1. www.bq-magazine.co.uk ISSUE SEVEN: SPRING 2012
serious truffle maker
The Highland Chocolatier’s sweet Perthshire success
a £12.5bn games changer
Baroness Ford’s regeneration project aims for Olympic gold
the winning years why
Mike Cantley on the what, the how and the
BQ live debate
Women in the boardroom
quay of life
Charan Gill finds life after Ashoka and spiritual
contentment in Rajasthan and... Musselburgh
ISSUE SEVEN: SPRING 2012: SCOTLAND EDITION
BUSINESS NEWS: COMMERCE: FASHION: INTERVIEWS: MOTORS: EVENTS
SCOTLAND EDITION
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6. CONTE
BUSINESS QUARTER: SPRING 12
Features
PASSION THE
DRIVER
50
44 bq live debate
Women in the boardroom – how do
we achieve it?
50 passion the driver SERIOUS TRUFFLE
24 the quay of life Turnberry’s general manager is very
Charan Gill on finding contentment in happy, and still getting to grips with golf
Rajasthan – and Musselburgh
73 the winning years
76
30 my £12bn games VisitScotland’s Mike Cantley on the
Baroness Ford’s regeneration project what, the how and the why
36 the green path 76 serious truffle
The Scottish renewables revolution has The Highland Chocolatier reveals
innovation and knowledge on its side Perthshire’s sweet success
BUSINESS QUARTER | SPRING 12 06
7. TENTS
SCOTLAND EDITION
Regulars
40 COMMERCIAL
PROPERTY
The landmark developments creating
our industrial and commercial landscape
56 BUSINESS LUNCH
Sharp to the bottom of the glass
KEEP SHARP
56
60 motoring
BMM’s new 3-Series – like an old friend
62 wine THE ITALIAN JOB
The Italian Job with Cookies on the side
08 ON THE RECORD
Doing the positives in business 64 equipment
Patek Philippe’s latest classic model
62
12 NEWS
Who’s doing what, when, where and 68 fashion
why, here in Scotland Vivienne Westwood is queen of the ritzy
20 AS I SEE IT 78 bit of a chat
It pays to pay attention to the risks Gripping gossip from our backroom boy
07 BUSINESS QUARTER | SPRING 12
8. ON THE RECORD SPRING 12
Team culture motivates supporters
A ten-minute tea-break with Jane Wright, chief
executive of Law at Work, which is celebrating ten
years in business and has been named one of the
Sunday Times’ Best Workplaces in Scotland
What is it that Law at Work does? We and we’ll work within the law to guide them much more effective at work. What attracted
manage risk for organisations in all elements to the best outcome. More than 97% of our me was that I looked through all the material I
of health and safety, employment law and clients have had a positive client outcome. was sent and I thought what a fantastic
human resources. What we do is provide the What kind of people do you have at Law product. I thought why are they not bigger
quality that organisations would expect from a at Work? We’re different because we have a and why haven’t I heard of Law at Work? It
leading law firm with a guaranteed all-inclusive range of highly qualified people both legal and was an opportunity to make a difference.
fee structure. HR. Our legal team – headed up by Donald What have you brought since your arrival?
But what makes Law at Work different MacKinnon – can deal with the simple issues When I joined, the first thing I did was spend
from a traditional law firm with its own right through to tribunal and litigation. We are time with every person in the business and
legal expertise? We are very, very different. In not a call centre with HR advisers. asked them a host of questions. The best
a traditional law firm, everything is about fee What are the issues that your clients face? insight is from your own people. Then I talked
generation and it is priced by the hour, even Some are very complex, such as large-scale to our clients. I shared my research and what
with a retainer in place. We truly do not redundancies, and TUPE transfers and a tricky came out loud and clear was, “We’re good
measure the time we spend with clients; we disciplinary case that might end up in tribunal. but we need to spread the word”. It was my
don’t have the systems to do it. There’s not Some of them are just additional help with job to bring a vision and a three-year business
clock on the table. Unlike a traditional law firm HR support. plan. I didn’t have to change the products,
we are there from the beginning for clients, so
it’s a business partnership and we operate
more of a consultancy model. We only work
It was my job to bring a vision and a
for organisations and we are seen as part of three-year business plan. I didn’t have
the in-house HR team.
So how do you measure the value of what to change the products, I had to engage
you do then? We are measured on client
satisfaction and retention and we are
people in what we could deliver
measured as a team. This drives a different
behaviour in the firm. Everybody’s working to
support all the clients – there are no barriers. What is your typical client size? Every one I had to engage people in what we
What does a business or an organisation of our clients works in a different way with our could deliver.
get? Most of our business is in fixed-fee legal team, depending on what’s important. Where will the business be in three years’
employment law and health and safety Some of our smaller clients don’t have an time? I want to be the leading fixed-fee
services. We also provide consultancy and in-house HR department support, we are that provider in Scotland. Our chairman is
add-on but for the core services, what our outsourced support, with a legal angle. Others Magnus Swanson, the former chief executive
clients get is unlimited access to our qualified with an in-house HR director will use us for the of Maclay Murray Spens LLP, who still have a
team of employment lawyers or health-and- more complex issues. stake in our company. We are small and we
safety specialists – 24/ 7, 365 days a year. They What attracted you to Law at Work? have to set our ambitions. There were 19
can consult us as early in the process – right up I knew I wanted to do something different. I’d people when I joined in May 2010; now there
to dealing with litigation. worked with GlaxoSmithKline and Diageo in are 27 of us. We have offices in Edinburgh,
What is your approach? We have a much senior sales roles. There was the personal side Glasgow, Aberdeen and London and we’re
more commercial approach, so what we do is that I wanted to live in Scotland. I believe if working with clients south of the Border, but
08
look at the solution and outcomes for business you’re happy as a person that makes you I’m focused on where we are strong.
