Business Now - Issue 02 - 2014 by Business Now

Issue 2 Autumn 2014

Putting the Now in Business

BUSINESS NOW

Putting the Now in Business

Still United, But What Happens Now? Reflecting on the Referendum I Renew(able) Focus I Ryding on the Crest of a Wave

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INTRODUCTION

Welcome to the second quarterly issue of BUSINESS NOW

Editor Eric Farquharson editor@business-now.co.uk

Assistant Editor Judy Marshall judy@business-now.co.uk

Design Mackintosh Media and House Of Morgan Graphics

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 Buxton Press UK PEFC Certified This product is from sustainably managed forests and controlled sources PEFC/16-33-576

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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. Any views or opinions expressed by columnists or interviewees are their own and do not represent those of HOMMAC Media Ltd. 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.

Welcome to the second edition of BUSINESS NOW and also a big “Thank you” for your comments on our launch issue. We seem to have hit the mark and we are keen to respond to your feedback on supplying “more of the same”. Incredibly, we have been inundated with enquiries from not only local businesses, but many from throughout Scotland and media companies from further afield who have viewed our online version. So it’s onwards and upwards for BUSINESS NOW. We’ve already added more pages to this edition, and what an issue it is! Of course, the main talking point is the aftermath of the Referendum and how the outcome will affect local business. We keep you up to date with what is happening in the oil and gas, renewables, financial, business and hospitality sectors, and take a look at commercial development activity throughout the city. Sheena

Anderson is back to answer more tricky tax questions and we acknowledge recent career advancements in the Appointments section. A quick gear change and we’re behind the wheel of the Volvo V60 Polestar, which is sure to get to grips with whatever the northeast weather dictates. We congratulate those of you who have cycled, run, walked and been subjected to buckets of iced water – all in the name of charity. You truly are local heroes, as are those who have picked up trophies at the recent Northern Star Business Awards, highlighted in pictures on pages 54 and 55. The next issue of BUSINESS NOW will be available in February so, in the meantime, enjoy the corporate Christmas night out, chill out over the festive period with family and friends, and here’s to more business success in 2015.

Eric W Farquharson

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Features 08

Reflecting on the Referendum So here we are! Scotland has voted ‘No’ in the referendum to decide the nation’s future. Alex Salmond has resigned as First Minister and the Queen has spoken of “the enduring love for Scotland”.

Renew(able) Focus Much has been made of the offshore wind opportunity available to Aberdeen and the North East, but what is the progress to date, and are there other options for businesses in the area to develop new areas of profit?

Ryding on the Crest of a Wave It was the greatest show in golf and it wasn’t just the players who tasted success. The eyes of the world were fixed on Perthshire. Gleneagles have spent 13 years preparing and £20 million on staging its finest hour.

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Contents 05 Introduction 10 Business News 15 Oil and Gas News 20 From Battlefield to Oilfield

22 Effects of the Referendum 23 Wood Review 24 Finance News 27 No Strings Attached 30 Legal News

34 League of Nations 35 Judging Your Space 36 Property News 40 Business Travel

42 Hospitality News 46 Business Auto 49 Living on the Edge 50 Business & Community News 54 Northern Star Awards

56 Scottish Home Show

57 McCalls Put App in Appearance 58 Appointments 59 Personnel

62 Events

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REFERENDUM FEATURE

It was a long and sometimes acrimonious campaign. However, the level of participation was exceptional and a credit to the whole of Scotland. For now, this means we will continue to form an integral part of the UK. But for Scottish devolution, the process of granting powers from Westminster to the Scottish parliament, it’s far from business as usual. The focus will now be on how the UK government delivers its promise of more powers for the Scottish parliament based at Holyrood. The three biggest UK-wide political parties – the Conservatives, Labour and the Liberal Democrats – agree that further devolution of powers to Holyrood must take place. A timetable to deliver change was set out by former prime minister and Scottish MP, Gordon Brown. It was quickly endorsed by the UK-wide parties.

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Immediately after the result became clear, Prime Minister David Cameron aimed to show the UK government was grabbing the initiative by announcing Lord Smith of Kelvin, a former BBC governor, would oversee the implementation of more devolution on tax, spending and welfare. He said draft legislation would be ready by January, as per the timetable laid out by Brown. Under the former PM’s proposals, a Command Paper would be published by the present UK government setting out all the proposals by the end of October. A White Paper would be drawn up by the end of November, after a period of consultation, setting out the proposed powers. A draft new Scotland Act would be published by Burns’ Night, 25 January 2015, ready for the House of Commons to vote on. However, with a UK general election due in May 2015, the legislation would not be passed until the new parliament began.

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The Scottish Parliament is currently funded through a block grant and the amount it gets is defined by the Barnett Formula – an arrangement for adjusting funds to Scotland, Wales and Northern Ireland to spend on devolved policy areas, on the basis of population. All three parties are committed to preserving the essence of this mechanism in some form. And in proposals set out by the parties earlier this year, each offered Holyrood considerably more income tax-raising powers than the Scottish parliament has at present. However, there were significant differences between the parties in the proposed extent of those changes. So how has, or will, the outcome of the referendum affect local businesses? Craig Stevenson (pictured), Bon Accord & St Nicholas manager, said: “Understandably the referendum created uncertainty

REFERENDUM FEATURE across many sectors in different parts of the country, but the evidence in Aberdeen suggests retail was not impacted upon during the campaign period. “Indeed, we demonstrated our own confidence in the sector when we launched expansion plans at the height of the political debate. Regardless of the outcome of the vote, we had committed to pressing ahead with a multi-million-pound development of the centres. That type of confidence is reflected throughout the city centre, where a number of landmark projects are in the pipeline. “Bon Accord & St Nicholas has experienced a significant year-on-year growth in visitor numbers throughout 2014. Across both malls there has been increased footfall and the information provided by retailers is that trade has been strong on the back of those additional numbers. There is no indication that the referendum had a negative influence. “It is an encouraging sign as far as the north-east economy is concerned as it certainly illustrates consumer confidence. It also underlines the growing buzz surrounding the city centre and we’re

delighted to be playing a part in that with our plans for growth.”

stamp duty will undoubtedly have a bigger impact over the next 12 months.”

The positive vibes surrounding retail in Aberdeen point not only to confidence among consumers, but also in other sectors in the North East.

Tourism market research specialists, LJ Research, conducted a survey in the late summer to see if potential visitors truly cared about whether Scotland was independent or not. The result was a collective shoulder shrug.

Mark Hayward, managing director of the NAEA (National Association of Estate Agents), said: “We can expect to see some positive movement in the Scottish housing market – good news for Scottish estate agents and their customers, who can now look forward to a less frenetic housing discussion and market. “Although the outcome does not necessarily guarantee clarity for the market, the mist of ambiguity will clear much earlier than if the outcome to Scottish independence was ‘Yes’. “There is likely to be a substantial increase in market activity in the coming months, with an increase seen in the volume of sales and investments. “This could disrupt house prices in the short term, although not significantly. The existing concerns around increases in interest rates and a significant hike in

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Of the nearly 700 recent UK visitors polled, 84% said their decision to visit would be totally unaffected by the referendum result. Sean Morgan, managing director of LJ Research, noted: “These findings suggest that Scottish tourism business didn’t have to worry about the outcome of the referendum. That said, tourism businesses that have high exposure to English markets should tailor their marketing messages and operational services to ensure those from south of the border are made to feel unequivocally welcome.” English respondents were twice as likely as international visitors to claim they felt less inclined to visit an independent Scotland. (See Page 22 – The Effect of Scottish Referendum on the Oil & Gas Industry) (See Page 23 – The Wood Review)

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BUSINESS NEWS

Codify Building for the Future with Contract Wins “What is particularly satisfying is that ASCO, Entiér and Sparrows are three established clients who have returned to work with us” Scottish business software specialist Codify has announced contract wins with a combined value in excess of £500,000. The Aberdeen-based company has clinched multiple deals and is targeting further growth on the back of the success of the recent wins. Projects with oilfield engineering specialists Sparrows, oilfield support services company ASCO and contract catering services provider Entiér are among the business wins. Managing director, Graeme Humphrey (pictured), said: “We began the year with our first contracts in the Scandinavian market and have continued with some significant new business on home soil, building on the strong foundations we have in place. “With our recruitment process for further developers ongoing, following the recent appointment of two business analysts and a developer, we are continually looking to grow our team to help bring fresh talent to Codify at what is an incredibly exciting time for the company.

Entiér and Sparrows are three established clients who have returned to work with us on new projects. At Codify, we take great pride in forging positive relationships with our clients and we’re looking forward to growing these further, both with new and established clients, throughout the remainder of the year and beyond.”

“What is particularly satisfying is that ASCO,

Codify, established in 2000, builds custom

software covering a range of business applications which include logistics, health and safety, recruitment and tool rental management. The company has become established as a specialist in the oil and gas industry, with a team of more than 20 working from its Aberdeen office. Further information is available at www.codify.ltd.uk

Dealmaker of the Year Award for Infinity Partnership “The winner was an inspirational and aspirational individual” Simon Cowie (pictured), founder and managing director of chartered accountancy practice Infinity Partnership, has been named Scotland’s Dealmaker of the Year at the 2014 Deals and Dealmakers Awards. Simon previously won the title in 2009.

A leading Aberdeen accountant and business advisor has won a prestigious dealmaker award for a second time.

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Infinity Partnership was named among the top five accountancy firms for deal completions and the second top deal initiator having completed 31 transactions with a value in excess of £150m. The judging panel noted that Simon was “someone who really finds solutions to

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problems and gets deals on the table”. One judge said: “It’s no mean feat to bring a potential transaction to a client and then see it through to completion.” When announcing the Dealmaker of the Year honour, it was stated that “the winner was an inspirational and aspirational individual, who served as a role model for the deal-making community in Scotland.” Simon said: “Winning this award was a real honour for me and the business as a whole. The high standard of nominees shows how far Infinity Partnership has come in a relatively short space of time.”

BUSINESS NEWS

North-East Accountant Wins Young Accountant of the Year An accountant from Fraserburgh has won a top accolade for work in his industry. Eric John (EJ) Summers (pictured) of Leiper and Summers won the Young Accountant of the Year at the Scottish Accountancy Awards, which were held at the Radisson Hotel in Glasgow. He received his award following nominations from his clients, his peers and senior managers at Leiper and Summers. EJ has been an accountant with the northeast firm since 2011. EJ said: “It’s great to be recognised by professionals within the industry and it’s a fantastic feeling to have won this award.

There were some worthy competitors this year so I knew it would be a tough decision for the judges. I’m very thankful to have been chosen for the award.” Partners at Leiper and Summers said: “We are very proud of Eric John and he thoroughly deserves this award. Everyone at the firm has been right behind him this year and it’s just fantastic he’s won after coming so close at last year’s awards. This achievement shows his dedication not only to our firm, but also to all the clients he works very hard for.”

www.leiperandsummers.co.uk

Keenan Recycling Commits to Help Businesses Reduce Waste The new regulations mean that it is now compulsory for all businesses to separate materials for recycling A leading north-east organics recycling company has signed up to a Scottish Government-backed initiative to help SMEs and other businesses to reduce and recycle more waste. Keenan Recycling, of New Deer, Aberdeenshire, has signed Scotland’s Resource Sector Commitment, which is designed to set consistent standards for business waste collections and to help deliver the country’s zero waste targets. It has been developed by Zero Waste Scotland in collaboration with the resource management industry and small business representatives. By signing up to the commitment, Keenan Recycling will continue to provide customers with high quality recycling services, give advice on preventing waste and using resources efficiently, have userfriendly contracts and charging structures, and give customers the chance to give feedback. The specialist firm will also continue to ensure that customers are compliant with the new Waste (Scotland) Regulations, which came into force in January. The new

regulations mean that it is now compulsory for all businesses to separate materials for recycling.

since the Waste (Scotland) Regulations

Grant Keenan, managing director of Keenan Recycling (pictured with Iain Gulland, director of Zero Waste Scotland), said: “We have doubled our commercial food waste customers to more than 1400

are choosing to ignore them. It is vital for

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came into force nearly 10 months ago, but there are still a number of businesses who business owners to pay attention to the regulations, and we will continue to ensure everyone knows about their importance.”

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BUSINESS NEWS

CityFibre & IFB Deliver Major Digital Upgrade Leading network infrastructure provider CityFibre have announced plans to build a citywide, state-of-the-art pure fibre network in Aberdeen, creating Scotland’s first Gigabit City

The project has been made possible by collaboration with Scotland-based Internet For Business (IFB). CityFibre’s modern digital infrastructure will bring transformational gigabit speeds within reach of over 6000 companies as well as hundreds of public sector sites, including schools, universities, libraries, hospitals and government agency buildings across the city. CityFibre has been working closely with IFB to underpin its multi-million-pound investment in the city with plans to upgrade and migrate hundreds of business customers onto the new infrastructure. The network will be constructed in line with CityFibre’s ‘Well Planned City’ model, accommodating current and future capacity requirements from the public and private sectors, mobile operators and data centre providers. It can also act as the backbone for any future deployment of fibre to the home for the city’s residents. The Gigabit City project is critical for Aberdeen, which has become a national economic powerhouse accounting for 28% of Scotland’s GDP and in which 30% of the

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country’s top 100 businesses are located. It has the second highest broadband take-up rate in the UK, but an absence of any cable infrastructure. With a new competitive gigabit fibre infrastructure at its heart, it will leapfrog other Scottish cities to become the best digitally connected city in Scotland.

CityFibre CEO Greg Mesch commented: “We selected Aberdeen as it represents the perfect opportunity for a Gigabit City project. Its economic power, business make-up and absence of alternative network mean that Aberdeen will be in a position to take full advantage of this transformational digital infrastructure.”

As in CityFibre’s other Gigabit City projects, the rollout will be demand led to ensure the network reaches the businesses and commercial sites most in need. CityFibre will shortly launch a demand aggregation campaign allowing businesses to register their interest and help shape the network route.

Graeme Gordon, CEO of IFB, said: “We know how important connectivity services are to businesses in Aberdeen as there is always an increasing demand for more bandwidth. This new fibre network will provide a long-term foundation for businesses’ digital requirements, sending a signal to businesses that Aberdeen is a city with room to grow and progress, and providing confidence to future investors in the services that the city can offer.”

Based on a number of key sites selected in conjunction with IFB, planning for the network’s deployment is already underway and will initially focus on the centre and south of the city, including key industrial estates such as Tullos and Altens, as well as the north as far as Dyce and Bridge of Don. Subject to demand, the build programme will be extended to areas in the west of the city, such as Westhill and Kingswells.

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Commenting on the initiative, Aberdeen City Council leader Jenny Laing said: “We are hugely excited to see CityFibre and IFB bring this project to life, ensuring that Aberdeen City and Shire have a nextgeneration digital infrastructure in place to further economic growth over the coming years.”

BUSINESS NEWS

Orca Telecom Lands £600k Deal and Reports +70% Revenue Growth 70% growth in comparison to the previous year Aberdeen-based Orca Telecom has announced key energy sector contract wins worth an estimated total value of £600k since the 2014/15 financial year began. These wins, which include Enterprise North East Trust, Harris CapRock, ADC Engineering, Ocean Installer, ITC Global, Grayloc and ADD Energy, come just as the company reports revenue in excess of £1.7 million, a +70% growth in comparison to

the previous year, following the submission of its 2013/14 results. Consequently, the company has recently doubled its support team, ensuring services remain the number one priority. Rory McEwan, director at Orca Telecom, commented: ”We have experienced specific growth in hosted voice services, particularly with businesses who are now finding themselves in the position to

expand their services and move to larger or new premises. This is giving them the option to maintain business critical services at all times, whilst retaining the flexibility to retain numbers and features wherever their new location might be.” For more information on Orca Telecom, its services or to contact a member of the team, visit www.orcatelecom.co.uk or email interested@orcatelecom.co.uk

Here’s How to Code Your Way into Publishing The World’s First Job Post Written Entirely in Code Woto, the newest social media publishing space on the web with a user base of over 10,000, has released the world’s first graduate job description written entirely

in code. Whoever cracks the coded criteria first and applies for the job in code will be rewarded with a paid internship with woto. com, located at the prestigious Bartle Bogle Hegarty (BBH) advertising agency. With writing being an essential part of

the role, Woto saw no easier recruitment strategy than to post the actual job advertisement in code – a way to separate the wheat from the chaff. For more information on Woto, please visit: http://woto.com/about

Faith Simpson Expands into Huntly Elgin-based accountancy practice Faith Simpson has expanded by opening an office in Huntly. The six-strong team has taken over David Brown & Co as a result of David Brown’s recent retirement. The move allows Faith Simpson to retain two longstanding David Brown employees and plans are in place to create more local jobs in future. Managing director Faith Simpson, recently shortlisted for Scottish Female Entrepreneur of the Year 2014 at the Scottish Business Awards, is confident the move into Huntly could increase annual turnover by 50% within three years. She said: “Opening an office in Huntly is an important step forward for us and I am extremely proud to be taking the reins from such a well-respected firm of accountants. Our takeover of David Brown & Co allows us to retain staff and clients and we will strive to maintain the high level of service clients are used to.” Offering all chartered accountancy services including accounts preparation, personal tax returns, bookkeeping services and monthly management accounts and reporting, Faith Simpson also offers clients an in-house consultancy service. For further information about Faith Simpson, please visit www. faithsimpson.co.uk

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BUSINESS NEWS

New Business Park Launched in Energetica Corridor “Enerfield Business Park will help to energise the business environment in the North East”

A new energy efficient business park delivering more than 800,000 square feet of commercial development land in the north-east of Scotland has been officially unveiled. Enerfield Business Park, which is ideally positioned between Aberdeen and Ellon, has been formally launched as part of the

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Energetica programme, to provide high quality business units and storage yards for the energy and business sector in the region.

