Business News Round Up (28/05/2021)
Scotland top for equity finance deals outside of London
SMALLER businesses in Scotland raised equity finance more than any other part of the UK outside of London last year, according to analysis from the British Business Bank. Figures from the Bank’s annual Small Business Finance Markets report show that there were 242 equity deals in Scotland in 2020, 12% of the UK total. Only London, with 965 deals – 47% of the total – had more, with the South East third at 188. The number of transactions is double Scotland’s proportion of UK high growth businesses (6%), suggesting an increasing appetite for equity deals in the business community. In 2019, equity finance deals in Scotland represented 11% of the total UK figure. The figures come after increased initial public offering (IPO) and crowdfunding activity in Scotland. Calnex was the first Scottish IPO in two years when it made its market debut in October, followed by AMTE Power and Parsley Box. TC BioPharm, Pawprint, and Celtic Renewables have all also in recent months completed crowdfunding campaigns.
https://scottishbusinessnews.net/scotland-top-for-equity-finance-deals-outside-of-london/
North West business confidence dips in May but remains above national average
Business confidence in the North West dipped five points during May to 38% but remains well above the national reading of 33%, according to the latest Business Barometer from Lloyds Bank Commercial Banking. Companies in the North West reported higher confidence in their own business prospects month-on-month, up one point at 31%. When taken alongside their optimism in the economy, down four points to 44%, this gives a headline confidence reading of 38%. The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide. When it comes to jobs, a net balance of 13% of businesses in the region expect to increase staff levels over the next year, down three points on last month. Overall UK business confidence rose four points in May to 33%, a fourth consecutive month of growth. The reading comes after non-essential retail and hospitality firms reopened their doors to customers.
Glasgow office take-up almost doubles during the first quarter
Glasgow’s office market has continued to see an increase in uptake during the first quarter for this year, with prime office spaces expected to become scarcer, pushing rent higher. Property firm Savills reported a 49% increase in uptake from the last quarter of last year, with Glasgow recording 63,388 sq ft of take up, with a further 170,000 sq ft of office space under offer. Despite this, the company revealed take-up was down on the five year average by 67%, although the volume of requirements and current space present “strong prospects” for the remainder of the year. More than half of take-up came from construction firm Multiplex Europe, which let 34,000 sq ft at 2 Cadogan Square, the largest office deal in Glasgow during the first quarter this year. Demand for prime office space in Glasgow remained at pre-pandemic levels, with requirements in the market totalling around 800,000 sq ft, revealing significant occupier confidence in Glasgow, according to Savills. Current availability in Glasgow stands at 1.1 million sq ft. Only 37% of this is Grade A, totalling 426,000 sq ft, with 187,000 sq ft expected to be delivered in the second or third quarter of this year as new build or refurbished space.
https://www.insider.co.uk/news/glasgow-office-take-up-almost-24202639
BGF to build on record year by supporting recovery
BGF, the growth capital investor, believes it can beat last year’s record performance as it supports companies emerging from the lockdown. The group backed 61 firms in 2020, with an 11% rise in investment to £384 million. It was also a good year for exits with BGF generating returns of £228m. The group made a year-end operating profit of £346m, reflecting ongoing growth in its underlying portfolio and realisations. It is now looking to surpass those investments by targeting businesses that have outgrown the kind of early-stage funding available for start-ups, but have not yet achieved the scale of large, listed businesses. They also include the thousands of companies who may be over-indebted as a result of the pandemic. BGF is committed to supporting scaling businesses and believes that equity funding must be part of the solution to meeting these companies’ needs.
https://dailybusinessgroup.co.uk/2021/05/bgf-to-build-on-record-year-by-supporting-recovery/