Business News Round Up (01/05/2020)
Private sector activity plunges at record levels – CBI
UK private sector activity fell at its sharpest pace since July 2009, according to the latest CBI monthly Growth Indicator. The composite measure based on 860 respondents, starkly illustrates the impact that measures to tackle the COVID-19 pandemic are having on private sector activity, with a 25% decrease in April compared to -4% previously. Business & professional services experienced the sharpest fall since 2009 (-28% from 0%), as did manufacturing (-21% from -8%).
Survey shows digital technology companies in Scotland forecasting increased demand
Opportunity for growth remains in Scotland’s digital technology sector despite the Covid-19 lockdown, industry experts have said. In a survey of 200 businesses in the sector by ScotlandIS, one third said they believe they will see increased demand. With many people now working from home, ScotlandIS said there have been more calls for cloud services, digital connectivity, remote working technology, and digital health solutions. Almost 30% of digital technology businesses said they will need to increase staff levels by the end of 2020, while 71% said they expect workforce numbers to stay the same.
https://www.insider.co.uk/news/survey-shows-digital-technology-companies-21946392
Intu appoints restructuring boss as it issues warning to rent non-payers
Intu Properties has appointed a former PwC and EY chief restructuring consultant to help it restructure its business after reporting £2 billion of annual losses in March. The company had been set to breach covenants with its lenders, but has negotiated waivers until June 26 on a £600 million revolving credit facility, Intu said it has now collected 40% of the rents owed to its for the first quarter of the year, that it was in “advanced discussions” over a further 28% owed to it – and that it was now offering monthly rent terms to retailers.
RBS profit nearly halves due to coronavirus uncertainty
The Royal Bank of Scotland has reported profits have nearly halved in the first quarter of 2020 as a result of ongoing uncertainty caused by the coronavirus outbreak. The bank said that operating profit before tax reached £519 million, ahead of the £415 million that analysts had expected. The 49% drop from the same period last year came after the business took a net impairment loss of £802 million. RBS said that £628 million of this was down to the uncertain economic outlook. Despite the fall in profits, the bank says it is in a strong position to deal with a significant economic downturn. Shares in the bank rose 1.6% in early trading as investors reacted positively to the announcement.
https://www.cityam.com/rbs-profit-nearly-halves-due-to-coronavirus-uncertainty/