Glasgow-based Nevis Capital has made clear it is keen to invest in more businesses despite uncertainty about the outlook for the economy.
The investment business, which was founded by generator tycoons John and James Pirrie, said the uncertainty caused by the Covid-19 coronavirus and Brexit made 2020 an especially difficult year in which to assess and complete new deals.
However, Nevis partner Brian Aitken noted: “I’m encouraged for deal activity as we are speaking to a lot of business owners across Scotland who are feeling a bit scunnered by the last year and thinking about taking a step back.”
Nevis came close to completing an investment in a Glasgow business in the lead up to Christmas before the deal foundered following late complications.
In a review of the year Nevis noted that it provided backing for existing portfolio businesses in 2020.
These included the Glasgow-based tank cleaning business Merkland Tank and Cumbria-based engineering firm Astec Precision. The firms faced drops in demand resulting directly from lockdown restrictions or the impact on the markets they serve, such as oil and gas.
In many businesses listed on public stock markets or backed by private equity firms, the reaction to such a drop in demand could have been to drastically cut costs and to postpone or cancel investments, said Nevis.
It added: “For us, the virus has not changed our view that both businesses have bright futures and so, despite an adverse impact on current year profits, we continued to focus on building each business for the long term.”
READ MORE: Venerable Glasgow tank cleaner wins backing for growth from Nevis
Nevis said it invested in a significant increase in capacity at Merkland Tank and recruited new skills and experience to lay the foundations for future development.
“We believe that investing in people and assets before you “need” them is a prerequisite for sustainable growth,” Nevis observed.
Nevis also supported an increase in capacity at Astec and investment in staff and machinery.
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