Issue 19 Spring 2020
Issue 19 Spring 2020
Putting the Now in Business
BUSINESS NOW
Putting the Now in Business
The Business Sense of Employee Benefits Coffee With... Steven Clark - Together Aberdeen Property Market & Brexit Relationships Explained Six Top Tips for Going It Alone
A typical CALA street scene
The Darroch showhome at The Grove
A typical CALA street scene
ABERDEEN BUILT. Extraordinary homes, extraordinary city. This is where it all began for CALA. Since 1875, we’ve built an outstanding reputation for outstanding homes. And we’re proud of our Aberdeen roots, because home is where our heart is.
Stuart Moggach, CALA Homes customer experience manager, from Aberdeen 5 star customer service
5 stars awarded for customers’ willingness to ‘Recommend to a Friend’ in findings of the survey undertaken by the Home Builders Federation 2017/18.
Advertising Feature
HOME I S W H E RE TH E H EA RT IS Lifestyle photography
You don’t have to look very far to discover one of the UK’s most aspirational housebuilders. CALA has a rich heritage that’s evident throughout Aberdeen and beyond. The city has been its home since 1875 and with exciting new developments helping to build a sustainable future for local residents, it looks like CALA is here to stay. Founded as the City of Aberdeen Land Association, CALA has played an enormous part in creating the very fabric of the Granite City, planning and shaping its most iconic and beautiful streets such as Queens Road, Carden Place and Rubislaw Terrace.
PROPERTIES WITH A SENSE OF PLACE
apartment, rural family retreat or city pied-
development or a vibrant new ‘village in
a-terre, CALA Homes offers an outstanding
the city ’, homes are designed to look good
choice for discerning buyers across the UK.
together, mature well over time and sit well
CALA’s strong presence in the North of
THE CALA DIFFERENCE
within their individual setting.
Scotland continues to grow. Especially with
So what makes CALA stand out from other housebuilders then? The focus on contemporary
A LASTING LEGACY TO LOOK FORWARD TO
design and high quality craftsmanship is
Being a responsible company, CALA’s
Now building premium homes right across Scotland, the Midlands and South of England,
exciting flagship developments like Craibstone Estate, promoting a healthier and more active lifestyle, Mains of Grandhome, with its vibrant and characterful neighbourhoods, the exclusive country charm of Oldfold Village and the urban riverside chic of Southbank.
plain to see. All of CALA’s new build homes come with an NHBC 10-year warranty to give you added peace of mind. Plus the levels of expertise and care you can expect are quite
contribution goes far beyond building homes. It’s inherent in the way land is bought through close community consultation, the conservation of the natural habitat, the health and safety of
Homes are light and spacious, combining
unparalleled.
traditional design features with contemporary
For the past decade, CALA’s customer service
the careful consideration of each design and
has been awarded the maximum 5 star rating
the positive support of every employee.
comfort. Set in sought-after locations, with generous gardens and beautifully landscaped surroundings, they offer striking kerb appeal. Whatever you’re seeking, be it a stylish A previous CALA showhome
in an independent survey by the House Builders Federation (HBF). Together with a whole host
staff, customers and sub-contractors on-site,
Everyone at CALA takes pride in doing their
of regional and national awards, most recently
bit to improve local facilities and create
winning ‘Homebuilder of the Year ’ at the
sustainable communities. CALA is committed to
Homes for Scotland Awards 2019.
the long-term success of Aberdeen, supporting
BORN AND BUILT IN ABERDEEN The CALA name may have a national presence, however, it’s the local knowledge drawn from many years of experience and love for
many different charitable causes through bursaries and partnerships with businesses, charities and community groups, including being the main sponsor of Inverurie LOCOS.
the Aberdeen area that make the biggest
All of which helps CALA continue to set the
difference.
standard and leave a lasting legacy throughout
For CALA, the design of a home doesn’t
Aberdeen.
stop at the front door. A passion for creating
To discover where and how CALA is
vibrant and sustainable communities means
helping to build a brighter future for
that whether it’s an exclusive countryside
the North of Scotland, visit cala.co.uk
SECTION HEADER INTRO & CONTENTS
Welcome to the 19th issue of P6-7
Thankfully the years of turmoil over Brexit are behind us and it’s onwards and upwards, we hope!! There is some great news on the horizon for the North East with the fourth Investment Tracker capturing the scale of infrastructure projects planned, revealing £10.1 billion of private and public investment is due to be delivered before 2030. Also, good news for the community is highlighted in our cover story, as Acumen Financial Planning reveal expansion plans to include Acumen Employee Benefits, an experienced team of experts who ensure employers requiring guidance can seek assistance locally. Exclusive features include ‘Tips on Going it Alone’ and we explore how 60% of students have a side job because the cost of living is too high. My ‘Coffee with’ guest this month is Steven Clark who is regional development director with Together, who are experts at delivering specialist finance. A ‘top’ bloke and a must-read! I must also thank Stevie Leask and Gioia Brogioni, two media students at RGU who have been working with us recently. Enjoy their contributions throughout this edition. Daylight hours are visibly stretching now and we look forward to spring and the joys of better weather.
On the Cover Meet the team from Acumen Employee Benefits and find out how they can guide you to motivate and engage workers
Eric W. Farquharson - Editor
Six Top Tips for Going It Alone
P.27
P.36
Ensure your new business reigns supreme as you take on a new challenge and chase your dream career
The first decade - Out of adversity comes opportunity The future looks bright for Northwood Aberdeen as it launches new service
P.40
Aberdeen Property Market & Brexit Relationships Explained
Property experts express their opinions on data regarding Scottish house market after Brexit - By Gioia Brogioni
Editor
Advertising Enquiries
Design
Eric Farquharson editor@business-now.co.uk
Telephone: (01224) 865466
Jennifer McAdam studio@business-now.co.uk
Assistant Editor Judy Marshall judy@business-now.co.uk
Simon M Morgan simon@business-now.co.uk Loraine Ogilvie enquiries@business-now.co.uk
On the Cover Andy Eason - Acumen Photograph: Abermedia
Published by House of Morgan (Scotland) Ltd, 479 North Deeside Road, Cults, Aberdeen, AB15 9TJ
(01224) 865466 www.business-now.co.uk Printed by Buxton Press UK
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 House of Morgan (Scotland) 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 House of Morgan (Scotland) 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.
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Figures on Upswing for Hospitality Aberdeen hospitality and room availability on rise for 2020 By Stevie Leask
P.36
P.48
Does ‘Cycle to Work’ Scheme Actually Work?
Government programme started in 2000 to improve health and environment. Has it had any impact?
Coffee with…
Steven Clark BUSINESS NOW’s editor gains insights into specialist finance over a flat white
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Index Business............................. 8 - 13 Feature..............................14 - 15 Energy...............................16 - 25 Feature..............................26 - 27 I. T. ...................................28 - 29 Feature..............................30 - 31 Finance..............................32 - 33 Feature..............................34 - 35 Property.............................38 - 39 Feature..............................40 - 41 Food & Drink......................42 - 43 Hospitality.........................44 - 45 Coffee with.........................46 - 47 Features.............................48 - 51 Sport.................................52 - 53 Feature..............................54 - 55 Appointments............................56 Networking................................57 Events Calendar.........................58
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SECTION HEADER
Left to right: Anne Lawson, Nigel Saunders, Nicola Norrie and Andy Eason
The Business Sense of Employee Benefits Acumen Employee Benefits’ team of experts guides employers to motivate and engage workers Engaged employees produce better business outcomes than other employees – across industries, company sizes and nationalities. In good economic times and bad.
In fact, the CIPD2 says employee benefits offer a way to attract and retain people, contribute towards improving well-being and encourage the required behaviours, achievements, values and skills.
a wide range of benefits such as salary
That’s according to a Gallup workplace report1 which adds engaged business units see a 41% reduction in absenteeism and a 17% increase in productivity, with engaged workers more likely to stay with their employers, achieve better outcomes for customers and increase profitability.
And that’s in line with Acumen Employee Benefit’s (AEB) perspective: tailored benefits packages are an important part of attracting, engaging with, motivating and retaining the right people.
winning firm, Acumen Financial Planning,
But how do employers help create that culture? One thing’s for sure – it has to be more than lip service.
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Recently established in the northeast of Scotland, AEB has assembled an experienced team of experts who work with clients to implement this personalised approach, drawing from
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exchange, group risk policies, or private healthcare provision. Acumen Employee Benefits is part of The Financial Planning Group, home to award and are based at their office in Westhill.
The team The team is led by Andy Eason, who has 30 years’ experience in the employee benefits service sector and has delivered consultancy services to a wide range of
clients,
from
SMEs
through
to
multinational public limited companies.
COVER STORY
He has since brought in key members of the consultancy team, including Anne Lawson, who has worked in an Aberdeen employee benefits consultancy for over 25 years, and is recognised for her oiland-gas sector expertise. Nigel Saunders recently joined too. He has a broad employee benefits background with a number of years based in the south. Both are highly respected professionals in their field – importantly too, they know the regional business sector inside out. In addition, AEB has an experienced administration team. Another key link in the chain of recruitment was when Nicola Norrie joined. Nicola has an enviable reputation at local and national level in service delivery and managing clients. Andy said: “We now have a formidable team; we believe it to be the largest resident Employee Benefits team presence in the North East. Our knowledge and experience in this sector is second to none. We are very much a local team, fully invested in the area, with us all living and working locally and therefore fully aware of local business dynamics. “With that in mind, we’re ideally placed to support businesses across the North East in delivering programmes that reap benefits for organisations, and their workforces.”
Salary exchange One of the services that’s most in demand is salary exchange for employee pension schemes. After all, next to salary, pension is often a business’s largest workforce spend. Since the advent of auto-enrolment, many employers have – with government approval – used salary exchange together with the workplace pension scheme. Here, an employer pays the employees’ pension contribution into a workplace pension in exchange for the employees accepting a reduction in gross salary for the same amount. Both reduce their national insurance contributions and employees can seek tax relief at their highest marginal rate without the need to correspond with HMRC – although it should be noted that this is not suitable for all and should be reviewed on a caseby-case basis. The team also looks at pensions’ governance, auto-enrolment compliance and support with IR35 legislation, which is set to change this year.
Group risk One area where the idiom ‘the devil’s in the detail’ rings especially true is group risk policies, such as life assurance, income protection or critical illness cover. Here, a gap in cover can have a significant impact on a business as well as an employee’s retirement planning. The team minimises risk with services including policy design, implementation and audit as well as ongoing management support.
Health and wellbeing The Labour Force Survey from the Health and Safety Executive says an estimated 28.2 million working days were lost due to work-related ill health and non-fatal workplace injuries in 2018/20193. So, taking steps to reduce the impact of sickness on employees and businesses makes sense. From an employer’s perspective, private healthcare provision as part of an employee benefits package is often seen as a gold star benefit: not only does it reduce employee absences, it’s well above and beyond an employer’s duty of care – and there’s the added bonus of extending this benefit to family members too. Whether on their own or as part of a package, private medical insurance, dental, health cash plans, and employee assistance, significantly enhance any employee benefits package. Of course, there’s plenty of choice out there, so AEB’s focus is on understanding what each client needs, and finding an option that’s ideally suited. Services include needs analysis and policy placement, policy audit, management, and support and market reviews
Benefit software Andy adds a great way of engaging with the workforce is providing them the access to and information about their benefits package, when they need it. To that end, implementing an employee benefits software platform not only allows businesses to monitor their expenses, but employees can also view and alter the benefits they want – on a smartphone or tablet – to suit their own circumstances.
Engagement – the catalyst for success And behind every employee benefits programme, Andy says, is a well planned and executed education and engagement plan. He said: “An employer can have the best benefits package in the world, but how much value does it have if employees are unaware and unappreciative? “Employee engagement can be catered for in a multitude of ways, whether it’s one-toone, part of a group session, a presentation or via the written word. Regardless of the delivery medium, the key message has to be consistently delivered, and it has to be the same: understanding leads to appreciation, which aids retention and motivation.” 1 https://www.gallup.com/workplace/236366/right-culture-not-employee-satisfaction.aspx 2 https://www.cipd.co.uk/knowledge/fundamentals/people/benefits/factsheet 3 https://www.hse.gov.uk/statistics/dayslost.htm
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BUSINESS NEWS
Company’s use of local granite in keeping with Aberdeen’s historic links Natural stone specialists Fyfe Glenrock have paved the way towards the reopening of the new look Aberdeen Art Gallery, providing iconic Scottish granite used in the streetscape around the attraction. Granite, which is synonymous with Aberdeen, has been at the heart of the project to enhance and improve the public realm, and creates a new chapter in the company’s 135-year-old connection with the art gallery. Richard Collinson, commercial manager at Fyfe Glenrock in Oldmeldrum, said: “The use of traditional north-east granite for this work maintains historic links between the Art Gallery and our company. “The gallery was originally built from an impressive combination of grey Kemnay and pink Corrennie granites. Both these quarries were owned by one of our company’s forefathers, John Fyfe, who drove the industry forward through innovation. “Aberdeen is renowned throughout the world for its granite history, and we are pleased to help maintain this status and heritage by providing quality stone for the new, userfriendly, paved areas around the Art Gallery and neighbouring Cowdray Hall. “These are among Aberdeen’s most beautiful granite buildings and the new-look streetscape is befitting of that.” The new plaza entrance at Schoolhill provides improved accessibility with steps and a ramp into the gallery. The footway area next to the Cowdray Hall and Aberdeen War Memorial has had concrete slab terraces replaced with granite.
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Fyfe Glenrock supplied local granites processed at its workshop in Oldmeldrum, complemented with additional EUsourced granite paving. Many of the kerbs, paving and setts have been made from Blackhills granite from Leiths quarry at Cove, Aberdeen. The stepped area in front of the gallery features pink granite sourced from Corrennie Quarry, Tillyfourie. Scottish whinstone has been used for corduroy paving, a surface that helps visually impaired pedestrians be aware of changes or potential hazards between steps and paving. Meanwhile, Kemnay grey granite paving around the Cowdray Hall and War Memorial comes from recycled stone taken from Aberdeen City Council’s demolition site stock. The choice of materials for the streetscape aspect of the redevelopment has been in keeping with special conditions relating to the historic nature of the area and its conservation status. Richard Collinson added: “Aberdeen has a unique cityscape based on granite for building, sculpture and monuments. In recent times there has been a growing appreciation of the benefits of using this indigenous stone to preserve Aberdeen’s distinct identity. “The quality of the granite hewn from Scottish quarries is second to none. Although requiring careful selection, it is recognised as being amongst the toughest and most resilient available, making it an incredible building material that leaves a lasting impression. “Therefore, it is fitting that it has been the stone of choice for the external area around Aberdeen Art Gallery, reinforcing the city’s granite heritage. Every year these pavements will be walked on by many thousands of people, both local people and visitors from all over the world, who come to visit the gallery.”
©Hoskins Architects
Fyfe Glenrock Pave Way to Redeveloped Art Gallery
BUSINESS NEWS
Investment in NE Scotland on Rise Chamber documents over £10 billion of investment benefitting the region The fourth Investment Tracker capturing the scale of infrastructure projects planned for the north-east of Scotland reveals that £10.1 billion of public and private investment is due to be delivered to benefit the region before 2030. Aberdeen & Grampian Chamber of Commerce’s investment update, produced in partnership with EY, shows committed future investment in the region has risen by £1.7 billion over the past 12 months. This comes on top of £800 million worth of projects being completed since the 2018 Tracker was published, including Aberdeen Art Gallery, the Music Hall, Banchory Sports Village and the region’s new world-class events complex, P&J Live. Much of the investment in the document is scheduled for the next three years and includes projects involving transport and infrastructure, office and retail, and leisure and culture, as well as health, sport and education. Significant projects included in the investment pipeline include: Digital connectivity – £77 million Aberdeen South Harbour – £350 million Kincardine Offshore Wind Farm – £500 million Blackdog Town Centre and Regional Food Hall – £150 million Peterhead Community Campus – £74 million Bio-Therapeutic and Food Innovation Hubs – £58 million Acorn CCS and hydrogen projects – £475 million Chamber chief executive Russell Borthwick said: “The Tracker tells a story of great progress for our regional
©Ashfield Land
economy, with £2.5 billion of infrastructure projects delivered since 2017 and more to come. The pace of change is breathtaking and a lot has happened in the last year, with the highlight being the full opening of Europe’s largest new road scheme, the Aberdeen Western Peripheral Route. “Looking to the future, we are seeing investment in new schools, healthcare facilities and quality housing, including a number of new town developments. This is accompanied by investment in new digital infrastructure which will make Aberdeen Scotland’s first gigabit city by 2021, benefitting residents and companies alike. But the story goes beyond bricks and mortar: the North East’s bold investment programmes are creating an energised, connected and revitalised region, one that offers an unparalleled experience for residents and visitors alike.” Projects included in the Tracker are those which have received planning permission or have funding committed. Focused on specific, often time-bound investment, it does not include offshore oil and gas-related investment or the investment being made by businesses in their own premises, equipment and technologies. Derek Leith, EY global oil and gas tax lead and Aberdeen senior partner, said: “This year’s report demonstrates a resilient and vibrant economy in the North East, built from a diversification strategy that is future-proofing the region for generations to come. We have seen projects reach completion, but there is also an ongoing pipeline of further capital investment that will create jobs and grow the local economy. “While the region was recovering from one of the worst downturns in the oil and gas sector, innovation and local leadership stepped up. As a result, we are at an exciting time with many innovation projects that will see Aberdeen become a centre of excellence in food, life sciences and, of course, reassert our position as a world leader in the energy sector. “This is a story of the local business community and local leaders coming together to be greater than the sum of its parts. The very first Tracker was very much a vision – a map of what was planned. I am proud that in this fourth edition we can now show actual achievement.”