(pictured, centre), said: “The Enerfield Business Park is a fantastic opportunity for Aberdeenshire and it is great to see the project moving forward so quickly.”

Work on the first speculative site, which has been purpose built to meet the vision of Energetica, is currently underway. It will feature low carbon dependency and sustainable principles, with direct access to the planned Aberdeen Western Peripheral Route (AWPR) and will benefit from the future upgrading of the A90.

Energetica development manager, James Welsh (pictured, right) said: “This new business development, right in the heart of the Energetica corridor, will support one of the key priorities of our project, to attract high quality businesses into this area, encouraging greater investment and boosting jobs.”

Enerfield site developer, Andrew Booth (pictured, left), said: “With a short supply of commercial development land in Aberdeen, Enerfield Business Park will help to energise the business environment in the North East and attract global firms to the area.” Aberdeenshire

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Provost,

Jill

Webster

Enerfield Business Park will contribute to Aberdeen City and Shire Economic Future’s (ACSEF) vision of Energetica, creating employment opportunities and economic benefits for the wider areas, as well as a sustainable area to live, work, visit and invest.

OIL & GAS

Enhanced Drilling Opens UK Headquarters in Aberdeen “As a fast growing business, having the right base to continue our planned development is vital,” Norwegian offshore technology provider Enhanced Drilling, formerly AGR Enhanced Drilling, announced the opening of its UK headquarters in Aberdeen recently, as it ramps up its activities in the UK North Sea. The creation of the company’s new facility in the city’s Bridge of Don – its first permanent premises to be located in the UK – is expected to further strengthen its global presence. Officially opened by Enhanced Drilling’s CEO David Hine and VP for Europe, Svein Egil Steen, the ten-year lease represents a six-figure investment by the company. Recruitment is ongoing for the facility with a number of key roles already filled, including project management and business development. Since the company began operating in the Granite City in spring 2013, its Aberdeen-based workforce has mushroomed from just one person to 16 and it expects the team to grow incrementally by the end of 2014. Enhanced Drilling UK manager, Scott Bremner (pictured), said: “When looking for a site for our UK HQ building, we found the Bridge of Don facility to be the clear winner.

It offers modern and functional facilities and is a great setting for our staff to work in.

With three major North Sea contracts with

“As a fast growing business, having the right base to continue our planned development is vital,” continued Scott. “It is important that our existing customers in the UK see that we have the resources and support necessary to deliver our solutions and services to the highest standards.

being added to our portfolio in recent

a combined multi-million pound value weeks, it’s an ideal time to show our longterm commitment to the area through this investment.” For more information, visit www.enhanced-drilling.com

Downhole Products Celebrates Turnover Achievement Downhole Products, with global headquarters in Portlethen, has announced that it has achieved doubledigit turnover in its Asia Pacific region for the fourth consecutive year. The announcement that year-on-year growth has exceeded 45% follows the recent opening of a new office in Jakarta, Indonesia, in a move that is seen as crucial in ensuring Downhole Products is correctly positioned to capitalise on emerging markets. The global company – which is currently celebrating its 20th anniversary year –

now employs 13 people across the region and operates offices in Australia, Brunei, Vietnam and Indonesia with regional headquarters located in Kuala Lumpur, Malaysia. Asia Pacific regional manager, Alex MacGregor, commented: “This excellent result has been achieved due to considerable investment in both people and operations, meaning that we are now in a much stronger position to support and service our clients’ needs and expectations. “Since we opened the Vietnam office a year ago, we have been extremely impressed

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with the level of growth and opportunities, and we look forward to expanding this by recruiting more people to join the team.” Downhole Products president/managing director, Ian Kirk (pictured with country manager for Vietnam, Thang Nguyen), added: “We anticipate the success we have seen in Vietnam to be replicated in our newest office in Jakarta, further underlining our strong position in the region.” For further information, visit www. Downhole.org, email mail@Downhole.co.uk or call +44 (0) 1224 784411.

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OIL & GAS

People Development Expert Examines Discrimination Emma Spence, the founder and director of the people development consultancy, Solutions Store, presented her views on workplace discriminatory challenges affecting the oil and gas industry at a firstof-its-kind event hosted by the Society of Petroleum Engineers. The workshop, ‘Breaking the Cycle of Discrimination - Workplace Challenges in the Oil and Gas Industry’, took place between 1-2 October at Norwood Hall Hotel, Aberdeen, and brought oil and gas professionals together to discuss the discriminatory issues present in the industry. A keynote address by Minister for Energy Fergus Ewing MSP launched the two-day workshop. Emma Spence was joined by speakers from industry body Decom North

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Sea, and a number of major operating and service companies, which included Shell, ConocoPhillips, Halliburton and Schlumberger. Emma Spence (pictured), director of Solutions Store, said: “This thoughtprovoking workshop represented an exciting breakthrough in opening up the discussion of discrimination in the oil and gas sector. It offered a rare platform to examine the many discriminatory issues affecting the industry and gave a voice to those who feel passionately about stamping them out. “Gender inequity is one of the most widely publicised discriminatory issues in the predominately male-orientated energy sector. However, cultural diversity, age and religious prejudice are all issues of

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significant importance and ones that the industry must work together to eliminate. “I think new talent should be a big focus for the future, and how we attract and develop talent needs to be addressed – as opposed to continually shopping for experience. As, if we don’t create avenues to gain experience, we will run short quite quickly.”

OIL & GAS

Mintra Expands with Contract Win and New Headquarters

Mintra is also rapidly expanding internationally with the announcement of its first major contract win in Asia Mintra Training Portal has clinched a £1-million contract as the firm makes its first significant move into the Asian market. The company has also underlined its commitment to growth with a multi-million investment in new Aberdeen headquarters as it seeks to maximise opportunities at home and overseas. The new 10,000-square foot development on Carden Place in the city’s west end incorporates an innovative blended learning facility, which is focused on the delivery of a number of key safety critical subjects. These include control of work, isolations, and authorised gas testing as well as pressure and leak testing. The facility is expected to cater for around 7,500 personnel this year alone, with a number of the courses being formally certified by industry bodies such as OPITO and IOSH. Peter Conner, Mintra Training Portal managing director, said: “The industry has been seeking ways of improving the effectiveness of training and learning outcomes in these key safety critical subjects. Our strength and differentiation lies in our ability to amalgamate a variety of learning techniques and technologies in

order to optimise learner attainment and course duration. Following the multi-million pound investment in our new modern facilities, we are now able to expand our offering and capacity to meet the industry’s needs.” Mintra is also rapidly expanding internationally with the announcement of its first major contract win in Asia, following the recent establishment of a regional office in Malaysia. The £1-million agreement with a major operator in the region involves the provision of 100 localised online courses in both English and Malay Bahasa languages.

bns 1/3

Sally Finnie (pictured), the company’s business development director, added: “This is an extremely exciting time for Mintra. We are now providing learning, training and competency solutions to 500 oil and gas companies, and this recent contract win helps to cement our presence in the Asia-Pacific region, building upon our existing international business in Europe, the Middle East, South America, and Africa.” Further information is available at www.mintra-uk.com

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OIL & GAS

Wireline Engineering Bolsters its Presence in South East Asia Aberdeen-based wireline and well intervention technology specialist Wireline Engineering has further expanded its operations in South East Asia, initially investing over £150,000 in a new service base in Kuala Lumpur, and significantly increasing its personnel in the region.

Wireline Engineering has further expanded its operations

The new 1600-square foot storage and maintenance facility will be managed by Jimmy Chong, who has joined the local team as service manager in Kuala Lumpur (KL). Jimmy has a wealth of experience in well intervention equipment and services, as well as wireline field operations. Wireline Engineering chairman, Bill Petrie, said: “South East Asia is seen as a key development opportunity for the company and we are currently enjoying significant regional growth. The ongoing investment

in new premises and personnel will greatly improve the support we are able to offer our customers as our activities expand. “Having our own facility will also allow us to introduce and support new technologies that we have previously been unable to offer in Malaysia. That is good for us and good for our customers across the region. “We have also been increasing our technical sales team based in Malaysia. We currently have five staff located in KL and, for the first time, we also have a sales manager based in Miri to provide closer support to our customers in East Malaysia.” Wireline Engineering has plans to increase its staff by three over the next year and is currently preparing to move into larger office premises in KL to facilitate this growth.

Oilgen Provides Expertise for Landward Licensing Round Oilgen, which has offices in Aberdeen and Houston, has spent two years researching and developing the numerical simulation and reservoir-flow models or no production data exists. The integrated service provides a predictive solution for shale wells by using commercial software An engineering consultancy has developed an innovative reservoir modelling system to support companies participating in the UK’s 14th Landward Licensing Round. Oilgen (team pictured), which specialises in high-tech reservoir modelling, has reinvested a significant percentage of its profits to develop the service, which will

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allow companies applying for licenses to accurately predict the performance of UK shale gas and oil wells. Oilgen, which has offices in Aberdeen and Houston, has spent two years researching and developing the numerical simulation and reservoir-flow models, which can evaluate the future production profiles and economics of unconventional UK shale plays, where little

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tools and proprietary techniques, enabling companies to more accurately forecast performance. After successful testing on the Eagle Ford play, the models are now ready to be deployed on immature plays, including those in the most recent onshore licensing round.

OIL & GAS

Fisher Offshore Increases Product Portfolio as it Targets New Markets A north-east specialist in lifting, deck machinery, subsea tooling and excavation has extended its relationship with one of the world’s leading suppliers of industrial equipment as it targets new opportunities within the energy and manufacturing industries. Fisher Offshore is already one of the UK’s largest providers of Ingersoll Rand winches and hoists, and recently extended this distributorship to include tools as it looks to increase its integrated offering to both its current and prospective clients. The increase in product portfolio will see Fisher Offshore house the largest stock of Ingersoll Rand air-powered tools in the UK, with a range of cordless tools, service tools, and industrial tools being made available for sale.

The move has also seen the north-east company become an OEM certified service centre for the range of tools and it is now also equipped to carry out HAVS (hand and arm vibration syndrome) testing. Graeme Brand, air products manager at Fisher Offshore, is delighted with the extension of the relationship with Ingersoll Rand and is looking forward to the prospect of potentially entering into new sectors as a result: “It is development like this that will allow Fisher Offshore to continue to provide a fully integrated service to current and prospective clients, and it’s pleasing to be in a position to increase our offering. It’s an incredibly positive step for the company as a whole.” For further information, fisheroffshore.com

visit

www.

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OIL & GAS

From the Battlefield to the Oilfield Trading foreign battlefields for a new love of flexibles, a former British Army officer demonstrates the significant role transferable skills can play in addressing the skills shortage within the oil and gas industry. awarded the US Military Outstanding Volunteer Service and US Army Commendation medal for delivering aid to local people in Northern Afghanistan. This led to him being selected as the captain in charge of the Queen’s Royal Guard at Edinburgh Castle and Holyrood Palace, personally hosting Her Majesty during several private functions.

Nigel Anderson (pictured) spent the last decade in the Armed Forces, working as a cavalry officer in The Royal Scots Dragoon Guards. In addition to leading soldiers on active service in Afghanistan, he participated in many exercises in Canada, Germany, the UK and, most recently, as a principle advisor to The Royal Jordanian Armed Forces. The 35-year-old has now joined Aberdeen-based FlexTech, a leading flexible pipe and marine hose consultancy, taking a multi-faceted projects and business development role. He said: “The skills I honed as an officer have helped me adapt to the new role in the oil and gas industry. Having previously worked in demanding, dynamic and frequently hostile environments has helped to develop my leadership and management skills, and the ability to think strategically under pressure, while successfully getting the job done.” With the energy sector striving to close the gap on the growing skills shortage, many oil and gas companies are recognising

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Autumn 2014

the benefits of recruiting ex-military servicemen and -women, who bring with them an extensive range of transferable skills and global experiences. Nigel is a leading example of this. He began his military career spending a year undergoing officer training at the Royal Military Academy, Sandhurst. After successfully completing this world-class leadership, management and personal development course, he joined The Royal Scots Dragoon Guards as a tank commander and troop leader before climbing the ranks to operations manager. Throughout his 10 years touring Germany, Canada and Afghanistan, Nigel gained not only life experience, but vital management skills as direct line manager for 110 staff, while also leading a specialist team and motivating and mentoring a battalion of Afghan officers and soldiers. Nigel achieved significant successes, both personal and professional, throughout his military career, which has bolstered his career progression. In 2008 he was

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Although he thrived in his position, Nigel – having achieved all he set out to in the army – decided to take on a new challenge. His final stretch in the army saw him spend two years in Amman, Jordan, where he held the position of senior staff officer advisor at the Royal Jordanian Military Academy, setting up bespoke training for Jordanian Special Forces and working as project manager to the general in charge of the academy. Nigel said: “Having spent almost a decade in the army, and having achieved everything I set out to accomplish, I decided I needed a fresh challenge. The oil and gas industry provided me with an exciting opportunity to develop my existing expertise, whilst at the same time allowing me to learn a new skill set. “I find the scale and scope of the industry fascinating and, having joined FlexTech, I look forward to working on new challenges and maximising the opportunities presented by working within a professional dynamic organisation. “The team at FlexTech has considerable experience working across many disciplines in the industry, yet has the ability to remain adaptable whilst gaining the most from everyone’s different backgrounds and skills. I am looking forward to my future at FlexTech and above all contributing to the growth and success of the company and industry in the years to come.”

OIL & GAS

Heerema-AF Gruppen Consortium Awarded Murchison Decomissioning Contract CNR International has taken a significant step towards the decomissioning of its Murchison platform with the award of one of the project’s major contracts. The Heerema-AF Consortium – comprising Heerema Marine Contractors Nederland SE and AF Decom Offshore UK Limited (AF Gruppen ASA’s wholly owned subsidiary) – has signed a contract with CNR International (UK) Limited (CNRI) for the removal and disposal of the North Sea installation.

disposal (EPRD) of both the topsides and jacket structure – with a total weight of approximately 37,000 tonnes. The contract assumes commencement of the engineering work in 2014. Offshore work will commence in early 2016, with the removal and final disposal work continuing until 2020.

The planned hybrid removal method allows the efficient disposal and recycling of the platform, combining short sailing times for the piece-small tonnage (approximately 10,000 tonnes) to a UK disposal yard and direct offloading for the remainder from Heerema’s heavy lift vessel at AF Environmental Base Vats.

The Murchison oilfield (pictured) straddles the UK/Norway median line, with the platform located east of the Shetland Islands on the UK Continental Shelf. Murchison, one of the largest steel jacket platforms in the North Sea, was installed in 1980 and finally ceased production in February 2014.

The Heerema-AF Consortium has succeeded in developing an innovative hybrid removal methodology consisting of piece-small removal and heavy lift reverse installation. As a result, Murchison will now remain manned for an additional year to support the consortium’s offshore deconstruction and removal activities, together with all the associated services such as accommodation, logistics, operations and maintenance.

The Murchison field, owned and operated by CNRI, with a 77.8% working interest and Wintershall Norge ASA, with a 22.2% working interest, was discovered in July 1975 and, at the height of its production, peak oil of 150,383 BOPD was achieved on December 26, 1982. Over its life, the Murchison field has produced around 400 million barrels, representing a recovery factor of over 50%.

