Business News Round Up (20/07/2023)
Scottish Export Index names twenty of the best export businesses
Twenty Scottish businesses were recognised for their exporting excellence and named in the Scottish Export Index, published on 19th July 2023. Produced by UMi, with support from HSBC UK and strategic partners the Scottish Government and Scotland House London, the Scottish Export Index recognised the businesses for their exporting achievements from the 2022 calendar year. The Scottish Export Index, formally the Scottish Export Awards, returned this year for the first time since 2018 in recognition of the continued success of Scotland’s exporters on the world stage, which in 2022 accounted for an estimated £41.5bn worth of international exports, excluding oil and gas. Businesses were named across a number of categories designed to recognise and celebrate the breadth of Scotland’s exporting industry. This year’s index had a focus on sustainability, with the introduction of a new Net Zero Exporter category. This category recognised businesses exporting goods and services to meet the goal of a Net Zero economy. In addition, applicants across all categories were asked about their efforts to reduce environmental impact, forming an important criterion in the selection of the index. The index features companies of all sizes, from micro exporters such as Articulate Scotland and Edinburgh Honey Co to large and macro exporters such as Glencairn Crystal Studio and PG Paper Company. They represented up to £179.5m worth of export turnover in 2022.
Profit warnings by North West listed businesses fall
Profit warnings issued by UK-listed companies in the North West during the second quarter of 2023 almost halved quarter-on-quarter. EY-Parthenon’s latest profit warnings report revealed that five warnings were issued throughout the region in the second quarter of the year, falling from nine in the first quarter of 2023. The region also saw a marginal year-on-year decrease in profit warnings, down from six in quarter two 2022. Nationally, profit warnings issued by UK-listed companies between April and June 2023, marked the highest second quarter total in three years, with 66 warnings issued. While most national profit warnings were issued by industrial sectors, warnings in the North West were spread across a range of industries, including consumer, healthcare and technology. Sam Woodward, EY-Parthenon UK&I turnaround and restructuring partner in the North West, said: “Profit warnings from listed companies in the North West have fallen year-on-year and it’s pleasing to see businesses in the region displaying resilience against what continues to be a persistently challenging economic backdrop. However, the full economic effects of recent interest rate rises are still to come, and although inflation is expected to fall later this year, it remains persistent.”
Flexible working for older workers in Scotland ‘could help tackle skills shortage’
Offering flexible working for older people could help Scottish employers to tackle skills shortages, social business Flexibility Works says. The organisation has released research showing one in five over-55s would like flexibility in their work. And it says that hiring or retaining experienced workers could help employers who are seeing skills shortages in the jobs market. Flexibility Works, which is part-funded by the Scottish Government, polled more than 1,000 Scottish workers – and found that while 58% of Scottish workers aged 55 and over already work flexibly, a further 19% don’t and would like to. More than a fifth (22%) of all older workers say their main reason for working flexibly, or wanting to, is to wind down to retirement. Some 21% already work part time hours and a further 9% would like to reduce their hours. Not all forms of flexible working desired by those polled involve cutting hours. One in four of those polled wanted more flexible start and finish times – nearly three times as many as those who’d like part time hours. Some 18% of older workers would like to work compressed hours, where they work their usual weekly hours but in fewer, longer days. The same number (18%) would like more regular home or remote working. Around a third of the Scottish workforce is over 50.
https://www.insider.co.uk/news/flexible-working-older-workers-scotland-30506877
Hospitality on frontline of rising business failures
Financial pressures are continuing to drive business failures, with the hospitality sector most vulnerable to stubbornly high inflation, says a restructuring and recovery specialist. The warning comes as new monthly insolvency statistics for June 2023 reveal there were 2,163 company insolvencies, 27% higher than in the same month in the previous year (1,698 in June 2022) and higher than pre-pandemic numbers. There were 260 compulsory liquidations in June 2023, 77% higher than in June 2022, and 1,759 creditors’ voluntary liquidations (CVLs), 21% higher than in June 2022. Administrations and company voluntary arrangements (CVAs) were also higher than in June 2022. Chris Tate, a restructuring partner at UK top 10 accountancy firm Azets, says Britain’s inflationary environment is causing a ‘perfect storm to brew’– with the soaring cost of borrowing making matters worse. He said: “The cost of living crisis isn’t going to get any better soon. High inflation appears to be baked in, with the cost of supplies unlikely to be lowering in the near future and the continued rise of interest rates compounding cash-flow pressures as debt repayments increase substantially compared to previous years.” According to government figures, there are 143,000 businesses in the hospitality sector, employing 1.8 million people. Many will now find themselves struggling to make any sort of profit following the tough pandemic years.
https://dailybusinessgroup.co.uk/2023/07/hospitality-on-frontline-of-rising-business-failures/