Business News Round Up (22/08/2024)
Scottish National Investment Bank reports 80% income increase
The Scottish National Investment Bank has reported income of £19.3m, up more than 80% on the previous year’s £10.7m – and exceeded its operating costs of £16.1m for the first time. In its third full financial year, covering the period 1 April 2023 to 31 March 2024, the development bank committed £224.6m in capital and enabled a further £400m in additional investment alongside. Of that, £129m went to eight new investments, plus £96m in growth capital in 12 follow-on investments. The bank still reported an overall loss before tax of £14.6m – although this was down on the £20.2m loss in 2023 – predominantly due to realised and unrealised losses on investments. This includes a fully realised loss of £8m on Circularity Scotland, as the administration process progresses to completion. Unrealised losses for the year equate to circa 2% of year-end portfolio value.
Growth set to continue as confidence in economy builds
A closely watched survey suggests that the UK will continue growing at a robust pace in the second half of the year as confidence in the economy continues to build. S&P’s ‘flash’ purchasing managers’ index (PMI) came in at 53.4 in August, up from 52.8 last month and ahead of the 52.9 expected by economists. PMIs, which measure business activity in the private sector, are closely watched for clues about the economy’s performance. The UK has now been above the 50 no-change mark for ten consecutive months. “August is witnessing a welcome combination of stronger economic growth, improved job creation and lower inflation,” Chris Williamson, chief business economist at S&P Global Market Intelligence said. “Both manufacturing and service sectors are reporting solid output growth and increased job gains as business confidence remains elevated by historical standards.”
Brief respite for corporate and personal insolvencies with month-on-month fall
Corporate and personal insolvencies both fell, during the month of July, compared with the previous month, new insolvency statistics reveal. However, on a year-on-year basis, the news was not as cheery. The level of corporate failures decreased by 7.3% in England and Wales to a total of 2,191 compared with June’s total of 2,363 and increased by 15.9% compared with July 2023’s figure of 1,890. Corporate insolvencies increased by 8.9% from July 2022’s total of 2,012 and increased by 52.2% compared with pre-pandemic levels in July 2019 (1,440). While personal insolvencies in July decreased by 0.2% in England and Wales, to a total of 10,524 compared with June’s total of 10,548, they increased by 24.1% compared with July 2023’s figure of 8,479. They also increased by 11.1% from July 2022’s total of 9,475 but decreased by 14.1% compared with pre-pandemic levels in July 2019 (12,253).
Scottish competition empowers girls to bridge gender gap in financial sector
Now in its fifth year, the Growing Future Assets Investment Competition challenges 13-18-year-old schoolgirls in Scotland to become investment whiz kids by identifying and pitching a company with great investment potential. Teenage girls in Scotland can register for the competition now and are in with a chance to win prizes of up to £1000 for their school and up to £200 in vouchers per student. Until recently, there were more men named Dave working as UK fund managers than women in total. Today, only 12% of UK fund managers are women. Future Asset aims to close the gender gap in this sector, empowering teenage girls across the country by teaching them the skills they need to consider a career in investment management.