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BUSINESS NEWS
Keenan Recycling Invests in First-of-its-Kind Waste Facility Waste management company secures half a million pounds for producing greener energy from organic waste Scotland’s largest organic waste recycling company will use the funding to expand and improve its integrated approach to collecting and turning organic waste into green energy from its new site in Linwood. The waste plant near Glasgow will unpack and process the food waste, collected and delivered by Keenan Recycling’s fleet of disposal trucks. The waste will be turned into liquidised fuel that will be shared with local anaerobic digester (AD) plants for conversion into green energy. The Linwood plant and integrated service represent a £1.7-million investment overall and follows the successful trial of a biofuel plant at Keenan’s premises in New Deer, Aberdeenshire. ©Keenan Recycling
Keenan Recycling has secured £540,000 from the Zero Waste Scotland’s Circular Economy Investment Fund. The £18-million fund provides investment for SMEs based in Scotland in support
This pilot plant demonstrated the huge demand for biofuel which can be readily produced. With contamination reduced at the collection point, the fuel is prepared in a form that is easily transportable, user-friendly and high in dry matter content.
of projects that will deliver growth in the circular economy,
Processing more than 100,000 tonnes of organic waste a year, Keenan is already supplying AD plants throughout Scotland.
thanks to the European Regional Development Fund.
The new centre in Linwood is due to open in March 2020.
Loganair Increases Capacity on Newcastle Flights Expansion move comes just four months after launching new route Just four months after launching services between Newcastle and Aberdeen, Scotland’s airline Loganair announced that it had introduced a larger aircraft on the route. A 49-seat Embraer 145 jet aircraft has taken over morning and evening services on the route, increasing seat capacity by 21% and ensuring that more customers can get a seat on their preferred flight. Loganair launched Newcastle-Aberdeen services on 1 September, 2019, and the
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latest data published by the UK Civil Aviation Authority shows that passenger numbers have increased by over 200% since Loganair’s arrival, confirming the airline’s belief that more customers would use a reliable service. A majority of customers on the route are now choosing to fly with Loganair, and CAA punctuality data for October 2019 (the latest available) shows that the rival airline’s flights between Newcastle and Aberdeen were nearly five times more likely to be cancelled than Loganair services. Commenting on the latest development, Loganair’s chief commercial officer, Kay Ryan said: “We are delighted customers have responded so positively
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to our service between Newcastle and Aberdeen. It’s clear that passengers really value the Loganair product, in particular our frequent flyer programme, Clan Loganair.”
Latest Scottish Budget protocols could lead to hefty fines, says property firm JLL Tom Fothergill of JLL said: “From 1 April 2020 assessors will have new powers enabling them to request information from third parties in relation to a property; this goes beyond current powers which restrict requests to those with a legal interest such as the owner, tenant or occupier. If requests are not answered accurately and timeously, fines of up to 50 per cent of the rateable value of a property can be levied at the individual in receipt of the request. This is a huge concern for businesses, and will affect all ratepayers in Scotland. In a change to the system, assessors will soon be able to request information from a huge array of parties, and swiftly follow up with fines which could completely blindside those who haven’t had a chance to review or receive information which the assessors deem they should be aware of.” The Non-Domestic Rates Bill includes moves to reform the “clogged” appeals system, but JLL says the government has not gone far enough to create a fair system. In Scotland, ratepayers have only six months to appeal their rateable value, unlike in England. ©Felix Mooneeram
The Scottish Government has failed to create a fairer system for appealing incorrect business rates, according to Tom Fothergill of property firm JLL. In response to the passing of the Non-Domestic Rates (Scotland) Bill, set out by Kate Forbes, Minister for Public Finance and Digital Economy, and the Draft Scottish Budget on 6 February, the commercial rating expert suggested the Scottish Government had imposed new protocols which could generate hefty fines for businesses, and have chosen to ignore methods to create a fairer appeals system.
Fothergill explained: “We have suggested to the Scottish Government ways in which to make the appeal process fairer and less congested on a number of occasions. One method to resolve this would be to impose a duty on assessors to maintain fairness when making assessments. If a high street butcher appeals its rates successfully, the baker next door does not receive the same reduction in rates, despite being justified in seeking the reduction; nor does he have a fresh right of appeal. “While the Scottish Government has no doubt made positive steps to reform the system in recent years, we wish to see it be pushed further to create an appeals system which works for businesses in Scotland rather one which restricts ratepayers and assessors from achieving a fair outcome.”
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BUSINESS NEWS
Scottish Businesses ‘Not Listened to Over Business Rates’
BUSINESS NEWS
YWE Celebrated New Year in Style at P&J Live New venue for a new decade as wedding exhibition looks ahead to 25th birthday The wedding industry got off to an incredible start in the third weekend in January at the P&J Live/TECA. Both those planning a wedding this year, and in the years ahead, and those who specialise in making dreams come true came together at Your Wedding Exhibition (YWE) 2020 – which for weddings was definitely the place to be! There is no doubt that 2020 is a popular year for weddings giving a welcome boost to the industry.
Got to Be in It to Win It How businesses need to be braver to be more resilient by Geoff Watts, Scrum Alliance Coach
YWE in its 24th year and, with P&J Live being its third venue during this time, it made full use of the new facilities to deliver simply the largest and best attended exhibition in the north-east of Scotland. Over 170 exhibitors set out their stalls – from coaches to Aston Martins to VW campervans, musicians to magicians and a world of bridal designs – to satisfy the most diverse of imaginations!
In my role as a Scrum Alliance Certified Agile Coach, I’ve worked closely with many board directors, and what I often see – not only in Scotland – is this lack of confidence, and how that impacts how all decisions are made throughout the organisation. In this piece I will explain how this lack of confidence – this fear of the unknown – is harmful to the growth of business, and how adopting agile principles can make teams more resilient to challenges down the line – such as Brexit and economic turbulence.
The challenge of uncertainty Working with business leaders on their agile journey, I understand the survey’s findings about decreasing levels of confidence in their own business prospects. People don’t like uncertainty and they build all sorts of psychological and structural defence mechanisms to convince themselves that things are safer. While the findings imply that Scots are less resilient than their neighbours, I don’t see it so simplistically. It’s not that leaders in Scotland are inherently more pessimistic, but a combination of the more condensed business landscape (so results seem skewed), and a lack of autonomy and thus control of their own destiny makes it harder to face uncertainty with confidence.
Doing business like Vegas In business, ‘safe risk’ is like putting all your all your money on black or red in roulette. However, in a complex environment, where you don’t even know what you don’t know yet, the best approach is to spread your risk across multiple small bets and then see which ones work out. With that data, you can then invest quickly in the ones that work.
When Bank of Scotland published the findings from their ‘Business Barometer’ survey, it was found that businesses in Scotland were the least confident of all the nations and regions across the UK, recording a confidence level 15 points below the national average.
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I’ve seen this with an award-winning gaming company that was being challenged by start-ups. They took the ‘risk-averse’ approach and tried to analyse their options over an extended period to collect complete data. The problem, however, was that by the time they finished analysing what they knew about, new options had emerged that needed analysing. They had lost months where they weren’t outputting any work, so had no money coming in and didn’t have the complete research for development either. Their desire to ‘analyse out’ risk meant the
FEATURE
The new halls looked superb and credit goes to the exhibitors who really made an incredible effort to stand out for the right reasons. This year’s best stand winner was – for the first time – Midnight Elegance (pictured), who proudly showed off the winner’s certificate, enjoyed the fizz and imagined how to spend the prize money!! A stunning fashion show twice daily brought all the bridal creations to life. Feedback from very early on over the weekend made it clear visitors where there to make bookings and, a few weeks on, the message was strong for the wedding industry in the years ahead. YWE will mark its 25th anniversary in 2021 and, with well over 100 confirmed stands already booked, those looking to take part for the first time should register online at www.yourweddingexhibition.com to ensure that in January next year they too are filling their diaries for the months ahead. The wedding industry is worth in excess of £50 million annually in this area, and bridal parties have more choice than ever before in where they can get married and how to plan a day or more for family and friends, spending on average well over £20,000 on the day itself.
whole business model lacked agility and failed, despite the proven quality of their work. Compare that to the mindset of King. com, the makers of many successful games including Candy Crush. They approach development by putting out many incomplete new games and letting them be tested by real gamers. Some games may be slated instantly and be a sunk cost, but the data they collect helps inform the business’s response to a bigger decision, and quickly react to significant market changes. King recognise that good business is not about making the perfect decision. Instead, it’s about making a culture where failure is not only admissible but valuable, so people can feel emboldened to make multiple smallscale decisions in a safe environment. This is the essence of agile. Culturally, the UK prides itself on being a little bit ‘glass half empty’ – which is not always bad as it stops us from being naive and readies us for disappointment. However, when faced with a challenge, this instinct leads bosses to take a narrow approach (cut costs, change one element, etc.), when they should be spreading their bets. If you can’t predict the future, then you need to be able to respond more smartly to the changes. Being trained in agile practices with the guidance of a coach can help businesses adopt and put into practise this mindset, overcome the fear of the uncertain and be brave risk-takers.
Maritime Minister Endorses Aberdeen Harbour Expansion South Harbour project opens up new opportunities for North Sea Nusrat Ghani MP, the UK government Maritime Minister, has welcomed the £350-million investment by Aberdeen Harbour in a new facility that will open up new opportunities for renewables and decommissioning around the North Sea. Visiting the port on 6 February, Ms Ghani was given a tour of the existing North Harbour and briefed in detail on the South Harbour project which is currently being built.
are grateful for her support on our South Harbour investment. The evolution of the UK’s energy mix opens up a world of possibilities. We are poised to be a major catalyst in that, supporting the regional and national economy for decades to come.”
Ms Ghani said: “I was delighted to visit Aberdeen to see the progress being made on the transformational development of the South Harbour. “The maritime industry is at the heart of the UK’s economy and, as the principal port for the energy sector in Western Europe, Aberdeen Harbour is no exception. We are committed to supporting our world-class industry to continue to thrive.” Michelle Handforth, chief executive of Aberdeen Harbour Board, said: “It was an honour to host the minister and we
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L-R: Michelle Handforth, chief executive of Aberdeen Harbour Board; Nusrat Ghani MP; and Alistair Mackenzie, chairman of Aberdeen Harbour Board
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FEATURE
Cost of Living Too High for Young People 60% of graduates have a ‘side hustle’ to combat debt and help with rent The average side-hustler earns an extra £3,393 a year on top of their annual income Britain’s graduate debt crisis means that nearly half of current students and recent graduates (42%) have joined the gig economy in order to combat debt, and afford rent and the rising living costs. One in five (22%) also cited having two additional jobs, with the next generation of workers concerned about the overwhelming cost of living. Side hustles are most commonly defined as a type of employment undertaken in addition to studying or having a fulltime job to provide additional income. However, Milkround’s survey of nearly 5,000 students and recent graduates has revealed that on average, they are spending over eight hours a week on their ‘side hustle’ as they cannot afford to live on their main income or student loan. Subsequently, they are earning an
is the main motivator for side hustles.Three fifths (60%) of students and graduates across the country said that they have a side hustle because the cost of living is too high to exist on their main salary or student loan, and 43% would not be able to afford their rent without the additional income. Additionally, 87% of respondents who did not currently have a second job would contemplate one in order to earn extra cash.
Despite losing out on social time, side hustles cited as a creative outlet Whilst nearly a third (30%) are sacrificing between eight and ten hours a week or more on their side hustle – which they felt could have been better spent having fun or socialising – not all second jobs are purely financially motivated. Whilst many believe they are sacrificing their social time, 41% cite them as a creative outlet, as it improves their quality of life (61%) and even enables them to meet new people and friends (65%). One in five (20%) of those had quirky, creative jobs such as a nightclub lighting designer, a trampoline park party host, escape room host, and a tattoo artist. Georgina Brazier, graduate jobs expert at Milkround, said: “With student loans, and the cost of rent and living consistently rising, there are more financial burdens placed on students and graduates than ever. Not only has our research uncovered the financial pressures students are facing, but also the tensions between losing out on socialising due to having a side hustle, to earn extra cash. “Unsurprisingly, hospitality, events and retail were the most popular sectors for side hustles, most likely due to the flexibility and social benefits that come with these types of roles. There are various benefits to these, including channelling creative talents, a passion for learning new skills, and standing out from the crowd to future employers – whilst earning money at the same time.
average extra of £3,393 a year.
“The fact that one in three (31%) have a side hustle to gain experience in the industry they want to work in demonstrates a real desire for candidates to push themselves in an increasingly competitive graduate job market. As celebrities, schools and recruiters call for more creative skills to be taught to students, creative side hustles should be encouraged, and entrepreneurial instincts recognised by more companies when recruiting.”
Money is the main motivator
Entrepreneurs could earn thousands a year
With the value of outstanding student loans topping £121 billion in March 20191 and full-time university fees set at £9,2502 graduates are already in more than £50,000 debt3 from the very first time they walk into the workplace. The graduate debt crisis has never been more acute and it is no wonder that money
With businesses such as Instagram and Under Armour having started out as side projects for their founders, the passion over pay approach is on the rise amongst Gen Z. One in three students and graduates (31%) have a side hustle for extra experience and 43% agreed that theirs helps to develop entrepreneurial skills.
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As softer skills such as excellent communication and creativity become more desirable to employers, those with side hustles are consistently enhancing their skill set and demonstrating the dedication to their creative passions, to ensure they are the strongest candidate for recruiters.
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FEATURE
Nearly half (42%) of students and recent graduates have a second job 43% of those with a side hustle would not be able to afford their rent without it Three in five students and graduates (61%) believe side hustles improve quality of life Research
The research was conducted to a pool of 4,972 recent graduates between 4–14 October 2019. 1 https://researchbriefings.parliament.uk/ ResearchBriefing/Summary/SN01079 2 https://www.ucl.ac.uk/students/fees-and-funding/ pay-your-fees/fee-schedules/2019-2020/feeschedules-2019-2020-undergraduate 3 https://www.ft.com/content/b189980a-19a5-11e99e64-d150b3105d21
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This year includes a particularly strong field of entries in the Young Professional and Emerging Technology categories The finalists for this year’s Offshore Achievement Awards (OAA) have been announced with record entries submitted across a number of categories. Across its ten awards, the OAAs recognise outstanding contributions from people and organisations in the UK offshore oil and gas and renewables sectors. Hosted and organised by the Society of Petroleum Engineers (SPE) Aberdeen Section and supported by long-standing principal sponsor, TAQA, the annual awards represent the pinnacle of achievement in an industry currently undergoing significant change in its focus and ambition. A key addition to this year’s category line-up was the ‘Energy Transition for Future Generations’ award, reflective of an important shift in the sector in recent
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years. This award has been created to recognise companies helping drive the energy transition, contributing to the net zero targets set by the Scottish and UK governments. The ‘Emerging Technology’ category has also been particularly hotly contested. With many outstanding examples of innovation and technological advancement submitted, judges have named five companies for this year’s shortlist. Another category which received a number of exceptional entries was the ‘Young Professional’ award. Seven of the offshore industry’s rising stars have been selected to take part in a selection interview process, where a panel of judges will talk to each individual about their career to date and future aspirations, before selecting a short list of three. Ian Phillips, chair of the Offshore Achievement Awards organising committee, said: “We were delighted to see such a large number of exceptionally high-quality submissions this year, making an immensely challenging job for our experienced judging panel.
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“We’ve been encouraged by the significant interest in our technology categories and many of the entries we’ve seen are a true step-change for the industry, from early-stage concepts to commercialised solutions. We’re also looking forward to sharing three examples of companies which are tackling the energy transition challenge head on. “SPE Aberdeen and all our sponsors would like to extend our thanks to the judging committee and everyone who took the time to submit an entry. It’s shaping up to be a great awards evening!” Stuart McIntosh, asset manager at principle sponsor TAQA, said: “TAQA is proud to have been a supporter of the OAAs for a number of years and it’s a privilege for me to be part of the organising committee and judging panel. “As always, I have been hugely impressed with the calibre of entries, particularly in the Young Professional category, where the number and standard of entries is always very impressive. This category showcases some of the rising stars of our industry and each one of the finalists should be extremely proud to have been selected in such a strong field this year.”
Photo caption: Last year’s ceremony saw 11 companies and individuals announced as winners on the night
SECTION HEADER
Finalists Announced for 34th Offshore Achievement Awards
Emerging Technology
Innovator
BSC Separation Technology Deep Casing Tools Oxford Flow Safe Influx Ltd Tendeka
Modus NOV Seabox Velo Tech Systems XOCEAN
HSE Innovation
Energy Transition for Future Generations – sponsored by CNOOC International
ARC Marine Limited GM Flow Measurement Services Ltd JFD Global
BP Pale Blue Dot Wood
Outstanding Skills Development – sponsored by Skills Development Scotland
Young Professional – sponsored by Chrysaor
Aquaterra Sparrows Group Wood
Internationalisation – sponsored by the Energy Industries Council Ardyne N-Sea Stats Group
Erin Ingram, TAQA Pippa Jones, CNOOC International Gavin Morris, Bilfinger Matej Svoboda, OPEX Group Peter Tipler, Xodus
Great Company – SME sponsored by ENGenious ITC Hydraulics OPEX Group Viewport3
Great Company – Large
Significant Contribution – Sponsored by Oceaneering
Expro Serica Energy Wood
To be announced at the awards ceremony
The 34th Offshore Achievements Awards will take place at P&J Live on 19 March, 2020. Winners will take home a prestigious trophy designed by Gray’s School of Art student and competition winner, Rachel Mackay, whose concept embodies the key themes of technology and innovation.
