Business News Round Up (25/02/2025)


BDO: Increase in zombie companies in Scottish mid-market as challenging economic conditions continue to bite

A growing number of mid-sized Scottish businesses are at risk of becoming “zombie” companies, according to research by BDO. Rising costs and challenging economic conditions are squeezing growth, with 13.5% of these firms now considered vulnerable – a 0.8% increase versus the previous year’s figures. UK-wide, 15.9% of mid-sized businesses are classed as ‘at risk’, a year-on-year increase of 3.5 percentage points. Zombie companies are those that generate just enough cash to continue operating and service their debt but not to invest in growth. The BDO tracker, which analysed more than 20,000 businesses with a turnover between £10m and £500m, found that very few sectors have been able to buck the trend, with all but two showing a notable increase in the number of ‘at risk’ businesses. UK-wide, real estate has the highest number of ‘at risk’ companies this year, with 25.1%of the sector exhibiting signs of a zombie business.

https://www.scottishfinancialnews.com/articles/bdo-increase-in-zombie-companies-in-scottish-mid-market-as-challenging-economic-conditions-continue-to-bite

Female representation on UK boards reaches record levels

Top British companies are continuing to lead the way for gender equality in boardrooms with women occupying nearly 43% of roles on company boards, according to a new report. The FTSE Women Leaders Review 2025, backed by the government, shows that women now occupy 1,275 or 43% of roles on company boards and 6,743 (35%) of leadership roles at the 350 FTSE companies. This marks a year-on-year increase and means the target of 40% women’s representation by the end of this year continues to be achieved by FTSE350 businesses. At a London event business leaders, ministers and the leaders of the Review will come together to reflect upon and celebrate this progress. However, the government said there is still more to do to bring more women into roles such as company chairs and CEOs and to increase the number of women on boards and in leadership who hold executive roles. 

https://businesscloud.co.uk/news/female-representation-on-uk-boards-reaches-record-levels

Importance of degree apprenticeships to businesses in Manchester laid bare by new study

A recent report has lifted the lid on the importance of degree apprenticeships to businesses by highlighting the critical role they play in driving productivity, social inclusion and tackling the skills gap. The findings come from Manchester Metropolitan University, a University Vocational Awards Council (UVAC) member organisation, which conducted the study using data from over 5,000 apprentices and more than 600 employers. From a recruitment perspective, 93% of firms are investing in higher and degree apprentices to bolster their talent pipeline, whilst 91% agreed they help address skills gaps within their business. SMEs also regard them as vital, with 58% claiming they bring new talent to their organisation. The report also provides an insight into the potential impact of the government’s proposed changes to the Apprenticeship Levy, which aims to shift funding priorities towards lower-level and new foundation apprenticeships for young people and those at the start of their careers.

https://www.manchesterworld.uk/community/importance-of-degree-apprenticeships-to-businesses-in-manchester-laid-bare-by-new-study-5004709

Scottish involvement in £17m innovation drive celebrated as major milestone

Scotland should be “immensely proud” of being named sole UK collaborator on a major pan-European programme aimed at transforming healthcare through digital innovation, says a formal NHS partner. Co-funded by the EU, the UNITE consortium is bringing together a diverse group of partners to collaborate on the development of innovative digital solutions and address pressing healthcare challenges, with Scottish Enterprise among those selected to take an international lead. The transformative £17 million programme envisions “a borderless European digital health ecosystem” that will open calls for proposals to “cascade funding to highly innovative European companies”. These calls, UNITE says, will support startups, scale-ups, and SMEs in delivering deep tech solutions that can bridge regional innovation gaps, enhance Europe’s global competitiveness, and improve equity of access to healthcare.

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