Business News Round Up (02/02/2021)
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Cyberattacks against UK businesses increasing
Mactavish has released its latest report on the current state of the cyber insurance market, which found that there was a “dramatic” increase in the number of cyberattacks in the past year. To prepare the report, the claims resolution firm surveyed 218 business owners and business managers on the cyber threats they faced, as well as their cyber insurance. According to the report, 21% of businesses surveyed said that they have suffered a cyber related loss in the last three years – of those businesses, 69% said the impact of the attacks they sustained was “significant” or “very significant”. Mactavish’s report also found that just over two thirds (69%) of the businesses said that the cyber related loss occurred in the past 12 months. The report also suggested that the pandemic – which forced many businesses to take their operations online – may have helped exacerbate the cyberattack problem. Some 41% of businesses surveyed indicated that since the COVID-19 crisis started, the level of potential cyberattacks they are facing has increased.
NW profits warning soar with insolvencies to follow
Latest Profit Warnings report from EY reports a 48% increase in North West profits warnings in 2020 as the COVID-19 hit the retail and leisure sectors hard. Profit warnings by North West stock market listed business soarer by 45% in 2020 with retail, leisure and travel the hardest hit sectors. Accountancy firm EY’s latest Profit Warnings report reveals there were 48 profits warnings from North West businesses in 2020 – up from 33 in 2019. They were heavily weighted towards the first quarter of the year, when 29 were issued. More than 80% of businesses who issued warnings blamed the impact of the COVID-19 pandemic. Retail, leisure, and travel businesses were particularly hard hit by lockdowns and travel restrictions and accounted for 16 of the warnings. During the year, the number of UK listed companies at risk of insolvency has doubled.
Scotch whisky losses after US tariffs reach £500 million, trade body warns
The losses suffered by the Scotch Whisky industry as a result of tariffs on exports to the US have reached £500m, in a situation the industry warns is “unsustainable.” A 25% tariff was imposed on single malt Scotch Whisky in October 2019 and since then exports of Scotch to the US have fallen by 35%, amounting to more than £500m in lost exports. These tariffs are not only causing short-term losses to the industry, but also long-term harm to the Scotch Whisky category since the market share lost as a result of tariffs could take years to rebuild. There was deep disappointment across the Scotch Whisky industry last month after the UK government failed to conclude a ‘mini-deal’ with the US, which would have removed tariffs on Scotch and other products caught up in the dispute, like cashmere. This has left distillers continuing to pay the price for an aerospace dispute that has nothing to do with spirits.
https://www.insider.co.uk/news/scotch-whisky-losses-after-tariffs-23425662
Manchester Crane Survey: City showed ‘remarkable resilience’ in 2020 as records broken despite pandemic, Deloitte report reveals
Manchester’s development market showed “remarkable resilience” in 2020 – as records were broken despite the devastating Covid-19 pandemic. Deloitte’s Manchester Crane Survey has revealed the number of homes delivered in the year was a new record, while the amount of office space completed increased by 179% on the previous year. The Big Four accounting firm’s annual survey, now in its 22nd year, gives a general snapshot of development across the city centres of Manchester and Salford and is seen as a significant measure of economic health. With residential projects the main driver of activity, the city saw 4,914 new homes delivered to market in 2020, the highest number ever recorded in a single year. In total, 35 new schemes were completed and 72 were underway across the city – a 6% drop on the previous year.
https://www.business-live.co.uk/economic-development/manchester-crane-survey-city-showed-19742194