Experts warn for tough year for drinks giant Diageo

By Oliver Farrimond

CITY experts have warned that Scots drink giant Diageo could be “walking through treacle” over the next year.

Analysts have warned that mounting unemployment figures could lead to a dramatic drop in bar sales of the group’s flagship products.

Diageo, the makers of Smirnoff and Guinness, are planning to raise the prices of their American products to counteract the bleak forecast.

Analysts at financial advisory group Collins Stewart said: “A resurgence in Diageo profit growth is dependent upon a healthier on-trade in markets where unemployment remains stubbornly high.”

Donations from Wills halved as charity begins at home

By Oliver Farrimond

SCOTTISH charities are missing out on vital donations from wills, with recession-hit families preferring to secure more money for their loved ones.

Slashed interest rates and plunging property prices have left Scots rushing to ensure that their families don’t miss out on vital legacies in favour of charitable donations.

Edinburgh-based law firm Gibson Kerr have estimated that the total value of charitable donations left in wills has HALVED over the last eighteen months.

Fiona Rasmusen, partner at Gibson Kerr, said: “We all know the credit crunch has had a huge effect on many people in Scotland and the rest of the UK.

“Many people have investments in savings accounts, shares and property, but these have been badly hit by the economic downturn.

“One significant development of this has seen people opt to change the details of their wills to reflect these difficult decisions.

“With savings and investments worth far less than they used to be, people are deciding to leave more money to their families and loved ones – and less to external organisations. ”

Economic gloom sparks dog boom

By Rory Reynolds

THE current economic gloom has sparked a dog boom for Scotland’s oldest pet care home.

Edinburgh Dog & Cat Home has seen the number of residents leaving with new owners more than double this summer, compared to this time last year.

And the pet home reckons that people are choosing a new addition to the family rather than have a holiday this year.

Between June and August 84 dogs and 36 cats were re-homed with new families, compared to 40 dogs and 18 cats in the same period last year.

The home’s manager, David Ewing, 52, reckons people are foregoing holidays in favour of getting a new pet.

Recession drives nightclub to target “divorced, single and dumped”

By Rory Reynolds

A STRUGGLING nightclub giant is appealing to richer clubbers who are “divorced, single and dumped” because their 18-24 target market has been crippled by the recession.

Luminar – which has clubs across Scotland – are appealing to single men in their 30s and 40s to re-visit their youth at the firm’s venues.

The company is also planning to lure online daters – of which there are an estimated 15 million in the UK – away from the computer and back to the dance floor.

Luminar – Britain’s largest nightclub operator – found itself under severe pressure as more of its customers lost their jobs.

Shares have tumbled by a third, with sales falling by six per-cent in the six months up until August 27, and a further drop this month due to poor weekend sales figures.

Hearts FC unveil new signings despite financial woes

By Alexander Lawrie

HEARTS FC unveiled its latest bid for footballing glory – a women’s team.

But the news was overshadowed by reports that owner Vladimir Romanov’s bank has seen its own fortunes plunge – with a 91 per cent drop in profits.

Ukio Bankas saw its profits all but wiped out by the global recession.

The Lithuanian bank – of which Vladmir Romanov is a major shareholder – only just stayed in the black by recording a net profit of £1.1 million.

But, despite its plummeting profits, a spokesperson for the bank claimed the start of the year had been “positive”.

Arnas Zalys, head of the firm’s finance office, said: “Taken into consideration current market situation we view the first half-year results of Ukio Bankas positively.

Money’s too tight to mention for young Scots

By Rory Reynolds

YOUNG Scots have been hit harder by the recession than any other group in the UK, according to new research.

Four out of five Scots aged between 20 and 29 have been forced to change their lifestyles dramatically due the credit crunch.

And 87 per cent have changed their attitude to money as bankruptcy and home repossessions have soared.

Clydesdale Bank found that almost half of Scots in their 20s now save for bigger purchases rather than using credit and over one third now put aside whatever they can every month – for fear that the recession will deepen.

A penny overdrawn leaves student £48 in the red

By Cara Sulieman

A STUDENT has been hit with a £48 bank charge for slipping into her overdraft – by A PENNY.

Cash-strapped Julia Turner thought she had £5 left in her bank account when she bought a T-shirt but in fact was only £4.99 credit.

Going over her limit by that single penny triggered the astonishing wave of charges.

The Bank of Scotland fined her a £20 administrative fee for going over her limit plus a further £28 “unauthorised overdraft fee.”

Scots college to train the bankers of the future

By Oliver Farrimond

A TOP Scots university has unveiled a new Masters degree course – aimed at ensuring the nation’s banks are properly managed in future.

Edinburgh Napier University will admit students to the first ever Masters in Professional Banking course in September of this year, hoping to recession-proof Scottish banks with an influx of highly-qualified graduates.

News of the new course comes just a day after it was revealed current RBS chief executive Stephen Hester will receive a massive £9.6million pay day if he can turn round the struggling institution which had to be bailed out by taxpayers.

According to the university, students graduating from the programme will “demonstrate the highest ethical, technical and professional standards” – something the university says has been missing from financial decision-makers in Scotland.

Stewart Falconer, head of the school of accounting, economics and statistics at Edinburgh Napier University, said: “The lack of perceived expertise at a high level within the banking industry has been highlighted at many levels, including by national governments.

Alex Salmond launches new Tesco HQ in Edinburgh

By Oliver Farrimond

EVERY little helps and Scotland’s embattled financial services industry received a much needed boost yesterday as First Minister Alex Salmond officially unveiled the new Tesco Personal Finance headquarters in Edinburgh.

Situated next to the busy Haymarket rail hub, the centre will house almost 500 staff and save almost half a million miles’ worth of driving time a year.

The new headquarters will be one of Tesco’s main offices outside of London, and is expected to drastically reduce congestion, as well as providing a base for the supermarket bank to expand its services.

Unveiling the headquarters’ opening plaque, First Minister Salmond said: “Tesco’s decision to establish its personal finance headquarters in Edinburgh signifies its commitment to building its business in Scotland.”

“Having seen their track record and approach to business, I am absolutely certain that they will be one of the fastest-expanding financial organisations in the country.

Scots firms fighting £155million tax debt

By Michael MacLeod

STRUGGLING Scots businesses now owe the taxman a staggering £155million in overdue payments.

And to stop more of them going under tax chiefs are now being forced into bailing out the 8,000 or so Scots firms affected by handing them a credit crunch lifeline of more time to settle.

Glasgow companies top the tax debt league of debt, with almost 1,000 dragging their heels on tax payments totalling £26million, according to new figures released yesterday (Tuesday).

Many say they would have been forced to sack workers or go bust without the megabucks rescue.