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 & INSURANCEAsian sales prop up Prudential UK insurance giant Prudential again has Asian sales to thank for filling the void left by other world markets.
(The Scotsman) Despite no change in sales from the UK market and a drop in the US, the company still posted a 14% rise in first quarter sales. As well as faltering consumer confidence the company pointed to a lack of interest in equity based products on the back of stock market volatility as the reason for falling sales in the US, which saw sales drop 7% to £165 million. Total group sales of £729 million represented a 4% increase on analysts' predictions. The better-than-expected first quarter sales were helped by a 30% rise in the Far East to sales of £375 million. Mark Tucker, group chief executive, still believes the prospects for the year remain good, he said: "This performance confirms the resilience that we derive from our geographic spread across three regions, and particularly the role of Asia as our leading source of new business."
Actuaries postpone merger Scottish actuaries have decided against a proposed plan to abolish their 152-year-old faculty in a move that would have seen them merge with their English counterparts.
(The Herald) A majority of the Faculty of Actuaries' 137 members voted at a special meeting in Edinburgh to carry three resolutions calling for further consultation on the issue that would see them merge with the Institute of Actuaries. Although the merged institute would continue to use the Scottish motto ("ad finem fidelis" – faithful to the end), while also retaining its crest and royal charter, support to remain autonomous on certain levels prevented the merger. Ronnie Sloan, an activist against the merger, said: "All the important professional functions are merged already, and in this time of devolving things in Britain, it just seems vandalism – the medical fraternity, surgeons and accountants all have separate bodies in Scotland."
Read all today's banking news from scotsman.comENERGY & UTILITIESWood Group set to join FTSE 100Aberdeen-based oil major Wood Group looks set to join the FTSE 100 index this month as the company's shares hit new highs thanks to continually high crude oil prices and consolidation in the sector.
(The Scotsman) Following a wave of consolidation in the sector, Wood, whose share price rose to a record 450.25p, an increase of 2.8%, is waiting for the next move from Reading-based rival Expro International after its board indicated that it was recommending a 1,435p-a-share bid. Sir Ian Wood, chairman of Wood Group, has until now played down the idea of the company needing to take part in industry consolidation, saying last month: "Consolidation generally only takes place in a market when it's going the other way. Most of the major players in oil services in the UK are growing extremely well and I'm not quite sure why people think there's got to be consolidation." The company, which was placed on the six-member Footsie reserve list in March, now looks like the leading contender to step up and join Britain's largest blue-chip companies.
Strike planned at refinery A row over pensions looks like resulting in a two-day strike for workers at a Grangemouth fuel refinery.
(Aberdeen Press & Journal) The industry union, Unite, said the proposed strike, which will take place on April 27 and 28, is likely to affect the supply of fuel to garages and airports countrywide. The plant, run by Ineos, is likely to lose up to 1,200 workers over the two-day strike. Unite national officer, Phil McNulty, said: "We are outraged by the company's plans to close the final salary pension scheme when it has taken £40 million from the scheme and slashed its own contributions. Despite the company's actions, the scheme is still highly profitable and the Grangemouth site makes £1 million every day so why should our members pay for the company's greed?" Ineos, the largest privately-owned chemical business in the UK said: "The amended pension scheme proposed is very generous. It will remain a final salary scheme for all existing members. The main difference will be that the current workforce will have to make a contribution towards their pension for the first time."
Read all today's energy and utilities news from scotsman.comMEDIA & LEISURE£375,000 for SMG chief The chief executive of SMG, Rob Woodward, received £375,856 for his first ten months of employment with the company. (
The Herald) Woodward began his role with the owners of STV after a shareholder revolt last year; included in his pay was a £318,250 salary with the remaining £57,606 being made up in benefits. Company financial director George Watt totalled slightly less, pulling in £250,820, £214,200 of which was salary and £36,620 in benefits. SMG indicated earlier this month that the Virgin Radio arm of the company may be floated on the stock exchange, allowing the company to focus on its TV business.
Read all today's media and leisure news from scotsman.comRETAILWH Smith survives high street struggle Despite a drop in sales on the high street WH Smith yesterday reported an 8% rise in half-year profits. (
The Herald) Largely thanks to the company's travel locations, it was able to post profits of £64 million, £4 million higher than the City had forecast. Total company sales rose to £734 million, an increase of 2%, although the figure was down 2% on a same-store basis. The company said this drop is a reflection of its strategy for less reliance on its high street business, in particular its entertainment products. The deficit of its high street stores was rebalanced through its travel stores with same-store sales up 1%, seeing a 14% increase on total sales. Analyst Nick Bubb increased his full-year forecast by £2 million to £75 million. He said: "Management express their usual caution about the retail outlook with the interims today, but they have managed to increase profits and earnings very well over the last few years, despite falling like-for-like sales."
Read all today's retail news from scotsman.comPROPERTYConsort falls victim to property slumpConsort, the Yorkshire and Scotland-based house building firm, is the latest victim of the downturn in the property market, with news that the company has fallen into the hands of administrators. (
The Scotsman) The company, which has a turnover of £22 million and has ten active sites throughout Yorkshire and Scotland, has appointed KPMG as administrators. Head of restructuring for KPMG, Blair Nimmo, said: "Since the onset of the credit crunch, market conditions have been difficult and the group has been victim of the slowdown in the housing sector. The reduction in activity in this sector is due to the combination of lack of consumer confidence in the property market and the limited access to mortgage funds for prospective purchasers." After an assessment of the company KPMG will sell the assets.
Read all today's property news from scotsman.com
The full article contains 1211 words and appears in scotsman.com newspaper.
