Business News Round Up (24/07/2020)
Scotland provided with unprecedented additional funding guarantee to respond to Covid-19
The Scottish Government will receive a minimum of £1.9 billion in additional funding this year, on top of £4.6 billion confirmed since March to help provide support following the coronavirus pandemic, the UK government has announced. This will take the total amount of coronavirus funding guaranteed to the Scottish Government to a minimum of £6.5 billion for 2020/21 on top of their Spring Budget funding.
Over 50,000 North West businesses now in ‘significant financial distress’
More than 50,000 businesses are currently operating under ‘significant financial distress’, according to new data. The latest Red Flag Alert data from Begbies Traynor has shown that during Q2, there was a 9% year-on-year increase in the number of distressed firms. The figures from the corporate restructuring firm say that since the beginning of the pandemic in the UK, an additional 3,357 have fallen into distress – bringing the total to 51,010. Greater Manchester is now home to 21,442 troubled firms – an increase of 10%, while the Merseyside region has 7,413. Experts at Begbies Traynor said the rise could have been much higher, were it not for reduced court activity due to the coronavirus pandemic, which has substantially reduced the number of CCJs and other legal action being taken against indebted companies.
https://www.business-live.co.uk/economic-development/over-50000-north-west-businesses-18651131
Scotland’s ‘natural economy’ worth £29 billion claims a new report
Scotland’s so-called ‘natural economy’ adds £29.1 billion to the country’s economy making up more than a fifth of its total a new report commissioned by Scotland’s Rural College has found. The section of the economy is defined as including the tourism, food and drink, fishing and aquaculture, agriculture, energy, and forestry sectors and supports around 223,000 jobs in Scotland. However, much of the money is tied up in the energy sector including fossil fuels with the total gross value added (GVA) dropping to £8.2 billion once the energy sector is excluded.
M&A activity drops in NW but deals value soars
Merger and acquisition activity in the North West receded in the first half of the year, according to the latest report by consumer credit specialist Experian. The Experian Market IQ’s M&A Review for the first of the year has detailed activity across the region, during the first half of 2020 the North West, along with the rest of the UK has seen M&A activity drop, with a 40% decline in volumes compared with the same period in 2019. The two mega deals have cross-border involvement with shares in the Indian subsidiary of Port Sunlight-registered Unilever being sold for more than £2.5 billion, and Blackburn garage forecourts retailer EG Group’s offer of around £2 billion for Caltex Australia, a Sydney-based firm.
https://www.thebusinessdesk.com/northwest/news/2063779-ma-activity-drops-in-nw-but-deals-value-soars