Scottish Business Briefing - Friday 26 February, 2010

Published on Friday 26 February 2010 08:34

WELCOME to scotsman.com's Scottish Business Briefing. Every morning we bring you a comprehensive round-up of all news affecting business in Scotland today.

ECONOMY

UK companies 'need support' as investment levels in Q4 of 2009 plunge

BUSINESS leaders yesterday called for further support for struggling UK companies after an "alarming" plunge in investment levels in the final quarter of 2009 (Scotsman). Official figures showed business investment in Britain falling by a record 24.1 per cent in the three-month period, compared with a year earlier. The 5.8 per cent quarter-on-quarter reduction marked the sixth successive quarter of falls and triggered the steepest annual fall since records began in 1967.

UK house prices 'lose momentum'

UK house prices fell for the first time in 10 months in February as icy weather put off house hunters, the Nationwide building society has said (BBC). Average property values dropped by 1% compared with January, with the average home worth 161,320. But the annual rate of increase accelerated to 9.2% because prices dropped faster a year ago.

Read all today's economics news from scotsman.com

BANKING & INSURANCE

Lloyds posts 6.3bn loss for 2009

Lloyds Banking Group has reported an operating loss of 6.3bn for 2009, after it continued to struggle with billions of pounds of bad loans (BBC). This was a slightly smaller loss than analysts had expected and less than the 6.7bn operating loss the group made in the previous year. On a pre-tax profit basis, the group made a profit of 1bn. The group lost 24bn on bad loans, most of which came from Halifax Bank of Scotland, which it took over last year

Read all today's banking news from scotsman.com

MEDIA & LEISURE

STV board bullish over profit fall

SCOTTISH Television continues to grapple with a tough advertising market that contributed to a fall in group pre-tax profits last year from 13 million to 6m (Scotsman). Profits were down despite cost-cutting efforts. Adjusting for the sale of Virgin Radio, revenue was down 17 per cent, 23m, to 110m. There is no dividend. But progress is being made, according to the board, which pointed out that it had met or exceeded its targets and was increasing its share of regional advertising.

Bigmouthmedia to merge with web marketing rival LBI

BIGMOUTHMEDIA, the Edinburgh-based website marketing agency, yesterday unveiled plans to merge with Netherlands-listed Lost Boys International (LBI) to create "Europe's largest search engine marketing specialist" (Scotsman). Private equity investors Carlyle, Cyrte and Janivo will pump 40 million (35m) into the enlarged firm, which is expected to raise a further 10m through a rights issue to LBI investors in July.

Read all today's media and leisure news from scotsman.com

MANAGEMENT

Top executives leave Aegon as management split in two

AEGON UK, the Edinburgh-based life assurer, yesterday announced the shock departure of two of its senior executives in a shake-up of its management team (Scotsman). Feilim Mackle, director of life and pensions, and Steve Clode, marketing director, were told on Wednesday they were no longer part of chief executive Otto Thoresen's plans, and left that evening.

Read all today's personal finance news from scotsman.com

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