Business News Round Up (13/07/2023)
Scotland’s recruitment activity falls in June amid economic uncertainty and candidate shortages
Hiring activity fell across Scotland during June amid reports that economic uncertainty and candidate shortages had dampened recruitment, according to the latest Royal Bank of Scotland Report on Jobs survey compiled by S&P Global. Scotland’s Report on Jobs follows the Recruitment and Employment Confederation’s UK Report on Jobs published earlier this week which also found that lingering uncertainty over the UK’s economic outlook continued to weigh on hiring decisions in June. Permanent staff appointments in Scotland saw a further fall in June, which extended the current sequence of contraction to five months. The rate of decrease quickened from May and was solid overall. Subdued business confidence and candidate hesitancy to seek new roles due to the weaker economic climate hindered recruitment, anecdotal evidence suggested. The rate at which permanent placements decreased in Scotland was weaker than that seen across the UK as a whole. Going against the broader UK trend, temp billings across Scotland fell for the ninth successive month in June. The pace of reduction was sharp overall, despite moderating to the softest in three months. Panellists reported that candidate scarcity, reduced amounts of new work and hiring delays were key factors driving the latest reduction in billings.
Manchester take-up remains strong despite challenges
Manchester has continued to be one of the best performing UK cities for commercial workspace transactions despite challenging economic conditions, according to Manchester Office Agents Forum.In the second quarter of 2023, 179,073 sq ft of workspace was transacted across 52 deals in Manchester city centre, taking the half year figures to 390,470 sq ft across 111 transactions. Stand out deals from the quarter includes Arup’s 15,218 sq ft expansion at 3 Piccadilly Place and a 15,436 sq ft transaction at Bonded Warehouse where Dentsu acquired a fully fitted and furnished workspace. Richard Lace, director at OBI, said: “Despite a challenging macroeconomic backdrop, Manchester continues to be one of the best performing regional UK cities in terms of commercial workspace transacted. Manchester is not over reliant on any one sector, and whilst we have seen more muted levels of demand from the tech sector, due to high interest rates and rising inflation, businesses from the legal and professional and financial services sectors remains relatively strong. Though the recording of Hill Dickinson and Pinsent Masons commitment to St Michael’s will fall in to the second half of the year, it does illustrate that headline rents within the city centre remain resilient and continue to rise for best-in-class, ESG focused, prime Grade A buildings. The outlook for the city remains positive, with significant size requirements in the market from both existing Manchester business but also new entrants seeking to establish a presence in the city.” Outside of the city centre, the Salford Quays and Old Trafford office market recorded encouraging levels of take up, with 78,747 sq ft of transactions recorded representing a 17.5 per cent increase on Q1 2023.
Edinburgh in top 5 cities for successful new business openings
Research from CMC Markets has revealed Reading as the UK city opening the most successful new businesses in the last five years, with just 0.13% going into liquidation. The study used business intelligence software, Endole, to analyse how many businesses were incorporated in the UK’s largest 25 cities from December 2017 to December 2022 compared to the number that went into administration, liquidation, or were dissolved. Alongside Reading, Stoke-on-Trent, Plymouth, Edinburgh, and Cardiff are also home to some of the UK’s most thriving businesses and entrepreneurs. Reading is the city with the lowest percentage of business closures (0.13%), suggesting this is a hotspot for talented entrepreneurs. Stoke-on-Trent lands in second place, with 6,228 new businesses opening in the last five years and just 13 reported closures. Plymouth lands in third place with just 0.27% of new businesses struggling to survive, followed by Welsh capital Cardiff with just 58 closures. Scottish capital, Edinburgh, also makes the top five cities for successful businesses, with a closure rate of 0.41%.
Region’s private equity activity continues to fall in first half of 2023
Deployment of capital continued to fall across the North West’s private equity industry in the first half of 2023 after a slow start to the year, according to new research.Provisional half-yearly data from CMBOR, the Centre for Private Equity and MBO Research based at Nottingham University Business School and supported by Equistone Partners Europe, found that in persistently challenging market conditions, seven transactions were completed in the first half of the year, representing a 22 per cent drop from the same period in 2022, when nine deals completed. Deal volume also fell by 30 per cent when compared to the second half of 2022, when ten deals completed. Despite this, the North West still outperformed other UK regions, with the joint highest volume of private equity deals outside London, along with the East of England. However, while deal volume fell in the first half of 2023, deal value saw a 125 per cent increase when compared to the first half of 2022, rising to a cumulative value of £375m. The rise in the region’s deal value represents the highest level outside of London. Notably, Sun European Partners’ £271m acquisition of Bolton-headquartered K3 Capital in February was among the 20 largest deals in the UK.