BUSINESS QUARTER | SPRING 12
9. SPRING 12 ON THE RECORD
Applications invited
Communication – and the ease of – is at the heart of Scotland’s digital
groundswell, whether it’s in education, entertainment or industry
The teaching potential of technology is one Within a primary-age classroom, group Digital Dozen: Tech start-ups
of those hot-button topics. Are we good activities and collaborative working are key, to watch in Scotland
parents if we give a child an iPad to play with, Ho says.
opening up all potential learning opportunities “But there are so few applications and games 1. Mobile Acuity – Edinburgh
and preparing them for a technologically- that facilitate that sort of collaboration. We all Like Interface3, Mobile Acuity is based in
oriented future, or is it second only to dumping have to work together and collaboration is Appleton Tower in the University of Edinburgh.
them in front of the telly while we get on with much more a part of our skill set.” Mobile Acuity’s Visual Interactivity platform
more interesting things? While multi-touch is especially well suited to lets consumers use camera phones to identify
As with any new technology, touch-screen group learning, their work has taken the team products by taking pictures of them. Take a
tablets have their doubters, but new into other technology areas as well, including picture of a tin of beans – or even a picture of
applications coming out are showing that augmented reality and motion sensing a picture – and if you see an advertisement
technology can do unique things in the technologies like Microsoft’s Kinect. and like the look of it, send it to a retailer who
learning environment, and certainly has its The company recently made the news for its will then send you more information on the
place in the tools available to teachers. work with University of Edinburgh researchers product and potentially even let you buy it on
Kate Ho set up Interface3 in 2009, planning to on iPad apps for children with autism. the spot. Tesco is running trials of the Visual
focus on touch-screen technology. She Ho says: “They were looking at how – or Interactivity platform, and already uses Mobile
anticipated working as a consultant, bringing whether – apps and games can help children Acuity’s SDK barcode scanning technology.
her own understanding of the format and her with autism with social skills. They had a fairly In January, Mobile Acuity won “a significant
design expertise to other people’s projects. rough app they handed to us, looking for equity investment” to expand its operations
“And to kiosks,” she says. “Digital signage, someone to polish it up. So we’re now in into the US and Asia. The investment came
point-of-sale systems, that sort of thing, negotiation with the university to license it. from bieMEDIA, a US-based company, and a
and looking at how multi touch could “We bring in the commercial expertise and Scottish business angel network.
influence design.” marketing to drive the whole thing and to www.mobileacuity.com
Then in 2010, Interface3 won a contest set up basically open up a market that is really quite
by SMART Technologies, a manufacturers of underserved.” 2. My1login – Glasgow
“smart tables” – touch-sensitive table tops that By the same collaborative token, developing My1login recently secured £250,000 in
are “not far off a flat iPad”, says Ho. While these apps isn’t something the company could funding from Scottish Enterprise to develop its
these smart tables are not much seen in the have tackled alone. password storage system which lets users
UK, they are increasingly popular in the US. “It’s very difficult to just go round developing securely store and use all of their favourite
As SMART Technologies was very focused on apps for autistic children; you really need sites with just one password. “Military grade”
the educational market, Interface3 began to specialist knowledge,” Ho says, adding that encryption assures security and the company
work closely with teachers, and with others she is incredibly glad to have started her itself has no access to users’ data. Users can
interested in learning and education. business in Edinburgh where support for tech store all of their passwords and even securely
“We ended up shifting quite radically away start-ups is very high. With offices in the share them with friends and colleagues.
from point-of-sale systems and digital signage University of Edinburgh’s Appleton Tower, the A free version is available, with some
and so on, firmly into education,” says Ho. team is surrounded by start-ups at a similar advertising, but the company aims to upgrade
Now employing four people full-time and two stage of growth. customers to a paid version.
part-time, Interface3’s games developers and Ho co-runs the Startup Café, a website www.my1login.com
games artists are working on educational encouraging start-ups with information on
games with a strong collaborative element. events, meet-ups, competitions and news on 3. FreeAgent – Edinburgh
“That’s where the multi-touch comes in,” she local companies. FreeAgent offers online, cloud-based
says. “We (aim for) really good games design “It’s great to watch as other start-ups get accounting services for small businesses in the
married with an understanding of pedagogy, going,” she says. “You just feel really pleased UK. More than 12,000 UK sole traders are
actual learning, not just playing games for your mates are doing so well. And it spurs you using its service, FreeAgent says, and many
09
games sake.” on, too!” accountants also direct their clients to record
BUSINESS QUARTER |SPRING 12
10. ON THE RECORD SPRING 12
income and outgoings using the service. The 6. Outplay Entertainment – Dundee Fringe, London Film Festival and the Scottish
company recently moved to new offices in the The social and mobile games developer was Qualifications Authority. Apps are either built
West End of Edinburgh and expects to grow set up in Dundee in 2010 by brothers, and from scratch or created using Hedout,
staff numbers to almost 40 this year. games industry veterans, Richard and Douglas Kotikan’s own content delivery programme.
Two funding rounds in the past two years have Hare. They previously created a studio in The company won the heraldscotland.
raised over £3m in capital from private and California, called The Collective, which com-sponsored Best Use of Mobile Technology
angel investors as well as IRIS business developed high profile titles, including Star Award in last year’s Digital Business Awards,
software and the SM Trust. A partnership with Wars: Episode III, Indiana Jones and the for its work with SkyScanner.
IRIS, the UK’s largest private software house, Emperor’s Tomb. With Outplay Entertainment, http://kotikan.com
and one with Barclays Bank and BCSG, as part the Hare brothers are focused on games for
of their My Business Works software package, social and mobile platforms, including 10. Technabling – Aberdeen
have also boosted FreeAgent’s growth. Facebook, iOS, Android and Google+. The This Aberdeen University spin-out is working
www.freeagent.com Dundee studio opened in April 2011, backed on an application to translate sign language
by Pentech Ventures and the Scottish into text. Using the Portable Sign Language
4. Epistemy – Edinburgh Co-investment Fund. Translator, the speaker will sign into a camera
Epistemy is a spin-out from the Uncertainty www.outplayentertainment.com on a computer or mobile phone, and their
Project at the Institute of Petroleum words will be reproduced as text on the
Engineering, Heriot-Watt University in 7. Hydrafact – Edinburgh screen. The team hopes to have the
Edinburgh. The Uncertainty Project is looking Another Heriot-Watt Institute of Petroleum application available by 2013. The PSLT project
at the best ways to produce accurate estimates Engineering spin out, Hydrafact was has secured £150,000 in funding from the
of risk and uncertainty in predicting future oil established in 2006 and now employs 12 Small Business Research Initiative, sponsored
production and reserves. Launched in 2009, people, five of them full-time. Its recently- by the Department for Business Innovation
Epistemy aims to create easy-to-use software released software, HydraFLASH, focuses on and Skills and the Technology Strategy Board.