FTR Continues its Year-on-Year Growth Multiple new project wins across all branches promise strong year ahead Fulkrum Technical Resources (FTR), global provider of technical personnel specialising in QA/QC, inspection and vendor surveillance services to the energy industry, celebrated a successful year end with contract wins resulting in year-onyear growth of more than 55%. Operating out of eight bases around the world, FTR has seen significant growth in each region with revenues exceeding forecasted figures, as well as expanding its network of energy professionals to nearly two million. Since forming in 2017, the FTR Asia Pacific office has continued to establish its presence in the region, increasing its activity with a number of local and global companies. It was also awarded Petronas approval status in 2018, underpinning its impressive and efficient project execution. The region saw a 50% increase in turnover in 2018-19, with 2020 set to be its most productive to date. The company has also strengthened its operations in the United Arab Emirates, securing work on an extensive engineering, procurement, construction and installation project worth over $1 billion. Expansion in the area has resulted in the recruitment of over 40 NDT technicians and a further 12 resident QC inspectors, with revenues expected to rise further into 2020. Europe has also seen substantial developments over the last year. As a result of further contract wins and expanding into new territories, FTR has bolstered its operations in Aberdeen to support a number of offshore and subsea projects. After a series of successful campaign wins in the Americas, FTR saw the region close 2019 showing a 40% increase in revenue with particular growth within LNG, making it a record year for the company’s Houston team. Owen Gibbons, commercial director at FTR, commented: “2019 was an incredible year for us as we continue to drive the business forward, winning multiple new projects across all branches within the group and expand into previously untapped territories. The work secured for 2020 by our regional offices will ensure another strong year for us and I look forward to seeing what the future holds for the company.”
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SECTION HEADER ENERGY
The finalists for the 2020 Offshore Achievement Awards are:
ENERGY
Scottish Employee-Owned Business Heralds Decade of Success Accord Energy Solutions looks ahead to bright future
An Aberdeen-headquartered oil-and-gas consultancy is heading towards a decade in business with continued growth and industry recognition. Accord Energy Solutions, which was launched in 2010 as the first employeeowned start-up business in Scotland, is gearing towards a record £6-million turnover in its tenth year. The business, specialising in oil and gas measurement and hydrocarbon accounting has seen a solid 5-6% growth year-on-year and recently invested a six-figure sum to purchase a new 3308-square foot headquarters in the city’s Carden Place. Operating for clients in the North Sea and global markets, Accord Energy Solutions was launched by three founding directors and now has a team of 33, with plans in place to set up an operation in Australia in 2020. The business has just been recognised in the UK Employee Ownership Awards, securing ‘Highly Commended’ as
Employee Owned Business of the Year. Fifty percent of the company is held by an employee ownership trust, ensuring that key decisions are taken in the longterm interests of the staff. A further 21% is owned by employees through a share incentive plan allowing staff to buy and sell company shares in a tax-efficient manner. The founding directors hold the remaining shares. Director, James Arthur, from Accord Energy Solutions said: “Our objective is to build a fair and open corporate culture. We believe in aligning the interests of individual members of staff and the company. Doing so allows us to deliver peerless expertise and patient continuity of service to our customers. Employee ownership is fundamental to us and we see the award as an indication that, together, we’re getting something right.” With substantial contracts in place into 2021, Accord Energy Solutions is set to increase the UK team and launch an Australian operation in the coming 12 months.
Zenith Energy Heralds Successful Year with Peak Contract Wins Company delivered on more than £9 million-worth of projects in 2019 An Aberdeen-headquartered well engineering and project management company delivered more than £9 million worth of contracts in 2019 with 2020 set to surpass that mark.
on growth in other markets across the globe, but the company
Zenith Energy saw an 80% increase in turnover from 2018 to 2019 for its UK office, with around 50 personnel working on significant projects based in the UK, Australia and Morocco.
region for Zenith for the past three years.
The company, which is based in the city’s Bon Accord Square with a second office in Australia, has in recent years focussed
March, and the management team is focussed on growth in the
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has seen some signs of recovery in the UKCS with two projects in UK and Irish waters this last year, heralding the first work in the It is a strong start to 2020 with drilling work continuing in Morocco and a well planning project in Egypt set to begin in UK, Africa, south-east Asia and Middle East.
SECTION HEADER Picture caption: McLachlan Marine has acquired ‘Ocean Titan’, formerly the Dutch-owned ‘Offshore Wenduine’
Game-Changing Addition to McLachlan Marine Fleet Windfarm support vessel widens range for independent operator A key player in Aberdeen’s marine support scene has added a tenth boat to its growing fleet of workboat vessels. McLachlan Marine has acquired the 26-metre-long ‘Ocean Titan’, a windfarm support vessel capable of 28 knots and MCA certified up to 60 nautical miles offshore, allowing them to offer faster support further out to sea. The substantial investment of more than £1 million follows a decade of rapid growth for the independently operated McLachlan Marine, which was established in 2011 and recently dubbed
the ‘Swiss army knife of workboat operators’. Having doubled its turnover every year, the company has a quayside base and berthing in Aberdeen Harbour, warehouse and workshop headquarters in Fordoun, and an additional office in Montrose. Owner and managing director, Ruari McLachlan, said: “We purchased the first boat in 2011 with a 10-year work history and have added a further nine since then to meet the growing demand across the renewables, offshore wind and oil-and-gas sectors. We have a range of boats from catamarans to smaller safety vessels, each one offering a distinct service, from crew transfers to seabed surveys.” Ruari retains a hands-on role in the company, being involved in day-to-day operations and project management, as well as overseeing a 30-strong staff during peak season. The team has a wide-ranging background in offshore wind, oil and gas, renewables and maritime training. He continued: “The breadth of our team’s experience across various sectors, coupled with the size and variety of our fleet, has stood us in good stead to offer reliable, comprehensive support to clients over the years. But the industry is changing, with larger vessels coming on the scene, and an increasing focus on safety. The acquisition of Ocean Titan was very much in response to this, and will ensure we can continue to be a safe and strategic partner for clients into the next decade.”
Managing director of Zenith Energy, Martin Booth (pictured, right, with operations director, Chris Collie), said: “2019 has seen huge expansion for the company, and it is long-term work which creates secure growth and stability to allow us to focus on future planning and development strategy, and 2020 is going to be equally as strong. “We’ve seen steady growth over the past two years, and we are looking at several large projects in south-east Asia and west Africa for next year. We have a balanced portfolio of clients and a mix of national and international work which smooths the peaks and troughs. The North Sea is still a target for us as we know the market, and there is a new wave of companies coming through now which are well paced to utilise well service experts like Zenith Energy.” In recent months Zenith has created a number of new roles in the UK and Australia, with 20 members of staff across the two offices and 40 contractors working on Zenith projects.
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ENERGY
MPA–Baker Hughes Agreement Sees Town Flourish Seven-year extension supports growth and development in Montrose
Sandy Bell of Baker Hughes, Captain Tom Hutchison of MPA, and Lorenzo Romagnoli of Baker Hughes
The Montrose Port Authority (MPA), a leading support and service hub for the energy industry, has announced that it has signed a seven-year extension to its contract with Baker Hughes for the provision of internal and external storage facilities. Captain Tom Hutchison, CEO of Montrose Port Authority, said: “We are delighted to extend what is already a long-standing and mutually beneficial relationship with Baker Hughes. This contract extension supports the growth and development of MPA, and we
look forward to a continued collaboration with Baker Hughes on key services, including import and export activity and an increased shipping tonnage.” Baker Hughes has been a long-term customer of MPA since 1993 and the recent agreement is set to expand Baker Hughes’ footprint within the port, covering multiple areas of its South Quay. This includes 11,000 m2 of internal warehousing and 4,000 m2 of external storage facility. MPA is actively supporting Baker Hughes’ commitment to become carbon neutral by 2050, through work with Zero Waste Scotland to reduce the carbon footprint created by the port. Rich Morin, vice president of global supply chain for the oilfield equipment division at Baker Hughes, said: “Our new long-term agreement with MPA will support Baker Hughes’ infrastructure expansion in the Montrose-Angus area as marked by the company’s recent opening of its Montrose Centre of Excellence to enhance best-inclass manufacturing capabilities. We look forward to the continued partnership with Montrose Port Authority to further economic growth in the region.”
Field Trial Success for Well Integrity Innovator Passive monitoring system to aid decommissioning sector and marine environment 20
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Sentinel Subsea, specialist in long-term
As a growing number of offshore assets
well integrity verification, has announced
reach the late-life stage of their life
the
first
cycle, so the number of suspended wells
offshore field trial, run in conjunction with
which require environmental monitoring
independent operator Spirit Energy and
also increases. Recognising the need to
the Oil & Gas Technology Centre (OGTC).
monitor suspended wells both efficiently
successful
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completion
its
Aberdeen and Dubai teams have also grown as a result of continuing and new agreements gas international operators and the securing of contract wins with three new key clients. Managed and supported by N-Sea’s IRM team, the projects comprised air diving inspection, repair and maintenance, in addition to light construction requirements, assisted by the charter of six diving support vessels and N-Sea’s three daughter crafts. As a result, the Aberdeen division has appointed a number of additional personnel to its workforce.
N-Sea has experienced a prosperous year, reporting an increase in sales with contract wins with new clients. Having completed over 1,500 vessel days throughout the year, N-Sea’s bases in Aberdeen, the Netherlands and the Middle East have seen substantial commercial growth, reinforced by an increase in personnel numbers. North Sea success continued with ongoing work through long-term frame agreements for several major oil-and-
and cost-effectively, Sentinel Subsea’s passive monitoring system is set to help the decommissioning sector dramatically reduce costs, whilst ensuring the marine environment safety. Mitigating the requirement for regular, manual inspections, the company’s solution provides real-time alerts should a suspended well’s integrity be compromised. Sentinel chief executive, Neil Gordon comments: “Following a successful onshore trial earlier in the summer, this – the first in a series of offshore trials
Having established a strong presence within the UAE since 2016, N-Sea’s Dubai office has extended its services into emerging markets, having secured work in Libya with a tier 1 contractor and is currently working on saturation diving and air diving scopes in Egypt. Throughout 2019, the Middle East base achieved a 500% growth and attained 20 million USD in contract wins, making it a record year for the region. As a direct result, N-Sea has increased its Dubaibased personnel from two employees to 15, with an offshore team in excess of 125 and additional internal support from UK colleagues. N-Sea’s long-standing track record of survey capabilities also continued to grow
– has been equally positive, confirming the capability of our technology and the impact it will have upon well integrity monitoring. “Environmental assurance and cost reduction are the two cornerstones of late-life well activity, and we continue to be impressed with the level of support provided by both the OGTC and Spirit Energy, as we work together to give the offshore industry the means to provide both.” Willem Boon, Spirit Energy intervention and integrity manager, said: “We are very
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during 2019, with the completion of a €2.7-million survey and UXO identification project for a green energy giant, deployed via the company’s survey operations team. In the latter part of the year, N-Sea further developed and formalised its UXO services, via significant investment in its existing joint venture with BODAC. Underpinning the company-wide growth strategy, N-Sea’s Data Centre saw a €1.8-million upgrade in August, giving the company one of the industry’s most effective, secure and future-proofed storage systems. N-Sea CEO, Arno van Poppel commented: “N-Sea has an extensive track record throughout its range of services and provides one of the most comprehensive integrated energy services available. “Investments in cable repair, storage and PLIB solutions, as well as scour protection, will allow the company to further consolidate its presence within current marketplaces, whilst expanding into new regions.” N-Sea specialises in subsea services for the renewable, oil-and-gas and telecoms/utilities industries, as well as for civil contracting communities. With a focus on safe and efficient operations, N-Sea provides near shore, offshore and survey services to asset operators and tier 1 contractors.
pleased to support innovative solutions that improve long-term well integrity. This low-cost, low-risk and simple-todeploy technology has the potential to have a profoundly positive effect on the decommissioning sector.” Susi Wiseman, OGTC decommissioning project manager, added: “The value in this incredible piece of technology is multifaceted. In addition to the cost savings associated with a passive monitoring system, the confidence it engenders will encourage operators to deploy alternative barriers technologies.”
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ENERGY
Significant Contract Wins in Record Year for N-Sea
ENERGY
North Sea Tech Could Play Leading Role in Energy Transition Innovation and collaboration key to meeting net-zero target The North Sea has the potential to become a global showcase for the energy transition as a number of low-carbon solutions grow in prominence, with partnership models becoming critical for the future of the basin, according to a new report from PwC and OGUK. Turning the Tide – the Transformation of the North Sea, published in November, shows that the North Sea can become a global leader for the energy transition through the likes of carbon capture, utilisation and storage (CCUS) technology, aided by the alternative use of infrastructure, and the production of hydrogen. The report, which lays out the challenges facing the North Sea as the world moves towards a low-carbon future, is based on interviews with more than 20 key energy industry stakeholders. It highlights how recent changes in ownership have seen independents and private equity-backed firms gain a key position in the region. The industry can expect to see an increased focus on innovation to drive the next wave of competitiveness given operators and service companies have perhaps cut costs as far as is sustainably possible. This innovation in technology and business models has the potential to influence the energy transition with, in two examples, renewable energy sources set to replace gas turbines on some offshore platforms, and the geography of the basin making it ideal for offshore wind production. CCUS could also become a major aspect of North Sea activity, with wider collaboration across the energy sector. CCUS is the practice of capturing the carbon dioxide released by
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industrial sources such as power stations and burying it deep underground. With extensive infrastructure already in place which could be used to store carbon dioxide through depleted oil-and-gas fields, the North Sea can play an important role in a technology which is seen as a way of helping to reduce carbon emissions. Looking further ahead, the North Sea could also play a major role in hydrogen production, storage and transportation whether by converting natural gas into hydrogen or through electrolysis, using offshore wind-generated energy. Drew Stevenson, energy sector leader at PwC UK, said: “There is a necessary urgency to move to a low-carbon world. As our report illustrates, there is huge potential for the North Sea to play a significant role in the energy transition, setting a precedent for facilitating the move to a clean-energy future. “The appetite exists for the North Sea energy industry to play a significant role in the transition: investor sentiment is rapidly becoming more committed to low-carbon technologies while smaller exploration and production companies are looking at ways to reduce the carbon footprint of their operations. All of this creates an opportunity for the North Sea to lead the way in the energy transition.” Mike Tholen, upstream policy director, OGUK, adds: “The transition to a lower carbon, diverse energy mix is an exciting opportunity for our transforming industry. With extensive skills, capabilities and infrastructure, we are well placed to support the development of low-carbon technologies such as CCUS and hydrogen while reducing emissions from production operations.
In order for the basin to remain competitive, Turning the Tide suggests there must be an increased focus on collaboration between operators and service companies. Partnership models will be crucial to future success for both large and smaller players. This is tied to the need for increased innovation. In a sector which has been focused on cost cutting, the report says there now needs to be fresh solutions for driving performance. There is widespread industry agreement that the supply chain cannot sustain further tightening and focus should instead switch to value over cost, though this will require a change in mindset among operators and services companies. Already one of the most technologically advanced basins in the world, companies now believe it is of critical importance to share their experiences of the deployment of new technologies, as well as collaborate on developments and piloting, in order to reduce risk and time taken. There is also an increased willingness to engage more closely with the supply chain, where most new technologies are deployed. Drew Stevenson continued: “It is clear from the interviews conducted for Turning the Tide that partnership models will become a serious point of difference as the North Sea industry further develops. The addition of smaller operators and service providers means companies may dispense with trying to do everything and instead focus on their core competencies while finding a partner for other aspects of the operation. “For example, the digitalisation of the North Sea industry will naturally lead to further innovation, though this may require the input of third parties to fully optimise the benefits of everything from wearable tech to data analytics and artificial intelligence.”
The report also predicts that the emergence of private capital from developing countries is going to play a greater role in the funding of North Sea operators. In 2016, PwC published Sea Change – the Future of the North Sea, which revealed how senior oil executives believed the UK Continental Shelf had a two-year window to transform itself for a productive future. Three years on and a change in ownership structure in the basin has led to smaller, agile players entering the market. The transformation of the North Sea over the last four years has been driven by two main factors. Firstly, there have been huge cost-cutting measures put in place and this drive for efficiency continues. Secondly, a number of new players have brought more dynamism to the basin, which helped drive investment to £3.3 billion in 2018. As major players have reduced their production footprints in the North Sea, the likes of private-equity backed Chrysaor and independents such as Spirit Energy and EnQuest have increasingly taken their place. With PEbacked firms expected to play a longerterm role in the UK than first envisaged when they arrived following the 2014 downturn, the report suggests there will be future consolidation in the sector with larger independents acquiring smaller ones. Drew stated: “The North Sea needs to ensure it is economically attractive to ensure investment continues as we move closer to a low-carbon world. With price volatility and increasing concerns over the environment, businesses in the North Sea must illustrate how they are adopting new ways of working to mitigate the impact of their carbon footprints, while reminding observers of the ongoing importance of hydrocarbons through the process of reaching our netzero ambitions.”
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ENERGY
“Roadmap 2035: A blueprint to net-zero sets out a future vision for our industry to ensure it remains at the heart of the global energy landscape as it continues to change. Through safe, sustainable and socially accepted operations and securing government support for the delivery of the roadmap, this report underlines how the UK’s offshore oil-and-gas industry can help unlock a fair and inclusive transition to a low-carbon future.”
