Business Digest August 2011 Carol Taylor Arts Services Manager Arts & Business Scotland 11 Abercromby Place Edinburgh EH3 6LB T 0131 556 3353 E [email protected] W www.artsandbusiness.org.uk/scotland Contents Business news 3 - 9 Philanthropy 9 Arts & sponsorship news 10 - 12 Arts & Business update 13 - 14 List of sponsored arts projects / events 15 - 19 2 BUSINESS NEWS Brewers, Distillers & Food/Drink Manufacturers The drinks firm behind Old Pulteney and Balblair single malts has reported a double-digit rise in full- year sales but said a bigger marketing spend capped its profits. Airdrie-based Inver House Distillers, which owns five distilleries and is a subsidiary of ThaiBev‟s International Beverage Holdings, yesterday said turnover in 2010 had risen by 19% to £62.9m, helped by Old Pulteney‟s biggest ever sponsorship campaign. The brand has made “significant increases” in target markets including Russia and the US. The Old Pulteney “Row to the Pole” campaign is backing explorer Jack Wishart‟s attempt to row to the North Pole. (The Scotsman, 25/8/11) Caorunn Scottish Gin, produced at the Balmenach Distillery in Speyside, has struck a major distribution deal for the Australian market with Japanese global drinks giant Suntory. The deal comes just ahead of the brand‟s two year anniversary. Earlier this year, Caorunn Scottish Gin, which has already become the third bet selling super premium gin in the UK, launched in the US and Spain. (The Herald, 18/8/11) A share issue by Fraserburgh-based craft beer company BrewDog has raised more than £1m in less than a month, paving the way for the firm to open a new brewery on the outskirts of Aberdeen. The low-carbon brewery, set to open in Dyce by the end of 2012m will produce the equivalent of 40 million bottles of beer a year. (The Herald, 11/8/11) Energy, Oil & Gas Oil and gas technology firm FMC Technologies is creating 240 new jobs in central Scotland. The US- based sub sea equipment and service business is expanding its Scottish workforce to almost 1,000 by adding 170 new jobs at its plant at Bellshill and another 70 at its Dunfermline facility. (Busines7, 31/8/11) Energy services heavyweight Wood Group has unveiled double-digit rises in turnover, profits and dividend following the £600m acquisition of production facilities business PSN and the disposal of its well support arm. The Aberdeen-based group yesterday said half-year profits jumped 49% after two significant deals reinforced its three “world leading” market positions. (The Scotsman, 24/8/11) Energy giant ScottishPower is to create 1500 jobs in Scotland as it spends £3bn upgrading electricity networks to boost use of renewable energy. The Spanish-owned firm said it needs the extra staff over the next ten years to upgrade about 500 miles of overhead power lines and carry out upgrades to the electricity grid links between England and Scotland. (The Scotsman, 18/8/11) Triodos Renewables, the alternative energy arm of the Dutch bank, has been granted planning permission to erect a second wind turbine near Fraserburgh. (The Scotsman, 9/8/11) Electrical equipment firm Dron & Dickson is expanding from its traditional oil and gas markets into renewable energy after securing a £6m cash injection. The Stirling-based business – which was founded in 1927 as an explosives supplier before moving into the oil industry during the 1970s boom – 3 is looking to develop electrical equipment for offshore windfarms. (Scotland on Sunday Business, 7/8/11) Energy giant E.ON is raising its fuel bills by 11.4% for electricity and 18.1% for gas from 13 September. It follows British Gas, ScottishPower and Scottish & Southern Energy in announcing price rises in recent weeks. (The Scotsman, 6/8/11) French oilfield services firm Technip has launched a new offshore wind business in Scotland. At the official opening in Aberdeen a memorandum of understanding (MOU) was signed with Iberdola's ScottishPower Renewables. That will see Technip join a consortium bidding for two of five new offshore wind projects on the French coast. Technip, which now employs around 900 people in Aberdeen with 100 of them in its offshore wind business, will act as a construction and engineering partner. (Business7, 2/8/11) Engineering & Manufacturing Eye scanning machine maker Optos is on course to launch “the most important device in its history” in America in October after yesterday receiving the nod from US regulators. The „Daytona‟ machine, which is smaller and more portable than the Dunfermline-based firm‟s current equipment, will open up new markets and improve its profit margins. (The Scotsman, 27/8/11) Yesterday, Jim McColl secured his place as the country‟s wealthiest entrepreneur, after the sale of his Clyde Union Pumps business added around £360m to his