The award covers a major contract for engineering, preparation, removal and

Zilift Invests in Manufacturing and Production Capabilities “The technology has already generated a great deal of interest and orders” Zilift Ltd, innovators of artificial lift solutions, have invested in manufacturing and production capabilities as interest for game-changing technology increases. Zilift has made further investment into assembly line equipment and is increasing staff numbers in both its UK and US bases in response to early demand for the technology firm’s groundbreaking TorqueDrive™ innovation. Substantial product orders have been

made by a major Californian heavy oil operator, after TorqueDrive™ exceeded initial field trial expectations in the US. Currently undergoing additional field trials in Bakersfield, California, the technology looks set to transform heavy oil artificial lift operations globally. Iain Maclean, CEO of Zilift, said: “TorqueDrive™ is powered by the smallest downhole artificial lift motor to be successfully installed in an oil well

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globally, the most significant advancement in downhole electrical machine design for thirty years. “The technology has already generated a great deal of interest and orders, which has resulted in Zilift investing further in manufacturing and production capabilities and increasing staff numbers as successful field trials continue.” For more information about Zilift, please visit: www.zilift.com

Autumn 2014

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OIL & GAS

AGCC to Examine Effect of Referendum on Energy Sector

The effect of the Scottish referendum process on the oil and gas sector will be revealed in a series of regular studies of the industry. The effect of the Scottish referendum process on the oil and gas sector will be revealed in a series of regular studies of the industry. The 21st Aberdeen & Grampian Chamber of Commerce Oil and Gas Survey will be completed by oil and gas operators and contractors following the Better Together victory in the referendum result announced last month. The industry was a key battleground during the recent campaign, with debates on recoverable oil, revenues and reserves hitting the headlines due to their influence on the Scottish economy. Now the industry will be asked whether the referendum had any impact on their investment decisions in the period between the Edinburgh Agreement in October 2012 and September 2014, as well as which policy areas in particular, following the result, are important to their future decisions. The survey is independently conducted by the Fraser of Allander Institute and is sponsored by law firm Bond Dickinson. In the most recent survey published in

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June, almost half of firms (45%) said the Scottish referendum had been impacting their plans and investment proposals. Views on the effect of Scottish independence on the sector were split at that point, with 38% of respondents saying a vote in favour of independence would make little difference to the sector, 18% saying it would be positive, and 12% saying it would be negative. There was a feeling of uncertainty in the remaining one in three firms who said they felt it had been difficult to reach a clear view, underlined by one respondent explaining that “with no side giving any clear answers as to how they will help the UKCS it is difficult to see how Scotland would benefit either way”. The biannual survey has monitored trends in the industry since its inception in 1996, looking at business optimism and activity both in the UKCS and internationally. The autumn survey also historically looks at staff recruitment and retention, and last year nearly every contractor said they were looking to recruit in the next 12 months. However, most companies reported recruitment and retention difficulties in

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the autumn 2013 survey, with contractors facing their most significant difficulties since 2007. Three in four operators (75%) and two thirds of contractors (68%) said they were suffering recruitment difficulties. James Bream, research and policy director at Aberdeen & Grampian Chamber of Commerce, said: “The referendum debate threw the oil and gas industry into the spotlight in recent months and it will be fascinating to see how much effect this had on the recent trend for optimism in this series of surveys. “Previous surveys have been used by both the Scottish and British Chambers of Commerce to develop a national energy policy so the results are sure to be closely scrutinised.” A wide range of operator, contractor and service companies received the electronic survey in September and the results will be published at the start of December. Feedback will be used to track sector performance and to understand the issues faced by respondents within the sector and in particular how these relate to and impact upon the wider business community that the Chamber represents.

OIL & GAS

Wood Review Graham Alexander, head of oil and gas and partner at Johnston Carmichael, comments on why the Wood Review must be swiftly implemented following the referendum outcome The Referendum process now gives us certainty over some aspects, with Europe and currency being now put on the back burner. However, changes ahead are inevitable, and not just for Scotland. Further devolution of powers and taxes will happen and the announcement of Lord Smith of Kelvin’s appointment to deliver draft legislation by January 2015 will mean that we don’t have to wait for long. It’s worth reminding ourselves that the Scottish Income Tax provisions are already on the statute books (rate to be announced) and there is already in place the legislative framework to enable further devolved powers to be implemented with relative ease. We still expect the Scottish Income Tax rate to come into effect in April 2016 and all businesses will need to start to consider what this means for them. Some commentators consider the 50% rate of income tax likely to return in Scotland. This may be ill advised as it’s now the time to have a level playing field within the UK and to give businesses and employees certainty. Other changes resulting from the Scotland Act 2012 are still expected to come into effect on 1 April 2015, with tax raising powers for Stamp Duty Land tax and Landfill Tax being devolved to Scotland in the form of Land and Buildings Transaction Tax and Scottish Landfill Tax. The rates for these new taxes are expected to be announced in October 2014 when the draft budget is introduced to the Scottish Parliament. Anyone considering property transactions will be eagerly awaiting the rates. Now that the vote is known, we look forward to both the Scottish and UK governments working closely together to maximise the

recovery of the UK’s offshore oil & gas resource. The oil and gas industry is a fundamental part of the Scottish and UK economy, a fact only highlighted through the referendum campaign. It is therefore important that the governments work together to swiftly implement the recommendations of the Wood Review, to minimise uncertainty and create an environment for maximising the recovery of oil and gas in the North Sea, for the long term benefit of the UK and communities in which these businesses operate. The industry must also continue to focus on cross-sector efforts to bring

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escalating costs under control to protect and enhance the long-term prospects of the industry and thereby the Scottish and UK economies as a whole. Together with maximising economic recovery from the UKCS, both the Scottish and UK Governments also need to continue to work to strengthen the oil and gas industry supply chain across Scotland and the UK, particularly as part of the focus on enhanced cost control. This supply chain and service industry to the oil and gas sector is a key part of Johnston Carmichael’s client base, who we will continue to support and work closely with.

Autumn 2014

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FINANCE NEWS

Scottish SMEs Unaware of Alternative Finance Scotland’s thriving SME sector could be boosted further through the use of other forms of finance – on top of traditional lending channels, according to broadcaster Andrew Neil. Speaking at Bibby Financial Services ‘Fit For the Future: Financing Business Aspirations’ event in Aberdeen, Neil (pictured) said there was an evident lack of awareness of other forms of funding, such as peer-to-peer lending and invoice finance. Mr Neil said: “Working capital is key for growing businesses, but many aren’t aware of the options available beyond traditional bank loans and overdrafts. There are a

number of funders throughout the country willing to lend to SMEs, and it’s important that owners and advisors consider the most suitable form of finance, which could mean spreading their gaze beyond the banks. Now is a good time for businesses to borrow while interest rates are still low.” According to a recent study by event host, Bibby Financial Services, 42% of businesses use overdrafts as their main

source of funding and 37% use bank loans, with only one in five leveraging private equity, crowdfunding or invoice finance. The ‘SME Sentiment Scotland’ report also found that only 14% of businesses had applied for funding over the past 12 months. Alan Anderson, head of sales for Bibby Financial Services Scotland, said: “Having the right funding in place, coupled with the right finance partner is critical for growing businesses. We know the intermediary network in Scotland is strong, and the brokers and introducers we deal with tell us that the SME environment is thriving. However, bank lending continues to contract as they focus on the mortgage market, but alternatives are available. “More businesses throughout the country are turning to the flexibility of invoice finance and other non-traditional forms of funding than ever before, but there’s still a long way to go in raising awareness. In July alone, across the UK, we provided £40 million of funding to SMEs. We have capacity to increase our funding in Scotland significantly, which would not only boost local businesses but also fuel local economies.”

KPMG to Deliver Finance in the Oracle Cloud KPMG have announced a collaboration with Oracle to bring financial and tax business transformation expertise together with technology know-how, providing clients with cloud-based financial processing, analytics and reporting tools via the Oracle Cloud. The joint initiative will be known as ‘KPMG

will work together to enable clients with

Powered Finance’. Through this, KPMG

more agility in the way they can report.

aims to make a range of finance and tax

Collating and storing data in the Oracle

transformation services available to FTSE

Cloud will also enable clients to measure

350 organisations, working with Oracle to

their performance and benchmark it

enable greater control over the way business

to high performing businesses in their

finance functions are managed. They will

own sector and across vertical markets.

begin by offering core processes in the

Patrick Fenton (pictured), head of financial

Oracle Cloud. KPMG Powered Finance has

management at KPMG, said: “Too often

also been designed to increase the speed

we hear about fast-growing firms being

with which organisations can transform

constrained by their finance capability or

their finance functions. Oracle and KPMG

because the software they bought into

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Autumn 2014

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during their embryonic years is no longer able to support their needs. By teaming up with Oracle, we are demonstrating our commitment to technology-driven change, with the crucial recognition that cloud-based tools and programmes give organisations the freedom to adapt and grow.” Mark Newton, vice president Sales UK Applications Oracle, adds: “In today’s dynamic business environment, customers need to leverage digital technologies such as cloud and business analytics to continuously add value and innovate, helping transform their businesses to stay ahead of the competition.”

ADVERTISING FEATURE

What the Government Pension Reforms

Mean for Business Gary Walker & Co. Ltd is a Senior Partner Practice of St. James’s Place Wealth Management. We specialise in providing high quality personal advice on many aspects of wealth management and financial planning, advising clients of widely differing financial resources and of all ages. Additionally, we assist businesses in the increasingly complex area of corporate financial planning, providing guidance on pensions, protection for directors, key employees or shareholders, tax reliefs and aspects of exit strategy planning. One key area affecting the majority of businesses at this time is the Government pension reforms otherwise known as Workplace Pensions or Auto Enrolment. Key Questions for Auto Enrolment Auto enrolment cannot be ignored; legislation clearly puts the responsibility firmly on the shoulders of employers to operate a Qualifying Scheme correctly for their employees. Failure to comply will result in a series of penalties and fines. So, as an employer (whether a company employing thousands or a sole trader with a single employee), while the resulting actions may be different, the key questions are the same: • When do I need to have a Qualifying Scheme in place? • Who do I need to enrol? • How much will this cost? • What choices do I have in selecting a Qualifying Scheme? When do I need to have a Qualifying Scheme in place? The ‘staging date’ is the date by which you must have established your Qualifying

Scheme. It varies between October 2012 and April 2017 depending on the number of employees on your payroll as at 1 April 2012. There is an interactive tool available from The Pensions Regulator at www. tpr.gov.uk/automatic-enrolment which enables you to find out your staging date. Who do I need to enrol? All employees, whether part-time, full-time or contractors aged 22 to State Pension Age who earn over the ‘earnings trigger’ in a pay reference period (£192.00 if employees are paid weekly, £833.00 monthly and £10,000 annually for 2014/15) must be auto-enrolled. Employees outside these parameters simply need to receive a communication about their rights to join the scheme. How much will this cost? The statutory minimum contribution into the scheme will be 8% of an employee’s ‘qualifying earnings’, made up of an employer’s contribution of at least 3%, member’s contribution of 4% and 1% from the Government in the form of tax relief. The ‘qualifying earnings’ will be total earnings falling within an earnings band of £5,772 to £41,865 in 2014/15. What choices do I have in selecting a Qualifying Scheme? There are a variety of different pension schemes that can be used for Auto

Enrolment, from defined benefits schemes to personal pension plans. Your ultimate strategy for Auto Enrolment could be a multi-scheme solution with your workforce segmented into different schemes. Your solutions will depend on the answers to the following questions: • Do you have an existing scheme(s) in place for all your employees? If so, you can continue with this scheme as long as it meets the conditions for Auto Enrolment. • Do you only offer pension benefits to some employees, eg senior management? If this is the case you can continue with the scheme for these existing members (as long as it meets the conditions for Auto Enrolment) however you will need to set up a new scheme for all other employees. It is unlikely that you would want to start a new defined benefit scheme to satisfy your Auto Enrolment requirements. Where, on average, contribution levels are likely to exceed £100 per month per employee and you employ more than ten employees, you may want to consider setting up a group personal pension scheme. Alternatively, the offerings from NEST, The People’s Pension or NOW: Pensions may be an appropriate solution. For further information, please contact Shona MacAskill of Gary Walker & Co. Ltd on 01224 202460 or email shona. macaskill@sjpp.co.uk

The Partner Practice represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more of which are set out on the Group’s website www.sjp.co.uk.products. The ‘St. James’s Place Partnership’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.

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Autumn 2014

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FINANCE

Scottish SMEs Confident of Funding for Investment Plans · SMEs confident loan applications will be accepted · Businesses believe conditions are better than 2013 but caution remains on investment plans · Clydesdale Bank develops package of lending initiatives to support business growth The majority of Scottish SMEs believe they would be successful if they applied for a bank loan to fund investment plans, with three in five feeling confident of acceptance, according to new research by Clydesdale Bank. More than half (56%) also said they would feel even more confident in approaching their lender for new borrowing to fund investments, such as recruiting new staff, or purchasing equipment and premises, if their bank were to ring-fence money to help their business. Clydesdale Bank’s research, which surveyed more than 850 SMEs across the UK, including 223 in Scotland, suggests investment in new equipment, premises and staff are now top of priority lists. While some caution still remains, more than a third (40%) of businesses are more likely to invest in growth opportunities than they were a year ago, pointing to increased confidence in themselves and the economy. Nearly half (43%) of Scottish SMEs feel there are more opportunities for growth now than the same time last year. The sense of improved economic conditions felt by SMEs across the UK is mirrored in the latest official statistics, showing UK GDP was 3.1% higher for the second quarter of this year compared to 2013. Scott McKerracher (pictured), East of

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Autumn 2014

Scotland director of business and private banking with Clydesdale Bank, said the survey suggested Scottish SMEs are increasingly confident the economy is moving in the right direction. The survey also revealed that 37% had reduced levels of debt due to the recession. Nearly two in three businesses (64%) are looking for lenders to make it easier to borrow back the money they had repaid. The findings come as Clydesdale Bank introduces a series of lending initiatives for new and existing customers designed to support the growth of small- and mediumsized businesses. The SME lending initiatives are: • Extending the repayment term of existing loan facilities for appropriate customers. This will help to improve cash flow by reducing monthly loan repayments and allow for re-investment in their business. • Re-advancing loans, allowing appropriate business customers access to draw repayments they have already made on a loan for re-investment within their business. • Funding to allow businesses to buy their trading premises and, depending on the circumstances, this could be up to 100% of the premises’ value.

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• Capital-free periods: Clydesdale Bank will consider capital ‘free’ periods up to 5 years for customers in certain situations, such as where they are investing in their business. In addition, a series of initiatives providing businesses with an improved level of working capital through invoice finance and through a range of competitive asset finance solutions are being introduced. All are designed to provide businesses with additional, more flexible funding, to meet their growth aspirations. To support these new initiatives, the bank is investing in relationship managers who work directly with businesses, allowing more face-to-face time with customers. Scott McKerracher continued: “We believe many businesses have the appetite to invest but some remain uncertain as to whether their bank will support them, or how they might go about securing additional funding. The starting point is a conversation with someone who understands you, the potential of your business and the sector in which you operate. “We also understand that speed of decisionmaking is important so, as well as providing customers with a clear timetable of the process from the outset, we are working hard to ensure it is quicker from start to finish and that businesses have a clear idea of how to ensure their lending applications have the highest chance of success.” In a bid to improve the consistency of decision-making on lending applications, Clydesdale Bank will join the Better Business Finance appeals panel to test its credit decisions, an external and independent body set up by the British Bankers Association.

FINANCE

No Strings Attached How employee shares can be used to incentivise staff What’s the catch? That simple question is the understandable response when someone feels they are being offered something that’s too good to be true. So when an employee is offered a stake in the company they work for, they can often pass up the opportunity because they fear there may be strings attached. But attitudes are changing and increasing numbers of firms are giving staff the chance to become shareholders – an incentive which could have a range of benefits for both employees and employers.

tax deduction equal to any gain in value when the employee exercises the option. As long as certain conditions are met, EMI can be an effective way for businesses to incentivise staff and encourage key personnel to stay with the company and reap financial rewards by contributing to its success and growth.” To qualify, staff must spend at least 25 hours a week working for the company, or at least 75% of his or her total working time if hours are shorter, and own no more than 30% of the ordinary share capital.