ENERGY
Sentinel Marine’s Young N Sea Fleet Cleaning Up New fleet of emergency response and rescue vessels helps offshore environment A £150-million investment has allowed support vessel operator Sentinel Marine to introduce the newest fleet of emergency response and rescue vessels (ERRVs) in the North Sea – and help clean up the offshore environment. The average age of the Aberdeen-based firm’s ships is just two years, which means that – along with being the youngest in the sector – the fleet is also the cleanest and greenest. All eight ships recently built to order by Sentinel Marine – and the four still under various stages of construction – have Tier 4 compliant engines which reduce emissions of particulate matter and noxious gases to near zero levels. Sentinel Marine chief executive officer Rory Deans said: “Tier 4 engines reduce emissions by around 86% compared to other types of engines used in the marine environment. “Our fleet is currently one of very few in the North Sea to utilise Tier 4 engines. When we made this multi-million-pound investment, we not only wanted to deliver a fleet that would be operationally efficient, but one that would deliver positive environmental benefits. “Although the real focus of Tier 4 engines is to reduce emissions, the overall design also incorporates many fuel-saving technologies and features aimed at enhancing productivity. Manufacturers use lightweight materials, advanced energy storage, and global positioning and telematics to reduce fuel costs and conserve energy. “Historically, ERRVs operating in North Sea oilfields were originally built for use in other sectors and then repurposed as support vessels. Many of these ships are now decades old and, while still perfectly capable of performing a support role, cannot deliver the same kind of efficiencies. “It’s estimated that our fleet is around 60% more fuel efficient
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than some of the oldest ERRVs in the North Sea, and as much as 30% more efficient than vessels that were built only five years ago. For example, one of our new-build ERRVs would consume around 1.5 tonnes of fuel per day on service at an offshore field, whereas a vessel 20 years old may consume three tonnes of fuel per day.” The new Sentinel Marine fleet has been built at shipyards in China and developed with sustainability in mind. Each vessel has a green passport – a list of all materials potentially hazardous to human health and the environment which were used in its construction – which accompanies that vessel through the lifetime of its service. When the ship is decommissioned, the passport is sent along with the ship to the recycling yard. Another key element which delivers efficiencies is the ability of the ships to perform a multitude of different roles. While the primary function of ERRVs is to protect the lives of offshore workers, Sentinel Marine ships are built to undertake a wide range of additional tasks from oil recovery to towing and on to cargo handling. This delivers both operational and cost efficiencies, as it negates the need for two different vessels to be chartered. The four vessels still under construction – due to come into service within the next two years – have enhanced features such as increased DP capabilities, a DP2 class notation, firefighting class 1, oil recovery, liquid mud and dry bulk capacities. All have been designed to provide greater levels of crew comfort, both in terms of facilities and through the use of anti-rolling tanks. Mr Deans added: “There is a growing appetite among North Sea operators for the type of ERRV that Sentinel Marine has developed, as they understand the level of task and cost benefits that using new-build ships can deliver.”
Engineering firm Atkins highlights need for substantial changes to reach target by 2050
•
To achieve net zero the UK needs a four-fold increase in low-carbon energy – from 155TWh in 2017 to 645TWh in 2050
The 2050 target requires radical changes and investment to be achievable. Atkins is calling for urgent action and investment to begin work on engineering net zero immediately
The company’s ‘Engineering Net Zero’ report details the significant investment in low-carbon energy needed for the UK to make the target of net-zero emissions by 2050 a reality
A government net-zero champion or department with the appropriate powers is essential to bring vision, oversight and coordination to ensure that the government’s target is achieved.
Investment in engineering solutions are needed in every area of low-carbon energy production – carbon capture and storage, hydrogen, renewables and nuclear
COP26* in Glasgow later in 2020 will be an important moment in the government’s path to laying realistic foundations to achieve the critical net-zero legal requirement.
• • • • •
FEATURE
New Report Calls for Energy ‘Sea Change’ to Achieve Net Zero Speaking about the new report, Chris Ball, managing director for nuclear and power at Atkins, said: “The green future we aspire to is possible. However, it requires a sea change in how we approach our energy system and the scale of investment required. Government has set the target and, working in collaboration with industry and academia, we can meet the ambition. But it requires an unprecedented level of commitment, investment and coordination to drive forward a programme of works. “The concern for the UK is that years of only short-term political ambitions have blocked some urgent investments and actions needed to drive forward net-zero solutions. As we begin 2020, and the UK’s new government takes shape, we need tangible investment in testing engineering solutions to our most pressing challenges. “We welcomed the Queen’s Speech with the government’s commitments to increase offshore wind capacity and invest in building a carbon capture storage cluster.
A new report by global engineering firm Atkins (see link below**) has highlighted that the government’s net-zero 2050 target will not be achieved without substantial changes to the UK’s energy mix and significant public and private sector investment. ‘Engineering Net Zero’ highlights the major challenges of creating significant capacity in carbon capture and storage (CCS), nuclear, wind and hydrogen energy generation. It examines how policymakers and industry need to urgently resolve a number of technical and commercial challenges associated with decarbonising the economy. To achieve net zero, the UK needs a four-fold increase in low-carbon energy – from 155TWh in 2017 to 645TWh in 2050. The report brings Atkins’ experience of delivering the world’s largest, most complex infrastructure programmes to bear on this most critical of technical challenges – how to avert the most devastating implications of climate change. It analyses how current capacity and UK policy points away from a reliance on nuclear energy, despite its proven ability to produce low-carbon solutions. Current government policy curtails nuclear in the mid-2030s after completion of the three plants currently in active development. Alongside this commitment, carbon capture and storage (CCS) capacity is needed to capture, transport and store up to 176 metric tons of carbon dioxide by 2050 to deliver the net-zero target. The UK’s current capacity for CCS is negligible and needs urgent attention.
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“However, to really prioritise the net-zero target, we would like to see the government introduce a net-zero champion or even a dedicated department with the powers to make the large-scale energy and infrastructure decisions the UK urgently needs.” Atkins views COP26 in Glasgow as an important moment in the government’s path to laying realistic foundations to achieve the critical net-zero legal requirement. Over the coming months, the company will be adding to its ‘Engineering Net Zero’ report to include analysis on the infrastructure and transportation sectors, to give policymakers a holistic view of the challenges facing the UK. * COP26 GLASGOW – United Nations Climate Change Conference will take place at SEC, Glasgow from 9 to 19 November, 2020. ** http://explore.atkinsglobal.com/engineeringnetzero/
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FEATURE
Six Top Tips for Going It Alone Ensure your new business reigns supreme as you take on a new challenge Harry and Meghan are about to follow their big dream, go it alone and become financially independent – just three of the reasons why some people decide to start their own business.
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1. Thinking of taking the leap?
FEATURE
If you’re thinking of starting a business, it won’t just be Harry and Meghan’s footsteps you’ll be walking in. A huge number of people are feeling inspired to translate their passions into livelihoods and, in 2018 alone, we saw a staggering 31% rise in people looking to go freelance. But going it alone can be daunting, and there are a number of challenges that come with running a business – from income tax to insurance – which may be outside of your comfort zone. There’s plenty of help out there and the first step is often the most difficult.
2. Give your business the royal treatment: the big idea and knowing your customer Once you have your big idea, you’ll need to get to know your audience. Testing your product and iterating based on feedback is a great way to ensure you’re building what’s right for your customer. Doing this early, before investing too heavily, can help to validate your business idea and save a lot of money in the process.
3. Staying regal: Her Majesty’s (aka Grandma’s) Revenue & Customs, insurance and ensuring you remain legal It’s not the most exciting part of starting a business but making sure you’re on the right side of any rules, regulations, and legalities is essential. Registering your business with HMRC should be a priority and it will inform how much tax you need to pay. You can do this online at gov.uk You’ll also need to decide on the structure of your company (sole trader, limited company or a partnership). Depending on your trade or profession, you may need a certain certification or follow specific rules and requirements. This can vary across sectors so be sure to know your obligations. Legally you may also require business insurance, such as public or employers’ liability insurance. A public liability policy protects against damage to third party property or individuals, whereas employers’ liability is a necessity if you have staff. It’s vital to do your research and protect yourself financially should the worst happen.
4. Don’t make a monarchy of your marketing plan The phrase ‘marketing plan’ can be intimidating but it needn’t be. You don’t need an MBA or heaps of cash to effectively bring in new customers. After your website, social media should be front of mind. Consider what platforms work for your business and go from there. You don’t need a presence on all of them. Have you got a beautiful, visual product? Instagram could be the ticket. A local service? Make the most of Facebook’s suite of tools. But don’t ignore the power of flyers, local PR, and good old word of mouth. Try to source testimonials from happy customers and shout about them loud and often.
5. Give yourself a period of transition and reflection It’s easy to get caught up in the pace of starting up, but it’s important to dedicate time for reflection and analysis. What’s worked well? What could have gone better? Where are your sales coming from? How are your profit margins looking? Once you’re through month one, block out some time to look through your sales or billing, check your biggest source of income, and investigate any stumbles or spikes in business. Then you’ll be set to plan goals or objectives for the months ahead.
6. Power couple: a life and business partner While Harry and Meghan may not end up working together, there are advantages to going into business with a partner or spouse. For example, being able to make the most of shared resources and complementary talents is a big bonus. And you never know… If your business is successful, you may one day want to pass it on to your children as the next in line. We’re looking at you, Archie…
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I.T.
Arrowdawn AAT: Online Joins Fortinet Platforms Partner Must Collect Program & Remit VAT Company becomes first official partner in Aberdeen
VAT fraud costs Exchequer and causes small businesses to struggle Association of Accounting Technicians (AAT) has called for online marketplaces, including Amazon, eBay and Etsy, to be liable for VAT collection and remittance in the UK. HMRC has estimated that VAT fraud on online marketplaces costs the Exchequer between £1-£1.5 billion a year. Faced with increasing pressure to act, the government introduced new rules in 2016, which have seen around 80,000 new firms register for VAT. However, there is little information about how many of these firms have subsequently submitted tax returns or paid the correct VAT due. In addition, many of these registrations are believed to be false, cloned or registered in someone else’s name.
Arrowdawn, the network, security and communications specialist has announced that it has joined the Fortinet Partner Program. Fortinet Partners are among the most innovative, industryleading companies that embrace the Fortinet Security Fabric’s approach to cybersecurity and ensure customers are connected to the expertise, services and technologies they need. Gordon Adie (pictured), managing director at Arrowdawn, said: “We are delighted to be the first official Fortinet partner in Aberdeen. The security of networks and infrastructure is vital for business continuity. With this in mind, we are delighted to be a Fortinet partner and look forward to discussions with clients on how we can best support their needs.” David McKeand, regional account manager for Fortinet Scotland, said: “We are very excited that Arrowdawn has joined our Fortinet Partner Program. Its reputation for supporting the needs of clients was a key factor in this agreement and we look forward to supporting its dedicated commitment to customer service.” Organisations that join the Fortinet Partner Program are part of an elite group that has achieved the certification and specialisation requirements to aid customers on their digital transformation journey, and help bridge the cybersecurity skills gap, while focusing on an exceptional customer experience. Fortinet works with its partners to address the most critical security challenges, whether in networked, application, cloud, or mobile environments.
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To reduce online VAT fraud, AAT has urged the government to make online platforms liable for VAT collection on all online transactions, as increasingly happens overseas. There is already an EU regulation requiring the same, but it does not come into force until January 2021. The EU regulation also only applies to transactions below €150 rather than all transactions as AAT suggests. Adam Harper, AAT director of strategy and professional standards, said: “The impact on the taxpayer is significant because billions are not being paid; that’s billions that cannot be invested in public services as a result. “There is arguably an even bigger impact on the success of legitimate small businesses who sell online. This is because they are competing against fraudsters who can offer an unjustified and illegal 20% VAT saving. “Other countries have successfully adopted this practice, with Australia, the US and New Zealand all having done so recently. “The government must stop relying on the changes it introduced in 2016; realise the need to take more effective action; and require online platforms to collect and remit VAT on all transactions. If it doesn’t do so, the UK will fall further behind its international peers, become increasingly attractive to fraudsters and continue to see many small businesses unnecessarily struggle as a result.”
I.T.
Digital Security Key to Lucrative Market Share Businesses risk losing essential contracts by taking blasé approach to cybersecurity The Scottish public sector spends more than £11 billion a year buying goods, services and works but SMEs could miss out on a share of the lucrative market by failing to show that they take digital security seriously, a leading IT specialist has warned. There is a growing demand within the public sector – such as central and local government, health and social care – for suppliers to have a demonstrable standard in cybersecurity, with the Scottish Government at the forefront of efforts to raise the bar on supply chain cybersecurity. Austen Clark, managing director of Aberdeenshire-based Clark Integrated Technologies, said that businesses with public sector contracts – or those that hope to win work in future procurement processes – will need to show their commitment to cyber resilience by seeking a recognised accreditation. He also warned that companies that fall short on having cybersecurity recognition do so at their peril. Mr Clark said: “As part of the tightening of supply chain cybersecurity, contractors that fail to meet minimum requirements can be ruled out of the bidding process. “Being out of the procurement process means lost opportunities, and a loss in revenue streams which could have far-reaching implications for SMEs of all kinds, from building trades to hotels, taxi operators to cleaning contractors. “The ability to evidence a defined knowledge, understanding and commitment to cybersecurity is not only being seen in the public sector, but is increasingly embedded in the wider business landscape. “This is not without reason. Setting standards on digital security is an effective way to minimise the impact of the rising tide of hack attacks. It’s essential to business resilience and more commercial operators are seeking similar safeguards from their suppliers. “In a climate of increasing cyber threats, supply chains can be seen as an easy route to attack larger organisations. At its core, these measures are being put in place to raise awareness and enhance cyber resilience. It’s critical for SMEs to evidence that they have high regard for cyber and trade securely, regardless of size or sector.” The average cost of a cyberattack on an individual SME is around £6,500 but the damage can be far more than financial – it impacts on the reputation of and can damage a brand, stopping its ability to win new business, or losing it existing clients.
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These crisis incidents cost the UK economy £8.8 billion, and are a growing concern for small businesses everywhere, with nearly a quarter of those recently surveyed saying they had been affected by an attack in the past year. Almost a quarter said they could not survive for more than a month if unable to trade following an incident. The Scottish Government has a scheme in place for SMEs and sole traders to access up to £1,000 to help improve their digital health by obtaining Cyber Essentials certification, which can help protect against many Internetborne attacks. Mr Clark added: “It’s a must for any firm doing business with public sector organisations. The MoD, NHS and councils are all seeking this status from their contractors, so if you want to bid for public sector contracts then you need accreditation, even if digital services are not core to your business operation. “Anyone can pay lip service to cybersecurity, but what counts is recognised accreditation. With the government-funded voucher scheme, it’s a chance to tap into a funding stream and gain a certificate which will help futureproof your business. “Applications for this scheme remain open until March, or until the funding pot dries up, so I’d strongly advise businesses to take advantage right away.”
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FEATURE
What Features Make People Trust a Website? Mix of factors determine whether a customer will feel secure buying 79% of users would not trust a website that has grammatical or spelling errors 45% of shoppers would not purchase from a website without an active social media page Only 7% of people would stay on a website they distrust Trust seals and social media activity ranked the most trustworthy features of a website
An unhappy user will leave a website within 10-20 seconds if left dissatisfied and one of the key factors that determines whether a user stays on a website is if they believe it’s trustworthy. Reboot SEO Agency found that 93% of people said that, once they find signs of untrustworthy features, they will exit the website as soon as possible. This is due to 82% being concerned about malware and lack of payment security. Reboot has investigated what makes users trust a website before buying. They surveyed 1,322 people, asking participants to choose their top five. From this, the company can reveal the most trustworthy features on a website are:
Social media activity (47%)
Almost half of participants surveyed (47%) said that a company with consistent social media activity is the top feature that makes a website trustworthy – specifically, being active on Instagram. Reboot SEO Company found that 56% of users view a company that uses Instagram as more trustworthy than those using other social media platforms. Forty-five per cent said they would not use a website that is not active on social media. Forty-three per cent of people think that one of the most trustworthy features is an SSL certificate, with 58% saying that they would not use a website without one. Having familiar payment methods – such as PayPal, Mastercard, Visa, American Express, etc – on your website ranked as the
Recognised trust seals (47%)
sixth most trustworthy feature (36%). Ninety-two per cent of
Affiliated with trusted websites (45%)
users said that they would not trust or purchase from a website
SSL certificate (43%) Address and phone number listed (40%) A professional design layout (38%)
that uses unfamiliar payment methods. Having an author biography was ranked as the least important feature that makes a website trustworthy, with only 2% ranking it in their top five.
Familiar payment methods (36%)
Managing director Naomi Aharony commented on the
No stock images (36%)
importance of social media in building a brand’s credibility:
Terms and conditions and privacy policy (31%) About us page (31%) Up to date Google/Yell details (25%) FAQ page (22%) Meet the team page (18%) Limited advert banners (18%)
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“Social media is such an integral part of our online ecosystem, it’s hardly surprising that it’s a top marker for trustworthiness when visiting a site. Findings confirm that it’s very common practice for a searcher who lands on a website that he/she has never heard of to double-check its authenticity. And what better way of checking than to jump on their social media channels and check recent activity? A site with lots of buzz and followers can easily seem more authentic than one that has no such activity.”
SECTION HEADER Users also chose the top features that make them distrust a website, collating the following top list:
Grammatical errors and spelling mistakes (56%) Lots of adverts (52%) Very large discounts and broken links (45%) Blurry images (43%) No reviews (40%) No trust seals (38%) No SSL certificate (36%) Wrong currency entering a website (34%) Missing contact details (29%) Slow loading time (29%) Rebootonline.com found that a website with pop-ups makes 65% of users distrust the website. This is partially due to 82% of participants being concerned about malware and security. Correct grammar and wording on a website are one of the most important factors for 56% of participants. Additionally, 79% of shoppers said that they would not use or trust a website with grammatical or spelling errors. The sixth most untrustworthy feature of a website is no reviews or case studies available, as stipulated by 40% of shoppers. Sixty-five per cent said they would not purchase from a website if there are no reviews. RebootOnline.com also found that, surprisingly, 65% of people purchasing online would use a website that does not have an ‘About us’ page and 75% said they would continue to browse on a website that is not mobile friendly. * Research courtesy of Reboot SEO Agency.
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FINANCE
Personal Service Companies: Is Voluntary Liquidation a Practical Response to IR35? Michael Reid, insolvency partner at Meston Reid & Co
Large oil-and-gas companies in the North East may well decide to implement changes to their engagement/payment structure and seek to avoid the potential risk of being assessed for tax deductions by HMRC after having paid personal service companies gross. Indeed, many have already stated this intention. HMRC wish to distinguish between those who genuinely work for many different clients from those who use a personal service company to avoid paying the higher rate of tax that would arise as an employee doing the same job. One way that personal service companies may wish to minimise the impact of the legislation on earnings to date and retained in the company is by being subject to a solvent liquidation process and allowing the shareholders to gain access to such a pot of money at a reduced rate of tax. Currently a solvent liquidation allows shareholders to extract cash in a more tax-efficient manner, i.e. having it taxed as a capital gain (maximum rate is 20%) rather than dividends or salary (maximum rate is 46%). Further, if entrepreneur’s relief is available to a personal service company’s shareholders, the capital gains tax rate is reduced to 10%.
