BANKING & INSURANCERBS linked to Priory mergerThe Royal Bank of Scotland is believed to be lining up a deal which could see celebrity rehab group the Priory being merged with nursing home giant Four Seasons. The
ABN Amro deal last year saw Edinburgh banking giant RBS become the largest shareholder in the Priory while it is also a major lender to the heavily-indebted Four Seasons Health Care. A merger between the two businesses would create a single £2 billion company and one of the largest healthcare providers in the UK.
(The Scotsman) Read all today's banking news from scotsman.comECONOMYCompanies warned against job cutsThe Hay Group has warned businesses against making knee-jerk job cuts as the credit crunch continues to bite. The management consultant issued the warning in the wake of a survey conducted in conjunction with the Centre for Economic and Business Research which revealed 23 per cent of businesses will use the downturn to weed out under-performers. Meanwhile, 10 per cent of businesses questioned expect to use the credit crisis to recruit fresh talent at a lower cost and 28 per cent would remove staff who do not meet their targets – 45 per cent will rely on natural wastage to cut their head counts. Associate director at the Hay Group, Dr Lesley Garrick told the Scotsman: "How organizations will come through the downturn and out the other side will depend on the actions that leaders take now and the strategies they pursue. I can absolutely understand why cutting costs is a rationale during a downturn, but that's not the only tack that you have to take. You have to ask what are the costs you want to cut out and you mustn't squander people and good opportunities." Garrick added: "When things are going really well, companies' financial results will often give staff a boost and people will increase the amount of discretionary effort they put into their work. In a downturn, people need to identify with a company and be clear about the company's aims. Management must put effort into motivating staff."
(The Scotsman)Small firms exercising cautionA new Bank of Scotland survey has revealed that many of Scotland's small and medium-sized companies are putting investment decisions on hold as they wait for the economic unease to subside. Nearly four in 10 SMEs in Scotland revealed they are investing more back into their businesses than they are saving and only one in ten is saving more each month than they are investing back into the business. However, of the 1000 companies questioned some 77 per cent said they would rather hold onto their cash than make immediate decisions about investment in the business.
(The Herald)Unesco may strip Edinburgh of world heritage statusUnesco has launched an inquiry which could see Edinburgh stripped of its World Heritage Status, it has been revealed. Delegates from the world heritage committee are believed to be particularly alarmed by the Caltongate project which was given the go-ahead by the Scottish Government despite some 1800 objections being received. Unesco has condemned the government for failing to consult the body despite the project seeing two listed buildings being demolished to make way for a five-star hotel. The group is also set to investigate the redevelopment of Leith docks and the St James Centre. A spokesman for Unesco's world heritage committee commented: "The committee voiced concern at the potential impact of the Caltongate development and were also deeply concerned that it was approved by the state government in June without complying with the operation guidelines for world heritage sites."
(The Scotsman) Read all today's economics news from scotsman.comENERGY & UTILITIESLawrie lifts turnoverNew accounts filed with Companies House revealed that former rag and bone company John Lawrie Group has increased turnover and profits on the back of an overseas expansion and increased decommissioning of North Sea oil rigs. Turnover last year was up to £81 million while operating profits surged 10 per cent to £4.5 million. The Aberdeen scrap metal processor and steel trader has expanded its overseas activities with new alliances in New Zealand and Canada and is also targeting the oil sector. The group has invested £3.4 million in new equipment to allow it to muscle into the lucrative decommissioning sector and is now the owner of the UK's largest shear for cutting metal. Finance director Charlie Parker said: "The presence of John Lawrie Group within the international steel tubular arena has also continued to flourish. Over the last four years we have seen significant growth in activity in our oilfield tubular divisions in the United States."
(The Herald) Read all today's energy and utilities news from scotsman.comFOOD, DRINK & AGRICULTUREHeineken must restate S&N profitsScottish & Newcastle's profits will have to restated by up to 10 per cent after Heineken accountants discovered discrepancies in the group's accounts. Executives from Heineken, which was part of a consortium with Carlsberg which bought out the Scottish brewer earlier in the year, are believed to have been meeting with City analysts to warn them about the restatement which will land with the half-year results in August. Heineken has yet to put a figure on the restatement, but the City expect to see profits at S&N cut by as much as 10 per cent. It is believed the issue may have arisen as Heineken has traditionally taken a more stringent approach to the accounting than the Edinburgh group and there is no suggestion S&N has acted outwith accounting regulations.
(The Herald) Read all today's food, drink and agriculture news from scotsman.comMEDIA & LEISURETrump group claim refusal 'would be tragic'The legal team behind tycoon Donald Trump's £1 billion application to build a golf and housing development in Aberdeenshire have claimed rejection of the scheme would be 'a tragedy for Scotland'. The claim came on the final day of the public inquiry into the application which was called in by Scottish ministers despite being controversially rejected by Aberdeenshire Council. Colin Boyd QC, for the development, told the inquiry the application represented a 'once in a lifetime opportunity' and that the country would 'not see its likes again'. The development has met with vociferous opposition with many claiming the huge scheme would have a severely detrimental effect on the unique sand dune landscape of the Menie Estate.
(BBC Scotland Online) Read all today's media and leisure news from scotsman.comPROPERTYMore jobs to go as housing slump continues to biteAs many 1000 jobs are expected to go when housebuilder Persimmon is believed to be on the verge of announcing up to a fifth of its workforce will be cut. The news is the latest of a line of similar announcements from housebuilders struggling to weather the increasing storm in the housing market prompted by the global credit crunch. Persimmon is set to update the city tomorrow and may be joined in making job cuts by Kier Residential, the housing arm of construction group Kier, which may be about to reveal 300 job losses. The sharp fall in new house sales brought about the credit crisis and subsequent slump in consumer confidence has prompted some to call for government intervention to help arrest the growing instability in the sector.
(The Scotsman) Read all today's property news from scotsman.com
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