Profits collapse at Scotland’s 500 top firms

By ERIKKA ASKELAND
Published on 11/01/2013 00:00

THE combined profits of Scotland’s 500 largest companies dropped dramatically last year as they felt the chill wind of recession, research published yesterdayhas shown.

Total pre-tax profits tumbled by 16.9 per cent to £10 billion. But turnover stayed more or less unchanged falling by just 0.1 per cent to £176.5bn, according to Scottish Business Insider.

The magazine also found that employee numbers dropped by just half a per cent to 721,795, although down considerably from a peak of 874,076 in 2010.

Banking, finance and insurance companies were the biggest shedders of jobs, down 6.2 per cent. But, with more than 180,000, the sector remained the largest employer. Most job losses were attributed to RBS,which axed 12,700. The offshore industry grew jobs the most, up by 10.1 per cent to 72,590.

Insurance giant Standard Life, which reported profits of £595 million on turnover of £9.1bn, replaced utility SSE at the top of the list. Perth-based SSE fell to fourth place after £1bn of exceptional items reduced its pre-tax profits from £2.11bn to £268.5m.

Oil and gas giant Total Upstream UK moves up one place to second position with a 26 per cent jump in profits to £1.7bn and an 8.15 per cent rise in turnover to £2.7bn.