STV chief signs off with rise in profits: 6 need-to-know business stories

Hello and welcome to our daily digest of business, financial and economic news from around Scotland.
1. The outgoing chief executive of STV has signed off with a rise in interim profit and a record-value production pipeline.
Simon Pitts believes he is leaving the Scottish media group “in a good place” before joining Global, the radio firm, next year.
STV’s revenue in the first six months of the year increased by 20 per cent to £90.4 million with an improvement in advertising alongside growth in STV Studios.
The value of the forward order book in the production arm is £101 million with shows such as Blue Lights, Criminal Record and The Fortune Hotel all being recommissioned.
There were also strong viewing figures on traditional television and the STV Player service that was helped by the Euro 2024 football tournament. Mr Bates vs The Post Office had been a huge drama hit while Pitts said the Germany vs Scotland opening game of Euro 2024 was the most-watched event so far this year.
The company’s underlying operating profit was up 33 per cent to £10.6 million with the interim dividend flat at 3.9p per share.
STV announced last week that Rufus Radcliffe, formerly of ITV and Channel 4, will take over from Pitts in November.
2. Dozens of Scottish renewable energy projects with the combined capacity to generate almost two gigawatts of electricity have been given subsidy support.
There were 37 developments that secured Contracts for Difference from the UK government and that guarantee a set price for power generated.
Offshore and onshore wind, solar and tidal all received backing.
The 560 megawatt Green Volt, off the Aberdeenshire coast, would be the largest floating offshore wind farm in the world when it gets built.
Claire Mack, the chief executive of Scottish Renewables, the trade body, said the awards are “positive for Scotland as they enable projects coming forward across a number of key renewable technologies”.
3. A damp August resulted in underwhelming retail sales in Scotland with a 0.5 per cent drop.
Even traditional back-to-school spending was lacklustre with reports of greater numbers of cash-conscious consumers choosing second-hand goods.
The Scottish Retail Consortium said after adjusting for the impact of inflation that the fall in total sales was 0.2 per cent.
David Lonsdale, the SRC director, pointed out sales were also down in June and July. He added: “Back-to-school sales were disappointing as consumers looked to save by switching to pre-loved items, an area retailers are increasingly involved in.
“Food sales were flat, but against very strong figures from last year when inflation was running hot, indicating grocers may have to adapt to more normal conditions.”
Linda Ellett, the UK head of consumer for retail and leisure at KPMG, said consumer sentiment remains fragile which means the retail environment will remain challenging “for the rest of this year”.
4. The healthcare software specialist Craneware is planning to integrate more machine learning and artificial intelligence into its products through a partnership with Microsoft.
Keith Neilson, the chief executive, said the deal with the technology giant will allow the Scottish company to “accelerate” product development and build new tools for its customers.
The firm operates in the United States where it supplies revenue management and data analytic software to about 12,000 hospitals and pharmacies.
Results for the 12 months to the end of June showed a 9 per cent increase in revenue to $189.3 million while pre-tax profit grew 20 per cent to $15.7 million.
The annual dividend was increased by 2 per cent to 29 pence per share.
5. More than £85 million of venture capital funding was put into firms around Scotland in the second quarter of the year.
The Venture Pulse report, compiled by KPMG, found there were 23 deals in the April to June period.
Among those were £13 million for Prothea Technologies, a medical technology firm in Edinburgh, and £10 million for Outrun TX, a Dundee biotechnology company.
Amy Burnett, from KPMG in Scotland, said she is hopeful positive trends continue in the remainder of the year.
The latest update means there has been £184 million of investment spread across 42 Scottish businesses for the first half of 2024.
6. Scotland’s salmon industry has called for quicker progress on planning changes and regulatory reform.
Salmon Scotland, the trade body, made the call to reduce red tape before John Swinney, the first minister, lays out his programme for government in Holyrood.
Recommendations from an independent review into aquaculture published two years ago by Professor Russel Griggs have not yet been fully implemented.
Tavish Scott, the Salmon Scotland chief executive, said: “We have the ability and aspiration to grow, but we need government to urgently reform the cumbersome regulatory and consenting landscape that is holding back salmon farmers.”