Scottish Business Briefing - Wednesday 24 June, 2009

Published on Wednesday 24 June 2009 09:27

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.

INDUSTRY

Aggreko shares power down after weak demand warning

AGGREKO shares dropped 6 per cent yesterday after the company revealed it has cut its capital expenditure plans and warned of further weakening in demand (Scotsman). The Glasgow-based group, which supplies temporary power generators to customers around the world, admitted demand had deteriorated in the second quarter in the US, Europe and the Middle East. But the firm also revealed that thanks to the weakness of sterling against the dollar, this year's profits could still exceed last year's record level.

Engineering survivor set fair after sale to employees

A survivor from Scotland's Victorian engineering glory days is being sold to its employees after its owner spurned the prospect of a lucrative overseas sale in order to protect his staff (Herald).

Frank Phair has agreed to sell Stewart Buchanan group, the valves-to-gauges maker, to its 156 employees in a deal that is expected to ensure the firm will remain in north Lanarkshire for years to come.

With at least three other owner-managers in the process of selling their firms to their employees in Scotland, the disposal comes at a time when employee buyouts seem to be enjoying a marked increase in popularity.

Read all today's industry news from scotsman.com

ENERGY & UTILITIES

Sovereign reduces debt with 420,000 property disposal

Sovereign Oilfield Group, the oil services group that recently completed a long-awaited refinancing, has raised 420,000 to reduce debt as it battles a slowdown in activity in the North Sea (Herald).

The Aberdeen-based firm raised the money by selling a property in Cambuslang. This had been vacated by RDT Precision Engineers drilling business, which Sovereign bought in 2007 under a debt- funded acquisition programme.

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

MEDIA & LEISURE

200 jobs lost as Setanta goes off air into administration

THE UK channels of sports broadcaster Setanta shut down last night after the business collapsed in Britain and went into administration with the loss of 200 jobs (Scotsman). Viewers were greeted with an on-screen message which said the firm had "ceased trading in Great Britain". The Irish firm – which has been hit by the loss of football television rights in Scotland and England – went off air just before 6pm. The wind-down of Setanta's British business, which has 420 staff, will mean 200 job losses, administrators Deloitte confirmed. Setanta's international and Ireland businesses are continuing to trade on air while talks with possible buyers are under way, Deloitte added.

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

PERSONAL FINANCE

Pensions crunched for millions of staff as 96% of firms plan shake-up

THE economic downturn is accelerating the shake-up of company pension schemes, with 96 per cent of firms planning to change the pension provision they offer, says research (Scotsman). Changes are planned to both final-salary and defined-contribution schemes as 68 per cent of companies try to cut costs, say PricewaterhouseCoopers. Three-quarters of companies said proposed changes to pension tax relief for high-earners, announced in the Budget, had reduced their motivation to provide any sort of pension.

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

RETAIL

Comet-owner Kesa reports losses

Kesa Electricals, the company that owns Comet in the UK and Darty in France, has reported a full-year loss and predicted another difficult year (BBC). In the year to the end of April it made a pre-tax loss of 81.8m, compared with a pre-tax profit of 128.8m last year. The retailer said it had taken steps to reduce costs, especially at Comet, to reduce the impact of the recession. The losses were largely due to a write-down of 118.5m in the value of its Spanish unit Menaje del Hogars.

Read all today's retail news from scotsman.com

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