Business News Round Up (22/07/2025)
British Business Bank returns to profit with £144m gain and expanded investment role
The British Business Bank has swung back into profit with a pre-tax gain of £144 million, marking a significant turnaround for the UK’s state-owned economic development institution after two consecutive years of losses. The return to profitability comes as the bank’s investment portfolio increased by 19% to £4.7 billion, driven by stronger performance across its equity and debt holdings. In the previous financial year to March 2024, the bank had recorded a £131 million loss. Set up in 2014 to support small and medium-sized enterprises (SMEs) and improve access to finance, the bank now finds itself at the heart of the government’s latest industrial strategy. In June, ministers committed £6.6 billion of new capital, increasing the bank’s financial capacity to £25.6 billion as it prepares for a wider mandate to stimulate UK growth and productivity.
https://bmmagazine.co.uk/news/british-business-bank-profit-portfolio-growth-2025
Profit warnings rise amid geopolitical tensions
The number of profit warnings issued by public companies rose by 20% to 59 in Q2 of 2025, amid growing concerns over international tensions. Geopolitical uncertainties were named as a key factor behind 46% of warnings to investors. EY, which has compiled the data for 25 years, said this was the highest percentage recorded for those mentioning this issue. Industrial support services and retail sector companies were responsible for many the warnings in Q2, registering eight and four profit warnings respectively. Businesses have faced an increase in labour costs this year after the rise in national insurance contributions for employees in April, which coincided with increases to both the national minimum wage and the national living wage. Among those issuing profits warnings was Macfarlane Group, the Glasgow-based packaging group. There was a rise in profit warnings after the US threatened to impose wide-ranging tariffs on imports in April.
Number of new early-stage investors on the rise
Scotland’s early-stage companies have seen a continued recovery in international interest with the highest number of overseas investors new to the Scottish market since 2021. A report which tracks investors making their first investment in a Scottish company, shows a 20% increase in 2024 to 73 from 65 in 2023, 61 in 2022 and 105 in 2021 when there was pent-up demand from the Covid period. Despite an overall decrease in the number of funding rounds (from 44 to 39), newcomer investors in 2024 maintained their 29% share of all deals, consistent with 2023 figures. Median deal sizes were notably larger, up 28% from £3.02m in 2023 to £3.86m in 2024, even as overall median deal sizes across all Scottish rounds decreased from £1.2m to £1m. Scotland’s ‘healing’ companies attracted the most investment from newcomer investors (£68m, with 12 rounds completed).
British Business Bank boosts North West economy by £700m
The North West economy is expected to experience a £700m boost in economic output as a direct result of support provided through the British Business Bank in its latest financial year, according to its second annual Impact Report. Having supported 2,900 businesses across the region in the 2024/25 financial year, the funding provided by the bank is expected to generate £1.6bn in additional turnover over the lifetime of the finance. This has supported 32,100 existing jobs, while it is estimated to create an additional 3,000 jobs over the life of the finance provided. One of the key drivers of this impact is the Bank’s £660m Northern Powerhouse Investment Fund II (NPIF II), which recently celebrated its one-year anniversary, having driven over £130m, comprising of more than £80m of direct investment and an additional £55m of private leverage since its launch.
https://www.insidermedia.com/news/north-west/british-business-bank-boosts-north-west-economy-by-700m