Scottish Business Briefing - Thursday 21 March, 2013
ECONOMICS
Budget 2013: Osborne desperate budget gamble to revive economy
GEORGE Osborne made a desperate attempt to haul Britain away from a fresh slump yesterday, putting a high-risk plan to kickstart the housing market at the heart of his Budget. The Chancellor said he was presenting a Budget for an “aspiration nation”, even as growth forecasts were slashed and official forecasters warned that deficit reduction had “stalled” (Scotsman).
SCOTSMAN CONFERENCE
The Economics of Independence 2013
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BANKING
Clydesdale faces loan costs legal challenge
Clydesdale Bank’s exclusion of most borrowers from its hedging products review is being challenged in a court action aimed at freeing hundreds of businesses from loan straitjackets. Businessman John Glare, founder of the NAB Customer Support Group, has begun a Court of Session action which argues the bank cannot enforce the “break costs” of its fixed-rate tailored business loans (TBLs), because it cannot identify or justify them (Herald).
ENERGY & UTILITIES
£1 billion wiped off projected North Sea oil cash
ALEX Salmond’s independence plans were dealt a blow yesterday when the UK’s economic forecaster downgraded the North Sea oil tax revenue expected over the next five years by almost one billion pounds. The independent Office for Budget Responsibility (OBR) said North Sea oil and gas cash would amount to £33.9 billion between 2012-13 and 2017-18 – a downward revision of £0.9 bn since the previous estimate last autumn (Scotsman).
FOOD, DRINK & AGRICULTURE
Barr profits edge up as it works to seal Britvic merger
Irn-Bru maker AG Barr has reported a 4.3 per cent rise in annual profits and said it continued to work with the Competition Commission to secure clearance for its £1.4 billion merger with Britvic. Cumbernauld-based Barr, which also produces Rubicon, Strathmore water and Tizer, posted an underlying pre-tax profit of £35 million for the year to 26 January, up from £33.6m a year earlier, on turnover 6.6 per cent higher at £237.6m (Scotsman).
INDUSTRY
Optos shares slump after warning of ‘softer’ sales
EYE scanner specialist Optos saw its shares plunge 17 per cent yesterday after it warned demand for its retinal imaging devices was “softer” than expected. Chief executive Roy Davis said sales during the first half of the year had been affected by a software upgrade that prompted some customers to delay placing orders for the Daytona product, which optometrists use to detect eye disease (http://www.scotsman.com/business/industry/optos-shares-slump-after-warning-of-softer-sales-1-2846464|Scotsman|Scotsman})
African wins worth £158m
Wood Group announced yesterday that it had secured 11 new contracts in Africa worth around £158million. The Aberdeen-based international energy service giant, which earlier this month posted a rise in its pre-tax profits of 43% to £240million, said the contracts were awarded during the past year for projects in five African countries (P&J).