ECONOMIC chiefs in York were today shocked to hear the fastest-growing financial services company in Yorkshire is pulling out of the city because of recruiting problems.

Ward Evans, the £48 million turnover corporate insurance broking and financial services group, is uprooting from its headquarters in Station House, Hull Road, Dunnington, and moving to Leeds.

The extent of redundancies is unclear.

Managing director Alex Dawson confirmed that the group was putting its lease up for sale and moving into new offices in four or five weeks.

He said: "It is a sad decision and a sad time for us. It was a question of space and staff. We just did not seem able to recruit the staff at York in the required numbers to achieve our objectives.

"We even used to lay on mini-buses to bus people in from Leeds. I don't know why we had this problem. Perhaps it was because we are based outside the city."

Dave Taylor, marketing manager of the York Inward Investment Board said: "I am astounded and puzzled that they are giving recruitment problems as the reason. It makes no sense to us.

"Large financial services companies which have moved into York have told us how pleased they are to have been able to recruit a variety of financial services skills in the city. That includes CPP Card Protection Plan, TSYS, the US total systems solutions people and Norwich Union Life."

Updated: 11:28 Thursday, July 05, 2001