Employment-related share schemes offer businesses the option to deliver equity to employees, helping them reward and retain key people, while enjoying potential tax benefits themselves. But as Stuart Watson (pictured), director of tax at chartered accountancy firm Hall Morrice LLP, points out, it is vital to give employees as much information as possible at the outset. “It is unfortunate that many people are suspicious of schemes like this: Employees are not obliged to take up the offer and some may be put off if they feel there is a hidden catch. But the fact is that share incentive schemes can be extremely beneficial for both the employer and the employee,” he explains. Enterprise Management Incentives (EMI) – where employees can be granted options, giving them the right to buy shares worth up to £250,000 without paying income tax or national insurance – have been popular in the UK for more than a decade. The fact that potential benefits are shared between employers and employees makes EMI an attractive option for small- and mediumsized enterprises, which are eligible as long they meet certain criteria, including having a workforce of no more than 250 people and gross assets of less than £30 million. Stuart says: “Under an EMI scheme, employee gains are normally taxed at 10% or less after they have taken up the options and disposed of their shares – rather than the 20% or 40% income tax rates on income payments. And companies generally don’t pay national insurance contributions on the shares and can benefit from a corporation

Businesses can grant tax-advantaged share options to any number of qualifying employees up to a total share value of £3 million, and must notify HMRC of an award of EMI options within 92 days of the grant to qualify for tax relief. The scheme can be operated on a discretionary basis and doesn’t have to be offered to all employees. For their part, companies issuing the options must not be owned or controlled by any other company and must be trading mainly in the UK. Some types of businesses are excluded from EMI, including those whose main activities involve property development, some types of financial services and operating care homes. Stuart continues: “It is very important for businesses considering using EMI schemes to take the appropriate advice and ensure they are meeting the requirements as laid out by HMRC. It’s also worth noting that tax advantage status can be lost if any of the

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conditions are broken or a disqualifying event occurs, and option holders don’t exercise those options within a certain timeframe.” While EMI remains popular among growing businesses, another option for employers came into force in September last year with the creation of the UK government’s Employee Shareholder status scheme. The initiative allows companies of any size to offer employees shares worth at least £2,000. The shares are gifted to the employee and any value in excess of £2,000 is taxable as employment income on the employee. However, the shares are not subject to capital gains tax when sold up to a value of £50,000 at issue. However, as part of the agreement, employee shareholders must enter into a special form of contract in which they agree to reduced employment rights, such as: • No unfair dismissal rights – except on the grounds of discrimination or health and safety • No right to statutory redundancy pay • Reduced rights to request flexible working and time off for training • Increased notice period of intention to return to work from maternity or adoption leave from eight to 16 weeks • These rights are lost even after the shares are sold, unless the parties agree to change the terms of the contract. “Before deciding whether to become an employee shareholder, the individual must, with the help of the appropriate advice, consider the potential gain in terms of the share value against the rights they are giving up,” adds Stuart. “Like EMI, companies can choose to offer the scheme to selected employees only and can benefit from corporation tax deductions – which the government believes makes it particularly attractive to fast-growing businesses. “There are a number of options available to companies looking to retain and incentivise staff to maintain continuity and aid growth. At Hall Morrice we help businesses decide what is the right scheme for them and then support them through the process.”

Autumn 2014

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FINANCE

Expert Guidance on Taxing Issues In the second of our features, Sheena Anderson, one of the founding partners of Anderson Anderson & Brown LLP, continues to answer some tricky taxation questions for Business Now readers. Q. I am about to sell a property which I used to live in, but have since rented out and my solicitor mentioned I may have to pay capital gains tax. How much do I have to pay and when is it due? A. Your Capital Gains Tax (CGT) liability is calculated on the difference between the selling price and the amount originally paid for the property. This gain can be reduced by deducting expenses incurred during the purchase and sale, including solicitors’ fees and stamp duty. If you undertook improvement works to the property, these can also be deducted depending on the nature of the work carried out. If you lived in the property, then part of the gain will be exempt from CGT. The exemption covers the period you lived in the property plus the last 18 months of ownership, regardless of where you lived at that time. For example, if you owned the property for 10 years in total and lived in it for 18 months, the exemption would be three tenths of the overall gain, being the 18 months you lived in the property plus the final 18 months of ownership. Where the property has been let, an additional relief is available called lettings relief. This can exempt up to another £40,000 of gain in addition to the relief for living in the property. If after applying these reliefs your gain is not fully covered, you are also entitled to an annual exemption of £11,000 to reduce the gain further. The balance of the gain is then chargeable to CGT at either 18% or 28%, depending on whether you are a basic or higher rate taxpayer. The tax liability will be due for payment by 31 January after the tax year of sale. For example, if the sale is made in

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September 2014, the tax will be due by 31 January 2016. Q. My rental property is unfurnished, but I need to replace some of the white goods. Will I get tax relief for these costs against the rental income? A. In short, tax relief is no longer available for the cost of replacing furniture in unfurnished properties. HM Revenue & Customs removed the renewals allowance from 6 April 2013, although relief is available for some items where the expenditure is viewed as a repair to the property itself, such as integrated white goods, boilers and air conditioning systems. Although it can be more expensive to repair items, you should consider whether

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after tax relief, it is more cost effective to repair rather than replace the white goods. Repairs are allowable in full and, if you are a higher rate taxpayer, it may be worthwhile paying extra for a repair and obtaining tax relief rather than replacement where no tax relief is available at all. Q. I would like to give my grandchildren some money but don’t know what the consequences of this are for Inheritance Tax. A. You can give away £3,000 in any one tax year free from IHT and carry this forward for one year. For example, if you did not make any gifts in the year ended 5 April 2014, you could give away £6,000 in the year to 5 April 2015. A further gift of up to £250

FINANCE can be made to any number of people in a tax year and this will be covered by the small gift exemption, again free of IHT. If you are planning to make larger gifts, then provided you survive for seven years from the date of making the gift, it will be free of IHT. Q. I am Scottish, but my wife is German, and I have heard that the spouse exemption for Inheritance Tax may not be available to us. A. Unfortunately in your case this may be correct. If you were to transfer funds to your wife while she is non-UK domiciled, the spouse exemption is restricted to a cumulative total equal to the nil rate band, which is currently £325,000. This exemption has recently been increased from £55,000. However, it is still not nearly as generous as the complete exemption available to UK-domiciled spouses. If, however, your wife has been resident in the UK for a minimum of 17 out of the last 20 years, she will be treated as having acquired a deemed domicile in the UK for IHT purposes. In this case a complete spouse exemption will apply as for UK domiciles. From April 2013 it is

also possible for a non-domiciled spouse to make an election to be treated as UKdomiciled for IHT purposes. Making the election will mean that transfers between spouses are fully exempt from the date of the election. It will, however, also mean that worldwide assets are within the scope of UK IHT, rather than just UK-situated assets.

is known as ‘capped drawdown’. The new rules mean that in any pension year you can now withdraw up to 150% of an amount, commonly referred to as an ‘equivalent annuity’. This was previously capped at only 120%.

Q. I am approaching pension age and have heard that there is now more flexibility as to how I can access my pension savings. A. From March 2014, all pension scheme members over the age of 60 with total pension rights of £30,000 or less may take the whole pension fund as one or more lump sums. This replaces the previous lower pension savings limit of £18,000. Further flexibility is also available to pensioners with other relevant income of at least £12,000. They will qualify for ‘flexible drawdown’ and face no limit on the amount they can take each year as drawdown income. Pre-March 2014, the minimum income threshold was a lot higher at £20,000. If you do not fall within the above categories, it is likely that you will be subject to what

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Sheena heads up the private client tax department and advises individuals, partnerships and familyowned companies on both personal and corporate tax matters, and has particular expertise in capital taxes. She has considerable experience in estate planning and inheritance tax planning, property development and property investment.

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LEGAL

Law Awards Success for Patience and Buchan An Aberdeen woman has won a prestigious accoladea at one of the Scottish legal profession’s top award events. firm to date, always willing to go the extra mile for colleagues and clients alike. “For a small north-east firm to have won two different awards in consecutive years is a terrific achievement. It is testament to the hard work put in by the entire team at Patience and Buchan to provide an unrivalled level of service to all our clients.”

Paula McCombie, of family law specialist Patience and Buchan, was honoured with the Chairman’s Award at the Law Awards of Scotland 2014. Paula (pictured receiving her award from Tam Cowan, left, and Magnus Llewellin, editor of The Herald) received the award having been chosen by Hector MacQueen, of the Scottish Law Commission, as his personal favourite from all of this year’s entries. The glittering black tie dinner, one of Scotland’s premier legal events, was held at the Radisson Blu Hotel in Glasgow.Paula was also a finalist for the Paralegal of the Year award. Patience and Buchan was also nominated for the Family Law Firm of the Year award but, having won the honour at last year’s event, narrowly lost out this time.

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Paula McCombie first joined the legal profession in 1983 as an office junior for and thereafter as secretary to Iain Patience. Encouraged by Iain, she attended night classes and day release, qualifying as a paralegal in 1996. Paula McCombie said: “I’m absolutely delighted to have received this prestigious award. It’s a wonderful feeling to have been recognised by the chairman in front of a packed audience. I never would have believed that I would have won, so I’d like to thank everyone connected to Patience and Buchan for encouraging me to go for it.” Lorna Buchan, a founder and partner at Patience and Buchan, said: “This award is well deserved for Paula and the entire team is incredibly proud of her. In her time with the firm she has proven herself to be a vital component in the development of the

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In a statement prior to announcing Paula as the winner of the Chairman’s Award, Hector MacQueen, of the Scottish Law Commission, said: “The recipient of this year’s award has been with their firm for the past 30 years. She’s not only invaluable to the firm, but also to the clients, who benefit from her no-nonsense, unflappable attitude and determination to succeed on their behalf. “As well as being a full-time paralegal, she also doubles up as an office manager, cashier, recruiter and general all-round problem-solver. She has been described by her clients as ‘amazing,’ ‘fantastic,’ ‘supportive’ and ‘so reliable.’” With Paula’s boss often engaged in court or meetings, she is regularly the first, and most accessible, point of contact for clients, able to answer the vast majority of their legal queries on the spot. Her extensive legal knowledge is trusted by both clients and the firm’s partners. In addition to her full-time paralegal duties, Paula has added responsibility as office manager, cashier and recruiter as well as training and mentoring colleagues.

LEGAL

Warning if Obese Classed As Disabled

A landmark legal bid to have obese people officially classed as disabled could have “widespread and expensive” consequences for businesses, a leading Scottish law firm has warned. The Advocate General – the European Union’s most senior legal advisor – has ruled that being overweight qualifies as a disability following the sacking of Karsten Kaltoft, a 25-stone childminder from Denmark. His opinion needs the final backing of the European Court but, if ratified, it will force widespread changes in the way bosses deal with staff, according to Aberdein Considine. Employers would have to find ways of accommodating overweight workers so that they are not at a disadvantage to their slimmer colleagues. It could also offer crucial protection to offshore workers set to fall foul of new helicopter safety legislation, which will limit the size of people travelling to oil and gas platforms. “It is easy to see that with obesity on the increase, the cost to the state and private enterprise of ‘fat rights’ may be too much for the UK Government to bear,” said Neil Fraser, employment law partner at Aberdein Considine. The court’s final ruling will be binding across the European Union, including the UK. It follows a similar employment tribunal case in England last year where a judge decided a 21-stone man did qualify as disabled. Mr Fraser added: “The implications of the English decision have still not been fully felt, and a similar decision by the European Court may bring these issues into sharper focus. The Equality Act 2010 goes beyond the workplace – it gives protection

to disabled people in many areas, including education and transport. Clearly the consequences of formal legal rights and protections for the obese could be widespread and expensive.” Under current laws, if you have an impairment – physical or mental, which has a substantial and longterm adverse effect on your ability to carry out day-today tasks, then you are disabled. There are certain conditions that could pass that test, but which Parliament has deliberately decided should not qualify. These include alcoholism or drug addiction, tendencies to steal or start fires, or to physically or sexually abuse others. Hay fever – which affects one in four of us – is also specifically excluded. “As things stand, because obesity is not a disability, discriminating against the obese is not unlawful,” Mr Fraser said. “However, discriminating against people who have serious problems arising from their obesity can be unlawful. In effect it does not matter whether the reason someone cannot walk 100 metres unaided is because they are obese or one legged; you cannot discriminate against them. “A common reaction is: ‘Being fat is a self-inflicted choice, so why the special treatment?’ The Advocate General’s response is to say it is unfair to look at the cause of the disability, otherwise people seriously injured in other reckless conduct such as rugby playing, skiing or dangerous driving would also fail to qualify as disabled. “This argument does not deal with what, in my view, is the more important point, which is not to focus on the original cause of the disability, but the reason that the disability is long term. There is no amount of resolve that will regrow a severed limb; the same is generally not true for losing weight.”

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Autumn 2014

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ENERGY

Renew(able) Focus Renewable Energy Sector Opportunity for Aberdeen Much has been made of the offshore wind opportunity available to Aberdeen and the North East, but what is the progress to date, and are there other options for businesses in the area to develop new areas of profit? Paul Minto, head of renewable energy development at HBJ Gateley, reviews the current and future opportunities. Aberdeen is well established as a place of innovation and entrepreneurial nous, and is a city with an enviable track record of being first in line to seize and develop new opportunities. The North Sea is now witnessing a dramatic increase in offshore wind energy sites, with the German sector in particular developing at a furious pace as it aims to replace its nuclear generating capacity. There are plans being discussed for the high voltage electricity network beneath the North Sea to increase the distribution across Europe. With its unparalleled expertise in exploration of the seabed, the shipping companies and geographical position, Aberdeen is well placed to act as a hub for offshore wind energy development across the North Sea; the harbour is already receiving wind turbines and blades from overseas manufacturers. The Crown Estate, which leases the seabed to potential offshore wind farm developers, has plans to release many more sites around the UK coast to encourage development. Some of these are on the north-east coast of Scotland, including the recently released test sites for floating wind turbines. The offshore wind industry brings with it a new supply chain and auxiliary support services based onshore. The offshore wind developers are required to implement supply chain plans and, following the first project consents, those plans are now underway. Those commercial opportunities are now on the horizon following the grant of planning consent for the wind farms in the Moray Firth. None of the major offshore wind turbines are currently manufactured in the UK. And, though the various development agencies across the country are engaged in trying to attract the manufacturers to Scotland,

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Those commercial opportunities are now on the horizon following the grant of planning consent for the wind farms in the Moray Firth when Siemens recently announced plans to build a plant in the UK, it chose Hull. As a place for new energy industries to develop, Aberdeen has fertile conditions. In 2009, the newly established Scottish European Green Energy Centre (SEGEC) was opened in Aberdeen. The centre provides a team of specialist staff and a focal point for Scottish organisations seeking to influence European policy, access funding from the European Union, and undertake collaborative research and demonstration projects. As such, SEGEC plays a catalytic role in accelerating the development, demonstration and deployment of new

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energy technologies, through its work in Scotland and with partners across Europe. In Aberdeen Bay, Aberdeen Renewable Energy Group (AREG) has identified sites for testing new offshore wind turbines. The proposal attracted controversy when golf developer Donald Trump challenged the project but, after review, the European Offshore Wind Development Centre has now been fully approved. The Scottish Governmentâ&#x20AC;&#x2122;s Offshore Renewables Supply Chain Directory was launched in 2011 and is aimed at opening up these supply chain opportunities and

ENERGY engineering projects to local involvement. Through this, businesses in the North East are proactively encouraged to capitalise on their advantages in both proximity and local knowledge to showcase their offering for the offshore wind energy sector.

FlexTech Invests £500,000 in New R&D Hub

On top of this, support for businesses in this has been available since 2010 via the Offshore Wind Expert Support

Programme. This offers one-to-one support to help companies consider and build diversification strategies into their development plans so that they are better placed to win business in the offshore wind sector. Aberdeen businesses are well positioned and supported to capitalise from the emerging offshore wind industry. The offshore wind developers are already advertising their supply chain ‘meet the buyer’ events, suggesting greater growth in the coming years. The construction, operation and maintenance of what could be a vast number of electricity generating stations in a hostile marine environment is a new frontier which presents new engineering and logistical challenges. Sounds familiar? Aberdeen has already risen to such a challenge in 1970s and the city looks ready to conquer again.

As part of its ongoing growth and development strategy, flexible pipe specialist FlexTech has invested £500,000 into a new manufacturing and fabrication base in Lincolnshire. Since its inception in March 2013, the Aberdeen-based company has achieved turnover of £1 milllion, and it is on track to reach £2.5 million by the end of year two. With existing research and development and manufacturing premises in Aberdeen, and an R & D facility in Lincolnshire, FlexTech’s new Grimsby base will help to expand its presence across the UK, with plans to extend its capabilities and offerings into the renewables sector. FlexTech engineering director, Craig Keyworth, said: “Since start-up, the company has been performing successfully within the oil and gas industry. The new investment in Grimsby is strategic due to the region emerging as a key player in the renewable energy industry, with potential to become the UK capital of the offshore wind industry. “With such clear synergies between our

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services and equipment offerings within the oil and gas and renewables sectors, and the renewables developing at such a significant rate, the placement of our R & D facility in the region positions us well for an advance into the sector.” The newly acquired one-and-a-half-acre facility with 3,000-square foot office and workshop, currently employs seven skilled personnel, with a further five to be recruited over the next 12 months. It will provide FlexTech with an excellent base in the region both now and as it increases staff numbers and service offerings in the future. The new facility will support the delivery of projects worldwide, with the team in Grimsby supporting FlexTech’s increased presence in the region. With direct access to the world’s biggest offshore wind farms, and quayside access to the UK’s largest port, it will also allow FlexTech to offer its range of products and services to a wider market and breadth of companies operating within the area.

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FEATURE

League of Nations Puts Aberdeen on Business Map As Scotland savours the positive impact of the influx of visitors from across the globe from a summer of sport, the North East is rolling out the welcome mat for its own league of nations as Aberdeen reaches a new and diverse audience of skilled professionals. demonstrates cosmopolitan

the population

increasingly of

the

city.

