Stewart Milne creditors won’t get all their money back: 7 need-to-know business stories

Hello and welcome to our daily digest of business, financial and economic news from around Scotland.
1. The administrators of Stewart Milne Group have warned there is little prospect of unsecured creditors getting their money back but progress has been made in selling various housing sites.
An update from Teneo also suggested Bank of Scotland, the largest secured creditor, is unlikely to receive the full £107.9 million it is owed.
The claims for unsecured creditors so far total £33.4 million and the administrators said it was “unlikely” they will have funds to pay any of that.
The housebuilding group was put into administration in January this year in a move which surprised many in the industry.
More 200 staff lost their jobs immediately and a further 100 have since been let go.
Teneo said there had been ten active housebuilding sites but further investigation showed two of those were virtually complete.
Of the eight remaining five have been sold to other firms which has raised more than £15 million. Deals for the remaining three are said to be close to being agreed.
2. Weir Group has won a £53 million contract to provide equipment to a copper and gold mine in Pakistan.
The Glasgow company will supply pumps, waste management solutions and rock crushing kit to the Reko Diq project in Balochistan province.
The mine is 50 per cent owned by Barrick Gold Corporation with the remainder held by various state enterprises.
First production is expected in 2028 with operations forecast to run for more than 40 years.
Jon Stanton, the Weir Group chief executive, said: “Our engineers have designed an innovative solution that comprehensively addresses the particular challenges of this project.”
3. Aer Lingus Regional is launching a new service between Glasgow and Cork.
The airline, which already runs connections from Glasgow to Dublin and Belfast, said the Cork flights will run four days a week from October 27.
Ian Lough, the head of commercial at Emerald Airlines, which operates the Aer Lingus Regional business, said: “We’re delighted to extend our network from Glasgow Airport with the introduction of our new Cork service.”
Chris Tibbett, the aero director at Glasgow’s owner AGS Airports, said: “This new route not only enhances travel options for our passengers but also underscores our ongoing commitment to providing diverse and convenient destinations.”
4. Scottishpower is spending almost £20 million to improve the electricity network in South Lanarkshire.
Its SP Energy Networks subsidiary has put £11 million into an overhaul of the Elvanfoot substation to help support growing renewable generation capacity. The work there is on course to complete in the final quarter of this year.
Alongside that there has been a £7 million upgrade to the substation at Broken Cross Wind Farm and there are proposals to build a new high voltage facility near the existing Coalburn substation to the south of Lesmahagow.
5. The number of company insolvencies in Scotland has increased by 21 per cent. Data from the Insolvency Service showed there were 117 registrations in July, up from 97 in 2023.
Most of those were voluntary liquidations although there were also 33 compulsory ones as well as eight administrations.
Michelle Elliot, restructuring advisory partner at FRP in Glasgow, said: “This data reflects the cumulative effects of years of extremely challenging economic conditions working their way through supply chains.”
6. Beeks Financial Cloud Group has extended its contract with the Johannesburg Stock Exchange (JSE).
The AIM-listed company described it as a multi-year deal which adds a second data centre location.
The South African exchange said it had seen strong demand for customers for the cloud computing and connectivity services provided by Beeks.
Gordon McArthur, the Beeks chief executive, said the success of the partnership with JSE is helping to support the Glasgow firm’s talks to win business from other global exchanges.
7. Glasgow city council has approved plans for a 36-storey student accommodation block named the Ard, which will become the city’s second tallest building, at 114m.
The project involves demolishing Portcullis House at Charing Cross and includes a second ten-floor building with commercial space and a new office for the Glasgow Social Enterprise Network.
The Ard will provide 784 beds to address the shortage of student housing and feature amenities like games rooms, a gym, and a social kitchen. The development aims to improve the street’s visual appeal and includes plans for a café and social enterprise space at the Newton Street entrance.