Business Briefs - June 2

The Scottish engineering sector has suffered falls in output and order intake for a second consecutive quarter, with the troubles of the oil and gas industry weighing on activity.

Scottish Engineering, publishing its latest survey of activity today, also believes that uncertainty in the run-up to the General Election played a part in the sector’s weakness in the latest quarter.

The survey also shows a seventh consecutive quarterly drop in the Scottish engineering sector’s export orders during the latest three months.

The industry body’s survey shows a second consecutive quarterly decline in employment levels in the sector in the latest three months, although the fall was modest. It also signals a significant fall in optimism.

And, overall, Scottish engineering companies are forecasting further falls in UK and export orders in the coming three months.

Bakers announces £3m expansion

Port Dundas-based McGhee’s Bakery has revealed plans to invest £3 million in its Glasgow production facility.

The firm said the move will allow it to fulfill its intention to build its export and frozen food business.

The family-owned business has targeted growth of 10 per cent this year as it extends its premises at the M8 Food Park by a third.

The expansion, which is scheduled for completion in spring next year, comes in the year the firm celebrates its 80th anniversary.

McGhee’s hopes the investment will lead to as many as 50 new jobs at the site.

It currently employs about 236 st aff across its operations in Glasgow, Kilmarnock and Motherwell.

The company is in the process of applying for a Regional Selective Assist ance (RSA) grant of £500,000 for the project, with the bulk of the funding coming from its own resources.

Malt supplier toasts annual profits jump

Berwick-upon-Tweed-based Simpsons Malt enjoyed a rise in profits last year after processing costs fell.

The supplier to the brewing and distilling sector said turnover dipped by £2 million to £156m due to lower raw material prices but pre-tax profits increased to £9.4m, from £7.5m in 2013.

Although it said the Scotch whisky industry was “probably levelling off”, that was balanced by the strong growth being seen in the craft brewing sector in North America.

Some £5 million was invested by the company in its facilities during 2014.

Scots tech businessman launches new venture

Leading Scottish technology entrepreneur Tom O’Hara has returned to the sector with the launch of new IT venture, Kick ICT Group.

Govan-born Mr O’Hara has invested a six-figure sum in the business, which will be the new owner of Talon Business Solutions.

Talon was established in Glasgow 25 years ago by David Chazan,

Talon’s portfolio of products and services will remain under its own brand, with bespoke ‘On Dynamics’ software developed in-house for sectors including food and drink, retailing, manufacturing, logistics and branch cash return management.

Mr 0’Hara said the new business will become a vehicle for further acquisitions.

Endeavour to sell North Sea assets

Endeavour International, the oil and gas firm which filed for Chapter 11 bankruptcy protection in the US late last year, is to sell its interests in the North Sea.

The Houston-based company owns stakes in five oil and gas fields – Alba, Bacchus, Bittern, Enoch and Rochelle.

New energy services firm launches in Aberdeen

A new oil and gas service business has launched in Aberdeen, creating 16 jobs.

Initially based in Tullos, Aberdeen, EnerQuip plans to move to a larger facility in the north-east in early 2016 to support anticipated growth.

It has been formed by three former senior bosses of Granite City-based AMC Engineering – Andrew Polson, Dave Clark and John Duncan – who together have more than 50 years’ oil and gas experience.

They have established EnerQuip to provide torque machines and associated services to the drilling and downhole tools sectors.

Beyond its core specialism, the maintenance and upgrading of torque machines, the new company plans to launch “new generation” machinery for the assembly and dismantling of downhole tools by the first half of 2016.

In its start-up phase, EnerQuip is committing £6 million to investments including a long- term lease, staff, equipment and research and development.

Law Society of Scotland to sell Edinburgh office building

The Law Society of Scotland has confirmed its plans to sell its current Edinburgh office buildings on Drumsheugh Gardens to an unnamed developer.

The industry body has confirmed it will leave the development towards the end of this year and move to the Atria One building on Morrison Street.

The Law Society, which employs more than 120 staff, has signed a 15-year lease for 19,000 square feet of space on the second floor of the development, which it said will offer more modern and environmentally-friendly surroundings for staff and visitors.

Another retail unit goes at Atria Edinburgh

The City of Edinburgh Council has announced it has secured a café operator for its Grade A office development in the heart of the Exchange district, Atria Edinburgh.

Café Klaris Limited, an up-market sandwich and coffee offering, has taken retail unit 3, comprising 893 sq ft of space located on the ground level of Atria One on Morrison Street, on a 15 year FRI lease.

Café Klaris is the second café-style outlet from proprietor Marcos Alvarez who also runs Waka Café on North Castle Street in Edinburgh.