to tackle complex engineering problems. Its flow assurance to ensure oil wells do not www.technabling.co.uk
first product, Raven, builds on the work of the become blocked. Engineers can ensure oil
Uncertainty Project, but longer-term the production is maintained and problems 11. Kiltr – Glasgow
company aims to move into other markets. anticipated. Hydrafact has been profitable The social networking site recently secured a
www.epistemy.com since its first year, based on its consultancy third round of funding and plans a full launch
services, training and sales of its HydraCHECK this year. Established in 2007, and aimed at
5. oneDrum – Stirling hydrate inhibition monitoring device. “everyone with a Scottish connection”, Kiltr
oneDrum's peer-to-peer desktop application /www.hydrafact.com aims to connect Scots living in Scotland, the
brings “Google Docs” functionality to “Scottish diaspora” and anyone who feels an
Microsoft Office applications, letting users 8. Contemplate – Edinburgh affinity with the country. Investors include Par
collaborate on Word, Excel and PowerPoint Set up in 2009 by staff from the University of Equity, Scottish Investment Bank and
files. Each user can work offline and any edits Edinburgh’s School of Informatics, Glasgow-based venture capital group Barwell.
are added to the shared document when they Contemplate creates tools to improve software www.kiltr.com
next connect. Funded by Amadeus Capital for financial institutions. Its ThreadSafe
Partners, the service was launched in product helps identify bugs before they 12. VLC Ltd - Edinburgh
November 2011 for Windows users, with a become costly mistakes. The company is VLC – or Visible Light Communications – has
Mac beta version now available. Up to 100 currently working on trials with top-ten raised £180,000 through the Par Syndicate
users can collaborate, and work on files up to investment banks, and aims to make its first and other private investment, and supported
5Mb in size. Initially the product is free to product available for general release this year. by Scottish enterprise’s Proof of Concept. The
download, although oneDrum says it is www.contemplateltd.com initial funding has been earmarked to launch
working on a premium subscription model. the first prototype “Li-Fi” technology
Although the initial focus is on Microsoft 9. Kotikan – Edinburgh application which will see LED light carry
Office, the underlying oneDrum sharing Yet another Appleton Tower start-up, the optical wireless communication streams.
technology could be used for any files, and mobile development company has been Research was carried out by Professor Harald
longer-term the company plans to release an creating apps for mobile devices since 2007. Haas, Professor of Mobile Communications,
application programming interface (API) and Formerly known as Loc8 Solutions, it changed School of Engineering/Institute of Digital
software development kit (SDK) to let users its name to broaden its reach from location- Communications University of Edinburgh, who
incorporate it into other products. based apps. Clients include fellow Scottish heads the D-Light project.
10
http://onedrum.com business SkyScanner, the Edinburgh Festival http://visiblelightcomm.com
BUSINESS QUARTER | SPRING 12
11. Converge Challenge
Creating Scottish Entrepreneurs
‘12
Where have all the
entrepreneurs gone?
We are a country of innovators. Converge
Challenge is an opportunity for would be
entrepreneurs from Scottish Universities and
Key facts: Research Institutes to transform their idea
from business plan to fully incorporated
company through business mentoring and
Since launching in 2010, Converge Challenge
hands on training.
has become a trailblazer in its field.
We have had 80 applications. WHy PaRtNeRING WItH
cONVeRGe cHaLLeNGe Is aN
We have trained 50 company founders. OPPORtUNIty NOt tO MIsseD
9 companies have been incorporated. As Converge Challenge grows its profile,
there is an opportunity for your businesses to
8 companies are in process of incorporation. meet its Corporate Social Responsibility goals,
raise your company’s reputation, generate
And we have awarded over £90,000 in cash positive press opportunities and give back to
and business support. the Scottish economy.
To find out how your business can benefit from partnering with Converge Challenge,
please contact Dr Olga Kozlova, Enterprise Creation Manager at o.kozlova@hw.ac.uk
or on 0131 451 3870 or visit www.hw.ac.uk/convergechallenge.
Distinctly ambitious
www.hw.ac.uk/convergechallenge
12. NEWS SPRING 12
First minister galvanised in Cumbernauld, Clansman sustains its
future, Weir gets bigger revenues, the FSB points to the US and
Germany, and Greene King colours the Edinburgh media scene
Corporate and Santander UK plc.
Salmond shown true colours The renewal ensures STV has facilities that
allows the company to focus on securing
licence renewal and continued delivery of its
growth strategy.
George Watt, chief financial officer said: “We
are very pleased to have successfully renewed
our bank facilities in the current market
conditions. These new facilities will provide the
group with certainty in the medium to
long-term and flexibility to continue to pursue
our growth ambitions.”
First minister Alex Salmond has launched the £2.5m Colourgalv Centre created by Highland We are very
Galvanizers and Colour Coaters at Blairlinn Industrial Estate in Cumbernauld. He was
welcomed by managing director Geoff Crowley, pictured left, and chairman Douglas Ashmead. pleased to have
The investment sees Highland cement its position as a leading galvanizing and colour powder
coating firm. The company employs 59 staff at Cumbernauld and its new centre houses an
successfully
exhibition centre featuring Colourglav, a hot-dip galvanizing and powder colour coating process
which stays colourfast for up to 30 years and protects against corrosion for up to a century.
renewed our bank
facilities in the
Clansman’s £11m The business became employee-owned in current market
robotic success
Clansman Dynamics, a global leader in the
late December 2009, realising an ambition
by Dick Philbrick to ensure the company
conditions
design and manufacture of robotic had a sustainable future under employee-
handling equipment, announced turnover has ownership. Co-operative Development
soared by more than 60% – from £7m to Scotland and Baxi Partnership helped create Linn breaks the
£11m – in the two years since the company a funding package to buy the business.
sound barrier
became employee-owned.
