Business News Round Up (20/07/2020)
Profit warnings by stock market listed firms in Scotland at 20 year high
The number of profit warnings by Scottish based stock market listed firms reached a 20 year high in the first half of 2020, according to a new report by professional services firm EY. The latest Profit Warnings report revealed the number of profit warnings issued by listed businesses headquartered in Scotland in the first half of 2020 increased by 45% year-on-year, with 94% citing the impact of the COVID-19 pandemic. EY recorded 16 profit warnings during the six months compared with 11 in the same period the previous year. Businesses in the travel & leisure sector most affected, with three out of the 16. UK-wide, 33% of listed companies, compared with 18% in 2019, issued a profit warning in the first half of 2020. EY recorded 466 profit warnings in H1 2020, compared with the 313 issued last year.
https://www.insider.co.uk/news/profit-warnings-stock-market-listed-22382028
NW profit warnings soar during H1 – EY
The number of profit warnings issued by North West listed businesses during the first half of 2020 increased by 150% year-on-year, according to new data, with the vast majority citing the effect of the pandemic. The latest Profit Warnings report from professional services firm EY recorded 40 profit warnings in the first half of 2020, higher than any previous first half in the last 20 years, compared to 16 in the same period the previous year.
https://www.insidermedia.com/news/north-west/nw-profit-warnings-soar-during-h1-ey
Jobless face tough road back to work as vacancies fall by 80%
New research suggests Scotland is facing its worst unemployment crisis for decades as job vacancies have fallen in some areas by as much as 80%. Aberdeen was the UK city worst affected by plummeting job vacancies during the coronavirus crisis, according to recruitment website CV-Library. Openings were down 80% in the Granite City in the three months to June, while in Glasgow they fell by 67%. UK-wide, there was a fall of 62% in the three months to June compared to the same quarter last year, research by the jobs website found. Sectors which experienced the biggest fall in job adverts included administration, design, sales, recruitment, catering, media, and marketing, research indicated.
Private equity and venture capital invest more than GBP22bn into UK businesses in 2019
Private equity and venture capital investment into UK businesses reached £22.33 billion in 2019, according to new research. The BVCA’s annual Report on Investment Activity shows the impact of private equity and venture capital on the UK shows a total of 1,530 companies across the UK received backing in 2019, a 15% increase on 2018. Venture capital investment increased by 67% year-on-year to £1.65 billion with 821 companies backed, an 18% increase on 2018. The South West of England received the largest amount of private equity and venture capital investment (11.6%) outside of London and the South East, followed by the North West (9.6%) and the West Midlands (7.8%). The technology sector saw the largest number of deals and investment in 2019, accounting for 37.1% of all companies, and 26.8 of total investment.