Business News Round Up (23/09/2024)
Insolvency trend is upwards ‘as firms face reality’
There was a steep fall in company insolvencies in Scotland last month, though they have been rising steadily for the past two years as businesses that were propped up by pandemic support ‘face reality’. The Insolvency Service said there was a 9% year-on-year drop, with 102 firms getting into severe financial difficulties. Michelle Elliot, a restructuring advisory partner at FRP in Glasgow, said many firms in construction, retail, leisure and hospitality are struggling with uncertain trading conditions. David Meldrum, an insolvency practitioner with UK top 10 accountancy and advisory firm Azets, said that despite falling numbers in August 2024, there are still high numbers of businesses experiencing distress and the long-term trend shows that corporate insolvencies have been steadily increasing since 2022. The data shows creditors voluntary liquidations (CVLs) continue to exceed compulsory liquidations, a trend that has continued since the pandemic.
UK economy: growth continues but budget concerns ‘jangling nerves’
Growth looks set to slow in the UK economy as businesses await the October budget with a degree of caution. The latest ‘flash’ purchasing managers’ index (PMI) came in at 52.9, down from last month’s figure of 53.8 and comfortably below expectations. It was the lowest reading for two months. Nevertheless, the figure was comfortably above the 50 no-change mark and extended the run of expansion to 11 consecutive months. The survey showed slower growth in both the services and the manufacturing sector, though both remained in expansionary territory. “Where higher levels of output were reported, survey respondents mostly commented on rising customer demand and improving domestic economic conditions. Meanwhile, fragile client confidence and ongoing inventory cutbacks were cited as headwinds to growth in September,” the survey said. The economy survey revealed another robust month for new business, led by strengthening order books across the services sector.
£20bn injected into UK businesses by Secure Trust Bank
Secure Trust Bank Commercial Finance (STB CF), the asset-based lending division of Secure Trust Bank, has provided nearly £20bn in funding to over 250 UK businesses over the past decade. Specialising in multi-asset ABL solutions, STB CF supports mergers, acquisitions, refinancing, and turnarounds, offering debt facilities of up to £50m to mid-market companies. Since 2014, STB CF has developed long-term relationships with private equity firms and investors, helping drive value across various sectors. Deals include financing Chiltern Capital’s acquisition of Batt Cables and the merger of Lyte Ladders and LFI under Breal Capital. It also supported Modella Capital’s acquisition of Hobbycraft, enabling growth plans for the UK’s largest arts and crafts retailer. STB CF has worked with high street brands, providing facilities such as £8m for Ann Summers’ online expansion and £50m to British Steel.
Dundee Uni wins for innovation & entrepreneurship at European Awards
The University of Dundee has been named Innovative & Entrepreneurial University of the Year at an awards ceremony celebrating entrepreneurship and engagement in higher education. This year’s Triple E European Awards ceremony was held at the 2024 ACEEU Europe-Africa Forum in Lisbon. The Scottish university was recognised as championing an entrepreneurial culture, with enterprise and engagement standing alongside teaching and research as key pillars of its activity. This ranking was determined by factors such as number of patents, spin-out companies created, and recent portfolio success. It follows the university being named in 2023 as the UK’s top university for spin-out success by Octopus Ventures. Dundee secured the top place due to its “incredibly high” average exit value for its spin-out companies, bolstered by Exscientia—the biotech company using AI to support drug discovery.
https://www.digit.fyi/dundee-uni-wins-for-innovation-entrepreneurship-at-european-awards/