Business News Round Up (19/02/2024)
Quarter of UK hospitality firms ‘out of cash’
A quarter of UK hospitality firms say they have no cash reserves left, according to new research, as industry bosses have urged the Treasury to prioritise cutting tax for the sector. The joint survey by UKHospitality, the British Beer and Pub Association, British Institute of Innkeeping and Hospitality Ulster revealed the increased cost pressures facing venues across the country. The trade groups said UK pubs, restaurants, hotels, and cafes are in a “perilous state” and in need of “urgent support” to avoid local businesses shutting for good. The new data, compiled across hospitality firms between 15 January and 1 February, showed that 25% of surveyed business have no cash reserves and another 29% said they only have enough for three months. The rising costs experienced by businesses left almost two-thirds (64%) not optimistic about their business’s prospects for the next 12 months, up 6 percentage points compared to October 2023.
https://www.insider.co.uk/news/quarter-uk-hospitality-firms-out-32156838
Professional services sector most active for deals
Professional services continued to be the most active sector for dealmaking in the North West during 2023, according to Experian Market IQ, with environmental consultancy business RSK Group highlighted as one of the key players. The sector was most active despite the volume of deals dropping by 20 per cent to 152. Cheshire-based RSK was behind 25 acquisitions during the year in both the UK and internationally. All sectors witnessed the impact of the downturn in M&A activity, with the exception of the creative industries, and agriculture, forestry, and fishing, where volumes improved compared to last year’s figures. Financial services remained consistent with a total of 84 transactions for the first three quarters of 2023 compared to the same volume in 2022, although the value of these deals increased by a third up to £2.8bn.
Glasgow top for strategy in attracting overseas investment
“Glasgow can take real encouragement from how the world increasingly sees us,” said councillor Susan Aitken, leader of Glasgow City Council. Glasgow is the number one large European city for strategy in attracting overseas investment, according to a new ranking released by fDi Intelligence. fDi Intelligence, an investment insights provider that’s part of the FT group, said Glasgow has leapt to number one due to the city’s “approach to innovation” which “has been forged in partnerships between academia, industry, government and local communities.” In addition to the spot for its foreign direct investment strategies in the European Cities & Regions of the Future 2024, Glasgow also ranked fifth for connectivity and 10th for business friendliness. The investment insights provider cited the emergence of hi-tech and innovate firms across the city region, including 200 life science companies, and the importance of the three innovation districts and five innovation centres in it.
https://www.digit.fyi/glasgow-top-for-strategy-in-attracting-overseas-investment/
Tough start to 2024 for North West firms as administrations at highest level for four years
North West companies have faced a tough start to the year as the number of administrations was at its highest level for four years. Figures analysed by Interpath Advisory show the region recorded 19 administrations in January 2024. That was the highest January figure since 2020, when there were 21 cases. The North West accounted for more than a quarter (26%) of total administrations across the UK in January. In 2023 there were 245 administrations across the North West – up 15% on the previous year. The worst-hit sectors were industrial manufacturing (44), business services (40), and building and construction (35). Across the UK as a whole for 2023, administrations rose more than 25% to 1,307. Interpath said: “sluggish growth, persistent high interest rates, and fragile consumer sentiment continued to impact British businesses.”
https://www.business-live.co.uk/professional-services/tough-start-year-north-west-28646773