fortune. His Clyde Blowers empire struck an agreement late on Wednesday night with US Fortune 500 giant SPX to sell Clyde Union Pumps for £750m. The business includes the former Weir Pumps operation in Cathcart, Glasgow, where Mr McColl once worked as an apprentice and which he rescued from closure decades later. (The Herald, 26/8/11) Global engineering giant Aker Solutions yesterday announced a massive Scottish expansion plan that will see it recruit 300 staff at its Aberdeen-based oil services division on the back of increasingly strong outlooks in the UK and Norwegian North Sea, as well s Brazil, West Africa and Asia. (The Herald, 19/8/11) Financial Services Financial services workers who were forced to find employment in London following the credit crunch are returning to Scotland. Expansion at Tesco Bank and Virgin Money and newly created posts at the banks are attracting workers back to Edinburgh, while firms such as Barclays and BNP Paribas are moving teams to Glasgow. Some are heading north to improve their work-life balance, shorten commuting distances and take up positions in growing sectors such as asset finance, according to recruitment firm Badnoch & Clark. (Scotland on Sunday Business, 28/8/11) Investment banking staff will be in the front line after UBS became the latest financial giant to unveil thousands of job losses. The Swiss bank, which employs some 6,000 staff in the UK and 65,000 worldwide, yesterday said it would cut its headcount by 3,500 as it struggles with a sluggish global economy and increased regulatory pressures. It forms part of efforts to save £1.5bn by the end of 2013. UBS could not specify the impact on its UK workforce. (The Scotsman, 24//8/11) 4 HSBC has announced a £3.5m investment and the creation of 26 jobs in the north east of Scotland. The bank is spending £2.8 million on a new branch on Union Street in Aberdeen. The five-storey site will be HSBC's largest branch in Scotland and will employ 23 people when it opens early next year. There will also be three people hired as part of a £700,000 upgrade of existing offices on Queen's Road where the commercial, corporate and structured banking divisions will continue to be run from. John Rendall, chief executive for HSBC in Scotland, said: "Of all the new branches we‟re planning for Scotland, Aberdeen is by far our biggest investment. As a city with a thriving economy and international outlook, our expansion here forms an important part of our growth strategy for Scotland. This increased focus on Aberdeen is due to the success we‟ve experienced and the opportunities we know exist, particularly as it is home to an abundance of innovative, internationally focused businesses that we‟re well placed to serve. We recognise the importance of investing in our services and our increased visibility on the high street, coupled with our premier banking offering, will help drive our premium customer acquisition in the area”. (Business7, 17/8/11) Shares in Standard Life rose by more than 12% yesterday as the group issued strong half-year results which bosses said backed its “transition” from insurer to asset-gatherer. Chief executive David Nish said the group would “continue to succeed in the current volatile market conditions” thanks to its strong capital position and attractive products. He added: “We have a wide range of investments. We are not just an equity house.” (The Herald, 11/8/11) Royal Bank of Scotland is poised to make deep cuts in its 19,000-strong contingent of investment bankers. It is understood that as many as 2,000 posts could go as the Edinburgh-based bank contemplates its integration of Dutch bank ABN Amro. (The Herald, 5/8/11) Aviva has suggested it was strengthening its position as the UK‟s biggest insurer as it unveiled better than expected profits. It also said yesterday it would push the Government to reform annuity purchase to give retirees a better deal. (The Herald, 5/8/11) Nationalised lender Northern Rock revealed yesterday it had cut its losses and would be trading profitably in the second half of 2012 – although it also flagged up further possible job cuts. Chairman Ron Sandler said he was “pleased with the level of interest” from potential suitors interested in taking over the bank, with the period for indicative bids having closed last week. (The Scotsman, 4/8/11) Barclays became the latest bank to slash jobs yesterday after announcing that compensation payments to customers mis-sold insurance products contributed to a sharp slump in profits. Despite the set-back, the American-born chief executive Bob Diamond claimed it had been an “encouraging performance, given the very difficult environment”. A total of 1,400 staff were axed in the first six months, half of them in its investment banking division, Barcap.