New legislation that goes live this April could be the death knell for many personal service companies active in the north-east of Scotland, but perhaps offers an opportunity to plan ahead for some. The change in law is going to have a major impact on the owner of a personal service company which, with reference to the oil-and-gas sector, is typically a business that comprises one person working as an employee in everything but name. There are thousands of people running personal service companies in the North East who clock in at work like an employee, use electricity and other office services like an employee, but pay tax like a business. This is often referred to as off-payroll working, or IR35, and has been a feature of business life for many years. At the moment, personal service companies do not have to factor income tax or national insurance into hourly/daily rates charged. However, with the IR35 change in April this year placing the onus on the employing entity to decide if the person providing the work through a personal service company is to all normal measurements an employee, there is a clear risk to the personal service company that it will be contracted (and treated for tax purposes) as an employee rather than an independent company.
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There will always be those who seek a way around all this and act as if nothing has happened. For example, some may consider becoming part of an umbrella company as a way of attempting to mask that they might be considered an employee. That might be quite a brave route, even if the principal employer accepts self-employed status, because it could still leave the tax status open to challenge from HMRC. Worse, if the personal service company’s assessment is incorrect, HMRC might decide to look at earlier years and thereby compound a potential tax charge on the personal service company. A very recent government announcement referred to an emergency review of the IR35 rules lest there are personal service company arrangements that fall foul of the forthcoming changes unfairly and do not determine employment/self-employment status correctly. Whether the review produces changes to the law within the next few months is a matter of conjecture and all eyes will be on the Chancellor’s Budget this March for any change to the definition/ availability of entrepreneur’s relief. Going forward, it seems likely that there will be a decline in the number of personal service companies in the North East and, as a result, more tax-paying employees. Some will see this as levelling the playing field. *Aberdeen-based Meston Reid & Co is a chartered accountancy practice with strong expertise in tax, audit, insolvency, corporate finance, business advisory, payroll and landed estates. The firm, based at Carden Place, has a broad range of clients, from sole traders to large companies with international operations.
The topics and speakers announced for the day are: Navigating your new contractual relationships post-IR35 changes 2020 – George Reed, managing director of Oberon Solutions; Coping with the challenge of ‘Imposter Syndrome’ – Karen Slupinski; Effective Staff Communication Key to 2020 – Dr. Naomi Irvine; Navigating Employer Pension Investment Challenges 2020 – Martin Dietz, head of diversified strategies, legal & general investment management.
Keynote speakers to address an array of topics at Marriott Hotel Acumen Employee Benefits is marking its launch with an inaugural event on ‘Navigating Business Uncertainty’ for HR professionals and directors to be held on Thursday 19 March at The Marriott Hotel, Dyce, Aberdeen. The event, which will run from 8.30 a.m. until 1.30 p.m. and includes a networking lunch, offers attendees the opportunity to meet the experienced Acumen Employee Benefits team and find out what they do, and hear from their keynote speakers, from across the UK, on the current challenges and opportunities affecting business in 2020.
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Complimentary places are available by booking via Eventbrite on the following link: https://aebevent.eventbrite.co.uk Alternatively, you can book by email at: info@acumeneb.com Early booking is highly recommended as places are available on a first come, first served basis.
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FINANCE
Inaugural Event for Acumen Employee Benefits
Excess Packaging Causes Frustration for Scottish Consumers Warning of reputational damage if brands do not promote sustainable packaging as consumers want plastic-free and zero-waste stores The Chartered Institute of Marketing (CIM) has warned brands they are risking reputational damage if they fail to adopt more sustainable packaging practices.
And it is not just e-commerce shops which are believed
It follows a study commissioned by CIM which found consumers in Scotland are most likely to complain to their peers about excess packaging, with almost 90 per cent stating they think companies use too much packaging when delivering or selling in-store.
Joe Pacitti, CIM Scotland chair, said: “Consumers are clear
The study, which gathered responses from 2,000 consumers across the UK, revealed that nationwide 88% think their shopping comes with more wrapping than is required, with children’s toys, mobile phones and cosmetics most likely to come in overelaborate packaging.
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to overdo it, as a sixth believe in-store food shopping also uses more plastic than is required. they want to do their bit to help tackle plastic pollution of the natural environment, so it should come as little surprise that sustainable packaging continues to be a growing concern for shoppers. “The study clearly illustrates that consumers don’t want excess packaging and, as the conversation about sustainability evolves, marketers must recognise that packaging is an issue which can make or break brands’ relationships with their customers.”
Retailers face reputational damage Almost a third admitted they have been ‘put off’ ordering from the same company again due to the amount of paper or cardboard which came with it. Overall, 36% judge a brand’s ethics on their packaging and a sixth have complained to a company because of this. A further four in 10 said the amount of excess packaging used often puts them off shopping online. Across the UK, more than a quarter of respondents would be willing to spend more on a product if they knew the boxes, paper and envelopes used were sustainable.
Consumer habits are changing Those who make the conscious decision to be green are prepared to spend on average 20% more. Worryingly an eighth admitted to throwing away the excess wra pping which gets sent to them, while 70% recycle it and a tenth even reuse it to protect personal deliveries.
It also emerged half the nation believe sustainable materials are used more now compared to 10 years ago and almost three in five said brands are using more ethical alternatives. A hopeful seven in 10 of those polled via OnePoll think there will be a time when companies no longer use additional wrapping for products. While four in five individuals take their own bags shopping to do their bit, 83% would like to see more plastic-free and zerowaste stores in their town. Joe Pacitti added: “What we’re experiencing is a reputational tipping point for brands, where packaging and sustainability initiatives weigh heavy in the minds of the consumer. “While it’s encouraging that the public broadly think brands are doing more now to tackle avoidable waste, the onus is on the marketing industry to take what consumers are telling us, and help organisations fully buy in to sustainabilityled strategies. “Furthermore, it is fantastic to see that organisations such as Zero Waste Scotland are supporting businesses in this endeavour to try to minimise the impact of plastics with support and advice.” About the survey Onepoll carried out the nationally representative survey of 2,000 adults during 21 November and 26 November 2019.
WE’VE BEEN HANDLING REMOVALS & STORAGE LONGER THAN MOST SINCE 1498. • • • •
Local, National & International Domestic & Commercial Removals Storage Part Load Services
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FEATURE
The study highlights that brands, big and small, must be prepared to face judgement from their customers on packaging alone.
PROPERTY
The First Decade
– Out of Adversity Comes Opportunity The future looks bright for Northwood Aberdeen as it launches new service Back in 2008, when the country was facing a major recession, Steven and Laura Mearns – both chartered accountants, had a more positive outlook! Both risk-takers and expecting their first child, they gave up the safe corporate world of accountancy to realise their entrepreneurial dream of running their own business: Northwood Aberdeen. With a passion for property, Laura and Steven brought a new concept to the rental market: Guaranteed Rent. This unique offering minimises risk for landlords, ensuring an income for a fixed period regardless of rent arrears or void periods, providing certainty and security with a hassle-free approach. A decade on, it’s been an exciting and successful journey. Since opening Northwood’s doors in 2009, the company’s gone from strength to strength thanks to the commitment and dedication of the team, and the fantastic working relationships they have with their clients. Operating from their own premises in Rosemount Place, with a team of 12 dedicated and experienced staff, Northwood have the stability, security and space to provide a long-term management service to its clients. Their success hasn’t come easily, following the recent downturn in oil and gas and the impact this had on the Aberdeen rental market. With rents falling by as much as 30-40% overnight, plus the impact of Scottish regulation changes, Laura, Steven and operations director, Matthew Pullinger, turned a negative into a positive by identifying market opportunities back in 2017. Despite the sudden, dramatic change, Northwood honoured all
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of their guaranteed rental income contracts and client loyalty proved a huge boost for the business. With rents so low, volume’s key in the current market so, in November 2017, Northwood acquired two other residential lettings businesses hoping the team could retain new clients, turn the businesses around, and boost turnover. It was a huge risk – but it delivered! During this period, Northwood also identified an opportunity in the local market to provide estate agency services to existing clients and, at the turn of the decade, they’re delighted to be launching this to the wider City and Shire market.
Celebrating Success Growing a business to a turnover of over £2 million during such a turbulent period captures the determination of the Northwood team. In recognition of their success, Laura, Steven and Matt were absolutely delighted and overwhelmed to win Franchise of the Year at their annual conference, “Out of adversity comes opportunity”, beating 90 other Northwoods across the network. This was a fantastic end to a decade in business! Northwood GB’s managing director reflected on their success: “Laura and Steven Mearns opened Northwood Aberdeen in January 2009 and are phenomenal business owners. Laura took over the day-to-day operations of the business in 2013, working very closely with operations director Matt Pullinger, who joined the business in 2009 and became a director in 2013.
“However, very much in line with the theme of this year’s conference, out of adversity comes opportunity, and the team at Northwood Aberdeen have clearly demonstrated just how much can be achieved with hard work, determination and ambition.”
Originators of Guaranteed Rent since 1995 The core of Northwood Aberdeen’s business is their unique guaranteed rent offering, providing landlords with a stress-free property management solution, ensuring secure payments even when a property’s empty or a tenant’s in rent arrears. It provides a financial safety net: Northwood become the tenant for a fixed period, guaranteeing rental payments. In addition, Northwood recognise that, like Laura and Steven, some clients want to take risks, hence Northwood provide traditional property management services, too. A new decade only means one thing: a new chapter for Northwood Aberdeen unfolds
“How times have changed! We now google ‘property for sale’ and an array of portals appear, so we can search anything, any time, anywhere. We hunt through these for a property that stands out, so an online presence is critical. That search power has dramatically changed the way we buy and sell property, and gave us the chance to access the market and provide a unique personalised sales service.
During the uncertainty in the rental market in 2016, Northwood identified an opportunity to provide estate agency services to their existing clients. Having lived and worked in Aberdeen all her life, and grown a strong brand and network over the last decade, Laura’s well placed to advise clients and provide an outstanding personal estate agency service. Northwood made a promise they’d only charge the estate agency fee at the point of sale, confirming their dedication and commitment to achieving a positive outcome for clients. The success of this over the last two years has given them the confidence to reach out to the wider City and Shire market, and Laura and Matt are excited to be formally launching Northwood Aberdeen’s estate agency service this year. How individuals buy and sell properties across the UK and, more specifically, in Aberdeen has changed in recent years and this presented an opportunity for the company.Having bought and sold a few properties in the city, Laura has first-hand experience of these changes: “Traditionally, when we bought a property, we picked up our weekly property journal, visited our local ASPC shop, chose a property from an advert on the wall and arranged a viewing in person.
Moreover, Northwood have been proactive in introducing a property dressing service so clients’ properties do stand out, a critical component in the current market.
What does the future hold for residential leasing in Aberdeen?
“APSC has been well known in the Aberdeen market for years and, as such, is often the first point of call for buyers and sellers. I feel it’s my role to educate existing and prospective clients about other options available too, encouraging them to maximise their property exposure using other portals, reaching more potential buyers to achieve a successful sale.”
The Aberdeen rental market’s stabilising, having hit rock bottom in 2017. Northwood have sought to improve the tenant journey, firstly by simplifying the application process. They also communicate market conditions and provide an added value service to landlords, helping to upgrade properties. This, coupled with investment in first-class software, gives clients a service that exceeds expectations.
With a saturation of properties currently available in Aberdeen, Laura believes the key is ensuring your property stands out, and she feels she’s well positioned to advise clients on achieving this.
Locally, renewed optimism in oil and gas and an upward trend suggests continued stabilisation and a reduction in overall stock that will provide a solid base for a rental investment.
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“In 2018 Northwood Aberdeen won top Scotland office, but last year they rose to another level – achieving the highest turnover of any other Northwood franchise. This achievement is all the more remarkable when you consider how badly Aberdeen was hit in recent years by the dramatic fall in oil prices, which crashed the rental market.
PROPERTY
UK Real Estate Expected to Gain Momentum in 2020 Though CBRE expects political uncertainty to persist as future EU trade relationship negotiated The real estate sector momentum in 2020 now withdrawal agreement according to CBRE’s UK Market Outlook 2020.
should gain that a Brexit is reached, Real Estate
CBRE forecasts that the UK economy will have a slow start to 2020, before picking up in Q2. It forecasts continued real earnings growth, due to record labour participation and unemployment below 4%. With the low interest rate environment set to continue, CBRE anticipates UK real estate will offer attractive and solid returns for investors. Across all property, CBRE expects total returns of 4% per annum between 2020 to 2024. Investment volumes should rebound sharply.
Several sectors are predicted to outperform across the UK and generate new opportunities for investors and occupiers. After exceeding expectations in 2019, office occupier markets are likely to continue to perform well across the UK, with corporate occupiers increasingly using real estate as part of their recruitment and retention strategy. Office-based employment, which has grown rapidly over the past two years, is set to continue to expand in 2020, albeit at a more moderate rate. The war for talent will drive the occupational markets, with increasing demand for new, high-quality space. Given the supply of such space remains low, further rental growth is predicted in 2020.
The industrials and logistics sector is set to remain resilient, on the back of steady demand for logistics space and the sustained growth of e-commerce. Industrials and logistics rents are expected to continue to outperform other sectors. The year could also see the first multi-family assets trade hands in the UK, rather than the high volume of forwardfunding transactions seen in the market up until now. With developments set to spread throughout the UK, CBRE predicts investment in multi-family will increase by 30% in 2020. In the retail sector, CBRE expects a continuation of the current challenging environment from a combination of structural (changing consumer spending preferences and the growth of e-commerce) and cyclical (wage growth above inflation and EU workforce shortages) factors. However, CBRE
FG Burnett Bucks Trend with Plethora of Property Deals Strong 2019 performance a sign of growing optimism in Aberdeen FG Burnett, one of the north-east of Scotland’s leading commercial property consultants has enjoyed a strong 2019, recording 92 commercial property transactions across the office, retail, industrial and development sectors, representing a deal every three business days. Despite challenging market conditions, the number of deals transacted in the office sector is approaching the levels prior to the oil price downturn in early 2015 and is indicative of growing optimism in the energy sector and, accordingly, the Aberdeen property market. Whilst FG Burnett’s involvement in the majority of these transactions has been representing the landlord or vendor, there has been an increase in the number of tenant representation work, both for
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existing clients and new entrants into the oil-and-gas market.The company has been involved in over 170,000 square feet of office transactions in 2019. This equates to approximately 33% of the total annual square-foot office take-up. In terms of other sectors, 19 and 29 industrial and retail deals were completed respectively, with the remainder for development. FG Burnett’s head of agency, Graeme Nisbet said: “The number of deals recorded is testament to the hard work of the agency team and the wider support of the company. We have been operating in a very difficult market for the last few years due to the oil-andgas downturn, which has had a direct effect on the local property market with supply and demand at opposite ends of the spectrum.“Thankfully, we are now
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seeing more positivity in the market and this has translated into renewed demand and, for the first time in four years, supply levels in the office and industrial markets have reduced. There are still challenges ahead however, but with challenge comes opportunity. “There has never been a better time for occupiers to acquire commercial property and I believe that we are well placed to offer the very best advice to clients.”
Operational real estate, including student accommodation, healthcare, leisure, hotels and petroleum and automotive, is set to be a major growth area in 2020, with an increasing volume of deals in the sector and the emergence of specialist and core funds, with a greater allocation of institutional capital into operational real estate. Drivers include the continued slowing of the traditional real estate sectors; the shift in focus to non-core markets as balancing real estate capital in core markets remains challenging; and the decline in lease lengths and capital growth through rent reviews. CBRE expects the trend of the ‘hotelification’ of real estate to continue in 2020, as property investors align with best-in-class operating partners to drive volume and pricing. Climate change will continue to rise up the agenda for real estate investors and developers. It will be particularly relevant
PROPERTY
expects retailers who redevelop and reposition excess retail space for alternative uses to survive and thrive in 2020. Health and beauty will continue to benefit from increasing consumer interest in wellbeing, while the food and grocery sector will perform well as convenience remains the top driver for consumers.
for Scotland with the UN holding a major climate change summit in Glasgow in November 2020. As a result of increasing social, political and regulatory pressures, CBRE predicts that carbon neutrality will become an explicit goal for real estate decision-makers in 2020. The real estate industry will move towards a more holistic approach to tackling climate change, with the environmental impact of every stage of a building’s life cycle considered – ranging from the sourcing of raw materials to redevelopment. With increasing activism amongst shareholders and clients, CBRE expects most real estate investment strategies to incorporate carbon neutrality during the next year.
Miller
Mathieson,
managing
director
Scotland, CBRE, said: “While political uncertainty will persist throughout 2020 as we negotiate our future trade relationship with the EU, we expect to see a rebound in investment volumes across Scotland and the rest of the UK. The underlying property fundamentals in Scotland’s biggest cities remain strong, especially across the office, industrial and operational real estate sectors. Climate change is now a major focus of the property industry and there is no doubt that investors, developers and occupiers will prioritise this issue in 2020 and beyond.”
CBRE Research Reveals 2019 Office Market Performance in Aberdeen City sees healthy end to year with highest level of take-up since 2014 Aberdeen experienced a healthy final quarter in 2019, bringing the year-end total to 505,710 square feet – the highest level of office take-up since 2014. This represents a 42.4% increase from 2018, and a 34.4% increase against the five-year average of 376,324 square feet. There were a number of large transactions throughout the year, with the 51,000 square feet taken by engineering firm Oceaneering at Aberdeen International Business Park in September representing the largest office transaction in the Aberdeen market since 2015. This was then then surpassed in Q4 with the 76,620 square feet taken by TAQA at Prime Four in Kingswells. A further 32,000 square feet of surplus space at Prime Four was secured by Transocean and Addleshaw Goddard, while Westhill saw Total and Borr Drilling secure new premises of 12,500 square feet and 15,000 square feet respectively.
