Business Digest
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Business Digest November 2013 Arts & Business Scotland 11 Abercromby Place Edinburgh EH3 6LB 0131 556 3353 www.aandbscotland.org.uk Arts & Business Scotland is a company limited by guarantee registered in Scotland (SC406905) and a Scottish charity (SC042631).The registered office is 11 Abercromby Place, Edinburgh, EH3 6LB. Contents Business news 3 Philanthopy 11 Arts & sponsorship news 11 Arts & Business update 14 List of sponsored arts projects / events 15 2 BUSINESS NEWS Brewers, Distillers & Food/Drink Manufacturers Scotch whisky specialist Gordon & MacPhail has reported a dip in annual profits, but is continuing to enjoy strong growth in the volume of sales of its Benromach single malt. The Urquhart family owned Gordon & MacPhail business, which files its accounts as Speymalt Whisky Distributors, saw its pre-tax profits dip to £2.6 million in the year to February, from £3m in the prior 12 months. However, the latest annual profit, revealed in figures published today, was comfortably ahead of the £2.36m figure for the year to February 2011. (Herald 26/11/2013) Soft drinks group Britvic today reported an 18.4 per cent rise in annual profits, helped by this summer’s heatwave. The maker of Fruit Shoot and Tango drinks, which pulled out of a planned merger with rival AG Barr earlier this year, posted an underlying pre-tax profit of £137.9 million for the year to 29 September, on revenues 4.4 per cent higher at £1.3 billion. (Scotsman 26/11/2013) Arran Brewery managing director Gerald Michaluk will today formally launch his plans to raise up to £4 million through crowdfunding to upgrade his current site and open two further breweries on the mainland. Michaluk plans to issue up to 50,000 new “B” shares in his company, representing 4.76 per cent of its share capital and valuing the business at about £80m. (Scotsman 25/11/2013) Drinks giant The Edrington Group has announced plans for a new £100 million distillery and visitor centre development in Speyside. Glasgow-based Edrington said it plans to plans to build a new visitor centre for its single malt whisky, The Macallan and a new distillery adjacent to its current distillery, which will be closed and preserved. (Business Insider 28/11/2013) The company behind iconic British treats such as Jammie Dodgers and Wagon Wheels has been snapped up by a Canadian pension fund in a deal thought to be worth almost £350 million. Burton’s Biscuits, which employs some 800 workers at its Sighthill plant in Edinburgh, has been sold to Ontario Teachers’ Pension Plan (OTPP). Jo Taylor, head of the pension fund’s London office, said the plan was to support growth plans at the business, with the possibility of using OTPP’s formidable firepower to make strategic acquisitions. (Scotsman 19/11/2013) Wine retailer Majestic has expanded its corporate team in Scotland as it tries to grab a larger slice of the on-trade market. Chief executive Steve Lewis told The Scotsman that the Aim-quoted company had hired a business development manager to cover Glasgow and the west coast to complement its existing worker serving Edinburgh and the Highlands. “We’re targeting gastro-pubs, bars and restaurants,” said Lewis. “We’re also targeting wedding venues around Aberdeen and Inverness, which is our highest-turnover store in Scotland.” (Scotsman 18/11/2013) Carr's Milling Industries has said a £17 million investment in a new Scottish flour mill can deliver benefits for years to come. The Kirkcaldy site, which started production in September, is expected to help return the food division at Carr's to "improved levels of financial performance". Overall, Carr's saw its pre-tax profits rise 21.5% from £13.1m to a record £15.9m with revenue increasing 15.8% from £404.1m to £468.1m in the 12 months to August 31 this year. (Herald 12/11/2013) 3 Valvona & Crolla, the Edinburgh deli and cafe business celebrating its 80th anniversary next year, maintained a steady profit at operating and pre-tax level last year on a marginally higher turnover. V & C's pre-tax profit in 2012 was almost identical to the previous year, up £102 at £85,666, on turnover up from £4.5 million to £4.61m. (Herald 07/11/2013) Porridge-maker Stoats is predicting a boost in turnover after securing a listing in 116 Tesco stores across Scotland. The Edinburgh business will see its porridge bars, boxes of oats and instant pots stocked by the supermarket giant. (Herald 05/11/2013) Petra Wetzel, maker of German artisan lagers and wheat beers in Glasgow, has come up with some entertainment with a difference that may just bring a touch of culture to the drinking classes. In December, West Brewery will play