Business News Round Up (04/07/2022)
Scottish tech bounces back from Covid
Scotland is home to a thriving tech ecosystem with over 1,500 companies that contributed £4.9bn Gross Value Added (GVA) to the economy. This year’s survey results demonstrate that the sector has remained in robust shape despite the impact of Covid-19. We are not only seeing strong growth, but more than 70 per cent of companies reported increasing sales and growing optimism. Our industry continues to perform well in many high growth sectors. Key areas of growth include data analytics, artificial intelligence, and the Internet of Things. However, Scotland’s expertise in cyber security is the stand-out for potential growth. Around a third of Scotland’s tech businesses view cyber security as an opportunity in the year to come. This builds on a raft of initiatives to bolster the sector, from the continuing growth of events at the popular annual Cyber Scotland Week to the proposed creation of a cyber innovation hub, and our Silver Accredited Cyber Cluster at ScotlandIS. These are exciting times to be in Scotland’s cyber community. However, the continued growth in sectors, such as cyber, will be constrained if we do not have a pipeline of talent. Talent continues to stay in high demand across the industry and is becoming increasingly challenging for the industry to manage.
UK retailers eye overseas expansion after Covid curbs ease
A surge of UK retailers are seeking to spread their wings and expand overseas amid a bounce-back in activity following the pandemic. Experts at real estate advisory firm Colliers said demand for UK locations from international firms has also lifted higher as shopper demand remains resilient despite fears over cost-of-living pressures. New data from Colliers revealed that 48% of its UK client businesses – which between them operate 7,255 UK stores – expect to open more international outlets. UK retailers are particularly targeting the Australian market as the country’s economy continues to open up following the pandemic. A number of retailers are targeting European nations such as Italy despite Brexit regulations. Footwear giant Dr Martens told the PA news agency last month that it is eying significant growth opportunities in Italy and Germany instead of further UK expansion. Paul Souber, co-head of retail at Colliers, said: “Our research shows the multifaceted strength of the UK retail market as both a consistent safe haven for retailers to establish and grow their brands, as well as being a credible springboard from which established UK brands can expand overseas. Buoyed by the unrivalled reputation of London’s retail scene as a trendsetting metropolis, we are seeing some of the UK’s most loved brands spreading their wings to open stores for the first time outside of the UK. Meanwhile, Colliers’ international enquiries tracker reveals that there is currently over three million sq ft of requirements from over 27 countries looking to the UK capital to establish a foothold in the thriving London retail market.”
British businesses backed by £7.4 billion government support to export around the world
The UK government has today announced that British businesses have been helped to export to 61 countries around the world over the past year with £7.4 billion of support through UK Export Finance (UKEF) – supporting 72,000 UK jobs across the country. Of those supported by UKEF, 83 per cent were located outside of London and a record 81 per cent were small and medium sized enterprises, according to the organisation’s annual results published today. Anne-Marie Trevelyan, Secretary of State for International Trade, commented: “The UK is awash with untapped export potential. We have opened the door to the world with historic trade deals and now we are helping businesses walk through it. That’s why our national export credit agency, UK Export Finance, is boosting firms’ ability to export to the world with record-breaking support year after year.” Businesses to benefit include First Subsea Ltd, which secured bond support from UKEF to allow the Scottish energy firm to transition to renewables and secure £12 million of export orders. In February this year, it boosted the Scottish fishing industry with a £15 million General Export Facility to Peterhead-based Denholm Seafoods.
Report analyses top 200 UK businesses powered by women
J.P. Morgan Private Bank today released the results of its second-annual Top 200 Female-Powered Businesses report, which revealed contrarian expectations surrounding the path to female wealth equity, their role in the UK economy and sectors in which these businesses operate. The report, showcasing the fastest growing UK businesses powered by women, reveals that whilst female powered businesses are attracting an increasingly large amount of equity investment – a record £5.05 billion in 2021 – female founders are more vulnerable to the dilutive effect of equity funding than their male counterparts. “The data shows us that when female founders do raise equity, they give up a larger percentage of their ownership than male founders,” said Charlotte Bobroff, senior advisor to women entrepreneurs across the UK at J.P. Morgan Private Bank. “In fact, the rate at which women own less of their companies as equity investments increase is almost twice that of men, a 25 percent reduction compared to 13 percent. This reflects several dynamics affecting female powered businesses, including a more challenging fundraising landscape and a lack of resources, exacerbating the effect of equity financing. We help bridge this gap by ensuring our female clients receive the right advice from the outset, structure their wealth efficiently to ensure they are in the best position at the point of negotiations and are exposed to female investors that understand the unique dynamics they face.”