at 2.337 million – down 6,000 on the quarter but up 23,000 on the year. Department for Work and Pensions (DWP) figures state the region’s overall employment rate for people aged 16-64 was 74.9 per cent – down 1 percentage point on the quarter and 0.5 percentage points on the year. Nationally the UK unemployment rate has risen again while staff vacancies fell back further amid gathering signs that the jobs market is turning as the UK heads for an expected recession. Official figures show the national jobless rate rose to 3.7 per cent in the three months to October, up from 3.6 per cent in the previous quarter. The DWP said the East Midlands unemployment rate was slightly better than the national average at 3.3 per cent – and was down 0.8 percentage points on the year. Damien Keenan-Dilks, DWP partnership manager for Leicestershire said: “Jobcentres have had an extremely busy year, consulting and engaging directly with employers to fill their vacancies with the right person. “We’ve supported jobseekers to develop their skills and capability to enter the labour market, while also helping people to progress in their career. “For the coming year plans are already in hand to ramp up activity as there are still thousands of vacancies available especially in the key industries including care work, hospitality and logistics “The changes to Universal Credit and our 50PLUS offer means we can provide specialist help to even more claimants through intensive support, to help them get into work and seize opportunities to increase their job prospects and pay. “Our DWP ‘Find a Job’ website, signposts people to jobs, where thousands of jobs are on offer.” Opportunities on offer through local Jobcentres include work at the Wymeswold Business Quarter being built next to the existing Wymeswold Industrial Estate, near Loughborough. There are also 51 vacancies with 17 employers available across five sectors at East Midlands Airport. Meanwhile Mercia Park in North West Leicestershire is working with Jobcentre Plus to fill various vacancies. Official figures on Wednesday are expected to show inflation remained at eye-watering levels in November, but eased back to 10.9 per cent from 11.1 per cent in October. The ONS data also revealed a widening gap between private sector and public sector pay, growing by 6.9 per cent and 2.7 per cent respectively – among the biggest differences seen on record. Kitty Ussher, chief economist at the Institute of Directors, said the rise in unemployment suggests “the labour market has now turned”.
GWR, Avanti, CrossCountry, Southern and other train operators' services during strike on Saturday November 26
Britain's train operators have released plans for how their services will be altered during the next rail strike. Many will be affected on Saturday when train drivers belonging to the Aslef union walk out in a long-running dispute over pay. Here is a breakdown of each operator's plan: Avanti West CoastNo service. c2cA normal service. Caledonian Sleeper It does not run on Saturday nights. A normal service will operate on Friday night. Chiltern Railways No service. CrossCountry No service.East Midlands Railway No service. Gatwick Express No service due to engineering work at London Victoria. Passengers can use Southern and Thameslink trains for travel to and from Gatwick Airport. Grand CentralA normal service. Great Northern A normal service. Great Western Railway An extremely limited service will operate, starting at 7.30am and ending at around 9.30pm. The only open routes will be between: London Paddington and Bristol Temple Meads (trains will not stop at Bath Spa); Reading and Oxford; and Reading and Basingstoke. Greater Anglia An extremely limited service will operate. The first trains will be later than normal and the last trains will be earlier than usual. The only open routes will be between London Liverpool Street and Colchester; and Norwich and Southend Victoria. They will have just one train per hour in each direction. Heathrow Express No service. Hull Trains It is not affected by the strike but engineering work means trains will not call at Beverley, Cottingham, Retford or Grantham. London North Eastern Railway An extremely limited service will operate. This includes just one train in each direction between London King's Cross and Leeds, and four trains in each direction between London King's Cross and Edinburgh. London Northwestern Railway No service. Lumo Trains will run only between Edinburgh and Newcastle. Merseyrail A normal service. Northern No service. ScotRail A normal service. South Western Railway A normal service. Southeastern No service. Southern Southern drivers are not involved in this strike action but the service between Tonbridge and Redhill will be reduced. Engineering work also means there will be no trains to or from London Victoria. Stansted Express One train per hour will run between London Liverpool Street and Stansted Airport. Thameslink A normal service. TransPennine Express An extremely limited service will operate. This consists of four trains each way between York and Manchester Piccadilly; three trains each way between Manchester Victoria and Liverpool Lime Street; and two trains each way between Sheffield and Cleethorpes. Transport for Wales A normal service. West Midlands Railway