Issue 1 Summer 2014
Putting the Now in Business
Is It Oil Well That Ends Well? Aberdeen Business Legend Bows Out North Sea Oil Industry and Constitutional Change Issue 1
Summer 2014
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INTRODUCTION
Welcome to the first quarterly issue of BUSINESS NOW
Editor Eric Farquharson eric@business-now.co.uk
Assistant Editor Judy Marshall judy@business-now.co.uk
Design Mackintosh Media and House Of Morgan Graphics The aim of BUSINESS NOW is to give another voice to the commercial community, allowing readers to be kept up-to-date and learn what is happening in the business world NOW and in the months ahead.
Advertising Enquiries Telephone: (01224) 865466 Steve Mackintosh steve@business-now.co.uk Simon M Morgan simon@business-now.co.uk Published by HOMMAC Media Ltd 479 North Deeside Road, Cults, Aberdeen, AB15 9TJ (01224) 865466 www.business-now.co.uk Printed by J Thomson
In this first issue read about the impact the economy may have on the referendum debate, the importance of corporate social responsibility as employed by well-known provider of oilfield services, Petrofac and, as we begin to say farewell to the only iconic 5-star hotel in Aberdeen, read about Stewart Spence’s last 50-plus years in the hospitality industry. Additionally, find out what is happening within the finance sector, oil and gas, the bustling property market, the hospitality sector, who has advanced in their career and which business events you can attend over the coming months.
Business Now are grateful to all who have submitted articles and photographs for inclusion in this issue. Materials submitted are accepted in good faith. Adverts prepared on behalf of clients remain the copyright of HOMMAC Media Ltd, the publishers. Great care is taken to ensure accuracy of details but liability cannot be accepted for errors or omissions. All rights reserved. No part of this publication maybe reproduced, stored in a retrieval system or transmitted in any form by any means without the written permission of the publisher.
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a review of the new Lexus RX and suggest some two-wheeled, adrenalin-fuelled pursuits to help you relax. At two recent awards ceremonies, who came out on top? The annual cHeRries and ENET awards ceremonies are reviewed, so find out who claimed the trophies and who picked up only the second lifetime achievement award from ENET. There is all this and more, so read on. BUSINESS NOW is brought to you by HOMMAC Media Ltd, a new joint venture between House of Morgan & Mackintosh Media Ltd. In total, over 30 years of local publishing experience have come together to keep the business community better informed about what is happening in BUSINESS NOW.
We take the driving seat on motoring with
We hope you enjoy this first issue and welcome all feedback, as well as news stories for the second issue, due out September/October.
Simon M Morgan
Steve Mackintosh
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WHAT’S INSIDE
BUSINESS NEWS OIL & GAS PROPERTY BUSINESS TRAVEL
FINANCE HOSPITALITY RECRUITMENT APPOINTMENTS
BUSINESS AUTO SPORTS AWARD REVIEWS BUSINESS EVENTS
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Features 18
Caring, Daring and Sharing
Spurred on by prevailing false perceptions, many think oil related companies are raking it in at the cost of the communities and environments where they operate. But, that’s simply not the case.
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North Sea Oil Industry & Constitutional Change The debate on constitutional change in Scotland has come at a time when the North Sea oil industry is at a crossroads in its long-term evolution.
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Aberdeen Business Legend Bows Out Aberdeen business legend Stewart Spence talks to Business Now about his rise to success and plans for his future.
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Contents 04 Introduction 08 Business News 12 Oil and Gas News 14 Is It Oil Well That Ends Well?
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20 MINTs Condition 22 A Well-Oiled Property Market 24 Property News 26 Business Travel 28 Legal News
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32 Finance News 34 Avoid a Taxing Time! 36 Hospitality News 38 The Importance of a Dram 44 Appointments
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50
36
56
45 Recruitment 46 Business Auto 50 Blood, Sweat and Gears 52 Extreme Sports 53 Time to Unplug 54 Enterprise North East Trust
Awards
56 cHeRries Awards
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58 Business Events Issue 1
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BUSINESS NEWS
Plans for New £200 Million Venue for AECC
Plans have been released by Aberdeen City Council for the development of the new, larger Aberdeen Exhibition Centre in conjunction with a commercial development partner.
The Aberdeen City Council choice for the proposed new venue is a site close to Aberdeen International Airport. This gives new opportunities for improved accessibility both for air passengers and by road, as the Western Peripheral Route is developed and opened. It also enables construction to take place without disruption to the current high level of business forward-booked already at the existing site. Brian Horsburgh, managing director of AECC, said: “I am delighted with the council’s decision. This will enable AECC to take a quantum leap forward as a world-class centre for business events and entertainment, and to increasingly contribute to the region’s economy going forward, as a key element of Aberdeen City’s infrastructure.” He added: “Our challenge will be to find ways to continue to grow the business over the next three to four years until the new centre is completed in 2017.” Between 2001/02 and 2012/13, the centre’s turnover has grown almost three-
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fold, from £2.5 million to £7.1 million, the best year in the centre’s 28-year history. Event growth has continued at a substantial rate, particularly for energy-related events, which dominate the diary. Additionally, the AECC has increased its economic contribution to Aberdeen City and Aberdeenshire from around £12 million in 1989 to an estimated £109 million in 2011/12, and supports over 1,000 jobs in the region. Home to the Aberdeen Conference Centre and the GE Oil & Gas Arena, AECC was opened in 1986 to house the biennial oil and gas show, Offshore Europe (OE). This show, jointly owned by Reed Exhibitions and the Society of Petroleum Engineers (SPE), grew to record size at the recent September 2013 event with an attendance of 63,000 people, up 28.6% from the 49,000 attendees in 2011. However, the AECC additionally hosts around 600 events each year, with over 300,000 people attending the venue in 2012. The total number of events held
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there rose by 8% to 611 between 2011/12 and 2012/13, with size increasing for many sectors. The venue and surrounding infrastructure servicing Offshore Europe is now at capacity. A new, larger high-quality space is urgently required to deliver a first-class experience for both visitors and exhibiting companies attending OE from around the globe, as well as to provide scope for continued growth due to on-going demand for accommodation. Entertainment is a sector where Aberdeen has increasingly lost out in recent years, as the AECC’s seated capacity is quite small (even by UK standards). The scope of the arena to accommodate increasingly sophisticated and large-scale productions for live concerts is a further constraint. The new venue will open up opportunities to attract more concerts and a number of shows that require a larger capacity. There is no question that people in the north-east of Scotland have an appetite for quality live events.
BUSINESS NEWS
North-East Design Company Receives Top Award
A north-east design construction company is celebrating after receiving a prestigious industry award in recognition of its range of contemporary exterior designs. Dab Den, which was established in 2011 by architects Kerr and Katherine Byers, was awarded the Home Improvements (Exterior) 2014 accolade at The Trades Awards. The category highlights businesses that specialise and excel in exteriors, and judges were impressed by the company’s extensive portfolio of luxurious garden rooms and contemporary extensions. The company’s state-of-the-art architectural products offer homeowners additional space and can increase the overall value of the property. Dab Den’s range of bespoke garden rooms is built using sustainable products to reduce air leakage and retain heat, reducing their running costs. Dens can be used for a number of purposes including home cinemas, garden rooms, home offices and gyms. The
specialist
design
construction
company, which is based at the TreeHouse Design Centre in Midmar, is currently in the process of building a showroom offering clients the opportunity to view its range of products. Dab Den director, Katherine Byers, said: “It is a huge privilege to be acknowledged for the hard work we have dedicated to the business since it was established in 2011. It has been an incredible journey and the positivity around the company shows our current and potential clients that we have a product worth shouting about.
“The business has grown leaps and bounds” “The business has grown in leaps and bounds since last December and we have project after project booked up for the rest of the year already. We are extremely proud to have won the award, and we are excited for the company’s future more than ever.”
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BUSINESS NEWS
Two Firms to Manage £40m Expansion Peterhead Port Authority has announced the award of two key contracts for the design and management of its ambitious £40-million investment into the town’s harbour. Following an extensive and highly competitive procurement process, civil engineering consultancy, RPS, and architectural firm, Arch Henderson, have secured the work, which will develop the facility into a fully integrated, state-of-theart fishing hub by the end of 2016. Plans include the deepening of both the port’s north and south harbours and approaches from -3.5m to -6.5m, which would allow vessels unrestricted access and berthing in safe, weather-protected inner basins.
Peterhead Port Authority is also looking to construct an all new fish market on the site of the harbour’s former Greenhill market. At present the port can only handle 5,500 boxes but the new facility would hold more than 9,000, whilst enhancing opportunities for the display and management of fish, helping fishermen to continue to secure top industry prices. In order to progress the development, Peterhead Port Authority is looking to secure 25 per cent of the projected £40-million cost of the works from the European Maritime and Fisheries Fund (EMFF), which provides funding to the fishing industry and coastal communities to help them adapt to changing conditions in the sector.
If secured early next year, works could commence in June 2015 and would take around 18 months to complete, meaning the facility could be fully operational by the end of 2016. David McBain, architectural partner of Arch Henderson, commented: “The Arch Henderson team are delighted to have been appointed to the new Peterhead Port Authority fish market project at Greenhill. “We have a long working association with the port and were the architects for the current market on Merchants Quay, so being invited to design the new market is extremely pleasing.”
DF Communications Agrees 4G Deal Mobile phone giant EE has struck a deal with DF Communications which will see the Aberdeen-based company become an exclusive partner for the north-east business community. An award-winning mobile phone and communications specialist, DF Communications is the only direct EE partner in the north-east of Scotland. The company is now able to offer its customers state-of-the-art 4G technology – currently only available in the region from EE.
“We want to establish DF Communications as the go-to company for 4G”
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Fiona Fraser (pictured), managing director at DF Communications, said: “We’re thrilled to have secured this contract with EE and look forward to bringing a wide range of benefits to our customers across the northeast of Scotland.”
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Craig Forsyth (pictured), sales director, said: “We want to establish DF Communications as the go-to company for 4G technology in the region. It’s an exciting time for the business and this contract should allow us to achieve significant growth.” David Humble, senior marketing manager at EE, said: “We’re delighted to have reached this agreement with DF Communications and look forward to working together. The company’s understanding of the northeast of Scotland’s business community, particularly the thriving North Sea oil and gas industry, and its track record for customer service were major factors in our decision to partner with them.”
BUSINESS NEWS
Happy Staff Pays Off A leading Aberdeen IT and software
members of staff by promoting continual
company has reached the finals of
personal development, resulting in high
prestigious business awards in recognition
levels of job satisfaction and a loyal,
of its commitment to its employees.
motivated team.
Indigo
Technologies,
which
is
Mr Thomson said: “The growth of the
headquartered in Aberdeen, has been
company is definitely down to the expertise
shortlisted in this year’s Aberdeen &
and enthusiasm of our employees. Each
Grampian Chamber of Commerce Northern
individual is an asset to the business,
Star Business Awards, in the Commitment
and providing our staff with a positive
to People Development award category.
working environment has helped to ensure
Indigo, which delivers IT solutions to a range
productivity is high.
of small organisations as well as global oil
“All of our employees go the extra mile for
and gas companies, was launched in 2005
clients and winning the award would give
by directors Sean Thomson (pictured) and
them the recognition they deserve.”
Dave Senior, and currently has 120 clients and a 95% client retention rate.
The
Northern
Star
Business
Awards
ceremony will be held at the Aberdeen
The specialist company strives to maintain
Exhibition and Conference Centre on
a positive working environment for its 10
Thursday 25 September 2014.
“All of our employees go the extra mile for clients”
Further Acquisition for Print Services Provider A leading Scottish reprographics firm has acquired another print services firm to become Xerox’s largest partner in Europe.
brand, currently has 76 employees in Aberdeen, Glasgow, Edinburgh, Inverness, Dundee and Elgin.
Xeretec Group, which operates as North East Reprographics (NER) in Aberdeen following a merger in 2012, has acquired Bytes Document Solutions (BDS), part of the Bytes Technology Group (BTG), headquartered in Leatherhead, Surrey.
Xeretec’s £57-million annual turnover will be driven by a combined team of 220 employees, and continues to be headed by the management team behind Xeretec’s growth and success to date. It will now be bolstered by the expertise of the individuals who helped make BDS an attractive acquisition prospect.
The acquisition unites two highly successful Xerox suppliers and positions Xeretec Group as Xerox’s largest partner in Europe in terms of scale, managed print services and large production equipment sales. The acquisition will have no impact for employees across the group’s 15 offices in Scotland, the UK and Ireland. NER, which will eventually come under the Xeretec
Managing director of Xeretec Scotland and NER, John Sheran, said: “Merging NER with Xeretec has really helped to accelerate our growth in the last couple of years. Based on our experience, I am confident that the acquisition of Bytes Document Solutions will prove to be nothing but good news
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for the future. Additionally, it will further increase our presence in Scotland so we are better able to serve customers both here and nationwide.” The Xeretec Group, a leading integrator of digital print hardware, software, solutions and services in the UK and Ireland, acquired North East Reprographics and its other Scottish offices in Edinburgh, Inverness, Dundee and Elgin in 2012. The Xeretec Group will now focus on its objective of becoming a privately owned, £100-million turnover organisation by September 2019, through specialising and leading the market in the provision of print devices and managed print services, while retaining, adding and growing its customer base.
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OIL & GAS
Engineering Business Moves to New £2.3m Site Ellon-based engineering company invests in new premises following rapid growth An Ellon-based engineering company has invested £2.3 million in new premises following the rapid growth of the business in two years. SengS
Subsea
Limited,
which
Engineering was
Solutions
established
by
managing director, Murray Kerr (pictured), in July 2012, has completed work on new manufacturing and test premises at the Balmacassie Commercial Park in Ellon, Aberdeenshire. The specialist engineering firm, which offers engineering design and consultancy, test and assembly, and IRM project support, has completed over 150 projects since its establishment, including the new premises. The company currently has a workforce of 12, including an accounts manager, project engineers and CAD operators. Murray Kerr said: “Most of our work is consultancy, but once we move into our new manufacturing and testing facility, we will become a service company providing repair, refurbishment, testing and flushing services for topside subsea applications. Looking ahead to 2015, the company aims to expand into tool rentals, manufacturing and cutting services to further increase its market share and the portfolio of services it can offer to its clients.” SengS, which delivers turnkey packages to its clients, has gained recognition for its achievements in the finals of the highly respected Grampian Awards for Business Excellence 2014 in the Business Success Under Three Years category.