European students still account for 39%, but the majority come from further afield – with the Middle East (20%), Latin America (13%), Russia and Central Asia (11%), Africa (10%) and the Far East (6%) all represented in large numbers. June added: “Traditionally, prospective university students were at the heart of the school and that remains the case, although the ratio of students to professionals is now very balanced. Even those who are coming to Aberdeen to study at university tend to be majoring in oil-and-gas-related degrees, so the energy industry is a common thread. “Our experience in the industry allows us to tailor courses to the individual companies, whether through providing bespoke mini-groups or lessons with an The Granite City’s lure is proving irresistible to individuals in sectors ranging from oil and gas to medicine and dentistry. For the specialist team at the International House Aberdeen language school, demand from the corporate sector is proving one of the strongest areas of growth. The centre was founded more than seven years ago and since then has seen a marked change in the demographic of its student base, as well as a rapid expansion of the countries represented on its roll. June Johnstone, founder of IH Aberdeen, said: “The uptake of courses remains incredibly varied, from those learning English as part of an extended holiday to students preparing to study at Scottish universities through to engineers working

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in highly technical roles in the North Sea energy industry. As a fully accredited English language school, we are able to satisfy the most stringent of standards. “There is a definite trend emerging, which demonstrates the diversity in the business community, and we work with a number of key employers in the region, who use us to provide language services to new staff members or those relocating from other countries. In the time we have been operating that corporate demand has intensified significantly and, from speaking to other well-established language schools in Britain, we know it is a trend specific to Aberdeen.” A snapshot of International House Aberdeen’s roll for the past year

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industry-specific focus. Behind that is a true passion among all of our teachers for what we do. Knowledge and expertise is vital, but communication skills, particularly in meeting or presentation situations, are increasingly being viewed by employers as just as important. We’re delighted to be playing our part.” Based in Aberdeen city centre, the school teaches English as a Foreign Language (EFL) to students from across the world through a team of experienced Englishlanguage professionals. The school is accredited by the British Council and is the only Scottish centre of its type to be ranked by the organisation in the top 10% of providers in the United Kingdom.

FEATURE

Judging Your Space Thanks mainly to the buoyancy of the energy sector, Aberdeen remains unique in that it still exhibits an unusually high demand for business premises, encouraging developers to work on new projects and provide the space demanded. development company have recently acquired the former Aberdeen South site at Portlethen and renamed it as City South; this site extends to 40 acres of Class 2 and 4 business development land. Balmoral Business Park, which lies adjacent to Loirston Loch in Altens, provides a high profile location and has recently secured the Mini and Nissan dealerships through the John Clark Motor Group.

To this end, there is a lot of development activity across the city with a number of sites witnessing strong occupier demand: To the north of the city, the two sites near Aberdeen International Airport – the 54acre ABZ site and the D2 development – both offer easy links to the new Aberdeen Western Peripheral Route. To the west of the city, the suburb of Westhill, which is known as ‘surf city’ due to its global subsea occupier presence, continues to grow with pockets of commercial land being developed to meet ever-increasing demand. Lying just three miles east of Westhill towards the city centre, Prime Four Business Park has attracted some key signings, such as Apache, Nexen and Transocean, which alone account for around 300,000 square feet of office space. On the back of these anchor tenants, the Park has secured further occupiers both in the oil-and-gasrelated businesses and also professional firms, such as A2+B® accountants. To the south of the city, there are a number of active commercial development sites which include Aberdeen Gateway, where the likes of Total, Ensco and Oil States have taken new leases, while Schlumberger have recently secured a 10-acre site at Badentoy North from Dandara. The same

The city centre also boasts a number of new developments, amongst them two new prestige developments that are currently being developed on spec: Dandara’s redevelopment of the Triple Kirks site, now referred to as Inspire, and the £35-million Knight Property Group development of the old Capitol theatre (pictured below), where a ten-storey office block will tower over the retained art deco façade of the old building Steve Judge (pictured above), managing director of Space Solutions in Aberdeen, commented: “Two years ago the demand for office space was high and there was a general lack of supply to meet demand. We were emerging from a recession and employment land was sitting dormant. Few developers had the facilities to develop sites on spec and few banks were able to lend against speculative building projects. Our challenge with many clients was to create space for growth within existing premises. Using a number of techniques, including workplace assessments and space audits, we can examine the type of work undertaken, the technology used, the way in which people act and begin to build a picture of how an organisation can utilise all these elements to configure their space in a more efficient manner, improve business function and provide greater flexibility for the future. In some cases a study such as this highlighted that a business didn’t need to move to accommodate growth.

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“Today, demand remains relatively high. However, there is also a greater level of speculative development than there has been in recent years and we face the prospect in the coming year or two of having new buildings on the market with no end-user signed up. “Like few other sectors, the energy sector exhibits high levels of change and our challenge is helping businesses accommodate change. New companies regularly enter the market or grow from relatively small (in terms of headcount) beginnings to become significantly sized businesses. Major organisations like Taqa and Statoil are good examples of this, as their growth from quite small headcount on the ground, initially, to many hundreds of people is not untypical, and presents an interesting challenge for them in terms of how and where to accommodate change of that nature over time.” Steve continued: “The conclusion to the Referendum also ends a period of uncertainty, with some companies putting projects on hold until the outcome was announced. The decision to remain united has created a positive reaction in the markets, whereas a further period of uncertainty would have been harmful to business. Many business leaders felt a ‘Yes’ vote would have had a negative effect on our financial situation and could have led to another recession.”

Autumn 2014

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PROPERTY

Modul8 Completes Contracts at Prestigious Business Park An Aberdeen-based commercial interior specialist has completed £2 million worth of contracts for three industry giants based at one of Aberdeen’s biggest business parks. Modul8, which offers modular solutions for commercial interiors, has completed four phases of buildings at the Prime Four business park in Kingswells. The specialist company installed glazed partitioning and bespoke doorsets, which were manufactured to the architect’s unique specifications for the project.

four football pitches, were used for the partitioning to create flexible cellular office space and meeting rooms in the office blocks. The glass walls were designed to incorporate company values and branding, and to provide private but visually connected space with acoustic separation from the open plan areas.

The contract took six months to complete and 3206 pieces of glass, equating to almost two miles – the equivalent of

The relocatable, demountable partitions also contribute to the buildings’ BREEAM and SKA environmental ratings, which are

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a key consideration in modern office design and construction. Managing director of Modul8, Andy Davie, said: “The contract with the Prime Four business park shows the company’s growing role as a major player in delivering commercial interior solutions for companies in the oil industry, and is an excellent showcase for our relocatable office wall systems.”

PROPERTY

Integrated Approach Showcased by Knight Frank A new £2.5-million development in Dyce will underline the integrated capabilities of a leading commercial property specialist as a prominent site is transformed. Two units are to be built at Wellheads Road. Current occupiers MB Air Systems are behind the plans and will operate from one of the new facilities, with the second to be made available for lease. Knight Frank will utilise its full spectrum of services to lead the project – with the firm’s building consultancy department responsible for the design and project management elements, its planning specialists assisting with gaining consent and the agency team tasked with securing a tenant for the second unit. The full-service capability is unique to the Aberdeen office of Knight Frank and the integrated approach is growing in popularity in the North East as a costeffective and efficient solution in a competitive commercial property market. Douglas Garden, the Knight Frank partner who leads the building consultancy team in Aberdeen, said: “Being able to take a

project from concept to delivery presents us with a very strong proposition and it reflects the skills and expertise we have within our team in Aberdeen.

The two Dyce units will total 26,500 sq. ft.

“Our approach to design is to blend the physical requirements of the client as owner/occupier with the future needs of the investment market to ensure the best possible outcome for the development.

MB Air Systems due to move in to the firm’s

“Our agency team can provide the analysis and insight which enables informed choices to be made from the outset as to the long-term viability of a development and the best options to ensure maximum return on the investment being made. “It is important not only to cater for the initial occupier, but beyond that. Being painted into a corner by decisions made at the design stage is not what any developer wants to happen and we work as a team to avoid that.”

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of workshop and office accommodation, with additional yard space. Construction is scheduled to be completed this year with new base in December. The second unit, with 13,000 sq. ft. of floor space, will be completed in June 2015. Steve Harkin, MB Air Systems director, said: “This is an important step for us and comes at an exciting time for the company. Our future plans will be aided by the new facilities, which are central to our business development strategy.” Douglas Garden added: “Demand across the city remains strong and the development at Dyce will help cater for the requirement for units of this size, particularly given the strength of the location.”

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PROPERTY

Property Investment Property investment is a fabulous way to make money, so it’s not surprising there are now some 1.4 million landlords in the UK But fabulousness aside, there is a serious side to property investment – because it is a commercial enterprise. If you want to make money in property, you need to follow the rules or guiding principles that will help you become a successful property investor. There are four key areas you need to focus on:

Personal Rules: Your success is down to you Being a successful property investor requires a different way of thinking, acting and living. You aren’t ‘born’ a successful investor – you learn to become one. What that means is making a personal plan for where you are trying to go and what you are trying to achieve. And you have to take action. That means you have to be a little bit brave. You need to take some risks, make some sacrifices and understand things won’t always go according to plan. That’s why you need a plan ‘b’, and most likely a ‘c’ and ‘d’! Resourcefulness is critical. As a property investor you are the boss. The decisions you take will not only impact upon the property you own, but also the life you lead. Successful investment requires you to make sacrifices of time and money – but it also requires effort. And the more you put in, the more you get out! Property Rules: Properties can be assets AND liabilities Property is a great way to make money – but it can also be a way to lose money. Not every property is an asset and some can even turn into liabilities and cost you money. That means you need to look for

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properties that have potential to turn into gold mines, rather than buying a property that is a money pit. Unexpected repairs and problem tenants can soon eat into any profits you hoped to make, and so avoiding these mistakes is key. Understanding and defining the type of property investments you want to make should be planned in advance, and preferably, in line with your future goals. There is no ‘one-size-fits-all’ property, so you should work out what suits you best to ensure your property remains an asset, both now and in the future. Business Rules: Property investment is a business Investing in property can be a lot of fun and, even if you want to buy property as a hobby or a sideline, it is important to remember: property investment is a business. That means you need to ensure you treat it as such – otherwise you could just be spending your money on property rather than investing your money in property. Running the numbers, keeping tabs on cash flow and calculating yields are all part and parcel of the investment process. You don’t need to be a maths wizard to make money in property, but you do need to ensure you make more than you spend. It’s a deceptively simple rule, but it’s the most important one when it comes to success in business. Customer Rules: The customer is king Every business needs customers if they are to succeed and make money – and the same is true with property investment.

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There’s no point buying a property, even if it looks to be the bargain of the century, if nobody wants to rent or buy it from you! Customers have needs and wants they require satisfying – and your role as a property investor is to ensure you match people’s desires with your property. That means you need to buy the right property for the right people. If you’re renting a property, the aftersales is just as important. Customer service and tenant management is critical. Customers cost a lot of money to obtain – and a key part of running a successful property investment business is to retain long-term, loyal, paying customers. If you can nail these rules in your property investment career, then it’s likely you’re onto a winner! *Samantha Collett is the author of Property Investment: The Essential Rules, How to Buy Property at Auction and the multi award-winning blog What Sam Saw Today.

PROPERTY

Architects Build Solid Foundation

Nothing gives testament to the success of a business more than an impressive portfolio of clients and this is undoubtedly the case with TCD Architects. Under the supervision of directors Alan Cromar and Steven Lawrence, this Aberdeen firm has gained a powerful client list with a diverse range of projects. The team develop projects in a highly efficient and cost-effective way, ensuring clients get an imaginative, affordable and unique service. A 17-year association with Technip (UK) Ltd on their Westhill site offers further prospects for TCD, as does Dolphin Drillingâ&#x20AC;&#x2122;s third phase of works at Kirkhill Industrial Estate, Dyce. The team are currently also working with The Sparrows Group, Stork Technical Services, Rossnow

Leisure (Aberdeen) Ltd, dental healthcare facilities in Inverurie, The Atholl Hotel, an Estover Energy Ltd project on the outskirts of Aberdeen and many more. This companyâ&#x20AC;&#x2122;s versatility can also be seen through their technical relationship with the Alhikmah Foundation SCIO, the charity which is building a new mosque for the Aberdeen Muslim community, and their design involvement in the Kintore Consortium, where Kirkwood Homes, Barratt Homes and Malcom Allan are building new houses with the opportunity of mixed-use development on future plans.

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TCD are also undertaking a collaborative venture with Aberdeen Heat & Power, a notfor-profit independent company, developing Combined Heat and Power schemes for the city. Combined Heat and Power (CHP) is a system whereby electricity is generated locally for sale, and the heat emitted by the generator is captured and used to heat properties instead of being released to the atmosphere. However, it is the ability of this successful architectural firm to secure repeat business from their increasing base of satisfied customers that positions them at the top of their profession.

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BUSINESS TRAVEL

Flybe to Provide Vital Link to London City Airport

Flybe, Europe’s largest regional airline, has stepped in to secure vital continuity for customers using the key London City to Aberdeen route, with twice daily flights starting on Monday 27 October 2014. Seats are on sale now at www.flybe.com from £49.99 one way, including taxes and charges.

and create stability, security and a brighter future for our country.”

announcement, which will keep London’s

The news has been applauded by Prime Minister David Cameron, who said: “I welcome the announcement that Flybe will introduce daily flights from Aberdeen to London City later this year - a vital route that helps support the north-south economy.

Saad Hammad, Flybe’s chief executive, said: “We are delighted to step in and continue to provide a twice-daily service between these two economic powerhouses. Flybe is the recognised European leader in providing frequent, convenient and affordable regional connections.”

the doorstep of Scotland’s business

“Keeping our cities connected is part of our long-term economic plan to encourage investment and promote growth so we can generate jobs, pay our way in the world,

Adds Declan Collier, CEO of London City Airport: “Flybe’s presence at London City will grow much-needed air connectivity to the UK’s regions. We welcome today’s

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business

and

financial

districts

communities.” Details of new route: London City (LCY) - Aberdeen (ABZ) 27 October 2014 – 28 March 2015 Mon-Sat Dep ABZ 0630 Arr LCY 0830 Dep LCY 0900 Arr ABZ 1050 Mon-Fri/Sun Dep LCY 1830 Arr ABZ 2020 Dep ABZ 1600 Arr LCY 1800 Operated by 78-seat Bombardier Q400 aircraft.

BUSINESS TRAVEL

On the Up, Down Under QA Business Travel, an Aberdeen-based travel management company (TMC), has expanded its business into Perth, Western Australia. QA provides travel management services to companies in the global oil and gas sectors and has identified a need for these niche services in the growing Australian marketplace.

will ensure the long-term success of QA Business Travel in Australia.” Kevin Thom (pictured), managing director of QA Business Travel, said the expanding oil and gas marketplace in Australia had a lot in common with the more established Scottish sector.

QA Business Travel Australia is a joint venture between QA Business Travel Limited and Schaeffer Enterprises.

“Many oil support and service companies are present in both locations. Our partnership allows us to work with them in both markets,” he said.

Phillip Schaeffer, owner of Schaeffer Enterprises and former director of the Travel Company in Aberdeen, has been appointed director of the new venture. He said: “A combination of the latest technology, tried-and-tested systems, and highly professional travel specialists

Thom added that QA Travel was already evaluating expansion opportunities in other global energy hubs.

New Non-Stop Sunday Service from Eastern Airways Eastern Airways, Europe’s leading provider of fixed wing air services for the oil and gas industry, are now offering non-stop flights between Aberdeen International Airport and Norwich on Sundays with a more convenient later departure time. The Sunday service departs Aberdeen at 8

Kay Ryan, Eastern Airways’ commercial

p.m., arriving in Norwich at 9.20 p.m. From

director, said: “We are always looking at

Norwich, Sunday flights depart at 6.15 p.m., arriving in Aberdeen at 7.35 p.m. It is expected to particularly appeal to oil and gas

opportunities to further improve services and we’re now in a position to provide a

workers heading offshore early on Monday

non-stop Sunday service, which will reduce

morning and business commuters with

journey times for Aberdeen customers

Monday morning meetings. The

Sunday

service

will

and allows us to offer an improved later continue

complement Eastern Airways’ choice of

departure time to Norwich.”

weekday departures with up to three flights

Lead-in fares start from £99 one way,

a day from Aberdeen to Norwich.

including taxes and charges.

