Highlands and Islands Enterprise today (Tuesday, November 13) delivered half-year results which show excellent progress against its annual performance targets.

HIE's board meeting, held at Sabhal Mor Ostaig on Skye, heard that at the six month stage, £46.3 million has been invested in a range of initiatives throughout the Highlands and Islands. Alastair Nicolson, the development agency's head of strategic planning and research, told board members this represents 39 per cent of HIE's 2007-08 budget of £117.9 million.

HIE's commitment to building community strength has shown noticeable progress, with 119 local groups assisted - well over half the target figure of 200 - with 62 community groups (52 per cent of the 120 target figure) demonstrating increased capacity.

The first six months have seen the organisation on track to assist a thriving number of new business start-ups - 251 against a year target of 550 - with an encouraging number being of scale. Workforce development is showing good progress with 387 businesses supported (59 per cent of a target figure of 655), with a high demand for management and leadership training.

A sectoral strategy for food and primary products, developed in partnership with industry, has identified four main areas of focus; collaborative supply chains, environmental sustainability, communication and leadership development.

Investment in developing skills initiatives includes the £7.18 million Fàs Centre for Creative and Cultural Industries at the Gaelic college Sabhal Mor Ostaig on Skye. Completion is expected by February 2008.

HIE has dedicated significant work effort to partnering UHI Millennium Institute on a range of fronts. Progress has been made on all strands of the infrastructural and organisational development.

The completion of the second phase of the £22 million Centre for Health Science in Inverness is on budget and ahead of schedule, with Phase III on target for October 2008. A Formation Agreement for the Highlands and Islands Diabetes Institute was agreed in August 2007 and plans for a Clinical Research Facility are near completion.

Work with the Scottish Association for Marine Science has led to a significant improvement in its financial position with plans to construct a bespoke laboratory which will play a key role in UHI's research strategy, now complete.

Renewables remain a priority sector with an outline five-year plan for investment which includes the potential development of a 'Centre of Excellence' for marine renewables research and testing. The opening of the tidal test facility at EMEC saw the First Minister announce consent for the world's largest wave farm, to be developed by CRE Energy.

The redeveloped Eden Court Theatre opened on November 3 with a full and varied programme, while HIE Moray is to take the lead in developing UHI Moray's academic infrastructure and providing a major arts facility in Elgin town centre.

Under its growing businesses remit, HIE allocated an additional £12 million over three years to address the economic challenges facing Caithness and North Sutherland following the current decommissioning of Dounreay. Two advance units have been completed on Wick Business Park, and a draft strategy for the Nuclear Skills Academy has been produced.

Moray 2020, the strategy to reduce current dependency on military employment, is progressing well. Negotiations to create business parks at Elgin and Buckie are underway, while negotiations to lease the Nova building (a clean manufacturing facility) on Forres Enterprise Park are anticipated to conclude in the next quarter.

A close working relationship between HIE and SDI has been forged, to increase awareness of the competitive strengths and opportunities offered by the Highlands and Islands to help attract more inward investment into the region.

The number of businesses engaging in international business development is 51% of the target of 200, with a high level of businesses activity from the Creative Industries sector. SDI's International Strategy workshops have been delivered to appropriate companies in the HIE area and SDI teams are undertaking a programme of visits to key companies to encourage more Highlands and Islands businesses to take their products to new markets.

The Private Sector Earnings Index for Network-assisted jobs - which measures the salary level of new jobs compared with the local area average - was substantially ahead of target at 125 per cent against a target of 112 per cent.

HIE chairman William Roe said: "HIE has worked hard to strengthen links with partner agencies and this is particularly reflected in the achievements reported with regard to health science, marine science and renewables.

"These very encouraging half year results indicate that as well as its unique natural resources, the Highlands and Islands are vigorously ambitious and have a key role to play in boosting the Scottish growth rate under the Government's economic strategy."

The half-year review is available to download here in Adobe pdf format.