At the Hill of Rubislaw, Citibase opened a second 17,000-square feet serviced office and Siccar Point took on an additional 4,500 square feet suite in H1. In the city centre, deals at Marischal Square saw a total of 30,800 square feet of space taken by EY, KPMG and Chevron, while 17,000 square feet on Schoolhill was acquired in a collaboration between Opportunity North East and CodeBase to open Aberdeen’s first tech hub. Derren McRae (pictured), managing director of CBRE in Aberdeen, said: “Mirroring the improved economic sentiment in the North East, 2019 has been a great year for the office market performance in Aberdeen. With the oil price rising to $60–$75 per barrel over the year, the city has witnessed an encouraging level of take-up, focused mainly on the energy and professional services sectors. “Interestingly,
the
larger
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have been spread throughout the city, demonstrating the impact the new Aberdeen Western Peripheral Route ring road is having on occupiers and their decision-making when it comes to location. “The volume of city centre deals is a sign of its continued resurgence, although the acquisition of 14,000 square feet at 1 Albyn Place by Add Energy shows that occupier demand for the best quality West End buildings remains strong. The launch of Opportunity North East and Codebase’s tech hub, providing 17,000 square feet of incubator space for tech start-ups, is a positive sign of the diversification taking place in the north-east economy. “Looking forward we anticipate further asset acquisitions in the North Sea in 2020, which we expect to lead to new requirements resulting in greater demand for grade A stock across the city.”
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Aberdeen Property Market & Brexit Relationships Explained Property experts express their opinions on data regarding Scottish house market after Brexit - By Gioia Brogioni Since the 2016 Brexit Referendum, house prices have been a very much talked about subject as political uncertainty has been making things confusing for all the players involved. According to the latest statistics, 2020 is due to be a much more positive year than 2019 for the housing market, with Aberdeen being an appealing location for both well-experienced investors and firsttime house buyers. Yet, according to the experts, a no-deal Brexit may still slow down this process of regrowth. The past decade saw a rollercoaster in house price trends on a national level. In particular – after a small increase in house prices at the beginning of the decade, right after the financial crash – prices started to fall. From a certain point of view, low house price inflation or, in the worst case, property prices falling can be positive, as it makes things easier for first-time buyers. However, on the bigger scale, it dented banks’ and bigger building societies’ willingness to lend on properties, ultimately resulting in a stagnant market. Yet Scotland properties have been looking the most appealing for both banks and investors until the last couple of years, when Aberdeen registered some of the most worrying data according to the Zoopla UK Cities Index.
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In particular, in August 2019 Zoopla reported Aberdeen’s house prices sharpest fall in the previous 12 months at -4%. According to Aberdein Considine’s statistics, the average price for a house in Aberdeen is now £193,141. Initially, Zoopla attributed this to the 2015 oil price collapse and later the economic instability brought about by Brexit. Aberdeen is indeed one of only four of the United Kingdom’s local authority areas where prices have fallen since the beginning of the decade, together with County Durham, Hartlepool and Dumfries and Galloway. Yet, Bob Fraser, senior property partner at Aberdein Considine, said late in November that Aberdeenshire has “weathered the worst” of the house market downturn. In fact, the economic instability brought about by Brexit has undeniably challenged the property market all across the United Kingdom, but mostly in Southern England. According to the Zoopla Report, the Brexit anxiety has weighed particularly on London properties that now take a month longer to sell than three years ago. Also, Lucian Cook, Savills’ head of residential research, said to This is Money earlier this January: “From June 2016 onwards, post-EU referendum sentiment has dominated and a slowdown in the capital has resulted in a reverse ripple through the commuter zone. In this latter period, the average London home has gained just 26p a day compared to the North-East (of England)’s £6.19 and nearly £23 in the East Midlands.”
As a matter of fact, despite the house price fall, Aberdeen’s property market also saw an increase of 14% in cash buyers over 2019. Liverpool were the only other city in the country to experience a similar rise. In late September, Mr Donnell commented on the situation, saying to Insider: “The housing market is throwing off mixed signals as the headline rate of price growth slows, yet demand from homeowners using a mortgage continues to increase.” He also added that, despite the confusion caused by Brexit, demand from mortgaged homeowners was persisting and this was supported by “low mortgage rates, high levels of employment, and households who want a home”. Towards the end of 2019, Aberdein Considine carried out a major poll to find out homeowners’ feelings. It showed that 50% of Scots fear their property’s value will decrease in 2020 after Brexit. Aberdein Considine’s managing partner, Jacqueline Law, said: “There has, over the third quarter of the year, been a sharp increase in the number of Scots who fear that Brexit will result in the value of their home decreasing. “There is clearly homeowner anxiety around Brexit, but this has yet to be reflected in sales figures, perhaps due to the greater public having little idea what Brexit will actually look like.” According to their “Property Monitor Report”, sales in Scotland reached £5.3 billion towards the end of 2019. Furthermore, their data showed Aberdeen also figured as a new hotspot. Here, the value of property changing hands increased by 4.4%. Looking ahead to the next five years, UK house prices are expected to rise by an average of 15.3%. According to Savills report, there will be significant regional differences across the nation. For example, London’s property market will keep experiencing difficulties. There, the growth will be of only 4% across the entire five-year period, while in 2020 it will even be negative with an expected change of -2,5%
On the other hand, things appear to be more positive for Scotland, especially in Glasgow, Edinburgh and the north-east of Scotland. Here the property market is due to experience a total increase in house prices of 19.9%, going from a value of £131,000 in 2019 to £157,000 in 2024. But in 2020, growth will be only 1.5%. In other words, while the prospects for the next five years appear to be much more positive than during the last decade, in 2020 housing market growth will still be modest. The experts’ community appears to be divided on whether Brexit will impact positively or negatively on the next year. Some believe the recent Conservative election win may have brought more certainty and that in the next few months it will release pentup demand supported by low-rate and low-deposit mortgage deals. In fact, some mortgage lenders are currently maximising affordability by lending on 40-year mortgage terms. This way borrowers can lower their monthly repayments. Managing director of Halifax, Russell Galley, commented that the property market future looks “a bit brighter”. However, other experts also believe that Brexit on 31 January and the possibility of a second Scottish independence referendum (IndyRef2) will remain a major preoccupation. According to them, these will slow down the recovery process of the property market and they expect the prices to grow very modestly in Scotland. The EY Item Club’s chief economic adviser, Howard Archer, said: “There will still be appreciable uncertainties, including on the Brexit front, so that the upside for house prices in 2020 is likely to be limited.” Substantially “a bit brighter” yet still a “challenging 2020” is the best way to describe the immediate future of the house property market. Only after a good two or three months will experts be able to make more accurate and certain predictions. As with all political changes, everything will depend on how the government and local authorities such as Aberdeen City Council will be able to respond to and handle the situation. Sources: https://www.insider.co.uk/news/aberdeen-suffers-fastest-falling-house-20263116 https://www.pressandjournal.co.uk/fp/news/aberdeen/1891532/aberdeen-andwestern-isles-have-weathered-the-worst-of-housing-market-downturn/ https://www.thisismoney.co.uk/money/mortgageshome/article-7801417/Whatproperty-prices-Britain-2020-onwards.html https://www.insider.co.uk/news/property-experts-make-forecasts-housing-21201037 https://www.eveningexpress.co.uk/news/business/house-sales-take-longest-forthree-years-as-uncertainty-hits-housing-market/
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PROPERTY
Research and insight director at Zoopla, Richard Donnell said to the Evening Express: “There is a continued polarization in housing market conditions across the country.” Meaning that, while in London sellers are accepting bids 5.7% below the asking price, in Scotland housing affordability remained attractive. According to him, in this part of the country, continued economic growth supported the demand for homes and resulted in “reasonable sales periods and only modest gaps between sales and asking prices”.
FOOD & DRINK
Entrants Line Up for Food & Drink Excellence Awards Entries place products in front of key buyers and decision-makers for judging
Products submitted for the Scotland Food & Drink Excellence Awards go through a rigorous judging process, being judged by experts and buyers from foodservice and retailers. Last year’s panel included representatives from Asda, Marks & Spencer and Ocado. Entrants will be whittled down to a shortlist, to be announced in April, before the ultimate winners are announced at a gala dinner and awards ceremony on 21 May 2020. Winning products will also receive an ‘award-winner’ logo to provide a clear indication to consumers of their high quality and the special recognition they have been given. Winners will be able to access the help and expertise from organiser Scotland Food & Drink, who will liaise with them throughout the following year to introduce them to buyer contacts in key markets. Increased brand awareness through Scotland Food & Drink marketing campaigns is an added benefit, and previous winners have seen a real boost in sales as a result.
Food and drink producers hoping to be recognised at Scotland’s most prestigious celebration of the industry had until 14 February to get their entries in. The Excellence Awards not only recognise the highest quality produce Scotland has to offer, but also commend the people, companies and suppliers that contribute to one of the country’s most important and valuable industries. All Scottish food and drink companies whose products are wholly or mainly produced, processed and packaged in Scotland are encouraged to enter, regardless of size.
James Withers, chief executive of the industry body and event organiser Scotland Food & Drink, said: “The Scotland Food & Drink Excellence Awards is one of the most important nights in the calendar for an industry going from strength to strength. The awards represent a great opportunity for producers to gain the recognition they deserve, and for us all to celebrate the dedication, innovation and talent in Scotland. “Be it in a field or a factory, exciting and dynamic products are being developed the length and breadth of the country and, as an industry, we should be forthright in telling the world about our achievements.”
Food & Drink Supply Chain Outlines Recommendations Policy paper launched with common themes for government’s future UK trade policy Organisations from across the UK food and drink supply chain have launched a new policy paper1 outlining common themes the government should use to develop future trade policy, as negotiations between the UK and other nations begin. The paper has been developed by the cross-sectoral Food and Drink Industry Brexit Roundtable, convened by FDF, and the separate Arable and Livestock stakeholder groups advising Defra. Their views focus on how the agri-food industry can take advantage of the opportunities created by leaving the EU. Their ambition is for a future UK trade policy which will drive growth, promote efficient and sustainable food production and stimulate innovation, while providing consumers and shoppers with even greater choice and better value. The key recommendations outlined within the paper focus on trade policy priorities, principles, and the process of trade policy development. The recommendations include:
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• Accommodating Rules of Origin2 and ensuring they are tailored to meet the needs of the industry; • Giving business time to adapt to changes in competitive positioning arising from the creation of new trade agreements; • Thought being given to the benefits and costs of choosing to move away from existing regulatory technical standards; • Encouraging job creation and value addition in every region of the UK by prioritising agrifood; • Retaining the UK’s ability to deliver high standards at competitive consumer prices; and • Encouraging sustainable food production, while diminishing environmental impacts. 1 https://www.fdf.org.uk/publicgeneral/global-britain- trade-policy-paper.pdf 2 https://www.fdf.org.uk/corporate_pubs/FDF-Rules- of-origin-report.pdf
Raven Spirits look beyond Scotland with Business Gateway advice An Aberdeenshire gin producer has started exporting to key Asian markets thanks to strategic advice and support from Business Gateway. In 2019, Raven Spirits signed an export agreement to send consignments of its two award-winning gins to Hong Kong, Taiwan and Macau. Peter Sim (left, with Callum Sim), director of Raven Spirits, said: “Typical gin producers in Scotland tend to target the local market which, especially in the case of Aberdeenshire, is very saturated. Therefore, we made a concerted effort to target export markets in order to grow the business.”
Peter continued: “The business grant received from Scottish Enterprise, with the help of Business Gateway, allowed us to thoroughly research our chosen markets, visit them and finally seal our first export agreement. “The impact of this support has been immense. It helped us to achieve our goal of exporting years earlier than if we had done it alone. After engaging with the team for two years, we have gained knowledge, had access to targeted help and received reassurance that our products will be successful in new international markets. The power of confidence for a new business cannot be underestimated, so Business Gateway was a real catalyst in moving our dream forward at a faster pace.”
Export figures released by HMRC in August 2019 showed that gin exports from the UK were worth £730 million, while domestic sales soared at £2.3 billion, putting the total value of the industry at just over £3 billion.1 Business Gateway’s bespoke action plan had a substantial impact on Raven Spirits’ ambitions to export, giving the gin maker access to Scottish Enterprise, Scottish Development International and one-to-one sessions with a business adviser. In particular, Business Gateway supported a successful application for funding from Scottish Enterprise.
1 HMRC export figures reported by The Scottish Gin Society: https://www.thescottishginsociety.com/2019/11/15/scottish-gin-an-industry-at-its-peak/
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FOOD & DRINK
Aberdeenshire Gin Producer Toasts Export Success
HOSPITALITY
Figures on Upswing for Hospitality Aberdeen hospitality and room availability on rise for 2020 By Stevie Leask Most of the time Aberdeen feels like a world of its own: it is a city that is able to attract a wide range of people, a city that people feel is the right place to bring up their children. The biggest challenge for Aberdeen city and shire is the oil crisis – there have been many knock-on effects. However, there has always been one sector raising concern, whether or not the crisis is going to affect it. Dr Andrew Martin, lecturer in Tourism at RGU, has given some insight into what has triggered the crisis: “The dollar price coming down meant there was less need for accommodation and this has given a difficult trading environment for hotels.” So, what does 2020 have in store for hospitality and room availability? What impact is the crisis going to have on this market? At the beginning of the oil crisis erupting, hoteliers had a massive struggle; Aberdeen had gone from a best in class to worst in class performer. However, the sector has begun to revive itself. There has been a vast saturation in the amount of rooms available over the last five years – they have seen a huge rise, from approximately 3,000 to 10,000. Unbelievably, the figures have tripled – a struggling market has managed to show a boost in its numbers. There are so many different reasons as to why this is happening. For example, different types of people are attracted to Aberdeen – there are so many beautiful aspects that make Aberdeen the ideal place to visit. Visitors now have the chance to stay in accessible hotels where there are different public transport lines, shopping, restaurants, and TECA and P&J Live. More visitors are attracted as they have a lot more choice of what to do around Aberdeen. The crisis, however, led to two hotels going into administration – the Holiday Inn Express on Chapel Street and the Holiday Inn at Westhill. That was when the company
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behind the Albyn Bar and the Holiday Inns next to the exhibition centre put both up for sale. There were “severe cashflow problems” driven by the oil crashes, but also fierce competition between other hotels that started to appear. Both of these hotels have been put up for sale for an undisclosed sum of money. There is also a key deal taking place between the Marriot Moxy Hotel, located next to Aberdeen airport, and British Steel for £5.7 million. The bigger branded hotels were affected by this, but also smaller chains saw themselves going into administration, including a hotel on Crown Street and one on Union Street. The motto throughout the mess this left was ‘business as usual’. However, there is beginning to be a positive aspect as “improvements in oil price and errors to diversify Aberdeen’s economy suggests a move back into positive territory for RevPAR (used to assess a hotel’s ability to fills its available rooms at an average rate) growth”.
North East (ONE), VisitAberdeenshire
It is going to be challenging due to the factor of “more competition, less business going around”. These chains of events are attracting investors
Enterprise to develop a range of support
from overseas. Savills states they “recognise a window of opportunity to
promotes and helps to develop tourism businesses
Aberdeen was the only city out of 22 in the United Kingdom that struggled with the crash. However, things can only move forwards and upwards for the city, and investors have begun to see hope again. The opening of the Sandman Signature hotel in Aberdeen, for example, sparked a vast amount of willingness amongst investors as this offered positive possibilities for them. But what has sparked this sense of hope and willingness to succeed? One thing that has started to help this industry in Aberdeen is the opening of TECA and P&J Live, with new exhibition halls and arena. It has been seen to be a real game changer for the industry: at 48,000 square feet, its arena has capacity for 15,000, and there are seven conference halls that can hold a capacity of 5,000 people, thus meaning expansion for hospitality and room availability. This has led to the opening of two international branded hotels which have altogether 350 rooms. Due to the success of these hotels, investors have been inspired to develop their ideas, building an extra two. To follow on from the success of the brand new exhibition centre, further development of Aberdeen Airport is also set to boost the economy for Aberdeen. It is becoming more accessible for international flights, therefore there is an increasing number of tourists, hence the need for more room availability. Could this finally be Aberdeen relying on different sectors rather than solely on the oil-and-gas industry? Steven Fyfe, associate director in the hotels agency at Savills, said: “While there has been a historical dominance and reliance on the oil industry, there are efforts to diversify Aberdeen’s economy and this will prove positive for hotel operational performance over the longer term.” Moreover, hospitality and room availability are going to be pushed to their limits in 2020 due to a brand-new sector, cruise tourism, being introduced to the city. The expansion of the Aberdeen Harbour is causing a lot of controversy due to the fear of it not working out. Many people believe that even if the harbour is being extended, Aberdeen will still not be able to cope or know how to deal with such expansion. For the future of 2020, investors will not have to face this alone; VisitScotland and VisitAberdeenshire are there to help. Chris Foy, chief executive of VisitAberdeenshire, said: “With our backing, Aberdeen City Council, Aberdeenshire Council and Opportunity
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the
North
programmes for local businesses.” In
acquire assets at a discount”.
throughout
East, and works closely with Scottish
addition
to
the
support
of
VisitAberdeenshire, there is also going to be a vast amount of support from the Scottish Government. A spokeswoman said: “We have listened to the concerns of the hospitality sector and introduced a real term 12.5% cap on rates increases for all but the largest hospitality premises.” The future is looking bright for room availability and hospitality – Aberdeen could become one of the biggest hubs in this industry. With investors receiving backup from organisations such as VisitScotland, this industry is going to thrive.