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HOSPITALITY

The Heat is On

Carol Brown

It’s almost second nature to reach for the Cobra or Kingfisher beer when out for a curry and, if your heat starting point is vindaloo, then I would stay with those and a jug of water, as really hot spice can overpower wine. Indian dishes can be so complex and selecting a wine to match the subtleties of layers of spicing and herbs can be really rewarding. Generally, for spicy dishes, I would avoid wines that are high in alcohol, as chilli heat accentuates alcohol heat. And also avoid high tannin young red wines, such as Cabernet Sauvignon, as the heat from the chilli will make young tannins seem harsh. If your preference is for red, keep it light- to medium-bodied and fruity. New Zealand Pinot Noir with lamb dishes such as bhuna and balti can be great, and a while ago there was a campaign promoting Chilean Carménère as a friend to curry. Don’t be afraid of going for offdry wines, even if you normally prefer dry wines, as that touch of sweetness seems to complement heat. Consider off-dry rosés or a demi-sec Chenin blanc from the Loire

Valley. Try rosé wines with tomato-based sauces. If you prefer the milder creamy dishes, such as korma and pasanda, chose a mid-weight white. If it’s been barrel-fermented or lightly oak-aged, that will give added richness to match the creaminess of the dishes. Check out New World Viognier, such as Graham Beck ‘The Game Reserve’ Viognier 2010 (Fountainhall Wines). The white flower and apricot characters of Viognier sit so well next to coconut. If you are sharing a selection of chicken, lamb and seafood, it will be hard to get a perfect match. I tend to keep the wines aromatic and white.

will also complement a range of dishes, especially those that have a sweet and sour element like jalfrezi. Charles Smith Kung Fu Girl Riesling 2011 from Washington state zings with juicy peach and lime and happens to be off dry too. (Distributed by Bibendum) I’ve also tried and tested Grüner Veltliner from Austria and can report that works well too. *Availability subject to change. Check with the retailer. Carol Brown is an Aberdeenbased member of the Association of Wine Educators and the Circle of Wine Writers.

The grapy, ginger spice notes of Torrontés from Argentina make it a good all-rounder and it shines with fish or king prawns. The floral, citrus and lime notes of Riesling

Restaurant’s Own App is the Best Judo Payments, UK’s leading provider of simple, easier and more secure payment solutions for mobile, have commissioned research that reveals UK consumers are frequently using their mobile devices to order meals through restaurant directories like Just Eat. The survey reveals that: 26% of mobile users use directory apps to find new places to eat locally; 21% use them when away from their home town; 30% use these directories because of their convenience. Commenting on the research, Dennis Jones, CEO of Judo, said: “Services like Just Eat are pushing the food industry to mobile. They’re helping restaurants everywhere to be discovered by new customers every day.“ A restaurant listing on Just Eat is great for

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letting new customers find you, but what about keeping them coming back? Services like Just Eat let a restaurant be discovered, but the customer loyalty belongs to Just Eat, not the restaurant.” Jones added: “A competitive restaurant needs to offer the convenience of an online directory whilst maintaining ownership of their customer relationship. “A bespoke mobile app for a restaurant achieves this. It makes it easy for customers

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to find you, order and pay, whilst allowing the restaurant owner to retain customers through loyalty schemes and offers.” Judo’s research reveals that 71% of UK consumers are more likely to return to a restaurant, bar or café if it offers special deals and loyalty schemes. 65% of respondents said they would download an app to access offers and deals, whilst 80% of respondents confirmed that they would return to a restaurant to benefit from inapp loyalty schemes.

HOSPITALITY

Producers ‘Hop’ to Highlands Festival The very best of the North East’s brewers and drink producers are set to expand into new markets after attending a new craft beer festival. Up and coming businesses from across Aberdeen and Aberdeenshire travelled to Inverness last month for the inaugural North Hop festival at Eden Court. North-east craft beer producers Deeside Brewery, Six Degrees North and BrewDog joined Aberdeen bar operators and events company, 10 Dollar Shake, and soft drinks maker, Summerhouse Drinks from Rosehearty, at North Hop, the first large scale craft beer festival to take place in the Highlands. The group of rapidly expanding businesses exhibited at the Highland festival, which featured beers and ciders from 10 breweries from across Scotland, as well as artisan gins, cocktails, street foods and local musicians. Deeside Brewery from Banchory were showcasing their range of craft ales, made with Deeside spring water at North Hop. Business development manager, Neil Strachan (pictured right), said: “So far 2014 has been a really busy year for us, recently being listed in Sainsbury’s and winning a great taste award. We just released some exciting new products, so North Hop was a

great opportunity to get our brand out there to a wider audience.” As well as fine Scottish craft beers, artisan gins and beer, cocktails were served by the 10 Dollar Shake team at their pop-up bar. Adrian Gomes (pictured left), who runs Aberdeen’s Tippling House and has recently launched two quirky new Aberdeen bars - Bos’n and Rye and Soda, commented: “There are so many different cocktails which can be made with both gins and craft beers, so I was looking forward to being able to create something to suit all tastes at North Hop. It was great for us to show customers outside of Aberdeen what we can do, whilst bringing some of our current fans north for the festival.” North Hop also featured Stonehaven brewery, Six Degrees North, which opened its own bar on Aberdeen’s Littlejohn Street last year and has since won a legion of fans for its take on classic Belgian beer styles. Claire Rennie of Berry Scrumptious gave festival-goers some fantastic, handcrafted, alternatives to traditional lemonades with her new Summerhouse Drinks range, which included a Hint o’ Mint and Scottish Raspberry flavours.

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HOSPITALITY

Food Allergen Regulations Prove Costly As food businesses gear up for new EU Food Information Regulations, the British Hospitality Association estimates the cost of implementation to be up to £200 million per year. In time for the Christmas party season 2014, every restaurant, hotel, pub, takeaway, motorway service station, café owner and festival caterer, as well as schools, hospitals and prison meals services, will have to accurately track, record and communicate to the public what menu items contain any of 14 of the most common foods to cause allergic reactions, such as nuts, shellfish and eggs. Some eight billion out-of-home meals are served every year. With up to 2% of people being food allergy sufferers and 20% of

people believing they have some kind of food allergy according to NHS figures, there could be millions of requests for information for food businesses to deal with. The new EU regulations, which come into force on 13 December, seek to provide the public with better information about the foods they are eating. The British Hospitality Association is launching a guidance toolkit, designed by its food advisory team, members and Bond Dickinson, to help hotels, restaurants and caterers implement

the new regulations and cope with these requests for information. Jackie Grech, legal and policy director for the BHA says: “These new regulations are coming into force this autumn and will make it easier for people to get information about which allergens are present in the food they are eating out of home. Food businesses will be expected to learn how best to communicate these new regulations to their customers. Therefore, the BHA has launched a toolkit, forum and workshops to help food businesses of all sizes.”

Deeside Brewery Exports into Overseas Market A fast-growing independent north-east brewery has expanded its sales to China, to meet increasing customer demand for its Scottish Craft Beers. Last month, Deeside Brewery exported two pallets of its award-winning Craft Lager, in conjunction with the newly launched export arm of Glasgow-based food and drink wholesaler JW Filshill – trading as The Craft Beer Clan of Scotland. The Craft Beer Clan of Scotland aims to support and promote quality Scottish craft brewers overseas. Along with Deeside Brewery, the Clan also involves William Bros Brewing Co, Eden Brewery and Inveralmond Brewery. Recognising a demand for quality beer in the Asian market, the first container from these craft brewers was launched

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at the WhiskyL! Exhibition in Shanghai

and internationally. With the support of the

and Beijing, in which Deeside was highly

Clan, we hope that Deeside’s Craft Lager

popular with the Asia-Pacific customers.

will be received well by the Chinese market

Following Deeside’s export, the brewery

and that we will continue to see sales rise

has had several significant announcements

as a result.”

in recent months showing signs of

Deeside

growth, including award wins, contracts

Macbeth – signature golden ale; LAF –

and staff appointments. Deeside also

clean, crisp beer; Talorcan – a traditional

recently announced the appointment of

milk stout; Swift – American pale ale and

Neil Strachan, as business development

Deeside Craft Lager.

manager.

The locally brewed products are available

Neil said: “Deeside continues to grow and

in bars, restaurants and local retailers

our beer is in high demand, both nationally

throughout the north-east of Scotland.

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Brewery’s

products

include:

HOSPITALITY

AA Award for Meldrum House The great and good of the country’s hospitality industry were out in force at the AA Hospitality Awards held at the Grosvenor House Hotel on London’s Park Lane recently. Often referred to as the industry’s ‘Oscars’, the AA Hospitality Awards is a key date on everyone’s calendar – a rare time when major players in the hospitality world can get together and recognise the commitment to excellence that so many establishments and individuals strive to provide their visitors. Guests at the awards ceremony, hosted by Fiona Bruce, were treated to a sensational gourmet meal created by 2013 AA Chefs’ Chef, Tom Kerridge. The AA Hotel of the Year (Scotland)

Award, which was introduced in 1992 and awarded to hotels that are recognised as being outstanding examples in their particular market, was won by Meldrum House Country Hotel. Meldrum House is a unique hotel and golf course located in stunning countryside near Aberdeen. Over the past four years the hotel has undergone a major refurbishment programme, turning a tired three-star hotel into one of the finest country house hotels in the country. The team at Meldrum House are committed to ensuring the hotel exceeds customer expectations and

becomes recognised as a shining example of Scottish hospitality. Andy Burgess (pictured centre right), chief executive at Meldrum House Estate, said: “To receive recognition from such a prestigious national award is a huge testament to both our hotel owners, who have provided the foresight, vision and financial support to make our success possible, and to the general manager, Peter Walker (pictured centre left), and his team on the ground, whose energy, dedication and enthusiasm for delivering our vision has been outstanding.”

There’s a Crisp Nip in the Air! Perthshire-based crisp manufacturers, Mackie’s at Taypack, have announced two new product lines to their range, which sees the launch of the first-ever whisky-flavoured crisps. The Mackie’s Crisps brand, already renowned for its distinctively Scottish crisp flavours, has combined whisky flavouring with another Scottish favourite to create its new Whisky & Haggis flavour potato crisps. At the same time, the

business is also launching new Venison & Cranberry flavour crisps. Both new lines will form part of Mackie’s Ridge Cut range, launched in November 2013, comprising four flavour variants: Caramelised Red Onion, Prawn Cocktail, Issue 2

Roast Ham and Sea Salt & Mixed Peppercorns. The range was attributed with

the

Scotland

Food

Drink

Excellence Award for Retail Product: Confectionery & Snacking this year. Autumn 2014

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BUSINESS AUTO

The Volvo

V60 Polestar The new Volvo S60 and V60 Polestar are here, set for sale on four continents around the world in 2014.

The new Volvo S60 and V60 Polestar are here, set for sale on four continents around the world in 2014. Whilst the S60 and V60 Polestar will be available globally, Volvo Car UK will continue to deliver on the call for fast estates by limiting availability to the new V60 Polestar only. This is a car developed for those who feel that driving really matters and that a true driver’s car should enable you to enjoy driving all year, on all roads and in all weather conditions. This is a driver’s car for real life. With the introduction of the V60 model, Volvo are proud to continue the heritage of fast Volvo estates like the racing 850 BTCC, a tradition deeply rooted among Volvo enthusiasts.

and test tracks from the south of Europe to the frozen north of Sweden. ”We have continued our work to create a true driver’s car which is not limited only to a few specific driving conditions, but enjoyable on everything from your favourite winding roads to taking the family for a long journey, no matter summer or winter. And in my view, we have gotten very close to our goals, something that, of course, is best experienced first-hand behind the wheel,” said Robert Dahlgren, Polestar racing and test driver. “It is very satisfying to see how Polestar has been able to combine this level of driving performance in their interpretation of the

The car is based on the latest generation Volvo S/V60 and marks the start of an extended Polestar production model range. Development of the car has been ongoing over the past few years, picking up from the C30 and S60 Concept cars and the Australian S60 Polestar. Thousands of development kilometres have been driven on twisty mountain roads, on the autobahn

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S60 and V60 with maintained original service programme, class-leading safety features and certified fuel and emission ratings. Customers buying this car will get the best from both Polestar and Volvo,” said Alain Visser, senior vice president marketing, sales & customer service at Volvo Cars. Upgrades include modifications made to increase rigidity of the chassis to cater for the 80% stiffer springs relative to the standard S60 R-Design. These changes, combined with the tailored high performance Öhlins’s shock absorbers and 20-inch Polestar wheels, results in a precise, yet comfortable, driving experience.

BUSINESS AUTO To reflect the increased performance of the S60 and V60 Polestar, positive aerodynamic effects have been achieved through subtle, yet efficient, modifications based on data from tests in the Volvo Cars wind tunnel. The changes are visible with the front splitters, optimising the airflow underneath the car, as well as a new rear spoiler and diffusor, increasing downforce. The six-cylinder turbo-charged T6 engine has undergone extensive development with a new twin-scroll turbo and intercooler to produce 350 h.p./257 kW at 5700 r.p.m., and 500 N m/369 lb-ft at 2800 r.p.m. The engine breathes through a 2.5-inch stainless steel exhaust system, making for a throaty engine note.

“All in all we have taken a major step forward in all areas, from chassis and engine to interior and exterior details...”

The six-speed automatic gearbox features a new paddle-shift system that, together with the Polestar developed Haldex fourwheel drive system, takes the car from 0-62 m.p.h. in just 5 seconds and to a limited top speed of 155 m.p.h. The gearbox, as well as the four-wheel drive system and traction control system, has been recalibrated in order to provide an active driving experience and maximum grip in all situations. The interior has been reworked with new details, materials and Polestar colours, such as the steering wheel, seats and more, with the sole purpose of increasing driver support and control. ”All in all we have taken a major step forward in all areas, from chassis and engine to interior and exterior details. Development work has been focused on the overall package in order to create a car that you want to use every day, both from a practical and emotional perspective,” said Henrik Fries, S/V60 Polestar technical project manager.

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SPORTS

Ryding on the

Crest of a Wave As we in Scotland would say: “What a gubbing.”

The excitement of the Ryder Cup is over, with the board showing

miss and make a killing by renting out their homes – ranging from

the final margin of victory at 16½ points to 11½, with Sergio

small flats to lavish family mansions – through estate agents and

Garcia providing the post-Donaldson highlight with his win at the

specialist golf websites. One four-bedroom detached villa, situated

last against Jim Furyk. But it was all over long before then as, with

in a typical middle-class estate but within walking distance of the

the scoreboard reading 14½ points to Europe and 9½ to the USA,

course, was snapped up last year for £27,500 for a single week.

the vanquished Keegan Bradley removed his cap and extended his

Other rental businesses also cashed in. William Stewart, owner of

hand. It was all over.

Grand Eagles Caravan Park, had leased or sold 30 luxury lodges

It was the greatest show in golf and it wasn’t just the players who

in the run-up to the tournament. He said that lodges that used to

tasted success. The eyes of the world were fixed on Perthshire.

cost £650-£950 per week to rent rocketed tenfold. He commented:

Gleneagles may have spent 13 years preparing and £20 million on

“We were fully booked from March. People came from Germany

staging its finest hour, but experts have predicted golf-mad tourists

and America. I was not surprised at all the interest. Everybody was

may have pumped as much as £100 million into the national

desperate to be part of a once-in-a-lifetime experience.”

economy as they flocked to watch the world’s top golfers do battle.

When US captain Tom Watson’s stars took on Paul McGinley’s

Hotels and guest houses for miles around were sold out well in

European team, it put Scotland in the world’s shop window, as an

advance as nearby Auchterarder was determined to get their slice

estimated 500 million viewers in 183 countries watched on TV.

of the action.

Champagne and the finest Scottish produce were on sale at the

Many enterprising locals rented out their homes for five-figure sums,

huge temporary hospitality village that sprang up at the entrance

with a week’s stay in a caravan park setting you back £1,400. While

to the PGA Centenary Course.

Gleneagles Hotel’s 232 rooms, including 26 luxury suites, had

With golf tourism already worth £220 million annually to the Scots

been reserved for the two teams, match officials and dignitaries,

economy and supporting 4,400 jobs, hosting the 40th Ryder Cup is

hundreds of enterprising locals decided to give the travel chaos a

expected to make 2014 a bumper year for the home of golf.

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SPORTS

Business Community Living on Chips in for Quarriers the Edge Official Charity of the 2014 Ryder Cup With the thrilling drama which unfolded at Gleneagles, it is easy to think the Ryder Cup is all about the on-course action. However, one Scottish charity has seen another side to the world’s greatest golfing event.

Scotland’s leading education institutions, Loretto School, has adopted Quarriers as its charity of the year, where all charityfocused events will raise funds to support the Coaching For Life initiative.

Following its appointment as The 2014 Ryder Cup’s national charity last year, Quarriers – which supports families and young people – was able to use this title to support a series of high profile campaigns, raising awareness of the charity and its services. Through its 2014 Ryder Cup Appeal, the Renfrewshire-based charity has been able to develop Coaching For Life, a pioneering new programme which supports young people facing difficult circumstances to work towards a brighter future.

Commenting on the engagement with businesses and the overall Appeal, Niall Macpherson, Quarriers’s director of finance and corporate services, said: “Our status as an Official Charity of The 2014 Ryder Cup has already made a terrific difference to the lives of many young people and families, and demonstrates how sport can act as a powerful and positive influence.

As well as the initial fundraising drive, Quarriers also used its Ryder Cup status to establish longer-term partnerships with Scottish businesses and a number of organisations jumped at the chance to be involved with the charity. One of

“The support from the business community has been overwhelming and we feel humbled that so many organisations and companies have shown such an appetite to be involved. We would like to thank all our supporters for their tremendous efforts and look forward to developing even more relationships within the Scottish business community moving forward.”

