Aberdeen Business Round-Up: Interest Rates, North Star Growth And Major City Centre Developments
Businesses across Aberdeen and the wider north-east of Scotland are responding to important economic developments, including changes in borrowing costs, company expansion and investment in the offshore energy sector.
The latest business developments highlight the different pressures and opportunities facing the regional economy, from established companies increasing their operations to businesses adapting to changing consumer behaviour. Developments involving North Star, Shepherd and Wedderburn, and the future of an empty Union Street retail property are among the stories attracting attention. Nationally, expectations surrounding Bank of England interest rates and the performance of major retailer Next are also influencing the business outlook.
Bank Of England Interest Rates Expected To Rise
The Bank of England was expected to increase interest rates on 5 November, potentially marking the first rise in the benchmark rate for more than three years. Most analysts anticipated an increase from 3.75 per cent to 4 per cent, which could affect households and businesses through higher borrowing costs. However, savers could benefit from improved returns if banks and other financial institutions pass on the increase to savings products.
The Bank Rate had previously reached a peak of 5.25 per cent during 2023–24 before being reduced as inflationary pressures changed. The Monetary Policy Committee had kept the rate unchanged at its previous six meetings. A further increase would represent a shift in the central bank's approach and could influence mortgage repayments, business investment decisions and the cost of financing new projects across Scotland and the rest of the UK.
Aberdeen Law Firm Expands With New Union Street Office
Aberdeen-based law firm Shepherd and Wedderburn has moved into new premises at the Capitol building on Union Street as part of its plans for further growth in the north-east. The relocation follows the expansion of its operations beyond the capacity of its previous offices at Albyn Place. The move represents a further development for the firm as it continues to strengthen its presence in Aberdeen.
The firm also operates offices in Edinburgh, Glasgow and London, giving it a presence across several important UK business centres. Its move to Union Street comes as Aberdeen continues to pursue opportunities to strengthen its city centre economy and attract professional services businesses. The relocation adds to the commercial activity taking place in the city centre, although the company has not disclosed specific figures for additional jobs or investment associated with the move.
North Star Turnover Reaches Almost £153 Million
Aberdeen ship owner North Star has reported a substantial increase in annual turnover, reaching £152.9 million in 2025 compared with £137.5 million in 2024. The 140-year-old company has been expanding its fleet, adding three newbuild service operation vessels (SOVs) during the year. The vessels support offshore operations and are part of the company's wider activity in the growing offshore wind market.
Despite the increase in revenue, the company's latest accounts show that it recorded a pre-tax loss of £19.3 million for 2025. This compares with a pre-tax loss of £7.1 million in the previous year. The figures highlight the difference between growing business activity and overall profitability, particularly for companies making significant investments in vessels and infrastructure. North Star's performance will be closely watched as demand for offshore wind support services continues to shape the maritime sector.
Hearts Report £2.4 Million Loss
Scottish Premiership football club Heart of Midlothian has announced a financial loss of £2.4 million for the year ending 30 June. The accounts cover the first 12 months of Brighton and Hove Albion owner Tony Bloom's involvement with the Edinburgh club. Despite the reported loss, Hearts recorded turnover of more than £23 million, representing a club record for a season in which the team did not participate in European competition.
Bloom invested £10 million to acquire a 29 per cent non-voting stake in the club. Hearts had been looking to benefit from his Jamestown Analytics recruitment network as part of their approach to strengthening player recruitment. The financial results also followed a season in which the Edinburgh side narrowly missed out on winning the Scottish Premiership title for the first time in 66 years, after losing on the final day to reigning champions Celtic.
Former Kenny's Music Premises Returns To Auction
A former Aberdeen music shop is being offered at auction again as efforts continue to find a new use for the vacant city centre property. The premises at number 67 on The Green previously housed Kenny's Music for 17 years before becoming empty. The property is scheduled to return to the auction market, with bidding expected to begin on 12 November at a guide price of £160,000.
The property comprises the ground floor and basement of the city centre building. Its location is particularly notable because it is situated only a short distance from the £50 million Flint market development. The auction provides another opportunity for potential investors or businesses to acquire the premises and consider its future commercial use. However, the eventual outcome will depend on interest from bidders and whether a buyer can be secured at the advertised price.
Next Reports Strong Sales Despite Consumer Spending Concerns
UK retailer Next has reported better-than-expected sales for the third quarter, although it has warned that growth in the domestic market could slow as consumers face increasing financial pressures. Rising household energy bills, mortgage rates and fuel costs are contributing to concerns about discretionary spending ahead of Christmas. The retailer's latest figures suggest that international online activity has provided an important source of growth despite the more challenging conditions facing UK shoppers.
Full-price sales increased by 8.1 per cent year on year during the 13 weeks ending 31 October. The result was approximately £33 million ahead of the company's guidance of 5.8 per cent for the second half of the financial year. Online international sales were particularly strong, increasing by 32.2 per cent against expectations of 20.5 per cent. The figures demonstrate the importance of overseas online markets to the retailer's recent performance, even as domestic consumers become more cautious about spending.
The latest developments underline the variety of economic conditions affecting businesses across Scotland and the wider UK. Aberdeen's professional services sector is seeing expansion, while North Star continues to generate higher turnover through its offshore operations. At the same time, the financial performance of major organisations, the future of vacant commercial properties and changing interest rate expectations demonstrate the challenges facing businesses and investors. These developments will remain important indicators of regional and national economic activity as companies prepare for the coming months.
For further local news, community updates and story tips, contact news@lakelandpost.co.uk or 0333 090 2080.