SCOTTISH NATIONAL INVESTMENT BANK REPORTS £138M NET LOSS

The Scottish National Investment Bank reported a net loss of £138m in the 2025-26 financial year, according to its annual accounts released on 24 August. The state-owned body recorded £65m in realised losses from the failure of three early investments: Glasgow-based laser company M Squared Lasers, electric car charging firm Trojan Energy and satellite and digital company Krucial. A further £85m in unrealised losses resulted from drops in investment values and the administration of rocket manufacturer Orbex and medical technology firm Pneumowave.

The bank, established in 2020 with a remit to fund business and innovation, generated operating income of £32m against operating costs of £20m. It invested a record £374m in Scottish ventures during the year. Chairman Willie Watt stated the losses were "painful" but reflected a tough economic environment characterised by tighter financial conditions and more challenging fundraising. Chief executive David Ritchie described the losses as "regrettable and disappointing" but said they were "consistent with the mandate we hold, the risk we accept in the pursuit of impact and the macroeconomic conditions in which we are operating". The bank also does not expect to recoup investment from a further seven companies.

Watt said the bank had "learned a lot over the past five years" and would continue to improve its investment processes with stricter criteria for potential investments. Ritchie emphasised the importance of being explicit about risk levels and safeguards when deploying public capital. The bank operates independently from government, though it was established by Scottish ministers during Nicola Sturgeon's tenure as First Minister.