Founded by Dick Philbrick and two STV renews bank support Linn was winner of the Product of
colleagues in 1994 and based in East Kilbride, STV Group has renewed its £70m bank the Year award for its new range of
Clansman produces sophisticated material facility comprising a £37.5m term loan and DSM Systems at the Scottish Business
handling solutions for forges, foundries, £32.5m revolving credit and overdraft facility Awards ceremony at Edinburgh’s
aluminium smelters, waste processing and with December 31 2014 maturity dates. International Conference Centre.
manufacturing. Clients include many vehicle The new facility includes a provision for an DSM Systems were introduced in
manufacturers, such as Volvo, Fiat and extension, until March 2016, subject to lender December 2011, building on Linn’s existing
Kamaz (Russia’s largest truck manufacturing approval and the extension or renewal of STV’s range of digital streaming players which
business). broadcast licences being confirmed prior to make it easy to connect your music around
Clansman exports over 90% of production – December 31 2013. The facility is secured and the home.
China accounts for 30% of sales – with Russia is provided by Bank of Scotland plc, Barclays
and India important markets.
Clansman employs 38 staff – an increase of For the latest news, analysis and insight on issues affecting Scotland’s
five since the employee buyout – and the business community visit:
company is recruiting for additional www.bq-magazine.co.uk/scotland
12
mechanical engineers.
BUSINESS QUARTER | SPRING 12
13. SPRING 12 COMPANY PROFILE
The part-time Strathclyde MBA: all the benefits of an MBA without the career break
STRATHCLYDE BUSINESS SCHOOL:
A WORLD-CLASS BUSINESS SCHOOL
ON YOUR DOORSTEP
F
OUNDED in 1947, the University of benefitting both themselves and their employer.
Strathclyde Business School (SBS) is a Students can also choose to do their final
pioneering, internationally renowned project on a subject or area of business which suits
academic organisation that shapes their employer.
and develop the business minds of tomorrow. Traditionally, companies tend to sponsor
Strathclyde offers the highest quality business employees who are embarking on part time study
education and management development for both for the MBA, realising that by doing so they will
inexperienced graduates and senior managers. not only be recognising and rewarding a valuable
With experience of offering an MBA for over 40 employee but they will benefit too from the
years, coupled with its triple-accredited status, knowledge the student is gaining by its immediate
Strathclyde Business School offers a quality, application in work projects.
world-class, learning experience. However, many individuals now fund themselves
Strathclyde is the only triple-accredited business through a part time MBA and working throughout
school in Scotland and one of a small number the period of study allows the student a
world-wide. Accreditation is an independent and continuous income flow which helps finance
rigorous process that involves assessment of all the degree.
aspects of the school and its programmes, carried “I DECIDED TO DO MY MBA AT Strathclyde Business School recognises that self-
out by teams of professional assessors assisted STRATHCLYDE AS THE BUSINESS funding can put a strain on finances and, for those
by senior management from other management in that category, Strathclyde has a number of
schools. Strathclyde has successfully been
SCHOOL WAS NUMBER ONE IN
scholarships on offer. This year there are three:
assessed and gained accreditation from the three SCOTLAND AND ONE OF THE TOP Female Leader of the Future Scholarship
international accrediting bodies – AMBA (UK), SCHOOLS IN THE UK.” Entrepreneurial Scholarship
EQUIS (Europe) and AACSB (USA). Visionary Scholarship
MAZ ALKIRWI, SSE PLC, PART-TIME MBA 2009-11
The business school also has a reputation for Each scholarship is worth around 50% of the fee,
research excellence. Most recently, in the 2008 and specific details can be found online:
Research Assessment Exercise, Strathclyde was work, doing an MBA at the same time as working http://www.strath.ac.uk/mba/scholarships/
rated 7th in the UK for its ‘world leading and full-time demonstrates discipline, motivation and
internationally excellent’ research, all of which skills such as time management and team work.
feeds back into the MBA teaching process. Students on the part-time programme attend
The Strathclyde MBA can be studied full-time, evening classes throughout three years of study –
part-time or via flexible learning - all routes of though it can be fast-tracked over two years - and
the MBA follow the same programme of study but there are also four weekend schools throughout
students utilise different study methods to achieve that period. The classwork allows students to meet
the same outcome. Studying for an MBA part and work with other fellow professionals from For general information on the Strathclyde MBA
time is a perfect way of gaining this prestigious different areas of business and many of those who please contact us at:
qualification without sacrificing have completed their studies via the part-time Marketing and Student Recruitment, University
career and finance stability. route point to the interaction with fellow students of Strathclyde Business School, 199 Cathedral
Part-time study is ideal for those who wish to as one of the benefits of this means of study. Street, Glasgow, G4 0QU
progress in their chosen field or move into another Part-time study also allows the student to Telephone: 0141 553 6118/6119
area of business or want an understanding of all implement the skills and theories learned in the Email: SBS.admissions@strath.ac.uk
13
aspects of their business. While it may be hard classroom direct into their work environment, www.strath.ac.uk/business
BUSINESS QUARTER | SPRING 12
14. NEWS SPRING 12
FSB points accusing finger The five main UK banks reported that they had
Weir posts record results at bank lending missed their Project Merlin lending targets to
The Federation of Small Business (FSB) in SMEs by more than £1bn. The coalition
Scotland points to Germany and the United government’s Project Merlin arrangement
States in highlighting the weaknesses in the required the UK’s five largest banks – HSBC,
UK banking model – where a few large Santander, RBS, Lloyds and Barclays – to make
financial institutions offer limited discretion to it easier for small businesses to access credit.
local decision-makers. The banks were also bound to an agreement
An FSB report notes that between 2007 and to lend £76bn to small firms but only managed
2010 there was a 24% fall in the number of £74.9bn during the last 12 months.
successful loan applications for small A bank spokesman blamed the shortfall on
businesses in the UK, compared to only a 9% a lack of demand from small businesses
decrease in Germany. Their report also points and described the market for credit as
to the United States and notes that the US “remaining weak”.