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OIL & GAS
Minister Opens New PSS Wick Facility John Swinney officially opens new PSS Wick facility which is set to create 40 jobs
Aberdeen-based Process Safety Solutions, the systems life-cycle management specialist supporting the oil and gas sector in the UK and overseas, officially opened its new facility at Wick Business Park in Caithness. The team welcomed John Swinney, cabinet secretary for Finance, Employment and Sustainable Growth. The new base, which currently employs five staff, will look to employ a further five people within six months and look to increase to a team of 30 - 40 staff within two years. David Green, PSS founder, said: “We have had great support and have worked closely with the team from Highlands and Islands Enterprise as we saw great potential in utilising the wide skills base in the area. More and more companies in Aberdeen are outsourcing engineering work; until now this has been largely to India and England. “We would like to reverse this trend and fully realise the potential within Scotland’s engineering community. Access to the local skill base developed over the last 50 years at Dounreay was one of the main drivers to the new office location. When you couple that with the fact that I am originally from Wick, so know the area and people very well, the reasons are quite compelling.” Mr Swinney, cabinet secretary for Finance, Employment and Sustainable Growth, said: “The new partnership with Siemens and UHI will develop this skills base even further, creating opportunities for advanced apprenticeships in engineering and technologies. This builds on the company’s successful graduate programme and I am sure it will be a great asset as PSS looks to diversify. Commitments like this clearly demonstrate that Scotland is investing in our engineering sector to not only benefit our economy and home grown talent but also to secure our place as skilled operators in global industries.”
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OIL & GAS
Is it Oil Well That Ends Well?
Petrofac’s Offshore Projects & Operations, Training Services, Production Solutions, and Engineering & Consulting Services businesses are all represented in and around Aberdeen.
With Oil & Gas UK, the official trade body, issuing a report warning exploration activity over the past three years has fallen to its lowest ever levels, are we facing a huge challenge? Should the people of Aberdeen be concerned about future lack of investment? What better way to begin our own exploration than a visit to Petrofac, a hugely respected oilfield services company providing assistance to customers across the entire spectrum of the oil and gas lifecycle. For the last 33 years they have been building their capability and increasing the scale and scope of their services on either a stand-alone or integrated basis.
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Petrofac’s acquisition of PGS Production in 2002 brought 10 years of experience in the UKCS. Since then the Aberdeen-based business has grown both organically and through further acquisitions, including that of RGIT Montrose in 2004, which established the company’s training capability. Petrofac’s Offshore Projects & Operations, Training Services, Production Solutions, and Engineering & Consulting Services businesses are all represented in and around Aberdeen. At the end of last year Petrofac’s Offshore Projects & Operations business was
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reorganised on a regional basis with Walter Thain (pictured right) appointed to lead the European business. So what does Walter think the future holds? “In my opinion this sector is in a healthy place,” states Walter, “although like any industry we have our challenges. The prospects for Petrofac and other service providers are great, as many old assets require increased attention and maintenance, while new fields are coming along. Also old fields are coming to an end offering the prospect of decommissioning work. “New operators are continuing to come
OIL & GAS into the market, bringing new investment in fields and assets that might have been deemed uneconomic by the oil majors. A good example of a relatively recent entrant is EnQuest, which has invested heavily, and has just awarded us a ten-year operations and maintenance contract worth around $630m to support its North Sea assets – Thistle, Heather and Northern Producer, plus the EnQuest Producer FPSO, which is due to be deployed on the Alma/Galia project later this year.”
The Forces Transition Programme, as it is known, is a partnership between Offshore Projects and Operations, the Engineering Construction Industry Training Board and Petrofac Training Services, which has
The 16-acre site includes nine state-ofthe-art training modules, three helidecks and vast practical fire grounds to ensure trainees are prepared for a wide range of emergency response scenarios. “We wouldn’t be making that kind of investment if we weren’t taking a long-term view of oil and gas in the North Sea.”
And although the amount of exploration drilling might be down, there are some significant new discoveries in development – particularly west of Shetland, and also in the southern North Sea. “We’ve just concluded an important new integrated services contract to support GDF SUEZ E&P UK throughout its operations in the UKCS, including on a field called Cygnus, which is the largest gas field discovery in the southern North Sea for 25 years. GDF Suez is one of the world’s leading energy providers and has committed to the North Sea by investing £6 million in establishing its UK exploration and production operational centre in Aberdeen. “Probably one of our biggest challenges is to get resources,” continues Walter. “The industry demands high calibre people who are paid well and, with other related costs, the whole sector is having to look closely at how we stay competitive and sustainable.” Petrofac, along with other oil services companies in Aberdeen, has responded by applying a reduction in the rates paid to its onshore, limited-company contractors.
training centre. They’ve been offering fire training there since the ‘70s, but this means trainees there will benefit from the most realistic and credible fire training available at what is once again one of the world’s most advanced oil and gas training centres.”
As a local boy himself, Walter is here for the long haul. But he clearly believes the rest of us should be too.
itself just benefitted from some major new investment. “Our Training Services business has also just completed a £1.5 million upgrade of its Montrose fire and emergency response
“I often think of the industry as being a global business focused on a local community. I’ve worked abroad, but I was born and bred here in Aberdeen and feel it’s important to establish a good future for our kids and for future generations. So we’re heavily involved in community partnerships aimed at the long-term development of people in the north-east of Scotland, including various education programmes focused on science and technology. (See Business & Community Pages 18/19). Would I suggest my own kids went into oil and gas? Definitely. But they all want to be footballers and X Factor finalists, unfortunately.”
As a local boy himself, Walter is here for the long haul. But he clearly believes the rest of us should be too.
Another response has been to target transferable skills from outside the industry. Petrofac has piloted a programme to bring in experienced technicians who are leaving the military and whose aptitudes can be easily adapted to succeed in an offshore context. Walter continues: “From day one these new recruits became permanent members of the Petrofac team. The first batch of eight instrument and control technicians is now in different locations in the North Sea. They have army and RAF backgrounds so, as you can imagine, are very competent, disciplined and have been great through training. We’re now working on our second batch of electrical engineers. Some of them had joined the army at 16 so, even after a full military career, are still young, but fully trained and disciplined. It’s been another really successful local venture.”
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OIL & GAS
Technocean Subsea Completes Decommissioning “After a very successful first workscope, we were delighted to be supporting HESS further with an additional decommissioning scope of work.”
Technocean Subsea has successfully completed a milestone decommissioning scope of work on the Angus Pipeline PL1857 Flushing project for global energy company, HESS Limited. The company has also further executed a second successful campaign for the client, which was completed in April. Technocean Subsea deployed the Reef Despina Construction Support Vessel to complete the first work scope, which took place in the Fife, Fergus, Flora and Angus fields, commonly known as FFFA, located in the central North Sea in water depths of 70 metres. As part of the phased decommissioning programme, Technocean Subsea performed the removal of the PL1857
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pipeline contents with Remotely Operated Vehicle (ROV) assistance and delivered a filtration package, suction pump and associated down lines to evacuate pipeline contents to the vessel. Technocean Subsea delivered a multi-skilled team to ensure project completion, flushing 290m3 of diesel from the Angus pipeline and recovering this content to deck with a flushing result of 180m3 pure diesel. Following the successful engineering and management of Technocean Subsea’s first decommissioning project of this kind, the specialist subsea contractor was awarded a further decommissioning work scope with HESS Limited. Again, supporting the Angus Pipeline PL1857 Flushing project, Technocean Subsea
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undertook the recovery of an 80-tonne wellhead protection structure, which was successfully completed this June. Both the campaigns were executed safely and efficiently. Arne Riple, managing director of Technocean Subsea, said: “After what had been a very successful first work scope, we were delighted to then be supporting HESS further with an additional decommissioning scope of work. This demonstrates our ability to provide efficient engineering solutions supported by subsea equipment that is ideally suited to carry out such work scopes. I am very pleased that both campaigns were executed well and to our clients’ satisfaction.”
OIL & GAS
GCSS Ltd Completes Acquisition
GCSS Limited, owner of Plant Shifters (Scotland) Ltd - the specialist equipment and machinery mover, announced the completion of the acquisition of Peterheadbased Surelift UK Limited and Surelift NDT Limited. The acquisition is forecast to add an extra £2 million per annum to group revenues and creates a combined group with forecast annual revenue of £3.25 million. All staff have been retained following the acquisitions. GCSS now has the capabilities, through the Surelift companies, to manufacture wire rope slings and sling assemblies, and the supply of safety-at-height and lifting, as well as welding inspection, lifting equipment inspection and certification to the energy and military sectors. Graeme Morrison, director of GCSS Limited, said: “I would like to welcome our new colleagues from Surelift into the group as they become an instrumental part of our continued success. The acquisition of Surelift UK Limited and Surelift NDT Limited compliments the services that GCSS currently provides through Plant Shifters. Surelift has a strong client base and we are delighted to have retained former owner, Brian Emslie. Brian’s experience and understanding of the business will ensure continuity of service as well as assisting us in the growth and future direction of the company. “We have bought into a highly experienced, motivated team at Surelift and look forward to growing the business.” Acquisition funding was provided by The Royal Bank of Scotland. Masson & Glennie and Goldwells Ltd acted on behalf of the vendors, with Brodies LLP and Anderson Anderson & Brown acting on behalf of the buyers.
Ashtead Technology Secures Distributor Agreement “We are extremely excited about this new relationship with Ashtead Technology” Global subsea equipment solutions specialist, Ashtead Technology, has secured an exclusive sales distribution agreement with Sound Metrics Corporation, a leading sonar imaging manufacturer, for the sale of DIDSON and ARIS imaging sonar systems to the oil and gas market in the UK and Singapore regions. The DIDSON and ARIS products are unique ultra-high-definition imaging sonar systems for critical detailed inspection and identification projects. The leading-edge systems can be deployed from vessels, ROVs and AUVs and used by divers in various industries including oil and gas, military, search and rescue, hydro-energy, exploration, dam and bridge construction and maintenance. Commercial director of Ashtead Technology, Tim Sheehan (pictured), said: “We continually seek to provide our global customers with the very best technology
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and our partnership with Sound Metrics further strengthens our product sales portfolio, offering customers the very latest in sonar imaging, backed by 24/7 support through our technicians and global equipment rental pool.” “These Sound Metrics systems provide higher resolution images than anything else currently on the market and can be used on specialist offshore projects. We’ve recognised a significant increase in requests for this level of sonar system in recent months, as more of our customers become aware of the advantages of using this advanced technology in the subsea environment.” Joe Burch, president of Sound Metrics stated: “We are extremely excited about this new relationship with Ashtead Technology and look forward to a highly successful and mutually beneficial future for both companies.”
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BUSINESS & COMMUNITY
Caring, Daring and Sharing Spurred on by prevailing false perceptions, many think oil-related companies are raking it in at the cost of the communities and environments where they operate. Spurred on by prevailing false perceptions, many think oil-related companies are raking it in at the cost of the communities and environments where they operate. But that’s simply not the case. In fact many companies invest large sums into their local communities and no more so than here in Aberdeen. One such company is Petrofac, a leading provider of oilfield services, who through partnerships, sponsorship and sheer hard graft by their staff put an immense amount back into local good causes. Take the Petrofac ‘Charity of the Year’, for example, which for 2014-15 is the Friends
of the Special Nursery, the charity that supports the neo-natal unit at Aberdeen Royal Infirmary. The charity campaign, which actually runs for two years, is chosen by employee vote and staff raise all the money themselves through various initiatives meaning that success, crucially, depends on the commitment and drive of people rather than the corporate machine simply getting its chequebook out. The charity for the previous two years was the Cystic Fibrosis Trust, for which staff raised £47,000, but they are confident they can do more this time round. Their first target is to raise £33,000 to pay for
a Giraffe incubator, which combines the features of a traditional incubator and a radiant warmer to promote the growth and stability of fragile newborns, and which the unit is desperately short of. Petrofac have kicked off the campaign by donating funds raised from ticket sales at their annual dinner dance held in February at the AECC. The company also provides direct support, including sponsoring Aberdeen wheelchair athlete and motivational speaker, Kenny Herriot. Kenny is the former holder of the British record for the wheelchair marathon (now held by multiple Olympic medal winner David Weir) and still holds the Scottish record. Petrofac has supported
“I would never be in the position I am now without the help of Petrofac” Kenny for thirteen years, helping him to train and compete around the globe. When he desperately needed a new chair to allow him to move forward, the company flew him to Florida for five days and he returned with his own custom-built racing wheelchair. Kenny explained: “I would never be in the position I am now without the help of Petrofac. It is a very expensive sport – a new tyre can cost £75 – and it’s also important to train with the best athletes, something I couldn’t have done without their help. They also guided me into public speaking, which allows me to give talks at schools and charity events. One of the things I have been doing recently is taking part in ‘Champions in Schools’, a rolemodel programme that places Scotland’s top international athletes in the classroom. I’m so keen to try to inspire others. That’s why I try to raise as much as I can for charities. I’ve taken my wheelchair from San Francisco to New York and John
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BUSINESS & COMMUNITY These days, with an increasing focus on accountability and transparency, to say nothing of responsibility to shareholders – Petrofac is a constituent of the FTSE 100 and the UK’s largest oil services company by market capitalisation – simply being a good cause is no longer enough. A consistent social performance framework with strict guidelines means that despite employing more than 18,000 people across 30 countries, you can readily identify the characteristics of a Petrofac CSR project wherever you are in the world.
