Business News Round Up (14/08/2020)
More than half of Scottish firms suffer drop in turnover
More than half of firms in Scotland have reported a fall in turnover, according to new figures from the Office for National Statistics. The survey of the impact of coronavirus revealed 57% of surveyed firms in the country saw revenue fall in the two weeks to July 26, compared with a UK-wide figure of 54%. The worst hit area was the north east of England, where 61% of companies in the region said that turnover has decreased. Across the UK, 32.2% of firms said that turnover has fallen by at least 20%, with 12.3% of companies saying it has fallen by more than half. More than a tenth said it had at least halved.
https://www.insider.co.uk/news/more-half-scottish-firms-suffer-22516118
North West corporate insolvencies at lowest level in four years
Corporate insolvencies across the North West dropped to their lowest point since 2016, according to new data, although a rise is expected in the coming quarter. According to analysis of notices in The Gazette by KPMG’s Restructuring practice found that 41 companies entered administration during Q2, representing a fall of approximately a third from the year’s first three months. The quarter was almost entirely a period of lockdown, with plummeting consumer spending and largely overlapping with a record GDP fall of 20.4%.
Scottish businesses face ‘reckoning’ as coronavirus support dries up – Scottish Chambers
Scottish business leaders have requested increased financial support to cop with further lockdowns as cashflows come under renewed pressure. Eight in ten firms regard the threat of another nationwide lockdown or potential local restrictions as their most significant concern, according to a new study by the Scottish Chambers of Commerce (SCC). The organisation’s coronavirus survey tracker revealed that 56% of firms have seen lower levels of cashflow compared to one month ago. It also found that the vast majority of businesses in Scotland are doing their utmost to retain staff despite high levels of concern over the risk of further lockdowns and the planned phased withdrawal of the UK government’s jobs furlough scheme.
Three in four UK business leaders predict office downsizing
Senior business leaders predict UK businesses will downsize their offices in the next year, as working from home is likely to become “the new norm” as a result of COVID-19. In a survey of more than 500 senior decision-makers across various UK industries, 73% told Accumulate Capital they believe businesses will relocate to smaller commercial spaces because of the pandemic. Over a third (37%) said their own business is planning to downsize within the next 12 months, with all of these looking for a new location and cheaper rent now there is “less emphasis on employees working from the same office.”