Business News Round Up (05/06/2025)
SMEs urged to tackle inflation or risk cash flow crisis
Scottish businesses are failing to factor the ‘invisible tax’ – inflation – into their operations and risk developing cash flow problems, an adviser has warned. Accounting specialist Nicola Campbell says the profits of thousands of Scottish businesses are being squeezed by stealth because of the corrosive impact of inflation. Despite being down to 3.5% from a peak of 11.1% in October 2022, inflation is still adding to the cost of doing business and too many firms are ignoring its effect on their finances, she says. “A ‘Cost of Business Crisis’ is enveloping the business community, and SMEs in particular” says Ms Campbell, head of accounting and business advisory services in the Glasgow office of accountancy firm, Azets. “Margins and profitability are being impacted by increased taxes and the stealth effect of inflation. It is important that businesses factor the ‘invisible tax’ into their planning and increase their prices.
North West’s most active Q1 M&A advisers revealed
The most active legal and financial advisers in the North West’s mergers and acquisition (M&A) sector in Q1 of 2025 have been named in a new report by Experian Market IQ. The firm’s latest M&A review found that Napthens was the top ranked legal adviser, with ten deals recorded. It was followed by Hill Dickinson (nine deals) and HCR law (9). The top ten also included Ward Hadaway (8), DLA Piper (5), Addleshaw Goddard (5), Gateley (4), Gowling WLG (4), Mills & Reeve (4) and Weightmans (4). K3 Capital Group was named as the most active financial adviser, having acted on 12 transactions, ahead of RSM (6) and Grant Thornton (6). Deal activity in the North West at the start of Q1 2025 mirrored national trends, with 171 deals recorded – down from 222 in Q1 2024, a 23 per cent drop which aligns with the UK average.
https://www.insidermedia.com/news/north-west/north-wests-most-active-q1-ma-advisers-in-q1-revealed
Highlands and Islands Enterprise to invest £24m in Kishorn Port
Highlands and Islands Enterprise (HIE) is to invest up to £24 million in Kishorn Port, one of Scotland’s most strategically important ports. An expanded dry dock and land reclamation are intended to enable the manufacture of floating offshore wind foundations at the western Highland port. The expanded facilities are forecast to attract projects with the potential to support up to 1,500 jobs once the port is fully developed. The investment forms part of a Scottish Government commitment of up to £500m over five years to develop the country’s ports and offshore wind supply chain. The funding will help ensure businesses and communities secure maximum benefit from the country’s growing renewables capabilities. As a strategic location for offshore wind components marshalling and manufacturing, Kishorn Port will play a crucial role in supporting current offshore wind developments and is well positioned to capitalise on future opportunities extending beyond Scotland.
‘UK must tackle energy bills’ as firms face £24 billion in extra costs
Britain must address soaring energy tariffs, as firms struggle under the weight of crippling power bills, on top of tax and wage hikes costing them an extra £24bn a year, the boss of the CBI is set to warn. Rain Newton-Smith, chief executive of the business group, will tell business leaders and politicians at the CBI’s business dinner on Thursday that sky-high energy costs are an “anchor on our ambition”. At the event in London, she will call on the UK Government to come up with a “serious plan” to cut energy costs and invest in energy security to help make the UK and businesses more competitive. The CBI stated that almost 90% of British businesses have seen their energy bills rise over the past three years, with a third seeing them more than double. Four in 10 firms are reducing investment as a result, according to the group.
https://www.insider.co.uk/news/uk-must-tackle-energy-bills-35339697