O’Groats to Land’s End to raise money. I try to motivate people wherever I go which is why I’m about to embark on a trip up Bennachie with the Petrofac management team. I have a new chair which they are going to lift, haul and pull to the top as part of a team-building event, so that should be great fun. “Petrofac have supported me for all these years, allowing me to achieve goals I never otherwise would have achieved, so I can’t thank them enough for their generosity and guidance.” For the past fifteen years Petrofac has enjoyed a thriving education/industry partnership with Kincorth Academy. The relationship has matured over the years with one of the highlights being an annual bridge-building competition. Members of the Petrofac team give a talk to mainly third year pupils before the students engage in this popular engineering and construction challenge. The students use a computer-based design package, their engineering skills and materials supplied by Petrofac to construct balsa wood bridges over the course of the school term. Petrofac meanwhile works in partnership with the school’s design and technology department to offer experience and advice to the students during the planning and construction of their models.
where students in schools examine local charities and advocate on behalf of a chosen one. They demonstrate their case to a team of judges and the winning team then presents the prize money – donated by the Wood Family Foundation – to their chosen charity.” He continued: “Over the years I’ve watched the students’ performance grow and today their passion, their knowledge of their chosen charity and their presentation skills are absolutely outstanding.” Last year Petrofac’s HR and Resourcing teams also helped by developing a work pack for social education teachers, which included help on creating CVs, completing job applications and preparing for interviews, and then provided handson support which culminated in several Kincorth students taking up work placements in the Petrofac office.
Key to Petrofac’s strategic corporate-giving agenda is the promotion of STEM (Science, Technology, Engineering and Mathematics) education, and, in Aberdeen, the company is this year again sponsoring TechFest’s Secondary Festival Outreach Programme. Part of the long established TechFest in September, the Secondary Outreach programme this year will see Petrofac staff, including some of their recent graduates, attending Aberdeenshire schools to talk about engineering and hopefully to inspire pupils from that, or indeed any other discipline, to carve out a career in the oil industry. It’s not easy to function effectively as both a multinational oil services giant and a local employer with its roots in the community at the same time. But with more than 4,000 employees in and around Aberdeen, it is a balance that Petrofac needs to strike – and a challenge that it is clearly rising to.
Drew Russell, vice president Europe, Petrofac Offshore Projects & Operations, said: “This competition has been a fantastic success with an incredible amount of talent displayed by students. Part of our partnership with Kincorth Academy is for us to provide opportunities to young people to see how skills and interests they have at school can be transferred to a working environment and potential career, which the bridge-building competition achieves.” Drew added: “We are also heavily involved with the Youth and Philanthropy Initiative,
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WORLD ECONOMY
MINTs Condition by Paul Strohm
Brazil, Russia, India and China have little in common at first glance. While Brazil and Russia are, respectively, World Cup hosts for this year and 2018, the four countries’ culture, climate, geography and you-name-it are different. What they did have in common as part of the so-called ‘BRICs’ group was their status as emerging economies. But as this status shifts from ‘emerging’ to ‘emerged’, the spotlight is shifting to another group of disparate countries. While the BRICs could hardly be said to have had their day, already Mexico, Indonesia, Nigeria and Turkey are being billed as the next emerging economies to watch. These are the so-called ‘MINTs’. At least, that is, according to followers of economist Jim O’Neill, retired chairman of Goldman Sachs Asset Management. For it was he who coined the term ‘BRIC’, the acronym which conveniently embraced emerging economies Brazil, Russia, India and China, and he is now widely attributed with devising the MINT grouping to which he referred in an article for Bloomberg,
“They are all going to see a rise in the number of people eligible to work relative to those not working”
Who you calling a BRIC?, published in November 2013. More than just having large populations, what the MINT countries have in common is “good inner demographics for the next 20 years,” O’Neill subsequently explained to the BBC. “They are all going to see a rise in the number of people eligible to work relative to those not working.” In 2012, Mexico was in 14th place in a worldwide GDP comparison, according to figures compiled by the World Bank and
while Nigeria trailed at 39. There’s a while
has other positive features: advantageous
to wait, but the order will be different in
geographical location is one that most
2050 with WB/GS forecasts expecting
share. Mexico is sandwiched between the
Mexico and Indonesia to rank 8th and 9th
huge US and South American markets.
– ahead of the UK, France and Germany,
And, while Indonesia has access to wealthy
incidentally - with Nigeria and Turkey in 13th and 14th places, ahead of Egypt, Canada and Italy.
Asia. Although Nigeria is not similar in this respect, it could be if African countries
In
demographic
stopped fighting and started trading with
were in 16th and 17th places respectively,
characteristics that O’Neill flagged up, each
each other, says O’Neill. There are other
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to
China, Turkey sits between Europe and
Goldman Sachs. Indonesia and Turkey
20
addition
neighbours in South East Asia including
the
WORLD ECONOMY natural advantages too. Not least is the
bigger picture, however, is that currency
fact that all four produce crude oil, although
weakness, coupled with deeper-seated
Turkey’s 56,650 barrels per day are to
structural problems, means that inflation in
be compared with Indonesia’s 974,000,
these emerging markets is likely to remain
Nigeria’s 2.5m and Mexico’s 2.9m.
high,” says the firm.
Of course, the MINTs have their challenges: O’Neill
says
that
corruption
is
an
Real estate, being the major factor of production that it is, is never far from the collective consciousness as economies emerge, as was clearly the case with the BRICs. According to CBRE Global Research and Consulting’s semi-annual Global Prime Office Occupancy Costs survey, Mexico City found itself included among the top five fastest growing office cost centres in the Americas, with an office occupancy cost hike of 14.7% year-on-year in 2013. CBRE attributes this to the city’s changing skyline, and the completion of new highquality buildings for which asking rents are much higher and are being met with strong demand from occupiers. Meanwhile, Indonesian capital Jakarta recorded the largest annual increase in property costs in the world, having experienced a 76.9% hike, way ahead of second-placed Boston (15.4%) and thirdplaced Mexico City (14.7%). The performance of the Jakarta office market was such that it skewed the figures
impediment in all four countries, while both Mexico and Nigeria are dogged by deficient energy policies and Indonesia has poor infrastructure. Turkey meanwhile strives to find a balance between eastern and western ways of doing things. Two of the MINTs, Turkey and Indonesia, also rank among research company Capital Economics’ ‘fragile five’ emerging markets, along with Brazil, India and South Africa.
for the whole Asia-Pacific region according to Knight Frank. The firm’s Asia-Pacific Prime Office Index showed that while activity elsewhere in the region continued to slow, Jakarta’s figures pushed the regional growth figure up 0.5% in the third quarter of 2013. But while this amounts to $840 per square metre per year by CBRE reckoning, it is still less than Istanbul’s $934 per square metre per year.
Researchers at Capital Economics say that
Meanwhile, in Nigeria’s commercial capital
sharp falls in the currencies of the ‘fragile
Lagos, headline office rents are among
five’ economies over the past half year may
the highest in the world with $1,000 per
cause import price inflation to rise over
square metre a year achievable on smaller
the next few months, particularly in Turkey
units, according to Knight Frank – about
and, to a lesser extent, in Indonesia. “The
the same as Dubai or Boston. Issue 1
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PROPERTY
Artist’s Impression of a Dandara Home
Well-Oiled Property Market
A
The recent upsurge in property activity in and around Aberdeen reflects the stable growth the city has enjoyed over the past eight years Traditional, granite, tranquil and rural. Words that may have been used in the past to describe Aberdeen’s property market. In this respect, and in many others, Aberdeen is consciously undergoing a dramatic metamorphosis from small conventional city into true Oil Capital. The recent upsurge in property activity in and around Aberdeen reflects the stable growth the city has enjoyed over the past eight years and the UK-wide shortage of
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decent housing. Since 2006 the average price of a property in Aberdeen has grown by 59%, whilst the UK average has only grown by 3%. Aberdeen’s economy took a softer hit from the global recession in 2008, with prices overall being protected by the booming oil industry. Unlike in most areas of the UK, prices speedily bounced back to pre-recession levels in a matter of months, whilst the rest of the UK is only now experiencing something that looks
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like recuperation. In 2007, the average price of a property in Aberdeen surpassed the UK average and has been increasing steadily every year, with growth in 2013 at an impressive 8%. The rental market is also especially heated up at the moment, given temporary migration of professionals, as well as the difficulties many face in raising enough money for the high deposits needed to buy a home. There have been claims that the current
PROPERTY climate eerily resembles housing bubbles that exploded in 2008. Are home prices in Aberdeen overvalued? Mr Eduardo Prato, director of the real estate agency Martin & Co, says: “Aberdeen’s success so far is due to high income levels. This is why the energy sector is so vital – it’s the best paying industry in the city. With oil and gas industry wages, thousands of quality homes are easily affordable.” It is true that expansion of the energy sector has been key to this growth. The price of Brent crude oil has risen by 75% since 2006, amid concerns over the gradual recovery of the European and US economies and turmoil in the Middle East. As activity for the extraction of this increasingly valuable resource ramps up, high-income oil and gas workers fill the city’s hotels and vacant housing, creating huge demand shocks in the area’s small housing market. Homebuilders are responding. Locals and visitors alike are impressed by the quantity of new build developments in and around the city, sprouting up in areas such as Westhill, King Street, Banchory-Devenick and Bridge of Don, amongst many others.
Companies such as Cala, Barratt and Dandara are building luxury, upper-end apartments and houses, ranging from £250,000 for a two-bedroom apartment to £2 million for a riverside four-bedroom home. The government also offers special financial support for first-time buyers who are acquiring new builds, given that, although wages are high and keep Aberdeen properties affordable, it may still be difficult for young people to save enough money for a deposit, which can typically be around £15,000. This hurdle also continues to drive the rental and buyto-let market.
2011/ 2012 was almost three times higher than the Scottish rate of 6.3. Net migration has been elevated and positive every year since 2004, showing that, although part of the influx consists of temporary workers, many are settling down in this growing multicultural city. Between 2011 and 2012, a total of 13,675 in-migrants moved to Aberdeen, while 11,765 out-migrants left the city. This shows that there is a huge level of migration overall, something you would expect of a city with large companies and two universities. This especially drives the rental market, as workers who know they will be based in the area for a short or
“Companies such as Cala, Barratt and Dundara are building luxury, upper-end apartments and houses” Aberdeen City’s 2013 Migration Report shows that there is a high level of population movement in and out of the
medium term are more likely to rent than to buy. “Most of our properties for lease – and we specialize in high-end homes – are snapped up in a matter of three or four days,” says Prato. In conclusion, we’re getting used to a new set of words to describe Aberdeen: Fastpaced, prosperous, luxury and investorfriendly.
city. Aberdeen’s rate of 19.6 in-migrants
Sources: Aberdeen City Council, ASPC,
from overseas per 1,000 of population in
Halifax Housing Price Index, Oil-Price.net
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PROPERTY
Investing in Distressed Property Ten tips for investing in distressed property assets
By Jamie McIntosh, corporate recovery partner at HBJ Gateley As the UK economic recovery takes hold, distressed property opportunities are booming. Boosted by rising demand for commercial financing, lenders are turning attention to new prospects and therefore need to exit distressed property loans. For investors in Scotland, this creates an opportunity to achieve attractive profits by selecting and investing in the right assets or portfolios. But there is also a danger of ending up severely out of pocket if the chosen assets do not perform as well as expected or if the strategy is not right for the asset. Here’s how to increase your chances of profits over pitfalls. 1. Determine why the property is distressed While a property might be covering its loan interest payments through rental income, the asset cannot perform if its loan-tovalue (LTV) ratio is too high to make a profit in any eventual disposal or redevelopment. Furthermore, highly leveraged assets or portfolios increase the likelihood of default if the economic recovery is stalled or interrupted. An acquisition may be the perfect opportunity to re-gear the asset. 2. Understand how you are going to make the asset perform Whether investing in a single asset or large portfolio, it is important to understand how the property will be improved or developed to deliver a profit. Will the assets be packaged and sold, re-developed, rezoned, rented out or knocked down to sell the land? Once you understand this, you will have a much better idea of what is involved and the time it will take to yield a return. 3. Investigate the sector of the distressed property Whether it is investment, development or buy-to-let - it’s not easy to turn a profit if
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you don’t have background knowledge. You need to research and understand the key trends, mechanics and forecasts for the type of distressed asset you are interested in. 4. Familiarise yourself with the local area Take your time to ascertain any influence which the location or area of the assets might have on performance. Even if you are certain that luxury buy-to-let space will increase in value over the next twelve months, make doubly sure that it will do so in the particular area into which you are considering putting your money. 5. Be clear on the level of risk with which you are comfortable Distressed assets carry risk and, as such, you will be expected to take a view with limited diligence having been carried out. While you are able to do your own diligence, there will not always be as thorough information available as would be for nondistressed assets. The price should be reflective of this and give you enough of a chance of recovery to make it worthwhile. However, it is useful to be clear on how much of an opportunity versus risk you are comfortable pursuing. It is also important to stick with this parameter when deciding whether or not to partake in a deal. 6. Consider your options carefully Sometimes there will be the opportunity to buy the asset, the corporate entity or the debt. While assets can be developed for sale or rental income, corporate entities can allow tax savings but only really work where assets are held in special purpose vehicles. Purchasing debt can also be highly profitable, provided it is selected and leveraged correctly. 7. Choose the right advisors The quality of the expertise you rely on
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to make decisions, that in some cases can involve millions of pounds, is crucial. Decide on the most important criteria for your advice team – such as specialist knowledge or industry contacts – and build a team consisting of estate agents, surveyors, accountants and lawyers whom you can rely on for excellent service, information and advice. 8. Be upfront with your funder It is not uncommon for funders to halt a deal if they are shocked to discover the money will be used for distressed assets acquisition. Limited information and diligence can give funders cold feet. Avoid this by being upfront and direct with your funder about the deal, warts and all. As this is likely to be a substantial financial partnership, it is best to make sure that all parties are aware of and committed to the nature of it. 9. Keep a reserve fund Distressed properties might offer some initial unexpected costs that will need to be addressed as part of returning them to performance. Make sure you have allocated a contingency fund which can address any unforeseen costs without adding to your financial burden or delaying the completion of the project. 10. Avoid an unplanned spending spree Although it might be tempting to rush out and buy up multiple distressed property assets right away, it’s important not to let the apparent economic recovery go to your head. The best way to increase your chances of success is to take things slowly, acquire only what will enhance your portfolio and make sure you do not overexert yourself with too large a volume.