The Golf Trick Shop Boys at Kilmacolm Golf Club in Renfrewshire

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If mountain biking, canoeing or windsurfing doesn’t satisfy you, here’s a new activity that will: Coasteering. It’s an exhilarating activity that encompasses swimming, climbing, scrambling, canyoning, jumping and diving. It takes place along the intertidal zone of a rocky coastline without the aid of boats, surfboards or other craft. But you are allowed wetsuits, buoyancy aids and helmets. A defining factor of coasteering is the opportunity our coastline affords for moving in the ‘impact zone’, where water, waves, rocks, gullies, caves etc come together to provide a high-energy environment. Participants travel along a section of coastline, sometimes swimming in the sea, sometimes scrambling on rocks and jumping from them into the water. The excitement climaxes as you take a leap of faith into the churning waters, before scrambling through a huge crack in the rocks and then, working as a team, assess your moves before plunging back into the water. We’re lucky to have both the rugged coastline at the Bow Fiddle Rock, Portknockie and the rocky outcrops at Findochty on the Moray Firth on our doorstep – ideal sites. If you don’t know about coasteering, Aquaplay Scotland, Rothes, can teach you all about it.

Autumn 2014

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BUSINESS & COMMUNITY

Helping Pupils Achieve Driving Ambition Enterprise North East Trust (Enterprise) has been running The Recruit programme for years, but it has only recently been added to Aberdeen City Schools curriculum with the support of Aberdeen City Council. St Machar Academy, said: “Meeting John Clark was really interesting. He has achieved a lot in his life and he was a nice guy. The best tip he gave us about running his own business was to keep in mind the 4 Ps: Product, Places, Passion and, most importantly, People. I think he would be cool to work for.”

The programme is part of local Aberdeen Guarantees support, which brings together the efforts of the public, private and third sectors to assist young people progress towards employment. The aim is to ensure that all 14- to 25-year-olds in the city have access to quality opportunities in learning, training and work. The Recruit is designed to develop a ‘work ready’ attitude. Pupils are assisted in their 4th and 5th year studies, learning from Enterprise advisers and local business owners/representatives how to improve their presentation skills, complete a CV, sell to a mass audience, find out about future career options and more. Previous sessions of The Recruit have been so successful in connecting schoolchildren with local businesses, introducing them to the sectors available for work, and recognising their own skills and talents, that the authorities have included it in the local school curriculum. Enterprise has also sourced gainful employment for pupils through their involvement in The Recruit. Pupils who add this programme to their weekly timetable will have the opportunity

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to learn about the responsibilities they will have as an employee in the workplace, and will unearth professions they may not be aware of through visits from businesses. They will also learn about finance, event management, presentation skills, teambuilding and marketing through practical examples and attend networking events with businesses in the local communities Karen Clark, project manager, Enterprise Projects, recently took the Recruits to spend time with John Clark at his familyrun and -owned business. The John Clark Group represents well-known automotive brands across Scotland and the team were amazed John personally spent time with them. He told them his career story, the ups and downs of his business journey and his tips for life, such as “do something you want to do”! Following his motivational talk, he showed The Recruits around the Alliance Centre, whilst answering their questions. The Recruits have been set a task by John of how best to promote electric cars to the Aberdeen market, which they will present back to him on 5 November. Yvannah Gonzalez, a 5th year pupil from

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Gary McEwan, chief executive at Enterprise North East Trust, said: “John Clark has had an impressive business journey and has valuable life lessons of making something out of nothing to share with these young individuals. As a recent winner of the Lifetime Achievement Award at our Grampian Awards for Business Excellence, his passion for both business and motor vehicles is enough to inspire any young person unsure of what their own future holds to ‘make it happen’. I look forward to seeing the proposals to promote electric cars. They have already interviewed me about my own decision to drive an electric car and they have a fantastic skill of thinking outside of the box.” John Clark (pictured left), group chairman and managing director of John Clark Motor Group, said: “I think young people at the stage before leaving school are always interesting. They have a level of enthusiasm about their future, an ambition which perhaps older people lose and they have a freshness in their approach. They don’t know what the future holds and are often being pushed down a route by teachers and parents that they don’t necessarily want to take. The Recruit is an opportunity for youngsters to see that there are other options out there for their future that they might not otherwise have been aware of.”

BUSINESS & COMMUNITY

Local Companies in Gruelling Bike Challenge Two local firms used pedal power in aid of good causes when their employees took on one of the North East’s most gruelling biking challenges, Ride the North, in a bid to raise money for two local charities. Stuart (pictured below), a 32-year-old QHSE recruitment specialist from Thorpe Molloy Recruitment, hadn’t been on a bike since she was a child, but a fear of the unknown drove her to train all summer for up to three times a week, including long runs at the weekend. Gemma summed up her feelings after completing one of the most gruelling charity challenges in Scotland as: “Ecstatic, chuffed and relieved.” She continued: “One of my favourite parts was seeing the faces of my colleagues from Thorpe Molloy, who volunteered in the support team. They were always so encouraging and reassuring and such a welcome sight after cycling for miles in the rain!” Two local firms used pedal power in aid of good causes when their employees took on one of the North East’s most gruelling biking challenges, Ride the North, in a bid to raise money for two local charities. The event, which took place in August, saw teams of colleagues from Stronachs LLP and Thorpe Molloy Recruitment – who were amongst 700 riders taking part in this year’s fund-raising event – saddle up for the two-day, 170-mile cycle through the Grampian Highlands to raise funds. On the first day of Ride the North, they travelled through the Cairngorms National Park, before following the Spey Valley back towards Elgin. Day two featured a few old favourites, as they cycled The Cabrach and over Suie Hill on the way from Elgin to Aberdeen. The route is not for the fainthearted and, even though it’s not a race,

keen entrants train hard for months, aiming to raise as much money for charity as possible. Twelve colleagues from leading law firm, Stronachs LLP (one of the team, Alex Smith, solicitor, pictured above, with team shirts), took part this year for both the Maggie’s Centre in Aberdeen and The Sandpiper Trust. Marketing manager of Stronachs, Judi Taylor, said: “Ride the North is a fantastic event and as a firm we are passionate about supporting it. Having already raised over £10K+ in previous years, we are delighted to have added over £3,000 to the total this year.

Thorpe Molloy’s fund-raising total currently stands at an amazing £17,000 and this is increasing by the day. The cash is going to one of Ride the North’s affiliated charities, The Sandpiper Trust, which helps save lives in rural areas by providing doctors with emergency equipment.

The law firm, also supports another local charity, The ARCHIE Foundation, and organises a variety of fund-raising events throughout the year. Like many of her fellow teammates, Gemma

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BUSINESS & COMMUNITY

Golf-Loving Colleagues Raise £700 for Charity Finalists in the DF Communications Business Golf League have raised £700 for the British Heart Foundation. Teams from 12 north-east companies tee’d off at the prestigious Castle Course in St Andrews after a summer of competition. Greg Davidson and Mike Halliday of Fugro clinched top prize. In addition to the trophy, the duo also collected a Castle Course framed flag and a magnum of champagne each for their efforts. The Premier Oil team of Keith Hendry and Craig Smith finished as runners-up, while Jim Campbell and Neale Watson of Stork came third. As part of a combined Stableford competition, Fugro won courtesy of a better

inward half, having tied on 59 with Premier Oil. The Stork team finished with a score of 58. Craig Forsyth, sales director at DF Communications, said: “It was a fantastic day out and everyone involved seemed to thoroughly enjoy themselves. It was also a great opportunity to raise some valuable funds for the British Heart Foundation, which will help them continue their terrific work.” Any businesses interested in taking part in the 2015 DF Communications Business Golf League should contact Craig Forsyth at golf@dfcommunications.com

KPMG Team Take the Ice Bucket Challenge The partners and directors at KPMG Aberdeen took part in the latest online viral sensation, the Ice Bucket Challenge, and raised funds for a good cause. The management team braced themselves as buckets of icy water were emptied over them, with all contributions donated to their chosen charity, Charlie House. Charlie House is a local charity that engages in activities and projects to support children with complex disabilities and life-limiting conditions. The challenge took place in the front car park of the Aberdeen KPMG office at 37 Albyn Place. Staff nominated a member of the management team to receive the ice bucket, paying their donation at the same

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time. The frontrunners, who were brave enough to undertake the challenge, were Duncan MacAskill, Paul Glendenning, Dane Houlahan, and Martin Findlay. The heroic foursome (pictured) raised a magnificent £600 for Charlie House. Videos of the ALS Ice Bucket Challenge have been making the rounds online, with many notable celebrities taking part. The campaign aims to raise money for ALS, known in the UK as motor neuron disease, and challengers have also contributed to a number of other charities that are important to them.

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BUSINESS & COMMUNITY

Kerloch Extends Peterhead FC Sponsorship Oil and gas service company Kerloch Oil Tools is once again the official match shirt sponsor of Peterhead Football Club (pictured) for the coming season. The Aberdeen-based firm signed a one-year extension to its sponsorship agreement with the Scottish League One side – last season’s League Two champions. The agreement means that Kerloch Oil Tool’s logo will adorn the Blue Toon’s home and away shirts – the design of which is unchanged from last season – until the end of the 2014-15 season. Based in Bridge of Don, Kerloch Oil Tools specialises in premium threading and the repair and

manufacture of oilfield country tubular goods (OCTG) for the global oil and gas industry. Kerloch Oil Tools business development manager Tony McDermid said: “Peterhead had a very exciting 2013-14 season, culminating in being crowned League Two champions. Kerloch Oil Tools is very proud to be continuing our sponsorship of Peterhead FC this season as the club embarks on its campaign in League One.

“The team played extremely well last season and have continued their good form pre-season. They proved to be great ambassadors for their club, its sponsors and the north-east, and we have seen very positive brand benefits as a result.” Kerloch Oil Tools is also sponsoring Scottish professional golfer Stephen Gray this year. Gray, who is attached to Hayston Golf Club, is currently competing in The PGA in Scotland Tartan Tour.

Petrofac Management Conquers Bennachie Petrofac management have raised more than £7,000 for an Aberdeen charity Petrofac management have raised more than £7,000 after completing their latest fund-raising challenge – to carry Aberdonian wheelchair athlete Kenny Herriot up and down Bennachie. Despite the rain, a 20-strong group, including Petrofac’s Europe leadership, successfully

scaled the 1,700-foot peak, working together to carry Kenny safely to the summit in a specially modified wheelchair. All funds raised go to Petrofac’s chosen ‘Charity of the Year’, Friends of the Special Nursery. The Bennachie challenge is one of a range of fund-raising activities being undertaken

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by Petrofac teams and departments, and they have already secured more than half of their initial target of £33,000. Kenny Herriot said: “I was delighted to take part in this exciting and challenging day and put my life in the hands of the leadership for a great cause.”

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NORTHERN STAR AWARDS

Organised by Aberdeen & Grampian Chamber of Commerce and now in their eleventh year, the Northern Star Business Awards recognise companies in the North East for their exceptional accomplishments across a range of fields from energy to innovation; people development to customer service. Thirty-eight finalists joined the 800 guests at the Aberdeen Exhibition and Conference Centre, all eager to find out who would lift the award in each of the 14 award categories. The host for the evening was newsreader Fiona Armstrong, a familiar face on national and regional news for many years. The principal sponsor for the event was Aberdeen Harbour Board, one of Britain’s oldest businesses and a valued and long-standing member of the Chamber. The winners in the 14 categories were as follows: Lifetime Achievement Award – Sir Ian Wood Achievement in International Business – Entiér Ltd Best Campaign of the Year – OilCareers.com Commitment to Innovative Use of Research and Development – Plexus Ocean Systems Ltd Commitment to People Development – Bibby Offshore Excellence in Customer Service – Pentagon Freight Excellence in Health and Safety – Concerto Live Scotland Outstanding Contribution to Society – Saltire Energy Outstanding Contribution to the Energy Sector – Bibby Offshore Overall Business of the Year – Inoapps Rising Star – Andrew Ferguson, Eden Scott Student Placement – KCA Deutag The Business Diversity Award – Glencraft (Aberdeen) Ltd The Green Award – Élan Hair Design Saltire Energy was awarded the Outstanding Contribution to Society accolade as a result of its ongoing support for local charity initiatives. Mike Loggie, chief executive of Saltire Energy, said: “This award is a fantastic achievement for Saltire Energy. Supporting community initiatives is a real passion for me and for the company. The entire team are thrilled to have our Saltire in the Community Programme acknowledged amongst the north-east business community.” Aberdeen-based Pentagon Freight was presented with The Excellence in Customer Service Award, which recognises a company that consistently delivers outstanding customer service and can demonstrate, through structured assessment and satisfaction measurement, that meeting customers’ needs is a priority throughout its entire business. Neil Youngson, general manager at Pentagon Freight Services Aberdeen, said: “We have experienced exceptional success and growth in recent years and the most significant contributing factor are the value added services we offer our clients. To be presented with this award is a huge achievement and recognises the efforts that our staff bring to the job every day.”

The Commitment to People Development award, won by Bibby Offshore, recognises the company that has shown the most commitment to developing its staff through skills and personal development, investment and achievement programmes and outcomes. Bibby Offshore’s chief executive, Howard Woodcock, said: “We are extremely proud to have won in both categories we were shortlisted for at this year’s Northern Star Business Awards. It is recognition of everyone at Bibby Offshore’s dedication to achieving our goals.” Leading oil executive, Sir Ian Wood, was handed a lifetime achievement award for his outstanding contribution to the region. His work in building up one of the largest oil supply chain companies in the country, as well as his public service and charity work through the Wood Family Trust, combined with his recent leadership of influential government commissions, made him a popular choice for this award.

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1 2 3 4 5

Heather Stephen, Fiona Whitehouse and Kate Bullock Gary Henderson, Pauline Souter, Kerri Westland and Blair Hendry Jan Tinning with Kelly Ackers Donna Hutchison with Fraser and Susan Coull. Gary McEwan, Aberdeen Lord Provost George Adam, Fiona Armstrong, Lynne and Alec Carstairs, with Lynda and Bob Collier. 6 Roger Hunt, Carol Benzie and David Oâ&#x20AC;&#x2122;Neill. 7 Roger Brimmer, Alison Chandler, Colin Parker, Fiona Armstrong and Rita Marcella. 8 Alana Murray, Tom Heavens, Katie Hay and Stacy Edghill 9 Lyndsay Brand, Naz Hussain, Karen Gauld and Katie Hay 10 Jim Davidson, Lisa George, David Bain and Rhea Hussey 11 Barry Douglas, David Quantrill, Lynne Knapper, David Anderson and Stuart Davidson 12 Erika Zausajeva, Melissa Bryce, Angela Dow, Lynn Hedley and Iwona Dassko-Rejzner Photographs courtesy of Donald Stewart Photography

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SCOTTISH HOME SHOW 2014

Design for Better Living

The award-winning Scottish Home Show recently returned to the Aberdeen Exhibition and Conference Centre, welcoming thousands of visitors through the doors over its three-day weekend. From some of the most luxurious home and garden merchandise, to innovative new technology, gadgets, garden designs, conservatories, and the latest home interior designs, kitchens and bathrooms, the SHS – organized by Xcite Media – showcased all the best products and design associated with the home improvements market.

exhibitors.

brand

DIY enthusiasts from the North East were also

names AGA, Baxters Food Group, Costco,

treated to celebrity guest appearances and

BoConcept, Town and Country Apartments

practical demonstrations throughout the rest

and Dandara. Lorraine was well placed to

of the weekend from Tommy Walsh – best

open the show, as she is also a trustee for

known for his role in gardening renovations

the STV appeal – the fundraising beneficiary

hit TV series, Ground Force, and Linda

of all Xcite Media events for 2014.

Barker, home improvement TV presenter and

Following a successful first day, Friday

talented interior designer. From printing your

evening

These

included

welcomed

big

hundreds

VIP

guests, who were treated to a special

own pillow to tips for building your own ecohouse, there was something for everyone to

event and drinks reception, sponsored by

turn their hand to.

STV. Aberdeen’s Lord Provost opened the

With several bookings already confirmed

TV presenter Lorraine Kelly officially cut the ribbon on the Friday morning to open the show to the public, who were treated this year to a record number of industry

proceedings before guests were invited to

for the 2015 exhibition, The Scottish

meet the show’s exhibitors, take part in an

Home Show continues to go from strength

omelette challenge and participate in the

to strength as one of the largest home

STV Appeal prize draw.

improvement shows in Scotland.

(Row 1 Left-Right) Breakfast TV star Lorraine Kelly cuts the ribbon to open the 2014 Scottish Home Show at the AECC. Gavin Esslemont, Tommy Walsh, Linda Barker and Darren Ross. Gary Hutton, Aileen and Geoff Woodger with Bob Heller.

(Row 2 Left-Right) Diane Wood, Lynne Watson and Louise Thomas. Andy Gaskell, Kim Woolner, Mike Watson and Sandra Woolner. Taking part in the omelette challenge are Pam Richardson and Aberdeen Lord Provost George Adam.