Sources of information h t t p s : / / w w w. e v e n i n g e x p r e s s . c o . u k / f p / n e w s / local/333m-teca-will-be-real-game-changer-fornorth-east-hotels/ https://www.aberdeencity.gov.uk/media/8837 https://www.savills.co.uk/blog/article/246542/ commercial-property/oil-price-recovery-boostsaberdeen-hotels.aspx https://www.bbc.co.uk/news/uk-scotland-35300495 h t t p s : / / w w w. e v e n i n g e x p r e s s . c o . u k / f p / n e w s / local/333m-teca-will-be-real-game-changer-fornorth-east-hotels/
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Image credit: www.visitaberdeen.com
HOSPITALITY
This has been seen to put many investors in a position of uncertainty, but can they stay positive for 2020? By the sound of things, investors have a lot to look forward to in the following years. Dr Martin continues: “The future is positive but currently it is very challenging.”
SECTION HEADER
Coffee with... Steven Clark – Together BUSINESS NOW’s editor gains insights into specialist finance over a flat white
Together have been delivering specialist finance for over 40 years. They use their wealth of experience and industry know-how to consider individual circumstances and find a way to help. Keen to learn more, I met for coffee with Steven Clark, regional development director, to chat over coffee.
“Hi Steven. Could you begin by telling our readers about yourself and what your role involves?” “Well – I’m 37 and married with two young boys, aged four months and three. If that wasn’t enough to keep me busy, I’m Together’s regional development director for Scotland, and spend much of my day on the road. “Together specialises in property finance, and it’s an industry I’ve been working in for the last 13 years. As a lender, Together works with everyone from private home buyers needing a mortgage, to commercial builders needing to raise funds for a new housing development. “It’s my job to build awareness of the Together brand among people in the Scottish property industry. I think there’s often a feeling that support for projects or development is no longer there, because quite often lenders focus all their attention on the Central Belt and
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M8 corridor. But it is there – we’re 100% open for business and want to help people across the length and breadth of Scotland. “Day to day, I work almost entirely with commercial clients – like property developers who need to raise money for upcoming projects, and SMEs who need to secure new premises or raise money to invest in their business. Often these clients are introduced by high street banks who’ve referred the case to us because the circumstances mean they’re unable to help.”
“Could you let our readers know what makes Together different?” “In short, we put the common sense back into lending. We don’t have complicated lending policies, and you can build up a two-way relationship with us, like you used to have with your bank manager. In many respects, it’s like how lending used to be. “We ask ourselves if we’re happy with the property being used to secure the loan, and if we’re happy with the person asking for it. If we are, let’s do business. Keeping it simple like this allows us to make really quick decisions, and that can make all the difference. Time is money, after all. “Our flexibility means we can support in all sorts of transactions that some other lenders could only dream of. Whether it’s your timescales, the property or your personal circumstances that they baulk at, we’ll always take a look. It’s what we’ve done for 45 years. “What’s especially important to us is that we support customers across all parts of Scotland.”
“Not at all – I also work with other professionals in the finance and property industries, who turn to us when a client of theirs needs our help. “I’m talking about conveyancing solicitors, accountants, estate agents, architects, and – perhaps surprisingly – other lenders. Sometimes they refer a client to us because they can’t find another lender willing to consider the merits of the application. And sometimes it’s because their chosen lender can’t move quickly enough.
“In those instances, we’ll often step in with a short-term solution that bridges the gap between the client’s deadline and the granting of the necessary mortgage or loan.”
“Okay! I understand, but perhaps you could give us some examples.” “I can think of one customer who had to raise £600,000 in a fortnight to settle a significant bill from HMRC. If they didn’t, HMRC were threatening a six-figure penalty. Fortunately, they had five properties (with plenty of equity) that they could use as security for a bridging loan. And while that two-week timeframe would have been an issue for many lenders, we were able to step in.
“I think the lending marketplace will continue much on the same trend as the last 18-24months.” “We agreed the loan, subject to valuations, and issued legal papers all within 24 hours, so conveyancers could work on the legal aspects. We received valuations a week later, and they were all in line with expectations – meaning we could fund the case in eight working days and save the client a small fortune. Once the tax bill was settled, our customer was able to access longer-term funds and repaid our loan within a month. “Another example, which is very typical, was a customer who was looking to buy a sizeable commercial unit in Edinburgh for around £1.4 million. A high street bank had initially agreed to provide a commercial mortgage, but moved the goal posts with only 30 days before completion was scheduled to take place. “The customer found another option on the high street but completion would have been delayed, and they didn’t want to risk the purchase falling through. We provided a short-term bridging loan, allowing the client to complete their purchase as planned; the customer simply repaid us with the funds from their commercial mortgage when that was granted.”
“So, does that mean it’s just short-term loans you offer?” “No, we offer all sorts of commercial finance options, including buy-to-let and commercial property mortgages. One key point of difference is that we place no limit on the size or value of property portfolios, so we deal with a lot of big landlords – whether they’re buying many properties in a single transaction, or refinancing away from their current lender for one reason or another. “Our range of products means, in a situation like this, the customer suddenly has several options. We could provide a long-term facility for the whole portfolio; a bridging loan while they break up their portfolio into several smaller ones; arrange short-term finance while some properties are sold off; or any combination of these.”
“Could you tell our readers how you see the lending marketplace in Scotland developing in 2020, and why?” “I think the lending marketplace will look a lot like it has in the last two years or so: more and more challenger banks and specialist lenders like us, putting an additional focus on Scotland. “And I think this is being driven by a stagnant offering from the high street and mainstream lenders – I don’t see any significant changes from them in the short term, at least. So, we challengers will continue to plug that gap.” Enlightened by my chat with enthusiastic Steven, I drained my coffee and thanked him for giving me his time and insight into the lending industry. I left our rendezvous excited at the prospect of sharing his vast knowledge with you.
If you’d like to learn more, you can contact Steven by calling on 03717 052066 or emailing him at: steven.clark@togethermoney.com Any property used as security, including your home, may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Together is a trading style of each of the undernoted companies, which have their registered office address at Lake View, Lakeside, Cheadle, Cheshire SK8 3GW. Together Personal Finance Limited is authorised and regulated by the Financial Conduct Authority (FCA) | Registered in England and Wales – Company Registration Number 02613335. FCA number is 305253. Together Commercial Finance Limited | Registered in England and Wales – Company Registration Number 02058813.
Issue 19 Spring 2020 www.business-now.co.uk Issue 9 Spring 2017 www.business-now.co.uk
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COFFEE WITH...
“So, is it just property investors you work with?”
FEATURE
Does ‘Cycle to Work’ Scheme Actually Work? Government programme started in 2000 to improve health and environment From health improvements to a reduced carbon footprint, we all know the benefits of cycling. However, is it enough to convince you to give up the car and commute to work on a bike instead? Despite the advantages that can be gained from switching your car for a bike, British cyclists are still in the minority. The British Social Attitudes Survey found that in 2018, over 80% of respondents cycle less than once a month or never at all. These findings came 18 years after the government launched the ‘Cycle to Work’ scheme, which was designed to encourage more people in the UK to commute by bike to preserve the environment and improve the nation’s health. So, does the cycle to work scheme actually work?
What is the ‘Cycle to Work’ scheme? Now in its twentieth year, the ‘Cycle to Work’ scheme was introduced as part of the Finance Act of 1999 as a way to encourage more people to swap their car for a bike. The scheme was designed to persuade the UK’s workforce to make healthy and environmentally friendly choices when travelling to work. As an incentive, companies enlisted in the scheme are able to save money when reimbursed through the scheme, while employees are entitled to an affordable way to purchase a new bike, tax-free.
Bikes can be used in leisure time as well as commuting to work and, at the end of the loan term – which is essentially a hire period for your equipment – employees can purchase the gear by paying any outstanding fees; otherwise, it will belong to the employer.
Has it made an impact? With personal, financial and environmental benefits for both businesses and employees, the ‘Cycle to Work’ scheme seems like a no-brainer. But has the scheme actually helped to increase the number of cyclists cycling to work in the UK? Data from studies published by the Department of Transport1 and the Institute for Employment Studies (IES)2 was looked at to see how cycling in Britain has changed over the years since the introduction of the ‘Cycle to Work’ scheme. While the data shows that people are travelling further on bikes – with the average distance in 2002 being 987 miles per year, rising to 1144 miles per year in 2017 – the volume of cyclists has generally remained the same:
•
Cycling on British roads sharply declined during the 1950s and 1960s, but has been slowly growing since the 1990s
•
The number of cyclists has increased between the 2001 and 2011 census, but the proportion of cyclists to non-cyclists has remained the same in that time
•
The proportion of adults that usually walk or cycle to work has remained roughly the same over the past fifteen years
How does the ‘Cycle to Work’ scheme work? The ‘Cycle to Work’ scheme is fairly straightforward to understand. Businesses can sign up with a scheme provider which allows employees to spend up to £1,000 on bikes and equipment, tax-free. This means employees will save up to 42% on the overall value of their cycling gear. Employers buy the equipment from a scheme provider and employees pay their company back in monthly instalments as part of a salary repayment scheme.
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What’s holding the scheme back? The ‘Cycle to work’ scheme has persuaded cyclists to ride more frequently, but has been less effective at convincing non-cyclists to take part. The IES’s survey discovered that 57% of respondents were already cyclists before taking part in the scheme.
SECTION HEADER Research from the Department of Transport found that the biggest concern for people travelling by bike in the UK is concerns with road safety. Three fifths of UK adults aged 18 and over are not confident enough in their own ability as a cyclist to ride on the roads.
It is not just safety issues; other reasons include:
• • • • • •
My bike is broken/I don’t own a bike It’s easier/quicker to travel by car Lack of time/too busy I have a car/driving licence General lack of interest Too much traffic/traffic is too fast
The future of the ‘Cycle to Work’ scheme Cycling in the UK has stayed fairly constant over the years, even with the introduction of the ‘Cycle to Work’ scheme. Even so, there is evidence that people who already cycle are choosing to get involved, as the average distance travelled has increased and 37% of cycling trips in 2017 were down to commuting – higher than any other purpose. If anything, the scheme is a fantastic, affordable way for cyclists to upgrade their kit and indulge their passion for riding. And for those who make a long-term commitment to swapping their car for their bike, they can enjoy incredible health and financial benefits as detailed in this infographic from Merlin: What would happen to your body if you swapped your car for a bike? The results showed that once the year is up, you’ll have stronger muscles, prolonged mental health benefits and have saved a small fortune. If businesses actively promote these statistics to their employees, it may be the incentive non-cyclists need to get involved in the ‘Cycle to Work’ scheme and switch up their commute. Surveys 1 https://assets.publishing.service.gov.uk/government/uploads/ system/uploads/attachment_data/file/736909/walking-and-cyclingstatistics-england-2017.pdf 2 https://www.employment-studies.co.uk/system/files/resources/ files/509.pdf
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SECTION HEADER
Spectra Teamed Up with Local Charity We Too! Tailored performances provided for families of children with additional support needs
Spectra, Scotland’s Light Festival, this year teamed up with We Too! – a charity and magazine that caters to the families of children with additional support needs – for the first time, to provide a series of tailored relaxed performances as part of the festival programme in February 2020. Spectra, commissioned by Aberdeen City Council and produced by Curated Place, is a free and family friendly festival which took place this year from 13-16 February. Returning to Aberdeen city centre for the first time in two years, the festival featured light-based installations from a range of artists from the UK and further afield and took inspiration from the Year of Coasts and Waters. For the first time ever, the Spectra programme included three events specifically aimed at those with additional support needs and their families. These events were held in Kirk of St Nicholas and featured installations from artists Mark Anderson, Heinrich and Palmer, and Steve Symons. Although this year the relaxed performances were aimed at
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families already engaged with We Too!, Spectra hope to work together with We Too! to widen these opportunities in the future. Started in 2015 by Phionna McInnes, whose son has autism and ADHD and who herself is hearing impaired, We Too! provides information and signposting to suitable activities for families and children with additional support needs and began as a ‘what’s on guide’. Today, the magazine distributes to a readership of 31,000 and is widely shared amongst professionals. The organisation itself is consistently recognised as the leading organisation making events and sessions accessible to people who may otherwise find it challenging due to sensory considerations. These relaxed performances came to Spectra for the first time in 2020. Andy Brydon, director of Curated Place said: “We are delighted to be teaming up with an organisation that provides such outstanding support to those with additional support needs and their families. Spectra is a hugely inclusive festival – not only is it free, it’s suitable for those of all ages and we feel strongly that we make the event as accessible as possible. We look forward to working with We Too! in years to come.” Councillor Marie Boulton, Aberdeen City Council culture spokesperson, said: “It is hugely important to Aberdeen City Council that we continue to support and commission events that can be enjoyed by the widest range of people. This includes those with additional support needs and we look forward to working with We Too! moving forward. As a city, Aberdeen prides itself on its inclusivity and we are delighted that by working with We Too! we can continue this tradition.” Phionna McInnes, chief executive of We Too!, said: “I have attended Spectra in the past – it’s a sensory paradise! We Too! have worked alongside many local organisations to bring relaxed sessions into their timetables and make our community as inclusive as possible, and I am very much looking forward to working alongside Aberdeen City Council and Curated Place to bring our ‘inform, don’t adapt’ philosophy to Spectra.”
Spring 2020 www.business-now.co.uk
FEATURE
Stellar Support from A-line as SPECTRA Returned to Aberdeen Company continued successful collaboration with Curated Place SPECTRA, Scotland’s Light Festival, returned to Aberdeen for the first time in two years this year. Taking place from 6:30 p.m. to 10 p.m. every evening from 13-16 February, the festival saw Aberdeen city centre transformed into an interactive light-scape featuring well-known names from across Scotland, the UK and the world. Commissioned by Aberdeen City Council and produced by Curated Place, Spectra celebrated its fifth year in 2020 and it was the third year that one of Aberdeen’s leading audio-visual experts facilitated its many and varied aweinspiring spectacles. A-line, established in 1991 and specialising in audio, lighting, staging, vision and power distribution services, have been supporting events in and around Aberdeen for over 25 years and in 2020 they brought the lights and sights of Spectra to the most diverse range of locations in the festival’s five-year history. Of A-line’s eight full-time employees (supplemented with a freelance base of around twenty), six worked full-time on the Spectra set-up, which saw the takeover of seven Aberdeen city centre sites, including Aberdeen Art Gallery, St Nicholas Kirkyard, Marischal Square, Marischal College, John Lewis on George Street and Look Again Project Space on St Andrews Street. The team were also on hand to manage the Catalyst Conference taking place on 14 and 15 February in Aberdeen Music Hall. A-line, who also helped deliver a new music installation as part of the NATUR project during Spectra’s fallow year, are in line with Spectra’s overarching ethos when it comes to promoting a sustainable programme of cultural events in and around Aberdeen. Following the success of Spectra, which first took place in 2015 and in 2018 was estimated to have brought an economic benefit of £233,945 to Aberdeen, Spectra now have year round staff in the city.
About Spectra • SPECTRA is Scotland’s premiere light festival with leading names from the UK and around the world creating a stunning light-scape across the city centre. • SPECTRA 2020 was inspired by Scotland’s Coasts and Waters and included artists Designs in Air, Heinrich and Palmer, Seb Lee-Delisle, Mark Anderson, Sara Stroud and Dodda Maggý. • SPECTRA and its Catalyst Conference embody Aberdeen’s cultural credentials demonstrating its leading role in cultural innovation and leadership. • SPECTRA is an Aberdeen City Council event, delivered by award-winning production company Curated Place
Callum MacLeod, project manager at A-line, said: “We have worked on Spectra since 2017 and 2020 was the second year we were the primary tech facilitators of the whole festival. It was fantastic to see bits of Aberdeen not usually showcased included as key sites for some of this year’s outstanding artistic installations. We are incredible proud of the range of events that happen in and around Aberdeen each year, and we think Spectra is a fantastic opportunity for locals and visitors alike to discover the city.” Andy Brydon, director of Curated Place, said: “Working with an organisation like A-line, who understand the focus on production values in an art context as well as commercial production are closely aligned with our own, is always a pleasure. Even during the Spectra fallow year, we worked closely with them in delivering a new music installation as part of the NATUR project and we looked forward to working with them in 2020.” Further information on Spectra is available at www.spectrafestival.co.uk
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SPORT
Skipper Retires after Decade on Test Stage
2020
Six Nations Championships Under Way Men’s and women’s competitions in full swing despite Storm Ciara challenges The 2020 Six Nations Championship is the 21st Six Nations and the 126th edition of the competition. Wales entered the tournament as defending champions, having beaten Ireland at the Millennium Stadium on the final day of 2019’s tournament, claiming their first Grand Slam since 2012.
Greig Laidlaw played in four matches in last year’s Guinness Six Nations ©Inpho
Greig Laidlaw takes tough decision to call it a day The scrum-half, Greig Laidlaw, is second on Scotland’s all-time record points scorers’ list and has won 76 caps for his country since making his debut in 2010. After being part of the Scotland squad at the World Cup in Japan, however, Laidlaw felt it was the right time to call it a day – although he admitted it was a very difficult decision to make. He said: “When I sat back and took the time to really think, I feel it’s the right time, both for me as a player and as a person, for us as a family and for the Scotland team as well. “World Cups are a good time for transition. It’s never going to last forever, sadly. I’ve always been passionate that you only ever get a certain amount of time in the jersey and you need to give it everything you can. “I feel I’ve done that and my time has sadly now come to an end. I look forward to watching the boys pull on the blue jerseys and I’ll be right behind the team going forward. When you take the emotion away from it, which for me is really hard to do because I’m a passionate Scotsman and it’s been a massive part of my life and always will be, it was hard. “But when I removed that emotion, I felt it was the right time, for the team and for me. I’ve given everything I can and now it’s up to the young boys. Certainly, my rugby journey is not over. I’m still playing professionally, which I’ll be looking to do for the foreseeable future, but I felt in terms of the international commitment that the time was right.”