Architectural Firm Builds on Successful 50 Years Alan Cromar and Steven Lawrence have dedicated the last 25 years of working life to TCD Architects, and their vision of running their own architectural practice took its first step in 2004 when they became partners of the firm. In 2008 they took over the helm of partnership and have continued to strengthen the success of the business by moving to a limited status in 2012. The two directors of this Aberdeen firm, originally founded in 1963 as Thomson Craig and Donald, believe the company is continuing to solidify their reputation of providing a highly efficient and cost-effective service. The team develop your project every step of the way, ensuring you get an imaginative, affordable, unique and, if required, ‘one-stop’ design solution. With clients including Technip (UK) Ltd.,
Power Jacks, Rubberatkins, Malcolm Allan Housebuilders Ltd, Stewart Offshore, Stork Technical Services and Dolphin Drilling Ltd on their portfolio, it’s easy to see why the company have reached this 50year milestone and are at the top of their profession. The company currently has a diverse range of projects in a variety of private, commercial and charitable sectors, from small-scale residential and commercial to large-scale office and industrial projects, including, for the first time, technical involvement in an architectural team to provide a new mosque for Aberdeen’s Muslim community. They have produced a number of buildings that have gained widespread acclaim and critical praise, with some of their completed projects achieving Aberdeen Civic Society
and Local Authority Design Awards over the last several years. Director Steven Lawrence strongly believes that the firm is continuing to cement its standing as a provider of a highly efficient service in all commissions that are entrusted to them. “We pride ourselves in our ability to secure repeat business from our increasing base of satisfied customers and, regardless of scale or complexity, every project we undertake is dealt with with confidence and responsibility to its success.” Alan Cromar commented: “We are dedicated to our client’s projects and, whether you are a domestic client, a corporate client or a developer, TCD Architects will provide you with excellent personal service throughout the life of the project.”
imaginative, affordable and unique ‘one stop’ design solution 4A ALFORD PLACE ABERDEEN AB10 1YD TEL: 01224 644461 EMAIL: admin@tcd-architects.co.uk
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BUSINESS TRAVEL
New Travel Class on Long-Haul Flights
Lufthansa has introduced a completely new travel class for the first time in 35 years: The new ‘Premium Economy Class’ opened for booking in May and will be available from November 2014, initially on the Boeing 747-8. With regular daily flights from Aberdeen to Frankfurt, passengers can access the quickest onward connections to Lufthansa’s European and worldwide network, where this new class can be enjoyed. “Our ‘Premium Economy Class’ will create a completely new travel experience that combines affordability with greater comfort. The seats offer up to 50 per cent more room than economy class and will position us in a premium segment within the international competitive environment,” said Jens Bischof, CCO and member of the Lufthansa German Airlines Board in charge of sales, product
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and marketing, during a presentation at International Tourismusbörse Berlin (ITB), the travel trade show, in Berlin. The new seats were especially designed and produced for Lufthansa. They are up to three centimetres wider than the normal economy class seats.
“Our ‘Premium Economy Class’ will create a completely new travel experience” A centre console between the seats with an own wide armrest for each passenger provides greater privacy as well as approximately 10 centimetres more room at the side. The back rest can be reclined further and the seat pitch is a significantly more spacious 97 centimetres. As a result, passengers have around one-and-a-half
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times as much room as economy class. The head rests can be set to the exact height desired and folded at the sides for added comfort and support. Lufthansa ‘Premium Economy Class’ is located within the cabin as a clearly identifiable separate compartment between business and economy class. It has a high-quality design and contains between 21 and 52 seats, depending on the aircraft type. Installation of the new travel class, which is to be carried out on a gradual basis, sub-fleet by sub-fleet, will start this autumn and finish in summer 2015. The new travel class provides greater comfort and enhanced service. Ticket prices in the new ‘Premium Economy Class’ will be closer to economy class than business class; a return flight across the North Atlantic or to Asia will cost an additional €600 on average.
BUSINESS TRAVEL
Popular JET 727 Bus Increases Frequency to Airport The launch of additional vehicles and increased frequency provides passengers with a fast, frequent and reliable journey Stagecoach Bluebird has announced an increase in the frequency of their airport service, the popular JET 727 bus, to every 10 minutes. The service change, from Union Square Aberdeen to Aberdeen International Airport, sees an additional four buses being added to the existing fleet of four single deck buses previously running on the route.
The launch of additional vehicles and increased frequency provides passengers who need to connect with planes, trains, coaches, ferries and helicopters with a fast, frequent and reliable journey to and from Union Square and Aberdeen International Airport. Those on their daily commute will also experience the benefits with a wider choice
of times to catch their JET bus to and from work. The four extra buses allows this service to increase the frequency, reliability and additional stopping points between Union Square and the Haudagain roundabout, before continuing on to Aberdeen International Airport, without impacting on the existing journey times.
Take Off To Oslo Direct flights between Aberdeen and the Norwegian capital, Oslo, operated by the UK’s most punctual airline, bmi regional, have taken off. The route is the latest in a series of positive moves by the Aberdeen-based airline in the Scottish and Norwegian markets. Demand from the oil and gas industry and dialogue with key companies were fundamental in the decision to launch the service. Cathal O’Connell, chief executive of bmi regional said: “Aberdeen and Oslo are strategic hubs for the oil and gas industry and our new service offers significant time and efficiency savings for businesses in the north-east of Scotland and Norway. “The support and engagement we have received from the oil and gas industry on both sides of the North Sea remains fundamental to our decision to develop
a long-term, strategic presence in these markets.”
Aberdeen City Council’s Barney Crockett said: “Aberdeen is continuing to attract strong international investment and interest and is becoming an increasingly important centre for Norwegian businesses. bmi has clearly recognised that and the need for air links between Aberdeen and Norwegian cities.” The Oslo service operates as a single daily flight Sunday to Friday with a 37seat Embraer 135 jet aircraft. Flights depart Aberdeen at 16.05, arriving in Oslo at 18.45 and depart Oslo at 19.15, arriving in Aberdeen at 20.00 (all times local). Booking is available via the airline’s www.bmiregional.com website and travel agents. Fares start from £85 one way.
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“Aberdeen and Oslo are strategic hubs for the oil and gas industry”
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LEGAL
Arbitration to Ease Pressure on Courts The recent round of court closures, including Stonehaven Sheriff Court, may heap further pressure upon family law sheriffs in Aberdeen, according to a group of north-east experts. “One potential solution to this problem could be an increase in the use of arbitration. Although commonly used in the commercial world – for instance, to settle disputes concerning building work - it is a relatively new way of resolving issues involving family law. “The arbitrator is chosen from the list of members of FLAGS by the parties themselves. They appoint a decision-maker who is a recognised expert in family law with extensive experience of how the court system works. “The arbitration takes place at a time and place to suit the clients and their legal representatives. This avoids the necessity of being bound by the busy timetable of the family law sheriffs in the sheriff court.
Stonehaven Sherriff Court formally closed its doors at the end of May. Staff from Stonehaven will be required to transfer to either Aberdeen or Forfar Sheriff Courts to help cope with the increased number of cases being heard there. Members of the Family Law Arbitration Group Scotland (FLAGS) have called for greater consideration to be given to potential alternatives to court-based litigation, particularly the use of arbitration in the field of family law. The group of Aberdeen-based solicitors - (pictured, left to right) Judy Meil, Shaun George, Anne McTaggart and Iain Patience - and Isabella Ennis, an advocate who lives
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in Aberdeen, are among only 29 advocates and solicitors in Scotland trained as family law arbitrators. They believe that an increased focus on arbitration in cases of family law could bring an extensive range of benefits to the Scottish Court Service (SCS), and particularly Aberdeen Sherriff Court where the judicial caseload is already very heavy. Iain Patience, senior partner at Patience and Buchan, said: “In light of the closure at Stonehaven, we are concerned about the potential consequences which could result from placing additional pressure on courts not only here but in other parts of the country as well.
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“Specific aspects of the dispute may also be arbitrated separately, such as a difference in opinion regarding the value of an asset or in a case where a couple disagree over the date on which the marriage ended. “All of these factors can lead to faster dispute resolution. The process may also be more cost-effective and, most importantly, the whole process will be kept completely confidential. “There is already growing support for greater use of arbitration across the UK among judges, advocates and solicitors, while this initiative is also supported by the Law Society of Scotland. “All in all, greater use of arbitration seems to have many advantages over the current system – not least in terms of freeing up valuable time for the courts to resolve other cases.”
LEGAL
Law Firm Celebrating Success Leading Scottish lawfirm, Stronachs LLP, announces key promotions and strong revenue growth A leading Scottish law firm has announced a number of key team promotions that further secures its position as one of Scotland’s established legal firms. Stronachs LLP, which is headquartered in Aberdeen with an additional base in Inverness, has celebrated team successes with eight employees moving up a level in the business. Gemma Hills from the corporate division and Jaclyn Petrie, who works in private client wealth management, both become senior associates. Stewart Cunningham and Ian Easton from the corporate energy team have moved up to associate level, along with Erin Grant who focuses on employment law, while Deborah Edon, who specialises in dispute resolution, Julie Hamill from the residential property division and Jamie Hunter from corporate each become senior solicitors. In
addition
to
team
achievements,
Stronachs is also celebrating strong yearend figures highlighting a revenue growth of 9.9% to over £7.6 million for the financial year 2013 – 2014. Managing partner of Stronachs, David
beating figures, and the outlook for the
“Our internal promotions recognise and
upcoming year showing opportunities for
reflect the quality of our staff and our strong
growth in all sectors, these results back
team will continue to help us deliver an
can only happen when there is a dedicated
up the decision made by the partners to
outstanding service to our range of clients
team working with a common aim, to
maintain high levels of investment in the
across a broad spectrum of industries.”
provide the highest quality of legal services
firm, both in terms of infrastructure and
to our ever-increasing client base.
The firm is now planning to make a number
technology, but most importantly in its
of senior level appointments within the
“With every department reporting budget-
people.
next couple of months.
Rennie (pictured), said: “We have enjoyed a year of growth across the board, both in fee-income revenues and profitability. This
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FEATURE
The North Sea Oil Industry and the Debate on
Constitutional Change
Professor Alex Kemp, University of Aberdeen
The debate on constitutional change in Scotland has come at a time when the North Sea oil industry is at a crossroads in its long-term evolution. Current activity exhibits paradoxes. Field investment is at historically high levels with the remarkable total of ÂŁ14.4 billion being spent in 2013. Very high levels will also be experienced in 2014. But there is a danger that field investment will fall sharply thereafter. The supply chain has been overstretched and overheated in recent years, cost inflation has been rampant, and it is arguable that a moderate reduction from recent levels would help to produce a more suitable long-term operating environment. Oil and gas production have been declining at a brisk rate in recent years. This has been a function of (1) the modest numbers of new fields coming on stream, (2) the average size of these fields, and (3) the decline in production efficiency in existing producing fields from 81% in 2004 to 61% in 2012. The latter refers to the ratio of actual production to the maximum efficient rate. A third key feature of the present situation is the very low level of exploration effort. This is certainly below that required to maximise the long-term economic recovery from the whole province. It should be noted, however, that interest in obtaining licences remains high, and the exploration success rates also remain relatively high. In the recent 27th Round over 400 blocks were licensed though the exploration commitments did not include many new wells. How does all this relate to the constitutional debate? The answer is that the fortunes of the North Sea industry are very important to the Scottish economy and this importance becomes more marked if Scotland becomes independent. If this happened the UK Continental Shelf would
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be divided up into Scottish and rest-of-theUK sectors. This would probably be settled by negotiation and, if the precedents with the agreements made between the UK Government and those of the other countries with continental shelves in the North Sea were followed, the median line principle would most likely be employed to demarcate the boundaries between Scotland and the rest of the UK.
Use of the median line would result in Scotland receiving most of the oil production and reserves and a substantial part of the gas production and reserves. Specifically, in recent years the Scottish share of oil production has been in the 93%-97% range and, for gas, in the 46%59% range. The Scottish share of gross production revenues has been in the 85%-90% range and for tax revenues the Scottish share has been in the 85%-90% range. Similarly, the Scottish share of field development expenditures has been in the 80%-90% range. Offshore production activities have contributed between 13% and 18% to the Scottish gross domestic product in recent years. North Sea oil clearly makes a major contribution to Scotland, and so the likely future performance of the industry is of great significance. Because of the current coincidence of both positive and negative
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indicators, it is unusually difficult to forecast activity levels over the next years. Economic modelling has been undertaken by Professor Kemp and Linda Stephen based on the assumption that the proposals in the Wood Review relating to production efficiency and access to infrastructure will be substantially successful over the next five years. Key results of the modelling are that the current decline in production is reversed over the next six years, followed by long-term decline. Over the period 2014-2050 a cumulative production of 14-15 billion barrels of oil equivalent (bn boe) could be achieved. Around 84% of this would lie in the Scottish sector. The potential output should be seen in the context of an ultimate potential frequently put in the 15-25bn boe range. The UK Government has recently produced a lower estimate of cumulative production to 2050 of 10.2bn boe. Tax revenues from the North Sea would be very important in a Scottish Government budget. Historically they have been large but very volatile, reflecting the corresponding behaviour of oil prices, but also the effects of very high investment allowances at the present. This, plus the fall in production, has caused tax revenues to decline recently. Projections of these revenues depend in particular on the assumptions made about future oil prices, production, and allowances for the costs involved. Given the uncertainties surrounding these determining factors, it is possible to produce a wide range of plausible estimates for future years. Thus the Scottish Government and the Treasury/Office of Budget Responsibility have recently published widely differing estimates for the next several years.
FEATURE The prospect of Scottish independence introduces uncertainties about the investment climate. The oil industry attaches importance to certainty and predictability in the licensing, regulatory and tax environment in which it makes longterm investments. It is used to accepting
political risk in countries around the world in which it operates, but there is a clear preference for stability and predictability. It is thus important that the status of existing licences, taxation arrangements and other regulations, such as those dealing with decommissioning and health and safety,
be clarified. The Scottish Government has already indicated that existing licences would be honoured as would decommissioning relief deeds, and stated that no general increase in taxation is in prospect. The industry is likely to wish for more details on these issues.
