Business News Round Up (11/02/2021)
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Exporters struggling to adapt to new trade rules
A new survey has confirmed earlier reports that at least half of exporters are facing difficulties adapting to changes in the trade of goods following the ending of EU rules. Nearly half (49%) of 1,000 respondents which exported goods or services reported difficulties, rising to 51% for manufacturers. The findings by the British Chambers of Commerce echo the results of the latest Fraser of Allander Institute poll, published on Wednesday which found that 57% of those selling or importing from the bloc have seen a negative impact on their business with only 1% reporting an improvement. When asked by the BCC about the specific difficulties businesses were facing, commonly cited concerns included increased administration, costs, delays, and confusion about what rules to follow.
Optimism for Scotland’s scale-ups after VC investment growth in 2020
The country’s fast-growth firms accounted for more than 5% of investment across Britain last year.Scotland’s scale-ups finished 2020 strong, gaining around £100 million in venture capital (VC) investment, according to the latest figures from KPMG.Despite Covid-19 related restrictions impacting the economy, the latest KPMG Venture Pulse Survey reveals there were 23 VC deals in Scotland between October and December of last year, with a combined value of at least £97.6 million – up from 17 deals valued at approximately £71.6 million in the third quarter of 2020.In total, Scotland accounted for almost 6% of VC investment in the UK, which has witnessed a record year for deals, totalling more than £3.8 billion.
North West corporate finance activity ‘gaining momentum’ – BDO
Corporate finance activity in the North West is gaining momentum, according to BDO, despite the country being placed in a third national lockdown. The accountancy and business advisory firm has seen an upward trend in market activity in the first few weeks of 2021, following a significant number of deals in 2020. In total, the BDO Northern Corporate Finance team advised on 26 deals last year. Rob McCann, M&A partner at BDO, said: “Despite a turbulent year, there was still a considerable amount of corporate finance activity in the region, including both equity and debt investment to fund a number of high-profile mergers of acquisitions across key sectors. While regional businesses continue to face increasing challenges brought on by a third national lockdown, we are starting to see an upward trend in activity in the early stages of the year, demonstrating the appetite and resilience of companies and investors to get business done.”
Scottish businesses’ increasingly optimistic, despite ongoing uncertainty
Scottish businesses are more optimistic for the future now, compared to the end of 2020, despite ongoing concerns around the pandemic and Brexit. The Addleshaw Goddard Scottish Business Monitor, produced in partnership with the Fraser of Allander Institute, indicates that more firms are optimistic about their volume of business and levels of employment in the next six months, when compared to the previous quarter. Many respondents still highlighted feelings of uncertainty though, with a large minority expecting a reduction in volume of business and employment. Confidence levels within Scottish businesses remains unsettled as the impact of Covid-19 and the UK’s new trading arrangement with the EU continues to create nervousness amongst all industries. The Scottish construction sector has experienced a period of growth and recovery going from the sector, with the lowest sentiment in spring 2020 to the highest sentiment in the fourth quarter of the year.
https://www.insider.co.uk/news/scottish-businesses-increasingly-optimistic-despite-23474303