Business News Round Up (30/07/2021)
Furloughed jobs in UK plunge to pandemic low as economy opens
The number of jobs supported by the United Kingdom government furlough programme fell to the lowest level since the start of the pandemic as the economy took a further step towards normality. At the end of June, the number of people getting support from the Coronavirus Job Retention Scheme was 1.86 million, almost 600,000 fewer than a month earlier, the UK tax authority said on Thursday. A survey-based estimate by the Office of National Statistics (ONS) suggested the decline continued into July. How quickly furloughed workers return to work is a key question that will determine the speed of the UK’s economic recovery this year and beyond. Bank of England policymakers are also closely watching the figures as they consider when to start withdrawing the monetary stimulus deployed to fight the coronavirus recession. The decline is a boost for Prime Minister Boris Johnson’s government, which has spent almost £70 billion (S$132 billion) supporting nearly 12 million jobs at various times since the pandemic began in March last year. The latest data cover the weeks following the reopening of bars, restaurants, and cinemas on May 17.
BGF predicts strong investment outlook for Scottish businesses
Long-term patient investor BGF has predicted a strong outlook for businesses in Scotland. Its Scottish team has invested close to £33m across 10 Scottish growth businesses in the past six months, including its second investment in an Initial Public Offering (IPO) in 12 months. BGF makes initial investments between £1m to £15m for a minority equity stake, backing ambitious teams across a range of sectors. In June, BGF invested £7m in The Artisanal Spirits Company, owner of the Scotch Malt Whisky Society, as part of its admission to the Alternative Investment Market (AIM). The IPO achieved a valuation of around £78m. The deal follows BGF’s investment in Calnex Solutions, as part of the Linlithgow-based telecom test provider’s IPO in September 2020. In central Scotland, its investments include: £4m into social care provider CSN Care Group; £5.2m in video recruitment software firm Odro; £5m into Fife-headquartered natural pet food producer Bella & Duke; and part of a $4m investment round in Edinburgh-based hybrid workspace platform Desana. Many of BGF’s existing portfolio companies in central Scotland also experienced growth in the first half of 2021.
https://www.insider.co.uk/news/bgf-predicts-strong-investment-outlook-24643134
Empty shop numbers rise as Covid continues to bite
The number of empty shops in Britain has continued to rise as retailers struggle with the effects of the Covid pandemic, the British Retail Consortium has said. Shopping centres have been hardest hit, with nearly one in five units empty, the industry group said. The North East of England had the highest vacancy rate, followed by Wales and the north west. The Covid pandemic has accelerated a shift towards online shopping. Many shops were shuttered during lockdowns, although retail sales in June were near pre-lockdown levels, as the reopening of shops released pent-up demand. However, fashion retailers have been hit hard by the pandemic, with the closure of well-known High Street brands such as Debenhams and Topshop contributing to vacancies. But it is shopping centres which had the highest vacancy rate from April to June.
https://www.bbc.co.uk/news/business-58007313
North West M&A market jumps 36% in first half of 2021
The North West mergers and acquisitions (M&A) market made a strong start to the year, the latest Experian M&A Review revealed today (July 30). Focusing on the first half of 2021, it showed the regional market was up by 36% on the corresponding 2020 figures, with 438 transactions valued at £6.9bn. This half year is the fourth largest in terms of volume over the past decade, with only the second half of 2018 (471), H1 2019 (449) and H1 2016 (463) seeing higher levels of activity. The value statistics continue the upward trend that began in the second half of 2019, with a 2.5% increase on last year’s results. The volume of development capital transactions has remained relatively consistent compared with last year, with 57 transaction in the first half of 2021, compared with 56 the previous year, while acquisitions represented 64% of all transactions with a total volume of 283 – up from 188 in the first half of 2020. Other notable increases came in the volume of employee buyouts, which appear to be an ever more popular choice for founders in the North West when they are exiting a company. The North West region represented 11% of the total volume of UK M&A and contributed to five per cent of the value.