Yes? No? BNS Can Help You Decide A September referendum will determine whether Scotland sticks with the United Kingdom or jettisons a three-centuries-old partnership and goes it alone. On the panel for the ‘No’ campaign are Jim Gifford, Signs Express and leader of Aberdeenshire council, and Alexander Burnett, North Banchory Company Ltd. For the ‘Yes’ campaign are Robert Holland, Balfour+Manson, and Kenny Anderson, Anderson Construction.
If you are one of the approximately 15% of
structured events calendar and will include
the population who have yet to decide or
a two-course sit-down lunch.
even if you know what box you will tick on
Two
Thursday 18 September, why not attend
campaigning for independence and two
the Business Network Scotland (BNS)
who see the value in remaining within the
question-and-answer session? Held at The
UK will take questions during a 45-minute,
Copthorne Hotel, Aberdeen, on Tuesday
civilised open debate on the most important
26 August from 11.45 a.m. – 2.15 p.m.,
decision the Scottish nation has faced in
Book online at
this debate is part of the BNS monthly
many years.
www.businessnetworkscotland.co.uk
high
profile
business
people
Latest from the Polls At the time of going to press backing for a ‘Yes’ vote in September’s referendum had fallen to 35%, while 54% would vote ‘No’, a YouGov poll revealed. A further 10% said they were undecided, while 2% said they would not vote.
The YouGov poll for The Times newspaper found that backing for the antiindependence campaign had risen, with the ‘Yes’ campaign struggling to convince voters a split would not hurt the Scottish economy. On the issue of the economy, the YouGov
poll suggested the ‘No’ campaign was winning the argument with 49% believing Scotland would be worse off under independence, up four points from three months ago. Just 27% said that Scotland would be better off under independence, a drop of three points since March. TNS BMRB and Ipsos MORI have recorded similarly decisive verdicts in recent weeks. However, ICM (34% Yes, 45% No), Survation (47%-53%) and Panelbase (48%-52%) say the race is much closer!
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FINANCE NEWS
Local Olympian Helps Local Businesses More than 100 of Aberdeen’s business leaders heard about the similar qualities required for success in business and sport from David Carry, double Commonwealth Games gold medallist and Olympian, at an event in the city recently. The ‘Supporting Business Growth’ seminar at the Cults Hotel was hosted by Clydesdale Bank as part of its Business Week programme.
Similar qualities are required for success in business and sport
Aberdonian David swam to two gold medals at the 2006 Commonwealth Games in Melbourne and capped his fine swimming career by finishing seventh in the 400m freestyle at the London 2012 Olympics. The event saw David deliver a presentation on the importance of attitude, leadership, teamwork, goal setting and resilience to succeeding in the worlds of sport and business. Since retiring from competitive swimming,
David has been working for Red Sky Management, which provides consultancy services on delivering sustainable high performance to athletes and companies. David spoke specifically about the need for businesses to identify the core skills they possess and be adaptable to change. Stephen Hepburn, head of Clydesdale Bank’s Business and Private Banking Centre in Aberdeen, said: “It is always a pleasure to have somebody along like David, who is a local sporting hero, to share his experiences with our customers and professional contacts. In addition to his many sporting achievements, David has successfully made the transfer to the corporate world and hopefully some of the advice he shared will help boost our local business community.”
North-East Businesses Get a Jumpstart Dozens of Aberdeen businesses heard recently about how they could be missing out on almost £100,000 of research and development (R&D) tax relief at an event hosted by Clydesdale Bank and Jumpstart UK. Jumpstart’s expert team of scientists and engineers specialise in helping companies access R&D tax relief, which can then be reinvested back into the business, and they have already supported Aberdeenbased companies receive more than £2.8 million in R&D tax relief, the average claim being £86,800. Attendees represented the construction, engineering, food and drink,
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oil and gas, and software development sectors.
in achieving their aims and going from strength to strength.”
Stephen Hepburn, head of Clydesdale Bank’s Business and Private Banking Centre said: “For companies to grow and be successful, it is essential that they not only innovate but also ensure their innovation receives the recognition and reward it deserves.
Phill Gillespie, company analyst at Jumpstart, said: “Companies are becoming increasingly aware that R&D tax relief does not simply apply to blue-sky research, but to the groundbreaking systems, processes and efficiencies for which Aberdeen enterprises are justifiably renowned.
“Jumpstart is set up perfectly to help businesses do just that. We’re proud to have some of the most innovative companies in the world here in Aberdeen and we’re committed to supporting them
“Aberdeen-based businesses should now be thinking as innovatively about their funding mechanisms, with tax relief at the core of their strategy, as they are about innovations in their day-to-day activities.”
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FINANCE NEWS
Aberdeen IT Business Increases Turnover Year-on-year turnover increased by 21% and further growth targeted by Dynamic Edge Solutions Innovative IT business Dynamic Edge Solutions has increased year-on-year turnover by 21% and targeted further growth by raising capital through Funding Circle. A leading specialist in cloud computing technology, Dynamic Edge raised £100,000 through the crowdfunding initiative, which enables online peer-to-peer lending as an alternative to traditional sources of funding for small businesses. In February, Funding Circle received a £40 million injection from the state-backed British Business Bank in order to provide loans to small and medium-sized businesses across the country. This followed a similar investment of £20 million in March 2013, which Funding Circle has since lent to more than 2,000 UK businesses, helping to create an estimated 6,500 jobs. Rob Hamilton, managing director of Aberdeen-based Dynamic Edge, was able to attract 350 private investors for his business proposal through Funding Circle. He said: “We made the decision to use Funding Circle as, not only did it provide the business with a no-equity loan with fixed monthly repayment fees, but the entire process was also extremely straightforward; it took just three weeks from completing the initial application to receiving all of our funding.”
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BUSINESS FINANCE
Avoid
A Taxing Time! Sheena Anderson is one of the founding partners of Anderson Anderson & Brown LLP and heads up the private client tax department. She advises individuals, partnerships and familyowned companies on both personal and corporate tax matters, and has particular expertise in capital taxes. She has had considerable experience in estate planning and inheritance tax planning, property development and property investment. Business Now looks to Sheena’s expertise to help with some tricky taxation questions. Q. If I inherit a property, which I intend to rent, and also inherit quoted shares, do I pay inheritance tax on all of it? A. You will not pay Inheritance Tax (IHT) on assets that you inherit. Any IHT liability will generally be paid by the executors or personal representatives of the deceased out of the deceased’s estate. The value of the inherited assets will form part of your estate, therefore IHT may be payable on your death should you still hold the assets at that time. If you rent out the property, you may be required to complete a Self Assessment tax return (if you are not already in the Self Assessment system) on which the rental income and expenditure will be reported. Depending on your other income, you may then be liable to pay income tax on the rental profits at the rate of 20%, 40% or even 45%. Similarly, if you inherit quoted shares on which dividends are paid, you may be liable to income tax. You should receive a voucher, which shows the dividend paid (the amount you actually receive) as well as the associated tax credit, which represents 10% of the gross dividend. Your liability to income tax on dividend income will again depend on your overall taxable income and may be at the rate of 10%, 32.5% or 37.5%. You should also note that, if you were to sell or otherwise dispose of the assets
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Sheena Anderson is one of the founding partners of Anderson Anderson & Brown LLP and heads up the private client tax department. you inherit, for Capital Gains Tax (CGT)
Q. I’m about to enter the oil and gas
purposes, your base cost is the market
industry and will be working offshore, but
value of the assets at the date of the
I’m confused about whether I pay tax and
deceased’s death.
national insurance.
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BUSINESS FINANCE A. If you are working offshore on the UK continental shelf, then UK tax and national insurance will be due on your earnings. The position is much more complicated if you are working in foreign waters – say Norway – but continue to live in the UK. In that scenario you will have a liability to Norwegian tax, UK tax and possibly Norwegian national insurance on your earnings. There are double tax treaties in place with most countries that should ensure you are not taxed twice on the same income. The only time you would have no UK tax to pay on your earnings would be where the employment is undertaken overseas and you become a non-UK tax resident. The rules around tax residence have changed significantly over the past 18 months and there are a number of conditions to meet to become a non-UK resident. It is worthwhile obtaining advice if you intend to become a non-UK tax resident, as the rules can be complex. Q. When I retire I know I have to pay tax on my pension, but do I still pay tax on my savings and share dividends?
A. Yes, when you retire you are still liable to pay income tax on your savings and other income if you have a total taxable income (including state pension) in excess of your tax-free allowances. For the tax year ended 5 April 2015, the standard tax-free personal allowance is £10,000. The allowance is abated for incomes over £100,000, and completely lost if income exceeds £120,000. Q. If a student is on a bursary, scholarship or gets a grant and also works part-time, do they pay tax on all or some of their income? A. Bursary, scholarship or grant income for students would not be taxable, but earnings from a part-time job may be subject to tax, depending on the level of income. All UK taxpayers are entitled to a personal allowance, which in the current tax year is £10,000. This means that the first £10,000 of earnings in any tax year should be free from tax and, provided that your total income is below this threshold, no tax would be due. Any earnings in excess of this amount would be subject to tax at the rate of 20%. The threshold for National Insurance is slightly lower at £7,748, so
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although no tax is due, there may still be a liability to National Insurance. Q. I have become self-employed. How can I find out what and how to claim expenses and tax allowances? A. HM Revenue & Customs provide advice on their website about what expenses can be claimed when you are self-employed. This can be found at www.hmrc.gov.uk/ factsheets/expenses-allowances.pdf Broadly, expenses incurred that directly relate to your business can be claimed against income, such as staff wages, rent, advertising and stationery. Expenses with an element of private use, such as car expenses where the car has both business and personal use, will have to be restricted to reflect the private use element. Tax deductions, known as capital allowances, are also available on the cost of purchasing plant and equipment for use in your business. The Annual Investment Allowance (AIA) currently allows you to obtain full tax relief on plant and equipment purchased up to the value of £500,000.
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HOSPITALITY
Time to Chill
Carol Brown
One of my favourite expressions of Chardonnay (as well as Puligny-Montrachet and Blanc de Blancs Champagne ) has to be Chablis. I came back from a study trip there a couple of years ago vowing only ever to drink premier cru Chablis, as it really defined the differences from slope to slope and vineyard to vineyard, although realistically I’m never going to refuse a glass of chilled Chablis with all its lovely, mineral-ly crispness! I’ll never forget that trip; as well as being a great experience, it’s the coldest I’ve ever been. We had the privilege of attending the annual St Vincent Wine Festival, which is hosted outdoors by a different village in the region each year. The February morning was as clear and crisp as a glass of Chablis, but a lot colder than a glass is usually served. As it hit minus 10ºC, drips remaining in the glass started to freeze. Later on, a walk through the seven grand cru vineyards that rise on sun-catching slopes at the edge of the village of Chablis warmed us up and, as with tasting many premier cru and grand cru vineyard wines
side by side, showed what terroir is all about. Although there is no direct translation of the term terroir, it is often described as a sense of place and is linked to a number of things including the microclimate and soil composition. The fresh acidity is influenced by the region’s northern location and, of course, there’s the main ingredient, that chameleon of a grape, Chardonnay. Chardonnay is one of the few grapes that is happy in all climates, exhibiting riper characters the warmer it gets. It takes on board the style that the winemaker wants to produce and is happy being unoaked (as many Chablis are), barrel fermented or oak-aged. I’m a firm believer that there is a Chardonnay out there for everyone; it’s just about finding your style. Now back to Chablis. It’s perfect for summer sipping and drinking alongside seafood platters and, at this time of year, it shouldn’t freeze in the glass!
Wines to try: Domaine Louis Moreau Petit Chablis 2011 Domaine Servin Chablis 2012 The Society’s Exhibition Chablis Premier Cru Vaillons 2011 Domaine Vocoret Premier Cru Montmains 2012 Carol Brown is an Aberdeen-based member of the Association of Wine Educators and the Circle of Wine Writers. *Recommendations are subject to availability.
Restaurant Review You may wonder why I’m reviewing Eat on the Green. After all, there are very few foodies in Aberdeenshire who haven’t heard of this amazing restaurant. The answer is simple … I just love the place! I’ve met Craig Wilson, ‘The Kilted Chef’, and he’s just so passionate about food and local ingredients. His kitchen team are so imaginative and this is evident in a superb menu. I’m an immense fan of local game, so on a recent visit opted for the roast saddle of venison with spiced red cabbage, dauphinoise potato and golden beetroot. The venison was perfect and the combination of flavours delicious. I also
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think I’m a bit of a connoisseur when it comes to crème brûlée, as I’ve tasted more than a few over the years. It was a hard decision over the sticky toffee pudding, but the right one. Simply superb! Craig also does a huge amount for local charities which is another reason I am happy to give him my patronage. If you are responsible for organising a corporate day out for the office team, you should head out to Udny Green. You’ll
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learn the tricks of the trade, get involved in the preparation for dinner service and even help cook some of Eat on the Green’s signature dishes, which you can enjoy with a glass of wine at the end of a busy day. It’s a brilliant day with great camaraderie as teams are encouraged to work together. Craig can also hold cookery sessions at off-site locations, from oil rigs to stately homes. To enquire about a corporate booking, contact (01651) 842337.
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HOSPITALITY
The Importance of a Dram
Scotch whisky is a British success revered around the world that can only be made in Scotland. That success has a positive effect on employment, the economy and local communities and plays a key role in the country’s economic growth.
Exports
Home market hit by high tax
Protecting Scotch Whisky
Exported to about 200 countries around
The UK is the third largest market for
By law, Scotch whisky can only be made
Scotch whisky. Despite the alcohol duty
in Scotland. However, given its success,
escalator being scrapped and duty frozen
bottles of alcohol made elsewhere are
the world, Scotch whisky leads the way for British food and drink in overseas markets, accounting for about one quarter of all UK food and drink exports and 85% of Scottish
in 2013, drinkers of Scotch whisky in the
food and drink exports.
UK are penalised by high taxation. Excise
Exports have increased by 80% in the last
duty and VAT make up almost 80% of the
10 years. Sales are increasing in emerging
purchase price of a bottle. Scotch whisky
markets such as Russia, India and Africa. Scotch whisky still faces around 600 trade barriers in markets abroad and a dedicated
is taxed 250 times more than cider, 50% more than beer and 30% more than wine.
sometimes fraudulently marketed and labelled as genuine. The SWA’s legal department protects consumers and the industry from fake Scotch whisky. Its team of five lawyers handle about 70 legal cases at any one time. The SWA also promotes the registration of Scotch whisky as a product
Taxing all drinks according to alcohol
of Geographical Indication (GI) overseas.
seeks to remove these unfair or illegal
content would put an end to the distorted
Recent GI recognition includes Malaysia,
barriers to growth.
drinks market at home.
