Business News Round Up (01/07/2024)
‘Tipping point’ for Scottish construction as it faces up to aggregates crisis
A Scottish waste recycling company has warned that it’s imperative for the sector to move toward a more circular model, as the current permitted reserves in Scotland’s quarries will run out by the mid-2030s. The Aggregates and Minerals Survey done by the Scottish Government suggested that in 2019, there was only 18 years’ worth of sand and gravel left in Scotland’s quarries. The amount of recycled sand and aggregates supplied is on the rise but can still grow enormously. The most recent report into how widespread the use of recycled aggregates is in Great Britain comes from the Mineral Products Association, which is the association for all aggregates producers; both virgin and recycled. This states that in 2022, only 30% of the aggregates used were recycled. Any move toward the construction, demolition and excavation industries recycling more would be significant for Scotland’s net zero targets and circular economy ambitions.
https://www.insider.co.uk/news/tipping-point-scottish-construction-faces-33120417
UK economy ‘turning a corner’ as global growth slows, says KPMG
The UK economy is set to sail past expectations over the next two years as falling inflation and an uptick in consumer confidence help fuel growth, according to a report. The British economy’s recovery from a shallow recession in the second half of 2023 looks set to continue for the rest of 2024, with growth for the year forecast to be 0.5%, according to a report from KPMG. Continued improvements in real household disposable income and further improvements in underlying inflationary pressures will accelerate the economy in 2025, KPMG said, with growth for the year forecast to rise to 0.9%. The report, which said the UK economy was now “turning a corner”, also pointed to the uplift to consumer spending caused by National Insurance Contributions having been cut from 12 to 8% in the past year. The tax cut is expected to boost real household spending by 1% overall.
Property deals fall amid hope of a better second half
Investment in commercial property fell 15% in Q2 as sentiment cooled ahead of the general election, amid uncertainty over the timing of interest rate cuts. Lismore Real Estate Advisors said transaction volumes totalled £272 million, down 15% on the same three months last year and were 31% below the five-year average. However, Lismore director Chris Macfarlane said there were signs of the market picking up and that interest rate cuts, forecast for the autumn, would lift sentiment. The largest deal in the quarter was the £45.8m acquisition of 1 West Regent Street in Glasgow, by Corum Asset Management, followed by Remake Assetm Management’s £36.6m acquisition of 2 Greenmarket in Dundee and 4 Pacific Quay in Glasgow, let to BT and STV from LondonMetric. Logistics and multi-let industrials continue to see strong demand, with prime yields around 6%. Office yields are improving, while retail parks offer compelling value with 6.5-7% yields.
https://dailybusinessgroup.co.uk/2024/07/property-deals-fall-amid-hope-of-better-second-half/
Edinburgh fintech platform extends reach across UK sector
An Edinburgh fintech that specialises in streamlining communications and business processes has extended its reach across the UK. Legado has added FTSE 250 wealth manager Quilter, which has £120 billion of assets under management, to its portfolio of clients as it embarks on a new growth phase. The firm, which enables more efficient customer communications, has also continued to roll out its product across FNZ’s global wealth management platform. And it has a number of contract awards with financial institutions and large corporates in the pipeline during the second half of the year – and has doubled its headcount to over 30 staff. Recent research commissioned by Legado and FNZ found that 88% of advisers said they faced challenges with outdated communication practices, resulting in missed client opportunities.