Weir Group, the Glasgow-based global Government’s Small Business Administration’s “The truth of the situation is that small
engineering solutions provider to the government-backed loans for small businesses businesses cannot access funding at
mining, oil and gas and power markets, have been a key plank of its economic competitive rates from the banks and so are
reported record results for the year ending recovery plan. resorting to personal savings,” said Gary David
December 30 2011, with revenue up 40% Andy Willox, the FSB’s Scottish policy convenor, Smith.
and operating profits up 33%. said: “For years, the FSB in Scotland has
Chief executive Keith Cochrane, above, warned that the dominance of two banks in The truth of the
said: “Weir achieved in 2011 its stated the Scottish business banking market could
ambition of doubling 2009 profits by 2014. harm effective competition – and as situation is that
This excellent performance was due to the
ability of the group to execute effectively
consequence – the country’s prospects. As a
matter of urgency, we need to develop more
small businesses
our growth plans in positive conditions in
our principal end markets. We also
alternatives that operate within Scotland to the
high street banks so that growing small
cannot access
progressed our strategic agenda with new businesses can drive the recovery and create funding at
product introductions, two acquisitions the jobs the country needs.”
which further increase our exposure to fast Meanwhile two thirds of small- to medium-size competitive rates
growing markets and revenue growth from
organic initiatives.”
enterprises did not seek outside sources of
finance last year and relied on the personal
from the banks
The order input was £2,467m, up 30% savings of business owners and entrepreneurs.
from £1,896m, while revenues were “It is extremely difficult to gain adequate
Core score on mediation
£2,292m, operating profits were £413m finance from the banks to meet growth
and operating margin was 18%. Profit targets,” said Gary David Smith, co-founder Core Solutions Group, Scotland’s
before tax was £396m – up from £295m. of Prism Total IT Solutions. which supplies leading mediator service, led by Dr John
Net debt increased from £284m to £673m IT support to over 1,000 SME’s nationwide. Sturrock, reported significant growth in
to fund the acquistions. The highlights “Many SME’s are not growing as they 2011, its tenth anniversary year. Turnover
included a record performance in the should do because they do not have capacity expanded by nearly 15% and mediation
mineral, oil and gas divisions with on demand. days increased by just under 30% to nearly
upstream oil and gas revenues doubling. “Using the personal savings of the business 100. Work with UK Sport in the run-up to
The full-year dividend was increased by owner as working capital is always going to be the Olympics, with the London and Welsh
22% to 33p. an unsustainable strategy – except in very Assemblies and with many other public
Weir’s acquisition of Seaboard in December exceptional circumstances.” and private sector organisations
2011 – a US manufacturer of wellhead The report, by Bibby Financial Services, emphasised the strength of Core’s
solutions – has helped broaden the surveyed 450 business owners and the increase offerings. Research suggests that conflict
footprint in upstream oil and gas markets, in companies saying they did not request costs UK business more than £30bn a year,
while the acquisition of Novatech, external capital rose by 11% from the 2010 takes up more than 20% of leadership
completed in February, will enhance the figure. Personal savings became the most likely time and results in the loss of 370 million
hydraulic fracturing pump portfolio. source of working capital for these businesses working days.
14
in the final quarter of 2011 said Bibby’s report.
BUSINESS QUARTER | SPRING 12
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16. NEWS SPRING 12
VIP open day for FNZ MMS steers Peacocks deal
Bank spends on 36 deals
FNZ, the provider of integrated wealth One of the biggest deals of the year so far
management platforms, was joined by Alex The Scottish Investment Bank invested involving a Scottish business – the
Salmond, Scotland’s first minister, to open its £7.6m in 36 deals between September acquisition of Peacocks by Edinburgh Woollen
new headquarters at Tanfield, Edinburgh. FNZ 30 and December 30 2011, leveraging Mill – was advised by Maclay Murray Spens
has growing significantly since it moved to £20m of additional investment from the LLP. The MMS corporate team steered the
Scotland in 2005, with funds under private sector. acquisition by the Langholm-based business
management increase by 40% and revenues This included support from SIB’s Scottish – owned by entrepreneur Philip Day – of some
increase by 61%, over the year alone. FNZ is Venture Fund which invested in Edinburgh- 338 stores from Peacocks to a successful
using this boom in business to create jobs for based life sciences company NuCana conclusion, following the collapse of the
UK graduates at its Edinburgh headquarters. BioMed Ltd. fashion retailer in January.
Over 20 graduates have been joining the The SVF investment was part of a £6.7m Michael Hughes, a corporate partner and head
company during the first quarter of 2012, in Series A funding round. The deal was led of corporate recovery and insolvency, led the
addition to the 213 new starts in Edinburgh by Sofinnova Partners with Morningside team which completed the transaction. The
since January 2010. Ventures and Alida Capital International acquisition sees more than 6,000 jobs saved
Christian Dougal, FNZ Director said: “Despite investing alongside the SVF. and includes 57 concessions and three
reports of the worst economic slowdown in Meanwhile, more than 1,000 jobs are to distribution centres, as well as the firm’s
decades, at FNZ we’re seeing tremendous be created thanks to over £12m of head office.
growth. Recruiting from the large pool of Regional Selective Assistance funding. RSA Cardiff-based Peacocks was unsuccessful in
highly talented graduates in the UK means we grants were accepted by 20 businesses restructuring its debt in January, which led to
can support our client base with some of the between October and December 2011. the appointment of KPMG as joint
brightest young people around, while helping The funding will support planned administrator. The value of the transaction has
them gain the skills and experience for a investment of over £62.8m, creating and not been disclosed, and EWM is working on
successful career in financial services.” safeguarding 1,007 jobs. plans to reopen more Peacock stores.