India, Panama, Turkey and China.
Scotch Whisky Association (SWA) team
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HOSPITALITY
Environment Scotch whisky is closely linked to the environment. Distillers are committed to promoting environmental sustainability, investing over ÂŁ1 billion in renewable energy systems over the last few years. Producers work with suppliers to reduce the environmental impact of the Scotch whisky supply chain as part of a groundbreaking environmental strategy that the industry signed up to in 2009. Top Scotch whisky export markets (by value) are: 1. USA; 2. France; 3. Singapore; 4. Spain; 5. Germany. In 2013, exports generated ÂŁ4.3 billion for the UK balance of trade. The SWA represents over 90% of the Scotch whisky industry. Members range from multinational global drinks companies to independent family-run businesses and include distillers, blenders, bottlers and exporters.
Investment & employment Continued investment to increase productivity is evident across the industry
with current sites expanding, mothballed sites reopening and new distilleries being built.
Scotch
whisky
producers
have
committed ÂŁ2 billion in capital investment over the next three to four years.
dispatch, sales and marketing, engineering, visitor centres and research. Many are in areas where few or no alternative jobs are available. Some of the jobs supported by the industry include cereal supply, plant and machinery providers, packaging manufacturers, distribution and tourism.
Alcohol & society
Around 35,000 jobs are supported by the Scotch whisky industry of which 10,000 are directly within the trade. Employment is located across the length and breadth of Scotland in both rural and urban settings. Jobs include distilling, bottling, warehouse
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The SWA has a robust code of practice on marketing and promotions and many brands already carry responsibility messages and provide other information for consumers. The Scotch whisky industry encourages responsible drinking and our members are committed to working with government and other partners to tackle alcohol misuse. The SWA is a member of the Responsibility Deal Alcohol Network and provides the joint secretariat to the Scottish Government Alcohol Industry Partnership. Scotch whisky is relevant to many different areas of government and regulation, including the economy, employment, international trade and the environment. health and transport.
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HOSPITALITY
Aberdeen Hotels Enjoy Revenue Rise The latest monthly figures have shown the hotel sector in Aberdeen enjoyed strong year-on-year growth in revenue. The latest monthly figures have shown the hotel sector in Aberdeen enjoyed strong year-on-year growth in revenue in March. Accountancy firm BDO’s latest monthly survey
showed
overall
revenue
per
available room for hotels in Aberdeen in March was up 11.8 per cent on the same month last year at £69.75. This measure, also known as rooms yield,
is calculated by multiplying occupancy by the average room rate achieved.
The year-on-year jump in rooms yield
The rooms yield figure for Aberdeen remains the highest in the UK outside London, by a long way, according to the BDO survey of three- and four-star properties. The strength of the oil and gas sector has been cited by BDO as the reason for the consistent buoyancy of the Aberdeen hotel sector in recent times.
occupancy, in March, at 74.6 per cent,
for Aberdeen hotels was achieved with compared with 69.6 per cent for Scotland and 71.2 per cent in regional UK. The hotel sector in Scotland achieved overall revenue per available room of £46.52 in March, which is higher than the regional UK rate of £42.38.
Langley Apartments Launched Langley Apartments, a collection of 22 luxury, serviced apartments located in the west end and city centre of Aberdeen, announced its official launch last month. The apartments, which are owned under a separate division of Lomond Lettings and worth a combined value of £4.5 million, are located within modern developments in Aberdeen, offering visitors luxury accommodation within sought-after areas of the city.
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Lisa Brebner (pictured, left), director of Langley Apartments, says: “We are absolutely delighted to offer visitors a high standard of modern, serviced accommodation within the city. The Langley Apartments division adds to Lomond’s
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already impressive portfolio of over 1500 properties and is well placed to serve the accommodation needs of the business community and energy sector.” Kirsty McWilliam (pictured right), manager of Langley Apartments, says: “The new collection of apartments offer a homely alternative to hotel accommodation and are perfect for people visiting Aberdeen on business for several days, weeks or months who require a city centre base. “Each apartment is stylishly decorated, featuring all the comforts of home and are ideally located within walking distance of the city centre and all major amenities.”
HOSPITALITY
Community Spirit Helps Entrepreneurs Taking a leap of faith, they created a crowdfunding project and signed up to Kickstarter, an online crowdfunding website. After the original owners of a popular eatery in Aberdeen’s Rose Street decided to sell their business, Lara Bishop, who managed the establishment at the time couldn’t say goodbye to the workplace she had grown to love. Acting quickly, Lara decided to make it her own project to ensure that The Foodstory Café name lived on, and teamed up with a mutual friend, Sandy McKinnon, who also shared the dream of owning his own café. A week after agreeing to buy the business, the duo were forced out of the Rose Street site due to unforeseen leasing issues, meaning they had a business, but didn’t have anywhere to put it. They secured new bigger premises on Thistle Street soon after, but didn’t have enough money to sustain the company and kit out the new location. Taking a leap of faith, they created a crowdfunding project and signed up to Kickstarter, an online crowdfunding website. The pair were now more determined than ever to ensure the fundraising for the business was a success. The Foodstory Café received phenomenal support from a global audience through the online crowdfunding. Donations from South America, Singapore, the United States and Australia came flooding in as well as local and national support, indicating that a large amount of people believed in and were backing the business to succeed. Within a month of using Kickstarter, the
business had received over £10,000 worth
With a new chapter beginning, the business
of funding, £2,000 more than the original
is on target for their first successful year of
£8,000 they had hoped for. As a tribute
trading and has grown to a strong team
to everyone who donated to the business,
of sixteen. Lara and Sandy have invested
each individual has their own book painted
in a second production unit as well as a
on the wall above the doorway as a thank
company van.
you to them from The Foodstory Café.
After being so close to losing the business
The café is built from recycled materials
it is apparent that its ongoing success
and provides homemade, organic and
highlights a positive future for The
locally sourced food.
Foodstory Café.
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FEATURE
Business Legend Bows Out
Aberdeen
Hotelier and Aberdeen legend Stewart Spence has come a long way since his first position as trainee chef at the Station Hotel in 1962 when he was only 15 years old. After a hugely successful career in hospitality, he is about to retire and has sold his precious Marcliffe Hotel, which will be demolished and the site transformed into an office development. Stewart and his family bought their first hotel - The Atholl Hotel, Aberdeen – in 1972, and he has subsequently owned seven hotels and restaurants in the Aberdeen area. Mr Spence talks candidly about his career and his beloved city. “I went to Ashley Road School and then attended Robert Gordon’s College. When I left college and announced my intention to
“The Trump effect as I call it has also helped the city” go into hospitality, everyone thought I was crazy. In 1962, when I first started, there were very few restaurants in Aberdeen. Now there are hundreds. Eating out was a privilege and not everyone could afford to do this. How things have changed! One of the saddest things to happen in Aberdeen was the closure of the Domestic Science School or Do’ School, as it was known. The training was great and it was the means to getting good staff into the industry. “In 1970, I was managing the Commodore Hotel in Stonehaven when Stetson-wearing oilmen started to arrive and that was the beginning of 44 years of the oil business in Aberdeen. The city had always been fairly affluent thanks to fishing, agriculture and granite but these industries were on the wane. Charles Forte used to visit the area every year to fish in the Dee and the council were keen to persuade him to build a hotel in the city. They toured the city with him to show him the sights but, when they
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FEATURE
got back to the Townhouse, he announced he had done his homework and felt the oil industry would have a life of a maximum of 10 years so he wouldn’t recoup his money. I guess he’d be turning in his grave! “Of course, Aberdeen has become what it is because of oil, but it also is a successful city because of the work ethic here. I’ve never seen anything like it. People work really hard and, of course, reap the benefits. That is why, with my political hat on, I think we could be successful as an independent nation. I fear the UK is heading for trillions of pounds of debt and I accept Scotland must take its share of that, but I really think we can work ourselves out of that. We can set our own taxes and I think industries such as tourism would really improve. “The Trump effect, as I call it, has also helped the city. The Marcliffe has always been one of the main golf hotels as I’ve regularly gone to the PGA show in Orlando to market my facilities. Two years ago I would be receiving about 900 golfers to the hotel. Last year I had 1800 golf guests. That’s the Trump effect! I ask these guests and keep a note of where they eat in the city and send it to Donald Trump, so I have to say all the city restaurants benefit too. The golf market is huge!
ahead. Our turnover is £8 million net, so that money will be going a-begging. This year and next there will be 1400 new rooms opening in Aberdeen, so I hope the endless profiteering will stop. I feel this is totally wrong and have stuck firmly to my room rates and never changed. I wish my fellow hoteliers would sit back and see the bigger picture. “I have a planning application lodged for a restaurant in the grounds of the new development which my son Ross, who is a very accomplished chef, will run, so the Marcliffe name will continue. I’m very proud to be bowing out with the Marcliffe name still at the top of the industry and I have to say our success has been down to the people who work there. I have staff here who have worked for me since former Soviet Premier Mikhail Gorbachev opened the hotel in 1993. It’s the people who have made the hotel. I’m not personally very
interested in online reviews, but I know the general public are, so I’m delighted to be the number two luxury hotel on TripAdvisor. “I’ll probably keep a keen interest in tourism when I retire. I also plan to continue going round schools encouraging children to join the business. I’ll certainly continue my annual fishing trips to Russia and Iceland. I’m also an avid golfer and it’s another positive reflection on the city that Royal Aberdeen has gained the Scottish Open this year. I have all the famous names booked into the hotel. “I just want to bow out by thanking all my loyal staff for sticking with me over the years. The hotel wouldn’t have been a success without them.” *Mr Spence was honoured with a Lifetime Achievement Award at the recent Grampian Awards for Business Excellence. See Pages 54/55 for more details.
“I remember when the price of oil plummeted and the city virtually emptied overnight. A group of delegates including myself went to the then director of tourism and asked where all the tourists had gone. He replied that when the oil arrived, ‘you told them all to “go and get lost” (but not in so many words)! You were so busy with the oil you had no interest in tourists.’ From that day on I learned not to have all my eggs in the one basket. “Now we are waiting for the planning permission for the new venture to go
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APPOINTMENTS
Recent Appointments New Appointments at ProjectScotland
Legal Firm Names New Female Partner
Employment law specialist boosts team
ProjectScotland, the charity that helps young people get on in life through volunteering, has welcomed two new senior members to the team with the appointments of Catherine Henderson (right) as head of partnerships and Katie Lawson (left) as head of fundraising and evaluation. With over 20 years of third sector experience, Henderson joins the volunteering organisation from awardwinning charity, Place2Be. Lawson, who has spent over 11 years working in events and fundraising, joins ProjectScotland from leading children’s
One of Scotland’s longest-established legal names has appointed a new female partner to head up its Aberdeen operation as part of a raft of promotions for women in the firm. Balfour+Manson LLP has promoted litigation expert Julie Clark-Spence (pictured) to partner level. She will run the Aberdeen office in Albyn Place. Additionally, Ann Logan becomes a litigation partner; Louise Duffy is promoted to senior associate in the litigation team, and Sarah Shiels and Irene Turner move up to associate level in employment and property respectively.
Employment law and HR firm, Empire, has further strengthened its team recently with five key appointments. Laura Mackintosh joins the Inverness team as business development manager, while lawyers Louise Irwin and Susie Lockhart both join as HR and employment law consultants. Linda Clarkson and Gillian Williamson also join the HR advisory team. Managing director Steve Cook (pictured) said: “We have a growing portfolio of clients across Scotland. These appointments will help us to further expand our portfolio of services and reinforce the company’s position and presence.”
Marine Specialists Targets Growth with USA Appointment
Double Drummond for Minto
charity, Barnardo’s.
New Projects Director for Magma
Magma Products has appointed Ivor Ecclestone (above) as projects director Chad Fuhrmann (above) joins Maritime Assurance & Consulting as business at its new Great Yarmouth operation. director Americas, focusing on Ivor, who has more than 30 years’ developing MAC’s business in the Gulf experience in the oil and gas industry, of Mexico. has joined the growing Aberdeen-based Managing director Graeme Reid engineering consultancy to develop its said: “Our work in the US has already integrated approach to managing largedemonstrated potential and, by establishing a permanent presence scale projects. there, we will be ideally placed to react Paul Rushton, managing director, in a nimble and flexible manner. said: “We’re delighted to have Ivor “We want to build on the relationships on board. He brings a wealth of we already have in the US and forge new project management experience to ones. Chad will have an important part the business, in particular in the preto play as we move forward with these commissioning plans.” Summer 2014 business-now.co.uk 44 Issue 1arena.”
Minto Branding has appointed Aaron Drummond and Eloise Drummond (pictured, not related!) as sales executives. Both will be responsible for managing existing client accounts and identifying new business development opportunities, including e-marketing and social networking. Aaron joins from an international recruitment business in Aberdeen, while Eloise previously worked for a north-east oil and gas service company. Minto Branding expects to add a further three members of staff by the end of 2014. Larger office space provides room for expansion, allowing the business to build upon a period of success.
RECRUITMENT
Move up the Career Ladder with Work Experience With many employers frequently listing experience as the top requirement when recruiting, work placements have become an increasingly popular way for people to take their first step on the career ladder.
firm, primarily working in a reception/
However, according to the Chartered Institute of Personnel Development (CIPD), many employers are reluctant to offer placements, viewing young people with no experience as a risk, rather than a productive employee.
her initiative to ask Genesis Personnel for
Genesis Personnel, which delivers expert recruitment solutions to the North East, understands the importance of experience and that in some instances it can prove to be a deciding factor for some employers. The recruitment firm believes that more businesses need to consider the talent that young people can offer and, if managed properly, work placements can help to provide a talent pipeline for your business. Genesis did just this when they offered 20-year-old student, Catherine Ritchie (pictured), a two-day placement at the
administrative-based role. Catherine, who lives in Peterhead, was studying for her HNC in Business at Banff and Buchan College at the time and used a placement after recognising she needed experience to secure a job. Catherine said: “When I was studying at college, I knew it was important and necessary for me to get some practical experience if I wanted to gain a good job. I decided to speak to Genesis and, after an interview, I was offered a twoday placement, which I balanced with my studies at college.” Following six months on placement and completion of her HNC, Catherine decided that she wanted to remain working full-time, as she enjoyed the office environment and the fact that she was learning something new every day. Due to her potential, Genesis supported Catherine and offered her a full-time position in October.