host for the first time to two opera nights, during which guests will experience a “tasting menu of operatic delights”. (Scotsman 14/10/2013) Energy, Oil & Gas Renewable energy firm Infinis, which is chaired by former SSE chief executive Ian Marchant, today reported a 21.2 per cent rise in half-year profits as it delivered its first set of results since floating earlier this month. Infinis, which has offices in Edinburgh and Northampton, generates about 7 per cent of the UK’s total renewable energy from 147 power plants, including seven wind farms in Scotland. (Scotsman 29/11/2013) Saltire Energy, the drilling-tool specialist perhaps better known for its sponsorship of golfing hero Paul Lawrie, saw turnover jump 50% last year to £32.9m and operating profit rise 31% to £18.5m. It is the second successive 50% hike in turnover for Saltire, founded in 1986, which has now more than doubled sales in two years. (Herald 19/11/2013) Faroe Petroleum is increasing its exposure to the UK North Sea with a deal to buy a further 50% stake in an undeveloped discovery off Scotland reckoned to contain millions of barrels of oil. The Aberdeen-based oil and gas firm has agreed to buy a 50% interest in the licence containing the Lowlander discovery from privately owned North Sea ventures. (Herald 15/11/2013) North Sea focused Ithaca Energy achieved record third quarter results following the £203 million acquisition of Valiant Petroleum in March last year, highlighting the big returns firms can generate in the area. The Aberdeen-based oil and gas independent made $46m (£28.75m) pre-tax profits in the three months to September compared with $2m in the same period last year. (Herald 12/11/2013) Kilmac Group has acquired a biomass business for an undisclosed sum to boost its renewables division. All seven staff at Angus-based Eco Biomass and its founder George Penman will transfer over as part of the deal. Kilmac, which has its headquarters in Perth, already has onshore wind and hydro in its energy arm. (Herald 08/11/2013) Shipping and energy services firm Craig Group has marked its 80th anniversary with a strong rise in turnover and profit. The Aberdeen-headquartered firm, a privately owned business now employing a fourth generation of the Craig family, said revenues reached £146.8 million in the last financial year, up from £123.3m. (Scotsman (06/11/2013) 4 The man who set up Murray International Metals' (MIM) steel business in Singapore in 1992 has chosen Glasgow as the first UK base for his new venture. Michael Craig assembled a group of North Sea oil and gas veterans, many ex-MIM, to set up EEW Energy Services, a Singapore-based steel supplier last year. Following a £6 million investment, EEW Energy has opened its first UK operation in Glasgow's Port Dundas, where an initial 15 staff will be employed. (Herald 04/11/2013) Financial Services Barclays is to cut 244 jobs with the closure of its Glasgow office where claims are handled for the mis-selling of payment protection insurance (PPI). The bank said the volume of PPI cases had fallen and the lease on the site expired next year. Ongoing PPI claims will now be handled at other centres. Barclays said it would work to find other roles for the 137 full-time and 107 temporary staff affected. (BBC News 21/11/2103) Aberdeen Asset Management has confirmed it is to buy Lloyds Banking Group's Scottish Widows Investment Partnership business, in an all-share deal worth £560m based on its Friday closing price. The takeover of SWIP will see Aberdeen become Europe's biggest independent fund manager. The deal will result in Lloyds holding a 9.9% stake in Aberdeen. (Herald 18/11/2013) Nationwide Building Society has seen bumper half-year profits in spite of a £22 million hit from consolidating its regional brands including Dunfermline Building Society. Yesterday Nationwide unveiled a 25% rise in underlying income from £1.1 billion to almost £1.4bn in the six months to September. Underlying profit before tax grew from £130m to £332m. (Herald 16/11/2013) Wealth manager Investec has again taken advantage of unsettled conditions across the sector to bolster its teams in Edinburgh and Glasgow. The nine recruits from Barclays and Deutsche Bank form the biggest of three recent raids by Investec, which is aggressively pushing to increase its share in the market for advice to wealthy Scottish-based investors. (Scotsman 08/11/2013) Adrian Grace, chief executive of Edinburgh-based life and pensions firm Aegon UK, credited the recent restructuring of the company for a sharp rise in new business. The firm reported a 17 per cent rise in new business for the third quarter, driven by a 22 per cent jump in sales of pensions to £175 million.