The biggest award of £5.2m was made to
Infiniti in drive for Michelin Tyres plc in Dundee, followed by a
Beer cheer for North Star
£2m award for Stirling-based Superglass
Scottish leather
Insulation Limited. North Star Advertising, the Edinburgh-
Bridge of Weir Leather Company has based media agency, has won a £4m
been chosen as the interior material account handling Greene King beers and
supplier of choice to the acclaimed Infiniti Gael force in Middle East brands division. The agency, which already
Emerg-E concept car, revealed at the East-Kilbride based software and handles Belhaven Best, and will now add
Geneva International Motor Show in technology experts Gael – chaired by Greene King IPA, Old Speckled Hen and
Switzerland. former enterprise minister Jim Mather – has Abbot Ale to its roster. Dom South, Greene
Bridge of Weir has supplied two grades of expanded in the Middle East by signing a new King marketing director said, “Given the
soft leather – in black and metallic partnership agreement with US supply chain plans for the coming year, we felt that
champagne colours – to adorn the interior solutions giants, Inventory Locator Service. North Star would provide the kind of
edges of the premium Japanese car. As a The deal, worth £500,000 a year , will see all-round media delivery, thinking and
zero-emissions plug-in hybrid, the Gael represent the ILS operation with clients single-mindedness that would best suit
low-carbon ethos is shared by both Infiniti across the Middle East region and will create our needs.”
and Bridge of Weir. new jobs in both the Middle East and in Nick Stewart, managing director of North
Scotland. Gael has an established operation in Star, said: “This is obviously a fantastic win
Dubai servicing the aviation marketplace and for us. Greene King is a great client and
Leading law firms merge has a wide range of customers utilising the has some great brands, with a great
Charlotte Square, Edinburgh, legal firm Fyfe company’s Q-Pulse software application to heritage. It’s recognition of the great work
Ireland has now merged with Tods Murray manage aviation safety and quality the guys have done on Belhaven.”
LLP to create one of the strongest private management. Gael, established by Donald Founded in 2008 by Stewart, Barry Fearn
client teams based in Scotland. Fyfe Ireland Maciver in East Kilbride in 1992, has grown and Peter Donaldson, North Star’s clients
partners, Greig Honeyman and Drew Taylor, turnover to more than £8m. The company include the National Galleries of Scotland,
along with eight solicitors and six support announced a new Q-Pulse/iPad deal with the RA, Genius Foods, Apex Hotels and
staff, joined Tods Murray in January. The General Civil Aviation Authority in the United Stevenson College.
16
combined firm is known as Tods Murray LLP. Arab Emirates at the Dubai Air Show.
BUSINESS QUARTER | SPRING 12
17. SPRING 12 COMPANY PROFILE
The Royal Yacht Britannia hosted the recent BQ Live Debate with focus on ‘women in
the boardroom’ (see pages 44-49). This former floating royal residence is now one of
the UK’s most prestigious five-star corporate event venues in addition to an award-
winning visitor attraction by day. However, for many world leaders, ‘Britannia’ has
always meant ‘business’…
THE ROYAL YACHT BRITANNIA
A
S well as hosting royal banquets
and receptions, Britannia was an
ambassador for the UK, promoting
trade and industry around the world.
From New York to Sydney, The Queen’s guests were
entertained as if they were at one of the royal
palaces. The Royal Yacht was involved in numerous
trade missions and an invitation on board for what
became known as ‘Sea Days’ was very much sought
after by the world’s business and political leaders.
Today the tradition continues and Britannia offers
a unique opportunity for corporate clients to
host exclusive dinners and drinks receptions in
the impressive State Apartments. And, as guests
at the recent BQ Live Debate experienced for
themselves, the meticulous attention to detail and
highest royal standards for which Britannia was
renowned are still rigorously adhered to today.
From the artistic canapé creations and artisan
breads, to delicate hand-made petits fours, all
food is created on board by Executive Chef,
Mark Alston, and served by Britannia’s
immaculate butlers.
Complete privacy and discretion are assured and
every last detail is catered for by a dedicated
Events Manager, allowing guests to concentrate
on the business at hand.
As the Commonwealth prepares to celebrate the
Diamond Jubilee, where else could be more fitting
to host your event than The Queen’s former Royal
Yacht Britannia.
For further information on hosting the event of a lifetime on board Britannia, please call the events
team 0131 555 8800 or email events@tryb.co.uk
The Royal Yacht Britannia Ocean Terminal, Leith, Edinburgh, EH6 6JJ
17
www.royalyachtbritannia.co.uk
BUSINESS QUARTER | SPRING 12
18. NEWS SPRING 12
BQ people on the move
Stuart Johnston has been appointed a Spens LLP as a litigation partner, boosting its £2.5bn equity investment capital fund backed
partner of DM Hall. A graduate of Aberdeen ten-strong construction and engineering team. by five of the largest banks in the UK. Munro
University, he has worked in professional The move is the firm’s sixth partner built his career with RMD, JP Morgan,
practice for many years, latterly at CBRE, appointment in three months, with Scott Simmons and Lime Rock where he was a
before joining DM Hall in 2010 as a director moving from McGrigors, having spent ten partner and managing director.
overseeing the growth and expansion of the years with Clifford Chance in London and
office in the North-east. Hong Kong. Paul Hatton has joined Exova, the global
testing business as sales director. He was
Julie Grieve has been appointed as Genevieve Shore has joined the board of previously with Flextronics Global Services as a
managing director of Braemore Property STV Group as a non-executive director – Business Unit Director. Stuart Neill is also
Management, part of Lomond Capital. She replacing Matthew Peacock, who served since joining as global communications manager
was previously managing director of Abbey February 2007. Shore sits on the management from the Scottish Government.
Business Centres. board of Pearson plc, reporting to Marjorie
Scardino, as chief information officer and David Birrell has become the new chief
Glen Gribbon has been appointed director director of digital strategy of Pearson. executive of Edinburgh Chamber of
of iconic brand The Famous Grouse at the Commerce. He joins from McCurrach Group
Edrington group. He joins from Vets Now Gordon Scott has joined Barclays Wealth in where he was group strategy director,
where he was managing director, having Glasgow as a new director, arriving from following a long and successful career with
built his career with Whyte Mackay, Kleinwort Benson. His appointment follows a Unilever.
Colgate and Mars. period of growth for Barclays Wealth, headed
by Craig Jamieson, which provides bespoke Alastair Young has joined Gordon
Iain Malloch, head of mortgages for Lloyds financial services to high net worth clients in McPhail, the leading malt whisky specialist and
TSB Scotland, has been appointed chairman of Scotland. Scott served for three years as head owners of Benromach, as financial director. He
the Council of Mortgage Lenders Scotland, of private wealth management at Kleinwort spent the bulk of his career with BAT Industries
succeeding Jim Dunn of the Scottish Building Benson where he was a senior figure in the in a number of roles around the world.
