Business News Round Up (29/01/2024)
Big companies at risk as nearly a fifth of listed firms issues profit warnings in 2023
Large listed companies came under increasing financial strain over 2023, new figures show, as the burden of higher interest rates weighed heavily on corporate balance sheets. In Q4 2023, listed companies issued 77 profit warnings according to EY’s profit warnings monitor. A third of these warnings from firms with annual revenue of over £1bn, around double the average rate. Firms in the consumer discretionary space accounted for 35% of all warnings in the final quarter while industrials made up 31%. Among consumer facing firms, Dr Martens, Kingfisher and Superdry all issued profit warnings in the final quarter of last year, as did Ashtead, which rents out industrial equipment. Profit warnings refer to official statements from listed companies that full-year profits will be materially below expectations. EY’s report suggested that cost pressures were beginning to ease, making up just 10% of warnings – down from 41% in the final quarter of 2022.
Scottish business confidence falls during fourth quarter
Business confidence in Scotland has dropped below both the UK average and the historical norm for the country but remains in positive territory. That’s according to the latest Institute of Chartered Accountants in England and Wales (ICAEW) monitor for Q4. The level of confidence was consistent with the broader performance of the Scottish economy, including the impact of wet weather on GDP, and ongoing financial challenges. However, while domestic sales growth slowed nationally, the picture in Scotland was much healthier and likely to have supported sentiment, with an annual rate of 5% reported in the fourth quarter, compared to a UK rate of 3.6%. Export sales were also up on the year before and are set to grow at a faster pace than anywhere in the UK. As a result of rising selling prices and strong domestic sales, Scottish businesses achieved profits growth of 3.3%, outstripping the UK average.
https://www.insider.co.uk/news/scottish-business-confidence-falls-during-31989541
Region’s businesses urged to seized £82 billion Horizon Europe funding opportunities
A new campaign launched to encourage UK businesses, academics, and researchers to apply for Horizon Europe funding kicks off today. Horizon is the world’s largest programme of research collaboration, which the UK is a part of after the Prime Minister secured a bespoke deal, last year. The average Horizon grant is worth £450,000 to a UK business, and ministers are determined that UK researchers and businesses capitalise on the opportunities the programme offers to support important research benefitting all our lives, from health to the environment. The multi-channel campaign will include media partnerships, content on digital audio platforms (such as podcasts), and targeted digital media investments, with a focus on paid social adverts on platforms regularly used by research professionals such as LinkedIn, and digital displays. It will also include real-world examples, spotlighting outstanding researchers and businesses who have delivered their ideas through Horizon Europe funding.
Innovative Green Hydrogen shore power trial launched at the Port of Leith
A consortium of four Scottish renewable and maritime companies have been awarded a UK Government Department for Transport grant of over £535,000 to develop an innovative UK-first approach that will use clean, green hydrogen energy to reduce carbon emissions from vessels when berthed in port. Supported by Forth Ports, the highly innovative trial will see the large tugs operating out of The Port of Leith powered by green hydrogen when tied up. The green hydrogen will be produced from treated wastewater from a nearby water treatment works, without compromising local water supplies. The year-long trial, run by partners Forth Ports, Waterwhelm, Logan Energy and PlusZero, will deliver a state-of-the-art demonstrator system for green hydrogen shore power which marine vessels can use when they are berthed, removing the need for the diesel-powered systems which are currently in use on some quaysides.