Scottish Business Briefing - Tuesday 27 October, 2009

Published on Tuesday 27 October 2009 08:32

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.

BANKING & INSURANCE

Standard Life pulls out of mortgage market in 226m sale

STANDARD Life yesterday sold its banking operation to Barclays for 226 million in a move that will be watched for closer ties between the two companies (Scotsman). The cash deal signals Standard Life's withdrawal from the mortgage business, but under a strategic agreement the Edinburgh-based insurer will provide pension products, mainly self-invested personal pensions to Barclays customers. It is understood it could lead to other savings and investment products being sold through Barclays.

Read all today's banking news from scotsman.com

ENERGY & UTILITIES

BP profits hit by lower oil price

Lower oil prices have continued to hurt BP, with its third-quarter profits more than halving from a year ago (BBC). Its replacement cost profit between July and September was $4.98bn (3bn), down from $10bn a year earlier. However, the results were ahead of analysts' forecasts after the company made bigger-than-expected cost cuts. Although oil prices have risen in recent months to about $80 a barrel, they are well off the $147 high set in July last year.

Read all today's energy and utilities news from scotsman.com

INDUSTRY

Centaur plans to transform old Compaq plant into data centre

AN English property developer is behind plans to turn the former Compaq electronics plant in Ayr into a 25m data-centre (Scotsman). Alan Fernback, whose Centaur Group owns a 100m portfolio of industrial, warehousing, offices, residential flats and land throughout the UK, has engaged Scottish businessman William Morris to negotiate a deal to convert the factory. Morris is talking to a number of companies, including ScottishPower and BT, to fit out the plant. The plan is to turn the former circuit board manufacturing facility into a hosting data centre that will rent out computer services.

Building of bypass goes Morrison's way

MORRISON Construction, the Edinburgh-based infrastructure company, was yesterday named as the main contractor for a 31.5 million bypass on the notorious A96 trunk road, the main route from Inverness to Aberdeen (Scotsman). The stretch – which will bypass the villages of Fochabers and Mosstodloch in Moray – will include a single carriageway with overtaking lanes, two bridges and four underpasses. Transport Scotland, the Scottish Government agency that awarded the contract for the three-mile stretch, said the bypass will improve "safety and significantly reduce congestion".

Read all today's industry news from scotsman.com

MEDIA & LEISURE

Edinburgh strikes it lucky with five-star Missoni launch

EDINBURGH'S location as the flagship site for the new Missoni Hotel brand was down more to opportunism than a specific plan to target the city, according to the owner, who has unveiled intentions to roll out the brand in a number of key cities (Scotsman). At the official launch of the five-star hotel on the site of the former council offices on the Royal Mile, Kurt Ritter admitted that the choice of Edinburgh was due to a "bottom-up strategy" employed by Brussels-based hotel group Rezidor. Rather than start in top-flight hotel cities such as Paris or Milan, the choice of Edinburgh reflected an "opportunistic strategy".

1.1m hotel refurbishment plans approved by HIE

Funding of 1.12m towards upgrading two Kintyre Hotels has been approved by Highlands and Islands Enterprise (HIE), triggered by the opening of the Machrihanish Dunes golf course in July (Herald). There will also be a further 744,000 investment from the European Regional Development Fund. Southworth Development LLC of Boston, Massachusetts, through its subsidiary Kintyre Development, plans to restore the Ugadale Hotel in Machrihanish and the Royal Hotel in Campbeltown. The redevelopment will form part of a comprehensive plan of investment by the international golf resort management and firm.

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

Scotsman Business Club

Get to the heart of the issues affecting Scottish business at www.scotsman.com/businessclub. Features include blogs from The Scotsman's formidable team of business writers - including Bill Jamieson, Martin Flanagan, Peter MacMahon and Scott Reid, a diary of forthcoming company announcements and networking events and video interviews with leading business experts covering a wide range of useful topics."