Society. He joined TSB in 1983 and is a Fellow Scotland team.
of the Chartered Institute of Bankers. Lindsay Dixon is the new group financial
Lisa Murray is now heading up the Scottish controller of The Weir Group plc. She joined
Wendy Ferguson, a former Management branch of Ad Hoc Property Management, a from Johnston Press plc.
Today Woman to Watch, has been appointed Dutch company building a presence in
head of financial services for Grant Thornton Scotland. Murray, originally from Skye, joins Senergy, the rapidly-expanding global oil
Scotland, to head up the firm’s newly after more than three years as sales and service business has appointed Mike
established Business Risk Services team, with marketing manager for a self-build timber McEwan as VP Finance. He was previously
another high-level appointee, Leigh McLuskey, frame company. European finance director of architects RMJM
who helped set up Grant Thornton’s Business and finance director of Miller Construction.
Risk Service in London. AWD Chase de Vere, the national firm of
independent financial advisers, has appointed Scottish Salmon farming company Loch Duart
Brian Milne, a former Deloitte director, has Paul Fox as private client advice manager for has appointed Simon Maguire as financial
been appointed a partner in mid-tier the north, which includes offices in Glasgow. director. He joins from Shanks Waste
accountancy firm French Duncan’s business He will report to chief executive Stephen Management.
recovery practice. An insolvency practitioner, Kavanagh. Fox has 32 years industry
Milne has been a director at Deloitte since experience, most recently as a director at LEBC Fiona Whittaker has been appointed as
2005, prior to which he was a senior manager and head of corporate clients at Origen. head of learning and development for
at PwC. FirstGroup, the world’s largest surface
Simon Munro is the new Scottish director transportation company. She was previously
David Scott has joined Maclay Murray and for the Business Growth Fund, the major new with RBS, GSK and BP.
If you’d like to include someone on the move, please email editor@bq-scotland.co.uk
BUSINESS QUARTER | SPRING 12 18
19. Business interests across Scotland,
North East, and Yorkshire?
Subscribe to BQ!
One business magazine
- 3 regional editions
Providing the inside track on what drives leading
businesses and business people, BQ offers a unique
and refreshing mix of business news, commentary and
profiles of the most inspirational entrepreneurs across
the North East, Yorkshire and Scotland. Published in
three separate editions with content unique to each
area, BQ aims to get to the heart and soul of business
people to find out what drives, inspires and motivates
them towards their ambitions. Each quarter BQ also
brings its readership a wealth of regional business
www.bq-magazine.co.uk ISSUE SEVEN: SPRING 2012
intelligence and information, whilst looking ahead to
forthcoming events and reporting on recent SERIOUS TRUFFLE MAKER
The Highland Chocolatier’s sweet Perthshire success
developments that will have a significant impact on A £12.5BN GAMES CHANGER
the business landscape. Baroness Ford’s regeneration project aims for Olympic gold
THE WINNING YEARS why
Mike Cantley on the what, the how and the
BQ LIVE DEBATE
Women in the boardroom
QUAY OF LIFE
Charan Gill finds life after Ashoka and spiritual
www.bq-magazine.co.uk ISSUEELEVEN:WINTER2011 www.bq-magazine.co.uk ISSUESIXTEEN:WINTER2012 contentment in Rajasthan and... Musselburgh
access to finance
Banksaren’tlending.Yestheyare.ABQ2specialreport
a force in the air BUSINESS NEWS: COMMERCE: FASHION: INTERVIEWS: MOTORS: EVENTS
TheaviationcompanyonthestandatDurhamTees
Valleywithitsthrustonrunwaysworldwide
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Simplisticmanufacturingandcontinualimprovement going for it
SirPeterVardyonsweepingfloors,strippinggearboxes
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Corporate a
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Yorkshirebusinessistoughbuthealthy–andready ‘a good eye is my forte’
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live debate
a clear view Winningfinanceforgrowth–isitpresentation,blackart,
Individual p
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ackages
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TourismintheNorthEastisourmostlucrativeinward
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BQ is no ordinary business publication. With unique content and a style determinedly its own, its aim is to
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20. AS I SEE IT SPRING 12
Get your
internal engine
in right gear
Edinburgh-based David Reynolds, the current president of the Chartered
Institute of Internal Auditors in the UK, says business success over the
long term depends on greater attention to the risks that are inherent in
all kinds of organisations
Every business faces some kind of risk to its sexual discrimination, bullying, theft and for an inquiring and intelligent person willing
future. Of course, there are risks that you bribery and corruption. to maintain high levels of independence and
simply can’t predict, such as the Japanese Even in our public sector there are massive integrity.
earthquake, the tsunami and its impact on the every-day risks. For example, Falkirk Council As a professional body, the Chartered Institute
global nuclear energy industry, iPad production has taken a more determined look at its own of Internal Auditors, which was granted a
– and those that you can. And we can see internal business matters because it felt its royal charter in October 2010, has
plainly what happens when companies procurement organisation risked being a been supporting internal auditors to raise
don’t pay proper heed to the risks that they target for organised criminal activity. Working the bar in both private and public companies.
can influence. with the Scottish Crime and Drug Enforcement One strategy for the institute is to attract
The fallout from Scotland’s banking crisis has Agency, Falkirk has updated it response to new talent to the profession and chartered
thrown up some perplexing questions about criminal activities. They are to be applauded status with advanced diplomas in internal
risk, proper procedures and vital questions that for this course of action. audit practice and management highlight
senior board figures failed to ask, while the Over the last few years, the critical roles of the our commitment to ongoing training and
sad saga of the events at Rangers (I’m a Partick internal auditor have come into much sharper practical learning.
Thistle fan, born in Glasgow, and now living in focus in such areas. The valued internal auditor With a longer-term perspective, the institute’s
Edinburgh) show that some senior board-level has a unique place in any company to test the strategy is to raise the profile of the profession
people at the football club were not looking controls that are in place and see if they are and increase influence and engagement with a
hard enough at all the levels of risk. robust enough. It’s a highly rewarding career range of stakeholders, but particularly policy
Even today’s entrepreneurial businesses must
constantly assess where things are likely to One of the biggest challenges of
go pear-shaped. Ask yourself; does your
business have a code of ethics that everyone the financial crisis has been in the
has signed up to?