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As Genesis Personnel has offices in Aberdeen and Peterhead, Catherine regularly commutes between the two offices, covering reception and administrative duties in both locations. This includes meeting and greeting job candidates, processing CVs and uploading to online systems, assisting and supporting the busy recruiters, and general reception duties. If carried out correctly, work placements can help employers to gain new talent, fresh ideas and a more engaged workforce, whilst also helping to boost the local economy. Furthermore, they can also significantly help young people to improve their confidence, employability and prospects in the broader job markets. Catherine said: “Undertaking a placement at Genesis Personnel has been invaluable for my career, helping me to progress in various aspects. I have gained first-hand experience of and insight into the industry, and also developed my teamwork and interpersonal skills.”
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BUSINESS AUTO
Jaguar to release
Missing Six Only 12 of the aluminium-bodied Lightweight E-types were eventually built, the last in 1964, the remaining six designated chassis numbers having lain dormant, until now.
Jaguar is to build six perfect reproductions
designated chassis numbers having lain
and engine block, a lack of interior trim
of the original, race-bred Lightweight E-type
dormant, until now.
and exterior chrome work and a host of
that was created in 1963. The new cars are the ‘missing’ six vehicles from Jaguar’s Lightweight E-type project, which originally started in February 1963 with the objective
The new cars will be hand-built in-house by
further weight-saving features including
Jaguar’s finest craftsmen. Each car will be
lightweight, hand-operated side windows.
constructed to the exact specifications of
Jaguar expects a high demand for the six
their original 1960s forebears - including
Lightweight E-types. Established Jaguar
of building 18 ‘Special GT E-type Cars’.
the 3.8-litre straight-six engine.
Only
aluminium-bodied
The Lightweight carried approximately
racing car interests, will be prioritised
were
eventually
114kg (250lb) less weight than a standard
amongst those potential customers who
built, the last in 1964, the remaining six
E-type thanks to its all-aluminium body
express interest.
12
of
Lightweight
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the
E-types
Summer 2014
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collectors, especially those with historic
BUSINESS AUTO
Superstar Insurance for
Supercars
As Aberdeen is home to the highest proportion of millionaires anywhere in the UK outside London, it is no surprise to see a high number of supercars driving up and down the city streets.
McLaren P1
John Silcock, chief executive of northeast independent insurance firm, Borland Insurance, explains the importance of protecting these luxury vehicles:
and policies that they can offer and the wealth of up-to-date knowledge about what is required when trying to insure these types of cars.
With the recent figures stating that Aberdeen has the highest level of disposable income in the UK, the multimillionaires living in the area reap the benefits by purchasing the ultimate supercars. Of course, along with their iconic status, fast engines and stunning exteriors, these cars come with hefty price tags, which are often over six figures and, for rare types, can soar into the millions.
The insurer has to consider a number of aspects of the vehicle, including purchase price, its current value, the age, any extras on the car, details about the engine and interiors, as well as any specific details on maintenance and parts for the car.
However, the cost of purchasing these high performance vehicles does not make a pit-stop there, as these types of cars require specialist car insurance, which can sometimes cost about 10% of the value of the vehicle each year. Consequently, it is advisable that supercar owners ensure their car is fully protected with a quality insurance policy in place. The main benefits of using a firm that specialises in this type of prestige insurance are the competitive premiums
However, in addition, the insurer will also have to consider the lifestyle of the owner of the car, including driving history, age of driver and possible criminal records. By making use of a prestige policy, supercar drivers can often benefit from fewer restrictions and extra incentives, including no excess costs for total loss, no deduction for wear or tear and no penalty for non-fault claims. Most prestige motor policies also set an agreed value, so owners will know the exact amount they will receive in the event of theft or total loss and ensure their asset is fully protected. In contrast, normal
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insurers would usually base this on market value; therefore people can sometimes lose out. Other benefits that are a key part of this type of insurance are the ability to choose a preferred repairer and use of original manufacturer’s parts – this could be vital for some car owners, as they would not want an unreliable firm to work on their pride and joy. The expense of purchasing a supercar is much more than people think, with several hidden costs and, most importantly, the cost to protect the value of this significant asset. Therefore it is important that people consider the different types of polices on the market that will fully protect their dream asset. The Borland Group, which incorporates Borland Insurance Ltd, Borland Financial Management Ltd and Aberdeen-based financial advisory firm, McHardy and Burnett, offers fully independent and coordinated insurance advice, investments and pension advice, in addition to prestige car insurance.
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BUSINESS AUTO
Lexus Raises the Bar with the
RX 450h
In the RX 450h, Lexus has developed a whole new class of vehicle.
Since the RX became the world’s first
On the open road, you’ll discover a breathtakingly smooth acceleration
luxury SUV in 1998, they have been taking the generous spaciousness and body strength of a traditional SUV and allying it with aerodynamic, sporty styling. They have raised the bar even further
been honed to perfection on the famous
driver’s seat, you’ll notice how all the key
with exhilarating power, astonishing fuel
Nürburgring racetrack in Germany, yet the
functions are instantly to hand and clearly
economy and luxurious levels of detail and
RX remains sturdy and reliable in off-road
displayed. And leading-edge features like
comfort. At the heart of the RX 450h is an
conditions too - with advanced All Wheel
Remote Touch and a windscreen Head-Up
advanced full hybrid engine. It combines
Drive maintaining traction in the most
Display (HUD) ensure full concentration
two high output electric motors with a
difficult terrain.
on the driving experience. You and your
Built at their award-winning ‘Eco Factory’ in
climate-controlled comfort and enjoy the
potent 3.5-litre V6 super-efficient Atkinson Cycle petrol engine. On the open road,
passengers can sit back in individual
you’ll discover a breathtakingly smooth
Japan, the innovations continue within the
incomparable audio quality of a prestigious
acceleration that switches seamlessly
sumptuous interior of the RX. Adjustable,
Mark
between economical electric and surging
contoured seats in plush soft leather
System. Everything about the exquisitely
petrol power. Performance and agility have
mean luxurious comfort for all. From the
sculpted RX 450h sets new standards -
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Levinson
Reference
Surround
BUSINESS AUTO from advanced safety technology to refined aerodynamic styling. In combining the practical spaciousness and durability of the traditional SUV with the handling and refined dynamics of a saloon, Lexus has rewritten the rules of what can be achieved. The
uniquely
dynamic
shape
and
performance of the RX are further enhanced in the new F Sport Grade. Its more formidable look includes a specially redesigned
trademark
spindle
grille,
with recessed fog lamps in the lower front bumper. The sporty feel continues with exclusive 19-inch alloy wheels and distinctive F SPORT badging. Inside this exciting new RX 450h grade, custom black, smooth leather upholstery is available. Aluminium inserts and a black ceiling give the car a more cockpit-like ambience. Silver metal pedals add to the sport feeling. The RX 450h F SPORT also benefits from a smoother drive as a result of front and
The uniquely dynamic shape and performance of the RX are further enhanced in the new F Sport Grade.
rear performance dampers. This makes steering more responsive and the car more agile on the road. It also offers extra ride comfort with the system’s ability to absorb fine vibrations. With the RX 450h F SPORT, you have the ultimate combination of power, economy and attractive styling. The ideal business partner, the RX 450h offers a groundbreaking combination of power and efficiency. With CO2 emissions from just 145 g/km and up to 44.8 mpg, the RX 450h provides leading efficiency without compromise on performance or luxury, whilst its 2014 company car tax rating starts from just 22%. Lexus 450h SE from £44,495.00
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SPORTS
Blood, Sweat and Gears It’s the weekend at last! Turn off the phone, the computer, the iPad, and say goodbye to emails, Twitter, Facebook, texting and googling.
Grab your bike and some mates and head
as one of the world’s best countries for
can explore for an hour, a day or a week
off to explore the great outdoors.
cycling and mountain biking facilities.
and the winding roads give a spectacular
Mountain biking is about getting deep into
Royal Deeside and the Cairngorms are up
window onto local nature and history.
the forest; it’s getting into places where
there with the very best that Scotland has
Local cycling specialists Cyclehighlands
the only trail is rough, rocky and rooty;
to offer. The International Mountain Biking
are based in Ballater and offer fully
it’s about rapid downhill descents over
Association (IMBA) has, for two successive
equipped bike hire, bike and equipment
boulders and ledges; it’s about carving
years, awarded Scotland the world’s top
sales and repairs, guided rides and all
berms and leaping table-tops; it’s about
mountain bike destination. Ballater lives
types of help and advice to get the most
man (or woman), machine and nature;
up to this accolade and is an ideal location
out of your day on the saddle. Their bike
it’s about mud, adrenalin and ear-to-ear
from which to explore natural trails and
shop, with its safe test area, offers easy
smiles. Some folk get that ear-to-ear smile
various purpose-built centres. From gentle
access to the uncrowded and stunning
from racing their mountain bikes cross-
cycling along flat and quiet country lanes
scenery of Glen Muick, Glen Tanar and
country or downhill; some from freestyle
and the Deeside Way path to arduous trails
Balmoral. From the family and recreational
riding in the woods; others from just being
across high mountains and through dense
cyclist to the serious mountain or roadie,
out there in the wilds. And Grampian can
forests, this area has something to satisfy
the area has so much to offer. The team
satisfy all these demands.
every level of cyclist, from the absolute
at Cyclehighlands are always delighted to
novice to the committed enthusiast. You
give advice, provide maps and help you get
Scotland
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is
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Summer 2014
recognised
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SPORTS the best from your visit. Various guiding packages are available from ‘Secret Single Track’ to ‘Discover Mountain Biking’, which is great for those wishing to learn the basics of off-road cycling in superb locations. Their website at www.cyclehighlands.com is full of tips, suggestions and information and is the ideal place to start planning your cycling visit in the area. Pitfichie Forest mountain bike trails or, as they are sometimes known, Whitehills Cycle Trails, covering the flanks of Pitfichie Hill and the adjacent Cairn William are another Forestry Commission success. Lots of imagination, hard work and sweat have gone in to make the Pitfichie trails some of the best mountain bike trails in Aberdeenshire, especially the red routes. There are two way-marked cross-country trails, a suicidal downhill course and a host of unofficial trails and routes to explore. Testament to the challenge of the downhill course, if any were needed, is its frequent inclusion in the Scottish Downhill Association’s championship series - only one of the half dozen or so that they use. The way-marked trails offer two grades of riding, both challenging, but one just that little bit harder than the other. Other trails to explore in the area include Durris
Wood
between
Stonehaven
and Banchory, Kirkhill Forest between
Scotland is internationally recognised as one of the world’s best countries for cycling and mountain biking facilities.
Aberdeen and Blackburn, Scolty Hill near Banchory, and the Bennachie Turnpike Trail near Inverurie. Why not book a mountain biking holiday that travels from Scotland’s east coast to west or vice-versa? Offering the ultimate mountain biking holiday, this epic mountain bike adventure cuts a path covering 400 km through the Scottish Highlands. Beginning by the beautiful beaches of Aberdeen, you’ll traverse the country along the single track through rugged mountain ranges.
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51
EXTREME SPORTS
Mud sweat & tears for Team Motive
Two north-east sister firms have successfully raised over £6000 for two local charities by taking part in a series of fundraising events.
Employees from Motive Offshore and
The
then
“Although we faced extreme challenges,
Motive
Renewables,
which
are
adrenalin-seeking
team
both
successfully got 17 members round the
it turned out to be a great team-building
headquartered in Boyndie, near Banff,
brutal 12-mile Tough Mudder challenge
activity and we completed it with smiles
joined as a team to take on three gruelling
in Dalkeith, which was complete with
on our faces, with many other Team Motive
challenges in the last three months, as
underwater tunnels, ice baths and extreme
part of their fundraising initiative to raise
climbing walls.
members hoping to take part in Tough
vital funds for their chosen charities for the year: The ARCHIE Foundation and Cancer
Team Motive member, Vivien Rae, said:
Research UK.
“June has been a very busy month for Team Motive with some of our biggest
Mudder next year. “We have now raised well over our set target, with our current total at £6900 and donations still coming in. We are
The employees – who established their own
challenges. Tough Mudder was extremely
charity group, Team Motive, at the start
hard work and it took a great amount of
of the year – launched their fundraising
energy, but it was a fun experience for the
initiative in May by participating in the
whole team – even if we were covered head-
Knock Hill Race, a gruelling eight-and-
to-toe in mud. We were determined to do it
community engagement so, along with
a-half-mile race to the top of Knock Hill
as a team, assisting each other over the
fundraising, we sponsored June’s Scottish
and back, as part of the Cornhill Highland
obstacles, and providing encouragement
Traditional Boat Festival in Portsoy where
Games, and the ladies from the group
when it was required to make sure we
Team Motive had a presence in a bid to add
completed the Inverness Race for Life.
crossed the finish line as a group.
to our fundraising efforts.”
