Business News Round Up (06/02/2023)
Firms using funding as a ‘springboard for change’ – British Business Bank
The Covid-19 lockdown was a “catalyst for innovation”, according to the British Business Bank, which spoke to Insider about the increased number of sustainable companies in the North West taking advantage of its Start Up Loans programme. Start Up Loans help new and early-stage UK businesses access affordable finance and mentoring support, while also facilitating the transition to Net Zero by supporting companies that are creating new environmentally friendly technologies. Since its inception 2012, the scheme has deployed more than 12,300 loans across the region, totalling £113m. Speaking to Insider, a spokesperson for the bank said that many businesses use the loans “as a springboard for change”, adding: “Kompozable is a great example of a company that used its Start Up Loan to bring innovation and access to the northern business community.” The company is a is a designer and systems integrator of intelligent technology, business and data automation and integration software services. In 2022, the Nations and Regions tracker noted a slight rise in the number of smaller businesses in the North West using external finance, despite a nationwide decline. “Though Start Up Loans are open to all businesses to take advantage of, there has been an increase in the number of businesses looking to fund efforts to streamline their existing processes to become more sustainable, particularly by using technology to their advantage” said the Bank, adding: “The more towards more sustainable business practices is one that is also driving innovation as businesses look for new ways to solve old problems.”
Bruntwood posts second best profits performance in its 46-year history
Manchester property group, Bruntwood, has posted pre-tax profits of £75.2m for the year ended September 30, 2022, its second highest profits figure since the business was founded 46 years ago. The group reported pre-tax profits of £44.9m in 2021. Bruntwood has not published its turnover figure for the year. In 2021 its revenues totalled £122.5m The group’s net asset value increased 10.7% to £671.5m and its total assets under management £2bn, up from £1.8bn. The group’s liquidity position has also improved. As of January 31, 2023, the group has £16m of cash reserves (10 January 2022: £9.2m), £40m of undrawn committed available facilities (10 January 2022: £28m) and £70m (10 January 2022: £71m) of unencumbered assets on which further finance could be secured. Bruntwood said its impressive profit levels were boosted by Bruntwood SciTech, the 50-50 joint venture with Legal & General which reported its best year since formation in 2018. The joint venture’s pre-tax profits jumped from £17.1m to £114m over the reporting period, and its net asset value increased 36% to £321m while its total assets under management rose from £647.4m to £858.4m. Bruntwood comprises Bruntwood Sci-Tech and Bruntwood Works, which includes The Plaza in Liverpool, and The Alberton, in Manchester.
Drinks firms say advertising ban will destroy sector
Drinks companies have written a joint letter to the Scottish Government warning that a proposed ban on alcohol advertising risks destroying the industry. Brewhaven, Budweiser Brewing Group, Johnnie Walker whisky maker Diageo, Lanson Champagne and Tennent’s Lager are among signatories to the letter opposing the policy which would affect pubs, restaurants, delicatessens, off-licences, wine, and whisky shops. Ministers could also ban outdoor advertising of alcohol, including on vehicles, as well as adverts in newspapers and magazines. It could also see the end of sponsorship of sport and other live events by alcoholic drinks companies. The Scottish government’s consultation about the proposals is due to conclude next month. Its aim is to reduce the impact of alcohol on the nation’s health. But more than 100 drinks firms, including brewers and distillers, have signed the letter, the move to ban advertising and marketing would devastate one of Scotland’s biggest industries. They state: “Restricting the ability to promote and market products responsibly will remove a vital route to market and go against the Scottish government’s vision to double the turnover of the food and drink sector by 2030. A further unintended consequence would be the blocking of a key source of vital funds to Scotland’s sports and arts and culture sectors.”
https://dailybusinessgroup.co.uk/2023/02/drinks-firms-say-advertising-ban-will-destroy-sector/
China Covid-19 case surge and Brexit disruption worry UK firms most, survey finds
A surge in Covid-19 cases in China gumming up supply chains threatens to snag the UK economy, a survey out today reveals. Trade flows hobbled by workers in China being too sick to work after contracting the virus or Beijing reimposing lockdowns in response to a rise in cases ranks as the top concern among UK businesses, according to consultancy BDO. More than half of firms are worried about being unable to source materials over the next six months to produce goods and services as a result of supply chains being strained. China dismantled its zero-Covid policy at the beginning of the year, resulting in a big uptick in cases as citizens returned to normal daily life. The move is expected to boost Chinese GDP this year, but not before the economy is disrupted by a wave of people staying at home after contracting Covid-19. Trade disruption caused by Brexit is also expected to continue, according to more than a third of firms surveyed by BDO, most of which are small companies. “Medium-sized businesses are battling rising costs, supply chain problems and difficulty accessing labour amid a nationwide skills shortage. Whilst they are striving to remain resilient, existing resources can only go so far to help drive growth or investment in skills and innovation,” Ed Dwan, partner at BDO said.