Business Briefs - July 8

Final rules were published yesterday by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) outlining how sinior bankers will now have to take responsibility for misconduct carried out on their watch, regardless of their direct involvement, – unless they can explain what they did to stop it.

The new regime means the removing of the burden of proof on authorities attempting to show top executives and board members were responsible for offences carried out under them and will be presumed responsible for wrongdoing committed.

It comes two years after a parliamentary commission set out recommendations for a shakeup of the UK banking industry in the wake of the financial crisis.

The new regime will take effect from March next year.

Existing legislation means the bodies can start criminal prosecutions against senior managers where they take a decision that causes a bank to fail.

FCA chief executive Martin Wheatley said: “Today we have given clarity on rules that will embed personal accountability into the culture of the City.”

The rule book sets out the key people to be held to account including chairmen and senior non-independent directors.

Flybe increases number of Edinburgh–Jersey flights

Regional airline Flybe has increased flights on one of its popular seasonal routes, flying between Edinburgh and Jersey.

The carrier said that in addition to its weekend service it would offer flights on Mondays, Wednesdays and Fridays during peak summer from 20 July to 31 August.

Additionally, between 17 July and 23 October, Flybe will be boosting flights between Aberdeen and Birmingham with an extra early afternoon flight on Fridays. In total, Flybe’s 2015 summer schedule from Scotland features 30 routes.

Weir swoops for US valve-maker in $47m deal

Glasgow-based engineering group Weir has struck a deal to buy a US valvemaker, Delta Industrial Valves, for up to $47 million (£30m).

The firm said the acquisition of Delta, expected to complete within days, would boost its presence in the mining and oil sands markets by extending its range of products.

Delta employs about 70 people and generated underlying pre-tax earnings of $6.2m in the past 12 months. It specialises in knife gate valves – guillotine-style devices capable of cutting and closing against solid materials.

The cash and shares deal was revealed less than a month after Weir warned of “very challenging” conditions in the oil and gas sector but highlighted that minerals, its largest division, continued to demonstrate “resilience in subdued markets”.

Stagecoach suffers South West Trains extension setback

The UK Government has knocked back Perth-based transport giant Stagecoach following its attempt to secure a direct award from to continuation of its contract to operate of the South West Trains franchise.

The Perth-based bus and rail giant submitted proposals through its Stagecoach South Western Trains subsidiary to the Department for Transport (DfT) after the government announced plans for the direct award of a new franchise until at least April 2019.

However, the DfT has decided to now invite applicants to tender for a new long-term franchise expected to start at some time in 2017.

The current franchise is due to come to an end in February.

Dundee vein firm eyes world markets

Vascular Flow Technologies, a Dundee firm that makes grafts to repair diseased veins and arteries, has secured three new patents in China, Europe and Japan, paving the way for global growth.

The firm’s products aim to reduce complications by replicating the natural flow patterns of blood through prosthetic grafts.

Chief executive Bill Allan said: “Japan is the second-largest market globally for medical technology, and with an aging population, this is an important area for our investment.”

Director at BIG PR firm steps down

One of the directors of Scotland’s largest public relations agency has stepped down after more than 12 years with the business.

However, Marjorie Calder will continue working for BIG Partnership on a consultancy basis.

Her resignation was noted in a filing at Companies House.

Ms Calder, who joined BIG in 2003 and was made a director three years later, said she was looking forward to her “new adventure” and intends to take the rest of the summer off before deciding what to do next.

BIG, which has been ranked the largest public relations agency outside London for the past seven years, has offices in Glasgow, Edinburgh, Dunfermline, Aberdeen and Liverpool.

Ms Calder said: “It just felt like the right time to have a change.”

Dental firm continues growth drive with brace of Edinburgh purchases

A Falkirk dental group has announced the purchase of two Edinburgh practices in a £1.2 million deal.

Be Dental now has five clinics following the purchase of Ocean Drive Dental Practice and Vitaliteeth.

Having already invested more than £200,000 in the Leith sites by installing new servers to enable medical records and other detail to be shared securely across the group, it is now aiming to double in size over the next five years.

Atif Bashir, principal dentist and clinical director, said: “But this isn’t about simply taking over existing practices and carrying on as before. We have transformed the technology, shaping the services offered and the patient experience around our company ethos.”

Be Dental, which has other outposts in Falkirk, Moodiesburn and Possilpark, now employs 70 people and has set itself a target of having ten practices by 2020.