Because, in most places today, this is boardroom, which must be more robust
becoming mandatory – and you need to spend
time explaining why you have such a code
when scrutinising business risks
20
over the use of IT, mobile phones, gender and
BUSINESS QUARTER | SPRING 12
21. SPRING 12 AS I SEE IT
A good internal
auditor has to be
visible from top
to bottom in an
organisation
makers, regulators and standards within an organisation, and to do that we
setters. The institute’s efforts need to be informed and knowledgeable
to build closer relationships about our organisations and how the
with heads of internal components knit together from an internal
audit to understand control and risk management perspective.
their needs better is The institute’s efforts in increasing
also a key in engagement are helping to provide a stronger
supporting the voice for internal auditors, which in turn will
building the profession. allow businesses to gain an incisive
One of the biggest challenges of the commercial edge. We know that more
financial crisis has been in the boardroom, productive engagement with heads of
which must be more robust when audit and the external auditors and
scrutinising business risks. That means consultancies is vital for the growth
that non-executive director must have and development of our institute.
access to more information from But it will also mean stronger
deeper inside an enterprise. Our companies across the UK where
own recent survey* shows that internally people feel more
in 63% of companies only the empowered to challenge poor
audit committee members have – or even corrupt – decisions
contacts with the internal audit when they see them. The
team. As a consequence, other familiar equation in business is
non-executive directors may be that the higher the risk, the
missing a chance to bring their greater the reward, but let’s
knowledge and experience to ensure that only sensible and
bear on crucial risk issues. While quantifiable risks are taken, not the
71% of non-executive directors see reckless sort that has caused so
substantial scope for improving the much national pain and damage. n
understanding of risk across their
organisation. With the help of internal David Reynolds has been involved in
audit, let’s make this happen. internal auditing for 25 years. He was
The internal auditor has a pivotal role to play director of internal audit and regulatory
in all kinds of companies. While we don’t seek compliance at BT. He is now a director of
the limelight as practitioners, a good internal US-based consultancy MorganFranklin.
auditor has to be visible from top to bottom in
an organisation and courageous enough to * The survey can be downloaded free
ask the tough questions. Our ambition from http://www.iia.org.uk/
is to be the trusted adviser
21 BUSINESS QUARTER |SPRING 12
22. Advertorial
Insight – the currency
of international trade
By Ian Collins, Area Director for Bank of Scotland
When businesses in Scotland begin to measure turnover
in millions of pounds, it’s fair to say that running them can
generate a whole new set of headaches.
Protecting cash flow from unpredictable foreign exchange
fluctuations is one concern which will trouble companies that
import and export – particularly in these volatile markets.
Little growth in the UK economy means revenue generated
from fast growing overseas economies is increasingly
the income stream needed to keep a growing business
moving forward.
Yet Bank of Scotland’s own research shows us that only
11 per cent of businesses in Scotland plan to protect these
revenues, despite almost a fifth (19 per cent) being active in
overseas markets.
With so many other pressures facing the management team
of growing businesses, it isn’t surprising that predicting the
ebb and flow of foreign exchange rates falls down a list of
company priorities.
Make revenue protection a priority Ian Collins, Area Director for Bank of Scotland
Protecting your revenue streams and securing your costs when
exporting or importing should make Foreign Exchange Risk Knowing your market
Management a core part of your strategy. Our recently launched Arena e-solution from Lloyds Bank
Businesses of all sizes in Scotland have found a sudden shift Wholesale Banking Markets is designed to do just that.
in exchange rates can turn a good contract bad. Reducing the Arena combines foreign exchange and money markets
risk of that can be addressed with a few simple options: deposit transacting with access to valuable market data and
economic insight to help businesses determine the optimum
• You may be able to negotiate terms with your supplier time to trade.
which allow for adjustments due to currency fluctuations.
• Some suppliers may be willing to let you invoice in Arena lets users display only the information they need
sterling so that your transaction is only linked to the on their desktops, whether it’s charts of currency markets
value of the pound. movements, currency analysis from the Bank’s economists
• Try and negotiate terms on a fixed price. or live market news. When they decide to transact they can
• If you have a fixed price contract then you need to consider do so easily and quickly on Arena.
implementing a Risk Management Strategy to protect your With finger-tip access to all the data, applications and
fixed price currency exposure. economic research, Arena helps businesses to manage
If exporting is something you plan to do more of, it is worth FX risk and trade effectively overseas.
opening a foreign currency account so that transactions don’t Don’t ignore the benefits of international trade due to a
have to be converted immediately. perception that the rewards are tempered by risk, seek
But there is no real substitute for regional and market insight to help you take the opportunity for expansion into
knowledge. While predicting currency fluctuations might new markets or strike up fresh supplier relationships overseas.
be complex, the process of deciding which option suits a
company can be made a lot simpler with some research For help with this, contact your relationship manager or
and insight. visit www.lloydsbankarena.com
23. At Bank of Scotland we’re here for Scottish
We’re here to
business, supporting opportunities for
growth and encouraging enterprise.
We are committed to developing long-term
help Scottish relationships with our customers to offer
them the support and guidance needed
to take their business forward.
business grow. From growing your business in a recovering
economy and beyond, you can be sure that
we’ll be with you all the way.
For more information visit
bankofscotland.co.uk/business
or your nearest branch.
As part of Lloyds Banking Group, Bank of Scotland is a Proud Partner for Scotland of the London 2012 Olympic Games and
Paralympic Games. Bank of Scotland plc. Registered in Scotland no. SC327000. Registered office: The Mound, Edinburgh EH1 1YZ.
“At Bank of Scotland, we are committed
to providing guidance and a range of
foreign trade mechanisms to help both
importers and exporters to take their
organisations forward internationally.”
Ian Collins, Area Director for Bank of Scotland
Bank of Scotland plc Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in
Scotland no. SC327000. Telephone: 0870 600 5000.
Lloyds Bank Arena is a registered trademark of Lloyds TSB Bank Plc. Lloyds Bank, Lloyds TSB
Corporate Markets and Lloyds TSB are trading names of Lloyds TSB Bank plc and Lloyds TSB
Scotland plc.
Authorised and regulated by the Financial Services Authority under number 169628.