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very grateful to those who have donated, as both charities are very worthy. As a company we are very focused on
INDULGE
Time to Unplug with a Digital Detox
Do you get anxious if you accidentally leave your mobile phone at home for the day? Are you constantly checking for new messages, emails or social media updates, even when you are in the loo? Do you text and drive despite knowing the potentially deadly consequences? Are you staring at a screen for the majority of your day? There are many studies that show how technology can contribute to high levels of stress, and strain on relationships and family. As much as it may pain you to consider this, it could be time for a detox – a voluntary reduction in your use of technology. The more things you’re hooked into, the harder this will be and the more anxiety it will produce. But if conducted in a thoughtful manner, a detox can help you release some of the negative build-up of your technology use and give you the break you need to make better choices going forward. Technology is so much a part of our lives that you’ll need to be organised about what you’re going to give up, for what reason, and for how long. This isn’t something you can do haphazardly or you’ll just end up reverting back to old habits. You want to go into this with your eyes wide open, so you
can monitor and deal with your responses and reactions to digital deprivation. Develop a plan and stick to it. This will help you weather the squalls of anxiety that can threaten to overturn your best intentions. You may consider a tech detox as a sort of digital fast or cleanse and cringe at the concept, thinking you’re going to have to do the cyber equivalent of never having another piece of chocolate while living on tofu and grapefruit. Relax. Those kinds of diets don’t work with food and don’t work for technology either. Instead, start with small steps. For example, if you’re going to go to the cinema with your family or attend your child’s football match, leave your mobile phone in the car. Give yourself permission to spend a few hours concentrating on just one thing — enjoying the movie or game with your family. If you’re the kind of person who needs to review email every 15 minutes, give yourself permission to check it less frequently – say, every hour. Start small and allow yourself to experience incremental victories. Decide beforehand what the parameters
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of your detox are going to be. If you decide not to check work emails from home in the evening, specify the hours you can check them. The more specific the parameters, the less room there will be for cheating. Just because you made the rules, it doesn’t mean you get to break them. This is also why it’s important to start small; the fewer the rules, the easier it will be to keep them. Then, as you rack up victories, you can expand your goals. As you gain successes, the first targets will begin to seem natural and less restrictive. The goal should not be merely to see how long you can do something, knowing that you’re just going to dive back in with renewed passion, enthusiasm and a sigh of relief. One goal of a tech detox should be to learn that you can truly live without it; but that’s not the only goal. You should also strive to use the detox to learn more about yourself and how you interact with technology in all aspects of your being. Sometimes you have to disconnect to reconnect and create a balance in the digital age.
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More than 400 people gathered for the 2014 Grampian Awards for Business Excellence, which are run by Enterprise North East Trust (Enterprise), along with headline sponsors RBS Ahead For Business, which took place recently at The Mercure Aberdeen Ardoe House Hotel and Spa. This year’s winners include young up-and-coming businesses, family-owned enterprises and longestablished companies from a variety of sectors in the North East, including hospitality, childcare, IT and the oil and gas industry. Dr Deborah O’Neil, chief executive and scientific officer of NovaBiotics, a specialist healthcare company that has created a range of treatments for fungal and other difficult-to-treat infections, was named Entrepreneur of the Year. Dr O’Neil has shown great enthusiasm for and persistency in her scientific and commercial work in the region since the company’s inception in 2004 and will join other notable local entrepreneurs in the Enterprise ‘Hall of Fame’ in recognition of her dedication to the biotechnology and pharmaceutical sector.
North-eas Champions
Top north-east hotelier, Stewart Spence, of The Marcliffe Hotel and Spa, was presented with the prestigious Lifetime Achievement Award for his dedication to tourism and hospitality in the North East. Mr Spence has owned seven different hotels and restaurants over the course of his successful career and is a dedicated patron of numerous charities based in the region. Gary McEwan, chief executive of Enterprise, said: “This is the second year we have presented the Lifetime Achievement Award to a notable figure from the northeast business community, and Mr Spence received the accolade for his contribution towards tourism and his dedication to supporting young people with potential in the industry. This is the first time the Entrepreneur of the Year accolade has been presented to a female, and Dr O’Neil, who has more than 100 patents under her belt, will join six other notable entrepreneurs in the Enterprise ‘Hall of Fame’ in recognition for her notable work in the area. “The awards showcase new businesses, multigenerational businesses and everything in between. We received a record number of entries this year from talented entrepreneurs and businesses in the area, and applaud the achievements of all of our finalists and winners and wish them every success in a future that looks bright for the North East.”
North-Eas Champions
Talented entrepreneurs from a diverse range o winners in one of the North East’s most p
Mike Fergusson, director of commercial banking, said: “Congratulations to all the winners of this year’s Grampian Awards for Business Excellence. The event is one of the rare occasions at which we can showcase and recognise the outstanding business contributions made by individuals and businesses in the North East. The commitment and passion shown by the winners and indeed all the finalists is truly inspiring and all the more outstanding given the current economic climate. It clearly demonstrates the talent and diversity within the region. Special thanks should also go to Gary McEwan and the team at Enterprise for organising such a truly memorable occasion.”
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Fraser Media Ltd
From left: Howard and Ann Johnson, Mike Fergusson
Winners are as follows:
st Business s Rewarded
Most Promising New Business Sponsored by Business Gateway
The Foodstory Café Business Success Under Three Years Sponsored by RBS Ahead for Business
SengS Subsea Engineering Solutions Ltd
Business Success Over Three Years Sponsored by RBS Ahead For Business
Blaze Manufacturing Solutions The Grampian Award for Innovation Sponsored by Enerco Group
Meta Downhole Ltd The Spirit of Enterprise Award Sponsored by partner Aberdeen City Council
Stompers Childcare Services/ Techno-play
st Business s Rewarded
The Alick Buchanan-Smith Enterprising Communities Award Sponsored by partner Aberdeenshire Council
CLAN Cancer Support Emerging Entrepreneur of the Year Sponsored by Optima Solutions UK Ltd – a TETRA company
Ben Iravani of Monkey Bars Aberdeen Ltd Employer of the Year
of industries in the area have been unveiled as prestigious business awards ceremonies.
Sponsored by Empire
Indigo Technologies Entrepreneurial Supporter of the Year Sponsored by the Federation of Small Businesses:
Andrew Smith of ABN:Community Entrepreneur of the Year Dr Deborah O’Neil of NovaBiotics
Sean Thomson and Donna Gibb
Stewart Spence and Dr. Deborah O’Neil
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Lifetime Achievement Award Stewart Spence of The Marcliffe Hotel and Spa Aberdeen Summer 2014 business-now.co.uk 55
The honours were presented at a ceremony in the Aberdeen Exhibition and Conference Centre, attended by nearly 650 of the region’s leading business professionals. The cHeRries are organised by Aberdeenbased team cushydoos (part of The Urquhart Partnership), with Aberdeen Business School at The Robert Gordon University as title sponsor and Mattioli Woods – Employee Benefits as supporting sponsor.
The cHeRr
The winners of the seventh annual cHeRries Award recruitment and training achievements i
Brian McCue, Bureau Veritas, winner of The Excellent HR Manager award, commented: “The whole journey was exciting, uplifting and made me feel very proud of what I do. To win on the night was so exhilarating, to be recognised in the professional HR domain with the cHeRries brand and reputation behind you is an amazing feeling. It felt so special for me, and it was a real honour to be part of the whole journey.” Enjoying the evening was an equally delighted Tina Murray from TAQA, who picked up the HR Advisor award. “I was delighted to be recognised and receive a surprise nomination from my manager for the Fantastic HR Advisor award. Since receiving my cHeRry I’ve received some lovely compliments from people both within and outwith the business, which has given me the confidence to continue to push new boundaries and try to find ways of contributing to the bottom line.”
Aker Solitions - Exemplary Employer of Choice
Now in its third year, The Top cHeRry award was presented to Peter Nicholson after he was nominated by HR and business professionals across the North East. This year, the event was hosted by David Burnside, a leading figure in employment law and the recipient of the Top cHeRry Award in 2013. Later in the evening, guests were treated to music from popular Aberdeen band, 5th Avenue. cushydoos director, Karen Reid, said: “We’ve had another amazing year at The cHeRries Awards 2014, and have been delighted to help celebrate another fantastic array of talented individuals, teams and innovative initiatives here in the North East.
Brian McCue - Bureau Veritas Excellent HR Manager
Kerry Christie Aberdeen Asset Management Outstanding HR Director
Stuart Andrew Blossomi
“We know that HR best practice really is at the heart of every successful business; every time we hear business leaders talking about people being their ‘greatest asset’, we know that it is their HR team who is making sure it’s true. And that is why it’s so important that we recognise their efforts.” The next cHeRries Awards will be launched in November, with the awards dinner taking place on Thursday, 4 June 2015.
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Stewart Milne & Macphie of Glenbervie Consortium - Tremendous Training & Development
ries on Top
ds, celebrating outstanding human resources (HR), in the North East, have been announced.
Winners are as follows:
The cHeRries Blossoming Award Stuart Andrew, AMEC
Category sponsor: Aberdeen Business School at RGU. He also receives full funding from RGU to study for his MSc in Human Resource Management.
Extraordinary Team Initiative Wood Group UK Induction, Emerging Talent Team Category sponsor: Petrofac.
Fantastic HR Advisor Tina Murray, TAQA Bratani Category sponsor: Wood Group PSN.
Tremendous Training & Development Stewart Milne Group & Macphie of Glenbervie Consortium Category sponsor: Aberdeen Appointments Agency.
AMEC - Finders Keepers Recruitment and Retention Award
Finders Keepers Recruitment & Retention AMEC Category sponsor: DavidsonMorris
Excellent HR Manager Brian McCue, Bureau Veritas Marine & Offshore Category sponsor: activpayroll.
Exemplary Employer of Choice Aker Solutions
AMEC - cHeRries ing Award
Tina Murray - TAQA Bratani Fantastic HR Advisor
Category sponsor: CMS Cameron McKenna.
Peter Nicholson - Top cHeRry Award for Outstanding Contibution
Outstanding HR Director Kerry Christie, Aberdeen Asset Management Category sponsor: AMEC
The Top cHeRry Award for Outstanding Contribution Peter Nicholson Category sponsor: Mattioli Woods-Employee Benefits
Wood Group UK Induction -Emerging Talent Team - Extraordinary Team Initiative
Each award was presented by a representative of the category sponsor.
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BUSINESS EVENTS
Business Events
The north-east of Scotland hosts a wide and varied range of business-to-business events
From topical discussions to monthly business breakfasts, most events offer opportunities to network and meet new people. Business Now will publish events in each quarterly issue, so do let us know where, when and what the nature of the events you organise are.
July 2014
23 July – ENET Start Up Awareness 23 July – BNS Annual Evening BBQ & Quiz, Edinburgh 24 July – ENET Business Planning 31 July – AGCC Essential Management Skills
August 2014 1 August – ENET Marketing 2 August – ENET Business Planning 5 August – ENET Start Up Awareness 20 August – SCDI Referendum Debate 21 August – BNS Glasgow 26 August – BNS Aberdeen including Referendum Q&A 28 August – BNS Edinburgh including Referendum Q&A 28 August – AGCC Business Breakfast 30 August – Strictly Come Prancing!, The Beach Ballroom
September 2014 2 September – ABN Face-to-Face Networking Event 3 September – AGCC - Instrumentation Scotland & Offshore Systems Network Breakfast 5 September – CLAN8 Dinner Dance 7 September – Homecoming Celebration, Duthie Park 10 September – AGCC – City Connections 11 September – AGCC – Referendum Business Breakfast 11 September – BNS Glasgow 12 September – SCDI Annual Dinner & Business Excellence Awards 2014 18 September – BNS Aberdeen 19 September – ABN This Is Social Networking 23 September – ABN Developing Social media 24 September – SCDI National Business Convention 2014 25 September – BNS Edinburgh 25 September – AGCC Northern Star Business Awards 26 – 28 September – Scottish Home Show – AECC
October 2014 2 October – BNS Glasgow 4 October – The Press and Journal Energy Ball - AECC 7 October – ABN Face-to-Face Networking 8 October – BNS Aberdeen 8 October – AGCC Speed Networking 9 October – AGCC The Economy Business Breakfast 14 – 16 October – Deep Offshore Technology International - AECC 20 – 22 October – Low Carbon Networks and Innovation Conference – AECC 30 October – Granite EXPO
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Business-to-Business Events Aberdeen & Grampian Chamber of Commerce Aberdeen & Grampian Chamber of Commerce (AGCC) is north-east Scotland’s leading private sector business organisation. It represents more than 1250 businesses, providing support, advocacy and business services. Full details of their events and other services are available at www.agcc.co.uk ABN:Community With over 4200 online members, ABN has developed into a most effective online business community. It also organises various events and details other business-to-business events. See aberdeenbusinessnetwork.ning.com to join and get involved. BNI If mornings are your thing, then Business Network International (BNI) might suit you and your business. BNI have weekly chapter meetings throughout Scotland. For information on local chapters, visit www. bni.co.uk BNS BNS has held structured monthly networking events over lunch in Aberdeen, Edinburgh and Glasgow since 1994. An ideal environment to build relationships with senior decision-makers from all walks of business. See www. businessnetworkscotland.co.uk for more information and a calendar of events. ENET Enterprise North East Trust (ENET) is one of the country’s leading business support and development organisations. ENET offers training courses, office space, support and advice to entrepreneurs and businesses. For further information, visit www.enetrust. com Granite EXPO Organised by Granite PR and Business Plus Scotland, Granite EXPO provides businesses of all sizes and industry sectors across the North East with an opportunity to exhibit and network. For details of the next Granite EXPO, visit www.granitepr. co.uk SCDI The Scottish Council for Development & Industry (SCDI) is an independent and inclusive economic development network with a diverse membership drawn from a wide variety of organisations. They hold a range of events across Scotland. More details about their activities and events can be found at www.scdi.org.uk
Aberdeen • Edinburgh • Glasgow
Helping you build your business through local networking events
Want to develop your business in Scotland? Then read this! Once you have experienced a BNS event you will see for yourself how Business Network Scotland could benefit your company. The benefits of BNS membership for you and your organisation are:
You can attend BNS events throughout Scotland ▪ You can network regularly with members ▪ You can book the 10-minute speaker’s slot ▪ You can set up a display stand at an event ▪ You can attend pre-event seminars FOC ▪ You can attend other events, such as BNS golf outings ▪ Your company details are listed free of charge in the members only area of the BNS website ▪ You can market your company FOC via BNS e-newsletters ▪ You & your business can benefit from BNS member-to-member offers Membership costs £295 + VAT for 12 months, with a one-off joining fee of £50 + VAT. As a member, you pay the member’s rate for the events that you attend. You can complete a membership application form online at www.businessnetworkscotland.co.uk Membership fees are payable online or by 10 monthly payments of £44.40 inc. VAT by direct debit.
We look forward to welcoming you to a BNS event soon! 01224 865466 www.businessnetworkscotland.co.uk Issue 1
Summer 2014
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Issue 1
Summer 2014
business-now.co.uk