(Row 3 Left-Right) Diana Bucovenie, Elizabeth Gibb, Shelagh Swanson and Elisabeth Holtslag. Rebecca West, Sheena Miller, Charlotte Tribe and Steph Jamieson Kirstin Gove, Roy Stewart, Isla Stewart and Darren Ross.

Photographs courtesy of Donald Stewart Photography

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LIFESTYLE

McCalls Put App in Appearance Scotland’s largest highlandwear specialist, McCalls, has added a touch of tartan to customers’ digital shopping experience with the introduction of an interactive mobile app and a personalised sporran designer. The Aberdeen-based company has come up with the innovative concept to help customers uncover the perfect outfit for any occasion, and from any location. “The nature of buying highlandwear can require a great deal of time spent on research and usually involves several visits into the store to make sure everything is just right,” says Iain Hawthorne, managing director at McCalls. “Launching a mobile app – something which is becoming a core part of online retail – will help ease the process for our customers and enable them to go through the shopping process from the comfort of their own home, at a time that suits their lifestyle. “Customers can browse and purchase from an extensive range of custom-made outfits and products. The idea is to save people valuable time by enabling them to carry out all the investigative work required before they even step foot into one of our stores.” The app, which can be downloaded to certain devices – including iPad – via the Apple App Store, boasts a number of interactive services, including an exclusive outfit designer. The platform allows people to experiment with a range of styles, fittings and tartans to help find their perfect kilt outfit. Customers can then share their order with family and friends or arrange a fitting at their nearest McCalls branch.

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Additionally, the business has launched a new feature that allows customers to design their own sporran. The service, currently available on the company’s website, tailors the sporran’s design from the skin to the tassel. The sporran design feature was created following the success of McCalls’s existing interactive outfit designer features, which give customers the chance to browse through a wide range of tartans, jackets, ties and other accessories and then hire or purchase. Iain Hawthorne said: “The new app and our custom-made sporran designer are intended to make McCalls’s vast collection of tartans, highlandwear and accessories even more accessible to customers. These changes demonstrate the business’s proactive approach to finding innovative ways to keep up with customers’ demands. “We expect both services to prove extremely popular, particularly given the increased opportunities for our customers – many of whom live overseas – the opportunity to shop online.”

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PERSONNEL

Recent Appointments... AM-PM - Russell Davidson

A leading Aberdeen property company has announced a key appointment that will help drive the future growth of a rapidly growing division. Russell Davidson has joined AMPM Serviced Apartments to manage the company’s growing number of short-term lease properties. He brings to the role a decade of experience in the hospitality sector, gained in a variety of positions in Aberdeen and Edinburgh. AM-PM Serviced Apartments’ portfolio has grown from three to 26 properties in just 12 months. The luxury properties are located in premier locations throughout Aberdeen.

Town and Country Apartments Tim Waters, Operations Manager One of the North East’s largest providers of serviced accommodation has strengthened its specialist team with the appointment of a new operations manager. Town and Country Apartments has promoted Tim Waters to the role as it forges ahead with plans for further expansion throughout Aberdeen and the north-east of Scotland. Tim already has an extensive insight into both the company and the north-east market, having been part of Town and Country Apartments’ operations team since joining the company in May 2013. Leading energy firm Hunting Energy Services has appointed a new regional manager for Norway as it targets a period of strategic growth within the Scandinavian oil and gas market. The firm has welcomed Ørjan Frøyland to the role, who will be responsible for overseeing the establishment of the Hunting brand within the region, with a particular focus on the growing Norwegian and Danish markets. Ørjan brings nearly 20 years of experience to the position, having previously worked within some of the world’s leading energy sector firms.

Evoke IT - Teresa Collie, Support Services Manager

Hunting Energy Services Ørjan Frøyland, Regional Manager

Aberdeen’s SharePoint specialists, Evoke IT, have welcomed Teresa Collie to the team as for working with clients and the support team in Aberdeen, specialising in delivery and training. Teresa, who is from Aberdeen and has worked in IT for 20 years, said: “I am delighted to be joining Evoke IT at such an exciting time in the company’s development. With a strong customer focus and experience in service delivery, I look forward to further developing the support team to provide service excellence to our clients.”

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Scotland’s largest independent firm of chartered accountants and business advisers, Johnston Carmichael, has strengthened its oil and gas focus with the appointment of a new tax director. VAT specialist Fiona Weir joins the tax team where she will service clients from the firm’s Aberdeen and Edinburgh offices. Commenting on her appointment, Fiona said: ”I am very pleased to have joined Johnston Carmichael and look forward to contributing to the work undertaken by the firm’s tax team.”

Borland Insurance - Stuart George, Commercial Insurance Account Executive & Bruce Law, Manager of General Insurance Operations NE Borland Insurance has recently appointed Stuart George (pictured right) as commercial insurance account executive. Stuart brings over 17 years’ experience to the role, having previously worked at various insurance broking firms in Edinburgh and Fife. He will be responsible for the continued growth of Borland’s operations in Edinburgh, Fife, Aberdeen and the Central Belt.

a support services manager to be responsible

Johnston Carmichael Fiona Weir, Tax Director

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Bruce Law (pictured left) has been appointed as manager of Borland’s general insurance operations in the North East. He will be focused on sourcing competitive insurance solutions and providing a personal service for existing and new Borland clients.

PERSONNEL

Optimising Connectivity Offshore Vital to Staff Retention Many of us check our smartphones throughout the day and don’t give a second thought to picking up the phone to call a family member The sense of irritation swings in if we lose Wi-Fi connectivity to our iPad or if our network goes down, but imagine if this happened recurrently every day for up to six weeks at a time. This is still unfortunately something that is not unheard of in an offshore environment. Hugh MacKay, director at IP communications and network services business, 4MS Network Solutions, gives us an insight into why poor connectivity offshore has become a hot topic of consideration when it comes to crew welfare and staff retention. “Attracting and retaining staff in the offshore sector is notoriously challenging. Not only do operators and service companies initially have to compete against some of the highest salary brackets in the world, but they then also have to provide incentives to keep personnel within the company as time goes on. “With staff turnover comes the cost of retraining personnel in everything from multi-million-pound contract work to basic activities,” says Hugh. “Not only does this have a financial implication for the business, but it also has a detrimental effect on productivity and crew morale.

“Companies have to examine the key contributors to staff departure more closely. The nature of the business means that crew have to work in remote and often harsh environments for an extended period of time, away from friends and family. This is when a sense of boredom can creep into the monotonous life cycle of the offshore worker. The lack of entertainment and poor connectivity to ‘the rest of the world’ aboard platforms and offshore vessels is still an unfortunate reality for some. “Where terrestrial communication methods, such as smartphones, are an everyday commodity onshore, the remote offshore environment renders such technologies inoperable due to a lack of communication infrastructure. This often leads to a sense of frustration, with crew citing the lack of access to low-cost voice and data services to make contact with friends and family as something that makes them seriously question their offshore role. “This is why companies are now moving to adopt crew welfare initiatives, which incorporate advanced communication solutions, to assist in the improvement of working conditions and quality of life offshore. Optimised communication

solutions can give crew access to the Internet, social media, telephone services and video calling.” Hugh continues: “Whilst it used to be commonplace to stand in a long queue to make contact with those onshore via a single connection, multiple calling through a single IP connection is now the ideal, enabling several crew members to call home at the same time. “Where the Internet is concerned, operators are now taking the move to upgrade and enhance operational efficiency to meet the demands of the crew and new bandwidthhungry technologies, such as iPads. Employees want to communicate much more than just via email; they want to stay online and in touch 24/7.

“The best option is for companies to move with the times” Providing dedicated services for welfare with flexible packages per crew member will keep workers much happier, without compromising the security and availability of business communications systems. “Those companies not making the critical move to implement crew welfare policies for connectivity can be faced with challenges from unions, calling for immediate change. Where change has not been implemented, companies have simply seen staff turnover increase. “The best option is for companies to move with the times and implement optimised communications. Not only does it provide readily available connectivity for many people at once, but it also enables secure connection at an affordable rate.” For more information on crew welfare and the systems available for the offshore environment, contact 4MS Network Solutions on +44 (0) 1224 825 088.

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PERSONNEL

Bertha Brews Up a Storm With the arrival of hurricane Bertha this summer, it is clear that the Scottish weather can be very unpredictable, potentially causing a tremendous amount of disruption to individuals travelling to work. establishing the importance of employees communicating their absence quickly, this will help reduce possible tensions in the office with other members of staff, which may occur.

In the height of the bad weather, the Scottish Environment Protection Agency (SEPA) issued almost 40 flood warnings covering the Aberdeenshire, Speyside, Moray, Caithness and Sutherland, and Tayside areas, which caused major problems for commuters but also for employers. As an employer, it is important to appreciate the difficulties some employees may face when travelling to their place of work. However, it is equally as important to ensure provisions are in place to allow dayto-day services to continue for clients and customers. Aberdeen-based HR and employment law company, Empire, suggests companies should have extreme weather policies in place to ensure employees are aware of the procedures in the event of adverse weather. Director at Empire, PJ Chalmers (pictured), said: “Adverse weather can have

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a significant impact on businesses and it is essential that they have the correct policies in place and share these accordingly with their staff. “It is paramount to the business’s productivity that employees are fully aware and understand their responsibilities and what is required of them in situations where adverse weather may affect their working schedule.”

Here is a snapshot of some points to consider: Stay in contact Ensuring employees understand that keeping employers informed of their travel progress is vital to the smooth running of the day-to-day business. Encouraging individuals to contact and discuss the situation with the line manager promptly is crucial to allow time to prepare other staff for late arrivals and possible absence. By

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Employee responsibility Members of staff should be prompted to think about their adverse weather plans in advance and alternative routes and methods of getting to work should be planned. Travel can be affected greatly in stormy or bad weather, with public transport potentially being cancelled or operating on reduced times, and delays in road travel due to road closures and slow driving. It is ultimately the responsibility of the employee to decide whether or not they believe it is safe to travel into work. Employees should only stay at home if they feel this is the last possible measure that should be taken. Be understanding If employees do not turn up for work without prior warning, employers have the right to not pay individuals. Nonetheless, it is extremely important that employers show empathy and understand that certain circumstances can cause disruption for employees. If it is obvious that an employee has not attempted to venture into work, this could be classed as an unauthorised absence, which could potentially result in disciplinary action. However, employers need to understand that, in certain circumstances, it is safer for employees to work from home. Is it worth it? In the case that employees cannot physically make it into the office because of the unpredictable forecast, some businesses will have technology in place with external platforms for employees to access work out of the office, presenting

PERSONNEL the opportunity to work from home. Although the employee is not physically in the office, they may be safer at home in extremely bad weather conditions and this can prove more productive than attempting to get into the office, sitting in traffic for long periods of time. Be flexible It is vital in this situation to be flexible. It is understandable that the weather is affecting individual routes, be that fallen trees, flooding and even excess traffic on the roads. As an employer it is important to show some level of adaptability and, by doing so, this can increase morale and productivity as employees do not feel under pressure to ensure they are in the office for a set time. Within the extreme weather policy employers should include what employees will be required to do when trying to get into work on time and outline how the day-today work of the business will continue. It is advisable to include a copy of the policy in the company handbook to ensure there is no confusion regarding the expectations of employees, and it should also cover issues such as how late arrivals will be dealt with and how it could affect wages. The HR and employment law firm, which is headquartered in Aberdeen, offers a free online adverse weather policy for employees and employers, which can be downloaded from www.empirehr.com/ news/general/free-adverse-weather-policy/

Adam & Co. Continues to Grow Adam & Company is delighted to announce the appointment of four team members to its Aberdeen office at 9 Rubislaw Terrace, bringing the team total to 12. The hires, which include a new financial planning manager, senior business development manager and two support staff are all newly created roles and are further evidence of the ongoing success and commitment to Aberdeen. Ricki Garden joins Adam & Company as a financial planning manager from Anderson Anderson and Brown. Ricki will work closely with Aberdeen clients to offer bespoke and specialist financial advice to meet their individual objectives. Ricki brings with him over 25 years of experience from within the regulated financial services industry. Louise Smith joins as a senior business development manager and will work to develop new networks across different sectors introducing the services that Adam offers to new clients. She will also work with existing clients to ensure the delivery of meaningful long-term relationships.

Louise joins from RBS, where she has worked closely with both commercial and personal banking clients. Monica Tonissoo joins Adam & Company as paraplanner. In this role, she will support the financial planning managers, as they work closely with clients to deliver bespoke solutions. Monica brings with her four years experience of working with high net-worth clients, including as a private banking assistant in London and, prior to this, as a trust assistant based in Switzerland. Aberdeen-born and bred, Adele Milne joins Adam as a private banking assistant from a customer services-based role within RBSâ&#x20AC;&#x2122;s customer services team. Adele started her banking career in 2010 and is now embarking on professional banking qualifications in order to continually develop her knowledge and experience.

Research Reveals Mental Health Sufferers Pressurised A shocking 68% of full-time workers polled would worry about telling their employer about a mental health condition, fearing a negative response, the Priory group revealed. The shadow of mental health stigma fell even more heavily over those whose job roles may be more precarious: An alarming 77% of part-time and over 80% of selfemployed workers would worry about disclosing a mental health condition to an employer for fear of the repercussions. The study flags up an alarming desire to escape workplace stigma at any cost, as over half of the population surveyed would be forced to consider self-employment in the face of

workplace mental health stigma.Where are the warning signs? Mental health sufferers are first in line. They are the canaries. They are the people who will show first if the environment isnâ&#x20AC;&#x2122;t conducive in terms of stress. The first person who will suffer is the person who is not particularly resilient to stress. The study also found that: 79% of those polled without a mental health condition would worry about telling their employer if

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they did have one; 91% of those awaiting a mental health diagnosis feel the stigma around mental health would lead/has led them to consider self-employment; three quarters of women would worry about telling their employer, compared to two thirds of men; 38% of 18- to 24-year-olds felt they could tell their employer about a mental health condition; the second most likely age group to be able to tell were the 25- to 34-year-olds.

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BUSINESS EVENTS

Granite Expo On Track For Record-Breaking Year A popular annual business showcase is on track for yet another record-breaking year. Now in its fourth year, Granite Expo will take place at Aberdeen’s Hilton Treetops Hotel on Thursday, 30 October, and the event has again attracted a broad spectrum of exhibiting businesses ranging from locally based SMEs to global operators with links to the region. With 75% of space already snapped up, exhibitor numbers are expected to reach an event record of 140 this year. Granite Expo 2014 will be officially opened by well-known local entrepreneur, Professor Charles Skene. In addition to a wide range of stands, there will be an exhibitors’ breakfast sponsored

by Ledingham Chalmers, a funding lunch hosted by BusinessPlus Scotland, a series of business seminars and a prize draw. A networking café sponsored by Caber Coffee will raise funds for Inspire, whilst British Airways will hold a grand raffle to win long haul flights in aid of the company’s local Flying Start initiative in aid of Comic Relief. Founder and managing director of event creators Granite PR, Brett Jackson, commented: “Granite Expo has become a much-anticipated event on the local business calendar and we look forward to welcoming exhibitors, delegates, sponsors and supporters for what promises to be

EVENTS CALENDAR 16 October 17 October 18 October 20-22 October 21 October 27 October 29 October 29 October 3 November 4 November 4 November 6 November 6 November 6 November 11 November 11 November 12 November 13 November 15 November 18 November 20 November 20 November 24 November 25 November 2 December 2 December 4 December 4 December 11 December 18 December 11 January 17-18 January 22 January 27 January 29 January

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AGCC Understanding the Oil and Gas Industry ENET Finance ENET Start Up Awareness Low Carbon Networks & Innovation Conference AECC ENET Business Planning AGCC Tourism – Strategy for Growth AGCC Doing Business in the Eastern Mediterranean Basin BNS Edinburgh Skills Scotland Aberdeen AECC ABN Face-to-Face Networking Event AGCC Energy Network Evening AGCC The Annual Employment Law Conference 2014 BNS Glasgow Oil & Gas UK Awards AECC ENET ICT SCDI Business Seminar AGCC Pensions, a Lamborghini & the changing landscape BNS Aberdeen ENET Start Up Awareness ABN M4 Networking Event BNS Edinburgh ENET Business Planning ENET Marketing SCDI Influencers’ Dinner ABN Face-to-Face Networking Event AGCC Women Mean Business AGCC Leadership Business Breakfast BNS Glasgow BNS Edinburgh BNS Aberdeen ENET Finance Your Wedding Exhibition BNS Glasgow BNS Aberdeen BNS Edinburgh

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another giant day of exhibiting, crossselling, networking and knowledge sharing.” Granite Expo 2014 is also supported by Orchid, Grampian Credit Union, Clydesdale Bank, RGU, Visit Aberdeen and NEC. To find out more or to book a stand, contact event managers BusinessPlus Scotland at bpscotland@btopenworld.com or call (01651) 891790. For more information about Granite PR, visit www.granitepr.co.uk or call Granite PR on 01224 576070. Alternatively, follow Granite PR on Facebook, Twitter and LinkedIn.

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 2

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