The Calcutta Cup fixture at Murrayfield on 8 February had to contend with bad weather conditions due to Storm Ciara, which led to the Women’s Six Nations Scotland v England match being moved from Glasgow to Edinburgh. At the time of going to press, France and Ireland were tied on points at the top of the men’s table. In the women’s competition, England and Ireland were vying for the number one spot. Scotland’s 2020 Six Nations Fixtures
Men
Italy v Scotland, Stadio Olimpico, Rome Saturday 22 February, kick-off 2.15 p.m. Scotland v France BT Murrayfield Stadium, Edinburgh Sunday 8 March, kick-off 3.00 p.m. Wales v Scotland Principality Stadium, Cardiff Saturday 14 March, kick-off 2.15 p.m.
Laidlaw made 37 Championship appearances, including making his maiden test start at fly-half against Wales in Cardiff in 2012. He first captained his country the following year, going on to lead Scotland 39 times, the most of any Scot. As he prepares to move on to the next stage of his career, Laidlaw is already looking forward to cheering on his compatriots.
Italy v Scotland, Stadio Giovanni Mari, Legnano Sunday 23 February, kick-off 4.00 p.m.
He added: “Captaining your country to victory is the stuff of childhood dreams. To say I will never again stand in the tunnel, filled with nerves, alongside my rugby family and lead my teammates out on to the pitch at BT Murrayfield, is incredibly hard.
Scotland v France, Scotstoun Stadium, Glasgow Saturday 7 March, kick-off 7.45 p.m.
“While my body and heart could continue playing, my head tells me that it’s time to let the team rebuild. In terms of where Scotland is now, they are in a position to spring forward and I cannot wait to give them my full support from the stands.”
Wales v Scotland, BT Sport Cardiff Arms Park, Cardiff Friday 13 March, kick-off 1.10 p.m.
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Women
Open distribution network on SeatGeek will extend team’s reach
Jamie Howell, ticket office manager, Aberdeen FC, explains: “As a team, we have a fantastic base of loyal fans. However, we are looking for progressive new ways to attract new fans and enthuse them about our club.
Aberdeen FC has announced the launch of a brand-new, open distribution ticketing product, never before seen in the UK. The innovative new ticketing product, launched by the Scottish Premiership team’s ticketing platform SeatGeek, will allow Aberdeen FC to sell tickets in more places than ever before, without the need for any additional software.
“We are lucky enough to have a busy airport on our doorstep with lots of people visiting the region every year. Working with SeatGeek to implement this new open distribution product will enable us to target tourists and workers travelling through Aberdeen International Airport and looking for fun things to do whilst they’re in town.”
Match tickets are traditionally sold exclusively through football clubs themselves, via their website and over the phone. This move will allow Aberdeen FC, who are currently sitting fourth in the Scottish Premiership, to open tickets up to a wider audience with the aim of increasing the club’s following. Using the new SeatGeek open distribution network, which works through its existing SRO technology, tickets will now be sold through numerous online travel brands – including Ryanair – through distribution partner, Coras. Travellers will be able to discover Aberdeen FC match tickets whilst doing things like booking a flight or looking for weekend plans.
SeatGeek launched SeatGeek Open in the US in 2016 and, since then, has worked with partners like Facebook, Snapchat and Airbnb to help clients reach new attendees. Major US sports leagues like the NFL and Major League Soccer have now moved towards an open distribution approach following SeatGeek’s innovation in the space. Aberdeen FC will be the first team in the UK to adopt the same approach. However, with SeatGeek clients now including 40% of the English Premier League, rugby union teams such as Leicester Tigers and Bristol Bears, and Lord’s cricket ground, a similar shift to open distribution ticketing can be expected in the UK over the next few years.
New Highland Games Obstacle Race Launched Event entrepreneurs launch unique mass participation event
A first of its kind in the UK, the event is open to corporate teams and individuals alike. The 10-kilometre course will incorporate elements from the Highland Games, such as tug o’ war, tossing the caber, putting the shot and Highland dancing, plus an obstacle course with challenges that celebrate Scotland’s history and culture. Co-founder Jo Dytch, a senior member of Cancer Research UK’s events team, commented on the inspiration behind McBrave Games: “We’re noticing that people are turning to experiential activities in their droves and, as event organisers, we need to be coming up with innovative experiences that excite participants. We believe McBrave Games fits nicely into this category.” Andrew Hastings brings a wealth of experience in the industry. In 2019 he successfully delivered a sell-out Cateran Yomp, Scotland’s largest charity challenge event, raising over £3.5 million.
Two of Scotland’s most experienced event professionals aim to capitalise on the rise in mass participation events with their unique take on Scotland’s traditional Highland Games. With over 25 years’ combined experience in the UK mass participation space on largescale events such as Race for Life, Tough Mudder and the 54-mile Cateran Yomp, Jo Dytch and Andrew Hastings (pictured) will hold the inaugural McBrave Games event at Newhailes House, East Lothian on Saturday 30 May 2020.
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Andrew says: “The Highland Games is a superb tradition and part of Scotland’s heritage. McBrave Games is a great opportunity to allow everyone to come and try it out. Jo and I are big believers in innovation, and this is a new idea that takes the familiar and gives it a unique twist.”
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SPORT
AFC Launches New Ticketing Product in UK First
FEATURE
Office Workers Drifting Off Six Minutes into Presentation As human attention span gets shorter with advent of smartphones, it is easy to disengage – unless you do it right!
UK officer workers have admitted it takes them less than six
Future Present recently added Susie Phillips-Baker, an
minutes to drift off during a PowerPoint presentation and some
organisational psychologist to the team, who stated: “By
58% claimed to have almost fallen asleep during one in the
following some simple cognitive communications principles,
last year.
it’s easy to enhance the effectiveness of your presentations and
The new OnePoll research of 2,000 office workers commissioned
play to the strengths of human information processing abilities.
by presentations experts, Future Present, revealed that 22% are
Taking in lots of visual and auditory information can place high
drifting less than six minutes in and by the 10-minute mark,
demands on the working memory, so by reducing the processing
48% were thinking about more exciting things like food (53%),
demands on the audience, you can essentially avoid the mind
box sets (36%), relationships (38%) and sex (31%) – quite often
wandering or switching off.”
when many businesses are still covering their own company
Future Present has worked with Susie to compile their top ten
background and not what they can do for them! It sounds like bad news for Microsoft’s most widely used presentation software, which claims to have 1.2 billion users worldwide, and it is little wonder that the phrase ‘Death by PowerPoint’ has become lexicon in the modern day workplace. Lyndon Nicholson, CEO of Future Present – an agency that works on thousands of PowerPoint slides a year including investment decks, sales pitches and TED Talks, said: “With the advent of smartphones, the human attention span is getting shorter and shorter. Our research showed that astonishingly almost a quarter of your audience has already disengaged within six minutes of
tips on how to improve the success of your next presentation:
It’s not about you… Most PowerPoint presentations start with background slides from the organisation presenting. Believe it or not, your audience is not interested in hearing about you. Given that the first five minutes are the most crucial, cut straight to demonstrating you understand them and their issues and discuss how you can help – then include your bio in your appendix. If they want to talk about you, it is there to refer to later.
Less is more
your PowerPoint slide show starting. If your presentation is a
Reduce cognitive demand by avoiding cramming lots onto
pitch to win work or funding, this means you’ve probably only
slides and give yourself enough time to go through them. Your
just covered the background before you’ve lost your client or
audience needs time to process information. Likewise, too many
investor’s attention. The key is keeping people invested and that
slides being flicked through quickly increases the cognitive load
means creating real audience engagement.”
for the audience so they will more quickly lose attention.
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SECTION HEADER Audience participation
Moving images
Audience engagement is all about the magic five minutes. Never
activities which keeps them engaged.
Microsoft have been innovating with PowerPoint over the past few years and some of the tools and features are now unparalleled. Where appropriate, use the clever animation tools now included in the software to slide your message across the screen point by point and tell the story in clear chunks. Our attention is drawn to what is different, so moving images work well for helping the audience to process information effectively.
What’s on the menu?
Tell me a story
speak for more than five minutes without getting them to talk back to you or ask them a question to encourage participation. It checks that they are listening and stops them drifting off. It also allows the audience to switch between active and passive
Think about menu creation, asking your audience what they want to talk about and having colour-coded option slides prepared that you can jump to. This means you can adapt the presentation on the fly – meaning you are prepared for any question or eventuality. Clearly signposting sections also ensures they get the right amount of information, and that their cognitive expectations are being met which reduces cognitive load and will put you, as the presenter, in good favour.
A few little words It may seem like an obvious one, but avoid slides with lots of text. Two to three words per slide are optimal. Images are key as
People take in information better when the narration is informal and conversation, rather than formal. Storytelling can also be very effective in presentations as it engages the audience on a more personal level. You can assist your audience in creating a narrative by clearly defining the topic and presenting a road map which tells them what is coming and how they are going to get there.
Silence is golden Silence does not need to be uncomfortable. In fact, it can be a very useful tool if used well. A presenter should take the time to gather their thoughts if needed which in turn, provides their audience with much needed breathing space to absorb and reflect.
90% of information transmitted to the brain is visual, but avoid
B for black
naff clipart at all costs. Remember that images should assist in
One of PowerPoint’s secret weapons is the ‘b’ key on your keyboard. There are times when you want the audience’s attention just on you. Hitting ‘b’ will turn your screen black. This again reduces the high demands from visual and auditory information and signals a change which maintains attention. Plus, with nothing else to look at, your audience cannot help but focus on you.
a metaphorical sense to set the tone for what the audience is hearing and to help the presentation flow. They do not necessarily have to have a literal connection, but make it relevant or their minds will wander on to what that odd image in the corner is and they will stop listening!
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SECTION HEADER
Appointments
NEW
BEN SHARPLES APPOINTED AS DIRECTOR AT MALIN MARINE Ben Sharples, an experienced marine engineer with extensive knowledge of design engineering, project engineering and offshore operations, has joined as a director of Malin Marine. He comes to Malin following a highly successful stint at JFD (James Fisher), where he helped transform the subsea company into a world leader – with substantially increased profit and turnover. Ben now plans to harness these skills to significantly grow Malin Marine and its market offering, while retaining the agile, customer-focused credentials Malin is renowned for.
RBS CHAIRMAN JOINS BOARD OF SCOTTISH FINANCIAL ENTERPRISE Scotland’s representative body for the financial services industry has bolstered its ranks with the appointment of RBS chairman in Scotland Malcolm Buchanan as board director. Mr Buchanan is chairman, Scotland for the Royal Bank of Scotland, and the bank’s managing director for corporate and commercial banking, responsible for serving the banking needs of some of Scotland’s largest companies. He was appointed to the board of Scottish Financial Enterprise (SFE) in early December and was the fifth new addition to the board in 2019.
LEADERSHIP CHANGES HERALD NEXT CHAPTER FOR READ CASED HOLE READ Cased Hole has revamped its senior leadership team by appointing Bruce Melvin (centre), formerly CFO, to the role of CEO. READ now operates with a leaner senior leadership team of three, spearheaded by Bruce and comprising Alan Walsh (left), service delivery director, and Kevin Giles (right), global commercial director. Bruce said: “I am very pleased to take up the position of CEO at READ. Working closely with Kevin and Alan, I believe our revamped senior leadership team can bring a fresh approach to managing the business globally and will improve the service we provide to oil-and-gas operators.”
SARAH GRAY JOINS TEAM AT SPORT ABERDEEN Sarah Gray joins Sport Aberdeen in the newly created head of marketing and commercial development role based at the charity’s HQ at Broadfold House. Sarah is responsible for leading and managing all aspects of marketing and communications activity, and increasing inward investment to the company. Sarah brings over fifteen years of extensive marketing experience to the role, having previously worked predominantly in the oil-and-gas sector.
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Simon M Morgan continues his series on making the most of networking In previous issues of Business Now, I have shared some tips to help anyone in a business/social environment ‘network’ with a structure and confidence, and ensure that a business opportunity can be realised! In the last issue I talked about the ‘passport to business’; i.e. the business card. Exchanging cards is an opportunity to simply expand the reach of your brand and personal details within the business and to then ‘follow up’ so that a conversation that had potential can be built on.
How best to do this? Firstly, ask the question: ‘Is it okay if I phone you after this event?’ It is unlikely you will get a no to this question. Next: ‘When works best to make the call?’ Think which day of the week, and then morning or afternoon. Finally: ‘Which is the best number to get you on?’ It may not be the one on the card, as you may only have a general reception number, and what you want these days is a mobile number or direct line/extension number. Once the call has been arranged, put it in your diary, as the worst thing you can do now is not phone as agreed. Before the call date, there are a few things you can do in advance, such as:
• Email in advance to summarise the first discussion • Confirm the call arrangements by email so you don’t forget • Connect on, say, LinkedIn • Research the individual and the company as best you can
Whatever you do, make the call as planned. There are two outcomes. Your call is answered and the conversation continues, or you don’t get through – so leave a message and advise you’ll try again. Send a message that you phoned and see what response you get, then try again.
Pause for a minute. The role you have in your business – are you in a position to both buy and sell? If so, you have much more scope than if you are simply ‘selling’ or in ‘business development’, as this is more of a one-way street. Remember though, you will most likely know the buyer in your organisation and can refer people to them. However, being in a position to wear two hats – buyer and seller – better equips anyone when networking at any time. Looking for new suppliers is easier than promoting goods and services, and even if your supply chain is good, there is no harm done in testing that theory as things do change and having options is always beneficial. Often testing the market can ensure current suppliers are still the best fit for your business going forward.
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How long do you continue to try to make contact if your calls are not getting a positive response? Well, there is a time limit on this and I guess it depends what has motivated you to make contact. If you are looking for a supplier, then the timescale to stick with a poor response will be a lot less than if you think there is a business opportunity; but there is a limit to how long you will spend following up without success. Finally, following up a conversation with someone you have met previously will be infinitely more rewarding than cold calling anyone, but it does require perseverance and skill!
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NETWORKING SECTION HEADER
Connection Made? Now Follow Up & Through
Back to the exchange of business cards and the appetite to talk again afterwards…
SECTION HEADER
February 15
ABFE-UK Scotland: Transition Careers Event, RGU
18
Boost your business, Drop-in clinic at Elevator
20
BNS – Aberdeen
20
Cyber Scotland 2020, OneCode Base, Tech Hub
25
AGCC Speed Networking
25
OGUK Data & Digital Day, The Chester Hotel
27
BNS – Edinburgh
March 3
Business Insider & CMS Deals & Dealmakers
Business Breakfast, Mercure Ardoe House Hotel
3
Meet Everyone M4 Networking, Inspire PTL
5
AGCC Business Breakfast: On the right road?
5
DoqaruCon, P&J Live
11
Talk: The Importance of SMEs to the Local
Economy, University of Aberdeen 12
AGCC The Budge Breakfast: A new chapter for the
UK economy?
17
AGCC How to grow a greener, more profitable business
17
Elevator & Scottish EDGE: Pitching masterclass
17
OGV Recruitment Fair, Sandman Signature
Aberdeen Hotel
18
OGUK Aberdeen Breakfast Briefing – Business
Outlook, P&J Live
18
BNS – Aberdeen
19 34 Offshore Achievement Awards 2020, P&J Live th
24
OGUK Share Fair, P&J Live
25
North East Business Showcase 2020, Business
Breakfast/Lunch, DoubleTree by Hilton Treetops Hotel
26
BNS – Edinburgh
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Issue 19
Spring 2020 www.business-now.co.uk
April 1-2 VisitScotland Expo 2 OGUK: Aberdeen Industry Insights for Young Professionals, The Chester Hotel 17 Bread Maker Fundraiser, Sandman Signature Aberdeen Hotel 22 Before Noon (B4N) Networking, RBS Aberdeen 22-24 9 ENFSI APST Working Group Meeting, The James Hutton Institute 23 BNS – Aberdeen 25 JDRF Roaring ‘20s Ball, The Marcliffe Hotel and Spa 29 Scottish Seafood Summit 2020, Mercure Ardoe House Hotel 30 Aberdeen Entrepreneurs: ‘Back to the Future’, Norwood Hall Hotel 30 BNS – Edinburgh 30 OGUK Security Seminar, Mercure Ardoe House Hotel th
May 5 5 7 8 14 14 15-16 21 21 26
Contract Law Update 2020, Society of Advocates, Aberdeen Meet Everyone M4 Networking, Inspire PTL NTIA Industry Dinner, Howies Restaurant, Aberdeen Aberdeen Careers Fair, Pittodrie Stadium BNS – Aberdeen Offshore Safety Awards, P&J Live Scottish Skipper Expo, P&J Live BNS – Edinburgh OGUK Aberdeen Breakfast Briefing, P&J Live Boost your business, Drop-in clinic at Elevator
3 9-10 11 17 18 24-25 30
OGUK Annual Conference, P&J Live Future Oil & Gas, P&J Live BNS – Aberdeen Before Noon (B4N) Networking, Namaste Delhi, Aberdeen BNS – Edinburgh SPE International Oilfield Scale Conference & Exhibition, P&J Live Boost your business, Drop-in clinic at Elevator
June
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BRANDING / STATIONERY LEAFLETS & FLYERS ADVERTS & NEWSLETTERS EXHIBITION STANDS PROMOTIONAL GIVEAWAYS BROCHURES & PUBLICATIONS
Thinking Creatively in everything we do.
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01224 Issue 19 865466 Spring 2020 www.business-now.co.uk
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TRY BEFORE YOU BUY! Would you like to grow your business through networking? If so, BNS is a tried and tested structured networking specialist! However, if you are not sure BNS is the best avenue for you, cannot justify the membership fees or committing time-wise is too daunting, then why not ‘Try Before You Buy’?
TBYB* includes three events with full membership rights for £150+VAT By booking in advance in Aberdeen, Edinburgh or a combination of both.
To book visit..
www.businessnetworkscotland.co.uk and click on ‘Book as a Guest’ Money-back Guarantee: BNS promises you a full refund, no questions asked, if you feel attendance at a BNS event has proven to be a waste of your time. *This is a one-off offer and cannot be repeated.
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Issue 19
Business Network Scotland
Spring 2020 www.business-now.co.uk
Networking made simple! 01224 865466
www.businessnetworkscotland.co.uk